S11744 CONGRESSIONAL RECORD — SENATE November 14, 2001 which is one of the reasons I love the quicker—there is no question about the It seems to me we agree on providing President, even though I do not always fact that a little bit of money there incentives for investment through ex- agree with what he is agreeing to. produces a substantial economic re- pensing and through accelerated depre- In trying to get this moving, he sponse. ciation. It is in both bills. There has to agreed we were going to give tax cuts I think we should be doing more of be a compromise level. We differ great- to people who did not pay any taxes. that. When people ask what cutting tax ly as to what we really believe will That is like dropping money out of air- rates and accelerating the tax cut has stimulate the economy. The logical planes. I do not think it stimulates the to do with incentives to invest, do they thing to do, it seems to me, is to take economy because we took the money not realize that 80 percent of the in- half of the funds and do it through from taxpayers and are giving it to come tax paid by the top 1 percent of stimulation by lowering marginal tax people who did not pay taxes. taxpayers is paid by small businesses rates to encourage investment, which If we want to stimulate the economy, filing under subchapter S as individ- is what I believe works, and then tak- we have to find a way with the $75 bil- uals? The top tax rate is really a small ing the other half as the Democrats lion to get people to spend not only it business tax rate. When people are say- want to use it and spend it, whether but other things. We get that done by ing the average person in that tax they spend it on infrastructure or finding ways of spending the money bracket will earn $600,000 or $700,000 a whether they spend it in terms of that encourage other people to spend year, that average person is really Joe health benefits. their money. Unfortunately, the other Brown and Son hardware store in Texas In terms of health benefits, it is one people who are spending their money or West Virginia somewhere, and it is thing to help people with health insur- are people who have money and, hence, really their rate about which we are ance, but it is another thing to set up almost any stimulus package that is talking. a bureaucracy that probably would not worth anything could be criticized that I see that as a very important incen- even be in place until the recession was somebody who is wealthy is going to be tive. I have to say when I look at the over. So in terms of spending money on stimulated to invest their money and list of things we are doing, such as giv- health, I think there could be a com- they at least think they are going to ing movie producers and recording art- promise. benefit. ists and authors tax breaks, I would In terms of setting up this bureauc- The point is, America cannot be much prefer lowering the tax that af- racy, I do not think the President saved except at a profit. The fact that fects investment or spending money on would agree with that and I do not somebody will make money based on a highways as compared to that kind of think that could happen. We have to stimulus package is the end objective. expenditure. sit down and work out a compromise. I Let me turn to the whole question of There are two ways we can go about think the Nation wants us to do it. The infrastructure, and then I want to sum a stimulus package. If I could write the sooner we can get on with it, the better stimulus package, I would write it as up before I run out of time. In fact, how much time do I have? off we will be. follows: First, I would have cut the The PRESIDING OFFICER. The Sen- f capital gains tax rate. It does not cost ator has 2 minutes 27 seconds. RESERVATION OF LEADER TIME us anything for 2 years. Our experience Mr. GRAMM. The advantage of infra- with it, beginning at the end of the structure is that by improving infra- The PRESIDING OFFICER. Under Second World War, has been almost structure, private investment can be the previous order, the leadership time uniformly positive. I have argued for it induced. We get the impact not only of is reserved. incessantly. The President decided not building a north/south interstate high- f to propose it because he saw it as po- way system in Texas, which is what we ECONOMIC RECOVERY AND AS- larizing. need—I do not know what they need in SISTANCE FOR AMERICAN WORK- I also believe that making the tax West Virginia, but I know we are way ERS ACT OF 2001 cut permanent would stimulate the behind on highway construction, de- The PRESIDING OFFICER. Under economy and bring stability to the spite the success we have had recently the previous order, the Senate will now economy. It is very destabilizing to in which the Senator has been a leader. resume consideration of H.R. 3090, have a tax cut that is going to dra- But we can get a multiplier effect by which the clerk will report. matically change and, in fact, go away the private sector investing as infra- The bill clerk read as follows: in 9 years. All over America today, peo- structure is improved. ple who could be investing are taking If we are going to use infrastructure A bill (H.R. 3090) to provide tax incentives for economic recovery. $20,000 per child and locking it up in as part of a stimulus package, we have IRAs and in gifts to their children and to find a way to speed it up because in The PRESIDING OFFICER. The Sen- grandchildren to try to avoid the death the postwar period not much infra- ator from Montana. tax, even though we claim we repealed structure spending ever really got COMMITTEE AMENDMENT, WITHDRAWN it. It is coming back in 9 years. So peo- going until the recession was over. Mr. BAUCUS. On behalf of the Fi- ple who expect to live 9 years are using I will sum up by saying what I think nance Committee, I withdraw the com- up their resources planning for it. we need to do. First of all, I am going mittee amendment. A decision was made that making the to make a point of order against the The PRESIDING OFFICER. Without tax cut permanent would be too pro- pending amendment, not the under- objection, it is so ordered. vocative in a partisan sense, and so lying bill. The point of order is that AMENDMENT NO. 2125 that was not enough. the pending amendment violates the Mr. BAUCUS. Mr. President, I send Senator GRASSLEY put together a budget rules. We decided in the 2001 an amendment to the desk. good package given what we had al- budget that emergency designations The PRESIDING OFFICER. The ready agreed to take off the table. I for non-defense matters were being clerk will report. want to make the point—and I make it abused, and we eliminated them; they The bill clerk read as follows: because Senator BYRD is here. Senator violate the Budget Act. But they are The Senator from Montana [Mr. BAUCUS] Byrd is going to propose some infra- being used in violation of the Budget proposes an amendment numbered 2125. structure spending. It has a disadvan- Act, and therefore there is a 60-vote Mr. BAUCUS. Mr. President, I ask tage and an advantage, but it is one of point of order. unanimous consent that further read- the few proposals that is being made Everyone knows the bill before us is ing of the amendment be dispensed other than those that are targeted in not going to become law. So why not with. the sense of targeting investment, tax make it clear that is the case, so we The PRESIDING OFFICER. Is there cuts. can end these partisan debates that I objection? There is no doubt about the fact that know discourage people back home, Mr. BYRD. Mr. President, reserving accelerated depreciation—allowing and sit down around a table and work the right to object. people to spend so if they buy new cap- up a compromise. Compromise means The PRESIDING OFFICER. The Sen- ital equipment to create jobs or open a some people get some things they want ator from West Virginia reserves the factory they can write off more of it and other people get things they want. right to object. November 14, 2001 CONGRESSIONAL RECORD — SENATE S11745 Mr. BYRD. I ask unanimous consent The same is true for the alternative common defence.’’ It means to provide to be recognized when the Senator bill proposed by the President and/or for the defense of our homeland, as from Montana yields the floor. the minority party. There are not 60 well. ‘‘Provide for the common The PRESIDING OFFICER. Without votes for that either. So I agree very defence.’’ ‘‘Common’’ means common. objection, it is so ordered. much with the main import of the It is everywhere. It is common to all. It Mr. BYRD. Mr. President, I remove point made by the Senator from Texas; doesn’t single out any particular per- my reservation. namely, let us get on with it. Let us sit son, place, territory, or city. It pro- The PRESIDING OFFICER. Without down. Let us start negotiating. vides for the common defence. objection, the reading of the amend- We are doing the country a disservice I continue to read: ment is dispensed with. by continuing a partisan, rhetorical . . . promote the general Welfare— (The text of the amendment is print- harangue, one side against the other. It That doesn’t say promote the welfare ed in today’s RECORD under ‘‘Amend- is something I do not like. It is some- of the rich; it doesn’t say promote the ments Submitted.’’) thing I know most Senators do not welfare of Sophia, WV, my little home- The PRESIDING OFFICER. The Sen- like. I hope the leadership of both bod- town which you can hardly see on a ator from Montana. ies, both the House and the Senate, on map. ‘‘Provide for the common defence, Mr. BAUCUS. Mr. President, I say to both sides of the aisle, find a way for us promote the general Welfare.’’ The my good friend from West Virginia, I to put together negotiations where the Preamble isn’t talking about those intend to speak for only 2 or 3 minutes. leadership of the Finance Committee people who are on welfare rolls. It says Mr. BYRD. The Senator may take and of the House Ways and Means Com- ‘‘promote’’—that means to push for- whatever time he wants. mittee, in conjunction with the White ward, to lift up, to advocate. To ‘‘pro- Mr. BAUCUS. Mr. President, the House, can sit down and put together a mote the general Welfare and secure amendment I have offered makes sev- good, solid economic stimulus package the Blessings of Liberty.’’ eral changes to the bill reported by the quickly so Americans are served in the Aha, that word liberty!—‘‘and secure Finance Committee. It deletes the way they deserve to be. the Blessings of Liberty’’—to whom? rural development provisions in sec- Mr. President, I yield the floor. tions 811 and 815 of the bill. These pro- The PRESIDING OFFICER (Mr. ‘‘. . . to ourselves and our Posterity, do ordain and establish this CONSTITU- visions generated considerable con- REED). Under the previous order, the troversy, with some Senators ques- Senator from West Virginia is recog- TION for the United States of Amer- tioning whether they provided eco- nized. ica.’’ nomic stimulus. I support the provi- Mr. BYRD. Mr. President, I thank Who said this? It says ‘‘do ordain and sions, and I think they are very impor- the Chair. establish this CONSTITUTION....’’ tant to the rural economy, but a simi- Many times my colleagues have seen In speaking of liberty to ourselves, lar set of provisions is being developed me reach into my shirt pocket and pull who is doing the talking? Who is doing as part of a farm bill, and I think it is out the Constitution of the United the talking? Let me tell you who is appropriate to defer to that debate at States. The distinguished whip, the doing the talking. I will start with New that time. majority whip, also carries a copy of Hampshire, Nicholas Gilman and John I note that I have not deleted provi- that Constitution, as do several other Langdon were the signatories for New sions providing agriculture disaster as- Senators on both sides of the aisle. I Hampshire. sistance to farmers and ranchers be- have supplied them with this shirt Next we will take Massachusetts. cause I think they are critical provi- pocket copy. I will refer to it as the Who were the signatories? Rufus King sions of the bill. ‘‘shirt pocket copy.’’ and Nathaniel Gorham. My amendment also incorporates Alexander the Great put foremost, Then what is the next State? Con- three Medicaid provisions which were among all books, among all histories necticut. William Samuel Johnson filed in the committee but we did not and among all literature, ‘‘The Iliad.’’ and—who is that fellow who signed all have time to consider. One proposed Alexander the Great’s copy of ‘‘The those great documents from Con- amendment by Senator BINGAMAN tem- Iliad’’ was referred to as the ‘‘casket necticut? Who was he? Roger Sherman, porarily increases the caps for States copy.’’ He slept with ‘‘The Iliad’’ under Connecticut. with extremely low disproportionate his pillow. What is the next State? New York. share hospitals. That is the so-called I do not sleep with the Constitution New York, Alexander Hamilton. Only DSH cap. under my pillow, but I carry it next to had one signator, the great State of The second proposed amendment by my heart, the Constitution of the New York. Senator LINCOLN establishes a 6-month United States. And on down. Those were the men moratorium on changes to the Medi- Now, let’s read for a moment the pre- who signed this document. Immortal? care upper payment limit rules. amble of the Constitution. Those who This Constitution will live as long as The third proposed amendment by have shirt pocket copies, take out your the Earth stands. Immortal document, Senator BREAUX revises and simplifies Constitutions; and those of you who this is, indeed. These are the 39 signers. the transitional medical assistance don’t happen to have a shirt pocket I have just read the preamble to the program. copy, take the Constitution off the Constitution. I have done so because it I also have provisions relating to the desk or the shelf, if it is nearby. adequately and perfectly fits as the taxation of life insurance companies. The Preamble reads as follows: preamble to what I am going to say Senator KERRY proposed a committee WE THE PEOPLE of the United States, in and what I am going to advocate. I am amendment addressing section 809 of Order to form a more perfect Union— going to talk about the homeland de- the code to maintain balance. The Now, the President of the United fense piece of this measure before the amendment I am offering also address- States has said he wants to set a new Senate. Defense; homeland defense. es section 815. tone in Washington: Do away with par- The preamble of the Constitution in- There are also a few other correc- tisanship; do away with all the quib- troduces the preamble, as it were, to tions contained in the amendment. bling, the argumentation, as it were, to that portion of the package which my That is essentially a brief explanation form a more perfect union. That is the staff and I, at the request of the distin- of the amendment I am offering. way I would interpret what he said. guished majority leader, developed for At this point, we are on the bill. I I continue to read from the Preamble this amendment. ‘‘Homeland defense,’’ might say neither side has enough of the Constitution: that is the title of this amendment. votes to pass the bill. The Senator . . . establish Justice, insure domestic ‘‘Homeland’’ defense. Not homeland in- from Texas correctly said we might as Tranquility, provide for the common frastructure. Not homeland pork. But well get to negotiations and get to the defence— ‘‘homeland defense.’’ heart of the matter because the cur- Let me read that again: ‘‘provide for Mr. President, hear me now! Fear has rent bill probably does not have the the common defence.’’ It doesn’t say gripped the American people. It threat- sufficient 60 votes to get it passed and anything about defending ourselves in ens the U.S. economy. I don’t call my enacted. Afghanistan. It says ‘‘provide for the portion of this package a stimulus S11746 CONGRESSIONAL RECORD — SENATE November 14, 2001 package. I am not calling it a ‘‘stim- Metro so that people would ride, hope- elected representatives, give to our ulus’’ although it does help to stimu- fully, into Washington, DC, and shop, people when they ask for bread? Do we late the economy. Anything that puts spend money to stimulate the econ- give them a stone when they ask for confidence back into the hearts and omy. There were the restaurants in safety? What do we give them? A tax minds and pocketbooks and book- Washington, DC, that offered a free cut? keeping ledgers of the American people glass of wine to the people who would The people are looking to their elect- is a stimulus to the economy. But to come to those restaurants. ed leaders for security. What do we those who thought they would see Rob- Now I have just read that the na- give them? ert Byrd bring out a package with a lot tional park entrance fees were to be Do we reject this package which I of infrastructure in it are sorely dis- waived over Veterans Day weekend, shall explain momentarily? Do we re- mayed and disappointed. It ‘‘ain’t’’ which has just passed—for what rea- ject it when the people ask for security here. son? To inspire national unity, na- against anthrax, when they ask for se- Infrastructure is needed in this coun- tional hope, and national healing. curity against possible smallpox try to be sure. If you want something You can see it on Wall Street. Just epidemics? What do we give them? Do that is true stimulus, put $1 billion watch Lou Dobbs. Watch him on tele- we give them a stone? into highways and you will employ vision every day. You can see this fear When the people ask that the loop- 43,000 people. Or put $1 billion into spreading like oil, slowly, slowly—fear. holes be closed along the northern bor- school construction and you will em- You can see it on Wall Street. At one der and the southern border, when they ploy 24,000 people. point, on Monday, November 12, the ask for security from terrorists who But I am not doing that. I was asked day after Armistice Day, Veterans would come across those borders when at first by the majority leader to de- Day, the Dow Jones Industrial Average they are not patrolled; when the people velop some options that would help to dropped 198 points following the news ask for security against terrorists who stimulate the economy. So my staff of a possible terrorist attack on Amer- would slink across the borders, do we and I—I have excellent staff; they are ican Airlines flight 587. We saw the give them a stone? Do we give them a not excelled by anybody anywhere in drop in the Dow Jones after the plane scorpion? Do we give them a serpent? the world. That is what I think of crashed in the streets of Queens, New Do we respond to their cries when they them. My excellent staff and I were York. Wall Street was already trying want safety? What do we give them? asked to prepare some options. We did to recover from the troubling economic We can start to alleviate the con- that. We did a $10 billion option, a $5 news of recent weeks. The Commerce cerns of the American people right billion option, a $20 billion option, a $30 Department reported on October 31 here—today—by addressing those billion option. So we have options all that the economy contracted by .4 per- vulnerabilities the terrorists are seek- over the place. And in more than one of cent between July and September of ing to exploit. them I had infrastructure, something this year, the first quarter of negative My staff and I have crafted a $15 bil- that would provide jobs. growth since 1991—10 years. lion package which would be a first But then something happened. We The Labor Department reported on step in giving back to the American know, because we have read chapter November 2 that the economy shed people a small part of the sense of secu- and verse of the recent history in 415,000 jobs in October, increasing the rity that was blasted away on Sep- which we saw the awesome, terrible, unemployment rate to 5.4 percent from tember 11. horrific picture of two airplanes sailing 4.9 percent in September, the largest A point of order will be made against into the Twin Towers in New York jump since 1980. the package that contains this City. We saw the showers of bricks and Wall Street has been able to shrug off ‘‘bread.’’ Our people ask for bread. mortar falling upon people, upon fire- negative economic news in recent That is a good metaphor when one fighters, upon policemen, upon men months, but traders seem less able to thinks of the security for which people and women and children. And then do so recently. The lingering anthrax are asking us. there came anthrax, a weapon that has scare has spread to victims beyond the A point of order will be made claim- been spread among us. news media and the Federal Govern- ing that there is no emergency. The I haven’t been in my office in the ment. The Attorney General has issued point of order will be made based on Hart Building in weeks. The office is vague yet sobering warnings to the the claim that this $15 billion package closed. My staff people are not in there. American people about anticipated ter- is not an ‘‘emergency.’’ I haven’t read the mail that has been rorist attacks. National Guard troops Hear me now! Keep in mind that a sent to my office in the Hart Building can be seen patrolling the Golden Gate point of order is being lodged against in weeks. There are other Senators Bridge. this homeland defense measure. And, here who can say the same, on both The American people, facing the keep in mind the preamble of the Con- sides of the aisle. fears of a new era, are looking to their stitution of the United States—that Fear has gripped the American peo- elected leaders—you, Mr. President, phrase which says ‘‘provide for the ple, and it threatens the U.S. economy. the Presiding Officer and you, Mr. common defense’’. You can see it. You can see it in the President, at the other end of Pennsyl- The first bit of this graph that I vacant streets of our major cities on vania Avenue—and me and other Mem- point to is that section—that piece of the weekends. Walk the streets of bers of this body and members of other the overall pie chart—which reads Washington on the weekends. You can legislative bodies, looking to their ‘‘Bioterrorism Prevention and Re- see it in the half-full airplanes taking Government for reassurance. Parents sponse.’’ See it? ‘‘Bioterrorism Preven- off from our airports—half full. Some want to hear that their children will be tion and Response—Food Safety, $4 bil- of them not half full. You can see it in safe in their own neighborhoods. Fami- lion.’’ the empty shopping malls less than 2 lies want assurances that it is safe to Ask the one physician in this body, weeks before the start of the holiday take that vacation they had planned the one surgeon. Ask Dr. Frist, Senator shopping season—less than 2 weeks. Go earlier this year. The American people FRIST from Tennessee, if he thinks that to the shopping malls. Go to the na- want assurances that they can open we need $4 billion for bioterrorism pre- tional parks. letters free from worries about biologi- vention and response and food safety. Here is a headline: ‘‘National Park cal weapons. They are looking to their Ask him. He is a renowned physician. I Entrance Fees to be Waived.’’ Aha, you elected leaders for security. know he is a politician, too. So was can go for free. If a son asks his father for bread, will Jesus a great physician. He was a poli- National Park entrance fees to be waived the father give the son a stone? If the tician also. Ask Senator FRIST if this is over Veterans Day weekend to inspire na- son asks for a fish, will the father give ‘‘pork.’’ Ask him if it is ‘‘pork’’ to pro- tional unity, hope, and healing. him a serpent? If the son asks for an vide $4 billion for bioterrorism preven- So we see a repetition of the free egg, will the father give the son a scor- tion and response and food safety. passes, for example, that Metro issued pion? Go back to the Gospel of Luke. We must reassure the American peo- here in the city, and in Northern Vir- The people are asking for ‘‘bread,’’ in ple whether their elected leaders are ginia, free passes that were issued by the form of Security. What do we, as doing all they can to prepare against a November 14, 2001 CONGRESSIONAL RECORD — SENATE S11747 biological or chemical attack. An- thrax left the hospital yesterday after Mr. President, I ask unanimous con- thrax, smallpox, and the plague are no a 25-day stay. sent to have both of these newspaper longer the stuff of fiction but are dead- The high concentration of spores on a sin- articles printed in the RECORD fol- ly realities. gle sorter indicates ‘‘that there is a letter lowing my remarks. My proposal includes $4 billion for like the one sent to Sen. Daschle that has moved through our mail system,’’ Mr. Bou- The PRESIDING OFFICER. Without bioterrorism prevention and response objection, it is so ordered. and food safety. This is money that cher said. ‘‘We are now proceeding to go look at all the mail that we have held up, frozen, (See Exhibit 1.) would primarily be used for upgrading sealed off, in mailrooms in this building, an- State and local lab capacities—get this nexes and around the world.’’ Mr. BYRD. If anthrax can make the now—State and local health depart- public jittery—and we have seen that it There it is. So these funds—$4 bil- ments, for example, in Raleigh County can and has made the public jittery— lion—would also be used to expand the in southern West Virginia, and Sophia, the prospect of smallpox, a contagious Federal pharmaceutical stockpile by WVA, my little town of 1,180 souls. and vicious disease, could incite contracting for the development of 300 Ask the Governors of the States, Re- panic—panic! Funds in this bill, in my million doses of smallpox vaccine to be publicans and Democrats, whether they amendment, will be used to upgrade lab delivered by the end of 2002 to prepare need that money to upgrade State and security at the National Institutes of for a potential outbreak of that dread- local Lab capacities. Ask the mayors Health and at the CDC, and to improve ed disease. throughout the country if they need security at the U.S. Department of Ag- No American has been vaccinated for this. These funds would help local riculture labs, by hiring additional in- smallpox since 1972, and the medical health departments to train emergency spectors for import inspections, food community is debating whether those health responders in recognizing the supply monitoring, and lab equipment. who were vaccinated may still possess symptoms of an incidence of bioter- There you are. rorism, and would enhance the ability any degree of immunity. Now, I was one of those children in Now, the next section of the chart I to diagnose and to treat such illnesses wish to point out is the section de- as anthrax and smallpox. the public schools of West Virginia nominated ‘‘Federal, State, and Local My proposal will also allow State and many decades ago who were vaccinated Antiterrorism Law Enforcement, $3 bil- local governments to plan for a variety for smallpox. That is where I received of emergencies and to upgrade State my vaccination. The scar is still there lion.’’ and local information sharing systems. on my left arm. Federal, State, and local law enforce- Preparation and prevention are crit- Let’s see what this headline says in ment officials have been working ical to waging the war against ter- the Washington Post of Wednesday, around the clock since September 11. rorism that is currently being fought. November 7, 2001. Here it is: ‘‘HHS’’— When it comes to law enforcement and Where? On our home soil. That is get- that is Health and Human Services— homeland defense—remember what the ting pretty close to home, isn’t it, on ‘‘Set to Order Smallpox Vaccine for All preamble said, ‘‘provide for the com- our own soil. We would do well to re- Americans.’’ And it ain’t free. It is not mon defense’’—this is where the rubber member that it was a doctor in Florida free. Let me just read excerpts from meets the road. who had just received training from this story: My package includes $3 billion for the Centers for Disease Control and Health and Human Services Secretary Federal, State, and local antiterrorism Prevention, CDC, who thought to test Tommy G. Thompson said yesterday that he law enforcement. for anthrax when treating the first vic- expects to sign a contract this weekend to Of that $3 billion, this package in- tims of that unusual disease. It is an purchase enough smallpox vaccine for every unusual disease. But it is an old dis- American but that he has warned the White cludes $1 billion for Federal law en- ease. House— forcement antiterrorism investments. Read about it. Read about the 10 Hear him. Hear Tommy Thompson This money would be used to improve plagues of Egypt. Read about the mur- down there at the White House. Hear communications among Federal agen- rain on the cattle, and the boils on him. cies, for the Coast Guard to increase human beings. Go to a dictionary and . . .he has warned the White House the surveillance and improve communica- look up the word ‘‘murrain.’’ It means, cost could be quadruple the $509 million he tions with the Defense Department and for example, anthrax among the cattle, originally estimated—or equivalent to the other civilian terrorist/disaster re- the camels, and other livestock. Look department’s entire $1.9 billion bioterrorism sponse agencies, for the FAA to in- at how old it is. It has been around a budget.... crease the number of safety inspectors long time—thousands of years. The previously announced administration and research on new safety tech- effort to vaccinate all Americans against Here is a headline in today’s paper. I nologies, and for the Drug Enforcement smallpox, a deadly disease that was eradi- Agency, the U.S. Attorneys, the Judici- will read it. cated in the 1970s, took on a renewed sense of State Department Fears— urgency as one of the leading smallpox au- ary, and the U.S. Marshals Service to There is that word ‘‘fear’’ again thorities warned it was conceivable that improve security in courtrooms, for ex- State Department Fears Another Anthrax- former Soviet scientists were helping to ample, camera, x-ray machines and Tainted Letter. ‘‘weaponize’’ the smallpox virus for nations mylar on windows, and provide better What does this say? such as Iran, Iraq, Libya, and North Korea. facilities for police. Well, Cassius was nearsighted. I am These are referred to as ‘‘rogue The remaining $2 billion would be al- not nearsighted, but I do need glasses states.’’ located for State and local law enforce- to read. So here we go. I quote from ‘‘Many [Russian] scientists are really quite ment—again, State and local. Senators this. The title of the article in today’s desperate for money’’— talk with your local mayors. Talk with paper of Wednesday, November 14, 2001, Cicero said: ‘‘There is no fortress your mayors in your home States. Talk is: ‘‘State Department fears another that money cannot buy.’’ with the police departments. See what anthrax-tainted letter.’’ I will just read And here we read a warning by Don- they have to say. a few excerpts from this news story in ald A. Henderson, director of the new The remaining $2 billion would be al- the Washington Times. Office of Public Health Preparedness. located for State and local The State Department said yesterday it is U.S. intelligence indicates that several antiterrorism investments to improve searching worldwide for another anthrax- have been recruited by ‘‘rogue states’’ and the capacity of State and local police tainted letter. were in a position to smuggle out a vial of At least one letter like the one sent the virus ....’’ That’s a very great worry.’’ departments across the Nation to pre- vent and respond to terrorist attacks. to Senate Majority Leader Tom He said: ‘‘Many [Russian] scientists Daschle is packed in with State De- are really quite desperate for money.’’ Municipal officials need billions of dollars—call them on the phone; hear partment mail that was halted last In addition, Henderson said, there is evi- month, said the department’s top dence that the former Soviet Union suc- what they say—municipal officials spokesman, Richard Boucher. ceeded in weaponizing the virus and manu- need billions of dollars for their cities’ Meanwhile, the last of the Wash- facturing up to 100 tons annually at a plant hazardous materials response teams to ington-area survivors of inhalation an- outside Moscow. fully equip their search and rescue S11748 CONGRESSIONAL RECORD — SENATE November 14, 2001 teams and to outfit the law enforce- laid out dealing with our security is who would say it is porkbarrel spend- ment officials who likely will be first not an emergency? ing, I say that one-half, a full 50 per- at the scene of a chemical or biological Mr. BYRD. Yes, that is exactly what cent, would be allocated for bioter- attack. they are going to say. rorism prevention and antiterrorism Remember the day before yesterday? I say to all Senators, a point of order law enforcement; Federal, State, and Who were the first people to go out to is going to be made against this pack- local antiterrorism law enforcement, $3 the scene of the plane crash? That age because those who offer the point billion. wasn’t a chemical or biological attack, of order say it is not an emergency Now as to transportation but it was a sudden and terrible emer- and, therefore, it should be stricken vulnerabilities, much has been done in gency. Who were the first? The police- from the bill. Not an emergency? Let the weeks following the September 11 men, the firemen, the paramedics. them tell that to the Governors of the attacks to improve our transportation Here is a letter addressed to me by country. security. I am not talking about build- the National Governors Association, I continue to read the letter from the ing highways at the moment—to any- addressed to me and my counterpart on National Governors Association: one whose skin might quiver at my use the Appropriations Committee, Sen- Similarly, absent any changes in the of the word ‘‘transportation.’’ This is ator Ted Stevens. In writing to us Health Insurance Portability and Account- transportation security. But each step ability Act (HIPAA) or new federal funding we have taken to plug the holes in our about an economic stimulus package, for HIPAA implementation in state-adminis- this letter from the National Gov- tered programs, states will have little choice transportation security has revealed ernors Association says: but to divert scarce funds to comply with another hole that must be filled. This Our recommendations also reflect the fur- this federal mandate. This means that sig- package includes $2.2 billion to address ther deterioration of states’ fiscal positions nificantly less state funds will be available simultaneously these vulnerabilities. as detailed in the ‘‘economy.com’’ report for education, critical state services, capital Municipal officials need funds to pro- sent to you earlier this week. With respect investment, infrastructure improvement, tect their mass transit system. Of that to our fiscal position,— and additional efforts to respond to bioter- $2.2 billion, this package provides $1.2 rorism and other threats to homeland secu- This is the National Governors Asso- rity. billion for enhanced surveillance of ciation talking now— transit stations and improved emer- Luke said, if the son asks his father most states have made a series of spending for bread, will the father give him a gency response systems. Amtrak requires funding to address cuts. Many are now implementing a second stone? Here are the cities of this land round, and in some cases a third. A number the critical safety vulnerabilities of its asking their elected officials for of states now have revenue shortfalls in ex- facilities, including tunnels. Have you ‘‘bread’’ as it were. Those who make cess of $1 billion and many are scheduling ever gone through a tunnel on a train? the point of order will say: Give them special legislative sessions to address mount- Go to West Virginia. You will travel ing fiscal problems. a stone. Let them eat stones. Let them through several tunnels on Amtrak. have a stone for security. Let them And a Senator will soon make a point But this money that we are talking of order against this to say it is not an have a stone to protect them against a smallpox epidemic; give them a stone! about includes tunnels in and around emergency, that this situation that New York City. It must improve its prevails over this country and about I hope that Senators, when they vote on this point of order, will understand station surveillance. Out of that $2.2 which the National Governors Associa- billion, this package provides $760 mil- tion is writing is not an emergency. that the people back home are going to remember all of us, how we vote when lion for that purpose. The purpose is Tell that to the National Governors this: Amtrak requires funding to ad- Association! the people, when the mayors, when the Governors, when the law enforcement dress the critical safety vulnerabilities I read further from the letter: officers of this country ask for of its facilities, including tunnels in The cumulative states’ current revenue ‘‘bread,’’ when they ask for security, and around New York. shortfall is $10 billion and growing. More- Another $150 million would be used to over, new and unprecedented state respon- when they ask for money to provide se- curity to those little towns and ham- improve the security at our Nation’s sibilities for homeland security are exacer- ports, ferries, and freight rail. This is a bating serious fiscal conditions. lets and cities all across this land, I hope that those who vote for this iniq- recommendation by Senator FRITZ Let me read that sentence again for HOLLINGS. I have been surprised to find those who would say that this is not an uitous point of order, will be remem- bered by the people of this country that only 2 percent of the cargo that emergency. Here is what the Governors comes by sea to our Nation’s ports is say: New and unprecedented—what is come the next election. Let’s talk now about the FEMA fire- inspected and only one-third of the an emergency? Something that is new, fighters program. This package con- cargo that crosses over the boundaries unanticipated? tains $600 million in grants to State by truck is inspected. This package Moreover, new and unprecedented state re- and local communities to expand and finds moneys for addressing these bor- sponsibilities for homeland security are ex- improve firefighting programs through der and these port security needs. acerbating serious fiscal conditions. FEMA firefighting grants. Over 50 per- Airport security. Airports have to re- Tell the Governors, tell the mayors, cent of that funding goes to volunteer spond to the substantial costs of the tell the chiefs of police of the depart- fire departments in rural communities FAA’s new, rigorous security directives ments throughout the land that this is in the countryside, and the volunteer issued since September 11. Airports not an emergency that we are dealing fire department is the first and only need funds to increase the visibility of with and that a point of order should entity available to deal with the crisis. law enforcement personnel for deter- lie against this amendment because it Last year Congress took action to ring, identifying, and responding to po- is not an emergency? begin to address this serious deficiency tential security threats. Additional Mr. REID. May I ask the Senator a by creating a Federal program to pro- staff is needed to conduct security and question? vide direct assistance to fire depart- employee identification checks Mr. BYRD. Yes. I am glad to yield. ments. Administered by the Federal throughout airports. Airports with Mr. REID. I know the Senator from Emergency Management Agency, tighter budgets, particularly smaller West Virginia is a parliamentary ex- FEMA, the Assistance to Firefighters airports in rural areas, are unable to pert on what goes on in the Senate. Did Grant Program received an initial ap- absorb these new costs. This package I hear the Senator right; he has heard, propriation of $100 million. This fund- provides $1.2 billion to hire law en- as I have, that they are going to raise ing was quickly depleted by tremen- forcement personnel to improve protec- a point of order that the homeland de- dous demand. The Agency received tion of secure areas at airports. fense part of the bill is not an emer- more than 31,000 applications, totaling We have read recently a great deal gency? nearly $3 billion in requested funds, al- about postal security. The distin- Mr. BYRD. Not an emergency. most 30 times the amount appro- guished Senator from North Dakota, Mr. REID. Am I hearing the Senator priated. Mr. DORGAN, just a few days ago—last right, that there is going to be a point To those who would say that this week, as a matter of fact—as chairman of order raised that that which he has package is wasteful spending, to those of the Treasury Postal appropriations November 14, 2001 CONGRESSIONAL RECORD — SENATE S11749 subcommittee, conducted hearings and visitors. That is 1 inspector—just 1—for But that day I was slow moving. had the Postal Service people up before every 104,712 foreign nationals who ‘‘Why should I go, I said?’’ ‘‘I will not the subcommittee to testify. It was a cross our borders. be any safer out there than I am in great hearing. The Senator from North Just to make it easy, call it 100,000, here,’’ so I was slow to move. I looked Dakota rendered a tremendous service rounding it. So you have one inspec- out the window on the morning of Sep- to the American people in holding this tor—just one—for every 100,000 foreign tember 11 and watched the smoke rise hearing. nationals who cross our borders. And, from the direction of the Pentagon. Today, the American public and some Senators would make a point of Any Federal building or national land- Postal Service employees find them- order against this package to say that mark in this country could be the next selves the victims of terrorism by mail. it is not an emergency? When our bor- target. This Capitol could be the next The people are afraid to open letters. I ders leak like a sieve, they say that target. used to reach into the mailbox when I this is not an emergency? In October, the CIA received a warn- was hardly tall enough to reach it; I The U.S. Customs Service currently ing from an intelligence service in would reach into the mailbox with glee has the resources to inspect only 2 per- Western Europe about the possibility and pull out a letter. I remember the cent of the cargo arriving by sea. It in- of a terrorist attack on the Three Mile first letter that was written to me spects only about one-third of the Island nuclear facility in Pennsylvania. when I was elected to the House. After truck cargo crossing the southern bor- While the threat later proved not to be I was sworn in as a Member of the der. Almost nothing is more urgent credible, it underscored the breadth of House of Representatives in 1953, the than to quickly move to close these the danger to our homeland—to our first letter that was written to me— hideous gaps in our ability to monitor homeland, America the beautiful. and I would have been 35 years old, so the goods and people who move across The State police and the National that was quite a long time back—came our borders. Guard have stepped up patrols of these from my two daughters, and it carried This package provides $1.1 billion for plants, and the Coast Guard is enforc- on it three 1-cent stamps. We didn’t additional Border Patrol agents and ing new rules barring boats from the have any fear of anthrax in those days. screening facilities, primarily on the waters near any nuclear plant. Like- We used to open the mail with our northern border, and to fully imple- wise, utilities around the country have hearts beating in our chests, with ment database improvement projects. stepped up security at their plants It is not enough that we authorize thankfulness, with expectation—but since the September 11 terrorist at- these additional expenditures in the not expectation concerning a death- tacks, but utility officials admit that antiterrorism bill. It is an empty prom- the Nation’s power grid is just too dealing letter. ise if we fail to provide the resources to People today are afraid to open let- large to be fully protected from wanton back up that authorization. We must ters from distant kin. Suddenly postal attacks. provide the funds, and we must do so workers are confronting attacks from My proposal includes $900 million to quickly. increase security at Federal facilities something much more frightening than The next item on my chart is des- throughout the country, at nuclear the vicious dogs that have long haunt- ignated as Federal computer mod- plants, at our national treasures, such ed the mail routes. A letter from an ernization, $1 billion. There are more unknown source today is reason to call than 40 Federal agencies and tens of as the Washington Monument. Some of 911. America cannot function like this. thousands of Federal workers who are that funding would be directed toward America cannot go on functioning like working together to fight terrorism, enhancing security at State Depart- this. Remember that phrase in the pre- but many of these agencies cannot pass ment facilities. These security pre- amble of the Constitution about the along to each other information on sus- cautions are essential. These are in- ‘‘general welfare’’? America should not pected terrorists. They cannot pass vestments that will have to be made in have to function like this. This pack- that information along. Their com- the future if we are to cope with the age contains $1.1 billion for this. puter systems simply do not work to- continuing threat of terrorism. How much did the administration re- gether. Their computer systems do not Mr. President, over 6 weeks ago, on quest? The Administration requested talk to one another. October 2, an agreement was reached $175 million. That is a drop in the This package provides $1 billion for with the administration so that the bucket. This package contains $1.1 bil- Federal computer system improve- Congress could act expeditiously on the lion to begin to make the security ments so that Federal agencies that fiscal year 2002 appropriations bill. changes necessary to keep the mail participate in our counterterrorism That agreement to limit spending in moving and allow the Postal Service to program can communicate with each the 13 appropriations bills to $686 bil- respond to this and future terrorist at- other and provide more comprehensive lion is being fully implemented. tacks. information about threats and those The Senate has passed this fiscal Now, about the security of our bor- who would carry them out. And, there year appropriations bills on a bipar- ders, to which I alluded a little while are those who would say a point of tisan basis by an average vote of 91 to ago, for border security there is allot- order will lie against this because we 7. That is bipartisan, is it not, an aver- ted $1.1 billion. Our border security is do not have an emergency! Computer age vote of 91 for and 7 against on all dangerously underfunded. We want compatibility is critical to our ability of the appropriations bills that have America to remain always the land of to rapidly assess threats and to re- thus been passed? We lack only one of the free, but we want it also to be pro- spond to them throughout the Nation. the 13 bills, one that has not been tected. Our borders must be secure. Our How about those nuclear power- passed by the Senate. borders leak like a sieve. Try holding plants? How about those electric power We have lived up to our agreement. water in a sieve. Our borders leak like projects? How about those national The Senate has lived up to its agree- a sieve, and the leaking should cause landmarks such as the Washington ment. Republicans and Democrats on us severe alarm. Monument, the Lincoln Memorial, the both sides of the aisle have lived up to The Immigration and Naturalization Statue of Liberty that beckons to peo- this agreement. However, there was no Service conducts some 500 million in- ples from across the sea? We need only agreement to limit our response to the spections at our ports of entry each to look across the Potomac to com- September 11 attacks in the $40 billion year—500 million inspections. Hundreds prehend the threat to our Federal fa- appropriations supplemental passed on of millions of visitors enter the coun- cilities and national landmarks in this September 14. Who could have foreseen try without visas through the visa war on terror. those two planes plowing head on into waiver program, or other legal exemp- I will never forget that day standing the brick and mortar, the cement, the tions. Yet how many inspectors are in my Capitol office. I was one of those steel of those Twin Towers? Is this an there to process these hundreds of mil- slow movers. I will not be slow the next emergency? Who could have foreseen lions of visitors? There are only 4,775 time. The next time those police tell that? Who could have foreseen how the INS inspectors. Yes, you heard me. me to get out of this building, I am world would change? Who could have There are only 4,775 INS inspectors to going, and I will get out of there ahead foreseen the emergency responses that process these hundreds of millions of of the police. would be required? S11750 CONGRESSIONAL RECORD — SENATE November 14, 2001 In the weeks since, the reality of our our word. So far, the Senate has passed to not include the funds contained in post-September 11 world has taken 12 of the 13 bills by an average vote of the homeland defense title of this bill hold, has seized the American psyche. 91 to 7. Each of those bills has been in any calculations of so-called base- We are now faced with security threats consistent with the $686 billion top line spending for fiscal year 2003 and that were not foreseen last month, that line. future years. So I say to the White were not foreseen the month before After the House takes up the defense House, go to sleep, sleep quietly. Sleep last, that were not foreseen and still bill, the Senate will take up a $317 bil- soundly, White House. Let me offer seem unimaginable, the stuff of night- lion defense bill that would also con- this amendment. This amendment will mares. Anthrax appeared like a vam- form with the $686 billion deal. How- wipe away those fears. pire in the night, sapping us of our cus- ever, $40 billion approved by Congress Under this amendment, these home- tomary optimism. The threat of small- on September 14 is clearly not enough land defense funds would not be used to pox may face us for the first time in to respond to the September 11 at- inflate the amount of spending nec- more than 20 years. tacks. essary to maintain current services in Since October 2, the Attorney Gen- Why is $40 billion not enough? The future years. I remind my colleagues, eral has issued another warning about President has proposed that $21 billion without this amendment the Congres- an eminent terrorist attack. of the $40 billion go to DOD, and that sional Budget Office and the Office of That is since October 2. That is since $1.5 billion go to foreign aid programs. Management and Budget would be ex- the letter referring to the agreement The President has proposed less than $9 pected to add over $177 billion—it concerning the top line of $686 billion. billion for New York. would start with $15 billion—to add We have received information about a Hear me, Governor Pataki, hear me! over $177 billion over the next 10 years. possible terrorist attack on the Three The President has proposed less than $9 That is not my intent. That is why I Mile Island nuclear facility in Pennsyl- billion for New York City despite our have an amendment ready. vania since October 2, that letter of promise of $20 billion to New York Let me say to all Senators, this Sen- agreement among the executive and City. That leaves less than $9 billion ator has no hidden agenda in offering legislative branches that the top line for homeland defense, and that is sim- this package, no hidden agenda. I as- would be $686 billion. ply not enough. sure Senators and assure the Senate The National Guard troops have been One cannot make a silk purse out of that the $15 billion in spending con- dispatched to protect the Golden Gate a sow’s ear. One cannot make a violin tained in this bill is not intended to re- Bridge since October 2. out of a cigar box. sult in a permanent increase in spend- The President has given the Amer- That leaves us with a choice of not ing. This spending is intended to ad- ican people a pep talk. God bless him. meeting our commitment to New York dress the clear inadequacy of Federal, He is a nice fellow. I like him. The or not providing for a strong homeland State, and local capabilities to respond President has given the American peo- defense. That is a choice I do not want to a clear and present danger to our ple a pep talk telling them they are to make. That is a choice I will not homeland defense. now living in a different world and urg- make. That simply is not acceptable. I am not interested in playing the ing them to answer a call to war in our That is not living up to our word. That game of baseline bingo. The amend- own land. is not keeping our commitment. That ment I offer would make it clear that And yet, there are those who would is breaking our word. it is a one-time $15 billion expenditure. say this is not an emergency? Yet, we The world has changed. The world I hope a point of order will not be have war, not just in Afghanistan but has changed since Congress approved made. also in our own land. Tell that to the the $40 billion supplemental on Sep- We must have a recrudescence of con- farmer sitting by that cold stove on tember 14. The threat of terrorism is fidence in the determination of our the plains. Tell that to the coal miner no longer theoretical. It is real. When elected officials to recognize terrorist as he emerges from the dark bowels of Congress approved the $40 billion pack- attacks before they happen and take the earth after a hard day’s work. Tell age, we were only beginning to learn of every possible step to minimize them if that to the mother who has children the extent of the damage and the an- they do. The administration has re- she takes to school in her own auto- thrax attacks that had occurred. The sponded to this by advocating addi- mobile. Tell all of these that there is President’s proposal does not provide tional money for bioterrorism preven- no emergency. Tell them that there is sufficient resources for responding to tion and additional National Guard no war going on. the threat of bioterrorism or threats to troops at our Nation’s airports. That is A few days ago, President Bush asked the American food supply. Nor does it necessary, but it is not enough. We the House and Senate leadership and include sufficient resources to protect cannot expect the American people to the Appropriations Committee chair- our Nation’s transportation system for take comfort in our efforts if we only men and ranking members to come to our airports, mass transit, river ports, address the threat of the day, whether the White House; let us reason to- seaports, or Amtrak. Nor does it pro- it be anthrax or airline security. We gether. He wanted us to come to the vide sufficient resources to improve se- cannot wait until there is an attack on White House to discuss the completion curity at our borders or to improve se- a nuclear facility. We cannot wait until of the appropriations bills. I went. curity at nuclear powerplants and labs, there is an attack on our mass transit While the meeting was intended to be or at our Nation’s dams and reservoirs. system. We cannot wait until there is a discussion as a need to provide addi- That is why I have included $15 billion an attack on our food supply before we tional funding in response to the at- for homeland defense in this bill. react. We have to take preventive steps tacks of September 11, the President On November 7, several press reports now before an attack kills more of our used the meeting as an opportunity to indicated the White House is weary innocent citizens. We must anticipate tell us that he would veto the Defense that any additional spending approved our vulnerability, not wait for them to appropriations bill if Congress included now will be built upon in coming years, be shown to us on CNN. additional spending beyond the $686 bil- and I shall quote an AP story. The economy will continue to rise lion top line for the 13 appropriations What it had to say is this: Possibly and fall, like the tides of the sea, but a bills and the $40 billion level approved forces President Bush to confront an sense of security for the American peo- by Congress on September 14 in re- endless stream of budget deficits just ple is something that must not be al- sponse to the September 11 attacks. as he prepares for reelection in 2004. lowed to wax and wane. The Congress I assure the Senate that we are not Watch out now. In order to respond has the opportunity before it adjourns breaking the $686 billion top line agree- to the White House anxiety about this for the year to show the American peo- ment on spending in the fiscal year 2002 spending, I intend to offer an amend- ple that their elected officials have bill. We have worked hard in the Sen- ment, if I have the opportunity to do made every effort to prevent future ate to produce bipartisan bills that so. Let me offer this amendment. I in- terrorist attacks. We can take preemp- conform to that October 2 agreement. tend to offer an amendment to direct tive steps to combat terrorism on the We took a handshake, and it was an the Congressional Budget Office and homefront, with a health care system old-time handshake. We are keeping the Office of Management and Budget that can respond to bioterrorism, a November 14, 2001 CONGRESSIONAL RECORD — SENATE S11751 safer food supplier, more secure air- tem, and that it will eventually be found in ceeded in weaponizing the virus and manu- ports and railroads, stringent border a mailroom or pouch bag, he said. ‘‘If there factured up to 100 tons annually at a plant security, and State and local law en- had been a letter that had gone beyond that outside Moscow. He described experiments in which the Soviets planned to place smallpox forcement that is trained and prepared into our system, we assume by now we would have seen it.’’ warheads atop intercontinental ballistic to handle a terrorist attack. As officials were looking for the real an- missiles. It is unclear whether any warheads It is not enough that we make im- thrax letter yesterday, the U.S. Capitol po- were tested. provements to airport security or bio- lice were dealing with reports of a phony one ‘‘We do not have the confidence that the terrorism prevention. We cannot pro- found on the desk of one of their own offi- Russians are not at this moment proceeding tect ourselves if we only focus on our cers. with research on biological weapons,’’ Hen- vulnerabilities after they have been ex- The officer has been suspended and accused derson said, noting that as recently as the of leaving a note and a powdery substance at early 1990s Russian scientists tried to com- ploited by homicidal maniacs. We must bine the smallpox and Ebola viruses in be more prepared than that. A focus on his post in the Cannon House office building. The substance was not hazardous but the search of an even deadlier agent. every aspect of our homeland defense is department was taking the situation very se- As the man who led the effort to eradicate essential in order to reveal and repair riously, according to U.S. Capitol Police Lt. smallpox in the 1970s, Henderson is familiar with the potential consequences of a reemer- every weakness that we may find. Dan Nichols. These are basic safety precautions. Federal officials during recent weeks have gence of the disease. Because it is contagious and cannot be treated with existing drugs, tried to get across the message to anthrax These basic safety precautions must be its virus is widely considered to be the most hoaxers that their pranks will be penalized implemented before the Congress ad- potent biological weapon. journs for the year. We cannot wait for harshly. ‘‘The likelihood of a smallpox release is another year and another Congress to In a radio address last week, President much smaller than an anthrax release,’’ he Bush said ‘‘sending false alarms is a serious said. ‘‘We’re worried about it because it convene before we come to grips with criminal offense.’’ the horrible reality of another disaster could be far more serious.’’ Lt. Nichols said a criminal investigation A person infected with smallpox often de- like the Twin Towers or the deadly at- into the incident is under way and findings velops a fever and, later, a rash. Smallpox tack on the Pentagon. Every man, will be sent to the U.S. Attorney’s Office and vaccine administered within two or three woman, and child in America expects the police department’s internal affairs divi- days of exposure has been effective in pre- our utmost now. Let us act before it is sion. venting the illness from developing, he said. too late. The suspended officer was not identified. If Historically, 30 percent of people infected Mr. President, this is an emergency. convicted of a hoax, he faces up to five years with the smallpox virus have died, he said, in prison and as much as $3 million in fines. On a monument to Benjamin Hill— estimating that the eradication of the dis- ‘‘He’s been accused of this, and he’s sus- ease two decades ago has saved 60 million great Senator and great orator—to be pended without pay, but he hasn’t been people and protected 240 million others from seen in the city of Atlanta, GA, are charged with anything yet,’’ said Jim illness. these words: Forbes, a spokesman for U.S. Rep. Bob Ney, Since the Sept. 11 terrorist attacks and the Who saves his country, saves all things, Ohio Republican, who heads the committee subsequent anthrax attacks, Henderson has saves himself, and all things saved do bless that oversees U.S. Capitol Police. advocated an aggressive smallpox strategy, him. Who lets his country die, lets all things Mr. Forbes said there is no reason this offi- including the stockpiling of vaccine. He reit- die, dies himself ignobly and all things dying cer would be exempt from charges similar to erated yesterday that he would not support curse him! those faced by other anthrax hoaxers. widespread, mandatory vaccination but that he wants to have the vaccine on hand in the Mr. President, let us act to save our ‘‘He’s not exempt from anything,’’ Mr. Forbes said. event of an attack. country. ‘‘A smallpox outbreak anywhere in the [From the Washington Times, Nov. 14, 2001] [From the Washington Post, Nov. 7, 2001] world is potentially an international dis- aster,’’ Henderson said at a bioterrorism con- STATE DEPARTMENT FEARS ANOTHER HHS SET TO ORDER SMALLPOX VACCINE FOR ference at the Johns Hopkins Paul H. Nitze ANTHRAX-TAINTED LETTER ALL AMERICANS (By Guy Taylor) School of Advanced International Studies. (By Ceci Connolly) For that reason, he said, federal health offi- The State Department said yesterday it is Health and Human Services Secretary cials have begun informal talks with Japan, searching worldwide for another anthrax- Tommy G. Thompson said yesterday that he Brazil and several countries in Europe on the tainted letter. expects to sign a contract his weekend to stockpiling of smallpox vaccine. At least one letter like the one sent to purchase enough smallpox vaccine for every If even a single case emerged, Henderson Senate Majority Leader Tom Daschle is American but that he has warned the White said, he would assume that it was the work packed in with State Department mail that House the cost could be quadruple the $509 of terrorists and would rapidly order quar- was halted last month, said the department’s million he originally estimated—or equiva- antines and vaccinations to ‘‘build a barrier top spokesman, Richard Boucher. of immunity.’’ Meanwhile, the last of the Washington- lent to the department’s entire $1.9 billion bioterrorism budget. The United States has about 15.4 million area survivors of inhalation anthrax left the doses of the old smallpox vaccine available, hospital yesterday after a 25-day stay. Thompson said that he was disappointed the bids from three companies came in and government researchers say it may be Leroy Richmond, 57, of Stafford County, possible to dilute those doses to vaccinate 50 Va., is believed to have contracted the dis- around $8 a dose but that he hopes to settle on a lower price in final negotiations on Fri- million to 77 million people. Thompson re- ease when the Daschle letter went through cently expanded and accelerated a contract the District’s Brentwood Mail Processing day, as he did in his recent talks on the anti- biotic Cipro. with OraVex Inc. (subsequently bought by Center. British drugmaker Acambis PLC) for the de- Another Brentwood postal worker left the In addition to the 54 million doses already livery of 54 million doses by the end of next hospital Friday, the same day an employee on order, Thompson said he plans to stock- pile 250 million doses of new vaccine, or year. at a State Department mail-handling facil- A task force appointed by Thompson is re- ity in Sterling, Va., went home. enough for ‘‘every man, woman and child’’ in the country. viewing the three bids and debating safety, The State Department closed its mail sys- efficacy and possible human clinical trials. tem Oct. 24 when the Sterling employee The previously announced administration effort to vaccinate all Americans against Already, hundreds of volunteers in the came down with inhalation anthrax. It also United States are receiving the vaccine as notified posts worldwide to seal and shut smallpox, a deadly disease that was eradi- cated in the 1970’s, took on a renewed sense part of a rushed study on the efficacy of di- down pouch mail. luting the old vaccine. of urgency as one of the leading smallpox au- Mr. Boucher said eight out of 55 samples Later this week, newly formed smallpox thorities warned it was conceivable that taken from the Sterling facility tested posi- teams at the Centers for Disease Control and tive for anthrax. Two of the samples came former Soviet scientists were helping to Prevention will take a crash course on the from two separate mail sorters and six were ‘‘weaponize’’ the smallpox virus for nations virus with two former CDC experts. The class found on a third sorter. such as Iran, Iraq, Libya and North Korea. will focus on identifying, isolating and treat- The high concentration of spores on a sin- Many [Russian] scientists are really quite ing the disease, said spokesman Tom Skin- gle sorter indicates ‘‘that there is a letter desperate for money,’’ said Donald A. Hen- ner. More than 100 CDC epidemiologists have like the one sent to Sen. Daschle that has derson, director of the new Office of Public also received the vaccine, he said. moved through our mail system,’’ Mr. Bou- Health Preparedness. U.S. intelligence indi- [From the Washington Post, Nov. 7, 2001] cher said. ‘‘We are now proceeding to go look cates that several have been recruited by at all the mail that we have held up, frozen, ‘‘rogue states’’ and were in a position to SOCIAL SECURITY CHECKS LATE, RECIPIENTS sealed off, in mailrooms in this building, an- smuggle out a vial of the virus, he said. SAY nexes and around the world.’’ ‘‘That’s a very great worry.’’ (By Spencer S. Hsu) Officials have to assume that there is a In addition, Henderson said, there is evi- The number of District residents who said contaminated letter of some kind in the sys- dence that the former Soviet Union suc- the Social Security pension or disability S11752 CONGRESSIONAL RECORD — SENATE November 14, 2001 payments are missing doubled this month, tion to encourage applicants to work Senator BYRD has given a list of con- with many of the complaints coming from with the companies which the Senator cerns that we all share. I do not believe neighborhoods served by the now-closed from New York has described. any Member of the Senate is less con- Brentwood mail distribution center. The PRESIDING OFFICER. The Sen- cerned about security of our homeland Deborah Fowler, 35, said she and several other people who live in the 20019 Zip code ator from Nevada. and our people than any other Member have not received checks that normally ar- Mr. REID. I know the Senator from of the Senate. The President, whether rive the first of each month. Her Northeast Texas has been here for several hours he is right or whether he is wrong, said neighborhood is across the Anacostia River and I will finish in one moment. the $40 billion that we have given him, from Robert F. Kennedy Memorial Stadium. I say to the Senator from West Vir- which he is in the process of spending— Fowler said that employees at nearby post ginia, I was privileged to be able to lis- $20 billion of which we will have an op- offices told her the checks may be lost and ten to the speech, and I am better for portunity to set partial priorities on— that the Social Security Administration said having done it. I have so much respect is sufficient through the end of the it would take seven to 10 days to issue a re- and admiration for the Senator. One year. At the beginning of next year, if placement check. thing that always amazes me is the ‘‘We still have to pay rent. If the rent’s not more funds are needed, he would like paid, there are late fees on everything,’’ great memory of Senator BYRD, recit- the opportunity as President to review Fowler said. ing the signers of the Constitution the need, to involve the Cabinet offi- Since Brentwood closed Oct. 21 because of from memory, and of course ending the cers and members of the executive anthrax contamination, the District’s mail remarks with this statement of Sen- branch and potentially independent has been processed through distribution cen- ator Hill. I appreciate very much hav- agencies in doing a comprehensive re- ters in the suburbs. Deborah Yackley, a ing the privilege of listening to the view, and to send a request to the Con- spokeswoman for the Postal Service, ac- Senator from West Virginia. gress for those funds. knowledged that some mail, including some Mr. BYRD. I thank the distinguished The question proposed by the Byrd Social Security checks, may be delayed be- whip. amendment, which is only a small part cause of the temporary arrangement. Chris Williams, a Social Security Adminis- The PRESIDING OFFICER. The Sen- of the bill against which I make a point tration spokesman, said people who have not ator from Texas. of order, is the basic approach that we received checks should sign up for direct de- Mr. GRAMM. Mr. President, first I should act now and that we should set posit of payments to a bank account, call the thank Senator BYRD for his speech. I these priorities as Congress. I believe it agency’s toll-free number (1–800–772–1213) to want to clarify exactly where we are, is a joint process involving the Presi- request a replacement check and contact exactly what the rules of the Senate dent and the Congress. The President their local Social Security office for imme- are, the issues I believe are involved, has said that he would veto a bill that diate relief. and then I will make a point of order. breaks the budget caps, even with the ‘‘We don’t have a hard and fast rule, it’s I think I can do all that fairly briefly. best of objectives. I make this point of basically up to the discretion of the case We have before the Senate a bill manager,’’ Williams said of the later request. order, not because it solves our prob- ‘‘We can certainly give them payment very which is the House bill, H.R. 3090. That lem by killing the underlying sub- quickly on the amount of money they’re bill has been brought to the floor of the stitute, but because I see it as an im- due.’’ Senate. Now there is an amendment to portant step in the right direction. Williams said 245 D.C. recipients have re- that bill in the nature of a substitute, The problem is we have our ideas as ported missing checks, compared to fewer which is pending. Part of that sub- Republicans. Democrats have their than 100 in a typical month. About 93,000 stitute is Senator BYRD’s $15 billion ideas as Democrats. In this case, for residents receive monthly payments, 30,000 amendment, but $67 billion has to do the first time since September 11, we in of them through the mail. with tax and spending provisions as di- the Senate have not successfully been SOFTWARE TECHNOLOGY INDUSTRY verse as giving Federal funding for able to come together on a bipartisan Mrs. CLINTON. Mr. President, I health insurance for the unemployed basis. So rather than spending the rest strongly support the amendment of the and an innumerable list of large and of this week making partisan speeches distinguished senior Senator from West small items to be given some form of where Democrats point out and vilify Virginia, the chairman of the Appro- subsidy or tax treatment. some part of the Republican stimulus priations Committee, Mr. BYRD. The In the 2001 budget, we reached a con- proposal and we pick out some small chairman has put together this very clusion about a provision we added to provision and burrow in on it—rather well conceived $15 billion package of the old Gramm-Rudman law in 1990, than waste the week in doing that, my appropriations to address the Home- which gave emergency designations, objective in making the point of order land security needs as quickly as hu- where you wrote a budget, the budget is to make it clear that the provision manly possible. was binding, but if the Congress and before us cannot pass and begin the I call to the attention of the distin- the President agreed, there was not a process whereby we go into negotia- guished Senator from West Virginia point of order against a provision. It tions, hopefully involving the House the devastating impact that the tragic was decided in the 2001 budget that this and the Senate, Democrats and Repub- events of September 11, 2001 had upon process had been greatly abused and so licans and the White House, to try to the software/information technology it was changed. It was changed so there come up with a stimulus package. industry in and around New York City. would still be an emergency provision I think the American people want us Eighty-five percent of these software/ for defense-related matters, but there to work together. Working together information technology companies em- would not be an emergency provision means I am not going to get everything ploy less than 100 persons. The survival to waive or get by the budget con- I want. Our Democrat colleagues are of this industry is vital to the recovery straints that we had imposed on our- not going to get everything they want. efforts of New York City and to the na- selves for non-defense matters. But in the end, I believe we can tional interest. Accordingly, it would The point of order that I will make is produce something that will be worthy be my hope that, in their administra- not a point of order that Senator of being adopted. tion of the programs for which funding BYRD’s provisions are not emergencies. Mr. President, I make a point of is provided herein, all agencies are They are not a point of order against order that section 909 of amendment strongly encouraged to develop pro- provisions that would use poultry No. 2125 to H.R. 3090 is in violation of posals which, to the maximum extent waste to create energy. It is simply a section 205 of House Concurrent Reso- possible, take into account the dire cir- point of order that says we do not have lution 290, the fiscal year 2001 budget cumstances faced by these companies. a procedure whereby you can protect resolution. Sustaining this point of Would the chairman agree? yourself in advance against a budget order will not bring down the bill Mr. BYRD. I thank the junior Sen- point of order except in strictly defined itself. The House bill will still be there. ator from New York for her support of areas related to national defense, so It will then be subject to amendment if my amendment. Yes, I do agree with that the waiver that is written into the we work out a bipartisan compromise. the Senator that the various agencies bill is basically a waiver which is But it will pull down the committee which receive funding under my banned under the budget process as it substitute. amendment should take notice of this was amended by the 2001 budget. That The PRESIDING OFFICER. The Sen- colloquy and take all appropriate ac- is the point of order that I will make. ator from Montana. November 14, 2001 CONGRESSIONAL RECORD — SENATE S11753 Mr. BAUCUS. Mr. President, I move lier in the day, we knew that is what We have an economy in which we to waive section 205 of H. Con. Res. 290, you were going to do. I would say to have buyers and sellers, consumers and the concurrent resolution on the budg- my friend from West Virginia, if you producers, demand and supply, and we et for fiscal year 2001, for the purposes have some objection, that is the status have an economy in which for two cen- of the pending amendment. of the parliamentary procedure. We turies in a market system we have ex- I ask for the yeas and nays. knew he was going to do it. He didn’t pansion and contraction. It is called The PRESIDING OFFICER. Is there a do it when he should have. the business cycle. No one has been sufficient second? Mr. BYRD. Is the Senator asking able to interrupt the business cycle There is a sufficient second. unanimous consent that the yeas and very much. We can establish some sta- The yeas and nays were ordered. nays be ordered? bilizers here in Congress to try to even Mr. GRAMM. Mr. President, I ask for Mr. GRAMM. I could ask it either out some of the movement of the econ- the yeas and nays on the underlying way. I could ask unanimous consent it omy, but the business cycle is central. amendment. be in order to ask for the yeas and It is like the tide. But we are not here The PRESIDING OFFICER. Is there nays. Why don’t I do that. to talk about the business cycle. We objection to this request? I ask unanimous consent that it be in are here to talk about an economy that Mr. BYRD. Mr. President, reserving order to ask for the yeas and nays on was on a down cycle in the contraction the right to object. the underlying Baucus amendment. phase when on September 11 it was Mr. REID. Objection to what? The PRESIDING OFFICER. Is there dealt an enormous blow. The PRESIDING OFFICER. Is there objection? Without objection, it is so As a result, we have had hundreds of objection to the request of the Senator ordered. thousands of people having to go home from Texas. Mr. GRAMM. Mr. President, I ask for at night and say to their family: I have Mr. BAUCUS. Mr. President, I sug- the yeas and nays on the underlying lost my job. Last month alone, 415,000 gest the absence of a quorum. Baucus amendment. people had to go home and tell their The PRESIDING OFFICER. Is there a The PRESIDING OFFICER. The family: I have lost my job. It wasn’t sufficient second? There is a sufficient clerk will call the roll. my fault, I am sure they said, but I second. The legislative clerk proceeded to have lost my job. call the roll. The yeas and nays were ordered. Mr. BYRD. Mr. President, I suggest This economy is in very deep trouble. Mr. REID. Mr. President, I ask unan- This Congress has a very substantial imous consent the order for the the absence of a quorum. The PRESIDING OFFICER. Will the responsibility at some point to come quorum call be dispensed with. Senator withhold his request for a together with this President and find The PRESIDING OFFICER. Without quorum call? ways to respond to it. objection, it is so ordered. Mr. BYRD. Mr. President, I withdraw There are a couple of proposals we Mr. GRAMM. Mr. President, I ask my suggestion. have offered today. One is a set of pro- unanimous consent that the yeas and The PRESIDING OFFICER. The Sen- posals by Senator BAUCUS, and the nays be ordered on the underlying com- ator from North Dakota. other is a set of expenditures dealing mittee substitute. Mr. DORGAN. Mr. President, I was with homeland defense offered by Sen- The PRESIDING OFFICER. Is there present for most of the presentation by ator BYRD. Both of them have the ca- objection to it being in order to request my colleague from West Virginia, Sen- pacity to provide a lift to this econ- the yeas and nays? ator BYRD. I will not repeat much of omy. Both of them represent a menu of Mr. REID. I want to be sure the what he described as an emergency items that will be helpful to an econ- record is clear it is the Baucus sub- with respect to the provisions that he omy during troubled times. stitute. has offered dealing with homeland de- Some others say: Well, this economy The PRESIDING OFFICER. Is there fense. works only when you pour something objection? But there is a time, it seems to me, in the top and it filters down to the Mr. BYRD. I object to the request. As for leadership. I recall reading in John bottom. That is trickle-down econom- I understand it, the Senator is asking Adams’s book a letter he had written ics. Even during tough times, we see the yeas and nays be ordered by unani- to his wife, Abigail, in which he de- those who believe in the trickle-down mous consent. I am opposed to that. scribed the difficult times in trying to theory at work to formulate a package Mr. GRAMM. Will the Senator please form this new country and find leader- to try to deal with what is called ‘‘eco- yield? ship. He expressed great woe to his nomic recovery’’ or ‘‘stimulus’’—kind Mr. BYRD. Yes. wife, Abigail, saying: Where are the of representing the trickle-down ap- Mr. GRAMM. We had gotten the yeas leaders? Where are the people who will proach. Just pour something in the top and nays on the point of order before I rise up and provide leadership at this and somehow it all comes down to the had an opportunity. We had talked to urgent time in this country? Then he bottom. the leadership on your side about or- lamented: There is only us: Wash- We have seen during tough times on dering the yeas and nays on the amend- ington, Jefferson, Franklin, Madison. other occasions where some had the re- ment. And because we had ordered the Of course, over a couple of centuries sponsibility and said: Let’s do nothing. yeas and nays on the point of order, it we have discovered that the ‘‘only us’’ Let’s just sit for a while and see what was not in order for me to simply re- represented some of the greatest lead- happens. Let’s just wait and see. quest it. So, therefore, I asked unani- ership in human history. Herbert Hoover had that notion. He mous consent. But I think it is important to ask said: We will wait and see and let ev- Mr. REID. Will the Senator from again, Where is the leadership when we erything take its course. He felt there Texas yield? need leadership? was no need for intervention. Of Mr. GRAMM. Yes. We have an economy that is in very course, we sank deeper and deeper into Mr. REID. I would say through you difficult trouble. The economy was a recession and then a depression. to my friend from West Virginia, the very weak prior to September 11. But We know from those experiences that Senator from Texas indicated to us he on September 11, terrorist attacks cut there are things we can do. We also was going to ask for the yeas and nays a hole in the belly of this country’s know from the experiences of the past on the Baucus amendment. We ac- economy. century or so that this economy rests knowledge he was going to do that. The question for us is, What do we on a mattress of hope and confidence. From a parliamentary standpoint, he do? Do we do nothing? Do we say this If people aren’t confident, they do should have done that before he raised is simply the normal movements of an things that express their concern about the point of order. Now that he raised economy, the expansion and contrac- the future. They defer decisions to the point of order, he can’t ask for the tion of an economy, or do we recognize make purchases of cars or homes or to yeas and nays unless it is by unani- that something different and unusual take vacations and so on. If they are mous consent. As far as we are con- has happened that requires an urgent confident, they make exactly the oppo- cerned over here, at least me rep- response by the U.S. Congress? I be- site judgment. They feel secure about a resenting the arrangement we had ear- lieve the latter is the case. job. They feel good about the future. S11754 CONGRESSIONAL RECORD — SENATE November 14, 2001 They take that vacation, buy that car mists, is to provide stimulus to this BYRD offers today is one that deals and invest in that home. This is all economy. with homeland defense, bioterrorism about confidence. Nearly one-half of the people who prevention and response, and food safe- I have said before that some view have been laid off don’t have unem- ty. I went to a dock in Seattle, WA, this system of ours like the engine ployment benefits at all. Providing un- one day just to see what happens at room in a ship of state. If you just go employment benefits and extending it these docks. I come from a State that to the engine room and take a look at for those who do have it is a certain does not have dock facilities. We are a all the gauges, dials, nozzles, and let- way to put some money into this econ- landlocked State right in the middle of ters, then adjust all of them—M–1B omy. It is important to do so. These our country, the State of North Da- over here, and investment tax credits are folks who were working and who kota. So I was at the Seattle docks, over there, and accelerated deprecia- were laid off through no fault of their talking to people about what is coming tion—you just get all these knobs and own. They, too, are victims of ter- into our ports and how they deal with letters and dials going just right and rorism. it. I saw these container ships being somehow the ship of state comes along. When we debate these issues, we have unloaded with these large cranes. Then In fact, that is not the case at all. some who do not think those folks are they took me over to an inspection There is a lot we don’t know about very important. They say that is site. They opened the back of one of the economy. What we do know, how- spending. Just spending on those folks these containers, which was now rest- ever, is that engine room in the ship of is not the right thing. During every ing on an 18-wheel truck, because they state runs almost exclusively on the economic downturn we have had, our just drive these trucks underneath and American people’s confidence about first responsibility was to help those drop the container, and then run the our country and its future. How do we who needed help—to provide a helping trucks off someplace to the rest of the at this point in time respond when we hand, to reach out and say they are not country. had a troubled economy, then that alone. What they had opened was a con- economy took this horrible blow on Will Rogers talked about the inclina- tainer of frozen broccoli from Poland. September 11, and as a result of that tion of some with whom we serve. It It was bagged in, I believe, 100-pound we see a contraction, hundreds of thou- has been ageless, of course. He said: bags. They took a knife and opened a sands of families losing their jobs? How The unemployed here ain’t eating regular, bag of this frozen broccoli from Poland. do we then respond? What do we do to but we will get round to them as soon as we I asked the people who were showing offer confidence to the American peo- get everybody else fixed up OK. me all of this: Do you know where this ple? It seems to me, part of a package to broccoli was produced in Poland? Do The September 11 tragedy was fol- provide hope and encouragement to you have any idea? lowed by the anthrax attacks in sev- this country and to try to stimulate They said: Oh, no, we wouldn’t have eral places in this country. It has been this economy is to take a look at those any idea about that. very unsettling to the American peo- who have been victims of these ter- I asked: Do you have any idea what ple—being attacked in this country rorist attacks and victims of a down- kind of chemicals were applied to this through the mail and using the Postal turn in this economy and say to them: frozen broccoli from Poland? Service as a delivery mechanism for We can give you some help. They said: No, we wouldn’t have any terror. It has caused great concern to Nearly every economist in this coun- notion of that. virtually everyone. try says when you extend unemploy- I asked: How many of these con- In fact, a county sheriff in North Da- ment benefits to help to those people tainers with frozen broccoli or frozen kota called my office about a week or who have lost their jobs, this is money asparagus or peas, or whatever else is so ago and said someone in his county that goes right into the economy. coming in in our food supply, are actu- had called him. They had gotten a let- Some have said—in fact, I have heard ally opened? The one you open, you do ter from me and wondered whether it it in recent days—if you provide unem- not know much about. All you can tell was safe to open a letter from Senator ployment benefits, it reduces the urge is it is green and frozen and it is a veg- DORGAN because they heard about all of for those folks to look for work. Look etable, but how many of these con- this anthrax. All of a sudden, they get for work? They were working. They tainers actually get opened? a letter from Washington, DC, in the lost their jobs because of the economy. They said: Oh, probably just 2 or 3 mailbox. I was responding to their let- Does anybody think any one of these percent. The rest of them just move ter, perhaps. They wondered whether it people would have chosen not to work? right on through. was safe. Half of them do not have unemploy- It is a steel container with frozen In every part of the country people ment benefits. Does anybody here vegetables, and it hits these shores. It worry about these issues. think they would have chosen that un- is put on top of 18-wheelers, and off it You have the September 11 terrorist fortunate circumstance where they goes someplace to a distribution center attack—this act of mass murder by have to go home after work some night and then someplace to a restaurant and mad men. Then you have the anthrax and say, ‘‘By the way, I want you to then someplace to a dinner plate. And attack. Then you have an economy know, I have lost my job?’’ I do not we do not have the foggiest idea how it that is in very deep trouble. Last think that is something that someone was produced, what chemicals were month’s figures show 415,000 people are would choose. We have a responsibility used or whether someone deciding to now newly unemployed. What do we do to help. introduce bioterrorism in America’s about that? So Will Rogers described the cir- food supply found a way into that con- The interesting thing about the cumstances that still exist. Fortu- tainer. We do not have the foggiest no- newly unemployed is in almost all nately, it exists only in a small pocket tion about what the circumstances are cases they are the people at the bottom here in the Congress. Most people un- with that broccoli. going up the economic ladder. They are derstand the responsibility to do this. Senator BYRD, in his proposal, says the people who know about second- We need to extend unemployment that, too, is an issue of homeland de- hand, second shifts, second mortgages, benefits. We need to provide some fense, protecting America’s food sup- and second jobs. They are the folks short-term help with the health insur- ply. Should American consumers, with who deal with all of those issues in ance needs of those unemployed folks the threat of bioterrorism, inspect their daily lives. Now they deal with called COBRA. We can do all of that. more than 2 percent of the food coming the issue of being laid off. The question Now let me turn, just for a moment, into this country, of those commod- for Congress from them is, What can to the remarks of Senator BYRD, be- ities coming into this country? I be- we do here? What can we do to try to cause what he said is very important. lieve they should inspect more than get them back on their feet? Part of economic recovery in this coun- that. So that is homeland defense. That is a way of saying that part of try is, as I said, giving people con- Senator BYRD’s homeland defense this stimulus package must be to ad- fidence about this country, where we proposal also invests in State and local dress those issues. Addressing those are headed, and what kind of security antiterrorism law enforcement. Invest- issues, according to almost all econo- exists. So the package that Senator ing in that kind of law enforcement is November 14, 2001 CONGRESSIONAL RECORD — SENATE S11755 not only necessary, it also improves have done that before. Some are more Then he wrote: confidence. It also will stimulate con- successful and some are less successful. The Senate Republican bill, which the ad- fidence in this economy. There are some common provisions ministration backs, in some ways would Remember, on September 11, while in both the House and the Senate bills make things even worse by granting bigger we all watched television, with great that makes sense. Additional expensing benefits to very high earners. For instance, horror, others in this country were makes sense. Some bonus depreciation the $50,000 family would still get zero but doing something quite different. Men makes sense. I happen to think a tar- this plan would give $500,000 over four years and women, making $40,000 and $50,000 geted investment tax credit would to families making $5 million a year and much of that after (one hopes) the economy a year, wearing the badges of law en- make some sense. I want to make a couple of points has recovered. It directs very little money to forcement and firefighters, were run- those who would spend it and offers few in- ning up the stairs of the Trade Center. about some provisions that have been centives for investment now. They were running up the stairs on the kicking around here that are in either the House or the Senate Republican The point is, we are required to not 20th, 30th, 40th, and 50th floors. And as only do something but to do the right people evacuated those buildings, they proposals that make no sense at all. What we have to do is get to the core thing. This economy is contracting. saw the first responders—the fire- The economy declined by .4 percent in fighters and law enforcement folks— of what works, to provide some help to this country’s economy. One of things the third quarter. The new figures will going up. They did not do it because of likely show we are in a recession. Al- their salary. They do not make much that happened—this is in the House of Representatives stimulus bill—is they most everyone in the field of econom- money. They did it because they were ics believes that. It could very well be the first responders required to protect decided to give retroactive tax cuts in the form of payments to some of the a very deep recession. this country and their city. Factory orders dropped 5.8 percent in State and local antiterrorism law en- largest corporations in the country, September, the lowest level since forcement, Senator BYRD says in his retroactively refunding the alternative March of 1997. Corporate profits proposal. Do we need that kind of in- minimum taxes that were paid by the dropped 72 percent in the third quarter. vestment? You bet we do in virtually companies. Unemployment is 5.4 percent, up a per- every reach of this country. I was in the other body, and I was on cent and a half from last year; 415,000 FEMA firefighters grant program: the House Ways and Means Committee job cuts in the month of October alone. Absolutely necessary. when we wrote the 1986 Tax Reform The Federal antiterrorism law en- Act. I was one of those who helped Consumer confidence is way off. Con- forcement, border security, airport se- write the alternative minimum tax. It sumer spending has plunged. We have curity: I’ve been very concerned about has turned into something that we did substantial excess capacity in our the northern border. I am concerned not intend back then, but, nonetheless, economy. That is why putting substan- about all of our borders around this the reason we did it is we had all these tial money into the top in the form of country. You cannot provide security stories. I recall one of them was Gen- a billion dollars here and a billion dol- in America unless you have security of eral Electric making $1 billion and lars there to one corporation is not your borders. You must know who is paying zero in taxes—zero. We decided going to do very much if you have sub- coming in, and make sure those who that was not fair and it was not some- stantial excess capacity. are associated with terrorists or known thing we wanted to see happen. So we The problem is that the economy is terrorists are not allowed in. thought, if someone is able to zero out in deep trouble. The question is, What On the northern border we have a their tax liability with all kinds of do we do? The answer is, What we do wonderful, long 4,000-mile border with other devices, let’s have an alternative ought to be temporary, No. 1; No. 2, it a great neighbor, the country of Can- minimum tax, so those who have ought to be immediate. The legislation ada. We are so fortunate to be able to earned substantial profits will at least brought to us from the House fails on share that border with a good neighbor. pay some taxes. That is called the al- both counts. The proposal that is of- But it is true, on 4,000 miles of border, ternative minimum tax. fered by Senator BAUCUS and Senator The stimulus package enacted by the we have 128 ports of entry, and over 100 BYRD succeeds on both counts. House of Representatives says that we of them are part time. In most cases, I mentioned a moment ago the alter- are going to give back immediate tax at 10 o’clock at night, the security be- native minimum tax retroactive re- refunds for all the alternative min- tween the United States and Canada is fund, $7.4 billion for 16 large compa- imum taxes paid back to 1986. So we an orange rubber cone that someone nies. Senator BYRD talked about the will send IBM a check for $1.4 billion, puts in the middle of the road as they need for investment in this country, Ford Motor a check for $1 billion. shut the station down. That orange the need for helping people who are out Can you imagine that? How is that of work with extended unemployment rubber cone that cannot shoot, cannot going to stimulate the economy? Tom think, cannot talk, and cannot tell a benefits during tough times. That Paxton once wrote a song, when Chrys- amount, $7.4 billion, could help State terrorist from a tow truck. It is sup- ler got a bailout, saying: ‘‘I’m changing and local governments hire the first re- posed to be security. Do we need to do my name to Chrysler.’’ Now maybe he sponders, fire and police protectors, something about that? The answer is, would write a song saying: ‘‘I’m chang- and training. It could help deal with clearly, yes. And Senator BYRD, in his ing my name to Ford.’’ proposal of homeland defense, does Are we going to give refunds of bil- the U.S. Postal Service needs. that. lions of dollars to refund the alter- I did not mention but Senator BYRD Airport security, mass transit secu- native minimum tax that corporations talked about the need that is required rity, Amtrak security, nuclear power- pay? How does that help this country’s now by the Postal Service to find the plants: I will not go through all of it, economy? technology to irradiate the mail, make but I think Senator BYRD did it in a In the Washington Post this past sure the mails are safe. It is a whole se- very thorough way. I will only say this: weekend, there was a fascinating op-ed ries of things dealing with the use of Can anyone come to this Senate and piece written by a Nobel Prize-winning money. Bioterrorism, if we are going to tell us this is not a set of emergency economist, Joseph Stiglitz. He wrote: pass a bioterrorism bill, how do we pay needs that are required at this point in What worries me now is that the new pro- for that? Law enforcement, infrastruc- this country? Does anybody really be- posals, particularly the one passed by the ture, all of these are needs that we lieve these are not emergency needs? I Republican-controlled House, are also likely must address. do not believe that someone can make to be ineffective. The House plan would rely Some believe this is not an emer- the case that, A, this is not an emer- heavily on tax cuts for corporations and gency. I very seriously disagree with gency; and, B, these are not necessary. upper income individuals. The bill would put that. Clearly, this country is facing an Let me turn for a moment to the pro- zero—yes, zero—into the hands of a typical emergency situation with an economy family of four with an annual income of posals on taxation. One way to provide $50,000. Giving tax relief to the corporations that is in a very steep decline. economic stimulus and recovery and for past investments may pad their balance My hope is that we will decide in the confidence is to get the economy mov- sheets but will not lead to more investments coming week or so that there is a way ing again through tax incentives. We now when we need it. for the Republicans and Democrats, for S11756 CONGRESSIONAL RECORD — SENATE November 14, 2001 the House and Senate and the Presi- the underlying House bill; there is a small business. Frankly, small business dent, to engage in the kind of negotia- point of order that lay against the Sen- was largely left out of the Senate Fi- tions that will lead to an economic re- ate Republican bill; there is a point of nance Committee and the House bills. covery or stimulus package that, A, is order against all of this. The question Small business is the driving engine of immediate and, B, is temporary, one is, Do we have an emergency in this our economy, and nobody seemed to that recognizes the requirement that country or don’t we? Those who, like care about small business. They are the we have to do this now. Herbert Hoover, want to sit around and ones taking it in the teeth in many I regret very much that a point of say, let’s just wait and see what hap- areas. So I filed amendments that do order was just raised. I understand why pens, will do this country no service. several things. First, my amendment it was raised, but I regret it was raised Let’s decide we will take action now. provides for much more generous loan because I believe a point of order also We will do it on a bipartisan basis, terms for small businesses that have exists against the underlying Repub- with Republicans and Democrats in co- been directly or indirectly affected by lican bill that is at the desk. The bill operation with the President, and do it the September 11 terrorist attacks, by that came over from the House also has in a way that will make this country deferring and/or forgiving interest on a point of order against it. It substan- proud of the service given by Congress these loans and lowering fees. In other tially delays things here in the Senate and the President. words, it says to small business that if to begin battling points of order. Ei- I yield the floor. you are willing to take the chance now ther we are going to do a stimulus The PRESIDING OFFICER. The Sen- to invest and grow your business as package or we are not. If we are going ator from Missouri. this economy starts to turn around, we to do a stimulus package or an eco- Mr. BOND. Mr. President, it is very are going to give you a break on the nomic recovery package, let’s get seri- important that we debate and under- amount you have to pay up front. You ous about it. stand where we are going on the stim- can defer paying interest until we come What I see in some of these bills, es- ulus package. I agree with what many out of this. That makes a lot of sense. pecially the one at the desk from the people have said: We do need an eco- I think, also, we need to encourage House, reminds me of what my mother nomic stimulus. We have been in a re- and ensure that small business gets a used to call supper. When asked, ‘‘What cession for 15, 16 months. September 11 share of Government procurement as is for supper?’’ she often would say, has pushed us down even further. The part of these stimulus packages. We ‘‘Leftovers.’’ We all knew what left- economists may say we have to wait pass small business bills that give all overs meant. It meant whatever else until we have two successive quarters kinds of benefits to small business and was left in the refrigerator. of negative growth, but everybody then the bureaucrats find ways around That is what we got from the House knows the economy has been going them. We need to tighten up and elimi- in their so-called stimulus package— downhill. nate those loopholes so when the Fed- all the leftovers they hadn’t gotten I also agree that what we need to do eral Government spends money, a part done in previous bills, having nothing needs to be immediate, needs to be of that money goes to small businesses to do with making something imme- stimulative, and should not be perma- for the purchase of goods or services. diate or temporary, just leftovers, just nent; it should be temporary. On the tax front, if there is one thing the old things they always wanted to I have a great deal of problems with we can do to help small business it is do. Give a refund of $1.4 billion to IBM what has been produced by the House to raise the amount of new equipment because they paid an alternative min- and what has been produced by the Fi- that they can expense. Today, if a imum tax since 1986. That doesn’t nance Committee. A newspaper that is small business owner buys a piece of make any sense. That is not going to common to the area the occupant of equipment, he can expense up to $24,000 stimulate the country. It is just the the chair and I serve—I often don’t of the purchase price. My proposal is to same old nonsense. agree with it—had an editorial today increase that limit to $50,000 that can I started talking about John Adams referring to one part of the Senate Fi- be written off immediately so they can in his book lamenting to Abigail about, nance Committee bill and talked about get an immediate tax break and don’t where was the leadership? Where is the chicken manure and applied that ap- have to depreciate it. We would also leadership? he said, during the forma- pellation to both bills, the one that raise the limit on vehicles. Right now, tive time of this country when they came out of the House and one that you can only depreciate about $14,000 needed leadership. He said: Regretfully, came out of the Finance Committee. I on vehicles. A lot of vehicles—particu- there is only us, Washington, Franklin, wouldn’t go so far myself as to say larly vans and trucks used by small Jefferson, Madison. Of course ‘‘only that. I would say, as we say back home, business—cost well above that amount us’’ turned out to be quite substantial I have a minimum amount of high en- and they can’t depreciate the full cost leadership, the greatest leadership cer- thusiasm for either one of those bills. of the vehicle. So it is a real burden on tainly in this country’s history, per- Now, on either one of them, one can small business to buy them. haps in the history of the world, the or- say these are needed things. Any bill For restaurants, which are domi- ganization of free government. that provides for research in science nated by small businesses, we ought to The question is, Where is the leader- and building infrastructure, things nor- restore the full 100-percent business ship now? The leadership offered by mally in the course of appropriations, I meal deduction. These are things we Senator BAUCUS and Senator BYRD, as- would support. We need to build high- can do on an immediate basis that will sisted by Senator DASCHLE, in trying to ways. We need to do research. There have an immediate impact on small put together legislation that will give are a lot of problems with which we businesses, their suppliers, equipment hope and confidence to the American need to pick up. Similarly, when you manufacturers, and our economy as a people—I hope as well the leadership of are talking about tax relief and tax whole. the President and others who will join cuts, the long-term good of the econ- I also happen to favor one of the sim- us in very serious negotiations in the omy requires that we lower marginal plest, most direct approaches to get coming days—will allow us to pass leg- tax rates and get rid of the craziness money into the pockets of working islation that will give us the oppor- that the alternative minimum tax im- men and women who can spend it right tunity to say, as Churchill asked the poses, particularly on individuals and away. Senator DOMENICI has developed English to say, ‘‘this was our finest small businesses. But I don’t think this a concept of having a December tax hour.’’ is the time to do it. I think we need to holiday on FICA, the Social Security We need to do this in a serious way. take care of those people who are hurt- payments all working Americans make This country faces a serious challenge. ing. That is why I think we ought to each year. Under this proposal, any My hope is we do it sooner rather than provide something that has unemploy- payments that are owed during Decem- later. Again, I regret very much a ment compensation and grants to the ber by employees or employers would point of order was raised because there States to help with health care. not be sent in, leaving more in each is not only a point of order against the I also believe we need to help small worker’s pay check and more for the legislation that has been offered today, business. I have filed a couple of business to protect jobs. The General there exists a point of order against amendments that do several things for Treasury would reimburse the Social November 14, 2001 CONGRESSIONAL RECORD — SENATE S11757 Security fund so there would be no loss permanent in the 2001 budget resolu- includes tax measures and other items, to Social Security Trust Fund while tion. It was designed to specifically ad- that it can be done in a bipartisan fash- protecting retirees’ benefits. This is dress what was said over and over at ion, and we ought to get on with it. one way we could get money into the that point to be a misuse of the ‘‘emer- I thank Senator KENNEDY for yield- pockets of people who will spend it in gency’’ designation that had become a ing, and I yield the floor. December. popular mechanism for getting around The PRESIDING OFFICER. The Sen- One of the things people are talking the spending limits established in both ator from Massachusetts. about is the expansion of the tax re- law and in our budget resolution. Mr. KENNEDY. Mr. President, I bates that started in July. The rebate So in the 2001 budget resolution, we imagine our fellow Americans who the President suggested is fine, but established a very clear set of prior- have been watching the Senate this most people say it is unworkable be- ities designating domestic spending as afternoon are wondering whether this cause you can’t get the rebate out an ‘‘emergency.’’ All those criteria had institution can function effectively in until January and there’s a good to be met to allow the spending or tax dealing with the problems they are fac- chance it will slow down the processing cuts to be placed outside the budget ing every single day, particularly those of returns and mailing of refunds in the blueprint. who have lost their jobs in recent upcoming tax filing season. I think ev- Again, let me read those criteria be- times through no fault of their own. erybody realizes that to get a strong cause that is what we are debating. They are proud men and women who work hard, play by the rules, go to economy we need the money in the They were the following five criteria their jobs every day, and have found pockets of the working men and women that had to be met: one, the provision out in recent times, before and after in America now, not tomorrow. So I must be necessary, essential, and vital; September 11, that their services are would like to see a serious consider- two, the provision must come about no longer needed. They are 137,000 ation to the December FICA tax holi- suddenly and quickly; three, the provi- workers in the transportation indus- day that Senator DOMENICI has con- sion must be urgent, pressing, and try; 136,000 in the hospitality, tourism, structed. compelling; four, the provision must and entertainment industry; 57,000 in I have several more amendments at have been unforeseen, unanticipated, the communications and utilities in- the desk. If we are going to be here and unpredictable; and five, the provision dustry; 226,000 in manufacturing; 14,000 have a vote-a-rama on a long list of must not be permanent. in the retail industry; 44,000 more in amendments, you can count me in be- Senator PHIL GRAMM raised an appro- the service sector industry; and in the cause I think these things ought to be priate point. The Senate has the au- finance, insurance, real estate indus- considered. I believe there is also dis- thority to waive the issue before us and decide whether the underlying bill and tries, 24,000 more. cussion, on the other hand, by the lead- There it is in raw figures, but it does the amendment to the bill meet all of ership that if the point of order is sus- not reflect the challenges those fami- these criteria. I haven’t studied both tained, there will be serious negotia- lies are going through every single day bills, and I essentially looked only at tions so that a final package will come when they are denied, in too many in- the underlying tax bill that came out to the floor. Obviously, that is not in stances, unemployment compensation, of the Finance Committee. I remind ev- my hands. But I raise these points even though they have contributed to about small business and the need to erybody that we have declared a huge it, because of the change in the rules, stimulate the small business sector of amount of money as an emergency al- or they find it virtually impossible to our economy, which would be helped by ready. We are at $70 billion since the find new employment because of the easier loans, greater expensing, more budget resolution that we have de- changed economic conditions. Government contracts, and which clared to be emergency because of the These are our fellow Americans, would be helped by the plan that Sen- disaster that beset our people and the workers, proud men and women, who ator DOMENICI has conceived. I hope State of New York, Washington, DC, have provided for their families and, when he introduces it, he will add me and obviously the crash in Pennsyl- now, every day go home and have to as a cosponsor. vania. look into the eyes of their children, These things will help. I think they I just read the criteria. With ref- and look into the eyes of their loved will give the kind of economic stimulus erence to the tax bill, I ask rhetori- ones, and say: I was not able to get any we need right away, and if there is to cally: Does spending money to buy employment today, and our savings are be a negotiated agreement—House-Sen- meat, blueberries, watermelons, cu- going down further and further. ate, Republican-Democrat, and the cumbers, and other items, meet the We know there is an emergency. It White House—I hope they will take emergency criteria of being urgent and defies any possible understanding of into account these vitally important necessary at this time? Do citrus can- the use of the word in the English lan- provisions for small business, and per- ker tax credits rise to the level of a guage that there is not an emergency haps avoid the paths that will be best needed emergency tax cut today? Do in the United States today. Tell that to addressed in other legislative action at payments to rum producers in Puerto the brave men and women behind the other times. Rico and the Virgin Islands qualify as lines in Afghanistan. Tell it to their I urge the managers of the bill to emergency spending? I am just asking relatives at home. consider the impact this stimulus the question. Perhaps people think Tell that to the National Guard package can and must have on small they do. Senator GRAMM was wondering troops who have been called up in my business. about not only these but whatever State serving in the air wing. Tell it to The PRESIDING OFFICER. The Sen- other ones he might have had in mind. the reservists who have been called up ator from Massachusetts is recognized. Do we think expanding the work op- from Westover, Barnes Air Force Base, Mr. KENNEDY. Mr. President, I am portunity tax credit to provide $4,800 the MPs who have been called up, glad to yield to my colleague from New for every bond trader and stockbroker many from the private sector. Tell it Mexico. He has a brief matter he wants in Lower Manhattan meets the criteria to them, we do not have an emergency. to bring to the Senate’s attention. of essential and necessary? Do we Tell it to the families of the postal Mr. DOMENICI. I thank the Senator. think the $2 billion pricetag for this workers who died from anthrax that we I didn’t hear the Senator. Did he say a provision is what we had in mind when do not have an emergency. time certain? we passed this tax credit for low-in- Tell it to the Attorney General and Mr. KENNEDY. I understand that the come, single-parent mothers? the President of the United States who Senator wanted 2, 3 minutes. I am glad I submit, if this point of order is not said we have to be on a heightened to accommodate. waived, then obviously we will be back state of alert. When did we hear that in Mr. DOMENICI. Since I was part of thinking about a bill that is bipartisan. the last years? When did we last hear the history of this, I wanted to recall it I recommend that we not grant the warnings from an Attorney General and let everybody know what we are waiver, and then I recommend strongly and from a President about how we debating here. Again, this point of that we get busy on a bipartisan bill, have to have a heightened state of order was established in the 2000 budg- showing the American people we can alert? All Americans have to be on a et resolution, and then it was made create a stimulus for our growth that heightened state of alert. S11758 CONGRESSIONAL RECORD — SENATE November 14, 2001 This is defined as an emergency any ployment insurance again later on in I hope our colleagues are not going to way you look at it. We are facing an 1993 by a vote of 79 to 20. That is the be saying we are for covering those emergency, and we are facing an emer- history of trying to provide help to who have health insurance. I have gency in a most profound way in the these families in a much more exten- heard some of those speeches, but I state of our economy. We have seen it sive way, with a generous kind of com- have not heard them say or defend in our States, and if we have not seen mitment. People say, why can they not their particular program. Here it is. it, we have not been paying attention agree to that this afternoon? Why are We believe in the importance of mak- to our constituents. Maybe it has not roadblocks being put in their way to ing sure working families who have reached some areas of this country, but deal with that this afternoon? Why can been separated from their jobs, through I would like those Members to rise up we not get about that which will help no fault of their own, have health care and tell us about how their States have my friend or my neighbor, somebody coverage because we know what hap- not been affected or impacted, because who has lost his job? But, no. Instead, pens to them. The average payment on every indication is we are in an emer- we are going to have a procedural vote. unemployment insurance is $925, and to gency. We are going to have procedural votes maintain their premiums now would We have had the first decline in the in order to deny us the opportunity to take 65 percent of that $925. That is GDP in more than 8 years. We have the do so. why about 15 percent of the total work- largest increase in the unemployment We have a similar situation in health ers, without any kind of help, actually rate in 21 years. I will not take the care. This is one of the most valuable utilize COBRA. time this afternoon to read into the qualities of life for all of our fellow I commend Senator BAUCUS and the RECORD when a number of our col- citizens. The central challenge we face Finance Committee for their proposals, leagues, many on the other side of the is trying to ensure we are going to both on unemployment and on this par- aisle, said: Use the emergency provi- have adequate health care. I enjoyed ticular proposal, and Senator BYRD for sions for incidental factors. There are being in this Senate when we debated a the strong support he has given to our lists of them. I have lists of them. We patients’ bill of rights. How often I lis- homeland security proposal. Under the are not talking about that. We are tened during the course of the day to proposal that has been advanced by the talking about the greatest increase in those voices that said we cannot pass a Finance Committee, it is down to 16 unemployment in 21 years. We are patients’ bill of rights because it is percent. We have heard as recently as talking about the three-quarters of a going to increase premiums by 1 per- today from a very lovely lady who lost million newly unemployed and the cent and we are going to create all of her job in Philadelphia. She had plunge in consumer confidence in our these uninsured. worked in the service industry in economy. We have thousands of uninsured who Philadelphia for a number of years, and We have heard the words of some have been losing their coverage, and I she now finds herself unemployed. She economists. We all saw the reports this am waiting to hear those same voices says it is going to be difficult to find last weekend. The Nobel laureate, Jo- say, ‘‘let us do something about them.’’ the resources to do it, but, by God, she seph Stiglitz, talked about this as well, I have not heard it yet. Back when we thought she could get herself together and his statements have been men- were on the floor debating whether a because it is so necessary for her fam- tioned in this Chamber: patient was going to have the best ily. The United States is in the midst of a re- health care based on a decision of the We are not as interested in talking cession that may well turn out to be the doctor instead of the bottom line of the about what the other side is against, worst in 20 years, and the Republican-backed insurance company, my Republican although we know they are against our stimulus will do little to improve the econ- colleagues gave long speeches saying proposal. We want the American people omy; indeed, it may make matters worse. that we should be focused instead on to understand what we are for. This is There it is, Mr. Republican. It is not covering the uninsured. That is what what the Democratic proposal will do. just Democrats saying it. Families in we were battling for—to protect Amer- It will guarantee help in paying the America understand it is an emer- ican families. COBRA premiums. That would help 7.2 gency. Those who are serving in the We are told we cannot go to that rad- million Americans. We do this. We pro- Armed Forces and are being called up ical concept because we are going to vide help for displaced workers that are know it is an emergency. Economists see thousands, tens of thousands, hun- not eligible for the COBRA; 2.5 million understand it is an emergency. And dreds of thousands more people who fellow Americans, they will be eligible. people are asking: Are we in the Con- will lose their health insurance. We provide State fiscal relief for im- gress of the United States going to do We have it now. We are seeing it proving the maximum Federal Med- something about it? every single day in increasing numbers. icaid payments, similar to what has Evidently, we are going to be denied Where are those voices that say, ‘‘Let been successful in the CHIP program that opportunity by the use of proce- us do something about it?’’ I do not which virtually every State accepted dural actions of which the American hear them. They refuse to make the with the increasing match. We do that. people are sick and tired. recommendations or suggestions to do That helps maintain coverage for 4 The American people understand. it, and the one that they have made is million Medicaid beneficiaries. All Why are you not doing what you did in completely indefensible. across the board we have had these the 1970s or in the 1990s in the unem- I ask, where is their program for evaluated by CBO and the others who ployment insurance program? We have health insurance? We provide, under maintain and support the conclusions I examples of the unemployment insur- the program that is before us now, as- have stated. In the Republican plan, ance program helping workers. Why sistance for those that have COBRA. there is no guarantee. are you not doing what you did then? We provide assistance for those that If one is interested in providing some Why aren’t Republicans and Democrats are not eligible for COBRA. The rea- assistance to workers, the program working hand in hand to provide assist- sons for that are the size of the compa- that Senator BAUCUS and others have ance to those who are unemployed? nies and other technical reasons such proposed makes the most sense. It We did it in 1991 by a 91-to-2 vote in as whether the workers receive COBRA makes the most sense in terms of en- the Senate. We provided a more gen- or they do not. We look out for both. suring that workers and workers’ needs erous package than is being proposed If one looks at the Republican plan, are going to be attended to, and it also by the Democrats now. Then in 1992, by the total Republican plan they say is a provides support for health care. So I a 94-to-2 vote, Republicans and Demo- pot of money that can be used for un- hope our colleagues will change their crats provided extended unemployment employment or it can be used for mind on this particular issue. compensation. Again in 1992, July of health insurance or they can use it for On September 11, America sustained 1992, by a 93-to-3 vote, we provided an some other social services such as child an unprecedented terrorist attack. The extension of unemployment compensa- care. They mentioned all of this, but if risk and the danger of future attacks is tion—each time trying to provide addi- you just applied it to the premiums of very real. The President and leading tional protection for workers who were COBRA eligible workers, you get only 2 figures in the administration repeat- being excluded and, we extended unem- weeks of coverage. edly warn the American people of the November 14, 2001 CONGRESSIONAL RECORD — SENATE S11759 need for unprecedented vigilance. So now before the Senate, the Baucus Mr. KENNEDY. I think the Senator we are facing a true national emer- plan, together with the Byrd plan, is has made this very clear. gency by any reasonable definition. not an emergency. As to airport security, people back in What the objectors seek to block is Can the Senator from Massachusetts Massachusetts are saying: You Mem- the appropriation, as well, of $15 billion give me any ideas, any reason, how this bers of Congress have the Federal pro- for homeland defense. They object to could not be an emergency? Does the tection, don’t you? the expenditure of $4 billion that would Senator have any idea how this could There will be families coming down enhance our ability to prevent bioter- not be an emergency? How could any- here to visit who have to show their rorist attacks and protect our citizens one in good conscience say this is not briefcases. That security isn’t auc- should such an attack occur. They ob- an emergency? tioned off to the lowest bidder. We have ject to the expenditure of $4 billion to Mr. KENNEDY. I have great dif- looked out after ourselves in this re- strengthen the ability of Federal, State ficulty in understanding that. I think spect and at the cost of lives. We have and local law enforcement to combat anyone watching this debate in Nevada had courageous policemen who lost terrorism. They object to expenses to or Massachusetts would come to that their lives in the line of duty, pro- improve border security, airport secu- same conclusion when they see the loss tecting Members of Congress. rity, mass transit security. They even of jobs taking place in your State and On the other hand, we are told we object to funds needed to enhance secu- mine and all of the 50 States; when cannot have that kind of protection for rity at the Nation’s nuclear power- they see members of their family being the American people. I don’t know plants. If providing the necessary funds called up for the National Guard, or whether the Senator saw a letter to the so these homeland defense initiatives when they have members of their fam- editor—perhaps this is too serious to can begin immediately is not an emer- ily who have been activated and sent joke about—that said maybe we ought gency, then what is? over the Indian Ocean on aircraft car- to have two kinds of security: those The point I want to conclude with is, riers and dropped behind the lines in which are deemed private, and let the it is ironic the same Members who ob- Afghanistan; when they have listened Republicans go through those; and the ject so strenuously to spending $15 bil- to a President of the United States call others who are Federal workers, let the lion to strengthen the Nation’s capac- upon all members to be on a height- Democrats go through those. ity to defend ourselves from terrorist ened sense of alert, and we listened to It is really too serious to be joking attacks are supporting a bill which the Attorney General of the United about and certainly in the wake of the would retroactively repeal the cor- States say, once again, it is time for us extraordinary tragedy earlier this porate minimum tax and give the larg- to be on heightened alert; when we week where, to all indications, it ap- est corporations $25 billion in direct have seen the significant economic in- pears to be a mechanical problem, but payments from the U.S. Treasury. dicators over the period of these past at least in people’s minds and in fami- We do not have the money to look several months, all going in an adverse lies’ thoughts they wonder about the out after the premiums for hard work- direction after a long period of eco- security and the fact we have not been ers. We do not have the money to pro- nomic growth and price stability; and able to work this out, to guarantee the vide help for unemployment insurance. where we have heard the leading econo- best in security. We do not have the resources to deal mists say, look, we are facing a chal- As pointed out by other Members of with helping the States meet these cri- lenging time. the Senate, we don’t auction off the Se- It can get a lot worse if we do the Re- ses, but we do evidently in that budget cret Service. We don’t auction off who publican plan or no plan. I wonder why that clears OMB, clears Mr. Daniels, will be out there in the Food and Drug we ought to be gambling with the well- Administration to make sure our drugs have the ability to get $25 billion in di- being of the people of Nevada or Massa- are going to be safe and efficacious. We rect payments from the U.S. Treasury, chusetts. I wonder if the people of Mas- payments to repeal the corporate min- sachusetts truly understand what is don’t auction off the FBI. We don’t imum tax and to return taxes they happening in the Senate. They are auction off the Alcohol, Tobacco and have paid in past years. wondering why we aren’t acting. You Firearms employees. We don’t auction Is giving major corporations hun- will say because we are having a point those off to the private sector. We want dreds of millions of dollars each based of order. They will ask what a point of to make sure Americans are protected. on taxes they paid 10 or 15 years ago a order is. They will wonder in Massa- I find it extraordinary that the higher priority for America than chusetts, perhaps, whether it is a res- strong initiative which passed success- strengthening homeland defense? Is taurant in Chicopee. They will be ask- fully in the Senate that ensures that retroactive repeal of the corporate ing: There is a point of order and we kind of protection still is unable to be AMT an emergency? Could we not de- are not taking action? completed through the two bodies. vote $15 billion to defending America? Why is one of the great institutions The PRESIDING OFFICER. The Sen- It would still need $10 billion for cor- failing to deal with this economic chal- ator from Minnesota. porate refunds. Those same Members lenge when we have at our best days Mr. WELLSTONE. I thank the Sen- support accelerating upper income been willing to do it in a bipartisan ator from Massachusetts for his com- brackets, and if they believe we can af- way? ments. I think historians will record ford such an expensive tax cut in the Mr. REID. I appreciate the statement that he is probably one of the most midst of an unprecedented national cri- of the Senator. The people of Nevada forceful advocates for working families sis, how can they claim we cannot af- are wondering how possibly we are not in the history of the Senate. ford $15 billion to better protect Amer- doing anything, No. 1, on airline secu- I have a statement by Joseph Wel- ica from terrorism? rity. On airline security we are doing come, a mold maker who lost his job. Those who deny we are facing a na- nothing. His wife, who was in the travel indus- tional emergency today and would jus- People on the other side are not will- try, lost her job. tify—in fact, demand—congressional ing to talk about this is too much He said yesterday: My wife and I action to strengthen homeland defense money or maybe they don’t like the have worked hard our entire lives. We are suffering from the worst case of po- way we are spending the money. They earned everything we got. Unfortu- litical myopia I have ever seen. In all are saying: We don’t want this because nately, like many thousands of Ameri- my years in the Senate I have never we don’t believe there is an emergency cans, we have run into hard times. We seen a clearer choice for Senators. in this country, and we are going to want to use the system as it was in- Mr. REID. I ask my friend—Senator raise a point of order that this is not tended to be used to get us back to BYRD spoke earlier today, prior to the emergency spending because there is work as fast as possible with a market- point of order having been filed, and I no emergency. able skill set. Unfortunately, that can- asked: Did I hear, Senator BYRD, they I have trouble following that rea- not be done in 6 months in today’s are going to file a point of order that soning. I wondered if the Senator from economy. That is why we need your this is not an emergency? Massachusetts had any line of rea- help now, not 6 months or a year from And he answered: Yes, they are. They soning to amplify the reasoning on the now. We need it now or we may very have filed a point of order that the plan other side. It appears he does not. well become a statistic on the welfare S11760 CONGRESSIONAL RECORD — SENATE November 14, 2001 roles, putting even more of a tax bur- Taxes? The Republican plan provides sound fiscal policy. It is unfair, and it den on the American public. tax relief for millionaires and profit- is ineffective. My colleagues on the other side of able corporations, even if those cor- Unemployment—my gosh, people are the aisle will argue this is not an emer- porations cut jobs. The Democratic out of work. Our plan says let’s add 13 gency. Last month saw the biggest 1- plan provides tax cuts for working fam- weeks to unemployment insurance. Our month increase in unemployment in 21 ilies and businesses that invest and plan, under the work of Senator BAU- years. Nearly 7.5 million Americans are create jobs. CUS and many other Senators on our now out of work. But, of course, those The Republican plan spends $121 bil- side, says let’s reform unemployment who are discouraged workers and are lion to speed up the tax cut rates in the insurance and let’s cover part-time not counted as unemployed are not in- $2 trillion tax cut enacted earlier this workers. Economists tell you every cluded in the statistics. Those who can year. Under the Republican plan, every dollar of unemployment insurance paid only find part-time jobs and cannot millionaire in America will receive to unemployed workers expands the really support their families on those over $50,000 in tax cuts over the next 4 economy by $2.15. This is a win-win. jobs are not included in the statistics. years and, by contrast, the Republican Can’t we help people flat on their backs And all of the working poor people plan would put zero into a typical fam- who, in turn, will consume with that who work almost 52 weeks a year, 40 ily of four with an annual income of additional assistance? hours a week, and still do not make $50,000 a year, precisely the kind of poverty wages, they are not included family, if given help, that is more like- What happened to people in New either. Analysts warn that another 1 or ly to consume and put resources back York, what happened to people at the 2 million workers could lose their jobs into our economy. Pentagon, what happened to people in over the next 12 months. I think it The Republican plan has numerous Pennsylvania, what has happened in could be worse than that. The unem- tax breaks for multinational corpora- our country has taught all of us that ployment rate is 5.4 percent, up .5 per- tions. The most egregious is the repeal we need each other as never before. cent from the previous month, and it is of the alternative minimum tax. Re- There is a great sense of community. going to continue to go up. Consumer funds go all the way back to 1986, 15 People are trying to help one another. confidence is at the lowest level it has years ago; $22 billion cost over 10 years. I think we understand in a certain pro- been in 7 years. As Nobel Prize winner Joseph Stiglitz found sense that we all do better when All of this combined with lagging said: we all do better. Can’t some of that consumer confidence can perpetuate a The GOP plan would put zero, yes zero into community spirit apply to what we are downward spiral. Consumers, fearful the hands of a typical family of 4 with an an- doing in the Senate? about the future, will spend less, which nual income of $50,000 a year. Giving tax re- Don’t tell all of the men and women will cause us to sink even deeper into lief to corporations for past investments and who are out of work in Minnesota and AMT repeal may pad their balance sheets recession. all across the country, and their chil- These are difficult economic times. but will not lead to more investment now dren, it is not an emergency. It is an For many families in Minnesota and in when we need it. Bailouts for airlines did not emergency for them. It is an emer- the country, this is also a situation stop them from laying off workers and add- ing to the country’s unemployment problem. gency for their families. And it is an where time is not neutral; time is not emergency for our country. on their side. If they do not get an ex- The Democratic plan, by contrast, tension of unemployment benefits, if provides immediate tax rebates to 45 The Republican plan says that if you they do not have any health care cov- million Americans who did not receive go beyond New York and you go beyond erage for themselves and their loved rebates last summer, which will spur Virginia and you go beyond Pennsyl- ones, it will be broken dreams and bro- consumer spending and immediate tax vania, you have to have had a 30-per- ken lives and broken families. And my relief to businesses, which will spur in- cent increase in unemployment before colleagues on the other side of the aisle vestment. any of what meager benefits they have want to cast a vote saying this is not Mr. President, 44 percent of the indi- even kick in. Minnesota, as I look over an emergency. vidual tax cuts in the Republican plan past history, in some of the worst re- If you were out of work and you go to the wealthiest 1 percent—it is cessions did not have a 30-percent in- didn’t know where your next dollar was Robin Hood in reverse—the people who crease in unemployment. I am a Sen- going to come from and you were going are least likely to spend the savings, ator from Minnesota. I have to fight to run out of unemployment benefits while only 18 percent goes to low- and for the people in Minnesota. I have to and you were terrified that you would moderate-income families. make sure that for people who are in not be able to support health care cov- Colleagues, get the tax breaks or tax such difficult times through no fault of erage for your wife or your husband or rebates or whatever you want to call their own, we are going to have a safe- your loved ones, you sure as heck it—if you are going to do that—into ty net. The Republican plan will not would consider this to be an emer- the hands of people who will go out and help these people at all. buy a washing machine because they gency. Sometimes we are all too gen- Health care coverage in the Repub- erous with the suffering of others. need it, and they will spend, and that is what we need for the economy. Don’t lican plan is literally an asterisk. Most economists agree on certain Their plan does not guarantee one dime things if we are going to have a suc- go forward with Robin-Hood-in-reverse to laid-off workers to maintain cov- cessful economic stimulus package. tax cuts and corporation tax breaks for erage. In fact, Treasury Secretary This is not just about justice and help- multinational corporations which are O’Neill says he would strongly encour- ing those people who are flat on their already doing fine and are not going to age President Bush to veto any eco- back. This is also about how do we get necessarily even spend in the economy. nomic recovery plan that includes this economy going again? What kind Even worse, most of the Republican health care coverage for laid-off work- of investments do we need to make? All tax cuts take effect after the current ers. The administration said last week economists I know say that for an eco- economic crisis may very well have that if we had too much by way of un- nomic stimulus package to be success- ended. By definition, they are not eco- employment insurance and health care ful, it must be immediate, have an im- nomic stimulus effects. mediate effect; it must be temporary; The last point I make on the tax cut coverage, then people would not have it must put resources in the hands of is telling. The Republican plan is not an incentive to go back to work. Do those who will spend it to stimulate an economic stimulus plan; it is a you know how insulting that is to the economy; and that it will not be shamefaced effort to use our current hard-working people? harmful to our long-term economic in- crisis; that is to say, the misery of Our plan says we will cover 75 per- terests. hard-working men and women who cent of COBRA coverage. Mr. Welcome The Republican proposals by the have lost their jobs and health insur- said yesterday: My God, I can’t afford House and the Senate and supported by ance in this economic downturn, as an 4, 5, or 6—I can’t even remember—hun- this administration fail to meet all of excuse for lining the pockets of dred dollars of a month. I can’t afford these tests, and the Democratic plan wealthy individuals and multinational that kind of coverage. We help families meets all these criteria. corporations. It is the antithesis of like the Welcome family. November 14, 2001 CONGRESSIONAL RECORD — SENATE S11761 Then, for those families who work for an obvious marriage. On the one hand, True, the terrorist attack has also forced small businesses, so they are not eligi- we get the money to first responders. I increased spending at home. But Mr. Bush ble for COBRA, we expand medical as- have been pushing for public safety, for has threatened to veto any spending on do- sistance coverage in the States. In ad- firefighters, and for public health mestic security beyond the $40 billion al- ready agreed. And even that sum is in doubt. dition, we respond to the Governors of money so that we have the antibiotics Half of the $40 billion was money promised to our States. And what were the Gov- and the vaccines, so people are trained, New York; last week New York’s Congres- ernors of our States saying? They were so that emergency doctors are trained, sional delegation, Republicans and Demo- saying: Please add on more to the Fed- so that our public health nurses are crats alike, demanded that Mr. Bush dis- eral contribution to medical assistance trained; food safety; border security; burse the full sum, openly voicing doubt because we are in a recession; we have airport security. At the same time, about whether he would honor his promise. more people out of work; we no longer Senators, you create jobs. So the budgetary cost of the war on ter- have the surpluses. These are hard eco- I don’t really know what is going on rorism, abroad and at home, looks like fairly nomic times, and we need some addi- here. I think there are probably two small change. Even counting the measures things. that are likely to pass despite Mr. Bush’s tional help. threat, I have a hard time coming up with a The Republican plan does not re- No. 1, I think too many of my col- total cost that exceeds $200 billion. Compare spond one bit to the economic pain leagues on the other side, by definition, that with the $2.7 trillion Social Security that we hear about from people in the with their objection, don’t quite get surplus. What will happen to the remaining country. this as an emergency. $2.5 trillion? We are being told by this procedural No. 2, given what they want to do Again, no mystery: much of the money was move by my colleague from Texas that with all of these tax cuts, and repeal actually gone before Sept. 11, swallowed by this is not an emergency. corporate taxes going back to 1986, let last spring’s tax cut, which will in the end I met with some families in Min- me assume they are doing this in good reduce revenue by around $1 trillion more nesota 2 weeks ago. We were in one of faith, because they always do it in good than the numbers you usually hear. And the the workers’ homes. There were some faith, in which case I have to believe administration’s allies in Congress are striv- ing energetically to give away the rest in tax television cameras. I said: Are you sure they believe in the same trickle-down breaks for big corporations and wealthy indi- you want to do this? They said they economics we have been through be- viduals. did. It was a seminar-type discussion. I fore, which put us in such desperate The new round of tax cuts is supposedly in- hardly talked at all. Tell me what your shape. We have been through this tended as post-terror economic stimulus. But concerns are. These are people who trickle-down economic strategy, or recent remarks by Dick Armey give the have long work experience. They had philosophy, or policy. It left us with game away. Defending the bill he and Tom been working most of their adult lives. double-digit inflation, double-digit in- DeLay rammed through the House—the one They are out of work through no fault terest rates, and an economy in shat- that gives hug retroactive tax cuts to big of their own. I think more than any- ters. corporations—he asserted that it would cre- ate 170,000 jobs next year. That would add a thing else, they talked about health Paul Krugman in today’s New York whopping 0.13 percent to employment in this care coverage. They certainly are hop- Times has an op-ed piece that makes country. So thanks to Mr. Armey’s efforts ing for unemployment benefits to tide this point. I ask unanimous consent next year’s unemployment rate night be 6.4 them over. A number of them, interest- that his full op-ed piece be printed in percent instead of 6.5. Aren’t you thrilled? ingly enough, talked about job train- the RECORD. Let’s do the math here. This bill has a $100 ing. There being no objection, the mate- billion price tag in its first year, more than If I had my way, we would add some rial was ordered to be printed in the $200 billion over three years. So even on Mr. provisions, including some money for RECORD, as follows: Armey’s self-justifying estimate, we’re talk- workforce development. But, most im- [From the New York Times, Nov. 14, 2001] ing about giving at least $600,000 inn cor- porate tax breaks for every job created. portantly, they talked about their OTHER PEOPLE’S MONEY That’s trickle-down economics without the fears that there would be no health (By Paul Krugman) trickle-down. care coverage at all for their families. You may have seen the story about the Ten weeks ago this bill, or the equally bad Senators, again I hate to put it this businessman who allegedly used the attack bill proposed by Senate Republicans, way, but if it were your family, if you on the World Trade Center to make off with wouldn’t have stood a chance. But now peo- were out of work, if you were worried other people’s money. According to his ac- ple who want to give the Social Security sur- that you wouldn’t be able to afford cusers, Andrei Koudachev stole $105 million plus to campaign donors think they can get COBRA, and there wouldn’t be enough that had been invested with his firm, falsely away with it, because they can blame Osama asserting that the sum had been lost in the to help you if you were eligible for bin Laden for future budget shortfalls. collapse of the towers. It’s not entirely clear They say every cloud has a silver lining. COBRA, and if there were not a specific whether he is accused of stealing the money The dust cloud that rose when the towers fell benefit that would enable you to still before Sept. 11, then using the disaster to has certainly helped politicians who don’t be able to provide health care coverage cover his tracks, or of taking the money want you to see what they’re up to. for your families, I guarantee you after the fact; maybe both. It’s too bad that so many of our leaders are Mr. WELLSTONE. Mr. President, as would consider it an emergency. he said: It is an emergency for many families trying to pull the same trick. Just before Sept. 11, political debate was in our country. We must respond to The new round of tax cuts is supposedly in- dominated by the growing evidence that last tended as post-terror economic stimulus. But this economic pain. In the words of spring’s tax cut was not, in fact, consistent recent remarks by Dick Armey give the Rabbi Hillel, if not now, when? with George W. Bush’s pledge not to raid the game away. Defending the bill he and Tom Then there is homeland defense, Sen- projected $2.7 trillion Social Security sur- DeLay rammed through the House—the one ator BYRD’s proposal on which many of plus. After the attack, everyone dropped the that gives huge retroactive tax cuts to big us worked. I have said a lot of times, as subject. At this point, it seems that nobody corporations—he asserted that it would cre- I am sure every Senator has—I guess will complain as long as the budget as a ate 170,000 jobs next year. That would add a we reached different conclusions—with whole doesn’t go into persistent deficit. whopping 0.13 percent to employment in this fire chiefs, first responders, they told But two months into the war on terrorism, country. So thanks to Mr. Armey’s efforts we’re starting to get a sense of how little me. I sure learned it back then. People next year’s unemployment rate might be 6.4 this war will actually cost. And it’s time to percent instead of 6.5. Aren’t you thrilled? are anxious and people are worried. start asking some hard questions. Let’s do the math here. This bill has a $100 Please get an infrastructure of public At the beginning of the week we learned billion price tag in its first year, more than safety and, yes, public health. that the war is currently costing around $1 $200 billion over three years. So even on Mr. Dr. Michael Home is from Minnesota. billion per month. Oddly, this was reported Armey’s self-justifying estimate, we’re talk- Dr. Home has made their case in a as if it were a lot of money. But it’s only ing about giving at least $600,000 in corporate compelling way. Get the money to our about half of 1 percent of the federal budget. tax breaks for every job created. That’s communities because people will be In monetary terms, not only doesn’t this trickle-down economics without the trickle- look like World War II, it looks trivial com- down. safe where they live, where they work, pared with the gulf war. No mystery there; and where their children go to school. how hard is it for a superpower to tip the That is what my colleagues on the We need the resources. balance in the civil war of a small, poor na- other side of the aisle are proposing, In the homeland defense part of this tion? At this rate, even five years of war on trickle-down economics without the bill that we brought to the floor, it is terrorism would cost only $60 billion. trickle down. At the same time, they S11762 CONGRESSIONAL RECORD — SENATE November 14, 2001 are now trying to make the case that maybe it was only 15 Members of the has been a very steady increase in con- we don’t have an emergency, so we Senate, including the Senator from sumer spending over the last 10 years. can’t get an extension of unemploy- Minnesota, who voted against the Until recently, there was a very steady ment benefits to people who are flat on bankruptcy bill. I hope a vote of 84 to increase in manufacturing investment. their backs, we can’t make sure they 15, or something like that, tells you But in the last three or four quarters, have health care coverage for their what a good piece of legislation we had. there has been a tremendous downturn families or for their children and their But in regard to bankruptcy, to allay in investment in manufacturing. Chair- loved ones. They are profoundly mis- anybody’s fears about what bankruptcy man Greenspan believes that by accel- taken. legislation does, even at a time when erating depreciation, we will be able to If these are the differences between we are in the midst of a war on ter- create jobs, stimulate the manufac- Democrats and Republicans, then these rorism, and we have had an economic turing economy, and get that segment are differences that make a difference. downturn because of that terrorist ac- of the economy back on the road to re- I could not be prouder than to stand tivity, anybody who cannot pay their covery and create a lot of jobs in the out here on the floor and get a chance debt will still be able to go into bank- process. to be 1 of 100 Members who get to speak ruptcy. So, again, I do not think Republicans for what we have proposed as an eco- What we are trying to do through can be accused of not being sympa- nomic recovery plan. It is not all that this bankruptcy reform legislation thetic when we are following the advice I would want—my colleagues know me; that is now in conference between the of Chairman Greenspan on fiscal and I always push for more and more and House and the Senate is for those who tax policies. His point of view ought to more—but I think it would make a dif- have the ability to repay—who under be respected in that area the same way ference. present law can go into chapter 7 and a large share of the country respects I am so profoundly disappointed that get off scot-free—will have to pay. his view on monetary policy, as now 10 we have out here a procedural objec- We are talking about people with the times he has reduced the rate of infla- tion. ability to repay their debts and who tion to help the economy. My gosh, go to town and talk in the are gaming the system to get away The Senator from Minnesota must Cafe Wilmer or any number of other with financial murder. They are not also not be aware of the fact that our coffee shops in Minnesota. People say: going to be able to do that anymore. proposal has in it help for those who Say what? There was a procedural ob- In regard to the comments of the are going to lose health insurance be- jection that this wasn’t an emergency? Senator from Minnesota and other Sen- cause of being unemployed. In fact, if Say what? But you know that I don’t ators who have talked about the non- you look at the Democrat proposal, have to explain that. Senators on the concern people on this side of the aisle again, as I said yesterday, by the time other side of the aisle and those who might have about people who are un- they get their program implemented, we will be out of a recession. And, we support the Senator from Texas will employed because of the terrorist at- have a plan that will get help to the have to explain that. tacks of September 11, the whole pur- I would like to finish with one other pose of this legislation is to address people who do not have health insur- point. This is a small point. I see my economic problems that exist because ance within 30 days after the bill is signed by the President of the United colleague from Iowa out here on the of the terrorist attacks of September States. floor, and a Senator whom I like so 11. Their plan creates Federal bureauc- Where we have separation from peo- much that I will have to get into this racy, a new Federal program, Federal ple in the other political party is the with him as well. rules and regulations. Just think of the I note that today there is a meeting fact that a lot of people on the other months it is going to take to get all of the ‘‘bankruptcy reform’’ conference side of the aisle are taking advantage that in place. Plus, there is an un- of the September 11 terrorist attacks, committee. Colleagues and Senator funded mandate on the States to put a and also the economic problems result- GRASSLEY, a good friend, being out of parallel bureaucracy and program in ing therefrom, to put a lot of legisla- work is the No. 1 reason that people place for the purpose of dispensing help tion on the agenda that would not oth- file for bankruptcy. Medical bills are to people who are unemployed but erwise be on the agenda. the No. 2 reason. This is no time to be probably 9 to 12 months down the road. What we are trying to do is what pushing through this bankruptcy bill, We already have a program in place which is too punitive and too harsh and Chairman Greenspan advises us to do— where we can get help to those people which will make it hard for people to to do those things that are stimulative within 1 month after the President rebuild their lives. and related to the downturn in the signs the bill. I always thought the credit card economy, directly related to the propo- To say that we have no concern companies got way more than they de- sition of September 11. about the unemployed, then let me ask served. I never thought it was bal- First of all, I do not think the Sen- the Senator from Minnesota, how come anced. But this is no time, colleagues, ator from Minnesota gives the Presi- we have provisions in our bill to extend to push through a harsh bankruptcy dent any credit for being concerned unemployment compensation by 13 bill in these economic times. about low-income people who are hurt weeks, which is not exactly, but is There are too many colleagues out as a result of this because in a way of along the same lines of what their here who want to speak. If I continue addressing, in a bipartisan way, the party suggests? to go on, it could be for another 3 stimulus needs of our Nation, the So all along there is a division that is hours. So I yield the floor. President has already provided for tax being drawn between Republicans and The PRESIDING OFFICER. The Sen- payments, rebates, whatever you want Democrats that is not the tradition of ator from Iowa. to call them, to low-income people to this Senate, surely not the tradition of Mr. GRASSLEY. Mr. President, I help the demand and consumer side of the Senate Finance Committee that thank the Senator from Minnesota for the ledger. And, obviously, that pro- writes tax legislation and unemploy- giving me an opportunity to talk about posal by our President that is in the ment and health-insurance-type legis- bankruptcy. I haven’t had a chance. Republican proposal as well has some- lation. There is no point in having it Mr. WELLSTONE. I want the floor how not come to the attention of the because this Senate will get nothing back. Senator from Minnesota. So I bring done unless it is done in a bipartisan Mr. GRASSLEY. I haven’t had that that to his attention, that the Presi- way. opportunity for a long time. By the dent of the United States has already I hope we have set the stage for some way, I am supposed to be in the con- addressed that. votes this afternoon that will show ference in 2 minutes. I am not going to Second, we have followed the advice that this Senate is only going to ad- be there because I want to respond to of Chairman Greenspan, who said there dress the stimulative needs of this the Senator about not only bankruptcy ought to be incentives for investment economy in a bipartisan way. The but also about these tax provisions. in manufacturing. As the chart I sooner we get that bipartisan process That is to remind the Senate—particu- showed you yesterday—that is not in underway, the better. I think that will larly the 17 Members of the Senate, or this Chamber today—indicates, there happen. November 14, 2001 CONGRESSIONAL RECORD — SENATE S11763 (Mr. JOHNSON assumed the chair.) Most disturbing is the Senator’s own economy. If we wait until 2004 and 2006, Mr. GRASSLEY. But I also want to admission that her accusations are the economy does not benefit from address some remarks that were made baseless. When stating that the House those reductions at a time when it yesterday by Senator BOXER regarding economic stimulus bill was a ‘‘reward must. That time is right now because the Republican caucus stimulative pro- to their biggest contributors,’’ Senator of the terrorist attacks of September 11 posal. Under normal circumstances, I BOXER said—and I quote—‘‘It is how I and the downturn in the economy. would just let these types of remarks feel. It is my opinion. It’s not a fact.’’ We will talk more about individual go unanswered as typical political This type of inflammatory rhetoric is income tax cuts later. I turn to Sen- rhetoric, tinged with inflammatory useless. It does nothing to further ator BOXER’s primary objection—alter- untruths. But these days are hardly America’s economic recovery, and it native minimum tax relief for Amer- normal circumstances because the Sen- does nothing to further a bipartisan so- ican businesses. ate is not working in its usual bipar- lution, a solution that is absolutely I would like to propose a terrible tisan way. So I want to respond to necessary for the Senate to get to a idea. Why don’t we enact a provision those remarks. final product. that increases taxes when companies The American people have called I hope, for the sake of the American are struggling to stay afloat and then upon us to act, both in the defense of people, this sort of nonsense will stop. reduces their taxes when the compa- our country and to restore our econ- It is time to put dignity back into the nies are profitable? I think my col- omy. Everyone in this Chamber recog- debates of the Senate Chamber. leagues would agree that sounds like a nizes the impact of the horrific events Senator BOXER did have two specific dumb idea. I would offer an amendment of September 11 and their impact on objections to the House bill. It was the on this, but the problem is, we have al- the economy. House bill she objected to, not the Sen- ready enacted it. It is what we call the Republicans and Democrats have dif- ate bill. The House bill is not the Re- alternative minimum tax. ferent ideas on the best way to stimu- publican Senate caucus proposal. They Republicans have been vilified by late the economy. There is nothing new differ significantly, including with re- Democrats for including AMT repeal in about this. They merely represent dif- gard to two issues to which Senator an economic stimulus package. Let’s ferent approaches to the same problem. BOXER objects. Nonetheless, when a ask the question: Why do we include For the past month and a half, I have Senator expresses concern about a leg- corporate AMT in an economic stim- been pleading with Democrats to find islative proposal, the Senator’s con- ulus package? Because corporate AMT the common ground in our differing ap- cerns should be addressed in a respon- worsens an economic downturn when it proaches. The American people expect sible and dignified manner. That is increases taxes as corporate profits de- us to work together to find common what I would like to do. cline. ground for our Nation’s common good. Senator BOXER objected to accel- Explain that again. If that doesn’t Stimulating the economy and winning erating the income tax cuts scheduled sound reasonable, it isn’t reasonable. the war on terrorism is the most imme- to occur in 2004 and 2006. She also ob- But that is what the law is, because diate. This can and must be done, and jected to alternative minimum tax re- AMT, the alternative minimum tax, is it will be done before we adjourn for lief for American businesses. I will ex- imposed only when the AMT tax ex- this year. plain why the Republican caucus be- ceeds the amount of regular corporate But just when we hope that construc- lieves those issues are important to income tax. AMT is calculated by tive bipartisanship can begin, it is economic recovery. starting with regular taxable income slapped down by the type of accusa- One of the greatest weaknesses of and then adding back certain deduc- tions that were made yesterday by the Senator BAUCUS’ stimulus package now tions that were taken in computing the Senator from California. I would like before the Senate is that not one dime, regular taxable income. One of the to state what has been stated by Sen- not one red cent, goes to provide relief most significant deduction add-backs ator BOXER. for people who go to work every day, is depreciation. Senator BOXER said the Republican pay their bills, and may be clinging to Consider this very simple example. If approach for stimulating the economy their jobs with their fingertips during regular taxable income falls to zero, was using the events of September 11 this economic downturn. We believe then a depreciation add-back will cre- to—and I quote—‘‘pay back’’ its ‘‘big- that reducing the Government’s take ate alternative minimum tax taxable gest contributors.’’ from these people’s paychecks will give income which will be taxed at the AMT She called the Republican approach them more resources to ride out the rate of 20 percent, even though the ‘‘nothing less than unpatriotic.’’ current economic downturn and will company owes no regular income tax. As I said, normally I would dismiss spur increased consumer demand over Regular income tax does not have to such reckless remarks as typical poli- the next year. fall to zero for this to occur. When in- tics, designed to pit American against Besides, money spent by individuals vestment costs and other expenses in- American to gain a political edge. But in the private sector turns over many crease in proportion to a company’s these are not normal times. These are times more in the economy and does taxable income, which occurs during an times when Americans expect us to more economic good than if spent here economic downturn, the company may work together. through the Federal budget. It is really still owe alternative minimum tax. What is truly shocking, and offensive just a matter of common sense, then. Companies that have these higher for that matter, in the Senator’s com- People need more of their money dur- fixed costs include manufacturing, con- ments is that many items in the Re- ing tight economic times. If they have struction, mining, energy, utilities, publican Senate caucus proposal are more money available, they feel more wholesale/retail, transportation, agri- items that were recommended by financially secure and are more likely culture, and other capital intensive in- Chairman Greenspan, former Treasury to spend. dustries. Secretary Robert Rubin, or are in- We only are talking about speeding In 1997, a study for the Brookings In- cluded in Senator BAUCUS’s Democratic up a decision that Congress made ear- stitution concluded that manufac- proposal. lier this year, a bill signed by the turing firms could be subjected to al- Bonus depreciation, small business President June 7, a product of the bi- ternative minimum tax when their expensing, net operating loss partisanship of the Senate Finance sales decline by just a mere 5 percent. carrybacks, cash payments to tax- Committee. Last summer this Senate This was largely because of higher payers—tax rebates, if you want to call debated and decided the issue of indi- fixed costs. So one can see the profound them that—enhanced unemployment vidual income tax cuts. The Republican effect that a small economic downturn benefits, additional health insurance caucus proposal would simply accel- has on increasing corporate AMT. coverage, are all areas that are con- erate into next year the individual in- The Joint Committee on Taxation tained in both a Republican proposal come tax cuts that are currently sched- has recommended that the corporate and a Democrat proposal. These are uled to go into effect in the years 2004 alternative minimum tax be repealed areas of common ground. So to call the and 2006. because it is ineffective and inefficient. Republican approach ‘‘unpatriotic’’ is If we make them effective next year, With the Joint Committee on Tax- destructive. It is a distortion. they will immediately stimulate the ation are professional people who work S11764 CONGRESSIONAL RECORD — SENATE November 14, 2001 for both Republicans and Democrats. sions in our stimulus packages, which I yield the floor. They don’t work for the majority. we do, at the same time we punish The PRESIDING OFFICER. The Sen- They don’t work for the minority. prior investments through the AMT. I ator from Michigan is recognized. They work for the Congress as a whole. notice that the Democrats’ bill ex- Ms. STABENOW. Mr. President, I This is their recommendation. empts bonus depreciation from the al- agree with our esteemed colleague who So now you may ask: How would re- ternative minimum tax. So I don’t just spoke that, in fact, the American pealing the AMT have a stimulative ef- know why a Democrat Senator would people are watching us very closely fect? The answer is simple: The alter- blast away at the alternative minimum today to determine whether or not we native minimum tax is a job killer. tax, when even their proposal makes it understand the emergency that so The alternative minimum tax creates a quite obvious that there is something many workers and small businesses strong disincentive for companies to that doesn’t add up here, doesn’t meet and others in our economy are experi- undertake new investments or to keep the test of common sense. encing at this moment. All we have to employees on the payroll. Any activity So Democrats recognize the counter- do is ask the people who have lost their that reduces a company’s regular tax- productive effect that the alternative jobs in the airlines alone. We had an able income, such as keeping employ- minimum tax has on investment. I also emergency in which we had to act im- ees during an economic downturn, in- said that the alternative minimum tax mediately to help the airline industry creases the likelihood of it becoming increases taxes when companies are a few days after September 11. We ral- subject to the alternative minimum struggling to stay afloat, and then it lied to do that, with the under- tax. reduces taxes when companies are prof- standing—at least it was my under- This is because as regular income de- itable. This is because any alternative standing—that we would come back creases, the AMT add-backs become minimum tax paid to the Government quickly and make sure that not only larger as a percentage of regular in- today may offset regular taxes owed in the companies were helped to the tune come. As I said, when investment costs a later year. In effect, the AMT is a of $15 billion, but that the workers and other expenses are large relative to prepayment of a taxpayer’s future in- with the airlines and the airports a company’s taxable income, the com- come tax liability—and it operates as a would be helped. So all you have to do is ask the peo- pany may end up owing alternative no-interest loan from companies to the ple who have been unemployed as a re- minimum tax. This is particularly true Federal Government. sult of September 11, or other economic for capital investments, which may As of today, companies in America circumstances, who work for the air- throw off depreciation deductions. In have made about $25 billion in loans to the Federal Government by prepaying lines, the travel agents, the airport fact, increased investment expendi- venders, the restaurants, and the trav- tures by a company during periods of their real tax liability through the al- ternative minimum tax. This is where el destination cities that have been low profitability can cause a company hurt. All we have to do in Michigan is to switch from the regular tax to the the controversy kicked up concerning the House bill, and it is the thing to ask our auto workers, who have found alternative minimum tax. Therefore, which Senator BOXER most objected. that because of the slowdown they are companies that try to maintain a con- The House bill—not the Senate Re- facing layoffs, or have been laid off— stant level of investment and contin- publican bill—paid back in the year and also the small businessowners in ued employment during an economic 2002 all of the alternative minimum tax Michigan, as well as Michigan farmers. downturn are more likely to pay larger prepayments that I just talked about, I congratulate the chairman of the amounts of AMT. That is why the al- these interest-free loans that have been Finance Committee for his leadership ternative minimum tax is a job killer. extracted from American companies and work in putting together, with We want to create jobs. Particularly over the years. Senator BAUCUS and Senator BYRD, a we want to create jobs and we have a The reason for this is to provide in- package that makes sense for Ameri- Government incentive for increasing stant cash liquidity for companies that cans, for American business, for Amer- jobs at a time of economic downturn. are facing the present economic ican workers, for our communities. But More importantly, the alternative crunch. We would propose something we know that, frankly, there are two minimum tax increases the tax burden different. Senate Republicans would different views of the world at work. during an economic downturn which allow the alternative minimum tax to We have, first of all, one world that may result in deeper and more pro- offset only a percentage of the regular brings us all together behind the Presi- longed economic weakness by reducing tax as it is incurred. That way a cor- dent to face the current challenges and business activity. poration can never completely zero out threats to our country. We are to- So here we have a tax policy already their tax liability with AMT credits. gether on that. I support the President in place that is making the economic So I hope she will consider this and and want him to succeed, as we all downturn worse. According to a recent that this will address Senator BOXER’s need to succeed together. But on the Treasury study, during the economic concerns. economic front, on the homefront, we slowdowns between 1989 and 1991, near- In addition, we would not accelerate have two different views of the world ly 50 percent of America’s largest cor- the AMT tax credits or refund them that have been expressed, both in this porations were subjected to the alter- next year. This should address another Chamber and between those of us who native minimum tax. We can’t afford one of Senator BOXER’s concerns. Yes, support the legislation in front of us to repeat that pattern again. we would also repeal the alternative and the House Republicans on the As Chairman Greenspan said: En- minimum tax, and I know that doesn’t other side. hance investment in manufacturing. satisfy some Senators. I hope these Frankly, they are very different That is what accelerated deprecia- other two provisions of our bill would kinds of economics. One is supply side tion is about. So that is why we have do. economics; give the dollars to those at to do something with a tax policy that If Senators will stop the shouting the top, the largest businesses, the is already on the books and already is and stop talking past each other and wealthy individuals in the country, and there exacerbating an already bad situ- stop making false accusations, we can it will trickle down. We say we don’t ation. So please keep in mind that find common ground to address at least have time for trickle down. We don’t some alternative minimum tax add- part of each other’s concerns. It is pos- even know if it is going to trickle back items, such as depreciation, re- sible to reach consensus on a bipar- down. I have folks in Michigan still late to fixed investment decisions that tisan bill that will stimulate the econ- waiting for the 1980s money to trickle were made years ago during profitable omy. We must do it soon. down to them. We say put money di- periods. They didn’t anticipate what I urge the Senate to do its job and rectly into people’s pockets, small they might be in right now. But they come up with a bipartisan stimulus businesses, the farmers, the unem- are going to be penalized for it and pe- package—one that can be passed by ployed workers, and the moderate and nalized in a way that hurts the econ- this Chamber, sent to conference, and low-income taxpayers’ pockets. omy. signed by the President. The American We are backed up by those who say It is inconsistent, then, to consider people are waiting and they are watch- this is the right thing to do economi- including bonus depreciation provi- ing. cally. I think we have the best of all November 14, 2001 CONGRESSIONAL RECORD — SENATE S11765 worlds in this proposal. It is the best and act in a way that shows they are a Mr. REID. Mr. President, for the in- thing to do economically and it is the priority. formation of my colleagues, we are right thing to do for people. Joseph Our plan is the best economically, working to have a vote around 5:15 p.m. Stiglitz, the cowinner of the 2001 Nobel and it is the right thing to do. We help or 5:30 p.m. If Senators want to speak, Prize in economics, stated: these families by extending unemploy- they should come to the Chamber. We should extend the duration and mag- ment benefits so they can buy gro- That is the general intention at this nitude of the benefits we provide to our un- ceries and pay their bills. It will pro- time. If anyone objects, they should let employed. This is not only the fairest pro- vide health insurance, which has been us know. posal, but it is also the most effective. Peo- talked about today, by helping pay for The PRESIDING OFFICER. The Sen- ple who become unemployed cut back on COBRA to continue health insurance, ator from Wyoming. their expenditures. Giving them more money and we expand assistance to States Mr. THOMAS. Mr. President, it is in- will directly increase their expenditures. through the Medicaid Program. teresting to listen to our friends on the Common sense. What is more likely Consumer spending represents two- other side of the aisle. It is amazing to happen? To give the billions of dol- thirds of our gross domestic product. the message we get. The message is: lars to the major corporations, which Any stimulus package that ignores this Let’s get a bill; we need to do it right the House does through the alternative crucial section of our economy is away. Everyone agrees with that. We minimum tax—and I have a different doomed to fail. Every economist about know what needs to be done to get a view of what the alternative minimum whom I have been reading and talking bill. I happen to be on the committee tax is about. My understanding is that to has said the same thing: It is con- that is involved, and we know how the it was put in place to guarantee that sumer spending, stupid. That means we bill got to this point. It passed entirely everybody, regardless of how wealthy have to put money in people’s pockets with a partisan vote, all Democrats, no they are or how many tax credits or de- so they can turn around and spend that Republicans. Republicans did not have ductions they can take, pays some on behalf of their daily needs. participation in the bill. So this is a form of contribution—contributions to It is consumers who are going to buy bill that is totally partisan. That bill is national defense, to public health and airline tickets, computers, cars, not going to pass. safety, to education, to public services. clothes, and, I might say, coming from We need to work on a bill together. The alternative minimum tax says the great State of Michigan, we hope There is willingness to do that. Talk- that everybody in America ought to they buy a lot of cars. It is consumers ing about passing a bill without recog- make a contribution. who are going to go out to dinner, see nizing what needs to be done is amaz- The House Republicans say that not a movie, and help get things back to ing to me. It is clear what has to be only should some folks not have to normal, as the President has asked us done. make a contribution to our current na- to do. Senators from both sides of the aisle tional defense cost, or bioterrorism Unfortunately, the bill passed by the need to join with the administration cost, or efforts to clean up from ter- House and endorsed by the President and, indeed, with the Members of the rorist attacks, or education, or roads, does little to stimulate the economy or House to put together a bill which we or health care, and all of the other pub- to help the unemployed. It does little can pass. This business of continuing lic services that we have; we should to energize the consumer sector of our to talk about the need and then deny- retroactively pay them for 15 years. economy. It does little to help our ing the opportunity to get together is There is over $45 billion involved in the small businesses that are too often hard to understand. proposal on the House side, and it goes overlooked as tax policy is made and as Everybody here wants to pass a bill. to two major tax cuts, one of which, other policies are determined. There is no question about that. The the AMT, says not only are we going to The House-passed bill overwhelm- question is, How do we do it? And that take away your tax liability in the fu- ingly and unfairly gives tax cuts to becomes increasingly clear. There are ture, but we do not think you should those, frankly, who are not hurting not going to be enough votes to do it have paid anything in the past either, under this economy: the wealthiest without working together. This con- and we are going to retroactively, to Americans who do not have an eco- stant conversation about we need to do the tune of billions of dollars, give you nomic emergency, and tax cuts to the this right away is silly. We all want to back your contributions. largest multinational companies that do something to help the unemployed. I have a lot of small businesses, a lot we want to be successful but not at the We all want to do something for those of farmers, a lot of auto workers, re- expense of our small businesses or our who need help with health care. tailers, service industry folks, waiters, working men and women. We all want to provide more incen- waitresses, all kinds of hard-working I congratulate Senator BYRD and my tives to develop jobs. folks in Michigan who would love to colleagues who have been working to Talk about an emergency. How much have someone tell them: We are going increase our public investments in our have we spent in the last 2 months? to give you back the taxes you paid for homeland security efforts. We all know About $55 billion. The President has the last 15 years. we have to focus investments on bio- said: You do not need to spend more Nationwide, nearly 7 million people terrorism. We have to strengthen our money now. When we need more money are now unemployed. Unemployment in public health system. We need to focus for terrorism overseas or terrorism in my State of Michigan now totals over on those areas that will keep us safe at this country, I will ask for it. And we 268,000 people, and those are not even home, as well as supporting our na- responded when he asked for the the most current numbers as of Novem- tional defense abroad. money. Colleagues are now beginning ber. That is a jump of 74,000 people in I encourage and urge all Senators to to use that technique for passing all the last year and a jump of nearly come together to look at the facts, to kinds of projects they always wanted. 30,000 people just since July. look at what works, look at what the They are very questionable as far as This is an emergency for them. This economists are saying as to how best being an emergency. is an emergency for 268,000 people, to provide an economic stimulus and We need to come together and bring many of whom have children for whom recovery, to put the people of our coun- before the Senate a bill that represents they are caring. They want to make try first as we move forward, and to do the interests of all participating par- sure their children have what they so quickly. ties and pass it. We can do that. Until need and that their families can put This is an emergency. This is an that time comes, the chances are we food on the table, have the health care emergency for American families. This are not going to be successful in mov- they need and that their children have is an emergency for Americans, and we ing a bill along. the resources to go to school, possibly need to act quickly to demonstrate The substitute, of course, spends pay for mom and dad who need some that we understand and that we sup- about $67 billion in the year 2002: About help in their older years. These are port them. $21 billion on temporary business tax people who have worked hard and be- I yield the floor. relief and $46 billion on spending pro- lieve in the American dream and are The PRESIDING OFFICER. The Sen- posals, including Federal payments of now counting on us to believe in them ator from Nevada. individual tax insurance premiums S11766 CONGRESSIONAL RECORD — SENATE November 14, 2001 under COBRA, extended unemployment the other. And we expect to get that of those bills. The House added some insurance for displaced workers, ex- passed? It is not going to happen. provisions we did not have only be- panded Federal support for Amtrak, We can do something, and we can do cause they acted 3 weeks after we did numerous agricultural products, and something with the House if we can and they found some additional prob- other unrelated provisions. come together and put together a plan lems and some additional things that Secretary O’Neill recently said the where there is some involvement, bring could be done which they included in proposal is heavy on spending but will it to the Senate to pass it and pass it their package. Let’s take those. I be- have little stimulative effect on the quickly so we can move forward to ac- lieve Senator HOLLINGS, as well as Sen- economy. complish that which all of us want to ator MCCAIN and Senator HUTCHISON, Moreover, some of its provisions accomplish. are prepared to do that. would have an adverse effect on em- I see the minority leader in the Then it boils down to this question of ployment. An editorial yesterday in Chamber, and I yield the floor. how do you deal with the screeners the Washington Post made the fol- The PRESIDING OFFICER. The Re- themselves. I believe from discussions I lowing observation: The stimulus pack- publican leader. have had today with those who are in- age that passed through the committee Mr. LOTT. Mr. President, who has volved, they are beginning to come up last week includes money for citrus control of the time on this side? with a way that would allow us to growers and buffalo farmers producing The PRESIDING OFFICER. We are move immediately to some changes but electricity from chicken waste. It in- not under a time control situation. give some options, some flexibility, to cludes a tax break in aviation fuel for Mr. LOTT. Mr. President, I yield my- the administration and to the indi- crop dusters; a wage credit designed to self such time as I may consume. vidual airports. What they want in Bil- encourage firms to hire welfare recipi- I do want to comment on a couple of lings may be different from what we ents was extended to businesses in issues. First of all, I want to talk about want in Biloxi and Gulfport, MS. What Lower Manhattan. the job security stimulus package. Be- they want at LaGuardia may surely be So we all want to get this bill passed, fore I do that, I want to talk about the different than what they want in Rapid and I think we have a technique before aviation security package that is being City, SD. Give some options. us where we can do that. We can come considered now in conference. In some places, they may want and together and we can configure a pack- My point has been all along there is have the ability to do local law en- age that does what all of us want, and plenty of room for disagreement, but forcement. The next place maybe a pri- that is to assist those people who now there is also plenty of room for agree- vate company has been doing a good need assistance and provide stimulus ment. We need to get this done. We job or they have the capability to do a for the economy so we can get jobs and knew we had to get this done before good job. In other areas they may need growth back before us and to do it this past Monday when we had the to go to a federalized system. I do not know all the parameters of quickly. Those options are available to crash, very unfortunately, in New York what is being discussed, but in my con- us as soon as we are willing to recog- again. We cannot help but have such versations today with Senator HOL- nize what needs to be done to cause sympathy and concern and feeling for LINGS and Congressman YOUNG, the that to happen. the people of New York who have been chairman in the House, Senator The President has called upon the hit hard again. There are no indica- MCCAIN and Senator HUTCHISON, I be- Congress, specifically the Senate, to tions as to exactly what caused that lieve they have narrowed it down to adopt an economic package, including accident, but it did once again cause where we can get this done. So I would these kinds of things in the outline. people to be sensitive and nervous urge our conferees and the leadership Timing: We need to pass it and get it about the safety of flying. of those conferees, in a bipartisan way, to his desk, the President said, before We in the Congress need to put aside in a nonpartisan way, to get an agree- the end of November. We can do that. our ideological or even regional dis- ment. It is doable today and the Senate Tax cuts: We make sure our tax relief agreements because some of it is a lit- tle bit regional. In some parts of the could vote tomorrow. encourages investment, encourages the That would be such a tremendous in- country our airports are all small, re- flow of capital. dication to the American people we are gional airports, not the super big ones. We need to reform the alternative serious, that we are continuing our ef- We have a little different view of the minimum tax in corporate America so forts as we have over the past 2 months world than they might have in Chicago corporate America does not have to get to get the job done for America. Forget or New York or Los Angeles. We ought penalized during times of declining the philosophy, the party, the region, to put that aside and get this job done. earnings. any of that other stuff we quite often I believe I see movement now, that Create jobs: So often I do not think get tangled up with. It would be so im- we really look down the road as to both sides are beginning to say there is portant to send this bill to the Presi- what we want to be the outcome. If we a way we can get this package agreed dent’s desk the weekend before the can help people, we should, but the real to. Thanksgiving holidays. purpose is to create jobs and to create First of all, there is a misperception. Will it guarantee there will be imme- a stronger economy. We are going to federalize aviation se- diate safety within the limits of human Worker assistance: The President curity, period. There is a matter of de- endeavor? No. But it would be a posi- said we need to spend money on help- grees perhaps, but we are going to re- tive sign that would be well received, ing workers who lost their jobs as a re- quire perimeter protection. We are and it is the right thing to do. sult of the attacks on September 11. We going to require there be a safe and a I think that kind of attitude also ap- need to extend and expand unemploy- good screening provision at all of our plies to this job security or stimulus ment benefits to those workers, said airports. We are going to require there bill, as it is quite often referred to. On the President. I know we need to ex- be an additional check at the gate. We this bill we have kind of fallen back to pand what they call national emer- are going to require cockpit safety. We our old ways. We have the House posi- gency grants which will give the Gov- are going to have sky marshals, and tion. We have the Senate position. We ernors the latitude to take Federal the Federal Government is going to re- have the Republican position. We have monies and apply the money to special quire it and provide the money through the Democrat position. We have the worker needs. a fee system that will be paid for by spending position. We have lots of won- We need an energy plan that encour- tickets. We are going to say this is derful ideas. We have the tax cut provi- ages conservation, exploration, and what our requirements are, these are sions. production. That probably brings about the guidelines, this is the management. What we have is such a hodgepodge a kick to the economy more quickly We are going to make this happen. and such a weighted bill now that it is than most anything else we can do. The House added several provisions not going to happen. What we need to So these are the issues that have al- that were good, and we had some good do is go back to the beginning. We all ready been talked about, and they are ones in the Senate, by the way, that agreed there should be a package to common. We have a bill that is passed are not in the House provisions. We stimulate economic growth and job se- by one party without consultation with ought to take the good ones from both curity. The President, Republicans, November 14, 2001 CONGRESSIONAL RECORD — SENATE S11767 Democrats, the House, the Senate, we are some other options suggested by maybe there is another brilliant idea all said, yes, we need to get this done. the centrist group, suggested by the out there somewhere. I think we ought Will it be a magic wave of the wand President, suggested by CHUCK GRASS- to go for those basics, though, and get to make sure we have that growth? No. LEY, the ranking member of the com- this job done and try not to do any But it could be helpful. mittee. We can work through that. But damage, try to have some positive ef- We agreed we wanted it to be a tar- the important point is we are going to fect, and get it done. geted bill, one that would have some get that done. We have to get that Others have suggested we need addi- immediate positive effect on growth, done. tional spending, homeland security. A not 6 months from now, not a year We are going to have rebates for the lot of what is in that bill we may even- from now, but right now. When we low-income workers who did not get tually do. We may need to do it at started off, I thought everybody agreed the rebate in the earlier round this some point. It hasn’t been requested by on that provision. year. I personally think that is not a the administration and hasn’t even We also said we do not want to do good idea. I didn’t like it earlier, to been analyzed by the committees of ju- something that is going to be negative tell you the truth, because I doubt the risdiction, authorization or appropria- in the long term. We do not want to do positive impact that it really has in tions. To come in here and attach that something that gobbles up a big swath terms of a stimulus in the economy. I to the stimulus and say this is going to of money, taking us deeper into deficit think a lot of people will save it, pay stimulate growth in the economy be- spending after 3 years of having bal- down their credit cards. The argument cause it would spend money somewhere anced budgets and surpluses, and cause is, maybe the lower income people will down the line doesn’t meet the basic interest rates in the long term to go need it and spend it at Christmastime principles with which we started. Some back up. We all agreed we did not want and all that. Maybe it will work. But of the features to which I was most at- to do that, and we all agreed we wanted there is no use debating that because tracted I understand have even been to do it in a way that would have an that is agreed to. We are going to do taken out. immediate stimulative effect. We kind that. The President has agreed to that. So I think we need to do it. of lost sight of that. Democrats want it, Republicans agree There has been discussion that Sen- I do not want to be too critical of the to it, so why are we fussing around ator DASCHLE legitimately does not House bill, but a lot of what they about it? It is a done deal. want to have to negotiate a package on would do would take effect over a pe- Those are the three things the Demo- the floor of the Senate and then go do riod of years. I like that, personally, crats say they care about the most. Re- another one in conference and then but that is not quite exactly what we publicans say we understand and we maybe do a third one with the adminis- had talked about when we started. are going to have to do those three tration. Let’s skip all that. We are not In the Finance Committee we got things. We are going to have to allow going to get a result here in the Senate carried away with a lot of spending. the tax committee workers to work out as we are now set up. This is partisan, There are not many people going to be the details. But I trust them. Senator political. It is not bipartisan. It is not able to convince anybody that it is DASCHLE and I have talked about this. in the spirit in which we have been going to have an immediate stimula- I have talked to the chairman of the working in the last 2 months. We need tive effect. It may be justifiable. It Finance Committee, Senator BAUCUS to take a timeout and say, all right, may be something I would be for in the from Montana, and CHUCK GRASSLEY. I let’s skip all these hurdles and let’s go normal course of events. But it does have faith they are going to work this right to the end game. Let’s get the not meet the criteria we started out out. right people in the room and say: Get talking about. On our side of the aisle, we would this job done. I have never heard so many good argue that while that is the right thing I trust the people who would be in- ideas in my life. Oh, my goodness, yes, to do, it is the human thing to do, it is volved. I trust CHARLIE RANGEL. I trust let’s do this, let’s do that. Every House not really that stimulative in terms of BILL THOMPSON and MAX BAUCUS and Member has a different idea of what we getting more than a dollar back for a CHUCK GRASSLEY. They are the experts. could do to help this sector or that sec- dollar invested. So we need to do that They have done it before. Last year I tor of the economy. It wouldn’t cost which will have an immediate and dra- negotiated on a bill involving the CBI too much, it would only be a billion matic impact on the economy. Yes, we enhancement and the African free here and a billion there and, as Everett do talk about tax relief. We talk about trade bill with CHARLIE RANGEL and Dirksen would say, soon it adds up to individual tax rate cuts. We talk about BILL ARCHER, and we got it done. A lot real money. That is what we have come the importance of the accelerated de- of people said it would never happen: to. preciation for companies to write off You will never make that happen; it is We need to go back to the beginning the cost of their equipment faster. impossible. MAX BAUCUS was involved and do specifically what we said we By the way, I think Democrats agree in that effort, and others. We got it would do. We have to do the human to that, too. The difference is the done. need things. We have to provide more Democrats say we want to do it at 10 So I think the idea we would go unemployment compensation. We are percent over 2 years. Republicans say ahead and go to this, the conference ef- going to do that. The Democrats need we want a 30-percent bonus over 3 fort after these two votes this after- to understand we understand that. We years. Is there a middle ground in there noon, is the right thing to do. The are going to do that. We can argue over anywhere? Does anybody see it? Of American people, would they be hear- exactly how you do it, but it is going to course. So if we agree on the basic ing the Senate is deadlocked? No, that be 13 weeks additional unemployment principle, then we have to work is not what they would hear. What they compensation. The conferees, I am through the percentages and number of would see and what they would hear is sure, will argue about how that would years. We can do that. the Congress once again is going to the apply to the States and what criteria I do think—I have always thought— bottom line to come together on the have to be met before that happens, the alternative minimum tax is coun- right thing for America. Yes, they stat- and they will work it out. It is a 15- terproductive, counterstimulative, and ed their partisan political positions minute discussion, truthfully. does undermine the capital formation and they were beginning to drift back We are going to make sure people we need to have invested in the econ- to their old ways, but then they said who lost their jobs are going to have omy. no, we pulled back from the brink and health insurance coverage. There are It may not be the perfect answer. brinkmanship and said we are going to about three different good plans out Maybe there is another good idea out go to negotiations that will get us a there to be considered. We do not like there. I think Senator DOMENICI has an package. creating a new mandatory health pro- interesting idea with regard to the De- As we are headed right now, none of gram in COBRA. We don’t like that be- cember holiday on the payroll tax. I this is going to pass. We are stalled out cause we think, while it might start off am not saying that should be in there. here. We could have 20 or 25 votes by well intentioned and small, it will ex- It is not one that was considered, I Friday and have nothing but blood all plode to a massive program. But there don’t think, by the committee, but over the place and partisanship to the S11768 CONGRESSIONAL RECORD — SENATE November 14, 2001 maximum degree. Is that what the situation? Are we wondering whether have a hurricane, there is emergency American people want? No. our troops are overseas fighting for spending. When we have earthquakes, Do they want us to find a way to what could be if we did nothing the there is emergency spending. And when come together and get a result? Yes. Is survival of this Nation? terrorists and cowardly people take it going to immediately provide this No emergency? Tell that to the peo- two airplanes and plunge them into the great boost to the economy? I don’t ple of my city who are recovering from World Trade Center, and another and know. It may not. But psychologically the most devastating attack America plunge it into the Pentagon, and a it would help and substantively I be- has ever faced. fourth that we didn’t know where it lieve it could help. No emergency? Tell that to anyone was, and then for weeks there is an- So when we have these two votes, I who goes to an airport and sees the air- thrax and we can’t go back to our of- hope, and I call on my colleagues, let’s port mostly empty and to the millions fice buildings and in every corner of not make this an emergency designa- of others who will not fly. America people are afraid to open up tion. This is a stimulus package. Let’s No emergency? Tell that to the peo- the mail, we do not have an emer- not waive the points of order. Let’s go ple who live near our nuclear power- gency? to negotiation. Let’s get it started. plants and are worried about what Good morning. Go talk to your con- Let’s get it started tonight. might happen there. stituents. Go look at the numbers. I want to say—and I don’t want to No emergency? It is almost as if we There is certainly an emergency. get him in trouble—Senator DASCHLE came together after Pearl Harbor and I think it is an ultimate act of polit- has been very reasonable and I think said there is no emergency. ical trickery almost—certainly con- willing to pursue this type of approach. America has been attacked. We are in volution—to say there is not an emer- So have all the other players. That is a brand new situation where every one gency. Is there a Member of this body what we have to have. It is a bold of us is on the front lines because ter- who has not voted for emergency move. It does take leadership. rorists can use technology to attack spending when there was an emer- But why are we here? To stake out every one of us. gency? positions? To prevail in partisan bat- I remember Secretary Rumsfeld say- Sometimes you just stop and think tle? There will be another day for that. ing that in this war more civilians will and say: What is happening? Why is I hope it is a long time off. Let’s con- die than military personnel because of there a disconnect between Washington tinue to do business the way we have terrorism. and the rest of America? It is because done in the past, the way we have dealt No emergency? Good morning. Am I sometimes perhaps too many get car- with each other, the way we have met dreaming? Am I dreaming that we are ried away with their own words and with each other, the way we have tried debating whether there is an emer- their own ideological beliefs, and they to bridge the partisan and the political gency and that many will vote for the end up with the conclusion that is pat- gap because of the tragedies with fact that we are not in an emergency in ently ridiculous. It is patently ridicu- which we have had to deal. We have America? If this is not an emergency, lous to vote on a bill that has been de- that opportunity here once again. Let’s what is? signed to help our country in one of its keep it going. I think we can be suc- We have been attacked. Our whole most troubled times and say there is cessful if we use that approach. nation is changing. People are afraid. not an emergency. I yield the floor. The economy is tied in a knot because Let me talk about two other parts of Mr. BAUCUS. Madam President, I people do not want to go out and do the the bill. ask unanimous consent that at 5:15 things they took for granted before Again, I thank Senator BAUCUS and p.m. today the Senate proceed to vote September 11. I hope we are not going all the members of the Finance Com- on the Baucus motion to waive the rel- to fiddle while Rome burns. mittee. I thank Senator DASCHLE and evant sections of the Budget Act with That seems to be what the other side Senator REID. I thank all of my col- respect to the emergency designation, is saying. They can make a whole lot of leagues on both sides of the aisle who without intervening action or debate; arguments about the proposal with understand that New York is certainly provided further that at 4:55 p.m., the which Senator BAUCUS has led the Fi- in an emergency. following each receive 5 minutes of nance Committee. I will disagree with Despite our confidence that this closing debate, and in the order listed: many of them. I might agree with some nightmare will soon be over, New Senator GRASSLEY, Senator BAUCUS, of them. But I don’t know who on God’s Yorkers are uncertain about the fu- Senator LOTT, and Senator DASCHLE, or Earth thinks we are not in the middle ture. Very few Americans believe our their designees. of an emergency. It is just utterly city is off the terrorist list, and this The PRESIDING OFFICER. Is there amazing. belief is beginning to take a severe toll objection? Without objection, it is so I would like each person who votes at on our economy. Yesterday, tragedy— ordered. 5 o’clock that we are not in an emer- whether it was accident or not—rekin- The PRESIDING OFFICER. The Sen- gency situation to go home and explain dled that anxiety. ator from New York. it. I would like them to explain it to With Chairman BYRD and Senator Mr. SCHUMER. Mr. President, I my constituents in New York City and DASCHLE at the helm, and with the would like to address this legislation of Rockaway. I would like them to ex- broad support from our Senate col- great importance to my State, to my plain it to the millions of Americans leagues and the great job being done by city, and of great importance to Amer- who are afraid to walk into tall build- our colleagues in the House, Repub- ica. Before the substance of my re- ings or go over a bridge or take an air- licans and Democrats, I am confident marks, I would particularly like to plane ride. that we will ultimately get the disaster thank Senator BAUCUS, chairman of No emergency? Who are we kidding? aid needed to begin to rebuild our dam- the committee, Senator BYRD, Senator If there were ever a time when people aged and destroyed infrastructure. I DASCHLE, Senator REID—all of the lead- in the rest of the country were going to thank all of them for that support. But ership and all our colleagues who have scratch their heads and say there must that is for a later discussion. stood up for New York and for America be something in the water in Wash- What I am here to talk about today in our hour of need. ington because if we ask for this vote, is the need for the tax provisions for I would like to speak to the part of it might seem as if the only 100 people, New York that Chairman BAUCUS has the legislation that affects New York. or 51 people in the country who do not included in his economic stimulus Then I would like to talk generally think this is an emergency are in this package. These provisions are designed about the bill as well. great Senate of the United States. to counter the uncertainty and fear Before I do, I would like to address We are certainly in an emergency. It that we believe may lead companies to the specific vote that we face imme- is a far greater emergency than all the walk away from us. diately; that is, the point of order as to rest of the emergency spending bills Mayor Giuliani, the architect of New whether we are in an emergency or not. that I have voted for in my 21 years in York’s renaissance in the 1990s, and Am I dreaming? Are we debating this Congress. When we have a flood, now the hero in the eyes of so many in whether America is in an emergency there is emergency spending. When we this Nation, will tell anyone who will November 14, 2001 CONGRESSIONAL RECORD — SENATE S11769 ask that the key to the city’s economic In short, we have taken a hit for the your hard work. And I pledge my com- revival begins and ends with the safety Nation. When the terrorists attacked plete and total support for this pack- and the people’s confidence that the New York, they were attacking our fi- age. city is a safe place to live and work. nancial center, they were attacking On another point—and that is about His great city is now threatened not America, and they were attacking the this package—we have put together a by petty criminals but by mad men free world. None of the problems I de- package that is designed to put money half a world away hiding in caves while scribed above was of our making. None in the hands of people, A, who need it murdering innocent men, women, and of these problems was the result of a most, and, B, who will spend it the children. This uncertainty and the fear single thing we had or had not done. quickest. coupled with the sheer magnitude of And none of the assistance that we When I looked at the House bill, I logistical problems created by the at- have requested on either the appropria- was amazed; such a high percentage of tack threaten the entire economy of tions or tax side exceeds what we need the benefits do not even come into ef- this city, the State of New York, and, to simply stay afloat as we begin this fect in 2003, 2004, 2005. Without debating I believe, the Nation as well. daunting rebuilding effort. the merits of those provisions, it was Working or living in New York City, The assistance that Senator BAUCUS obvious someone put their ideological or Manhattan right now is not a pretty included for New York in the stimulus wishes ahead of a need to stimulate the picture. package is designed to send a message economy. Our streets are littered with 37 miles that the Federal Government will not When I even look at the alternative of high-voltage electricity lines that walk away and allow terrorists to de- Senate bill, we all know that many of are but one prankster away from shut- the larger companies that will get ting off power to our Nation’s financial stroy New York City’s economy. I be- lieve people from all over America be- these benefits, especially the ones in center. the bill of my good friend from Iowa, Over 40 percent of Lower Manhat- lieve that. It boils down to specifically three complementary provisions, where will not spend them immediately. tan’s subway infrastructure has been Many of these companies have enough destroyed, adding hours to the daily Senator CLINTON and I, working with the business community, the labor capital to spend on their own. When commute of over 375,000 people who they see a business investment, they community, the small business com- work in the city. will spend it. They will when they see munity, nonprofits, and Mayor All major river crossings—the Brook- an opportunity. Right now they do not Giuliani and Governor Pataki could lyn, Manhattan, Williamsburg, and see an opportunity because average come to the conclusion they are our Queensboro Bridges, and the Midtown, people do not have the money to buy highest priorities. Frankly, we sub- Lincoln, and Holland Tunnels—into the products that they might create. and out of Manhattan are subject to mitted a larger list. The Finance Com- I have talked to large numbers of nightmarish traffic jams because of se- mittee pared it down. But this is about businesspeople in finance and manufac- curity requirements. Yesterday, for in- our bare needs: turing and services. Most of them are stance, they were all shut down be- A $4,800 per employee tax credit to afraid to state this publicly, but when cause of the flight 587 crash. companies that retain jobs—and do not they talk to you privately, they say Nearly 25 million square feet of com- abandon New York—in the area imme- they don’t understand the House bill, mercial office space is destroyed or diately around ground zero; the cre- they don’t really even understand the heavily damaged. The amount de- ation of a special kind of private activ- Senate bill that came from the other stroyed—nearly 20 million square ity bond to lower the cost of rebuilding side, even though it might benefit their feet—surpasses the entire office space New York; and finally, a provision that companies. Their greatest worry is inventory of cities such as Miami and would permit companies that replace that the economy is hurdling south, Atlanta. equipment destroyed in the World Over 125,000 jobs have at least tempo- and that recession becomes deep reces- Trade Center bombing to take a special sion, and deep recession becomes deep- rarily vanished from the area, and the deduction if they replace that property city estimates that at least 30,000 are er recession, and God knows what after in New York. that. gone for good. Not a single aspect of these proposals Noxious fumes continue to emanate To sit here and say that we do not is designed to take businesses from an- have an emergency, and to sit here and from the hole at the World Trade Cen- other part of the country or to accom- ter site creating great concern among say we are going to give money to peo- plish job creation goals we could not ple who are not going to spend it im- workers and residents for their per- obtain before September 11, 2001. We sonal health. mediately, when this is supposed to be have been fully supported by our col- There is a possibility that the Hud- a stimulus bill, makes no sense. son River will bust through a retaining league on the Senate Finance Com- So I fully support the Finance Com- wall and flood the area as the debris is mittee, Senator TORRICELLI of New Jer- mittee package put forward by Senator removed. sey, as well as Senator CORZINE of New BAUCUS, not only because it helps New Insurance companies are demanding Jersey and Senators DODD and York, which is extremely important to 100 percent increases from companies LIEBERMAN of Connecticut, all of whom me and is sine qua non, but because if doing business in New York—simply have stood by and understand that New you want to stimulate the economy because they are located in a con- York’s problem is a metropolitan area and you can ask 100 objective people, firmed terrorist target zone. Some in- problem. non-Democrat, non-Republican, not surance companies refuse to provide in- These provisions are simply designed coming from a business or labor per- surance at any cost. to help us overcome some of the enor- spective, eliminate the ideologues from Mayor Giuliani had to cut $1 billion mous obstacles that Osama bin Laden the left or the right, almost every one from the city budget just to prevent an placed in New York City’s way. of them would choose the package of immediate fiscal meltdown at a time So I, once again, thank Chairman the Democratic Finance Committee. when the need for city services is at an BAUCUS and the members of the Fi- In conclusion, Madam President, No. all-time high. nance Committee. I see my colleague 1, we have an emergency, if we ever had The city of New York is staring at a from New Jersey has come into the one, and we ought to move this bill for- $3 billion deficit next year as a direct Chamber. I thank him for his steadfast ward. result of this crisis. The State’s rev- dedication and his treating our area as No. 2, New York needs help, not just enue loss is projected to be $9 to $12 bil- one. to benefit New York but to help Amer- lion. You have all done the right thing, ica get an important part of our econ- The Comptroller of New York City not only by the people of New York, omy on its feet, and this bill does it. places the economic loss to the city of who are suffering right now, but by the And No. 3, if there was ever a ques- New York and its businesses at $105 bil- people of America. I believe the Na- tion about the need to stimulate the lion in the next 2 years. tion, with this stimulus bill, will be economy now, by giving average folks The incident has caused the first de- much the better. the money they need to buy the things cline in city gross product in over 9 I thank all of you on the Finance that will get the economy going again, years. Committee who have supported us for this is the time and this bill does it. S11770 CONGRESSIONAL RECORD — SENATE November 14, 2001 Madam President, I yield back my each and every additional dollar this ing up to $10 million for bison farmers time. Congress appropriates in fiscal year for the Midwest. The PRESIDING OFFICER. The Sen- 2002 is going to require the U.S. Treas- For each employee they have, Wall ator from Ohio. ury to issue new debt. We are right Street investment bankers would re- Mr. VOINOVICH. Madam President, back to where we were in 1997, the last ceive a $4,800 tax credit, a credit origi- before the tragic events of September year the Federal Government had to nally designed for use in training indi- 11, one of most pressing issues facing issue new debt. As we debate the eco- viduals moving from welfare to work. this Nation was what to do about the nomic stimulus package, efforts to Mr. TORRICELLI. Will the Senator economy. From the spring of 2000 until fight terrorism or anything else to do yield for a question? September 10 of this year, all the indi- for that matter, we must constantly The PRESIDING OFFICER. Will the cators pointed to an economic slow- ask ourselves a vital question: Do these Senator from Ohio yield? Mr. VOINOVICH. I will yield for a down, if not a mild recession, for fiscal new spending initiatives or tax cuts question. year 2002. warrant issuing new debt to pay for Since September 11, the economy has Mr. TORRICELLI. The Senator cited them? The question I am asking the $4.4 billion worth of tax breaks for Am- far worsened. Hundreds of thousands of various constituencies who visit me people have been laid off. Businesses trak. What provision would that be? I asking for more money from the Gov- am the author of the Amtrak provi- and industry are in dire financial ernment is whether or not their re- shape, and consumer confidence has sions. I am unaware of any tax breaks quest is worthy enough to borrow for Amtrak. Amtrak, being a public plummeted. Several friends of mine in money from our fellow Americans to the retail industry have predicted a nu- corporation, doesn’t pay taxes. So it pay for it? That is the question. Again, clear winter for the retail industry this would be hard to give them a break. the circumstances warrant borrowing holiday season, and many Ohio manu- Nevertheless, the Senator made a money to fight terrorism and to boost facturers I have talked to have told me statement about a provision of which I the economy. I supported the $40 bil- they have never seen things as bad. don’t know. For purposes of the insti- Given the challenges these turbulent lion emergency supplemental that we tution, my colleagues would like to times present, I say to my colleagues passed following the September 11th know what tax breaks Amtrak has as a in the Senate—and to the American attacks, and much of that supple- special interest? people as well—we need to focus on mental is going to respond to the needs Mr. VOINOVICH. According to the those measures that will stabilize and we have heard about this afternoon. information I have, under the majority Extraordinary times require Con- grow the U.S. economy. The need for stimulus package, they would end up fiscal discipline is more important gress to take extraordinary actions. We getting a $4.4 billion benefit. And if I today than ever before. will spend what it takes to defend this stand corrected, I am more than happy I am worried that Congress, in its Nation from our enemies and to re- to check that. haste to enact measures to eliminate spond to the needs of our country. The Mr. TORRICELLI. The Senator is very kind to yield. For that, I am very the scourge of terrorism at home and fact that the Federal Government will, grateful. I would like the record to be abroad and counter our recession, is once again, have to issue new debt to correct. Amtrak doesn’t pay taxes so it overlooking the Nation’s long-term fis- fund any new spending highlights how can’t get a tax break. The provision is cal integrity. Earlier in this calendar critical it is that we appropriate these that the States can issue bonds to year, the Congressional Budget Office funds wisely. build high-speed rail lines, and the indicated that the United States would Earlier this year I supported the Federal Government will pay the inter- have a fiscal year 2002 on-budget sur- budget resolution and the tax cut. I est on it. So the Federal Government, plus of $125 billion and a Social Secu- saw a plan whereby increased spending in fact, is helping the States. The tax rity surplus of $156 billion. However, increases would be limited and we breaks go to the States that we rep- given the worsening economic condi- would use the Social Security surplus resent, not Amtrak, not any projects, tion of our Nation over the past year, to pay down debt. It wasn’t too many not any special interests, the States of the most recent calculations of the weeks ago we were talking about this the Union. I include in that the State Senate Budget Committee show that in the Senate. Unfortunately, this is of Ohio. I thank the Senator for yield- the Federal Government is on track to not what has happened. Even before ing to me. have a unified or combined surplus of the events of September 11, Congress was on track to increase overall discre- Mr. VOINOVICH. I thank the Senator $52 billion in the current fiscal year. for refreshing my memory. In essence, the Budget Committee is tionary spending by 8 percent. That follows a 14.5-percent increase in non- The fact is, tax breaks would be saying that the on-budget surplus CBO given to individuals who purchase defense discretionary spending the year estimated for fiscal year 2002 has been State issued bonds. However, in effect, before and another 8.6-percent increase totally wiped out, gone. Two-thirds of the U.S. Treasury ends up paying $4.4 the $156 billion in Social Security sur- in spending the year before that. This pace of spending increases is billion in interest for Amtrak on those plus no longer exists. bonds by giving up tax revenue from just unsustainable. I support the need What is more, the stimulus package individuals who purchase such bonds. for a stimulus package. I have been the Senate is considering will cost ap- That is the point I was making. proximately $75 to $100 billion. To pay working with members of the Centrist The movie industry would receive ex- for that package, the $52 billion in So- Coalition to craft a balanced bill that pedited depreciation for their capital cial Security surplus will be gobbled will help spark our economy by getting assets. Chicken farmers would get a up, and the Federal Government is businesses to boost investment and tax credit extension for converting going to have to issue somewhere be- which helps raise consumer confidence chicken waste to energy. The list goes tween $23 and $50 billion of new debt and gets the American people spending on and on. this fiscal year. again and responds to the financial and Over in the House, one of the biggest In addition, the Federal Government health care needs of the unemployed. items in their stimulus package would likely will end up a lot further in the Sadly, though, the bill reported out repeal the corporate minimum tax and financial hole because Congress will of the Finance Committee last week repay more than $20 billion retroactive pass additional supplemental spending appears as if Christmas has come a to 1986 and give some of the major cor- measures as the fiscal year progresses month early. In fact, some of the provi- porations in this country a big tax and disasters and other emergency sions of the majority stimulus measure bonus. issues inevitably arise. The President as well as the measure that was passed As reported in the November 11 edi- said he may be coming back to Con- by the House, are nothing more than tion of the Washington Post, 16 compa- gress later this fiscal year for more handouts for any number of special in- nies in particular, many in the energy money as he finds the need to respond terest groups. field, would receive more than $7 bil- to some of the issues that some of my For example, under the majority lion in immediate tax refunds. While a colleagues have been talking about. stimulus bill, Amtrak would receive number of the specific proposals in ei- My point in going through these $4.4 billion in tax breaks and $3.5 bil- ther package might give a boost to cer- numbers is to highlight the fact that lion to subsidize farm products, includ- tain areas of the economy, we need a November 14, 2001 CONGRESSIONAL RECORD — SENATE S11771 bill that will give us what truly are the out of general revenues, or more bor- in recession for the first time in over a best stimulus proposals, the ones that rowing. What we are doing today will decade, now is the time for Congress to will give us the biggest bang for the have a large impact down the road. act to help hard working Americans. buck for both the economy and our un- In order for this Nation to deal with The Baucus-Byrd legislation will employed workers. these looming responsibilities, it is strengthen consumer confidence as Another important factor we should critical that we have our fiscal house well as public safety. consider is whether these provisions in order and have a robust economy. An already struggling economy was stimulate the economy in the short run The first obvious step to ensuring that dealt a crippling blow by the Sep- without causing a fiscal hangover that we can meet these obligations is to get tember 11th terrorist attacks. In order lasts many years. In brief, they need to spending under control and return to to best jumpstart the economy, each be temporary. reducing the national debt, as we did part in the stimulus package has a sub- One such provision I support as part the last 3 years. stantial effect in the short-term, the of the stimulus package is a temporary I am heartened that our President greatest impact for the money spent, extension of unemployment benefits said he will veto an emergency supple- and no great cost in later years. I be- for up to 13 additional weeks for those mental spending measure being devel- lieve that the Baucus-Byrd stimulus who have been hit hardest by the reces- oped by some of my colleagues. I stand package is directed toward boosting sion. In addition, I believe families who squarely behind the President, and so business and consumer confidence in through no fault of their own find do 36 signatories of a letter Senator the future. America’s workers need assistance themselves relying on unemployment BUNNING and I circulated several benefits should not have these benefits months ago. This letter reinforced the now. Today, with more than 7 million Americans out of work, the Nation is reduced further through taxation. fact that we would uphold a Presi- suffering through its highest level of Therefore, I propose, as part of the dential veto of excessive spending. unemployment in 20 years. More than package, an interim suspension of the The fact that the Treasury will once half of unemployed people do not qual- taxation of unemployment benefits. We again be issuing new debt to finance ify for unemployment, and the vast should do that. the operations of the Federal Govern- majority cannot afford health coverage Several weeks ago I met with Federal ment makes it that much more impor- under our current system. As of mid- Reserve Chairman Alan Greenspan to tant that Congress work together— September, there were 10,888 unem- discuss the state of the economy and work together—on a bipartisan basis to ployed people in Vermont, a season- the need for a stimulus package. Per- make the hard choices and prioritize ally-adjusted unemployment rate of 3.2 haps the most important point he made our spending. percent. Approximately 27,200 to me was that the Congress should As I have traveled across my State Vermonters will claim unemployment consider the net effect of any stimulus over the past 2 months, I have seen the insurance in the next year, according package, not just the gross amount of anxiety on the faces of my constitu- to estimates from the Department of ents. The thing that is giving them a the dollars involved. In other words, Labor’s National Employment Law great deal of comfort is the fact that don’t just focus on the size of the tax Project. Of those, 3,536 will exhaust they believe the President is doing a cuts or the dollars spent but look at their unemployment benefits during good job, that he is 100 percent focused the net effect on the economy when all that time. is said and done. on protecting the Nation’s interests The Senate’s economic recovery plan If the stimulus package that Con- and he has put those interests ahead of addresses these problems by providing gress adopts leads to chronic budget partisan politics. unemployment insurance and health deficits, either through increased The American people also believe coverage for laid-off workers, tax re- spending or revenue reductions, it is Congress is doing the same thing, and bates for middle and low-income people going to drive up interest rates. Make we must not let them down. One of the who need immediate relief, and tax in- no mistake about it, the financial mar- things we need to do is understand that centives for small businesses to encour- kets are watching us. we are facing a much different ball age immediate investment in new The Senate lays claim to the title game than we have ever faced before. plants and equipment. ‘‘world’s most deliberative body.’’ As This is not 5 years ago, 10 years ago, 15 One of my primary goals in the wake George Washington said, ‘‘We pour leg- years ago; this is a new ball game for of the September 11th attacks has been islation into the senatorial saucer to all of us. The people have anxiety; they to increase the security of our border cool it.’’ are fearful and angry. They are looking with Canada. Over the past decade or At this time in our history, it is crit- at us, and they are wondering: Are you more, the northern border has contin- ical that the Senate takes on its role going to work together for our inter- ually been shortchanged. While the and thinks carefully about the long- ests, or are you going to go back to number of Border Patrol agents along term fiscal consequences of its actions. partisan politics again and put your the southern border has increased over Intellectually, this means Congress particular party’s interests above those the last few years to over 8,000, the must hold the line on spending and of the people? number at the northern border has re- that any increased spending should be Madam President, we can work to- mained the same as a decade ago at 300. limited to measures that truly raise gether, and we must if we expect to get Even as the northern border was in- domestic and international security a bill to the President by the end of the creasingly discussed as an attractive and efforts that truly stimulate our month. The eyes of America are upon route of entry into the United States economy. us to see if we have learned that this for terrorists, Congress failed to rectify I also remind my colleagues that the Nation’s interests are bigger than our this imbalance. events of the past couple of months, own partisan interests. We began to make up for this pattern momentous as they have been, do not I pray that the Holy Spirit enlight- of neglect with passage of the USA PA- change the fact that the baby boomers ens this body to understand the enor- TRIOT Act last month. That law au- are aging and approaching retirement. mous impact our decision will have on thorized a tripling of the number of When 2011 rolls around, the baby the future of our Nation and on the Border Patrol officers, INS Inspectors, boomers will start to retire by the tens quality of life of its citizens. and Customs agents in the States that of millions. I yield the floor. share a border with Canada. It also au- Unavoidably, the cost of a host of Mr. LEAHY. Mr. President, I rise thorized $50 million each to the INS Federal social programs also will in- today to commend Senators BAUCUS and Customs to improve the tech- crease significantly. Chiefly, I am talk- and BYRD for crafting a reasonable and nology used in monitoring the border ing about Medicare. A few years latter, appropriate economic stimulus bill. and to purchase additional equipment. the Social Security Program will begin The package they have brought for- This law provides the basis for improv- to pay out more money in benefits ward balances tax relief, assistance for ing our security, but we must now en- than it will collect in payroll taxes. unemployed workers, and spending for sure that these proposals are funded. The difference between those inflows homeland security and economic recov- This stimulus bill provides the first and outflows is going to have to come ery. With the United States economy step. S11772 CONGRESSIONAL RECORD — SENATE November 14, 2001 Senator BYRD proposes an additional new home, with a new baby. Families is theirs. That is what the deceased $327 million for U.S. Customs—$31 mil- wanted to mourn, but there wasn’t a husbands or wives would have wanted. lion to be used for new staffing which lot of time because in 2 weeks a mort- It is for their children and for their fu- could result in as many as 350 new gage payment was due, in 3 months a tures, not the Government. agents. Coupled with the 285 new tuition payment was due, that weekend Fourth, the bill provides help for agents for the northern border funded there were groceries to buy, and there those who were fortunate enough to in the Treasury Postal Appropriations were no more paychecks. For them, it survive the attacks, but for those thou- bill earlier this year, we are on the way is a crisis that never goes away. sands who had injuries current law ex- to addressing the shortfalls felt by the In the legislation before the Senate, cludes disability benefits from income Customs Service in the north. there may be things Senators like and if a U.S. employee is injured in a ter- This bill also appropriates over $700 there may be things they do not like. rorist attack outside the United million for INS to improve INS facili- There may be points of controversy. I States. This legislation will extend the ties and border infrastructure to help trust there is one thing upon which we same benefit to those citizens of the better secure our country. While I had can all agree. I am very grateful that, United States injured in a terrorist at- hoped more money and attention would on a unanimous and bipartisan basis, tack and receiving disability benefits. have been dedicated to the staffing Members of the Senate accepted, under Fifth, there is no better statement shortfalls, I am confident we can ex- Senator BAUCUS’s leadership, an about America than the hundreds of pand these initiatives in the supple- amendment I offered that will change millions of dollars donated to private mental appropriations bill scheduled to the tax status of families who lost a charities since September 11, but there move after the Thanksgiving holiday. family member on September 11 at the is the question of the tax liability of We will need to show continued vigi- World Trade Center, the Pentagon, or families who receive some of this as- lance on this issue. For too long, we through the anthrax attacks in recent sistance from employers, friends, fam- have ignored the needs of the northern weeks. ily, or charities. Under the provision of border and been complacent about our The amendment I offered is based on the bill, we have made it far easier for security. We no longer can afford such an aspect of current American law. If, charitable organizations to make pay- complacency. under the statutes of our country, a ments to victims and their families and The proposal would also include $600 member of the military is lost in an en- for companies to establish private million for additional FEMA fire- gagement abroad, or a civilian em- foundations to help the survivors with fighting grants. This money would ployee is killed by a terrorist act short- and long-term needs. allow state and local communities to abroad, they will incur no tax liability Indeed, any payment from an em- expand and improve their firefighting to the U.S. Government for that year. ployer to a victim or family for per- programs. Over 50 percent of the fund- When that provision was written, I sonal, living, family, or funeral ex- ing would go to volunteer fire depart- have no doubt it did not occur to Mem- penses will be tax exempt. ments in rural communities. bers of the Congress that victims would It clarifies that payments made by Again, I thank the Chairman of the not be people in the service abroad but airlines, as well as Federal, State, and Finance Committee and the Chairman would be civilians at home; that the local governments as a result of the at- of the Appropriations Committee, for front lines would not be in Latin Amer- tacks are also not to be taxed. bringing forward this important legis- ica, Africa, or Asia but in New York, The Senate may debate much of this lation. America’s national security New Jersey, or Virginia. But that is legislation. As one Senator who rep- must not be left behind as Congress the world in which we live. The laws resents hundreds of these victims and considers an economic stimulus pack- must be changed accordingly. their families, much may be nego- age. The Finance Committee, therefore, tiable. Some things may be excluded, The PRESIDING OFFICER. The Sen- has put before the Senate a provision but one thing must stand. When this ator from New Jersey is recognized. that changes the tax laws to relieve year is concluded, no American who Mr. TORRICELLI. Madam President, the liability of these tragic families. found a member of their family on the in the legislation before the Senate on First, income tax liability for this front line of the war against terrorism economic recovery, we are, of course, year and last year is waived. No fur- should be held liable for taxation of the focused on those who have lost their ther payments will be paid and refunds U.S. Government for charitable, gov- jobs, those businesses and unions that will be received when appropriate. ernmental, family, or other assistance. are in distress, and our various commu- Second, we recognize that many of What last dollars these family mem- nities. those who worked at the World Trade bers may have earned for their wives or But there are some American fami- Center or even in the Pentagon were husbands or children surely by justice lies for whom September 11 is not a not salaried employees of considerable must be their own. On this provision, memory; it is a crisis in their lives means but may have been performing we should all insist. that they wake up with every morning. janitorial services or were service em- Madam President, I yield the floor. I am speaking about the families of ployees or worked in the restaurant at The PRESIDING OFFICER. The Sen- those who perished—the 5,000 husbands the World Trade Center. With modest ator from Alaska. and wives and thousands of children for means, their families face great obliga- Mr. MURKOWSKI. Madam President, whom September 11 will be a day they tions to plan their futures. They may I inquire of the time remaining. I un- will live with for the rest of their lives. not have paid Federal income tax. derstand there are several of us who Nearly 600 of the dead were from my Therefore, the second provision waives want to speak. State of New Jersey. Senator CORZINE FICA taxes or payroll taxes that were The PRESIDING OFFICER. There is and I have begun meeting with the hus- paid and may be owing for these fami- 12 minutes remaining before controlled bands and wives of those deceased. It is lies. time begins. an experience I wish every Senator Third, many of the families of the de- Mr. MURKOWSKI. I wonder if I may could share. It becomes so common to ceased are now in the process of exam- speak for 31⁄2 minutes. speculate on whether September 11 has ining the wills of the dead that say The PRESIDING OFFICER. The Sen- changed America forever. I don’t know. what is available for children, wives, or ator from Louisiana. But I know that when I meet with husbands. Under the Finance Com- Ms. LANDRIEU. Madam President, I these widows and widowers, America mittee legislation, there is estate tax inquire, under the agreement, how has forever changed for them. relief for the first $3 million in assets much time was I allocated? We debate the economic con- from Federal and State estate taxes. The PRESIDING OFFICER. There is sequences for our country. I want you There is $8.5 million of Federal estate no allocation of time for the Senator to consider the economic consequences tax relief. from Louisiana. for them, what the morning was like, It is generous, but it is appropriate. Ms. LANDRIEU. I ask unanimous not of September 11 but of September Whatever money is to be left for many consent that the Senator from Alaska 12, when a husband or a wife was gone. of these families is all the income they have 3 minutes, that I have 7 minutes It could have been a young family in a will know for the rest of their lives. It of the remaining time, and I see the November 14, 2001 CONGRESSIONAL RECORD — SENATE S11773 Senator from Delaware. How about 5, 5, penditures that would be stimulated by terrorist on our shores. There have and 5? opening up this area. Can we do it safe- been thousands of businesses and mil- The PRESIDING OFFICER. That will ly? Certainly. lions of people in jeopardy because of exceed available time. The arguments against opening that attack. Mr. MURKOWSKI. I correct the Sen- ANWR are the same that prevailed 27 This Government, under the Con- ator from Louisiana; I asked for 31⁄2 years ago against opening Prudhoe stitution, and all that we know about minutes. Bay. We have the technology to do it. our Government, has a responsibility Ms. LANDRIEU. I ask unanimous The American labor community sup- to those individuals to help provide consent for 31⁄2 minutes for the Senator ports it. It is the right thing to do to economic recovery. That simply is from Alaska, 41⁄2 minutes for myself, stimulate the economy, and we should what this package does. This is not an and the remaining time for the Senator not wait any longer. It is truly a stim- entitlement. This is not a special inter- from Delaware. ulus. It belongs as part of this bill. est. Our country exists to help us pro- The PRESIDING OFFICER. Without I hope my colleagues will reflect on a tect and defend ourselves, and that is objection, it is so ordered. better stimulus they can identify that what workers and businesses are trying The Senator from Alaska. meets that criteria: It does not cost to do. They have been attacked, and Mr. MURKOWSKI. Madam President, the taxpayer one red cent; 250,000 di- Government has a right to respond and I thank my colleague for her coopera- rect jobs; generation of about $3.6 bil- respond in this way. tion. I will be brief. We are talking lion directly into the revenue stream of The package before us provides some about a stimulus package, and I want this Nation. very important help to keep these busi- to address a specific stimulus package My time is up. I thank my col- nesses open, to help people continue to that I think is most appropriate rel- leagues. I ask for their consideration. receive a paycheck so they can pay ative to the business at hand before We will have a vote on this amend- down their mortgages. Think about this body. ment. this: Our Army, our Navy, our Air As we all know, the question of stim- The PRESIDING OFFICER. The Sen- Force and Marines are assembled all ulus means different things to different ator from Louisiana. over the world to keep Americans or people. Senator CRAIG of Idaho offered Ms. LANDRIEU. Madam President, I keep foreign armies from taking homes an amendment, H.R. 4, on the stimulus am proud to support the Baucus-Byrd away. Whether they come on to our bill today. I intend to pursue that and stimulus and economic recovery pack- shore and take our homes away by con- bring that matter up. age and believe that it is exactly the fiscating the building or whether It is important to understand just right package at this time to defend, homes are taken away because the what H.R. 4 does. It is the legislative protect, and make our Nation stronger. homeowners inside cannot pay their portion of the President’s comprehen- The preamble to our Constitution mortgage, what difference does it sive energy program that aims to se- states that the purpose of our Federal make? The home is gone. cure America’s energy future with new Government is ‘‘in Order. . .to provide Senator BAUCUS has been working national energy strategies that reduce for the common defence, promote the morning, noon, and night to come up energy demand, increase energy sup- general Welfare, and secure the Bless- with a package to help Americans pay ply, and enhance our energy infrastruc- ings of Liberty to ourselves and our their mortgage. We can ask Americans ture and our energy security. It is Posterity.’’ who live in Louisiana or Montana, truly a stimulus bill. The Framers of our Constitution, what difference does it make if they do It is supported by an extraordinary Madam President, as you know, were not have their house? So let us craft a group of Americans: the veterans very deliberate; they were very exact; stimulus package that helps businesses groups, the American Legion, Veterans they were very careful in the wording stay open, workers pay their mortgage, of Foreign Wars, Vietnam Veterans. I of these documents that helped to cre- people be able to use their benefits. could go on and on. It is supported by ate and sustain our Nation. For that This package that has been put to- the Hispanic groups. It is supported by reason, it strikes me as very important gether by Senator BAUCUS, Senator those over 60, America’s labor commu- that the first priority of our Govern- DASCHLE, Senator REID, and the Demo- nity, senior citizens, small business, on ment is to provide for the common de- crats recognizes the responsibility for and on. fense. I believe the Baucus-Byrd stim- common defense. It also recognizes it Why is it so significant inasmuch as ulus economic recovery package does does not really make a difference how it is and should be a part of this bill? I exactly that. Let me explain. a person loses their home. The loss is challenge each Member of this body to We fund a military operation whose the same, and let us fashion a package identify a greater stimulus associated sole purpose is to protect American that helps them. with the House bill, H.R. 4, which is lives, our property, and our well-being. Give 75 percent of COBRA premiums now part of the stimulus package, in Our lives, our property, and our well- for displaced workers. In Louisiana, stimulating the economy with at least being are at risk because of the attack these premiums cost $7,000. That rep- 250,000 direct jobs associated with the we are under. resents 75 percent of the unemploy- building and opening of ANWR. Fur- This is a two-pronged war in which ment check. So if we do not provide thermore, the revenue of about $3.6 bil- we are engaged: We are engaged in Af- health care, it is as if a foreign army lion going into the Federal Treasury ghanistan on the ground trying to find came and took over a hospital and from lease sales would go directly to the people and groups responsible for stood at the door with a machine gun offset some of the cost of our war on the attack on the United States and and said, no, we know that you are terrorism. our allies, and we on the homefront are dying and need surgery, but you are What would it cost the taxpayers? trying to keep our Nation standing up not going to have access to this hos- Not one red cent. As we look at the under this attack. pital. If we do not give COBRA pay- stimulus package objectively, let us I ask my colleagues: What would it ments, it is the exact same. People recognize what it is. It is a spending matter or what difference would it cannot use the hospital. It is the same package, but this portion is not. This make to a businessperson if his or her thing for unemployment. would be funded by the private sector. business were destroyed by a terrorist So I want to strongly urge this pack- The oil industry would bid on these in a direct attack or if his or her busi- age for Louisiana, for our Nation, and leases in my State of Alaska, the rev- ness were destroyed due to the impact to say that for the nonproliferation enue would flow to the Federal Govern- of a terrorist attack? issues it is a direct risk to our Nation ment, and the employment would stim- The business is lost just the same. if we do not invest in ridding this world ulate the economy and jobs. We can come to this Chamber in a bi- of weapons of mass destruction. There would be at least six new tank- partisan spirit and support our mili- I yield back my time. ers built in U.S. shipyards that would tary, and I do. The military is to pro- The PRESIDING OFFICER. The Sen- be operated by U.S. crews, and it would tect our interest, our lives and our ator’s time has expired. fly under the American flag. This is livelihood. There are thousands of fam- The PRESIDING OFFICER. The Sen- hundreds of millions of dollars of ex- ilies who have been directly hit by a ator from Delaware. S11774 CONGRESSIONAL RECORD — SENATE November 14, 2001 Mr. CARPER. My colleagues have September 11, in the way of an exten- mon challenges facing our country. I heard me say a number of times, re- sion of unemployment insurance and believe deeply that the very best thing flecting back on the last 8 years when an added hand in maintaining health we could do right now to restore the I served as Governor of Delaware, that coverage for themselves and their fam- confidence of consumers, investors, and we always had in place a litmus test ilies. Additionally, the Baucus package business leaders alike would be to work that we applied when we considered provides assistance to the City of New together to pass a bipartisan economic proposed tax cuts. The litmus test was York to help with that city’s heroic ef- stimulus package. that those proposed tax cuts should be forts to recover and rebuild from the I believe there is still an opportunity fair. They should stimulate the econ- devastating events of September 11. to come together across party lines and omy and create jobs. They should sim- Second, the bipartisan budget com- between the two chambers to achieve a plify the Tax Code. And they should be mittee principles stated that a stim- reasonable compromise that will serve consistent with a balanced budget. We ulus package should equal approxi- the best interests of the country and need a similar set of guiding principles mately one percent of GDP, including extend the spirit of bipartisan coopera- as we debate the stimulus package that the fiscal impact of all of the various tion here in the Congress. The only is before us, and as it turns out there is actions taken by Congress since Sep- way we can hope to reach agreement such a set of guiding principles. tember 11. The size of the Baucus pack- on the fine details at the end of the The process of working out a bipar- age, at $70 billion over the next 12 day, however, is if we remain true tisan economic stimulus package months, is slightly less than the $75 throughout the process to the broad began shortly after the attacks of Sep- billion requested by the President. On principles that we agreed to at the out- tember 11. The White House and con- the other hand, when combined with set. gressional leaders from both parties the other measures passed since Sep- I believe that Chairman BAUCUS has met jointly and, in consultation with tember 11, it is slightly more than the kept faith with the bipartisan prin- Chairman Greesnspan and former one percent of GDP proposed by Chair- ciples that were proposed by Chairman Treasury Secretary Robert Rubin, they man Greenspan and Secretary Rubin Greenspan and Secretary Rubin and agreed upon a bipartisan set of prin- and agreed to by the bipartisan leader- were agreed to by the bipartisan lead- ciples for an affective and responsible ship of the budget committees. ership of the budget committees and by package. Those principles were agreed Third, the bipartisan budget com- the Centrist Coalition. I believe that he to jointly by the bipartisan leadership mittee principles stated that measures has negotiated in good faith. For that of the House and Senate budget com- included in a stimulus package should reason, Chairman BAUCUS has my sup- mittees, as well as by the Centrist Coa- be limited in time, so as not to push up port. I hope he will have the support of lition here in the Senate. long-term interest rates and so as not all centrists here in the Senate, wheth- I stated at the outset of this process to make permanent our recent reliance er Democrat, Republican, or Inde- that I would use these bipartisan prin- on the Social Security trust fund to pendent. ciples as my guide as we considered make up for renewed on-budget defi- The PRESIDING OFFICER. The time economic stimulus legislation here in cits. The recommendation of the bipar- of the Senator has expired. the Senate. I have conveyed that mes- tisan leadership of the two budget com- Under the previous order, the Sen- sage to all of my constituents who mittees was that all measures should ator from Iowa is recognized. have written me on this subject or who sunset within one year. The sunsets in Mr. GRASSLEY. Madam President, I have talked to me about the issue at the Baucus package conform with that believe I am recognized for 5 minutes? town hall meetings. I also conveyed the recommendation. The PRESIDING OFFICER. The Sen- same message very early on to Chair- Fourth and finally, the bipartisan ator is correct. man BAUCUS and both leaders. budget committee principles stated Mr. GRASSLEY. Our leader also Since this debate has, unfortunately, that to keep the nation on track to pay would have 5 minutes. I have talked to become much more partisan of late off the national debt over the next dec- Senator LOTT, and he said since he than it was in the beginning, it’s help- ade, outyear offsets should make up spoke this afternoon perhaps Senator ful to look back at those bipartisan over time for the cost of near-term eco- NICKLES would like to speak. So I hope principles that we started with. Chair- nomic stimulus. And this is really Senator NICKLES or somebody else from man BAUCUS deserves great credit for where Chairman BAUCUS deserves great our leadership can come and speak. If sticking to the spirit as well as the let- credit. The cost of his plan over the they do not, I will be glad to do it for ter of those principles from beginning next decade—the effect it will have on them, but right now I will take 5 min- to end, even as he has come under long-term interest rates and on our utes. great pressure from all sides. ability to finance the retirement of the Madam President, over the last sev- First, the bipartisan principles stated baby boom generation—is one-third eral days, we have heard about how that a stimulus package should accom- less than the stimulative impact of his this process of getting to a stimulus plish three objectives: restore con- plan over the next 12 months. package started with a set of principles sumer demand; increase business in- This combination of significant that presumably both Republicans and vestment; and help those most vulner- short-term stimulus with relatively lit- Democrats on the budget process, as able in an economic downturn. tle long-term cost is precisely what the well as the finance process, have agreed On the consumer side, the Baucus bipartisan leadership of the budget to. package provides, as the President has committees called for at the outset of Democratic Senators have particu- requested, rebate checks to the 45 mil- this process, but it is easier said than larly been reminding us of this process lion taxpayers who either did not get done. Just consider that the package of having a stimulus package agreed to checks this fall or only got partial passed by our counterparts in the with a whole set of principles. They checks this fall. House is 60 percent more costly over have been reminding us of this, and On the business side, the Baucus the next decade than it is stimulative they have particularly been reminding package provides specific tax incen- over the next 12 months, or that the al- us as they criticize the House bill on tives to encourage businesses to invest ternative our friends on the other side the stimulus. They also used it to criti- again in America and to do so imme- of the aisle are offering here in the cize a proposal I released a few weeks diately. In particular, the Baucus pack- Senate is nearly 50 percent more costly ago that represented the thinking of age includes a provision the President over the next decade than it is stimula- the Republican caucus. requested to allow businesses, large tive over the next 12 months. As is often the case, not every prin- and small, to recover immediately a I regret that this process has become ciple fits everything they want to talk greater portion of their investment as partisan as it has. I have been very about, and so what one of the principal costs. heartened since September 11 to see proponents of the bill that is before the In terms of assistance to those most the President and Members of Congress Senate—and that is the Democratic affected by the current downturn, the from both parties working together in caucus bill—has failed to mention is Baucus plan provides help to those a bipartisan, bicameral fashion to craft that none of the stimulus provisions workers who have been laid off since commonsense solutions to the uncom- should be industry specific. November 14, 2001 CONGRESSIONAL RECORD — SENATE S11775 It seems that adhering to principle is There being no objection, the mate- sumers to spend and for entrepreneurs and in the eye of the beholder because the rial was ordered to be printed in the small businesses to retain and create more bill that came out of the Finance Com- RECORD, as follows: jobs; Giving relief to low and moderate income mittee and is before us now as modified EXECUTIVE OFFICE OF THE is laden with industry-specific provi- workers to put more money back in their PRESIDENT, pickets; sions, contrary to one of the principles OFFICE OF MANAGEMENT AND BUDGET, Providing partial expensing to encourage that has been talked about in the stim- Washington, DC, November 14, 2001. businesses to invest and make new pur- ulus package that is agreed to. Statement of Administration Policy chases; and We have specific measures in this bill H.R. 3090—Economic Recovery and Assist- Eliminating the corporate alternative min- before us targeted to Amtrak, to broad ance for American Workers Act of 2001 imum tax, which, if unchecked, imposes job- The Administration opposes passage of killing higher taxes during an economic band, as well as specific agricultural H.R. 3090 as reported by the Senate Finance crops and even bison, if one can believe downturn. Committee. The Administration believes The President has also called for swift ac- it. We have an incredible expansion of that it is crucial for Congress to quickly pass the work opportunity tax credit. I have tion to help dislocated workers, through ex- a stimulus bill that will help get the econ- tensions of unemployment benefits and supported this tax credit which was omy going again following the terrorist at- health care assistance programs that can be meant to help welfare recipients find tacks of September 11th. This bill in its implemented without delay. work, but in the Finance Committee present form will not accomplish this goal. Unlike the version of H.R. 3090 reported by Instead of providing broad-based tax relief bill before us this credit has been gro- the Senate Finance Committee, the Presi- to restore economic growth, this bill is an tesquely distorted to give this tax cred- dent’s framework would boost the economy, assembly of provisions that do not provide help displaced workers get back to work it to companies in New York invest- immediate economic stimulus and are not quickly, and create several hundred thou- ment firms and banks who hire mil- appropriate to this bill. For instance, $5 bil- sand more jobs. Accordingly, the Adminis- lionaire stockbrokers and lawyers. lion is set aside for agricultural programs, tration urges the Senate to reject the Fi- Can you believe that? Tax credits for including payments for bison meat, and more nance Committee approach and instead to millionaires; that is what the Demo- than $4 billion is directed to tax credit bonds work in a bipartisan manner to craft an eco- for Amtrak. crat bill stands for. nomic stimulus package that reflects the Furthermore, some of the proposals in H.R. Another principle Democrats have President’s principles and encompasses pro- 3090 as reported by the Senate Finance Com- emphasized is these measures should be visions that will provide an immediate and mittee would require at least six months to temporary, and they insist any tax effective stimulus to the Nation’s economy. measures cannot be more than 1 year one year to take effect due to their unprece- dented nature, the need for new Federal reg- PAY-AS-YOU-GO SCORING long, but we have all kinds of spending ulations, and the requirement for new health Any law that would reduce receipts or in- measures in this mix that will have insurance authorizations from State legisla- crease direct spending is subject to the pay- long-term impact. We also have a bond tures. Proposals that effectively start next as-you-go requirements of the Balanced provision in the Democrat plan that summer and purportedly end next winter Budget and Emergency Deficit Control Act. the taxpayers will be paying for not 1 will neither provide immediate assistance Accordingly, H.R. 3090, or any substitute year but over 30 years. If that does not for displaced workers nor rapid stimulus for amendment in lieu thereof that would reduce establish a double standard, I do not the economy. Indeed, economic growth could revenues or increase direct spending, will be know what does. suffer substantially as a result of these pro- subject to the pay-as-you-go requirements. We have a Washington Post editorial visions. In contrast to the President’s pro- OMB’s scoring estimates are under develop- that is on a chart behind me. I am not posal to give prompt aid to displaced work- ment. The Administration will work with ers and provide broad-based tax relief that Congress to ensure that any unintended se- going to go into detail about reading will speed their reemployment, this bill’s un- quester of spending does not occur under cur- the whole article, but the headline is precedented expansion of unemployment in- rent law or the enactment of any other pro- ‘‘Meet Patriotic Pork.’’ The editorial surance and the new health care entitle- posals that meet the President’s objectives. argues that Members are cloaking ments would likely increase unemployment Mr. GRASSLEY. Madam President, their underlying agenda under the by hundreds of thousands of workers next this so called stimulus package in- name of patriotism and in the fight year. These provisions have one feature in com- cludes a lot of money for agriculture. against terrorism. The editorial criti- Since I am the only working family cizes the House bill, which I also agree mon however: each is likely to permanently expand the size and scope of the Federal gov- farmer in the Senate, I think it’s im- goes too far, but the editorial goes on ernment and its control over programs, such portant that I point out the biggest to say that ‘‘the Senators who larded as unemployment insurance, that have al- problems with the agriculture spending this bill in committee ought to be ways been under State purview. we are considering. ashamed of themselves.’’ The Administration also notes that the The first problem that I see involves Madam President, that kind of says proposed expansion of the work opportunity the section on commodity purchases. it in a nutshell. My objective is to tax credit is duplicative since the Adminis- work to make this bill a product of tration has decided it will direct $700 million This section has been described by the which we will not be ashamed; we will in Community Development Block Grant chairman as a list of agriculture com- have a product of which neither Demo- (CDBG) funds to New York to aid businesses modities which have experienced low affected by the terrorist attacks. The Ad- prices in the 2000 or 2001 crop year. Due crats nor Republicans will be ashamed. ministration’s decision was the result of con- I know we will have a product of which to what has been described as an ‘‘eco- sultations with both New York State and nomic shortfall’’ experienced by these the chairman of the committee, Sen- city officials. ator BAUCUS, will not be ashamed. And The Administration is opposed to efforts to commodities the chairman would like I will be for it. attach additional discretionary spending to to institute a short-term purchase pro- We need to get that process going. the bill. The Administration and Congress gram. We need to do whatever it takes to agreed to limit discretionary spending to In the past, when I sat on the Agri- make sure this bill will accomplish our $686 billion and to provide $40 billion for the culture Committee, we did provide goals, then, of helping the economy emergency response to the terrorist attacks. short-term relief for specific commod- These funds are more than adequate to meet and the American people. Right now, it ities. But before we provided that relief foreseeable needs. This agreement should be and spent tax dollars we justified that is obvious it does neither and our coun- upheld. try deserves better. So this partisan, The Administration urges the Senate to spending by reviewing economic data pork-ridden, lobbyist-written bill needs work together across party lines to pass a re- which defined the problems specific to be stopped, and we will stop it. Once sponsible economic stimulus package that commodities were experiencing. this happens, then as things go in the will provide an immediate boost to the econ- I know that the Agriculture Sub- Senate, reasonable heads will prevail, omy. The President believes that the best committee on Appropriations has also and we can sit down and work out a bi- way to retain and create jobs is through tax worked on similar assistance packages, partisan compromise that meets the relief that improves incentives to work and and I would bet my farm on the fact invest while restoring consumer and business that they also justify the cost by re- greatest needs of the Senators and we confidence. The President has set out the fol- can vote for it. lowing four principles for achieving these viewing the loss. I ask unanimous consent to have goals: My point is that if we are going to printed in the RECORD a statement of Accelerating marginal income tax rate re- spend hundreds of millions of dollars position of administration policy. ductions to provide more money for con- on these commodities, doesn’t the S11776 CONGRESSIONAL RECORD — SENATE November 14, 2001 other side need to at least show us the The message we will be sending is, My final point is that if this amend- data that led them to include these ‘‘there is no need to take care of your ment had been successful we would commodities? I am the ranking mem- own risk, Uncle Sam will help you have been asking a mission area of ber on the committee, and I have not cover your losses. And in turn you pun- USDA to engage in the single largest heard from one farmer in America that ish the family farmers who bought in- expansion of any mission in years, and this is needed. Let us start this discus- surance to manage their own risk. to do so without an undersecretary. sion as any committee with jurisdic- I know that under this program there In summary, the Senate Agriculture tion over this issue would. Show us the is a small premium for producers who Committee seems to be unable to man- average price of these commodities and carry insurance, but this program does age its own business so I guess it is try- what percentage of loss they have expe- not allow more than the worth of the ing to ‘‘pass the buck’’ to the Finance rienced. At least show us when and crop. So, if the farmer has insurance Committee. These are not light-heart- where the loss occurred. that covers his loss, he does not get ed issues and the impact of these provi- While we are talking about where, much out of this program. sions will affect both short and long where are these commodities located? It looks like to me we are ques- term policy considerations and prece- Specifically, which regions of the coun- tioning the policy established in the dents. try benefit from this section. We would crop insurance law that the majority of Madam President, I’d like to take a have asked this question in the Agri- us supported. Isn’t this really a ques- few minutes to respond to remarks culture Committee, why is no one ask- tion that should be debated at length? made earlier today by our distin- ing it now? Where are these commod- Shouldn’t the long-term ramifications guished majority leader. The majority ities being produced? of this decision at least be considered? leader criticized three of the four pro- For instance, where is the majority How do we tell farmers to follow the posals in the Senate Republican Cau- of bison slaughtered? I did a little re- direction established in the crop insur- cus’ stimulus proposal. search and found that one cooperative ance law and manage their own risk by The three proposals the majority in North Dakota processes over 60 per- purchasing affordable insurance tools leader criticized are: one, the accelera- cent of America’s bison meat. In fact, while we are rewarding those that have tion of the marginal tax rate cuts from this facility, is the world’s first proc- chosen to save their money and take the bipartisan tax relief package en- essing plant devoted exclusively to on more risk by not purchasing crop acted earlier this year; two, the repeal bison meat. insurance? of the corporate alternative minimum I am not trying to tell everyone that If the Finance Committee is now the tax; and three, the 30 percent bonus de- there might not be a need for us to pur- committee of jurisdiction for crop in- preciation. I would like to address his general chase bison meat. Who knows, maybe surance, I think these questions should criticisms of the proposals. Senator the Senators from North Dakota can be addressed. DASCHLE made the following points: show us that there is a real need for The third point I want to bring up is one, the proposals were the same old bison to receive some sort of assist- the $3 billion to clear the ‘‘backlog’’ of ‘‘leftover’’ tax cut proposals; two, that ance. But, under this bill, even billion- Rural Development loan and grant ap- Senate Republicans were using the aires who dabble in bison ranching will plications at USDA. I realize that this September 11 events to push ‘‘ideolog- get taxpayer assistance. is now being deleted from the chair- ical’’ measures; and three, that these What I am trying to demonstrate is man’s bill, but the Senate was sub- proposals had been ‘‘unanimously’’ re- that this isn’t the committee of juris- jected to this awful policy during the jected by economists, editors, gov- diction for USDA programs and if the markup and up until today, so I think ernors, and others. Democrats want to give the Finance it is worth mentioning. I will respond to these general criti- Committee jurisdiction over USDA be- When I read that provision for the cisms one by one. cause the Agriculture Committee can- first time my first though was, ‘‘How On the first one, the ‘‘leftover’’ argu- not handle its own workload, we should important is it to clear the backlog at ment, I would like to point out that, review this as the Agriculture Com- Rural Development quickly?’’ with the exception of the marginal rate mittee should, or as any committee The reason I ask this question is due acceleration, none of these proposals should review an issue before spending to the fact that the legislation required were included in any tax cut bill con- American tax dollars. funds be made available only after the sidered by the House or Senate for this The second problem I see is the re-es- next fiscal year 2002 Ag. Appropriation year or last year for that matter. As a tablishment of the Natural Disaster funds had been exhausted. matter of fact, bonus depreciation has Program. Under this program, pro- Don’t we usually provide enough not been on the table for nearly a dec- ducers are compensated if their crop funds based on the need and ability of ade. These proposals arose subsequent losses are more than 35 percent of his- USDA to process the applications dur- to September 11 as a response to the toric yields. We enacted this program ing the next fiscal year? major economic problem of declining last year to help farmers deal while we Under the chairman’s proposal, we business investment. So let us not were getting the Agriculture Risk Pro- would have had to first spend the fiscal characterize these proposals as left- tection Act up to speed. For those of year 2002 allocation before we used this overs. you who do not remember, the Agri- new money. How many new jobs would Let us go to the ‘‘ideological’’ point. culture Risk Protection Act was the this money have created in six months? Again, with the exception of the mar- crop insurance bill we spent $8 billion Not many if we didn’t run out of fiscal ginal rate acceleration, these proposals taxpayer dollars on to avoid this spe- year 2002 funds until August or Sep- were not Republican agenda items. I cific scenario. tember. ask: Does anyone recall signs at the Congress allocated $8 billion dedi- It is sad that the press had to inform Republican Convention with ‘‘bonus de- cated to getting the government out of the other side how poor this idea was preciation’’ or corporate AMT relief? the disaster business by making crop instead of the Republicans and Demo- This charge was coupled with an alle- insurance more affordable. The chair- crats working together because I guar- gation that Republican Senators were man would lilke to reinstitute a pro- antee you, if anyone on the Democratic using the events of September 11 to ad- gram that compensates producers if side of the aisle had asked me I would vance these so-called ideological pro- their yields fall off. Sounds a lot like have pointed this out immediately. posals. Of course, these proposals were crop insurance to me. This was terrible policy. specifically designed to respond to the Why are we tyring to provide pay- Just to let everyone know, I con- economic downturn. Indeed, in a ges- ments to producers who have chosen tacted USDA about the provision the ture of bipartisanship that has not not to buy insurance? I can see why we Democrats pulled and they told me been reciprocated, Republicans, led by did this in the past, but now that the that if those funds had been made the President, put on the table a pro- law is in place the U.S. government is available USDA would have needed an posal that certainly cannot be called a subsiding the cost of insurance on extra $100 million in salaries and ex- Republican priority, a supplemental re- wheat at about 55 percent for the fam- penses to get all of the possible loans bate. In another gesture of bipartisan- ily farmer. and grants out the door within a year. ship, again with no reciprocation by November 14, 2001 CONGRESSIONAL RECORD — SENATE S11777 the Democratic Leadership, Repub- There being no objection, the mate- the end of the third quarter, productivity in- licans, led by President Bush, took off rial was ordered to be printed in the creased by more than two percentage points. the table, an arguably stimulative pro- RECORD, as follows: As economic data watching goes, that re- markable observation is as good as it gets. posal, capital gains tax cuts. [From the Asian Wall Street Journal, Nov. 7, Historically, productivity has almost al- Actions speak louder than words. 2001] ways declined sharply just before a recession I agree with one part of the majority A SILVER LINING and softened further during a recession. This leader’s statement. That is, neither (By Kevin A. Hassett) ‘‘procyclical productivity’’ pattern is so reli- side should use the events of Sep- The U.S. Federal Reserve’s 50-basis-point able that an entire literature exists explor- tember 11 to advance ideological objec- rate cut Tuesday came in response to a flur- ing its cause. The current consensus appears to be that productivity drops near recessions tives. ry of extremely negative economic reports and increasingly widespread pessimism because firms are reluctant to lay off idle I have pointed out two significant ex- about the American economy. As the federal workers when demand shrinks, and the pro- amples of Republicans acting in anti- funds rate nears zero, many observers believe portion of workers that are not productive ideological manner. Where in the that there is little room for further signifi- increases sharply. Perhaps that describes the Democratic caucus proposal, or Demo- cant interest rate reductions. With the econ- past, but it has not happened this time. cratic leadership’s actions, have we omy still declining and the Fed out of am- High-tech investments have allowed firms to seen similar anti-ideological behavior? munition, additional government stimulus adjust on the fly and continue to squeeze must now be of the fiscal variety. more output out of fewer inputs. Indeed, it appears that the events of Corporate tax cuts are a natural fiscal In February, Fed Chairman Alan Green- September 11 are being used as another stimulus candidate. The corporate sector has span marveled at the strong productivity ‘‘salami slice’’ tactic to get to a Demo- dropped the sharpest this year, and business numbers posted in late 2000 when the econ- cratic ideological objective. That ob- investment has historically responded im- omy was softening. The increase was, he re- jective is a Government-run universal pressively to tax cuts. Yet U.S. Senate marked in a Senate Banking Committee health care system. Just take a look at Democrats have staunchly opposed Repub- hearing, ‘‘at a pace sufficiently impressive to the new COBRA entitlement, labeled as lican efforts to provide corporate tax relief. provide strong support for the view that the rate of growth of structural productivity re- temporary here. ‘‘I’m not even enamored any longer with the word stimulus,’’ said Senate Majority Leader mains well above its pace of a decade ago.’’ Now, I would like to address the ma- Tom Daschle last week, preferring instead to It’s important to note that this high rate of jority leader’s third general criticism. launch a giant government spending spree. productivity has continued over the past few That criticism is that economists and Such measures reflect the emerging Demo- quarters, even as the economy has softened. editors have unanimously rejected the cratic view that the ‘‘Bush economy’’ is Why is this so important? If productivity Senate Republican caucus stimulus nearing depression, and only a New Deal can were declining, then firms would be faced proposal. save it. with many more painful decisions in coming But if you look closely, things aren’t that months. Capital investments that were in- I guess if you only include some bad. Marginal tax-rate cuts might well have tended to improve the bottom line would economists that have served in Demo- difficulty stimulating business activity if have failed. Should plants then be closed? As cratic administrations or some editors there is significant excess capacity. But the it is, it looks like the inventory and invest- that identify themselves with the data don’t support such a negative view. In- ment corrections that occurred in the 12 Democratic agenda, then I would agree deed, despite rumors to the contrary, the months before Sept. 11 had achieved their de- with the majority leader. For instance, American economy was most likely not in a sired effects. The ‘‘overhangs’’ that presage much is made of Joseph Stiglitz’s criti- recession on Sept. 10. The monetary and fis- sharp economic disruptions were not appar- cisms. There is a lot of talk about his cal stimulus adopted earlier in the year ap- ent in the data, and a healthy response to pears to have done its job quite well. marginal tax-rate reductions is quite plau- Nobel Prize, but you do not hear that That positive news emerged last week sible. he chaired the Council of Economic Ad- when the U.S. Commerce Department re- But, of course, other factors are present. visors in the Clinton Administration. I ported that the gross domestic product de- And they help to explain why, despite the guarantee there are Nobel Prize win- clined 0.4 percent in the third quarter. Nega- good news, economic activity has dropped so ners who worked in Republican admin- tive GDP growth is a strong sign of a reces- sharply. istrations who would not agree with sion, but analysis of the background data After years of highly mathematical re- suggests that the number would have been search in dusty journals, many economists Joseph Stiglitz. In fact, they would now believe that the root cause lies in the have problems with the Democratic comfortably positive absent the attack. First, before the attack, chain-store sales in- distinction between risk and ambiguity that package. dicated that consumer spending in Sep- was first described by University of Chicago As an example of the diversity of tember was at about the same healthy level economist Frank Knight in the 1920s. Knight opinion, you only have to review the posted in August. Second, border closings argued that there is a difference between a statements of Glen Hubbard, the cur- created turmoil in the auto sector, where circumstance with known probabilities—like rent chair of the President’s Council of just-in-time inventory techniques led to sig- a coin flip—and a situation with high ambi- guity, where the probabilities of different Economic Advisors. nificant production interruptions. It is a simple adding-up exercise to correct outcomes are not known. Subsequently, re- The charge that economists have for these two factors, and doing so leads to a searchers have confirmed Knight’s observa- ‘‘unanimously’’ rejected the Senate Re- surprising conclusion. If September con- tion both in theory and with observation. publican caucus stimulus package is sumption had continued at the pace reg- There are profound differences in behavior not borne out by the facts. istered at the start of the month and auto when people face the two different types of With respect to the charge that edi- production had not jammed up, the economy uncertainty. Most important, when ambi- tors and opinion writers have ‘’unani- would have dodged recession in the third guity is high, consumers and firms often act as if the worst possible outcome will occur mously’’ rejected, I would like to print quarter. GDP would have been more than a percentage point higher—safely nestled in for sure. Thus, after the terrorists attacked, in the RECORD a couple of articles. One positive territory. the U.S. entered an ambiguous world with is an article by Kevin Hassett, who was Although that did not happen, it does put many horrible possibilities and no prob- a witness before the Senate Budget to rest the view that the terrorist attacks abilities. Predictably, businesses and con- Committee. Another is an article from pushed an already devastated Bush economy sumers assumed that a deep recession would National Review. These are only two of into a steep downward spiral. The economy occur with certainty. Their extremely cau- many articles that show that there is was doing better than expected, and this was tious response to the assumption helped support for elements of the Republican likely because of well-timed economic pol- make the recession more likely. icy. Consumer spending has been particu- So the core fundamentals of the economy causus position. In addition, even the larly strong in interest-sensitive sectors. remain surprisingly strong. If there is a re- Governors’ letter cited by the majority Another bit of positive news lurking in the cession, it will have been caused by the ter- leader does not reject the Senate Re- third-quarter data confirms the view that rorist attacks. Therein lies both the hope publican caucus stimulus package. I business tax cuts in particular could be effec- and the challenge to policy makers. Absent a also ask unanimous consent to print in tive now. The government data available do rapid and clearly visible victory in the war the RECORD an editorial from the Wash- not explicitly report third-quarter produc- on terrorism, consumers and firms will only ington Post, that is highly critical of tivity, but it is possible to figure this out by gradually return to normal, and a long and deep recession is possible. Yet the underlying the Finance Committee’s stimulus bill, using techniques that are also relied upon by Fed economists (and undoubtedly reported to strengths suggest that there is ample oppor- by pointing out that high-priced lobby- board members Tuesday). tunity, and that corporate tax cuts could ig- ists help put the Democratic bill to- These calculations are striking. Even with nite further productivity enhancing invest- gether. the sharp declines in output that occurred at ments. The stimulus bill that passed the U.S. S11778 CONGRESSIONAL RECORD — SENATE November 14, 2001 House of Representatives took a step in that changing their consumer patterns in re- the Senate. Meanwhile, other lobbyists have direction. It’s time that the Senate stop sponse to changes in technology. When pressed for equally egregious giveaways. The bickering and do the House one better. households reduce their spending on con- stimulus bill that passed through committee sumer goods, opting instead to pay down last week includes money for citrus growers [From the NRO Financial, Nov. 8, 2001] debt or accumulate savings, they aren’t fail- and buffalo farmers and producing elec- THE NEW DANCE OF THE CRACKPOTS ing to buy ‘‘enough’’ stuff to keep the econ- tricity from chicken waste. It includes a tax (By John Hood) omy afloat. They are simply changing their break on aviation fuel for crop-dusters. A preferences in favor of future consumption wage credit designed to encourage firms to In this indispensable guide to the New (perhaps of more expensive, more capital-in- hire welfare recipients has been extended to Deal, The Roosevelt Myth, journalist John tensive durable goods) and away from some businesses in lower Manhattan that hire T. Flynn wrote about the pivotal couple of goods currently being produced. anyone. years leading up to the 1936 presidential elec- Contrary to the crackpot theories of As it fights a war on terrorism, the United tion. Roosevelt’s early efforts had failed to Rubin, Alter, New York Times columnist States also faces the threat of a global reces- bring the country out of depression, and so a Paul Krugman, and other neo-Keynesians, sion that could be the worst in years. Thou- bewildering array of left-wing politicians recessions don’t signify ‘‘too much supply sands of ordinary workers have already lost and journalists offered their own strategies and not enough demand.’’ Recessions aren’t their jobs, and many thousands more may do for getting the economy moving again. It creatures of human irrationality. They sig- so. The economic stimulus will succeed only was, in Flynn’s picturesque words, ‘‘The nify a mismatch between what companies if it pumps money into the bits of the econ- Dance of the Crackpots.’’ are making and what their customer actu- omy where it will stimulate demand effec- Its main result was to shove FDR further ally want at the time. Moreover, they often tively. That means targeting it at business to the left. His administration created new signify a mismatch of time preferences, as investment and at less well-off consumers, credit and spending programs to steal the consumers signal (through more savings) not tossing cash at random supplicants. thunder of Huey Long and other radicals, that they are willing to finance new invest- The senators who larded the bill in com- and to induce an artificial inflationary spurt ment today in order to buy something they mittee ought to feel ashamed of themselves, in activity just before the election—a win- value more in the future. As long as capital but they’re not the only ones. It seems to us ning political strategy that nonetheless re- markets are free to coordinate the interests that lobbyists such as Mr. Kies and clients sulted in another painful recession in 1937– of producers and consumers, the latter’s in- such as General Electric and IBM also bear ’38. creased savings will increase the pool of some responsibility. Normally in Wash- As American battles international ter- loanable funds and thus encourage entre- ington we assume that such corporations rorism and a slowing economy, we are now preneurs (with lower interest rates) to pur- will grasp for whatever they can get; it’s up witnessing a new Dance of the Crackpots. sue new investments to satisfy consumer de- to those in Congress to resist their more Denigrating President Bush’s $1.3 trillion tax mands. egregious graspings. But do the chairmen of cut enacted by Congress earlier this year, In other words, it is perfectly rational in a GE and IBM really want to pursue their nar- critics are coming out of the woodwork to time of recession for the government to row self-interest at a time when everyone offer increasingly silly and outdated pro- focus its fiscal policy on removing barriers else is being asked to think of the common posals to ‘‘stimulate demand’’ and ‘‘escape to investment. These barriers include large good—at a time of war? Imagine the stir it the liquidity trap.’’ While draped in New inflationary or deflationary changes in would cause, and the impact it could have, if Economy language, these ideas are basically money (because these destroy the ability of just one of them said, ‘‘Better spend the the same old Keynesian claptrap that the interest rates to communicate time pref- money on the troops. We’ll be back when the crackpots of the 1930s indulged in—although, erences accurately to entrepreneurs) and ex- war is over.’’ It’s not too late for them to unlike present-day advocates, the 1930s cessive taxes on investment activities. The show what patriotism might really mean. crackpots had the excuse that most of their U.S. tax code retains a strong and counter- pet ideas had yet to be proven false through Mr. GRASSLEY. Madam President, productive bias against savings and invest- experience. let us be accurate when we describe ment, so proposals to accelerate deprecia- On prominent exponent of the new (old) tion, reduce marginal tax rates on capital each side’s proposals. Upon careful con- philosophy is Robert Rubin, Clinton’s former gains, and reduce double-taxation of cor- sideration, it is clear: Treasury Secretary. Advising the Congress porate dividends are exactly the right medi- First, the Senate Republican Caucus on how to fashion a ‘‘bipartisan’’ stimulus cine if the goal is to speed the recovery of package, Rubin recommended a focus on stimulus proposal is not made up of the American economy. spending programs and tax credits directed ‘‘leftover’’ tax cuts; The answer to ‘‘excess capacity’’ in buggy- to poor Americans. ‘‘People at the bottom of Second, the Senate Republicans are whip manufacturing was not for the govern- the income scale spend all the money they not using September 11 as a device to ment to stimulate demand for buggy whips. earn,’’ he reportedly told congressional lead- It was to allow industry to make needed in- advance ‘‘ideological’’ proposals; and ers. ‘‘If you give it to them, they’re going to vestments in automobile production. Simi- Third, the proposals in the Senate spend it. If you give it to me, it’s not going larly, American consumers are signaling Republican Caucus stimulus package to affect my spending patterns.’’ that the current mix of investment is not have not been ‘‘unanimously’’ rejected Newsweek columnist Jonathan Alter made generating what they want. So financial, a similar point in a column criticizing sup- by economists, editors, and opinion physical, and human capital must be redi- ply-side tax cuts suggested by House Major- makers. rected to new uses. This necessary adjust- ity Leader Dick Armey of Texas. Armey Madam President, I wish to discuss ment will happen more rapidly, and more ‘‘claims to be an economist,’’ Alter sneered. what I consider to be a crucial compo- successfully, if Washington will ignore the ‘‘But he obviously never learned about a lit- nent of this economic stimulus pack- new Dance of the Crackpots and gets its fis- tle concept familiar to every college fresh- cal act together. age: health insurance assistance for men called ‘supply and demand.’ Our sup- dislocated workers. ply—or capacity—is just fine right now; in [From The Washington Post, Nov. 13, 2001] We all know about the high cost of fact, we’ve got too much of it. The problem is consumer demand. It’s dangerously flat.’’ MEET PATRIOTIC PORK health insurance. For dislocated work- According to Rubin and his journalistic In normal times, pork-barrel spending is ers, its even higher. That’s because echo chamber, government stimulus is need- offensive. When the nation is at war, it’s worker continuation or ‘‘COBRA’’ cov- ed because Americans aren’t spending considerably worse. But the patriotism felt erage is extremely expensive: coverage enough. This statement is absurd. To say by most citizens since the terrorist attacks for a family can cost as much as $500 or that Americans aren’t spending ‘‘enough’’ is has done nothing to restrain lobbyists’ habit $600 per month. to presuppose that there is some level of of putting special interests ahead of national And workers who do not qualify for spending that is correct, and that govern- interests. Indeed, some apparently can’t tell COBRA coverage—because they worked ment officials can know such a level. Fur- the difference. Kenneth Kies of thermore, such a singular focus on broad ab- PricewaterhouseCoopers, who has been push- for State or local governments or in stractions like ‘‘supply’’ and ‘‘demand’’ ing tax breaks that would profit clients such small businesses that are exempt—also leaves these hapless pump-primers without a as GE and IBM Corp., told The Post it would face high health care costs. connection to the real economy of individual have been ‘‘irresponsible’’ and even unpatri- So when it comes to providing health goods and services exchanged by individual otic for him to behave otherwise. insurance assistance to dislocated human beings. The provision that Mr. Kies advances workers, both sides in this debate are It is simply nonsensical to talk about the would reduce taxes on corporations’ overseas in agreement: People need help, and economy in only aggregate terms. For exam- investment income. It’s hard to see how this they need it now. ple, there was a great deal of excess capacity measure, which would encourage firms to in America’s buggy-whip manufacturing sec- keep money outside the country, would do Where we disagree is on how we get tor in the early 20th century. Was that a sign anything to stimulate the American econ- there. I have endorsed a program that of inadequate consumer spending? Of course omy. Yet, Mr. Kies has sought to include it is already up and running, that has not. It was a sign that Americans were in the stimulus package being prepared in been tried and tested and tailored for November 14, 2001 CONGRESSIONAL RECORD — SENATE S11779 the very purpose of providing ready The National Emergency Grant pro- stated that any proposal, including a help—not red tape—in emergencies like gram can guarantee payments to Medicaid expansion, that requires this. States within 15 days of an applica- State funding would have ‘‘zero take- The Democrats, on the other hand, tion’s approval. That speed is simply up.’’ have endorsed the creation of a new unsurpassed, and it’s the chief reason I Aside from the budget constraints Federal bureaucracy, consumed by red support using the grant program today. that prevent a Medicaid expansion tape, that would take many months to The new Federal subsidy program, by from being a viable health care pro- get up and running. contrast, would tie up funds in red tape posal for dislocated workers, Medicaid First, let’s talk about structure. For until next summer. Under almost any expansions are not a timely response to any program to work efficiently, it scenario, financial assistance would addressing emergencies. needs a backbone. The National Emer- not be available until federal regula- In order to develop a new Medicaid gency Grant program has been in place tions are issued, finalized and made ef- eligibility category, States would have since 1998. The Labor Department has fective, a process that could take 6 to develop a State plan amendment. been getting funds to States quickly months, at a minimum. This entails a planning period that in- and seamlessly for several years. The bottom line is the Democrats’ cludes: setting income levels and time In fact, since September 11th, 3 proposal would not be able to get bene- frames; creating outreach materials States have already received funds to- fits to workers until it’s too late. In and caseworker training; and obtaining taling $37 million, 3 more States are on addition to a lengthy process at the approval from the legislature—assum- the verge of approval, and 13 additional Federal level, States are faced with ing the legislature is still in session State applications are expected. Clear- undue burdens of setting up new sys- and many aren’t—and finally, getting ly these numbers indicate the success tems to coordinate with the Federal approval from CMS. the National Emergency Grant pro- Government and finding new resources By the time this process runs its gram has already achieved. to do so. course, the 12 month window would By comparison, the new COBRA sub- The Democratic approach, while likely be over. Even if the 12 month pe- sidy program that the Democrats favor well-intentioned, reinvents the wheel. riod isn’t over, it wouldn’t be an imme- has no backbone at all. There is no The National Emergency Grant pro- diate benefit either to health coverage structure currently in place at the gram, by comparison, needs no re-in- or as a fiscal stimulus. Labor Department or any other Fed- vention. It is ready to go. A more immediate and expeditious And so I urge my colleagues to opt eral agency to administer this new ben- approach to making health care cov- for a system that’s ready to go and to erage available to displaced workers efit. Next, let’s take a look at process. support the speedy delivery of funds to would be through the National Emer- At the Federal level, the National our dislocated workers through the Na- gency Grant program. This program should be expanded to Emergency Grant program requires tional Emergency Grant program. Mr. GRASSLEY. Madam President, I allow States the opportunity to cover nothing more than a new set of grant also wish to discuss a Medicaid provi- health care premiums, including criteria allowing States to use funds sion in the Democrats’ economic stim- COBRA premiums, for displaced work- for health insurance. The criteria is ulus package that would provide for an ers and their dependents. being drafted under the Labor Depart- expansion of the Medicaid program to a The National Conference of State ment’s existing authority, and can be new group of individuals. Legislatures agrees that flexible Fed- made effective immediately. In order to fully evaluate the poten- eral funds would be the best approach In contrast, the new COBRA subsidy tial effectiveness of this proposal, it is to empowering States to effectively ad- program proposed by the Democrats re- important to take a look at State fis- dress State-specific needs of dislocated quires the deployment of an entirely cal health. workers. new Federal program, requiring Con- The economic slow-down coupled There are a number of ways that gressional authorization and a formal with increased demands on health care States could use National Emergency regulatory process under the Adminis- safety net programs is creating major Grant funds to provide immediate trative Procedures Act before any ben- strains on State budgets. health care access to dislocated work- efits could be delivered. Just this year, 44 States have reve- ers and their families including using Moreover, communications and over- nues below original forecasts; 28 States State employee health systems to un- sight mechanisms would have to be es- have implemented or considered Med- employed individuals, utilizing com- tablished, and agencies would have to icaid cuts; 7 States have convened spe- munity health centers, or contracting redirect resources to meet program cial legislative sessions to address with insurers. goals. budget shortfalls; and 11 States have The National Emergency Grant pro- At the State level, the National determined a need for supplemental ap- gram requires nothing more than a new Emergency Grant program is familiar propriations for Medicaid. set of grant criteria allowing States to to governors and other State officials. Today, Medicaid expenditures are 7.5 use funds for health insurance. The The program relies on an existing, percent higher than they were in 1999, NEG proposal is an expedient means of streamlined process that has been in and on average account for 19.5 percent making health coverage available to place since 1998. All States have mech- of State spending. Therefore, Medicaid dislocated workers and their families. anisms in place to apply for grants and is a primary target for State budget Mr. AKAKA. Madam President, I rise deliver benefits. cutbacks during economic downturns. in support of the economic stimulus By comparison, the Democrat-en- States have reported a current cumu- package reported by the Committee on dorsed new Federal subsidy program lative revenue shortfall of $10 billion, Finance. would impose new and costly mandates and predict this number to continue to Following the terrorist attacks on on States, which would have to author- grow. Moreover, new and unprece- September 11, the slowdown in our Na- ize and set-up new systems and depart- dented State responsibilities for home- tion’s economy has been a matter of in- ments to comply with the program’s land security are exacerbating serious creasing concern. The ripple effect of rules before workers could start receiv- fiscal conditions. the tragic events on September 11 has ing benefits. In many instances, action Therefore, any new State Medicaid affected millions of Americans who are at the State level would be frozen until option, no matter how generous the dealing with the economic repercus- State legislatures acted to authorize Federal match, is not an attractive sions. Hundreds of thousands of work- and fund the new mandates. proposal to States. ers have lost their jobs, and consumer Finally, let’s address the most impor- States simply do not have the re- and business confidence has eroded dur- tant question, the one that this whole sources to take up a new option under ing this time of uncertainty. The de- debate should turn on. the Medicaid program because States crease in economic activity is affecting How long will this all take? How do cannot absorb the State share of new companies ranging from small busi- the two approaches compare when it Medicaid enrollees. nesses to corporations, not to mention comes to getting workers health care In fact, a spokesperson for the Na- entire industries such as the airline assistance quickly? tional Governor’s Association recently and tourism industries. S11780 CONGRESSIONAL RECORD — SENATE November 14, 2001 There is no doubt that an economic While the subsidy for COBRA will ing the Federal matching rate could stimulus package would help to boost help a number of Americans, many of have broad positive ramifications for our Nation’s weak economy. While the the workers who will lose their jobs in State budgets, the impact of which prospects for long-term growth remain the coming year will not be eligible for would be rapid and would not require strong, the terrorist attacks exacer- COBRA coverage. These workers face additional Federal or State bureauc- bated weaknesses in many business an even greater barrier to health care racy. These changes would provide sectors and diminished hopes for a access and include individuals who much needed health care to people in quick revival of an already faltering worked for small businesses, were in need by providing states the resources economy and it now appears that the the individual health insurance mar- to do so. country will experience a period of eco- ket, worked in companies that have While Congress has taken certain ac- nomic weakness and rising unemploy- gone bankrupt, and those who could tions to address the aftershocks of the ment before returning to a period of not afford health insurance before they terrorist attacks, we must also restore strong growth. A stimulus package were laid off. The bill by the Senator consumer confidence which has stead- that is well-defined and specifically from Montana would help these work- ily declined since the attacks. In Ha- targeted for maximum effectiveness ers who are not COBRA-eligible by giv- waii, where we were just beginning to can play an important role in pro- ing states the option to add a new eli- recover from our economic recession of moting a rapid economic recovery. gibility category to Medicaid. This new 9 years, we find ourselves once again As we all know, there are contrasting category would allow states to cover facing an economic downturn. The views among the members of Congress laid-off workers who are not COBRA-el- State Department of Labor is currently as to what components should be in- igible for up to 12 months. working on the unemployment rates cluded in a stimulus package to maxi- Another critical component of the for October 2001 and has indicated that mize the stimulative effect on the stimulus legislation is the temporary the number of people filing unemploy- economy. I believe that the economic increase in the Federal Medical Assist- ment claims will be substantially high- stimulus package should encourage in- ance Percentage, FMAP, rate for er than those filing in September. This creased spending as soon as possible to States. The Federal Government cur- is disconcerting to me because in Sep- rejuvenate the economy, assist people rently pays between 50 percent and 83 tember 2001, tourism was down by 40 who are most vulnerable during the percent of the cost of Medicaid in each percent and more than 11,000 people economic slowdown, and restore busi- state, depending on the state’s per cap- who work in the industry were unem- ness and consumer confidence. How- ita income in the three calendar years ployed. More specifically, 8,803 people ever, it is important that fiscal dis- that are most recently available. On in Hawaii filed claims for partial or cipline over the long-term be main- average, the Federal Government pays full unemployment benefits in the 15- tained in order to ensure economic 57 percent. Medicaid matching rates for day period from September 17, the growth in the future. As such, legisla- fiscal year 2002 are based on state per Monday following the attacks, to Mon- tion to stimulate the economy should capita income data from 1997, 1998, and only be on a short-term basis so that day, October 1. On that Monday, the 1999—years in which the national econ- the budget can return to surplus as the State Department of Labor estimated omy was strong. Consequently, match- economy recovers. that 1,012 workers filed claims state- Given the importance of taking ing rates are slated to be reduced for 29 wide for unemployment. Before the at- prompt action to stimulate the econ- states in 2002. The reduction in FMAP tacks, the state of Hawaii received on omy which is on the brink of a reces- rates has worsened an already bleak the average 1,400 claims a week. These sion, I commend the Senator from fiscal outlook for many states. In Au- statistics do not show what the cost Montana for his efforts in reporting an gust, the Congressional Budget Office has been to families in Hawaii where economic stimulus package out of the projected that Medicaid expenditures both parents are, or in many cases Finance Committee that can be consid- in 2002 would be nine percent higher in were, working in the travel or tourism- ered on the Senate floor. I support 2002 than in 2001, while states projected related industries. These families are components of the legislation, includ- that their revenues would rise just 2.4 finding that they do not have the ing provisions aimed at addressing the percent. Rising Medicaid expenditures money to pay for their mortgage, needs of America’s newly-unemployed have long been a serious concern to health insurance for themselves and workers. In addition to losing their states. The repercussions of the ter- their children, and basic necessities. health benefits, the unemployed have rorist attacks on September 11 are The economic stimulus legislation no income to pay out-of-pocket for leading most analysts to expect even reported by the Finance Committee their health care needs. Under the Con- higher state Medicaid costs because the will help the people of Hawaii and the solidated Omnibus Budget Reconcili- economic downturn will make more nation pay their mortgages, provide ation Act of 1985, COBRA, employers people eligible for Medicaid and lower healthcare to their children, and put with 20 or more employees must offer state revenues. It is during difficult fi- food on the table. It will provide 13 ad- continued health insurance coverage to nancial times that the Medicaid pro- ditional weeks of benefits to workers qualified employees and their families gram becomes a primary target of whose regular unemployment com- who lose health coverage when they State budget cuts. Yet, people need pensation has expired, require states to lose their jobs. Unemployed workers Medicaid during these times more than use the most recent earnings data to are required to pay up to 102 percent of ever. determine eligibility and benefits, pro- the full premium, which averages The FMAP increase proposed by the vide coverage to part-time workers, about $220 per month for an individual Finance Committee has three main and supplement the amount of benefits. and $558 per month for a family. Only components. First, States that would Some of my colleagues have argued about 20 percent of eligible workers use have received a lower FMAP rate that extending unemployment benefits their COBRA option because premiums would be ‘‘held harmless’’ and retain and providing a health care subsidy are so expensive. The bill drafted by their fiscal year 2001 matching rate. will not stimulate the economy, I must the distinguished Chairman of the Fi- Second, all States would receive a rate strongly disagree. I believe, as many of nance Committee will assist workers increase of 1.5 percent. Finally, States my colleagues have stated during this who are COBRA-eligible by providing a with higher than average unemploy- debate, that this is exactly what our 75 percent COBRA subsidy for up to ment rates over the previous three economy and the American people need twelve months. This subsidy will help months would receive an additional 1.5 to revitalize consumer confidence. As to ensure that many of the workers and percent rate increase. To receive these recent research has shown, the Unem- their families who could not previously FMAP increases, States would be re- ployment Insurance system is eight afford COBRA coverage will be able to quired to maintain current eligibility times as effective as the entire tax sys- retain their health insurance. States levels. The temporary increase in the tem in mitigating the impact of a re- would be allowed to cover the remain- FMAP is an important component of cession. In addition, the Unemploy- ing 25 percent of the COBRA premium our Nation’s economic stimulus policy. ment Insurance system is able to tar- for low-income COBRA-eligible individ- Medicaid is the largest Federal grant- get the very sector of society that uals and their families. in-aid to states. Temporarily increas- needs the most economic stimulus. I November 14, 2001 CONGRESSIONAL RECORD — SENATE S11781 remind everyone that in every reces- And there have been more emergency The PRESIDING OFFICER (Mr. DAY- sion during the past 30 years, including designations. The Los Angeles riots in TON). The assistant Republican leader. the 1990–1991 recession under President 1992 was designated an emergency. We Mr. NICKLES. Mr. President, it is George Bush, unemployment insurance provided additional dollars to help Los with regret I urge my colleagues to not benefits were extended. Angeles recover from the riots in 1992. support our friends and colleagues on It is clear that an economic stimulus The terrorist bombing in Oklahoma the other side. I will just take issue package is needed to support our econ- City—we designated that as an emer- with a few things that have been stat- omy during these uncertain times and gency to help Oklahoma City, as we ed. to promote a rapid recovery. We have should have. First, I compliment Senator GRASS- seen the Federal Reserve Board cut in- Peacekeeping in Bosnia—we des- LEY and Senator BAUCUS because they terest rates ten times this year with ignated additional dollars for our mili- worked together earlier this year in a limited economic effect. Congress has tary, our Defense Department, because bipartisan way and we passed tax re- also taken actions to provide some of that was an emergency, fighting in lief. It was done by a bipartisan vote in that stimulus through emergency Bosnia. That was designated an emer- the Finance Committee, done by a bi- spending for recovery efforts and to as- gency, as well it should have been. partisan vote in the Senate, and by and sist the airline industry. It is critical Other natural disasters, hurricanes large that bill became law. Senator that Congress promptly pass an eco- and floods. BAUCUS and others alluded to the fact nomic stimulus package that will reju- I, for the life of me, cannot under- that we have already passed emergency venate our faltering economy while as- stand this argument that we hear from legislation providing $40 billion to as- sisting households who have been espe- the other side that what has happened sist in the aftermath of the September cially hard hit by the downturn in the to this country since September 11 is 11 events. That was done in a bipar- economy. An economic stimulus pack- not an emergency, particularly in com- tisan fashion. age that promotes economic activity parison to past events that were des- When we provided airline relief, that and includes components to extend un- ignated emergencies. There is a provi- was done in a bipartisan fashion. Un- employment insurance benefits and sion in the Budget Act which says if we fortunately, the bill we have before us, health care subsidies will greatly assist go over the technical spending limits, the so-called stimulus bill, has not in getting our country’s economy mov- it has to be an emergency to avoid a been done in a bipartisan fashion. The ing again. budget point of order. That is entirely makeup of the Senate is so balanced The PRESIDING OFFICER (Mr. DAY- up to the discretion of the Senate. In that it cannot happen. Democrats can- TON). Under the previous order, the fact, the Congressional Budget Office, not pass a Democrat-only bill. The Re- Senator from Montana is recognized. in this document, says: publicans cannot pass a Republican- Mr. BAUCUS. Madam President, I Emergency spending is generally whatever only bill. So we are going to have to thank my good friend from Iowa, Sen- the Congress and the President deem it to work together. be. ator GRASSLEY, for his help on this bill. Regrettably, that has not yet hap- The choice in the vote before us, It is up to us to decide whether this pened. The result is in the bill that about to occur in 15 minutes, is very is an emergency or not. We all know passed out of the Finance Committee, simple. Do we want to proceed to help what has happened to New York City, now modified by Senator BYRD’s provide the stimulus to the American what has happened to our economy— amendment, and modified by addi- economy? Do we want to help provide 900,000 people out of work since this tional amendments made by the chair- health insurance benefits to people who spring. That is the entire population of man or the Democratic leader, we have have lost their health insurance be- my State of Montana—900,000 people a bill that not only will not stimulate cause of their lost jobs? Do we want to out of work. Most people who lose their I think but may depress the economy. provide an extension of unemployment health insurance do so because they We have a bill that is not supported by benefits? Do we want to help New York have lost their jobs. both sides. We have a bill that obvi- City, which has been wrecked and dev- This is a super-emergency compared ously will not become law. with the other events that this body astated by the tragedy of September We have a statement by the adminis- has designated emergencies. Why is 11? Do we want to give disaster assist- tration that says: ance to farmers and ranchers whose in- this not an emergency, too? Where are comes are lower year by year. we? What are we thinking of? Hello? The administration opposes passage of Do we want to do these things or not? Wake up, Senate. Wake up and see H.R. 3990 as reported by the Senate Finance Committee. That is the sole question before us. what is happening to the country. That is all it comes down to. Wake up and see what is happening in The President said he doesn’t like it. I am astounded that we hear these New York City. It is strongly opposed for lots of rea- arguments that this is not an emer- If all of us in the Senate were to go sons. That is in direct contrast to the gency. I have been in this body for 20- to Ground Zero, we would know that is bipartisan work that many of us as some years, and we have voted for an emergency. Some have and some leaders did, meeting with the President many items designated as emergencies have not. All should. several times after the September 11 that were far less of an emergency than The same occurs all across the coun- events to say let’s work together. what has happened to our country try. Homes lost, people tossed out of President Bush agreed to the $40 bil- since September 11. work, farms and ranches going down lion. We haven’t even spent the $40 bil- What were they? Let me tell you. the tubes because either they don’t lion. I am looking at the list that has First of all, the stand-alone bills we have crops, it is a disaster, a drought $15 billion of new spending. That is in have passed in this body: Unemploy- or a flood, or they are not getting their direct contradiction of the agreement ment insurance, in 1993, $5.7 billion. income. What is going on here? Of we made with the President, that we That was designated an emergency, so course it is an emergency. have in writing from the President, the we passed it. Meanwhile, we have heard, and I am agreement that said $686 billion and, IRS reform, if you can believe, $130 disappointed to have to say this, char- oh, yes, we will do $40 billion of the million—emergency. I don’t know what acterizations and mischaracterizations, emergency spending. We have not spent the emergency was, but that is what representations and misrepresenta- that $40 billion. Then they say we want Congress decided. tions, of what is in the Senate bill. another $15 billion. The airline bill this year, $17 billion Senators, some of them, have taken I do not doubt many of those provi- over 10 years. easy shots, not getting to the heart of sions requested in the $15 billion will What were some other emergencies? the matter. That is regrettable. be in the second $20 billion that is yet We have had Hurricane Andrew. We I will sum up in 10 seconds. This is to be appropriated, yet to be allocated, had floods in various States, and we clearly an emergency, and I urge Sen- in some cases yet to be requested. have designated those all as emer- ators to vote to waive the point of The administration hasn’t requested gencies, this Senate did, and they were order, stop the roadblock. Let’s roll. those. They are receiving input and re- emergencies. Let’s help America. quests from a lot of different agencies. S11782 CONGRESSIONAL RECORD — SENATE November 14, 2001 But they haven’t requested it yet. Yet and every time he was told, no, we The PRESIDING OFFICER. Are there we are trying to say that is the deal can’t do that because we have to offer any other Senators in the Chamber de- from last month. Now we are coming our own package. siring to vote? up with a new deal. Last year’s spend- Don’t talk to us about bipartisan The yeas and nays resulted—yeas 51, ing grew by over 14 percent. This year, until you are ready to do it. nays 47, as follows: we are going to spend about 8 percent. I must say this is a facade—this no- [Rollcall Vote No. 337 Leg.] Now we have added $40 billion. Some tion that somehow the only way to YEAS—51 deal with whatever concerns the Sen- people say, let us add $15 billion on top Akaka Dodd Levin of it. We may well support those at- ator from Oklahoma may have with re- Baucus Dorgan Lieberman tempts. gard to this bill is to raise a point of Bayh Durbin Lincoln order on this bill. If they do like a par- Biden Edwards Mikulski But I wouldn’t be a bit surprised if Bingaman Feingold Miller we could not put those in the $20 bil- ticular provision, let them do what we Boxer Feinstein Murray lion additional upon which we have al- do in the Senate. Let them offer an Breaux Graham Nelson (FL) ready agreed. amendment. If you do not like a par- Byrd Harkin Nelson (NE) ticular provision, offer an amendment. Cantwell Hollings Reed Looking at the substance of this leg- Carnahan Inouye Reid islation, there is nothing in this legis- Let there be no doubt that the vote Carper Jeffords Rockefeller lation to really stimulate the economy. we are about to take on this point of Cleland Johnson Sarbanes I was a businessman prior to coming to order which refuses to allow an emer- Clinton Kennedy Schumer gency designation is a vote to kill Conrad Kerry Stabenow the Senate. I guess spending $35,000, Corzine Kohl Torricelli which might be 1 percent of this bill, or homeland security for the remainder of Daschle Landrieu Wellstone maybe a smaller amount, might be use- this year. It is a vote to say no to our Dayton Leahy Wyden ful; or 10 percent to appreciate for 1 effort to protect our country from bio- NAYS—47 terrorism. It is a vote to say no to im- year might move spending up a little Allard Enzi Nickles bit. That is almost nothing. portant security for airports, ports, Allen Fitzgerald Roberts Looking at all the other provisions in highways, and tunnels. It is a vote to Bennett Frist Santorum Bond Grassley Sessions here, I was kind of shocked. Some of say no to additional help for law en- forcement as we consider the vast Brownback Gregg Shelby this is similar. Bunning Hagel Smith (NH) What is it about having a new sugar array of issues we have to confront. It Burns Hatch Smith (OR) beet program? Sugar beet disaster pro- is a vote to say no adequate unemploy- Campbell Helms Snowe 1 Chafee Hutchinson Specter ment compensation for 7 ⁄2 million un- gram? What does that have to do with Cochran Hutchison Stevens anything? What is stimulative about employed workers. It is a vote to say Collins Inhofe Thomas having the Federal Government buying no to helping these families keep their Craig Kyl Thompson Crapo Lott Thurmond apples, apricots, asparagus, bell pep- health insurance. It is a vote to say no to those 34 million workers out there DeWine Lugar Voinovich pers, bison meat, cranberries, dried Domenici McConnell Warner plums, lemons, peaches, and onions? who didn’t get a nickel in a rebate last Ensign Murkowski summer. What is stimulative about that? Are we There is a lot riding on this bill. This NOT VOTING—2 going to spend up to $3 billion doing isn’t just a point of order and some Gramm McCain that? parliamentary vote you can hide be- The PRESIDING OFFICER. On this Then I look and I see other items. I hind, this is a real vote. This is all we vote the yeas are 51, the nays are 47. see the Amtrak program that the Con- have to protect, for the remainder of Three-fifths of the Senators duly cho- gressional Budget Office says is a this year, our opportunities to ensure sen and sworn not having voted in the crummy way to do it. We are going to that a meaningful economic recovery affirmative, the motion is rejected. do it through allowing a tax credit, and and homeland security package can be The point of order is sustained and sec- so on. passed. That is it—this vote. I hope ev- tion 909 of the amendment containing The Congressional Budget Office did erybody understands that there isn’t a the emergency designation is stricken. an analysis in September of this year second or a third chance here. Mr. HATCH. Mr. President, I move to and said, in other words, that the tax I don’t know what will happen if we reconsider the vote. credit funding mechanism would essen- fail a pass this particular test. But I Mr. CRAIG. I move to lay that mo- tially be a new and more expensive way know this: it delays for a long period of tion on the table. for the Federal Government to assist time the help we can provide for all of The motion to lay on the table was Amtrak. They say it would be a lot those who are saying we don’t have agreed to. more expensive. We could just write time any longer. We have to get on Mr. DOMENICI. Mr. President, the them a check or allow them to use tax- with protecting this country and the pending amendment No. 2125 would exempt bonds. No. We came in with a vast array of new challenges we face as cause the aggregate level of revenues whole new game that is a lot more ex- a country. We have to provide this un- to fall below the level set out in the pensive. employment insurance for people most recent agreed-to concurrent reso- This bill is not stimulative. It won’t whose benefits are running out and for lution of the budget. I raise a point of help the economy. It is not bipartisan. those part-time workers are receiving order under section 311(a)(2) of the Con- We need to defeat this package and go no benefits at all. gressional Budget Act of 1974. back to work—Democrats and Repub- I hope our Republican colleagues will Mr. BAUCUS. Mr. President, pursu- licans together—and pass a package understand that. I hope they will join ant to section 904 of the Congressional that can be supported by Members on all 51 members of this caucus who are Budget Act of 1974, I move to waive the both sides of the aisle. prepared to say, yes, this is an emer- applicable sections of that act for the The PRESIDING OFFICER. Under gency; yes, we need to move on; yes. purposes of the pending amendment the previous order, the majority leader We need to work together in a bipar- and ask for the yeas and nays. is recognized. tisan way; yes, let’s do it tonight. The PRESIDING OFFICER. Is this a Mr. DASCHLE. Mr. President, let me I yield the floor. sufficient second? just pick up where my colleagues from The PRESIDING OFFICER. Under There is a sufficient second. Oklahoma left off. the previous order, the question is on The yeas and nays were ordered. We have been ready for weeks to agreeing to the motion to waive sec- Mr. BAUCUS. Mr. President, very work in a bipartisan fashion. No one tion 205 of House Concurrent Resolu- briefly, for the information of my col- has worked harder at reaching out to tion 290. The yeas and nays have been leagues, this second point of order our Republican colleagues than the ordered, and the clerk will call the roll. challenges the amendment for going man sitting at my right, Senator BAU- The legislative clerk called the roll. below the revenue floor and for going CUS, the manager of this bill. He has Mr. NICKLES. I announce that the above the spending ceilings of the tried on several occasions not only Senator from Texas (Mr. GRAMM) and budget resolution. with the Republican colleagues in the the Senator from Arizona (Mr. MCCAIN) The amendment does, in fact, violate Senate but with those in the House, are necessarily absent. the revenue floor and spending ceiling. November 14, 2001 CONGRESSIONAL RECORD — SENATE S11783 That is true. It is also true that the ment to H.R. 3090, even though there FARM POLICY THAT WORKS House bill, which will then come up, are a number of provisions in that Mrs. LINCOLN. Mr. President, I also violates the Budget Act for the amendment that are troubling. joined my colleague from Arkansas, same reasons, as does the bill offered Just a few weeks ago, this body voted Senator HUTCHINSON, to introduce a by my good friend from Iowa, as does to provide emergency funding to the bill of the utmost importance to our the White House proposal. They all do. nation’s airlines. We recognize the spe- farmers. The reason is because we have an cial situation caused by the terrorist Since the passage of the Freedom to emergency here. There are problems attacks of September 11, and under- Farm bill in 1996, our farmers have with which we have to deal. That is stood that if we failed to act, the con- toiled under clouds of uncertainty. why. I wish this waiver would pass, but sequences for those firms, and for the Quite simply stated, our Nation needs I know it won’t. economy as a whole, could well have a farm policy that works for working I yield the floor. been devastating. farmers. The PRESIDING OFFICER. The Sen- At the time of that vote, I noted that That is why I and Senator HUTCH- ator from New Mexico. we also needed to address the problems INSON, along with Senator HELMS of Mr. DOMENICI. Mr. President, I facing the workers in those firms. This North Carolina, Senator MILLER of yield the floor. Let’s vote. legislation will do that, in part, and it Georgia, and Senators BREAUX and The PRESIDING OFFICER. The will also provide assistance to other LANDRIEU of Louisiana, are proud to question is on agreeing to the motion. families who have been thrown out of offer a new alternative. The yeas and nays are ordered and the work by the economic slowdown, and We offer a farm bill that will ensure clerk will call the roll. should provide the weakened economy a strong safety net for America’s farm- Mr. NICKLES. I announce that the with a boost. ers and ranchers. Senator from Texas (Mr. GRAMM) and Unfortunately, a number of special We offer a farm bill that will increase the Senator from Arizona (Mr. MCCAIN) interests have taken advantage of this investment in conservation programs are necessarily absent. human and economic adversity to ad- by 80 percent. The PRESIDING OFFICER. Are there vance their own agenda. The measure We offer a farm bill that provides any other Senators in the Chamber de- that passed the other body is teeming more effective support for disadvan- siring to vote? with special interest tax breaks that do taged working families through nutri- The yeas and nays resulted—yeas 51, little or nothing for the economy as a tion programs. nays 47, as follows: whole in the short term, and seriously We offer a farm bill that will increase [Rollcall Vote No. 338 Leg.] jeopardize our long term budget posi- and improve our Nation’s agricultural YEAS—51 tion. The substitute amendment before trade programs, such as the Food Aid Akaka Dodd Levin us is vastly superior in this respect. It program that sends food to the need- Baucus Dorgan Lieberman provides far more benefit for our econ- iest nations. Bayh Durbin Lincoln omy in the short term, while mini- We offer a farm bill that will pre- Biden Edwards Mikulski serve and protect our Nation’s forests Bingaman Feingold Miller mizing the long term impact. Boxer Feinstein Murray Nevertheless, there are a number of and environment while investing in Breaux Graham Nelson (FL) special interest spending and tax provi- rural America. Byrd Harkin Nelson (NE) sions in the amendment that raise seri- For too many years, while the Amer- Cantwell Hollings Reed ican economy at large was posting as- Carnahan Inouye Reid ous questions, such as provisions that Carper Jeffords Rockefeller provide money for citrus growers and tonishing and unprecedented gains, our Cleland Johnson Sarbanes buffalo farmers and tax breaks for elec- agricultural producers have not bene- Clinton Kennedy Schumer tricity produced from chicken waste fited from our prosperity. Conrad Kerry Stabenow It is not only our farmers who are Corzine Kohl Torricelli and aviation fuel for crop-dusters. A Daschle Landrieu Wellstone provision common to both the sub- suffering as a result of failed govern- Dayton Leahy Wyden stitute amendment and the House- ment policy. The institutions of small- NAYS—47 passed bill would reduce taxes on cor- town and rural America local banks and merchants, feed and supply stores, Allard Enzi Nickles porations’ overseas investment income. Allen Fitzgerald Roberts As the Washington Post noted in a re- equipment dealers, even corner gro- Bennett Frist Santorum cent editorial: ‘‘It’s hard to see how ceries and family-owned hardware Bond Grassley Sessions stores are all caught in the web of fi- Brownback Gregg Shelby this measure, which would encourage Bunning Hagel Smith (NH) firms to keep money outside the coun- nancial collapse. Burns Hatch Smith (OR) try, would do anything to stimulate Here is a letter I received from a Campbell Helms Snowe the American economy.’’ young farmer in northeast Arkansas Chafee Hutchinson Specter just a few months ago. He says that his Cochran Hutchison Stevens The substitute amendment before us, Collins Inhofe Thomas even with its flaws, is far more fiscally family’s farm is nearing ‘‘a point of no Craig Kyl Thompson responsible than the House bill, but as return,’’ and that if the crisis con- Crapo Lott Thurmond tinues, he will have to leave the land DeWine Lugar Voinovich this legislation proceeds there is a real Domenici McConnell Warner risk that it will continue to pick up that his grandfather worked. Ensign Murkowski still more special interest provisions. Here is a letter from a bank president in southeast Arkansas, who notes that NOT VOTING—2 Indeed, the House version is largely a when he moved to his community in Gramm McCain lobbyist’s wish list. Unless this body is able to restrain itself, and resist efforts 1969, a new John Deere combine sold The PRESIDING OFFICER. On this to advance special interest spending for about $15,000. Today, a comparable vote, the yeas are 51, the nays are 47. and tax breaks, the costs of a fiscal model sells for $220,000. Fuel for that Three-fifths of the Senators duly cho- stimulus measure will outweigh any combine cost 15 cents per gallon in sen and sworn not having voted in the benefit it provides to our economy. 1969, he writes; today, a gallon of diesel affirmative, the motion is rejected. fuel costs $1.05. He goes on to note that The point of order is sustained and the while a farmer could expect to receive f amendment falls. $3 for a bushel of rice 32 years ago, Mr. REID. I move to reconsider the today he only gets $2.7 for the same vote, and I move to lay that motion on MORNING BUSINESS bushel. The costs skyrocket, but the the table. Mr. REID. Mr. President, I ask unan- returns on these investments continue The motion to lay on the table was imous consent that the Senate proceed to fall. agreed to. to a period for morning business with Here is a letter from a young woman Mr. FEINGOLD. Mr. President, I sup- Senators allowed to speak of a period in east Arkansas who works a 600-acre ported a motion to waive the Budget not to exceed 10 minutes. rice and soybean farm with her hus- Act with respect to a point of order The PRESIDING OFFICER. Without band and child. Her husband is so de- raised against the substitute amend- objection, it is so ordered. pressed that he needs counseling and