Congressional Record United States Th of America PROCEEDINGS and DEBATES of the 108 CONGRESS, SECOND SESSION

E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 108 CONGRESS, SECOND SESSION

Vol. 150 WASHINGTON, WEDNESDAY, MAY 5, 2004 No. 61 House of Representatives The House met at 10 a.m. PLEDGE OF ALLEGIANCE EDUCATION IN AMERICA Commander Maurice S. Kaprow, The SPEAKER. Will the gentle- (Mr. ROSS asked and was given per- Chaplain Corps, U.S. Naval Reserve, woman from Colorado (Mrs. MUSGRAVE) mission to address the House for 1 Norfolk, Virginia, offered the following come forward and lead the House in the minute and to revise and extend his re- prayer: Pledge of Allegiance. marks.) Eternal God, today as we gather in Mr. ROSS. Mr. Speaker, as the proud this historic and august chamber, we Mrs. MUSGRAVE led the Pledge of Al- legiance as follows: son of public school educators and a fa- pause to thank You for the many bless- ther of two children attending public ings You have bestowed upon our Na- I pledge allegiance to the Flag of the school, I am concerned about the state United States of America, and to the Repub- tion, our constituents, and ourselves. of education in America. Thank You for making us the strong- lic for which it stands, one nation under God, indivisible, with liberty and justice for all. Education is one of America’s most est, most democratic and compas- fundamental building blocks. A solid sionate Nation in this wonderful, yet f education system is what drives our troubled world. Nation’s prosperity and paves the way As we meet here in the safety of this to a brighter future for our great coun- INVESTIGATION NEEDED OF OIL House of Representatives, let us re- try. Yet, our President, for the third FOR FOOD PROGRAM member the many members of our year in a row, wants to cut funding for Armed Forces, especially those serving (Mr. FOLEY asked and was given per- our public education system. Though far from home in the midst of danger, mission to address the House for 1 the President promised to support our at the tip of the spear, bringing the minute and to revise and extend his re- teachers, he tried to cut teacher qual- hope of democracy where tyranny once marks.) ity programs by $268 million in the 2004 ruled, and the specter of peace to those Mr. FOLEY. Mr. Speaker, 7 years ago budget. who for years cowered in terror and the United Nations established an Oil Our President has repeatedly slashed lived in tumult. for Food program intended for humani- funding for the Pell grants, which al- We pray for the safe return of those tarian relief. Oil was sold to finance lows thousands of deserving students deployed to the four corners of the the purchase of food, medicine and the opportunity to go to college. And Earth, sailors and Marines, soldiers, other relief necessities for the Iraqi his proposed budget for 2005 slashes airmen, and Coast Guardsmen. Guard people. funding for the No Child Left Behind their families and give them strength The General Accounting Office esti- program which the President has re- to endure until their service members mates that more than $10 billion was peatedly identified as one of his top return to their homes to welcoming stolen from the Oil For Food program. priorities by $8 billion. arms and the warm embrace of those Money that was to help the Iraqi peo- Our children deserve a real education they love. ple went to pay off politicians and ex- system that provides them with a Grant us all life and peace, courage ecutives, build a $20 million Olympic solid, quality education. and wisdom, as we act today and every- sport facility for Uday Hussein, and day in the best interests of the citizens f spent over $50 million for promotion of these United States, while being for the Husseins’ propaganda. They WIRELESS PHONES AND 911 CALLS ever mindful of those throughout the may have even financed weapons that world community. And let us, say, (Mr. SHIMKUS asked and was given are now being used against our troops. Amen. permission to address the House for 1 Oil for Food was the largest UN pro- minute and to revise and extend his re- f gram in the world at one time. The marks.) Iraqi people are owed an explanation Mr. SHIMKUS. Mr. Speaker, not long for the exploitation of their resources. ago, all 911 calls were local calls made THE JOURNAL And if the United Nations is to be on wireline phones. Today, it is esti- The SPEAKER. The Chair has exam- treated credibly, they must assist in mated that nearly 130 million wireless ined the Journal of the last day’s pro- the investigation of where this money phones are in use, generating an aver- ceedings and announces to the House went to; $10 billion stolen from the age of 150,000 calls to 911 each day. his approval thereof. Iraqi people. The U.N. needs to come However, few people realize that most Pursuant to clause 1, rule I, the Jour- clean on this issue and share with the wireless 911 calls do not go to the near- nal stands approved. people where these dollars went. est public safety answering point, do

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

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VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.000 H05PT1 H2552 CONGRESSIONAL RECORD — HOUSE May 5, 2004 not provide the caller’s call-back num- The fact that cargo theft is now According to the National Council on ber, nor do they provide the caller’s lo- being tied to the funding of terror Aging, a national voluntary network of cation. makes it critical that we address this organizations and individuals dedi- In some areas, wireless callers get an crime on the Federal level. I have in- cated to improving health and inde- automated voice instead of help when troduced a bill, the Cargo Theft Pre- pendence of our seniors, low income they dial 911. vention Act, which seeks to bring this Medicare beneficiaries should abso- The House passed legislation earlier crime out of the shadows and to finally lutely apply for a new Medicare ap- this year which I introduced with my hold criminals accountable. proved drug discount card and its $600 colleague, the gentlewoman from Cali- With stricter criminal penalties and annual transition assistance benefit. fornia (Ms. ESHOO), that attempts to better information sharing, this bill Despite the shrill protests of those solve these problems by enhancing the will finally give both lawmakers and who voted against it and want it to coordination of E–911 implementation law enforcement officials the tools fail, the power to save on prescription in each State, discouraging the raiding they need to combat this growing drugs is now in the hands of the sen- of E–911 funds, and giving local PSAPs crime. With support from the American iors, and Republicans will help. additional funding to help them finally Trucking Association and multiple law f achieve and enhance 911 capability. enforcement groups, I hope all of you It is my hope we can get this legisla- will join me in cosponsoring H.R. 3563, CINCO DE MAYO tion to the President before the end of The Cargo Theft Prevention Act. (Ms. LINDA T. SA´ NCHEZ of Cali- the year so local communities can f fornia asked and was given permission begin upgrading their 911 systems and UNANSWERED QUESTIONS to address the House for 1 minute and help first responders locate those in to revise and extend her remarks.) need as quickly as possible. (Mr. EMANUEL asked and was given Ms. LINDA T. SA´ NCHEZ of Cali- permission to address the House for 1 f fornia. Mr. Speaker, today we celebrate minute and to revise and extend his re- a day that represents the importance HONORING NATHAN BRUCKENTHAL marks.) of freedom, liberty and determination (Mr. ISRAEL asked and was given Mr. EMANUEL. Mr. Speaker, Presi- for the people of Mexico and for Mexi- permission to address the House for 1 dent Kennedy once said, ‘‘An error does can Americans. minute and to revise and extend his re- not become a mistake until you refuse On May 5, 1862, untrained, out-num- marks.) to correct it. Without debate, without bered and out-gunned Mexican forces criticism no administration and no Mr. ISRAEL. Mr. Speaker, on April determined to protect their land, suc- country can succeed and no republic 24, Nathan Bruckenthal became the cessfully defended the town of Puebla first member of the Coast Guard to die can survive. Today, Members of this House and against the French. in battle since Vietnam. His bravery this Chamber have refused and said it Against overwhelming odds, they and sacrifice shines a light on the often is not time to have hearings in this managed to drive back the French overlooked sacrifices made by the Congress over what we have seen re- Army, achieving a total victory over Coast Guard in our Nation’s defense. cently in Iraq. The men and women soldiers that were deemed the best Nathan is survived by a proud father over there serving their country, our trained and equipped in the world. in Northport, New York, village police country, our friends, our neighbors, our For Mexico, this days represents a chief Rick Bruckenthal and his wife, constituents, are making us proud. symbol of unity and patriotism. Patricia, a loving mother, Laurie Bul- This Congress has an obligation to ask In this country, Cinco de Mayo is lock of Ashburn, Virginia. Nate is also questions of how and why this oc- also a celebration of the rich cultural the brother of Matthew, Michael and curred, no matter where the criticism heritage Mexican-Americans and all Noa Beth, and the husband of Patricia leads. Latinos have brought to the United in Florida. Our troops should not be used as States. Unfortunately, Latinos do not When I called Rick Bruckenthal, he scapegoats. Our civilian leaders need to have much to celebrate this year. simply said, ‘‘My son served his coun- be asked the questions, the Congress, This past month the Latino unem- try.’’ He did serve and he did sacrifice. all of us who got elected, all of us who ployment rate has remained an alarm- And now we have an eternal debt to his take a pledge have a requirement to ingly high 7.4 percent. This is 28 per- memory and his family, to support our ask questions and seek the answers cent higher than when President Bush troops when we send them into dan- that our constituents sent us here. took office and it is significantly high- gerous places, to support their families er than the national average. f back home, to support our veterans, to This administration’s misguided poli- do these things in our hearts, in our NEW PRESCRIPTION DRUG cies continue to create economic un- budgets, and in our prayers which are COVERAGE certainty for all working families. with the family of Nathan (Mr. REHBERG asked and was given Do not be fooled by the Marachis and Bruckenthal, the police department of permission to address the House for 1 pinatas at the White House today. This Northport Village, the United States minute and to revise and extend his re- pomp and circumstance gives no relief Coast Guard and Bates Neck Station, marks.) to the 1.4 million unemployed Latinos. today and all days. Mr. REHBERG. There is an old f God bless the Bruckenthal family adage, the louder your opponents pro- COMMENDING THE SERVICE OF and God bless America. test, the more you know you are suc- THE ARMED FORCES FOUNDATION f cessful with what you are doing. That is exactly what is happening (Mr. WILSON of South Carolina COMBATING CARGO THEFT with Medicare’s new prescription drug asked and was given permission to ad- (Mr. STEARNS asked and was given coverage. Those who voted against the dress the House for 1 minute and to re- permission to address the House for 1 new prescription drug benefit are pro- vise and extend his remarks.) minute and to revise and extend his re- testing what we have done because Mr. WILSON of South Carolina. Mr. marks.) they do not think seniors are smart Speaker, this weekend I had the honor Mr. STEARNS. Mr. Speaker, I would enough or capable enough to choose of joining the nonprofit Armed Forces like to talk today about a little known the prescription drug plan that is best Foundation in Columbia, South Caro- crime that has an enormous impact on for them. They want the program to lina, for Military Appreciation Day. all of our congressional districts. fail for preliminary reasons. There I met with hundreds of military Every day our country loses millions All these protests are designed to and family members who gather to of dollars to interstate cargo theft, a draw attention away from the fact that enjoy a day of recreation, fishing and crime that is occurring on highways for the first time more than 7 million appreciation for their service. across our country. Any crime that low income seniors and younger people Led by President Patricia Driscoll, threatens this flow of goods should be with disabilities are now eligible for along with fundraiser Wyatt Smith and dealt with quickly. much needed assistance. founded by Jim Gorab, the Armed

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00002 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.002 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2553 Services Foundation works to support minute and to revise and extend his re- of the National Right to Work Com- the American military community. marks.) mittee. In 1977, he sent a letter to com- President Driscoll knows personally Mr. PENCE. Mr. Speaker, what hap- mittee president Reed Larson offering the sacrifice these men and women pened at Abu Ghraib prison in Baghdad his services as a member of the board make, as her husband is on active duty was a disgrace, and it grieved the heart of directors. in Iraq today, fighting to protect of every American who saw it, grief for He wrote: ‘‘Although I have sup- American families in the war on terror. the families of the Iraqis incarcerated ported the National Right to Work Along with military appreciation who had endured the indignities and Committee for a number of years be- events held throughout the United grief for the American soldiers, not cause of my strong belief in individual States, the Armed Forces Foundation those involved. Those involved must freedom, I did not really appreciate the coordinates care packages for troops and will be held to the strictest ac- clout of union political power until I deployed and offers travel assistance count. worked on trying to close loopholes in for families visiting wounded soldiers. It grieved me to hear, as someone Connecticut’s unemployment com- Additionally, they give away thou- who has traveled to Operation Iraqi pensation law. I would like the oppor- sands of turkeys every year for Freedom twice, I have been at Camp tunity to do more in the area of right Thanksgiving and gift certificates for Victory in Baghdad. I have been at to work as I feel America’s future de- military children at Christmas time. Talil Air Base in southern Iraq. I have pends upon it.’’ I ask all of my colleagues to join me walked among our soldiers on aircraft Fortunately, Reed Larson took up in thanking the Armed Forces Founda- carriers and on the ground. They are Mr. Faria on his offer. Mr. Faria joined tion for their service to those who de- honorable men and women who each the board of directors of the National fend freedom. and every day put their lives on the Right to Work Legal Defense Founda- In conclusion, may God bless our line in a dignified and respectful way tion shortly thereafter. troops, and we will never forget Sep- as American soldiers ever and always tember 11. have. The right to work principle, the guid- f It is for their reputation that I grieve ing concept of the National Right to today and why I call on this adminis- Work Legal Defense Foundation and MISSING COMMANDER-IN-CHIEF tration and our own military to put one of the guiding principles of Thomas (Mr. MEEKS of New York asked and our house in order, hold those to ac- Faria’s work, affirms the right of every was given permission to address the count, uphold the great reputation of American to work for a living without House for 1 minute and to revise and the American fighting man. being compelled to belong to a union. extend his remarks.) The National Right to Work Legal De- f Mr. MEEKS of New York. Mr. Speak- fense Foundation gives legal assistance er, I rise this morning wondering where CONGRATULATING 2004 NATIONAL to employees who have been victim- is the Commander in Chief? CHESS CHAMPS ized. Our wartime President is missing in (Mr. WEINER asked and was given I rise today to applaud Mr. Faria’s ef- action. Our troops are being killed be- permission to address the House for 1 forts and the National Right to Work cause of a lack of proper planning; and minute and to revise and extend his re- Committee with whom he served. as one of the worst scandals involving marks.) our military is uncovered, George W. Mr. WEINER. Mr. Speaker, Edward f Bush is in Ohio flipping pancakes, and R. Murrow High School is known for a in Michigan, of all places, riding in a $1 great many things, not the least of CINCO DE MAYO 2004 million bus made in Canada. which is producing the only two truly Where is our leadership from our talented members of the Weiner fam- (Mr. RODRIGUEZ asked and was President? It is AWOL. ily, my brothers Jason and Seth; but given permission to address the House As the Bush campaign smear ma- this year they are also known as the for 1 minute and to revise and extend chine continues to attack and distort 2004 national chess champs, defeating his remarks.) JOHN KERRY’s decorated Vietnam serv- over 150 schools, 300,000 student. This Mr. RODRIGUEZ. Mr. Speaker, today ice record, which includes a Silver goes with their dynasty-building wins is Cinco de Mayo. We celebrate the te- Star, a Bronze Star, and three Purple in 1992, 1993 and 1994, under the excel- nacity and the perseverance of the un- Hearts, George Bush wants the Amer- lent coaching of Eliot Weiss. trained and outnumbered Mexican ican people to believe that he actually We have to recognize they do belong forces that successfully fought for has a military record to be proud of. in the pantheon of dynasties, as they independence against the sophisticated That is as believable as when the Com- defeated every school in the country French Army of Maximilian in 1862. mander in Chief landed on the deck of and are soon going to be taking on Across the Nation, we will be cele- an aircraft carrier pretending to be a those in this world. And as soon as soldier. brating the turning points of this par- NASA makes it possible, I am sure ticular war as Mexican Americans in Perhaps the President’s smear ma- they will defeat teams from other plan- chine can explain where George Bush this country, and it is important for us ets. to look at in this country the impor- was the year he was missing during his Let me read the roll call of this great military service, and his clear absence tance of this particular war to this team: Salvijus Bercys, Dimitry country. of leadership as a President, instead of Minevich, Olga Novikova, Alex cooking up phoney attacks on a deco- Lidnerman, Ilya Kotlyanskiy, Oscar The writings of Harry Carr in the rated war hero like JOHN KERRY. Santana, Willy Edgard, and Niles 1930s talk about the fact that during f Smith. There is a reason they call this that particular time in 1860, during our own Civil War in this country, Maxi- b 1015 team the Brooklyn Kings. We offer them our congratulations. milian had gone into Mexico with the ANNOUNCEMENT BY THE SPEAKER intent of not only taking Mexico but f PRO TEMPORE moving on to the north. We are pleased THOMAS FARIA: MORE THAN The SPEAKER pro tempore (Mr. also to indicate for those of my col- THREE DECADES OF SERVICE TO leagues in this country to also know KOLBE). The Chair would remind Mem- THE RIGHT TO WORK CAUSE bers to avoid personal references to the that the one who won the battle in President of the United States. (Mrs. MUSGRAVE asked and was Puebla was a Texan, was Ignacio Zaragoza Seguin who came out of f given permission to address the House for 1 minute and to revise and extend Goliad, Texas, and was able to be vic- UPHOLD THE REPUTATION OF THE her remarks.) torious there in that battle in Puebla. GREAT AMERICAN FIGHTING MAN Mrs. MUSGRAVE. Mr. Speaker, Mr. So as we celebrate the Cinco de (Mr. PENCE asked and was given per- Thomas Faria was a Connecticut busi- Mayo, we are proud to have that inter- mission to address the House for 1 nessman who contributed to the efforts woven with this country and Mexico.

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.004 H05PT1 H2554 CONGRESSIONAL RECORD — HOUSE May 5, 2004 MEDICARE PRESCRIPTION DRUG Mr. PITTS. Mr. Speaker, as a mili- also acknowledge the shared sacrifice DISCOUNT CARD tary veteran, I was saddened and out- that all Americans have made for this (Mr. FRELINGHUYSEN asked and raged to hear the stories this past week country. was given permission to address the of physical and psychological abuse of f Iraqi prisoners at the hands of U.S. sol- House for 1 minute.) LIMITING FLOW OF LEGAL diers. Mr. FRELINGHUYSEN. Mr. Speaker, IMMIGRATION this week nearly 15.4 million seniors This outrageous behavior goes across the Nation are eligible to apply against everything America stands for. (Mr. BARRETT of South Carolina for a Medicare-approved prescription It is a serious breach of military dis- asked and was given permission to ad- drug discount card. This is good news cipline. It is a disgusting and a shame- dress the House for 1 minute and to re- for older Americans, especially for ful violation of human rights. It is un- vise and extend his remarks.) those in my home State of New Jersey. American, and it jeopardizes the future Mr. BARRETT of South Carolina. With the new discount card, over freedom in Iraq and the Middle East, Mr. Speaker, while I believe that ille- 300,000 more seniors in my State alone and it is sad that the 99.9 percent of the gal immigration must be stopped, there will be able to receive immediate medi- U.S. military which has conducted is nothing wrong with allowing a mod- cine assistance. Most of the bene- themselves honorably will now be de- erate level of legal immigration. Immi- ficiaries will save an average of be- famed because of the actions of a few. grants have contributed greatly over tween 10 and 25 percent off the retail In a war for hearts and minds, these the years to our Nation and our econ- price of their prescription drugs while actions do not help, and those respon- omy, and society should accommodate low-income seniors will receive an ad- sible should be held accountable; but several hundred thousand new legal im- ditional $600 of Federal credit towards let us remember the terrorists we are migrants annually. the purchase of their medicines. fighting. However, we can never realistically With the passage of this new Medi- In Saudi Arabia this weekend, ter- accept but a tiny fraction of the tens of care law last November, we ensured rorist extremists murdered five West- millions who would love to migrate that New Jersey and other States were ern oil workers, tied one body to a car here each year, and we can no longer not penalized, especially for having a and drove around with it like a hood allow a million new legal immigrants preexisting drug assistance program ornament. One terrorist murdered a to come and work here. that, quite frankly, is one of the most pregnant woman and her four daugh- For starters, I believe that we need comprehensive and generous in the ters, and then put a bullet in her stom- to reduce legal admission numbers by country. As a result of our efforts, not ach to make sure the job was complete. ending the visa lottery and the so- only will seniors save on their prescrip- We remember the scenes from Iraq of called extended family categories that tion medicines as promised, but our the bodies of aid workers drug through fuel foreign worker inflow by chain im- State of New Jersey will save an esti- the streets recently. migration. A positive first step at re- mated $4 billion over the next 10 years. I have no doubt the U.S. will exact forming our outdated immigration justice on our soldiers. If we could only laws would be to pass H.R. 775, the f get the terrorist extremists and their Goodlatte bill that repeals the visa lot- CONGRESS FAILS TO AGGRES- leaders to do the same. tery. SIVELY TAKE SERIOUS OVER- f As a cosponsor of that bill, I urge the SIGHT RESPONSIBILITIES House of Representatives leadership HONORING ENRIQUE, JESUS, AND (Mr. BLUMENAUER asked and was and Committee on the Judiciary to act JULIO ZAPATA given permission to address the House to bring the bill before the full House for 1 minute.) (Mr. GRIJALVA asked and was given for action and to advance other legisla- Mr. BLUMENAUER. Mr. Speaker, re- permission to address the House for 1 tion to cut down legal foreign worker cent revelations about the abuses in minute and to revise and extend his re- inflows to more moderate levels. Iraq illustrate problems not just with marks.) f United States policy but with how Con- Mr. GRIJALVA. Mr. Speaker, I rise today in honor of Enrique, Jesus and MEDICARE PRESCRIPTION DRUG gress deals with its responsibilities. DISCOUNT CARDS Yes, there are problems with the De- Julio Zapata, and in particular, their partment of Defense, starting with Sec- honorable service in the Vietnam War. (Ms. BERKLEY asked and was given retary of Defense Rumsfeld who is ei- I am proud to say these three brothers, permission to address the House for 1 ther out of the loop, who either does who gave so much to our country, were minute and to revise and extend her re- not know or places a low priority on born and raised in my district in the marks.) these problems, things known for city of Nogales, Arizona. Ms. BERKLEY. Mr. Speaker, when months and issues lingering for over a During the Vietnam era, Enrique, Congress passed the Medicare prescrip- year. Jesus and Julio made the courageous tion drug bill, seniors expected real Yes, there are problems with con- decision to enlist in the United States prescription drug coverage. Instead, tracting out to private companies func- military. seniors are receiving a sham discount tions, fundamental core government Jesus Zapata served his tour of duty card that guarantees no savings and activities, at great cost without ac- in Vietnam from June 4, 1965, to July 4, will not lower drug costs. countability. But we should be con- 1966. Enrique Zapata served two 6- Many seniors already use a drug dis- cerned that Congress fails to aggres- month tours of duty in Vietnam with count card available at their phar- sively take seriously our oversight re- the United States Navy, enlisting July macies which provides savings up to 25 sponsibilities instead waiting for a 20, 1964. Julio Zapata served in Viet- percent. Seniors are able to use as pending article in The New Yorker to nam from April 30, 1967, to April 30, many cards as they need. cut loose an avalanche of other news 1968. The Medicare discount card will accounts. Our country owes a debt of gratitude limit the options available to our sen- There are at least a half dozen com- to these fine citizens and the countless iors. Seniors will be allowed only one mittees in this House that could be Vietnam veterans who have not been card, and drug prices can vary week to taking action. The American public, accorded the full respect and apprecia- week. In fact, drug companies are al- the Iraqi people, and our men and tion they deserve from our country. As ready starting to increase drug prices women in uniform deserve better. I speak today, they sit in the gallery of so they will not lose any money. f the House of Representatives. I hope Democrats are committed to not those of my colleagues who meet them only fighting for a prescription drug TREATMENT OF IRAQI PRISONERS will thank them and extend their ap- benefit for our seniors but for lower (Mr. PITTS asked and was given per- preciation from all of us for the service drug prices and giving seniors real mission to address the House for 1 they gave this country. choices. minute and to revise and extend his re- On Cinco de Mayo, when we celebrate The administration’s drug benefit marks.) and acknowledge our diversity, let us will mask inflated prices and give huge

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.006 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2555 subsidies to drug companies. I am dis- the age of 33. On September 11, 1862, ises and unfinished business. Broken appointed, as a matter of fact I am President Juarez declared May 5, Cinco promises, such as the President’s fail- heartsick, that many seniors who desde Mayo, a national holiday. ure to increase funding for schools that perately need our help will not save Today, Cinco de Mayo is celebrated remain $9 billion short, broken prom- one dime on their medication bills throughout Mexico and around the ises such as the President’s failure to under this administration’s program. world, but I hope that as we celebrate increase Pell grants for our college stu- f this holiday, we remember the courage dents while Pell grants remain the and sacrifice of this true hero. same for a third year in a row. ADMINISTRATION HAS FAILED f Mr. Speaker, when it comes to edu- EDUCATION cation, the President shows up for EVENTS OF THE DAY (Mr. MCDERMOTT asked and was photo-ops, he stands next to children given permission to address the House (Ms. JACKSON-LEE of Texas asked and to teachers for a picture, but he for 1 minute and to revise and extend and was given permission to address does not show up nor does he stand up his remarks.) the House for 1 minute and to revise with them when it comes to improving schools in our Nation. Mr. MCDERMOTT. Mr. Speaker, and extend her remarks.) It is time for the President to be held when it comes to education, the admin- Ms. JACKSON-LEE of Texas. Mr. accountable for promises made and istration’s rhetoric is there, but it Speaker, let me acknowledge the heros of Cinco de Mayo Day, and all of my promises broken. As we commemorate masks the reality. The administration the 50th anniversary of Brown v. Board waves a lot of papers and makes a lot constituents and friends who are celebrating this day. of Education, it is time to stop leaving of speeches, but they have failed edu- millions of our children behind. cation in America; and it is a required Mr. Speaker, I also want to acknowl- course. edge this is the national day to prevent f Here are their test courses. The ad- teenage pregnancy, and to be able to DO NOT OVERLOOK TRUE ministration has an Education Sec- say that from 1990 to 2000, the decrease MEANING OF CINCO DE MAYO DAY in teenage pregnancy is seen at 28 per- retary who calls the teachers’ union (Mr. BACA asked and was given percent. ‘‘terrorists.’’ The administration left mission to address the House for 1 Let me also congratulate the family every child behind when it grossly un- minute and to revise and extend his re- of Mr. Hamill, who is now celebrating derfunded that essential education in marks.) the United States. his return, and I acknowledge that be- Mr. BACA. Mr. Speaker, I rise today Today, we are celebrating and they cause many of his friends and cowork- to pay tribute to the Mexican patriots are celebrating Cinco de Mayo, while ers are in my congressional district. To who gave their lives fighting valiantly they hide from the Hispanic commu- them I say, what a celebration, but we and successfully against an over- nity the fact that they have cut pro- pray for other hostages. whelming French army on May 5, 1862. grams to promote staying in school, But I am so sorry that I stand here Celebrated as Cinco de Mayo, the knowing that the high school dropout today really to challenge the tragedy true meaning of this holiday has been rate for Hispanics is four times higher of what has happened in the Iraqi pris- too often overlooked. Many celebrate than white students. ons, not because those line soldiers, with festivals, singing and dancing, but Come November we are going to en- who I know have done a disgraceful it is more than a party, it is about a roll the President and the administra- act, are the only ones now being chas- proud heritage, cultural tradition and tion in a remedial rhetoric course to tised, but because this administration the freedom that was won. We as Amer- learn how to tell the truth. believes that cameo appearances on the icans and Hispanics celebrated Cinco television are the solution to the trag- de Mayo not just to honor the courage f edy of what happened, that that will of those fighting for freedom, but also b 1030 correct the face of America in front of for its significance to the American the million of Muslims and Iraqi peo- HONORING GENERAL ZARAGOZA ideal of self-determination, respect, ple. justice and equality for all individuals. (Mr. HINOJOSA asked and was given Mr. Speaker, it is time for the admin- Today, the struggle continues on, but permission to address the House for 1 istration to come to this Congress and we must come together as one Nation minute and to revise and extend his re- that there be full exposure to what and one unit to respect each and every marks.) happened, not in the back rooms of the one of us. I yield back the balance of Mr. HINOJOSA. Mr. Speaker, I rise Permanent Select Committee on Intel- my time as we celebrate Cinco de today to honor a true hero who gave ligence or some other committee, but Mayo, all coming together as one Na- his life to free his country from foreign in an open hearing of this Congress. tion and one country. oppression. Ignacio Zaragoza Segun Shame on this Congress if we do not f was born in 1829 near what is now demand a full briefing of what hap- MIDDLE-CLASS ALTERNATIVE Goliad, Texas, in my 15th Congres- pened. It should not be behind the MINIMUM TAX RELIEF ACT OF 2004 sional District. closed doors of the Permanent Select In 1862, French troops began to Committee on Intelligence. Mr. LINDER. Mr. Speaker, by direction of the Committee on Rules, I call march to capture Mexico City. They f met the Mexican forces at the city of up House Resolution 619 and ask for its Puebla in a battle that lasted the en- EDUCATION IN AMERICA immediate consideration. tire day of May 5, 1862. Under General (Mr. RUSH asked and was given per- The Clerk read the resolution, as fol- Zaragoza’s leadership, the vastly out- mission to address the House for 1 lows: numbered Mexican Army forced the minute and to revise and extend his re- H. RES. 619 withdrawal of Napoleon III’s Army, the marks.) Resolved, That upon the adoption of this premier army in the world at that Mr. RUSH. Mr. Speaker, as we ap- resolution it shall be in order to consider in time. French losses were heavy, but proach the 50th anniversary of Brown the House the bill (H.R. 4227) to amend the Internal Revenue Code of 1986 to extend to Mexican casualties were few. The cost- v. Board of Education, it is crucial that 2005 the alternative minimum tax relief ly delay in Puebla helped shorten the we examine the progress America’s available in 2003 and 2004 and to index such French intervention. It also helped pre- public school systems have made. relief for inflation. The bill shall be consid- serve the American union, as it kept It seems to me although we live in ered as read for amendment. The previous the French Army too busy to directly different times, many fundamental question shall be considered as ordered on aid the Confederacy with troops during challenges still remain. I, along with the bill and on any amendment thereto to the U.S. Civil War. my Democratic colleagues, believe edu- final passage without intervening motion except: (1) one hour of debate on the bill equal- General Zaragoza received a hero’s cation is vital for students, parents and ly divided and controlled by the chairman welcome in Mexico City. While visiting for our country. America needs strong and ranking minority member of the Com- his sick troops, he contacted typhoid leadership in education, one that will mittee on Ways and Means; (2) the amend- fever and he died September 8, 1862, at make up for 50 years of broken prom- ment in the nature of a substitute printed in

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00005 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.008 H05PT1 H2556 CONGRESSIONAL RECORD — HOUSE May 5, 2004 the report of the Committee on Rules accom- year the current limits on income ex- lican proposal, easier to understand, panying this resolution, if offered by Rep- ceptions from the AMT that Congress and most importantly, it pays for resentative Rangel of New York or his des- and President Bush enacted in 2001 and itself. ignee, which shall be in order without inter- 2003. Notably, H.R. 4227 also indexes the Despite making this amendment in vention of any point of order, shall be considered as read, and shall be separately de- limits for inflation, thereby precluding order, the rule blocks the gentleman batable for one hour equally divided and con- the AMT from taking an even bigger from Washington (Mr. BAIRD) from of- trolled by the proponent and an opponent; bite out of most moderate-income fam- fering an amendment dealing with the and (3) one motion to recommit with or ilies’ paychecks. deductibility of State income taxes or without instructions. President Clinton’s 1993 tax raise in- State sales taxes. Yesterday evening, The SPEAKER pro tempore (Mr. creased the AMT tax rate without ad- the Baird measure came to the Com- KOLBE). The gentleman from Georgia justing the AMT exemption amount for mittee on Rules. The gentleman from (Mr. LINDER) is recognized for 1 hour. inflation. Since then, however, the Re- Washington asked that his amendment Mr. LINDER. Mr. Speaker, for the publican majority in the Congress has be made in order under the rule. In typ- purpose of debate only, I yield the cus- repeatedly delivered AMT relief to tax- ical fashion, Republicans are blocking tomary 30 minutes to the gentleman payers. what they may not be able to defeat. from Florida (Mr. HASTINGS), pending The Economic Growth and Tax Relief Just like Shakespeare wrote, a rose by which I yield myself such time as I Reconciliation Act of 2001 increased any other name would smell as sweet; may consume. During consideration of the AMT exemption amounts, and the a closed rule will always stink, and not this resolution, all time yielded is for Jobs and Growth Tax Relief Reconcili- even dozens of roses could blanket this the purpose of debate only. ation Act of 2003 further increased the stench. Mr. Speaker, H. Res. 619 is a modi- AMT exemption amounts. These steps The so-called Middle-Class Alter- fied, closed rule that provides for the provided some relief to families, but native Minimum Tax Relief Act that consideration of H.R. 4227, the Middle- for procedural reasons, the current the House will consider later today is Class Alternative Minimum Tax Relief law’s AMT relief will expire next year just another example of the majority’s Act of 2004. if we do not enact H.R. 4227. While H.R. recklessly irresponsible tax agenda, It provides for one hour of debate in 4227 is a good proposal that deserves not to mention creative naming prac- the House, equally divided and con- our support today because it will help tices. Even at first glance, this bill trolled by the chairman and ranking provide much-needed AMT relief to fails America’s middle class. Folks, it minority member of the Committee on workers, it is increasingly clear to me raises taxes on the middle class. I do Ways and Means. that the current income Tax Code is fa- not know about the rest of my col- H. Res. 619 also provides for the con- tally flawed and in dire need of a fun- leagues, but I have a pretty tough time sideration of the amendment in the na- damental overall. making the argument in the district ture of a substitute printed in the Com- To that end, I have introduced legis- that I am proud to represent that a mittee on Rules report accompanying lation, H.R. 25, that moves the Federal household income between $100,000 and this resolution, if offered by the gen- Government from an income tax-based $200,000 is middle class because in the tleman from New York (Mr. RANGEL) or system to a personal consumption sys- district I represent, the average house- his designee, which shall be considered tem by abolishing all Federal income hold income is barely $31,000. as read, and shall be separately debat- taxes and the IRS and replacing the In that district that I am proud to able for one hour equally divided and Tax Code with a national retail sales represent, $100,000 in household income controlled by the proponent and an op- tax on consumers buying new goods is upper class by any definition; yet ponent. and services. Enacting the Fair Tax this is the income level that the major- It waives all points of order against would, as just one example, solve the ity continues to use as an example the amendment printed in the report AMT problem for all families in the when making the case to eliminate the and provides for one motion to recom- United States. AMT. mit, with or without instructions. Mr. Speaker, I urge my colleagues to b 1045 Mr. Speaker, this is a fair and tradi- join me in supporting this rule so we tional rule for the consideration of leg- may proceed with the debate on the un- The majority maintains that extend- islation amending the Internal Rev- derlying legislation. ing AMT exemptions help the middle enue Code, and I hope that the House Mr. Speaker, I reserve the balance of class. I say it neglects America’s real will approve the rule in order to have my time. middle class. It raises their taxes. If the opportunity to consider the merits Mr. HASTINGS of Florida. Mr. Congress is serious about helping mid- of the underlying consideration. Speaker, I yield myself such time as I dle-class families, then it ought to use The Alternative Minimum Tax was may consume. the $18 billion we are spending on the originally conceived as a means of en- Mr. Speaker, I thank the gentleman AMT extension this year alone and in- suring that the wealthy ‘‘paid their from Georgia (Mr. LINDER) for the vest in the public schools which mid- fair share of taxes’’ in 1969. But, as has time, and I rise today in opposition to dle-class children attend. Congress happened so many times in the past, the underlying bill and the closed rule should use the $18 billion and invest in the law of unintended consequences has providing for its consideration. health insurance for the 8.1 million un- meant that the AMT has produced a Once again, my friends on the Repub- insured middle-class Americans. Fur- very different result. lican side have come to this floor in a thermore, 1-year fixes do not solve our Because the AMT is not currently in- restrictive manner stifling debate be- problems. Over a 10-year period, this dexed to the inflation rate, the number fore it is even allowed to begin. The really will cost us $559 billion. It would of taxpayers falling into the ‘‘AMT majority preaches fairness and inclu- be easier to eliminate the entire in- trap’’ is growing larger and larger siveness while practicing and main- come tax. It would cost us less than every year. In 1970, 19,000 people paid taining an agenda that divides and ob- what the Republicans are proposing the AMT. Today, this number has risen structs. under the AMT provisions that they to over 3 million taxpayers. According The gentleman from Georgia (Mr. offer. to some estimates, approximately 35 LINDER) previously suggested it is a Or if we really want to make a state- million taxpayers will come under the fair rule because it allows for a Demo- ment about our priorities, Congress AMT’s procedures in the next 6 years. cratic substitute. With all due respect should dedicate this $18 billion to the These taxpayers are not wealthy by to the gentleman, this rule is anything transportation reauthorization bill, a any stretch of the imagination. In- but fair, and it is far from open. The bill that a colleague of ours noted last creasingly, the AMT is punishing hard- rule does make in order an amendment week is currently stuck in a Repub- working, middle class families. offered by the gentleman from New lican legislative traffic jam. If we take With this in mind, I wanted to com- York (Mr. RANGEL), the ranking mem- this $18 billion and add it to the nearly mend the gentleman from Connecticut ber on the Committee on Ways and $96 billion that we spent last week in (Mr. SIMMONS) for bringing H.R. 4227 to Means. The Rangel substitute is far eliminating the marriage tax, we have the floor today. This bill extends for 1 more encompassing than the Repub- got ourselves more than 110 billion in

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00006 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.001 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2557 new dollars to invest in America’s ranking member of the Committee on tax deduction, we will attempt to de- transportation and infrastructure. At Rules. feat the previous question. If the pre- the same time, we would be creating (Mr. FROST asked and was given per- vious question is defeated, we will offer some 4.6 million new jobs. Congress mission to revise and extend his rean amendment to the rule allowing for could have the $375 billion transpor- marks.) the consideration of the gentleman tation bill that America needs without Mr. FROST. Mr. Speaker, I thank the from Washington’s proposal to rein- any increase in the gas tax and avoid- gentleman from Florida for yielding state the State sales tax deduction for ing a Presidential veto. Instead, the me this time. those States that do not have a State majority chooses to cut taxes at the The alternative minimum tax was income tax. This may well be the only expense of our national priorities. originally intended to provide fairness chance Members have to take a stand Mr. Speaker, I do not know any tax for all taxpayers by requiring wealthy on this issue. cuts that can teach high school alge- individuals to pay their fair share of I urge my colleagues to vote ‘‘no’’ on bra. I certainly cannot recall ever taxes. Unfortunately, the alternative the previous question so that this meeting a tax cut that could build a minimum tax is affecting more and House may consider reinstating the road. But I do know the Bush adminis- more middle-class families. Middle- sales tax deduction and so our con- tration tax cuts, that 3 years of those class families clearly should not be stituents know where we stand on the have stalemated this body to the point subject to the AMT, and I am glad we issue of reinstating this deduction. that we are unable to adequately ad- are looking at solutions to end this un- Mr. LINDER. Mr. Speaker, I reserve dress long-term unemployment, an in- fairness today. the balance of my time. creasing number of uninsured people, But there is another tax issue that Mr. HASTINGS of Florida. Mr. escalating costs for health care, the affects millions of Americans and that Speaker, I note that all of my Repub- uncertainty of an aging Social Secu- I think deserves the chance to be de- lican colleagues who have such great rity program, and an inadequate trans- bated today, the issue of State sales interest in this AMT are just showing portation system in this great country tax deductibility. Since the sales tax up in great numbers to speak on this of ours. Three years of the Bush admin- deduction was eliminated in 1986, citi- measure. istration tax cuts have resulted in the zens from States that do not have Mr. Speaker, I yield 2 minutes to the largest deficit in the history of Amer- State income taxes, such as my home gentleman from Tennessee (Mr. COO- ica, the greatest decline in household State of Texas, have been unfairly pun- PER). income in nearly 40 years, and an econ- ished. While taxpayers living in States (Mr. COOPER asked and was given per- omy that is showing no immediate that impose an income tax are entitled mission to revise and extend his re- signs of recovery to help the more than to deduct their State income taxes marks.) 8 million unemployed Americans. Most from their Federal tax bill, those living Mr. COOPER. Mr. Speaker, I would important, tax cuts affect our ability in States without income taxes do not urge all of our Members who are from to provide for America’s military. receive an equivalent deduction for the Texas, Washington, Florida, South Da- Let me send a message to President sales tax. The result is that citizens of kota, Tennessee, Nevada, or Wyoming Bush and his minions. We cannot have States like Texas, Florida, Washington to pay close attention. This may be guns and butter and ice cream as they State, and Tennessee are paying more your best time, it may be your only propose. Our country has serious needs. to the IRS than are citizens of other time in your congressional career to Mr. Speaker, the underlying resolution States. get basic Federal income tax fairness neglects all of them. For that reason I do not think this is fair, Mr. Speak- for your State. Let me repeat. If you and that reason alone, Members should er. All taxpayers should be treated are from Texas or Florida or Wyoming stand up against the interests of a few equally regardless of their State’s tax or South Dakota or Tennessee or Wash- at the expense of all. I urge my col- system. A number of Members from ington, this may be your only chance leagues to oppose this closed rule and both sides of the aisle have introduced to get basic tax fairness for the citizens reject the underlying resolution. measures to reinstate the sales tax de- of your State. This is not a partisan Mr. Speaker, I reserve the balance of duction, and I think it is high time issue. This is an issue of basic unfair- my time. ness that has existed in this country Mr. LINDER. Mr. Speaker, I yield that this House consider their pro- since 1986 when the tax laws changed to myself such time as I may consume to posals. Last night in the Committee on deprive the citizens of our States basic comment on the gentleman’s opening Rules, I offered an amendment to the tax fairness. statement. The gentleman from Wash- rule brought forth by the gentleman The citizens of those States I just ington did not show up at the com- AIRD). His named, Texas, Florida, Tennessee, mittee to pursue his proposed amend- from Washington (Mr. B Washington, South Dakota, Nevada, ment. And it is regular order for the amendment would restore fairness to Wyoming, pay more Federal income Committee on Rules not to allow an the Federal tax system by allowing tax per capita than citizens equally po- open amendment process in bills that taxpayers who have no State income sitioned in other States. Why? Because come out of the Committee on Ways taxes to instead deduct their State and our basic tax mechanisms are the sales and Means. local sales taxes. Unfortunately, the Lastly, let me just applaud the gen- Rules Committee majority defeated my tax, not the State income tax, and we tleman for saying we should get rid of amendment. Mr. Speaker, I do not cannot deduct the State sales tax from the IRS. I welcome him as a cosponsor think that is right. This House has de- our Federal income. So this is your on H.R. 25. bated dozens of other tax bills, but the best chance, this is your only chance, Mr. Speaker, I reserve the balance of Republican leadership will not allow and you must vote against the previous my time. this House to debate an issue that pe- question. That idea is anathema to Mr. HASTINGS of Florida. Mr. nalizes millions of American tax- some of our colleagues, but I think we Speaker, I yield myself such time as I payers. need to rise above the petty may consume. Mr. Speaker, this is not a partisan proceduralisms of this House, rise Most respectfully, my friend from issue. It is a matter of fairness. If this above what your House leadership may Georgia has misspoken. If he reads my House is to be presented the tax bill of be telling you or not telling you; and comment, he will understand that I the week for the foreseeable future, I this is a choice to stand up with your said the Baird measure was proposed cannot understand why the Republican people back home or to obey the rules before the Committee on Rules last leadership will not allow the House to of Washington. night. I was there like the gentleman even consider an issue that will provide Let us stand up for our people back from Georgia was. I do know, as a mat- equity for the people of my State and home. Let us get basic tax fairness to ter of fact, the gentleman from New six others. I think the American people our citizens. To do that, you have to York (Mr. ISRAEL) presented the meas- deserve a full and honest debate on this vote against the previous question. ure, and it was not accepted by us. matter. This is not an ordinary vote on a reg- Mr. Speaker, I yield 3 minutes to the Consequently, so that the House ular Wednesday in Washington, D.C. gentleman from Texas (Mr. FROST), the might be allowed to consider the sales This is your best chance, this is your

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00007 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.014 H05PT1 H2558 CONGRESSIONAL RECORD — HOUSE May 5, 2004 only chance to get tax fairness for your goal in assessing value to property was down here and prove to America that people back home. to make sure that no property owner, their provision on the AMT is not a tax Mr. LINDER. Mr. Speaker, I reserve no taxpayer paid an unfair burden in increase on middle class America, yet the balance of my time. comparison to the others. Our Tax they are not using that time. Mr. HASTINGS of Florida. Mr. Code unfairly penalizes those who live Mr. Speaker, I yield three minutes to Speaker, I would urge our colleagues in States where there is no local or the gentleman from Texas (Mr. STEN- who are back in their offices and com- State income tax, which includes my HOLM), my good friend and good stu- mittees to come on down here and ex- State of Texas. Just as I cannot accept dent of this process. plain to the middle class in America discrimination on how our government (Mr. STENHOLM asked and was why this AMT is not a tax increase on treats individuals, I do not want to ac- given permission to revise and extend them. cept discrimination in how our govern- his remarks.) Mr. Speaker, I yield 2 minutes to the ment taxes our citizens across the Mr. STENHOLM. Mr. Speaker, I rise gentleman from Tennessee (Mr. DAVIS). board. My colleague from Washington in strong opposition to the previous Mr. DAVIS of Tennessee. Mr. Speak- State knows this all too well, and that question so the House might be able to er, I compliment my colleague from is why his proposed amendment is so consider the Baird amendment restor- Tennessee for the remarks he has just important and timely, because it re- ing the deduction for sales tax, State made. Having served in the Tennessee stores sales tax deductibility for resi- sales taxes. State legislature in both the House and dents of States with no local or State This is one of those issues that I wish the Senate, one of the issues that was income taxes. the Committee on Ways and Means debated and discussed so often in both As current law stands, residents in would have brought to the floor of the of those chambers, in both the House States with local or State income taxes House 2 years ago. The AMT question and Senate in Tennessee, is how can we can deduct those amounts from their is a very serious question of which bring tax fairness from the Federal Federal taxes. So I ask you, where is there is a lot of concern about. But this level to those of us who live in States the fairness for our hardworking, tax- is not the way to handle it in the bill that only fund education through a paying citizens? Texas is one of nine today and the tax cut of the week, and sales-tax-based revenue stream. Our States with no income tax; and as a re- obviously the lack of participation by Speaker of the Senate was so fond of sult of the 1986 Federal tax reform law, my friends on the majority side shows saying, ‘‘Uncle Sam taxes taxes.’’ In regardless of who wrote it and who how political this is and how substance fact, that is exactly what this Congress voted for it, that does not matter. That is being thrown away. But I want to talk about the State and what this Federal tax structure happened then, today is today. Sales sales tax deduction which was elimi- does to States who choose not to have taxes are not deductible. As a result, we are not treating all taxpayers in nated in 1986. Citizens from States that an income tax. We tax taxes. That is do not have State income taxes such as certainly not what we intend, but that this country equally. Consider this: if Texans could deduct what they pay in my home State of Texas have been un- is the fact. We allow States who impose fairly penalized. While taxpayers living an income tax, either local or on the State and local sales taxes, they could keep more than $700 million. That is a in States that have an income tax are State level, on individuals who live in entitled to deduct their State sales those States a deduction for the tax lot of money. That is money that the hardworking citizens of southeast taxes from federal taxes, folks living in that they pay in State taxes to be de- States without income taxes do not re- ducted from the Federal income tax, Texas and the gulf coast region in my district could use to care for their sen- ceive an equivalent deduction. And my but we do not allow those of us who State is now in the process of increas- live in States such as Tennessee who ior citizens, pay their daily bills, use for unexpected emergencies, or even ing the sales tax on all citizens of choose to manage their governments Texas, which will compound the prob- better, perhaps, than most by not im- help offset our rising cost of school property taxes at home. lem that we are talking about today. posing a tax on income. The result is that citizens of States In this Nation, we tax assets, a per- b 1100 like my State of Texas are paying more son’s home. We tax purchases of food My colleague from Washington’s pro- taxes than are citizens in other States and clothing in the State that I live in posed amendment offers a smart and with identical incomes, and I do not and nonprescription drugs. Other simple fix and lets us remedy one part understand why the Committee on States tax income. We have chosen not of our tax code so we can focus on re- Ways and Means does not take up the to do that. As a result of the tax bill forming the rest of it. This money be- question of tax fairness. that passed in 1986, you are imposing a longs to the residents of Texas, and by The Baird amendment would restore tax on tax for those of us who choose to golly, if all other Americans get to de- fairness to the Federal tax system by manage our States better, perhaps, duct part of their taxes, then Texans allowing taxpayers who have no State than other States. I ask my colleagues should get to keep it as well. Let us income taxes to, instead, deduct their to vote against the previous question. vote against this previous question. State and local taxes. Why not? What Mr. LINDER. Mr. Speaker, I would And this amendment would be limited to just is wrong with that? Why not have a like to just take enough time to re- one year, so it is not a permanent measure— discussion of that on the floor instead mind the gentleman that the 1986 tax I cannot think of anything more reasonable for of the tax cut of the week, which is act was called the Bradley-Gephardt us to consider. purely for political purposes that will bill. After all, that’s what equity is all about, and show up in campaign ads all over the Mr. Speaker, I reserve the balance of since it seems lately that all we are consid- United States as evidenced by the lack my time. ering are tax bills, well then we might as well of participation in the substance of Mr. HASTINGS of Florida. The name consider this one too. that which we are talking about today? of the bill, Mr. Speaker, does not make Mr. LINDER. Mr. Speaker, I reserve I also believe that the fundamental it any more correct. The problem still the balance of my time. bill, if we are going to have to, on the exists. Mr. HASTINGS of Florida. Mr. floor, ought to be paid for. I agree that Mr. Speaker, I yield 2 minutes to the Speaker, how much time remains on this exemption of State sales taxes will gentleman from Texas (Mr. LAMPSON). each side? cost an estimate of $1.2 billion, but it Mr. LAMPSON. Mr. Speaker, I also The SPEAKER pro tempore (Mr. ought to be paid for and it should be want to say it does not matter what KOLBE). The gentleman from Florida paid for in the interest of fairness. you call it. If it is inequity, it is in- (Mr. HASTINGS) has 14 minutes remain- States should be able to decide for equity. If it is not fair, it is not fair. ing, and the gentleman from Georgia themselves whether or not they want That is what I want to talk about this (Mr. LINDER) has 26 minutes remaining. to adopt an income tax instead of being morning in this debate. We have lost Mr. HASTINGS of Florida. Mr. pressured to do so because the Tax the issue of a simple matter of equity Speaker, I yield myself such time as I Code is biased in favor of a State in- and fairness. may consume. come tax instead of a State sales tax. I spent 19 years as a property tax col- Twenty-six minutes for those people What is wrong with that picture? lector in the State of Texas. My whole who believe in this measure to come Why can we not have a serious debate

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00008 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.016 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2559 on this floor about tax reform? Instead With that in mind, it is a confusing dent Ronald Reagan. However, tax- of just talking about it in campaign set of circumstances that is a 1-year payers in those States with a State in- slogans, which we do, flat tax, et fix. If you think so much of it, why did come tax still retain the ability to de- cetera, a fundamental question, why you stay in your offices and not come duct those taxes. The loss of the State can the Committee on Ways and Means down here and explain to the American sales tax option was particularly tough not take up the bill that they bring to public why the middle class will not ex- for taxpayers in States with no income the floor today and have a serious dis- perience a tax increase over the haul of tax like my own State of Florida. cussion of that within the committee? 10 years? What you do is you reduce the As a result, people in my State and Why not let Members in a bipartisan income taxes, then you eliminate the others similarly situated pay more way participate in these issues? In- AMT on one hand and you take from taxes than people with identical tax- stead, it is a campaign issue. If they the right hand and give to the left able incomes in States that have a want a campaign issue, this is a cam- hand. State income tax. It is very important paign issue. To correct my friend from Georgia, that we equalize the tax relief for citi- In Texas, the inability of Texans to who will have the last word on this zens in those States without the State deduct sales taxes should be an issue subject, correctly so, because he and income taxes. on the hearts and minds of every single his Members are in the majority, let Let me emphasize that a ‘‘no’’ vote Texan, and the vote on the previous me give him a summary of the motion on the previous question will not stop question will clearly identify in this that he brought to the House of Rep- consideration of H.R. 4227, the Middle- body who is in favor of fairness and resentatives. It says ‘‘Providing for Class Alternative Minimum Tax Relief who is not. Consideration of H.R. 4227, Middle- bill. But it will allow the House to vote Vote against the previous question. Class Alternative Minimum Tax Relief on reinstating the sales tax deduction Allow fairness to be discussed on the Act of 2004, Mr. LINDER, from the Com- option and correct the current tax in- House floor. mittee on Rules, submitted the fol- equity. But a ‘‘yes’’ vote will block Mr. LINDER. Mr. Speaker, I reserve lowing.’’ Members from an up or down vote on the balance of my time. I shall not read the entire report, but this important tax relief. Mr. HASTINGS of Florida. Mr. since he took it upon himself to say Again, I urge a ‘‘no’’ vote on the pre- Speaker, I yield myself such time as I that the Baird measure was not before vious question. may consume. us, I shall only refer to the language of Mr. Speaker, I ask unanimous con- Mr. Speaker, by continuing the ex- the motion offered by the gentleman sent that the text of the amendment be emption for another year, 1 year, Re- from Texas (Mr. FROST) last night printed in the RECORD immediately publicans are incrementally trying to when the gentleman from Georgia (Mr. prior to the vote on the previous ques- postpone the day of reckoning with the LINDER) and I were in the Committee tion. AMT. At some point a decision will on Rules. The SPEAKER pro tempore. Is there have to be made to, number one, repeal ‘‘Summary of motion: To make in objection to the request of the gen- some of President Bush’s tax cuts or, order and provide the appropriate waiv- tleman from Florida? number two, index the AMT for infla- ers for the amendment offered by Rep- There was no objection. tion at a cost of roughly $370 billion or, resentative BAIRD.’’ Do not challenge Mr. HASTINGS of Florida. Mr. number three, eliminate the AMT alto- me when I say that that was what was Speaker, I yield back the balance of gether at a cost of $600 billion without brought to us. That measure was de- my time. the Bush tax cuts, or $900 billion if feated six to five by the majority, and The material previously referred to President Bush’s tax cuts remain be- I say today we have a chance to rem- by Mr. HASTINGS of Florida is as fol- yond 2010. edy that problem if Members, particu- lows: What I just said is a part of inside larly those from Florida, were to see In the resolution strike ‘‘and (3)’’ and in- baseball that at best we could feed to my Republican colleagues from Florida sert the following: the goats the language that we employ come down here and say that this is ‘‘(3) the amendment printed in Sec. 2 of this here. The mythical Ms. Johnson and not a sound measure when all we have resolution if offered by Representative Baird Jane and Joe Lunch Bucket understand is a sales tax and right up the street of Washington or a designee, which shall be only one thing and one thing only, that somebody else with an income tax can in order without intervention of any point of we need to have a debate on how it af- deduct it from their Federal tax offer- order, shall be considered as read, and shall fects them. No one comes into my of- separately debatable for 30 minutes equally ing and we are unable to do this so. divided and controlled by the proponent and fice talking about an AMT. But people Fair is fair. This measure is not fair. an opponent; and (4)’’ come into my office talking about Mr. Speaker, I will be asking Mem- SEC. 2. The amendment referred to in (3) health care. People come into the of- bers to vote ‘‘no’’ on the previous ques- follows: fice of our all of us talking about edu- tion. If the previous question is de- At the end of the bill insert the following cation. People come to our offices to feated, I will offer an amendment to new section: talk about supporting the military in the rule that will allow the House to SEC. 3. DEDUCTION OF STATE AND LOCAL GEN- an adequate fashion. And countless, vote on the Baird sales tax equity ERAL SALES TAXES IN LIEU OF STATE AND LOCAL INCOME TAXES. thousands, of Americans come to us amendment that was offered in the (a) IN GENERAL.—Subsection (b) of section talking about either being uninsured or Committee on Rules last night but not 164 of the Internal Revenue Code of 1986 (re- needing to have incentives for small allowed by the Republican leadership. I lating to definitions and special rules) is businesses. And yet we find ourselves think Members deserve an opportunity amended by adding at the end the following: unable to have a discussion in this to vote on this important amendment. ‘‘(5) GENERAL SALES TAXES.—In the case of House of Representatives that is mean- I want to point out that this is not a taxable years beginning during 2004, for pur- ingful as far as economics are con- partisan amendment. It has support poses of subsection (a)— cerned. What we get are campaign gim- from both sides of the aisle as was dem- ‘‘(A) ELECTION TO DEDUCT STATE AND LOCAL SALES TAXES IN LIEU OF STATE AND LOCAL IN- micks and fancy names of things that onstrated in the Committee on Rules COME TAXES.— do not become the law. vote yesterday. ‘‘(i) IN GENERAL.—At the election of the This measures has passed the House The Baird amendment would allow taxpayer for the taxable year, subsection (a) of Representatives before. If the Amer- taxpayers who itemize their deductions shall be applied— ican people wanted it to be law, they the option to deduct their State in- ‘‘(I) without regard to the reference to would be in our offices saying they come tax or sales taxes paid in a given State and local income taxes, want this to be the law. We cannot get year. The option for deduction of sales ‘‘(II) as if State and local general sales ten people in most of our communities taxes was available to taxpayers until taxes were referred to in a paragraph there- to write a decent paragraph on what 1986 when it was eliminated. The gen- of, and ‘‘(III) without regard to the last sentence. INDER the alternative minimum tax really is. tleman from Georgia (Mr. L ) said ‘‘(B) DEFINITION OF GENERAL SALES TAX.— I dare say we could not get a whole lot that the gentleman from Missouri’s The term ‘general sales tax’ means a tax im- of Members of the House to do like- (Mr. GEPHARDT) name was on that. I re- posed at one rate with respect to the sale at wise. mind him that it was signed by Presi- retail of a broad range of classes of items.

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00009 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.019 H05PT1 H2560 CONGRESSIONAL RECORD — HOUSE May 5, 2004 ‘‘(C) SPECIAL RULES FOR FOOD, ETC.—In the and pass the previous question, pass Rogers (AL) Shuster Toomey case of items of food, clothing, medical sup- the rule, and get on with the debate on Rogers (KY) Simmons Turner (OH) plies, and motor vehicles— Rogers (MI) Simpson Upton the bill, which is the extension of the Rohrabacher Smith (MI) ‘‘(i) the fact that the tax does not apply Vitter AMT exclusion. Ros-Lehtinen Smith (NJ) with respect to some or all of such items Walden (OR) Mr. Speaker, I yield back the balance Royce Smith (TX) Wamp shall not be taken into account in deter- Ryan (WI) Souder of my time, and I move the previous Weldon (FL) mining whether the tax applies with respect Ryun (KS) Stearns Weldon (PA) Saxton Sullivan to a broad range of classes of items, and question on the resolution. Weller Schrock Sweeney ‘‘(ii) the fact that the rate of tax applicable The SPEAKER pro tempore. The Whitfield Sensenbrenner Tancredo with respect to some or all of such items is Wicker question is on ordering the previous Sessions Taylor (NC) lower than the general rate of tax shall not question. Shadegg Terry Wilson (NM) be taken into account in determining wheth- Wilson (SC) The question was taken; and the Shaw Thomas er the tax is imposed at one rate. Shays Thornberry Wolf ‘‘(D) ITEMS TAXED AT DIFFERENT RATES.— Speaker pro tempore announced that Sherwood Tiahrt Young (AK) Except in the case of a lower rate of tax ap- the ayes appeared to have it. Shimkus Tiberi Young (FL) plicable with respect to an item described in Mr. HASTINGS of Florida. Mr. NAYS—201 subparagraph (C), no deduction shall be al- Speaker, I object to the vote on the lowed under this paragraph for any general Abercrombie Gutierrez Napolitano ground that a quorum is not present Ackerman Harman Neal (MA) sales tax imposed with respect to an item at and make the point of order that a a rate other than the general rate of tax. Alexander Hastings (FL) Oberstar quorum is not present. Allen Hill Obey ‘‘(E) COMPENSATING USE TAXES.—A compen- Andrews Hinchey Olver sating use tax with respect to an item shall The SPEAKER pro tempore. Evi- Baca Hinojosa Ortiz be treated as a general sales tax. For pur- dently a quorum is not present. Baird Hoeffel Owens poses of the preceding sentence, the term The Sergeant at Arms will notify ab- Baldwin Holden Pallone ‘compensating use tax’ means, with respect sent Members. Becerra Holt Pascrell Bell Honda Pastor to any item, a tax which— Pursuant to clause 9 of rule XX, the ‘‘(i) is imposed on the use, storage, or con- Berkley Hooley (OR) Payne Chair will reduce to 5 minutes the min- Berman Hoyer Pelosi sumption of such item, and imum time for electronic voting, if or- Berry Inslee Peterson (MN) ‘‘(ii) is complementary to a general sales Bishop (GA) Israel Pomeroy tax, but only if a deduction is allowable dered, on the question of adoption of Bishop (NY) Jackson (IL) Price (NC) under this paragraph with respect to items the resolution. Blumenauer Jackson-Lee Rahall sold at retail in the taxing jurisdiction The vote was taken by electronic de- Boswell (TX) Rangel which are similar to such item. Boucher Jefferson Reyes vice, and there were—yeas 220, nays Brady (PA) John Rodriguez ‘‘(F) SPECIAL RULE FOR MOTOR VEHICLES.— 201, not voting 12, as follows: Brown (OH) Johnson, E. B. Ross In the case of motor vehicles, if the rate of [Roll No. 142] Brown, Corrine Jones (OH) Rothman tax exceeds the general rate, such excess Capps Kanjorski Roybal-Allard shall be disregarded and the general rate YEAS—220 Capuano Kennedy (RI) Ruppersberger shall be treated as the rate of tax. Aderholt Dunn Kirk Cardin Kildee Rush ‘‘(G) SEPARATELY STATED GENERAL SALES Akin Ehlers Kline Cardoza Kilpatrick Ryan (OH) TAXES.—If the amount of any general sales Bachus Emerson Knollenberg Carson (IN) Kind Sabo ´ tax is separately stated, then, to the extent Baker English Kolbe Carson (OK) Kleczka Sanchez, Linda Ballenger Everett LaHood Case Kucinich T. that the amount so stated is paid by the con- Chandler Lampson Sanchez, Loretta sumer (other than in connection with the Barrett (SC) Feeney Latham Bartlett (MD) Ferguson LaTourette Clay Langevin Sanders consumer’s trade or business) to the seller, Bass Flake Leach Clyburn Lantos Sandlin such amount shall be treated as a tax im- Beauprez Foley Lewis (CA) Conyers Larsen (WA) Schakowsky posed on, and paid by, such consumer. Bereuter Forbes Lewis (KY) Cooper Larson (CT) Schiff ‘‘(H) AMOUNT OF DEDUCTION TO BE DETER- Biggert Fossella Linder Costello Lee Scott (GA) Cramer Levin Scott (VA) MINED UNDER TABLES.— Bilirakis Franks (AZ) LoBiondo Bishop (UT) Frelinghuysen Lucas (OK) Crowley Lewis (GA) Serrano ‘‘(i) IN GENERAL.—The amount of the de- Cummings Lipinski Sherman duction allowed under this paragraph shall Blackburn Gallegly Manzullo Blunt Garrett (NJ) McCotter Davis (AL) Lofgren Skelton be determined under tables prescribed by the Boehlert Gerlach McCrery Davis (CA) Lowey Slaughter Secretary. Boehner Gibbons McHugh Davis (FL) Lucas (KY) Smith (WA) ‘‘(ii) REQUIREMENTS FOR TABLES.—The ta- Bonilla Gilchrest McInnis Davis (IL) Lynch Snyder bles prescribed under clause (i)— Bonner Gillmor McKeon Davis (TN) Majette Spratt ‘‘(I) shall reflect the provisions of this Boozman Gingrey Mica DeFazio Maloney Stark Bradley (NH) Goode Miller (FL) DeGette Markey Stenholm paragraph, Delahunt Marshall Strickland ‘‘(II) shall be based on the average con- Brady (TX) Goodlatte Miller (MI) Brown (SC) Goss Miller, Gary DeLauro Matheson Stupak sumption by taxpayers on a State-by-State Brown-Waite, Granger Moran (KS) Deutsch Matsui Tanner basis, as determined by the Secretary, tak- Ginny Graves Murphy Dicks McCarthy (MO) Tauscher ing into account filing status, number of de- Burgess Green (WI) Musgrave Dingell McCarthy (NY) Taylor (MS) pendents, adjusted gross income, and rates of Burns Gutknecht Myrick Doggett McCollum Thompson (CA) State and local general sales taxation, and Burr Hall Nethercutt Dooley (CA) McDermott Thompson (MS) Burton (IN) Harris Neugebauer Doyle McGovern Tierney ‘‘(III) need only be determined with respect Edwards McIntyre Towns to adjusted gross incomes up to the applica- Buyer Hart Ney Calvert Hastings (WA) Northup Emanuel McNulty Turner (TX) ble amount (as determined under section Camp Hayes Norwood Engel Meehan Udall (CO) 68(b)).’’. Cannon Hayworth Nunes Eshoo Meek (FL) Udall (NM) (b) EFFECTIVE DATE.—The amendments Cantor Hefley Nussle Etheridge Meeks (NY) Van Hollen ´ made by this section shall apply to taxable Capito Hensarling Osborne Evans Menendez Velazquez years beginning after December 31, 2003. Carter Herger Ose Farr Michaud Visclosky Castle Hobson Otter Fattah Millender- Waters Amend the title so as to read: ‘‘A bill to Ford McDonald Watson amend the Internal Revenue Code of 1986 to Chabot Hoekstra Oxley Chocola Hostettler Paul Frank (MA) Miller (NC) Watt extend to 2005 the alternative minimum tax Coble Houghton Pearce Frost Miller, George Waxman relief available in 2003 and 2004 and to allow Cole Hulshof Pence Gephardt Mollohan Weiner a temporary election to deduct State and Collins Hunter Peterson (PA) Gonzalez Moore Wexler local general sales taxes in lieu of deducting Cox Hyde Petri Gordon Moran (VA) Woolsey State and local income taxes.’’. Crane Isakson Pickering Green (TX) Murtha Wu Grijalva Nadler Wynn Mr. LINDER. Mr. Speaker, I yield Crenshaw Issa Pitts Cubin Istook Platts NOT VOTING—12 myself such time as I may consume. Culberson Jenkins Pombo I merely point out that the majority Cunningham Johnson (CT) Porter Ballance DeMint Reynolds party will be here to discuss the merits Davis, Jo Ann Johnson (IL) Portman Barton (TX) Filner Solis Davis, Tom Johnson, Sam Pryce (OH) Bono Greenwood Tauzin of the bill. The last debate has been on Deal (GA) Jones (NC) Putnam Boyd Kaptur Walsh the rule, irrespective of the debate we DeLay Keller Quinn heard from the other side, which was Diaz-Balart, L. Kelly Radanovich 1139 neither on the rule nor on anything in Diaz-Balart, M. Kennedy (MN) Ramstad b Doolittle King (IA) Regula the rule nor on the merits of the bill. Dreier King (NY) Rehberg Messrs. MARKEY, RAHALL, So I will urge my colleagues to come Duncan Kingston Renzi DELAHUNT, HOEFFEL, SPRATT,

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00010 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.005 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2561 MOLLOHAN, THOMPSON of Mis- order to consider an amendment in the colleagues, including the gentleman sissippi, and OBEY, and Ms. CARSON nature of a substitute printed in House from Louisiana (Mr. MCCRERY), a fel- of Indiana and Mrs. JONES of Ohio Report 108–477, if offered by the gen- low member of the Committee on Ways changed their vote from ‘‘yea’’ to tleman from New York (Mr. RANGEL) or and Means, to form a Zero AMT Cau- ‘‘nay.’’ his designee, which shall be considered cus. We will have our day; but in order Mrs. CUBIN changed her vote from read, and shall be debatable for 1 hour, to get there, we need to pass this bill ‘‘nay’’ to ‘‘yea.’’ equally divided and controlled by the today on behalf of working families. So the previous question was ordered. proponent and an opponent. Mr. Speaker, I reserve the balance of The result of the vote was announced The gentleman from Pennsylvania my time. as above recorded. (Mr. ENGLISH) and the gentleman from Mr. RANGEL. Mr. Speaker, I yield Stated against: New York (Mr. RANGEL) each will con- myself such time as I may consume. Mr. FILNER. Mr. Speaker, on rollcall No. trol 30 minutes. 142, I was unavoidably detained, and I missed The Chair recognizes the gentleman Mr. Speaker, let me join in with the the vote. Had I been present, I would have from Pennsylvania (Mr. ENGLISH). gentleman from Pennsylvania in trying voted ‘‘nay.’’ Mr. ENGLISH. Mr. Speaker, I yield to work to eliminate this burden that Mr. BALLANCE. Mr. Speaker, I was not myself such time as I may consume. has been placed on people that it was present for rollcall vote No. 142. Had I been Mr. Speaker, today the House will never intended to penalize. But, Mr. present, I would have voted ‘‘nay.’’ consider one of the most important Speaker, before we can work together Ms. SOLIS. Mr. Speaker, during rollcall vote bills from the standpoint of tax equity on this issue, the issue has to come be- No. 142 on previous question on H. Res. 619, that we will consider this year, the fore our committee. Is that not a novel I was unavoidably detained. Had I been Middle-Class Alternative Minimum idea, a tax bill coming before the Com- present, I would have voted ‘‘no.’’ Tax Relief Act, a bill to make sure that mittee on Ways and Means? The SPEAKER pro tempore (Mr. the tax cuts which allowed middle- KOLBE). The question is on the resolu- class families to keep more of their in- b 1145 tion. come over the past 3 years will not be The resolution was agreed to. undermined by the Alternative Min- Why is it that we yield our authority, A motion to reconsider was laid on imum Tax. our jurisdiction to the Committee on the table. There is little dispute, certainly none Rules? Is this not something that Mr. ENGLISH. Mr. Speaker, pursuant outside of this Chamber, that the Re- should not be a partisan issue? Is this to House Resolution 619, I call up the publican tax cuts helped families cope bill, this AMT, not adversely affecting bill (H.R. 4227) to amend the Internal with economic uncertainties and Democrats and Republicans and lib- Revenue Code of 1986 to extend to 2005 played a significant role in stimulating erals and conservatives? Why do we the alternative minimum tax relief the economic growth that we are see- have to, in the middle of the night, available in 2003 and 2004 and to index ing today. But if we do not act now to shift this over to the Committee on such relief for inflation, and ask for its give the taxpayers another year of re- Rules and then come to the House floor immediate consideration. prieve, the AMT will suddenly reappear and say we want to spend $167 billion to The Clerk read the title of the bill. and 11 million taxpayers will be hit go into debt but we only want to do it The SPEAKER pro tempore. Pursu- with an average tax increase of $1,520. for 1 year? That is truly unfair. ant to House Resolution 619, the bill is Mr. Speaker, by preventing middle- Why do you give away tax relief for considered read for amendment. class Americans from claiming their the marriage penalty and then take it The text of H.R. 4227 is as follows: rightful exceptions from tax liability, back away with the alternative min- H.R. 4227 the AMT punishes families with chil- imum tax? Why do we have this sloppy Be it enacted by the Senate and House of Rep- dren or those who live in high tax lo- way to develop a Tax Code that is so resentatives of the United States of America in calities. If we do not act, married cou- complicated that it takes hours for Congress assembled, ples will see their AMT exceptions snap people to try to get the benefits that SECTION 1. SHORT TITLE. back from a threshold of $58,000 to we say we are giving to them? This Act may be cited at the ‘‘Middle-Class $45,000. Single individuals will see their So what I am saying to my friend Alternative Minimum Tax Relief Act of AMT exception drop from $40,250 to from Pennsylvania, please do not tell 2004’’. $33,750. us how you have got to struggle to SEC. 2. EXTENSION OF ALTERNATIVE MINIMUM Mr. Speaker, let us be clear about make this permanent. Tell us how we TAX RELIEF TO 2005. this. These are not wealthy people. can get the jurisdiction back in the (a) IN GENERAL.—Subparagraphs (A) and These are middle-class Americans who Committee on Ways and Means. (B) of section 55(d)(1) of the Internal Revenue would be slapped with a steep tax hike Code of 1986 are each amended by striking It would be wonderful if you were ‘‘and 2004’’ and inserting ‘‘, 2004, and 2005’’. that they would not know about until saying that we were going to schedule (b) INFLATION ADJUSTMENT.—Subsection (d) tax day, when they learn that the tax hearings on this so witnesses can come of section 55 of such Code is amended by in- exemptions that they thought they forward. And while you are doing that, serting after paragraph (3) the following new could take, the same tax exemptions would you please tell the American paragraph: we intended for them to take and told people whether they are providing this ‘‘(4) INFLATION ADJUSTMENT.— them we were giving them, would no ‘‘(A) IN GENERAL.—In the case of any tax- tax relief at the expense of the debt longer apply. that they are giving their children and able year beginning in calendar year 2005, For example, a family of four with a the $58,000 amount contained in paragraph grandchildren. (1)(A) and the $40,250 amount contained in household income of $58,000 would, in 2005, be hit with the AMT. I am sure Would it not be good to know how paragraph (1)(B) shall each be increased by you intend to pay for this? Where do an amount equal to— that no one here would seriously argue ‘‘(i) such dollar amount, multiplied by that that family is wealthy. we get the $17 billion? Do we take it ‘‘(ii) the cost-of-living adjustment deter- Today, the House has the oppor- away from DOD as we fight in Iraq? Do mined under section 1(f)(3) for the calendar tunity, indeed, the duty, to extend we take it away from homeland secu- year in which the taxable year begins, deter- AMT relief for 1 year and to ensure rity or do we borrow it so the Chinese mined by substituting ‘2003’ for ‘1992’ in sub- that middle-class Americans are not can buy our debt? paragraph (B) thereof. faced with an increase in their tax li- I do not know. I am 74 so it may not ‘‘(B) ROUNDING.—Any increase determined under subparagraph (A) which is not a mul- ability; and we must do this without be my problem, but it may be the prob- tiple of $50 shall be rounded to the next low- raising taxes someplace else and sti- lem of our children and our grand- est multiple of $50.’’. fling growth and killing jobs. children, as we give relief, which we (c) EFFECTIVE DATE.—The amendments Mr. Speaker, this is an important should give on a permanent basis in made by this section shall apply to taxable measure to buy us time to truly reform one hand, and then we take it back years beginning after December 31, 2004. the AMT and, as I hope, to repeal this from our children and our grand- The SPEAKER pro tempore. After 1 regressive tax entirely. I have taken it children. This is no place to legislate hour of debate on the bill, it shall be in upon myself to work with a number of this complex legislation.

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00011 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.023 H05PT1 H2562 CONGRESSIONAL RECORD — HOUSE May 5, 2004 I just hope that no matter what hap- that are the backbone of our economy. do something about it, and they have pens at the end of this year, that some- It is private citizens, not the Federal done that while they were busily help- body has the guts to say that tax legis- Government, that create this Nation’s ing their friends at the top who were lation should come from the Com- wealth and pay this Nation’s taxes. If not paying taxes anyway. mittee on Ways and Means and not the we do not act today, nearly eight mil- Now, this bill is another, as I say, distinguished Committee on Rules. lion middle class taxpayers will suffer Band-Aid. We have an alternative Mr. Speaker, I reserve the balance of from our inaction. That is unconscion- which will be offered by one of my col- my time. able and I urge my colleagues to sup- leagues from Massachusetts which Mr. Speaker, I ask unanimous con- port this legislation. solves the problem in a much more rea- sent that the gentleman from Wash- Mr. MCDERMOTT. Mr. Speaker, I sonable way and gets the middle class ington (Mr. MCDERMOTT) be allowed to yield myself 5 minutes. out of this tax trap. control the remainder of my time. Mr. Speaker, this is one of those days Mr. Speaker, the following is an arti- The SPEAKER pro tempore (Mr. when we come out here and try to fix a cle from the Seattle Post-Intelligencer KOLBE). Is there objection to the re- problem the Republicans created for which describes this whole program. quest of the gentleman from New themselves. Ever since you have been [From the Seattle Post-Intelligencer, Jan. York? in charge of this place, you did not 17, 2004] There was no objection. want to have regular order. You want- GET READY FOR THE ALTERNATIVE MINIMUM Mr. ENGLISH. Mr. Speaker, I yield ed to run bills through the committees TAX myself 15 seconds. without having any witnesses come in (By Mary Deibel) Mr. Speaker, I note that this issue and talk about them. You would not Few Americans have heard of the alter- has come up repeatedly before the listen to what people said to you. And native minimum tax, but many taxpayers Committee on Ways and Means. The are about to find out that it’s the biggest fi- Committee on Ways and Means has re- now you have a big problem on your hands and you want to come out again nancial setback they face, an IRS taxpayer peatedly worked its will on this issue advocate says. and it has made very clear that it is today and put one more Band-Aid on a ‘‘Although the AMT was originally enacted committed to this kind of exemption. program that you put a Band-Aid on to prevent wealthy taxpayers from avoiding The Committee on Ways and Means is last year, and you will be back next tax liability through the use of tax avoid- clearly in the loop in this. year and next year and next year be- ance techniques, it now affects substantial Mr. Speaker, I yield 3 minutes to the cause you never understood what you numbers of middle-income taxpayers and were doing. will, absent a change of law, affect more gentleman from Illinois (Mr. CRANE), a than 30 million taxpayers by 2010,’’ taxpayer distinguished member of the Com- Now, when this bill went into effect in 1987, it was designed to tax those advocate Nina Olson said in her 508-page an- mittee on Ways and Means. nual report naming this parallel tax system Mr. CRANE. Mr. Speaker, I thank people who made lots of money and taxpayer enemy No. 1. the gentleman for yielding me time. paid not one penny. That is what it was Olson should know: State and local taxes Mr. Speaker, in 1969 Congress enacted about. It affected .1 percent of the pay- pushed her into the alternative minimum the individual alternative minimum ers in this country. And the same was tax last year so now it is personal as well as tax, AMT. The purpose of this tax was true even with the adjustments that we professional for her. And it’s about to get personal for lots of to require that all taxpayers pay some made in 1993 when I was here. The numbers were essentially the same, other taxpayers, too. Absent action by Con- tax on their income. We can have a de- gress and President Bush, one in four house- bate about the merits, or lack thereof, around .2 percent of taxpayers. Today holds will owe the alternative minimum tax of the AMT and I hope that in time we we are looking at 25 percent of the peo- by 2010. will. ple in this country are having to figure Some 52 percent of them will be families Many of the provisions of the Tax their taxes twice, because the Repub- making $100,000 or less a year, including 73 Code that gave rise to the AMT do not licans made all those tax cuts in 1997 percent of households making $75,000 to exist today and have not existed for and paid absolutely no attention to $100,000 and 37 percent making $50,000 to $75,000. many years. However, today a more what was going on. Married couples—especially couples with immediate issue confronts us. Mr. If you live in a high tax State like lots of children—are most apt to be hit by Speaker, the Clinton tax increase of New York or like California or like a the alternative minimum tax, which pro- 1993 increased the AMT tax rate but lot of the progressive States in this hibits deductions for dependents along with failed to adjust the exemption numbers country, and you have a couple of kids, write-offs for mortgage interest, state and for inflation. As a result of this tax in- you cannot deduct the money you pay local taxes, medical expenses and the like. crease, millions of American families, in State taxes. You cannot deduct the ‘‘It’s a class tax that became a mass tax,’’ money you pay in local taxes. You can- says Urban Institute economist Len Burman, middle income families are forced to who co-authored the study projecting the fu- pay the AMT each year. not deduct the deductions for your ture growth of the alternative minimum tax President Bush’s 2001 and 2003 tax re- children. That is why it is sweeping unless the tax code is changed. lief bills increase the AMT exemption down into the middle class. Half of the Congress enacted the tax in 1969 after amount from $45,000 to $58,000 for mar- households who will be paying this tax being flooded with mail protesting reports ried couples and from $33,750 to $40,250 are making less than $100,000 a year that 155 ultra-rich Americans gamed the sys- for single individuals. These increases and over a third of them will be paying tem to avoid paying a penny toward income ensure that the AMT is the result of between 50 and $75,000. tax. Now, consider we made these great The alternative tax has been on the books the tax relief provided in the 2001 and since then, never indexed to inflation the 2003 tax relief laws do not hit middle big tax cuts, we gave $112,000 to people way regular income taxes have been since income families. However, if we do not making more than a million and we 1981. act now, this relief will expire at the gave $676 to people in the average in- The tax breaks President Bush and Con- end of this year. As time goes on and as come range in this country. And then gress enacted since 2001 expanding child tax inflation and costs increase, the num- we turn around and slap them with the credits, ‘‘marriage penalty’’ relief and the ber of taxpayers subject to the AMT in- AMT tax. Most Americans do not know like make it more likely taxpayers who try what the AMT is. It is called, for those to claim these write-offs will owe the alter- creases. native minimum tax. If we do not act, over one million sin- of you watching this on television in- The 2003 tax cut contains a temporary pro- gle filers and seven million married fil- cluding somebody at the White House vision that will help many families avoid the ers will be caught up in the AMT. The maybe, alternative minimum tax. It alternative minimum tax for just one year. legislation before us today will extend means if you are not paying enough in- Repealing the tax through 2010 would cost the 2003 tax relief through 2005 and will come tax, then you have to pay this al- the Treasury $600 billion in revenue, accord- adjust the exemption amount for infla- ternative. ing to the non-partisan Tax Policy Center, a Now, what has happened because the Washington think tank. tion. Single filers earning up to $40,900 Meanwhile, taxpayer advocate Olson says and married couples earning up to Republicans messed it up so badly, taxpayers who might owe the alternative $58,950 will be exempt from the AMT. they have now swept up about a quar- minimum tax can expect to pay a higher tax Mr. Speaker, millions of middle class ter of the taxpayers in the country bill and spend an extra 12 hours preparing Americans run the small businesses with it rising to a third if they do not their 2003 taxes.

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00012 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.027 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2563 Many won’t owe it, but they still must Mrs. LOWEY. Mr. Speaker, I rise brackets. She did not say wealthy tax- spend the extra half-day on the paperwork, today on behalf of the more than 2 mil- payers, but simply taxpayers. In fact, she says. lion taxpayers who are unfairly bur- middle-class families with children are Mr. Speaker, the average citizen in dened by the alternative minimum tax. becoming increasingly liable to come this country is not aware what is hap- As we know and it was explained under the AMT for several reasons. pening; and the Republicans are out today, it was designed in 1969 to ensure First, the baseline exemptions in this here today, the reason they do not that the wealthiest Americans would tax were never exempted for inflation. want to have hearings in the com- still pay a fair share of taxes. The AMT So as more and more Americans have mittee is it might get on CSPAN. Some now ensnares many middle income entered into the middle class over the people might find out what was really Americans in what was once envisioned past 25 or 30 years, they have outrun going on in the tax structure. But, no, as an alternative minimum tax has be- the exemption and, therefore, fallen we have to come out here, take it up to come nothing short of a mandatory into the AMT trap. the Committee on Rules in the middle maximum tax. And those it sought to Secondly, the AMT has begun to fall of the night, slip it down on the floor; protect have become its greatest vic- especially hard on middle-class fami- and slam, bam, thank you, ma’am, it is tims. lies with children, the very people we out of here in an hour so that people Let us be clear on what the AMT is in this body have aimed to help, not will not know how badly you have not. It is not a technicality of signifi- hurt, with our tax laws. These Ameri- messed it up for the middle class. cans work hard, they play by the rules, You have got to put these commer- cance to only a few bureaucrats and they pay their taxes year after year cials on that say the middle class have the tax intelligentsia. It is not a mere benefited immensely from our tax cuts, glitch, the repair of which would only and are now sending more of their and then you run out here to take the help a handful of disproportionately earnings to the Federal Government pain away that you are creating for rich individuals. It is a system that af- because this tax does not allow them to them. And in my view, it could all be fects 2.4 million families this year. A take the standard deduction for mar- stopped if you simply would follow the system that, if left unchecked, will af- ried couples, and it does not allow regular order and allow this to be a de- fect nearly 75 percent of families mak- them to enjoy individual exemptions bate in this House and about the issues ing $75,000 to $100,000. It is a system for themselves and their children. that you are changing. To go from .1 that, in my district, can cost an indi- What is more, as my colleague from percent of the taxpayers to 25 percent vidual making a good living, but not a New York has indicated, high-tax of the taxpayers, including people lavish living and taking itemized de- States such as New York and Con- making between 50 and $75,000 without ductions, thousands of dollars more in necticut are much more likely to be letting people ever, their representa- taxes each year. caught because the State, local, and tives in the Congress, to have an oppor- In 2008, a family making over $50,000 personal property taxes are not deduct- tunity to explain that to the American with three children would be affected. ible. Connecticut is the most taxed people, is absolutely unacceptable. Any family with one child or more, State in the Nation; and this year, We will all vote for this bill, but it is 60,000 would be affected. around April 15, I heard from many of another Band-Aid; and you will be back my constituents about the AMT tax. b 1200 here next year. I bet you a month of Just last week, on a radio call-in my salary on that. Although I am pleased to see bipar- show, I heard from a constituent, Rose Mr. Speaker, I reserve the balance of tisan support to act to ameliorate the Curran. She called in to complain my time. AMT, these temporary remedies will about the AMT. Rose and her husband, Mr. ENGLISH. Mr. Speaker, I yield 1 only be as valuable as the permanent Dan, did not have to pay it this year, minute to the distinguished gentleman solutions developed in the interim. but they anticipate that if we do not from Florida (Mr. SHAW), a member of These measures have the potential to act they will pay it in the next couple the Committee on Ways and Means. help millions of families this year, but of years. Mr. SHAW. Mr. Speaker, I thank the we must work together to crack the Rose is a retired State employee gentleman for yielding me time. system that protects all hardworking whose only income is Social Security. To listen to the gentleman from Americans going forward. Dan is a Vietnam veteran, disabled, a Washington (Mr. MCDERMOTT) you I support the fiscally responsible retired sailor from the U.S. Navy who would think that the Republicans are Rangel substitute and urge my col- now works as a civilian at the sub- the ones that invented this tax. This leagues to help put an end to the in- marine base in Groton. I do not con- was put in in the 1980s and under a equities of the alternative minimum sider Rose and Dan Curran what I Democrat Congress. tax. would call wealthy or rich people. They Also, I would like to remind the gen- Mr. ENGLISH. Mr. Speaker, it is a tleman from Washington (Mr. do not either, and yet they are con- great privilege for me to yield 4 min- cerned that if Dan keeps working at MCDERMOTT) that in 1993, I believe utes to the gentleman from Con- without a single Republican vote, the the submarine base they will fall into necticut (Mr. SIMMONS), the prime rate was increased. We are trying now this trap. sponsor of this legislation and a real to roll some of this back. Is it enough? This is one of the reasons why I in- No, it is not enough. We need to do advocate for middle-class taxpayers. troduced the Middle-Class Alternative more. In fact, we need to kill this thing (Mr. SIMMONS asked and was given Minimum Tax Relief Act of 2004, to ex- entirely, but until we can find the rev- permission to revise and extend his re- tend through 2005 the AMT relief pro- enue, at least this would get to the marks.) vided in the 2003 law. This measure will middle class people, people that it was Mr. SIMMONS. Mr. Speaker, I thank ensure that taxpayers who are cur- never intended to get, and to stop the my friend from Pennsylvania for yield- rently exempt from the AMT will con- bracket creep and the problem that ing me the time. tinue to be protected because AMT will they are having. I rise today in support of the Middle- be indexed for inflation over the next These are folks that are struggling to Class Alternative Minimum Tax Relief year. educate their kids, to buy groceries Act of 2004, a bill that will prevent mil- If this legislation is not enacted, Mr. and pay their mortgages. They do not lions of middle-class, middle-income Speaker, the number of working fami- need an alternative minimum tax. It Americans from paying higher taxes lies affected by the AMT will increase has got to be done away with. It should next year. from over 3 million this year to over 11 be done away with all the American Mr. Speaker, when the IRS’s national million in 2005. Here is a chart that il- taxpayers. This is a small step but it is taxpayer advocate Nina Olsen pre- lustrates what will happen. We will go a meaningful step. And I would predict sented her annual report to Congress at from 3 million to 11 million. If we that we would get a unanimous or near the end of last year, she deemed the enact this legislation, we will remain unanimous decision out of this House. AMT, or the alternative minimum tax, at the 3 million. Mr. MCDERMOTT. Mr. Speaker, I as ‘‘the biggest problem taxpayers face Mr. Speaker, I urge all of my col- yield 2 minutes to the gentlewoman today.’’ She did not say upper-income leagues to join me today in support of from New York (Mrs. LOWEY). taxpayers. She did not say top tax middle-class Americans like Dan and

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00013 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.007 H05PT1 H2564 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Rose Curran of Norwich, Connecticut. I the AMT this year, but they did owe Federal tax because we failed to act on their behalf urge their support for this legislation. taxes for the first time in years. In going over today. Mr. Speaker, I rise today to support my their return, they discovered the AMT and Mr. Speaker, I urge all of my colleagues to ‘‘Middle-Class Alternative Minimum Tax Relief were curious about what it was. Upon learning join me in support of middle-class Americans Act of 2004,’’ a bill that will prevent millions of more about its current exemption levels, they like Dan and Rose Curran of Norwich, Con- middle-class Americans from paying higher realized that this supposed ‘‘tax for the rich’’ necticut and support the ‘‘Middle-Class Alter- taxes next year. may well affect them in future years. native Minimum Tax Relief Act of 2004.’’ In 1969, the Treasury Secretary testified be- Rose is a retired State employee whose Mr. MCDERMOTT. Mr. Speaker, I fore Congress that 155 individual taxpayers only income is social security. Dan is a dis- yield 2 minutes to the gentleman from with incomes above $200,000 paid no Federal abled Vietnam veteran and retired sailor who New Jersey (Mr. PASCRELL). income tax on their 1967 tax returns by taking works now as a civilian at the Subase in Grot- Mr. PASCRELL. Mr. Speaker, my advantage of the many exemptions and de- on. Mr. Speaker, I don’t think Dan and Rose friend from Connecticut has spoken ductions in the tax code. This revelation Curran would call themselves ‘‘rich.’’ But they somewhat of the truth, but the anec- sparked an immediate backlash from the are concerned that if Dan keeps working at dotal stories that have been presented American people. That year Congress re- the base they will fall into this tax trap. During on the floor are only an indication of ceived more constituent letters regarding my conversation with Rose I urged her to fol- all of the things that are happening those 155 taxpayers than on the Vietnam War. low up with office and I promised that I would throughout the United States, and if Following this outburst from taxpaying con- look into this matter. we really care about shifting the bur- stituents, legislation was passed that created a When I did I was stunned. As one publica- den of the alternative minimum tax minimum tax designed to ensure that wealthy tion put it, this problem is ‘‘growing like the right now up the scale rather than try- individuals could not escape income tax liabil- monster from the tax lagoon.’’ ing to burden the middle class, then we ity. It was termed the alternative minimum tax Today, the AMT exemption amount for a should do this and be honest with the or ‘‘AMT,’’ for short. married couple is $58,000. However, this relief American people and tell us what the The AMT is a parallel tax system. You cal- is scheduled to expire at the end of the year. effects are of all the taxes, because we culate your taxes under the normal tax system Without action, the exemption amount will are giving with one hand and we are and again under the AMT. Whichever one drop from $58,000 to $45,000 in 2005— taking back with the other hand. Today presents us with yet another yields a higher tax is the one you pay. The dif- raisinig taxes on millions of hard-working, mid- cynical ploy of gimmicks and illusions ference is that when calculating the AMT you dle-income families beginning next year. The masquerading as long-term tax policy. cannot take the standard deduction, child ex- exemption for individual payers will drop from Indeed, despite the widespread ac- emptions, or deduct state, local, and personal $40,250 to $33,750 with the same result. knowledgment of the urgency for pre- property taxes. Without these important de- Therefore I have introduced the ‘‘Middle- venting large swaths of the middle ductions, the AMT often carries the higher Class Alternative Minimum Tax Relief Act of class from being sucked into the alter- price tag of the two. Over three million Amer- 2004,’’ to extend through 2005 the AMT relief native minimum tax over the next dec- provided in the 2003 law. This measure will ican families discovered this just last month ade, neither the administration nor the also ensure that those taxpayers that are cur- when calculating their taxes. For them, the leaders in the House or the Senate are rently exempt from the AMT will continue to be AMT became their income tax. willing to propose permanent relief. Mr. Speaker, when the IRS’s national tax- protected from the AMT because it will be in- Why is that? Is it because some of my payer advocate, Nina Olsen, presented her dexed for inflation over the next year. friends do not want to acknowledge the If my legislation is not enacted, Mr. Speak- annual report to Congress at the end of last overall cost of the AMT? Is it because er, the number of working families affected by year, she deemed the AMT to be the ‘‘biggest some of my friends want to make our problem taxpayers face today.’’ the AMT will increase from over 3 million this tragic budget situation seem less grim? I would urge my colleagues to note that Ms. year to over 11 million in 2005. Let me repeat Was the decision to provide AMT relief Olsen said ‘‘taxpayers.’’ Not upper-income, not that—over 11 million Americans will face this for only 1 year designed to understate top bracket, not wealthy taxpayers, but simply surtax next year without action on my bill the cost of other tax cuts enacted, as taxpayers. In fact, middle-class families with today. What’s more, the 8 million new families well as various pending tax cut pro- children are increasingly liable to come under paying the AMT will face an average tax in- posals, including those to make 2001 the AMT for several reasons. crease of $1,520 according to the Joint Com- and 2003 tax cuts permanent? First, the baseline exemptions in this tax mittee on Taxation. I think we all know the answers to were never indexed for inflation. So as more I’m sure that many of my friends here today the questions. We should. It is unfortu- Americans have entered the middle-class over will say that this won’t solve the greater struc- nate. For over 3 years, this body has the past 30 years, they have ‘‘outrun’’ the ex- tural problems of this tax and that this is just employed deceptive budget stratagems emption and therefore fallen into the AMT a temporary fax. There is some truth to that. to force through politically infused tax trap. Thanks in part to the diligent work of people cuts that threaten our Nation’s long- Second, the AMT has begun to fall espe- like my colleague from just next door, the gen- term fiscal health, and so it continues. cially hard on middle-class families with chil- tleman from Massachusetts, Mr. NEAL, we all We should all vote for the Rangel dren—the very people who we in this body recognize the seriousness of this issue and substitute. We should all say enough have aimed to help not hurt with our tax laws. the need for a long-term solution. But lets not burden on the middle class. This bill is These Aemricans—who have worked hard, get so mired in debating how to address the reported to cost a relatively modest $17 played by the rules, and paid their taxes year long-range consequences of this problem that million, but if we extend it as expected, after year—are now sending more of their we fail to provide this critical extension. its actual long-term costs are much earnings to the Federal government because Mr. Speaker, what began as a way to make higher. Why do we not tell the Amer- this tax does not allow them to take the stand- sure that high-income Americans payed their ican public what it will cost, since we ard deduction for married couples and it does fair share has today become little more than want to stretch out the permanent tax not allow them to enjoy individual exemptions an unfair surcharge on people who choose to cuts for another 10 years? Why do we for themselves and their children. The more get married, have children and work their way not tell them what it is going to cost? children a family has, the more likely they will into the middle class. My friends, the fireman We do not want to do that because be forced into the AMT. and the teacher making around $65,000 to- folks are going to ring back and say, What’s more, if families hail from high-tax gether are not rich. They work hard every day oh, my God, that is a lot of money. States like Connecticut they are much more to put food on the table, pay the mortgage, Indeed, by proposing a 1-year fix to a likely to be snared, as State, local, and per- and save for their children’s education. They perpetual problem, H.R. 4227 purposely sonal property taxes are not deductible under cannot afford high-priced accountants to help obscures not just the long-term costs the AMT. I represent the most-taxed state in them reduce their tax bill. But if this couple but also the other tax cuts recently en- the nation. This time of year I am hearing has three children and takes the standard de- acted. more and more about the AMT. duction, they WILL—according to CRS—pay Mr. ENGLISH. Mr. Speaker, I yield Just last week while participating on a call- the AMT next year if we don’t act. Lets make myself 15 seconds just to say to the in radio program I heard from a constituent of sure—with this legislation—that next April peo- gentleman what is fairly clear and mine from Norwich, Connecticut. Rose Curran ple like Rose and Dan Curran do not pay the Chairman Greenspan recently indi- and her husband, Dan, did not have to pay considerable price of the alternative minimum cated to us before the Joint Economic

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00014 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.031 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2565 Committee that the tax cuts are work- told them over and over again, we of- gentleman from New York (Mr. HOUGH- ing as a tonic for the economy. Clearly fered these changes that were nec- TON), who has put an extraordinary they are helping us to expand our tax essary then and it all happens now. amount of time in on this issue, the base and move back toward a balanced They say we snuck up on them. chairman of the Subcommittee on budget, and that is fairly clear. Mr. Speaker, I yield 2 minutes to the Oversight of the Committee on Ways Mr. Speaker, I yield 3 minutes to the gentleman from New York (Mr. ENGEL). and Means, my colleague. Mr. ENGEL. Mr. Speaker, I thank gentleman from Texas (Mr. SAM JOHN- b 1215 SON), a member of the Committee on the gentleman for yielding time to me; Ways and Means. and I, too, rise in strong support of the Mr. HOUGHTON. Mr. Speaker, I Mr. SAM JOHNSON of Texas. Mr. alternative minimum tax reform. In thank the gentleman for yielding me Speaker, the AMT is a sneaky tax. It is fact, I would go so far as to say, if this time, and say to the gentleman a parallel tax system where normal there was one tax that should be per- from New York (Mr. ENGEL) that we rules of income and deductions do not manently reformed, it would be this have fought a good fight on many apply. You lose most of your deduc- one. issues, and I am delighted to be associ- tions and your children become a li- First of all, as everyone has men- ated with the gentleman on this. Mr. Speaker, I am not going to talk ability. tioned, many middle-income people about the alternative minimum tax. The bill we are debating today will find themselves caught with this tax. People have described it, nobody wants keep this sneaky tax from taking away They have plenty of deductions, but it, we want to get rid it. The question the benefit of many of the 2001 tax they are not allowed to deduct it be- is how. Do we do it the Democratic way cuts. However, we are just holding cause they have met the threshold, and or the Republican way. I happen to be- back the tide of the AMT that in 2008 it certainly is regressive and should be lieve that H.R. 4227, the bill of the gen- will swamp the tax system and actu- changed. tleman from Connecticut (Mr. SIM- ally collect more money than the rest In 1969, the tax was put into effect. It MONS), is the right approach. of the income tax system combined. has not been modified since it makes no sense whatsoever not to have it in- I guess the only thing I would hope is Yes, it is going to be cheaper to re- that we would not get tangled up in peal the entire income tax system than dexed to inflation; and again, if there was any tax reform that ought to be two things: One is we not get tangled to repeal the AMT. I think this sneaky, up in the politics of this thing. This is destructive tax will finally cause the made permanent, it should be this tax. We have heard about other taxes. The a national interest. We could argue income tax system to implode. estate tax is one with which I do not back and forth and criticize each other, This bill today will buy us some more agree that that tax should be perma- but the point is people are going to get time so we can get on with building a nently repealed. The estate tax repeal hurt and we have to stop that. The consensus on replacing the income tax would only benefit the very, very high- other thing, I hope we do not get tan- system. We need to replace our income income people, and I think they should gled up in procedural issues. This is a tax system that is, as my colleagues pay their fair share; but this alter- procedural House, but the impact is know, economically destructive, im- native minimum tax really hits a lot of not procedural on people on the out- possibly complex, and overly intrusive. working people, a lot of middle-class side. It has impeded our ability to create people and is really grossly unfair. I want to thank the gentleman from jobs, encourage savings and invest- If a person lives in a high-tax State, Pennsylvania (Mr. ENGLISH) and the ment, and realize the American dream. as was mentioned by my friends from gentleman from Connecticut (Mr. SIM- When I speak with constituents, the New York and Connecticut, it even MONS) for what they have done. The biggest applause line I get is about hurts and hits them even more so. This gentleman from Connecticut (Mr. SIM- abolishing the IRS. I think that the tax, as it is currently written, makes MONS) has really been the watchdog system, any replacement, any new sys- no sense at all. I would hope that after here for a lot of people who could get tem, should reduce the role of the Fed- this 1-year extension we could put our hurt, and they do not know they could eral Government, encourage savings heads together and come back with get hurt. The fact that they have been and investment, be simple, and most of something that makes sense, a perma- watchful and sensitive to the human all, it must be fair. AMT does none of nent reform. condition is very important. this, and we must repeal it; but until While this bill is a step in the right direction As Members have said, this is a stop- we can repeal it, we must hold harm- many middle class families that are hurt by the gap measure. But without this, we can- less those Americans whose taxes are AMT, will not be helped by this and will only not go to the next leg. The next leg is being raised in the next year. be helped by a total re-write of the AMT and to get rid of a tax. It is an interesting One additional interim step we need a permanent reform. concept because before 1986, people to take is to help those trapped in AMT I think on this side of the aisle the with large amounts of capital could through exercise of incentive stock op- point had been made that the Com- give that capital away; and, therefore, tions or ISOS. In this instance, the mittee Ways and Means, which is the under provisions of the tax law, would AMT requires people who exercise op- tax-writing committee, ought to have not have to pay any tax. It was not fair tions on their employer’s stock to pay hearings. And after we can finally put and it was not democratic, and that is tax on phantom profits. Many people together a plan that would reform the why this thing came into effect. stuck in AMT owe tens of thousands or AMT permanently for good. But there was no indexing, and that hundreds of thousands of dollars in Right now, I will take this quick fix, is why this is creeping up and involving AMT on phantom profits never realized but we ought to build on to it. We enormous numbers of people. There are because the bottom fell out of the mar- should permanently reform the AMT. over 3 million people now, and there ket. We cannot justify a tax system It makes no sense whatsoever to keep will be another 8 million involved. It is where taxes are owed when no gain was doing short-term extensions on tax pol- a very hurtful tax. I think it is a very ever realized. icy that hurts a lot of hardworking good idea. If you want to vote the I hope we will also be able to fix this families. Democratic proposition, that is fine. I inequity as this bill moves through the Mr. ENGLISH. Mr. Speaker, I first happen to believe what the gentleman process; but for sure, we need to get rid yield myself 15 seconds to thank the from Connecticut (Mr. SIMMONS) has of this sneaky tax now. gentleman from New York for his pres- done is right on target. It is essential. Mr. MCDERMOTT. Mr. Speaker, I entation. It was very thoughtful. I It is straightforward, simple, and will yield myself 15 seconds. want to associate myself with his re- benefit everybody. Therefore, I request The gentleman from Texas talks marks. We appreciate his making this that Members support the bill, H.R. about this being a sneaky tax sneaking debate very bipartisan, and I welcome 4227. up on people. It is only sneaky because him to get involved in our Zero AMT Mr. MCDERMOTT. Mr. Speaker, I my colleagues would not have hear- Caucus and try to work on a bipartisan yield myself such time as I may con- ings. If they would have listened to us basis to deal with this problem. sume. when they were passing these tax bills Mr. Speaker, it is a great privilege I would say to my distinguished colin 1997 and 1998 and 1999 and 2000, we for me to yield 5 minutes to another league, the gentleman from New York

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00015 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.032 H05PT1 H2566 CONGRESSIONAL RECORD — HOUSE May 5, 2004 (Mr. HOUGHTON), we are going to miss $58,000, you should begin to figure your 4227 to extend the alternative min- the gentleman when he leaves Con- taxes in a parallel fashion, the regular imum tax relief to our Nation’s middle gress. It will be a loss for all of us. The income tax form, the 1040, and then class and working families. This legis- gentleman said this is a tax that no- there is the alternative minimum tax. lation will ensure that almost 8 million body wanted. Well, if we take the So there you are at $60,000, $70,000, and Americans are not going to be subject Democratic alternative and look at it you have to figure your taxes twice. to unfair higher taxes. It is interesting in the Statement of Congressional If you ask the IRS, they put out a because just last week, I listened to my Findings and Purposes, and mostly flyer that says it takes 3 hours and 56 colleagues on the other side of the Members blow through these bills and minutes to figure the alternative min- aisle. About 100 of them actually voted never read that. I have a little bit of imum tax. Now people are filling out against the marriage penalty relief. time, so I would like to say a few their tax forms making $70,000, a lot They said that offering this Nation’s things about it. are not using accountants, that is their working families relief from a tax on In 1986, because of tax preferences on time. So we are putting them through marriage was inconsequential because oil and gas depletion and a whole lot of the wringer twice to fill out their taxes these families would be subject to things, there were a number of people because you would not listen. AMT. in this country who made a lot of Now this idea that we will repeal the H.R. 4227 is a pro-growth, and most money who then could write it all off alternative minimum tax, that is nice. importantly, pro-family piece of legis- because they had these preferences on That is a great idea. You know who lation that will help us fix this prob- oil and gas exploration and so forth. So that helps, well, it helps these people lem. there was an agreement in this House behind me a little bit, but it helps the Mr. Speaker, as has been mentioned to put in an alternative minimum tax, people at the top. Again, it would be a already several times today, the origi- believing that every American ought to give-away to the people on the top. I nal intent of AMT provisions in our pay something. No matter how rich or understand what the Republican Party Nation’s Tax Code were designed to how poor, we believe that each worker is all about. I believe that is what your prevent high-income taxpayers from should put something in the pot. Here goal is. That is a major plank in your using tax deductions, from using write- we had these people at the top who fig- platform, is no one who has millions of offs, as well as loopholes from avoiding ured out how to get rid of it all. So we dollars should pay anything, they paying their fair share of taxes. But put the alternative minimum tax in. know how to use their money, we under the leadership of the Democratic Then came the 1990s and we had tax should let them have it and they will Party prior to 1995 and their obstruc- reform. We got rid of all of those pref- invest it and we will have a lot of jobs. tive politics since then, the AMT will erences. Even when we did that, we Well, these tax cuts have not worked continue to force hard working middle still had less than 1 half of 1 percent of in the State of Washington. They have class families to pay more than their taxpayers who paid this alternative not worked in the State of Washington. fair share unless something is done. We have more people unemployed minimum tax. It never became a prob- H.R. 4227 at least offers a temporary today than we have ever had. It is the fix to this problem until Congress can lem until 1997 when we took away the highest long-term unemployment we develop a permanent solution. I com- personal deductions and the deductions have ever had since the 1950s, and we mend President Bush and the majority for kids, and we suddenly swept up a are still waiting for the recovery. In party in Congress for implementing an quarter of the people this year. If we February, there were 21,000 jobs cre- economic growth package that has all look at the projections, we are going to ated, all government jobs. So the tax of the economic indices on a positive have three-quarters of the people pay- cuts did not work except for people trend line. Consumer confidence in our ing this thing at some point down the who had a lot of money. The next economy is on the rise because thanks road. month, March, we had 306,000 jobs. to the leadership of President Bush, We could have fixed it along the way, Goodie, we are growing. more Americans are able to keep more but most people did not want it in the The fact is that economists say that of their hard-earned money. The Presi- first place, and so they said let us get it takes 250,000 new jobs every month dent and the Republican majority trust rid of it. Those people on the top to simply keep up with the growth in and believe in the American people. By should not have to pay anything if they the labor force in this country. So extending relief from the AMT, we can can figure out how to get out of it. So 300,000 is just barely replacement, say- make sure that taxpayers are not pay- we have not fixed it. ing nothing about the 3.5 million that ing more than their fair share and they I give you a tale of two taxpayers. we have lost since President Bush has can have money in their pocket to help There is one standing here, and I have been in office. expand our economy even further. a wife who works and the two of us This economy has been an absolute Mr. Speaker, this House is faced with make a nice living. We have good sala- disaster for the middle class and the an important decision today, one that ries. We do not have any children, and ordinary working people in this coun- will affect up to 8 million working fam- we do not pay the alternative min- try. This tax structure Republicans ilies. I support this legislation because imum tax. And the other thing is I live have created is awful. We will vote for I support those families. I urge my colin Washington State. We do not have a this today. There is no Member who is leagues to make the right decision and State income tax. A great State to live not going to vote to put a 1-year patch vote to pass this. in. It wants folks to come and visit, on it, but it is not being fixed. As a Mr. MCDERMOTT. Mr. Speaker, I re- but do not stop there and live. We do Member said, the way things are going, serve the balance of my time. not have any problem with the AMT. down the way, you are going to have Mr. ENGLISH. Mr. Speaker, I yield 3 Mr. Speaker, I am not arguing for half the people we are going to have to minutes to the gentleman from Cali- myself. I am arguing for these people deal with, and at some point it is going fornia (Mr. HERGER). behind me who live in the District of to cost a lot of money. Mr. HERGER. Mr. Speaker, I rise in Columbia. One has two kids, one has The other side of the aisle would not strong opposition to the Rangel sub- four kids. They have to pay it on staff fix it in 1997. We tried to tell them, but stitute. Under the guise of individual salaries in the House of Representa- they were too smart and too full of tax relief from the alternative min- tives. Tell me where is the fairness in their own ideas and ideology to look at imum tax, or AMT, the Rangel sub- that tax structure? How is it my wife what they were doing to people, and stitute would raise taxes by $15 billion. and I benefit tremendously from this that is why we are here today. We cer- This new tax increase would fall system, and we clobber the people in tainly will all vote for it. squarely on the shoulders of America’s the middle class behind us? That is Mr. Speaker, I reserve the balance of small businesses, the same American why we are here today. my time. companies that create jobs and drive Obviously, Republicans realize that Mr. ENGLISH. Mr. Speaker, I yield 2 our Nation’s economic engine. the people out there are going to find minutes to the gentlewoman from The tax relief this Congress has things out when they do their taxes. Michigan (Mrs. MILLER). passed over the past 3 years has con- They start through the form, and if Mrs. MILLER of Michigan. Mr. tributed mightily to the economic re- you have an adjusted gross income of Speaker, I rise today in support of H.R. covery we are now experiencing. More

VerDate May 04 2004 02:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00016 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.034 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2567 than 750,000 jobs have been created in They had their chance to act then, and at which the Republican management the past 8 months. We have strong eco- they failed. People back home need to of the economy has developed the big- nomic growth of between 4 and 5 per- ask themselves who do they trust on gest deficits in a very long time. We cent, low inflation, and homeownership the tax policy; who has been consist- are going to have to raise the Federal rates at the highest level ever. ently on the side of the taxpayer. It is debt limit again. We are going to have Mr. Speaker, why in the world would an easy call. Democrats only talk to sell more bonds to the Chinese. We we choose to raise taxes on American about tax relief in election years. Re- are going to have to sell more bonds small businesses just as our economy publicans talk about tax relief every around the world to keep our economy has turned the corner? Why would we year. afloat than ever before. smother the engines of job creation Mr. ENGLISH. Mr. Speaker, I yield 2 The gentleman from California’s with higher taxes? Yet this is exactly minutes to the distinguished gen- complaint about the gentleman from what the Democrat substitute would tleman from New Hampshire (Mr. New York (Mr. RANGEL) is that the have us do. Hard-working Americans BRADLEY). gentleman from New York has come in need relief from the unfair AMT tax, Mr. BRADLEY of New Hampshire. here and said, you know, I think we and the majority bill offered by the Mr. Speaker, I would like to salute the ought to pay for this bill. We ought to gentleman from Connecticut (Mr. SIM- leadership of the gentleman from pay for it. The gentleman from Penn- MONS) will give it to them. Pennsylvania (Mr. ENGLISH) on this sylvania (Mr. ENGLISH) and his col- Without passage of the majority bill, issue. leagues are not interested in paying for an additional 8 million middle income Mr. Speaker, what we face with the it. They just want to throw it on the taxpayers will see their Federal taxes alternative minimum tax is a sleeping credit card, another $17 billion onto rise because of the AMT next year. giant, a sleeping giant that is starting their kids and their grandchildren. I to wake up and gobble the hard-earned just had a grandchild born last August, b 1230 funds of millions of American tax- so for the first time I am really think- We cannot allow this to happen. Let payers. Today it is 3 million taxpayers; ing about grandchildren. I used to just us reject the Democrat substitute and but tomorrow if we do not pass this think about my kids. But now I am pass the underlying bill. Americans de- legislation, it will be 11 million tax- looking two generations down the road. serve relief from the AMT tax, not new payers. And if we do not have the time It is no problem for the gentleman taxes. necessary to have a longer-term solu- from California and the gentleman Mr. ENGLISH. Mr. Speaker, I yield 2 tion for the alternative minimum tax, from Pennsylvania and other Members minutes to the gentlewoman from Ten- by the end of the decade it will be 30 to say, Hey, throw it to the kids. Let’s nessee (Mrs. BLACKBURN). million taxpayers, one in three Ameri- not pay for it. Mrs. BLACKBURN. Mr. Speaker, I cans, will fall victim to this tax that You have done that since 1996. The came to Washington to work on several was originally designed to catch about mess we are in is directly related to issues, one of which is the sales tax de- 150 very wealthy Americans that did what you have done. When President duction. Tennesseans know my record not pay their fair share of taxes. Bush took over, we had some kind of on tax fairness. I have been working What we have today, though, with surplus, I forget, $200 billion; and we with the gentleman from Texas (Mr. the alternative minimum tax is a situ- are now going into the hole at least BRADY) to put that sales tax deduction ation where middle-income Americans $400 billion or $500 billion every year. issue on the map. I am glad to see that will be paying more than the wealthier When the gentleman from New York we have got some folks on the other Americans because they lose their per- comes out here and says I would like to side of the aisle that are coming in sonal exemptions, they lose the exemp- pay for it, he gets criticized. That is here and ready to help us with this de- tion for State and local taxes, and they called raising taxes. No, it is being fis- bate. Like my mom always said, better lose the exemptions for itemized deduc- cally responsible. late than never. tions. Most of the benefits of the tax The gentleman from New York is no Unfortunately, true to form, their cuts in 2001 and 2003 will be evaporated wild-eyed liberal. You think he is, but proposal, the Democrat proposal is a for these taxpayers; and for anybody you have never looked at the proposal classic political bait and switch. They that has had to go through the alter- he made. He reached over across the are talking about supporting a sales native minimum tax, the compliance hall here into another place and took a tax deduction while they are hiding the costs of having to fill out taxes in a provision from the Finance chairman fact that their motion to recommit dual universe, the normal way and the in the United States Senate. The provi- contains a tax increase. Tennesseans alternative minimum way, is much sions that he put in are offsets that are are not going to buy that kind of gim- higher. contained in the provisions of a tax mickry. Whenever you make that kind Mr. Speaker, I urge my colleagues to abusive transactions bill from the Sen- of bargain, the end result is always support H.R. 4227 and allow us this year ate Finance Committee written by a higher taxes. of time to have a long-term solution to Senator from over there. I cannot Today we are talking about the AMT, fix the alternative minimum tax. name him. The offsets are not tax in- the alternative minimum tax. One of Mr. ENGLISH. Mr. Speaker, I reserve creases. They are provisions designed my Democrat colleagues said he never the balance of my time with the right to ensure that corporations cannot use hears from constituents about the to close. aggressive tax shelter transactions to AMT, that they do not know what it is. Mr. MCDERMOTT. Mr. Speaker, I avoid the taxes they pay. He might be right. There are millions yield myself the balance of my time. So the charge that the gentleman of middle-income taxpayers that do not One of the problems here in the from New York is trying to raise taxes know what is coming, that 11 million House on an issue like this is that it is is simply misleading, to be very gen- of them will be hit with an average tax hard to have a real debate because we erous. I am sure we will see advertise- increase of $1,520. So let us come back do not set it up as a debate. We really ments going all over, well, you know, in a year and tell these people they do are having a bunch of 2-minute speech- the Democrats tried to raise taxes on not know what the AMT is. They are es, and nobody ever gets to answer any- you another $17 billion, and we stopped going to know. They will know that body back and forth. The gentleman them. They are not going to tell you they have been walloped with a $1,500 from Pennsylvania (Mr. ENGLISH) is an about what it is going to cost your kids tax hike if we do not take action right honorable Member and, I think, is just and your grandchildren in terms of in- now. They will be angry because people wrong on this issue. I do not bear him terest rates and what is going on in opposed the Republican plan that is any ill will, but one of the interesting this economy. supported today. things about this is one of the more re- The first group of offsets that the My friends across the aisle claim cent Members who came out here was other body came up with are designed that their motion to recommit address- the gentleman from California (Mr. to curtail tax shelters by clarifying the es the tax hike. Where were they when HERGER). He went on about the fact economic substance doctrine. People President Clinton raised taxes and that the Democratic alternative is back home, I am sure their eyes are failed to adjust the AMT for inflation? going to cost $17 billion. This is a time crossed by now, but some of you people

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00017 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.036 H05PT1 H2568 CONGRESSIONAL RECORD — HOUSE May 5, 2004 ought to be thinking about it. In- majority going to face up to the hole in them. First of all, this problem was not creased reporting and penalty provi- the tax structure that you have dug created by the Republicans. This was sions. The economic substance doctrine and into which you have thrown all the created back in 1986 when a tax reform is a rule of law that denies artificial people? You gave pittances, $676 aver- passed when the other body controlled losses or other tax benefits from trans- age, for the average family and $112,000 the Chamber, and in all the time that actions that have no business purpose for the people at the top. Do you think they controlled the Chamber after- or profit motive. It is the usual she- there is a millionaire in this country ward, they did nothing to deal with nanigans of tax attorneys. Even a Re- who needs $112,000? I mean, seriously. this problem. In fact, in 1993, they publican in the other body thinks that How could anybody come out here and voted to actually increase the burden ain’t right. But, no, people over here support that, given the problems we of the AMT. And we have heard from a say, oh, no, we can’t do that, we can’t have in this country right now? Spend- number of speakers today who purport tighten up. Oh, no, no, no. All those tax ing $200 billion on a war that never to be against the AMT, but actually attorneys will have to go out there and should have happened in the first place, who voted for that increase. find another way to take it away from led into it by a President who stood It has been said by the distinguished the middle class and give it to the rich. right here and misled us, and you are gentleman from Washington, my They apply to transactions with no throwing money out the door every friend, that Republicans do not know substance other than tax avoidance. way we can imagine; and you will not what they are doing. I would submit to That is what the gentleman from face what you are doing economically. the Members when this AMT was put New York’s bill does. He says, let’s get I really pray, I really do pray that in place without any provision for how people to pay their fair share. If we did, the day never comes when Europe inflation would move and more tax- we could do this alternative minimum stands up or the Japanese or the Chi- payers into AMT status, they knew tax. In fact, we could do more. His bill nese stand up and say, we are not buy- what they were doing. They wanted the actually says that if you have a coming any more of that worthless paper revenue. They wanted to apply a pro- bined adjusted gross income of $250,000, from the United States. gressively higher tax burden to the if you are less than that, you do not The SPEAKER pro tempore (Mr. American people and use that future even have to look at this. That would SIMPSON). The time of the gentleman revenue in order to justify a higher take millions of people off the rolls. has expired. level of spending and an expansion of But the Republicans want to leave it so ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE the welfare state. that everybody has to be at $58,000 and The SPEAKER pro tempore. Mem- We in this Chamber today are com- start into this alternative plan. bers are reminded that remarks in de- mitted to moving forward to making The IRS says the record-keeping for bate in the House may not cite the sure that a new heavier tax burden is that is 19 minutes. Then they say it views of Senators. Sponsorship may be not applied to taxpayers next year and takes an hour and 14 minutes to read identified, but further characterization that next year taxpayers do not face a the law and understand it. This is the is not in order. bait and switch on some of the key pro- IRS telling the taxpayers: it is going to Mr. ENGLISH. I presume, Mr. Speak- visions that we have passed. That I take you an hour and a quarter to read er, that also means that we cannot would submit is really what the Repub- this law and figure it out. Then it mischaracterize them. takes an hour and 49 minutes to actu- lican Party is all about. Mr. Speaker, I yield myself the bal- And as for Republican management ally figure it. And then copying and as- ance of my time. of the economy, I am proud to asso- sembling and sending the form takes This has been a useful debate because ciate myself with Republican manage- another 34 minutes. That is where we I think in an odd way it has high- ment of the economy at a time when get the 4 hours. lighted a couple of things. First of all clearly responsible economists agree You are putting a half a day’s work there is a consensus in this Chamber the tax policies enacted in this Con- on the American public because you behind the bill that the gentleman gress supported by this administration will not consider an alternative from from Connecticut (Mr. SIMMONS) has are having the effect of lifting the the Democrats. You will not have a put forward. There will be a substitute hearing to find out whether this is a offered. I will have ample opportunity economy, not as much as I would like better proposal or not, because all wis- and grounds to criticize that substitute right now in my district, but clearly dom resides on that side of the aisle. when it is offered, but for now I think turning around the slowdown that we And it is really wonderful to stand in what needs to be emphasized here is had experienced that we inherited from the presence of people who know every- that in the end both parties are com- the last administration and providing a thing; but the problem, the reason you mitted to at least moving forward on significant prospect of new jobs and got into this mess is because you would this very limited bill. I wish we were new economic growth and new dynam- not listen to anybody else and you are doing more today, but the fact is, this ics that are going to provide opportuni- still in the mess because you will not is probably the best we could agree on ties for working families in the coming listen to anybody else. The fact is that in the gridlock that exists in the insti- months. We recognize that we need to your own people, a guy from Iowa, my tution right now. do more, and this Congress is clearly gosh, he is a wild liberal, right? Head of I would like to use some of my time committed to doing that. And yet we the Senate Finance Committee. He to respond to some of the points that need to agree at very least today to comes up with this, and you think it is were made by the other side. First of pass this provision. no good. all, let us be clear. This bill is not I am very proud to support this bill The fact is that this is a big problem about the war. It is not really about as introduced by the gentleman from that we need to work on together. If the deficit in the sense that I think it Connecticut (Mr. SIMMONS) that pro- there were any bipartisanship at all on is fairly clear and I would hope people vides some relief to middle class tax- the Committee on Ways and Means, we on both sides could agree that we do payers, to make sure that they have could get something done. But if it is not need revenue from this source. We access to the relief that we promised going to be done all by one side, where can come up with spending cuts, and them so that we can continue to grow the ideology is we have to give it all to we can come up with alternative rev- the economy, that we can continue to the people at the top and we cannot enue sources to deal with this. create opportunities, that we can con- worry about what happens to the mid- tinue to provide some relief to families dle class, then we are going to continue b 1245 that have children and that are eligible to have these kinds of deals. If, God We do not need the revenue applied and should be eligible for the tax credit forbid, you are still in charge next from applying an AMT that was in- that we have passed in this Chamber. year, you will be out here with a bill tended to be applied originally only to This is to me a critical issue of tax just like this with a bigger problem a very narrow band of very wealthy equity. We need to be prepared to guar- and a bigger cost and more money into taxpayers, applying it to the middle antee to middle class families that the deficit. class. they do not face a higher burden be- The question that really is sitting Some strange things have been said cause of a stab in the back called the here today is, when is the Republican here and I would like to respond to AMT, that they are not hit on tax day

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00018 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.038 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2569 with an unexpected tax burden, that from an encroaching Alternative Minimum Tax Mr. Chairman, it is important that we act they are not required to recalculate (AMT). today to ensure average income Americans their taxes accordingly. We have an op- Without action this year to extend the cur- will not unfairly face the alternative minimum portunity today to strike a real blow rent AMT exemption levels passed in 2003, tax in 2005. However, I believe we can and for tax equity for the middle class. millions of Americans will feel the AMT crunch must provide this relief in a fiscally responsible With that, I hope we pass this bill. in 2005. While the AMT was enacted in 1969 manner that will not burden future generations Mr. HOLT. Mr. Speaker, the Alternative Min- to prevent high-income earners from using of Americans. Just as it was true last week imum Tax (AMT) is a terrible burden on mid- loopholes in the tax code to avoid paying their when we passed legislation permanently re- dle class taxpayers and the middle class fair share, the AMT is increasingly becoming pealing the marriage penalty tax, our work is should be excluded from the AMT. an unfair tax burden on millions of middle-in- far from over in helping working families face Once again, however, the Republican lead- come Americans. Because of factors including the challenges of today’s economy. We must ership is using budget gimmicks to hide the inflation and income tax reductions, the com- come together in a bipartisan manner to craft real cost of their tax cut and doing nothing to plex calculations used by individuals and cou- a fiscally responsible budget resolution. offset it. While the proposed AMT relief bill ples to determine if they must pay any AMT Ms. KILPATRICK. Mr. Speaker, today we carries an official cost of $17 billion, its actual have adjusted and now unfairly punish middle- are considering H.R. 4227, the Middle-Class long-term costs are much higher: $549 billion income families, particularly those with chil- Alternative Minimum Tax (AMT) Relief Act. I over ten years, or $658 billion if the added in- dren in high-tax states. have considered the merits of the legislation terest costs on the national debt are taken into For the third year in a row, the Internal Rev- and concluded that the base bill offered by the account. Indeed, by proposing a one-year ‘‘fix’’ enue Service’s Taxpayer Advocate Service’s Republican majority needed to be amended. I to a perpetual problem, H.R. 4227 purpose- Report to Congress lists AMT encroachment voted aye to the Neal-Bishop-Israel substitute, fully obscures not just the long-term cost of as the most serious problem encountered by that would have exempted married couples AMT reform. Ignoring these long-term costs ir- taxpayers. The AMT now impacts more than making $250,000, and singles making responsibly undermines our ability to ade- 2.4 million Americans. Unless reformed, the $125,000, from paying the alternative min- quately plan for the future. It costs the future AMT will impact 12.4 million in 2005 and more imum tax. The substitute would have been off- generation, as well as the present economy. than 30 million Americans in 2010. On top of set by cracking down on corporate tax shelters More unpaid-for tax cuts will not only jeop- that, even more taxpayers will be forced to and tax avoidance schemes used by corpora- ardize critical public services now, but they will perform intense computations to determine if tions like Enron. The current budget deficit has also hurt Americans well into the future. Mas- AMT applies to them. been fueled by unprecedented tax cuts that sive deficits now create large debt and high in- While the majority of the 2003 tax proposal have erased a surplus in excess of $200 bil- that passed the House was fiscally irrespon- terest payments that will crowd out spending lion when the Bush administration took office. sible and designed to benefit only the wealthi- on public investments for future generations. Given the loss of 2.6 million private-sector est of Americans, its provision providing in- Moreover, these deep deficits threaten to in- jobs over the last three years, I and my fellow creased AMT exemptions in 2003 and 2004 crease interest rates in the future—making it Democrats believe tax cuts should not add to had bipartisan agreement. However, while ev- harder for Americans to buy homes and afford the record budget deficits, because ballooning eryone seems to agree that the AMT needs to higher education, and making it harder for deficits threaten economic growth, raise inter- be reformed, the President’s budget for fiscal business to raise capital. est rates, and cost jobs. That is why the year 2005 again covered up the full cost of fix- This is why I support the Democratic alter- Democratic alternative targeted tax cuts—pro- ing the AMT—estimated by the CBO at over native to relieve the burden of the AMT on viding more tax relief to the millions of families $500 billion—by proposing another one-year middle class taxpayers. The substitute would with children in high-tax states with incomes extension. A comprehensive, bipartisan pro- provide temporary relief from the AMT that is under $250,000. posal is long overdue to address the problems I was also concerned by facts provided by more broad and simpler than the relief con- of the AMT, and it is important that Congress Ways and Means staff that indicated the base tained in H.R. 4227. The substitute would sim- account for this necessary reform in its budget bill is expected to reduce federal revenue by ply eliminate AMT liability for all taxpayers resolutions. approximately $17 billion to $18 billion over 10 whose adjusted gross income is less than As we reform the AMT to provide relief to years, and none of the provisions in the bill $250,000 ($125,000 for single taxpayers). middle-income Americans, we need to act in a were accompanied by any offsets. Above those income levels, AMT liabilities fiscally responsible manner. It is unfair to The substitute provided the framework for would be phased in over a $40,000 range Americans today, and especially the next gen- total reform of the AMT. It would have been ($20,000 for single individuals). eration, to delude ourselves by thinking the paid for, and would have provided AMT relief The substitute would provide a framework record budget deficits facing our nation, esti- that is broader and simpler than the relief con- for total reform of the AMT. It would require mated by the White House at over $500 billion tained in H.R. 4227. The substitute eliminated the Secretary of the Treasury to promptly sub- this year alone, will simply go away. AMT liability for all taxpayers whose income is mit legislative recommendations to the Con- As a member of the House Budget Com- less than $125,000 for single taxpayers and gress, and it would require the Committee on mittee, I supported a budget resolution that al- $250,000 for married couples. Above those in- Ways and Means to act on those rec- lows for extending AMT relief while still reduc- come levels, AMT liabilities would be phased ommendations this summer. It is time for the ing the deficit. This approach requires tough in over a $20,000 range for single taxpayers Congress to be honest with the American tax- choices, prioritization, and a bipartisan com- and a $40,000 range for married couples. The payers and proceed with real AMT reform. mitment to helping working families. With the cost of the substitute was roughly $19 billion Moreover, the substitute would be revenue House-Senate conference committee still ne- and would have been offset by restrictions on neutral. Its cost would be offset by restricting gotiating the budget resolution for fiscal year tax shelters that have been supported by certain tax shelters, which has already passed 2005, I remain hopeful that we will be able to House Democrats as offsets in other sub- the Senate on a bipartisan basis. The AMT provide Americans continued tax relief today stitutes that have been approved in the Sen- was designed to ensure that all taxpayers pay without raising the debt burden on our chil- ate on a bipartisan basis. a minimum amount of tax and, in effect, lim- dren’s generation. I opposed H.R. 4227 because it did not pro- ited the ability to use tax loopholes. The sub- The substitute offered today by Representa- vide a sufficient level of tax relief to my constitute would directly address those tax avoid- tive NEAL is a more responsible bill that will stituents. ance transactions, thereby minimizing the provide relief to more than 10 million families Mr. STARK. Mr. Speaker, I rise today to op- need for the minimum tax and provide relief while not increasing the budget deficit. By pose H.R. 4227, the ‘‘Middle-Class Alternative for the middle class families of my district. closing corporate tax shelters, the Neal sub- Minimum Tax Relief Act of 2004,’’ and in sup- We cannot continue to pretend that the AMT stitute provides a responsible offset to benefit port of the Democratic substitute that provides problem will go away on its own and to make more American families without burdening our real relief for middle-class families. major policy decisions based on the reckless children with added debt that they will have to The alternative minimum tax, AMT, was de- unrealistic assumption that it will. We must pay off. Further the Neal substitute unambig- signed to ensure high-income taxpayers did work toward a long-term, fully paid-for solution uously and completely exempts married cou- not thwart the system and avoid their share of that protects our ability to fund critical national ples with incomes under $250,000 from the the tax burden. But once again, the Repub- priorities and allows us to make realistic plans AMT. This is a superior approach, helps more licans are on the floor with a tax proposal fa- for the future. Americans, and ensures most middle income voring the wealthy over the middle class, pe- Mr. KIND. Mr. Speaker, I strongly support taxpayers will not have to worry about the nalizing hard working Americans raising fami- providing relief to middle-income Americans AMT. lies. We should not mortgage our future with

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00019 Fmt 4634 Sfmt 9920 E:\CR\FM\K05MY7.041 H05PT1 H2570 CONGRESSIONAL RECORD — HOUSE May 5, 2004 tax policies that will merely pass on the ever- Compared to the Republican bill, it provides American families, but that other American increasing debt to our children. more relief to 1 million additional families. families should have to pay for those tax cuts. Despite its title, the Republicans are offering And, the Democratic plan is fully paid for by Mr. Speaker, that’s not tax cut at all. a bill that does not provide effective AMT relief cracking down on corporate tax shelters. As As everyone in this body knows, the Alter- for lower-income households and those fami- nearly two-thirds of corporations paid no tax at native Minimum Tax was enacted to prevent lies claiming the dependent care credit. In ad- all in 2000, this is an important step to ensur- the wealthiest taxpayers from using loopholes dition, the irresponsible AMT relief proposed ing that corporations pay their fair share while to avoid paying any federal taxes. Today, the by the Republicans is not paid for with any off- relieving middle class families from the unfair AMT doesn’t just affect the rich, but hits a setting revenue increases or spending cuts. burden of the alternative minimum tax. The substantial portion of middle-income Ameri- In contrast, the Democratic substitute pro- middle class does not benefit by adding to our cans. The 2001 and 2003 tax relief bills in- vides AMT relief to more households than the already ballooning budget deficit and further creased the AMT exemption to help deal with Republican bill and gives increased relief to threatening economic growth. this problem. However, this needed relief is low-income households—especially those I urge my colleagues to support true AMT scheduled to expire at the end of this year. If claiming the dependent care credit. This tax tax relief for middle class families, without we do not act today, 11 million middle class relief for real middle-class families is paid for adding to the budget deficit, by supporting the taxpayers will experience an average tax in- with new restrictions on corporate tax shelters. Democratic plan. crease of $1,520 next year. The Republicans call this a tax hike, but it is Mr. FRELINGHUYSEN. Mr. Speaker, today Mr. Speaker, we can’t allow the AMT to take actually the most responsible way to provide I rise in support of H.R. 4227, which extends away everything Congress and President effective middle-class tax relief without adding through 2005 the higher alternative minimum Bush have done to lower the tax burden on to the national debt. tax exemption amounts enacted in the Jobs American families. We also shouldn’t force The Democratic substitute provides AMT re- and Growth Tax Relief Reconciliation Act of some Americans to pay for other American’s lief to 10.2 million households, a full 1 million 2003. This important piece of legislation will tax cuts. I urge my colleagues to defeat the more than the GOP proposal. Married house- prevent a tax increase on middle class fami- Democrat substitute and extend the AMT ex- holds below $250,000 adjusted gross income lies next year. emption by voting for the underlying bill, au- will be completely excluded from the AMT The fact of the matter is if Congress does thored by my Republican colleague and friend, under the Democratic substitute, while the Re- not act this year, taxpayers will feel the burden Representative ROB SIMMONS. publican bill gives big breaks to those over of a significant tax increase. Mr. ENGLISH. Mr. Speaker, I yield $250,000 who obviously need tax relief the The alternative minimum tax hits the resi- back the balance of my time. least—and have already most benefited from dents of northern New Jersey the hardest, es- The SPEAKER pro tempore (Mr. the Bush tax cuts. pecially those who are considered middle- SIMPSON). All time for debate on the I urge my colleagues to vote against the in- class, because it doesn’t allow for a deduction bill has expired. adequate Republican proposal and support of our State’s outrageously high property AMENDMENT IN THE NATURE OF A SUBSTITUTE the Democratic substitute, which provides taxes. In 2001 and 2003, Congress took steps OFFERED BY MR. NEAL OF MASSACHUSETTS AMT relief for American families who need it to present middle-class families from falling Mr. NEAL of Massachusetts. Mr. most. deeper into the AMT trap. The legislation the Speaker, I offer an amendment in the Ms. DELAURO. Mr. Speaker, the alternative House has before it today continues in that nature of a substitute. minimum tax, AMT, is a huge and growing tradition, ensuring that working families The SPEAKER pro tempore. Is the burden on a middle class that is already bur- throughout northern New Jersey and the coun- gentleman a designee of the gentleman dened by a tough economy and the loss of 2.6 try are not hit with a tax increase in 2005. from New York (Mr. RANGEL)? million private sector jobs. Originally designed Created more than 30 years ago, this out of Mr. NEAL of Massachusetts. Yes, Mr. to make sure everyone paid their fair share by date tax was meant to prevent high-income Speaker. limiting excessive tax shelters for wealthy fam- taxpayers from using multiple-tax deductions The SPEAKER pro tempore. The ilies, the AMT has become a tax penalty for and write-offs to avoid paying income taxes. In Clerk will designate the amendment in families with children who live in high-tax 1993, President Clinton increased the AMT the nature of a substitute. States. By 2010, 30 million Americans will be and did not index it for inflation. As a result, The text of the amendment in the na- faced with minimum tax liability, as compared more and more middle-income taxpayers are ture of a substitute is as follows: to about 3 million today and 1 million in 1999. now forced to pay the AMT. Amendment in the nature of a substitute Everyone in this chamber agrees that some- As you know, H.R. 4227 extends through offered by Mr. NEAL of Massachusetts: Strike all after the enacting clause and in- thing must be done to ease this burden on the 2005 the higher AMT exemption amounts en- sert the following: middle class. And let me make clear—Demo- acted last year ($58,950 for joint filers and SECTION 1. SHORT TITLE; AMENDMENT OF 1986 crats have a long track record of supporting $40,900 for single taxpayers) and adjusts CODE; TABLE OF CONTENTS. real tax relief for the middle class. Unfortu- these amounts for inflation to protect their (a) SHORT TITLE.—This Act may be cited as nately, this bill represents a band-aid ap- value. the ‘‘AMT Reform Act of 2004’’. proach to what has been deemed by the IRS’s Without enactment of this legislation, the (b) AMENDMENT OF 1986 CODE.—Except as National Taxpayer Advocate as the Nation’s current exemption amounts will automatically otherwise expressly provided, whenever in top tax problem. fall in 2005 to $45,000 for married couples this Act an amendment or repeal is ex- Under the Republican bill, 1 million families and to $33,750 for single taxpayers. As a re- pressed in terms of an amendment to, or re- would still be paying the AMT. A two-income peal of, a section or other provision, the ref- sult, the Joint Committee on Taxation reports erence shall be considered to be made to a family with four children in a high-tax State 11 million taxpayers would be hit with an aver- section or other provision of the Internal would be hit by the alternative minimum tax age tax increase of $1,520. Revenue Code of 1986. even if their income is only $95,000. And their I would hardly say by today’s standards, a (c) TABLE OF CONTENTS.— bill would extend AMT relief for just 1 year— family making $45,000 is considered ‘‘rich.’’ Sec. 1. Short title; amendment of 1986 Code; meaning taxes on millions of middle class Mr. Speaker, I recognize that H.R. 4227 is table of contents. families will go right back up in 2006. a short term fix to a long term problem which Sec. 2. Statement of Congressional findings The Congressional Budget Office estimates must be addressed. I understand the Com- and purposes. that a true fix of the AMT would cost $376 bil- mittee on Ways and Means is exploring ways TITLE I—TEMPORARY RELIEF FROM THE lion over 10 years. But Republicans have re- to correct this inequity in a more permanent ALTERNATIVE MINIMUM TAX; FRAME- fused to step back on their tax cuts for the way and I look forward to voting on that legis- WORK FOR REFORM wealthy, which have created a $3 trillion def- lation. Sec. 101. Temporary relief from the alternative minimum tax. icit, in order to pay for this essential middle But for now, I urge my colleagues to build Sec. 102. Framework for reform. class tax relief. on our ongoing efforts to provide tax relief for TITLE II—RESTRICTIONS ON TAX Today Democrats bring to the House floor a all hard working Americans. Let’s pass H.R. SHELTERS true solution to the AMT problem. The Demo- 4227 today. Subtitle A—Provisions Designed To Curtail cratic substitute completely exempts married Mr. BALLENGER. Mr. Speaker, I am happy Tax Shelters couple families with incomes under $250,000 to come to the floor today in support of low- Sec. 201. Clarification of economic substance from the alternative minimum tax, providing ering taxes on American families—all Amer- doctrine. tax relief to more than 10 million families, par- ican families. The Democrat substitute basi- Sec. 202. Penalty for failing to disclose re- ticularly those with children in high-tax States. cally says that it’s O.K. to cut taxes on some portable transaction.

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00020 Fmt 4634 Sfmt 0655 E:\CR\FM\A05MY7.020 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2571 Sec. 203. Accuracy-related penalty for listed 2001. Less than 1 percent of individuals were amount but does not exceed $145,000 ($290,000 transactions and other report- subject to the AMT before 2001. in the case of a joint return), the tax im- able transactions having a sig- (9) The Economic Growth and Tax Relief posed by subsection (a) shall be the amount nificant tax avoidance purpose. Reconciliation Act of 2001 contained reduc- which bears the same ratio to such tax (de- Sec. 204. Penalty for understatements at- tions in the regular income tax rates but not termined without regard to this subsection) tributable to transactions lack- in the minimum tax rates. As a result, the as— ing economic substance, etc. number of individuals subject to the AMT is ‘‘(A) the excess of— Sec. 205. Modifications of substantial under- projected to skyrocket. In the future— ‘‘(i) the adjusted gross income of the tax- statement penalty for non- (A) 92 percent of all households with in- payer (as determined for purposes of the reg- reportable transactions. come between $100,000 and $500,000 will be ular tax), over Sec. 206. Tax shelter exception to confiden- subject to the minimum tax; ‘‘(ii) the threshold amount, bears to tiality privileges relating to (B) 73 percent of households with income ‘‘(B) $20,000 ($40,000 in the case of a joint re- taxpayer communications. between $75,000 and $100,000 will be subject to turn). Sec. 207. Disclosure of reportable trans- the minimum tax; and ‘‘(3) THRESHOLD AMOUNT.—For purposes of actions. (C) 37 percent of households with income this paragraph, the term ‘threshold amount’ Sec. 208. Modifications to penalty for failure between $50,000 and $75,000 will be subject to means $125,000 ($250,000 in the case of a joint to register tax shelters. the minimum tax.––––––– return). Sec. 209. Modification of penalty for failure (10) The AMT has a substantial marriage ‘‘(4) ESTATES AND TRUSTS.—This subsection to maintain lists of investors. penalty that has never been addressed by re- shall not apply to any estate or trust.’’. Sec. 210. Penalty on promoters of tax shel- cent ‘‘marriage penalty repeal’’ legislation. (b) EFFECTIVE DATE.—The amendment ters. Married couples are 20 times more likely to made by this section shall apply to taxable Sec. 211. Increases in penalties for aiding be on the minimum tax than single individ- years beginning after December 31, 2004. and abetting understatements. uals. SEC. 102. FRAMEWORK FOR REFORM. Subtitle B—Enron-Related Tax Shelter (11) More than one-half of the promised tax (a) RECOMMENDATIONS BY THE SECRETARY Provisions reductions in the recent marriage penalty OF THE TREASURY.—Not later than 30 days Sec. 221. Limitation on transfer or importa- bill passed by the House of Representatives after the enactment of this Act, the Sec- tion of built-in losses. will be taken back by the AMT. retary of the Treasury shall submit to the Sec. 222. No reduction of basis under section (12) The AMT disproportionately applies to Committee on Ways and Means of the House of Representatives and to the Committee on 734 in stock held by partnership families with children. Ninety-seven percent Finance of the Senate detailed legislative in corporate partner. of families with children and with incomes recommendations designed to reform the al- Sec. 223. Expanded disallowance of deduc- between $75,000 and $100,000 will be subject to ternative minimum tax. Unless the Sec- tion for interest on convertible the AMT. retary determines that it is not feasible, debt. (13) The current AMT means that many of such recommendations shall include changes Sec. 224. Expanded authority to disallow tax the tax reductions enacted in 2001 and 2003 are essentially temporary regardless of designed to ensure that the percentage of in- benefits under section 269. dividuals paying the minimum tax would be Sec. 225. Modification of interaction be- whether Congress makes them permanent by repealing the sunset contained in the 2001 reduced to the level in effect before the en- tween subpart F and passive actment of the Economic Growth and Tax Act. On average, the AMT will take back— foreign investment company Relief Reconciliation Act of 2001 (which is (A) 15.3 percent of the benefits of the re- rules. less than 1 percent). The Secretary shall in- cent tax cuts from families with incomes be- SEC. 2. STATEMENT OF CONGRESSIONAL FIND- clude with such recommendations estimates tween $50,000 and $70,000; INGS AND PURPOSES. of their revenue cost. (a) FINDINGS.—The Congress finds the fol- (B) 37.2 percent of the benefits from fami- (b) ACTION BY COMMITTEE ON WAYS AND lowing: lies with incomes between $75,000 and MEANS.—Not later than August 1, 2004, the (1) The current alternative minimum tax $100,000; Committee on Ways and Means of the House (hereinafter referred to as the ‘‘AMT’’) was (C) 65 percent of the benefits from families of Representatives shall report legislation enacted in 1986 with the stated purpose of en- with incomes between $100,000 and $200,000; providing permanent reform of the alter- suring that individuals with relatively large and native minimum tax. Such legislation shall incomes would pay some minimum amount (D) 71.8 percent of the benefits from fami- be designed so that the percentage of individ- of Federal income tax, notwithstanding the lies with incomes between $200,000 and uals subject to the minimum tax will be re- fact that the individuals could have used $500,000. stored to the level in effect before the enact- otherwise allowable tax preferences to re- (14) Only extremely wealthy taxpayers will ment of the Economic Growth and Tax Relief duce their regular tax to zero. retain most of the benefits of the recent tax Reconciliation Act of 2001 (which is less than (2) The AMT, when enacted, affected a very cuts. Taxpayers making more than $1,000,000 1 percent). small percentage of individuals. Approxi- will find only 8 percent of their tax reduc- TITLE II—RESTRICTIONS ON TAX mately 0.1 percent of all individuals were tions taken back by the AMT. SHELTERS subject to the AMT in 1987. (15) The Bush Administration’s Fiscal Year Subtitle A—Provisions Designed To Curtail (3) During the 1990’s virtually all items 2005 Budget recommends that the recent tax Tax Shelters that have been traditionally considered to be reductions be made permanent. Accom- plishing that goal requires a total reform of SEC. 201. CLARIFICATION OF ECONOMIC SUB- tax preferences were removed from the AMT. STANCE DOCTRINE. the AMT. (4) As a result, virtually all AMT liability (a) IN GENERAL.—Section 7701 is amended (b) PURPOSE.—It is the purpose of this Act now is attributable to 3 items that few peo- by redesignating subsection (n) as subsection ple would consider to be tax preferences: the to— (o) and by inserting after subsection (m) the deduction for personal exemptions, the de- (1) provide significant temporary relief following new subsection: duction for State and local taxes, and mis- from the alternative minimum tax; and ‘‘(n) CLARIFICATION OF ECONOMIC SUB- cellaneous itemized deductions. (2) to provide a framework for a total re- STANCE DOCTRINE; ETC.— (5) In 1993, adjustments to minimum tax form of the alternative minimum tax. ‘‘(1) GENERAL RULES.— rates were made to correspond to adjust- TITLE I—TEMPORARY RELIEF FROM THE ‘‘(A) IN GENERAL.—In any case in which a ments made in regular income tax rates. The ALTERNATIVE MINIMUM TAX; FRAME- court determines that the economic sub- 1993 legislation also increased the amount of WORK FOR REFORM stance doctrine is relevant for purposes of the AMT exemption. SEC. 101. TEMPORARY RELIEF FROM THE ALTER- this title to a transaction (or series of trans- (6) The percentage of individuals subject to NATIVE MINIMUM TAX. actions), such transaction (or series of trans- the AMT did not increase as a result of the (a) IN GENERAL.—Section 55 (relating to al- actions) shall have economic substance only 1993 changes. The percentage in 1992 was 0.3 ternative minimum tax imposed) is amended if the requirements of this paragraph are percent. It was 0.3 percent in 1994. by adding at the end the following new sub- met. (7) The first significant increase in the per- section: ‘‘(B) DEFINITION OF ECONOMIC SUBSTANCE.— centage of individuals paying the AMT oc- ‘‘(f) EXEMPTION FOR INDIVIDUALS FOR TAX- For purposes of subparagraph (A)— curred by reason of the Taxpayer Relief Act ABLE YEARS BEGINNING IN 2005.—For any tax- ‘‘(i) IN GENERAL.—A transaction has eco- of 1997. Some of the benefits of the capital able year beginning in 2005, in the case of an nomic substance only if— gains tax reduction provided in the 1997 Act individual— ‘‘(I) the transaction changes in a meaning- were taken back by the AMT. As a result of ‘‘(1) IN GENERAL.—The tentative minimum ful way (apart from Federal tax effects) the the 1997 Act, the percentage of individuals tax of the taxpayer shall be zero if the ad- taxpayer’s economic position, and paying the AMT doubled in less than 2 years. justed gross income of the taxpayer (as de- ‘‘(II) the taxpayer has a substantial nontax (8) Even after the impact of the 1997 Act, termined for purposes of the regular tax) is purpose for entering into such transaction the number of individuals subject to the equal to or less than the threshold amount. and the transaction is a reasonable means of AMT was extremely small until the enact- ‘‘(2) PHASEIN OF LIABILITY ABOVE EXEMPTION accomplishing such purpose. ment of the tax reductions by the Economic LEVEL.—In the case of a taxpayer whose ad- In applying subclause (II), a purpose of Growth and Tax Relief Reconciliation Act of justed gross income exceeds the threshold achieving a financial accounting benefit

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shall not be taken into account in deter- ‘‘(ii) subclause (II) of paragraph (1)(B)(ii) ‘‘(d) AUTHORITY TO RESCIND PENALTY.— mining whether a transaction has a substan- shall be disregarded in determining whether ‘‘(1) IN GENERAL.—The Commissioner of In- tial nontax purpose if the origin of such fi- any of such benefits are allowable. ternal Revenue may rescind all or any por- nancial accounting benefit is a reduction of ‘‘(4) OTHER COMMON LAW DOCTRINES NOT AF- tion of any penalty imposed by this section income tax. FECTED.—Except as specifically provided in with respect to any violation if— ‘‘(ii) SPECIAL RULE WHERE TAXPAYER RELIES this subsection, the provisions of this sub- ‘‘(A) the violation is with respect to a re- ON PROFIT POTENTIAL.—A transaction shall section shall not be construed as altering or portable transaction other than a listed not be treated as having economic substance supplanting any other rule of law, and the transaction, by reason of having a potential for profit un- requirements of this subsection shall be con- ‘‘(B) the person on whom the penalty is im- less— strued as being in addition to any such other posed has a history of complying with the re- ‘‘(I) the present value of the reasonably ex- rule of law. quirements of this title, pected pre-tax profit from the transaction is ‘‘(5) REGULATIONS.—The Secretary shall ‘‘(C) it is shown that the violation is due to prescribe such regulations as may be nec- substantial in relation to the present value an unintentional mistake of fact; essary or appropriate to carry out the pur- of the expected net tax benefits that would ‘‘(D) imposing the penalty would be poses of this subsection. Such regulations be allowed if the transaction were respected, against equity and good conscience, and may include exemptions from the applica- ‘‘(E) rescinding the penalty would promote and tion of this subsection.’’. ‘‘(II) the reasonably expected pre-tax profit compliance with the requirements of this (b) EFFECTIVE DATE.—The amendments title and effective tax administration. from the transaction exceeds a risk-free rate made by this section shall apply to trans- of return. ‘‘(2) DISCRETION.—The exercise of authority actions entered into after the date of the en- under paragraph (1) shall be at the sole dis- ‘‘(C) TREATMENT OF FEES AND FOREIGN actment of this Act. cretion of the Commissioner and may be del- TAXES.—Fees and other transaction expenses SEC. 202. PENALTY FOR FAILING TO DISCLOSE egated only to the head of the Office of Tax and foreign taxes shall be taken into account REPORTABLE TRANSACTION. Shelter Analysis. The Commissioner, in the as expenses in determining pre-tax profit (a) IN GENERAL.—Part I of subchapter B of Commissioner’s sole discretion, may estab- under subparagraph (B)(ii). chapter 68 (relating to assessable penalties) lish a procedure to determine if a penalty ‘‘(2) SPECIAL RULES FOR TRANSACTIONS WITH is amended by inserting after section 6707 should be referred to the Commissioner or TAX-INDIFFERENT PARTIES.— the following new section: the head of such Office for a determination ‘‘(A) SPECIAL RULES FOR FINANCING TRANS- ‘‘SEC. 6707A. PENALTY FOR FAILURE TO INCLUDE under paragraph (1). ACTIONS.—The form of a transaction which is REPORTABLE TRANSACTION INFOR- ‘‘(3) NO APPEAL.—Notwithstanding any in substance the borrowing of money or the MATION WITH RETURN OR STATE- other provision of law, any determination acquisition of financial capital directly or MENT. ‘‘(a) IMPOSITION OF PENALTY.—Any person under this subsection may not be reviewed in indirectly from a tax-indifferent party shall who fails to include on any return or state- any administrative or judicial proceeding. not be respected if the present value of the ment any information with respect to a re- ‘‘(4) RECORDS.—If a penalty is rescinded deductions to be claimed with respect to the portable transaction which is required under under paragraph (1), the Commissioner shall transaction is substantially in excess of the section 6011 to be included with such return place in the file in the Office of the Commis- present value of the anticipated economic re- or statement shall pay a penalty in the sioner the opinion of the Commissioner or turns of the person lending the money or amount determined under subsection (b). the head of the Office of Tax Shelter Anal- providing the financial capital. A public of- ‘‘(b) AMOUNT OF PENALTY.— ysis with respect to the determination, in- fering shall be treated as a borrowing, or an ‘‘(1) IN GENERAL.—Except as provided in cluding— acquisition of financial capital, from a tax- paragraphs (2) and (3), the amount of the ‘‘(A) the facts and circumstances of the indifferent party if it is reasonably expected penalty under subsection (a) shall be $50,000. transaction, that at least 50 percent of the offering will be ‘‘(2) LISTED TRANSACTION.—The amount of ‘‘(B) the reasons for the rescission, and placed with tax-indifferent parties. the penalty under subsection (a) with respect ‘‘(C) the amount of the penalty rescinded. ‘‘(B) ARTIFICIAL INCOME SHIFTING AND BASIS to a listed transaction shall be $100,000. ‘‘(5) REPORT.—The Commissioner shall ADJUSTMENTS.—The form of a transaction ‘‘(3) INCREASE IN PENALTY FOR LARGE ENTI- each year report to the Committee on Ways with a tax-indifferent party shall not be re- TIES AND HIGH NET WORTH INDIVIDUALS.— and Means of the House of Representatives spected if— ‘‘(A) IN GENERAL.—In the case of a failure and the Committee on Finance of the Sen- ‘‘(i) it results in an allocation of income or under subsection (a) by— ate— gain to the tax-indifferent party in excess of ‘‘(i) a large entity, or ‘‘(A) a summary of the total number and such party’s economic income or gain, or ‘‘(ii) a high net worth individual, aggregate amount of penalties imposed, and ‘‘(ii) it results in a basis adjustment or the penalty under paragraph (1) or (2) shall rescinded, under this section, and shifting of basis on account of overstating be twice the amount determined without re- ‘‘(B) a description of each penalty re- the income or gain of the tax-indifferent gard to this paragraph. scinded under this subsection and the rea- party. ‘‘(B) LARGE ENTITY.—For purposes of sub- sons therefor. ‘‘(3) DEFINITIONS AND SPECIAL RULES.—For paragraph (A), the term ‘large entity’ means, ‘‘(e) PENALTY REPORTED TO SEC.—In the purposes of this subsection— with respect to any taxable year, a person case of a person— ‘‘(A) ECONOMIC SUBSTANCE DOCTRINE.—The (other than a natural person) with gross receipts in excess of $10,000,000 for the taxable ‘‘(1) which is required to file periodic re- term ‘economic substance doctrine’ means ports under section 13 or 15(d) of the Securi- the common law doctrine under which tax year in which the reportable transaction occurs or the preceding taxable year. Rules ties Exchange Act of 1934 or is required to be benefits under subtitle A with respect to a consolidated with another person for pur- transaction are not allowable if the trans- similar to the rules of paragraph (2) and subparagraphs (B), (C), and (D) of paragraph (3) poses of such reports, and action does not have economic substance or ‘‘(2) which— lacks a business purpose. of section 448(c) shall apply for purposes of this subparagraph. ‘‘(A) is required to pay a penalty under this ‘‘(B) TAX-INDIFFERENT PARTY.—The term ‘‘(C) HIGH NET WORTH INDIVIDUAL.—For pur- section with respect to a listed transaction, ‘tax-indifferent party’ means any person or poses of subparagraph (A), the term ‘high net ‘‘(B) is required to pay a penalty under sec- entity not subject to tax imposed by subtitle worth individual’ means, with respect to a tion 6662A with respect to any reportable A. A person shall be treated as a tax-indif- reportable transaction, a natural person transaction at a rate prescribed under sec- ferent party with respect to a transaction if whose net worth exceeds $2,000,000 imme- tion 6662A(c), or the items taken into account with respect to diately before the transaction. ‘‘(C) is required to pay a penalty under sec- the transaction have no substantial impact ‘‘(c) DEFINITIONS.—For purposes of this section 6662B with respect to any noneconomic on such person’s liability under subtitle A. tion— substance transaction, ‘‘(C) EXCEPTION FOR PERSONAL TRANS- ‘‘(1) REPORTABLE TRANSACTION.—The term the requirement to pay such penalty shall be ACTIONS OF INDIVIDUALS.—In the case of an ‘reportable transaction’ means any trans- disclosed in such reports filed by such person individual, this subsection shall apply only action with respect to which information is for such periods as the Secretary shall speci- to transactions entered into in connection required to be included with a return or fy. Failure to make a disclosure in accord- with a trade or business or an activity en- statement because, as determined under reg- ance with the preceding sentence shall be gaged in for the production of income. ulations prescribed under section 6011, such treated as a failure to which the penalty ‘‘(D) TREATMENT OF LESSORS.—In applying transaction is of a type which the Secretary under subsection (b)(2) applies. paragraph (1)(B)(ii) to the lessor of tangible determines as having a potential for tax property subject to a lease— avoidance or evasion. ‘‘(f) COORDINATION WITH OTHER PEN- ‘‘(i) the expected net tax benefits with re- ‘‘(2) LISTED TRANSACTION.—Except as pro- ALTIES.—The penalty imposed by this section spect to the leased property shall not include vided in regulations, the term ‘listed trans- is in addition to any penalty imposed under the benefits of— action’ means a reportable transaction this title.’’. ‘‘(I) depreciation, which is the same as, or substantially simi- (b) CONFORMING AMENDMENT.—The table of ‘‘(II) any tax credit, or lar to, a transaction specifically identified sections for part I of subchapter B of chapter ‘‘(III) any other deduction as provided in by the Secretary as a tax avoidance trans- 68 is amended by inserting after the item re- guidance by the Secretary, and action for purposes of section 6011. lating to section 6707 the following:

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‘‘Sec. 6707A. Penalty for failure to include re- ‘‘(B) APPLICABLE RULES.—The rules of para- ‘‘(2) SPECIAL RULES.—Paragraph (1) shall portable transaction informa- graphs (2), (3), (4), and (5) of section 6707A(d) not apply to any reportable transaction un- tion with return or state- shall apply for purposes of subparagraph (A). derstatement unless— ment.’’. ‘‘(d) DEFINITIONS OF REPORTABLE AND LIST- ‘‘(A) the relevant facts affecting the tax (c) EFFECTIVE DATE.—The amendments ED TRANSACTIONS.—For purposes of this sec- treatment of the item are adequately dis- made by this section shall apply to returns tion, the terms ‘reportable transaction’ and closed in accordance with the regulations and statements the due date for which is ‘listed transaction’ have the respective prescribed under section 6011, after the date of the enactment of this Act. meanings given to such terms by section ‘‘(B) there is or was substantial authority for such treatment, and SEC. 203. ACCURACY-RELATED PENALTY FOR 6707A(c). LISTED TRANSACTIONS AND OTHER ‘‘(e) SPECIAL RULES.— ‘‘(C) the taxpayer reasonably believed that REPORTABLE TRANSACTIONS HAV- ‘‘(1) COORDINATION WITH PENALTIES, ETC., ON such treatment was more likely than not the ING A SIGNIFICANT TAX AVOIDANCE OTHER UNDERSTATEMENTS.—In the case of an proper treatment. PURPOSE. understatement (as defined in section A taxpayer failing to adequately disclose in (a) IN GENERAL.—Subchapter A of chapter 6662(d)(2))— accordance with section 6011 shall be treated 68 is amended by inserting after section 6662 ‘‘(A) the amount of such understatement as meeting the requirements of subparagraph the following new section: (determined without regard to this para- (A) if the penalty for such failure was re- ‘‘SEC. 6662A. IMPOSITION OF ACCURACY-RE- graph) shall be increased by the aggregate scinded under section 6707A(d). LATED PENALTY ON UNDERSTATE- amount of reportable transaction under- ‘‘(3) RULES RELATING TO REASONABLE BE- MENTS WITH RESPECT TO REPORT- statements and noneconomic substance LIEF.—For purposes of paragraph (2)(C)— ABLE TRANSACTIONS. transaction understatements for purposes of ‘‘(A) IN GENERAL.—A taxpayer shall be ‘‘(a) IMPOSITION OF PENALTY.—If a taxpayer determining whether such understatement is treated as having a reasonable belief with re- has a reportable transaction understatement a substantial understatement under section spect to the tax treatment of an item only if for any taxable year, there shall be added to 6662(d)(1), and such belief— the tax an amount equal to 20 percent of the ‘‘(B) the addition to tax under section ‘‘(i) is based on the facts and law that exist amount of such understatement. 6662(a) shall apply only to the excess of the at the time the return of tax which includes ‘‘(b) REPORTABLE TRANSACTION UNDER- amount of the substantial understatement such tax treatment is filed, and STATEMENT.—For purposes of this section— (if any) after the application of subparagraph ‘‘(ii) relates solely to the taxpayer’s ‘‘(1) IN GENERAL.—The term ‘reportable (A) over the aggregate amount of reportable chances of success on the merits of such transaction understatement’ means the sum transaction understatements and non- treatment and does not take into account of— economic substance transaction understate- the possibility that a return will not be au- ‘‘(A) the product of— ments. dited, such treatment will not be raised on ‘‘(i) the amount of the increase (if any) in ‘‘(2) COORDINATION WITH OTHER PENALTIES.— audit, or such treatment will be resolved taxable income which results from a dif- ‘‘(A) APPLICATION OF FRAUD PENALTY.—Ref- through settlement if it is raised. ference between the proper tax treatment of erences to an underpayment in section 6663 ‘‘(B) CERTAIN OPINIONS MAY NOT BE RELIED an item to which this section applies and the shall be treated as including references to a UPON.— taxpayer’s treatment of such item (as shown reportable transaction understatement and a ‘‘(i) IN GENERAL.—An opinion of a tax advi- on the taxpayer’s return of tax), and noneconomic substance transaction under- sor may not be relied upon to establish the ‘‘(ii) the highest rate of tax imposed by statement. reasonable belief of a taxpayer if— section 1 (section 11 in the case of a taxpayer ‘‘(B) NO DOUBLE PENALTY.—This section ‘‘(I) the tax advisor is described in clause which is a corporation), and shall not apply to any portion of an under- (ii), or ‘‘(B) the amount of the decrease (if any) in statement on which a penalty is imposed ‘‘(II) the opinion is described in clause (iii). the aggregate amount of credits determined under section 6662B or 6663. ‘‘(ii) DISQUALIFIED TAX ADVISORS.—A tax under subtitle A which results from a dif- ‘‘(3) SPECIAL RULE FOR AMENDED RETURNS.— advisor is described in this clause if the tax ference between the taxpayer’s treatment of Except as provided in regulations, in no advisor— an item to which this section applies (as event shall any tax treatment included with ‘‘(I) is a material advisor (within the mean- shown on the taxpayer’s return of tax) and an amendment or supplement to a return of ing of section 6111(b)(1)) who participates in the proper tax treatment of such item. tax be taken into account in determining the the organization, management, promotion, For purposes of subparagraph (A), any reduc- amount of any reportable transaction under- or sale of the transaction or who is related tion of the excess of deductions allowed for statement or noneconomic substance trans- (within the meaning of section 267(b) or the taxable year over gross income for such action understatement if the amendment or 707(b)(1)) to any person who so participates, year, and any reduction in the amount of supplement is filed after the earlier of the ‘‘(II) is compensated directly or indirectly capital losses which would (without regard date the taxpayer is first contacted by the by a material advisor with respect to the to section 1211) be allowed for such year, Secretary regarding the examination of the transaction, shall be treated as an increase in taxable in- return or such other date as is specified by ‘‘(III) has a fee arrangement with respect come. the Secretary. to the transaction which is contingent on all ‘‘(2) ITEMS TO WHICH SECTION APPLIES.—This ‘‘(4) NONECONOMIC SUBSTANCE TRANSACTION or part of the intended tax benefits from the section shall apply to any item which is at- UNDERSTATEMENT.—For purposes of this sub- transaction being sustained, tributable to— section, the term ‘noneconomic substance ‘‘(IV) has an arrangement with respect to ‘‘(A) any listed transaction, and transaction understatement’ has the mean- the transaction which provides that contrac- ‘‘(B) any reportable transaction (other ing given such term by section 6662B(c). tual disputes between the taxpayer and the than a listed transaction) if a significant ‘‘(5) CROSS REFERENCE.— advisor are to be settled by arbitration or purpose of such transaction is the avoidance which limits damages by reference to fees or evasion of Federal income tax. ‘‘For reporting of section 6662A(c) penalty paid to the advisor for such transaction, or to the Securities and Exchange Commission, ‘‘(c) HIGHER PENALTY FOR NONDISCLOSED ‘‘(V) as determined under regulations pre- see section 6707A(e).’’. LISTED AND OTHER AVOIDANCE TRANS- scribed by the Secretary, has a disqualifying ACTIONS.— (b) DETERMINATION OF OTHER UNDERSTATE- financial interest with respect to the trans- ‘‘(1) IN GENERAL.—Subsection (a) shall be MENTS.—Subparagraph (A) of section action. applied by substituting ‘30 percent’ for ‘20 6662(d)(2) is amended by adding at the end ‘‘(iii) DISQUALIFIED OPINIONS.—For purposes percent’ with respect to the portion of any the following flush sentence: of clause (i), an opinion is disqualified if the reportable transaction understatement with ‘‘The excess under the preceding sentence opinion— respect to which the requirement of section shall be determined without regard to items ‘‘(I) is based on unreasonable factual or 6664(d)(2)(A) is not met. to which section 6662A applies and without legal assumptions (including assumptions as ‘‘(2) RULES APPLICABLE TO ASSERTION AND regard to items with respect to which a pen- to future events), COMPROMISE OF PENALTY.— alty is imposed by section 6662B.’’. ‘‘(II) unreasonably relies on representa- ‘‘(A) IN GENERAL.—Only upon the approval (c) REASONABLE CAUSE EXCEPTION.— tions, statements, findings, or agreements of by the Chief Counsel for the Internal Rev- (1) IN GENERAL.—Section 6664 is amended the taxpayer or any other person, enue Service or the Chief Counsel’s delegate by adding at the end the following new sub- ‘‘(III) does not identify and consider all relat the national office of the Internal Rev- section: evant facts, enue Service may a penalty to which para- ‘‘(d) REASONABLE CAUSE EXCEPTION FOR RE- ‘‘(IV) is not signed by all individuals who graph (1) applies be included in a 1st letter of PORTABLE TRANSACTION UNDERSTATEMENTS.— are principal authors of the opinion, or proposed deficiency which allows the tax- ‘‘(1) IN GENERAL.—No penalty shall be im- ‘‘(V) fails to meet any other requirement payer an opportunity for administrative re- posed under section 6662A with respect to as the Secretary may prescribe.’’. view in the Internal Revenue Service Office any portion of a reportable transaction un- (2) CONFORMING AMENDMENT.—The heading of Appeals. If such a letter is provided to the derstatement if it is shown that there was a for subsection (c) of section 6664 is amended taxpayer, only the Commissioner of Internal reasonable cause for such portion and that by inserting ‘‘FOR UNDERPAYMENTS’’ after Revenue may compromise all or any portion the taxpayer acted in good faith with respect ‘‘EXCEPTION’’. of such penalty. to such portion. (d) CONFORMING AMENDMENTS.—

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00023 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.008 H05PT1 H2574 CONGRESSIONAL RECORD — HOUSE May 5, 2004 (1) Subparagraph (C) of section 461(i)(3) is the transaction giving rise to the claimed SEC. 206. TAX SHELTER EXCEPTION TO CON- amended by striking ‘‘section benefit or the transaction was not respected FIDENTIALITY PRIVILEGES RELAT- 6662(d)(2)(C)(iii)’’ and inserting ‘‘section under section 7701(n)(2), or ING TO TAXPAYER COMMUNICA- 1274(b)(3)(C)’’. ‘‘(B) the transaction fails to meet the re- TIONS. (a) IN GENERAL.—Section 7525(b) (relating (2) Paragraph (3) of section 1274(b) is quirements of any similar rule of law. to section not to apply to communications amended— ‘‘(d) RULES APPLICABLE TO COMPROMISE OF regarding corporate tax shelters) is amended (A) by striking ‘‘(as defined in section PENALTY.— to read as follows: 6662(d)(2)(C)(iii))’’ in subparagraph (B)(i), and ‘‘(1) IN GENERAL.—If the 1st letter of pro- ‘‘(b) SECTION NOT TO APPLY TO COMMUNICA- (B) by adding at the end the following new posed deficiency which allows the taxpayer TIONS REGARDING TAX SHELTERS.—The privi- an opportunity for administrative review in subparagraph: lege under subsection (a) shall not apply to the Internal Revenue Service Office of Ap- ‘‘(C) TAX SHELTER.—For purposes of sub- any written communication which is— peals has been sent with respect to a penalty paragraph (B), the term ‘tax shelter’ means— ‘‘(1) between a federally authorized tax to which this section applies, only the Com- ‘‘(i) a partnership or other entity, practitioner and— missioner of Internal Revenue may com- ‘‘(ii) any investment plan or arrangement, ‘‘(A) any person, promise all or any portion of such penalty. or ‘‘(B) any director, officer, employee, agent, ‘‘(2) APPLICABLE RULES.—The rules of para- ‘‘(iii) any other plan or arrangement, or representative of the person, or graphs (2), (3), (4), and (5) of section 6707A(d) if a significant purpose of such partnership, ‘‘(C) any other person holding a capital or shall apply for purposes of paragraph (1). entity, plan, or arrangement is the avoid- profits interest in the person, and ance or evasion of Federal income tax.’’. ‘‘(e) COORDINATION WITH OTHER PEN- ALTIES.—Except as otherwise provided in this ‘‘(2) in connection with the promotion of (3) Section 6662(d)(2) is amended by strik- the direct or indirect participation of the ing subparagraphs (C) and (D). part, the penalty imposed by this section shall be in addition to any other penalty im- person in any tax shelter (as defined in sec- (4) Section 6664(c)(1) is amended by strik- tion 1274(b)(3)(C)).’’. ing ‘‘this part’’ and inserting ‘‘section 6662 or posed by this title. ‘‘(f) CROSS REFERENCES.— (b) EFFECTIVE DATE.—The amendment 6663’’. made by this section shall apply to commu- ‘‘(1) For coordination of penalty with un- (5) Subsection (b) of section 7525 is amend- nications made on or after the date of the derstatements under section 6662 and other ed by striking ‘‘section 6662(d)(2)(C)(iii)’’ and enactment of this Act. special rules, see section 6662A(e). inserting ‘‘section 1274(b)(3)(C)’’. SEC. 207. DISCLOSURE OF REPORTABLE TRANS- (6)(A) The heading for section 6662 is ‘‘(2) For reporting of penalty imposed under this section to the Securities and Ex- ACTIONS. amended to read as follows: (a) IN GENERAL.—Section 6111 (relating to ‘‘SEC. 6662. IMPOSITION OF ACCURACY-RELATED change Commission, see section 6707A(e).’’. (b) CLERICAL AMENDMENT.—The table of registration of tax shelters) is amended to PENALTY ON UNDERPAYMENTS.’’. sections for part II of subchapter A of chap- read as follows: (B) The table of sections for part II of sub- ter 68 is amended by inserting after the item ‘‘SEC. 6111. DISCLOSURE OF REPORTABLE TRANS- chapter A of chapter 68 is amended by strik- relating to section 6662A the following new ACTIONS. ing the item relating to section 6662 and in- item: ‘‘(a) IN GENERAL.—Each material advisor serting the following new items: with respect to any reportable transaction ‘‘Sec. 6662B. Penalty for understatements at- shall make a return (in such form as the Sec- ‘‘Sec. 6662. Imposition of accuracy-related tributable to transactions lack- penalty on underpayments. retary may prescribe) setting forth— ing economic substance, etc.’’. ‘‘(1) information identifying and describing ‘‘Sec. 6662A. Imposition of accuracy-related (c) EFFECTIVE DATE.—The amendments penalty on understatements the transaction, made by this section shall apply to trans- ‘‘(2) information describing any potential with respect to reportable actions entered into after the date of the en- transactions.’’. tax benefits expected to result from the actment of this Act. transaction, and (e) EFFECTIVE DATE.—The amendments SEC. 205. MODIFICATIONS OF SUBSTANTIAL UN- made by this section shall apply to taxable ‘‘(3) such other information as the Sec- DERSTATEMENT PENALTY FOR NON- retary may prescribe. years ending after the date of the enactment REPORTABLE TRANSACTIONS. Such return shall be filed not later than the of this Act. (a) SUBSTANTIAL UNDERSTATEMENT OF COR- date specified by the Secretary. SEC. 204. PENALTY FOR UNDERSTATEMENTS AT- PORATIONS.—Section 6662(d)(1)(B) (relating to ‘‘(b) DEFINITIONS.—For purposes of this sec- TRIBUTABLE TO TRANSACTIONS special rule for corporations) is amended to tion— LACKING ECONOMIC SUBSTANCE, read as follows: ‘‘(1) MATERIAL ADVISOR.— ETC. ‘‘(B) SPECIAL RULE FOR CORPORATIONS.—In ‘‘(A) IN GENERAL.—The term ‘material ad- (a) IN GENERAL.—Subchapter A of chapter the case of a corporation other than an S visor’ means any person— 68 is amended by inserting after section corporation or a personal holding company ‘‘(i) who provides any material aid, assist- 6662A the following new section: (as defined in section 542), there is a substan- ance, or advice with respect to organizing, ‘‘SEC. 6662B. PENALTY FOR UNDERSTATEMENTS tial understatement of income tax for any managing, promoting, selling, implementing, ATTRIBUTABLE TO TRANSACTIONS taxable year if the amount of the understate- LACKING ECONOMIC SUBSTANCE, or carrying out any reportable transaction, ment for the taxable year exceeds the lesser ETC. and of— ‘‘(a) IMPOSITION OF PENALTY.—If a taxpayer ‘‘(ii) who directly or indirectly derives ‘‘(i) 10 percent of the tax required to be has an noneconomic substance transaction gross income in excess of the threshold shown on the return for the taxable year (or, understatement for any taxable year, there amount for such aid, assistance, or advice. if greater, $10,000), or shall be added to the tax an amount equal to ‘‘(B) THRESHOLD AMOUNT.—For purposes of ‘‘(ii) $10,000,000.’’. 40 percent of the amount of such understate- subparagraph (A), the threshold amount is— (b) REDUCTION FOR UNDERSTATEMENT OF ment. ‘‘(i) $50,000 in the case of a reportable TAXPAYER DUE TO POSITION OF TAXPAYER OR ‘‘(b) REDUCTION OF PENALTY FOR DISCLOSED transaction substantially all of the tax bene- TRANSACTIONS.—Subsection (a) shall be ap- DISCLOSED ITEM.— fits from which are provided to natural per- plied by substituting ‘20 percent’ for ‘40 per- (1) IN GENERAL.—Section 6662(d)(2)(B)(i) (re- sons, and cent’ with respect to the portion of any non- lating to substantial authority) is amended ‘‘(ii) $250,000 in any other case. economic substance transaction understate- to read as follows: ‘‘(2) REPORTABLE TRANSACTION.—The term ment with respect to which the relevant ‘‘(i) the tax treatment of any item by the ‘reportable transaction’ has the meaning facts affecting the tax treatment of the item taxpayer if the taxpayer had reasonable be- are adequately disclosed in the return or a lief that the tax treatment was more likely given to such term by section 6707A(c). ‘‘(c) REGULATIONS.—The Secretary may statement attached to the return. than not the proper treatment, or’’. prescribe regulations which provide— ‘‘(c) NONECONOMIC SUBSTANCE TRANSACTION (2) CONFORMING AMENDMENT.—Section ‘‘(1) that only 1 person shall be required to UNDERSTATEMENT.—For purposes of this sec- 6662(d) is amended by adding at the end the meet the requirements of subsection (a) in tion— following new paragraph: cases in which 2 or more persons would oth- ‘‘(1) IN GENERAL.—The term ‘noneconomic ‘‘(3) SECRETARIAL LIST.—For purposes of erwise be required to meet such require- substance transaction understatement’ this subsection, section 6664(d)(2), and sec- ments, means any amount which would be an under- tion 6694(a)(1), the Secretary may prescribe a ‘‘(2) exemptions from the requirements of statement under section 6662A(b)(1) if section list of positions for which the Secretary be- this section, and 6662A were applied by taking into account lieves there is not substantial authority or ‘‘(3) such rules as may be necessary or ap- items attributable to noneconomic sub- there is no reasonable belief that the tax propriate to carry out the purposes of this stance transactions rather than items to treatment is more likely than not the proper section.’’. which section 6662A would apply without re- tax treatment. Such list (and any revisions (b) CONFORMING AMENDMENTS.— gard to this paragraph. thereof) shall be published in the Federal (1) The item relating to section 6111 in the ‘‘(2) NONECONOMIC SUBSTANCE TRANS- Register or the Internal Revenue Bulletin.’’. table of sections for subchapter B of chapter ACTION.—The term ‘noneconomic substance (c) EFFECTIVE DATE.—The amendments transaction’ means any transaction if— made by this section shall apply to taxable 61 is amended to read as follows: ‘‘(A) there is a lack of economic substance years beginning after the date of the enact- ‘‘Sec. 6111. Disclosure of reportable trans- (within the meaning of section 7701(n)(1)) for ment of this Act. actions.’’.

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00024 Fmt 4634 Sfmt 0655 E:\CR\FM\A05MY7.008 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2575 (2)(A) So much of section 6112 as precedes any listed transaction shall be an amount Subtitle B—Enron-Related Tax Shelter subsection (c) thereof is amended to read as equal to the greater of— Provisions follows: ‘‘(A) $200,000, or SEC. 221. LIMITATION ON TRANSFER OR IMPOR- ‘‘SEC. 6112. MATERIAL ADVISORS OF REPORT- ‘‘(B) 50 percent of the gross income derived TATION OF BUILT-IN LOSSES. ABLE TRANSACTIONS MUST KEEP by such person with respect to aid, assist- (a) IN GENERAL.—Section 362 (relating to LISTS OF ADVISEES. ance, or advice which is provided with re- basis to corporations) is amended by adding ‘‘(a) IN GENERAL.—Each material advisor spect to the listed transaction before the at the end the following new subsection: (as defined in section 6111) with respect to date the return including the transaction is ‘‘(e) LIMITATIONS ON BUILT-IN LOSSES.— any reportable transaction (as defined in sec- filed under section 6111. ‘‘(1) LIMITATION ON IMPORTATION OF BUILT-IN tion 6707A(c)) shall maintain, in such manner Subparagraph (B) shall be applied by sub- LOSSES.— as the Secretary may by regulations pre- stituting ‘75 percent’ for ‘50 percent’ in the ‘‘(A) IN GENERAL.—If in any transaction describe, a list— case of an intentional failure or act described in subsection (a) or (b) there would ‘‘(1) identifying each person with respect to scribed in subsection (a). (but for this subsection) be an importation of whom such advisor acted as such a material ‘‘(c) CERTAIN RULES TO APPLY.—The provi- a net built-in loss, the basis of each property advisor with respect to such transaction, and sions of section 6707A(d) shall apply to any described in subparagraph (B) which is ac- ‘‘(2) containing such other information as penalty imposed under this section. quired in such transaction shall (notwith- ‘‘(d) REPORTABLE AND LISTED TRANS- the Secretary may by regulations require. standing subsections (a) and (b)) be its fair This section shall apply without regard to ACTIONS.—The terms ‘reportable transaction’ market value immediately after such trans- whether a material advisor is required to file and ‘listed transaction’ have the respective action. a return under section 6111 with respect to meanings given to such terms by section ‘‘(B) PROPERTY DESCRIBED.—For purposes such transaction.’’. 6707A(c).’’. of subparagraph (A), property is described in (B) Section 6112 is amended by redesig- (b) CLERICAL AMENDMENT.—The item relat- this subparagraph if— nating subsection (c) as subsection (b). ing to section 6707 in the table of sections for ‘‘(i) gain or loss with respect to such prop- (C) Section 6112(b), as redesignated by subpart I of subchapter B of chapter 68 is erty is not subject to tax under this subtitle paragraph (B), is amended— amended by striking ‘‘tax shelters’’ and in- in the hands of the transferor immediately (i) by inserting ‘‘written’’ before ‘‘request’’ serting ‘‘reportable transactions’’. before the transfer, and in paragraph (1)(A), and (c) EFFECTIVE DATE.—The amendments ‘‘(ii) gain or loss with respect to such prop- (ii) by striking ‘‘shall prescribe’’ in para- made by this section shall apply to returns erty is subject to such tax in the hands of graph (2) and inserting ‘‘may prescribe’’. the due date for which is after the date of the transferee immediately after such trans- (D) The item relating to section 6112 in the the enactment of this Act. fer. table of sections for subchapter B of chapter SEC. 209. MODIFICATION OF PENALTY FOR FAIL- In any case in which the transferor is a part- 61 is amended to read as follows: URE TO MAINTAIN LISTS OF INVES- TORS. nership, the preceding sentence shall be ap- ‘‘Sec. 6112. Material advisors of reportable (a) IN GENERAL.—Subsection (a) of section plied by treating each partner in such part- transactions must keep lists of 6708 is amended to read as follows: nership as holding such partner’s propor- advisees.’’. ‘‘(a) IMPOSITION OF PENALTY.— tionate share of the property of such part- (3)(A) The heading for section 6708 is ‘‘(1) IN GENERAL.—If any person who is re- nership. amended to read as follows: quired to maintain a list under section ‘‘(C) IMPORTATION OF NET BUILT-IN LOSS.— ‘‘SEC. 6708. FAILURE TO MAINTAIN LISTS OF 6112(a) fails to make such list available upon For purposes of subparagraph (A), there is an ADVISEES WITH RESPECT TO RE- written request to the Secretary in accord- importation of a net built-in loss in a trans- PORTABLE TRANSACTIONS.’’. ance with section 6112(b)(1)(A) within 20 busi- action if the transferee’s aggregate adjusted (B) The item relating to section 6708 in the ness days after the date of the Secretary’s bases of property described in subparagraph table of sections for part I of subchapter B of request, such person shall pay a penalty of (B) which is transferred in such transaction chapter 68 is amended to read as follows: $10,000 for each day of such failure after such would (but for this paragraph) exceed the 20th day. ‘‘Sec. 6708. Failure to maintain lists of fair market value of such property imme- ‘‘(2) REASONABLE CAUSE EXCEPTION.—No diately after such transaction. advisees with respect to report- penalty shall be imposed by paragraph (1) able transactions.’’. ‘‘(2) LIMITATION ON TRANSFER OF BUILT-IN with respect to the failure on any day if such LOSSES IN SECTION 351 TRANSACTIONS.— (c) REQUIRED DISCLOSURE NOT SUBJECT TO failure is due to reasonable cause.’’. ‘‘(A) IN GENERAL.—If— CLAIM OF CONFIDENTIALITY.—Subparagraph (b) EFFECTIVE DATE.—The amendment (A) of section 6112(b)(1), as redesignated by ‘‘(i) property is transferred by a transferor made by this section shall apply to requests in any transaction which is described in sub- subsection (b)(2)(B), is amended by adding at made after the date of the enactment of this the end the following new flush sentence: section (a) and which is not described in Act. paragraph (1) of this subsection, and ‘‘For purposes of this section, the identity of SEC. 210. PENALTY ON PROMOTERS OF TAX any person on such list shall not be privi- ‘‘(ii) the transferee’s aggregate adjusted SHELTERS. bases of such property so transferred would leged.’’. (a) PENALTY ON PROMOTING ABUSIVE TAX (but for this paragraph) exceed the fair mar- (d) EFFECTIVE DATE.—The amendments SHELTERS.—Section 6700(a) is amended by ket value of such property immediately after made by this section shall apply to trans- adding at the end the following new sen- such transaction, actions with respect to which material aid, tence: ‘‘Notwithstanding the first sentence, then, notwithstanding subsection (a), the assistance, or advice referred to in section if an activity with respect to which a pen- transferee’s aggregate adjusted bases of the 6111(b)(1)(A)(i) of the Internal Revenue Code alty imposed under this subsection involves property so transferred shall not exceed the of 1986 (as added by this section) is provided a statement described in paragraph (2)(A), fair market value of such property imme- after the date of the enactment of this Act. the amount of the penalty shall be equal to diately after such transaction. SEC. 208. MODIFICATIONS TO PENALTY FOR FAIL- 50 percent of the gross income derived (or to ‘‘(B) ALLOCATION OF BASIS REDUCTION.—The URE TO REGISTER TAX SHELTERS. be derived) from such activity by the person aggregate reduction in basis by reason of (a) IN GENERAL.—Section 6707 (relating to on which the penalty is imposed.’’. failure to furnish information regarding tax (b) EFFECTIVE DATE.—The amendment subparagraph (A) shall be allocated among shelters) is amended to read as follows: made by this section shall apply to activities the property so transferred in proportion to ‘‘SEC. 6707. FAILURE TO FURNISH INFORMATION after the date of the enactment of this Act. their respective built-in losses immediately REGARDING REPORTABLE TRANS- SEC. 211. INCREASES IN PENALTIES FOR AIDING before the transaction. ACTIONS. AND ABETTING UNDERSTATEMENTS. ‘‘(C) EXCEPTION FOR TRANSFERS WITHIN AF- ‘‘(a) IN GENERAL.—If a person who is re- (a) IN GENERAL.—Section 6701(b) is amend- FILIATED GROUP.—Subparagraph (A) shall not quired to file a return under section 6111(a) ed to read as follows: apply to any transaction if the transferor with respect to any reportable transaction— ‘‘(b) AMOUNT OF PENALTY.— owns stock in the transferee meeting the re- ‘‘(1) fails to file such return on or before ‘‘(1) IN GENERAL.—The amount of the pen- quirements of section 1504(a)(2). In the case the date prescribed therefor, or alty imposed by subsection (a) shall be the of property to which subparagraph (A) does ‘‘(2) files false or incomplete information greater of— not apply by reason of the preceding sen- with the Secretary with respect to such ‘‘(A) $2,000, or tence, the transferor’s basis in the stock re- transaction, ‘‘(B) 50 percent of the gross income derived ceived for such property shall not exceed its such person shall pay a penalty with respect (or to be derived) from the activity giving fair market value immediately after the to such return in the amount determined rise to the penalty. transfer.’’. under subsection (b). ‘‘(2) CORPORATIONS.—If the return, affi- (b) COMPARABLE TREATMENT WHERE LIQ- ‘‘(b) AMOUNT OF PENALTY.— davit, claim, or other document relates to UIDATION.—Paragraph (1) of section 334(b) (re- ‘‘(1) IN GENERAL.—Except as provided in the tax liability of a corporation, paragraph lating to liquidation of subsidiary) is amend- paragraph (2), the penalty imposed under (1)(A) shall be applied by substituting ed to read as follows: subsection (a) with respect to any failure ‘$20,000’ for ‘$2,000’.’’ ‘‘(1) IN GENERAL.—If property is received by shall be $50,000. (b) EFFECTIVE DATE.—The amendment a corporate distributee in a distribution in a ‘‘(2) LISTED TRANSACTIONS.—The penalty made by this section shall apply to activities complete liquidation to which section 332 ap- imposed under subsection (a) with respect to after the date of the enactment of this Act. plies (or in a transfer described in section

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00025 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.008 H05PT1 H2576 CONGRESSIONAL RECORD — HOUSE May 5, 2004 337(b)(1)), the basis of such property in the ‘‘(5) EXCEPTION FOR CERTAIN INSTRUMENTS The Chair recognizes the gentleman hands of such distributee shall be the same ISSUED BY DEALERS IN SECURITIES.—For pur- from Massachusetts (Mr. NEAL). as it would be in the hands of the transferor; poses of this subsection, the term ‘disquali- Mr. NEAL of Massachusetts. Mr. except that the basis of such property in the fied debt instrument’ does not include in- Speaker, I yield myself such time as I hands of such distributee shall be the fair debtedness issued by a dealer in securities may consume. market value of the property at the time of (or a related party) which is payable in, or the distribution— by reference to, equity (other than equity of Mr. Speaker, the gentleman from ‘‘(A) in any case in which gain or loss is the issuer or a related party) held by such Pennsylvania (Mr. ENGLISH) is a good recognized by the liquidating corporation dealer in its capacity as a dealer in securi- friend of mine. He is a member of the with respect to such property, or ties. For purposes of this paragraph, the Committee on Ways and Means, and he ‘‘(B) in any case in which the liquidating term ‘dealer in securities’ has the meaning really is a very decent guy, but he is corporation is a foreign corporation, the cor- given such term by section 475.’’. really wrong in what he said earlier. To porate distributee is a domestic corporation, (c) CONFORMING AMENDMENTS.—Paragraph suggest that these tax cuts and this (3) of section 163(l) is amended— and the corporate distributee’s aggregate ad- mania that we have witnessed now for justed bases of property described in section (1) by striking ‘‘or a related party’’ in the 362(e)(1)(B) which is distributed in such liq- material preceding subparagraph (A) and in- tax cuts for the last 3 years has not had uidation would (but for this subparagraph) serting ‘‘or any other person’’, and a substantial impact on the size of Fed- exceed the fair market value of such prop- (2) by striking ‘‘or interest’’ each place it eral deficit is to really put our heads in erty immediately after such liquidation.’’. appears. the sand. Let me remind Members of (c) EFFECTIVE DATES.— (d) EFFECTIVE DATE.—The amendments this House we are now fighting two (1) IN GENERAL.—The amendment made by made by this section shall apply to debt in- wars with three tax cuts, and the struments issued after the date of the enact- subsection (a) shall apply to transactions mathematics are there for everybody after the date of the enactment of this Act. ment of this Act. to see. (2) LIQUIDATIONS.—The amendment made SEC. 224. EXPANDED AUTHORITY TO DISALLOW by subsection (b) shall apply to liquidations TAX BENEFITS UNDER SECTION 269. An announcement this morning by after the date of the enactment of this Act. (a) IN GENERAL.—Subsection (a) of section Secretary Rumsfeld that 135,000 troops SEC. 222. NO REDUCTION OF BASIS UNDER SEC- 269 (relating to acquisitions made to evade or now are going to stay in Iraq for an ex- TION 734 IN STOCK HELD BY PART- avoid income tax) is amended to read as fol- tended tour of duty, well into the year NERSHIP IN CORPORATE PARTNER. lows: 2005, and let us be honest with the ‘‘(a) IN GENERAL.—If— (a) IN GENERAL.—Section 755 is amended by American people, they are there for adding at the end the following new sub- ‘‘(1)(A) any person or persons acquire, di- section: rectly or indirectly, control of a corporation, 2006 and 2007 and maybe through 2010. ‘‘(c) NO ALLOCATION OF BASIS DECREASE TO or That is the reality that we confront. STOCK OF CORPORATE PARTNER.—In making ‘‘(B) any corporation acquires, directly or We are going to a $500 billion deficit an allocation under subsection (a) of any de- indirectly, property of another corporation this year after coming out of the Clin- crease in the adjusted basis of partnership and the basis of such property, in the hands ton years when we not only balanced property under section 734(b)— of the acquiring corporation, is determined the budget but projected surpluses for ‘‘(1) no allocation may be made to stock in by reference to the basis in the hands of the years to come. a corporation (or any person which is related transferor corporation, and (within the meaning of section 267(b) or ‘‘(2) the principal purpose for which such I want to remind ‘‘all is well’’ that 707(b)(1)) to such corporation) which is a acquisition was made is evasion or avoidance this proposal from the gentleman from partner in the partnership, and of Federal income tax, Connecticut today has never even been ‘‘(2) any amount not allocable to stock by then the Secretary may disallow such deduc- vetted in the Committee on Ways and reason of paragraph (1) shall be allocated tion, credit, or other allowance. For purposes Means. Maybe I am mistaken, but I be- under subsection (a) to other partnership of paragraph (1)(A), control means the own- lieve after having served in that com- property in such manner as the Secretary ership of stock possessing at least 50 percent mittee for 12 years that the Committee may prescribe. of the total combined voting power of all Gain shall be recognized to the partnership classes of stock entitled to vote or at least 50 on Ways and Means has a responsi- to the extent that the amount required to be percent of the total value of all shares of all bility for tax revenue issues. So this is allocated under paragraph (2) to other part- classes of stock of the corporation.’’. being brought to us by an individual nership property exceeds the aggregate ad- (b) EFFECTIVE DATE.—The amendment who is not on the committee and in- justed basis of such other property imme- made by this section shall apply to stock and deed it has not been aired in the com- diately before the allocation required by property acquired after the date of the en- mittee. There has been no public hear- actment of this Act. paragraph (2).’’. ing on the proposal that we are going (b) EFFECTIVE DATE.—The amendment SEC. 225. MODIFICATION OF INTERACTION BE- made by this section shall apply to distribu- TWEEN SUBPART F AND PASSIVE to vote on in an hour. So we find our- tions after the date of the enactment of this FOREIGN INVESTMENT COMPANY selves having this debate about alter- Act. RULES. native minimum tax. (a) LIMITATION ON EXCEPTION FROM PFIC SEC. 223. EXPANDED DISALLOWANCE OF DEDUC- And I want to say something. I think TION FOR INTEREST ON CONVERT- RULES FOR UNITED STATES SHAREHOLDERS OF my hands are clean on this issue. I CONTROLLED FOREIGN CORPORATIONS.—Para- IBLE DEBT. have heard them say that the Demo- (a) IN GENERAL.—Paragraph (2) of section graph (2) of section 1297(e) (relating to pas- 163(l) is amended by inserting ‘‘or equity sive foreign investment company) is amend- crats put this in place in the reform of held by the issuer (or any related party) in ed by adding at the end the following flush the Tax Act of 1986. That may well be any other person’’ after ‘‘or a related party’’. sentence: the case, but let me tell the Members (b) CAPITALIZATION ALLOWED WITH RESPECT ‘‘Such term shall not include any period if something. I am in favor of repealing TO EQUITY OF PERSONS OTHER THAN ISSUER the earning of subpart F income by such cor- it. I think there ought to be some in- AND RELATED PARTIES.—Section 163(l) is poration during such period would result in tellectual honesty as it relates to amended by redesignating paragraphs (4) and only a remote likelihood of an inclusion in (5) as paragraphs (5) and (6) and by inserting gross income under section 951(a)(1)(A)(i).’’. AMT. It has outlived its usefulness. It after paragraph (3) the following new para- (b) EFFECTIVE DATE.—The amendment has outlived its purpose, and now mid- graph: made by this section shall apply to taxable dle-income taxpayers are now being ‘‘(4) CAPITALIZATION ALLOWED WITH RESPECT years of controlled foreign corporations be- asked to carry its burden. TO EQUITY OF PERSONS OTHER THAN ISSUER ginning after the date of the enactment of We have a game of kind of hocus- AND RELATED PARTIES.—If the disqualified this Act, and to taxable years of United pocus here. The Republicans stand up debt instrument of a corporation is payable States shareholders with or within which and say, well, we are going to give such taxable years of controlled foreign cor- in equity held by the issuer (or any related AMT relief. They are not giving AMT party) in any other person (other than a re- porations end. lated party), the basis of such equity shall be Amend the title so as to read: ‘‘A bill to to the number of people they could and increased by the amount not allowed as a de- provide for significant temporary relief from should be giving AMT relief to, largely duction by reason of paragraph (1) with re- the alternative minimum tax and for a because it does not square with the tax spect to the instrument.’’. framework for a total reform of the alter- cuts that the administration has pro- (c) EXCEPTION FOR CERTAIN INSTRUMENTS native minimum tax.’’. posed, and once again Republicans in ISSUED BY DEALERS IN SECURITIES.—Section The SPEAKER pro tempore. Pursu- this House go along with very few ques- 163(l), as amended by subsection (b), is amended by redesignating paragraphs (5) and ant to House Resolution 619, the gen- tions asked about any issue. The ad- (6) as paragraphs (6) and (7) and by inserting tleman from Massachusetts (Mr. NEAL) ministration says it is so, they just go after paragraph (4) the following new para- and a Member opposed each will con- along with it, no questions asked, even graph: trol 30 minutes. if the evidence a few weeks, months,

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00026 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.008 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2577 years later turns a contrary conclu- mittee on Ways and Means to hold a AMT. That sounds like good politics, sion. hearing on this proposal in the com- but at a time when our economy is Let me speak specifically, if I can, to mittee. This is the introduction to struggling, at a time when even people this issue as it relates to this debate their proposal today on the House on the other side of the aisle have con- today. The alternative minimum tax floor. Nobody has seen it until about ceded that corporate tax rates in our was originally designed to make sure an hour and a half ago. country and on our companies and that everyone paid their fair share. So let us engage this debate. Let us workers are higher than those globally Who among us can argue with that? have an opportunity to draw some at- and are a clear competitive disadvan- The second notion of the proposal that tention to what it is that they are say- tage to our companies who are seeking we have offered today is that we want ing but, most importantly, to what it to keep jobs here in the United States, to grant some relief to the burden that is that they are doing. that the idea of permanently raising the Republican Party has put on mid- Mr. Speaker, I reserve the balance of corporate taxes is one that I think is dle-income tax earners. If they, in fact, my time. striking and I think uniquely ill con- take advantage of certain credits in Mr. ENGLISH. Mr. Speaker, I rise to ceived. the Tax Code and they have a lot of claim the time in opposition to the b 1300 children, they are penalized by their amendment in the nature of a sub- proposal. Do the Members know why? stitute. What they have proposed doing is It is very simple, because the philos- The SPEAKER pro tempore. The gen- generating revenue through the perma- ophy of the majority in of this body is tleman from Pennsylvania (Mr. nent implementation of something that the only people in America that ENGLISH) is recognized for 30 minutes. called the economic substance doc- ought to have tax relief are the Mr. ENGLISH. Mr. Speaker, I yield trine. Economic substance is a doctrine wealthy. myself such time as I may consume. that our courts apply on a discre- And to the credit of the wealthy 3 This has been a fascinating debate tionary basis to situations which erode years ago, they were not even asking today, and I particularly want to con- our rules-based tax system. for tax relief. They wanted to pay down gratulate the gentleman for his con- The substitute attempts to codify the debt, and public opinion polling tribution. The gentleman from Massa- this judicial doctrine and expand its concludes, once again, they still think chusetts, as with his customary elo- definition so the IRS can pick apart that paying down the deficits are a far quence, has laid out his position, and any ordinary business transaction and better use of taxpayer money than giv- in the process perhaps subconsciously subjectively look for reasonable busi- ing tax relief to even those who might has drawn a striking contrast between ness purposes. The result is a new re- benefit most from it. the two parties and perhaps one that he quirement for taxpayers to have yet They promised that they were going had not intended. He characterizes, another layer of IRS intervention and to do something about tax reform as it first of all, Republican tax relief as ma- be burdened with restrictions in ways relates to AMT. But what they did not niacal. I think that is an interesting that the courts have not even consid- tell them was that they are going to choice of words, but as I look at it, it ered. I realize that there are some who give them tax relief on one hand and perhaps I think accurately captures have embraced this on the Senate side, then if they sit down to do their tax the view on the other side of tax relief but no one on our side of the aisle here forms, they are going to take it away and a tax program that is already lift- in the House of Representatives so far from them if they have four or five ing the economy, that is creating jobs, has done so. The result would be a new children. If people desire to use the that is creating opportunities through- requirement for taxpayers and another HOPE credit, they are going to take it out America, including for a lot of peo- layer of IRS intervention. away from them. If they try to take ple who were not directly the bene- The proposal would then propose advantage of the child credit, they are ficiary of as much tax relief as we strict liability penalties on understate- going to take it away from them. So would have liked. ments of tax, which would not be lim- they give it to them on one hand and Let me say in addition to that, there ited to abusive transactions. The pro- they take it back on the other. So in has been the procedural argument posal, in our view, is far too broad and the end, there really is no tax relief as made here that this proposal before us significantly expands common-law doc- it relates to alternative minimum tax. today has not been adequately vetted. trines. I want the Members to listen to this. Mr. Speaker, to be very clear, this lan- There is also no indication that the Half, half of the promised benefits that guage is similar to what has been in- doctrine would be limited to abusive we voted on last week under the mar- cluded in the tax bill that passed. This transactions. While we are currently riage penalty bill, we were told we were kind of language has been many times debating a 1-year extension of tax re- going to provide relief to those folks as before the body. We have thoroughly lief for working families, let me make well, they are taken back to the Treas- debated within the Committee on Ways this clear again: this substitute levies ury by alternative minimum tax. and Means the issue of the alternative a permanent tax increase on employers I have offered time and again, Mr. minimum tax, and it is not clear that and ultimately on the labor of the Speaker, a couple of very easy pro- additional hearings would have pro- workers that they employ. posals in this body. Let us get rid of vided a substantive additional agenda. The gentleman from New York (Mr. AMT. Let us scale back the size of the I am delighted to hear the gentleman RANGEL) has himself indicated support tax cuts the administration offered. come out in favor of full repeal be- for lower corporate tax rates for our Let us pay down the deficit. Let us pay cause, as I said to the gentleman from manufacturers in his own bill to re- for these two wars. Let us fix Social New York earlier in our discussion, I place the FSC/ETI regime. Here his Security. Let us fix Medicare, as Amer- invite the gentleman to join with me proxy is insisting on raising their taxes ican people clearly desire. And let us and other members of the zero AMT by $15 billion. give tax relief to middle-income Ameri- caucus to come together and to work In addition to a $15 billion tax in- cans, particularly from alternative through a proposal to get rid of this crease, companies would now have to minimum tax. AMT. spend valuable time and resources I hope in the next few minutes as we The substitute that we have now managing the implications of the law, engage this debate, we will have a risen to debate, though, was not I when they could be using these re- chance to put the magnifying glass on think adequately discussed in the gen- sources to expand their operations, in- the proposal that is before us today. tleman’s remarks, and perhaps there is vest in production lines, and create And I have got to tell the Members, as where the contrast is clearest. Because jobs. Instead, what this proposal effec- a member of the oldest committee in in an effort to, as they put it, pay for tively does is create jobs only in the this House, a committee that I believe the AMT relief that is included in the legal profession. is so desirable to sit on, a committee bill, what they have proposed doing is Mr. Speaker, the House has voted re- whose history is so profound as it re- permanently putting in place an in- peatedly against this tax increase be- lates to this Republic, they did not crease of corporate taxes in order to cause it is bad tax policy, bad eco- even have enough regard for the Com- pay for 1-year relief to the individual nomic policy, and it further hinders

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00027 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.043 H05PT1 H2578 CONGRESSIONAL RECORD — HOUSE May 5, 2004 American competitiveness and does so Mr. Speaker, I yield 4 minutes to the have to pay more taxes, are not voting, permanently. I think it is fairly clear distinguished gentleman from Mary- so they are not focused on what you that what is being attempted here in land (Mr. HOYER), the Democratic are doing, this shell game you are play- this substitute is to take something whip. ing of pretending you are cutting that we really need to do, addressing Mr. HOYER. Mr. Speaker, I thank taxes. the problem of the AMT, and attach to the gentleman for yielding me time. You are delaying taxes, is what you it something off of a wish-list from the Mr. Speaker, this debate on the alter- are doing; and you are increasing them left, which, frankly, has no place here native minimum tax epitomizes, unfor- at the same time. The fact is, the at a time when we are trying to buoy tunately, precisely what is wrong in Democratic substitute provides a sim- the economy. this House today: the Republican lead- pler and broader relief. It is fiscally re- I think it is worth noting that the ership’s refusal to seize bipartisan op- sponsible. That used to be the mantra last time someone really aggressively portunities where they exist, and its of your party. Many of your folks talk proposed to raise taxes during a slow- desire to turn every tax bill into a deci- about it today. They do not vote that down was Mr. Hoover, so there may sive political bludgeon. way, however. even be some Republican genealogy in Let us be honest: every Member of It is ironic, Mr. Speaker, that this the proposal we are seeing offered on this House, without exception, recog- Republican majority, which talks the other side. But the Republicans of nizes that we must fix the alternative about tax fairness and simplification, today do not recognize this as a posi- minimum tax. That is not what this in the last 31⁄2 years has only made our tive thing. debate is about. When the AMT was en- Tax Code much more complicated. Let me summarize the bill of particu- acted in 1969, it was supposed to ensure Let us not perpetuate tax confusion lars against the Rangel substitute and that wealthy taxpayers paid a fair and complexity. Let us help those who specifically the economic substance share, that is to say, that you did not need help. Let us pay for what we do. doctrine. have your accountants figure out 17 That is the responsible policy. That First of all, it is a permanent tax in- ways to Sunday that you would not would make this Congress responsible. crease. Although the AMT relief in the pay any taxes to support this democ- We can do so in a bipartisan way. Vote Democratic substitute is temporary, racy, this Republic, this great Nation. for this substitute. Mr. ENGLISH. Mr. Speaker, I yield the tax increases are permanent. We said in a bipartisan way, you In addition, the administration ought to pay something. But because it myself 10 seconds to thank the gentleman for his salute to the simplicity strongly opposes codification of the was not indexed for inflation, the AMT of the economic substance doctrine, economic substance doctrine. They today ensnares more and more middle- and we look forward to the vote on the have looked at it, and they have found income taxpayers. That was not the intent of any Member of this House. It substitute. it wanting. Acting Treasury Assistant Mr. Speaker, I yield 3 minutes to the forces them to pay more than they Secretary for Tax Policy, Gregory Jen- gentlewoman from Connecticut (Mrs. ner, has stated that codifying the eco- would under the regular tax schedule. JOHNSON), a member of the Committee nomic substance doctrine could be But rather than trying to find a bipar- on Ways and Means. counterproductive, as it would drive tisan solution to this growing and vex- Mrs. JOHNSON of Connecticut. Mr. tax shelters even further underground. ing problem, the majority has offered Speaker, I thank my colleague for Assistant Secretary Jenner has stated the legislative equivalent of a Band- yielding me time to speak on what I that the most effective way to stop tax Aid that would only drive us further consider to be a very important bill. shelter transactions is to require in- into debt. I rise in support of H.R. 4227 and com- creased disclosure. The administra- Make no mistake: the Democratic mend my colleague, the gentleman tion’s tax shelter proposal increases substitute drafted by the gentleman from Connecticut (Mr. SIMMONS), for disclosure by levying substantial pen- from New York (Mr. RANGEL) is vastly introducing this legislation. alties on those who fail to disclose superior. Where the Republican bill This bill is simply about keeping their transactions. would extend current AMT exemptions promises, about keeping the promise As I have noted, this proposal has for taxpayers whose adjusted gross in- made to the middle-class taxpayers been repeatedly rejected in the House, come is less than $40,250, or $58,000 for that we would provide child credits to and it would also hurt jobs and invest- married couples, the Democratic sub- reduce the taxes on our young families, ment. Codifying the economic substitute would say to individuals mak- that we would eliminate the marriage stance doctrine would result in busi- ing $125,000 or couples making $250,000, penalty, and that we would expand the nesses foregoing job-creating invest- the Alternative Minimum Tax was not 10 percent bracket so that those low ments because of concerns that the IRS meant for you. You will pay your reg- earners in America would not be bur- would improperly apply the economic ular taxes. It was meant for the very dened with tax liabilities. substance doctrine to legitimate trans- wealthy who exempted themselves Unfortunately, unless we pass this actions. from taxes. legislation, we will renege on that Finally, this proposal goes beyond I want you to know that I paid 10 per- promise of lower taxes and effectively accepted case law. The Democratic pro- cent more of my income, which is increase the taxes of 11 million tax- posal requires that some transactions about one-eighth of DICK CHENEY’s in- payers by on average $1,520. I can tell have at least a risk-free rate of return. come, the Vice President’s. Why? Be- you, that is a lot of money to families This type of provision goes beyond cause he has an extraordinary pref- in our country. We cut their taxes; and what is required by either the Tax Code erence item, $625,000 in income from we need to remain loyal to that policy or common-law court doctrines. Fur- municipal bonds. Zero taxes. But the that supports families, recognizes the thermore, their proposal does not de- soldiers who are defending the assets of circumstances of low-income individ- fine a risk-free rate of return. those municipal bonds, CDC is pro- uals and families in the 10 percent All things being equal, this is a very tecting the health of those in those bracket, and eliminates the gross un- poor substitute; and we urge its rejec- municipalities, as well as Mr. CHENEY’s fairness of the current marriage pen- tion. and mine. alty in our code. Mr. Speaker, I reserve the balance of Not one nickel of cost in the Repub- So I rise in strong support of the leg- my time. lican bill is paid for. Not one nickel. islation. It is temporary. I look for- Mr. NEAL of Massachusetts. Mr. My friends on the Republican side, you ward to working with my colleagues in Speaker, I yield myself such time as I are raising taxes, but you are slick; the administration on a permanent so- may consume. you are doing it by the back door. You lution, but passage of this legislation is Mr. Speaker, anytime that we can are increasing the debt. As a result of imperative. ask those companies that have moved increasing the debt, my kids are going I also strongly oppose the substitute. to Bermuda to avoid paying American to have to pay higher taxes. First of all, it is wrong to fund a 1-year taxes with 134,000 troops in Iraq to pay That is pretty slick. Why do I say it provision with a permanent increase in their share, I am happy to have my fin- is slick? My kids happen to be voting; taxes. It is also wrong to ‘‘clarify cur- gerprints on that issue. but my grandchildren, who are going to rent law’’ by muddying it. Current law

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00028 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.046 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2579 has a body of case law behind it which In the midst of the largest tax-cut- gesting that the tax cuts that we put in has helped to define the complex issues ting frenzy in our country’s history, place have not helped this economy. If and eliminate uncertainty. the Republican majority has used the we tune in to any show or read any Now, the current law could be im- $600 billion that is going to be ex- publication, whether it is CNBC or proved upon. Our Acting Assistant Sec- tracted from people who do not deserve CNN or to read Forbes Fortune or the retary of the Treasury, Gregory Jen- to pay this over the next 10 years, to Wall Street Journal, virtually every ner, has recommended, and the Treas- disguise the impact of their misguided person who studies the economy is giv- ury has strongly recommended, that policies. ing credit for this resurgence, if you we increase disclosure, that we require Now, I would suggest that it is inap- will, of opportunity due to the tax cuts more disclosure, and that by doing so, propriate to continue limping along as we have enacted. my Republican colleagues would do we could stop tax shelter transactions The AMT is a burden for middle in- today with the enactment of their pro- that were abusive. So we need to move come taxpayers. We in our bill solve posal. It just puts off the day of reck- to increase disclosure. that burden, and we do so without rais- But to add instead a new, com- oning, gets past another election and, ing corporate taxes. That is a good de- plicated doctrine of economic sub- they hope, can implement more of bate for a day, maybe today, maybe an- stance will cause the kind of confusion their true agenda: to provide more per- other day on corporate taxation, be- that retards investment. People will be manent tax relief for people who need cause we do understand a lot of compa- uncertain. This is a very complicated it the least. nies take their plants and facilities issue. They will not know what the Now, I would suggest that the Demo- overseas. government is going to do. They will cratic substitute, which is providing slow down investment, killing jobs. more help and not making deficits I asked the H.J. Heinz Company why When our recovery is soft, it is dumb worse, is a step in the right direction. they found so many countries com- to do something that will cost jobs now I join with my friend, the gentleman fortable for them to move plants to and and cost considerable jobs over the from Pennsylvania (Mr. ENGLISH) and they said we want to be close to those next few years. The Heritage Founda- the gentleman from Massachusetts who are buying our goods and services. tion has just come forward with an (Mr. NEAL) to come forward to either So I do not look at the Heinz Company analysis that says this would kill 3,000 repeal or fix the alternative minimum as unpatriotic for opening Heinz of jobs the first year and 15,000 jobs over tax. But we could do that in a minute Canada, Heinz of Ireland, Heinz of 5 years. Remember, many of our manu- if the Committee on Ways and Means France, or Heinz of whatever countries facturers pay taxes and would be af- would return to its historic way of they settle in. But I do recognize that fected by this, just at the time when doing business, being bipartisan, at times, companies do make decisions they are getting back on their feet. maybe even considering legislation based on their locations, based on the So what you do not need in the Tax like this in committee before bringing Tax Code of this country. Code is uncertainty. We have a problem it to the floor, allowing debate back All agree that our corporate taxes in the Tax Code. We need to deal with and forth, allowing amendments. I today are too high, and in the Rangel it. A 1-year extension is the right way think we would have a bipartisan ma- substitute, they raise them further. So to go at this time. jority that would put 400 votes on the we start off with a problem of sub- Mr. Speaker, I thank the gentleman floor to get rid of the single greatest stance in their bill that actually fur- and oppose the substitute. inequity in the Tax Code. ther punishes corporations who are Instead, the drum-beat from my Mr. NEAL of Massachusetts. Mr. trying to provide jobs here in America friends on the other side of the aisle is Speaker, I yield myself such time as I for the citizens of our country. So the to make permanent the most egregious may consume. administration and this committee, Mr. Speaker, I remind the Republican part of their program for the people the Committee on Ways and Means on Members a year ago in the Committee who need it least, and holding hostage the Republican side, do oppose what on Ways and Means they had a chance some 35 million to 43 million American would be a $15 billion tax increase. to vote for my AMT bill, which would families with this sword of Damocles have done exactly some of the things holding over their heads. It is just We also recognize that this needs to we are proposing to do today. what they have done with the estate be dealt with, and we have dealt with Mr. Speaker, I yield 3 minutes to the tax. Instead of coming forward with a it. If we look back at our history, Pub- gentleman from Oregon (Mr. bipartisan reform that we are ready to lic Law 107–16, the Economic Growth BLUMENAUER). do and would get 300 or 400 votes, they and Tax Relief Reconciliation Act, we Mr. BLUMENAUER. Mr. Speaker, I have this bizarre thing where one has allowed the child credit, the adoption appreciate the gentleman’s courtesy in to be careful about what year they die, credit, the small savers credit to be permitting me to speak on this. to know how many wills they have to counted against the AMT in 2010. We Mr. Speaker, I find my friend from have in order to play the game with increased the exemption from 45 for 49 Pennsylvania’s commentary somewhat this year after year. for married couple, and 33 to 35 for sin- ironic because all independent observ- I think it is inappropriate and it is gle individuals. In public law 107–47, ers agree that after three rounds of shameful. It is time for us to take a the Job Creation and Worker Assist- massive tax cuts, we are getting very step in the right direction, with the ap- ance Act of 2002, we extended through little benefit for the magnitude of the proval of the Democratic substitute. 2003 the ability to claim nonrefundable costs involved. Mr. ENGLISH. Mr. Speaker, I am de- tax credits against the AMT. Public lighted to yield 3 minutes to the gen- b 1315 law 108–27, the Jobs and Growth Tax tleman from Florida (Mr. FOLEY), my Reconciliation Act of 2003 again ex- On our side of the aisle, we have had distinguished colleague on the Com- panded the amounts and extended the a variety of areas that would have put mittee on Ways and Means. amounts. The Tax Relief Act, H.R. 3521. far more people to work producing far Mr. FOLEY. Mr. Speaker, let me So there is a consistent history of more economic benefit for this country thank the gentleman from Pennsyl- our committee in a Republican-led at far less cost. vania for leading the debate today. I It is also ironic that somehow, the certainly want to salute my colleague, Congress moving forward on trying to blame; after 10 years of Republicans in the gentleman from Massachusetts minimize the grab, if you will, of the AMT. control, that somehow, this inequity is (Mr. NEAL). He has raised this AMT the problem of the Democrats. In fact, issue at every one of our hearings on Now, I believe as we try to determine under the watch of my Republican col- the Committee on Ways and Means. He on this bill how to give people an un- leagues, we have seen the ‘‘million- has kept this issue alive. It is impor- derstanding of how to file their taxes, aires’ tax’’ that was enacted in 1969 to tant for the people who are middle how to do their taxes, simplicity is the stop sheltering all income, now pun- wage-earners in our country to get best possible option, and I do look for- ishes people who pay their taxes, claim some relief. ward to the chance we have on our a child care credit, and save for their I disagree with the past speaker on committee to talk about simplifying future. suggesting we are limping along, sug- this very complicated Tax Code.

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00029 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.048 H05PT1 H2580 CONGRESSIONAL RECORD — HOUSE May 5, 2004 But today we are here to oppose the for any of their tax cuts, even those making a unanimous consent request Rangel substitute and genuinely sup- that help middle income taxpayers, but to the gentlewoman from Texas (Ms. port H.R. 4227 to provide relief for most go to high-income taxpayers. JACKSON-LEE). American families. Vote for the substitute. Let us begin (Ms. JACKSON-LEE asked and was Mr. NEAL of Massachusetts. Mr. to be honest with the American public. given permission to revise and extend Speaker, I am just curious, and I would Mr. ENGLISH. Mr. Speaker, I yield 3 her remarks.) ask the gentleman from Pennsylvania minutes to the gentleman from Mis- Ms. JACKSON-LEE of Texas. Mr. (Mr. ENGLISH) or perhaps the gen- souri (Mr. AKIN). Speaker, because H.R. 4227 does noth- Mr. AKIN. Mr. Speaker, I rise today tleman from Florida (Mr. FOLEY), since ing but increase taxes on the middle in strong opposition to the substitute this was never aired in the committee, class, I rise enthusiastically to support offered by the gentleman from New this proposal has not been brought up the Democratic substitute of the alter- York. I have heard the term ‘‘bipar- in front of the committee, will the au- native minimum tax relief of the gen- tisan’’ and ‘‘bipartisan solution’’ now thor of this proposal, will he be taking tleman from New York (Mr. RANGEL), for about half an hour, and it seems to his picture with the Committee on and I ask my colleagues to support it. Ways and Means later on at 2 o’clock? be a synonym for tax increases. That is exactly what we are talking about Mr. Speaker, I rise today in support of the Will we have him there for the photo- Democratic substitute presented here today by graph for history and posterity? I was here. Last week, Democrats claimed that my distinguished colleague, Congressman just wondering, since we now have non- the AMT needed to be fixed so that RANGEL. members of the committee bringing married couples could fully benefit The democratic substitute answers the these proposals forward. shortfalls found throughout the H.R. 4227. Mr. Speaker, I yield 3 minutes to the from the repeal of this marriage pen- While H.R. 4227 purports to provide tax relief distinguished gentleman from Michi- alty. Well, given the substitute, apparently what they really meant was that for our nation’s struggling middle class, the re- gan (Mr. LEVIN). ality is far from that. This bill is a mirage, a (Mr. LEVIN asked and was given per- only certain married people and only gimmick. It provides little to no relief for the mission to revise and extend his re- for a period of 1 year. Adding insult to injury, the Demo- majority of middle class Americans. This is an- marks.) crat substitute would also permanently Mr. LEVIN. Mr. Speaker, the country other Republican ploy to try and fool the mid- raise taxes on manufacturers and other should know there is a tax train wreck dle class that the Majority party is attempting job-creating parts of our economy. I coming along the tracks here, and to grant them tax relief. It is an attempt to cannot speak for other States, but I what is the Republican answer? Speed cover up the vast amount of tax relief given to can assure my colleagues that the last up the train, making tax cuts perma- wealthy individuals and big businesses. thing that manufacturers in the State nent, mainly, heavily, for the very Unfortunately this bill does more than just of Missouri want is to have their al- wealthy, and they essentially try to nothing, in reality it hurts our middle class. ready slim profits taxed even further. I hide the track. This bill will roll back a large portion of the Ad- really do not understand the logic of First of all, much of what is being ministration’s tax relief while at the same time wanting to go for a big tax increase on given is going to be taken back by the taking back over half of the benefits provide4d the very sector that is creating jobs in AMT. Secondly, while some is being by last weeks marriage penalty relief bill. This our economy. It seems to me that in taken back now, much more will be in just does not make sense. How can you claim the last couple of years, we have fi- future years. So what is the answer of to provide tax relief for the middle class by nally pulled out of a recession because proposing a bill that cuts back tax relief for the the Republican majority? The answer of the tax cuts, and now, we want to is, oh, blame the Democrats because of middle class? tax companies and they are the ones The Democratic substitute answers these actions taken what, 10 years ago, 12 that make the jobs. It does not make years ago, 15 years ago. The Repub- shortfalls. It provides the needed tax relief for any sense at all. our middle classes without any hidden tricks licans have run this place for 10 years, Mr. Speaker, the American people de- and their answer on the AMT is always or misrepresentations. It provides more tax reserve better than another Democrat lief to more people without rolling back past wait until next year. The gentleman tax increase. We are here today be- promises of tax relief to more people without from Massachusetts (Mr. NEAL) has cause in 1993, when President Clinton rolling back past promises of tax relief. In fact, heard that year after year. and the Democrats passed the largest, it provides tax relief to 1 million more families When the Republicans took over this one of the largest tax increases in his- then the GOP version and is substantially place, a third of 1 percent of taxpayers tory, they did so without indexing more effective in providing relief for middle were subject to the AMT. In 2004, that those taxes for inflation. As a result, class families making less than $250,000 a will be 7 times as many. So what do more and more middle income Ameri- year. Under the GOP plan a family of four they do? They extend it for 1 year, even cans are now hit with a tax that was earning a combined income of 95,000, resid- though in 2011, the percentage will go originally enacted to try to ensure that ing in a high tax state, will be forced to pay up to 11.2, many, many, many times only the wealthiest among us should more than the number who paid the pay taxes. the minimum tax. The Democratic Substitute is AMT when the Republicans took over. Now, this so-called the wealthiest 1 an easier more effective way to grant tax relief So why do they not act? Because it is percent is actually paying 37 percent of to the middle class and does away with the going to cost so much money. The esti- the total personal income taxes. One burdensome paperwork required under the mate is that if this bill is extended and percent is paying 37 percent of the Republican plan. essentially made permanent, during total personal income taxes in this While the IRS’s National Taxpayer Advocate the next 10 years, it would cost $550 bil- country. I am just not seeing the logic labeled the AMT as our nation’s most pressing lion, way beyond 17, and if you add in- of the fact that we have to have an- tax concern, the Democratic Substitute is a terest, $650 billion it would cost. So the other tax increase. serious long range plan to fix the problem, Republicans say, wait until next year Today, 3 million hard-working Amer- while the Republican plan is at best a stop- because they know they cannot act ican families are hit with the AMT, a gap measure. Our current tax system towards this year and be honest with the Amer- tax that the Congress never intended the middle class is a sinking ship filled with ican people. them to pay. If we do not act today, by holes. The current Republican proposal is a This Republican majority simply 2005, 11 million American families will bucket. We don’t need a bucket we need a cannot tell it straight to the American be burdened with the AMT. new ship. The Democratic Substitute is a step people. They set up a caucus, the Zero Mr. Speaker, I encourage my col- towards this goal. Please join me and vote in Tax Caucus. Why do they not just act leagues to reject another Democrat tax favor of the Democratic Substitute. this year instead of setting up a caucus increase, support House Resolution Mr. NEAL of Massachusetts. Mr. that is nothing more than a smoke 4227, which ensures that American fam- Speaker, a quick reminder to the pre- screen? ilies will receive the relief that they vious speaker. More than half of the The substitute is an honest attempt deserve. promised benefits last week of the mar- to do better and to pay for it. The Re- Mr. NEAL of Massachusetts. Mr. riage tax penalty are taken back under publican majority does not want to pay Speaker, I yield for the purpose of alternative minimum tax.

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00030 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.049 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2581 Mr. Speaker, I yield 3 minutes to the Mr. ENGLISH. Mr. Speaker, I yield 2 our cops, our teachers, our nurses, our gentleman from New York (Mr. HIN- minutes to the distinguished gen- firefighters, they will fall off that AMT CHEY). tleman from New Hampshire (Mr. cliff, and what you want to do is sim- b 1330 BRADLEY). ply build them a bigger ramp. That is Mr. BRADLEY of New Hampshire. the Republican plan. Mr. HINCHEY. Mr. Speaker, under Mr. Speaker, once again, I salute the Here is our substitute. If your ad- the Bush administration, 2.6 million hard work of my colleague from Penn- justed earnings are $250,000 or less, no jobs have been lost, long term unem- sylvania in bringing this issue to the AMT. No filings, no calculations, no ployment is at a record high. We have attention of the full House. confusion, no AMT tax. You do not gone from $5.6 trillion surplus in the Mr. Speaker, I oppose the substitute have to worry about it. We say, tax re- Federal budget to nearly $3 trillion in amendment. Why? This corporate tax lief for the middle class now. You say, deficit; and this year, the huge budget increase that is proposed would be a keep taxing them. We say we are going deficit is expected to reach $500 billion job killer. That is why. Right now at 35 to get to it now and fix it. You say we primarily due to the economic plans of percent for a corporate tax rate, we are just going to talk about it. We say, the President and congressional Repub- have the second highest corporate tax protect the middle class. You say, pro- licans. Four million people lost their rate in the world. We have a 5.7 percent tect the big offshore corporate tax health insurance; 1.3 million more peo- unemployment rate. And though we shelters and havens. We say reform. ple have gone into poverty. Median in- have seen progress over the last several You say status quo. We say, solve the come of middle class families is down months due to tax reduction, the time problem now and in the future. You $1,400. Thousands of schools are being is not appropriate right now to raise say, let us keep pointing the partisan forced to meet Federal education corporate taxes. fingers of blame at the past and not standards without additional Federal The second reason is the WTO. The solve this problem for the middle class. assistance. WTO tariffs have increased just re- Federal transportation and infra- They deserve better, the middle structure programs are on life support cently to 7 percent. We need to be ad- class. They deserve a real choice. They while Republicans squabble over the dressing this with the FSC/ETI reform deserve real tax relief and meaningful transportation bill. These are serious package, and the way that we are going reform which is why this substitute problems that we will not be address- to address this is reducing corporate makes sense, and why the act that we ing today. taxes, not raising corporate taxes. So are being given today is nothing more Reforming the alternative prelimi- the message of the substitute motion than more Harry Houdini trickery on nary tax is another serious matter and to raise corporate taxes is a job kill the middle class taxpayers. it is something that Congress should and it will not enable us to deal with Mr. ENGLISH. Mr. Speaker, I yield 2 take seriously. The Republican bill be- the looming crisis of the WTO issue. minutes to the gentleman from the fore us today, however, simply pushes So let us pass the underlying bill, State of Pennsylvania (Mr. SHUSTER). the problem down the road. By the end H.R. 4227, which gives a 1-year fix, an Mr. SHUSTER. Mr. Speaker, I thank of this decade, 33 million or 75 percent inflation adjustment to the alternative the gentleman for yielding me time. of families making between 75 and minimum tax. It ensures that couples Mr. Speaker, I rise today in strong $100,000 will be swept up into the AMT. who today are earning $58,000 will be opposition to the Rangel substitute It is obvious that this needs to be fixed. exempt from the AMT or for single in- and in support of H.R. 4227. I want to Republicans are to be blamed for this dividuals who are earning $40,000 will thank my colleague from Pennsylvania dilemma. Their irresponsible tax re- be exempt, and not moving those (Mr. ENGLISH) and the gentleman from ductions fail to include any form of the brackets down to $45,000 for a couple or Connecticut (Mr. SIMMONS) for their AMT despite the fact that they forced, $33,750 for a single individual. leadership on this important issue. and will continue to force millions of This bill, the underlying bill, will The AMT, created over 30 years ago middle income families who live in allow us to address the long-term to ensure the super wealthy were not high tax States to pay the costly alter- issues that are a sleeping giant of the escaping paying taxes, has grown out native minimum tax. What the Repub- alternative minimum tax. The fact of control and is now trapping millions lican bill would do today is borrow $20 that today 3 million people pay it, to- of middle class families in a com- billion to provide a 1-year extension of morrow, if we do not pass the under- plicated and costly tax system. the increased exemptions that middle lying bill, 11 million people pay it, and Under the leadership of President income families currently rely on to by the end of the decade, it will be one Bush, the 2001 and 2003 tax relief bills avoid paying the AMT. This is not real in every three taxpayers who will fall passed by this Congress included in- reform. It is procrastination and it is victim to the AMT. creases in exemption amounts which dangerous. It adds to our deficit and ef- We need the underlying bill today. ensured many middle income families fectively raises the Republican debt We do not need the substitute motion. would not be hit with this tax. If this tax that has ballooned under President Mr. NEAL of Massachusetts. Mr. Congress does not act, that relief will Bush. Speaker, I yield 3 minutes to the gen- disappear in 2005. The Democratic substitute provides tleman from New York (Mr. ISRAEL). If these exemption are allowed to ex- more tax relief to middle income fami- Mr. ISRAEL. Mr. Speaker, I thank pire, approximately 11 million tax- lies without adding a penny to our the gentleman for yielding me time. payers will be hit with an average tax debts. It would eliminate AMT liability Mr. Speaker, I rise in support of this increase of over $1,500. This substitute for taxpayers whose adjusted gross in- substitute. Last week when we debated is a misguided attempted to provide for come is less than $250,000; and it would the marriage penalty relief, I said this: AMT relief. While this provides tem- provide the framework for Congress That the bill that we were debating porary relief for some families, it does who begin reforming AMT. was not an act of Congress. It was an so by permanently raising taxes on the We Democrats support tax relief for act of Harry Houdini. Here today, gone country’s manufacturers and other cor- lower and middle income families. Our tomorrow. Give with one hand, snatch porations. bill does that. Democrats also are not away with the other. And one week While the economy is recovering and afraid to begin addressing the serious later here we are again, another act of job creation is steadily increasing, now problems facing our country. We are Houdini. is not the time to permanently in- willing to take them head on as evi- The majority’s AMT bill says to mid- crease taxes on our country’s job cre- denced by this substitute. dle class taxpayers, we are going to do ators. It is time the House got serious a little bit today and nothing tomor- I strongly support permanent reform about the issues facing our country row. Their bills says to middle class of the AMT. And, in fact, I have intro- today. Simply procrastinating, pushing taxpayers who are bleeding from the duced a bill that would index the AMT off problems on to the shoulders of our largest tax increase in the history of to inflation and end in a full repeal of children and grandchildren, that is the the middle class, take two aspirins, this terrible system in 2010. While I be- Republican plan. It is also unaccept- call us next year. Millions of middle lieve a long-term solution such as this able; it is immoral, and it must stop. class taxpayers are hurtling to a cliff, is needed to address the tax system,

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00031 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.051 H05PT1 H2582 CONGRESSIONAL RECORD — HOUSE May 5, 2004 doing nothing or voting to increase they believe is going to target just in taxes. How? Prices increase, business taxes on corporations are irresponsible 1,500 to potentially 5,000 multi-million- accommodates, oh, and just to help options, in my view. aires and corporations, a crackdown on people understand because I listened By extending the 2003 relief through an illegal tax scheme that they think with interest to my friend from North 2005, we can continue to protect our will generate for this Treasury 5 to $10 Dakota say that somehow we are in the middle class families from this tax billion. amen corner, I will tell my colleagues while Congress works on a long-term So do not stand over here and tell us what I do say amen to, Mr. Speaker. I solution of reform. that cracking down on tax cheats is say amen to more quality jobs for I encourage my colleagues to vote no raising taxes. Taxes are what hard Americans, and the Rangel substitute on increasing taxes with this sub- working Americans pay because they will result in lost jobs by imposing a stitute and instead vote in support of owe it. But the tax avoidance and tax permanent tax hike on manufacturers the underlying bill. H.R. 4227 is a rea- cheats that you salute so highly in this and other job creators at a time when sonable short term solution to the debate is something else again. We be- our economy is recovering. growing problem of AMT. lieve we ought to capture that revenue I know, Mr. Speaker, for many, given Mr. NEAL of Massachusetts. Mr. so we do not drive this debt deeper for the political season, any good news is Speaker, I yield myself such time as I our kids. That is what the substitute is bad news for partisan political for- may consume. about. I urge Members’ support. tunes; but the fact is, we have seen an Mr. Speaker, I remind the gentleman Mr. ENGLISH. Mr. Speaker, I yield 4 increase in orders for manufacturing. you cannot fix this on a long-term minutes to the gentleman from Ari- Manufacturing is on the upswing. Now basis without doing something about zona (Mr. HAYWORTH), a member of the that we are seeing real growth, quar- the tax cuts that the gentleman was Committee on Ways and Means (Mr. terly economic growth, now that we heralding a couple of minutes ago. HAYWORTH). are getting there, my friends on the Mr. Speaker, I yield 3 minutes to the Mr. HAYWORTH. Mr. Speaker, I left, who sadly have never met a tax gentleman from North Dakota (Mr. thank my colleague from Pennsylvania hike they did not like, witnessed their POMEROY). for yielding me time. inaction in the wake of the largest in- Mr. POMEROY. Mr. Speaker, here we Mr. Speaker, I rise in opposition to crease in American history a decade are, another week, another tax debate. the Rangel substitute and in support of ago now let us put the kibosh on the Another occasion in the House of Rep- the base legislation that we are dis- recovery. resentatives where the GOP majority cussing here today. I think it is impor- How best to do that? Well, let us cost has offered nothing, nothing sub- tant to have a full perspective of what jobs to the manufacturing sector, let stantive about the looming deficit cri- is being talked about. Part of it, of us demonize anyone who creates jobs, sis that is racking up historic levels of course, is the tenor of the times, where and let us go back to the time-tested debt in this country. we are on the calendar, the fact that bugaboo and shopworn phrase that we I do not suppose it is a mystery they notwithstanding, the first Tuesday fol- are only going to increase taxes on the do not want to talk about it because lowing the first Monday in November rich because the rich are somehow in- when they bring their budget, when- the people of the United States will herently evil. ever they can get it out of conference, make some decisions. Perhaps it is in No, Mr. Speaker, I reject that notion it will include, we are told, an increase order, Mr. Speaker, to remind the Na- wholeheartedly because what we are in the borrowing limit for our country. tion, and certainly my colleagues in talking about is opening doors of op- It will take the borrowing limit to the this Chamber, how we arrived at this portunity through job creation. That is highest levels in the history of the point. why we should reject the Rangel sub- United States. Some are saying it will A decade ago, the largest tax institute, stick with my good friend from take the borrowing limit over $10 tril- crease in American history increased Pennsylvania, and pass, yet again, re- lion. That is $10 trillion of debt to be the alternative minimum tax rate and lief from the alternative minimum tax. incurred under their fiscal plan for this did not adjust the AMT exemption Mr. NEAL of Massachusetts. Mr. Nation. Debt we will leave to our chil- amounts for inflation. As a result, Speaker, I yield 21⁄2 minutes to the gen- dren and debt we can not responsibly more and more middle income families tleman from New York (Mr. BISHOP). pass on. are forced to pay the AMT each year. Mr. BISHOP of New York. Mr. Speak- So as we take a look at something Now with a change in majority status, er, I rise today in support of the Demo- imperative like doing something to re- when I was pleased to come here to the cratic substitute. I join my colleagues spond to the AMT, let us, for goodness Congress and become a part of this main offering this amendment in order to sake, put in place a provision to pay jority, the fact is we have delivered bring relief to so many families, par- for it so we do not even drive this mon- time and again on relief from the alter- ticularly Long Island families who strous debt they have given us even native minimum tax. have been disproportionately hit by the deeper. That is what the substitute is Public Law 107–16, the Economic alternative minimum tax. Our sub- about. Growth and Tax Relief Reconciliation stitute would not only extend the cur- It talks about clamping down on Act of 2001; Public Law 107–47, the Job rent exemption, but it would exempt high-flying tax cheats, some of the Creation and Worker Assistant Act of married couples with incomes under worst avoidance schemes, some of the 2002; PL 108–27, Jobs and Growth Tax $250,000 from this punitive tax. In addi- most shallow, unjustifiable schemes Relief Reconciliation Act of 2003; H.R. tion, and this is very important, we created simply to cheat the Federal 3521, the Tax Relief Extension Act of completely pay for this tax relief to Government by the high flyers that 2003; H.R. 4227, the Middle Class Alter- middle-income families by closing cor- can afford the hundreds of thousands of native Minimum Tax Relief Act of 2004, porate loopholes. dollars of legal and accounting bills to again providing alternative minimum Long Island taxpayers are paying the dream up these schemes. tax relief by extending the relief en- price for this Congress’ abdication of The Republican majority in this de- acted in 2003, adjusting it for inflation duty when it comes to sound tax pol- bate has become ‘‘amen corner’’ for tax through 2005. icy. Our refusal to reform the AMT has cheats in this country. You might Now, my friends on the other side of had the effect of severely curtailing think the next thing we will see from the aisle reminiscent of a country the promised Bush tax cuts from mid- this outfit is a resolution commending song, that is their story and they are dle-income Long Island families. While the Enron executives for their creative sticking to it, perhaps need to be re- the wealthiest families completely ben- financing. minded of this fact. efit from the tax cuts targeted towards The fact is there is a whole lot of tax the upper brackets, middle-income avoidance illegally done in this coun- b 1345 families were hit with the unwelcome try. I am very pleased with the an- Do my colleagues know who really surprise of higher taxes on tax day. nouncement made by IRS Commis- ends up paying corporate taxes? Mr. I have been hearing from constitu- sioner Mark Everson today about an Speaker, the fact is every American ents all across Long Island who feel initiative launched by the IRS that consumer ends up paying corporate double-crossed and double-taxed by

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00032 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.053 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2583 this undue tax burden. In fact, just yes- sufficient opportunity, working, by the Let me say that the gentleman from terday I was speaking with an account- way, with a willing minority to fix the Michigan talked about a tax train ant from my hometown who told me issue, really does not make a great deal wreck. I come from a part of the world that AMT filings for middle-income of sense. This issue is hanging out where we make locomotives, and we Long Islanders had shot through the there. It is waiting for a solution. recognize their dynamics; and let me roof this year, while the wealthiest There ought to be an opportunity in a say that we recognize that the loco- were reaping tremendous tax benefits, bipartisan manner to fix it. motive that was started, that is threat- some in excess of $1 million of tax sav- I have said flatly I am in favor of re- ening, the train wreck was started ings. For example, married couples in pealing the alternative minimum tax. back when the other party controlled my district with two children and an Let us get rid of it. There is a revenue the Chamber and did not deal with an income consisting of $15,000 in wages gap to make up, $600 billion, that has underlying problem by making the were forced to pay the AMT due to to be found somewhere; but when we AMT responsive to increases in the State income taxes and real estate offer the suggestion, it goes nowhere, cost of living. taxes totaling over $21,000. This, in because it does not square, Mr. Speak- We have heard procedural arguments turn, triggered the AMT. er, with the tax cuts that the adminis- from the other side, that the com- More Long Islanders pay the AMT tration has offered and that the committee has not looked closely enough than taxpayers in any other region of pliant Members of the majority have at this issue; and I reject those because the country, and I will do everything in gone along with without ever, ever, the committee clearly has been track- my power to put an end to this unfair ever asking a question. ing this issue from the get-go. treatment. Middle-income Long Island- Forbes magazine has suggested that What we have instead is the core ers bear the brunt of this tax because the tax cuts that the Republican ma- issue, which is the substitute being offered today and which, on the other State and local income taxes, property jority and the administration have of- side, they are proposing to dramati- taxes, and other personal deductions fered only make the alternative min- cally increase the complexity of the are added back in for the purpose of imum tax issue worse for middle-in- Tax Code and also significantly raise calculating the AMT, and anyone who come Americans. We have heard today corporate taxes on a permanent basis lives on Long Island will tell my col- a suggestion that issues of war in the in order to provide temporary tax re- leagues that our property taxes, in par- Middle East and in Afghanistan are ir- relevant to these discussions. How are lief. They congratulate themselves for ticular, are very, very high. The net ef- we going to pay for the troops, 134,000 doing that, but I do not think that fect of this is that we pay inordinately that are in Iraq and 12,000 that are in they are entitled to a new chapter in high property taxes, and then we turn Afghanistan, and support this war ef- ‘‘Profiles in Courage.’’ around and are robbed by the AMT of fort? How are we going to pay for, first, My feeling is that the substitute is our full Federal tax relief. the Defense budget that goes to $421 inherently a bait-and-switch and in- We need a long-term solution for the billion at the conclusion of this ses- creasing taxes at a time when we are AMT and not simply a short-term fix. sion, $41 billion for homeland security? experiencing, we are trying to come The so-called fix under consideration They are off by $140 billion in their pre- out of a slow-down. We are, in a sense, would do nothing, and I repeat nothing, scription drug bill proposal; and the embracing Herbert Hoover economics. for the Long Islanders who found them- answer is, to all of this, tax cuts. I think that the substitute is very ill selves paying the AMT this year. Our Mr. Speaker, we can fix the alter- conceived. It, among other things, im- substitute sends us down the path to- native minimum tax issue in a bipar- poses a burden on the corporate com- wards a long-term solution and makes tisan manner. I am more than happy to munity at a time when we worry about sure that middle-income families are offer my support to try to get that competitiveness; but that burden is far truly relieved from this tax next year. under way. Support the Democratic al- greater than the one simply indicated Under our substitute, two-parent fami- ternative today. It, in the end, is re- by the expected revenue. This is a bur- lies on Long Island making $250,000 or sponsible tax policy, and show those den which will permanently change be- less would be able to rest assured that people at Enron and show those people havior and affect legitimate business they would not be forced to pay the in Bermuda that they ought to pay like transactions. So the rhetoric of the AMT. This is the right kind of relief for the rest of the American people. gentleman from North Dakota that working families. Mr. ENGLISH. Mr. Speaker, I yield this only affects tax cheats is unfortu- In my opinion, we owe it to the myself the balance of my time, and nately not accurate. This is going to be American taxpayers to put our heads first of all, thank the gentleman for his an enormous burden for the corporate together and reconsider the con- contribution and take him up on his sector coming at a most unfortunate sequences of this failed tax policy and offer because we in the Zero AMT Cau- time. reform the AMT so that it no longer cus would like to work for permanent Ultimately, I sense that the reason hurts middle-income families. resolution of this problem. We would why the folks on the other side have Mr. ENGLISH. Mr. Speaker, I reserve like to see a permanent repeal of the not been as aggressive and certainly in the balance of my time. AMT; but unfortunately, in the current many cases not as aggressive as the Mr. NEAL of Massachusetts. Mr. political climate, in the current cli- gentleman from Massachusetts to deal Speaker, might I inquire as to how mate of gridlock and recrimination with this problem is that they want to much time is left. that we have in Washington, nothing spend the money. May I suggest, in the The SPEAKER pro tempore (Mr. more elaborate than the current fix ap- end, we get to the solution on reform- BASS). The gentleman from Massachu- pears to be possible. ing the corporate AMT, not by under- setts (Mr. NEAL) has 11⁄2 minutes re- Let me say there are a couple of cutting the tax bill, not by undercut- maining, and the gentleman from things that I need to correct at the ting the tax program which is revital- Pennsylvania (Mr. ENGLISH) has 41⁄4 outset. izing America’s economy today, but ul- minutes remaining. It was suggested by the gentlewoman timately by controlling our spending. Mr. NEAL of Massachusetts. Is the from Texas that our bill is a tax in- That is how we will in the context of a gentleman prepared to close? crease. It is very hard to understand growing economy get back to a bal- Mr. ENGLISH. Yes. how she would make that point; but to anced budget and I think in the long Mr. NEAL of Massachusetts. Mr. be clear, this provides critical tax re- run also have room to deal with this Speaker, I yield myself the time that is lief for a significant portion of the mid- AMT. left. dle class. Again, I invite our friends on the Mr. Speaker, we have had this debate The gentleman from Long Island in- other side of the aisle to work with us now in this House for a long period of timated that there was nothing in this on this issue. We have an opportunity time. For Members on the majority bill to help these people. Well, as a to do this on a bipartisan basis. This is side to say, well, this was a Democratic practical matter, a place like Long Is- a part of the Tax Code that we agree proposal in 1986 and then to conven- land would be one of the biggest bene- on, but I think the solution starts iently forget or suggest that during ficiaries of the underlying Republican today with a rejection of the ill con- their 10 years that they have not had bill because of the high taxes. ceived substitute that is being offered

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00033 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.055 H05PT1 H2584 CONGRESSIONAL RECORD — HOUSE May 5, 2004 by the other side and passage of the un- Smith (WA) Thompson (CA) Waters reminded that 2 minutes remain in this derlying legislation. Snyder Thompson (MS) Watson vote. Spratt Tierney Watt Mr. Speaker, I yield back the balance Stark Towns Waxman b 1425 of my time. Stenholm Turner (TX) Weiner Strickland Udall (CO) Wexler Mr. TAYLOR of North Carolina, Mr. The SPEAKER pro tempore. All time Stupak Udall (NM) has expired. Woolsey KNOLLENBERG, Mrs. JOHNSON of Tanner Van Hollen Wu Tauscher Vela´ zquez Connecticut, Mrs. MUSGRAVE and Mr. Pursuant to House Resolution 619, Wynn the previous question is ordered on the Taylor (MS) Visclosky FEENEY changed their vote from ‘‘yea’’ to ‘‘nay.’’ bill and on the amendment offered by NAYS—228 Mr. ORTIZ changed his vote from the gentleman from Massachusetts Aderholt Gillmor Osborne (Mr. NEAL). Akin Gingrey Ose ‘‘nay’’ to ‘‘yea.’’ The question is on the amendment in Bachus Goode Otter So the amendment in the nature of a the nature of a substitute offered by Baker Goodlatte Oxley substitute was rejected. Ballenger Goss Paul The result of the vote was announced the gentleman from Massachusetts Barrett (SC) Granger Pearce as above recorded. (Mr. NEAL). Bartlett (MD) Graves Pence Barton (TX) Green (WI) Stated for: The question was taken; and the Peterson (PA) Bass Gutknecht Petri Mr. FILNER. Mr. Speaker, on rollcall No. Speaker pro tempore announced that Beauprez Hall Pickering the noes appeared to have it. Bereuter Harris 143, I was unavoidably detained, and I missed Pitts the vote. Had I been present, I would have Mr. NEAL of Massachusetts. Mr. Biggert Hart Platts Bilirakis Hastings (WA) voted ‘‘yes.’’ Speaker, I object to the vote on the Pombo Bishop (UT) Hayes Porter Ms. SOLIS. Mr. Speaker, during rollcall vote ground that a quorum is not present Blackburn Hayworth Portman Blunt Hefley No. 143 on the Neal Substitute Amendment, I and make the point of order that a Pryce (OH) Boehlert Hensarling Putnam was unavoidably detained. Had I been quorum is not present. Boehner Herger Quinn present, I would have voted ‘‘yes.’’ The SPEAKER pro tempore. Evi- Bonilla Hobson Radanovich Bonner Hoekstra The SPEAKER pro tempore. The dently a quorum is not present. Ramstad Boozman Hostettler question is on the engrossment and The Sergeant at Arms will notify ab- Bradley (NH) Houghton Regula third reading of the bill. sent Members. Brady (TX) Hulshof Rehberg Renzi The bill was ordered to be engrossed The vote was taken by electronic de- Brown (SC) Hunter Brown-Waite, Hyde Reynolds and read a third time, and was read the vice, and there were—yeas 197, nays Ginny Isakson Rogers (AL) third time. 228, not voting 8, as follows: Burgess Issa Rogers (KY) Rogers (MI) The SPEAKER pro tempore. The [Roll No. 143] Burns Istook Burr Jenkins Rohrabacher question is on the passage of the bill. YEAS—197 Burton (IN) Johnson (CT) Ros-Lehtinen The question was taken; and the Royce Abercrombie Evans McCarthy (NY) Buyer Johnson (IL) Speaker pro tempore announced that Ryan (WI) Ackerman Farr McCollum Calvert Johnson, Sam the ayes appeared to have it. Camp Jones (NC) Ryun (KS) Alexander Fattah McDermott Mr. ENGLISH. Mr. Speaker, on that I Allen Ford McGovern Cannon Kanjorski Saxton Andrews Frank (MA) McIntyre Cantor Keller Schrock demand the yeas and nays. Baca Frost McNulty Capito Kelly Sensenbrenner The yeas and nays were ordered. Baird Gephardt Meehan Carson (OK) Kennedy (MN) Sessions The vote was taken by electronic de- Baldwin Gonzalez Meek (FL) Carter King (IA) Shadegg Ballance Gordon Meeks (NY) Castle King (NY) Shaw vice, and there were—yeas 333, nays 89, Becerra Green (TX) Menendez Chabot Kingston Shays not voting 11, as follows: Chocola Kirk Bell Grijalva Michaud Sherwood [Roll No. 144] Berkley Gutierrez Millender- Coble Kline Shimkus Berman Harman McDonald Cole Knollenberg Shuster YEAS—333 Collins Kolbe Berry Hastings (FL) Miller (NC) Simmons Ackerman Burton (IN) Doolittle Cox LaHood Bishop (GA) Hill Miller, George Simpson Aderholt Buyer Dreier Crane Latham Bishop (NY) Hinchey Moore Smith (MI) Akin Calvert Duncan Crenshaw LaTourette Blumenauer Hinojosa Moran (VA) Smith (NJ) Alexander Camp Dunn Cubin Leach Boswell Hoeffel Nadler Smith (TX) Allen Cannon Edwards Culberson Lewis (CA) Boucher Holden Napolitano Souder Baca Cantor Ehlers Cunningham Lewis (KY) Brady (PA) Holt Neal (MA) Stearns Bachus Capito Emerson Davis, Jo Ann Linder Brown (OH) Honda Oberstar Sullivan Baker Cardin Engel Davis, Tom LoBiondo Brown, Corrine Hooley (OR) Obey Sweeney Baldwin Cardoza English Deal (GA) Lucas (OK) Capps Hoyer Olver Tancredo Ballance Carson (OK) Eshoo DeLay Manzullo Capuano Inslee Ortiz Taylor (NC) Ballenger Carter Etheridge Diaz-Balart, L. Matheson Cardin Israel Owens Terry Barrett (SC) Castle Evans Diaz-Balart, M. McCotter Cardoza Jackson (IL) Pallone Thomas Bartlett (MD) Chabot Everett Doolittle McCrery Carson (IN) Jackson-Lee Pascrell Barton (TX) Chandler Farr Dreier McHugh Thornberry Case (TX) Pastor Bass Chocola Feeney Duncan McInnis Tiahrt Chandler Jefferson Payne Beauprez Clay Ferguson Dunn McKeon Tiberi Clay John Pelosi Bell Coble Flake Ehlers Mica Toomey Clyburn Johnson, E. B. Peterson (MN) Bereuter Cole Foley Emerson Miller (FL) Turner (OH) Conyers Jones (OH) Pomeroy Berkley Collins Forbes English Miller (MI) Upton Cooper Kaptur Price (NC) Biggert Costello Ford Everett Miller, Gary Vitter Costello Kennedy (RI) Rahall Bilirakis Cox Fossella Feeney Mollohan Walden (OR) Cramer Kildee Rangel Bishop (GA) Cramer Franks (AZ) Ferguson Moran (KS) Walsh Crowley Kilpatrick Reyes Bishop (NY) Crane Frelinghuysen Flake Murphy Wamp Cummings Kind Rodriguez Bishop (UT) Crenshaw Frost Foley Murtha Weldon (FL) Davis (AL) Kleczka Ross Blackburn Crowley Gallegly Forbes Musgrave Weldon (PA) Davis (CA) Kucinich Rothman Blunt Cubin Garrett (NJ) Fossella Myrick Weller Davis (FL) Lampson Roybal-Allard Boehlert Culberson Gephardt Franks (AZ) Nethercutt Whitfield Davis (IL) Langevin Ruppersberger Boehner Cunningham Gerlach Frelinghuysen Neugebauer Wicker Davis (TN) Lantos Rush Bonilla Davis (AL) Gibbons Gallegly Ney Wilson (NM) DeFazio Larsen (WA) Ryan (OH) Bonner Davis (CA) Gilchrest Garrett (NJ) Northup Wilson (SC) DeGette Larson (CT) Sabo Boozman Davis (TN) Gillmor Gerlach Norwood Wolf Delahunt Lee Sa´ nchez, Linda Boswell Davis, Jo Ann Gingrey Gibbons Nunes Young (AK) DeLauro Levin T. Boucher Davis, Tom Gonzalez Gilchrest Nussle Young (FL) Deutsch Lewis (GA) Sanchez, Loretta Bradley (NH) Deal (GA) Goode Dicks Lipinski Sanders NOT VOTING—8 Brady (TX) DeFazio Goodlatte Dingell Lofgren Sandlin Brown (OH) DeGette Gordon Doggett Lowey Schakowsky Bono Filner Solis Brown (SC) Delahunt Goss Dooley (CA) Lucas (KY) Schiff Boyd Greenwood Tauzin Brown, Corrine DeLay Granger Doyle Lynch Scott (GA) DeMint Matsui Brown-Waite, Deutsch Graves Edwards Majette Scott (VA) Ginny Diaz-Balart, L. Green (WI) Emanuel Maloney Serrano ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Burgess Diaz-Balart, M. Gutknecht Engel Markey Sherman Burns Doggett Hall Eshoo Marshall Skelton The SPEAKER pro tempore (Mr. Burr Dooley (CA) Harman Etheridge McCarthy (MO) Slaughter BASS) (during the vote). Members are

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00034 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.056 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2585 Harris McCarthy (NY) Ros-Lehtinen Visclosky Watt Wexler Senate on the provisions contained in sec- Hart McCotter Ross Watson Waxman Woolsey tion 408 of the Senate concurrent resolution Hastings (WA) McCrery Royce NOT VOTING—11 (relating to the pay-as-you-go point of order Hayes McHugh Ruppersberger regarding all legislation increasing the def- Hayworth McInnis Ryan (OH) Bono Greenwood Tauzin icit as a result of direct spending increases Hefley McIntyre Ryan (WI) Boyd Honda Waters and tax cuts). Hensarling McKeon Ryun (KS) Cummings Jackson-Lee Herger Meehan Sanchez, Loretta DeMint (TX) The SPEAKER pro tempore. Pursu- Hinojosa Meek (FL) Sanders Filner Solis ant to the rule, the gentleman from Hobson Meeks (NY) Sandlin Kansas (Mr. MOORE) and the gentleman Hoeffel Mica Saxton ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Hoekstra Michaud Schiff The SPEAKER pro tempore (Mr. from Pennsylvania (Mr. TOOMEY) each Holden Millender- Schrock BASS) (during the vote). Members are will control 30 minutes. Hooley (OR) McDonald Scott (GA) The Chair recognizes the gentleman Hostettler Miller (FL) advised there are 2 minutes remaining Sensenbrenner from Kansas (Mr. MOORE). Houghton Miller (MI) in this vote. Sessions Mr. MOORE. Mr. Speaker, I yield my- Hulshof Miller (NC) Shadegg Hunter Miller, Gary Shaw b 1442 self such time as I may consume. Hyde Miller, George Shays Mr. GEORGE MILLER of California Mr. Speaker, we have in this country Isakson Moore Sherwood a $7.1 trillion national debt. We have a Israel Moran (KS) Shimkus changed his vote from ‘‘nay’’ to ‘‘yea.’’ Issa Moran (VA) So the bill was passed. projected deficit by the Office of Man- Shuster agement and Budget for this year alone Istook Murphy Simmons The result of the vote was announced Jefferson Musgrave of $521 billion. The interest on our na- Simpson as above recorded. Jenkins Myrick Skelton tional debt, $7.1 trillion, is almost $1 John Nadler A motion to reconsider was laid on Slaughter billion a day. We are in a hole, Mr. Johnson (CT) Nethercutt Smith (MI) the table. Johnson (IL) Neugebauer Smith (NJ) Speaker, and we are digging the hole Johnson, E. B. Ney Stated for: Smith (TX) deeper and deeper by our lack of fiscal Johnson, Sam Northup Snyder Mr. FILNER. Mr. Speaker, on rollcall No. Jones (NC) Norwood responsibility. Souder 144, I was unavoidably detained, and I missed Jones (OH) Nunes American families live by three sim- Stearns Kaptur Nussle the vote. Had I been present, I would have ple rules: Number one, do not spend Strickland Keller Osborne voted ‘‘yea.’’ Stupak more money than they make; number Kelly Ose Sullivan Mr. HONDA. Mr. Speaker, on rollcall No. Kennedy (MN) Otter two, pay off their debts; and, number Sweeney 144, had I been present, I would have voted Kennedy (RI) Owens three, invest in basics in the future. Tancredo Kildee Oxley ‘‘yea.’’ The basics for an American family are Kind Pascrell Tanner Ms. SOLIS. Mr. Speaker, during rollcall vote Tauscher food, shelter, transportation, health King (IA) Paul No. 144 on final passage on H.R. 4227, I was King (NY) Pearce Taylor (NC) care, education, things that we write Kingston Pence Terry unavoidably detained. Had I been present, I checks for, bills that we write checks Kirk Peterson (MN) Thomas would have voted ‘‘No.’’ Thompson (MS) for, every month. And the same basics Kleczka Peterson (PA) f for our country, our national defense, Kline Petri Thornberry Tiahrt some sort of Social Security system, Knollenberg Pickering PERSONAL EXPLANATION Kolbe Pitts Tiberi some sort of national highway system LaHood Platts Toomey Ms. JACKSON-LEE of Texas. Mr. Speaker, Turner (OH) to transport goods around this country Lampson Pombo on rollcall vote No. 144, I was unavoidably de- Langevin Pomeroy Udall (CO) and keep our economy going. And yet Lantos Porter Upton tained in a meeting with the Secretary of the government, our government and Latham Portman Van Hollen State. If I had been present, I would have our Congress, has not lived by these LaTourette Price (NC) Vitter voted ‘‘no.’’ rules that American families lived by Leach Pryce (OH) Walden (OR) Lewis (CA) Putnam Walsh f for many years, and to show for that Lewis (KY) Quinn Wamp we have a $7.1 trillion debt. Linder Radanovich Weiner GENERAL LEAVE We need to get back to fiscal respon- Lipinski Rahall Weldon (FL) Mr. ENGLISH. Mr. Speaker, I ask sibility. We have an opportunity to do LoBiondo Ramstad Weldon (PA) Lofgren Regula Weller unanimous consent that all Members that. We have done it before and we Lowey Rehberg Whitfield may have 5 legislative days within should do it again. I am not playing Lucas (KY) Renzi Wicker which to revise and extend their re- partisan politics here. I do not blame Lucas (OK) Reyes Wilson (NM) President Bush for a slowdown and the Lynch Reynolds Wilson (SC) marks and to include extraneous mate- Majette Rodriguez Wolf rial on the subject of the bill, H.R. 4227, recession that happened. I do not Maloney Rogers (AL) Wu just passed. blame President Bush certainly for Manzullo Rogers (KY) Wynn The SPEAKER pro tempore. Is there September 11. That was only the mani- Marshall Rogers (MI) Young (AK) acs that created that horrible problem Matheson Rohrabacher Young (FL) objection to the request of the gentleman from Pennsylvania? and killed 3,000 Americans. But we NAYS—89 There was no objection. have got to get back to fiscal responsibilities here, and we are not doing it Abercrombie Hill Olver f Andrews Hinchey Ortiz right now. In fact, the Committee on Baird Holt Pallone MOTION TO INSTRUCT CONFEREES the Budget, and I see the chairman Becerra Hoyer Pastor ON S. CON. RES. 95, CONCURRENT over here, passed a PAYGO rule requir- Berman Inslee Payne Berry Jackson (IL) Pelosi RESOLUTION ON THE BUDGET ing only that if we are going to have a Blumenauer Kanjorski Rangel FOR FISCAL YEAR 2005 new spending proposal, we have to Brady (PA) Kilpatrick Rothman abide by the rule that says it has got to Capps Kucinich Roybal-Allard Mr. MOORE. Mr. Speaker, I offer a Capuano Larsen (WA) Rush motion to instruct. be offset or paid for. Carson (IN) Larson (CT) Sabo The SPEAKER pro tempore (Mr. They did not apply the same rule, Case Lee Sa´ nchez, Linda though, to tax cuts. The Senate, on a Clyburn Levin T. LAHOOD). The Clerk will report the motion. bipartisan basis, did apply the rule to Conyers Lewis (GA) Schakowsky tax cuts and to spending proposals, and Cooper Markey Scott (VA) The Clerk read as follows: Davis (FL) Matsui Serrano I think we need to look at doing the Mr. MOORE of Kansas moves that the man- Davis (IL) McCarthy (MO) Sherman same thing here. And this is a motion agers on the part of the House at the con- DeLauro McCollum Smith (WA) to instruct conferees to institute that Dicks McDermott Spratt ference on the disagreeing votes of the two Dingell McGovern Stark Houses on the House amendment to the con- kind of PAYGO procedure here. Doyle McNulty Stenholm current resolution S. Con. Res. 95 be in- b 1445 Emanuel Menendez Taylor (MS) structed to agree to the pay-as-you-go en- Fattah Mollohan Thompson (CA) forcement provisions within the scope of the If we do that, Mr. Speaker, we have Frank (MA) Murtha Tierney an opportunity as a Nation to return to Green (TX) Napolitano Towns conference regarding direct spending in- Grijalva Neal (MA) Turner (TX) creases and tax cuts in the House and Sen- fiscal responsibility. Gutierrez Oberstar Udall (NM) ate. In complying with this instruction, such Mr. Speaker, I reserve the balance of Hastings (FL) Obey Vela´ zquez managers shall be instructed to recede to the my time.

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00035 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.013 H05PT1 H2586 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Mr. TOOMEY. Mr. Speaker, I yield without paying for it and now rushes to ica. One of the first principles they myself such time as I may consume. the floor with a rule that says but from promised to instill in this Congress was Mr. Speaker, I look forward to this now on and for everybody else, it is fair a requirement that all laws that apply discussion and disputing the central to, quote-unquote, pay for tax cuts. to the rest of the country would also premise, I think, of the motion offered I think we should be consistent; and apply equally to the Congress. by the gentleman from Kansas, which just like in the past, we should consist- Well, the truth is, American families seems to be that new spending is some- ently say that in this instance we are required by law to pay their bills; how equivalent to the American people should not tie our hands when it comes yet in Congress we do not require the with lowering the tax burden. I want to to creating jobs, when it comes to same thing of our own institution, and get into that in a little bit because making sure that married people are that is wrong. these two ideas are not equivalent. not penalized, when it comes to not One of the previous speakers said They are certainly not equivalent in raising taxes on families with children, that we are trying to tie the hands of terms of their impact on the economy. when it comes to AMT relief that peo- Congress so we can automatically New spending is contrary to maxi- ple are being hit with now, this alter- bring about tax increases. That is abso- mizing economic growth, while tax native minimum tax, that we should lutely not true. All this measure says cuts reduce it. provide that kind of relief, and we is, if we pass a bill, we should pay for Mr. Speaker, before I do that, I yield should do it in a way that does the job that bill. such time as he may consume to the now and gets the economy going, as op- The House budget resolution for 2005 gentleman from Iowa (Mr. NUSSLE), the posed to putting some arbitrary rule was passed on a straight party line distinguished chairman of the Com- on, which I would argue if you vote 5 vote; but it was the alternative, with mittee on the Budget, for his thoughts minutes ago one way, and then come the strongest budget enforcement pro- on this. back here and say, well, really I did not visions, the Blue Dog budget, that got Mr. NUSSLE. Mr. Speaker, I am per- mean that, which vote do you not the bipartisan support. plexed. The gentleman who offers the mean? Is it the vote for tax relief, or is Budget enforcement received bipar- motion to instruct conferees says, gee, it the vote for the rule? tisan support not only in the House, it would be nice if we had a rule that So I would hope that people do not but in the Senate also. They passed an tax cuts had to be paid for. Well, that tie our hands when it comes to this, amendment extending pay-as-you-go is not what the instruction says. The what is called pay-as-you-go. When it rules to both revenue and spending instruction says they should. It is not comes to taxes, I have said it before measures with the support of a bipar- a, gee, it would be nice. The gentleman and I will say it again, you may think tisan majority. Common ground, bipar- just voted for a tax cut that was not the government pays for taxes. The tisan ground can be found on the issue offset, was not paid for. In fact, he only people in America who pay for of budget enforcement. If we are really going to reduce the joined 109 Democratic colleagues who taxes are taxpayers, and they are the deficit, bipartisanship is a must. It voted not to pay for tax cuts. people who deserve the relief, and what does not matter if it is an increase in In fact, what is even more interesting you are trying to do is cause automatic spending or a reduction in revenue. If is that the same gentleman, and I re- tax increases for this country by tying it is important enough for this House spect his position, because it is how I hands and by putting arbitrary rules to pass it as law, by golly, we should voted, so it is hard to complain when in, and I do not believe that is the pay for it. That is what this motion to somebody joins you on a vote, I do not right thing to do for this economy. It is instruct says. The motion is to in- mean it that way, voted just last week finally back on its feet, it is finally creating jobs, and we need to make struct the conferees to agree to the with 101 other colleagues for the mar- Senate pay-as-you-go provision, which riage penalty relief, without offsetting sure that continues. Mr. MOORE. Mr. Speaker, I yield my- requires the Congress to find a way to pay-as-you-go requirements. pay for new spending or new tax cuts. So on the one hand, the gentleman is self such time as I may consume. Mr. Speaker, to respond to the chair- Members of the Blue Dog Coalition saying we ought to have a rule, we man, the gentleman talks fiscal re- have been calling for the reinstatement ought to have a rule around here that sponsibility, but does not vote it. I am of pay-as-you-go on both revenue and you pay for things. It is important to following the rules that are in place spending since the Budget Enforcement do that, because we are in a hole and right now, and I am proposing that this Act expired in 2002. And it is not a par- you ought to stop digging. body change the rules and practice fis- tisan concept. From the original pay- I understand. We have heard that cal responsibility and not just talk as-you-go provision, it was brought rhetoric a lot. Except, he says, do not about it. We have got to get back to about by bipartisanship. It was an apply it to me, is what the gentleman that. agreement between the first President is saying. Instruct everybody else for What the gentleman neglected to Bush and a Democratic Congress. A other tax bills, but not the one I just mention is we have the highest na- Democratic President and Congress ex- voted for this week, or not the one I tional debt in our Nation’s history. tended pay-as-you-go in 1993, and a voted for last week. Let us have a pay- What the gentleman neglected to men- Democratic President and a Republican as-you-go rule, but let us not apply it tion is we have the highest deficit in Congress extended it again in 1997, to us right now because it is kind of po- any one year in our Nation’s history. along with $100 billion worth of tax litically popular to vote for this. We are mortgaging the future of our cuts. The difference is that on our side of children and grandchildren, and it has Today we can send a clear message the aisle we know and we agree with got to stop. from the Congress that we will hold the gentleman that tax cuts often pay Mr. Speaker, I yield 3 minutes to the ourselves to the same standards as we for themselves in a way that stimu- gentleman from California (Mr. THOMP- hold American families. Vote ‘‘yes’’ on lates the economy, stimulates growth, SON). this motion to instruct and reintroduce puts people back to work, generates Mr. THOMPSON of California. Mr. fiscal responsibility to this House and economic growth and development, and Speaker, I thank the gentleman for to the American taxpayers. drives revenues into the Treasury to yielding me time and for his bringing Mr. TOOMEY. Mr. Speaker, I yield the tune of, this year, what we know this measure before this House for a myself such time as I may consume. already from what CBO says, is about vote. Mr. Speaker, I want to respond to $200 billion more revenue. Even with Mr. Speaker, I rise today in support one of the points just made by the gen- tax reduction, even with those tax of the motion offered by the gentleman tleman from California. This is pretty cuts, $200 billion is what CBO estimates from Kansas (Mr. MOORE) which would close to being a direct quote as I heard now. Just yesterday, in The Wash- require the budget conferees to include him say it, and it was pertaining to ington Post, it was revealed that that the pay-as-you-go provisions, budgets this deficit. I think what the gen- number is only going up, is what we enforcement provisions, in the final tleman said was it does not matter if it are hearing. budget bill. is a decrease in revenue, which is to So on the one hand, just 5 minutes Ten years ago, our colleagues across say a tax cut, or an increase in spend- ago the gentleman voted for tax relief the aisle made a contract with Amer- ing; either way, we have to offset it.

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00036 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.068 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2587 I am here to say that that is just not The point I am trying to make here bill, the economy went up and deficits right. It does matter. It makes a dif- is that new spending and lowering the went down. However, for the 12 years of ference. It makes a big difference. I am tax burden, and in fact maintaining ex- Reagan and Bush, deficits went up, and going to finish my point, because I isting tax law, because that is what we under this administration, deficits think it makes a big difference in are talking about now, these are not have soared. And I would say to the terms of the economic growth of our equivalent. gentleman from Pennsylvania (Mr. economy, and that means the oppor- Mr. THOMPSON of California. Mr. TOOMEY), check out page 22. Receipts tunity for Americans, and that means Speaker, will the gentleman yield? have gone down, my friend. Down. prosperity and ultimately the quality Mr. TOOMEY. I yield to the gen- b 1500 of life of the working people. tleman from California. Look at the data that we have. After Mr. THOMPSON of California. Mr. Starting with 2000, $2.25 trillion; 2001, we passed a tax cut package, look at Speaker, I thank the gentleman for $1.9 trillion. Mr. Speaker, I would say what has happened. We have had a 2- yielding. to the gentleman from Pennsylvania decade high point in terms of GDP The point is if it is important enough (Mr. TOOMEY), he is not listening to growth. The economy grew at 6 percent to pass, it is important enough to pay these figures. I know he wants to know in the second half of last year; it is for. The record deficit and the record the truth. I know he wants to know the growing very strongly this year. This debt, $7 trillion worth of debt, on mark facts. I am trying to give them to him is the best economic growth numbers to go up to $10.4 trillion in the next 5 so he will not misstate again. I want we have had in 20 years. Housing starts years, that is the difference between him to hear these facts, and then he are at a record high. Homeownership, a revenue and spending. It is not the dif- can respond. This is the administra- record high number of Americans own ference between spending. If we believe tion’s book, not mine. their own home today. this is important enough to tax, we I will give them to the gentleman We have financial markets that have should pay for whatever it is we pass. again. In 2000, $2.25 trillion; 2001 $1.9 made huge gains, which generally have Mr. TOOMEY. Mr. Speaker, reclaim- trillion; 2002, 1.8 trillion; 2003, 1.7 tril- been a good predictor of economic ing my time, the gentleman is not rec- lion. growth. The manufacturing sector, ognizing we have had a growth in rev- So to not tell us and the American which has undergone a very difficult enue, despite lower tax rates. This is public that resources are going up, time, has, by all accounts and all ob- what happens when the economy grows they are not. This graph reflects what jective data, turned around, is showing strongly. And the most important the Republican budget book says. growth, is actually hiring. thing here, it is very important that Now, with respect to spending, I say Speaking of hiring, we have strong we get the deficit under control and re- to my friend, we are spending less on new job growth now. We waited a long duce the debt, but the most important discretionary spending than we spent time, because we know that job growth thing is we have a strong economy, and in 1962 of GDP. But you all talk about is always the last part to come in dur- everybody who wants a job is able to that. Why? Because it is easy to talk ing an economic recovery. But it really get a job and that wages are rising and about that. It is 17 percent of the budg- looks like the job growth is happening people are having more and more op- et; you do not talk about the other 83 now. Whether you are looking at the portunities. percent. household survey or whether you are If we do that, and control spending, What the gentleman from Kansas is looking at the payroll survey, the job which we are trying to do which this saying, I say to my colleagues, is do growth is strong. In March, we had budget, which, again, my colleagues on not pass these tax cuts for which there 308,000 new jobs, and on Friday we are the other side of the aisle did not agree is no money to give anybody. You are going to get a number for April; and it with, but it is a budget which for the taking it from Social Security. You are looks like we are going to have another first time I am aware of in a very long taking it from Medicare. And, more strong month for job growth. importantly, I will tell my colleagues What this means is we are approach- time, we took the nonsecurity parts of who is going to pay for these tax cuts: ing a period now of sustainable eco- discretionary spending and decided to my children, my grandchildren, and nomic recovery. When new people are freeze it. the generations yet to come. That is getting to work and being able to gen- We said we are going to freeze this, not only intellectually wrong, it is an erate their own incomes, now the econ- because I think that is what you need immoral fiscal policy. omy starts to be able to grow of its to do to get this spending under con- own. This has happened because we trol so we can get this deficit under Mr. Speaker, if the vote on this motion to in- lowered the tax burden. control. I think we are heading in the struct budget conferees is anything like the If we go and pass this provision that right direction if we can have the dis- first one on March 30, then someone should you guys are advocating, it almost cer- cipline on the spending side. summon the house physician because there tainly means a big tax increase, and I We should not be advocating a provi- may be some very sore arms on the Repub- am very concerned that this would cut sion, which the gentleman from Kansas lican side of the aisle. off this economic recovery we have is introducing, which almost guaran- Certainly, we remember that five-minute under way, and that is the last thing tees a big tax increase right at the vote? The Republican leadership held it open we should be doing. time when our economy seems to be re- for 28 minutes so that it could (quote/unquote) The problem that we have, we have covering strongly. persuade eight Republicans to change their got a problem here, no question about Mr. Speaker, I reserve the balance of votes from yes to no, and defeat the motion it. We have a deficit that is too big, my time. on a tie vote. there is no question about it. But the Mr. MOORE. Mr. Speaker, I yield 3 As David Broder, the syndicated columnist, problem has come from years of exces- minutes to the gentleman from Mary- pointed out (and I quote): sive spending. It is not that we do not land (Mr. HOYER). Clearly, on a free vote of conscience, nar- bring in enough revenue. In fact, as we Mr. HOYER. Mr. Speaker, I thank row majorities in both the House and Senate all probably know, recent numbers sug- the gentleman for yielding me time. I would be prepared to impose this degree of gest that revenue growth is growing have a prepared statement. I am not self-discipline [meaning pay-as-you-go budg- and it is accelerating, which is not sur- going to give it. et rules]. prising, given the strong economy we Perhaps the gentleman from Penn- The simple fact is, Mr. Speaker, the Office have today, the strength that is devel- sylvania (Mr. TOOMEY) and perhaps the of Management and Budget projects that our oping; but it is spending that has been gentleman from Iowa (Mr. NUSSLE) be- Nation will run a record budget deficit of $521 the problem. lieve if you say something enough, billion this year. That figure does not include Now when we offered a PAYGO provi- somebody will believe it. the costs of fighting wars in Iraq and Afghani- sion that would require that we offset I refer the gentleman from Pennsyl- stan, an estimated $50 billion to $75 billion. any new spending proposals, you guys vania (Mr. TOOMEY) to page 22 of the The 10-year budget surplus of $5.6 trillion all voted against it. You guys said no, administration’s budget document on that George W. Bush inherited when he took no, we do not want to just offset spend- receipts. For 8 years under Clinton, re- office has been turned into a projected deficit ing. ceipts went up. After we passed the 1993 of more than $4 trillion in just 3 short years.

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00037 Fmt 4634 Sfmt 9920 E:\CR\FM\K05MY7.069 H05PT1 H2588 CONGRESSIONAL RECORD — HOUSE May 5, 2004 And now, our Republican friends want to that had lower spending and lower defi- was that expenditures tripled, and this drive us even deeper into debt with tax cuts cits even than the one that we passed, reinforces my point that the problem that are not paid for. the Republican one. I do not know of here is spending. The problem is not Perhaps Mr. NUSSLE, the chairman of the any Democrat that voted for my alter- that we are undertaxed. Budget Committee, summed up the Repub- native budget. The second point that I want to lican philosophy best. In March, he said (and Mr. STENHOLM. Mr. Speaker, re- make, the gentleman from Maryland I quote): claiming my time, that is great rhet- was referring to declining revenues in We don’t believe that you should have to oric, and I will yield again, but I want the height of the economic slowdown. I pay for tax cuts. to respond to that. The gentleman do not think anybody disputes that if Well, my Republican friends, you don’t. But from Pennsylvania put a budget out. the economy is in a recession, when the our children and grandchildren surely will. How many votes did the gentleman get economy is contracting, revenue de- That’s why the list of those supporting pay- for his budget? creases. That is true. That is what hap- as-you-go rules includes, among others, Mr. TOOMEY. Mr. Speaker, we got pens when you have, especially a com- House Democrats, a bipartisan majority of the just under half the Republican caucus bination of a contracting economy, and Senate, Federal Reserve Chairman Green- on it, about 100, maybe 110. then you have the cost of a war, it is span, the Concord Coalition, the Committee Mr. STENHOLM. Mr. Speaker, that not surprising that you have a deficit for Economic Development, and the Com- is the problem. I can put a budget out under those circumstances. mittee For a Responsible Federal Budget. too. The final point I want to make, to Republicans have not always believed that Mr. TOOMEY. Mr. Speaker, if the suggest that this provision does not tax cuts are sacrosanct. gentleman will yield, how did the gen- amount to the equivalent of a tax in- In fact, the majority leader himself even said tleman from Texas (Mr. STENHOLM) crease I think is just factually wrong. in 1997 of Jack Kemp, a former member of vote on it? We all know that we have provisions in this body (and I quote): Mr. STENHOLM. On your budget, I the current tax law that are expiring very soon; and if we do not allow those Jack Kemp worships at the altar of tax opposed it, because it increased the cuts. Jack has always said that deficits don’t deficit. to become permanent, then we have a matter. We think that deficits do matter. Mr. TOOMEY. It increased it much big tax increase coming. And if this provision were to be adopted and be- Mr. Speaker, PAYGO rules will not preclude less than your budget did. It got us come binding on Congress, then it is al- tax cuts. back to a balance much sooner than most assured that we are going to have They simply recognize that, with a fiscal cri- your budget or any other budget, and a significant tax increase. sis looming, it is irresponsible—indeed im- you voted ‘‘no.’’ You voted ‘‘no.’’ Mr. STENHOLM. You could not pass Mr. Speaker, I reserve the balance of moral—to force the next generation to pay our my time. bills. it. I take back my time. I take back my Mr. MOORE. Mr. Speaker, I yield I urge my colleagues to support this motion. such time as he may consume to the Mr. TOOMEY. Mr. Speaker, I reserve time. Yes, it is great. You can come gentleman from Maryland (Mr. HOYER). the balance of my time. out, but the problem that comes out today is we have to live under the rules Mr. HOYER. Mr. Speaker, I got up to Mr. MOORE. Mr. Speaker, I yield 3 my office, and I heard the comments of of the majority party. And for years I minutes to the gentleman from Texas the gentleman from Pennsylvania. The was criticized by the gentleman’s side (Mr. STENHOLM). gentleman from Pennsylvania (Mr. Mr. STENHOLM. Mr. Speaker, it is because it was my party that was doing TOOMEY) and the gentleman from Iowa truly amazing when we come to the to the economy what you said we were (Mr. NUSSLE) both said not the perspec- doing. Today, you are in charge; and no floor and have this debate over and tive you thought revenues were going matter how many times you say it, you over and over again. We are fighting a to increase, but that they had in- cannot overcome the facts. Repub- war today, and I believe I would be fac- creased. That was not accurate. That licans have spent more in the Reagan- tually correct to say this is the first was my point, and I think your review Bush years, in the Bush years than we war we have fought by reducing the of the book indicates that I was accu- did in the Clinton years. You have amount of revenue. rate. I suggest our troops are paying dear- spent more, period, and that record Mr. TOOMEY. Mr. Speaker, if I could ly for that, because as we all know, stands up. just respond to that. they have not received that which they All we are talking about today is a The SPEAKER pro tempore (Mr. simple resolution saying, let us put us need in order to protect themselves LAHOOD). The gentleman from Kansas while they are doing for us what we are all under the gun. If you put your budg- has the time. unwilling to do for them. et on the floor under pay-as-you-go, I Mr. MOORE. Mr. Speaker, I yield 2 This is a pretty straightforward will have to vote for it, if it is under minutes to the gentleman from Illinois amendment; and despite the gentleman pay-as-you-go, because I am sincerely (Mr. EMANUEL). from Pennsylvania (Mr. TOOMEY), de- for it. I did not vote for the last tax cut Mr. EMANUEL. Mr. Speaker, I would spite the gentleman from Iowa (Chair- because it is with borrowed money on like to thank my colleague, the gen- man NUSSLE) and all of his rhetoric, my children and grandchildren. I did tleman from Kansas (Mr. MOORE), for nobody is talking about raising taxes. not vote for last week’s tax cut because yielding me this time. That is just rhetoric that will be used it is with borrowed money; and I will What we have here is what never has in campaign slogans. not vote for the additional tax cuts been tried in history. We are waging All we are saying is, if we are going with borrowed money on my children three wars with three tax cuts that to cut taxes and reduce the amount of and grandchildren’s money. But your have resulted in $500 billion of annual revenue to pay for the war, we have to rhetoric and mine should match. Where deficits and a $3 trillion increase in the provide either cuts in spending, which is the mismatch? debt. we do, in spite of the fact, all of what Mr. TOOMEY. Mr. Speaker, I yield What has passed here in the year you talk about never happens because myself such time as I may consume. 2001, 2002 and 2003 are record tax cuts spending has gone up, up, and up since A couple of points I would like to for the special interests that have pro- Republicans took over this House, and make. One, to follow up on some com- duced record deficits and record na- how you can stand on the floor and ments made by the gentleman from tional debt. There is an economic pro- keep lecturing Democrats on spending, Maryland, first of all, history has prov- gram here that basically we followed in you have no conscience. en time and time again when we have the 1990s. Mr. TOOMEY. Mr. Speaker, will the cut taxes, we have ended up with in- In 1993 we cut taxes and reduced the gentleman yield? creasing revenue. The gentleman from deficit. In 1997 we cut taxes for middle- Mr. STENHOLM. I would be happy to Maryland cited the Reagan administra- class families and balanced the budget yield to the gentleman from Pennsyl- tion. The fact is, within a decade of the while investing in children’s health vania. big Reagan tax cuts, revenue collected care, the environment, and also in job Mr. TOOMEY. First of all, Mr. by the Federal Government, tax rev- training and education, higher edu- Speaker, I have introduced a budget enue had about doubled. The problem cation access. We threw that book out

VerDate May 04 2004 02:44 May 06, 2004 Jkt 029060 PO 00000 Frm 00038 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.024 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2589 that led to record job growth of 22 mil- because where we grew 23 million new Alan Greenspan was at the meeting. I lion jobs, a decrease in poverty, an ex- jobs, we have still lost jobs. The gen- asked him, Mr. Chairman, do you be- pansion of the middle class, incomes tleman pointed out we raised 300,000 lieve that PAYGO rules ought to apply going up for all people. And now what jobs. As he knows, 100,000 of those were to tax cuts as well as spending? And his we have is record deficits and record returning workers from the strikes answer in his prolonged way that he debt, all because we followed an eco- around the country. answers was an unequivocal yes. There nomic strategy that threw out the But the point I would make is that in needs to be discipline in the Congress book of putting our fiscal house in 1993 when we adopted the Clinton eco- of the United States. PAYGO rules order, investing in the priorities of tax nomic program, Mr. Armey and the have worked in the past, they will cuts for middle-class families, and in- gentleman from Texas (Mr. DELAY), I work in the future, and it is the fis- vesting in the areas of education and cannot say the gentleman from Iowa cally responsible thing to do. health care. (Mr. NUSSLE), but Mr. Kasich was then One last thing that I would just like What do we have to show for it? We the chairman of the Committee on the to remind my colleagues of on this side have $500 billion in annual deficit. We Budget, they said that program was of the aisle. A quote from the majority have a record deficit while the econ- going to destroy America’s economy, leader on the Republican side, Dick omy is growing. You all have said if we would lose jobs, have high deficits Armey: ‘‘I am sitting here, and I am the economy grows, the deficit will dis- and high unemployment and high in- upset about the deficit. I am upset appear. Well, the economy is growing terest rates. In fact, exactly the oppo- about spending. There is no way I can and we have record deficits. Why? Be- site happened, and we had the best pin this on the Democrats. Republicans cause your economic strategy lacks economy we have had in the history of own the town now.’’ Wise words, in- any logic to it. And that is you cannot the country. deed. follow and have three tax cuts and Mr. TOOMEY. Mr. Speaker, reclaim- Mr. TOOMEY. Mr. Speaker, I reserve three wars at the same time and get ing my time, what happened was that the balance of my time. any other result than the one we are immediately after that tax increase in Mr. MOORE. Mr. Speaker, I yield 30 getting today. And to repeat the same 1993, economic growth was quite slow seconds to the gentleman from Mary- mistake and expect a different result is for some period of time; and then it ac- land (Mr. HOYER). a sign of somebody who is not facing celerated, despite the tax increases. Mr. HOYER. Mr. Speaker, I thank reality. But my point is, and I do not think the gentleman for yielding me this Today, what we need to do and what the gentleman is disputing me now, time. It is a shame we cannot have a this proposal does is it begins to get us that over the last 6 months we have longer, more substantive debate on on a road of putting our fiscal house had a revenue growth compared to the this. The gentleman from Iowa (Mr. back in order and setting the priorities same 6-month period a year before, and NUSSLE) got up and criticized the gen- straight that if we want to invest in all evidence and all trends suggest that tleman from Kansas (Mr. MOORE) for education, if we want to finance wars this is going to continue. And what I his inconsistency. He is for middle- overseas, if we want to have tax cuts, think it demonstrates is, once again, class tax cuts, as I am; but he wants to we have to make sure that we live lowering marginal tax rates and en- pay for them. The gentleman from within a balanced set of priorities. We couraging strong economic growth Iowa (Mr. NUSSLE) in 1997 voted for the cannot leave to other generations and more than offsets the reduction in rev- Balanced Budget Amendment, as I did, steal from Social Security and steal enue that comes from the nominal loss which had exactly the same PAYGO as from Medicare to live today in baccha- that comes from the rates themselves. is included in the Moore motion to in- nalia and happy times. We have to put Mr. Speaker, I reserve the balance of struct. our fiscal house in order. my time. Hear me, I say to the gentleman from Mr. TOOMEY. Mr. Speaker, I yield Mr. MOORE. Mr. Speaker, I yield 2 Pennsylvania (Mr. TOOMEY). The gen- myself such time as I may consume. minutes to the gentleman from Indiana tleman from Iowa (Mr. NUSSLE) voted The point I was making about the in- (Mr. HILL). for exactly the same PAYGO as did 193 crease in revenue, and the gentleman (Mr. HILL asked and was given per- Republicans. Stick with your original from Maryland was disputing this, I mission to revise and extend his re- convictions. think, my point is if you look at the marks.) b 1515 last 6 months of this year, if you look Mr. HILL. Mr. Speaker, I would like back from October of 2003 through to thank the gentleman from Kansas Mr. TOOMEY. Mr. Speaker, I reserve March of 2004 and you compare the for leading this discussion here this the balance of my time. same 6-month period to the year be- afternoon. Mr. MOORE. Mr. Speaker, how much fore, you will discover that we brought A few minutes ago on the floor of time do I have remaining? in more revenue to the Federal Treas- this House, I cast a vote against the The SPEAKER pro tempore (Mr. ury in this most recent 6-month period AMT tax cut. Some would say that LAHOOD). The gentleman from Kansas than we did in the last 6-month period. that was a foolish vote for me politi- (Mr. MOORE) has 14 minutes remaining. That is the point that the gentleman cally, do I not think so. I do not think Mr. MOORE. Mr. Speaker, I yield 2 from Iowa (Chairman NUSSLE) and I it was a foolish vote politically, be- minutes to the gentlewoman from Ne- have been making. cause I believe that the people of the vada (Ms. BERKLEY). Revenue coming into the Federal Ninth District in southern Indiana be- Ms. BERKLEY. Mr. Speaker, I rise Government is, in fact, growing, and it lieve that if it is tax cuts versus shor- today to express my strong support for is at an accelerating pace; and I strong- ing up Social Security, if it is tax cuts the motion to instruct offered by the ly suspect that the next quarter is versus paying down the debt, if it is tax gentleman from Kansas (Mr. MOORE). going to show an increase over the cor- cuts versus shoring up Medicare, if it is It is our duty as lawmakers and the responding quarter from the previous tax cuts or having foreign countries voices of our constituents to demand a year. That is precisely because of the buy our paper to finance the debt, I budget resolution that is fiscally re- strong economic growth. think that they will pick fighting the sponsible and meets the needs of our Mr. HOYER. Mr. Speaker, will the war, shoring up Social Security, shor- country. This motion a very simple gentleman yield? ing up Medicare, making sure that not motion would require that any increase Mr. TOOMEY. I yield to the gen- too many foreigners have our paper. in spending and tax cuts must be sub- tleman from Maryland. They want to be fiscally responsible jected to a pay-as-you-go rule. Mr. HOYER. Mr. Speaker, I thank like many of the Members on this side As this country faces record deficits, the gentleman for yielding. of the aisle want to be. And the only increased spending on homeland secu- I understand his analysis of the last 6 way that can happen, I say to my col- rity and the war in Iraq, now is the months; we have had a good growth in leagues, is for there to be PAYGO dis- time for fiscal discipline. The Federal the last 6 months. Not as good, con- cipline in both spending and tax cuts. budget deficit is fast approaching $500 trary to what the gentleman says, as Now, I was at the Joint Economic billion and will only continue to grow. we had in terms of the Clinton years, Committee meeting last week where Unless we act now, our children and

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00039 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.073 H05PT1 H2590 CONGRESSIONAL RECORD — HOUSE May 5, 2004 our grandchildren will be paying for items the way they can under current I know the gentleman from Kansas our fiscal irresponsibility. law. (Mr. MOORE) does not like the charac- Remember 1990 when America also I think it is a bad idea when we have terization of this. But the fact is we struggled with record deficits. Congress all the evidence suggesting we are well have got provisions in law that will re- faced the same choice that we do into a substantial and probably a sus- sult in a tax increase if we do not do today. Ignore the realities of fiscal ir- tainable economic recovery, why we something about it, and what your pro- responsibility or confront it head on would suddenly ratchet back up the vision would do would prevent us from and resolve the problem. In 1990, the taxes in the face of that and the fact solving that problem that results in a Democratic-controlled Congress made that this has been a very successful tax tax increase. the responsible choice. It included policy, very successful in terms of Mr. Speaker, I reserve the balance of PAYGO legislation as a part of 1990 turning this economy around and now my time. budget agreement. in terms of getting people back to Mr. MOORE. Mr. Speaker, I yield my- PAYGO was extended in 1993 and 1997 work, why we would want to undo all self such time as I may consume. and was essential in restoring this of that with a measure like this makes Mr. Speaker, what the gentleman has country’s economic health. The sky- no sense to me. done is presided over policies that has high deficits of the late 1980s and early Mr. Speaker, I reserve the balance of created the greatest debt in our Na- 1990s turned into substantial budget my time. tion’s history and nothing he says can surpluses by the late 1990s. When this Mr. MOORE. Mr. Speaker, I yield my- change that. administration took office, there was self such time as I may consume. Mr. Speaker, I yield 3 minutes to the nearly a $400 billion surplus and a pro- Mr. Speaker, the gentleman can say gentleman from Texas (Mr. STENHOLM). Mr. STENHOLM. Mr. Speaker, I jected surplus of several trillion dol- black is white until his face is blue, but know the gentleman from Pennsyl- lars. it does not change the facts. You can vania (Mr. TOOMEY) did not delib- Despite this success, the administra- talk about tax increases here. We are erately attempt to misspeak to this tion’s irresponsible choice to allow the talking about fiscal responsibility and body, but revenues in 2000 were $2.025 PAYGO rules to expire in 2002 has con- he is not. In fact, what he is doing and trillion, revenues in 2003 were $1.782 tributed to the record deficit we face his policies would do is put our Nation trillion; projected CBO for this year is today. The time to act is now, before deeper and deeper and deeper in debt. Again, Mr. Speaker, we have the the $1.817 trillion. I understand that our Nation slides further and further largest debt, $7.1 trillion in our Na- you are putting the best spin forward, into debt. We must include PAYGO tion’s history. We have the largest 1- on this year, it is going up, but look at rules that apply to both spending and year deficit in our Nation’s history, what it has done under the policies tax cuts in this year’s budget resolu- and the policies he is talking about, that you continue to advocate. tion. contrary to what Chairman Greenspan What we are talking about is what If I could add something personal. My wants, will put our Nation in deeper Chairman Alan Greenspan would like husband is not only a Republican, he is debt and mortgage the future of our to see us do; what the Concord Coali- a Heritage Foundation Republican, a children and grandchildren. tion would like to see us do: Put some fiscal conservative in our personal life; I was at a high school last week and fiscal responsibility into all our ac- and he believes that this is outrageous. I talked to a group of high school stu- tions. He is astounded that the Republican- dents, government students, about The gentleman keeps referring to the controlled Congress is behaving in this this, and I said, Why should you care Reagan years. I was here. I helped pass irresponsible fiscal manner. He will not about a $7.1 trillion debt? A girl raised the first Reagan tax cut. It did not have it and neither will I. her hand and she said, Because we are work as was intended. It built up $1.8 Mr. TOOMEY. Mr. Speaker, I yield going to have to pay for it. And I said trillion of debt in 8 years. The Bush 41 myself such time as I may consume. you get an A for today, and you should built up another $1.5 trillion of debt. In Mr. Speaker, I just want to make be angry about what folks in Congress the 8 years of the Clinton administra- sure everybody is very clear as we have are doing to you and your children and tion debt went up $1.4 trillion; and it is this discussion that if this proposed grandchildren because you are putting estimated under the Bush 43, debt will provision were to become binding, the them in a hole they can never dig their go up $2.4 trillion. That is what we net effect is almost certainly a very, way out of. were suggesting doing something very major tax increase. All we are Mr. Speaker, I reserve the balance of about. It is called fiscal responsibility. talking about is, what I want to do my time. It is called living within your means. It here is let us make sure we can main- Mr. TOOMEY. Mr. Speaker, I yield is called making tough decisions. tain existing tax law. myself such time as I may consume. Yes, there are tax cuts that grow the What the gentleman from Kansas Mr. Speaker, I just want to go back economy, but there are also tax cuts (Mr. MOORE) is proposing is that under to this point because this is a very im- that increase the deficit. Let us make existing law, unfortunately, taxes are portant point. We have created an envi- that decision, instead of just coming scheduled to go up. If we prevent that ronment, created a tax environment in here and rhetorically talking about by making sure we maintain the exist- which the economy can grow more rap- things that just are not so. With all ing rate structure, the existing tax idly and it is growing more rapidly. We due respect, it just is not so from the law, we would have to come up with have both CBO projections and the standpoint of the deficit coming down. these huge offsets, which we certainly House budget resolution both forecast If you talk about spending, I just are not going to get the votes over Federal receipts at $35 billion more have to smile and get myself under there to do that with spending cuts, so this year than last year, despite the control, every time I hear a Republican we would have to raise taxes some- fact that we cut taxes last year; and stand up on this floor and talk about where else. now the monthly Treasury data that is spending, and I would yield to the gen- So the net effect is a huge tax in- coming in this year shows, and I do not tleman to answer to a question, who crease. What are some of the things think anybody is disputing this, that, has been in control of this House since that are scheduled to expire, some of in fact, we probably low-balled that. 1994? the problems that we would have if this The revenue was coming in at an even Mr. TOOMEY. Mr. Speaker, will the were adopted? Well, we would find we faster clip than the amount by which gentleman yield? would get the marriage penalty coming we thought it would exceed last year. Mr. STENHOLM. I yield to the gen- back in full force. We get the child tax So the fact is we have got a deficit tleman from Pennsylvania. credit that would be diminished dra- that is too big. We all acknowledge Mr. TOOMEY. Mr. Speaker, I have matically. The increase in the size of that. It is getting smaller. The revenue been the first one to say that excessive the 10 percent bracket, that goes away. is coming in faster because the econ- spending is a bipartisan problem. Small business expensing which has omy is growing. And if we get spending Mr. STENHOLM. Then if it is a bi- probably contributed significantly to under control, we can solve this prob- partisan problem, that is what we are this economic turn around. That goes lem. But the right way to do it is not suggesting today is a bipartisan solu- away. Small businesses cannot expense to raise taxes. tion.

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00040 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.075 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2591 Mr. TOOMEY. With a tax increase. Mr. TOOMEY. Reclaiming my time, Mr. MOORE. Mr. Speaker, I yield my- That is not a good solution. but the mechanism by which you self such time as I may consume. Mr. STENHOLM. No, with all due re- choose to make that decision is pre- Mr. Speaker, I would respond to the spect, well, if you want to fight the war cisely this, it is to say that we have to gentleman simply by saying that we by shortchanging the troops in order treat, even maintaining existing tax have, on this side, coined a phrase that you can have your rhetorical an- law, as though it were equivalent to called the debt tax, not the death tax, swers on that, fine. launching a new spending program be- D-E-A-T-H, but the debt tax, D-E-B-T. I will be happy to yield for a simple cause you want to impose the exact And the debt tax is the interest we pay discourse, but every time you start same mechanism on both those activi- on our national debt and the debt tax that rhetoric that has put us into a $2.4 ties as though they are equivalent. And is going up just as the deficits are trillion hole in 4 years. my point is they are not equivalent. going up and the debt is going up. Mr. TOOMEY. Mr. Speaker, will the One, the new spending, leads to lower gentleman yield? economic growth, lower productivity, b 1530 Mr. STENHOLM. I yield to the gen- fewer opportunities for American It is the policies of the gentleman tleman from Pennsylvania. workers; and the other, maintaining across the aisle that are causing this to Mr. TOOMEY. First of all, I think this lower tax burden that we managed happen, and it has got to change. Peo- the gentleman will acknowledge that to pass in recent years, leads to strong- ple in this country know in their Republicans have not short-changed er economic growth, more jobs, higher hearts and they know right in their our troops; that we have advocated and wages, and we are seeing it in the num- heads that we cannot give like this for- passed legislation that would provide bers. We are seeing that this economy ever. We are the strongest Nation on the necessary resources; and we had a has turned around. We are seeing the the Earth. We are the freest Nation on budget resolution that took the non-se- strength of this economy. We are see- the Earth, but we cannot be strong and curity portions of our budget and we ing it producing new jobs. And, in fact, free and broke, and that is the policy froze that. We said, these areas that as the gentleman has acknowledged in advocated by the gentleman from are not critical to American security recent months, we are even seeing a across the aisle. should grow at zero. growth in revenue to the Federal Gov- That is going to happen if we keep Now, most if not all Members on the ernment. It is true. going the way we are. Our Nation will gentleman’s side of the aisle, thought It has not yet reached the level that end up owing so much money it will be that that was somehow unreasonable, it was at before the recession and be- financially unsustainable for our chil- because we did not grow spending. So I fore the war and before September 11. dren and grandchildren. I do not want do not think you can accuse us at this It will get there. It may take a little that to happen. point of not dealing with this problem. bit longer but the fact is revenue to the Mr. Speaker, I reserve the balance of Mr. Speaker, if the gentleman would Federal government is growing. It is my time. yield me some time. growing at an accelerating pace. But, The SPEAKER pro tempore (Mr. Mr. Speaker, if not, I yield myself frankly, that is not my highest pri- LAHOOD). The gentleman from Penn- such time as I may consume. ority in life. My highest priority, and sylvania (Mr. TOOMEY) has 9 minutes Mr. Speaker, I yield to the gentleman what I think it should be here is, are remaining, and the gentleman from from Texas. we creating an environment where we Kansas (Mr. MOORE) has 7 minutes re- Mr. STENHOLM. Mr. Speaker, I create the maximum opportunity for maining. The gentleman from Kansas agree with the gentleman. The short- Americans, the most job opportunities, has the right to close. changing of our troops is bipartisan. I the greatest chance for new businesses Mr. TOOMEY. May I ask a question 1 am ⁄435 of this body and anything we to flourish. of the gentleman from Kansas. Does have not done, I accept my share of the I know that is what the gentleman the gentleman have any additional blame for; but I am not in control. I am from Texas (Mr. STENHOLM) would like speakers? not in the majority. And the minority to see accomplished. I think we differ Mr. MOORE. Mr. Speaker, I am going has been totally ignored on most of about how to get there. But I strongly to grant some additional time at the these issues, but I still have to take my believe that making it essentially im- appropriate time to the gentleman responsibility for that action. And the possible to maintain the existing tax from Texas (Mr. STENHOLM). fact is we have not done a real good law and instead having a higher tax re- Mr. TOOMEY. Mr. Speaker, I yield job. gime does not get us there. myself such time as I may consume. On the question of providing for Mr. STENHOLM. Mr. Speaker, will I would just make one additional spousal benefits for military retirees, the gentleman yield? point, and that is the point that has we have a bill that has 300 cosponsors Mr. TOOMEY. I yield to the gen- been made for us at our committee by of and we cannot get it on the floor of tleman from Texas. CBO Director Crippin, and I think this the House in order to debate. Mr. STENHOLM. Because nothing in is a very important one. When we look Mr. TOOMEY. Reclaiming my time, PAYGO precludes tax cuts, nothing at how best to get our deficit under we are getting a little bit far afield does. control, he makes the observation that from the discussion. Mr. TOOMEY. They have to be offset Mr. STENHOLM. We are talking with equal tax increases or spending a one-tenth of 1 percent increase in about pay-as-you-go. cuts; is that correct? GDP growth accounts for about an ad- Mr. TOOMEY. We are getting a bit Mr. STENHOLM. Right. ditional quarter of a trillion dollars, far afield. Mr. TOOMEY. Do you think that $250 billion, in additional Federal rev- I think one of the fundamental areas there are the votes anywhere in this enue over a 10-year period. This is why of disagreement that we have is the Chamber to have spending cuts when economic growth is so important. idea that my colleagues who offered the Democrats in this Chamber would The real reason it is mostly impor- the proposal, equate new spending with not vote for a Republican budget? tant is for the benefits that accrue to new tax relief, including maintaining Mr. STENHOLM. We did it in 1997. It the American people who produce this existing tax law. was Democrats like me that stood up growth; but if we want to figure out Mr. STENHOLM. Mr. Speaker, will with Republicans and got it done. how do we get our budget house in the gentleman yield? Mr. TOOMEY. Reclaiming my time, I order here, a strong economy gets us Mr. TOOMEY. I yield to the gen- would be thrilled if you and your col- there. One-tenth of 1 percent, going tleman from Texas. leagues would vote with us on this from 4 percent growth to 4.1 percent Mr. STENHOLM. Mr. Speaker, that budget resolution that freezes non-se- growth, just that small difference is not the intent of this amendment. It curity spending, that just says let us amounts to an extra quarter of a tril- is not to get into taxes or spending. It hold it at last year’s level because we lion dollars in Federal revenue. If we is just to say to this body, we have to really cannot afford more than that. can maximize economic growth and make a decision regarding how much But we never got the votes to do that. have some discipline on the spending more we borrow on our children and Mr. Speaker, I reserve the balance of side, we get this budget back to bal- grandchildren. my time. ance. We are moving in that direction,

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00041 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.077 H05PT1 H2592 CONGRESSIONAL RECORD — HOUSE May 5, 2004 and I think that is a direction we economic growth and expansion that Mr. Speaker, I yield back the balance should stay in. we saw in the 1990s. of my time. Mr. Speaker, I reserve the balance of Now, we are arguing a theory today, Mr. MOORE. Mr. Speaker, I yield my- my time. and I understand there are some that self the balance of my time. Mr. MOORE. Mr. Speaker, I yield 3 just cannot say, I was wrong, I did not PAYGO, the PAYGO rule that we are minutes to the gentleman from Texas make a mistake, I am perfect, every- proposing here today, does not stop (Mr. STENHOLM). thing we are doing we have just got to new tax cuts. All it says is that if we Mr. STENHOLM. Mr. Speaker, 3 keep on plugging and we can send that are going to have a new tax cut, we years ago is when this debate began debt to our children and grandchildren have got to cut spending; and if he and those of us that believed that we and look at them with a straight face. talks about discipline, he should prac- had a little better plan, we lost that I have three grandsons, and I cannot do tice what he preaches. If he talks about battle; and today, we are still fighting it; and that is why I will continue to discipline, he should practice what he the same battle we did 3 years ago. We say we will reach out the hand to the preaches; and if he wants a new tax were told if we instigated the tax cuts folks on the other side of the aisle, and cut, he should say here is how we are that we would balance the budget in 4 we will work together to bring our fis- going to pay for it. If my colleague years. It did not work out quite that cal house in order; but we cannot do it finds a way to do that, then I am all for way. We cannot argue with the fact with the game plan that they are advo- the gentleman from Pennsylvania (Mr. that the budget, that is somewhere out cating. TOOMEY), but he is not doing that. He is there in never-never land between the Mr. TOOMEY. Mr. Speaker, I yield just talking and not practicing reality House and the Senate, includes an in- myself the balance of my time. here. creasing of the debt ceiling, the We have had a spirited debate here I voted for the President’s tax cut 3 amount which this country can borrow, this afternoon about this, and I would years ago. We were in surplus mode at to over $8 trillion. simply close by reminding my col- that time, but now we are in deficit In the last 21⁄2 years, we have bor- leagues that if we were to pass the pro- mode. Now we are in deficit mode. We rowed $1 trillion. In the next year and vision that is proposed here, it would are no longer in surplus mode. a half, we are going to borrow in excess certainly result in very, very large tax Chairman Alan Greenspan of the Fed- of another $1.5 trillion. We cannot es- increases in this year, next year, the eral Reserve Board has testified before cape that those are the facts. We all following years of a very huge mag- the Committee on the Budget and the know the reason why. nitude; and I am gravely concerned Committee on Financial Services, on This amendment today just suggests that the result of that would be to, at which I serve; and he said consistently, that this generation ought to be doing a minimum, diminish the growth of our if we are not in a fiscally responsible some of the paying rather than just economy and quite possibly even turn position when this economy takes off, blindly following a theory that does us down into an economic downturn, interest rates could climb rather dra- not work, the theory that we can bal- back from whence we came. matically, and we should not let that ance the budget by cutting the amount We are on the right path. The econ- happen. It could be devastating for of revenue when we are at war. omy is growing. It is growing strongly. business, for the real estate industry, This is the first war in the history of It is actually growing at a nearly for consumer borrowing, and for people our country that we have fought by record pace. We have job growth that in this country. Chairman Greenspan cutting taxes, and the results are pre- has kicked in in a very impressive way, has said over and over, we should have dictable. It is amazing. Most main-line and that is the most important part of budget enforcement rules, PAYGO economists agree with what we are this; and that is really manifesting rules, that apply not only to new talking about today, making it tough itself in recent months, likely to con- spending but to tax cuts. to raise spending, being very scru- tinue, likely to generate a self-sus- I understand the gentleman thinks pulous on the manner in which we taining momentum for the economy. he knows more than Mr. Greenspan, spend our taxpayer dollars, but also This is exactly what we should be but I do not believe that is true. I do take a good, hard look at what we are trying to work for. It is the tax cut not believe that is true. leaving our children and grandchildren package that helped us get here. We We are going to have soon an $8 tril- and take a good, hard look at who is have now seen so much economic lion national debt at 4 percent. The in- buying our debt. growth that, as my colleagues on the terest on that national debt will be $320 The Japanese will soon own over $600 other side have acknowledged, even in billion a year. It is digging us deeper billion of our debt. The Chinese are at recent months and recent quarters, and deeper in this hole. If that interest $200 billion and going up rapidly; and if revenue collected by the Federal Gov- rate went up to only 5 percent, it would that does not bother my colleagues ernment is growing. It is accelerating. add another $80 billion, another tax in- who is the banker of the United States, That means if we stick to the budget crease; and that is what we are talking then continue to say, as some so-called resolution that we passed with votes on about here is the debt tax, the interest conservatives continue to say, deficits this side of the aisle alone, where we on our national debt. do not matter as long as we are fol- put a freeze on nonsecurity discre- They will put us, the policy advo- lowing the great game plan that has tionary spending, if we maintain that cated by the gentleman from Pennsyl- been totally rhetorized today by the spending discipline, while we continue vania (Mr. TOOMEY), deeper and deeper gentleman from Pennsylvania (Mr. to have the strong economic growth, in the hole; and the problem is, they do TOOMEY); and he does a good job, and I we will, in fact, see a dramatic reduc- not want to pay for it now. They want respect the fact he is sincere. tion in this deficit. That is what we to pass the bill to our children and That is something that I can respect should be working towards, maintain- grandchildren; and our children and on this floor because he puts his money ing the tax law, keeping the tax burden grandchildren if they are watching tel- where his mouth is. The problem is as low as we possibly can on the Amer- evision today and they have heard this there are not 218 Republicans that ican people, with some spending re- debate, they should say, enough, we are agree with him, but there are 218 Mem- straint. not going to take that anymore; it is bers of this body that would agree on Again, we proposed that we freeze not fair; it is really not American. pay-as-you-go and would get our fiscal this nonsecurity spending, unfortu- We should end this today by saying house in order as we did in 1990 when nately. My colleagues on the other side common sense. If my colleagues want a Democrats were in control and a few of would not go along with that freeze. tax cut, they have a new spending pro- us voted with Republicans to put some That is the kind of discipline that will posal, find a way to pay for it; and if fiscal order, and as we did in 1997 when get our budget in order. they cannot do that, we will not do it Republicans could not pass their budg- What we need to do is reject this pro- because it is not fiscally responsible. It et in 1997 without Democratic support, posal today, vote ‘‘no’’ on the motion is not the right thing to do. It is not and I was there and I helped because I of the gentleman from Kansas, and how American families live, and we are believed in that compromise legisla- stick to some discipline on the spend- going to start living like American tion that then ultimately gave us the ing side. families.

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00042 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.079 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2593 Mr. Speaker, I yield back the balance Whereas despite the fact that autism is one proved treatment of autism, and im- of my time. of the most common developmental dis- proving training and support for indi- The SPEAKER pro tempore (Mr. orders, many professionals in the medical viduals with autism and those who care and educational fields are still unaware of ADERHOLT). All time has expired. for individuals with autism. Without objection, the previous ques- the best methods to diagnose and treat the disorder: Now, therefore, be it Autism is a developmental disability tion is ordered on the motion to in- Resolved, That the House of Representa- that usually appears, unfortunately, in struct. tives— very young children. We all have There was no objection. (1) supports the goals and ideals of ‘‘Na- friends who are experiencing the trag- The SPEAKER pro tempore. The tional Autism Awareness Month’’; edy, and God knows it is a tragedy, of question is on the motion to instruct (2) recognizes and commends the parents having a child diagnosed that is autis- offered by the gentleman from Kansas and relatives of children with autism for tic. What that does to a family we can (Mr. MOORE). their sacrifice and dedication in providing only try to imagine. The least that we The question was taken; and the for the special needs of children with autism and for absorbing significant financial costs can do is to encourage more research Speaker pro tempore announced that for specialized education and support serv- and awareness and education among all the noes appeared to have it. ices; families. Mr. MOORE. Mr. Speaker, on that I (3) supports aggressive research to deter- The disease impacts the normal de- demand the yeas and nays. mine the causes of autism, identify the best velopment of the brain that controls The yeas and nays were ordered. methods of early intervention and treat- social interaction and communication The SPEAKER pro tempore. Pursu- ment, expand programs for individuals with skills. Autism is four times more prev- ant to clause 8 of rule XX, further pro- autism across their lifespan, and promote alent in boys and knows no racial, eth- understanding of the special needs of individ- ceedings on this motion will be post- nic, or social boundaries. poned. uals with autism; (4) commends the Department of Health More than 500,000 people in the f and Human Services for implementing pro- United States today have some form of ANNOUNCEMENT BY THE SPEAKER grams to study the epidemiology of autism autism, making it the third most com- PRO TEMPORE and related disorders and advancing autism mon developmental disability. Many research at the Centers for Disease Control people are surprised to learn that au- The SPEAKER pro tempore. Pursu- and Prevention and the National Institutes tism is more common than Downs Syn- ant to clause 8 of rule XX, the Chair of Health; drome. will postpone further proceedings (5) stresses the need to begin early inter- While we are finding better ways to today on motions to suspend the rules vention services soon after an individual has been diagnosed with autism, noting that understand and work with autistic in- on which a recorded vote or the yeas dividuals, the disease is still greatly and nays are ordered, or on which the early intervention strategies are the primary therapeutic options for individuals with au- misunderstood. The majority of indi- vote is objected to under clause 6 of tism and early intervention significantly im- viduals, including health care profes- rule XX. proves outcomes for individuals with autism sionals, are still unaware of how au- Record votes on postponed questions and can reduce the level of funding and serv- tism affects people and how to effec- will be taken later today or tomorrow. ices needed later in life; tively work with the individuals with f (6) supports the Federal Government’s the disease. commitment to provide States with part of RECOGNIZING THE IMPORTANCE the costs needed to educate children with However, some progress has been OF INCREASING AWARENESS OF disabilities under part B of the Individuals made. A few years ago, most people AUTISM with Disabilities Education Act (20 U.S.C. with autism were eventually placed in institutions. Today, even the most se- Mr. BILIRAKIS. Mr. Speaker, I move 1411 et seq.); (7) encourages more Americans to pursue verely autistic disabled can be taught to suspend the rules and agree to the the teaching profession and to be trained skills to assist their development due resolution (H. Res. 605) recognizing the with the skills necessary to teach, assist, to the development of individualized importance of increasing awareness of and respond to special needs students, in- services and programs. autism, supporting programs for including those students with autism; and We are all extremely concerned creased research and improved treat- (8) recognizes the importance of worker about this disease. This resolution ment of autism, improving training training programs that meet the needs of de- stresses that early diagnosis and treat- and support for individuals with au- velopmentally disabled individuals, includ- ment are essential to ensuring a better tism and those who care for individuals ing those individuals with autism, and notes that people with autism can be, and are, pro- quality of life for individuals with au- with autism, and for other purposes, as ductive members of the workforce if they are tism. However, early diagnosis and amended. given appropriate support, training, and treatment can only occur with in- The Clerk read as follows: early intervention services. creased awareness, and that is much of H. RES. 605 The SPEAKER pro tempore. Pursu- what we try to do with this resolution; Whereas the Autism Society of America, ant to the rule, the gentleman from and that is why, Mr. Speaker, I urge all Cure Autism Now, the National Alliance for Florida (Mr. BILIRAKIS) and the gen- of my colleagues to support this good Autism Research, Unlocking Autism, and tleman from Ohio (Mr. BROWN) each bipartisan legislation. numerous other organizations commemorate will control 20 minutes. April of each year as ‘‘National Autism Mr. Speaker, I reserve the balance of Awareness Month’’; The Chair recognizes the gentleman my time. Whereas autism is a developmental dis- from Florida (Mr. BILIRAKIS). Mr. BROWN of Ohio. Mr. Speaker, I order that is typically diagnosed during the GENERAL LEAVE yield myself 3 minutes. first three years of life, robbing individuals Mr. BILIRAKIS. Mr. Speaker, I ask I want to thank the gentleman from of their ability to communicate and interact unanimous consent that all Members Massachusetts (Mr. TIERNEY) for his with others; may have 5 legislative days within leadership on this critical and growing Whereas autism affects an estimated 1 of which to revise and extend their re- health problem, and I would like to every 166 children in the United States; Whereas autism is four times more likely marks and insert extraneous material thank my friend from Florida (Mr. to be found in boys than in girls and can af- on the resolution. BILIRAKIS), the chairman of the Sub- fect anyone, regardless of race, ethnicity, or The SPEAKER pro tempore. Is there committee on Health, for his good other factors; objection to the request of the gen- work on this issue and on many others. Whereas the cost of specialized treatment tleman from Florida? One of the more eye-opening meet- in a developmental center for individuals There was no objection. ings I have had in my 12 years in Con- with autism is approximately $80,000 per in- Mr. BILIRAKIS. Mr. Speaker, I yield gress was with the family of an autistic dividual per year; myself such time as I may consume. child. The first time I did that, it was Whereas the cost of special education pro- Mr. Speaker, I rise today in support sobering to listen to the mother and fa- grams for school-aged children with autism is often more than $30,000 per child per year; of H. Res. 605, a resolution that recog- ther talk about their son’s diagnosis of Whereas the total cost nationally of caring nizes the importance of increasing autism, a disease about which the for individuals with autism is estimated at awareness of autism, supporting pro- causes are disagreed and generally un- more than $90,000,000,000 per year; and grams for increased research and im- known. It is sobering to learn what

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00043 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.081 H05PT1 H2594 CONGRESSIONAL RECORD — HOUSE May 5, 2004 these caring parents deal with every on because they want to do our tax nosis of autism’ as parents of this working hour of every day, trying to cuts and choose to give tax breaks to beautiful child. My husband and I won- carve out as normal a life as possible millionaires instead of funding these dered what his future would hold. After for their son, trying to break through public health programs that are essen- the initial shock, we started research- emotional barriers, intellectual bar- tial to the well-being of families of ing what we could do to give him a riers, barriers they do not fully under- children with autism and so many oth- brighter future.’’ The McDermott’s stand, barriers that no one really fully ers rich and poor in this country alike. also chose the ADA early intervention understands. Mr. Speaker, I urge my colleagues to therapy. Therapists worked with Grant It is sobering to learn the steps that support the resolution, and I thank the about 35 hours a week teaching him these parents take to improve their gentleman from Massachusetts (Mr. basic and then more advanced skills. son’s development: consulting with the TIERNEY), the gentleman from Florida He is now a regular in school with no developmental pediatrician; a child (Mr. BILIRAKIS), and the gentleman aides, and will be going to kinder- psychiatrist; a clinical psychologist from Indiana (Mr. BURTON) for their garten this fall. His future is looking and occupational psychologist and work on this issue. bright and the McDermott’s believe he therapist; a physical therapist; a Mr. BILIRAKIS. Mr. Speaker, I yield will have a full life, but it will always speech and language therapist; as well 3 minutes to the gentleman from Ne- be a challenge having an autistic son as often a social worker, if they have braska (Mr. TERRY), a member of the until a cure can be found. the wherewithal to be able to get the Committee on Energy and Commerce. Autism now affects 1 out of every 166 Mr. TERRY. Mr. Speaker, I rise in best they can for their son. children in the United States. Boys are strong support of H.R. 605. Frankly, I 4 times more likely to have autism b 1545 think there are probably many of us than girls. This developmental disorder This family could. Many families in here who have personal testimonials. robs individuals of their ability to our health care system that does not Everyone in Congress probably has communicate and interact with others. friends who have a child who is autis- cover many people so well do not. It is These are just some of the reasons why tic. heartbreaking to know these parents it is so necessary we get the word out If one were to see Jacob Nolan get no help from health insurers, forc- about autism and support this resolu- ing them to spend thousands of dollars Hirschfeld on the baseball diamond today, you might be impressed with his tion. each year towards treatment that may Mr. BROWN of Ohio. Mr. Speaker, I skills in playing our national pastime. improve their son’s development or yield 5 minutes to the gentleman from Since his middle name was inspired by may not improve their son’s develop- Massachusetts (Mr. TIERNEY). the great pitcher Nolan Ryan, you ment. Mr. TIERNEY. Mr. Speaker, I thank might also think his success on the My home State of Ohio’s families of the gentleman from Ohio, and all of the field was destined. But Jacob’s ability autistic children have a tremendous re- other Members who are speaking on to play baseball and do everyday such source in the Cleveland Clinic Center and cosponsored this resolution. for Autism. This unique center pro- things, such as attending school and As the gentleman from Nebraska playing with friends, was never guaran- vides specially designed services and (Mr. TERRY) indicated, there is story support to children with autism, or teed. Jacob Hirschfeld has been diag- after story that we could talk about nosed with autism. He struggles with while fostering research on autism, to the particular circumstances of a fam- many of the issues common among the gain a better understanding of its ily and how their family is impacted by autistic. At 4 years of age, he could causes and its effective treatments. autism. Autism is a brain disorder that only speak in one syllable words. He But families throughout my State typically effects an individual’s social was scared of loud noises and bright and throughout the Nation deserve interaction and communication. There lights. He had many of the compulsions similar support. The resolution we are are, as the gentleman from Nebraska that are common with these children considering today brings us closer to (Mr. TERRY) said, 1.5 million Americans and was fearful of most people outside achieving that. The resolution raises today who are affected by autism spec- of his immediate family. awareness about the unique needs of Jacob’s father, Mark Hirschfeld, a trum disorder. This is not just one typ- autistic children through a number of friend of mine, has said ‘‘our family ical set of circumstances, but a whole avenues, a few of which I want to men- was literally a prisoner to autism.’’ Ja- spectrum of circumstances and con- tion. Perhaps most importantly, the cob’s diagnosis was devastating to his sequences suffered by individuals and resolution recognizes the dedication of parents, but even more difficult was families. the parents and families of autistic the fact that physicians, educators, Experts do not concur on the exact children. and other professionals had little un- number of cases of autism spectrum To the countless families in Ohio and derstanding of this complex disorder disorder, but they agree autism is one around the country who care for autis- and what could be done to help chil- of the fastest growing developmental tic children, you demonstrate every dren like Jacob. Stereotypes abounded. disabilities in the United States. Spec- day what it means to be outstanding One physician told the Hirschfeld’s trum disorders are considered the sec- parents. that Jacob had no better chance than 1 ond most common developmental dis- The resolution also recognizes the in 10 of living outside of an institution. order that American children face important work the Centers for Disease Jacob’s mother, Nancy, recalls that today. And even so, many profes- Control in Atlanta does in studying the one preschool initially turned away her sionals, whether they are in the med- trends of autism throughout the coun- son because of their fears of autism, ical profession or the educational try. It supports the critical need for but once they began to see Jacob as a fields, are still unaware of best meth- early intervention in caring for an au- person who had unique gifts as well as ods to diagnose or treat this particular tistic child and the need to train teach- challenges, they accepted him. disorder. ers in addressing the needs of a grow- Thankfully, the Hirschfeld family What we do know is that once a diag- ing population of autistic children in persevered and sought services to help nosis is made, initiating early inter- our schools. their son. Their search led them to en- vention services significantly improves The resolution supports Federal re- gage in intensive, early intervention the people with autism and can reduce search into causes and treatments of therapy called Applied Behavior Anal- the level of funding and services needed autism at the National Institutes of ysis, or ABA, which has helped them later in life. Ten years ago, the Center Health. If this Congress is serious dramatically. Early intervention has for Disease Control estimated that 1 in about the causes that we articulate so also made a difference in the lives of every 10,000 children were affected by well in this resolution, we will be Patrick and Jean McDermott, with autism. More recently, the number was equally serious about providing ade- their son, Grant, who was diagnosed refined to 1 in every 250. This year the quate funding for the National Insti- with autism when he was 22 months CDC estimated that the occurrence of tutes of Health and the Centers For old. autism is closer to 1 in 166. We sent it Disease Control, something the Repub- Grant’s mother Jean said, ‘‘It was back to CDC when we first got that lican majority continues to fall short devastating to hear the words ‘diag- number because we were astounded it

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00044 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.082 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2595 would be that high, but on reflection of children with disabilities under the those changed as quickly as possible and review of their numbers, they said Individuals With Disabilities Edu- and go to single-shot vials that do not it was closer to 1 in 166. cation Act. require these preservatives. Mr. Speaker, we have to commend We can go further by making sure I also want to say to my colleagues families and parents and relatives of that the Centers For Disease Control that are concerned not only about chil- children with autism for their sacrifice and the National Institutes of Health dren but about adults, many, many of and dedication in providing for those have enough funding to find out the the adult vaccinations like the flu vac- special needs. I have seen situations cause of this particular disease, to find cine that we get every year to protect where parents are dealing 24 hours a how we might detect it earlier, treat it this population against the ravages of day, 7 days a week, with a child with and prevent it. flu contain thimerosal or mercury. It extreme autism. Again, I commend and thank all of should not be in any vaccination that In the subcommittee, so ably chaired my colleagues for cosponsoring this human beings are getting. Mercury is by the gentleman from Indiana (Mr. resolution, for their hard work in mak- toxic to the human body, and it should BURTON), we have seen films of children ing sure that we do the Federal share be taken away and should be elimi- with extreme autism. Some Members in finding some solutions. nated. Our soldiers in the Persian Gulf, saw, for the first time, just how dif- b 1600 in Iraq, get as many as 11 shots in one ficult it is to deal with autism and its day. Many of those shots contain thi- consequences. Mr. BILIRAKIS. Mr. Speaker, I yield merosal, which is 50 percent mercury. My niece teaches special education in 3 minutes to the gentleman from Indi- We need to get it out of there. the State of Massachusetts. There are ana (Mr. BURTON), who, along with the In addition to that, as this resolution other teachers who talk to me regu- gentleman from Massachusetts (Mr. states very clearly, and I thank the larly about the special needs and cir- TIERNEY), is the author of this legisla- gentleman from Massachusetts for cumstances of children in their classes, tion. this, we need more research to find out and tell me every year the number of Mr. BURTON of Indiana. Mr. Speak- all of the causes of autism so that the children with autism in their classes er, I want to thank the gentleman from children that are coming into the seems to grow. Massachusetts for introducing this bill. world today are going to be protected Autism does not discriminate by race He is a good buddy on the committee. in the years to come. The cost to the or ethnicity, but it is four times more I appreciate his concern over this issue. taxpayers, to this country, is huge. prevalent in males than females; and My grandson became autistic 2 days They estimate that there is $90 billion an estimated 50 children are diagnosed after he received nine shots in one day, in costs right now when you add up ev- with autism every day. There is no seven of which contained a substance erything as far as the damages to the known cure for autism, so it is impera- called thimerosal, which is 50 percent human beings in this country that are tive to learn why autism is reaching mercury. We have gone from one in becoming autistic. epidemic proportions across this coun- 10,000 children in this country that are We have got a huge problem now, but try. autistic to now there is one in 166. As down the road, these people are not Children do not follow any typical the gentleman from Massachusetts just going to die; they are going to grow old pattern of child development. For said, it is four times more prevalent in and live long lives. Somebody is going some, hints of future problems appear boys than it is in young girls. to have to take care of those who can- at birth, in others it becomes more no- There are probably many causes of not take care of themselves. We need ticeable as children slip behind chil- autism, but one of the causes of autism to find a cure for autism, and we need dren of their own age. The condition according to scientists and doctors to get mercury out of all vaccines. can be improved through behavioral that we have had before my committee Mr. BILIRAKIS. Mr. Speaker, I yield and well-structured educational pro- from around the world is having the 3 minutes to the gentlewoman from grams in some instances. Educational substance of mercury injected into Florida (Ms. ROS-LEHTINEN). service programs are offered by the children’s bodies at a very, very young Ms. ROS-LEHTINEN. Mr. Speaker, I number of organizations. age. Mercury, we know, is a very toxic thank the gentleman for yielding me In my district, we are fortunate to substance. It is one where if you have this time, and I congratulate the gen- have the North Shore ARC. We also it spilled on the ground, they will evac- tleman from Massachusetts for this have other programs of the May Foun- uate the room until they get it cleaned very important resolution that, as has dation, May Center and Institute and up. Yet in most childhood vaccinations been pointed out, does several things. the Shriver Center in Massachusetts. up until just recently, they had a sub- It recognizes the importance of in- They deal with programs developed for stance in there called thimerosal which creasing awareness of this affliction, children with autism spectrum dis- is a preservative, and it was 50 percent autism. It supports programs for in- order, providing a broad scope of serv- ethyl mercury. Children get as many as creased research and improved treat- ices, support, advocacy, information, 30 shots before they start to grade ment of autism. It improves training and referrals that are responsive to the school and mercury has a cumulative and support for individuals with au- needs of children with that disorder. It effect in the brain. It is no wonder in tism. is thanks to their continuing efforts my opinion that we now have one in 166 But one of the causes that I believe is that some families are getting relief children that are autistic where it used one of the most important ones is that and support. to be one in 10,000 just about 10 or 15 it recognizes and commends the par- But Congress has to recognize the years ago. ents and relatives of children with au- significant financial costs for the spe- We have to get mercury, as one of the tism for their sacrifice and dedication cialized education and support services. causes of autism, out of all vaccina- in providing for the special needs of According to the Centers For Disease tions for children. We have gotten it children with autism and for absorbing Control, the cost of specialized treat- out of all of them but three, but we significant financial costs for special- ment in a developmental center for still have some of those vaccinations ized education and support services. people with autism is approximately that are on the shelves that are being As has been pointed out before, each $80,000 per individual per year. And the used by doctors that continue to use one of us could probably be here on the cost of special education programs for these vaccinations that have mercury floor with a personal story about how school-aged children with autism is in them. we know someone who has autism, a often more than $30,000 per individual I would just like to say to the CDC family that has been affected by this per year. The cost nationally of caring and the FDA today, we ought to get all disease, this affliction; and I am no ex- for persons affected by autism is esti- those things off the shelves, all those ception to that. My best friends, mated at more that $90 million a year. vaccinations off the shelves that con- Charles Flick and Patience Plumer With these numbers in mind, Congress tain mercury so we can protect our Flick, have three children, two of should fulfill the 30-year-old Federal children; and the three vaccinations whom have autism. Bonnie, a teenager, commitment to provide States with that still contain ethyl mercury in the is able to communicate both verbally part of the costs needed for education form of thimerosal, we need to get and in written form. She is able to do

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00045 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.084 H05PT1 H2596 CONGRESSIONAL RECORD — HOUSE May 5, 2004 simple arithmetic. She is probably in be loved. This child was an autistic went through 4 years of medical school the higher level of high-functioning au- child whom we identified early on as residency, internship, and never saw a tism disorder. However, her young having some of those symptoms. case of autism. I came from a large brother, Willis, is not able to commu- Autism is a biologically based, family on both sides, my mother and nicate, is not aware of his sur- neurodevelopmental disease that father, and never saw a case of autism. roundings, makes no connection to causes severe impairments in their lan- I was quite surprised when a physi- those around him in a very direct way, guage, in their social interactions, as if cian friend of mine told me about 5 nor is he able to communicate in any there was this wall around them that years ago, 6 years ago now, that his son way, shape or form except for grunts they can neither love nor be loved. had been diagnosed with autism. Then and pointing at simple pictures. These are not children who are men- I discovered that Dan Marino had a son It has been a great experience for the tally retarded. Although some children with autism; Doug Flutie, whose par- family, a great challenge, to have them may have other developmental delays, ents live in my district, had a son with deal with the special needs of these two there are other children with autism autism. Then all I can say is the more children. It presents a special chal- who are very bright and high func- I started looking into this, the more lenge as well to their oldest child, tioning. These are children who really and more concerned I began to become. Penny Flick, who is a graduating sen- tear at the hearts of families because A disease that was virtually unheard ior from high school this year. they have so many troubles with them. of, estimated at one in 10,000. I met Autism affects not just the children, In fact, it is impossible to really de- with people in California. They were those individuals with autism; it af- scribe the tremendous burden that coming up with estimates of one in 500, fects and it impacts the entire family. families have in raising an autistic one in 600. I met with the CDC. I asked It has been a blessing, I believe, for the child. They seem unreachable. They them what was going on. There was Flick family to have children with au- cannot interact with their parents. some controversy at the time 4 or 5 tism because it has made them more They cannot interact with their sib- years ago because the diagnostic tools, aware of God’s many blessings upon lings in a loving way. The pain these the diagnostic and statistical manual them and makes them cherish life all families feel is indescribable. The enor- had been changed such that maybe we the more. I think that this clause in mous strain that these special children were diagnosing more of it, but the in- this resolution of the gentleman from place on families cannot be quantified cidence was not really up. Anyway, the Massachusetts is very poignant be- with numbers. The emotional chasm CDC to its credit did the necessary re- cause it recognizes and commends the between the child and parents and search and concluded that the inci- parents and the relatives of children loved ones oftentimes leads to unusu- dence of this disease had skyrocketed with autism because they deserve a ally high divorce rates at a whole other from being a rare, unheard of condition very special place in our society and in level. to one in 166, predominantly affecting our community. Caregivers of people Sadly, existing treatments are expen- boys. with special needs so often do not go sive and less than optimally effective. What has been particularly con- noticed and are not given the attention There are behavioral treatments that cerning to me is reports that I was re- that they deserve. It takes a special help some children, but these treat- ceiving. Unlike the description that heart and a special family to cope with ments are far from a cure. I remember the gentleman from Pennsylvania was the daily challenges that autism gives when I started practicing, we would offering of a child in the nursery, the to the families. learn patterns and strategies to work baby that you take home that has au- I commend the gentleman from Mas- with autistic children only to find a tism that just never seemed right, we sachusetts for this resolution, and I few years later someone else said, that were getting more and more of these congratulate the Flick family and ev- does not work, it was just another per- reports where my baby was speaking eryone involved with Bonnie and Willis son’s theory. and now is no longer speaking, my for their great care. But there is hope. Thanks to new baby was reacting and looking at me Mr. BILIRAKIS. Mr. Speaker, I yield medical technology such as the decod- and is no longer reacting and looking 31⁄4 minutes to the gentleman from ing of the human genome, cures are at me. This is a very, very serious cri- Pittsburgh, Pennsylvania (Mr. MUR- achievable for children born with au- sis. I think the previous speakers have PHY) where I grew up. tism today. New biomedical treat- been very eloquent in pointing out the Mr. MURPHY. Mr. Speaker, when I ments, such as secretin and huge costs to our society. I am very years ago worked as a psychologist at immunotherapy, are providing hope glad they brought this forward because one of the hospitals in Pittsburgh, I that autistic children will not be con- it brings public attention to this issue, was examining a newborn baby. As part demned to live out their lives in emo- and it brings the attention of this body of examining this baby, I looked to see tional isolation. But these treatments to this issue. how this baby responded to sounds and can only be developed if biomedical re- One of the main reasons why we need sights. Your average newborn baby search is funded, if behavioral research to try to address this and we need to when you have a light or something in is funded, if social research to help the move aggressively on this is that we the baby’s eyes will turn toward it. If families is funded, if language therapy have been battling Parkinson’s disease you hold the baby in front of you and is funded. and breast cancer and all of these ter- the baby looks you in the eye, you can Currently, autism research is pro- rible conditions for years and years, turn your head and that baby’s eyes viding remarkable advances, but there and we have a pretty good idea of what will turn with you. is still a great deal to be done and causes them. It is very hard to address There was one particular child that I cures to be found. But for children like the cause. We do not even know what remember holding and looking at. those I described, we are far from a causes this disease in these kids. We Every time I tried to get the baby’s cure. We need to learn, to teach, to may discover that this condition is to- eyes to look at me, this infant would help these children and help these fam- tally avoidable. We may discover that turn away and get distressed. Yet if I ilies be able to speak the language of it is reversible. I am very pleased that held an object or something before the the heart that every parent would love the gentleman from Massachusetts put baby, the baby would look. I made a to have with their child. As I said, we some language in there on early inter- note of that somewhere in my own are far from a cure because we are so vention services as children are diag- charts. It was interesting that a few far, so far from knowing a cause. nosed because what I am now hearing years later when this same child en- Mr. BILIRAKIS. Mr. Speaker, I yield more and more is parents are saying, I tered my office at age 3, the parents such time as he may consume to the got my kid in therapy or we did this or noted that this child did not seem to gentleman from Florida (Mr. WELDON). we did that and he is doing much, have emotional reactions to people, did Mr. WELDON of Florida. Mr. Speak- much better. not seem to respond to playing the er, I want to commend the author of same way other children do, did not this resolution, my friend from Massa- b 1615 seem to use words the same way. It was chusetts, the ranking member and the And previously, the attitude was almost as if he could neither love nor chairman for bringing it forward. I there is nothing one can do for them

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00046 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.085 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2597 and it is basically almost like a ter- of Autism and Developmental Disabilities, to Wisconsin-Eau Claire, which is making great minal situation. Just institutionaliza- determine and monitor the number of children progress with its autism intervention program tion is all that can be done. And now, in Utah with autism. This identification process that trains students in autism behavior anal- lo and behold, we are finding with early is an important first step in raising awareness, ysis and therapy. I believe we have a respon- intervention these kids can become quantifying need, and creating the necessary sibility to aid colleges and universities that are much more manageable. They can be networks to provide adequate support. doing such important work. I am also proud to taught. They can develop learning Autism is best treated when diagnosed be a member of the Congressional Coalition skills, reading, writing. So it is a much early. Usually, diagnosis occurs within the first for Autism Research and Education, which more positive outlook. three years of life. Improving awareness does seeks to educate members on the realities of Regarding the issue that the gen- not just mean counting people, it means iden- autism and work to increase federal funding tleman from Indiana (Mr. BURTON) was tifying children with autism early, by ensuring for autism research and services. bringing up about mercury in the vac- that primary care providers are aware of the I have been fortunate during my years in cines, the implication there, I think signs of autism. Early identification can assist Congress to meet with many parents of autis- the science is not really in on this. It in earlier access to appropriate treatment for tic children who continue to amaze me with is really inconclusive, but minimally these children, and early intervention can im- the selfless work they do each day. Recently, what I think we need to do is what the prove the long-term outcomes. I was able to spend some time at Willow River gentlewoman from New York (Mrs. In addition, expanding awareness is about Elementary School in Hudson, Wisconsin, MALONEY) and myself are recom- training and services, both for children, their which has one of the highest rates of autistic mending, and that is get the mercury families, and their caregivers and educators. children in the state. It was a pleasure to out of all the childhood vaccines. It is Too often children with autism do not receive spend time with special education teachers a toxic substance, and whether it is im- the highly trained, skilled services that they who work so diligently with their students. The plicated or not in the autism, I think need. Autism can overwhelm both the child morning was a reminder of both the problems there is evidence to suggest it may be, and those who must care for them without and promise autistic children have. that minimally we should not take any adequate preparation or support. Improving Mr. Speaker, we must work to better the sit- chances with little kids. We should not professional development, support networks, uations of the children and families who live be exposing them unnecessarily to mer- and assistance available to the caregivers of with autism on a daily basis. I commend Mr. cury. And therefore pass our legisla- individuals with autism is critical. It is nec- TIERNEY and Mr. BURTON for offering this im- tion to get the mercury out. essary to adequately fund and support special portant resolution and am pleased to be an Again, I congratulate the gentleman education and train specialized teachers. It is original cosponsor. I urge my colleagues to from Massachusetts on this. We need also critical to recognize the potential that indi- support this resolution. more research. And let me just close by viduals with autism can have when provided Mr. LANGEVIN. Mr. Speaker, I rise today in saying NIH and CDC have significantly with appropriate educational opportunities and strong support of H. Res. 605, which recog- increased their funding. They have employment training. With these on-going nizes the importance of increasing awareness been responding. I think NIH funding interventions and supports, individuals with au- of autism. This resolution supports research for autism research is up four-fold in tism can achieve their fullest potentials. on the treatment of autism, the improvement the last 6 years, and the Secretary and Finally, increasing awareness must involve of training and support for individuals with au- the folks at NIH need to be commended greater focus on research related to autism. It tism and those who are for them. for that, and I certainly commend must include research into causes, treatments, As a member of the Congressional Coalition them. But we need to do more because and even potential cures. Autism is a complex for Autism Research & Education, and the we may discover ultimately in the end challenge that requires some of the best sci- uncle of a little boy of autism, I am well ac- this is a preventable condition and that entific and medical attention our nation has to quainted with the issues faced by families of we can allow thousands of children the offer. Federal support for research on autism children with this disorder. I am struck by the opportunity to escape ever being af- has been growing, but additional efforts will be rapid increase in the number of children diag- fected by the disease in the first place, critical in finding the answers to the many nosed with autism in the last decade. While and we obviously need to do more in questions that autism poses. we have certainly made progress in assess- terms of treating the kids that have it. Mr. Speaker, in conclusion I want to recog- ment, diagnosis and treatment, there is room I thank the chairman for yielding me nize the courage and the commitment of the for improvement. We must commit ourselves the time. individuals, families, and professionals for to providing parents, pediatricians, early child- Mr. BILIRAKIS. Mr. Speaker, I am whom autism is a reality of daily life. They are hood educators and all those who have con- very happy to have heard the gentle- truly committed to caring and making tact with very young children the resources man’s remarks. I know we all are. progress, and I am happy to support them in and training to identify children who need help Mr. MATHESON. Mr. Speaker, I am pleased this effort to increase the national awareness early enough to begin effective interventions. to join my colleagues this afternoon speaking of autism. We must take advantage of ongoing data colin favor of H. Res. 605. H. Res. 605 is an im- Mr. KIND. Mr. Speaker, I rise in support of lection in the state and use it to construct bet- portant step to raise national awareness about H. Res. 605, which recognizes the importance ter policies and programs to serve our children autism by designating the month of April as of increasing awareness of autism, advocates and families struggling with autism. National Autism Month. In addition, H. Res. increased research, and pays tribute to those Like all children, those diagnosed with au- 605 recognizes the prevalence of autism, the who care for individuals with autism. tism spectrum disorders are individuals with need to support programs for research and More prevalent than Down syndrome, child- unique talents and abilities. Across the state, treatment of autism, and the importance of im- hood cancer, and childhood diabetes com- special education teachers, psychologists and proving training and support for individuals bined, autism is a developmental disorder that others are working hard to bring these gifts with autism and their caregivers. is affecting a growing number of Americans. and talents to light, and help these children re- Autism is a debilitating developmental dis- Studies show that one of every 250 babies alize their potential. We must recognize and ability affecting the ability of individuals to born today will develop some form or autism. support this honorable work through promoting communicate and interact with others. It is es- Individuals with autism face a wide array of research and resources dedicated to the study timated that 1 of every 166 children in the biomedical and neurological difficulties, all of of autism. I urge my colleagues to vote in United States has an autism spectrum dis- which result in a compromised immune sys- favor of H. Res. 605. order. In my home state of Utah, it is esti- tem. The physical toll on children with autism Mr. HOLT. Mr. Speaker, I rise today in sup- mated that 4 in every 10,000 children have is enormous, and the physical, emotional, and port of H. Res. 605, a resolution recognizing autism spectrum disorders. financial burden that parents of autistic chil- the importance of increasing awareness of au- However, statistics on the prevalence of au- dren face is great. I have enormous respect tism, supporting programs for increased re- tism can be difficult to obtain. Registries are for the parents, friends, and families of autistic search and improved treatment of autism, and relatively new and voluntary, hindering the col- children who sacrifice so much in order to improving training and support for individuals lection of this data. But, efforts to record the care for their children. with autism and those who care for individuals incidence of autism are an important step in Residents in my home state of Wisconsin with autism. raising awareness and unlocking this develop- are fortunate to have access to intensive in- Even though autism is one of the most com- mental disorder. Important efforts are being home therapy with certified providers, and I mon developmental disorders affecting chil- undertaken in Utah, through the Utah Registry applaud universities such as the University of dren, it is still poorly understood throughout

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00047 Fmt 4634 Sfmt 9920 E:\CR\FM\K05MY7.087 H05PT1 H2598 CONGRESSIONAL RECORD — HOUSE May 5, 2004 the medical community, producing great frus- As we know, the statistics surrounding au- Senate concurrent resolution, S. Con. tration among concerned parents. For reasons tism are staggering. Res. 95. that are far from clear, children with autism About 5 out of every 10,000 children are di- The Clerk will designate the motion. often lack the normal means of communicating agnosed with autism, with boys suffering at a The Clerk designated the motion. and interacting with others, making their tran- rate of four times that of girls. The SPEAKER pro tempore. The sitions to adult society extraordinarily difficult. More concerning is that the rates of autism question is on the motion to instruct Achieving a better understanding of autism are increasing at an alarming rate at between offered by the gentleman from Kansas will take time, money, and the dedication of 10–17% annual growth in new cases diag- (Mr. MOORE) on which the yeas and researchers and volunteers across the coun- nosed. nays are ordered. try. That is why I call on my colleagues to sup- Autism does not discriminate between races The vote was taken by electronic deport additional funding for autism research and or nationalities and strikes so many, while our surveillance activities performed by the Cen- vice, and there were—yeas 208, nays knowledge base of this disability is so little. 215, not voting 11, as follows: ters for Disease Control and the National Insti- The facts tell one story, but I would also like tutes of Health. It is also vital that we support to focus on the more human side of autism. [Roll No. 145] the basic science research being performed at Recently, a father from my district visited my YEAS—208 the National Science Foundation and other in- office to tell the story of his son, Adam, who Abercrombie Grijalva Neal (MA) stitutions, which provide the knowledge base is autistic. Ackerman Gutierrez Oberstar for the more advanced health research per- We must combat both the lack of scientific Alexander Harman Obey formed by medical researchers. Allen Hastings (FL) Olver knowledge surrounding autism as well as the Andrews Hill Ortiz One of the key questions that these republic ignorance about this disability. Baca Hinchey Owens searchers are trying to answer is the potential On behalf of the people that live with au- Baird Hinojosa Pallone Baldwin Hoeffel of a connection between environmental factors tism, like Adam, it is my hope that not only will Pascrell Ballance Holden Pastor and the prevalence of developmental dis- this resolution be enacted, but that the Con- Bass Holt orders like autism. That is why Representative Payne gress will follow up on it with new funding to Becerra Honda Pelosi SAXTON and I have formed the Children’s En- Bell Hooley (OR) Peterson (MN) learn more about, treat, and eventually combat Bereuter Hoyer vironmental Health Caucus, which will serve to Pomeroy autism. Berkley Inslee Price (NC) educate members and staff here on the Hill Berman Israel Mr. BILIRAKIS. Mr. Speaker, I have Rahall about the latest scientific research into the im- Berry Jackson (IL) no further requests for time, and I Rangel Bishop (GA) Jackson-Lee pact of environmental factors on children’s yield back the balance of my time. Reyes health. I hope my colleagues can join this cau- Bishop (NY) (TX) Mr. BROWN of Ohio. Mr. Speaker, I Blumenauer Jefferson Rodriguez cus and work with us to further this type of re- Boswell John Ross have no further requests for time, and Rothman search. I yield back the balance of my time. Boucher Johnson, E. B. It is also critical that we provide the services Brady (PA) Jones (OH) Roybal-Allard The SPEAKER pro tempore (Mr. Ruppersberger needed to educate and care for those who do Brown (OH) Kanjorski ADERHOLT). The question is on the mo- Brown, Corrine Kaptur Rush have autism. That is why I would like to call Ryan (OH) tion offered by the gentleman from Capps Kennedy (RI) on the Congress to establish mandatory full Capuano Kildee Sabo Florida (Mr. BILIRAKIS) that the House ´ funding for the Individuals with Disabilities Cardin Kind Sanchez, Linda suspend the rules and agree to the reso- Cardoza Kleczka T. Education Act. It is time for the federal govern- lution, H. Res. 605, as amended. Carson (IN) Kolbe Sanchez, Loretta ment to step up and fulfill its obligation on Sanders The question was taken. Carson (OK) Kucinich special education funding for the sake of chil- Case Lampson Sandlin The SPEAKER pro tempore. In the dren with special needs and for the sake of Castle Langevin Schakowsky opinion of the Chair, two-thirds of Chandler Lantos Schiff our constituents who often face high property those present have voted in the affirm- Clay Larsen (WA) Scott (GA) taxes. Clyburn Larson (CT) Scott (VA) I would also like to commend the work of all ative. Conyers Leach Serrano of the nonprofit groups that do so much to Mr. BILIRAKIS. Mr. Speaker, on Cooper Lee Shays provide for children with autism and their fami- that I demand the yeas and nays. Costello Levin Sherman The yeas and nays were ordered. Cramer Lewis (GA) Skelton lies. Groups like the New Jersey Center for Crowley Lipinski Slaughter Outreach and Services for the Autism Com- The SPEAKER pro tempore. Pursu- Cummings Lofgren Smith (WA) munity (NJCOSAC) provide information, servant to clause 8 of rule XX and the Davis (AL) Lowey Snyder Davis (CA) Lucas (KY) ices, advocacy, and education. Others, like the Chair’s prior announcement, further Spratt proceedings on this motion will be Davis (FL) Lynch Stark National Alliance for Autism Research Davis (IL) Majette Stenholm (NAAR), support and fund research into postponed. Davis (TN) Maloney Strickland f DeFazio Markey Stupak science-based approaches for determining the DeGette Marshall causes, effective treatments, and potential Tanner ANNOUNCEMENT BY THE SPEAKER Delahunt Matheson Tauscher DeLauro Matsui cures for autism. NAAR, headquartered in PRO TEMPORE Taylor (MS) Deutsch McCarthy (MO) Princeton, New Jersey, was founded by two of Thompson (CA) Dicks McCarthy (NY) The SPEAKER pro tempore. Pursu- Thompson (MS) my constituents, Karen and Eric London, Dingell McCollum ant to clause 8 of rule XX, proceedings Tierney whose son Zachary was diagnosed with au- Doggett McDermott Towns tism when he was only twenty-two months old. will resume on the motion to instruct Dooley (CA) McGovern on S. Con. Res. 95 and on the motion to Doyle McIntyre Turner (TX) Mr. Speaker, I urge all of my colleagues to Udall (CO) suspend the rules previously postponed. Edwards McNulty support this resolution and to remember those Emanuel Meehan Udall (NM) children with autism when it comes time to de- Votes will be taken in the following Engel Meeks (NY) Upton bate appropriations. Funding scientific and bio- order: Eshoo Menendez Van Hollen Motion to instruct on S. Con. Res. 95, Etheridge Michaud Vela´ zquez medical research is not just about giving jobs Visclosky by the yeas and nays; Evans Millender- to scientists—it’s about giving hope to people Farr McDonald Waters like Karen and Eric London and their son H. Res. 605, by the yeas and nays. Fattah Miller (NC) Watson Zachary. The first electronic vote will be con- Ford Miller, George Watt Mr. CROWLEY. Mr. Speaker, I rise in strong ducted as a 15-minute vote. The re- Frank (MA) Mollohan Waxman Frost Moore Weiner support of House Resolution 605 which recog- maining electronic vote will be con- Gephardt Moran (VA) Wexler nizes the importance of increasing awareness ducted as a 5-minute vote. Gonzalez Murtha Woolsey of autism as well as calling for greater invest- f Gordon Nadler Wu ments in Research and Development to com- Green (TX) Napolitano Wynn MOTION TO INSTRUCT CONFEREES bat this disability as well as improving training ON S. CON. RES. 95, CONCURRENT NAYS—215 and support for individuals with autism and RESOLUTION ON THE BUDGET Aderholt Barton (TX) Boehlert their caregivers. Akin Beauprez Boehner I echo the comments of my colleagues on FOR FISCAL YEAR 2005 Bachus Biggert Bonilla both sides of the aisle on this important The SPEAKER pro tempore. The Baker Bilirakis Bonner Ballenger Bishop (UT) Boozman issue—that our government must not only fight pending business is the question on the Barrett (SC) Blackburn Bradley (NH) autism but also the stigma of autism. motion to instruct conferees on the Bartlett (MD) Blunt Brady (TX)

VerDate May 04 2004 03:11 May 06, 2004 Jkt 029060 PO 00000 Frm 00048 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.032 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2599 Brown (SC) Hayes Petri the vote. Had I been present, I would have Hayes McDermott Ryan (OH) Brown-Waite, Hayworth Pickering voted ‘‘yea.’’ Hayworth McGovern Ryun (KS) Ginny Hefley Pitts Hefley McHugh Sabo Burgess Hensarling Platts Ms. SOLIS. Mr. Speaker, during rollcall vote Hensarling McInnis Sa´ nchez, Linda Burns Herger Pombo No. 145 on the motion to instruct conferees on Herger McIntyre T. Burr Hobson Porter S. Con. Res. 95 I was unavoidably detained. Hill McKeon Sanchez, Loretta Burton (IN) Hoekstra Portman Had I been present, I would have voted ‘‘yea.’’ Hinchey McNulty Sanders Buyer Hostettler Pryce (OH) Hinojosa Meehan Sandlin Calvert Houghton Putnam Stated against: Hobson Meeks (NY) Saxton Camp Hulshof Quinn Mr. OSE. Mr. Speaker, on rollcall No. 145, Hoeffel Menendez Schakowsky Cannon Hunter Radanovich Cantor Hyde Ramstad I was unavoidably detained questioning a wit- Hoekstra Mica Schiff Capito Isakson Regula ness in a subcommittee hearing. Had I been Holden Michaud Schrock Carter Issa Rehberg present, I would have voted ‘‘nay.’’ Holt Millender- Scott (GA) Chabot Istook Renzi Honda McDonald Scott (VA) Chocola Jenkins Reynolds f Hooley (OR) Miller (FL) Sensenbrenner Coble Johnson (CT) Rogers (AL) Hostettler Miller (MI) Serrano Cole Johnson (IL) Rogers (KY) Houghton Miller (NC) Sessions Collins Johnson, Sam Rogers (MI) RECOGNIZING THE IMPORTANCE Hoyer Miller, Gary Shadegg Cox Jones (NC) Rohrabacher OF INCREASING AWARENESS OF Hulshof Miller, George Shaw Crane Keller Ros-Lehtinen AUTISM Hunter Mollohan Shays Crenshaw Kelly Royce Hyde Moore Sherman Cubin Kennedy (MN) Ryan (WI) The SPEAKER pro tempore. The Inslee Moran (KS) Sherwood Culberson King (IA) Ryun (KS) pending business is the question of sus- Isakson Moran (VA) Shimkus Cunningham King (NY) Saxton pending the rules and agreeing to the Israel Murphy Shuster Davis, Jo Ann Kingston Schrock Issa Murtha Simmons Davis, Tom Kirk Sensenbrenner resolution, H. Res. 605, as amended. Istook Musgrave Simpson Deal (GA) Kline Sessions The Clerk read the title of the resolu- Jackson (IL) Myrick Skelton DeLay Knollenberg Shadegg tion. Jackson-Lee Nadler Slaughter Diaz-Balart, L. LaHood Shaw (TX) Napolitano Diaz-Balart, M. Latham Sherwood The SPEAKER pro tempore. The Smith (MI) Jefferson Neal (MA) Doolittle LaTourette Shimkus question is on the motion offered by Smith (NJ) Jenkins Nethercutt Dreier Lewis (CA) Shuster the gentleman from Florida (Mr. BILI- Smith (TX) John Neugebauer Smith (WA) Duncan Lewis (KY) Simmons RAKIS) that the House suspend the rules Dunn Linder Simpson Johnson (CT) Ney Snyder Ehlers LoBiondo Smith (MI) and agree to the resolution, H. Res. 605, Johnson (IL) Northup Souder English Lucas (OK) Smith (NJ) as amended, on which the yeas and Johnson, E. B. Norwood Spratt Everett Manzullo Smith (TX) nays are ordered. Johnson, Sam Nunes Stark Jones (NC) Nussle Feeney McCotter Souder This will be a 5-minute vote. Stearns Ferguson McCrery Stearns Jones (OH) Oberstar Stenholm Flake McHugh Sullivan The vote was taken by electronic de- Kanjorski Obey Strickland Foley McInnis Sweeney vice, and there were—yeas 421, nays 0, Kaptur Olver Stupak Forbes McKeon Tancredo not voting 12, as follows: Keller Ortiz Sullivan Fossella Mica Taylor (NC) Kelly Osborne [Roll No. 146] Sweeney Franks (AZ) Miller (FL) Terry Kennedy (MN) Ose Tancredo Frelinghuysen Miller (MI) Thomas YEAS—421 Kennedy (RI) Otter Tanner Gallegly Miller, Gary Thornberry Kildee Owens Abercrombie Camp Doolittle Tauscher Garrett (NJ) Moran (KS) Tiahrt Kind Oxley Ackerman Cannon Doyle Taylor (MS) Gerlach Murphy Tiberi King (IA) Pallone Aderholt Cantor Dreier Taylor (NC) Gibbons Musgrave Toomey King (NY) Pascrell Gilchrest Myrick Turner (OH) Akin Capito Duncan Terry Alexander Capps Dunn Kingston Pastor Thomas Gillmor Nethercutt Vitter Kirk Paul Gingrey Neugebauer Walden (OR) Allen Capuano Edwards Thompson (CA) Kleczka Payne Goode Ney Walsh Andrews Cardin Ehlers Thompson (MS) Kline Pearce Goodlatte Northup Wamp Baca Cardoza Emanuel Thornberry Knollenberg Pelosi Goss Norwood Weldon (FL) Bachus Carson (IN) Engel Tiahrt Kolbe Pence Granger Nunes Weldon (PA) Baird Carson (OK) English Tiberi Kucinich Peterson (MN) Graves Nussle Weller Baker Carter Eshoo Tierney Baldwin Case Etheridge LaHood Peterson (PA) Green (WI) Osborne Whitfield Toomey Ballance Castle Evans Lampson Petri Gutknecht Otter Wicker Towns Ballenger Chabot Everett Langevin Pickering Hall Oxley Wilson (NM) Turner (OH) Barrett (SC) Chandler Farr Lantos Pitts Harris Paul Wilson (SC) Turner (TX) Bartlett (MD) Chocola Fattah Larsen (WA) Platts Hart Pearce Wolf Udall (CO) Hastert Pence Barton (TX) Clay Feeney Larson (CT) Pombo Young (AK) Udall (NM) Hastings (WA) Peterson (PA) Young (FL) Bass Clyburn Ferguson Latham Pomeroy Upton Beauprez Coble Flake LaTourette Porter Van Hollen NOT VOTING—11 Becerra Cole Foley Leach Portman Vela´ zquez Bono Filner Ose Bell Collins Forbes Lee Price (NC) Berkley Conyers Ford Visclosky Boyd Greenwood Solis Levin Pryce (OH) Berman Cooper Fossella Vitter DeMint Kilpatrick Tauzin Lewis (CA) Putnam Berry Costello Frank (MA) Emerson Meek (FL) Lewis (GA) Quinn Walden (OR) Biggert Cox Franks (AZ) Lewis (KY) Radanovich Walsh Bilirakis Cramer Frelinghuysen ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE Linder Rahall Wamp Bishop (GA) Crane Frost The SPEAKER pro tempore (Mr. Lipinski Ramstad Waters Bishop (NY) Crenshaw Gallegly Watson ISAKSON) (during the vote). Members Bishop (UT) Crowley Garrett (NJ) LoBiondo Rangel Lofgren Regula Watt are advised 2 minutes remain in this Blackburn Cubin Gephardt Waxman Blumenauer Culberson Gerlach Lowey Rehberg vote. Weiner Blunt Cummings Gibbons Lucas (KY) Renzi Weldon (FL) b 1646 Boehlert Cunningham Gilchrest Lucas (OK) Reyes Boehner Davis (AL) Gillmor Lynch Reynolds Weldon (PA) Ms. HARRIS and Messrs. LAHOOD, Bonilla Davis (CA) Gingrey Majette Rodriguez Weller CAMP, HOEKSTRA, and OSBORNE Bonner Davis (FL) Gonzalez Maloney Rogers (AL) Wexler Boozman Davis (IL) Goode Manzullo Rogers (KY) Whitfield changed their vote from ‘‘yea’’ to Boswell Davis (TN) Goodlatte Markey Rogers (MI) Wicker ‘‘nay.’’ Boucher Davis, Jo Ann Gordon Marshall Rohrabacher Wilson (NM) Mr. LIPINSKI changed his vote from Bradley (NH) Davis, Tom Goss Matheson Ros-Lehtinen Wilson (SC) ‘‘nay’’ to ‘‘yea.’’ Brady (PA) Deal (GA) Granger Matsui Ross Wolf Brady (TX) DeFazio Graves Woolsey So the motion to instruct was re- McCarthy (MO) Rothman Brown (OH) DeGette Green (TX) McCarthy (NY) Roybal-Allard Wu jected. Brown (SC) Delahunt Green (WI) McCollum Royce Wynn The result of the vote was announced Brown, Corrine DeLauro Grijalva McCotter Ruppersberger Young (AK) Brown-Waite, DeLay Gutierrez McCrery Rush Young (FL) as above recorded. Ginny Deutsch Gutknecht A motion to reconsider was laid on Burgess Diaz-Balart, L. Hall NOT VOTING—12 the table. Burns Diaz-Balart, M. Harman Stated for: Burr Dicks Harris Bereuter Emerson Meek (FL) Burton (IN) Dingell Hart Bono Filner Ryan (WI) Mr. FILNER. Mr. Speaker, on rollcall No. Buyer Doggett Hastings (FL) Boyd Greenwood Solis 145, I was unavoidably detained, and I missed Calvert Dooley (CA) Hastings (WA) DeMint Kilpatrick Tauzin

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00049 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.027 H05PT1 H2600 CONGRESSIONAL RECORD — HOUSE May 5, 2004 b 1654 the business of requiring companies to go GENERAL LEAVE So (two-thirds having voted in favor public. At the very least, however, the Govern- Mr. GILLMOR. Mr. Speaker, I ask thereof) the rules were suspended and ment should not be forcing companies to go unanimous consent that all Members may have 5 legislative days within the resolution, as amended, was agreed public when market conditions are unfavor- which to revise and extend their re- to. able. marks and insert extraneous material The result of the vote was announced Unfortunately, that is exactly what is now happening, unless we approve the bill before on this legislation. as above recorded. The SPEAKER pro tempore. Is there A motion to reconsider was laid on us. The ORBIT Act requires INTELSAT to complete its IPO by June 30—just two short objection to the request of the gen- the table. tleman from Ohio? Stated for: months away. And while we all hope that our economy is on the upswing by then, forcing There was no objection. Mr. FILNER. Mr. Speaker, on rollcall No. Mr. GILLMOR. Mr. Speaker, I yield INTELSAT to conduct an IPO next month is 146, I was unavoidably detained, and I missed myself such time as I may consume. the vote. Had I been present, I would have bad policy and will cost INTELSAT’s owners, I want to recognize my subcommittee voted ‘‘yea.’’ including many U.S. investors, hundreds of vice chairman, the gentleman from Ms. SOLIS. Mr. Speaker, during rollcall vote millions of dollars. New York (Mr. FOSSELLA), for the fine No. 146 on H. Res. 605, recognizing the im- The bill before us today, S. 2315, amends work that he has done on this bill. portance of increasing awareness about au- the Communications Satellite Act to give The New York Watershed Protection tism, I was unavoidably detained. Had I been INTELSAT an additional year to conduct its Program reauthorization is bipartisan present, I would have voted ‘‘yea.’’ IPO. Although I would prefer that this bill be legislation with 28 cosponsors, includ- addressed through regular order, time is short. f ing both the gentleman from New York A one-year extension is what has passed in (Mr. TOWNS) and the gentleman from PERSONAL EXPLANATION the other body, and, in the interest of time, we New York (Mr. ENGEL) who are mem- Ms. KILPATRICK. Mr. Speaker, personal should pass this bill and allow INTELSAT an- bers of our full committee. In fact, the reasons prevent me from being present for other year to conduct its IPO. bill has 19 Democrats as cosponsors and legislative business scheduled after 3 p.m. The satellite marketplace has changed sig- 12 Republicans. This bill is a perfect ex- today, Wednesday, May 5, 2004. Had I been nificantly from when the ORBIT Act became ample of fair-minded people from all present, I would have voted ‘‘yea’’ on the mo- law, and the repeated Congressional action to parts of the political spectrum coming tion to instruct conferees on S. Con. Res. 95 postpone the Act’s IPO requirements raises together to support legislation that is (rollcall No. 145); and ‘‘yea’’ on the motion to serious questions about whether additional good for the environment. suspend the rules and pass H. Res. 605, a changes need to be made to the Act to ensure The New York City Watershed covers resolution recognizing the importance of in- that it addresses current market conditions. an area of over 1,900 square miles in the creasing awareness of autism (rollcall No. Accordingly, I hope that the Committee on En- Catskill Mountains and the Hudson 146). ergy and Commerce will hold a hearing in the River Valley. The watershed is divided near future on the Act’s relevance and effect into two reservoir systems, the Cats- f on today’s satellite marketplace. kill/Delaware watershed and the EXTENDING THE DEADLINE FOR The Senate bill was ordered to be Croton watershed. Together, the two THE INTELSAT INITIAL PUBLIC read a third time, was read the third reservoir systems deliver approxi- OFFERING time, and passed, and a motion to re- mately 1.4 billion gallons of water Mr. UPTON. Mr. Speaker, I ask unan- consider was laid on the table. every day to nearly 9 million people in imous consent that the Committee on f the New York City area. In December 1993, EPA concluded Energy and Commerce be discharged GENERAL LEAVE that New York City was able to avoid from further consideration of the Sen- filtration of its drinking water and as- ate bill (S. 2315) to amend the Commu- Mr. UPTON. Mr. Speaker, I ask unan- signed New York over 150 conditions nications Satellite Act of 1962 to ex- imous consent that all Members may relating to watershed protection, moni- tend the deadline for the INTELSAT have 5 legislative days within which to revise and extend their remarks on S. toring, and studies. Unfortunately, initial public offering, and ask for its New York City met several key road- immediate consideration in the House. 2315, the Senate bill just passed. The SPEAKER pro tempore. Is there blocks to implementation of these re- The Clerk read the title of the Senate objection to the request of the gen- quirements, including not being able to bill. tleman from Michigan? obtain a land acquisition permit or ap- The SPEAKER pro tempore (Mr. There was no objection. proval of revised watershed regulations ISAKSON). Is there objection to the re- f from the State of New York. quest of the gentleman from Michigan? Congress addressed this problem in There was no objection. NEW YORK CITY WATERSHED PRO- Section 128 of the Safe Drinking Water The Clerk read the Senate bill, as fol- TECTION PROGRAM REAUTHOR- Act Amendments of 1996, when the New lows: IZATION York City Watershed Protection Pro- S. 2315 Mr. GILLMOR. Mr. Speaker, I move gram was first enacted. The program Be it enacted by the Senate and House of Rep- to suspend the rules and pass the bill authorized $15 million per year for fis- resentatives of the United States of America in (H.R. 2771) to amend the Safe Drinking cal years 1997 to 2003 for EPA to pro- Congress assembled, Water Act to reauthorize the New York vide matching grants to the State of SECTION 1. EXTENSION OF IPO DEADLINE. City Watershed Protection Program. New York for approved demonstration Section 621(5)(A)(i) of the Communications The Clerk read as follows: grants projects that were part of New Satellite Act of 1962 (47 U.S.C. 763(5)(A)(i)) is H.R. 2771 York’s watershed and source water pro- amended— Be it enacted by the Senate and House of Rep- tection program. (1) by striking ‘‘December 31, 2003,’’ and in- In practice, this has been a successful serting ‘‘June 30, 2005,’’; and resentatives of the United States of America in Congress assembled, program and has saved the economic (2) by striking ‘‘June 30, 2004;’’ and insert- vitality and the environmental quality ing ‘‘December 31, 2005;’’. SECTION 1. NEW YORK CITY WATERSHED PRO- TECTION PROGRAM. of upstate New York communities in Mr. DINGELL. Mr. Speaker, I support S. Section 1443(d)(4) of the Safe Drinking the watershed region, while also saving 2315, a bill that would extend the deadline for Water Act (42 U.S.C. 300j–2(d)(4)) is amended American taxpayers billions of dollars the INTELSAT initial public offering (IPO). by striking ‘‘1997 through 2003’’ and inserting that would otherwise be necessary to During debate on the ORBIT Act several ‘‘2003 through 2010’’. build water filtration systems. Wit- years ago, I voiced concerns regarding the The SPEAKER pro tempore. Pursu- nesses at our subcommittee hearing on specific licensing criteria that INTELSAT and ant to the rule, the gentleman from this bill all spoke highly of this pro- Inmarsat were required to meet to gain access Ohio (Mr. GILLMOR) and the gentle- gram, and they need to see it fully ex- to the U.S. telecommunications market. One woman from Illinois (Ms. SCHAKOWSKY) tended. provision required each company to conduct each will control 20 minutes. Of note, EPA Administrator Leavitt an initial public offering by a date certain. I The Chair recognizes the gentleman has also testified that one way to re- would prefer that the Government not be in from Ohio (Mr. GILLMOR). duce the financial needs of drinking

VerDate May 04 2004 03:14 May 06, 2004 Jkt 029060 PO 00000 Frm 00050 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.091 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2601 water delivery systems is to encourage HOUSE OF REPRESENTATIVES, The amendment would have also al- more conservation efforts, and I be- COMMITTEE ON ENERGY AND COMMERCE, lowed us to revisit the New York City lieve programs like the New York City Washington, DC, April 12, 2004. Watershed Bill during a comprehensive Hon. MICHAEL R. LEAVITT, review of the entire Safe Drinking watershed are good examples of public Administrator, Environmental Protection Agen- and private partnerships paying envi- cy, Pennsylvania Avenue, NW., Wash- Water Act next year. ronmental and economic dividends. ington, DC Every day we open the newspapers to read about the health concerns of fami- The House faces a simple question: DEAR ADMINISTRATOR LEAVITT: The Sub- committee on Environment and Hazardous lies of Washington, D.C. and members should we as Congress provide legal au- Materials held a hearing and markup on Fri- in Washington, D.C. as they deal with thority for the Federal Government to day, April 2, 2004, on H.R. 2771, a bill to reau- excessive levels of lead in their drink- assist this watershed? I believe we thorize financial assistance to the State of ing water. should. It is a simple bill that extends New York for demonstration projects imple- Each of us has heard from our local the authorization of the New York City mented as part of the New York City Water- shed Protection Program. The legislation communities about the urgent need to Watershed until 2010. Let us take a upgrade our Nation’s aging water infra- step toward bipartisan protection of would reauthorize Section 1443(d) of the Safe Drinking Water Act to extend the annual au- structure. There is an unquestionable the environment and New York’s thorization of $15,000,000 to the year 2010. need in all of our States for additional source water in particular. I urge Mem- None of the other thirteen provisions of the resources to ensure compliance with bers to vote favorably on H.R. 2771. Safe Drinking Water Act whose annual au- drinking water standards and make Mr. Speaker, I reserve the balance of thorizations expired in 2003 would be ex- critical infrastructure improvements. tended or reauthorized. Among the provisions of the Safe my time. The Committee majority staff informed Drinking Water Act that have expired Ms. SCHAKOWSKY. Mr. Speaker, I the minority staff that the Environmental is the State Revolving Loan Fund, yield myself 5 minutes. Protection Agency (EPA) was unable to provide a witness at the hearing to testify on which funds critical water infrastruc- Mr. Speaker, today we are consid- the President’s budget requests for the New ture and compliance needs throughout ering H.R. 2771, a bill passed by the York Watershed Program. The EPA witness our country. President Bush’s budget Committee on Energy and Commerce from Region 2 who did appear at the hearing requested only $850 million for this to reauthorize the New York City Wa- was also unable to provide the Administra- critical program, $150 million less than tershed Protection Program for 7 tion’s position on H.R. 2771. the level authorized by the 1996 Safe Therefore, I request a response to the fol- years. lowing questions not later than close of busi- Drinking Water Act amendments. If we ness on Friday, April 30, 2004: authorized and fully funded that provi- b 1700 1. Does the Administration support H.R. sion, each of our States would receive 2771? an additional 1 to $15 million. I am not opposed to demonstration 2. Please explain why President Bush’s Local governments, States, drinking projects for monitoring New York City budget for FY 2005 did not contain any re- water suppliers and the EPA, all agree watershed, but it seems odd that of the quested funding to implement Section there is a tremendous resource gap 1443(d), the New York Watershed Protection more than a dozen core provisions of Program. In addition, please explain why which will continue to grow for drink- the Safe Drinking Water Act that ex- none of President Bush’s previous budgets ing water infrastructure funding need- pired in 2003, the House leadership has for FY 2002, FY 2003, or FY 2004 contained ed to protect the public health. This managed to find time for consideration any funding requests to provide financial as- matter calls for corrective legislation. of the management of one bill which sistance to the State of New York for the Of course, we support efforts to main- singles out a small demonstration demonstration projects authorized by Sec- tain the availability of safe drinking grant program that benefits only one tion 1443(d). water in New York. But we should give 3. Is it correct that the first financial as- all the expired provisions of the Safe State for a 7-year reauthorization. sistance provided by the EPA from appro- During the Committee on Energy and priations earmarks to the State of New York Drinking Water Act the same attention Commerce’s consideration of this bill, for the demonstration projects authorized by we are giving H.R. 2771 so that families throughout the country can have ac- Democratic members questioned the Section 1443(d) was on or about September 30, 1997? Is it also correct that the report cess to safe drinking water. wisdom of reauthorizing a provision from the Governor of New York on the re- Mr. Speaker, we have the time here that President Bush did not include in sults of projects assisted as required by Sec- to name post offices and to commend his 2005 budget. Given that, the sub- tion 1443(d)(2) was due to be submitted to the athletic teams and organizations, and committee of the Committee on En- EPA Administrator on or about September when we do get around to environ- ergy and Commerce with oversight 30, 2002? Thank you for your cooperation with this mental concerns, we only take a teenie over this legislation, requested that weenie bite at the apple. We should the Bush administration provide the matter. If you have any questions regarding this request, please contact me or have your give the same amount of attention to committee with a witness who could staff contact Dick Frandsen, Senior Minor- the funding needs of all our environ- explain the administration’s position ity Counsel, at 202–225–3641. ment programs. The President’s FY on the bill, and explain why the Presi- Sincerely, 2005 budget cut $2.3 billion in funding dent chose not to request funding for JOHN D. DINGELL, for programs that protect public health the program. The administration did Ranking Member. and the environment. The FY 2005 not provide the committee with such a HILDA L. SOLIS, Ranking Member, Sub- budget for the EPA is 7.2 percent below witness or with the requested informa- the FY 2004 enacted level. Further- tion. committee on Envi- ronment and Haz- more, the President does not reinstate The ranking Democrat on the Com- ardous Materials. the Superfund taxes in his FY 2005 mittee on Commerce, the gentleman Furthermore, Mr. Speaker, Demo- budget, a move that would force tax- from Michigan (Mr. DINGELL) and the cratic members expressed concern over payers to foot the bill for hazardous gentlewoman from California (Ms. the fact that H.R. 2771 seeks to reau- cleanup and would deviate from the SOLIS), the ranking Democrat on the thorize the program for an additional 6 long-standing ‘‘polluter pays’’ principle Subcommittee on Environment and years beyond the Senate companion to of the Superfund. Hazardous Materials, sent a letter to this bill. The President does include, however, Administrator Leavitt asking those The gentlewoman from California expected revenues from opening the questions and requesting that he pro- (Ms. SOLIS) offered an amendment to Arctic National Wildlife Refuge, vide an answer by last Friday, April 30, H.R. 2771 during the markup of the bill, ANWR, to oil and gas exploration de- so the House Members could make an a markup that would have reauthorized spite strong opposition in Congress to informed vote on the bill. the bill for one additional year. This 1- this plan. year authorization would have ensured We should also act to make sure peo- Administrator Leavitt still has not authorized funding of the New York ple across the country have clean air to responded to that request. City Watershed Project during the ap- breathe. The Bush administration has Mr. Speaker, that letter is as follows: propriations process. severely loosened the requirements of

VerDate May 04 2004 03:14 May 06, 2004 Jkt 029060 PO 00000 Frm 00051 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.094 H05PT1 H2602 CONGRESSIONAL RECORD — HOUSE May 5, 2004 the Clean Air Act. This administra- the efforts of Governor George Pataki quality drinking water to more than 9 tion’s new source review regulations and his vision to bring together envi- million New Yorkers every day. Nearly allows plants to indefinitely continue ronmental groups, New York City offi- 90 percent of those consumers reside in to put large amounts of dangerous pol- cials, upstate communities and the New York City. To supply millions of lutants in the air. This administration United States Department of Environ- people with safe, clean water takes an has also proposed mercury regulations mental Protection in 1997. extensive water supply. In fact, the that would allow as much as 3 times It allowed for the continued and supply consists of 19 reservoirs in a wa- more mercury to release from power long-term protection of New York tershed that spans almost 2,000 square plants than would be released under City’s drinking water, while safe- miles. It covers 8 counties, 60 towns, current law. guarding the economic viability and and 11 villages in the Catskill Moun- We could spend our time passing leg- environmental quality of Upstate com- tain region and the Hudson River Val- islation like the gentleman from Cali- munities in the watershed region. The ley. fornia’s (Mr. WAXMAN) Clean Smoke agreement also saves, and this is im- The effective protection of this es- Stacks Act, H.R. 2042, to drastically portant, State and Federal taxpayers sential national resource is an enor- curb emissions of sulpher dioxide, ni- $8 billion that would be necessary to mous challenge. Let me point out that trogen oxide, carbon dioxide and mer- build water filtration systems in its ab- environmental groups worked with cury from power plants. sence. With a relatively small amount New York City, State officials, Upstate Mr. Speaker, I reserve the balance of of Federal funding, New York City and communities, and the Federal Govern- my time. State have been able to implement an ment to create the New York City Wa- Mr. GILLMOR. Mr. Speaker, I yield unprecedented water monitoring and tershed Agreement. While this land- myself such time as I may consume. surveillance program for the 1,900 mark agreement laid the groundwork Mr. Speaker, a couple of quick square miles of the region. for protecting the city’s water supply, points. The gentlewoman attacked this This is the Nation’s largest source of it could only work if an effective qual- bill because Bush did not ask for fund- unfiltered drinking water, providing ity water monitoring program was im- ing for it. I would also point out that pristine water to 9 million residents in plemented. the Clinton administration did not ask both New York City and its Upstate So in 1996 Congress responded by au- for any funding for this bill either, but communities. Congress recognized the thorizing annual funding for 7 years. Congress has a responsibility which we need to fund the New York City Water- During this period, Congress has pro- exercised before when we originally au- shed Protection Program in 1996 with vided a total of $31 million to imple- thorized it and which we are doing it the Safe Drinking Water Act amendment a comprehensive surveillance again. ments. Since then, the Watershed program, matched equally by grant re- Regarding the comments about lead Agreement has made unprecedented ad- cipients. Additionally, New York City in the drinking water, the activity that vances towards enhancing water qual- and State have leveraged those Federal is going on now is a GAO study that is ity in both New York and the country. funds by investing $1.6 billion to pro- ongoing at my request to look at that The $15 million in Federal funds au- tect the New York City drinking water serious situation. thorized annually provides the seed supply. By reauthorizing Federal fund- I also want to respond to the com- money for groundbreaking programs ing for the watershed agreement which ment the lady made about the money and studies. These efforts are used as a expired last September, this bill would in the Safe Drinking Water Revolving nationwide model to improve drinking demonstrate the Federal Government’s Fund. I would point out to her that the water for all Americans. continued commitment and help main- Bush administration has asked for Building on this small base of Fed- tain the safety of New York City’s more money for that program than the eral funding, the City and State of New water supply. Clinton administration did. York have shown a strong commitment Finally, Mr. Speaker, let me con- Mr. Speaker, I yield 3 minutes to the towards implementation of the Water- clude by thanking the staff, the gen- gentleman from New York (Mr. shed Agreement. To date, both have tleman from Texas (Mr. BARTON); the FOSSELLA), the vice chairman of the spent $1.6 billion on watershed pro- ranking member, the gentleman from Subcommittee on Environment and grams. Unfortunately, authorization of Michigan (Mr. DINGELL), the gentleman Hazardous Materials. Federal funding of the agreement ex- from Ohio (Mr. GILLMOR), and of course Mr. FOSSELLA. Mr. Speaker, I pired on September 30 of last year, the ranking member, the gentlewoman thank the gentleman for bringing H.R. leaving its future in jeopardy. H.R. 2771 from Illinois (Ms. SCHAKOWSKY) for 2771 to the floor. I thank the gentleman solves this problem. By reauthorizing their hard work on this as well. from Ohio (Mr. GILLMOR) for passing the program through 2010, enhancing this bill to ensure the continued pro- the protection of New York City’s Let me say that this is very impor- tection of our Nation’s largest and water supply will continue, along with tant to New York City. And I know most pure source of drinking water. the development of watershed protec- there has been some concern about the The overwhelming bipartisan nature tion models benefiting, again, all fact that other bills have not been of this effort was seen at the sub- Americans. moved or other areas have not in- committee hearing when New York Today, Congress will act to protect cluded, but let me say that I think a Members of Congress from both par- New York City’s drinking water. Pro- journey of a thousand miles starts with ties, representatives from upstate and tect the watershed agreement’s break- a single step. And starting with New New York City, as well as the State through innovations, protect Upstate York, I think that is a good place to Department of Environmental Com- farmers and communities and pass H.R. start. I cannot think of a better place missioner Crotty all testified in sup- 2771. to start than New York. port of the bill. I would like to thank Ms. SCHAKOWSKY. Mr. Speaker, I Mr. GILLMOR. Mr. Speaker, I yield 3 the gentleman from New York (Mr. yield 4 minutes to the gentleman from minutes to the gentlewoman from New TOWNS) and the gentleman from New New York (Mr. TOWNS). York (Mrs. KELLY). York (Mr. ENGEL) for their help in Mr. TOWNS. Mr. Speaker, I rise in Mrs. KELLY. Mr. Speaker, I rise to spearheading this effort through. strong support of 2771. This bill is very support this legislation. The enact- The unanimous vote passing this bill important to the people of New York. ment of H.R. 2771 has significant impli- out of the full committee is yet an- The entire New York delegation sup- cations for my district, immediately other testament to this bipartisan ini- ports this bill. north of New York City. This includes tiative and backed by every single This legislation would reauthorize portions of Westchester, Rockland, member of the New York delegation. funding for the New York City Water- Dutchess, Putnam and Orange Coun- H.R. 2771 reauthorizes the New York shed Agreement, helping to ensure safe ties. Through all of these counties all City Watershed Protection Program, as and healthy drawing for the residents of New York City’s drinking water I mentioned, made possible through the of New York. flows. The entire Croton system of res- landmark New York City Watershed New York City’s vast water supply ervoirs, the lower third of this system, Agreement. The accord resulted from provides 1.4 billion gallons of high is in my district.

VerDate May 04 2004 03:14 May 06, 2004 Jkt 029060 PO 00000 Frm 00052 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.096 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2603 New York City’s tap water has been tration’s budget request at $850 mil- water, and I would also point out that called the champagne of drinking wa- lion. That is $150 million less than the the Democrats on the committee were ters because of its exceptional purity. authorized level. This fund is critical invited to participate in that request And it is because of the actions that in helping public water systems finance and just plain declined to do so. take place in my district and other Up- infrastructure projects needed to com- I would also point out that we have state counties that this water is so ply with the Federal drinking water started looking at the problem of the pure. regulations and to protect public actions of the Defense Department re- We are happy to partner with the health. garding environmental cleanups and city to protect its water supply in a The EPA itself says we need $102.3 that we have also held hearings on the way that helps preserve the pristine billion in additional funding for water matter of movement of trash both character of the Hudson River Valley. utilities just to maintain compliance interstate and internationally, and And the 1997 Watershed Agreement has with the Safe Drinking Water Act. that it was Republicans on the com- been an essential tool for maintaining That figure does not take into account mittee that developed and caused to be this partnership. the large and the huge costs of replac- passed a leaking underground storage Through assistance provided under ing critical water infrastructure. bill which is now incorporated in H.R. the Watershed Agreement, commu- It seems to me, Mr. Speaker, that 6, which is the energy bill, which is nities in my district have been able to public health issues are not a priority still pending over in the Senate. develop plans which help preserve their for the Republican House leadership. It is the Republicans on the Com- character and protect the water supply Far too many environmental and mittee on Energy and Commerce that for New York City. Without the agree- public health issues continue to be ig- have supported changes to the ment and the critical assistance of the nored. Let me name another issue that brownfield redevelopment program. EPA, the balance we have struck would has continually been brushed aside. So the thrust of the gentleman’s be undermined. And so the passage of The importance of Canadian trash statement that nothing is happening I this bill is vital to the continuing part- into Michigan and the interstate move- would take some degree of exception nership in my district. ment of trash in general to neighboring to. The cost savings brought by this States, like Ohio and Pennsylvania, Mr. STUPAK. Mr. Speaker, will the agreement needs to be considered as has been a problem for more than a gentleman yield? well. The cost of a plant to filter New decade. Although a hearing was held Mr. GILLMOR. I yield to the gen- York City’s water supply system which last July in the subcommittee, there tleman from Michigan. Mr. STUPAK. Mr. Speaker, with all would be necessary if this 1997 agree- has been no effort to pass out any of due respect to the chairman, I agree we ment falls apart, has been estimated at the three bills that have been introduced to address this issue by members have had some hearings. $8 billion. The Watershed Agreement is The perchlorate that I mentioned at of our committee of the Committee on an area of common ground. We have Camp Lejeune has been going on for 20 Energy and Commerce. worked hard to get this agreement years. We have to get that resolved. We going. One of those bills, of which I am a cosponsor, would direct the EPA to en- had testimony from Mr. Ensminger and I thank my colleagues for consid- others last week about his daughter ering this legislation that will allow force an earlier agreement with Canada to stop the importation of municipal who died of leukemia from the con- this mutually beneficial process to taminant in the drinking water at continue. solid waste. I would be interested to know if the Republican leadership and Camp Lejeune, and no one has taken b 1715 the committee leadership are going to responsibility or accepted responsi- Ms. SCHAKOWSKY. Mr. Speaker, I consider any of these bills this year. bility for doing anything about it. Mr. GILLMOR. Is the gentleman ask- yield 4 minutes to the gentleman from This is just one of a long list of im- ing me a question or making a speech? Michigan (Mr. STUPAK). portant environmental issues that the Mr. STUPAK. Mr. Speaker, I thank Mr. STUPAK. The point I want to majority has failed to address. Other make, and see, with the trash issue, the gentlewoman for yielding time to issues include lead contamination in me on this bill. some 13 years we have had a number of Washington, D.C.’s drinking water and hearings in committee. We had one last This bill, H.R. 2771, is a bill to reau- the need for Federal drinking water thorize the New York City watershed July, which I am thankful for. standards for perchlorate to ensure Mr. GILLMOR. If the gentleman is protection program. that the Department of Defense cleans making a speech, he is doing it on my We passed this bill out of the Sub- up widespread contamination at its fa- time. committee on Environment and Haz- cilities, like Camp Lejeune, North Mr. STUPAK. Mr. Speaker, can we ardous Materials last month. This leg- Carolina. just report them out like we did this islation addresses a grant for one We should give the same amount of bill? This is the only bill we have re- State, New York. It was the first mark- attention to the funding needs of all ported out. Would my colleagues please up the subcommittee took up in the en- our environmental and public health report out the Canadian trash bills? tire 108th Congress. programs. Instead, the President’s Mr. GILLMOR. Reclaiming my time, I do not mean to belittle the signifi- budget cuts these programs by $2.3 bil- we are taking a look at that, and as my cance of this bill. I am pleased to help lion, slashing EPA’s budget by 7.2 per- colleague knows, we attempted to do out my New York colleagues, but what cent below the fiscal year 2004 enacted that last year, and we had a problem about the consideration of the 13 other level. that sometimes occurs around here important provisions of the Safe Water Again, as the majority, the Repub- called shortage of votes; but I am hope- Drinking Act whose authorizations lican leadership, here refuses to ad- ful that we can have an interstate and have expired in 2003? The New York dress these serious issues, it is Amer- international waste bill. demonstration project’s annual author- ica’s environment and public health The only way we are going to do it is ization of $15 million represents rough- that are continually put at risk. if we have broad bipartisan support, ly 1 percent of the over $1.2 billion in Mr. GILLMOR. Mr. Speaker, I yield which, as my colleague knows, he and total authorizations the Safe Drinking myself such time as I may consume. I have both served on this committee a Water Act provides. I thank the gentleman for his com- long time, is sometimes difficult to at- By giving priority to only one provi- ments. There are a couple of things I tain. sion for special treatment, we are fail- would like to point out. Mr. STUPAK. We look forward to ing to address important core provi- It is the Republicans on the Com- working with my colleague in a bipar- sions of the act, such as the State re- mittee on Energy and Commerce that tisan manner to move those Canadian volving loan fund that helps all States caused the broad investigation into trash bills. and assures safe and healthy drinking lead in the drinking water. It was Re- Mr. GILLMOR. I thank the gen- water for all citizens. The revolving publicans on the Committee on Energy tleman. loan fund also expired in 2003 and is se- and Commerce that asked GAO to look Mr. Speaker, I reserve the balance of riously short-changed in the adminis- at the perchlorate problem in the my time.

VerDate May 04 2004 03:14 May 06, 2004 Jkt 029060 PO 00000 Frm 00053 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.098 H05PT1 H2604 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Ms. SCHAKOWSKY. Mr. Speaker, I I am aware that many of my col- In April 2003, in a sweeping legal set- yield 3 minutes to the gentleman from leagues are unhappy that we are only tlement with then-Utah governor and New York (Mr. HINCHEY). reauthorizing a very small provision of current EPA administrator Mike Mr. HINCHEY. Mr. Speaker, the U.S. the Safe Drinking Water Act. I agree Leavitt, the administration renounced watershed protection program is a very with their unhappiness, and I hope that the government’s authority to conduct significant piece of environmental leg- the committee and subcommittee and wilderness inventories on public lands islation. It is part of the Federal Clean the full House can reauthorize the rest or to protect more areas for their wil- Water Act, itself being one of the most of the Safe Drinking Water Act; but I derness values. The sudden settlement significant pieces of environmental leg- would say to my colleagues, please do involved no public comment or open islation ever addressed by this Con- not hold New York hostage. deliberations, and threatens to open gress. The issue here before us is the All 29 Members of the House rep- millions of acres of wilderness public reauthorization of that New York City resenting New York, both Democrats lands to drilling, mining, road building watershed protection program, and I and Republicans, strongly support this and other development. urge the Members of this House to sup- bill. I am certainly happy to take care The Bush administration has refused port that reauthorization. of New York, but my State benefits to regulate mercury through the same The Catskill Mountains provide the from the State revolving loan fund as tough approach used for other haz- protection for the New York City water well. So I want to say that the safe ardous air pollutants. The Clean Air supply system. That protection is a drinking water programs are all impor- Act requires the plants meet maximum natural system. The reservoir system tant and should be reauthorized, and I achievable control technology stand- itself is a natural system. It is gravity- hope they will be. ards for hazardous air pollutants. The fed. There are no pumps in it at any This bill is very important to New Bush administration’s proposal allows point along the way. York. Millions of people rely on drink- more mercury to be admitted, and The system itself is unfiltered, one of ing water from this watershed, and en- gives industry decades longer to com- the few major water supply systems suring that they have safe and clean ply. anywhere in the country that remains water is very important to me and my Furthermore, in January 2004, it was unfiltered. It is important that it re- constituents. This is obviously not a revealed that at least a dozen para- main so. It is important for some of the perfect bill, but it is an important graphs of the Bush administration’s reasons that have been mentioned, water quality monitoring program. It mercury proposal were lifted, some- costs certainly; $8 billion is an extraor- is a model program for the rest of the times verbatim, from memos sent by a dinary amount of money. In addition Nation, and I would hope this could be law firm that represents the utility in- to that, it would require another half a replicated with the rest of the Nation. dustry. billion dollars a year just to operate So, again, I thank my colleagues for Eric Schaeffer, the EPA’s head of the filtration system; but if the filtra- coming together. We want to have safe civil enforcement, handed in his res- tion system were to be built, that and clean drinking water in New York. ignation after President Bush an- would undermine all of the protections When our Republican colleagues come nounced the ‘‘Clear Skies’’ initiative. that are inherent in this legislation to New York in August and September His letter of resignation said he was that provide for natural, safe, pure pro- for the convention, we want their ‘‘tired of fighting a White House that tection of this water supply system. water to be pure, and I think Demo- seems determined to weaken the rules So I want to express my appreciation crats and Republicans can all agree on we are trying to enforce.’’ to everyone who has been involved that. So, again, I would urge my col- In February, 2004, 63 scientists, in- with the creation of this bill and bring- leagues to support this legislation. cluding 20 Nobel laureates and 19 re- ing it to the floor today and the gen- cipients of the National Medal of b 1730 tleman from New York (Mr. FOSSELLA) Science, issued a statement accusing particularly and others on the Com- Ms. SCHAKOWSKY. Mr. Speaker, I the Bush administration of ‘‘delib- mittee on Energy and Commerce. yield myself such time as I may con- erately and systematically’’ distorting I would also, along with my other sume. scientific fact and misleading the pub- colleagues, urge that the other por- Mr. Speaker, I would like to say to lic in order to further its own partisan tions of the Federal Clean Water Act be the gentleman on the issue of lead in political objectives. addressed as well and they be addressed the drinking water, in fact, it was the In a damning report, the scientists expeditiously. The water supplies of Committee on Government Reform detailed numerous examples of the ad- this country are incredibly important that held hearings on this. Also, this ministration’s abuse of science, cen- to the health and safety of all Ameri- legislation we were considering today soring government studies, gagging cans. We value our water supply sys- was, in fact, the first markup of the agency scientists, refusing to confer tem in New York. Other communities 108th Congress in the Subcommittee on with or ignoring independent experts, value theirs as well. Environment and Hazardous Materials. appointing unqualified or industry-con- I would urge that the remaining 13 There are so many issues on the envi- nected individuals to Federal advisory provisions of the Federal Clean Water ronmental agenda. Since we have so committees, disbanding those govern- Act be addressed and be addressed as few opportunities to discuss those on ment panels offering unwanted infor- quickly as possible and be brought to the floor of the House since they are so mation, and misinterpreting informa- the floor so we can deal with them in rare to come before us, I wanted to just tion to fit predetermined policy objec- the proper fashion. mention, bring to the attention of this tives. Ms. SCHAKOWSKY. Mr. Speaker, I body, that there is a very important Having said all that, I would like to yield 2 minutes to the gentleman from third edition of the National Resource say that I think H.R. 2771, limited New York (Mr. ENGEL). Defense Council book called ‘‘Rewrit- though it is, is an important step in Mr. ENGEL. Mr. Speaker, I thank ing the Rules: The Bush Administra- providing clean, safe drinking water in the gentlewoman for yielding time to tion’s Assault on the Environment’’ New York City. me, and I rise in strong support of this which documents more than 150 as- Mr. Speaker, I yield back the balance legislation. saults on our environmental safeguards of my time. I am proud to serve on the Com- between January 2003 and March 2004. Mr. GILLMOR. Mr. Speaker, I yield mittee on Energy and Commerce; and Among the most troubling Bush ad- myself such time as I may consume. when we marked up this bill last week, ministration environmental actions in- Mr. Speaker, I would just like to fol- I was very happy to speak in favor of clude: In November 2003, the Bush ad- low up on a comment by the gentleman it. ministration proposed to legalize the from New York (Mr. ENGEL) who talked I represent a district covering Rock- release of inadequately treated sewage about the Republican convention being land, Westchester and Bronx counties, into waterways as long as it is diluted in New York this year, and that this all of which are part of the 9 million with treated sewage, a process the would help us have good water while people that this water is so important agency has euphemistically labeled we are there. I want to assure the gen- for. ‘‘blending.’’ tleman from New York and other New

VerDate May 04 2004 03:14 May 06, 2004 Jkt 029060 PO 00000 Frm 00054 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.100 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2605 Yorkers that I am looking forward to shall not be considered to refer to any qualified requires PHAs to provide details about attending the Republican National small public housing agency, to the extent such updates or changes to the 5-year plan. Convention and sampling what the gen- reference applies to the requirement to submit a Specifically, the annual plan, among public housing agency plan under this sub- tlewoman from New York (Mrs. KELLY) section. other things, has typically asked for called the ‘‘champagne of water’’ while ‘‘(B) DEFINITION.—For purposes of this para- the following information: Housing I am there. graph, the term ‘qualified small public housing needs of the families in the jurisdic- Mrs. LOWEY. Mr. Speaker, I am proud to agency’ means a public housing agency that tion; strategies to meet these needs; support the extension of the New York City meets all of the following requirements: statement of financial resources; and Watershed Protection Program, and I thank ‘‘(i) The sum of (I) the number of public hous- PHA policies governing eligibility, se- my colleague VITO FOSSELLA for his leadership ing dwelling units administered by the agency, lection, and admissions. HUD has made on this issue. and (II) the number of vouchers under section 8(o) of the United States Housing Act of 1937 (42 the effort to streamline this annual Ensuring clean drinking water for our com- U.S.C. 1437f(o)) administered by the agency, is planning for small PHAs and for high- munities has always been a priority of mine. 100 or fewer. performing PHAs. However, incredibly, Providing a safe and health water supply is ‘‘(ii) The agency is not designated pursuant to an example of a streamlined plan was not just a public health issue, it is also a section 6(j)(2) as a troubled public housing still 47 pages with extensive attach- homeland security priority. agency. ments. ‘‘(iii) The agency provides assurances satis- I am pleased that the bill under consider- This legislation would exempt small ation today will reauthorize the funding for the factory to the Secretary that notwithstanding the inapplicability of the requirements under PHAs from being required to submit Watershed Protection Program through 2010. this section relating to resident advisory boards that annual plan to HUD. Under the The program will provide $15 million per year and public hearings and notice, residents of bill as it passed the House Committee to protect and enhance the quality of New public housing administered by the agency will on Financial Services, a small PHA is York’s water supply, and in the long run will have an adequate and comparable opportunity defined to be one which has 100 or fewer save taxpayers the cost of an alternative water for participation and notice regarding establish- combined public housing units and sec- filtration system. This comprehensive initiative ment of the goals, objectives, and policies of the tion 8 vouchers. PHAs, which are ex- public housing agency.’’. demonstrates our commitment to the ongoing empt from the annual planning re- preservation of New York’s safe drinking water The SPEAKER pro tempore. Pursu- quirement, would still have to prepare supply, and I am pleased to see communities, ant to the rule, the gentleman from a 5-year plan. Moreover, a small PHA environmental groups and state officials join Nebraska (Mr. BEREUTER) and the gen- which is designated as a troubled hous- together in support of this cause. tlewoman from California (Ms. WA- ing agency by HUD would still be re- I am happy to support this legislation, which TERS) each will control 20 minutes. quired to submit that annual plan. The Chair recognizes the gentleman will benefit the health of New Yorkers and the This legislation also includes a provi- from Nebraska (Mr. BEREUTER). quality of our environment for years to come. sion that tenants of small PHAs which Mr. GILLMOR. Mr. Speaker, I yield GENERAL LEAVE are exempt from the annual planning back the balance of my time. Mr. BEREUTER. Mr. Speaker, I ask requirement must continue to have an The SPEAKER pro tempore (Mr. unanimous consent that all Members adequate and comparable opportunity ISAKSON). The question is on the mo- may have 5 legislative days within for participation and notice regarding tion offered by the gentleman from which to revise and extend their re- the establishment of goals, objectives Ohio (Mr. GILLMOR) that the House sus- marks on the legislation and to insert and policies of that PHA. pend the rules and pass the bill, H.R. extraneous material on the bill. Mr. Speaker, this legislation is need- 2771. The SPEAKER pro tempore. Is there ed to simply provide some regulatory The question was taken; and (two- objection to the request of the gen- burden relief to small PHAs which do thirds having voted in favor thereof) tleman from Nebraska? the rules were suspended and the bill There was no objection. not have the time, staff or resources to was passed. Mr. BEREUTER. Mr. Speaker, I yield do these annual HUD plans by them- A motion to reconsider was laid on myself such time as I may consume. selves. Many of these small PHAs only the table. Mr. Speaker, this Member rises today have a part-time executive director. Currently, small PHAs are forced to f to express his support for H.R. 27, the Small Public Housing Authority Act. hire consultants since they do not have SMALL PUBLIC HOUSING The bill, which was introduced by this the computer software package to com- AUTHORITY ACT Member on January 27, 2003, will be plete these annual plans, and these Mr. BEREUTER. Mr. Speaker, I move considered under suspension of the consultants are expensive costs for to suspend the rules and pass the bill rules. This legislation, which addresses small PHAs which already face some (H.R. 27) to amend the United States the annual plan requirements for small daunting financial challenges. Housing Act of 1937 to exempt small public housing authorities passed the Mr. Speaker, I think it is important public housing agencies from the re- Committee on Financial Services by a to note that these small PHAs are lo- quirement of preparing an annual pub- unanimous, bipartisan voice vote on cated across the entire Nation. Today lic housing agency plan, as amended. March 17, 2004. It is important to note this Member will focus on the small The Clerk read as follows: that this Member introduced this legis- PHAs in Nebraska because I am most H.R. 27 lation in the 107th Congress as well. familiar with them. For example, in Be it enacted the the Senate and House of First, this Member would like to this Member’s district, there are 23 Representatives of the United States of America thank both the distinguished gen- PHAs which would qualify under the in Congress assembled, tleman from Ohio (Chairman OXLEY) definition used for small PHAs. There SECTION 1. SHORT TITLE. and the gentleman from Massachusetts are approximately 60 PHAs in Ne- This Act may be cited as the ‘‘Small Public (Mr. FRANK), the ranking minority braska statewide which qualify as Housing Authority Act’’. member, for their efforts in bringing small PHAs under this bill, especially SEC. 2. PUBLIC HOUSING AGENCY PLANS FOR this measure to the floor. in the district of the gentleman from CERTAIN SMALL PUBLIC HOUSING Indeed, following some concerns and Nebraska (Mr. OSBORNE), and he will AGENCIES. Section 5A(b) of the United States Housing suggestions from the gentleman from speak on that. Act of 1937 (42 U.S.C. 1437c–1(b)) is amended by Massachusetts (Mr. FRANK), com- To give a not-atypical example from adding at the end the following new paragraph: promise language was agreed upon to this Member’s congressional district, ‘‘(3) EXEMPTION OF CERTAIN SMALL PHAS FROM ensure unanimous support for this leg- the village of Beemer is a community FILING REQUIREMENT.— islation. It should be noted for back- of 773 people, according to the last cen- ‘‘(A) IN GENERAL.—Notwithstanding para- ground that the Public Housing Reform sus. They have a PHA which adminis- graph (1) or any other provision of this Act— Act requires PHAs to submit both a 5- tered just 20 public housing units and ‘‘(i) the requirement under paragraph (1) shall not apply to any qualified small public housing year plan and an annual plan to HUD. no section 8 vouchers. Under the cur- agency; and The 5-year PHA plan addresses the rent law, the Beemer PHA is required ‘‘(ii) any reference in this section or any other Agency’s mission and their plan to to submit the extensive annual plan to provision of law to a ‘public housing agency’ achieve their mission. The annual plan HUD which I have mentioned.

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00055 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.102 H05PT1 H2606 CONGRESSIONAL RECORD — HOUSE May 5, 2004 In conclusion, this bill contains rea- portive comments as we try to meet eting, forecasting and tenant needs, among sonable provisions regarding PHA an- the Nation’s diverse housing needs. other things. The 1998 Act required a 5-year nual plans which enjoy bipartisan sup- Mr. Speaker, I yield such time as he plan as well as annual planning updates. In port. This Member would urge his col- may consume to the gentleman from the best of all worlds, Congress intended for leagues to support H.R. 27, the Small Nebraska (Mr. OSBORNE). this tool to be complimentary of the great Public Housing Authority Act. Mr. OSBORNE. Mr. Speaker, I thank things that PHAs were currently undertaking to Mr. Speaker, I reserve the balance of the gentleman for yielding me this meet the new challenges of housing low-in- my time. time. come families and individuals. What Congress Ms. WATERS. Mr. Speaker, I yield I rise in support of H.R. 27, which was did not intend, however, was a complicated myself such time as I may consume. introduced by the gentleman from Ne- planning system that would require many Mr. Speaker, I rise in support of this braska (Mr. BEREUTER), and thank the PHAs to hire expensive consultants and de- bipartisan legislation offered by the gentleman for his long and effective tract resources from other management gentleman from Nebraska (Mr. BEREU- service to Congress over many years. issues. TER) which would ease the paperwork He has done a great job and has been Advocates of the 5-year and annual plan- requirements for certain small public very helpful to me and other people in ning process argue that this management tool housing authorities and reduce their Nebraska. would require PHAs to engage tenants and need to hire consultants to prepare Mr. Speaker, there are over 50 small actually provide de facto business plans that housing plans, and I would like to con- public housing authorities in my dis- would assist in meeting future challenges be- gratulate both the gentleman from trict that will benefit from this legisla- fore a crisis occurs. Opponents claim that both Ohio (Mr. OXLEY) and ranking member, tion. I think the gentleman from Ne- planning requirements have been a paper ex- the gentleman from Massachusetts braska (Mr. BEREUTER) mentioned ercise taking away employee and funding re- (Mr. FRANK), for the leadership they there are 60 in the State of Nebraska. sources that could be applied to other man- provided, recognizing that it is impor- My district is almost entirely rural. agement needs. We have yet to get a com- tant for us to come together from time Most of these PHAs are very, very plete picture of whether the planning process to time to work to get rid of unneces- small, and so we have the vast major- is a useful exercise. I think that it is something sary regulations and they have done ity in this particular district. that the Committee should continue to review. that with this bill. As the gentleman from Nebraska We are clear, however, that the smaller H.R. 27 would exempt small housing (Mr. BEREUTER) mentioned, this legis- PHAs, of which we define in this legislation as authorities that administer 100 or lation is needed to simply provide some those authorities with no more than 100 units fewer units of assisted housing from regulatory burden relief to small PHAs the requirement to prepare an annual or section 8 vouchers, have had difficulty com- which do not have the time or staff or plying with the annual requirements. This leg- public housing agency plan. The resources to do housing and urban de- threshold would include both public islation would provide much needed regulatory velopment plans by themselves. Many relief for these smaller organizations where housing units and vouchers under sec- of these PHAs have only a part-time tion 8 of the United States Housing Act the development of the annual plans usually executive director, and they hire con- falls on a staff composed of very few individ- of 1937. sultants. Sometimes these PHAs are The affected small housing authori- uals. spending $600 to $1,000 a year just for a ties would remain subject to the Public Mindful that the planning process has been consultant’s fee, and the complexity Housing Reform Act’s requirement to used as an effective tool for tenant groups to submit a 5-year PHA plan to the De- and length of the reports are ridiculous provide input to PHA management, we have partment of Housing and Urban Devel- for the size of the PHA. provided language to preserve the tenant’s If a small PHA in my district is able opment that addresses the Agency’s rights. This, we believe, is a healthy balance to create the report, they often have mission and its plan to achieve its mis- between the needs and resources of the PHA sion. difficulty in filing that report because management teams as well as the needs of In order to qualify as a small housing the Internet dial-up systems are ex- the tenants and their respective organizations. authority under this bill, an agency tremely slow, and often they are dis- On a final note, let me just say that it has would have to provide assurances satis- connected before their reports are been my pleasure to work with the sponsor of factory to the Secretary of HUD that filed. this legislation—the Gentleman from Ne- notwithstanding the inapplicability of So this bill really does what Congress braska—over the almost 10 years I have certain provisions relating to resident oftentimes fails to do, which is to pro- served in Congress and on the Committee on advisory boards and public hearings vide some much-needed regulatory re- Financial Services and its predecessor—The and notice, residents of public housing lief. It simplifies rather than com- Committee on Banking and Financial Service. administered by the Agency will have plicates the process. I would like to Mr. BEREUTER has been an expert on a variety an adequate and comparable oppor- thank the gentleman from Nebraska of issues, not limited to rural housing where tunity for participation and notice re- (Mr. BEREUTER) for introducing this he developed numerous programs such as the garding establishment of the goals, ob- legislation, the gentleman from Ohio single family loan guarantee program as well jectives and policies of the public hous- (Mr. OXLEY) the chairman of the Com- as the multifamily loan guarantee program. In ing agency. mittee on Financial Services, the gen- addition, he has been instrumental on reau- The objective of this legislation sim- tleman from Massachusetts (Mr. thorizing the National Flood Insurance Pro- ply is to reduce the administration FRANK), and the gentlewoman from gram and providing much needed reform to workload of small PHAs. The goal of California (Ms. WATERS) for their ef- address repetitive loss issues. I am hopeful H.R. 27 is to give executive directors of forts in bringing this measure to the that the flood insurance bill will be signed into small PHAs more time to focus on the House floor. I urge its support. law before Mr. BEREUTER retires. needs of their tenants, rather than hav- Mr. NEY. Mr. Speaker, I rise today to ex- On issues such as the legislation today, Mr. ing to spend time and resources com- press my support for H.R. 27, the Small Public BEREUTER has ensured that rural and small- pleting an annual plan for submission Housing Authority Act. This legislation ad- town America would be heard and their per- to HUD. dresses the regulatory burdens placed on spectives recognized. Mr. BEREUTER will retire Mr. Speaker, I believe this legisla- smaller Public Housing Authorities (PHAs) to at the end of this summer and I ask all of my tion will help to limit the burden on comply with annual planning requirements en- colleagues to join me in wishing him well and small PHAs while providing the nec- acted into law under the Quality Housing and thanking him for his service. essary protections to ensure that ten- Work Responsibility Act of 1998. I am con- Finally, I want to thank the Committee ants will have the opportunity for fident that passage of this bill would correct an Chairman, Mr. MIKE OXLEY, as well as the input into the small PHA’s 5-year plan. adverse unintended consequence for smaller Ranking Chairman, Mr. BARNEY FRANK, for I urge all of my colleagues to support PHAs. This legislation passed the House Fi- moving this bill through the Committee. More- this legislation. nancial Services Committee, by a unanimous over, I want to thank the Housing Subcommit- Mr. Speaker, I reserve the balance of bipartisan voice vote on March 17, 2004. tee’s Ranking Member, Ms. MAXINE WATERS, my time. The authors of the 1998 Act envisioned a for all her hard work on this and many issues Mr. BEREUTER. Mr. Speaker, I planning process for PHAs that could be used facing this Subcommittee. thank the gentlewoman for her sup- as a tool for advancing management, budg- Mr. Speaker, I urge passage of H.R. 27.

VerDate May 04 2004 03:14 May 06, 2004 Jkt 029060 PO 00000 Frm 00056 Fmt 4634 Sfmt 9920 E:\CR\FM\K05MY7.104 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2607 Mr. OXLEY. Mr. Speaker, I rise today to ex- b 1745 Whereas Laos remains a one-party communist state that continues to prohibit the press my support for H.R. 27, the Small Public EXPRESSING SENSE OF HOUSE RE- Housing Authority Act. This bill will be consid- organizing of opposition political parties to GARDING NEED FOR FREEDOM the Lao People’s Revolutionary Party; ered under the suspension of the rules. This AND DEMOCRATIC REFORM IN Whereas, in 2002, elections for the Lao Peo- legislation, which addresses the annual plan LAOS ple’s Democratic National Assembly were requirement for small public housing authori- held nearly a year earlier than scheduled and ties (PHAs), passed the House Financial Serv- Mr. BURTON of Indiana. Mr. Speak- excluded all candidates from political parties ices Committee by a unanimous bipartisan er, I move to suspend the rules and other than the Lao People’s Revolutionary voice vote on March 17, 2004. agree to the resolution (H. Res. 402) ex- Party, as well as all overseas Laotians; First, I would like to thank the distinguished pressing the sense of the House of Rep- Whereas Amnesty International and other independent human rights organizations are gentleman from Nebraska (Mr. BEREUTER), the resentatives regarding the urgent need for freedom, democratic reform, and not permitted to enter Laos to monitor or author of this legislation, for his efforts in at- investigate the human rights situation or re- tempting to reduce the regulatory burdens that international monitoring of elections, ports of alleged human rights violations; small PHAs face. I would also like to thank the human rights and religious liberty in Whereas, in 2003, the United States Com- distinguished gentleman from Massachusetts the Lao People’s Democratic Republic. mission on International Religious Freedom (Mr. FRANK), the Chairman of the Sub- The Clerk read as follows: issued a country report on religious persecu- committee for Housing and Community Oppor- H. RES. 402 tion in Laos, recommending that the Presi- dent designate Laos as a ‘‘country of par- tunity, Mr. BOB NEY, and the ranking member, Whereas, in 1975, the Kingdom of Laos, a ticular concern’’; constitutional monarchy and important ally Ms. MAXINE WATERS, for their support of H.R. Whereas the Department of State reported of the United States during the Vietnam 27. in its most recent Country Report on Human War, was overthrown by the Marxist Lao This legislation would exempt small PHAs Rights Practices in Laos that Laos restricts People’s Revolutionary Party with the as- from being required to submit an annual plan its citizens from enjoying the freedoms of sistance of the People’s Army of North Viet- to the Department of Housing and Urban De- speech, assembly, and religion, and from un- nam; dertaking activities to change their govern- velopment (HUD). Under current law, PHAs Whereas the Lao People’s Democratic Re- are required to submit both a 5-year plan and ment; public was established as a one-party regime Whereas, in 2003, the United Nations Com- an annual plan to HUD. This legislation is in 1975 following the communist takeover; mittee on Elimination of Racial Discrimina- needed to provide some regulatory relief to Whereas tens of thousands of Laotian and tion stated that the Lao government had small PHAs who do not have the resources or Hmong people, a prominent highland minor- failed to honor its obligations, and the Com- time to do these HUD annual plans by them- ity group, were killed or died at the hands of mittee expressed its grave concerns at the selves. Currently, small PHAs are having to communist forces while attempting to flee information it had received of serious and re- the Lao communist regime, and many others hire expensive third parties to complete these peated human rights violations in Laos; perished in reeducation and labor camps; Whereas, in October 2003, Amnesty Inter- annual plans. Furthermore, an indirect result Whereas tens of thousands of Laotian and of this bill would give executive directors of national issued a statement detailing its Hmong became refugees, eventually reset- concern about the use of starvation by the these small PHAs more time to focus on the tling in the United States where they now Lao government as a weapon of war against important needs of their tenants. reside as American citizens and lead con- civilians in Laos and the deteriorating situa- The exemption of these smaller PHAs will structive lives as members of their commu- tion facing thousands of family members of not have an adverse impact on the ability of nities; ethnic minority groups, predominantly the tenant organizations to continue to have input Whereas the only political party allowed Hmong; with the manager’s of their developments. by law in Laos is the communist Lao Peo- Whereas, in 2003, Amnesty International’s ple’s Revolutionary Party; Language was incorporated into the legislation International Secretariat, in a statement Whereas, in 1989, Laos held its first elec- further detailing its concerns about Laos, to ensure tenant’s participation. Additionally, I tions since the establishment of the Lao Peo- condemned in the strongest terms the use of want to assure my colleagues that this legisla- ple’s Democratic Republic, but only can- starvation as a weapon of war against civil- tion will still require smaller PHAs to provide didates who were approved by the com- ians and cited it as a clear and serious viola- the forward-type thinking and advance plan- munist Lao People’s Revolutionary Party tion of the Geneva Conventions that Laos ning as required under the 5-year plans. were allowed to seek public office; has ratified; The larger question, however, raised by this Whereas, in 1991, Laos adopted its first Whereas because many Laotians and legislation is whether the planning require- constitution which purports to guarantee Hmong, including those in the overseas com- the people of Laos a wide range of freedoms, munities, are not members of the Lao Peo- ments for smaller and larger PHAs alike can including the freedoms of speech, assembly, be a useful tool. It appears that the jury is still ple’s Revolutionary Party, they do not meet and religion; with its approval as political candidates, but out on that question and the Committee will Whereas the Lao People’s Revolutionary they are nevertheless successful business- review the issue to determine how we can Party Congress meets every five years and men, technocrats, and community and reli- provide as much flexibility to the Public Hous- controls or influences the organs of the state gious leaders with democratic aspirations ing Authorities, decrease unnecessary regu- in Laos, including the armed forces, the se- and concern for the people of Laos; and latory burdens as well as ensure that tenants curity services, and the National Assembly; Whereas the United States has a vital in- have a stake in the communities where they Whereas the Lao People’s Revolutionary terest in the worldwide promotion of demo- Party promulgates the five-year state plans cratic principles and respect for human live. that control the economy and do not need to In conclusion, I want to urge your support rights, and supports democratic reforms in receive the approval of the National Assem- Laos: Now, therefore, be it for H.R. 27. This bipartisan bill contains impor- bly; Resolved, That the House of Representa- tant provisions to reduce the regulatory bur- Whereas, in 1999, peaceful pro-democracy tives strongly supports the following points dens on small PHAs. demonstrations held by Laotian students in and urges the Government of the Lao Peo- Ms. WATERS. Mr. Speaker, I urge an the capital of Vientiane calling for political ple’s Democratic Republic, the United Na- aye vote on the bill, and I yield back and economic reforms were suppressed by tions, the European Union, and the Associa- the balance of my time. force by the Lao government, which arrested tion of South East Asian Nations— Mr. BEREUTER. Mr. Speaker, I urge many of the students; (1) to work to provide unrestricted access an aye vote, and I yield back the bal- Whereas Amnesty International reports to Laos by international election monitors that many Laotian student leaders from the for upcoming presidential and National As- ance of my time. 1999 pro-democracy demonstrations continue sembly elections; The SPEAKER pro tempore (Mr. to be held by the Lao government and lan- (2) to work to provide unrestricted access CHOCOLA). The question is on the mo- guish in the Lao prison system or remain un- to Laos, including special closed military tion offered by the gentleman from Ne- accounted for; zones and closed provinces, by international braska (Mr. BEREUTER) that the House Whereas, in 2001, Olivier Dupuis, a Member human rights organizations, the United Na- suspend the rules and pass the bill, of the European Parliament, was arrested tions, the United States Commission on H.R. 27, as amended. and jailed in Laos along with a group of pro- International Religious Freedom, and hu- The question was taken; and (two- democracy activists after peacefully pro- manitarian aid organizations; testing for the release of the Lao students (3) to work to ensure that opposition polit- thirds having voted in favor thereof) and for democratic and human rights re- ical parties and their candidates are allowed the rules were suspended and the bill, forms in Laos; to run for public office in multi-party elec- as amended, was passed. Whereas international election monitors tions without regard to gender, race, eth- A motion to reconsider was laid on are currently not permitted to enter Laos to nicity, religion, economic standing, or polit- the table. monitor elections; ical affiliation, and that all adult citizens of

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00057 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.046 H05PT1 H2608 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Laos, including overseas Laotian citizens, ward access for international election lies will make every effort to ensure are permitted to vote and run for public of- and human rights monitors, genuine that these fundamental reforms come fice; multiparty democracy, and the halt of sooner rather than later. (4) to allow the citizens of Laos to assem- violence against the Hmong, also the I strongly support passage of this res- ble and peacefully protest against the Gov- ernment of Laos, the Lao People’s Revolu- release of political and religious pris- olution and urge all of my colleagues tionary Party, and individual public offi- oners and the promotion of religious to do so as well. cials, and to freely organize opposition freedom throughout Laos. Mr. Speaker, I am very pleased to groups and independent political parties; These are worthy goals. I urge the yield 4 minutes to the distinguished (5) to heed the call by the United Nations Communist government in Laos to gentlewoman from Minnesota (Ms. Committee on Elimination of Racial Dis- change their attitude toward these peo- MCCOLLUM). crimination for the Lao People’s Revolu- ple. I urge all of my colleagues here in Ms. MCCOLLUM. I thank the gen- tionary Party to halt immediately all acts of this body to support this resolution. tleman from California (Mr. LANTOS) violence against the Hmong population and Mr. Speaker, I reserve the balance of for his kind words. provide them with humanitarian assistance; Mr. Speaker, I rise today in support (6) to work to gain the immediate release my time. of those students and their family members Mr. LANTOS. Mr. Speaker, I yield of this resolution, urging improved arrested and jailed in connection with the myself such time as I may consume. I human rights, democratic reform and 1999 pro-democracy demonstrations, as well rise in strong support of this resolu- religious freedom in the Lao People’s as all other political prisoners, prisoners of tion, and I urge my colleagues to do so Democratic Republic. I would like to conscience, and those jailed for their reli- as well. take this opportunity to thank the gious beliefs or ethnicity; and First, I want to commend my good U.S. Ambassador in Laos, Douglas (7) to work to implement the recommenda- friend from Indiana, my distinguished Hartwick, and his hardworking, dedi- tions of the United States Commission on colleague, for introducing this resolu- cated staff at our embassy in Vientiane International Religious Freedom with respect to promoting religious freedom in tion; and I want to commend the gen- for their commitment toward human Laos. tlewoman from Minnesota (Ms. MCCOL- rights and reform in Laos. Mr. Speaker, most Americans do not The SPEAKER pro tempore (Mr. LUM), the distinguished member of the know very much about the country of CHOCOLA). Pursuant to the rule, the Committee on International Relations, Laos, but many people in my congres- gentleman from Indiana (Mr. BURTON) for her strong leadership on all matters sional district know this country very and the gentleman from California (Mr. related to Laos. We greatly appreciate well. Minnesota is home to over 53,000 LANTOS) each will control 20 minutes. her hard work on this long neglected The Chair recognizes the gentleman region of the world. Hmong and Lao Americans. I represent one of the largest Hmong constitu- from Indiana (Mr. BURTON). Mr. Speaker, the bilateral relation- encies in the United States. My con- GENERAL LEAVE ship between the United States and Mr. BURTON of Indiana. Mr. Speak- Laos has been frozen in time since the stituents and I strongly support im- er, I ask unanimous consent that all end of the Vietnam War. While we have proving human rights and the quality Members may have 5 legislative days maintained a diplomatic mission in of life for the people of Laos. The Lao to revise and extend their remarks and Laos, our bilateral contacts have been Government has been working coopera- include extraneous material on the res- infrequent and low-level. Over the past tively with the United States on inter- olution under consideration. few years, both the United States and national terrorism and helping to pro- The SPEAKER pro tempore. Is there Laos have made significant efforts to vide a full accounting of Americans objection to the request of the gen- improve the quality of our bilateral re- missing in action from the Vietnam tleman from Indiana? lationship. Given the increasingly War. The Lao Government has taken There was no objection. large number of Laotian and Hmong steps to protect religious freedom and Mr. BURTON of Indiana. Mr. Speak- Americans in the United States, a the hundreds of Hmong and Laotians er, I yield myself such time as I may warming in the relationship is long from my district who have traveled to consume. overdue. The President may soon, in Laos have seen some improvement; but As the sponsor of H. Res. 402, this res- fact, propose the granting of normal I want to state clearly, despite these olution which expresses the strong trade relations status to Laos. steps, greater progress is still needed sense of the House in support of elec- As our relations with Laos become on human rights, religious tolerance, tion monitors, human rights and reli- increasingly complex, the United democratic rule of law, and trans- gious liberty in Laos is a very impor- States must not forget the ongoing parency. tant piece of legislation. Since the 1975 deprivation of internationally recog- One way the Lao Government can overthrow of the Lao monarchy, Laos nized human rights in Laos as well as demonstrate their commitment to re- has been a one-party, Communist state the totalitarian nature of the ruling reform is by allowing international hu- in which the Lao People’s Revolu- gime. The promotion of human rights manitarian workers the ability to mon- tionary Party is the only party allowed and religious and political freedom itor the Hmong amnesty and resettle- by law; and the repression there, Mr. must always remain at the core of our ment program in order to ensure that Speaker, is unbelievable. agenda with Laos until the Laotian the Hmong are receiving the humani- Although the 1991 Lao Constitution people can freely choose their own gov- tarian assistance they need and they claimed to guarantee a wide range of ernment, enjoy true political freedom, deserve. My constituents and I are freedoms, peaceful pro-democracy dem- and freedom of worship as they wish. committed to advancing these efforts onstrations in 1999 were forcibly sup- Our resolution calls attention to the in Laos. If Laos is going to truly re- pressed. Many of those demonstrators negative human rights situation in form into a more open and democratic remain in prison. The government of Laos and urges the United States, the society, the United States needs to Laos continues to restrict basic free- European Union, the United Nations, play a greater role in working with the doms and has been credibly accused of and ASEAN nations to work for posi- Lao people and the Lao Government. using starvation against civilians and tive change in Laos. The Laotian Gov- The United States policy of economic of continuing its persecution of the ernment continues to imprison brave isolation has made it very difficult for courageous Hmong ethnic minority. young people who had the courage to the Hmong and Laotian Americans in I sincerely appreciate and support publicly demonstrate for political my district to engage in economic ac- the Hmong people in their fight for change in 1999, and some local Laotian tivity that will improve the quality of freedom and democracy. They and the officials continue to harass Laotians of life for their relatives in Laos. This entire Laotian people deserve our com- the Christian persuasion. The Laotian failed U.S. policy of economic isolation plete support and assistance. We must Government also does not allow free has lasted close to 30 years, and it has address the current human rights situ- and fair elections, and it prohibits any had real human consequences, as ex- ation while pressing for real progress organized political opposition. treme poverty is a fact of life for much in Laos. Mr. Speaker, political and social of the people who live in Laos. The H. Res. 402 urges the Lao Government change will come to Laos, and it is my United Nations development program and international bodies to work to- hope that the United States and our al- ranks Laos 143rd out of 173 countries in

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00058 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.042 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2609 terms of human development. Only half mates that 88,000 service members are still The son of a Vietnam Navy veteran, the population can read, 30 percent of missing from all wars. The effort to find Bryson is a mortuary affairs specialist, or 92- the people will die before they are 40 them is destined to continue, officials say, as Mike in Army lingo. He was on his 31st re- long as the United States sends its men and covery mission to Southeast Asia, has years old, and 26 percent of the popu- women into battle zones. worked directly with MIA families and rel- lation lives on less than a dollar a day. ‘‘I can’t think of a more noble mission,’’ ishes the satisfaction of delivering a me- One out of every 10 children will die be- said Marine Capt. William P. ‘‘Bay’’ Dobbins, mento to a wife or parent. fore they reach the age of 5. I consider 29, leader of a team searching for the re- ‘‘There are cases where a family member this fact a human rights tragedy. mains of a Navy pilot downed in southern said, ‘He always carried a 1945 buffalo nick- The people of Laos also endure the Laos. Dobbins, who served in Iraq last year, el,’ and then you go to the site and dig and deadly remnants of U.S. bombing from said he had been waiting for this job with the pull it out of the dirt,’’ he said. ‘‘There are wedding rings, the crucifixes, wallets with the Vietnam War. The United States Joint POW/MIA Accounting Command. ‘‘I love the idea of bringing these guys home,’’ pictures.’’ Working one World War II case, he flew more than 580,000 bombing runs he said. said, he found letters ready to be mailed over Laos. More than 2 million tons of So it was that on a chilly morning in Feb- home. ‘‘You bring them home to a wife or ordnance were dropped on the country ruary, a dozen soldiers, airmen, sailors, Ma- mother, and the gratitude is immense. of Laos, double the amount dropped on rines and Damann, who works at the Army’s That’s pretty amazing you can do stuff like Europe during World War II. Thousands Central Identification Laboratory in Hono- that.’’ of Laotian children and adults con- lulu, piled into an aging Russian-made Mi–17 UNEXPLODED ORDNANCE helicopter at the team’s base camp in south- Elderly locals are another source of infor- tinue to die or become maimed as a re- ern Laos. Twenty minutes later, they landed sult of this unexploded American ord- mation. Khampoy Khun, a grandfatherly on a hill in Saravan province that was tra- man with an impish grin, was trying to clear nance. This, too, is a human rights versed by the Ho Chi Minh Trail, a network a rice field about a decade ago when he came tragedy and was documented by The of paths used by the North Vietnamese to upon metal aircraft parts poking up from the Washington Post in an article this ferry supplies along the border with Laos soil. He eventually told his story to Amer- weekend. I insert this article for the into South Vietnam. The team hiked down a ican investigators and led them to a site long, steep slope and, putting spade to soil, RECORD. where a Navy pilot had plowed into a hill in dug in a space roughly as long and wide as an April 1970. [From the Washington Post Foreign Service, Olympic swimming pool. May 1, 2004] ‘‘I would be very glad if the Americans find About 90 Laotian villagers, who live a what they are looking for and can return the IN LAOS, SIFTING THE EARTH FOR AMERICAN day’s trek away and were hired for a small remains to the families,’’ said Khampoy, 70, DEAD daily wage, were already there. They formed cheering on the Americans and Laotians (By Ellen Nakashima) a bucket brigade down the slope, men and digging, hauling and screening soil. ‘‘I think SARAVAN, LAOS.— On the first day of the women with high cheekbones and broad the families back home are hoping the re- dig, Franklin Damann spied what appeared faces, wearing old jeans, Nike caps and wool mains will be found.’’ to be a bone fragment resting on the soil sur- head scarves. He had one request, though: that the face. But he could not be sure. He put it in Pairs of villagers rocked trays slung from United States do more to remove unexploded a Ziploc bag labeled ‘‘Possible Osseous Re- bamboo poles, massaging red dirt through ordnance left from the war. ‘‘I am very quarter-inch wire mesh. As a boombox blared mains.’’ poor,’’ Khampoy said. ‘‘And I cannot work He hoped that the fragment, and several a Motown mix, the American team members my rice fields with the unexploded bombs. more found over the next few days, would scanned for pieces of zipper, boot, oxygen It’s all over the place.’’ yield DNA to help identify U.S. Air Force hose—what the investigators call life sup- In February, the team looking for the Col. Norman Dale Eaton or his navigator, Lt. port material. Navy pilot’s remains unearthed a 500-pound The hill was not an easy one. At a 35-de- Col. Paul E. Getchell. Their B–57 exploded unexploded bomb. gree angle, it had a view at 3,700 feet of a val- and crashed on a remote hill in southern Between 1964 and 1973, the U.S. air cam- ley below filling with deceptively fast-mov- Laos in 1969, at the height of the Vietnam paign dropped more than 2 million tons of ing clouds. Army Sgt. Robert Bryson, in explosive ordnance on the hills and valleys of War. charge of team safety, warned the crew: Damann, a forensic anthropologist, and Laos, the world’s most heavily bombed na- ‘‘This site is dangerous. When the pilots say about a dozen U.S. service members shoveled tion per capita, according to United Nations go, there’s no lollygagging or we’ll be here and sifted hundreds of buckets of dirt from Development Program statistics. Some of overnight.’’ that metal-pocked hill in February. In sev- the craters were as large as houses. Up to 30 During a mission three years ago, seven percent of the ordnance, it is estimated, eral equally isolated and treacherous sites in military personnel and nine Vietnamese died Cambodia and Vietnam, other teams were failed to detonate and continues to kill when their Mi–17 helicopter slammed into a about 200 people, many of whom are children, also scanning for every shard of steel, can- fog-shrouded hill. vas, plastic, bone or, best of all, tooth that each year, according to the program. The site was surveyed last summer by Joan In fiscal 2003 the United States spent $1.2 might help identify men who died in the Baker, an anthropologist, who also works at million on clearing the ordnance in Laos, Vietnam War, more than 1,800 of whom are the Honolulu forensics lab. She found no about one-fourth of the total international still missing. crash crater, leading her to conclude that donor aid to the effort, U.S. officials said. Since 1992, 10 times a year, the military the plane had exploded before it plunged. Her After 30 days, Damann, Bryson and their has sent teams to the old battlegrounds of investigative team found hundreds of pieces team flew back to Honolulu. Another team Southeast Asia to search for Vietnam com- of fan blades, wires and bolts strewn over took their place in March to continue the batants’ remains. Two to six teams go on more than 350 square yards. Then she saw a dig. All the evidence found is bagged and each trip. So far, they have accounted for 724 small metal object nestled in the roots of a sent to the lab. There, a different set of an- Americans, according to the Pentagon. tree. It was a dog tag, bearing Eaton’s name. thropologists examines the remains and the But time is running out. Witnesses are ‘‘It was pretty exciting,’’ Baker recalled. ‘‘I life support material. dying. Investigators are now talking to peo- couldn’t believe it for a minute. I was like, The lab, which is part of the U.S. Joint ple who can remember their fathers telling ‘No!’’’ Team members planted a yellow stake POW/MIA Accounting Command, identifies them about a crash site. The most accessible wherever they found even a jot of debris, on average two Americans a week. The best areas already have been excavated, and bone turning the hill into a dandelion field of way to make an identification is to match a disintegrates more readily in the acidic soil stakes. tooth, especially one that has had a filling or of Southeast Asia. Damann held up a slice of rusted metal to a drilling, to dental records, Thomas Hol- It is an arduous yet optimistic endeavor, the gray light filtering through the trees. land, the lab’s scientific director, explained costing $100 million a year spread over five The words ‘‘cylinder hydraulic actuating’’ in a telephone interview from Honolulu. ‘‘No agencies. Though the military has long pro- were still visible. The metal plate was en- two fillings are alike,’’ he said. ‘‘That’s real- claimed that no man or woman shall be left graved with the manufacturer’s name, Glenn ly how most identifications are made.’’ behind on the battlefield—and made recov- L. Martin Ltd., Baltimore, Md., which in the Even as the difficulty of the missions has ery efforts for several years after World War 1960s retooled the British-made B–57s from increased, the technology has improved, Hol- II and the Korean War—it took the emo- straight-and-level planes to dive bombers. land said. These days, up to 70 percent of tional upheaval of the Vietnam War to spur ‘‘We’ll be pulling stuff all day.’’ said cases are identified by matching the government to undertake a continuous Damann, a lanky Louisianan who analyzes mitochondrial DNA, which is passed down search effort. Scientists and recovery teams skeletal remains to figure out a person’s through the maternal line, from remains to have been finding and identifying remains of size, sex, race and other characteristics. a relative from the same maternal line, he those killed in World War II, the Korean War As it turned out, the team would not be said. About five grams of dense bone, the and the Cold War in Africa, Europe, Asia and pulling stuff all day. After lunch, the clouds type found in the arm or leg, is needed to the Pacific. rolled in, obscuring the valley below. Bryson gather enough DNA for an identification. They have identified remains of about 500 gave the word to load up the buckets and In the mid-1990s, the military began taking service members from World War II, Korea gather the tools. ‘‘It’s time to get off the a DNA sample from all service members in and the Cold War. The U.S. military esti- hill,’’ he said. case it is needed for identification.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00059 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.109 H05PT1 H2610 CONGRESSIONAL RECORD — HOUSE May 5, 2004 ‘OFF TARGET’ Laos. The resolution is very simple, ex- and citizens in our own community, to On the night of Jan. 13, 1969, Eaton and pressing the sense of the House regard- take these allegations seriously, to in- Getchell took off from Phan Rang Air Base ing the urgent need for freedom and crease the pressure on the Lao Govern- in South Vietnam. They flew west toward democratic reform and international ment to allow inspections, to allow the Laos, to drop bombs and napalm on a target monitoring of elections, human rights investigation to go forward within that along the Ho Chi Minh Trail in an effort to and religious liberty in the Lao Peo- disrupt the enemy’s supply line. country so we can document and de- Eaton’s last recorded words before the ple’s Democratic Republic. finitively determine what the situation plane crashed were ‘‘Off target,’’ according The United States owes a debt of is inside that border. I encourage my to a wartime Air Force report. A C–130 pilot gratitude to the Hmong veterans and colleagues to support the resolution. I who was flying nearby, directing Eaton’s their families who served as loyal and thank my colleagues for bringing it strike, said that his cockpit was lit up by the dedicated allies during the so-called se- forward this evening. flash from the bomb Eaton dropped, and lit cret war in southeast Asia and the Mr. LANTOS. Mr. Speaker, I am de- up again five seconds later by the B–57’s Vietnam conflict, a war that many lighted to yield 4 minutes to the distin- crash, according to the report. No para- Hmong members participated in on the guished gentleman from California chutes were seen. A two-second emergency side of U.S. soldiers in the jungles of beeper signal was heard by another aircraft (Mr. GEORGE MILLER). in the area, but it was unclear if that was southeast Asia. Between 20,000 and Mr. GEORGE MILLER of California. from Eaton or Getchell. 30,000 Hmong lost their lives during I thank the gentleman from California Eaton, then 43, had always said that when this time and more than 100,000 Hmong for yielding me this time. he went, he wanted to ‘‘go down in a ball of were forced to either flee or live in ref- Mr. Speaker, I have just returned fire,’’ his wife, Jeanne Eaton, now 75, re- ugee camps after the U.S. pullout in from several days of meetings in Vien- called in a telephone interview from Alexan- southeast Asia. Through their sac- tiane and Luang Prabang not only with dria. He loved to fly, loved ‘‘that wonderful, rifices, many American lives were celestial feeling,’’ she said, though he had his our own very able Ambassador Doug concerns about the war. saved, and our Nation must remain Hartwick but his excellent embassy Eaton’s oldest son, Paul Eaton, 53, is now committed to recognizing their service. staff and also with Lao Government of- a major general in the Army, stationed in Today, approximately 170,000 Hmong ficials and many private citizens, Baghdad, the commander in charge of train- currently reside in the United States, Americans and others, who are living ing the nascent postwar Iraqi army. including 35,000 in my home State of and working in Laos. There is a more Gethell was 32, slender, dark-haired and a Wisconsin. Many of these Hmong complex and changing pictures than carpenter with a philosophy degree. ‘‘He was Americans have family members still always learning and reading,’’ and looked the wording of this resolution portrays. in Laos facing constant allegations of Our discussions covered a wide range forward to teaching, recalled his widow, Te- harassment, imprisonment, even kid- resa Getchell, 67. of topics, including the government’s As the years passed, the two women, who napping and killing of ethnic Hmong deficiencies in addressing human rights have never remarried, gradually came to by Lao authorities. These have been and political transparency issues as de- terms with their husbands’ deaths. For brought to my attention, and these al- tailed in H. Res. 402, and I was very Getchell, it has been so long since her hus- legations have been raised in many dif- clear in my conversations with the Lao band died, she said, that finding any remains ferent forums. Due to modern tech- leaders about the urgency of meeting now will not mean much. ‘‘It will just verify nology, many of these reports are com- international standards particularly what I feel is already the case, that he’s ing out of Laos almost simultaneously gone,’’ she said from her winter home in Bra- with respect to the Hmong and other denton, Fla. when they are occurring through the indigenous people who have been the For Eaton, the search holds out hope for advent of cell phones documenting the subject of ill treatment and repression. some peace of heart. abuse and some of the atrocities being ‘‘The very fact that they found my hus- committed there. 1800 band’s dog tags, at least there’s a substance I believe it is time for this Congress b there, there’s a reality,’’ she said. ‘‘Hope- and the administration to support I share the concerns of the authors of fully, they will find some tangible evidence international observance teams to go this resolution that Laos, like many of him.’’ into Laos to observe firsthand the con- other countries in Southeast Asia and In March, the team that took over from elsewhere, should make substantial im- Damann found more possible remains at the ditions that are occurring there. We site. The evidence will be sent to the lab. A need the support from our administra- provements in the openness of their po- new team returns in June to continue the tion and from the Congress, I think, to litical and judicial processes and com- hunt. put pressure on the government there ply with internationally recognized The United States must work with to accept these international teams of human, religious, and labor rights and the Lao Government to remove this observers. The Lao Government has promote economic reforms that will unexploded ordnance. To address this one of the most egregious human raise the standard of living of its citi- issue, I have submitted a request to the rights records in the world. The State zens through improved investment and Committee on Appropriations to ex- Department’s own country report on trade. pand the cleanup of unexploded ord- human rights practices in Laos makes This resolution addresses those nance in Laos. I ask my colleagues clear the lack of respect for human issues, and I do not think that many today who care so deeply about human rights demonstrated by the Lao Gov- would argue with the historical record. rights in Laos to join me in this effort. ernment. My concern, however, is that the reso- Today I support this resolution because Finally, Mr. Speaker, there are many lution fails to take into account the my constituents who have family mem- Hmong families still in Wisconsin and many significant developments of the bers in Laos want reform now. throughout the country who are very U.S.-Lao relationship as well as the in- Mr. LANTOS. Mr. Speaker, I am very concerned in regards to the conditions ternal changes that are not only note- pleased to yield 3 minutes to the dis- of their own families or relatives or worthy, but address some of the issues tinguished gentleman from Wisconsin friends who are still in Laos. They raised in this resolution. We are in- (Mr. KIND). come to Washington from time to time. volved in major efforts, and we are get- Mr. KIND. Mr. Speaker, I thank my These are a proud people, many of ting major cooperation in antidrug ef- friend from California for yielding me whom have now achieved their U.S. forts in Laos through the cooperation this time and for his leadership on this citizenship. They are productive mem- of the Lao government aimed at reduc- issue, and I thank my colleague from bers of our society. Their children are ing opium and amphetamine trade that Indiana for offering this resolution of in our schools, growing up to get an reaches from Southeast Asia to the which I am a proud cosponsor. American education and be productive streets of the American cities. Mr. Speaker, I hope the body tomor- citizens in the country. But their ties Our people report a strong coopera- row when it comes up for consideration back to Laos still remain very strong, tion in this effort with the Lao au- will adopt this resolution. This is a and it runs very deep. I think this thorities. In the areas of POW/MIA, very serious matter in regard to some body, this United States Congress, hundreds of Americans from the Viet- of the practices and the abuses I feel owes it to them, our friends and allies nam era are still missing in Laos, and that are currently taking place in and in many instances our neighbors we are sending forensic teams to Laos

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00060 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.063 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2611 several times a year to locate and repa- may have an opportunity to vote on have hidden for several decades. The govern- triate the remains of those service peo- later would go a long way in terms of ment has pledged to assist in the relocation ple. Again, according to our govern- improving the economy and some of and settlement of these groups, and I would ment, we are receiving strong coopera- the human rights issues within the Na- note that Secretary of State Powell has told tion from the Lao government, but this tion of Laos. the Lao government that the United States resolution has been silent on that im- Mr. Speaker, I have just returned from sev- would like to offer its assistance in these ef- portant effort. eral days of meetings in Vientiane and Luang forts. While there is reason aplenty for hesi- Certainly the issue of human rights Prabang with not only our own very able am- tation given the fate of others throughout the and the Hmong population, as well as bassador, Douglas Hartwick and his excellent world who have acquiesced in ‘‘resettlement’’ other minorities, is a particularly sen- embassy staff, but also with Lao government campaigns, the reports I received in Laos, sitive subject in the Lao-American officials and other private citizens—American across the board, testified to the positive re- community in the United States, and I and others—who are living and working in sponse of the refugees; moreover, there were imagine that is the issue pushing this Laos. There is a more complex and changing few if any reports of abusive or unhelpful treat- resolution to the forefront at this time. picture than the wording of this resolution por- ment by the government. But there is no men- This resolution fails, however, to note trays. tion of that cooperation in this resolution. that for a variety of reasons, some hav- Our discussions covered a wide range of It is also important that the House under- ing to do with international pressure topics, including that government’s defi- stand that there have been some very serious and some having to do with internal ciencies in addressing human rights and polit- incidents of violence and threats of violence economics and politics, the Lao gov- ical transparency issues that are detailed in H. with the Lao-American community in recent ernment has been urging Hmong and Res. 402, and I was very clear in my con- weeks, including assaults on those peacefully other dissidents to come out of the versations with Lao leaders about the urgency demonstrating in support of expanded trade mountains where they have been hid- of meeting international standards particularly with Laos, arson, and threats of assassination den for many decades. The government with respect to Hmong and other indigenous on certain radio stations. Members of the has pledged to assist in the relocation groups that have been the subject of ill-treat- House should be helping to defuse this situa- and settlement of these groups, and I ment and repression. I share the concerns of tion, not adding to the ill-feelings. So it is very would note that Secretary of State the authors of this resolution that Laos, like important that what we say and do regarding Powell has told the Lao government many other countries in Southeast Asia and Laos and the Lao community not be misunder- the United States would like to offer elsewhere, should make substantial improve- stood or mis-stated. assistance in these efforts. ments in the openness of their political and ju- The concerns that this resolution raises While there is reason aplenty for hes- dicial processes, comply with internationally about conditions in Laos are justified, but we itation given the fate of others recognized human, religious and labor rights, should be clear that virtually identical state- throughout the world who have acqui- and promote the economic reforms that will ments could be made about many other coun- esced in ‘‘resettlement’’ campaigns, the raise the standard of living of their citizens tries in the region or elsewhere in the world, reports I received while in Laos, across through improved investment and trade. including those with which we have very ex- the board, testified to the positive re- This resolution addresses those issues, and tensive economic and political relations. We sponse of the refugees. Moreover, there I do not think many would argue with the his- want improvements and we should continue were few, if any, reports of abusive or torical record. My concern, however, is that our efforts both bilaterally and through the unhelpful treatment by the govern- this resolution fails to take into account very U.N. and N.G.O.s to build a free and open so- ment. There is no mention of that in significant developments in the U.S.-Lao rela- ciety in Laos. One important step would be for this resolution. tionship, as well as internal changes that are more Members of Congress to visit the coun- The concerns that this resolution not only noteworthy, but that address some of try and deliver the same message I did; yet raise about conditions in Laos are jus- the issues raised in the resolution. only one other Member of the House has tified, and we should be clear that vir- This is a delicate state in U.S.-Lao relations. been to Laos in the last 5 years, I am told. tually identical situations exist in far We are deeply involved with that government One important way for us to improve our re- too many countries. I would also like in a range of initiatives that are critical to our lationship and encourage the kinds of reforms to make it very clear that the Lao gov- own national security. I met with several U.S. we would like to see in Laos is to grant Nor- ernment fully cooperate with the opin- personnel, for example, involved in major anti- mal Trade Relations to that country. Laos is ion of the international community drug efforts in cooperation with the Lao gov- one of only three countries in the world with that has long been concerned with the ernment aimed at reducing the opium and am- which we do not have NTR, and the only treatment of minority groups within phetamine trade that reaches from Southeast country with which we have full diplomatic re- their country and make sure they, in Asia to the streets of American cities. Our lations lacking that status. Laos is far too fact, are open to allowing our ambas- people reported strong cooperation from the small and poor to have an impact on the U.S. sador to travel to the areas in question Lao authorities and progress in turning Lao economy or jobs, but granting NTR will have where people are engaged in coming citizens against the drug trade, but this resolu- a significant impact on the economy in that im- out, the Hmongs and others, to make tion ignores this cooperation. poverished nation, allowing it to participate in sure that the resettlement issues are We are also deeply involved in POW–MIA the kind of positive economic improvements occurring, that these people are being efforts in Laos, as was documented last week that have begun to transform Vietnam and treated properly, and that there is no in the New York Times. Hundreds of Ameri- Cambodia. Now that this resolution has been action taken against them. cans from the Vietnam War era are still miss- brought to the floor, I would hope that NTR for So I would hope that the Lao governing in Laos, and we are sending forensic re- Laos would similarly be scheduled for House ment would be more open to the recovery teams to Laos several times a year to consideration. quest of Secretary Powell, of our am- locate and repatriate the remains of service- I have many Lao-Americans in my own dis- bassador, of the international commu- men. Again according to our government, we trict, and I have had a close working relation- nity. But again, I would state for those are receiving strong cooperation of the Lao ship with them for a number of years. Most who have been there, for the inter- government, but this resolution is silent on this are refugees themselves from the repression national community, the international important initiative. of the post-war Lao government. They have press, the suggestion is that this reset- Certainly the issue of human rights and the built families, businesses, social and political tlement is going very fairly well, given Hmong population, as well as other minorities, organizations, and productive and cooperative the tensions that have existed for over is a particularly sensitive subject in the Lao- lives in the United States. And together with so many years. American community in the United States, and many other Lao-Americans, they have begun So I appreciate this resolution com- I imagine that is the issue pushing this resolu- to re-engage in a relationship with the country ing forward. I would hope that it would tion to the forefront at this time. The resolution of their birth. have given a little bit more recognition fails, however, to note that for a variety of rea- Members of the USA-Lao NTR Coalition, in- to those areas that we are getting co- sons—some having to do with international cluding the Lao-American Exchange Institute, operation, and that we will continue to pressure and some having to do with internal the Laotian-American National Coalition and work on opening this relationship with economics and politics—the Lao government the Laotian-American Chamber of Commerce the Lao people, and clearly the support has been urging Hmong and other dissidents visited Laos last year and produced the impor- of the normal trade relations that we to come out of the mountains where some tant ‘‘Citizen Initiative Report.’’ I would like to

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00061 Fmt 4634 Sfmt 9920 E:\CR\FM\K05MY7.111 H05PT1 H2612 CONGRESSIONAL RECORD — HOUSE May 5, 2004 recognize in particular Mr. Sary Tatpaporn, the can say in closing, Mr. Speaker, is that has blocked those benefits. Green argues Coalition’s coordinator and vice president of human rights are just that, rights, and that the country’s leaders—who deny any the Laotian-American Chamber of Commerce, the Laotian government, which is a knowledge of Ly—have not come clean. Even now, Green said, the last of the rebellious along with Dr. Richard Chansombat of the communist government, ought to take Hmong in the jungles of northern Laos are Lao-American Exchange, who authored the re- a hard look at history and realize that being systemically starved, raped, tortured port on the trip detailing their meetings with communism cannot last as long as it and killed by Laotian forces and by divisions government and private leaders. Many of represses its people. And they ought to of Vietnamese soldiers operating in Laos. these Lao-American leaders have reversed realize that long-term freedom and de- ‘‘It’s brutal, it’s repressive and it’s bar- past opposition and now are urging the pas- mocracy is the only way to go, and if baric,’’ Green said. ‘‘It’s hard for Americans sage of NTR so that the economy of their they do that, then I think the people in to fully comprehend the barbarity and the Laos have a bright future. But if they contempt for human rights that exists in former country can grow and more of their that area.’’ Yer Ly of St. Paul, Minn., one of former countrymen can share in the prosperity continue under this despotic com- five daughters Houa Ly and Neng Xiong that investment, trade and modernization can munist regime, then I think they are in raised in the Fox Valley, said she misses her bring. for more problems down the road. father terribly. Her children miss him. ‘‘He Our relationship with Laos is long and com- In any event, I appreciate the gen- is just the best,’’ she said. ‘‘There is no word plex, and it is changing for the better. We tleman from California (Mr. LANTOS) to say he is this or that. He is just the best.’’ should be encouraging the positive steps Laos and his support and those who speak WORLDS APART is taking on a wide range of issues, and we before me. Neng Xiong Ly speaks little English. She should be expanding our cooperation with that Mr. GREEN of Wisconsin. Mr. Speaker, be- works nights on a production line for a local country as we have with other nations whose fore this House today I would like to restate manufacturer. Her take-home pay is about domestic policies we continue to question. We $1,000 a month. All but $100 of that is swal- my strong support for H. Res. 402, of which I lowed by the mortgage on their home. ‘‘Se is also need to recognize that some of the sus- am a cosponsor. As a leading critic of the La- really struggling a lot,’’ said her daughter, picion and distrust within the Lao leadership is otian government in the U.S. House of Rep- Ge, who acted as a translator. Before they due to continuing threats against that govern- resentatives, I am very pleased that this legis- were drawn into the war, Neng Xiong and ment from opposition elements within the lation has made it to the House floor today, Houa Ly lived the traditional tribal life of United States, as was acknowledged during and believe it speaks directly to the question— the Hmong people, hunting and gathering the recently held conference of Lao-American which has been hotly debated in recent and practicing small-scale agriculture in the leaders at the State Department. years—of whether or not we ought to grant high plains and mountain jungles of northern Laos. At the same time, the Lao government must Laos Normal Trade Relations status. As most ‘‘Before the war, it was regular days,’’ fully cooperate with the opinion of the inter- members of this House know, I am staunchly Neng Xiong Ly said. ‘‘Farm, cook, feed the national community that has long been con- opposed to our nation providing the brutal re- animals.’’ That life was lost when divisions cerned with the treatment of minority groups gime in Laos with any improved relationship of North Vietnamese soldiers poured across within the country, and wish to ensure that until it gets its act together on a whole host of the northern Lao border in the 1960s. The current resettlement effort comport with inter- issues. Granting Laos NTR before we see Hmong, led by the charismatic and prescient nationally recognized standards. As I have some real movement toward change is ill-ad- Gen. Vang Pao, abandoned the high plains of noted, our own Secretary of State has offered Xiang Khoang province and established posi- vised, inappropriate, and just plain wrong. tions in the surrounding mountains where assistance in the resettlement efforts, and our In support of H. Res. 402, I am asking today there were armed and funded by the CIA. As Ambassador has requested permission for his for a number of important items to be read a young man, Houa Ly served as a medic staff to visit the areas where resettlement is into the RECORD. First, an article that recently with Pao’s freedom fighters. Trained as com- occurring to assure that these citizens are appeared in the Appleton Post-Crescent on mandos, they were fabled for their bravery being treated fairly. International relief agen- the case of Houa Ly, one of my Hmong-Amer- and resourcefulness, for their intimate cies also are interested in monitoring the ef- ican constituents who went missing at the knowledge of the mountain jungles. When forts. I would hope that the Lao government Thailand-Laos border in 1999. Second, a pair American pilots were shot down, the Hmong would fully cooperate with these initiatives and would find and rescue them, engage in fire- of letters 21 other Members of Congress and fights to protect them. Hunted by com- allow for independent observation of resettle- I sent to the administration last year, detailing munist forces, these warrior farmers could ment activities. That government should un- many of the problems we see with the Laotian no longer think in terms of ‘‘home.’’ ‘‘Be- derstand that a well-conducted, independently government, and reiterating our opposition to cause of the war between America and Viet- verified resettlement effort will dramatically af- NTR for Laos. I appreciate in advance your nam, the Vietnamese were always killing ev- fect the perception of Laos in the world com- consideration of the issues presented in these eryone,’’ Neng Xiong Ly said. ‘‘There was no munity. documents, and look forward to continuing to safety for the children and the women. They Consideration of this resolution today should work to advance the freedom of the Laotian would have to move all the time.’’ Houa Ly saved the lives of three American pilots dur- mark the beginning of a renewed interest and people. engagement in Laos by the House, not a one- ing the war and helped dozens of others. His FAMILY’S PLIGHT AT HEART OF TRADE wife and two of his daughters said he did not time venting of opinion that ignores positive RELATIONS CLASH carry weapons. ‘‘He was not a fighter, he was developments that are taking place and jeop- (By Ed Culhane) a nurse,’’ said his youngest daughter, Yer ardizes a longer agenda we should continue Neng Xiong Ly is consumed by sadness. Ly, who lives in St. Paul. Neng Xiong Ly to pursue, including passage of NTR later this It has been five years since the Appleton cooked for soldiers and pilots at Long Cheng, year. I look forward to working constructively woman’s husband, Houa Ly, was waylaid on a CIA airbase in the mountains of Xiang with my colleagues towards a closer relation- the banks of the Mekong River, the border Khoang province. A photograph of the base ship with Laos which will encourage the kinds between Thailand and his home country of hands in her living room. The United States of reforms we all hope will be implemented in Laos. abandoned Laos, and its Hmong allies, in No one has seen him or heard from him 1973. Two years later, the country fell to the that nation. communist Pathet Lao, backed by the North Mr. LANTOS. Mr. Speaker, I have no since. Deprive of her husband, Neng Xiong Ly teeters on the edge of poverty. Asked to Vietnamese Army. Thousands of Hmong further requests for time, and I yield were killed. Others were imprisoned in back the balance of my time. describe life without her husband, she wept softly. ‘‘I must be the poorest American,’’ forced labor camps. Tens of thousands fled Mr. BURTON of Indiana. Mr. Speak- she said in her native language. Houa Ly for Thailand. In October 1978, Houa Ly er, I yield myself such time as I may (pronounced HOO-AH LEE) was 55 when he crossed the Mekong with his wife and four consume. vanished, a veteran of the U.S. ‘‘secret war’’ daughters. Yer Ly was born in Thailand. She I would like to just say the previous in Laos, a Vietnam-era medic who saved the was 8 months old when the family immi- speaker made some very valid points, lives of American pilots shot down in the grated to the United States. They settled in and I appreciate his remarks. However, jungle. His disappearance, still shrouded in the Fox Valley. ‘‘We are the people who mystery, has re-emerged at the center of a helped the Americans,’’ Neng Xiong Ly said. the human rights violations in Laos ‘‘That is why we had to move.’’ continues to be widespread. There is a political fight on the floor of the U.S. Con- A FATEFUL TRIP lot of suspicion on the part of the gress. With the support of President Bush and the U.S. State Department, the com- Houa Ly had traveled to Thailand once be- Hmongs who are being talked about munist government of Laos is seeking the fore, around 1987, to visit a sister who would being relocated, and that suspicion, I benefits of Normal Trade Relations status. later immigrate to the Fox Cities. His return think, looking at the history of the La- But a group of 21 congressmen and senators, trip in 1999 was a break from work as a ma- otian government, is valid. And all I led by Rep. Mark Green, R–Green Bay, so far chine operator with Wisconsin Tissue Mills.

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00062 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.049 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2613 ‘‘He said it had been a long time,’’ Neng was dissatisfied in November 1999, reporting sistance and successful cooperation in the Xiong said. ‘‘He said he needed a vacation.’’ the Lao government ‘‘has been slow to re- spheres of politics, security, economy, trade At 6:30 a.m. May 7, 1999, Neng Xiong received spond to our requests for access to the area and socio-culture.’’ Obviously, myself and a call from the U.S. embassy in Thailand. and has tried to place restrictions on our in- others in both houses of Congress find such She was told her husband had been killed vestigators.’’ statements to be very troubling given what near the Laos border. ‘‘They just told me my That was when it mattered, Green said. we all know about the Burmese government. husband went over the border to Laos and That was before the trail grew cold. (5) Finally, according to this year’s State that somebody had taken him,’’ she said. She Still, Green said he would continue to Department ‘‘Voting Practices in the United fainted. A half-hour later, she called Yer Ly press the U.S. government, and the United Nations’’ document, Laos ranks 184 out of 186 in St. Paul. She said she had no reason to Nations, to learn the fates of Ly and Vang. countries in its record of agreement with the live. On her end, Yer Ly couldn’t speak, He, too, has suggested the United States United States in U.N. General Assembly couldn’t breathe. She fell to the floor, would be putting greater pressure on Laos if votes. In fact, this document shows that clutching the phone. Various unconfirmed the missing citizens were native-born Ameri- North Korea’s record of agreement with the reports about what happened to Houa Ly cans. U.S. (10.9 percent) is more than double that have emerged from congressional and private ‘‘This has been a great sadness for me,’’ of Laos’ (5.4 percent). Iran, the world’s most prominent state sponsor of terrorism, was al- inquiries. He had traveled to Thailand with a Green said. ‘‘We won’t give up, as long as the most four times more likely to support us relative, Neng Lee. They met two other families don’t give up.’’ (19.7 percent) than Laos (5.4 percent). This, Hmong-Americans, Michael and Hue Vang of Neng Xiong Ly said she was deeply grate- perhaps more than anything else, is the California, on the trip. The four were at a ful to Green and to his chief of staff, Chris Tuttle. clearest statement that Laos is not yet water festival in Chiang Kong, Thailand, on ready to improve relations between our two the western bank of the Mekong. In Indo- ‘‘I want thank them from the bottom of my heart,’’ she said. ‘‘They are the only two countries. china, the New Year is celebrated for a week Thank you for your kind attention to this in mid-April. In Chiang Kong, the group was Americans who went out of their way to help.’’ matter. I look forward to working together approached by a man who identified himself with you on this and other issues in the fu- as the police chief from Ban Houayxay in Yer Ly thinks her father is still alive, locked away in a prison camp. Her only evi- ture. Laos, just across the river. He said the police Sincerely, were allowing people into the country with- dence comes from her heart. ‘‘I don’t have anything to prove my father MARK GREEN, out visas to celebrate the festival. Member of Congress. Neng Lee and Hue Vang walked away to is alive,’’ she said. ‘‘It is a gut feeling that I have, that my mother has, that my whole shop in Chiang Khong. When they returned, SEPTEMBER 9, 2003. Ly and Michael Vang were gone. Witnesses family has. ‘‘When someone you love . . . when they Hon. PHIL CRANE, said they were seen being forced into a boat Chairman, Subcommittee on Trade, Committee that sped across the river into Laos. pass away . . . it is a different feeling. We don’t have that feeling.’’ on Ways and Means, House of Representa- An Associated Press story published in tives, Washington, DC. Asian Week in 2000 contained a similar Hon. SANDER LEVIN, SEPTEMBER 9, 2003. version of the disappearance. A Hmong in- Ranking Member, Subcommittee on Trade, Com- Hon. COLIN POWELL, vestigator was told by sources that Ly and mittee on Ways and Means, House of Rep- Michael Vang, and two Hmong from Thai- Secretary of State, Washington, DC. resentatives, Washington, DC. land, accepted the invitation to cross the DEAR CHAIRMAN CRANE AND RANKING MEM- DEAR MR. SECRETARY: Attached is a letter, river. Once in Laos, they were arrested. The BER LEVIN: We write today to implore you to signed by myself and 21 of my colleagues in Thailand Hmong escaped back across the take no further steps toward granting Nor- the U.S. House of Representatives, asking river to tell the story. mal Trade Relations (NTR) status to the Lao that you take no further steps toward grant- Some news stories have referred to specu- People’s Democratic Republic (LPDR). We ing Normal Trade Relations (NTR) to Laos. lation that Ly and Michael Vang were in respectfully assert that granting NTR to Although the letter speaks largely for Indochina to provide assistance to Hmong Laos at this time would in fact represent an itself, many of my colleagues and I feel it is rebels in northern Laos. ill-conceived reward for the consistently important to note that, since this letter was Green said he never has seen or heard any dreadful behavior the LPDR regime has ex- written and began circulating for co-signa- evidence to support this. hibited in recent years at home, abroad, and tures, several facts have come to light that Hmong veterans in the Fox Cities said this in its bilateral relations with the United further reinforce our assertion that granting theory makes no sense. While some Hmong States. We offer the following seven facts as send money to relatives in Laos, there is NTR to Laos is an imprudent step at this evidence the LPDR has not yet earned such nothing two men could do for bands of time. an upgrade in its trade status. Among these disturbing developments: Hmong hunted by divisions of troops deep in (1) Two U.S. citizens remain missing after (1) In June, the Laotian government ar- the interior. disappearing at the Laotian border in 1999. rested, imprisoned, tried, convicted and sen- WE WON’T GIVE UP The LPDR government has been uncoopera- tenced to 15 years in prison a Lutheran min- tive in its dealings with U.S. authorities Six months after word of Houa Ly’s dis- ister from St. Paul, Minnesota. While in cap- working to investigate their case, and the appearance, Green arranged a meeting in his tivity, this U.S. citizen was denied consular LPDR government may have been involved office with Neng Xiong Ly, Yer Ly, another access for over a week and subjected to a ri- in the disappearance itself. According to of the sisters and three representatives from diculous ‘‘trial’’ before the Laotian judiciary American eyewitnesses, U.S. citizens Houa the State Department. He also arranged a system. Though eventually released after Ly and Michael Vang went missing on April press conference for the Ly family and for more than a month, the Laotians’ handling 19, 1999 after having last been seen with Lao other families of people missing in Laos. of this case speaks volumes about their com- government authorities near the Laos-Thai- State Department officials have conducted mitment to friendly relations with the land border. U.S. investigators have since two on-site investigations in Laos, but were United States. pursued the case, but the State Department largely at the mercy of Laos officials, who at (2) Two well-respected European journal- has acknowledged a lack of cooperation by first delayed the effort and then placed re- ists traveling with the American mentioned the LPDR in the investigation, stating in strictions on it. U.S. officials have learned above were subjected to the same treatment, November 1999 that the Lao government nothing, said Green and family members. all apparently because of the group’s inves- ‘‘has been slow to respond to our requests for Five years ago, State Department officials tigation of Laotian government human access to the area and has tried to place re- said finding Houa Ly and Michael Vang was rights abuses against ethnic Hmong minori- strictions on our investigators.’’ In July of a top priority. ties in remote areas of Laos. 1999, staff members of the Senate Foreign Yer Ly no longer believes that. She fears (3) According to the BBC, Laotian rep- Relations Committee traveled to Laos and that her father, a man who risked his life to resentatives met in Pyongyang with rep- received information on the case from what save Americans in the jungles of Laos, will resentatives of North Korea just last month. they characterized as a ‘‘very credible be forgotten. There, ‘‘both sides . . . exchanged views on source.’’ The staff report filed after the trip Apart from Green, who has steadfastly the need to boost cooperation . . . (in) talks states that, ‘‘with a great degree of detail, pushed for a stronger effort, no one from the (that) proceeded in a friendly atmosphere.’’ the tip we received corroborated Hmong- government calls anymore. No one will an- This meeting is consistent with the Laotian American suspicions that the men in fact swer her questions. government’s past close relationship with crossed into Laos and that the government ‘‘What I think is that he is an Asian-Amer- the North Koreans. of Laos captured and killed Messrs. Vang and ican citizen,’’ she said, ‘‘and so it is not a top (4) According to the Vietnam News Agency Ly.’’ priority for them.’’ and other sources, in May ‘‘Top leaders in (2) As documented in this year’s State De- Green suspects Laotian officials were in- Myanmar and Laos . . . underscored the need partment Report on Human Rights Prac- volved. At the very least, he said, they im- to strengthen their cooperation in security tices, the LPDR continues to be of the peded the investigation. Although the State and other fields . . . the leaders expressed world’s most reprehensible abusers of human Department, pushing for Normal Trade Rela- their delight with the two countries’ growing rights—with a repertoire that includes tor- tions, now gives Laos better marks, its staff friendship and highly valued the mutual as- ture, harsh restrictions on the press and free

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00063 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.053 H05PT1 H2614 CONGRESSIONAL RECORD — HOUSE May 5, 2004 speech, and imprisonment of people for their (6) A substantial majority of Laotian- represent the thousands of Hmong soldiers religious beliefs. The report speaks for itself, Americans—many of whom know, first hand, and civilians hunted down and massacred by stating that last year: ‘‘The (Lao) Govern- the brutality meted out by the LPDR re- communist forces after the U.S. armed forces ment’s human rights record remained poor, gime—are strongly opposed to offering NTR and it continued to commit serious abuses. to Laos. These people, many of whom are began their withdrawal from the region in Citizens do not have the right to change Hmong-Americans who assisted the United 1975. The survivors lost many loved ones and their government. Members of the security States military during the Vietnam War, lost their homeland. The United States owes forces abused detainees, especially those sus- view the offer of NTR to the government of these veterans a great deal. pected of insurgent or antigovernment activ- Laos as a fundamental betrayal of not only Edgar Buell, a former senior U.S. official ity. Prisoners were abused and tortured, and them personally, but of our American prin- working with the Hmong during the war years, prison conditions generally are extremely ciples. According to the most recent census, harsh and life threatening. . . The judiciary best summed up their dedication to the U.S. there are approximately 170,000 Hmong living and western democratic principles when he was subject to executive, legislative, and in the United States. An almost equal num- LPRP influence, was corrupt, and did not en- ber of Lao live in the United States as well. said, ‘‘Everyone of them that died, that was an sure citizens due process. The Government (7) Although some argue that Laos pre- American back home that didn’t die. Some- infringed on citizens’ privacy rights. The sents a potentially lucrative market for U.S. body in nearly every Hmong family was either Government restricted freedom of speech, companies, the facts show otherwise. While fighting or died from fighting . . . They be- the press, assembly, and association. The proponents of improved trade relations with came refugees because we . . . encouraged Government continued to restrict freedom of Laos claim that the potential economic ben- religion, and police and provincial authori- them to fight for us. I promised them myself: efits outweigh the significant moral ques- ‘Have no fear, we will take care of you.’’’ ties arrested and detained more than 60 tions about Laos as a trading partner, the members of Christian churches, with 4 mem- truth is that the LPDR’s Gross Domestic Yet, we hear reports that the persecution of bers of religious communities in custody or Product in 2001 was estimated to be $9.2 bil- the Hmong in Laos continues to this day, with incarcerated for their religious beliefs at lion. For comparison, the Gross Municipal charges of starvation, families being sepa- year’s end.’’ These appalling human rights Product of Fort Wayne, Indiana in 2001 was rated, and other acts of violence. abuses are of particular concern in the so- more than double that amount: $18.8 billion. called ‘‘Saysamboun Special Zone’’ in Laos, Over the last twenty years, thousands of Laos’ authoritarian internal economic poli- where reports of LPDR military offenses Hmong have settled in Wisconsin and other against ethnic minorities are common and cies, not a lack of trade with the United places across the United States, sharing their disturbing. Finally, it is important to note States, has created this dismal reality. With- tragic history and brave sacrifices with their out substantial change in those policies, nei- that independent human rights monitoring fellow Americans. On their behalf, we must ful- organizations such as Amnesty International ther the people of Laos nor the United States will ever benefit economically from NTR. fill Edgar Buell’s promise and encourage the continue to be barred from entering Laos by government of the Lao People’s Democratic the LPDR government. This letter should not be interpreted as a (3) The U.S. Commission on International statement that we believe the door to NTR Republic to stop civil rights violations against Religious Freedom this year called Laos one for Laos should be shut forever. In our opin- the Hmong and others, and allow free and of the world’s worst violators of religious ion, however, Laos has failed miserably to open political activities in Laos. freedom, stating that forced renunciations of demonstrate that it is ready for or deserves Mr. BURTON of Indiana. Mr. Speak- faith and imprisonment of people for their NTR at this time. In fact, in the six years er, I have no further requests for time, religious beliefs are tragically frequent. In since the negotiation of the U.S.-LPDR bilateral trade agreement, the Lao regime’s and I yield back the balance of my its 2003 report to the president and Congress, time. the commission urged the Bush administra- record on basic issues like those mentioned tion to name Laos a ‘‘Country of Particular above has actually become worse, not better. The SPEAKER pro tempore (Mr. Concern,’’ which would place it in the com- We believe that if, over the next few years, COLE). The question is on the motion pany of such terrifying regimes as Saddam the LPDR government is able to successfully offered by the gentleman from Indiana Hussein’s Iraq, Sudan, Burma and North demonstrate concrete improvements in these (Mr. BURTON) that the House suspend Korea. According to the commissions report, areas of concern, consideration of NTR for the rules and agree to the resolution, ‘‘for at least the last several years, the gov- Laos may be appropriate. Until then, however, we should send a strong message to the H. Res. 402. ernment of Laos has engaged in particularly The question was taken. severe violations of religious freedom . . . LPDR regime that economic rewards from these include the arrest and prolonged deten- the United States will not be forthcoming The SPEAKER pro tempore. In the tion and imprisonment of members of reli- unless it can improve its abysmal record. opinion of the Chair, two-thirds of gious minorities on account of their reli- Respectfully, those present have voted in the affirm- gious activities, as well as instances where Mark Green, Barney Frank, Duncan ative. Lao officials have forced Christians to re- Hunter, Earl Pomeroy, John Doolittle, Mr. LANTOS. Mr. Speaker, on that I nounce their faith. Between 100 and 200 indi- Patrick Kennedy, William Delahunt, demand the yeas and nays. Ron Kind, James Langevin, Howard viduals have been arrested since 1999. At the The yeas and nays were ordered. same time, dozens of churches have been Coble, Robin Hayes, Sue Myrick, Lin- closed. These violations have continued to be coln Diaz-Balart, Christopher Smith, The SPEAKER pro tempore. Pursu- committed in the past year. . .’’ Gil Gutknecht, Devin Nunes, Ileana ant to clause 8 of rule XX and the (4) Shockingly, the LPDR continues to fos- Ros-Lehtinen, Thomas Petri, George Chair’s prior announcement, further ter close ties with Kim Jong-Il’s Democratic Radanovich, Mark Kennedy, Frank proceedings on this motion will be People’s Republic of Korea (DPRK)—stating Wolf, Dana Rohrabacher. postponed. two years ago that relations ‘‘of friendship Mr. PETRI. Mr. Speaker, as a long time f and cooperation’’ between Laos and the supporter of Hmong veterans and their fami- North Korean pariah state ‘‘are steadily lies in Wisconsin and across the United EXPRESSING SENSE OF CONGRESS growing stronger,’’ and congratulating the States, I am pleased to be a cosponsor and REGARDING ARBITRARY DETEN- North Korean people ‘‘on the shining suc- TION OF DR. WANG BINGZHANG cesses made in their efforts to build a power- express my support for House Resolution 402 ful nation . . . under the wise leadership of which calls for democratic and human rights Mr. BURTON of Indiana. Mr. Speak- Kim Jong-Il.’’ In a joint communique´ issued reforms in Laos. er, I move to suspend the rules and July 17, 2001 by the leadership of the LPDR Many Americans don’t realize the vital role agree to the concurrent resolution (H. and DPRK, the North Korean government Hmong soldiers played in the Vietnam War. Con. Res. 326) expressing the sense of also commended the Lao government for the School history books often ignore that before ‘‘great successes made in their efforts to con- Congress regarding the arbitrary de- U.S. soldiers even landed in Vietnam or Laos, tention of Dr. Wang Bingzhang by the solidate and develop the people’s democratic CIA agents arrived to train young Hmong men system and estimated the daily rising role Government of the People’s Republic of and position of the LPDR.’’ and women to fight against their oppressors. China and urging his immediate re- (5) The LPDR recently held state-sanc- These brave Hmong fought valiantly for de- lease. tioned rallies speaking out against U.S. mili- mocracy and for freedom for their people. The Clerk read as follows: tary action in Iraq in the most inflammatory They rescued downed American pilots and H. CON. RES. 326 of terms—stating that ‘‘the war will bring took bullets that otherwise would have found disaster to the whole of humanity,’’ and ‘‘de- their way to the bodies of American soldiers. Whereas Dr. Wang Bingzhang is a permanent resident of the United States and his mand(ing) the U.S. respect the peace and In defense of their country and in service to sovereignty of Iraq.’’ These and other simi- sister and daughter are United States citi- larly belligerent comments were transmitted U.S. troops, nearly 40,000 Hmong troops were zens; throughout Laos on state-run radio and killed, approximately 58,000 were injured in Whereas Dr. Wang received his Ph.D. at around the globe through various media combat and more than 2,500 are still missing McGill University in Canada in coronary-ar- services. in action today. These numbers don’t begin to terial research and is a well-respected leader

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00064 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.056 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2615 of the overseas Chinese pro-democracy move- nized standards for judicial proceedings The SPEAKER pro tempore. Pursu- ment and the founder of China Spring maga- under provisions of the United Nations Uni- ant to the rule, the gentleman from In- zine; versal Declaration of Human Rights; diana (Mr. BURTON) and the gentleman Whereas Dr. Wang is currently serving a Whereas in its opinion, the United Nations from California (Mr. LANTOS) each will life sentence in prison in the People’s Repub- Working Group noted that Dr. Wang is an lic of China and is suffering from gastritis, internationally recognized pro-democracy control 20 minutes. varicose veins, phlebitis, and depression; activist as opposed to the Chinese Govern- The Chair recognizes the gentleman Whereas Dr. Wang was abducted in north- ment’s characterization of Dr. Wang as an from Indiana (Mr. BURTON). ern Vietnam in June 2002 after meeting with individual who advocates violence and sug- GENERAL LEAVE a Chinese labor activist; gests the use of methods such as kidnapping Mr. BURTON of Indiana. Mr. Speak- Whereas Dr. Wang was driven to the border and bombings to achieve his goals, and that er, I ask unanimous consent that all between Vietnam and the People’s Republic Dr. Wang had boasted of carrying out many of China and forced back to China by boat; Members may have 5 legislative days violent terrorist activities; within which to revise and extend their Whereas Dr. Wang was blindfolded and Whereas in its opinion, the United Nations bound and held in various places in Guangxi Working Group further noted that the Chi- remarks and include extraneous mate- Province and his captors demanded a nese Government offered ‘‘no evidence of any rial on the concurrent resolution that $10,000,000 ransom, which Dr. Wang was un- specific occasion on which Wang made the is under consideration. able to pay; alleged calls to violence’’ and that ‘‘[o]ther The SPEAKER pro tempore. Is there Whereas Dr. Wang although provided his than the kidnapping of which Wang himself objection to the request of the gen- captors with the names and telephone num- was a victim, as the Government itself ac- tleman from Indiana? bers of his relatives, they were never con- knowledges, no information has been given There was no objection. tacted; about other kidnappings or acts of violence Whereas Dr. Wang was finally taken to a Mr. BURTON of Indiana. Mr. Speak- initiated by Wang’’; er, I yield myself such time as I may Buddhist temple in Fangchenggang City in Whereas in its opinion, the United Nations southern Guangxi Province where his abduc- Working Group further stated that ‘‘Wang, consume. tors unexpectedly left and moments later he during his first five months in detention, did Mr. Speaker, I rise in strong support was ‘‘rescued’’ by the Chinese police; not have knowledge of the charges, the right of this concurrent resolution sponsored Whereas Dr. Wang was detained by the Chi- to legal counsel, or the right to judicial re- by the gentlewoman from California nese police and then transported to Nanning, view of the arrest and detention; and that, (Mrs. NAPOLITANO) expressing the in- the capital of Guangxi Province; after that date, he did not benefit from the dignation of the Congress over the con- Whereas Dr. Wang was held incommuni- right to the presumption of innocence, the tinued arbitrary detention of Dr. Wang cado for six months, during which time the right to adequate time and facilities for de- Government of the People’s Republic of Bingzhang by the Government of the fense, the right to a fair trial before an inde- People’s Republic of China. In recent China denied any knowledge of his where- pendent and impartial tribunal, the right to abouts; a speedy trial and the right to cross-examine years, we have all noted Beijing’s pat- Whereas on December 4, 2002, the Chinese witnesses’’; tern of using trumped-up charges to ar- Government reversed itself, admitting that Whereas in conclusion, the United Nations rest and detain Chinese academics and Dr. Wang had been in its custody since July Working Group declared that ‘‘the detention democracy proponents who live outside 3, 2002; of Wang Bingzhang is arbitrary, being in Whereas on December 5, 2002, Dr. Wang was China during their visits back to their contravention of articles 9, 10 and 11 of the charged with ‘‘offenses of espionage’’ and ancestral homeland. Universal Declaration of Human Rights’’ and ‘‘the conduct of terrorist activities’’; In Dr. Wang’s case, however, Beijing requested ‘‘the [Chinese] Government to Whereas on January 22, 2003, Dr. Wang was has gone one step further in its at- take the necessary steps to remedy the situ- tried by the Intermediate People’s Court in tempt to muzzle the overseas Chinese ation of Wang Bingzhang and bring it into the city of Shenzhen in Guangdong Province; community through tactics of fear and Whereas Dr. Wang’s trial lasted only half a conformity with the standards and principles set forth in the Universal Declaration of intimidation. Dr. Wang was not de- day and was closed to the public because the tained within the borders of China Chinese Government indicated that ‘‘state Human Rights’’; secrets’’ might be revealed, thereby pre- Whereas the United States Congressional- itself. He was instead kidnapped, ab- cluding family members, supporters, and re- Executive Commission on China made the ducted during a visit to Vietnam, porters from attending; following recommendation in its 2003 annual bound and blindfolded, and forcibly Whereas at the trial, Dr. Wang declared report: ‘‘The President and the Congress transported across the border between himself innocent of all charges; should increase diplomatic efforts to hold Vietnam and China in a clear violation Whereas at the trial, the Chinese Govern- the Chinese government to [its commitments on human rights matters during the of international law. This case serves ment refused to release any evidence of Dr. to demonstrate that despite historic Wang’s wrongdoing; December 2002 U.S.-China human rights dia- Whereas at the trial, Dr. Wang was denied logue], particularly the release of those arbi- differences, the communist regimes in the right to due process, specifically the trarily detained’’; Hanoi and Beijing are willing to make right to the presumption of innocence, the Whereas the report also stated the fol- common cause when it comes to sup- right to adequate time and facilities to pre- lowing: ‘‘The Chinese [G]overnment has also pressing the voices of the advocates of pare for his own defense, the right to a fair taken advantage of the global war on ter- democratic reform. This is common trial before an independent and impartial rorism to persecute . . . political dissidents. among communist brotherhood. tribunal, the right to call witnesses on his In February 2003, Wang Bingzhang, a U.S. permanent resident and veteran pro-democ- The People’s Republic of China’s own behalf, the right to cross-examine wit- legal transgressions and abuses in this nesses testifying against him, and in general, racy activist, was convicted of ‘leading a ter- the lack of other due process guarantees that rorism organization’ and ‘spying’ and sen- case are so egregious that the United would ensure his adequate defense and a full tenced to life imprisonment’’; and Nations, despite its sensitivity to Bei- hearing; Whereas the report finally noted that ‘‘[i]n jing’s status as a permanent member of Whereas Dr. Wang’s trial represented the July 2003, the UN Working Group on Arbi- the Security Council, declared that the first time the Chinese Government had trary Detention declared that Wang’s arrest detention of Dr. Wang is a contraven- brought charges against a pro-democracy and imprisonment violated international tion of the Universal Declaration of law’’: Now, therefore, be it dissident under its new terrorism laws; Human Rights. Whereas although Dr. Wang was convicted Resolved by the House of Representatives (the Beijing has further attempted to ma- and sentenced to life in prison on February Senate concurring), That it is the sense of nipulate heightened post-September 11 10, 2003, Dr. Wang’s lawyers stated that there Congress that— was insufficient evidence to convict him; (1) Dr. Wang Bingzhang, a permanent resi- international concerns over terrorism Whereas Dr. Wang’s lawyers immediately dent of the United States, is being arbi- by charging Dr. Wang with ‘‘the con- appealed the court’s verdict, but the appeal trarily detained in the People’s Republic of duct of terrorist activities’’ due to his was rejected on February 28, 2003; China in violation of international law; advocacy of labor rights in China. The Whereas a human rights petition was sub- (2) the United States Government should Working Group of the Office of the mitted on Dr. Wang’s behalf to the United request the Government of the People’s Re- United Nations High Commissioner for Nations Arbitrary Working Group of the Of- public of China to release Dr. Wang, permit- Human Rights, however, has rendered a fice of the United Nations High Commis- ting him to immediately return to the finding that the Chinese government sioner for Human Rights; United States; and Whereas the petition claimed that Dr. (3) the President should make the imme- has offered ‘‘no evidence of any specific Wang was being arbitrarily detained and diate release of Dr. Wang by the Government occasion on which Dr. Wang made the that the judicial standards employed in his of the People’s Republic of China a top pri- alleged calls to violence,’’ further not- trial fell far short of internationally recog- ority of United States foreign policy. ing that Dr. Wang himself was a victim

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00065 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.043 H05PT1 H2616 CONGRESSIONAL RECORD — HOUSE May 5, 2004 of kidnapping by the very Chinese au- Chinese embassy is paying attention, tlewoman from California (Mrs. thorities who have accused him. Such this is something they should address NAPOLITANO). false labeling of a victim of abduction very quickly and get this man back Mrs. NAPOLITANO. Mr. Speaker, I as a terrorist is a cynical maneuver home to his family. thank my gracious friend and col- which demeans the memory of the vic- Mr. Speaker, I reserve the balance of league, the gentleman from California tims of genuine terrorist attacks my time. (Mr. LANTOS), the ranking member on throughout the world. This is a perfect Mr. LANTOS. Mr. Speaker, I yield the committee, for yielding me time example of some of the things that the myself such time as I may consume. and thank the gentleman from Indiana Chinese communists do that is just un- I strongly support this important (Mr. BURTON) for allowing this resolu- thinkable, and the world should con- resolution, and I urge all of my col- tion to be brought to the floor and demn them for that. leagues to do so as well. heard. Beijing’s border controls not only in- I first would like to acknowledge the Mr. Speaker, I am very, very conclude cases of bringing people forcibly excellent work on this resolution of the cerned about this particular individual. back into China, as with the case of Dr. gentlewoman from California (Mrs. His daughter came to my office not Wang and the group of Tibetan refu- NAPOLITANO). I would also like to ex- quite a year ago asking for us to take gees who were forcibly repatriated by press my appreciation to the gen- some action on behalf of her family. the Chinese communists in Nepal last tleman from Indiana (Mr. BURTON); the Yes, they are very worried. They are year. Beijing also seeks to forcibly gentleman from Iowa (Mr. LEACH), sub- very concerned. Because they cannot keep people from leaving. We have committee chairman; and the gen- be in contact with their family mem- heard that before. Remember the Ber- tleman from Illinois (Mr. HYDE), the ber, their father, they are not able to lin Wall? The People’s Republic of chairman of our full committee for provide him any kind of assistance, so China crossed a new line of inhumanity their strong support of this measure. they are incommunicado and are not Mr. Speaker, the litany of human on the borders last month when, ac- able to help this individual. rights abuses conducted by the Chinese cording to a reliable NGO report, Chi- This particular case is a clear case of government on its own citizens is noth- nese border guards shot in the back a violation of human rights by the Peo- ing new to Members of this House. This and killed a North Korean refugee as ple’s Republic of China. Dr. Wang, as resolution, however, calls our atten- he was attempting to cross into Mon- you have heard, was held for 6 months tion to a case where China’s complete before they actually filed charges golia, where he would have received disregard for human rights and the rule against him. He was sentenced to life safe haven and have been free. It re- of law has been brought to new heights. in prison on January 22, 2003, after, as minds us of the Berlin Wall and the Having completely suppressed dissent you have heard, a very abrupt, half-day German border guards shooting to kill at home, the Chinese government has trial where he was not allowed time to refugees when all they wanted was actually begun kidnapping Chinese dis- prepare a defense, he was not allowed freedom. sidents abroad to be brought to China I say here today: Beijing, tear down to cross-examine the government’s wit- for persecution. the walls of oppression, of arbitrary ab- nesses, he was not allowed to call any In June, 2002, Dr. Wang Bingzhang, a witnesses of his own, nor was he al- duction of democracy advocates, and of permanent resident of the United lowed to provide his own defense. victimization of refugees on the run States and the leader in the overseas To date, there has been no evidence who cannot defend themselves. Chinese democracy movement, was in to link him to the crimes he was First, let Dr. Wang go. He is suffering Vietnam to meet with Chinese labor charged with, nor have they released in prison from serious medical condi- leaders. Dr. Wang was kidnapped from him. It is no surprise that the United tions. He never had any intention of Vietnam, forced over the border into Nations working group has declared entering China’s territory, and he China, and eventually jailed by the this detention illegal. needs to return to his waiting family, Chinese government. He was held in- I will include for the RECORD two ar- who misses him dearly here in the communicado for 6 months while the ticles that were printed on Dr. Wang. United States. And second, lift the Chinese authorities denied that they Today, while we go about our busi- bamboo curtain of intimidation di- knew anything about his fate. ness of enjoying freedom and liberty in rected at both its own citizens inside the United States, it is inconceivable China and the overseas Chinese com- b 1815 to us that a person such as Dr. Wang munity which is calling for political as Dr. Wang was then charged with espi- would sit in a prison. He has not sent well as economic reform in their home- onage and terrorist activities, though any communication to his family, he land. the government produced no evidence has been allowed no visitors, and he China has undergone profound linking him to these charges. He was has been denied access to medical care. change in the last 2 decades. Beijing prevented from calling witnesses to Our government must continue to has increasingly sought, through such support his case, to have sufficient put international pressure on China actions as participation in inter- time to prepare his defense and to and many other countries to improve national peacekeeping and through cross-examine the witnesses against their human rights efforts. hosting the 2008 Olympic Games, to him. Mr. Speaker, I thank my colleagues take its place among the advanced After this mockery of a trial, Dr. who cosigned this resolution and urge countries of the world. But China can- Wang was sentenced to life in prison in this House to sign up for human rights not truly be a great nation until Bei- February of 2003. His appeal was de- and human decency. Please vote ‘‘yes’’ jing ends its systematic suppression of nied. on H. Con. Res. 326 and call on China to individual human rights such as clear- Mr. Speaker, the kidnapping, trial end its illegal detention of Dr. Wang. ly demonstrated in the case of Dr. and conviction of Dr. Wang is an out- Mr. Speaker, I include the articles Wang Bingzhang. rageous violation of internationally referred to earlier for the RECORD. Mr. Speaker, it is hard to believe recognized human rights. A United Na- [From Reuters News, Dec. 6, 2003] that a country that is economically as tions working group declared that the CHINA ACTIVIST PLANS HUNGER STRIKE strong as China is would stoop to detention of Dr. Wang is arbitrary and DURING WEN TRIP shooting a person in the back who contravenes the universal declaration BEIJING.—A jailed Chinese dissident who wants to gain freedom just to stop of human rights. spent years in the United States plans to them from getting out of their coun- Dr. Wang is in poor health, and our stage a hunger strike to coincide with a trip try, and it boggles my mind that China resolution simply asks that he be re- by Chinese Premier Wen Jiabao to the would actually go into Vietnam, kid- leased so that he may return to his United States, a U.S.-based rights group said nap somebody, blindfold them, and family here in the United States. I on Saturday. Wang Bingzhang, who was take them forcibly back to China when handed a life sentence on terrorism and espi- strongly support passage of this resolu- onage charges by a Chinese court in Feb- all they wanted was to see freedom and tion, and I urge all of my colleagues to ruary, aimed to protest against his solitary labor rights in China, and keeping this do so as well. confinement at the Shaoguan prison in gentleman from his family, I think, is Mr. Speaker, I am delighted to yield Guangdong province, the Worldrights group just unthinkable. So if anybody in the 2 minutes to my good friend, the gen- said.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00066 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.114 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2617 ‘‘From solitary confinement, Dr. Wang is So this man was trying to help orga- abusing people, going to Vietnam to calling on the leaders of America to stand nize labor in China and trying to help pick people up who are going to help with him and to demand his unconditional bring some dignity and justice to the workers organize in China. release,’’ it is said in a statement. Wen is due to meet with U.S. President labor industry in China. It is obvious Something needs to be done, and George W. Bush early next week to discuss that China does not want it, but I something needs to be done now. I ap- trade and issues related to Taiwan, which think it is becoming more and more appreciate the opportunity that the gen- Beijing views as a renegade province, among parent that the major corporations in tlewoman from California has given me others. the United States who do business in and the gentleman from California. Wang, a U.S. green card holder in his mid- China do not want China to have labor I rise in support of this; but, again, I 50s said by family members to have re- think it is a symptom of a larger prob- nounced Chinese citizenship, was the first standards either. democracy activist charged by China with If citizens of the regime in China try lem that needs to be dealt with, and terrorism and espionage. to unionize, they will be arrested, they this administration and this Congress will be beaten, they will be tortured. need to continue to push China to en- [From the South China Morning Post, Dec. Many of the workers are bonded workforce the human rights that we have 11, 2003] ers that come from the farms and go in been exporting from this country for FEARS GROW FOR HEALTH OF JAILED to work in some of the factories. These many, many years and want to con- DISSIDENT people in China and the government of tinue to export out of this country. (By Verna Yu) China do not enforce the minimum Mr. LANTOS. Mr. Speaker, I have no Imprisoned dissident Wang Bingzhang is on wage standards that they have, nor further requests for time, and I yield the brink of a nervous breakdown due to the some of the safety rules that they back the balance of my time. ‘‘mental torture’’ he has suffered in jail, and is threatening to go on a hunger strike, his have. Mr. BURTON of Indiana. Mr. Speak- brother says. Wang Bingwu, who visited his Why do they not want to do this? Be- er, I have no further requests for time, older brother at a prison in Shaoguan, cause if they enforce these rules, as the and I yield back the balance of my Guangdong, last Friday, said he found the AFL–CIO has indicated to us, there time as well. solitary confinement and mandatory ‘‘polit- would be a 10 percent to 77 percent in- The SPEAKER pro tempore (Mr. ical education’’ imposed three times a day crease in the cost of goods coming out COLE). The question is on the motion increasingly difficult to bear. of China. We do not want to say that ‘‘He told me to tell the world that in order offered by the gentleman from Indiana to end his solitary confinement and mental we want to raise prices, but I thought (Mr. BURTON) that the House suspend torture, he would go on a hunger strike,’’ Mr that this would bring about global the rules and agree to the concurrent Wang said in Hong Kong yesterday. competition, and I thought we were resolution, H. Con. Res. 326. Critics say the so-called ‘‘political edu- going to spread democracy. We want to The question was taken. cation’’ sessions in mainland prisons typi- lift the Chinese worker up. We want to The SPEAKER pro tempore. In the cally include several hours of brainwashing, lift them up to live, hopefully, one day, opinion of the Chair, two-thirds of forced self-criticism and confession of al- with the standards that we have here leged crimes. those present have voted in the affirm- He was arrested and convicted on espio- in the United States of America. ative. nage and terrorism charges and given a life But just think, if this would happen, Mr. LANTOS. Mr. Speaker, on that I sentence in February. He was found guilty of if there would be a 10 to 77 percent in- demand the yeas and nays. providing intelligence to Taiwan between crease in the goods coming out of the The yeas and nays were ordered. 1982 and 1990. He and his family deny the Chinese market, the U.S. worker would The SPEAKER pro tempore. Pursu- charges. finally be able to compete, Mr. Speak- ant to clause 8 of rule XX and the Mr. Wang said his brotyher looked frail er, would finally be able to compete; and was suffering from stomach ailments Chair’s prior announcement, further and varicose ulcers. He said his brother was and it would eliminate the problem we proceedings on this motion will be given medicine in prison but was banned are even having dealing with the cur- postponed. brom taking other medication that his fam- rency right now, if we would have f ily brought from America. those kinds of labor and human rights EXPRESSING CONCERN OF CON- Mr. LANTOS. Mr. Speaker, I am very standards put in place. GRESS OVER IRAN’S DEVELOP- pleased to yield 4 minutes to my good I want to share a quote from the MENT OF MEANS TO PRODUCE friend, the distinguished gentleman President of the United States when he NUCLEAR WEAPONS from Ohio (Mr. RYAN). was in Cleveland, Ohio, on March 10, Mr. RYAN of Ohio. Mr. Speaker, I 2003. He said to the workers in Ohio, Mr. BURTON of Indiana. Mr. Speak- thank the gentleman for yielding me ‘‘Ohio workers, if given a level playing er, I move to suspend the rules and time. field, can outproduce any worker any- agree to the concurrent resolution (H. I also want to thank the gentleman where on Earth,’’ if we had a level Con. Res. 398) expressing the concern of from Indiana (Mr. BURTON) for his lead- playing field. Congress over Iran’s development of ership on this issue and a lot of other What we need to do is ask this ad- the means to produce nuclear weapons. issues. Regardless of party and regard- ministration to get tough on China. A The Clerk read as follows: less of what the political pressure is, level playing field will not just fall out H. CON. RES. 398 the gentleman has taken a stand; and of the sky. Whereas the United States has for years being a new Member of Congress, I Then when we saw, and the AFL–CIO attempted to alert the international commu- want to thank the gentleman for an op- petitioned for, an opportunity to try to nity to Iran’s covert nuclear activities in portunity to be able to witness that up fix the currency manipulation prob- support of an intention to develop a nuclear close. lems and some of the labor rights prob- weapon, contrary to its obligations under Mr. Speaker, the issue of Dr. Wang is lems, four Members of this administra- the Treaty on the Non-Proliferation of Nu- a very interesting one, for a variety of tion’s cabinet said that the administra- clear Weapons (NPT); reasons. The one reason that strikes tion’s efforts at diplomatic engage- Whereas Iran’s covert activities to develop the means to produce nuclear weapons are fi- me, and the gentleman from Indiana ment with Beijing on these two issues, nally beginning to be revealed to the inter- alluded to this, is that he was meeting currency and labor rights, would national community; with a labor activist. I find that very produce more results than threatening Whereas Iran did not declare to the Inter- interesting, and I find this particular punitive tariffs. national Atomic Energy Agency (IAEA) the situation a symptom of a larger disease Efforts at diplomatic engagement? existence of the Natanz Pilot Fuel Enrich- that we are trying to deal with. This is coming from an administration ment Plant and the production-scale Fuel They are saying there was a violation that, when they walk the halls of the Enrichment Facility under construction at of three articles of the Universal Dec- United Nations, it is like a bull in a Natanz until February 2003, after the exist- laration of Human Rights. There is ob- china shop. They have no diplomatic ence of the plant and facility was revealed by an opposition group; viously no longer a Universal Declara- touch. We have alienated all of our al- Whereas it is estimated that the Pilot Fuel tion of Human Rights because coun- lies. Now we want to go and try to deal Enrichment Plant could produce enough tries like China do not agree to this with China with diplomacy, while they highly enriched uranium for a nuclear weap- kind of standard that we have set. are abusing workers, while they are on every year-and-a-half to two years;

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00067 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.058 H05PT1 H2618 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Whereas it is estimated that the Natanz Whereas on November 10, 2003, Iran further persuade it to cease its nuclear weapons de- Fuel Enrichment Facility could, when com- informed the IAEA Director General that it velopment program; pleted, produce enough highly enriched ura- had decided to suspend all enrichment and Whereas the IAEA Board of Governors’ res- nium for as many as 25–30 nuclear weapons reprocessing activities in Iran, not to olution of March 13, 2004, which was adopted per year; produce feed material for enrichment proc- unanimously, noted with ‘‘serious concern Whereas in his report of June 6, 2003, the esses, and not to import enrichment related that the declarations made by Iran in Octo- Director-General of the IAEA stated that items; ber 2003 did not amount to the complete and Iran had failed to meet its obligations under Whereas the IAEA, through its investiga- final picture of Iran’s past and present nu- its Safeguards Agreement with the IAEA to tive and forensic activities in Iran and else- clear programme considered essential by the report all nuclear material imported into where, has uncovered and confronted Iran in Board’s November 2003 resolution’’, and also Iran—specifically, the importation of ura- numerous lies about its nuclear activities; noted that the Agency has discovered that nium hexafluoride from China in 1991—the Whereas the Director General of the IAEA Iran had hidden more advanced centrifuge processing and use of that material, and the reported to the IAEA Board of Governors on associated research, manufacturing, and facilities involved in the use and processing November 10, 2003, that Iran has concealed testing activities; two mass spectrometers of the material; many aspects of its nuclear activities from used in the laser enrichment program; and Whereas the IAEA Board of Governors the IAEA, which constituted breaches of its designs for hot cells to handle highly radio- urged Iran in June 2003 to promptly rectify obligations under its Safeguards Agreement; active materials; its failures to meet its obligations under its Whereas despite Iran’s subsequent pledge Whereas the same resolution also noted Safeguards Agreement, not to introduce nu- to, once again, fully disclose all of its nu- ‘‘with equal concern that Iran has not re- clear material into the Natanz Pilot Fuel clear activities to the IAEA, the Director solved all questions regarding the develop- Enrichment Plant, and to cooperate fully General of the IAEA, in his report of Feb- ment of its enrichment technology to its with the Agency in resolving questions about ruary 24, 2004, found that Iran continued to current extent, and that a number of other its nuclear activities; engage in deception regarding its nuclear ac- questions remain unresolved, including the Whereas the IAEA Director General re- tivities, including failing to disclose a more sources of all HEU contamination in Iran; ported to the Board of Governors in August sophisticated enrichment program using the location, extent and nature of work un- 2003 that, after further investigation, Iran more advanced enrichment centrifuge tech- dertaken on the basis of the advanced cen- failed to disclose additional nuclear activi- nology imported from foreign sources, and trifuge design; the nature, extent, and pur- ties as required by its Safeguards Agreement noncredible explanations involving experi- pose of activities involving the planned and continued to fail to resolve questions ments to create a highly toxic isotope of po- heavy-water reactor; and evidence to support about its undeclared uranium enrichment ac- lonium that is useful as a neutron initiator claims regarding the purpose of polonium-210 tivities; in nuclear weapons and a firm indicator of a experiments’’; Whereas the IAEA Board of Governors on nuclear weapons development program; Whereas Hassan Rowhani on March 13, September 12, 2003, called on Iran to suspend Whereas these deceptions by Iran were con- 2004, declared that IAEA inspections would all further uranium enrichment and any plu- tinuing violations of Iran’s Safeguards be indefinitely suspended as a protest tonium reprocessing activities, disclose all Agreement and of Iran’s previous assurances against the IAEA Board of Governors’ reso- its nuclear activities, and cooperate fully to the IAEA and the international commu- lution of March 13, 2004, and while Iran sub- with the Agency, and to sign, ratify, and nity for full transparency; sequently agreed to readmit inspectors by fully implement the Additional Protocol be- Whereas despite Iran’s commitment to the March 27, 2004, this suspension calls into se- tween Iran and the IAEA for the application IAEA and to France, Germany, and the rious question Iran’s commitment to full of safeguards to strengthen investigation of United Kingdom that it would suspend ura- transparency about its nuclear activities; all nuclear activities within Iran, and re- nium enrichment activities, it has repeat- and quested all third countries to cooperate edly emphasized that this suspension is tem- Whereas Iran’s pattern of deception and closely and fully with the Agency in resolv- porary and continued to import and manu- concealment in dealing with the IAEA, the ing questions about Iran’s nuclear program; facture uranium enrichment centrifuge parts Foreign Ministers of France, Germany, and Whereas IAEA inspectors and officials con- and equipment, allowing it to resume and ex- tinued to confront Iran with discrepancies in the United Kingdom, and the international pand its uranium enrichment activities its explanations of its nuclear activities; community, its receipt from other countries whenever it chooses; Whereas on October 9, 2003, in a letter to of the means to enrich uranium, and its re- Whereas the statements on February 25, the Director General of the IAEA, Iran fi- peated breaches of its IAEA Safeguards 2004, of Hassan Rowhani, Secretary of the nally confirmed that it had conducted re- Agreement, indicate that Iran has also vio- Supreme National Security Council of Iran, search on uranium conversion processes at lated its legal obligation under article II of that Iran was not required to reveal to the the Esfahan Nuclear Technology Centre and the NPT not to acquire or seek assistance in IAEA its research into more sophisticated the Tehran Nuclear Research Centre, despite acquiring nuclear weapons: Now, therefore, ‘‘P2’’ uranium enrichment centrifuges, and its earlier denials of such activities; be it that Iran has other projects which it has no Whereas on October 21, 2003, Iran and the Resolved by the House of Representatives (the Foreign Ministers of France, Germany, and intention of declaring to the IAEA, are con- Senate concurring), That the Congress— the United Kingdom issued a joint statement trary to— (1) condemns in the strongest possible (1) Iran’s commitment to the IAEA in a in which Iran indicated that it had decided terms Iran’s continuing deceptions and false- letter on October 16, 2003, by the Vice Presi- to suspend all uranium enrichment and re- hoods to the International Atomic Energy dent of Iran and President of Iran’s Atomic processing activities as defined by the IAEA; Agency (IAEA) and the international com- Energy Organization that Iran would present Whereas this statement also foresaw the a ‘‘full picture of its nuclear activities’’ and munity about its nuclear programs and ac- provision of unspecified nuclear technical co- ‘‘full transparency’’; tivities; operation once Iran had satisfied inter- (2) its commitment to the foreign min- (2) calls upon all State Parties to the Trea- national concerns about its nuclear develop- isters of the United Kingdom, France, and ty on the Non-Proliferation of Nuclear Weap- ment program; Germany of October 21, 2003, to full trans- ons (NPT), including the United States, to Whereas in a subsequent letter on October parency and to resolve all outstanding use all appropriate means to deter, dissuade, 23, 2003, Iran further admitted that it had issues; and and prevent Iran from acquiring nuclear tested uranium enrichment centrifuges at (3) its statement to the IAEA’s Board of weapons, including ending all nuclear and the Kalaye Electric Company between 1998 Governors of September 12, 2003, of its com- other cooperation with Iran (including the and 2002 using its previously undeclared im- mitment to full transparency and to ‘‘leave provision of dual use items), until Iran fully ported uranium hexafluoride from China; no stone unturned’’ to assure the IAEA of its implements the Additional Protocol between Whereas in that same letter, Iran admitted peaceful objectives; Iran and the IAEA for the application of that it had a laser uranium enrichment pro- Whereas it is abundantly clear that Iran safeguards; gram, in which it used 30 kg of uranium not remains committed to a nuclear weapons (3) declares that Iran, through its many previously declared to the IAEA, another program; breaches for 18 years of its Safeguards Agree- violation of its Safeguards Agreement; Whereas Libya received enrichment equipment with the IAEA, has forfeited the right Whereas in that same letter, Iran also ad- ment and technology, and a nuclear weapons to be trusted with development of a nuclear mitted that it had irradiated 7 kg of uranium design, from the same nuclear black market fuel cycle, especially with uranium conver- dioxide targets and reprocessed them to ex- that Iran has used, raising the question of sion and enrichment and plutonium reproc- tract plutonium, another violation of its whether Iran, as well, received a nuclear essing technology, equipment, and facilities; legal obligation to disclose such activities weapon design that it has refused to reveal (4) declares that the recent revelations of under its Safeguards Agreement; to international inspectors; Iran’s nondisclosure of additional enrich- Whereas Iran told the IAEA on November Whereas the Ministry of the Atomic En- ment and nuclear-weapons-applicable re- 10, 2003, that it would sign and ratify the Ad- ergy of the Russian Federation has recently search activities, as detailed in the report of ditional Protocol agreement for further safe- announced that it will soon conclude an February 24, 2004, by the Director General of guards, and would act in accordance with the agreement to supply Iran with enriched nu- the IAEA, along with the statement by the Additional Protocol pending its full entry- clear fuel for the Bushehr nuclear power re- Government of Iran that it will not disclose into-force; actor, ignoring the need to sanction Iran to other research programs, constitute ample

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00068 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.047 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2619 evidence of Iran’s continuing policy of non- United Nations Security Council that Iran is For at least 18 years, the Iranian re- compliance with the letter and spirit of its in noncompliance with its agreements with gime has been pursuing a covert nu- obligations under its Safeguards Agreement the IAEA; clear program. It has undertaken a and the Additional Protocol; (14) urges the President of the United number of efforts for the manufacture (5) demands that Iran immediately and States to provide whatever financial, mate- and testing of centrifuge components, permanently cease all efforts to acquire nu- rial, or intelligence resources are necessary clear fuel cycle capabilities and to imme- to the IAEA to enable it to fully investigate most of which, according to recent diately, unconditionally, and permanently Iran’s nuclear activities; IAEA reporting, are owned by military cease all nuclear enrichment activities, in- (15) urges the United Nations Security industrial organizations. cluding manufacturing and importing re- Council, the Nuclear Suppliers Group, the It has an enrichment facility de- lated equipment; Zangger Committee, and other relevant signed for the simultaneous operation (6) demands that Iran honor its stated international entities to declare that non- of large numbers of centrifuges, and a commitments and legal obligations to grant nuclear-weapon states under the Treaty on large, partially-underground facility at the IAEA inspectors full unrestricted access the Non-Proliferation of Nuclear Weapons Natanz, intended to house up to 50,000 and cooperate fully with the investigation of (NPT), who commit violations of their safe- centrifuges. Concurrently, Iran is pur- its nuclear activities and demonstrate a new guards agreements regarding uranium en- suing another approach to uranium en- openness and honesty about all its nuclear richment or plutonium reprocessing, or en- programs; gage in activities which could support a richment which uses lasers, a complex (7) contrasts Iran’s behavior with Libya’s, military nuclear program, thereby forfeit technology rarely used by even the in which Libya’s decision to renounce and their right under the NPT to engage in nu- most advanced countries because it is dismantle its nuclear weapons program and clear fuel-cycle activities; not cost efficient. to provide full, complete, and transparent (16) further urges the United Nations Secu- Iran has expressed interest in the disclosure of all its nuclear activities has en- rity Council to consider measures necessary purchase of up to six additional nuclear abled the IAEA to rapidly understand and to support the inspection efforts by the power plants and is pursuing a heavy verify with high confidence the extent and IAEA and to prevent Iran from further en- water research reactor at Arak, a type scope of Libya’s program; gaging in clandestine nuclear activities; and of reactor that would be well-suited for (8) calls upon the members of the European (17) urges the President to keep the Con- Union not to resume discussions with Iran on plutonium production. This represents gress fully and currently informed con- yet another path to nuclear weapons, multilateral trade agreements until such cerning the matters addressed in this resolu- time that Iran has verifiably and perma- tion. which endangers not only the region, nently ceased all nuclear weapons develop- but the world. ment activity, including a permanent ces- The SPEAKER pro tempore. Pursu- According to the IAEA report of No- sation of uranium conversion and enrich- ant to the rule, the gentleman from In- vember of last year, the Iranian regime ment and plutonium reprocessing activities; diana (Mr. BURTON) and the gentleman admitted that it had failed to report a (9) further calls upon the European Union from California (Mr. LANTOS) each will large number of activities involving to consider what further measures, including control 20 minutes. nuclear material, including the separa- sanctions, may be necessary to persuade Iran The Chair recognizes the gentleman to fulfill its obligations and commitments to tion of a small amount of plutonium. from Indiana (Mr. BURTON). the IAEA; This same report noted that Iran’s de- (10) in light of ongoing revelations of the GENERAL LEAVE ceptions have dealt with the most sen- noncompliance of the Government of Iran re- Mr. BURTON of Indiana. Mr. Speak- sitive aspects of the nuclear cycle. garding its obligations under the NPT and er, I ask unanimous consent that all Further, the IAEA could not disprove pledges to the IAEA, and in light of the con- Members may have 5 legislative days that Iran’s nuclear program was not for sequent and ongoing questions and concerns within which to revise and extend their weapons development and could not of the IAEA, the United States, and the remarks and include extraneous mate- conclude that it was solely for ‘‘peace- international community regarding Iran’s rial on H. Con. Res. 398. ful purposes.’’ military nuclear activities— Iran’s most recent breaches of its ob- (A) urges Japan to ensure that Japanese The SPEAKER pro tempore. Is there commercial entities not proceed with the de- objection to the request of the gen- ligations include failing to disclose velopment of Iran’s Azadegan oil field; tleman from Indiana? work on advanced P–2 centrifuges for (B) urges France and Malaysia to ensure There was no objection. uranium enrichment and work on Polo- that French and Malaysian commercial enti- Mr. BURTON of Indiana. Mr. Speak- nium 210, an element which could be ties not proceed with their agreement for er, I yield myself such time as I may used in nuclear explosions. further cooperation in expanding Iran’s liq- consume. As a result, Iran has forfeited its uid natural gas production field; Mr. Speaker, I rise in strong support right to develop a nuclear fuel cycle (C) calls on all countries to intercede with of H. Con. Res. 398, a resolution which and should immediately and uncondi- their commercial entities to ensure that tionally cease all nuclear enrichment these entities refrain from or cease all in- condemns Iran’s continued violations vestment and investment-related activities of its obligations and commitments re- activities. that support Iran’s energy industry; and garding its nuclear program; expresses H. Con. Res. 398 enumerates a series (D) calls on the President to enforce the Congress’ grave concern over Iran’s ef- of steps that should be undertaken to, provisions of the Iran and Libya Sanctions forts to develop the means to produce number one, hold the Iranian regime Act of 1996 to discourage foreign commercial nuclear weapons, which threaten not accountable for its nuclear program; entities from investing in Iran’s energy in- only that region, but possibly the and, two, establish a clear precedent dustry; that such proliferation efforts, efforts (11) deplores any effort by any country to world; and calls for a series of steps to be undertaken by various parties to ad- which clearly threaten international provide any nuclear power-related assistance peace and security, will not be toler- dress this threat. whatsoever to Iran, and calls upon Russia to ated. Those who pursue them will have suspend nuclear cooperation with Iran and I am proud to be a cosponsor of this to suffer the consequences. not conclude a nuclear fuel supply agree- measure, and I commend the gen- ment for the Bushehr reactor, until the con- tleman from Illinois (Chairman HYDE) b 1830 ditions of paragraph (8) are satisfied; and the ranking member, the gen- The Iranian Government needs to (12) calls upon the governments of the tleman from California (Mr. LANTOS), countries whose nationals and corporations think very, very strongly about that. are implicated in assisting Iranian nuclear on this bipartisan effort and for their Among the demands it places on the activities, especially Pakistan, Malaysia, the leadership. International Atomic Energy Agency, United Arab Emirates, and Germany, to Mr. Speaker, after getting caught it urges the IAEA Board of Governors fully investigate such assistance, to grant with its hand in the cookie jar, the Ira- to quickly report the Iranian case to the IAEA full access to individuals, sites, nian regime was forced to admit in the the U.N. Security Council for further and all information related to the investiga- fall of 2002 that it had nuclear facilities action, which should include steps to tions, and to immediately review and rectify that it had failed to declare to the prevent Iran from engaging in further their export control laws, regulations, and International Atomic Energy Agency. clandestine nuclear activities. It also practices in order to prevent further assist- From that time onward, Iran has en- ance to countries seeking to develop nuclear urges the U.N. Security Council to de- programs that could support the develop- gaged in a systematic campaign of declare that non-nuclear weapons states ment of nuclear weapons; ception and manipulation to hide its under the NPT who violate their com- (13) urges the IAEA Board of Governors, at true intentions and to keep its large- mitments forfeit their rights under its earliest opportunity, to report to the scale nuclear efforts a secret. this treaty.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00069 Fmt 4634 Sfmt 0634 E:\CR\FM\A05MY7.047 H05PT1 H2620 CONGRESSIONAL RECORD — HOUSE May 5, 2004 As President Bush said on February tion toward anybody other than what lowed to acquire nuclear weapons. We 11 of this year, ‘‘Proliferators must not our interests require.’’ must keep the pressure on Iran, as we be allowed to cynically manipulate the Placing this in further context, I did on Libya, to step off this most dan- NPT to acquire the material and infra- draw my colleagues’ attention to Iran’s gerous path. We must keep the pres- structure necessary for manufacturing display last fall of its newly deployed sure on our friends and allies in the Eu- illegal weapons.’’ advanced medium-range ballistic mis- ropean Union and elsewhere who mis- Mr. Speaker, H. Con. Res. 398 calls siles which military analysts say could takenly believe that continued trade upon the international community, reach Israel or U.S. bases in the Per- and investment will somehow cause the through different venues, to use all ap- sian Gulf. Television photographs of ayatollahs to give up their multiyear propriate means to deter and prevent the display showed one of the missile quest for nuclear weapons. Iran from acquiring nuclear weapons, carriers with a sign that read, ‘‘We will We must also keep the pressure on including ending all nuclear coopera- stomp on America,’’ and that says it the IAEA’s Board of Governors to tion with Iran until certain conditions all, as far as I am concerned. We must again condemn Iran at their June are met. stop their nuclear proliferation pro- meeting and to formally refer Iran’s Given the ongoing developments in gram. breaches of its safeguards and Nuclear the political and economic relationship A terrorist state like Iran must not, Nonproliferation Treaty obligations to of the European Union countries and cannot, be allowed to obtain a nuclear the United Nations Security Council. Iran, the resolution calls upon the EU weapons capability, and we need to do Mr. Speaker, this resolution also sets countries to suspend bilateral trade whatever is necessary to stop them. a new standard for states to have ac- agreements with this pariah state until Let us send a clear message to Iran, cess to technology for peaceful nuclear Iran has verifiably and permanently and to all other potential proliferators, purposes. It declares that Iran, through ceased all nuclear weapons develop- that we will not tolerate this behavior, its repeated and flagrant violations of ment efforts. Also, given the severity we will not sit idly by as Iran threat- its international obligations, has for- of Iran’s proliferation activities and ens our Nation, our interests, and glob- feited the right to be trusted with tech- heeding the lessons from Libya, H. Con. al security. nology that can be misused to produce Res. 398 asks the European Union to go Mr. Speaker, I urge my colleagues to weapons-grade uranium and plutonium. a step further and consider sanctions render their strong support to this res- I urge all of my colleagues to support as a means of compelling Iran to com- olution. this resolution and to send a message Mr. Speaker, I reserve the balance of ply with these international obliga- to Iran and the entire world that my time. tions and expressed commitments. Mr. LANTOS. Mr. Speaker, I rise in enough is enough. It is past time to It calls on governments whose na- strong support of this important reso- isolate Iran economically and dip- tionals, businesses, and other entities lution, and I yield myself such time as lomatically. A nuclear Iran threatens are implicated in assisting Iranian nu- I may consume. us all. Driven by its extremist ide- clear activities to, one, fully inves- Mr. Speaker, I want to pay tribute to ology, it might attack and surely could tigate such a relationship; two, grant the chairman of our committee, the blackmail our friends in the region. full access to the IAEA to conduct its gentleman from Illinois (Mr. HYDE), Iran’s nuclearization would spell the own parallel investigations; and, three, and to my friend, the gentleman from end of the nuclear nonproliferation re- immediately review and rectify export Indiana (Mr. BURTON), for their leader- gime. We must not let that happen. control regulations and practices to ship on this issue. Mr. Speaker, I strongly support this prevent further assistance to countries Mr. Speaker, for over a decade, the resolution. seeking a nuclear weapons capacity. United States has been trying to alert Mr. Speaker, I reserve the balance of These are not just in keeping with the entire world to Iran’s efforts to my time. President Bush’s counterproliferation covertly develop nuclear weapons. Fi- Mr. BURTON of Indiana. Mr. Speak- initiatives as outlined in February of nally, the rest of the world seems at er, I yield 3 minutes to the gentleman this year, but also affirm the tenets of least ready to listen. Now we must con- from Colorado (Mr. TANCREDO), a mem- the U.S.-led resolution adopted by the vince them to act. ber of the committee. U.N. Security Council just last Wednes- For many years, Iran has deceived Mr. TANCREDO. Mr. Speaker, I day. the International Atomic Energy Agen- thank the gentleman for yielding me Mr. Speaker, H. Con. Res. 398 rein- cy and the entire world about the true this time. I just want to add my sup- forces longstanding congressional ef- purpose of its supposedly peaceful nu- port to this endeavor and this resolu- forts to deny terrorists and their state clear energy program. The ayatollahs tion. Certainly, the gentleman from sponsors the funds to pursue and ex- of terrorism have, through the inter- California (Mr. LANTOS), the author of pand their threatening activities, in national nuclear black market, ac- the resolution, and the committee particular, their proliferation activi- quired equipment and facilities to itself and the gentleman from Indiana ties. It calls on all countries to take produce nuclear weapons-grade ura- (Mr. BURTON) have been extremely ar- steps to end investment-related efforts nium. As a result of IAEA inspections ticulate in laying out the points that that in some way support Iran’s energy over the past 15 months, we now know we should pursue and in encouraging us sector. that Iran has acquired designs for so- to bring this resolution and have stat- This is particularly relevant given phisticated uranium enrichment equip- ed, again articulately, why we should plans announced by Iran on Sunday ment and that Iran has been lying support it. I want to add to those issues aiming for a six-fold increase in its pe- about this for years. Iran has even ex- that we have laid out some other trochemical revenues to $20 billion a perimented with materials that could things that are not specifically identi- year by the year 2015. It is further rel- be used to initiate a nuclear detona- fied in the resolution, but I think are evant given, for example, the April 25 tion. important for us to consider. announcement that French oil giant Given that Iran used the same sup- We must recognize that much of Total was awarded a $1.2 billion con- plier network that provided Libya with what we know today about Iran and tract to develop phase 11 of the massive the blueprint for a nuclear warhead, we certainly what we know about its nu- South Pars gas field in Iran. must assume that Iran has an operable clear production capabilities, and not H. Con. Res. 398, therefore, also calls nuclear bomb design. just capabilities, but what they have for immediate enforcement of the Iran Iran is rightly condemned as a state already done, comes to us not as a re- and Libya Sanctions Act with respect sponsor of terrorism responsible for sult of information identified by the to Iran. funding numerous terrorist groups that international inspection regime. It Mr. Speaker, in closing, I would sim- murder and maim innocent civilians. comes to us as a result of the fact that ply like to refer to a recent statement Imagine then, Mr. Speaker, this ter- Iranian dissidents have, at great risk, made by Iran’s so-called moderate rorist state armed with nuclear weap- made this information available to the leader, Mohammad Khatami, while ons. West. Iran was blocking access to IAEA in- This is the threat we face. Iran must On more than one occasion, these spectors. He said Iran ‘‘has no obliga- not under any circumstances be al- Iranian dissidents have provided us

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00070 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.120 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2621 with information that we now know to This resolution is not and cannot be on is as detectable, it is as large as a be accurate. It has become invaluable construed to be an authorization for person. in many ways, and they should be cred- the use of force against Iran. It calls Thus, a nuclear weapon created in ited for what they have done. It is also upon all of the state parties to the Nu- Iran could be smuggled into any of our important to note that many of these clear Nonproliferation Treaty to take districts. Keep in mind that the gov- people who have taken refuge in Iraq all appropriate measures to deter, dis- ernment in Iran has sought again and are under the control and the protec- suade, and prevent Iran’s acquisition of again to kill as many Americans as tion right now of American forces over nuclear weapons, including economic possible. It is harboring top operatives there. It is also I think important to sanctions and international pressure. of al Qaeda, including bin Laden’s own understand that Iran, the mullahs in b 1845 son. It is harboring the individual who Iran are today demanding that these caused the bombings in Rihad that people be returned, forcibly returned to The international sanctions on Libya killed 7 Americans. It is responsible for Iran to face certain death. It is incon- were ultimately successful in con- the deaths at Khobar Tower and earlier ceivable I think that we would agree to vincing Colonel Qaddafi to give up all deaths of our people in Saudi Arabia, such a situation, especially in light of of his programs to develop weapons of killing at least 2 dozen Americans. mass destruction. This is the model the information that they have pro- This is a government in Iran which, that the world community needs to vided and the valuable asset that they if it has nuclear weapons, will marry a pursue with Iraq. in fact are in that part of the world. desire to kill Americans with a capac- Mr. BAIRD. Mr. Speaker, I thank my We also recognize that much of the ity to kill us by the hundreds of thou- difficulty we now face in Iraq is a re- colleague for that clarification. I in- sands. sult of Iran’s interference, sending peo- tend to support this most worthy pro- Now, this is a great resolution. But it ple across that border, inflaming the posal, and I think it is important that passions that we now witness in the we establish for the record that this is only a resolution. What we need to form of acts of violence against Ameri- Congress is not intending with this leg- do is to marry our desire to rein in the cans and American troops over there. islation to authorize the use of force nuclear program with a real bill with So all of these things, as I say, I am without approval of the Congress. real teeth. I have introduced to this glad they have been said, but I just did Mr. LANTOS. Mr. Speaker, I yield 5 House, and we have quite a number of not want to let this resolution go by minutes to the gentleman from Cali- co-sponsors for the Iran Freedom and Democracy Support Act. That Act without a reference to the people who fornia (Mr. SHERMAN). have worked so hard to bring the infor- Mr. SHERMAN. Mr. Speaker, I speak would provide real money to those mation forward and who have struggled as the ranking Democrat on the sub- working for peace and democracy in for a long time for a free Iran. They are committee that deals with terrorism Iran. That Act would impose real eco- dedicated to that proposition. They are and proliferation of weapons of mass nomic sanctions and we need to pass dedicated to a free secular country, a destruction. this resolution today or tomorrow and democratic country over there, and I I want to clarify of the backgrounds then go on to deploying real money and think it would be certainly heartless, that we face with Iran. First, Iran has real economic sanctions in an effort to it would be a tragedy if we were to a large amount of natural gas. This deal with the Iranian program. abandon them, if we were to actually natural gas is flared. They do not need Look at what happened with Libya. allow them to be returned to, as I say, to generate electricity with nuclear They faced multi-lateral economic certain death in that country. plants. In fact, they can without pollu- sanctions and they agreed to abandon So I just wanted to add that dimen- tion and at very low costs generate their nuclear program. Now, they are sion to this debate. Again, I thank the electricity using the natural gas that getting for an investment, they are gentleman from Indiana (Mr. BURTON), goes to waste under the present sys- getting international air flights, et the gentleman from California (Mr. tem. cetera. This administration promised LANTOS), and the committee for bring- Second, we talk here of the Iranian us an aggressive defense of America. ing this resolution forward. government. That is very different And it has given us only an invasion of Mr. LANTOS. Mr. Speaker, I am very from the Iranian people who among all Iraq which had apparently no weapons pleased to yield 2 minutes to my friend, the peoples of the Middle East are of mass destruction at all. North Korea the gentleman from the State of Wash- among those who are most pro-Amer- has 3 years further in developing its ington (Mr. BAIRD). ican and, frankly, who are not terribly nuclear weapons. Iran has proceeded Mr. BAIRD. Mr. Speaker, I thank my interested in seeing their country ac- virtually unimpeded, and we have not good friend and colleague, the ranking quire nuclear weapons. We should re- used the tools available to us, not to member of this committee, and the invade but to dissuade. chairman for their initiative. I think it member that weapons of mass destruction is a rather vague term that en- We have the Iran-Libya Sanctions is long past time for this Nation to ex- Act. We used it against Libya. We press grave concern and work with the compasses mustard gas on the one hand and nuclear weapons on the failed again and again to use it and international community to thwart waived it again and again when our so- Iran’s efforts to develop nuclear weap- other, and we should not be confused. Since World War I, I doubt more than called allies invested billions of dollars ons, and I applaud them for this resolu- in the Iranian oil sector. tion. a dozen Americans have been killed I do, however, feel compelled to ask using chemical or biological weapons. Mr. Speaker, just recently we gave a an inquiry of the chairman and the And while Saddam killed many using wink and a nod to a $2.8 billion Japa- ranking member, and it is this: we mustard gas, he did so against highly nese investments in the Iranian oil sec- have seen, I believe, a growing concern unsophisticated civilians in a third tor. We have given winks and nods as about possible usurpation by the ad- world situation. half a billion dollars has gone from the ministration of congressional author- In contrast, nuclear weapons if used World Bank, 25 percent of it is our ity, particularly in regard to war-mak- in an American city would kill hun- money, goes to this government that is ing and the use of force. I thoroughly dreds of thousands of people or millions developing nuclear weapons to kill our intend to support this sound resolu- of people. We can not put these in the people, and year after year, we allow tion. I just would like clarification same category. And let us not think $150 million worth of caviar and car- that the resolution does not, in its ef- that a missile defense system will save pets to come into this country pro- forts to rein in the Iranian nuclear pro- us. Iran would like to have interconti- viding a market to industries con- gram, authorize the President to use nental ballistic missiles and the glory trolled by some of the most regressive force. of just being able to push a button and forces in Iran. I yield to my distinguished ranking see the missile fly off. But the govern- It is time for to us bring real eco- member to address this. ment of Iran sees it is as easy to smug- nomic sanctions starting with our own Mr. LANTOS. Mr. Speaker, I thank gle a nuclear weapon into the United trade and stopping that $150 million of my friend for yielding, and I am very States as it is to smuggle into person imports. Then turning to our allies and pleased to respond to his inquiry. or a bale of marijuana. A nuclear weap- saying enough is enough. If you want

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00071 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.121 H05PT1 H2622 CONGRESSIONAL RECORD — HOUSE May 5, 2004 to help us, bring the economic pres- that the United States, without nec- ‘‘urges the IAEA Board of Governors at sure. Then the people of Iran will rec- essarily receiving any support from the its earliest opportunity to report to ognize that they can not allow their world community, and without the the United Nations Security Council leaders to proceed down this nuclear concurrence of the United Nations, that Iran is in non-compliance with its road. That it is bad for world stability could act unilaterally. This combina- agreements with the IAEA; urges the and bad for their own economy. tion calling on all state parties to use President of the United States to pro- And we are not asking for participa- all appropriate means to prevent Iran vide whatever financial, material, or tion in an invasion. Just for strict eco- from acquiring nuclear weapons and intelligence resources are necessary to nomic sanctions. We can use our eco- calling upon the United States to use the IAEA to enable it to fully inves- nomic power to do it, or we can con- all appropriate means, this combina- tigate Iran’s nuclear activities; urges tinue the feckless policy that marked tion endorses the doctrine of preven- the United Nations Security Council, our behavior before September 11. tive war. the Nuclear Suppliers Group, the This is a great resolution. We should This country was dragged into war Zangger Committee, and other relevant pass it. It is only a resolution. It is with Iraq based on false statements to international entities to declare that time to bring real economic sanctions Congress. Iraq has proved to have been non-nuclear weapons states under the to bear. Otherwise, this resolution will of little threat to the United States, Treaty on the Non-Proliferation of Nu- pass. They will laugh at us in Tehran, but that did not stop the war’s authors clear Weapons, NPT, who commit vio- and they will go forward with their nu- from going forward with the arguments lations of their safeguards agreements clear program. that Iraq could one day be a threat. regarding uranium enrichment or plu- Mr. BURTON of Indiana. Mr. Speak- In this historical context, I believe it tonium reprocessing, or engage in ac- er, I yield myself such time as I may is vitally important to call this to the tivities which could support a military consume. attention of Congress so that Congress nuclear program, thereby forfeit their Mr. Speaker, I just wanted to com- can avoid giving its endorsement of right under the NPT to engage in nu- pliment my colleague on a very fine what could prove to be an unprovoked clear fuel-cycle activities.’’ statement. attack, unilateral regime change It further states on page 13, and I Mr. LANTOS. Mr. Speaker, I yield 4 again. hope this will allay some of his con- minutes to the gentleman from Ohio So I oppose this resolution and I ask cerns, under section 16, ‘‘further urges (Mr. KUCINICH). my colleagues to vote no. the United Nations Security Council to Mr. KUCINICH. Mr. Speaker, I want- Mr. BURTON of Indiana. Mr. Speak- consider measures necessary to support ed to thank the gentleman from Cali- er, I yield myself such time as I may the inspection efforts by the IAEA and fornia (Mr. SHERMAN). And to the gen- consume. to prevent Iran from further engaging tleman from Indiana (Mr. BURTON), I Mr. Speaker, let me start off by say- in clandestine nuclear activities; and salute your concern about Iraq’s nu- ing you cannot take one section of the urges the President to keep the Con- clear activities. I join you in stating bill, and I have great respect for the gress fully and currently informed con- that I do not want Iran to acquire nu- gentleman from Ohio (Mr. KUCINICH). cerning the matters addressed in this clear weapons. However, I cannot sup- He and I have been colleagues and have resolution.’’ port this resolution. worked together on a number of bills, I do not think there is anything in I believe that if Members read the and I have a very high regard for him. there, and the gentleman and I are text carefully, they may agree. This However, let us look at the whole bill good friends, that would give the Presi- resolution includes an endorsement I and not just one or two phrases in it, dent carte blanche to go ahead and in- believe of the doctrine of preventive because I think it clarifies the whole vade Iran or start a war with them. Al- war. Preventive war is attacking an- intent of the bill and I think it illumi- though, I think it is important that other country that does not pose an nates the concern I think that the gen- Iran feel a little uncertainty, although imminent threat but which some might tleman has. I do not think this bill does it, a little argue could pose a threat. This is not a If we look on page 8 where the gen- uncertainty about what might happen legitimate or legal reason for going to tleman was just talking about, it says if they continue this program. war. It ends up being an illegal war or ‘‘calls upon all state parties to the b 1900 war not in self-defense. Treaty on the Non-proliferation of Nu- Mr. KUCINICH. Mr. Speaker, will the To be specific, the doctrine is, I be- clear Weapons, NPT, including the gentleman yield? lieve, contained in part 2 of the resolu- United States, to use all appropriate Mr. BURTON of Indiana. I yield to tion which reads, ‘‘Calls upon all state means to deter, dissuade, and prevent the gentleman from Ohio. parties to the Treaty on Non-Prolifera- Iran from acquiring nuclear weapons, Mr. KUCINICH. Mr. Speaker, I want tion of Nuclear Weapons, including the including ending all nuclear and other to say that I think that the gentleman United States, to use all appropriate cooperation with Iran, including the from Indiana (Mr. BURTON) and the means to deter, dissuade, and prevent provision of dual use items, until Iran gentleman from California (Mr. LAN- Iran from acquiring nuclear weapons.’’ fully implements the Additional Pro- TOS) serve this country well and that This clause contains two elements of tocol between Iran and the IAEA for there are probably no people stronger preventive war. The first is a tacit en- the application of safeguards.’’ in defense of America than both of dorsement of regime change, ‘‘all ap- But then we go over to page 10. Un- them. I have total confidence in that, propriate means to prevent Iran.’’ derstand section 9 there it says it ‘‘fur- and I just want to express my apprecia- All appropriate means is nearly the ther calls upon the European Union to tion for being able to express my mis- same language used in Senate Joint consider what further measures, in- givings about the language of this bill, Resolution 54, which the Congress cluding sanctions, may be necessary to but I want to thank the gentlemen for passed in 1998. That resolution called persuade Iran to fulfill its obligations the service that they are giving in ex- upon the President to ‘‘take appro- and commitments to the IAEA.’’ pressing the importance of this. priate action to bring Iraq into compli- Then you go to page 11, section C, Mr. BURTON of Indiana. Mr. Speak- ance.’’ and it says, ‘‘calls on all countries to er, I reserve the balance of my time. We did not know then that such lan- intercede with their commercial enti- Mr. LANTOS. Mr. Speaker, I yield guage would be construed only 5 years ties to ensure that these entities re- myself such time as I may consume. later to mean that the Congress en- frain from or cease all investment and Before closing, Mr. Speaker, I would dorsed regime change in Iraq, but that investment-related activities that sup- like to respond to my friend from Ohio is what the administration construed it port Iran’s energy industry.’’ by saying that it is not the intention of to mean. Go down to line 15 and it says, ‘‘calls this author of this resolution to view Second, I believe this clause envi- upon Russia to suspend nuclear co- this resolution as one authorizing uni- sions unilateral action by the United operation with Iran.’’ lateral use of force against Iran. States. It ‘‘calls upon the United The thing that I think will really With that, Mr. Speaker, I urge all of States to use all appropriate means.’’ allay some of the gentleman’s con- my colleagues to support this resolu- That means it is a policy of Congress cerns, on page 12, section 13, it says, tion.

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00072 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.124 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2623 Mr. Speaker, I yield back the balance WMD disclosure was not sufficient. No one Iran’s nuclear program are even more trou- of our time. should doubt our resolve in keeping weapons bling in light of Iran’s extensive ties to inter- Mr. BURTON of Indiana. Mr. Speak- of mass destruction out of the hands of terror- national terrorist organizations. er, I yield myself such time as I may ists. We cannot trust the ayatollabs in Tehran According to the just-released State Depart- consume. to responsibly handle technology that could be ment report on Patterns of Global Terrorism, Before I yield back the balance of my used against American civilians. If the Non- ‘‘Iran remained the most active state sponsor time, I just hope that the Iranian lead- proliferation regime is broken, it must be fixed. of terrorism in 2003.’’ The report notes that ers realize that when they continue Quickly. some members of al-Qaeda ‘‘have found vir- down this path, they ultimately not I urge my colleagues to support this resolu- tual safehaven’’ in Iran, while Iranian authori- only endanger the entire Middle East tion. ties continue to provide Hezbollah, Hamas, and maybe areas beyond, and who Mr. HOYER. Mr. Speaker, while all of us Palestinian Islamic Jihad and other radical ter- knows maybe ultimately the United rightly focused on the continuing effort to se- rorist organizations with ‘‘funding, safehaven, States, but they endanger their own secure and stabilize Iraq, none of us can close training, and weapons.’’ curity as well; and it would be far bet- our eyes to the ominous and growing danger Iran also continues an aggressive program ter for them to start thinking about posed by the government of Iran. to develop ballistic missiles. According to the complying with the U.N. resolutions That is why I strongly support this important Congressional Research Service, Iran has and stopping their nuclear program be- bipartisan resolution brought to the floor today hundreds of short-range missiles, and possibly fore there are problems down the road. by the chairman and ranking democrat on the 10–20 long-range Shahab–3 missiles, which This resolution, as my colleague, the Committee on International Relations (Mr. may be capable of carrying a nuclear war- gentleman from California (Mr. LAN- HYDE and Mr. LANTOS). head. TOS), just said, does not give the Presi- This resolution condemns in the strongest Mr. Speaker, Iran has absolutely no need dent unilateral authority. possible terms Iran’s continuing deceptions Mr. BLUNT. Mr. Speaker, the resolution we for a nuclear deterrent. Over the last two and and falsehoods to the International Atomic En- a half years, we have taken care of Iran’s only are considering today directly confronts what ergy Agency and the international community may become a clear and present threat to two enemies—the Taliban and Saddam Hus- about its nuclear programs and activities. sein. American security. For example, Iran failed to properly disclose For 18 years, the government of Iran has Nor does Iran—with 7 percent of the world’s the existence of a fuel enrichment plant and hidden information on its nuclear program proven oil reserves and the second largest facility at Natanz, until both were revealed by from international inspectors. Iran is a signa- natural gas reserves on the planet—have a an opposition group. tory to the Treaty on the Non-Proliferation of demonstrated need for civilian nuclear power. It confirmed that it had conducted research Nuclear Weapons, a regime which is effective We must continue to make it clear—to our on uranium conversion processes, but only only as long as its signatories are fully com- European allies, who have generally favored a after it denied doing so. mitted to full and complete disclosure of any more conciliatory approach to Iran—and to the According to a February report by the direc- nuclear program for any purpose. The inter- unelected rulers in Tehran, who continue to tor general of the IAEA, Iran continues to en- national community has already given Iran the lead the Iranian people down this perilous gage in deception regarding its nuclear activi- benefit of the doubt. With its rich natural re- path—that we will not sit idly by and allow Iran sources, the country does not even need the ties. to become a nuclear weapons state. This resolution also calls on the United atomic energy it claims to be producing for This resolution is an important part of that States, as well as all state parties to the treaty peaceful purposes. Why in the world would a effort, and I urge its adoption. country soaked in oil require a nuclear fuel on Non-Proliferation of Nuclear Weapons, to Mr. BURTON of Indiana. Mr. Speak- cycle and the enriched uranium that goes use (and I quote) ‘‘All appropriate means to er, I yield back the balance of my time. along with it? Mr. Speaker, it does not take a deter, dissuade, and prevent Iran from acquir- The SPEAKER pro tempore (Mr. detective to smell a rat on this one. ing nuclear weapons.’’ COLE). The question is on the motion This is very serious business. There is no The fact is, our national security demands offered by the gentleman from Indiana greater nightmare for this generation of Ameri- that we do everything in our power to prevent (Mr. BURTON) that the House suspend cans that the idea of a 9/11-style attack involv- Iran from developing and acquiring nuclear the rules and agree to the concurrent ing weapons of mass destruction. Ongoing re- weapons. resolution, H. Con. Res. 398. search into Libya’s weapons program, which The Iranian government is hostile to the in- The question was taken. appears to be a model for compliance and dis- terests of the United States. It is a state spon- The SPEAKER pro tempore. In the armament among all rogue states, dem- sor of terrorism. opinion of the Chair, two-thirds of onstrates that the shadowy network of nuclear It is a committed enemy of the state of those present have voted in the affirm- proliferation is even deeper and more fright- Israel, our staunch ally and the lone democ- ative. ening than we had previously suspected. Put- racy in this most volatile region. Mr. LANTOS. Mr. Speaker, on that I ting our trust in Iran’s undemocratic, fun- It is vital that we speak with one voice on demand the yeas and nays. damentalist leadership to voluntarily safeguard this issue of utmost gravity. I urge my col- The yeas and nays were ordered. this technology of terror is not an option. leagues to support this resolution. The SPEAKER pro tempore. Pursu- With this resolution, we demand that Iran Mr. BERMAN. Mr. Speaker, Iran has repeat- ant to clause 8 of rule XX and the honor its stated commitments and obligations. edly denied that it is trying to develop nuclear Chair’s prior announcement, further The Iranian regime must grant the IAEA in- weapons. But it is increasingly difficult to con- proceedings on this motion will be spectors full unrestricted access and cooper- ceive of any other plausible explanation for its postponed. ate fully with the investigation of its nuclear efforts to enrich uranium and develop other activities. And our efforts to secure coopera- nuclear-related capabilities. And even harder f tion must be in concert with our European al- to understand why else it would try so hard to lies and other responsible members of the conceal these activities from the international ANNOUNCEMENT BY THE SPEAKER international community. As we learned on community. As reported by the International PRO TEMPORE March 11th of this year, no one in the civilized Atomic Energy Agency, Iran has failed time The SPEAKER pro tempore. The world is safe from terrorism. and time again to comply with its obligations Chair will recognize Members for Spe- And we must be diligent, earnest, and seri- under the Nuclear Nonproliferation Treaty. It cial Order speeches without prejudice ous in our message. This means that, in the has also failed to provide a full disclosure of to the possible resumption of legisla- short term, the IAEA must report that Iran is all nuclear activities to the IAEA, and engaged tive business. in noncompliance with its obligations under the in a pattern of lies and deception. Nonproliferation Treaty; the European Union Since Iran’s covert nuclear program was ex- f and other allies in the war on terror must be posed to the world in February 2003, IAEA in- SPECIAL ORDERS active partners in sanctioning the Iranian re- spectors have found traces of highly enriched gime economically; and the President should uranium, discovered that Iran had reprocessed The SPEAKER pro tempore. Under act to enforce the appropriate provisions of the a small amount of plutonium, and forced Ira- the Speaker’s announced policy of Jan- Iran and Libya Sanctions Act of 1996. nian officials to reveal critical information uary 7, 2003, and under a previous order Mr. Speaker, American troops have already about advanced centrifuge designs and com- of the House, the following Members deposed a regime whose cooperation on ponents. These and other revelations about will be recognized for 5 minutes each.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00073 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.126 H05PT1 H2624 CONGRESSIONAL RECORD — HOUSE May 5, 2004 The SPEAKER pro tempore. Under a Phil Kosnett, who heads the Coali- She was legendary for looking after previous order of the House, the gen- tion Provisional Authority in Najaf, every detail, even writing out the in- tleman from Indiana (Mr. BURTON) is also has nothing but praise for the structions for her own funeral. She had recognized for 5 minutes. nearly 400 Salvadoran troops fighting directed her former Washington Star (Mr. BURTON of Indiana addressed shoulder to shoulder with American colleague, Phil Gailey, to talk about the House. His remarks will appear troops in Iraq. In fact, he is so im- her beloved Star in the eulogy, and she hereafter in the Extensions of Re- pressed with their valor and dedication told him: ‘‘Don’t go blubbering on me marks.) to duty, he has nominated six of them the way you do when you read a dog f for the Bronze Star, and for good rea- story with a sad ending.’’ ORDER OF BUSINESS son. The AP story goes on to explain Mary’s insight and her industry were that Kosnett himself believes he owes matched only by her eloquence. We Mr. TANCREDO. Mr. Speaker, I ask his life to them. Salvadoran troops, the loved Mary for choosing every word unanimous consent to take my Special story continues, ‘‘repelled a well-exe- with care. Order at this time. cuted insurgent attack on Kosnett’s Mary had a vocabulary that would The SPEAKER pro tempore. Is there three-car convoy in March.’’ send her editor reaching for his dic- objection to the request of the gen- Mr. Speaker, let us pay tribute to the tionary, and when she wrote about a tleman from Colorado? sacrifices and heroism of our soldiers, There was no objection. retiring Congresswoman once that her as well as those of our allies, like Cor- ‘‘black eyes still snap with the old f poral Toloza, for their efforts and con- fire,’’ she gave her readers in eight PAYING TRIBUTE TO THE VAL- tributions to protecting freedom and words a better understanding of the IANT EFFORTS OF COALITION on their efforts in the war on terror. congresswoman than lesser writers did SOLDIERS IN IRAQ f in eight paragraphs. The SPEAKER pro tempore. Under a CELEBRATING THE LIFE OF MARY From the Army-McCarthy hearings previous order of the House, the gen- MCGRORY that brought her to Washington’s at- tleman from Colorado (Mr. TANCREDO) tention, to her Watergate coverage for The SPEAKER pro tempore. Under a is recognized for 5 minutes. which she won the Pulitzer Prize, to Mr. TANCREDO. Mr. Speaker, the previous order of the House, the gentle- her chronicling of the Iraq War debate woman from California (Ms. PELOSI) is news media is quick to provide gratu- which proved to be her swan song, her recognized for 5 minutes. itous coverage of anti-war protests in writing enriched our national dialogue. Ms. PELOSI. Mr. Speaker, it is with Europe and elsewhere. They are quick a great deal of sadness that I rise to Those of us who were inspired by Presi- to provide a forum for critics of U.S. pay tribute to Mary McGrory, who dent John F. Kennedy, as she was, took policy in Iraq and even quicker to high- passed away 2 weeks ago at the age of sad solace in her loving reporting on light the problems, misfortunes, and 85. During her magnificent career with his assassination. missteps of our coalition forces in Iraq. Here, in the Congress, we were so for- What they rarely do, however, is to the Washington Star and The Wash- ington Post, Mary informed and en- tunate to have the opportunity to highlight the contributions and valor honor Mary McGrory in March and to of our coalition soldiers. gaged her readers on every major event of the past half century. see the outpouring of affection and Take, for example, the case of Salva- gratitude for her career. We were doran Corporal Samuel Toloza. Accord- Mary was a keen observer, an elegant writer and a tenacious journalist; and joined by many Members of the House ing to a recent Associated Press story, of Representatives, many members of ‘‘One of his friends was dead, 12 others she was an inspiration to so many women. It was a joy to read her col- the United States Senate, many of her lay wounded and the four soldiers still colleagues from the press corps. We left standing were surrounded and out umns, and of course, we miss her terribly. That is why I am so pleased to were her fans, and we were there for of ammunition. So Toloza said a pray- her. er, whipped out his . . . knife and join my colleagues here today, the gentlewoman from New York (Ms. SLAUGH- God blessed America with Mary charged the Iraqi gunmen.’’ McGrory, a beautiful writer, a wonder- The story goes on, ‘‘In one of the TER), who was a very close personal ful person. Her passing is a tremendous only known instances of hand-to-hand friend of Mary McGrory, and our col- loss for us all. combat in the Iraq conflict, Toloza league, the gentleman from Massachu- She loved Boston. She loved being stabbed several attackers who were setts (Mr. MCGOVERN), who is in the swarming around a comrade. The Chamber now, as well as our colleague, Irish, but she also loved Italy; and she stunned assailants backed away mo- the gentleman from Massachusetts had a bond always with the Italians. mentarily, just as a relief column came (Mr. MARKEY), who had the honor of She visited Italy frequently. to their rescue.’’ being pallbearers for Mary. What a She loved her garden. We all know According to the reports, Toloza and tribute. how much she loved her garden. One 16 other members were trapped by We loved Mary for her insights. No could talk all day about Mary McGrory members of Muqtada al-Sadr’s al- matter how many reporters covered an and never be able to capture her in the Mahdi militia. They initially did not event, Mary always found the small de- way she would capture her. Nonethe- fire their weapons for several hours, for tail that had large implications others less, it was an honor and a privilege, fear of inflicting civilian casualties, de- may have overlooked. and, indeed, a joy to be able to call her spite the fact that insurgents were She noted the manner in which Rich- friend. peppering the group with small arms ard Nixon’s staff reacted to his retire- Again, I know that I speak for many fire and rocket-propelled grenades. Fi- ment press conference in 1962, the bear- in this Chamber who will say thank nally, after fighting back, the group, ing of Secretary of Army Robert Ste- you, Mary, for what you have given us. comprised of Salvadoran and American vens during the Army-McCarthy hear- Thank you for being a blessing to our soldiers, ran out of ammunition. Faced ings, and so many other fine points. At country. We will miss you sadly. with mounting casualties, they placed times, it seemed that Mary grasped the Thank you. wounded soldiers on transports and significance of everything that she f tried to make their way back to the saw. WASHINGTON WASTE WATCHERS base. Unfortunately, they ran into a She saw nearly everything. We loved contingent of about 10 insurgents on Mary for her diligence. She was one of The SPEAKER pro tempore. Under a the way. That is when Toloza, out of the hardest-working people in Wash- previous order of the House, the gen- ammunition, rushed the insurgents ington. Even into her eighties, she tleman from Texas (Mr. HENSARLING) is with nothing but his knife, buying would come to Capitol Hill to see first- recognized for 5 minutes. enough time for reinforcements to ar- hand the events of the day. Mr. HENSARLING. Mr. Speaker, I rive. She was always willing to have a cub rise again this week as part of the ‘‘We never considered surrender,’’ reporter, even a senior editor, take her Washington Waste Watchers, a Repub- Toloza reportedly said, ‘‘I was trained bags; but she would never ask someone lican working group dedicated to root- to fight until the end.’’ else to take her notes. ing out the rampant waste, fraud and

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00074 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.128 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2625 abuse that permeates every corner of outrageous overtime costs of $8.6 mil- Let me quote President Kennedy. the Federal bureaucracy. lion over a 3-year period, failed to col- ‘‘An error does not become a mistake I hope that soon the House of Rep- lect delinquent accounts totaling $12.6 until you refuse to correct it. Without resentatives will be able to vote on a million, and failed to charge customers debate, without criticism, no adminis- conference report for the fiscal year for a half million cost of water line ex- tration and no country can succeed, 2005 budget. Now, we have historically tensions, all of this while using money and no republic can survive.’’ a large deficit in this Nation; and at from the Federal taxpayer. Yet Demo- President Kennedy possessed the this time, many of my Democrat col- crats want to raise taxes that will pay kind of leadership that allowed him to leagues suggest that it is time to yet for more of this? acknowledge mistakes and accept re- again raise taxes on American families. In another example, the National sponsibility. But now there is a dif- Just last week, many voted against Park Service spent $800,000 on an out- ferent standard, and today America re- marriage penalty tax relief, the very house, and it does not even work. The ceived this response from House major- same marriage penalty that would only thing it flushes is more of the ity leader, the gentleman from Texas raise taxes on 30 million married cou- American worker’s hard-earned money (Mr. DELAY), commenting on the possi- ples by $369 next year. down the drain. The list goes on and on bility of a congressional investigation Many Democrats keep demanding and on. into the scandal of Iraq and the torture that we roll back the tax relief that is Mr. Speaker, these are just a few ex- of its prisoners, ‘‘A full-fledged inves- responsible for the unparalleled growth amples of waste in just one Federal tigation, that is like saying we need in our economy, the tax relief that is agency. The problem is we have over hearings on every case of police bru- creating jobs; and the tax relief, if we 10,000 Federal programs spread across tality. I do not think they are war- look at the budget, amounts to 1 per- 600 different agencies with little ac- ranted.’’ cent of the $28.3 trillion, trillion with a countability to anyone. Republicans This Congress has an obligation to T, 10-year spending plan that we ap- are trying to work to root out this our constituents, to our country, to proved last year. waste of the American tax dollars. This ask the how and the why about Iraq So if they are truly concerned about should be a bipartisan issue, but many and seek answers. While refusing to the budget deficit, perhaps they should of our Democrat colleagues continue to hold hearings on Iraq, here is a list of focus on 99 percent of the challenge, fight us. what Congress has passed since the and that is, the spending side of the Last year our Committee on the Easter break: Named, the John J. Per- equation, much of which, Mr. Speaker, Budget passed out a budget asking for shing Post Office; named, the Wilkie D. unfortunately proves to be waste, fraud authorizing committees to identify Ferguson Courthouse; named, the and abuse. just 1 percent waste, fraud and abuse; Dosan Ahn Chang Ho Post Office; We must all realize that the deficit is just 1 percent. Yet Democrat leaders named, the Rhode Island Veterans Post the symptom. It is spending that is the ridiculed the effort. One termed it a Office; named, the Richard G. Wilson disease. It is only the fourth time in senseless and irresponsible exercise. Postal Facility; named, the Paul the history of our Nation the Federal Mr. Speaker, I believe most Ameri- Simon Federal Building; named, the Government is now spending over cans would disagree with that state- James V. Hansen Federal Building; $20,000 per household. This figure is up ment. In fact, I believe most would say named, the Ronald Reagan Federal from just 5 years ago of $16,000 per saving taxpayer money and rooting out Building; commended the Garden Club household, representing the largest in- waste is common sense and the respon- of America; urged the release of Wang crease in the Federal Government in 50 sible thing to do with their money. The Bingzhang; recognized the importance years. truth is there are many ways we can of music education; congratulated the We have a spending problem in Wash- save money in Washington without University of Connecticut basketball ington, not a taxing problem; and I, for cutting any needed services and with- teams; congratulated the University of one, say it is not time to raise taxes on out raising taxes on our hard-working Denver men’s hockey team; congratu- the American family as many Demo- American families because when it lated Kennesaw State University men’s crats seek to do, but it is time to get comes to Federal programs, it is not basketball team; authorized the use of serious about rooting out the waste, how much money that Washington Capitol grounds for the Soapbox Derby; the fraud, the abuse. spends that counts, it is how Wash- authorized the use of Capitol grounds ington spends the money. for the Police Officers’ Memorial; hon- b 1915 f ored Melvin Jones and Lions Clubs; In other words, it is time to take out supported the goals of Financial Lit- the trash in Washington. Let me give a CONGRESSIONAL OBLIGATION TO eracy Month; supported the Green few examples of waste in just one gov- SEEK ANSWERS Chemistry Research and Development ernment agency. The Interior Depart- The SPEAKER pro tempore (Mr. Act; authorized the Congressional ment’s Inspector General revealed that COLE). Under a previous order of the Medal for Math and Science Education; the Department now manages approxi- House, the gentleman from Illinois supported Taiwan’s entry into WHO; mately 31,000 separate Web sites, pre- (Mr. EMANUEL) is recognized for 5 min- promoted freedom and democracy in senting between 3 and 5 million pages utes. Laos; recognized the importance of in- of information with maintenance costs Mr. EMANUEL. Mr. Speaker, today creasing autism awareness; increased approaching $220 million a year. Now, in Iraq, 138,000 American troops are Capital Access for Growing Business AOL-Time Warner, who I believe is the putting their lives on the line. Despite Act; and congratulated charter schools, largest Internet service provider in the the President’s ‘‘Mission Accom- to name a few. world, manages in contrast about 50 plished’’ declaration, more of our brave As worthy as this legislation may be sites, but the Interior Department service men and women died last and while we passed all of this unani- manages 31,000 different Web sites. In month since any month since the war mously, here is what our brave men an agency that employs 70,000, that in Iraq. Deputy Defense Secretary Paul and women we all love to acknowledge means the Department of Interior has Wolfowitz does not know how much the and respect, here is what their head- almost one Web site for every two em- war costs, or that 764 Americans have lines said: Insurgents kill 12 Marines in ployees. died, but that is typical of an adminis- Sunni Triangle; al Qaeda claims re- Yet Democrats want to raise our tration that refuses to admit its mis- sponsibility for attacks in Iraq; As taxes that would pay for more of this? takes or explain its policies. multifront uprising continues, U.S. The Inspector General also reported The images of tortured prisoners, loses control of Najaf, Kufa to Shiite at the Interior Department that we broadcast throughout the world, have Militia; Marines were Ambushed in awarded $44 million in Federal condone irreparable damage to our mission Ramadi; Three more Marines killed in tracts to the CEO of a tribal Indian and credibility in the Middle East. Iraq; Two U.S. troops killed; Sanchez corporation who stole and laundered a Still the majority of the House and the declares current troop strength ade- half million dollars in Federal funds. chairman of the Committee on Armed quate as casualties mount; Fate of The Guam Waterworks Authority, Services said congressional hearings American hostage in Iraq still un- which receives Federal grants, incurred are unnecessary. known; Apache helicopter reported

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00075 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.130 H05PT1 H2626 CONGRESSIONAL RECORD — HOUSE May 5, 2004 down; Nine Americans missing; Thirty- Mr. Speaker, last week the House billion in supplemental spending last four foreign civilian kidnapped in Iraq; voted unanimously to allow military year. Five soldiers killed; April worst month reservists and National Guardsmen to SMART security means creating a for U.S. casualties; Pentagon extends make penalty-free withdrawals from permanent post-conflict unit that pro- tour of 20,000 troops in Iraq; Violence their retirement accounts when they vides the first layer of reconstruction delays reconstruction projects; Ten are called up for an extended period of in countries that have been devastated U.S. soldiers killed across Iraq; U.S. active duty. Penalty-free withdrawals by war and/or by oppressive dictators troops in Iraq say Pentagon is failing from their very own retirement ac- like Iraq and Afghanistan. And SMART to keep them equipped; Coast Guard counts. would mean funding all Army peace- seen as underfunded; General says This bill seeks to help the one-third keeping units devoted to studying and Humvees are not up to the job in Iraq; of Reservists who took a pay cut when preparing for future peacekeeping mis- Baghdad sniper kills American soldier; called to duty in Iraq. Every Member of sions. Ten U.S. troops killed on Thursday; Congress supported this legislation be- The Bush doctrine has been tried, Treasury agency has more employees cause everyone supports the brave men and it has failed. It is time for a new tracking Castro than bin Laden; Eleven and women who selflessly sacrifice national security strategy. SMART Se- U.S. soldiers killed in four separate at- their time, their energy, and increas- curity defends America by relying on tacks by insurgents. ingly their lives on behalf of this coun- the very best of America. Our commit- That is what our troops face and that try. But we should not be proud of our- ment to peace, our commitment to is what Congress has done. We have an selves for unanimously passing this freedom, our compassion for the people obligation to ask questions about Iraq legislation. Instead of patting our- of the world, and our capacity for mul- and seek the answers. The Nation’s selves on the back for allowing our Re- tilateral leadership. SMART Security standing in the world and people’s lives servists to raid their retirement ac- is tough, SMART Security is prag- are at stake. We have spent $112 billion counts penalty free. We should be doing matic, SMART Security is patriotic. to date on the war and reconstruction much more for those who defend this SMART Security is smart, and it will of Iraq. We owe it to our constituents country during times of war. keep America safe. Last November this Congress passed to ask questions and seek the answers f outrageous legislation to fund the war that they are asking and seeking. The SPEAKER pro tempore. Under a effort to the tune of $87 billion. That is And the breaking news this after- previous order of the House, the gen- noon, the Bush administration is ask- on top of the $78 billion in supple- tleman from Oregon (Mr. DEFAZIO) is mental funds that was appropriated in ing for an additional $25 billion with- recognized for 5 minutes. out taking responsibility for what has March 2003, yet reports show billions of (Mr. DEFAZIO addressed the House. those dollars are being misused, mis- happened to date. His remarks will appear hereafter in appropriated and some even stolen in As President Kennedy once said, to the Extensions of Remarks.) govern is to choose. While Congress has Iraq. On top of that, the Pentagon named its Post Offices and used the fa- today is asking for $25 billion more in f cilities for the Soapbox Derby here on a 2005 supplemental package. EXCHANGE OF SPECIAL ORDER the Hill, Americans at home have faced There is something drastically wrong TIME these headlines: Dow Chemical plans to when big companies like Halliburton Mr. MCDERMOTT. Mr. Speaker, I ask cuts 3,000 jobs; Winn-Dixie plans to cut and Bechtel get rich off the war effort, unanimous consent to claim the time 10,000 jobs. while the only riches paid to the Re- of the gentleman from Oregon (Mr. We can handle the Post Office nam- servists who left their jobs to serve in DEFAZIO). ing and hold hearings into the whys the United States military are those The SPEAKER pro tempore. Is there and the hows of Iraq. We owe it to the that they raid from their own piggy objection to the request of the gen- people we represent. We are here to ask banks. tleman from Washington? those questions and seek those an- There has to be a better way, and There was no objection. swers. there is. One that emphasizes brains instead of brawn, one that is consistent f f with American values. The SPEAKER pro tempore. Under a I have introduced legislation to cre- CYBERSTALKING previous order of the House, the gen- ate a SMART Security platform for the The SPEAKER pro tempore. Under a tleman from Florida (Mr. MARIO DIAZ- 21st century. SMART stands for Sen- previous order of the House, the gen- BALART) is recognized for 5 minutes. sible, Multilateral American Response tleman from Washington (Mr. (Mr. MARIO DIAZ-BALART of Flor- to Terrorism. It treats war as an abso- MCDERMOTT) is recognized for 5 min- ida addressed the House. His remarks lute last resort. It fights terrorism utes. will appear hereafter in the Extensions with stronger intelligence and multi- Mr. MCDERMOTT. Mr. Speaker, of Remarks.) lateral partnerships. It controls the America now knows the name of a f spread of weapons of mass destruction woman who lives in my congressional with a renewed commitment to non- ORDER OF BUSINESS district in Seattle. But she did not seek proliferation, and it aggressively in- fame and would prefer anonymity. Ms. WOOLSEY. Mr. Speaker, I ask vests in the development of impover- Her name is Joelle Ligon. I rise to unanimous consent to claim the time. ished Nations with an emphasis on speak about her plight, her courage The SPEAKER pro tempore. Is there women’s health and women’s edu- and the need for this Congress to act. objection to the request of the gentle- cation. Joelle deserves to live her life without woman from California? We need to shift our budget priorities fear, as everybody deserves. Unfortu- There was no objection. to reflect the true needs of the Amer- nately, Joelle’s life was turned into a f ican people. We must properly support nightmare because of cyberstalking. the thousands of soldiers who sacrifice SMART SECURITY daily to serve and protect our Nation. b 1930 The SPEAKER pro tempore. Under a SMART Security means equipping our Today she is both a victim and an ad- previous order of the House, the gentle- troops with the tools essential to their vocate, and she was invited to share woman from California (Ms. WOOLSEY) survival, body armor capable of stop- her story the other day on ‘‘Good is recognized for 5 minutes. ping bullets, armor for tanks that will Morning America.’’ It was not easy for Ms. WOOLSEY. Mr. Speaker, I would help prevention the destruction of U.S. Joelle, but she knew it was important like to say regarding the death of Mary military conveys, and the necessary to warn America about the dangers McGrory that I just met here a year or water equipment to keep the troops hy- lurking online. Joelle was 15 when she so ago. She sized me up and said, you drated in the desert heat. met and dated an 18-year-old young look good, but let us see what you are None of these things were funded man in high school. Nothing unusual made of. Well, tonight let us go. fully, even after Congress approved $155 about that. Eventually Joelle severed

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00076 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.132 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2627 the relationship and moved on with her severe penalties. The first step is the march and continued their interro- life. She married and began a career. A awareness. I am preparing a letter to gation until it was proven with their few years later, Joelle received an e- circulate to my colleagues that will in- own video of the event that Lebedko mail one day. It was supposedly sent clude newspaper accounts from Seattle had not even been there. from a woman she did not know, but about Joelle. We are going to work Despite that, Lebedko remains a tar- whoever sent it knew her. Then a sec- with the appropriate Members and get of the police and their harassment. ond e-mail came with more personal committees in the House as soon as Could it be that Lebedko has emerged details that no stranger could possibly possible to tackle cyberstalking head- as a threat to the current regime by know. Joelle began to suspect that the on. We will do what we need to do to advocating freedom and democracy? woman was really a man. By the third clarify and strengthen our laws. The important thing for the current re- e-mail, Joelle was sure the e-mails I urge both Republicans and Demo- gime in Belarus to understand is that were coming from her former high crats to join me in protecting Joelle, to Washington and the world are watch- school boyfriend. She wrote back, nam- join me in protecting every American. ing. The exciting thing about the up- ing him, and telling him to stop. Let the predators know that they are coming election is that many of the Things went from bad to bizarre. The e- the only ones who should not feel safe parties that have for years been adver- mails got much worse. They began to today. saries have been united, and they are include pornography and threats like Joelle, you are not alone. Help is united in forming a ticket from the this: ‘‘Not only is it bad karma to have coming. UCP to the trade unionists. In fact, enemies, I’m a bad enemy to have.’’ f they call themselves the Group of Five, Joelle was terrified. Then came five diverse parties from the far left to phone calls in the middle of the night. RECOGNITION OF UPCOMING ELECTIONS IN BELARUS the far right, united to have a strong Her phone number had been posted on- presence on the ballot to give the peo- line by someone urging men to call her The SPEAKER pro tempore (Mr. ple real choice, one choice that rep- for sex. Joelle went to the local police, COLE). Under a previous order of the resents freedom and democracy versus but they concluded there was nothing House, the gentleman from Illinois an authoritarian totalitarian regime they could do because no law had been (Mr. SHIMKUS) is recognized for 5 min- that we now find in Belarus. broken. Joelle and her husband moved utes. I ask my colleagues here in this to Seattle, but within months the Mr. SHIMKUS. Mr. Speaker, the House to continue to keep the people of nightmare came back. Joelle started world has seen some tremendous ad- Belarus in their prayers as we hope and receiving calls at work from men who vancements in the last couple of pray that they are the next European had seen her number posted online in months. We have had NATO enlarge country that moves to full, free, and sex chat rooms. She again went to the with 10 new members. Just Friday we unhindered democratic government local police and to the FBI, but noth- saw the EU expand also, now including and principles and joins the world of ing was done. Finally, her coworkers 25 European nations. We do have a Eu- nations and the EU as strong partici- and supervisors received an e-mail that rope united, whole and free. An excit- pants in the battle for freedom. accused her of falsifying her employing new thing about the new entrants f ment credentials and of sexual mis- to NATO and the new members of the conduct. The city of Seattle’s com- European Union is that they are in- The SPEAKER pro tempore. Under a puter security officer, Kirk Bailey, be- volved and they are engaged and they previous order of the House, the gen- came the white knight. He got people are dedicated to promoting freedom tleman from Maryland (Mr. WYNN) is involved, but progress was painfully and democracy and liberty around the recognized for 5 minutes. slow because no laws specifically ad- world, not just in our conflict with (Mr. WYNN addressed the House. His dress cyberstalking. Eventually an as- international terrorism; and many of remarks will appear hereafter in the sistant U.S. Attorney got involved, but the new entrants are part of the coali- Extensions of Remarks.) finding a law to deal with a 21st cen- tion of the willing, but also in neigh- f boring states, being involved in helping tury crime has been tough. ORDER OF BUSINESS A break in the case came when the ex promote the formation of democratic used her phone number in a chat room. ideas, the formation of the rule of law, Mr. MCGOVERN. Mr. Speaker, I ask Authorities acted, using title 47 of the judicial courts. It is these new former unanimous consent to take my Special Telecommunications Act for the first Eastern Bloc countries, new entrants Order out of order. time in a case like this. The ex-boy- to the EU, new entrants to NATO that The SPEAKER pro tempore. Is there friend has been charged, but it has are engaged in transforming Europe to objection to the request of the gen- taken years and a courageous woman be united, whole, free and at peace. tleman from Massachusetts? willing to see it through. However, Mr. Speaker, there is a There was no objection. And it is not over yet. Joelle and mil- glaring exception in Europe and that f lions of other Americans need our help. exception is the nation of Belarus of By some estimates, one out of every 12 which I speak just for a few moments IN MEMORY OF MARY MCGRORY women in America is stalked online. tonight. Belarus is the last dictator- The SPEAKER pro tempore. Under a The problem extends to men as well. ship in Europe. As we follow and as I previous order of the House, the gen- Some States, including Washington, follow and the Nation follows the up- tleman from Massachusetts (Mr. have acted to toughen the laws, but it coming elections, I want the people of MCGOVERN) is recognized for 5 minutes. is time to recognize that cyberstalking Belarus to know that the United States Mr. MCGOVERN. Mr. Speaker, first is a national problem. We are using a will be watching these upcoming elec- of all I want to thank the gentlewoman 20th century law to fight 21st century tions and that they have a partner that from New York (Ms. SLAUGHTER) for crime. That has to change. Cyberspace wants to ensure democracy wins. urging many of us to come to the floor has no State borders. Cyberpredators However, current events threaten today to say a few words about Mary can reach across State lines to ter- those elections. Current events con- McGrory, who passed away 2 weeks rorize their victims wherever they live tinue to plague the people of Belarus ago. and work. Americans like Joelle need and those who want democratic reform Mr. Speaker, like countless people in the protection that only the Federal and freedom. On May 3, Anatoly this country and around the world, I Government can provide. We need to Lebedko, chairman of the United Civic loved Mary McGrory. She was an abso- modernize our laws to make sure they Party, was questioned at Minsk’s lutely beautiful writer, and she was an protect Joelle and every American. Sovetsky District Police Department absolutely beautiful person. To me, she Cyberspace has opened doors we are over his alleged participation in the was a treasured and dear friend. Mary’s just beginning to understand. This one, unsanctioned April 26 Charnobylski columns, which first appeared in the we already know. Everyone has the Shlyakh (Path of Chernobyl) march in Washington Star and then in The right to feel safe and be safe. Anything Minsk. The police alleged that Lebedko Washington Post, were always well less is wrong and should be illegal with was an ‘‘offender’’ for participating in written and always right to the point.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00077 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.137 H05PT1 H2628 CONGRESSIONAL RECORD — HOUSE May 5, 2004 She took on such subjects as Joe found interesting, friends of hers over tleman from California (Mr. GEORGE McCarthy, the war in Vietnam, Rich- the years. The conversations were al- MILLER) is recognized for 5 minutes. ard Nixon, and U.S. policy in Central ways lively and off the record. I (Mr. GEORGE MILLER of California America. And while she was an un- learned a lot about Washington and the addressed the House. His remarks will abashed liberal and proud of it, many world just by sitting back and listen- appear hereafter in the Extensions of of her admirers included some of the ing. Remarks.) These dinner parties, however, were most conservative politicians in Amer- f ica, in large part because they admired about more than just politics and good her integrity and her character. She conversation. They were parties that ORDER OF BUSINESS called it as she saw it. were also about entertainment and Ms. SLAUGHTER. Mr. Speaker, I ask Mr. DREIER. Mr. Speaker, will the about fun. Mary liked to have people unanimous consent to take my Special gentleman yield? sing for their supper. Mark Gearan, a Order out of turn. Mr. MCGOVERN. I yield to the gen- long-time aide to President Bill Clin- The SPEAKER pro tempore. Is there tleman from California. ton, former director of the Peace Corps objection to the request of the gentle- Mr. DREIER. I thank my friend for and now president of Hobart and Wil- woman from New York? yielding. liam Smith Colleges in Geneva, New There was no objection. Mr. Speaker, I would like to join and York, was regularly enlisted to play commend him and commend our Rules the piano. Phil Gailey, a former co- f Committee colleague, the gentlewoman worker of Mary’s at her beloved Wash- b 1945 ington Star and now with the St. Pe- from New York, for focusing on the life CELEBRATING THE LIFE OF MARY of Mary McGrory. I think that the gen- tersburg Times, would play some sort MCGRORY tleman may have been referring to me of harp instrument that to this day I with what he just said because I am a still cannot identify. The SPEAKER pro tempore (Mr. proud Republican who often, in fact I Some of Mary’s guests, like LOUISE COLE). Under a previous order of the rarely agreed with Mary McGrory. But SLAUGHTER and TOM DASCHLE and John House, the gentlewoman from New the fact of the matter is she was an in- Podesta and DICK GEPHARDT and ED York (Ms. SLAUGHTER) is recognized for credible writer, an extraordinary MARKEY and Max Cleland and Mary 5 minutes. human being, and very talented. I had Gearan and NANCY PELOSI, the late Tip Ms. SLAUGHTER. Mr. Speaker, I rise many vigorous exchanges with her on a O’Neill and my former boss, the late today to celebrate the life of a consum- wide range of issues. Believe it or not, Joe Moakley, were often called upon to mate patriot Mary McGrory, who we did on more than a couple of occa- sing from Mary’s song book. Some of passed away 2 weeks ago, and we may sions come down on the same side on her favorites included ‘‘Amazing never see her like again. Mary was a an issue. She was thoughtful, she was Grace’’ and ‘‘The Battle Hymn of the loyal friend, a generous humanitarian, dedicated, and she was very capable. Republic’’ and ‘‘When Irish Eyes Are and most of all, a brilliant writer. Her I just want to thank my friend and Smiling.’’ Other people were asked to lyrical commentary illustrated a com- join as one of those Republicans who tell jokes or recite poetry. And then mand of the English language that was did have a great admiration for this there were people like me with abso- unparalleled. She used her talents to great woman. I thank the gentleman lutely no talent who would hide in the craft tough commentary, softened only for yielding and again thank the gen- back of the room, I was always afraid by her steadfast compassion. Her alle- tlewoman from New York. she would call on me, and watch this giance to the defeat of injustice and Mr. MCGOVERN. I appreciate the amazing show unfold. the exposure of political phonies made gentleman’s words. Mary also did a great deal for this her a champion to the underprivileged, Mr. Speaker, I would also remind community. She was a huge supporter a thorn in the side of policy makers, an those who are watching that her words of St. Ann’s Infant and Maternity icon to many, and a hero to me. that appeared in the Washington Star Home in Hyattsville, Maryland. She I met Mary McGrory shortly after after the assassination of President volunteered there. She read to a lot of coming to Washington when I was first Kennedy are still remembered and are young kids, many of them who had no elected in 1986. And as part of my cam- still quoted today and are incredibly families. She gave them love, and she paign, I had run against the Contras. I moving. She was also a rarity in that gave them hope. She used to take them thought everybody was. But Mary sin- when she felt she was wrong, she said to Hickory Hill, to Ethyl Kennedy’s gled me out as being somewhat un- so. I remember that she was less than house, for swimming on a regular basis. usual, and she interviewed me for an thrilled when President Bill Clinton A lot of the young kids could not pro- article shortly after I got here that she gave Gerry Adams a visa to come to nounce her name, so they used to call was writing about the Iran Contra the United States to engage in talks her Mary Gloria instead of Mary hearings, and we became very fast about peace in Northern Ireland. It was McGrory. In fact they named a room friends. I certainly never expected that a big deal to many of us who thought after her called the Mary Gloria Room. wonderful national icon Mary McGrory President Clinton was right because Mr. Speaker, let me just conclude to seek me out, but I had always loved when you think of Irish, you think of with one final personal thought. When her articles and I was awestruck by the Mary McGrory, and it was important Mary died, she left instructions about fact that we were friends. to have her on your side. But later on how her funeral would be conducted. The passion with which she ap- Mary demonstrated the courage and Her assistant Tina called me and said proached her life was remarkable. the moral compass to publicly observe that Mary wanted me to be a pall- Nothing she did was done half- that her original words of skepticism bearer. I was so touched, and I thought heartedly or without absolute convic- might have been wrong. I admired that it was such a great honor. It was to me tion. As a result, her achievements as a so much that she was willing to write an honor like getting an honorary de- journalist were preordained. in her column that she had a change of gree from an Ivy League college or uni- Mary’s story serves as an inspiration heart. versity because I admired this woman to women working to achieve their Over the years, Mr. Speaker, I had so much. She stood for all the right dreams. When she entered the field of the privilege of being invited to many things, and she was a great woman of journalism, men dominated it. Jour- of Mary’s famous dinner parties. These integrity and character. nalism was not an easy profession for a remarkable events were attended by Mr. Speaker, all of us who are gath- woman to break into. Her first assign- who’s who in Washington. There were ered here today and I think all the peo- ment in Washington was ‘‘gender ap- politicians, journalists, administration ple who are watching all throughout propriate’’ for the time, writing the officials. Oftentimes the Ambassadors this country will miss Mary McGrory. I book reviews for the Washington Star. of Ireland, Italy, and India were already do. But then she covered the Army-McCar- present. There were young people and f thy hearings in 1954. Mary McGrory some not-so-young people, and there The SPEAKER pro tempore. Under a was the first person in the country to were lots of people whom Mary just previous order of the House, the gen- announce and denounce Joe McCarthy

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00078 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.140 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2629 as a bully. She then earned a national When I meet you in the morning stand the latest justification. It took reputation as a serious and credible In the city Four Square. reporters like Seymour Hersh of the journalist of the first magnitude. I will meet you there, Mary. New Yorker to force other reporters to She grabbed the heart of the Nation f know what they knew and only when with her coverage of President Ken- the truth behind the administration’s ORDER OF BUSINESS nedy’s assassination. Her poetic tribute contradictions and misinformation is to his life and gentile commentary of Mr. BLUMENAUER. Mr. Speaker, I exposed does the administration ac- his funeral comforted a grieving Na- ask unanimous consent to take my knowledge that there may be a prob- tion. Special Order at this time. lem. And now months after a report The national spotlight shined on The SPEAKER pro tempore. Is there that highlighted these problems, there Mary again in 1974 when she was objection to the request of the gen- is a grudging acknowledgment and ap- awarded the Pulitzer Prize for com- tleman from Oregon? parently some steps are being taken to mentary for her coverage of the Water- There was no objection. correct it after widespread damage to gate scandal. She was most proud that f our credibility, damage to our already her coverage landed her a spot on ABU GHRAIB PRISON low-standing in the Arab world, and President Nixon’s notorious ‘‘enemies giving a green light to people who take list.’’ That recognition served not as a The SPEAKER pro tempore. Under a our troops and other American citizens warning to tame her merciless analysis previous order of the House, the gen- hostage as we have lost moral author- but as a validation for her relentless tleman from Oregon (Mr. BLUMENAUER) ity to effectively protest abuse of our work ethic. is recognized for 5 minutes. people. When the Washington Star closed its Mr. BLUMENAUER. Mr. Speaker, as The administration does not know doors in 1981, Mary was devastated. I an American, I am ashamed and dis- what is going on and clearly they are am convinced, I believe, that she had gusted by the horrendous unspeakable unsure about what to do. They are lost her own true love. Although she acts at Abu Ghraib prison caught in spending huge sums of money on pri- would continue to write for the Wash- pictures and displayed around the vate contractors that is not just eating ington Post, whom she also loved, her world. The impact of these images is up far more than it would take to equip first allegiance was to the Star. devastating precisely in the part of the U.S. troops properly but blurs lines of My colleague has already talked world where we are already struggling responsibility. They do not know whom about the wonderful work that she did to counter the widespread impression to hold accountable, and if they did, it with the orphans and the children that we do not respect the Arab world is unclear what they can do to these needing help in this city for more than and Islamic traditions. independent contractors other than 5 decades, but I can never forget Mary There is no excuse for these pictures canceling a contract. McGrory the entertainer. I was a proud and the acts shown. There is no excuse I think it is clear four things need to member of the Lower Macomb Street for a Secretary of Defense to be out of happen. First, we should open our Iraqi Choral Society for which we had to au- the loop and then deliver an apology prisons to independent third-party dition. Whether one was a diplomat, a that sounds like a lecture. I have lis- monitoring by the United Nations and media member, or anybody, they had tened repeatedly to Secretary of De- International Red Cross. There is a rea- to audition for that group in the com- fense Donald Rumsfeld dismissively son why we should honor constitu- fort of her living room. Her infamous brush aside penetrating questions from tional protections and commit to inter- lasagnas fed our stomachs and her fa- Members of Congress about both his national standards of law and prisoner vorite Irish songs fed our hearts. It was policies and their execution. treatment. We should stop delegating a coveted invitation to go to McComb We have seen Rumsfeld and his civil- to unaccountable private contractors Street, and then for the last 10 years, ian managers at the Pentagon fail to functions that should be under the di- Mary and I have had dinner together appreciate and understand concerns rect control and supervision of United here in the Capitol just before the from their uniformed command struc- States military uniformed command. State of the Union address, and the ture. They have dismissed the truth We need to get a new Secretary of De- next one for me will be extremely lone- tellers like General Eric Shinseki who fense, somebody who really is on top of ly. gave an honest and accurate assess- the situation and who does read re- I last spoke with her on the day that ment of troop requirements. They have ports, who is not dismissive of our al- the gentlewoman from California (Ms. removed people within the administra- lies, of Congress, and of his own uni- PELOSI) rescued the portrait of Mary tion like White House National Eco- formed command. Theresa Norton from one of the Capitol nomic Council Director Larry Lindsey Most important, for those of us who closets. She had been the Chair of the who was candid about the cost of this are in Congress, we should be finding Committee on Labor and was respon- war. out ourselves about these issues, not sible for child labor laws and the fair At one time I thought Rumsfeld’s re- relying on the New Yorker and CNN. labor standards, and we knew nothing fusal to put a price on the projected There was a time when congressional about her. We were happy that day to cost on the mission he was leading was panels, oversight committees were ex- find an article that Mary had written because he was trying to hide it. ercising oversight. We can grumble about Congresswoman Norton where While it is true there has been no ex- about the administration, but failure she quoted the gentleman from Michi- cess of candor from this crew, it is be- to do our job is only our fault. gan’s (Mr. DINGELL) father as saying coming more and more clear that an- f that Mary Theresa Norton could do other reason that Rumsfeld and his PRISONERS IN IRAQ anything that any man could do and do team have not been forthcoming is it better and do it faster, and it was a that they probably really do not know. The SPEAKER pro tempore. Under a great honor to pay to her. They have not a clue and repeatedly do previous order of the House, the gentle- I would like to end with one of not appear to care that they do not woman from California (Ms. WATSON) is Mary’s favorite songs that we sang to- know. recognized for 5 minutes. gether with Phil Gailey sometimes at 2 The most recent example from the Ms. WATSON. Mr. Speaker, we are and 3 in the morning, and they sang guy who is always trying to look like all shocked, saddened, and outraged by this at her funeral, and I know the gen- he is in charge but not knowing what is recent reports of the abuse of prisoners tleman from Georgia (Mr. LEWIS), who going on is the report of the abuse of in Iraq and Afghanistan. The evidence is here in the audience, will know this. Iraqi prisoners which has forced the cannot be in dispute. Graphic photos I’ll meet you in the morning President into a series of embarrassing have gone from one end of the earth to With a how do you do efforts to apologize. A war that has the other that show stripped young And will sit down the river begun with the exaggerated threats of Iraqi men forced to lie in a naked pile And with rapture old acquaintance renew. weapons of mass destruction has with a male and female soldier stand- You’ll know me in the morning morphed into a war that is based upon, ing over them and hamming for the By the smile that I wear well, I frankly do not begin to under- camera. Whether we like it or not, the

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00079 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.143 H05PT1 H2630 CONGRESSIONAL RECORD — HOUSE May 5, 2004 picture of a hooded, wired prisoner, Mr. Speaker, now is the time to feelings when the weight of asthma has which one commentator described as change course in Iraq. The principal ar- taken its toll on families. an eerie throwback to drawings from chitects of the war in Iraq, Secretary Asthma is the most common chronic the Spanish Inquisition, has become Rumsfeld and Deputy Secretary disease of childhood; and, unfortu- the new image of the U.S. occupation Wolfowitz, have presided over a failed nately, the number of children and of Iraq. policy. It is past due time for them to young people with asthma is increas- And this hooded image may be one of leave their posts and submit their res- ing. About 17 million U.S. citizens have the kinder and gentler images to have ignations. The security, safety, and asthma; 5 million of these are children yet seen the light of day. A highly crit- prestige of our Nation is at stake, and under the age of 18. About one in 13 ical report completed by the Pentagon we will not win the hearts and the school-age children has asthma. Health in March paints a much more graphic minds of Iraqis, the Arabs, and the rest care costs related to asthma are esti- and disturbing picture of prisoner of the world with blood in the sand. mated at $14 billion annually. abuse. The report outlines a number of Both Rachel and Evan joined me on b 2000 intentional abuses, and I will quote the floor today, Mr. Speaker, and they partly from it: ‘‘videotaping and Mr. DREIER. Mr. Speaker, will the had the opportunity to be on the floor photographing naked male and female gentlewoman yield? with their siblings, John Henry and detainees; forcibly arranging detainees Ms. WATSON. I yield to the gen- Anabel, to take part in meeting Mem- in various sexually explicit positions tleman from California. bers and shaking their hands. They for photographing,’’ and ‘‘a male MP Mr. DREIER. Mr. Speaker, I simply really did enjoy that. guard having sex with a female de- would like to say that while I disagree But, Mr. Speaker, the faces of asth- tainee; sodomizing a detainee with a with the final conclusion that the gen- ma sufferers are the faces of all of our chemical light and perhaps a broom- tlewoman has just drawn, the outrage children, and I believe we have a duty stick; and threatening male detainees that she began stating in her com- to help them. Earlier this Congress, I with rape.’’ ments is outrage with which we totally introduced the Asthma Awareness and Yes, we are all sickened and outraged agree; and we have been working over Treatment Act of 2003. This legislation by the photos and the reports. The the last couple of days since this news allows the HHS Secretary to award President, his cabinet, military lead- came out to bring forward what we contracts for a national media cam- ers, and the Secretary of Defense have hope will be a bipartisan resolution paign to inform the public and health all lined up to say that this is not what from this House tomorrow. We are care providers on asthma, allergies and America is about; it is just the unfor- going to be meeting, it appears now, related respiratory problems, espe- tunate handiwork of a few bad apples, possibly early in the morning in the cially in children, and provides re- and they will be held accountable for Committee on Rules to report out a search into whether there is a causal their actions. Perhaps. But as Philip resolution which will state our strong relationship between air pollutants and Kennicott writes in today’s Wash- condemnation of the actions that we the occurrence of asthma, allergy and ington Post: ‘‘These photos show us have seen taking place in the treat- related respiratory problems. I am also proud to cosponsor H.R. what we may become as occupation ment of these Iraqi prisoners. 2023, the Asthmatic Schoolchildren’s continues, anger and resentment grows Mr. Speaker, I thank my friend for Treatment and Health Management and costs spiral. There’s nothing sur- yielding me time so I could clarify this. Act of 2003. This legislation would give prising in this. These pictures are pic- funding preference to those States that tures of colonial behavior, the demean- f protect students’ rights to carry and ing of occupied people, the insult to CELEBRATING NATIONAL AL- use prescribed life-saving asthma and local tradition, the humiliation of the LERGY AND ASTHMA AWARE- other medications. vanquished.’’ NESS MONTH AND ALLERGY AND I would like to thank the AANMA for Should it be surprising, however, ASTHMA AWARENESS DAY all of their hard work in making this that these events have occurred under 7th Annual Asthma Awareness Day on The SPEAKER pro tempore (Mr. the watchful eye of an administration Capitol Hill such a resounding success. COLE). Under a previous order of the that prizes secrecy and loyalty above I joined with my colleague, the gen- House, the gentlewoman from Cali- all else? tleman from Texas (Mr. BARTON), to fornia (Ms. MILLENDER-MCDONALD) is Mr. Speaker, the prisoner abuse scan- cochair this year’s day on Capitol Hill. dal demonstrates that the United recognized for 5 minutes. States is on the precipice of a major Ms. MILLENDER-MCDONALD. Mr. f foreign policy disaster. Our standing in Speaker, this month we are celebrating TIME TO GET OUT OF IRAQ the world has been lowered to the point National Allergy and Asthma Aware- The SPEAKER pro tempore. Under a that the United States has been iso- ness Month. Yesterday was Allergy and previous order of the House, the gen- lated in the court of world opinion. Asthma Awareness Day. tleman from Georgia (Mr. LEWIS) is President Mubarak has stated un- Last night, while attending the Al- recognized for 5 minutes. equivocally that the United States is lergy and Asthma Network Mothers of Mr. LEWIS of Georgia. Mr. Speaker, the most hated Nation in the Middle Asthmatics Awards Recognition Din- I rise today with a heavy heart, but my East. Ouch, that hurts. And sadly, even ner, I had the pleasure of meeting two conscience is clear. I am so sick and in other parts of the world, we are no dynamic young people who suffer from tired of seeing so many of our young longer viewed as peacemakers but in- asthma and yet are doing amazing men and our young women die in Iraq. stead as the principal threat to world things to raise awareness about this Why has our Commander in Chief led peace. respiratory disorder. them to their deaths in this unneces- To date, the war has cost the tax- Evan Mungan of Arnold, Maryland, sary war? What will we tell the parents payers over $150 billion. Now we are and Rachel Lambin of Gardenerville, who will never see their children being told that the war will cost more Nevada, were the recipients of the again? What will we tell the children and that 135,000 U.S. troops will remain AANMA Creative Kids Sunny Awards, longing in vain for their mothers and in Iraq through 2005. Billions of dollars which highlights drawings, paintings fathers to come home? Why did they have been spent to enrich private cor- and writings by children who share die? Why? porations such as Halliburton and their feelings about asthma. After the atrocities we have com- Bechtel. Private contractors are run- Mr. Speaker, Evan won an award for mitted against the Iraq prisoners of ning around even interrogating pris- his drawing entitled ‘‘Good Day/Bad war, after the physical and psycho- oners with what appears to be less than Day,’’ which is here on the floor, which logical damage we have inflicted on the optimal supervision. Congress has illustrates the difference between a people of that nation, we can no longer failed thus far to exercise its proper healthy lung and a lung with asthma. truthfully say we are leading Iraq to oversight of the war. What additional Rachel wrote this original composi- freedom. Before the war, we were told scandals and outrages are lurking just tion, ‘‘When I Can Breathe,’’ which is that we would be welcomed as lib- around the corner? here on the floor, which expresses her erators.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00080 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.145 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2631 Mr. Speaker, I say to you today, we tleman from Florida (Mr. HASTINGS) is tleman from Texas (Mr. GREEN) is rec- must take a good hard look at our recognized for 5 minutes. ognized for 5 minutes. leadership in America. I say to you (Mr. HASTINGS of Florida addressed (Mr. GREEN of Texas addressed the today, we must hold them accountable the House. His remarks will appear House. His remarks will appear here- for mistake after mistake we have hereafter in the Extensions of Re- after in the Extensions of Remarks.) committed in this war. We must hold marks.) f them accountable for the deaths of our f The SPEAKER pro tempore. Under a young people, and we must hold them The SPEAKER pro tempore. Under a previous order of the House, the gen- accountable for the unjust torture of previous order of the House, the gentleman from Illinois (Mr. RUSH) is rec- our prisoners of war. tleman from Massachusetts (Mr. MAR- ognized for 5 minutes. Mr. Speaker, it is not a question of KEY) is recognized for 5 minutes. (Mr. RUSH addressed the House. His who committed these unbelievable acts Mr. MARKEY addressed the House. remarks will appear hereafter in the of torture. It is not a question of who, His remarks will appear hereafter in Extensions of Remarks.) but what. What led to this flagrant dis- the Extensions of Remarks.) regard for the humanity of our fellow f f human beings? The SPEAKER pro tempore. Under a Those at the highest level of this The SPEAKER pro tempore. Under a previous order of the House, the gentle- government, the President, the Vice previous order of the House, the gentlewoman from Florida (Ms. CORRINE President and the Secretary of Defense, woman from the District of Columbia BROWN) is recognized for 5 minutes. they have all created the climate and (Ms. NORTON) is recognized for 5 min- (Ms. CORRINE BROWN of Florida ad- the environment that led to these utes. dressed the House. Her remarks will (Ms. NORTON addressed the House. abuses. They have disregarded the sov- appear hereafter in the Extensions of Her remarks will appear hereafter in ereignty of another nation. Now our Remarks.) the Extensions of Remarks.) soldiers have disregarded the humanity f f of the citizens of Iraq. CONDEMNING MISTREATMENT OF Violence begets violence, Mr. Speak- The SPEAKER pro tempore. Under a IRAQI PRISONERS AND REMARKS er. A military overthrow of another previous order of the House, the gen- ON CREATING A DYNAMIC 21ST government does not lead to a peaceful tleman from Michigan (Mr. CONYERS) is CENTURY ECONOMY democracy. recognized for 5 minutes. American soldiers smiling as they (Mr. CONYERS addressed the House. The SPEAKER pro tempore. Under humiliate citizens of Iraq. There must His remarks will appear hereafter in the Speaker’s announced policy of Jan- be a sense of righteous indignation in the Extensions of Remarks.) uary 7, 2003, the gentleman from Cali- America about what happened in those f fornia (Mr. DREIER) is recognized for 60 prison cells, and there must be a sense The SPEAKER pro tempore. Under a minutes as the designee of the major- of righteous indignation in this Con- previous order of the House, the gen- ity leader. gress against these unspeakable acts. tleman from New York (Mr. MEEKS) is CONDEMNING MISTREATMENT OF IRAQI Mr. Speaker, I have said it in the recognized for 5 minutes. PRISONERS past, and I will say it again today: war (Mr. MEEKS of New York addressed Mr. DREIER. Mr. Speaker, I have is messy. It is bloody. It tends to not the House. His remarks will appear some remarks that I am going to share just hide the truth, but to sacrifice the hereafter in the Extensions of Re- with our colleagues on the 21st century truth. marks.) economy and some of the challenges Why did it take so long for this infor- f that we are going to face, but I would mation to come out? Why did the offi- The SPEAKER pro tempore. Under a like to preface my remarks by respond- cials at the highest level of govern- previous order of the House, the gentle- ing to some of the issues that have ment try to hide these crimes against woman from Texas (Ms. JACKSON-LEE) been raised by my colleague, the gen- humanity? Why did they try to cover is recognized for 5 minutes. tleman from Oregon (Mr. them up? (Ms. JACKSON-LEE of Texas ad- BLUMENAUER), my colleague, the gen- Mr. Speaker, we have made mistakes, dressed the House. Her remarks will tlewoman from California (Ms. WAT- yes; but it is not enough to issue an appear hereafter in the Extensions of SON), and the gentleman from Georgia apology. It is not enough to say we are Remarks.) (Mr. LEWIS), who spoke just before me. sorry. We should issue an apology, but There is in fact righteous indigna- f we should say we are sorry also. tion, as the gentleman from Georgia The SPEAKER pro tempore. Under a But, Mr. Speaker, the handwriting is (Mr. LEWIS) just said, over what we as previous order of the House, the gen- on the wall. It is time for us to get out. a Nation have seen take place in the tleman from Illinois (Mr. DAVIS) is rec- It is time for us to bring our young Abu Ghraib prison in Iraq. men and our young women home. It is ognized for 5 minutes. (Mr. DAVIS of Illinois addressed the We as a Nation and as a people are time for us to close this very dark and outraged over this treatment of pris- sordid chapter in the history of our House. His remarks will appear hereafter in the Extensions of Remarks.) oners. It appears to be in clear viola- great Nation. tion of the Geneva Convention, and I f f believe that we have a responsibility to The SPEAKER pro tempore. Under a The SPEAKER pro tempore. Under a do everything that we can as a body to previous order of the House, the gen- previous order of the House, the gen- clearly state the outrage that we have. tleman from Massachusetts (Mr. MEE- tleman from Maryland (Mr. VAN As I said in response to the remarks HAN) is recognized for 5 minutes. HOLLEN) is recognized for 5 minutes. being made by my colleague, the gen- (Mr. VAN HOLLEN addressed the (Mr. MEEHAN addressed the House. tlewoman from California (Ms. WAT- House. His remarks will appear here- His remarks will appear hereafter in SON), Mr. Speaker, we are working at the Extensions of Remarks.) after in the Extensions of Remarks.) this moment on a resolution that I f f hope very much can enjoy bipartisan The SPEAKER pro tempore. Under a The SPEAKER pro tempore. Under a support that will allow every single previous order of the House, the gentle- previous order of the House, the gen- Member of this House to go on record woman from California (Ms. ESHOO) is tleman from New York (Mr. HINCHEY) expressing what the gentleman from recognized for 5 minutes. is recognized for 5 minutes. Georgia (Mr. LEWIS) correctly describes (Ms. ESHOO addressed the House. (Mr. HINCHEY addressed the House. as righteous indignation over what we Her remarks will appear hereafter in His remarks will appear hereafter in have observed. the Extensions of Remarks.) the Extensions of Remarks.) Now, the closing remarks that were f f just offered by the gentleman from The SPEAKER pro tempore. Under a The SPEAKER pro tempore. Under a Georgia (Mr. LEWIS) had to do with the previous order of the House, the gen- previous order of the House, the gen- call for our withdrawal from Iraq; and

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00081 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.147 H05PT1 H2632 CONGRESSIONAL RECORD — HOUSE May 5, 2004 I would take just a moment to respond graduating from college in unprece- ent, it seems absolutely absurd to ask to that, Mr. Speaker, by saying that it dented numbers. the question if we are better off be- is very apparent that some seem to Now, there is no doubt about it: 2 cause of that transition from an agrar- have forgotten what led to where we decades of change have significantly ian economy to a heavy industrial are today. improved the quality of life of average economy. Who here today would go It was September 11, 2001, when our Americans. But there is also no deny- back to the lifestyle of the 1830s? Obvi- world changed. Following September ing the fact that change, even profound ously, no one. The more interesting 11, President Bush immediately moved change for the better, does breed anx- and more telling question is why did in on al Qaeda and the Taliban and iety, and anxiety can cause people to the loss of millions of agricultural jobs Osama bin Laden in Afghanistan. We seek stability rather than pursue not bring about the collapse of the also know that the global war on ter- greater change for the better. American economy? In the face of pro- rorism extended beyond Afghanistan. This desire for stability is certainly found change, how was our economy We know that in Iraq, Saddam Hussein understandable. It also has a long- able to change for the better? had been a supporter of terrorist ac- standing history in our economy. While The answer simple: our flexible and tivities, clearly in his region; and we the past 20 years have witnessed a re- dynamic system created new and bet- know that he had utilized weapons of markable rate of change and growth, ter jobs. Let me say that again, Mr. mass destruction against his own peo- massive change has swept through our Speaker. It is a very simple response ple. economy before. At the time of our Na- about this change from the agrarian to There is a reason that we are in Iraq tion’s birth, we had a largely agrarian the heavy industrial economy. Our today, Mr. Speaker; and it has to do economy. America then underwent a flexible and dynamic system, very in- clearly with our quest to do what only, long transition to become the world’s extricably tied to this free market only the United States of America is leading heavy industrial economy. And process, created, yes, new and better capable to do, and that is to stand up this shift that took place certainly did jobs. Innovation led to new opportuni- for freedom, liberty, human rights and not happen overnight, the shift from an ties. Rather than viewing new tech- independence as we struggle with this agrarian economy to a heavy industrial nologies as job destroyers, hard-work- global war on terror. That is why I economy. ing Americans knew that these want to congratulate President Bush While there are no clear starting and achievements in heavy machinery for the strong, unwavering, decisive stopping points, the transformation of could be powerful job creators. They leadership that he has shown in this our agrarian economy to an industrial harnessed these new technologies and global war on terror. economy took about 100 years, about a transformed our entire economy. CREATING A DYNAMIC 21ST CENTURY ECONOMY century. Through the increasingly Because Americans had the freedom Mr. DREIER. Mr. Speaker, I would widespread use of heavy machinery in and flexibility to innovate, we did not like to talk about the best ways for the factories, transportation modes and, of stagnate and decline. We adapted and American people to deal with the course, on the farm, we gradually wit- we grew. We call that progress. changes that are taking place in our nessed what became known as the in- Today, we are well into our second economy right here at home. dustrial revolution. Throughout this economic transformation from that I have actually been talking a lot period, there was a great deal of anx- heavy industrial economy to our 21st about change in recent weeks and tak- iety about the changes that were tak- century, business-serving-customers ing a look at the profound and rapid ing place. Workers whose families had economy. This time, the trans- change that has been taking place in been farmers for generations were sud- formation is taking place far more this country over the past 20 years. I denly faced with having to find new quickly. Even during periods of very have spoken a great deal about the kinds of work, new ways of supporting strong growth in job creation, the transformation of our economy and the their families. This often meant find- churning that takes place within our fact that that change has had a tre- ing a job and a line of work their fa- economy is rapid and very far-reach- mendous impact in the high-tech area. thers and grandfathers had never even ing. It has created this change, a dynamic heard of. A farmer in 1885 certainly For example, back in 1999, just 5 21st century economy, an economy never dreamed that one day his son years ago, our economy was booming. largely based on serving customers, would head off to work in Henry Ford’s It was a boom year for the U.S. econ- business customers, Mr. Speaker, cus- assembly line. He probably spent his omy, 1999. Growth was quite strong tomers like you and me. time wondering and worrying about with a 4.5 percent GDP growth number, We have an economy that is based on the existing kinds of work that would and unemployment was very low at 4.3 skilled workers harnessing new tech- be available for his children; the exist- percent. Yet, Mr. Speaker, over the nologies, finding new ways to increase ing kinds of work that would be avail- course of that year, we witnessed the efficiency, boost productivity and bet- able for his children. destruction of 33 million jobs. Let me ter serve customers. This is all taking Again, we can all understand this say that again. In 1999, we had 4.5 per- place in a very fast-paced and very anxiety in the face of fundamental cent GDP growth. We had an unem- competitive environment. change. Predicting the future is not ployment rate of 4.3 percent. Yet, that New technologies and new business easy. If it were, I and I am sure all the year, we witnessed the destruction of practices develop practically over- rest of us, Mr. Speaker, would have in- 33 million American jobs. But, at the night. In this 21st century economy, vested in Microsoft and Wal-Mart 2 same time, 36 million new jobs were about the only thing that remains con- decades ago. But now, with the benefit created. stant is the fact that things are con- of a century of hindsight, we can clear- Now, over that period, nearly 100,000 stantly changing. And they are chang- ly see that the industrial revolution jobs were lost every day, but our dying for the better. Over the past 2 dec- was a good thing, that transition from namic, bold, strong, innovative, cre- ades, in the United States of America an agrarian economy to a heavy indus- ative economy created even more jobs we have created 40 million new jobs, trial economy was, in fact, a good than those 100,000 that were lost every largely in high-wage sectors. Over that thing. The middle class exploded. Our single day. And the result, of course, 2-decade period, real wages have in- standard of living increased rapidly. was a net increase of 3 million jobs. creased by 30 percent and productivity Life expectancies climbed as work- Now let us look at a period of slower has more than tripled, while the size of places became safer and grueling man- economic growth, just 2 years ago, in our economy has doubled to what is a ual labor was no longer commonplace. 2002. At that time, the economy was nearly $11 trillion economy today, Transportation became faster and just beginning to emerge from eco- nearly twice the size of any other econ- safer. Communications also became nomic recession. GDP growth chugged omy on the face of the Earth. easier and quicker. More and more along at a 2.2 percent growth rate. Un- Americans had access to quality edu- employment was right around 5.8 per- b 2015 cation. cent, and over the course of that year, And, it is important to note that stu- The benefits of this massive trans- 32 million jobs were lost, while 31.7 mil- dents here in the United States are formation in our economy are so appar- lion new jobs were created. Now, of

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00082 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.162 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2633 course, the net effect of that was a growth, actually saw fewer jobs lost, b 2030 loss, a net loss of 300,000 jobs. Remem- fewer job losses than 1999, that boom The notification period varies from ber, slow growth, emerging from reces- year. And they seek to somehow spur case to case, but the minimum is 6 sion, 2.2 percent GDP growth, an unem- job growth by keeping the job loss weeks. And in some cases, employers ployment rate of 5.8 percent and, yet, number from growing. must give their workers up to 9 months we saw 32 million jobs lost, 31.7 million Now, the presumptive democratic before laying them off. This notifica- jobs created. nominee, JOHN KERRY, has proposed tion is followed up by a hearing in Now, this dynamism is often over- raising taxes on companies that invest which both the employer and employee looked when we talk about our econ- globally as a way to preserve jobs here can state their cases. omy. In 1999, Mr. Speaker, news reports at home. In the event that the employer does and economic commentary did not tell CHRIS DODD, the senior Senator from lay off a worker, he is required to pro- the story of 33 million jobs that were Connecticut, has a proposal which was vide a substantial severance package. destroyed in this country. What we adopted by the other body in the form In an effort to stem the exodus of busi- heard about was the net gain of 3 mil- of an amendment to the corporate tax nesses from their high tax, high regula- lion jobs. In 2002, we did not hear about reform bill. That amendment was de- tions system, France began imposing, the creation of nearly 32 million jobs. signed to prevent globally-engaged actually this is inconceivable, an exit What we heard about was the loss of companies from competing for Federal tax. They began this back in 1998, an 300,000 jobs. The net gain is, of course, contracts, and we have this discussed exit tax. The European Union recently the number that we are all interested in State legislatures for States. struck down this provision, but for 6 My colleague, the gentlewoman from in. We want to see exactly how many years the French have used this highly California (Ms. WATERS) has the same net jobs are created, and we all want burdensome tax on businesses to pre- proposal here: preventing globally-en- that number to be just as big as pos- vent them from moving to countries gaged companies from competing for sible. But I am highlighting the mil- with less restrictive government regu- Federal contracts. lions of jobs lost and the millions of lations. The Senate minority leader, TOM jobs created because they are the two So with all of these ‘‘job security’’ DASCHLE, has his Jobs For Americans measures in place, that are intended, sides of the equation that ultimately Act, which is cosponsored by Senator determines net job creation. very well intended, they are intended KENNEDY. This legislation would im- In other words, there are two ways pose new restrictions and regulations to prevent companies from laying off we could attempt to achieve job on any company, large or small, that workers and moving offshore, you have growth. We could either try to stop invests in growing overseas markets. to ask the question, are the French millions of jobs from being phased out, Each one of these proposals, intended workers better off today? Has govern- or we could, Mr. Speaker, focus on cre- to increase the number of jobs for ment regulation been able to save any ating even more new jobs, many of Americans, attempts to control the job jobs? Is new business creation, which which are obviously in new tech- loss side of the jobs growth equation. would create new jobs, booming in nologies, just as was the case back But would they be effective? Can we France? The answer is an obvious no. when that farmer never conceived of boost job growth by trying to simply Since 1999 the unemployment rate in the fact that his or her son would one focus our attention on preserving exist- France has been stuck right at about 10 day work in Henry Ford’s factory. ing jobs? percent. While it dipped as low as 9.1 So as I say, we could either try to Well, again, the numbers from the percent in the end of 2002, it is now stop millions of jobs from being phased past several years demonstrate that we back up to 9.5 percent. And it con- out, or we could focus on creating even cannot. But rather than attempting to tinues to rise at a time when the over- more jobs. make an educated guess based on the all unemployment rate for OECD coun- I also highlight these numbers behind data we have, I have a better idea, Mr. tries is falling. This decrease, I might the numbers because they reveal some- Speaker. We should use empirical evi- add, is being led by falling employment thing that is very interesting. In 2002, a dence. I think what we should do is right here in the United States of year of relatively slow economic draw our wisdom from the example put America. growth, as I said, about 2.2 percent forth by our friends in Europe; specifi- Furthermore, France’s economy GDP growth, fewer jobs were actually cally, the French. The people of France overall is fairing quite poorly. Last reported lost than in 1999, that year of thought up job preservation proposals year the GDP growth rate in France booming job growth. Now, this is key. long before they ever occurred to any was 1.8 percent; and estimates for this These numbers say we lost 33 million of the economic isolationists we deal year are at 1.7 percent. Its finance min- jobs in 1999, and only 32 million jobs in with here in both Houses of Congress. istry recently announced that it is 2002. Thirty-three million jobs when we France, along with a number of other hopeful that the economy could grow had very bold, 4.5 percent GDP growth, European Union countries, has been by as much as 2.5 percent next year. an unemployment rate of 4.3 percent, imposing these very kinds of restric- But even they admitted that this rel- and 32 million jobs were lost when we tions for years. We do not have to pre- atively slow rate of growth will be very saw very, very slow economic growth dict if jobs will be created if we pro- difficult to achieve. of 2.2 percent and an unemployment hibit U.S. companies from freely com- I think it is important to note that rate of 5.8 percent. peting on a worldwide basis. We can this stagnation is not a recent or tem- The fact that more jobs could be de- simply look at the French model and porary situation in France. The French stroyed during the boom is hugely sig- ask ourselves, is job growth strong? Is are not simply going through a few dif- nificant. This tells us that our job the capital creation that leads to job ficult years as all countries do from growth equation, with job losses on one growth thriving? Do we want our econ- time to time and as ours clearly has. side and job creation on the other side, omy to look like the French economy? Average annual growth and GDP the number we should be focusing on is Well, the answer is a resounding no. throughout all of the 1990s in France the job creation number. Yet, many of We know that the French have twice was 1.9 percent. Just over half the av- my colleagues have proposed just the the unemployment and half the job erage GDP growth rate of 3.4 percent opposite as a public policy for us. The growth, the GDP growth that we enjoy that we have had here in the United opposite are these proposals designed in the United States. Like the proposal States, but maybe France is just an to simply prevent any jobs from being that our colleague, Senator DASCHLE anomaly, Mr. Speaker. lost. has in his Jobs For Americans Act, France, their restrictive job security Now, there are several proposals France imposes strict requirements on laws would have a different effect in a making their way through the Con- all businesses that intend to lay off different economy. So let us look at gress and in State legislatures and, un- workers. These restrictions have been another case. Germany. Germany has fortunately, those proposals, Mr. in place for many years. For instance, many labor regulations that are simi- Speaker, ignore the job creation num- a French employer must notify any lar to France’s. And like their neighbor bers. They ignore the fact that 2002, a worker of an impending layoff, in writ- to the west, these laws have been in year of relatively slow economic ing. place for many years. The Protection

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00083 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.163 H05PT1 H2634 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Against Dismissal Act, which could pean Union. For example, the United new and better opportunities. As we have been the model for Senator States leads the world with 185,000 new saw with the shift from an agrarian DASCHLE’s Jobs for Americans Act, was patents granted every single year. This economy to an industrial economy, adopted a half century ago just after is almost four times the amount for success did not stem from our ability World War II. This statute requires the entire European Union. to prevent the loss of agricultural jobs. every employer to justify the laying off In 2002, France granted fewer than Our success was a result of our ability of any employee taken into account, 4,000 patents and Germany only grant- to harness new technologies and create taking into account social justice faced 11,000 patents. In other words, U.S. entirely new fields of work. And we tors. innovators are producing 50 times the transformed our economy into a global Now, these factors include things work of their French counterparts and leader in the process. like whether the employee is a single 17 times the work of their German Today it is just as critical as ever mother or elderly or disabled. Employ- counterparts. A look at research and that we reject the path of stagnation ers must give workers notice of layoffs development shows a similar picture. and choose the path of progress in- between 1 and 7 months in advance, de- Last year, the United States spent stead. The path that encourages com- pending on how long a worker has been almost $300 billion on research and de- panies to innovate, raise productivity, with a company. Employees can chal- velopment. That is nearly a third of a compete abroad, and create the new lenge any layoff in court and obtain trillion dollars on research and devel- kind of jobs that reflect our uniquely preliminary injunction allowing them opment, including both public and pri- American ability to adapt to the to remain on the job until their cases vate sources. This year we will spend changes of the future. This is the are decided. Preliminary injunctions $320 billion, an increase that stems in American model for job growth. But if this has been our formula for can keep people on a job while their large part from the President’s com- success and global economic leadership case is being decided, whether or not it mitment to increase Federal research for nearly 200 years, why are our cur- is a good business decision for that op- and development funding. In fact, the rent job growth numbers not as strong eration. President’s proposed R&D budget of as we would like? After all, our econ- These are very stringent require- $132 billion marks a 42 percent increase omy has been out of recession for over ments imposed on German companies, since he took office. 2 years. In fact, growth is clipping no doubt in an effort, well-intentioned, France, by contrast, spends only $30 along at a brisk 4.1 percent. The stock the effort, of course, to protect German billion a year, a tenth of what the market is performing well, real wages workers. But are these workers better United States spends. Germany devotes are growing, consumer confidence and off, Mr. Speaker? Since the late 1990s, $37 billion a year to R&D which is less spending remain high, and home own- unemployment in Germany has hov- than one-sixth of the U.S. total. Once ership is at record levels. All indicators ered above the 8 percent level and has again, the United States of America is point to 2004 looking a lot more like the global leader while France and Ger- steadily climbed over the past year. In the boom of 1999 than the relatively many trail far behind. 2003, it inched up from 9 percent to 9.2 slow growth that we saw in 2002. Another important innovation indi- percent and continues to climb. Yet, while the job growth numbers At the same time the GDP growth cator is venture capital. Business and have recently grown much stronger, rate in Germany has, as has been the individual investors provided over $21 the overall job creation picture still case in France, been a paltry 1.7 per- billion in venture capital in 2002 right looks a little weaker than expected. cent for the last 2 years. here in the United States. That com- Now, Mr. Speaker, I believe that there Mr. Speaker, economic forecasters pares with less than $2 billion in are three reasons why the job creation have recently downgraded their growth France and about a billion dollars in numbers have not yet matched the exu- predictions for Germany from 1.8 per- Germany. In both cases, a tiny fraction berance of the rest of the economy. cent to 1.6 percent, even lower than of the venture capital investment that First, we quite simply are not counting that anticipated in France. Just like we have here in the United States. In all of the new jobs. Our jobs statistics, France, economic stagnation has been fact, the amount of venture capital the number of new jobs that comes out a part of the German way of life for raised each year in all of western Eu- on the first Friday of every month are many years. Throughout the 1990s, eco- rope barely equals a third of the derived from the payroll survey known nomic growth averaged just 1.5 per- amount raised here in the United as the Establishment Survey. The data cent, an abysmal one-third of the eco- States. are collected by asking a sampling of nomic growth rate that we have seen Mr. Speaker, each one of these inno- businesses how many people they em- on average here in the United States vation indicators which demonstrate ploy and if they are adding or reducing economy. The long term numbers the vitality and dynamism of an econ- jobs. clearly do not stack up well against omy together with factors like unem- The problem is that the payroll sur- the United States. But let us compare ployment and growth and gross domes- vey only looks at the established busi- the short-term numbers, Mr. Speaker. tic product, clearly shows that our nesses. That is why they call it the Es- French and German unemployment is economy is creating far more and far tablishment Survey. There is no means at 9.5 and 9.2 percent, respectively, and better opportunities for workers than for counting the self-employed, the those numbers are increasing. In the any place else. It seems that the ‘‘job independent contractors, the enough U.S., unemployment is at 5.7 percent. security restrictions’’ might not be business start-ups. These entrepreneurs That is roughly half the levels of un- quite the boon to workers that their are completely left out by our job cre- employment for both France and Ger- proponents would have us believe. Eu- ation number. But we do know that many. The same goes for economic rope’s failed attempts to artificially re- they are out there. And we know that growth. While the French and German tain existing jobs have guaranteed eco- the number is growing. economies have been inching along at nomic stagnation, not future pros- Significant anecdotal evidence from less than 2 percent, GDP growth, the perity for their workers. established businesses shows that com- U.S. economy has been racing forward The French and German models dem- panies are increasingly relying on more at a 4.1 percent annual growth rate, onstrate that job growth cannot be fluid business models. Independent con- more than twice the growth rate of achieved simply by trying to prevent tracting gives both businesses and both France and Germany. And in the any jobs from being phased out. In- skilled workers greater flexibility in third quarter of 2003, the U.S. economy stead, we need to focus on the other coordinating projects and meeting grew at a staggering 8.2 percent, our side of that jobs equation that I have their individual needs. While the pay- fastest growth rate in 20 years. discussed earlier. The job creation side. roll survey misses these types of work- But perhaps the most telling num- In light of our economic history, this ers, they do get counted in the house- bers of all are what I will call innova- should come as absolutely no surprise hold survey. The Department of La- tion indicators. In terms of new pat- whatsoever. Our Nation’s economic bor’s household survey goes directly to ents, research and development, ven- strength has always been based on the individuals and asks them if they have ture capital, the U.S. far outpaces ability of industry, workers, and con- a job and what kind of work they are France, Germany and the entire Euro- sumers to innovate, adapt and create doing.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00084 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.165 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2635 Now, Mr. Speaker, because the house- ment regulations, and a Byzantine cor- House, the gentlewoman from Cali- hold survey looks at the entire work- porate Tax Code. fornia (Ms. WATERS) is recognized for 5 force and the payroll survey only looks In fact, the National Association of minutes. at a certain kind of employment, it is Manufacturers estimates that these Ms. WATERS. Mr. Speaker, I would no surprise at all that the household factors raise the cost of doing business like to take this opportunity to place survey shows a net gain of over 1.5 mil- in the United States by almost 25 per- on the record what happened here lion jobs since the end of the recession cent, that is, these factors, the things today with the visit by Mr. Gerard in November of 2001. Over the same pe- that exist, the frivolous lawsuits, the Latortue, who is the illegally ap- riod, the payroll survey shows a net regulations, the tax burden and the pointed Prime Minister of Haiti. Some- loss of about 350,000 jobs. While even cost of health care, they have increased body invited him to come here to the the payroll survey has not recently the cost of doing business by almost a House of Representatives; and two begun indicating robust job growth, quarter. That can be devastating to meetings were set up, one at 10:30 308,000 new jobs in the month of March any company, particularly small- and where members of the Congressional and 204,000 new jobs in the previous 2 medium-sized businesses, and it can Black Caucus were invited to meet months, the two surveys still show a significantly impede the ability of en- with him, and a later one at 1:30 where discrepancy of almost two million jobs trepreneurs to turn their innovations members of the Committee on Inter- since the end of the recession. into new jobs for Americans. national Relations were invited to These three factors, inadequate job meet with him. b 2045 statistics, the structural changes that Those meetings were not attended in Furthermore, trends in job creation are taking place in our economy and any appreciable numbers by either the indicate that the payroll survey is in- the barriers to job creation, are all im- members of the Congressional Black creasingly inadequate for counting new pacting our jobs numbers; and each Caucus at the 10:30 meeting or the jobs. The household survey shows that presents an opportunity for us, Mr. members of the Committee on Inter- one-third of all new job creation is in Speaker, as policy-makers. national Relations. Of the 39 members self-employment. This means that the Improving our data analysis, helping of the Congressional Black Caucus, I fastest-growing part of our workforce to match workers with new jobs and am told that perhaps maybe six people is missed entirely by the payroll or es- training for new skills, seeking reforms showed up; and for the Committee on tablishment survey. If we are going to that will lower the cost of doing busi- International Relations, where there are 49 Members, 26 Republicans and 23 have an accurate picture on job cre- ness in the United States from tort re- Democrats, only about six members of ation, we need jobs statistics that ac- form to health savings accounts, these count for the kinds of jobs our 21st cen- that committee showed up. are a number of initiatives that the I think it is important to note that tury economy is creating. Congress of the United States can pur- The second reason I believe job cre- this took place. It is important for the sue to boost job creation in this coun- world community to know and under- ation has not yet reached expectation try. The most important part is that is that our economy is in the process of stand that just as CARICOM, that is, we keep our focus on the job creation the nations of the Caribbean, rejected creating entirely new types of jobs in side of the equation. entirely new types of fields. Latortue, and do not accept him as a It is true that, as in an earlier era of legitimate representative of that gov- In recent decades, job losses and buggy whip makers and blacksmiths, gains have primarily been the product ernment, the Congressional Black Cau- some jobs are disappearing forever; but cus does not accept him and recognize of the business cycle. Employers would I reject the belief that we have reached be forced to lay off workers during him as a legitimate Prime Minister for the end of American innovation. Call Haiti; and it was indicated today by tough economic times and would rehire centers in India are simply not a har- them during the recovery. Because the the lack of attendance. binger of stagnation and decline. To It is important for me to say this be- job opportunities before and after a re- say that they are is defeatism in its cause Latortue is trying to make the covery looked very similar, reemploy- most basic form. world community believe that he is ment happened very quickly. Admittedly, I cannot stand here and gaining the support of the Congres- Today, we still go through cyclical tell my colleagues exactly what the sional Black Caucus. That absolutely is change, but we are also experiencing a jobs of tomorrow will be, just as a de- not true. We consider that he was ille- great deal of structural change. As I featist in 1850 could not have foreseen gally appointed. It is in violation of the discussed earlier, we are in the midst of jobs in film production or software en- Haiti Constitution, and he is presiding a major economic transformation. In gineering. What I can tell my col- over crisis and chaos in Haiti. our 21st century economy, a new job is leagues, Mr. Speaker, is that Ameri- Haiti is worse off than it has ever often new in every sense of the word, cans have a long history of adapting been. Not only do we have killings that new work in a new field demanding and growing and being innovative and are going on every night; we have completely new skills. creative. If we allow workers to con- members of the Lavalas Party, the Rather than simply going back to tinue down that road towards innova- party of President Aristide, in hiding. their old jobs, workers are increasingly tion, we will continue to create lots of They are being killed. Their lives are finding work in cutting-edge fields and new opportunities for Americans. being threatened; but worse than that, learning very, very different skills. Mr. Speaker, Senator KERRY and this so-called Prime Minister, Mr. Ge- Part of our focus in the 21st century many on the other side of the aisle rard Latortue, embraced the known economy should be helping to match want us to pursue the French and Ger- killers who have occupied the northern workers with employers so that reem- man models; and we know from that part of Haiti and recently appeared on ployment can take place so that we can experience that what we have seen a platform with Mr. Guy Philippe, Mr. see reemployment take place just as from the French and the Germans does, Louis Jodel Chamblain, Mr. Jean quickly as possible. We need to help in fact, create stagnation and stifling Tatoun, all of whom are known to be match workers with employers, work- regulation and jeopardizes the ability criminals. Mr. Guy Philippe is a known ers who were laid off so that we can for Americans to be innovative and cre- drug trafficker. Mr. Chamblain and Mr. help them. ative. Tatoun have been convicted in absentia The third factor, Mr. Speaker, that I Mr. Speaker, I will take the Amer- for their role in the massacre of thou- believe is affecting net job creation in ican way, with confidence in the Amer- sands of Haitians at Raboteau in 1994. this country, and the perception that ican worker and the American em- They were all in exile. They were all we are experiencing a jobless recovery ployer for the future. recruited to come back into Haiti and is the fact that there are very real bar- f join with the so-called opposition, and riers to job creation that still exist they played a role in the coup d’etat. here in America. These include the ris- VISIT TO THE CAPITOL OF HAITI’S They threatened to kill President ing cost of providing health care for SO-CALLED PRIME MINISTER Aristide, and they are still running workers, frivolous lawsuits, the cost of The SPEAKER pro tempore (Mr. around Haiti, armed, trying to reestab- complying with ever-growing govern- COLE). Under a previous order of the lish an army, recruiting Haitians,

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00085 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.166 H05PT1 H2636 CONGRESSIONAL RECORD — HOUSE May 5, 2004 burning down police stations and kill- what we need to do to make the econ- to Canada, and it showed dramatically ing members of Lavalas. This so-called omy better. that even though the Canadian econ- Prime Minister called them in a public Instead, President Bush has used the omy is very dependent on the U.S. meeting freedom fighters. It is so out- same old tired bromides, tax cuts for economy, the Canadian economy actu- rageous, it is so ridiculous, and that is the wealthiest people in the society. If ally increased the number of jobs over one of the reasons he is not being ac- you make a million dollars in a year the 4 years at the same time that jobs cepted. He is not being respected, and under the Bush plan, you get a $20,000 were being lost here under President he is not considered as a serious person tax cut. The Republicans hope this tax Bush’s Presidency. It said the reason with any leadership ability or any vi- cut will trickle down and create jobs. was because in Canada, although they sion for Haiti’s future. It clearly has not worked. We lost 3 gave tax cuts, the tax cuts all went to So, let the record indicate that he million jobs in the last 31⁄2 years. the middle class and working people, came to the Capitol; that he was not The second part of his economic plan and those people basically got that received by any appreciable number of over and over is let us do more money and reinvested it and created people; that he did not get his message NAFTAs, let us do more trade agree- more jobs, and it also talked about how across. We have said to the State De- ments that continue to ship jobs over- productivity in Canada and the United partment and to Secretary Colin Pow- seas, that outsource, that hemorrhage States increased at about the same ell that it is important, it is impera- jobs to China and Mexico. That clearly amount over the last 4 years, but in the tive that they arrest and incarcerate is not working, but I understand my United States the profits from the in- the thugs and the criminals who are in friend from California. I understand his creased productivity went to corporate control of Haiti. There is no way that viewpoint. profit whereas in Canada, the increase they can ask us to recognize this pup- Members of Congress do not feel the in productivity was passed on to work- pet and this puppet government and to anxiety that my constituents feel. In ers in higher wages and they invested recognize this illegally appointed so- my State, we have lost 177,000 manu- it and created more jobs. called Prime Minister until at least facturing jobs. One out of six manufac- The gentleman from California was they take those steps. turing jobs in my State has simply dis- comparing other countries, and he did f appeared during George Bush’s Presi- not mention Canada. The reality is if dency. Yet George Bush’s answer con- we look at the Canadian experience in THE ECONOMY tinues to be more tax cuts for the most the last 4 years, it is the Republican The SPEAKER pro tempore. Under privileged and continues to be trade policies in the United States, huge tax the Speaker’s announced policy of Jan- agreements that do not work and con- cuts to the rich, taking the money uary 7, 2003, the gentleman from Ohio tinues to be this ideological mission to from increased productivity and giving (Mr. BROWN) is recognized for 60 min- give tax cuts and say that automati- it back in corporate profits and not utes as the designee of the minority cally tax cuts to the wealthy automati- giving it to workers, this has resulted leader. cally create jobs. It simply has not in a huge difference between our two Mr. BROWN of Ohio. Mr. Speaker, I worked. countries. We lose the jobs, and in Can- appreciate the words of my friend from What we need to do is extend unem- ada they increase the number of jobs. California (Ms. WATERS) and her pas- ployment benefits to the 1 million It is the President’s policies which sion about what has happened in Haiti Americans, fifty-some thousand Ohio- have caused these job losses. It is not and how our government has not been ans, whose benefits have expired since something that is inevitable, it is exactly on the right side of that. January. We need to, instead of re- something that he has caused with his Equally important, I want to say some- warding those companies that go off- Republican majority. thing about my friend from California shore and change their corporate head- Mr. BROWN of Ohio. Mr. Speaker, to- (Mr. DREIER) and his comments. quarters to Bermuda so they can avoid night I am joined by the gentleman To try to make it sound like the taxes and have continued to get var- from New Jersey (Mr. PALLONE), the Democrats and Senator KERRY want ious kinds of Federal contracts, on-bid gentleman from Maine (Mr. ALLEN), the French and the German model, contracts in the case of Halliburton, the gentlewoman from Ohio (Mrs. while he wants the red, white, blue and all of that, we need to pass legisla- JONES), the gentleman from Ohio (Mr. American model is just a bit much. We tion that will actually give tax breaks STRICKLAND), and the gentleman from are all proud of the economic growth. to those companies that stay in the Washington (Mr. INSLEE) and I want to We are all proud of the freedoms of our United States and manufacture here. talk about Medicare and the discount country. We are all proud of our strong card program that has been unveiled environmental laws, our worker safety b 2100 this week. laws, our laws to protect the public and Several manufacturing companies Enrollment began for the prescrip- the dynamic economy we have. No one from my State came to see me today. tion drug discount card through the is arguing, nobody I know, JOHN They cannot believe we continue to Medicare bill passed last year. For KERRY, anybody else is arguing we give tax breaks to these big, multi- some seniors in Ohio, this can mean want the French economy or we want national corporations who ship jobs $600 in prescription drug benefits. On to be Germany. overseas, who outsource to India, and the surface that sounds good, and we What we are arguing is that we can we do not give any kind of tax incen- want seniors to look into these cards. do better with this economy than tives to American manufacturers. I If they can get any help, that is a good George Bush has done. We look back at just wanted to say that in response to thing. the 1990s during Bill Clinton’s 8 years my friend from California. However, the real story about the and saw 25 million jobs created. We Mr. Speaker, I yield to the gentleman discount cards is found in the details. look at George Bush’s 31⁄2 years and see from New Jersey. The discount drug cards will further 3 million jobs lost, and we see a Presi- Mr. PALLONE. Mr. Speaker, I know complicate an already confusing proc- dent who, during his term, will be the we are going to talk about prescription ess for America’s seniors. Instead of first since Herbert Hoover that has ex- drugs tonight, but I just want to say implementing a prescription drug ben- pressed, that has experienced a net loss that I heard the gentleman from Cali- efit under one program, Medicare, the of jobs. fornia also, and he kept referencing simplest, cleanest and the deepest dis- I look at my State when I hear the France and Germany and how their count available and possible, which 40 gentleman from California (Mr. economies were not doing well and the million of America’s seniors know and DREIER) speaking about this incredible U.S. was doing so well. I do not know trust, the administration fought on be- economy. Then I look at my State, and how he can make those comparisons half of the insurance and the drug com- we hope we had an economy like he because I do not think the United panies, who really wrote this bill, the was talking about. I do not think very States is doing well at all. administration fought to create an un- many places in this country, if any I saw an analysis yesterday in terms necessarily complex system that di- places, do have that kind of economy, of what was happening to the United verts money away from benefits and the picture he painted; but we know States in terms of job losses as opposed gives it to drug companies, insurance

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00086 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.168 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2637 companies, and to these discount card makes these cards, it might have someone card for an entire year, and the companies that we will talk about in a thing to do with the fact that they sponsor of that card has the ability to moment. gave lots of money to President Bush’s make all of these changes and I am the The big drug companies under this reelection. victim. I am helpless to do anything original $400 billion bill, the big drug We have all read in the paper that about it. companies will profit an additional $150 President Bush has set all kinds of Mr. PALLONE. Mr. Speaker, every- billion from this bill, and insurance fund-raising records. One week it is 150, thing the gentleman said is absolutely companies will get $46 billion. The in- then he flies Air Force One out to true. I saw the gentleman from Ohio surance companies get a direct subsidy, Cleveland or Portland or New Jersey or (Mr. BROWN) show the variation cards, a direct payment of my tax dollars and Washington State, does a little bit of and I think he has to make it clear, your tax dollars directly into their government business so he can charge they are not getting all those cards. pockets for this bill. it off to the government, and then he They are just going to choose one. No wonder, considering the drug does another fund-raiser and raises an- Mr. BROWN of Ohio. One card for $30. companies, we hear on the streets of other $3 million. It just keeps going up, Mr. PALLONE. Also, I do not know Washington, the drug companies are setting records every week. No wonder how the senior citizens will be able to going to give $100 million to President he can raise $200 million when he does make a decision which card to use. Bush’s reelection. They have already things like this instead of doing it They have a Web site and you can go given tens of millions. No wonder the right. on that Website, and they will give you President wrote this bill so these com- Mr. Speaker, I yield to the gentleman the different cards and tell you what is panies benefited. from Ohio (Mr. STRICKLAND). covered and what the cost is going to The drug card portion of the bill was Mr. STRICKLAND. Once a senior be today, but a lot of seniors are not in part crafted by friends of the Presi- goes through all these cards and finally just taking one drug, too. So they are dent, such as David Halbert, CEO of reaches a decision, and that is going to supposed to look through all these dif- Advanced PCS, one of the discount be difficult to do, once they reach a de- ferent cards and decide which is the card companies, a man who set Presi- cision and select a particular card, best based on the particular cost for dent Bush up in business before he was they are stuck with that card for an the particular medicine or several President and before he was governor, entire year. Yet the sponsors of that medicines at a given time, but there is around the time he ran unsuccessfully card every 7 days can either increase or no guarantee of anything. There is no for Congress, Mr. Halbert set President reduce, but they are most likely to in- guarantee that discount is going to be Bush up in business and helped Presi- crease the costs of the drugs that are a there the next day because it can be dent Bush make his first million in an part of that card. And every 7 days, the changed. My understanding is they unsuccessful oil company. sponsor of the card can change the have to provide some type of drug like It is no surprise then that this sys- medicine covered by that card. Lipitor, but they do not need to pro- tem features 70 cards by 70 different Mr. BROWN of Ohio. So I look vide Lipitor. private companies. It is a lot like the through these cards. I am a senior and Mr. STRICKLAND. They have to pro- multiple HMO system that my Repub- I decide Fosamax is here, and they also vide one drug in every class of medica- lican friends are trying to foist on do Claritin and Zoloft, so I want this tions; but there are many medications Medicare beneficiaries. The gentleman card. I pay $30 and sign up for the that are prescribed for high choles- from Maine (Mr. ALLEN) has said on whole year. And then Mr. Halbert’s terol. I can tell Members that I took the House floor that seniors want a company, if it is his card, he can one drug for high cholesterol for over a choice of doctors and hospitals and pre- change it, but I have to stay with this year, and it did not control my choles- scription drugs, they do not want a card, is that how it works? terol. It was not until my physician choice of insurance agents or fancy Mr. STRICKLAND. You can start out changed my prescription that I was ac- brochures or insurance companies. Un- by getting a discount of 10 percent, and tually to find control for my choles- fortunately, what this discount card in 7 days that discount can be reduced terol level. That is an example of the does is give seniors a choice of a whole down to 5 percent. I ask the gentleman problems that seniors are likely to bunch of discount cards, and it is al- from New Jersey (Mr. PALLONE) to face. most impossible to figure out which clarify this, but, for example, I am a Mr. BROWN of Ohio. Mr. Speaker, I one is the best. senior citizen and I have high choles- yield to the gentlewoman from Ohio A senior in Akron in my district will terol, and I take Lipitor to control my (Mrs. JONES). have to research through 50 cards to level of cholesterol. I sign up for a card Mrs. JONES of Ohio. Last year when find one that works. Under our plan, that has Lipitor as one of the medi- my mother was very ill, she had to get they could have used one card. Under cines that is available under that card, five prescriptions on her health care the Republican plan, they are going to and I am stuck with that card for an plan. I went to the pharmacist to pick have to go through 50 cards. They are entire year, but 2 weeks after I sign up up these various drugs. Three were going to have 50 cards that they need for that particular card, the card’s within the plan. One cost $10, another to sort through. Let me see, I am tak- sponsor decides they are not going to $10 and another $11; but two were not ing Fosamax. This card covers provide Lipitor any longer for high within the formulary and so one cost Fosamax, this card covers Vioxx, but cholesterol, they may decide to provide $263 for 30 days and the other cost $250. this card covers Zoloft, but this card Pravachol or some other drug, and I Seniors can choose what prescription covers Celebrex. am left without the ability to get the drug they will cover. So, for example, Why do they make this more con- drug with a discount that my doctor my mother had congestive heart fail- fusing instead of allowing seniors one says I need. ure and kidney failure, and her doctor card, one discount, one plan. Instead, Mr. BROWN of Ohio. Mr. Speaker, re- prescribed some of the newest drugs the Republicans have 50 cards, 50 plans, claiming my time, I choose a card and treating those types of conditions, but 50 insurance companies, 50 mailings I get a decent discount, even though those drugs were not covered by the coming to their house, 50 insurance the price goes up 20 or 30 percent per formulary; therefore, they were paying agents knocking on their doors rep- year. So you are the card maker, you significant dollars, and I anticipate resenting 50 different insurance compa- can both cut the discount and you can that will be the same problem for sen- nies. The answer is why would they take my drug off the discount card list iors. choose this over this? The answer is totally? Mr. PALLONE. Mr. Speaker, they are pretty obvious. It just might, and cor- Mr. STRICKLAND. Every 7 days, I only comparing cards on this Web site rect me if I am wrong, I ask my friends am able to make those kinds of and the fact of the matter is if we look from Washington and Ohio and Maine changes in the level of discount and in at any one of these drugs, and I am and New Jersey, it might have some- the drugs that are actually covered by going to use Lipitor. This is from the thing to do with the insurance indus- that discount card, and yet the senior National Committee to Preserve Social try, the drug industry, and Mr. will be stuck with that particular card Security and Medicare, what they did Halbert, CEO of Advanced PCS, that for an entire year. So I am locked into is they not only posted the prices for

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00087 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.170 H05PT1 H2638 CONGRESSIONAL RECORD — HOUSE May 5, 2004 drug cards, but also what you can get Now, CMS says, well, they have got a Mrs. JONES of Ohio. Mr. Speaker, I at some drug companies like cvs.com Web site. They can just go to the Web thank the gentleman for yielding to or drugstore.com or costco.com or site. Most seniors do not have com- me. what the price might be in a Canadian puters that are linked to the Internet. And the shame of it all is here we drugstore. That is just a fact. And the idea that have seniors who are in the twilight of Lipitor, for example, the cheapest is they are going to sit down and try to their life. The last thing they want to actually at drugstore.com. It may very choose among 50 different cards with do is to be surfing the Internet or look- well be there is a card that is not even all sorts of different drugs when the ing through booklets trying to figure on the list that will give a better dis- pharmaceutical companies can change out where to buy their drug, what discount, or you can get it online through the drugs that are on the cards any count they want, how will they choose. one of the other companies or drug- given week, week after week after It is really just ridiculous. It is a stores that is offered online; and cer- week, this is just absolutely nonsense. shame that we would put the burden on tainly in almost every case, the price is But there is an explanation. My staff the backs of seniors to require them to less in Canada. tells me that CMS has now admitted negotiate through this process. Even So the whole notion of trying to give that if we get seniors to work through with this proposal that will allow seniors a choice is just based on the no- this absolute maze, this absolute night- lower-income seniors a $600 benefit, tion that somehow these cards spon- mare of 50 different prescription drug they are probably going to spend so sored by the government are going to cards, it will help prepare them. much time trying to manipulate or give them a good choice. Reality is It will get seniors used to working make it through the process that they they are not. The same drug is cheaper with private plans, private insurance are not going to be payable able to ben- elsewhere on the Internet. plans. Instead of the Medicare plan, efit from this at all. Mr. STRICKLAND. I believe this is which has the same benefit and the It is almost like the lottery. One gets an election year scam, and America’s same additional premium for everyone a lottery ticket and they scratch off on senior citizens are going to be so con- in the country no matter where they it. Does this work? No, that does not fused. They are not going to know what live, we are going to have lots and lots work. Let me go to the next scratch choices to make, and we are doing it of private insurance plans. The systems off, and I am going to scratch off again. because an election is coming up in No- that are failing the small business And it is almost similar to how much vember and we want to present to our community today are going to be in- benefit we in Ohio got from the lottery senior citizens that we are actually flicted on seniors in Medicare, and it is in terms of education right now, and doing something meaningful when the not right. here we are imposing upon the seniors drug companies are telling us that they Mr. BROWN of Ohio. Mr. Speaker, it across this country the responsibility expect their drugs to be increased by is almost like NAFTA. People lose to figure out not only what plan to go about 18 percent this year and these their jobs. We are retraining them. We to, but how do they figure out the ben- discount cards are likely to provide are retraining seniors so they can ne- efit, and then in 2006 they are going to much less in discounts than that. gotiate private health plans. have to go back and figure out what b 2115 Think about what the gentleman plan to take and what plan will benefit So seniors are going to end up paying from Maine (Mr. ALLEN) said now. We them or not benefit them. more even with these discount cards had a choice. We could do what Presi- It is a shame that we are not stand- than they have been paying. dent Bush wanted to do on behalf of his ing up for seniors and saying, seniors, Mr. BROWN of Ohio. Mr. Speaker, it friends that own the drug companies just like Medicare used to go to work, is hard to say that it is a good deal and the insurance companies. We could they can go to the doctor, get their when the drug companies raised the have 50 cards to choose from and sen- Medicare. They can go to the phar- price 20 percent and President Bush has iors can go through and try to choose macist, get their prescription, and they a discount card that might be 12 or 13 the best one and pay $30 and the card- can move on without all this hassle. percent, and then it happens again and holder changes the way it works and And I agree with the gentleman from again. changes the discount, changes what Ohio (Mr. BROWN) that we ought to Mr. Speaker, I yield to the gentleman drugs are available. We can look at 50 make sure seniors understand the di- from Maine (Mr. ALLEN), who has done cards and choose and get about a 10 or lemma they have been placed in by this so much in this whole issue. 15 percent discount, or we could use legislation. Mr. ALLEN. Mr. Speaker, several one card and we could tell the govern- Mr. BROWN of Ohio. Mr. Speaker, I people are saying how much seniors are ment to negotiate price, tell the gov- thank the gentlewoman from Ohio going to have to pay for these drugs. ernment to negotiate on behalf of 39 (Mrs. JONES). The trouble is, one part of the problem million Medicare beneficiaries a better It is just incredible that the Congress is, it is their tax money that is being price the way Canada does. Canada’s has passed something to put more con- used to promote the program. We have prices are 30, 40, 50, 60, 70 percent lower fusion in seniors’ lives, to make the just seen the Federal Government than the United States because the Ca- choices more difficult, more com- spend tens of millions of dollars to pro- nadian government on behalf of the plicated. One of 50 cards that gives a mote the underlying prescription drug whole country, 29 million people, nego- small discount instead of using the benefit that will not take effect until tiates drug prices. buying power of 40 million Medicare January of 2006. Now there is an $18 Why could we not use a card like beneficiaries to get one good discount million taxpayer-funded campaign hit- this, give this to every senior, and then that every senior can put in his wallet ting the airwaves to promote these new negotiate prices on behalf of every sen- or in her purse and get a good 30, 40, 50 Medicare cards. ior in this country, 39, 40 million bene- percent discount like the Canadians So the public has to pay for the TV ficiaries? They go to a drug store and and the French and the Germans and advertising, to persuade them of some- they show this card and they automati- the Japanese and the Israelis and the thing that is not true, that is, that cally get that 30, 40, 50, 60, 70 percent Swedes and everybody else. these cards will actually help them. discount. Instead, because President Mrs. JONES of Ohio. Even in Cuba, There was an article in the Portland Bush receives so much money from the Mr. Speaker. paper today quoting one woman, 70- drug and insurance industry, he has Mr. BROWN of Ohio. Everywhere, Mr. year-old Jean Houston of Waterville, given us 50 cards for seniors to choose Speaker. And I cannot think of any Maine, who said she has already tried one of the 50, and then maybe, if they other reason. It is all because Presi- calling the Federal Government’s toll- are lucky, get a consistent 10 or 15 per- dent Bush has received literally mil- free number to enroll. She has not got- cent discount. So we have one card lions of dollars in campaign contribu- ten through yet. ‘‘I tried to sign up,’’ that could do 50, 60, 70 percent discount tions from the drug industry, from the she said. ‘‘I called five times yesterday or a choice of 50 that might do a 10, 15, insurance industry, and from Mr. and three times today.’’ How long will 20 percent discount. Halbert, the CEO of AdvancePCS and it take Jean Houston just to get I yield to the gentlewoman from Ohio his company and other companies that through? (Mrs. JONES). make these prescription drug cards.

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00088 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.171 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2639 I yield to the gentleman from Maine while the seniors get no benefit on top the morning so that he could start (Mr. ALLEN). of the billions of dollars we have al- twisting arms. And then the gentleman Mr. ALLEN. Mr. Speaker, I would ready paid. from Michigan (Mr. SMITH), who is re- just like to follow up by what the gen- Mr. BROWN of Ohio. Mr. Speaker, it tiring and whose son is running in a tleman is saying because this may is hard to think when this bill was Republican primary, indicates that he seem to many people in this country to written by my friends on the other side was approached on the floor of this be a very odd result. Why on earth of the aisle, if my colleagues remem- House, the people’s House, and offered would the Republicans in Congress and ber, during the debate on that, they $100,000 for his son’s campaign if he the President put pass this kind of started the debate at midnight. The would change his vote. Think of that. complicated plan? Well, remember vote was cast at 3 in the morning, not Think of that. And at 6 o’clock in the what they said when they passed it. finished until 6 in the morning, so they morning as the sun was coming up, They said that in the long run, this could twist enough arms and do enough they finally convinced enough Mem- would help save money, this would be drug company contributions to get it bers to change their votes, and the bill cost efficient. We would have competi- through, it is hard to think that sen- passed. tion between plans and that would iors were ever in the calculation. It That is not how an important piece drive down costs. was about the drug industry and the in- of public policy should be crafted in a Not exactly. Right now, right now, surance industry. democracy. And we walked home that the private plans are being paid 107 per- Mr. STRICKLAND. Mr. Speaker, will morning, as the gentleman recalls, as cent of the cost to Medicare. That the gentleman yield? the sun was coming up after that kind clunky old government-run fee-for- Mr. BROWN of Ohio. Mr. Speaker, I of shameful behavior had taken place service Medicare program that the Re- yield to the gentleman from Ohio. in this Chamber. And now they are publicans wanted it to get rid of. The Mr. STRICKLAND. Mr. Speaker, I spending $18 million on TV ads to try private plans are being paid 100 percent noticed that we have got some people to convince America’s senior citizens more than it cost Medicare to deal in the balcony tonight, and many of that it is a good thing. Shame on this with the average Medicare beneficiary. our constituents obviously are watch- administration for this kind of polit- We will pay those private insurance ing through C–SPAN. I think it is ap- ical shenanigans. plans $46 billion more than it costs the propriate that we just take a moment Mr. BROWN of Ohio. Mr. Speaker, I government-run fee-for-service Medi- and explain. yield to the gentleman from Maine care plan. In other words, we are pay- ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE (Mr. ALLEN). ing private insurance companies more The SPEAKER pro tempore. The gen- Mr. ALLEN. Mr. Speaker, I thank than it costs to deliver Medicare to tleman will refrain from noticing the gentleman for yielding to me. Medicare beneficiaries today and for guests in the gallery. I want to follow along with what the what reason? Why on earth? Well, the Mr. STRICKLAND. Mr. Speaker, I gentleman from Ohio (Mr. STRICKLAND) insurance industry knows it is money am very glad that there are those has been talking about because just in their pocket. Not millions of dollars, watching us tonight and are paying at- this Monday, the Congressional Re- not hundreds of millions of dollars, but tention to what we are saying because search Service issued an important re- billions of dollars. The pharmaceutical we have lots of constituents. I have port, and in that report they concluded industry knows as well. lots of constituents back in Ohio cer- a couple of things. First of all, they Mr. BROWN of Ohio. Mr. Speaker, tainly that are watching, and I am sure were looking at this issue that was think about this. We are giving the in- there are constituents watching from raised by Richard Foster, the Medicare surance industry $46 billion just direct, Maine and New Jersey and elsewhere. actuary who has testified that he was reach in taxpayers’ pockets, put $46 bil- And I think they need to know how threatened by his boss, Tom Scully, lion from taxpayers’ pockets into in- this bill came into being. We received the head of CMS, that if Foster went to surance companies’ coffers. I mean, this bill as a body, over 700 pages, I be- Congress and told them the truth about there is no doubt about that, $46 bil- lieve, on a Friday morning. We began his projections for what the Medicare lion. That is actually $1,100 for every that debate. We debated Friday after- bill would cost, which was $150 billion single senior in this country. There are noon and through the night and at more than what administration was 40 million Medicare beneficiaries. That three o’clock in the morning when saying, if he went to Congress and told is more than $1,000 for every senior in most of the people who are watching us them that, he would be fired. this country. So instead of giving $1,000 tonight were probably asleep. Let us look at this report. This re- to seniors to buy a drug benefit, which They finally called the vote. I would port was just made public on Monday. is a lot of money and most seniors have remind my colleagues that this is prob- One point here it says ‘‘Congress’s drug costs not much more than that, ably the most important piece of do- right to receive truthful information and many have a lot more, but $1,000 mestic legislation that this body has from Federal agencies to assist in its goes a long way for anybody, instead of considered maybe in many years, and legislative functions is clear and unas- giving $1,000 to every senior, we are we recall that the President told us it sailable.’’ giving the insurance industry $46 bil- was going to cost $400 billion. Now we b 2130 lion, $46 billion that could go to all find out that his own administration’s kinds of things. But how much money actuary had indicated it was going to They go back to say that according did they give President Bush and the cost over $550 billion, and apparently to the report, attorneys at CRS said gentleman from Texas (Mr. DELAY) and he was told he would be fired if he told these gag orders have been expressly the Republican leadership? the Congress, those of us who are sup- prohibited by Federal law since 1912. Mrs. JONES of Ohio. Mr. Speaker, posed to be representing the people of Let me read you one of applicable will the gentleman yield on just that this country. He was told he would be laws. It is at 5 U.S.C. Section 7211. point? fired if he told us the actual cost, an ‘‘The right of employees individually Mr. BROWN of Ohio. I yield to the action that the CRS, the Congressional or collectively to petition Congress or gentlewoman from Ohio. Research Service, is now saying was a Member of Congress or to furnish in- Mrs. JONES of Ohio. Mr. Speaker, I probably an illegal act. formation to either House of Congress will be short. Not only are we giving But anyway, at three o’clock in the or to a committee or Member thereof them this money up front. When the morning they called the vote here in may not be interfered with or denied.’’ seniors finally do get a prescription the people’s House. And at the end of But the truth is that the head of drug benefit in 2006, we are going to be that 15-minute voting period, the bill CMS, appointed by this President, re- forcing the seniors to pay the premium had lost because it is a bad bill. And fused to allow his employee, the Medi- every month into the plan and they they kept the vote open, not for 15 care actuary, to tell Congress the will get no coverage when their drug minutes, not for 30 minutes, not for an truth. So on the night of that vote, Re- costs are between $2,000 and $5,000, that hour, not for 2 hours, but for 3 hours. publicans and Democrats believed that doughnut hole we have been talking And the press said that they got the the only applicable projection was that about. So these plans will get money President out of bed at four o’clock in this law would cost $400 billion over 10

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00089 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.173 H05PT1 H2640 CONGRESSIONAL RECORD — HOUSE May 5, 2004 years, when Medicare program officials uation where they are giving $46 billion of waste, fraud and abuse on this $18 themselves knew it would be $550 bil- of taxpayer money to the insurance in- million plan to try to sell this to the lion. dustry, which is totally unnecessary, American people. Why is that waste, We have talked about this before, all because we could have given exactly fraud and abuse taking place? this money going to the insurance in- the same benefits through Medicare. Well, there is a reason for it, and the dustry, $46 billion more than it cost Now, I challenge any Republican, any reason about it is that this administra- the government-run program. No won- Republican or any Democrat, or any tion understands that the seniors have der it is not cost-efficient. No wonder Green Party or socialist or inde- figured out it is an Edsel, and the sen- it breaks the bank. No wonder that it pendent, to show me a larger portion of iors know about the Edsel. Maybe some delivers a very small benefit, given the waste, fraud and abuse than the $46 bil- of our younger constituents do not, but amount of money being spent on it. lion of taxpayer money going to the in- it is a turkey. This report makes it clear: The law surance industry, that does not deliver The seniors know it is an Edsel, and was violated when the Congress was one penny of additional prescription that is why these guys are spending not told what the cost of this bill drug benefit to seniors than Medicare millions of dollars of taxpayer money would be, what the projections of the could have done, had we not been in- to try to dig themselves out of this Medicare actuary would be, and that in volved in the shenanigan, not to pay horrible hole they have dug us into. It itself makes it clear, it never would off, but to pay benefits to people who is an abomination. have passed this Chamber if we had are very, very powerful political forces I have to tell you, I am glad we all been told the truth. in this town. are here talking about it tonight. Mr. BROWN of Ohio. Mr. Speaker, re- This I would nominate for the largest Mr. BROWN of Ohio. Mr. Speaker, I claiming my time, imagine if every- piece of waste, fraud and abuse, foisted thank my friend for his compassionate body in this Chamber had known, on this country by the Republican commitment. Democrats over here, Republicans, if Party, and it is an abomination. When I yield to my friend, the gentleman all of us had known that this bill would you think about the generation having from New Jersey (Mr. PALLONE). send 46 billion taxpayer dollars directly this done to them, think about who the Mr. PALLONE. Mr. Speaker, I am to insurance company coffers. If people victims of this fraud are, it is the men glad the gentleman mentioned this $18 in this hall had known that, Members and women who we will be celebrating million payday. I do not have it in of Congress had known that that would on Memorial Day down when we dedi- front of us to show, but I wanted to mean $1,100 for every Medicare bene- cate the World War II memorial. My read one of the ads that began airing ficiary would just be a gift to the in- dad is coming in. He was a World War this week. surance industry, no matter how much II veteran. It shows a line of older people at a money the drug companies gave to Re- This is the greatest generation. They pharmacy. Most have Medicare-ap- publican leaders, no matter how many prevailed in World War II, and how do proved cards that emit a blue light. calls George Bush had made to Repub- we treat them? We foist this abomina- The announcer says, ‘‘Good news for lican Members, no matter how many tion, that can only pass this Chamber those with Medicare. You can get sav- arms they twisted, no matter how through fraud itself, a situation where ings on prescriptions.’’ many drug company lobbyists had de- my colleagues have talked about the 3- At the end, there is a disappointed scended like vultures into this institu- hour delay. looking man that steps to the phar- tion, no matter all of that, if we had It reminds me of when we beat the macy counter without a Medicare-ap- known, if they had not broken the law Russians in 1964 in the Olympics in the proved card, and the announcer says, and been honest with us, if we had basketball game. The only way the ‘‘Because you either have the power to known 46 billion in taxpayer dollars Russians won was to put time back on save, or you do not.’’ were going directly from taxpayer the clock. This was a Russian-style de- Essentially, the whole emphasis here pockets to insurance companies, there mocracy, when they put 3 hours back is that you are going to save money. As was no way this bill would have passed. on the clock. But during that 3 hours, my colleague from Washington said, it There is just no way. No matter how what happened? There was a Repub- is essentially a lie. I guess we cannot many lobbyists, how much campaign lican Congressman who reported that use the word ‘‘lie’’ here. It is just a money, how many calls from the Presi- he was offered a $100,000 bribe, in es- total misrepresentation of the truth. dent, this bill simply would not have sence, to his son’s campaign, if he In some ways, I do not want to say I passed. would switch his vote. Does the great- am glad, because it is such a tragedy I yield to my friend, the gentleman est generation deserve that type of and it is almost immoral, as the gen- from Washington (Mr. INSLEE). contempt for democracy in this Cham- tleman pointed out, but in some ways I Mr. INSLEE. Mr. Speaker, I want to ber, which has sullied the name of Con- am almost glad we have this experi- dovetail on this, to reference why this gress and Medicare? ence with the discount drug cards for is so spectacularly ironic. About an I have to tell you one thing, I will the next 6 months or 2 years before the hour ago one of our Republican col- tell you, my Republican colleagues, year 2006 when the so-called Medicare leagues was railing about the only this dog is not hunting with our con- prescription drug benefit gets into problem with the Federal Government stituents. I had meeting with 200 senior place, because I strongly believe that is waste, fraud and abuse, that that is citizens in Edmonds, Washington, when the seniors see what this dis- the only problem, and just if the Demo- many of whom are stalwart Repub- counts card is and what a fraud and crats would stop all this waste, fraud licans, two weeks ago. I asked for their sham it is, they are going to want to and abuse we would have no problems. hands. This is a nonpartisan senior repeal this whole bill, and maybe we’ll I thought that was interesting, be- citizens group, just a bunch of folks have the opportunity over the next 6 cause this entire government is run by concerned about this. months or a year to show what a sham the Republican Party, a Republican We talked about this bill in some de- this discount card is and actually get President, a Republican Senate and a tail, and I asked how many people be- the votes to repeal this lousy bill that Republican House, yet he pointed out lieve this bill was substantially bene- is not helping anybody. all this waste, fraud and abuse in the ficial in their lives and that it deserved One of the things that I did not men- Federal Government. I wanted to stand passage by Congress? Not one single tion, and I think we should, we men- up and say, who is in charge of the hand was raised of those senior citi- tioned the fact there is no guaranteed waste, fraud and abuse? Obviously it is zens, who were an eclectic group of discount from the card sponsors. We the Republican Party, because that is conservatives and not-so-conservatives said that. Then we said there is no who is running this government right and Democrats and Republicans. guaranteed discount on particular now. It is not playing, it is not being ac- medicines. Then we also said there is But here is this gentleman wailing cepted, and because it is not accepted, no guarantee that the discount offered about waste, fraud and abuse, when his people understand this, and people need by a particular card will be the lowest party foisted down the throats of Con- to know why their taxpayer money is price available for a particular indi- gress and the American people this sit- being wasted in another great incident vidual, because they might be able to

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00090 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.175 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2641 get another card or go on the Internet Washington (Mr. INSLEE) and to the of public tax dollars and putting these and find a lower price. gentleman from Ohio (Mr. STRICKLAND) ads on TV, trying to convince our sen- But what we did not mention is there and to the gentleman from Maine (Mr. iors that they are doing something is no guaranteed access to any par- ALLEN), this story is almost like the good for them. ticular pharmacy, and that the final story our mothers used to read to us Well, America’s seniors are a pretty price paid for prescriptions will vary when we were growing up, The Em- wise bunch. They have lived through a from pharmacy to pharmacy. So even if peror Has No Clothes. lot. Many of them have lived through you get the card and you think you are Remember this person came to the the Depression. They have lived going to get the savings, which you do emperor’s palace and said, ‘‘Okay, em- through the wars. These are not chil- not necessarily get, because they can peror, I want to make you this finest dren in their understanding. They have change it from day to day, or you do robe out of this wool. The wool is so watched government. They know those not necessarily get the drug you think fine, you will not be able to see it. I am who are for them and those who are you are getting because they can going to go to the barn and I am going against them. change the drug, you may not be able to string it and so forth and so on and b 2145 to go to your local pharmacy or any I am going to come back with this gor- particular pharmacy nearby, because And America’s senior citizens are geous robe.’’ angry tonight, because they des- that pharmacy may decide they are not The emperor kept saying, ‘‘I cannot perately need help with the cost of going to honor the card. see it, I cannot see it.’’ their medications. There are seniors in Then, in addition to that, the way I He kept saying, ‘‘But it is there. It is this country I believe losing their lives understand it, is they can charge a dif- there. I am going to put it on you, and because they are unable to afford the ferent price, because they can decide at you are going to walk down the street medicines that they so desperately the pharmacy whether they are going of your community, and everybody is need. They know that this bill that was to make a little more profit or not on going to go, oh, what a beautiful robe the particular drug they sell. passed here in the Chamber under these you have on, emperor.’’ terrible circumstances specifically pro- We have also have had some the com- Come to find out, the emperor hibits the reimportation of cheaper panies, this web site has only been on, walked down the street with no clothes drugs from Canada. They know that I do not know how long, I guess a few on, naked, just with his underwear on. days or maybe a few weeks, but already the Secretary of Health and Human And that is what this bill is like. It is Services is specifically prohibited from some of the companies are writing naked. It is saying to seniors, I am back, and I had one of them, saying negotiating discounts for our senior going to give you this great bill, you citizens, although the Veterans Admin- that the information that is being are going to get all these benefits. But given on the web site about their card istration negotiates discounts as a sav- it is like the bill has no clothes. It is a ings of, I think, about 40 percent. They is not accurate. piece of paper with no benefit for sen- I just have never seen so much misin- know that this bill was written by and ior citizens. It is a card that gives formation, untruth. I do not know how for the pharmaceutical industry, and them nothing. It is a premium that to describe it. they are angry. Mr. BROWN of Ohio. When it could they are given for a period of time, and And I think they are going to express have been so simple. When it could they get nothing. themselves come November, because have simply been one discount card The fact is, it is a misrepresentation, they are sick and tired of being used as where the government negotiated and it is just like that emperor walk- political pawns, of being given false price, using 40 million beneficiaries as ing down the street without any and exaggerated information; and I the negotiating pool, could have gotten clothes. think they are going to stand up and one much lower price. Instead of that, I just want to thank all my col- say, we have had enough. We built this because the drug and insurance compa- leagues for their leadership on this country. We fought the wars. We built nies wanted it, the President made it issue. our schools and our hospitals. We have very, very confusing. Mr. BROWN of Ohio. Mr. Speaker, I made the sacrifice to make America Mr. PALLONE. Essentially it is a lie, thank the gentlewoman from Ohio. what it is today, and we are sick and because it is not the truth, because I yield to the gentleman from Ohio tired of being treated like second-class they are saying that the main goal (Mr. STRICKLAND). citizens. I think America’s seniors are here is to save money. There is no rea- Mr. STRICKLAND. Mr. Speaker, I going to be expressing themselves loud- son to believe that. want to thank also my friend the gen- ly and clearly, and the best way they But I just go back to what my col- tleman from Ohio (Mr. BROWN) for lead- can do that is to do it with their vote. league from Maine said. The purpose of ing this discussion tonight. That is the one way they can fight all this is to get people used to privat- I really believe what we are dealing back. ization, and not used to a government with here is an administration that Mrs. JONES of Ohio. Mr. Speaker, if program like Medicare. And I am be- truly does not believe in Medicare, and the gentleman will yield just for a mo- ginning to believe, maybe I am too op- this effort is not going over well with ment, can we imagine if the seniors in timistic, that when people see how our senior citizens. Ohio had been able to ask these same lousy the private sector is, if this is an As my friend the gentleman from questions of President Bush when he example of it, they are not going to Washington (Mr. INSLEE) said, the ex- was parading through Ohio. Can we want it and they are going to reject it. perience that he had with his seniors, I imagine if they had been able to say, That is the only positive thing I can have had the same experience with the President Bush, what am I getting see coming out of this. seniors in my district. When I sit down from this prescription drug benefit? I Mr. BROWN of Ohio. I yield to my with them and I explain this bill, I ex- mean, the day that the card was issued, colleague, the gentlewoman next door plain how it came into being, the she- here he was parading around Ohio, but in Ohio (Mrs. JONES). nanigans that occurred right here in he was not talking about the non- Mrs. JONES of Ohio. First of all, I the people’s chamber, the benefits that prescription benefit. He was talking want to commend my colleague the are so difficult to understand, the bene- about the jobs that we did not get in gentleman from Ohio (Mr. BROWN) for fits that are really going not to the Ohio as well. his leadership on this issue. He has senior citizen, but to the insurance So those seniors could have said, been right on top of all of this as long companies and to the pharmaceutical President Bush, President Bush, I need as I have been in Congress, and this is companies, they are outraged. a prescription drug benefit. Can you my sixth year in Congress, and I am They say to me, ‘‘What can I do to help me? just so proud to be a part of the delega- respond? Who can I talk to? How can I Mr. BROWN of Ohio. Mr. Speaker, I tion in which he is one of our more sen- express the anger that I feel?’’ And want to thank all of my colleagues to- ior Members. That is no offense to you, that is what is happening across this gether tonight: the gentleman from talking about ‘‘senior.’’ country, and the administration is Ohio (Mr. STRICKLAND), the gentleman But to the gentleman from Ohio (Mr. starting to feel the heat, and that is from Washington (Mr. INSLEE), the gen- BROWN) and to the gentleman from why they are taking I think $18 million tlewoman from Ohio ( Mrs. JONES), the

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00091 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.176 H05PT1 H2642 CONGRESSIONAL RECORD — HOUSE May 5, 2004 gentleman from New Jersey (Mr. curate. No American should deny the mitting our failures, and we are cor- PALLONE), and the gentleman from truth, nor ignore this unacceptable and recting it. But we recognize that any Maine (Mr. Alan). illegal behavior. In fact, the source of noble cause, any war that has a noble I want to close with an interesting information and photos documenting cause is messy, just like all wars are point that the gentleman from Ohio wrongdoing appears to have come from messy and brutal undertakings. And (Mr. STRICKLAND) raised. He said it just an investigation, an investigation that for Americans, war is usually thrust seems that Republicans do not much was set forth and set in motion by the upon us. like the Medicare program. On the sur- Pentagon itself. The Pentagon Tonight, I rise to discuss the war on face, that does not sound like it makes launched an investigation in order to terrorism, a war that was thrust upon sense, because I have a whole lot of Re- end any abuse of prisoners that may us. This great challenge to our genera- publican constituents who love Medi- have been taking place. Americans can tion is the challenge we must face. His- care. They know it has saved their be proud that we have standards that tory records that the people of the lives and let them live longer, let them will not tolerate such abuse, and the United States rose up and courageously live healthier lives; but there is some- Pentagon moved to correct it before it defeated the forces of evil that threat- thing about Republican politicians and was publicly known. ened this planet during the last cen- their relationship with Medicare. We Americans should not flagellate tury. First we defeated the combined Back in 1965, 12 Republicans, 12 Re- ourselves because of a tiny number of might of the German Nazi and Imperial publicans total voted for Medicare, to American personnel who humiliated or Japanese war machines. Without the create Medicare. Bob Dole voted abused prisoners. Certainly, the vast, strength, courage, and sacrifice of the against it, Gerald Ford voted against vast majority, if not 99.99 percent, of American people, this would have been it, Strom Thurmond voted against it, our troops in Iraq and Afghanistan a far different world dominated by the Donald Rumsfeld voted against it. have conducted themselves in a coura- likes of Tojo and Hitler. And, yes, in Then, 30 years later, the first time the geous and honorable way. But such that war there were some abuses and Republicans had control of this House abuses and such mishaps and wrong- some mistakes by American military and the majority, they tried to cut $270 doing have occurred in every war. personnel, but does that mean that our billion, with a B, billion from Medi- From the American Revolution on, we cause of eliminating Hitler and Tojo care. That failed because President have seen soldiers who perhaps lose a was wrong? Certainly not. And we Clinton got out his veto pen and said, friend and are struck by grief and lash moved to correct those abuses, just as Do not even try. out with revenge, killing a person or we have moved in this case when we Then, in 2002, or in 1999, Congressman killing a prisoner or mistreating a pris- have found some people who were mis- Armey, the second top Republican in oner or, we find, in some cases, a per- behaving and doing some immoral Congress, said, in a free society, we son with sadistic tendencies ends up things. would not have Medicare; we would not overseeing the prisoners that have been After World War II, Americans be- want something like Medicare. What- taken. This happens in every war and lieved they had earned a better and a ever that meant. Then, in 2002, another conflict. Yes, things like this may have more peaceful life, only to realize that Southern Republican Congressman in happened in this war as well. another evilism, communism, would the leadership, the gentleman from The question, however, is what is to destroy democracy unless America Georgia (Mr. LINDER), said that Medi- be done? Our government has declared acted. The Cold War was upon us. Had care is a Soviet-style program, what- such treatment of prisoners as wrong it not been for the tenacity of the ever that meant. and illegal. We have thus maintained American people, for our love of liberty The fact is that a lot of us in this in- an honorable standard that we can be and, yes, our willingness to bear the stitution, every single Democrat and proud of. burden for a sometimes ungrateful some of the Republicans, care deeply Many of those criticizing us now or world, a Marxist-Leninist dictatorship about Medicare and want to preserve jumping to criticize us have no such would undoubtedly be dominating this it, and that is why we fought against standard. They murder their own peo- planet. the privatization of Medicare that ple. Saddam Hussein, for example, Do our Muslim friends really believe President Bush tried to foist upon us. butchered hundreds of thousands of his that it would have been better for us That is why instead of these 50 cards, own countrymen. We found the mass not to have won the Cold War? Do they we want to see one discount card where graves, and in those mass graves were believe that the Marxist-Leninist re- seniors get a good benefit under Medi- thousands and thousands of children. gimes like they had in Yemen would care, get a 30 or 40 or 50 or 60 percent Now, the world, the Arab world in have been better throughout the Mus- discount like our neighbors to the particular, criticizes us over and over lim world? Certainly the rest of the north, the Canadians have, and like our again, finding everything that they world understands that communism neighbors across the ocean in Europe could possibly criticize us about, for was an evil force, and we can be proud have. Instead, what we got was a bill trying to remove this sadist Saddam of ourselves that we helped defeat that written by the drug discount card com- Hussein from power. Most of those force, and it would not have happened panies, written by the insurance com- Arab countries who criticize us or Arab without America. panies, written by the drug companies, organizations that criticize us, well, let I am proud to have served in the all of whom are major contributors to us take a look at the criticism. Yes, it White House during a pivotal time in the President of the United States. is wrong to abuse prisoners, and to the that Cold War. For 7 years I was a Mr. Speaker, it was a sad day last extent that they were, we were wrong. speech writer and special assistant to December when this bill passed. It was But we are actually trying to correct President Ronald Reagan. It is clear a sad day when President Bush signed the problem. But those people, most of now that it was the tough policies put this bill. We all have work to do. those people or many of those people in place by President Reagan that f who are criticizing us do not come any- brought the collapse of the Soviet where close to a humanitarian stand- Union and brought the collapse of So- AMERICA’S WAR HISTORY ard of their own. They should not be viet communism and an end to the The SPEAKER pro tempore (Mr. pointing fingers at us or at our troops. Cold War, but it was not easy. It was COLE). Under the Speaker’s announced This is sort of like the drunk down the not a historic inevitability, as we are policy of January 7, 2003, the gen- street who has been arrested for drunk being told now; and it would not have tleman from California (Mr. ROHR- driving and had his license taken away happened on its own. ABACHER) is recognized for 60 minutes. pointing his finger at a neighbor be- So please do not tell me also of the Mr. ROHRABACHER. Mr. Speaker, cause the neighbor is drinking a beer bipartisan spirit that enabled Presi- just a few thoughts about the con- on the front porch. dent Reagan to rebuild our defenses, troversy concerning the abuse of pris- Well, this hypocrisy comes from that enabled President Reagan to sup- oners by American contractors and nitpickers, naysayers, and America- port those fighting Communist domi- military personnel, if accurate. Some bashers. It is a bit too much. We are nation, that bipartisan spirit that en- of these charges, of course, must be ac- correcting a bad situation. We are ad- abled President Reagan to vigorously

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00092 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.178 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2643 expose the immoral underpinnings of dent George Bush, father of our current Now, I was dressed as an Afghan and Communist power. No, do not tell me President, has to accept the lion’s I was dressed as a Mujahedin soldier. I that. I can testify to the Herculean ef- share of the blame for this cowardly, had a beard, et cetera. We could see fort that was needed to end the Cold arrogant and selfish policy. these tents. They were luxurious tents. War and that I never saw the biparti- There would be no Marshall Plan for It was more like a modern day camping sanship the Democrats now remember Afghanistan or anything else from the expedition by some rich people with so vividly. United States because when we left, we SUVs than a Mujahedin camp, that was What I remember is that every time left everything up to the Saudis and for sure. we took a stand, as when we opposed a the Pakistanis. Unfortunately, the But I was told immediately that that freeze on nuclear weapons production, Saudis and Pakistanis had their own was the camp of the Saudis and that I that freeze which would have permitted agenda. should keep my mouth shut and that the Soviet Union to dominate Western This was an unholy alliance doing no English would be spoken until we Europe, and as when we supported the bidding of radical anti-western were far away from that camp because those resisting the Communist Sandi- Muslims in their own countries, mean- they said there was a crazy man in that nista regime in Nicaragua, the liberal ing Saudi Arabia and Pakistan. And camp who hated Americans, worse than wing of the Democratic Party, ampli- while the majority of the Muslims even he hated the Soviets, even though we fied by their friends in the media, in a Saudi Arabia and Pakistan are Americans were there helping to defeat blasted Reagan and blasted those of us wonderful people, there are large num- the Soviet Army. on his team as warmongers, as if Amer- bers of others who believe they have a They said that man’s name is bin ica and as if we were responsible for right to commit horrendous acts of vio- Laden, and if he finds out we have an the conflict between East and West, lence in the name of Allah, or as we American with us, he would come to and we were, of course, portrayed as would say, in the name of God. kill us just as he would kill the Soviet the bad guys, even though we were pro- Instead of trying to defeat, control or soldiers. So it was no surprise and it moting democracy. subdue these elements, the leadership should have been no surprise that there The dictatorial concepts that are spe- of Saudi Arabia and Pakistan has tried was a real potential threat there in Af- cial to Leninism were just shrugged to buy them off, compromise with off. By the way, the Sandinistas, who ghanistan, waiting in the wings to take them and as is evident now, the leaders the American left heralded as the rep- hold of that country. But instead of re- of Pakistan and Saudi Arabia, many of resentatives of the Nicaraguan people, building Afghanistan, Pakistan and these leaders, sympathized and allied have lost every free election that has Saudi Arabia turned it into a mid evil been held in that country since Presi- themselves with Muslim extremists kingdom run by psychotic, religious fa- dent Reagan insisted that free elec- who would make war on the west and natics. tions be part of any peace plan there. were intent on destroying our way of Now, in hindsight we know the hor- Ironically, one fight in the Cold War life, the American way of life. rific role the Saudis and Pakistanis that did have bipartisan support was in I first became aware of these vile have played in formulating anti-west- Afghanistan. There we supported the forces within the Muslim world while I ern Islamic terrorism, and we should Mujahidin, local insurgents who fought was still at the Reagan White House. also note that many of them today courageously for 10 years against a So- One of the worst of these blood soaked have committed themselves, many of viet occupation army with all of its ar- monsters was Gulbuddin Hekmatyar, a the leaders of those two countries have tillery, tanks, helicopter gun ships, and fanatic who in college was known to committed themselves in an opposite a willingness to do anything to destroy have thrown acid into the face of course. They are trying to correct what its enemies. Here was the greatest vic- women who refused to cover them- was done wrong 10 years ago which tory of the Cold War, which broke the selves. It is shameful that a dispropor- helped create this problem. And we will of the Communist Party bosses in tionate share of what America sent to hope that they are sincere when they Moscow. Afghanistan to fight the Soviets went joined us in our effort in our war However, the Afghan people paid an to this beast. Even when objections against terrorism and the war of the enormous price for this victory: mil- were registered, and I can assure you west against this terrorist threat. But, lions dead or wounded, families, vil- that strenuous objections and com- let us note that when this was hap- lages, and a way of life destroyed; peo- plaints were made, the CIA and the pening and the Soviet and the Saudi ple living in abject poverty, with a mil- State Department continued to the leadership and the Pakistanis were ac- lion babies dying of dehydration and policy of channeling our aid through tually helping the terrorist element or other easily curable conditions and dis- Pakistani intelligence, the ISI, who the anti-western element within the eases. then passed on much of it to their first Muslims in Afghanistan, that part of The retreat of Soviet troops from the choice, to their golden boy, Gulbuddin the world, we should have seen it com- Afghan war marked the end of the Cold Hekmatyar. ing. War. It was not the German people, let So we knew crazies were out there But just as the Saudis and Pakistani us note, who brought down the Berlin and we knew the Saudis and the Paki- leaders subsidized and even assisted in Wall; it was the bravery and sacrifice stanis supported them. Yet, we walked this type of insanity, our government of the Afghans. And while we cele- away and left them in charge. stepped aside and permitted the Saudis brated and prospered, the Afghans con- Later, I learned, after I left the and Pakistanis to have their way. tinued to suffer. Not only now are we White House, that the problem was So the Saudi and Pakistani leader- helping remove the millions of land- even worse than I suspected. After I ship either helped or stood aside as mines planted throughout their coun- left the White House, I left the White these radical Muslims who hate the try, many of which we supplied our- House in 1988 to run for Congress and I west and would make war on us began selves to the Afghans; and these land- won that election in early November of to take control, and then we stepped mines, which we are only now helping 1988. And while other Members of Con- aside and let the Saudis and Pakistanis to remove, kill and maim young Af- gress took vacations during their 2- have the decision and make the deci- ghan children even to this day. month break between the time they sion. Yes, and we even helped the The roots of our current terrorist were elected and sworn in, I instead challenge lie not in our support, not in Saudis and the Pakistanis make that went to Afghanistan. I went to Afghan- our support for the Afghan people and decision. istan and joined for about a week an What was U.S. policy? We need to their fight against the Soviet occupation, but in our unconscionable deci- Afghan military unit, an infantry unit look at what the U.S. policy was in the sion in 1990 to walk away and leave that marched into the battle, and it 1990s that brought about this situation them in their rubble and suffer their was the last major battle with Soviet that we are in today. One of the things misery. troops in the war of Afghanistan, the that I find most disturbing about the Battle of Jalalabad. As I was hiking current hearing into the tragedy of 9–11 b 2200 into that battle with this Mujahedin is that it downplays the importance of Walking away was a policy decision. unit, we hiked where we could see a American policy in the laying of the It was wrong. It was dead wrong. Presi- group of tents in the distance. foundation of 9–11. They would rather

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00093 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.180 H05PT1 H2644 CONGRESSIONAL RECORD — HOUSE May 5, 2004 talk, meaning those people who are That is the better world President vengeance upon him if he was returned conducting this investigation, would Bush is trying to build. But it must to power. rather talk about flow charts and orga- start in Iraq. And if we lose in Iraq, the After visiting him in Rome and being nizational structure and a lack of a evil forces that would separate the beaten by him in a chess game, I took shared data base and no central coordi- west from the east and would have us it upon myself to promote the exiled nation than trying to fix responsi- fighting among various religious fac- monarch as the logical choice to bring bility. tions, they will then dominate this normalcy back to Afghanistan. So it is We keep hearing that setting the planet and we will not be able to stop not like there was not an alternative blame, they call it the blame game, them except at much greater expense to the policies that were put in place. wrong is wrong. It is a bad thing to do. of blood. It was the logical choice. Yes, it was Well, I am sorry, 9–11 represented not It is a strong vision that President the logical choice except for the oppo- an unavoidable tragedy but a dramatic Bush has. It is a noble vision; and it is sition of Pakistan and Saudi Arabia. failure of policy and of people. Those the vision of a world living at peace The Pakistanis knew they could not who put the policy in place should be where Muslims, Christians, Jews live control Zaire Shah. held accountable. The individual lead- together and this vision is stronger Zaire Shah had ruled over that coun- ers in our intelligence, the national se- than what the radicals are advocating. try for 40 years. He was independent curity system who failed to thwart 9–11 They were trying to basically oblit- and a fair and honest man. When he because of their own incompetence and erate the faith and the culture of oth- was in a charge of Afghanistan, they bureaucratic arrogance should be held ers. And our President is trying to lived a relative peace for 40 years. But accountable. make sure that the world is safe for us the Pakistanis were intent on domi- Tonight I will provide a number of to live together in peace and harmony, nating Afghanistan as many of them examples of policies that led to the em- no matter what our faith is. And we still are and they ruled out bringing powerment of the hostile radical Is- must succeed in Iraq. And I am here to back King Zaire Shah. The Saudi want- lamic movement that we face today today to applaud the President, and ed to placate their own radicals. That and to the policies and to the people there has never been an action that has is why they did not like Zaire Shah, who enabled these weird, feudalistic re- been perfect, but he is doing a tremen- the old exiled king. They wanted to ligious fanatics to become a major dous job, as have our troops. As we sup- placate the Wahabis who are their rad- threat to the western world and espe- port that, if we have succeed, we must ical sector in Saudi Arabia. So they cially a threat to the people of the hold those in our government, however, too, the Saudis, nixed the return of the United States. when we will hold them and we will king. September 11 was the greatest mas- make sure that they get the praise for But most disturbing to me is as I so- sacre of American civilians in the his- a successful policy when and if we suc- journed throughout that region on my tory of our country. Yes, we are in the ceed, which I believe we will in Iraq. own, sometimes at great personal risk, process of hunting down the perpetra- But we must also, when we have a promoting the Zaire Shah alternative, tors of this monstrous crime and de- failure of policies, recognize what that U.S. State Department officials would stroying their terrorist network. And I policy was, what made us vulnerable to follow me explaining that I was speak- strongly believe our President is re- the attack on 9–11, for example, and we ing for myself and that I was a lone solved to do what is necessary to get must hold those people accountable junior Member of Congress not to be the job done and secure our country who failed to protect us and failed to taken seriously. and our world in the future. He and our put the policy that would best serve These arrogant and amoral policy- military are doing a superb job under the United States and the western makers of our State Department could the most difficult and dangerous of cir- world. This is not the blame game that have given Afghanistan a chance for a cumstances and they are being nit I am talking about. It is holding people leader who was decent and caring and picked and naysayed to death every accountable for decisions that they peace loving, who loved his people and time a mistake is made. People are have made while in public service and were loved by them. trying to undermine the general effort while they have held authority from 2215 and the noble cause in which our the people. So when I speak of bad pol- b troops are fighting. icy, what am I talking about? What is Instead, they chose to play politics; President Bush has a long-term this bad policy that led to 9–11? and they chose the Taliban, make no strategy. That is why we are in an Iraq, Well, chaos and blood shed in Afghan- mistake about it. for example. We are trying to build a istan, as I said, continued long after It is only when I spoke to the head of democratic society. Our success will the Soviet Army left and America the Saudi Arabia’s CIA, Prince Turki, not just be measured in the removal of walked away. During this time in the that I was tipped off that another plan this vicious and powerful dictator, Sad- early 1990s, I felt a personal debt to the was in the works. Prince Turki was dam Hussein, who hated us, who would Afghan people. I had been there when fired immediately after 9/11. Just keep have this man had an all-encompassing we were fighting the Soviets. I knew that in mind, but until 9/11, he was the grudge against us that would have only the sacrifices they made, so I felt that man who I could say was most respon- been satisfied when he inflicted the we owed them something, and I tried to sible for Saudi policy in that region. death and destruction upon our people do my best to find a solution but no He explained to me personally that and the future whenever he had a one was listening. But it was not hard instead of the former king coming chance to do so; but getting rid of him to find a solution. It was not hard for back, that they were creating a third was not the only thing we accom- me to come up with an idea, with a force, and it was being created specifi- plished. plan that would have helped the Af- cally to go into Afghanistan, and it We not only did that but we freed the ghan people. But implementing that would be comprised of religious stu- Iraqi people from their oppressor and idea and finding that and making sure dents who had spent most of the war in we have also provided an opportunity that solutions became policy was an- the Islamic schools in Pakistan. These to build in Iraq that will serve as a other matter. Taliban, which means student by the model for the rest of the Muslim world. So what was the solution? It did not way, using their religious credentials, We are providing Muslim people, espe- take a genius to determine the best would dominate Afghanistan; and he cially the young people, an alternative way to restore order and a stable gov- assured me that they would not be in- a choice not to destroy western civili- ernment to Afghanistan was to bring volved in anything outside of Afghani- zation, but to be part of it and to open back the honest and beloved former stan. the door of a new Renaissance of rela- king, Zaire Shah, who had been living These Taliban, by the way, with cer- tions when Christians, Jews and others in Rome, Italy since his exile began in tain exceptions as I say, were not vet- can live in the same world and benefit 1973. He was an elderly man, but he erans of the war against the Soviets. from each other. Even though we are still had a good mind and an impressive They were not Mujahedin. A lot of peo- distinct from each other, we can inter- stature. He was one person all factions ple make that mistake. The Mujahedin act and trade and we can be friends. of Afghanistan knew would not seek fought the Soviets. The Taliban came

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00094 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.181 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2645 in well after the Soviets left; and in policy establishment felt that way. to everyone, and I suggest that it was fact, when we felt, after we were at- They longed for stability, and they the case, America was still supporting tacked, we needed to drive the Taliban could not imagine stability without the Taliban. out, it was the remnants of the having the Saudis and the Pakistanis Why should these people not, these Mujahedin who joined with us and also having their way, even though it is Afghans, think that? Was not our aid drove the Taliban out of Afghanistan. America that is supposed to be pro- going to the Taliban-controlled areas? For a long time, I blamed the Saudis viding the leadership and not the other I myself had been thwarted by the and the Pakistanis for creating a force way around. State Department under leadership of of religious fanatics and putting them After the fighting stopped and the Clinton appointee Rick Enderfurth in in power. It is clear now, however, that Taliban were in control, and this is getting humanitarian aid to parts of it was not just the Pakistanis and the after the third force was then un- Afghanistan not under Taliban control. Saudis. Prince Turki, in Washington, leashed, the Soviets had been gone for So it is okay for the aid to go to when he tipped me off about the cre- several years, this third force was un- Taliban areas, American aid; but when ation of Taliban, certainly he was leashed. The Taliban swept across two- I tried to get some aid to some of the there at the beginning and certainly thirds of Afghanistan, and they took other areas, that aid was thwarted. the Pakistanis were there at the begin- the capital city of Kabul. If there were any doubts, my sus- ning, but other people were there as Well, I have been trying to fight that picions about U.S. policy were con- well. for many, many months and many firmed in 1997 when the Taliban was Last year, I found out about this. years; and I took a stand back, and just saved from total defeat by high-level Last year, the current former minister like everybody else, I wished the people executives from the Clinton adminis- of Pakistan visited Southern Cali- of Afghanistan the best and I laid down tration. What happened was in April of fornia; and when he was exasperated by a marker to the Taliban. I remember 1997, the Taliban launched a major of- my criticism of Pakistan, that they giving an interview where basically I fensive aimed at taking control over had created the Taliban, he was upset said I would have a wait and see, and the northern third of Afghanistan. So and he blurted out that Americans we expected them not to do things out- they had already controlled two-thirds were in the room and part of the bar- side of their own country, and we ex- of Afghanistan; but up until that point, gain that created the Taliban as well. pected them not to be a totalitarian one-third of Afghanistan, the northern There were three parties in that room. force but a religious force. Of course, I part, the northern alliance, were free Well, that revelation was no surprise to tried to stop them from getting in from Taliban control, and yes, they me. I had been trying to get a con- power in the first place. There was were under the control, you might say, firmation of that for years. nothing I could do at that point but of regional leaders who were called and During the latter years of the Clin- hope for the best. are called today warlords, but they are ton administration, I charged that the After about a month, it became obvi- regional leaders. We can debate about administration policy was secretly sup- ous that I had been right all along and the title. porting the Taliban. After making that that this new force, the Taliban, were An Afghan general named Malik was charge at a public hearing, I was la- Islamic Nazis; and as such, if they were one of those regional leaders; and when beled as ‘‘delusional’’ by a senior not stopped, they would hurt our the Taliban attacked northern Afghan- Democratic colleague. When I insisted, friends or they would even hurt us. istan, General Malik tricked the with the support of Ben Gilman, who So even after coming to power, our Taliban and managed to capture al- was then chairman of the Committee State Department, get into this, even most all of their front line troops, on International Relations, that the after coming to power, our State De- along with all of their heavy weaponry. State Department provide the docu- partment closed its eyes to the increas- It was an utter disaster for the ments that would clarify America’s ing evidence of the nature of the Taliban. The road to the capital, real position, we were stonewalled, Taliban; and they kept supporting the Kabul, was wide open. The Taliban even though Secretary of State Mad- Taliban anyway. For several years, I were totally vulnerable and could have eleine Albright personally pledged to was a lone voice, helped by Chairman been wiped out. comply with this request. Here we are; Ben Gilman, then chairman of the We are talking about early in April that is our job to oversee American for- Committee on International Relations, of 1997. I sent a message to my friends eign policy. We requested the docu- warning of the potential consequences in northern Afghanistan that Kabul ments on the creation of the Taliban. of leaving such a fanatical, religious should be taken and that King Zaire The State Department thumbed its sect in power. Shah should be brought back to over- nose at us, gave us documents that I even went to Afghanistan during see a transition government that would were meaningless, that had a bunch of this time and met with leaders resist- eventually evolve and inevitably newspaper clippings, et cetera. ing the Taliban, men like General evolve as well into a democratically Let us be clear and understandable Dostum, Commander Masood, Abdul elected government, perhaps like what on this point. I am charging that dur- Haq, and Ismail Khan. Masood, of they did in Spain when the King went ing the Clinton administration it was course, is the most impressive of the back and Spain, after the Franco dicta- U.S. policy to create the Taliban, and lot, but of course, none of them are torship, evolved into a democracy; but once in power, the United States Gov- pure. Everybody makes mistakes; ev- before the anti-Taliban forces could ernment supported these Islamic fanat- erybody has made bad judgments; ev- strike, Assistant Secretary of State ics. It was the policy of our govern- erybody has done things wrong after Richard Enderfurth and United Nations ment under Bill Clinton. This policy they have been fighting for as long as Ambassador Bill Richardson, both Clin- was fully supported and probably cre- these people have been fighting. They ton appointees, flew to northern Af- ated by our State Department, and if all made a certain number of terrible ghanistan and convinced the anti- one wants to accept the responsibilities decisions; but unlike the Taliban, they Taliban forces this was not the time for the policies that eventually led to were not totalitarian psychos who be- for an offensive. This, they said, was 9/11, start right here, and those in the lieved that God was talking to them the time for a cease-fire and an arms State Department, those who oppose and justifying the wholesale slaughter embargo. This was the United States the return of King Zaire Shah and un- and control of other peoples. policy. When the Taliban were vulner- dercut anyone who is resisting the Unfortunately, all of them and the able, it became time for a cease-fire. Taliban, they have the blood of inno- rest of the Afghan people, when I say These two top foreign policy leaders cent Americans on their hands, those all of them I mean the leaders who of the Clinton administration were Americans who were slaughtered on were opposed to the Taliban, and the there to convince the anti-Taliban 9/11. rest of the Afghan people, believed forces not to take advantage of the one Let us accept that rejecting King America was supporting the Taliban. opportunity they had to defeat their Zaire Shah, and that option was dead So let us make this straight. Even enemy, this Frankenstein monster that wrong, but let us accept also it was un- after the Taliban took power, when it provided a base of operations to kill derstandable perhaps that our foreign was no longer theoretical, it appeared thousands of Americans. These Clinton

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00095 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.183 H05PT1 H2646 CONGRESSIONAL RECORD — HOUSE May 5, 2004 appointees saved the Taliban. Right family that he began to focus on the persions on our President. That was after the cease-fire and release of pris- United States as the prime enemy of back during the Clinton administra- oners that was brokered by Mr. his faith and he committed himself not tion, of course. Enderfurth and Mr. Richardson, the to the reconstruction of Afghanistan, Then, an even more personal incident Pakistanis began a Berlin-like air lift but to the destruction of America. So happened when we want to talk about to resupply and re-equip the Taliban. this is how God talks to bin Laden. Do our government’s ability to protect us So much for the arms embargo, which not help people, do not help rebuild, and what was going on during the Clin- just happened as it always does, just kill innocent women and children ton administration that led to 9/11. In worked as an embargo against the good and try to terrorize a Nation. Bin April and May of 1999, America had an guys, but the bad guys, we just turned Laden is from an enormously wealthy incredible opportunity to capture bin the other way. Saudi family. And while our petroleum Laden. I was involved, and I am here to If I knew, which I did, of this massive dollars flowed into Saudi Arabia by the report yet another example of the in- resupply effort that was going on for hundreds of billions, the Saudi estab- competence of those we trusted to pro- the Taliban, the Clinton administra- lishment not only turned a blind eye, tect us from an attack like what oc- tion had to know about this. So they but attempted to buy off this and other curred on 9/11. just let the scenario happen while still Islam radicals in their country. In April 1999, I was contacted by a enforcing the arms embargo against Bin Laden’s hatred for us grew during long-time friend who had been deeply the Taliban’s adversaries. Gulf War I. Our presence in Saudi Ara- involved in the Afghan fight against Let us note here that Richard Clarke, bia was an insult to his faith. The the Soviet occupation troops. My the man who testified on the hearings slaughter of unarmed people is con- friend, an American, had impeccable on 9/11, who cast aspersions on our sistent with his faith? In the late 1990s, credentials. He had been in Afghani- President, who is now trying to take bin Laden began to set up his terrorist stan, and was widely known and ad- care of business, Richard Clarke was underground army for a war that he in- mired by the Afghan people. My friend then a high-level official in the Clinton tended to wage on America. In the mid- called me to tip me off that bin Laden administration’s foreign policy estab- 1990s he operated not out of Afghani- was outside of Afghanistan and could lishment. He undoubtedly knew about stan, but out of Sudan. America’s offi- be easily captured. I told him I would this effort to save the Taliban, was cial position was that bin Laden was a pass on his name and phone number probably involved in all of these things terrorist and was on the most wanted and that he would be contacted as soon that I am talking about, and probably list. In fact, CIA director George Tenet as possible by the CIA. approved it. So when you consider his had declared bin Laden as America’s The very next day I briefed the CIA self-serving testimony in which Mr. number one target. While designated as and I passed on my friend’s phone num- Clarke besmirched President Bush be- such, this self-aggrandizing monster ber and name, and briefed them on his fore the 9/11 investigation panel, keep organized, financed and implemented credentials, and told them he could in mind the role that he played in cre- attacks that cost tens of billions of hand them bin Laden on a platter. I ating and supporting the Taliban. dollars and the death of thousands of called my friend after a week. The CIA Dick Clarke has no credibility. By innocent people, and not just in the had not called him yet. I went back to the way, after this episode had run its United States, but worldwide we have the Agency, and this time they were course, the newly equipped Taliban seen these attacks. adamant they would contact my friend. army launched another offensive. This Yet the same CIA that declared bin There was still a chance to get bin time they took almost all of what was Laden their number one target with all Laden. Another week passed. The CIA left of Afghanistan, except the Panjshir of the power and assets that the CIA did not call my friend. This time I went Valley, which was dominated and re- has, they could not thwart 9/11 and to the gentleman from Florida (Mr. mained the domain of my friend Com- they did not warn us about 9/11? If this GOSS) who is the chairman of the Intel- mander Masood, the only hold-out is not incompetence, what is incom- ligence Committee. When the gen- against the Taliban, and America did petence? But this everybody knows. tleman from Florida (Mr. GOSS) heard nothing to help them, even as a new Unfortunately, this is mind-boggling my story, he arranged a meeting for gang of radical cutthroats moved in evidence. The fact is, the very basis is me the next day. and made Afghanistan its base of oper- they did not warn us, and 9/11 happened So the next day at the appointed ations. and he was their number one target. time I went to a secure room in a se- What am I talking about? Al Qaeda. What more evidence do we need of in- cret and heavily guarded part of the What about al Qaeda? What about bin competence on the part of our govern- Capitol where I went to meet with the Laden? Where does he come from? So ment and CIA in particular. representatives from the CIA. When I the reemergence of bin Laden. Vanity Fair has an interesting report got there, there was a CIA representa- Nowadays Osama bin Laden is a about bin Laden and perhaps America’s tive and National Security Agency and household name. Yes, he fought in Af- policy toward bin Laden and why he the FBI. That was the bin Laden task ghanistan against the Soviets. I saw succeeded. Vanity Fair suggested that force. They were all there, and they his tents and his luxurious living con- when bin Laden was in the Sudan, the apologized for the dunderheads at the ditions. No, United States money did Sudanese government cataloged all of CIA who had not called my friend to not train him or supply him. The the people he spoke to on the phone get the information, and they were Saudis had plenty of money to take and in person. Here was a listing of all going to fall up on it immediately. care of that. So the United States Gov- of the members of the bin Laden net- A week later I called my friend and ernment did not train and supply bin work, and the Sudanese government he still had not been contacted. I men- Laden, but he was there; and after the was abruptly turned down when they tioned it to the gentleman from Flor- Soviets left, this is an important point, offered to give the United States the ida (Mr. GOSS) who was appalled. The bin Laden left. Not only did America entire catalog. According to Vanity next day a representative from an in- leave but bin Laden himself left. He Fair, Madeleine Albright made the de- telligence agency finally called my could have financed the reconstruction cision to turn down the offer and in- friend. The caller’s tone of voice sug- of Afghanistan. He came from one of structed no one to look at or copy the gested that the inquiry was obligatory. the wealthiest Saudi families. He had material. It did not make any difference because contacts all over the gulf region where The Sudanese former ambassador the trail was already cold. they were swimming in petrol dollars. personally told me that he tried to This incident is bad enough, but then hand this list to a representative of the there is the episode of Julie Sears. At b 2230 United States Government. It would the same time I watched the CIA stiff He had all of the money and contacts have permitted us to apprehend bin my friend who wanted to tip them off needed for this noble deed of rebuilding Laden’s entire network, but we threw about the whereabouts of bin Laden, Afghanistan. Instead he left, and it was it back in his face. By the way, Dick there was a young woman who came to during this time when he was making Clarke had to know about this deci- my office seeking help. Her name is even more billions of dollars for his sion, too. This is the man who cast as- Julie Sears. She was an analyst at the

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00096 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.184 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2647 Defense Intelligence Agency. She knew Finally, there are two other in- of the band of terrorists with whom we I was the only one who understood stances that have colored my view of were now at war. Yes, he needed to what was going on in Afghanistan, and how we ended up with this war in ter- take care of that, and the king would was seeking my help because she had rorism which could have been avoided, be protected. Five hours later, by been fired from the Defense Intel- but we were ill-served. chance, I had the opportunity to speak ligence Agency. A few days before September 11, my with this very top CIA official again, Julie Sears has an interesting story. friend anti-Taliban leader Commander one of the top leaders of the CIA. And She had worked at the Defense Intel- Masood was murdered by al Qaeda. when I asked him if the king was now ligence Agency for 3 years. She was an After the shock of seeing that my protected, he said, ‘‘You do not expect Afghanistan analyst. That was her spe- friend had been murdered, I figured it us to act that fast?’’ cialty. She went to Afghanistan and out. Bin Laden had sent his people to So there you have it. We are at war. was permitted to go to the Taliban kill Masood because he knew the Thousands of Americans were being areas only. When she returned, she did United States would rally behind slaughtered and the CIA official in her study and realized there was infor- Masood if there was a major terrorist charge of protecting us does not take mation in Northern Afghanistan that attack against our people. Bin Laden’s the initiative to try to protect our was vital for the Pentagon to know if terrorist army planned to attack us. It number one asset that we needed to they were to understand the threat was not hard for me to figure out. They thwart the Taliban and thwart the peo- that might be taking place and build- killed Masood so we could not counter- ple who were murdering our people. ing in Afghanistan. Julie Sears was for- attack against them by supporting Why did we have 9/11? There you go. bidden to go to the non-Taliban areas Masood. Bin Laden’s terrorist army Let us remember George Tenet was ap- of Afghanistan, so she decided to go on was going to attack us. Perhaps pointed by Bill Clinton, and he is still her own. Masood’s death was a signal to move the director of the CIA. People tell me She told her boss she was taking the plan that was already put in place that since 9/11, he has been doing a bet- leave, then reported where she was forward. ter job, and that some people who were going, officially to the Agency’s office The day before 9/11, I called the not doing a good job over at the Agen- that approves that. It was approved White House and asked to see National cy are doing a superb job now. Let me that she could go, and she went to Security adviser Condoleezza Rice, it note that. Northern Afghanistan on her own and was an emergency. The purpose was to But when we talk about why 9/11 hap- met with Commander Masood and oth- warn her of an imminent terrorist at- pened and who was responsible, espe- ers and came back with some informa- tack on the United States. One of her cially when we have a committee who tion that was vital. That information assistants came on the line and apolo- is trying to besmirch our President was that Commander Masood was tell- gized, she was really busy that day but who is now taking care of business, let ing her that he was capturing troops she made an appointment to see me the us look at the policies that people who from the Taliban who were from all next day. Yes, on 9/11 I had an appoint- created this. over the world and that apparently bin ment to see Condoleezza Rice in the b 2245 Laden was bringing in huge numbers of early afternoon to warn her of a major people into Afghanistan, training them terrorist attack that was about to hap- The committee now investigating 9– for terrorist activity, and then letting pen. 11 can tell us about lack of information them fight Masood’s forces to get wet The question that needs to be asked sharing; but we know that within the behind the ears in battle. And when he was how was I able to figure this out. FBI itself, there were agents who were captured these people, they were from I have one staff member who is my for- begging higher-ups to pay more atten- all over the world. He was talking eign policy military staff member who tion to the possible threat of suspected about the creation of al Qaeda. helps me with foreign policy issues, terrorists who were receiving pilot Julie Sears came back with that in- why I was able to figure it out but the training. No, there was not an obstruc- formation and she was fired on the CIA was not able to figure it out. We tion there. There was not lack of com- spot, and the director of the Defense know why the DIA was not, but why munication or agencies did not talk to Intelligence Agency even refused to let would the CIA, with billions of dollars each other. That was right within the her brief other members of the govern- at its disposal, hundreds of analysts FBI. But, no, someone in that line of ment and refused to have her report be and bin Laden the number one target, command was arrogant and told them officially put forward, and no one got that they could not figure it out. to forget it. There was no absolute that information. proof that this was going to happen. I called in the head of the Defense In- Incompetence. We need to blame peo- This is called bureaucratic arrogance telligence Agency. I called him to my ple for their failures, and we need to and bureaucratic inertia or perhaps office and he came there. He was a gen- blame the policies that brought about maybe the arrogance of officialdom or eral, and we will not go any further the problem. Finally on 9/11, once the just plain incompetence. Couple that than that. He had been in charge of the planes started slamming into build- with the policies of the Clinton years DIA for several years during the Clin- ings, I knew right away what was going that created and nurtured the Taliban ton administration. I told him General, on. It did not take a genius at that this woman risked her life in order to point, but what also dawned on me, and turned Afghanistan into a terrorist get this information. She is a hero. without Masood, there was only one training base and a staging area for His answer was, She is insubordinate. person left on this planet who the terrorism, take those things together, I said General, I think she risked her Taliban and al Qaeda knew threatened that is what brought us into this situa- life and spent her own money to try to their base, and that was the old king of tion that we find ourselves in today. get information for the safety of our Afghanistan in Rome. The exiled king, Those who run our government country, let us compromise at the very they knew without Masood, he was the should be held accountable for the poli- least. Give her back her job, I will not only man the Afghan people could rally cies that they advocated that created call her a hero, you will not call her in- behind in order to launch a counter- this Frankenstein monster, and they subordinate, we will leave it the way it attack. must have the commitment and be held is. I called the king. I was dumbfounded responsible and accountable for their He said, No, I cannot do that. to hear there was no one there to pro- lack of commitment of getting their I said General, do it and if you blame tect him. This is hours and hours after job done if their job was to thwart at- somebody, blame me. Blame this poli- the planes slammed into the buildings. tacks on the United States. 9–11 hap- tician who is politically interfering He was totally exposed. Our number pened because of the actions or lack of with the way you manage your oper- one asset in a war that we were just en- actions of certain people with author- ation. tering was totally exposed. ity and because of fundamentally bad He went back to his office and fired I called the American Embassy in policy. Julie Sears. That is the type of arro- Rome and then I called one of the top Today we have a fundamentally good gant, bureaucratic attitude that ended leaders of the CIA who concurred with policy at hand when our President is up with 9/11. me that the king was a primary target taking care of business in Iraq. He is

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00097 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.186 H05PT1 H2648 CONGRESSIONAL RECORD — HOUSE May 5, 2004 not kicking the can down the road like tion that this President, this Vice they want us to hear.’’ Of course, the they did during the last administra- President, and this administration majority leader of this body is the gen- tion. He is going to see that the people have failed on all accounts. tleman from Texas (Mr. DELAY). of Iraq develop an alternative to rad- There was a report today in the I see the gentleman from Washington ical Islam, and by doing that he has a media which quoted President Bush re- (Mr. INSLEE), and he has a look in his strategic vision that will build a better garding these appalling revelations. face that he wants to make a comment. tomorrow rather than ignoring any po- And I would like to read to my friend Mr. INSLEE. Mr. Speaker, it is dif- tential threats and permitting the and to the Speaker and to those who ficult, while our proud men and women Frankenstein monsters that appeared might be viewing us this evening as we are serving in the field in Iraq, to tell in the late 1990s to reappear. have our weekly conversation excerpts some very unfortunate truths about If America is to be secure, we must from those reports in the international the failure of the executive branch of do our job, and that is our job in Con- as well as the American media: this government to live up to their gress, and that is to hold people who ‘‘ ‘The first time I saw or heard about service in Iraq. It is difficult to say the fail accountable, and we should quit pictures was on TV,’ the President,’’ truth, which is there has been gross in- whining about it and quit playing poli- referring to President Bush, ‘‘said, competence, deception, manipulation tics. That is our job in Congress, to leaving open the question of when he of the truth, failure to recognize re- hold people accountable, to oversee first learned about the substance of the ality in Iraq which has got us in such what is happening in the other allegations that prompted an initial in- an unholy mess by the executive branches of government and to pass vestigation in January of this year. branch of the Federal Government. rules and regulations and to make sure But General Peter Pace, Deputy Chair That is not pleasant to say given what that our military is equipped and doing of the Joint Chiefs of Staff, said that our troops face in Iraq tonight. But it the right job. ‘Everyone was kept appraised orally of is necessary to say it. We too have to be held accountable the ongoing investigation.’ Asked And the reason it brought hope to me perhaps in the 1990s for not stepping whether Bush and General Richard when I was visiting a family that lost forward but instead being focused on Myers, Chairman of the Joint Chiefs of a son and a husband in Iraq while serv- other things. The United States Con- Staff, his direct supervisor, were well ing in an incident where he earned the gress was not focused on Afghanistan. aware of the situation, General Pace Bronze Star posthumously, a man who will not be coming home to his chil- It was not focused on these problems as responded, ‘Yes.’ Myers, the country’s dren, when I talked to his widow, the well. And today I think we have a top general, raised eyebrows over the one thing she impressed upon me that chance to make up for that. We have a weekend when he said that he had not she wanted me to do is to not fail to chance to work with our President and, read a report completed in early March blow the whistle on executive branch instead of playing politics, make sure that documented the widespread abuses incompetence which has created such we win this battle in Iraq and help cre- in Abu Ghraib. Secretary of Defense problems in Iraq or at least not re- ate a better world. Donald Rumsfeld had also not read the sponded to them the way they should. I am very proud of our President, and report that was completed in March by And this body, the people’s House, has I am very confident that our children this Monday,’’ by this past Monday, ‘‘5 an obligation to blow the whistle on will not have to suffer another 9–11 be- days after the damning photographs these multiple failures, and they are cause we are doing what is right today. were first shown on the CBS television multiple. And tonight I think we are program 60 minutes, a spokesman f going to talk about 10 failures of the said.’’ IRAQ WATCH I find that absolutely incredible. The executive branch of the government, which has been responsible in part for The SPEAKER pro tempore (Mr. Secretary of Defense had not read the some of the difficulties that we face in COLE). Under the Speaker’s announced report until this past Monday, and the policy of January 7, 2003, the gen- Iraq. report was completed in March. What And the first one I would like to tleman from Massachusetts (Mr. is going on? One can only describe this mention is the one that leads in part to DELAHUNT) is recognized for 60 min- as ineptitude of the highest order. some of the problems we face with han- utes. Let me continue: ‘‘Congressional dling prisoners of war. The public is Mr. DELAHUNT. Mr. Speaker, we are leaders have bitterly complained that well aware of what happened here. I back here this evening for another in- they were kept out of the loop and heard a conservative commentator yes- stallment of our weekly Iraq Watch. were particularly incensed after the terday just describe this as the soldiers Tonight I am joined initially by the Pentagon reported Tuesday the deaths just having a good time, just blowing gentleman from the State of Wash- of 25 prisoners in Iraq and Afghanistan off steam. It is that kind of attitude ington (Mr. INSLEE); and I expect, as including at least two confirmed homi- that apparently permeated our com- the hour proceeds, other members of cides. The Congress has not been noti- mand and control structure in our pris- Iraq Watch will join us for our weekly fied of the murders that took place. oner of war camps, and that kind of at- discussion. ‘There have been no reports of these titude has the potential to inflame the The revelations of the past several abuses,’ Republican Senator John Arab world and create more enemies of days concerning abuses of detainees or McCain, himself a prisoner during the the war we are fighting against al prisoners under the auspices of Amer- Vietnam War, told ABC television on Qaeda right now. It is a gross mistake. ican military have shocked and ap- Wednesday.’’ palled the world. And as many have in- From the Cox News Services, Senator b 2300 dicated, including the President, Sec- MCCAIN went on: ‘‘The Congress should It is a failure of a command and con- retary Powell, and Secretary Rumsfeld, have been notified of this situation a trol structure. this is unacceptable, unconscionable, long time ago. It’s a neglect of the re- One of the problems this Congress and un-American. It is an embarrass- sponsibilities that Secretary Rumsfeld needs to get right to the bottom of is ment to our country, to our military; and the civilian leaders of the Pen- this scandal regarding private contrac- and it is my understanding that a vari- tagon have to keep the Congress in- tors in Iraq. We have heard of multiple ety of congressional committees intend formed of an issue of this magnitude.’’ scandals involving overpayments to to address this particular issue. I agree with Senator MCCAIN. Even the Halliburton Corporation, multiple But what concerns me is something the majority leader of this House, this scandals involving mispayments and that is fundamental to what we have body, who certainly has taken the overpayments for oil to these corpora- been talking about these past months most hawkish position possible when it tions, many of whom are great polit- about our policy in Iraq and the Middle comes to the issue of Iraq and Afghani- ical donors, I might add, in the United East in the war on terror, and that is stan had this to say: ‘‘We are being States political system. credibility, competence, and the will- briefed all the time. If we are going to But there is another one we need to ingness of this White House, this ad- be a part and a partner in this war on get at, and that is why we have private ministration, to consult with Congress. terror, then we are to be completely contractors doing interrogation of pris- I think that there is a growing realiza- briefed, not just briefed on those things oners of war in Iraq, who are outside

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00098 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.187 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2649 the command and control structure, there and how we are going to pay for shroud of secrecy that has been unpar- who are not subject to military dis- this war. And just adding it open to the alleled in our history. cipline, and who apparently were in- backs of our children just will not ‘‘Republican Senators gathering last strumental in this debacle in our pris- wash. Maybe that is the politically ex- Wednesday for their first session re- oner of war system. There is an error pedient thing to do. Maybe when you treat should have been happy, blessed and failure that we need to get to the start a war based on false information, with a regained majority and a popular bottom of. and we now learned it is false, maybe President. They were not. Instead, they Mr. DELAHUNT. Mr. Speaker, re- you want to kind of sweep it under the complained bitterly of arrogance by claiming my time, I do not know if my rug, how many billions of dollars it is the Bush administration, especially the friend was aware, but the second larg- going to cost the American taxpayers. Pentagon, in treatment of Congress all est army in Iraq today is not the army But it is the wrong thing to do, like it along the road to war. It informed the of the United Kingdom, but it is this is the wrong thing to do to fight this White House Chief of Staff Andrew army of private contractors. Let us war on the cheap, to have contractors Card that there were grievances from call them what they really are, they in there instead of folks in your com- President Bush’s Senate base; that it is are mercenaries. mand and control system. We need to ignored and insulted by the adminis- I dare say, to privatize a war without get to the bottom of that failure num- tration, particularly by Defense Sec- the command and control of American ber two. retary Donald Rumsfeld in preparing generals and American officers is a Mr. DELAHUNT. Reclaiming my for the war against Iraq. Recitals of very, very dangerous precedent that is time, Mr. Speaker, I think it is appro- complaints began with Senator JOHN being established. priate that we speak about the con- WARNER, a pillar of the Senate GOP es- I think what we are seeing here to- tractors and their roles, this private tablishment. WARNER had his col- night, what we are talking about to- army, these mercenaries. It is also im- leagues’ attention when he addressed night, rather, is an example of where it portant again to go back to what I Card. ‘I will not tolerate,’ he boomed, can lead. We all have to acknowledge spoke to earlier, the incompetence and ‘a continuation of what has been going and remember that the entire world is the ineptitude that is so rank and so on over the last 2 years.’ He cited cava- now viewing, not just simply the pho- disturbing. lier treatment that denies information tographs, but the realities of the war It is as if nobody knows what is hap- even to the venerable top Senate Re- on the ground and the fact that the pening. The President of the United publican on Armed Services. United States of America is privatizing States is seeing this on TV. The Sec- ‘‘Next up was Senator PAT ROBERTS, its military, privatizing its war, dele- retary of Defense has not read the re- a former Marine officer who has spent gating to those who are not necessarily port until this week, and the report the last 40 years on Capitol Hill. ROB- responsible and accountable to Amer- was completed in March. If that is the ERTS, a plain-spoken midwesterner ican military command absolutely sig- case, if that is the fact, and we do not from Kansas, is the new Senate Intel- nificant duties. know that, I cannot understand what is ligence Committee Chair. He told An- Mr. INSLEE. If the gentleman will going on in terms of this administra- drew Card to mark him down agreeing yield further, this is starting to per- tion and its efforts. meate our whole system. We are find- Mr. ABERCROMBIE. If the gen- with everything WARNER just said. Sen- ing that contractors are going to leave tleman would yield, I think that in the ator KIT BOND of Missouri got up next when the temperature gets too hot. We context gentleman has just enunciated, and repeated similar concerns.’’ have got these private contractors that the notification to the Congress So this is not a partisan attack on doing interrogation and involved in this afternoon of the $25 billion request the President. This is a bipartisan con- this scandal in our prisoner of war is in order for examination. It is char- cern that this administration act com- camp. acterized as a ‘‘supplemental package.’’ petently and consult with Congress. Let me suggest this is part and par- There is nothing supplemental about These issues are too serious. cel of the second failure. The first prob- this. This is an ongoing cost, an ex- Mr. ABERCROMBIE. If the gen- lem we talked about is a failure of pense. tleman will yield further, last evening command and control. But the second What is being outlined here in terms I had an opportunity to speak in a spe- failure of this executive branch is the of what private contractors are doing, cial order, and I indicated then and I failure to be honest with the American the package that has been put forward indicate again tonight in the wake of people as to what this war is costing by the White House says it is for mili- the gentleman’s suggestion that the and their desire to fight a war on the tary operations in Iraq and the war on President was ill-served by those in au- cheap. While our people are losing their terrorism. thority who failed to inform him fully lives in Iraq, this administration re- Now, I realize, and I think the gen- as to what all the conditions and cir- fuses to be honest with the American tleman would agree, that this has to be cumstances were. people about the real cost of this war. paid for. We cannot leave our troops There is no excuse for the leadership Let me suggest two reasons that I out there without their proper equip- in the Department of Defense not in- know that is true. Number one, instead ment, many of the things that speakers forming the President of the United of having a military system that is cain Iraq Watch have brought up before States as to what he might be facing pable of fighting this war and putting on this. But would the gentleman agree with respect to the outcome that was the troops on the ground that were then, before this $25 billion is voted on, here. I pointed out last night that this really needed, they tried to do it with we need to find out where this money situation did not just develop with CBS these private contractors, many of is going, who is going to get the on 60 Minutes II within the last 7 days. whom are, again, engaged in the polit- money, what are the operations that A report by the Provost Marshal of the ical process in this system and are po- are envisioned? United States Army, Major General litical allies of those making executive Mr. DELAHUNT. What the gen- Donald Ryder, in November of 2003, was decisions about this war. Number one. tleman is saying is that we need at this in the hands of General Sanchez and in Number two, as of this moment, in point in time a bona fide consultation, the hands of the Department of Defense the middle of this war, while our sol- unlike what we have had to date. And and the Secretary in the fall of last diers, men and women are putting their this is not a partisan attack on the ad- year. lives on the line, this President has not ministration. This was the opinion of shown how to pay for this war, and Republicans who supported the war b 2310 today I am told now proposed another dating back to January of 2003 in a col- $25 billion of deficit spending to pay for umn by Robert Novak of the Sun In the wake of that, I have here and this war. Times in Chicago. Let me quote again am displaying to my colleagues, Mr. If our soldiers can put their lives on some excerpts that I think are very re- Speaker, Article 15–6, investigation of the line, this executive branch ought to vealing about the attitude of this the 800th Military Police Brigade. This say what this war is really going to White House and this administration was the report that was requested on cost us and how long we are going to be towards this institution and towards a January 19, 2004, subsequent to the

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00099 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.189 H05PT1 H2650 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Provost Marshal’s investigation and re- that he is the chief operating officer of metal Humvees not as thick as your port, which indicated severe difficul- this country and that he does not need washing machine that did not protect ties, tensions between military intel- to inform the Congress, he does not our soldiers. ligence-gathering and proper prison only not need to inform the Congress, Now, why did they make that such conduct by those in charge of the pris- but does not even need to inform the fundamental error? Why did they not ons, indicating that there were train- President of the United States. send our armored personnel carriers ing problems, operational problems I yield to the gentleman from Ohio. that we have 11,000 of them sitting in that needed to be addressed. And so on Mr. STRICKLAND. Mr. Speaker, I warehouses around this country, why January 19, Lieutenant General would just like to say that I think the did they not send those? Well, there is Sanchez, Lieutenant General Sanchez, Secretary of Defense, Secretary Rums- a reason. It is because they were so, the commander of the Combined Joint feld, should resign. He was quoted in and I have no other word to put it but Task Force 7, requested that the U.S. the paper today responding to a ques- arrogant, to believe that their wisdom Central Command appoint an inves- tion as to why he had not asked to see would be accepted by the entire Mid- tigating officer, and that investigating the pictures, and he indicated that he east when they came into Iraq, and officer, of course, was General Taguba. had asked, but they were not available. they were wrong, and our people died. His report responded to the admoni- Now, if the Secretary of Defense of Issue number 4: they ignored clear tions of Lieutenant General Sanchez this country cannot acquire pictures evidence that we needed more troops that an investigation of detention and that he asks for, is it any wonder that on the ground after the collapse of the internment operations be undertaken, we have troops in Iraq tonight who are Iraqi Army. General Shinseki, General starting from November of 2003. No- driving around in unarmored vehicles? Zinni, many people told them, when vember of 2003 is when the report went Is it any wonder that we had troops in the Iraqi Army collapses, there is going in, indicating that there had to be Iraq for an entire year without protec- to be massive looting and chaos and steps taken to address these questions. tive body armor? If the Secretary of you are going to need hundreds of Let me quote from the opening para- Defense cannot get pictures that he re- thousands of troops to protect us and graph. ‘‘Lieutenant General Sanchez quests, my God, what are we facing the Iraqis, and they ignored it. Why? cited recent reports of detainee abuse, over there? It just is indescribable. Because of arrogance. Issue number 5: they refused to say escapes from confinement facilities, I yield to my friend, the gentleman we needed the U.N. Now the President and accountability lapses, which indi- from Washington State. is now saying we needed the U.N., now. cated systemic problems within the Mr. INSLEE. Mr. Speaker, if it was Well, it is a little late now when the brigade and suggested a lack of clear one failure, wars are tough, some rest of the world is refusing to become standards, proficiency, and leader- things go wrong; and if it was one fail- involved. ship.’’ ure, maybe we would be in the excusing Number 6: they refused to have elec- Fifty-three pages later, and if the mode. But it is interesting. Of all of tions. I am told Jay Garner, the first gentleman will grant now, I will not the failures that have happened in Iraq provost they had, suggested they need- cite over and over again what is taking from day one, not one single person has ed elections. That is kind of what de- place in here, but one shocking event lost their job, except maybe recently in mocracy is about. Now, proposedly, the after another. this POW camp situation. This 53-page report, and this comes Mr. ABERCROMBIE. Mr. Speaker, if President is going to turn over sov- from CQ Today, Congressional Quar- the gentleman would just yield on that ereignty on June 30. What a joke. The terly Today by Neil Soros from the CQ point, yes, somebody has lost their job: only thing these people are going to staff, and he quotes, ‘‘The 53-page re- the people who published the pictures control in Iraq after we hand-pick port drafted by Army General Antonio of the coffins coming home. these people are who gets library cards. Taguba, and based on an investigation Mr. INSLEE. Who is my constituent, Every single thing else is going to be into the abuse allegations,’’ that is this by the way, and we will talk about that run by us, and Iraq knows it. I will go report that I hold in my hand, ‘‘that in a few minutes. But let me suggest quickly. Number 7: No command and control began in January was finished in April. that there is not one failure, there are and adequate training in handling The report was detailed in this week’s 10 failures. And before the night is out, these POWs with a massive black eye New Yorker magazine. At a Pentagon I want to list the 10 failures of this ex- to the United States of America. When news conference today, Secretary ecutive branch which are significant we have tens of thousands of people Rumsfeld defended the time it takes to which have gotten us into this mess. doing a great job in Iraq, our reputa- release such information.’’ Failure number 1. They told us and Now, this information was available the world that Iraq had weapons of tion has been soiled. Number 8: no armor. We talked about from November of last year. mass destruction. The President of the that. Quote: ‘‘I recognize the appetite of United States said on August 26, 2002, Number 9: no plan to pay for Iraq. We people for instant information and in- ‘‘Simply stated, there is no doubt that have over $130 billion of payment of stant conclusions,’’ he said. That is to Saddam Hussein now has weapons of Iraqi expenses, and this President has say Secretary Rumsfeld. ‘‘These things mass destruction.’’ That statement was not suggested one single dollar except are complicated. They take some time. false. deficit spending to pay for this war. It required interviewing people back in Number 2. They told us they had Number 10, and this is the one maybe the States who had already left Iraq clear and convincing evidence of the that is the most no-brainer to me I can that required discussions with people. connection between Saddam Hussein think of. They sent 130,000 troops into They are proceeding in a very system- and the attack of September 11 and al Iraq without body armor, knowing that atic and appropriate way, and to the Qaeda. No matter how many times that you are sending them into the war and extent I conclude at any time there is is said, that statement is false. We into the dens of modern combat with- some slice of it that has not been in- have now seen the intelligence brief- out modern flap jackets. That is 10, and vestigated, has not been looked at ing. There was no such evidence. That that is enough. properly, you can be sure I will understatement was false. Mr. STRICKLAND. Mr. Speaker, if take such an investigation.’’ Third: they told the American people the gentleman will yield, I wrote Sec- Clearly, the Secretary of Defense is that we would be greeted as liberators, retary Rumsfeld about the body armor dissembling and somehow thinks that rose petals strewn at our feet, happy issue months ago and he wrote me back everybody in this country can be fooled convocations of democracy-seeking and he said all of our troops will be as to what his responsibility is. The Iraqis greeting our personnel carriers. protected with this body armor by No- Secretary of Defense has known, at As a result of that failure, Americans vember. least since November of last year, what died, because they refused to send was going on and did not even inform armor that would have protected our b 2320 the President of the United States, be- soldiers from these improvised explo- A day later I get a letter from Gen- cause the Secretary of Defense, as I sive devices along our roadways, and eral Myers, and he says it will be De- said last night, apparently has assumed they sent them with thin skin, sheet cember. Before we leave here for the

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00100 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.191 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2651 holidays, they had a briefing at the course, the Iraqis will accept the gov- Mr. ABERCROMBIE. Mr. Speaker, I Pentagon; they said it is going to be ernment we are trying to force down can tell you who has been notified. I January. Do you realize it was March their throats. It is wishful thinking can tell you who has been held respon- of this year, one full year after the be- that the ID are going to stop and the sible. ginning of this war, before the Pen- Humvees are going to stop the attacks The New York Times, perhaps the tagon was willing to say that all of our on our soldiers. It is wishful thinking same article, indicated yesterday, the troops had been equipped? And now that somehow we will find $150 billion senior American commander in Iraq they are over there without uparmored a year to pay for this war. has ordered the first punishments in Humvees, and they are driving over They refuse to recognize the hard the abuse of prisoners by American sol- these roadway explosives. They are cold reality that our soldiers are facing diers there, issuing severe reprimand to getting their arms and legs blown off. every day in Iraq. It is morally, ethi- six who served in supervisory positions They are losing their lives, and we are cally, and democratically wrong; and and milder levels of admonishment to a not correcting that problem as quickly that is why we are here tonight. seventh. Those in supervisory positions as we are capable of correcting it. Mr. DELAHUNT. Just to pick up on received a reprimand or a letter of ad- How do I know that? Because the the point by my friend, the gentleman monishment. However, six subordi- only company the Pentagon has a con- from Ohio (Mr. STRICKLAND), it is be- nates accused of carrying out the abuse tract with to provide these uparmored yond the incompetence and the inepti- already face criminal charges. Humvees is an Ohio company located tude that seems to characterize the ci- Mr. DELAHUNT. It just gets worse. in Fairfield, Ohio. They are capable of vilian leadership of the Department of Mr. ABERCROMBIE. A moment producing in November of this year, by Defense. That can only be called cal- longer. November of this year, 500 of these lousness, and it is rank and raw. And ‘‘ ‘They did not know or participate uparmored Humvees per month. How maybe he ought to join us as we attend in any crimes,’ a senior American offi- the funerals of those who have died in many is the Pentagon willing to buy? cer in Baghdad said of the officers who the service of this country. I have al- Only 300 per month. That means that received the reprimand.’’ Who deter- ready attended two, two funerals. A we are not addressing this problem as mined that they did not know or par- young man in Quincy and just recently quickly as it is possible to address it. ticipate in any crimes? A senior Amer- a young man in Plymouth. This Satur- How can the President, how can the ican officer unnamed says in Baghdad, day I am attending another funeral. Secretary of Defense, how can Paul but they know that the six subordi- And just maybe if Under Secretary Wolfowitz look the American citizen, nates, the poor grunts on the ground, Wolfowitz was at that funeral with me, the American family, the American they know that they have got to face he might know the number of Ameri- soldier in the eye and explain to them criminal charges. In addition, issued cans that have died in this war. But why we are not doing everything as the reprimand. Their responsibility is maybe it is just simply ineptitude. quickly as possible to protect our sol- We were talking earlier about these to set the standards in the organiza- diers? contractors, these mercenaries, these tion. They should have known, but One more thing before I yield, Dep- Hessians, if you will. A report exists they did not. So they just get a rep- uty Secretary Wolfowitz, who I believe that has targeted two individuals who rimand. and I think most people believe was worked for contractors. Now, I am not They are the ones setting the stand- largely responsible for helping formu- going to reach a conclusion, because ards in the organization by the admin- late this policy of going into Iraq as we everyone deserves due process, every- istration of senior officers in Baghdad. did, was asked a few days ago how one deserves the implementation of the We already know what is happening. many American soldiers had been rule of law as we know it in our democ- The grunts on the ground are taking killed. And he indicated that it was racy; but they have not even received the fall. That is what is happening. something over 500. And at that time notice. Just imagine that. They have That is the reality. And the officers are we had lost well over 700 American sol- heard nothing from the Pentagon. running and hiding, and they are being diers. To think that the Deputy Sec- It is in a report and there has been no allowed to do it despite the fact that retary of Defense was not paying atten- communication to these private com- we know that reports existed as far tion to the number of American deaths panies. Yesterday in the New York back as last November pointing out is almost unthinkable, almost unthink- Times the lead contractors implicated what the difficulties and challenges able. in prison abuse remain on the job. were. I have got 8th and 9th grade students They are still there. More than 2 b 2330 who come to Washington, D.C. from my months after a classified Army report district, to visit me in Washington, found that the two contract workers Mr. DELAHUNT. Mr. Speaker, the D.C., who are better informed about were implicated in the abuse of Iraqis chief executive of one of the civilian the price this country is paying in at a prison outside of Baghdad, the contractors said in an interview this terms of deaths and the injuries of our companies that employ them say they past Monday, just stop and pause and soldiers than apparently is the Deputy have heard nothing from the Pentagon think of that, this past Monday, said Secretary of Defense, Paul Wolfowitz. and that they have not removed any we have not received any information He should be ashamed of himself. employees from Iraq. or direction from the client regarding I cannot fathom that one in his high For one of the employees, the Army our work in-country. No charge, no position would not on a daily basis report recommended termination of communications, no citations, no calls take note of the number of American employment and revocation of a secu- to appear at the Pentagon. soldiers who have lost their lives in rity clearance. For the other, it urged Mr. STRICKLAND. Mr. Speaker, if this conflict. an official reprimand, whatever that my friend would yield, I dare to say Mr. INSLEE. I just want to offer a means, and review of his security clear- that this smells like a cover-up, and I brief suggestion why that is. How could ance. Military spokesmen in Wash- think Secretary Rumsfeld has to as- the Assistant Secretary of Defense not ington and Baghdad said Monday sume responsibility. He is the Sec- know our casualties? How could you evening they had no information on retary of Defense of this Nation, and possibly explain that? Well, there is an whether the workers were still on the when he was asked, have you asked, explanation. job or why the report had not been con- Mr. Secretary, to see all of these pic- This administration has got us into a veyed to the companies. One of the tures depicting this abuse, and he indi- war and is pursuing a war based on principles in the company noted with cates, as was reported in the paper, wishful thinking rather than hard re- apparent irritation that the military well, I was told they were not avail- ality. Now, wishful thinking is fine in still had not provided the company able, I mean, talk about someone try- Hollywood. It makes some great dram- with a copy of the report completed ing to shirk responsibility. It is almost as, but it is a lousy way to win a war; February 22. laughable. He is the Secretary of De- and it costs people’s lives, and that is What is going on with the civilian fense. what is happening tonight. They have leadership under the direction of this Then General Myers, I saw him inter- wishful thinking: if we just stay the Secretary? viewed just a couple of days ago, and

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00101 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.193 H05PT1 H2652 CONGRESSIONAL RECORD — HOUSE May 5, 2004 he had indicated that he had not even do not even bother to show up at the cases, their particular areas of history. read this outrageous report. He had not forum. God knows what kind of rules He expressed the desire to dissuade read it, and so it seems to me, rather they are operating under. countries from engaging in asymmet- than the grunts on the ground, that The Secretary goes on to say, The rical challenges to the United States, someone like General Myers and Sec- Department of Defense is drafting uni- as Rumsfeld said in his January articu- retary Rumsfeld should step up, as- form guidance regarding PSCs em- lation, of the demonstrative value of a sume responsibility, admit their fail- ployed in Iraq under contracts using pre-emptive attack. ure of leadership and have the good U.S. appropriations, which means as of I would like to have a response to graces to submit their resignations to May 4, 2004, there is no uniform guid- that particular page. What was the the President of the United States, and ance from the Department of Defense memory of Secretary Donald Rums- if he is not willing to do it, I would regarding the utilization of private feld? Why was he preparing at that hope the President would ask for it. contractors being paid from U.S. appro- point, cutting up the pie, if you will, Mr. ABERCROMBIE. If the gen- priations. allocating oil contracts months before tleman would yield on that point, This is dereliction of duty. How is it 9/11? would the gentleman from Massachu- possible for the Secretary of Defense to Mr. INSLEE. Mr. Speaker, will the setts kindly read back to us the last tell the American people and tell the gentleman yield. sentence that he just read from that American Congress that he has no Mr. DELAHUNT. I yield to the gen- report with respect to the client. I be- rules whatsoever and is in the process tleman from Washington. lieve there was a sentence that the of forming what he calls uniform guid- b 2340 contractors were making reference to ance, whatever the hell that is? That is Mr. INSLEE. Mr. Speaker, I think it who their client was. Could the gen- what the Secretary of Defense has is important to say what is happening tleman read that sentence. done. He has undermined completely in Iraq due to the deception and false- Mr. DELAHUNT. That is exactly the the policies of this country, has failed hood by this administration is not only word. I will look through. We have not his President, failed this Congress and a threat to our soldiers, it is a threat received any information or direction failed his duty. to democracy itself. There is no greater from the client. Mr. DELAHUNT. As my colleague violation of the democratic principle Mr. ABERCROMBIE. The client. knows, at least it has been reported in than an administration that does not Mr. DELAHUNT. The client is the the paper, that the Secretary will ap- tell the truth to the American people, American taxpayer. That is who the pear before the Senate Foreign Rela- and we are not getting the truth. We client is, the American people. tions Committee or some other com- know we did not get the truth about Mr. ABERCROMBIE. If the gen- mittee of the United States Senate to WMD or a connection to 9/11, but now tleman will yield back, yes, the client respond to the concerns that Repub- we find it was months and months be- that is referred to presumably is the licans and Democrats and everybody fore we got to the truth because some- Department of Defense. has articulated over the last several body leaked pictures about this scan- I have before me a letter that was re- days. dalous situation in our POW camps. ceived by the ranking member of the I would hope that one additional This is a direct threat to the demo- Committee on Armed Services, the question might be asked of this Sec- cratic principle. If you want to know gentleman from Missouri (Mr. SKEL- retary who stands here next to the how bad things are going to go, when TON) yesterday on May 4, from the Sec- President of Uzbekistan, who is a ty- the government does not tell the truth retary of Defense, Mr. Rumsfeld, where rant, a despot and a dictator, who some to the American people, I want to he states with respect to private secu- day will rival Saddam Hussein as a quote something I read today. I was rity companies, known as PSCs, pri- gross violator and threat to regional with the gentleman from Ohio (Mr. vate security companies, where he stability, but is now part of the coali- STRICKLAND) at the Library of Congress states, It is my understanding that tion of the willing, but I digress. this evening, and they have an exhibit most of the PSCs doing business in Iraq From the book which was offered re- about Winston Churchill. On page 42 of do not work directly for the U.S. gov- garding the experiences of the former this pamphlet, it has a picture of Win- ernment. Secretary of Treasury Paul O’Neill, ston Churchill and Lawrence of Arabia Mr. STRICKLAND. Who do they there is related an anecdote, and I taken in 1921 at the Cairo Conference. work for? think it needs an answer because I do It says, ‘‘During this meeting, Church- Mr. ABERCROMBIE. I am about to not want to make an accusation, but ill helped establish the government tell you. I am about to tell you. this anecdote occurred on February of ethnic composition and political They work under subcontracts to 2001, months before our national trag- boundaries of Iraq and other portions prime contractors to provide for the edy of September 11, but the prepara- of the Middle East.’’ protection of their employees. They are tions were underway to do something When the British did that, they told apparently just manifesting them- about Iraq, to do something about Iraq. their people they would be there for a selves like spontaneous combustion or On page 96, let me read, Beneath the year or two and they would help bring immaculate conceptions in Iraq. surface was a battle, O’Neill, that democracy to Iraq. Lawrence of Arabia Many PSCs, and I am quoting the seemed brewing since the National Se- told them they were crazy because Secretary of Defense here, many PSCs curity Council meeting on January 30. they did not understand the ethnic are hired by other entities such as Remember, the President had been in composition of that part of the world. Iraqi companies or private foreign office for a week. It was Powell and his Do Members know the year they left companies seeking business opportuni- moderates at the State Department Iraq after getting in in 1922, the British ties in Iraq. versus hard-liners like Rumsfeld, Che- Empire, 1953; 31 years. What is 31 years, We are in the middle of a war zone ney and Wolfowitz, who were already that is 2035 if we have a similar mis- and the Secretary of Defense says, planning the next war in Iraq in the understanding as to what is going on in well, 10- or 20,000 people over here with shape of a post-Saddam country. Docu- Iraq. guns and going anyplace they please ments were being prepared by the De- The sad situation is this administra- and causing anything to happen that fense Intelligence Agency, Rumsfeld’s tion has demonstrated repeated fail- they want, what does it have to do with intelligence arm, mapping Iraqi oil ures to understand the challenges we me and my 135,000 people? fields and exploration areas enlisting have in Iraq. I want to offer one idea. The CPA, the Coalition Provisional companies that might be interested in We have offered a lot of criticism and Authority, has established a PSC work- leveraging the precious asset. This is we have called for accountability of ing group to provide a forum, a forum, less than a month after President Bush people which is a democratic principle. a discussion group, in which PSCs ex- was inaugurated. We have called for accountability of change information, and approxi- One document entitled Foreign Suit- people in this administration who mately 50 PSCs are actively involved ors for Iraqi Oil Field Contracts lists should be removed because of their rein this group. He has a list of 60 that is companies from 30 countries, their spe- peated failures, misjudgment and de- attached to this. Apparently 10 of them cialty, bidding histories and, in some ception.

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00102 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.194 H05PT1 May 5, 2004 CONGRESSIONAL RECORD — HOUSE H2653 There is only one way we are going and trust that they would put these to- cause they have a 13 or 14 or 15-year- to get out of Iraq, and that is allow the gether with a minimum of structure, if old son or daughter, and they do not Iraqi people to seize their own destiny, you will, from the United States. That think it is going to touch them, we and that destiny may not be perfect ac- is to say we could help provide the cannot sustain our military needs cording to what the Oval Office wants logistical capacity to help conduct the around the world and continue to do it to be, but this President has to rec- elections, but he felt they should move what we are doing in Iraq without the ognize he cannot run Iraq from the forward expeditiously. possibility, I think the strong possi- Oval Office. The Iraqi people are going And I can tell you his suggestions bility of a military draft. to have to fashion their own destiny. were made in a context in which he was If we have a military draft, I do not That is why I believe we should call shoved laterally just about as fast as think we will have those exemptions for early elections this summer if pos- he could go. I think we are going to that we had when I and Vice President sible, as was done in the town of Tar find General Garner, who was kind of CHENEY were draft age. I think every and the village of Shatra, a town of dismissed as someone who did not quite person of draft age will be subjected to 250,000. They have had elections. They understand what was going on, from it. I hold that out not as a threat, but have done it using their ration cards. the point of view of history will be I think it is realistic. We have National In these towns, they have already had shown as having a clear idea of what Guard persons and Reservists over elections. You bring in your ration needed to be done. there, and they are being extended be- card, you stamp it when there is a Mr. STRICKLAND. Mr. Speaker, the yond the normal time of service. We vote, and you pick who you think history of this administration is any- cannot continue this for years and should be in charge of your destiny. one who questions is shoved aside. Gen- years and years into the future. The Iraqis need to get involved in eral Shinseki said we would need hun- Mr. ABERCROMBIE. Mr. Speaker, their country’s future. Right now they dreds of thousands of troops. He was the indication today was from the De- are dependent on us for everything. literally ridiculed by the Secretary of partment of Defense that Reservists They are dependent on us to do all of Defense and others. and National Guard can look forward the dying and spending. We need Iraqis Mr. ABERCROMBIE. He was rebuked to 16,000 more being called up in the to grasp their own destiny, and the publicly. next year to supplement those already best way to do it is through elections. Mr. STRICKLAND. Absolutely, be- in service. Those elections may not be as good as cause you do not question these folks. Mr. DELAHUNT. Mr. Speaker, mean- the one in Florida in 2000, but it would They seem to know everything. while, what is happening in terms of be a lot better than us picking the peo- What we are finding out is that their the war on terror. We are talking about ple that we are going to shove down understanding is so immature that Iraq, and yet all over the world, the Iraqi’s throats in this bizarre situa- they are almost child-like in their fan- murky, small, nebulous cells of funda- tion. tasies. It is almost like a make-believe. mental Islamics who hate America are Mr. ABERCROMBIE. Mr. Speaker, it They want the world to be a certain being spawned. was just about a year ago, just about way, and so they just assume it is; and Mr. Speaker, maybe tomorrow if we this time that the first congressional then who pays the price? The American have some time we will come back and delegation under the leadership of the people pay the price, the families of do a wrap-up. Again, I thank my col- gentleman from California (Mr. our soldiers and the soldiers pay the leagues for this installment of Iraq HUNTER) went into Baghdad from the price. watch. Baghdad Airport up Kirkuk, the first If I can say something about the need opportunity that Members of Congress to come up with a plan as the gen- f had to actually meet face to face in tleman from Washington (Mr. INSLEE) Baghdad itself with General Garner and the gentleman from Hawaii (Mr. ANNOUNCEMENT BY THE SPEAKER and Ambassador Bremer. We got into ABERCROMBIE) have suggested. The pa- PRO TEMPORE Baghdad the same day, or within 24 pers reported today that the troop lev- The SPEAKER pro tempore (Mr. hours or so of the time Ambassador els that we are going to have in Iraq COLE). The Chair reminds all Members Bremer was replacing or comple- will stay at about 135,000 throughout that it is not in order in debate to refer menting the service of General Garner. 2005. I submit that is just the begin- to Senators except as provided in I can tell the gentleman because I be- ning. It is going to be 2005, 2006, 2007, clause 1, rule XVII. lieve it was the gentleman from Wash- we know not when this is going to ington (Mr. INSLEE) who mentioned come to an end. f that General Garner had some ideas This is my prediction. My prediction about what needed to be done vis-a´ -vis is this: If we do not change our poli- RECESS reconstruction. I can affirm to the gen- cies, if we do not come up with a plan The SPEAKER pro tempore. Pursu- tleman based on his suggestion which to extricate ourselves honorably from ant to clause 12(a) of rule I, the Chair he just made about elections that Gen- that situation, we are going to find declares the House in recess subject to eral Garner felt very strongly at that ourselves facing the strong possibility the call of the Chair. time that councils of one kind and an- of a military draft and the moms and Accordingly (at 11 o’clock and 50 other should be allowed to be set up, dads in this country who may feel very minutes p.m.), the House stood in re- that we could go to the Iraqi people detached from this war right now be- cess subject to the call of the Chair.

N O T I C E Incomplete record of House proceedings. Except for concluding business which follows, today’s House proceedings will be continued in the next issue of the Record.

EXECUTIVE COMMUNICATIONS, quisition Regulation Supplement; Buy-to- Contracting Authority Revisions [DFARS ETC. Budget Acquisition of End Items [DFARS Case 2002-D041] received April 28, 2004, pursu- Case 2002-D036] received April 28, 2004, pursu- Under clause 8 of rule XII, executive ant to 5 U.S.C. 801(a)(1)(A); to the Committee ant to 5 U.S.C. 801(a)(1)(A); to the Committee on Armed Services. communications were taken from the on Armed Services. Speaker’s table and referred as follows: 7954. A letter from the Director, Defense 7955. A letter from the Director, Defense 7953. A letter from the Director, Defense Procurement and Acquisition Policy, De- Procurement and Acquisition Policy, De- Procurement and Acquisition Policy, De- partment of Defense, transmitting the De- partment of Defense, transmitting the De- partment of Defense, transmitting the De- partment’s final rule — Defense Federal Ac- partment’s final rule — Defense Federal Ac- partment’s final rule — Defense Federal Ac- quisition Regulation Supplement; Multiyear quisition Regulation Supplement; Contract

VerDate May 04 2004 04:22 May 06, 2004 Jkt 029060 PO 00000 Frm 00103 Fmt 4634 Sfmt 0634 E:\CR\FM\K05MY7.195 H05PT1 H2654 CONGRESSIONAL RECORD — HOUSE May 5, 2004 Period for Task and Delivery Order Con- Lower Income Employees (RIN: 3206-AJ77) nautics and Space Administration, transmit- tracts [DFARS Case 2003-D097] received April received April 6, 2004, pursuant to 5 U.S.C. ting the Administration’s final rule — NASA 28, 2004, pursuant to 5 U.S.C. 801(a)(1)(A); to 801(a)(1)(A); to the Committee on Govern- Grant and Cooperative Agreement Handbook the Committee on Armed Services. ment Reform. — Certifications, Disclosures, and Assur- 7956. A letter from the Assistant General 7962. A letter from the Federal Register ances (RIN: 2700-AC96) received April 27, 2004, Counsel for Regulatory Services, Depart- Certifying Officer, Department of the Treas- pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- ment of Education, transmitting the Depart- ury, transmitting the Department’s final mittee on Science. ment’s final rule — Community Technology rule — Indorsement and Payment of Checks Centers Program (RIN: 1830-ZA05) received Drawn on the United States Treasury (RIN: 7968. A letter from the Assistant Adminis- April 22, 2004, pursuant to 5 U.S.C. 1510-AA45) received March 30, 2004, pursuant trator for Procurement, National Aero- 801(a)(1)(A); to the Committee on Education to 5 U.S.C. 801(a)(1)(A); to the Committee on nautics and Space Administration, transmit- and the Workforce. the Judiciary. ting the Administration’s final rule — Re- 7957. A letter from the Assistant General 7963. A letter from the Acting Under Sec- Issuance of NASA FAR Supplement Sub- Counsel for Regulatory Services, Depart- retary and Acting Director, U.S. Patent and chapter D (RIN: 2700-AC84) received April 27, ment of Education, transmitting the Depart- Trademark Office, Department of Commerce, 2004, pursuant to 5 U.S.C. 801(a)(1)(A); to the ment’s final rule — Family Educational transmitting the Department’s final rule — Committee on Science. Rights and Privacy Act (RIN: 1855-AA00) re- Revision of Patent Term Extension and Pat- 7969. A letter from the Assistant Adminis- ceived April 22, 2004, pursuant to 5 U.S.C. ent Term Adjustment Provisions [Docket trator for Procurement, National Aero- 801(a)(1)(A); to the Committee on Education No. 2003-P-029] (RIN: 0651-AB71) received nautics and Space Administration, transmit- and the Workforce. April 27, 2004, pursuant to 5 U.S.C. ting the Administration’s final rule — Re- 7958. A letter from the Assistant Secretary 801(a)(1)(A); to the Committee on the Judici- Issuance of NASA FAR Supplement Parts of Labor, Employment and Training Admin- ary. 1813 and 1817 (RIN: 2700-AC83) received April istration, Department of Labor, transmit- 7964. A letter from the Acting Assistant 27, 2004, pursuant to 5 U.S.C. 801(a)(1)(A); to ting the Department’s final rule — Senior Counsel for Regulatory Law, Office of Envi- the Committee on Science. Community Service Employment Program ronment, Saftey, and Health, Department of (RIN: 1205-AB28) received April 21, 2004, pur- Energy, transmitting the Department’s final 7970. A letter from the Director, Regula- suant to 5 U.S.C. 801(a)(1)(A); to the Com- rule — Guidelines for Physician Panel Deter- tions Management, National Cemetery Ad- mittee on Education and the Workforce. minations on Worker Requests for Assist- ministration, Department of Veterans Af- 7959. A letter from the Senior Regulatory ance in Filing for State Worker’s Compensa- fairs, transmitting the Department’s final Officer, Wage and Hour Div., Department of tion Benefits; Procedural Amendments (RIN: rule — State Cemetery Grants (RIN: 2900- Labor, transmitting the Department’s final 1901-AB13) received April 9, 2004, pursuant to AH46) received April 9, 2004, pursuant to 5 rule — Defining and Delimiting the Exemp- 5 U.S.C. 801(a)(1)(A); to the Committee on the U.S.C. 801(a)(1)(A); to the Committee on Vet- tions for Executive, Administrative, Profes- Judiciary. erans’ Affairs. sional, Outside Sales and Computer Employ- 7965. A letter from the Rules Adminis- 7971. A letter from the Director, Regula- ees (RIN: 1215-AA14) received April 29, 2004, trator, Federal Bureau of Prisons, Depart- tions Management, Department of Veterans pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- ment of Justice, transmitting the Depart- Affairs, transmitting the Department’s final mittee on Education and the Workforce. ment’s final rule — Smoking/No Smoking rule — Board of Veterans’ Appeals: Rules of 7960. A letter from the Special Advisor to Areas [BOP-1084-F] (RIN: 1120-AA79) received Practice — Medical Opinions From the Vet- the Bureau Chief, Media Bureau, Federal April 6, 2004, pursuant to 5 U.S.C. 801(a)(1)(A); erans Health Administration (RIN: 2900-A Communications Commission, transmitting to the Committee on the Judiciary. K52) received April 15, 2004, pursuant to 5 the Commission’s final rule — Amendment of 7966. A letter from the Assistant Adminis- U.S.C. 801(a)(1)(A); to the Committee on Vet- Section 73.202(b), Table of Allotments, FM trator for Procurement, National Aero- erans’ Affairs. Broadcast Stations (Mangum and Erick, nautics and Space Administration, transmit- Oklahoma) [MM Docket No. 01-218; RM-10237] ting the Administration’s final rule — Re- 7972. A letter from the Chief, Regulations received April 19, 2004, pursuant to 5 U.S.C. Issuance of the NASA FAR Supplement Sub- & Procedures Division, Alcohol & Tobaco 801(a)(1)(A); to the Committee on Energy and chapters A and B Consistent with the Fed- Tax & Trade Bureau, Department of the Commerce. eral Acquisition Regulations System Guid- Treasury, transmitting the Department’s 7961. A letter from the Director, Division ance and Policy (RIN: 2700-AC65) received final rule — Temecula Valley Viticultural for Strategic Human Resources Policy, Of- April 27, 2004, pursuant to 5 U.S.C. Area (2001R-280P) [T.D. TTB-10; Re: ATF No- fice of Personnel Management, transmitting 801(a)(1)(A); to the Committee on Science. tice No. 958] (RIN: 1513-AA40) received April the Office’s final rule — Agency Use of Ap- 7967. A letter from the Assistant Adminis- 27, 2004, pursuant to 5 U.S.C. 801(a)(1)(A); to propriated Funds for Child Care Costs for trator for Procurement, National Aero- the Committee on Ways and Means.

VerDate May 04 2004 03:34 May 06, 2004 Jkt 029060 PO 00000 Frm 00104 Fmt 4634 Sfmt 0634 E:\CR\FM\L05MY7.000 H05PT1 E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 108 CONGRESS, SECOND SESSION

Vol. 150 WASHINGTON, WEDNESDAY, MAY 5, 2004 No. 61 Senate The Senate met at 9:30 a.m. and was APPOINTMENT OF ACTING ing and comment, if I may, on gasoline called to order by the Honorable SAM PRESIDENT PRO TEMPORE prices. They continue to hit record BROWNBACK, a Senator from the State The PRESIDING OFFICER. The highs. of Kansas. clerk will please read a communication According to the Department of En- to the Senate from the President pro ergy, the average retail price of a gal- PRAYER tempore (Mr. STEVENS). lon of gasoline in America is more than $1.84, up 23 cents in the last two The Chaplain, Dr. Barry C. Black, of- The legislative clerk read the fol- months, 33 cents in the last year, and fered the following prayer: lowing letter: 37 cents in the past 36 months. U.S. SENATE, Let us pray. In my State of South Dakota, the av- Eternal God, our Father, high above PRESIDENT PRO TEMPORE, Washington, DC, May 5, 2004. erage price of gasoline is $1.80 per gal- all yet in all, the burdens of our world To the Senate: lon, with many communities seeing are great and our hands often seem so Under the provisions of rule I, paragraph 3, much higher prices than that. Even small. Keep us from becoming weary in of the Standing Rules of the Senate, I hereby more troubling, the Department of En- doing well and use us as Your instru- appoint the Honorable SAM BROWNBACK, a ergy expects prices to remain high ments in these challenging times. For- Senator from the State of Kansas, to per- through the summer. This is of par- give us when we have failed to reach form the duties of the Chair. ticular concern for rural States such as out to the lost, the lonely, and the TED STEVENS, President pro tempore. South Dakota, where many people have least. no choice but to drive long distances Mr. BROWNBACK thereupon as- Empower us to bring Your freedom to daily to get to their jobs, to receive sumed the Chair as Acting President those shackled by the manacles of fear. health care, or just to shop for essen- pro tempore. Help us to lift some burden that is too tials. Americans are increasingly frus- heavy for our neighbors to carry. f trated with skyrocketing gas prices Renew our strength and enable us to LEADER TIME and want to know what the Federal bring light to the growing darkness. As The ACTING PRESIDENT pro tem- Government is going to do about it. we seek to lead by example, may others pore. Under the previous order, there And they want action now. praise You because we have stood firm will now be a period of leader time In March, I sent a letter to the Presi- against evil. under the standing order. dent recommending that he take sev- We pray for the Members of our Sen- eral initiatives that could curb gaso- f ate. Lengthen their sight that they line prices at home. First, I suggested may see beyond today and make deci- MORNING BUSINESS that he use the prestige of his office sions that will have an impact for eter- The ACTING PRESIDENT pro tem- and his relationships with foreign lead- nity. Prepare our hearts to respond to pore. Under the previous order, there ers to press the Organization of Petro- You and to live for Your glory. Help will be a period for the transaction of leum Exporting Countries—OPEC—to each of us to find the special purpose morning business for 60 minutes with increase production, thereby relieving You have in mind for our life. the first 30 minutes under the control some of the pressure on gas prices in Sustain our military in the heat of of the Democratic leader or his des- the United States in the long term. its challenges. ignee, and the second 30 minutes under This is not a radical idea. In fact, on We pray this in Your holy Name. the control of the majority leader or more than one occasion in the fall of Amen. his designee. 2000, then-candidate Bush put the challenge directly to the President. His f f message was clear: RECOGNITION OF THE MINORITY What I think the President ought to do is LEADER he ought to get on the phone with the OPEC PLEDGE OF ALLEGIANCE The ACTING PRESIDENT pro tem- cartel and say, ‘‘We expect you to open the The Honorable SAM BROWNBACK, a pore. The Democratic leader is recog- spigots.’’ Senator from the State of Kansas, led nized. If that was good advice then, it is the Pledge of Allegiance, as follows: f certainly sound counsel now. Unfortu- nately, President Bush has not fol- I pledge allegiance to the Flag of the RISING GASOLINE PRICES United States of America, and to the Repub- lowed his own advice. lic for which it stands, one nation under God, Mr. DASCHLE. Mr. President, I in- Secretary of Energy Abraham an- indivisible, with liberty and justice for all. tend to use my leader time this morn- nounced earlier this year that the Bush

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

S4853

VerDate May 04 2004 00:07 May 06, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.000 S05PT1 S4854 CONGRESSIONAL RECORD — SENATE May 5, 2004 administration would not call on OPEC of the comprehensive energy bill. That Again, I hope we all recognize the to roll back their scheduled production section would double the amount of volatility and the extraordinary danger cuts. Secretary Abraham said, ‘‘The ethanol produced in the United States economically and financially we put United States is not going to go around over the next 10 years. In the process, our country and all Americans in if we the world begging for oil.’’ On April 1, it would boost rural income, improve are not prepared to address energy OPEC went ahead with the production air quality, and extend domestic gaso- prices, gasoline prices, more effectively cuts. line supply. than we have so far at the Federal In my March letter, I also asked the The use of domestically produced, re- level. President to follow the Senate’s advice newable ethanol has effectively low- Mr. REID. Will the Senator yield? and stop diverting oil from the market- ered gasoline prices to motorists when- Mr. DASCHLE. I am happy to yield. place to fill the Strategic Petroleum ever it has been made available during Mr. REID. We worked yesterday at Reserve. On March 11, the Senate voted its 25-year history. This is because great length on the FSC bill and were 52 to 43 for an amendment that would high-octane, clean-burning renewable able to get the amendment we have stop the diversions of oil. Simply put, fuels, especially ethanol, increase been trying to get a vote on for several it is illogical to be taking oil out of the available volume of finished gasoline months dealing with overtime. The marketplace when gasoline prices are by more than 10 percent today and give amendment, of course, passed. That is so high. If anything, we should be gasoline markets more supply options. out of the way. doing just the opposite. The President In addition, the reduced tax that is The Democrats are offering lots of has ignored the Senate’s advice, and imposed on renewable fuel also saved amendments. We have amendments gasoline prices continue to rise. consumers millions of dollars each that are pending that have been offered To add insult to injury, we now know year as ethanol blends are nearly al- by a number of Democratic Senators, that the large oil companies are reap- ways priced lower than conventional amendments we have in the queue, and ing record profits as a result of the vol- gasoline. other Democrats have indicated they atility in the gasoline market, while Reenactment of the renewable fuel are willing to offer their amendments. consumers are struggling with higher standard would result in more than I say to my friend, the distinguished prices at the pump. Over the past year, 500,000 barrels per day of high-octane, Democratic leader, on our side we feel the ‘‘Big Four’’ oil companies have refined ethanol for blending with gaso- this bill is doable and we can do it seen an average increase in their U.S. line, saving the United States $4 billion quite quickly. I want the record to be profits of 157 percent. Chevron-Texaco in imported oil each year because we spread with a statement from the has seen a 294 percent increase in its would double the use of renewable Democratic leader that we want the U.S. refining and marketing profits. BP fuels. bill to pass. If it does not pass, it is not has seen a 165 percent increase. Unlike the comprehensive Energy going to be anything that has been ExxonMobil has seen a 125 percent in- bill which remains stalled by bipar- done by the minority. The FSC bill is crease. And Conoco-Phillips has seen a tisan opposition to specific provisions, important. We realize it has been im- 44 percent increase. the renewable fuel standard enjoys portant for some time and have done Consumers have reason to be upset. strong bipartisan support. It has been everything we can to get it passed. While the big oil companies are raking reported out of the Environment and Would the Democratic leader indi- in record profits, President Bush re- Public Works Committee twice and cate his feelings about this most im- mains reluctant to take steps that passed by the Senate twice, both times portant piece of legislation. could reduce the costs consumers face. by more than a two-thirds vote. It is Mr. DASCHLE. Mr. President, I re- It is time to reconsider this posture. still pending in the Senate today. Last spond to the distinguished assistant In the short term, I hope that Presi- June, 68 Senators voted in favor of RFS Democratic leader by first thanking dent Bush will take another look at when then-Majority Leader FRIST and I him for again clarifying our cir- the value of encouraging OPEC to in- offered it as an amendment to the En- cumstances with regard to the FSC crease production now. ergy bill. The renewable fuel standard bill. I said in the Senate yesterday, and Senator WYDEN, who is on the floor will help blunt rising gasoline prices. If I know he has reiterated our commit- this morning, has introduced a resolu- Congress is not able to pass the RFS as ment, that we will pass the bill this tion calling on the President to do just part of a comprehensive energy bill, it week if we can get the cooperation of that. I hope the Senate would ratify it should pass it on its own. It is the right Senators on both sides. and would encourage, on a bipartisan thing to do for consumers. Working with the distinguished as- basis, the President to take this action Beyond that, we have to recognize sistant Democratic leader, we have with the passage of the resolution. This this country cannot sustain its current winnowed down the number of amend- resolution contains the same language consumption of gasoline and of trans- ments on our side to a handful. We are as the resolution the Senate passed portation fuels. We have to find ways very confident we can finish the con- unanimously in 2000, when then-Sen- in a comprehensive energy policy to sideration of the pending Democratic ators Ashcroft and Abraham joined deal with an issue that many on the amendments, certainly within the next others in offering it. I hope that the other side are unwilling to deal with, couple of days. I have yet to hear from Senate will act on the Wyden resolu- and that is conservation. We have the our Republican colleagues as to the tion soon. capacity to improve conservation, to status of the 55 amendments that were I also encourage the President to re- reduce per capita demand. We have a offered on their side. I have no infor- consider his decision to continue filling capacity now to use the technological mation that would lead me to believe the Strategic Petroleum Reserve. But innovation, the extraordinary research they have had similar success. I hope short-term fixes are not the answer to that has been offered in the last 20 that is not the case. I hope they have our longer-term energy supply prob- years to bring down consumption in been able to convince Republican Sen- lem. The Nation needs a balanced, na- both comprehensive as well as in indi- ators that 55 amendments, as prolific tional energy policy. This Congress has vidual and specific ways. I have abso- as that sounds, would make it impos- considered comprehensive energy legis- lutely every confidence that if our sible to finish the bill this week. lation. I have voted for the conference Members would continue to work on We are prepared to continue to work version of this legislation twice—once comprehensive energy legislation with to see we bring our debate on this bill in November when it contained the an understanding of the importance of to closure. I am confident we can do controversial MTBE liability relief conservation, of reduction of our insa- that, at least on our side, and I appre- provision, and again last week when tiable appetite for more and more en- ciate very much the Senator from Ne- Senator DOMENICI offered a slimmed ergy, we could do it. It must be a part vada working so diligently with the down version with the MTBE rider as of any long-term energy policy if, in- managers of the bill to accommodate an amendment to the Internet tax bill. deed, we are going to bring this coun- our optimism about our success in It was defeated both times by bipar- try to a balanced and a pragmatic ap- completing the bill this week. tisan votes. preciation of the extraordinary impli- I yield the floor. It is no secret that I strongly support cations of current energy policy and The ACTING PRESIDENT pro tem- the renewable fuels standard provision demand in this country today. pore. The Senator from Oregon.

VerDate May 04 2004 00:07 May 06, 2004 Jkt 029060 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.001 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4855 STRATEGIC PETROLEUM RESERVE I yield the floor. ply, and when they are unwilling to Mr. WYDEN. Mr. President, at a time The ACTING PRESIDENT pro tem- confront OPEC as they are cutting when there are record gasoline prices pore. The Senator from the great State back supply. What we are getting is the for the American consumer and record of New Jersey. natural result of rising prices, which is oil company profits, the Bush adminis- Mr. CORZINE. Thank you, Mr. Presi- coming right out of the pocketbook of tration is filling our Strategic Petro- dent. middle-class Americans. It is just abso- leum Reserve at 21⁄2 times the average Mr. REID. Mr. President, will the lutely wrong. fill rate. Over the last 2 years, the av- Senator yield in order for me to make If you are cynical, you can also say, erage fill rate has been about 120,000 a unanimous consent request. well, maybe it is because some people barrels a day. Recently, it has been Mr. CORZINE. Certainly. benefit from these higher prices. Being someone who worked in the private hovering around 300,000 barrels a day. f Using the figures provided by the ad- sector for 25 years of my life, I don’t ministration’s Energy Information Ad- ORDER OF PROCEDURE think profits are a bad thing. But when ministration Office, these policies Mr. REID. Mr. President, on the the American people are suffering from would raise the price of oil per barrel Democratic side, how much time do we this erosion of their quality of life—be- about $1.50. have? cause of the rise in property taxes, I come to the Senate today to say I The ACTING PRESIDENT pro tem- health care costs, tuition costs, and believe the Bush administration’s poli- pore. Twenty-five and a half minutes. now gas prices—you wonder why it is cies with respect to the Strategic Pe- Mr. REID. Mr. President, we would, so appropriate that Exxon-Mobil’s prof- troleum Reserve are hitting the Amer- on this side, yield 71⁄2 minutes to Sen- its were up 125 percent in the first ican people with a double whammy. ator CORZINE, 71⁄2 minutes to Senator quarter of this year; BP’s profits were For the American people, more of their SCHUMER, and 71⁄2 minutes to Senator up 165 percent; and Chevron-Texaco’s tax dollars are now being spent for fill- BREAUX. I ask unanimous consent that profits were up 294 percent. Is that eco- ing the Strategic Petroleum Reserve be the order. nomic fairness, in any context, particu- and more of their take-home dollars The ACTING PRESIDENT pro tem- larly when you put it into the perspec- are being spent on gasoline at the pore. Is there objection? tive that what the Bush administration pump. Without objection, it is so ordered. is doing is restricting supply? I come today to say if the Bush ad- The Senator from New Jersey. This is just wrong. It is out of the ministration is not willing to at least context of what is best for the Amer- f reduce the fill rate of the Strategic Pe- ican economy and for growth and the troleum Reserve, I ask the Bush ad- GAS PRICES quality of life of Americans. It needs to ministration to stop filling the Stra- Mr. CORZINE. Mr. President, first of be addressed. We are creating a wind- tegic Petroleum Reserve with a fire- all, let me go back and compliment my fall for American business at the ex- hose. It is that simple. colleague from Oregon, who I think has pense of middle-class Americans. And Over the course of the year, the ad- analyzed a problem that fits into a pat- it is happening day after day after day. ministration may say, we reach an av- tern of economic pressure that we see I do not begrudge profits, but I don’t erage fill rate of 120,000 barrels a day. building on the middle class in Amer- think it ought to be done on the backs There is a great amount of oil in some ica. of the American middle class because months and no oil in other months. There is nothing more fundamental of the general macroeconomic policies To that, I say the months before the today in life than filling the car with of the President. And that is exactly peak driving season, when gasoline is gasoline and using it for commuting what we have right now. It is wrong already at record prices, are not the and taking the kids to school and doing and needs to be pushed back, just as we months to go whole hog in filling the all the normal tasks that we have need to confront Saudi Arabia with re- Strategic Petroleum Reserve. This is going on. We see the same problem, by gard to its leadership in OPEC. If they not the time to pour in the maximum the way, with health care costs, tuition are our ally, as they claim to be, then amount of oil. One reason is because oil costs, and with property taxes across we ought to be speaking to them about prices are already so high that Amer- this country. increasing the production of oil out of ican taxpayers are spending top dollar While there may be some good eco- OPEC as opposed to the restrictions we for the oil being put into the reserve. nomic statistics out there, middle- have seen. Anyone who has ever had to run their From what we understand from all class Americans are being hit unbeliev- own family finances knows when prices news reports and actually the Saudi ably hard on the fundamentals that are high, sometimes you wait until the Foreign Minister has said, there has drive their basic budgets. Nothing— price comes down to buy what you not been one word of contact from this nothing—more clearly demonstrates want. administration to the Saudis about this than these rising gasoline prices There is another, more compelling OPEC production. reason to slow the rate of fill in the we have been experiencing this year. So now we have two of those very Strategic Petroleum Reserve. It is be- There has been a 23-cent increase in large ingredients into the supply and cause this administration’s policy is the price of gasoline. Nationally, the demand equation. That is why we are actually contributing to the high gas average price for gasoline is $1.84 a gal- getting high prices. That is why gas is prices shellacking working Americans’ lon. Many places in the country it is $1.84 a gallon, on average, in the coun- pocketbooks every day from coast to over $2 a gallon. try. And that is why it is $2 a gallon on coast. This comes from flawed simple eco- the coast and most of the places where I am of the view the American con- nomics 101, supply and demand. This our larger population segments work. sumer is about to get hit by a perfect administration is doing everything It is really troubling we cannot put storm with respect to these gasoline that you can imagine to hold back sup- together a response to something that prices. The combination of OPEC cut- ply by filling the petroleum reserve at is eroding the quality of life in the backs, the fact the Federal Trade Com- accelerated rates, when it is already aftertax base of middle-class Ameri- mission—the agency that is supposed about 95 percent full. It does not need cans to actually operate in a sound to protect our consumers—is sitting on to be in this position. way. So I hope we will all follow Sen- its hands, the fact you actually get a As we go into the summer season, the ator WYDEN’s lead. He has done a ter- tax break for closing a profitable oil ‘‘perfect storm’’ the Senator from Or- rific job of bringing focus to it, as has refinery, these Strategic Petroleum egon talks about is also being imple- the Senator from New York, talking Reserve policies, is going to create a mented with regard to other policies. It about pushing back against OPEC on perfect storm that is going to be dev- is counter to any basic economic anal- production cutbacks. We really need to astating for American consumers ysis that you would want, to be taking take a stand for the American people, across our country. supply off the market that would run not for the oil companies and the prof- I know my colleagues are here and down prices. I don’t know what people itability we are seeing brought forth. want to talk about this issue, as well, are thinking when they implement At a time when we still have not reso I will abbreviate my statement. policies that are going to restrict sup- covered those 2.6 million private sector

VerDate May 04 2004 00:07 May 06, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.004 S05PT1 S4856 CONGRESSIONAL RECORD — SENATE May 5, 2004 job losses, when 8.5 million Americans classified briefing on Capitol Hill, tell- situation when we meet in secret up in are unemployed, why we are putting ing the Senate membership the state of room 407 and something as scandalous more pressure on middle-class Ameri- affairs in Iraq. It was the same day as American troops killing—we now cans and their quality of life is just that this story was to be aired on ‘‘60 have confirmed two homicides—pris- hard to believe. It is time for a change. Minutes II,’’ the story relating to Iraqi oners of war in addition to humiliating Supporting the proposition of the Sen- prisoners. them through sexual pictures and ator from Oregon is one that I think we The fact is, the Secretary testified doing other things that speak so poorly all ought to get out and get to work on. without even indicating to the Mem- of our military that I am sickened to Mr. President, I yield the floor. bers of the Senate that this story ex- my stomach. The ACTING PRESIDENT pro tem- isted or was about to be disclosed to Mr. President, we will take 1 minute pore. The Senator from Nevada. the American people. That is unaccept- from Senator BREAUX. f able. Mr. DURBIN. I ask unanimous con- The Secretary of Defense needs to re- ORDER OF PROCEDURE sent for 1 additional minute through turn to Capitol Hill tomorrow to give Senator BREAUX’s time. Mr. REID. Mr. President, of the time another classified briefing to the Mem- The ACTING PRESIDENT pro tem- allocated to the Democrats, I would bers of the Senate, to tell us exactly pore. Without objection, it is so or- yield 4 minutes to the Senator from Il- what transpired, why he did not dis- dered. linois, Mr. DURBIN. Do we have the close this to Members of the Senate, Mr. DURBIN. I agree completely with ability to do that, allocating the 4 min- and why there is this veil of secrecy in the Senator from Nevada. I have a feel- utes? If the Senator from New Jersey this administration when it comes to ing of embarrassment and also sadness, used all his time, we do not. one of the most troubling stories that sadness for the thousands of men and The ACTING PRESIDENT pro tem- has emerged since our invasion of Iraq. women in uniform risking their lives pore. There are 4 minutes for you to be I have spoken to our Democratic today, serving us so nobly in Iraq, who able to yield. leader, Tom Daschle. He has been in are going to be swept into this vortex. Mr. REID. I yield the 4 minutes to conversation and dialogue with Sen- We have to make certain the soldiers Senator DURBIN. ator FRIST, the Republican leader, and who are responsible for this as well as The ACTING PRESIDENT pro tem- has an agreement that all three things their leaders in command are brought pore. The Senator from Illinois. that I have just outlined will occur: a out and held accountable so that our Mr. DURBIN. Mr. President, I thank resolution on the floor relative to the fine men and women who are fighting the Senator from Nevada. And I thank Iraqi prison scandal; secondly, an ap- in the military in Iraq do not have to my colleague from New York, who will pearance by Secretary Rumsfeld in bear this burden. They are our best and follow me. open hearing before a committee as brightest. We owe them the greatest soon as possible; and, third, a request f respect. But let us be honest; what hap- that the Secretary come to Congress, ABUSE OF IRAQI PRISONERS pened here is not typical of America, on a classified basis, and meet with us certainly not typical of our military. Mr. DURBIN. Mr. President, there is tomorrow, before this week ends, be- Unless we are forthright and open in not an American today who woke up fore this Senate leaves, to explain to us accountability, it is going to sweep all and did not hear the lead news story, a what has happened in this terrible epi- of them into this veil of blame. That story which has, frankly, brought us to sode. would be unfortunate. a position of embarrassment with the Those who are responsible for this abuses that have been sadly docu- need to be held accountable—whether The ACTING PRESIDENT pro tem- mented and have been spread across they are the soldiers involved in it and pore. The Senator from New York is the world relating to the treatment of right up the chain of command to the recognized for 6 minutes. Iraqi prisoners. leadership that failed. If we do not do Mr. SCHUMER. I thank my col- The word is that the President of the this, frankly, we are jeopardizing the leagues from Nevada and Illinois for United States is going to address the security of this country and the safety what they have said. The bottom line Arab nations through their own tele- of our men and women in uniform, who is, of course, very little could be more vision network to talk about his dis- still continue to struggle in Iraq to counterproductive to this war effort appointment, and I hope with an apol- find peace and stability in that coun- than what has happened. The best way ogy for what has occurred. try. to deal with it is to come clean and But we have a responsibility on Cap- We need to move now. We need to come clean quickly, to find out how itol Hill. We have a responsibility in move decisively. We need to show the often it happened, where it happened, the Senate. I believe we should move, leadership on Capitol Hill which has how high up the chain of command, and move decisively, No. 1, to entertain failed to this point. The way to do it is and exorcise it. Because to the over- and pass a resolution on this floor that through these three approaches. whelming majority of our troops and makes it clear that what happened in The ACTING PRESIDENT pro tem- our military leadership this is abhor- that Iraqi prison is not what America pore. The Senator from Nevada. rent. The sooner we can exorcise this is all about, and that those responsible Mr. REID. Mr. President, through the cancer, the better off we will all be. for it—from those whose photographs Chair to my friend from Illinois, I ap- Keeping this secret is not going to were taken, all the way up the chain of preciate very much his statement. I am work. It is going to come out. It has command—need to be held accountable hopeful and confident that agreement come out. I join my colleagues. I hope for their actions. Nothing less than on those strategies will be reached we can get Secretary Rumsfeld to come that should be tolerated. today. I am terribly disappointed, and back before us very quickly and give us Secondly, the Secretary of Defense, not only in what we did not hear from a full and complete briefing on what Don Rumsfeld, should be appearing be- the Secretary of Defense. has happened. That should happen this fore a committee on Capitol Hill, on a Mr. SCHUMER. Mr. President, I week, because last week he gave a timely basis, as quickly as possible, to think I have 61⁄2 minutes. I yield a briefing in room 407 and didn’t even explain exactly what happened. It is minute of my time to the Senator from mention this, even though it was going absolutely incredible that the Sec- Nevada. to appear on TV that night. retary of Defense had no knowledge of Mr. REID. Mr. President, there was All of us who care so much about our this event, nor of the investigation more brass in 407 last Thursday than troops, who are risking their lives with that followed. would make up a band, four stars all bravery, hate to see any stain upon Finally, let me say this. Many of us over the place, including the Chairman them. The quicker we deal with this, believe what happened last week with of the Joint Chiefs of Staff. Not a sin- the better it will be for everybody. the appearance of the Secretary of De- gle one of those people in the chain of Don’t hide it. Don’t underplay it. Just fense on Capitol Hill was extremely command even breathed a word of the get it out, exorcise it, and go forward. troubling. Last Thursday, Secretary of impending scandal that they knew That is what we have to do. I hope Mr. Defense Don Rumsfeld appeared in a about as they briefed us. It is a terrible Rumsfeld will come before us quickly.

VerDate May 04 2004 00:07 May 06, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.006 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4857 OIL PRICES down. Do you know why it stayed RESPONSE TO PRISONER ABUSE Mr. SCHUMER. Mr. President, I rise down? Not just the new oil on the mar- Mr. DASCHLE. Mr. President, I had to discuss oil prices, another problem ket, although oil prices are decided at hoped to come to the floor when Sen- vexing America. Everywhere I go in my the margin, but because OPEC knew ator DURBIN spoke with regard to the State, people are just amazed that gas- they couldn’t play around with us. need for a Senate response on the mat- oline prices are through the roof. It is When Spence Abraham, the Secretary ter of prisoner abuse. Senator DURBIN hurting everybody. There was a report of Energy, says we are not using the related, as I understand it, some con- last week that people were buying a SPR, it gives a green light to OPEC versations I have had with the distin- little less food. You know you are get- that says: Raise prices as high as you guished majority leader, and I confirm ting down to the bare bones. Costs of want. I have had some very good conversa- everything could go up. Inflation, Is that leadership? Is that what the tions with the majority leader about thankfully, has stayed low, but if en- average American needs? Again, the some of the actions Senator DURBIN ergy prices stay this high for this long, average American is not looking at the outlined. they are going to get higher. What is so newspaper and saying: Gee, the econ- The majority leader shares my view, troubling is that we have the tools to omy is great. They are sitting down at and I know he will want to speak to the bring the prices back down. The admin- the dinner table Friday night and tear- matter himself, that the Senate needs istration is fiddling while high-priced ing out their hair about how they are to address this matter, asking Sec- gasoline burns, if you will. going to pay their bills. The high price retary Rumsfeld to come to room S–407 The No. 1 culprit is not the lack of of gasoline makes it much worse. We this week so we can ask questions di- refineries. Let me make clear: We do have a way to combat it, to tell the rectly and clarify why it was when have a shortage of refineries. We have Saudis and OPEC, the heck with you. they met with us last week we were not had a shortage for 15 years. The price And we are sitting there. This adminis- told of this information, and share has not been this high for 15 years. The tration just sits and twiddles its with us as much as he and the Pen- price was a lot lower a year ago with thumbs as the price goes up and up and tagon know about the degree of abuse, the same number of refineries. up. In fact, we send them little signals what other circumstances may be in- The problem is OPEC. OPEC has got- that it is perfectly OK. volved, and whatever has been learned ten together, led by the Saudis, and de- The resolution I will be drafting—and so far through the investigation, and a cided that the old ceiling of $28 a barrel I know my colleagues from California full airing of the report. is no longer the ceiling. It is approach- and Oregon are interested because we He also indicated his view that the ing $40 a barrel. That is danger for our have talked about this—asks that we Secretary ought to come before the ap- people, our economy. Senator CORZINE immediately, for 30 days, and then with propriate committees and testify with mentioned before, you see the great the option for another 30 days, put a regard to these actions so the Amer- economic numbers and then you talk million barrels of oil out there. The ican people have a better under- to average folks and they are having as price will come down. standing of what we know and what ac- much trouble paying the bills and mak- I ask my fellow New Yorkers and tions are being taken to address this ing ends meet as they ever did before. Americans, don’t think there is noth- circumstance so we can say without My view of my role as Senator is to ing we can do about high oil prices. As equivocation it will not happen again, help those folks with their daily lives, my good colleague from Oregon who and that we can reiterate to the world not to just look at numbers in the led this debate said and as my col- community this is not the practice, not newspaper and say, the numbers are league from New Jersey said, if we the policy, and certainly not in keep- good but, rather, to talk to average would simply use the SPR to reduce ing with the character of the American people and say: How are you doing? prices instead of now having it raise people. When I ask that, they say: Well, I prices, the price would come down. Finally, Senator FRIST and I have would be doing a lot better if gasoline Again, our job as Senator is not to talked extensively about the impor- prices were lower. just look at these macrostatistics— tance of passing a resolution this week We have a weapon. We have the Stra- that is part of the job—it is to figure denouncing this abuse and expressing tegic Petroleum Reserve. The Stra- out what the average family needs. our abhorrence on a bipartisan basis tegic Petroleum Reserve’s first and And they need lower prices. and sending as clear a message as we foremost purpose is to be there in an We can do it. I urge the administra- can to all the world community that emergency. But we changed the law. I tion, I urge this body to stop ignoring this is unacceptable behavior, it is not helped change it. It can be used when this problem, to get working on this in keeping with our practice, with our gasoline prices are too high as a tem- problem, and bring those prices down philosophy, with our character, and we porary way of bringing them down. in a variety of ways. What I have been want as much as possible to rectify That is what we should be doing. pushing is the SPR, release some oil what damage has been done and to as- The bottom line is, instead of actu- from the SPR. Prices will come down. sure those who would in some way ally putting more oil on the market to It happened when President Clinton did make any effort to use this for their lower the price, we are increasing the it. own purposes as an anti-American reserve as we speak, raising the price I hope this body will act quickly. propaganda tool that that will not be even further, even though the reserve Just because there is big oil, because tolerated. is over 90 percent full. there are Saudis, does not mean we This is not America. This is not the I have a resolution I hope to intro- should have to roll over. The President practice of our country. This is not the duce on some bill soon enough that should be standing up for the average practice of 99.9 percent of the military asks the President to confront OPEC, American, not standing up for the oil serving so admirably in Iraq today. not to play footsie with them, not to companies and not patting the Saudis They deserve better than that. And to just tell the Saudis we understand. on the back. tarnish their reputation and the con- I understand there has been a close I yield the floor. tributions they have made is abhorrent relationship between many in this ad- The PRESIDING OFFICER. The mi- as well. ministration and the Saudis and the oil nority leader. We need to make sure those points companies. It is sort of a Bermuda Tri- Mr. DASCHLE. Mr. President, how are made, but, first and foremost, we angle into which oil prices just go. But much time remains on the Democratic need to have a better understanding. enough is enough. We should be putting side? We are shooting in the dark. We have a million barrels of oil out into the The PRESIDING OFFICER. Four no information other than what we market for 30 or 60 days and watch, the minutes 45 seconds. have read in the newspaper, and that is price will come down. Mr. DASCHLE. Mr. President, I will not acceptable. Secretary Rumsfeld I don’t regard this as a partisan ac- use part or all of that time. I know ought to be here, he ought to explain tivity. I pushed President Clinton to do Senator BREAUX was planning to come himself and the Pentagon, and we this for 8 months. He did it in October to the floor but has now changed his ought to say, after having acquired of 2002. The price went down and stayed plans. that information, as unequivocally and

VerDate May 04 2004 00:07 May 06, 2004 Jkt 029060 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.010 S05PT1 S4858 CONGRESSIONAL RECORD — SENATE May 5, 2004 with whatever authority we have, this SUPPORT FOR OUR MEN AND cials. I made a request for such hear- will not happen again. WOMEN IN UNIFORM ings immediately following our hearing I yield the floor. Mr. WARNER. Mr. President, in my yesterday. I was joined by Senator Mr. WARNER. Mr. President, before colloquy with the distinguished Demo- LEVIN, the ranking member. We must always remember that the distinguished minority leader de- cratic leader, I reviewed my great con- under our Constitution, it is very clear parts, I join, as does the majority lead- cern that as Senators—indeed, as peo- in the long traditions of this country er, in his request. As he may know, ple all over the United States and, in- that civilians control the U.S. mili- yesterday the Armed Services Com- deed, the world—wish to address the tary. They have the ultimate responsi- mittee had a 2-hour briefing with the extraordinary, tragic information flow- bility of the actions of the men and top military leaders from the Depart- ing about alleged atrocities per- women in uniform. They are the ones ment of the Army. Senator LEVIN and I petrated by U.S. forces and perhaps who promulgate the orders from the felt it important to proceed very others that they incorporate in every Commander in Chief, the President, to quickly. Following that, we had a press statement a reference to the courage, the unit commanders. Consequently, conference in which both Senator the sacrifice, of the men and women in the civilians must accept that respon- LEVIN and I spoke of the need for the the Armed Forces of our Nation, of the sibility. Secretary of Defense, Mr. Rumsfeld, to coalition forces who are fighting with Secretary Rumsfeld, in a press con- come up. us in Iraq, as well as Afghanistan and elsewhere around the world, and, in- ference yesterday, addressed the Na- I have been working on that steadily, deed, the impact of this tragic series of tion. As I said, I have been in consulta- and I can assure the leader, having revelations on their families back here tion with him and his office about an talked to my leader last night, Senator at home, and to be ever mindful that in appearance, which I anticipate will FRIST—presumably shortly after the the United States and in the homes of take place very shortly following the two leaders had discussed it—that Sen- the coalition forces in other nations public statements to be issued, I be- ator FRIST has joined with Senator are the wives, the children, mothers, lieve, today by the President of the DASCHLE and others to get that done. fathers, and others who are in strong United States. I anticipate, however—and I think it support of their loved one beyond the I fully believe the most constructive is probably wise—that the President of shores, and how ever so hard this story course of action at this point is to fully the United States is going to address hits home with them. understand the extent of this problem, this issue, and I think immediately fol- I do hope my colleagues and others, no matter how much time it requires lowing that, I will presume, say, Thurs- as they address this issue, take the to gather all of the facts, no matter day morning, tomorrow morning, that time to include reference to the valiant how difficult it is to get all of those we could hope to have the Secretary work being done by uniformed people facts, no matter how embarrassing before the Armed Services Committee. of the armed forces of many nations those facts may be—get the facts out And then subject to the leadership, per- and their families. and the story, so that not only the haps he could work with other Sen- The allegations of mistreatment of Congress of the United States can ators in another forum later sometime the prisoners by some members of the reach its judgment but, indeed, the tomorrow. That would be my advice. Armed Forces, if proven, represent an American public and others around the I commend the leader, my good appalling and totally unacceptable world, because this is an around-the- friend, for his incorporation in his re- breach of military regulations and con- world story at this point in time. marks the need for every Senator as duct that could—and I repeat—could Our great Nation has had a symbol of they address this issue to reflect on undermine much of the greatest works freedom and hope for its entire exist- the, as he said, 99.99 percent of extraor- and sacrifices of our forces in Iraq and ence. The world looks to us as the dinary professionalism and courage around the world in the war on terror. standard bearer of how best to bring rendered by the men and women in the The vast majority of our men and about freedom for others, how best to Armed Forces, not just in Iraq, not just women—as the Democratic leader said, protect those values which we hold so in Afghanistan, but all over the world. 99.99 percent—fully understand their dearly and for which men and women No one should have their wonderful obligations to conduct themselves in have gone forth for generations from works and sacrifices and those of their accordance with military, national, these shores not to conquer or take families in any way tarnished by these and international standards, most par- land, but they have gone forth in the serious allegations. ticularly the standards of professional cause of freedom. conduct that are taught each soldier, I believe in due course, once this I thank my good friend and leader. sailor, airman, and marine of our story is fully understood, we will have Mr. DASCHLE. Mr. President, if I forces. the ability as a Nation to apologize to can respond, I thank the distinguished The mistreatment of prisoners, no our Chief Executive, the President, chairman of the Armed Services Com- matter what their reason for incarcer- through others, through this humble mittee for his comments and for the ation, is not what the uniform of the Senator, for the actions taken and, work he has already undertaken to en- United States stands for. It is not what most importantly, give the assurances sure many of these issues can be ad- the United States stands for as a Na- to the world that we will not ever dressed. He has shown real leadership. I tion. It is not the way for anyone who again see a repeat. applaud that and look forward to work- wears that uniform to conduct them- I have had the privilege to have had ing with him in the days ahead. selves. association with the men and women of I yield the floor. The Armed Services Committee re- uniform for over 50 years. When I was a Mr. WARNER. Mr. President, I thank ceived a briefing from senior Army of- young sailor in the closing year of my good friend and colleague of many ficials yesterday. We did receive a con- World War II, I began my career in the years. siderable amount of information that training commands of the U.S. Navy. I I should now like to proceed, if the is not freely in the press today. I think have had many opportunities in the en- Chair will kindly advise this Senator in due course that information will be suing years to work with the men and the amount of time under the control and should be shared publicly. Never- women of the U.S. military. During the of this side of the aisle. theless, we have begun our probe of war in Korea, I served as a marine. this particular case. I commend the During the Vietnam war, I was privi- The PRESIDING OFFICER. There committee for its actions so far. We leged to serve over 5 years as the Navy are 30 minutes in morning business had three-quarters of the members of Secretary. We had our problems during under the control of the majority lead- the committee in attendance yester- that conflict, but I doubt if any of er or his designee. day. There was a very vigorous ques- those problems parallel the seriousness Mr. WARNER. I should like to take tioning of the Army witness. While in- and consequences of this framework of approximately 10 minutes of that time. formative, the briefing revealed the allegations today. The PRESIDING OFFICER. The Sen- need for more extensive public hear- Therefore, it is a duty upon us to ator from Virginia is recognized. ings from civilian and military offi- leave no stone unturned, to reveal all

VerDate May 04 2004 00:07 May 06, 2004 Jkt 029060 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.013 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4859 of the facts, to give the assurance that the distinguished Senator, the chair- billion over the next year and a half on it will not happen again, and to place man of the Armed Services Committee, drugs. That is not chickenfeed. That is into the military such authorities as moving forward and asking Secretary saving a lot of money for our seniors. they need. I doubt if there is anything Rumsfeld to come and testify in public. Older Americans and individuals with under statute law that needs to be It is our hope that Secretary Rumsfeld disabilities can choose a card that gets added, but the authorities need to up- will also brief the entire Senate, along them the lowest prices on drugs they hold those laws and regulations, and with the distinguished committee. I ap- need. training should follow so that this will preciate the leadership of the Senator Finding the best card could not be never be repeated. from Virginia very much. simpler. Contrary to what one of the Again, as we proceed over the next Mr. WARNER. Mr. President, I thank Senators told us yesterday about how days and weeks, we must be mindful of our colleague from Texas. Let me as- complicated this process is, they are the millions of men and women in uni- sure all that I have been in contact hoping the seniors, whom they consider form, past and present, who have hon- with Secretary Rumsfeld. There is no their political property, will believe orably, with great sacrifice, defended reluctance whatsoever on his part to them that it is complicated and they the laws, rules, traditions, and values come forward. He desires to do so, but will not bother to look at it because it enshrined in the U.S. Constitution and I believe it should be following the is too complicated. Do the seniors of in the American way of life. The ac- Commander in Chief, the President, America need to have Democrats scare tions of a few must not be allowed to when he addresses indeed the Nation them more? tarnish that image. and the world in a short time. This is how simple it is: Call 1–800– Of course, I am very mindful of the Mrs. HUTCHISON. I thank the Sen- MEDICARE any time, 24 hours a day. fact that Memorial Day is in a few ator from Virginia and also agree that They can call their State Health Insur- weeks, and we will dedicate a magnifi- would be proper. The President should ance Information Program, SHIP as it cent set of structures on our Mall to have the ability to represent the Amer- is called, and get counselors at the the men and women who served during ican people and the world. I know that local level. Most of them are very well- World War II—some 16 million. I had he is going to do that in a very effec- trained volunteers to help seniors de- the privilege of going down the other tive way. Thank you, Mr. President. cide. They can go online themselves if day with Senator Dole, a former col- Mr. President, I ask the Senator from they want to, or with a family member, league, whose wisdom and energies Iowa to take the next 10 minutes. to compare prices offered by different have contributed greatly to this mag- The PRESIDING OFFICER. The Sen- cards. nificent memorial. As we walked there ator from Iowa is recognized. They can find low or no-cost cards together with other Senators from this f that include their neighborhood phar- Chamber—totaling 7, who served in macies, all by making one telephone MEDICARE DISCOUNT CARD World War II—Senator Dole said that, call any time in a 24-hour day to a 1– yes, the monument stands as a symbol Mr. GRASSLEY. Mr. President, I am 800–MEDICARE number. for the sacrifices of those in uniform, going to address issues about the Medi- Using their Medicare-approved drug some 16 million, but he said it also care discount card, and I particularly discount card, beneficiaries will save at stands as a monument and testimony want to respond to criticism that we least 10 to 25 percent on the cost of of the homefront. Those of us who have heard yesterday from the other side. their drugs. memories of that period remember how Listening yesterday, as I did, and Like the drug benefit itself, the well this country was unified. We had then listening today to the criticism Medicare-approved drug discount card rationing; we had war production; we about the high price of gasoline, I have targets assistance to those most in worked around the clock not only to come to the conclusion that over the need. Beneficiaries with low incomes, supply and equip our troops but to pro- last several days members of the other that is less than $12,600 for an indi- vide equipment for our Allied forces. It party have a guilt complex about some vidual and $16,900 for a married couple, was a magnificent chapter in American of the votes they have cast in recent will qualify for a $600 credit this year, history. That cannot be tarnished by months. For instance, only 13 out of 49 another new $600 credit next year. If the actions of a few here. Democrats voted to break the fili- there are two in the family, that is There is clearly room for a construc- buster on the national energy policy. If $1,200 this year and $1,200 next year. If tive debate on how best to proceed in we had a national energy policy, they they do not carry it all this year, it can Iraq, but we must not allow recent would not have any worry about high carry over to next year. If they do not events to obscure the overall stakes for gasoline prices. use it all up before the new insurance our Nation and the world in this re- Then, of course, all but about 12 of program for prescription drugs is put gion. We must be unified in overall pur- them voted against the drug discount in place, they can carry it over into pose that success in Iraq is essential card to give seniors reasonably priced 2006 until it is used up. and that we, the Congress, stand prescription drugs. So they come in Some people have said these cards squarely behind our men and women in and trash the bill we passed in a bipar- will not offer good discounts. That is uniform. tisan way. I hope they realize they what we heard yesterday. So I did some Our troops in Iraq deserve this. They made big mistakes on some of their checking. To give an example, let us deserve the best support we can give votes last year and suck it up and take a woman enrolled in Medicare in them. To appear divided while our sons move on. the largest city close to my farm, in and daughters are in harm’s way runs In regard to what was said yesterday Iowa, with an income of $12,000 a year. counter to the traditions of this Cham- about Medicare, first, yesterday was a Let us call her Helen, to be short. ber. There should be debate, but let it very historic day for Medicare bene- Helen needs to fill prescriptions for be reasoned and measured, and focused ficiaries in my home State of Iowa and Celebrex, Norvasc, and Zocor. With no on the way forward in this war on ter- all the other 49 States. Before then, discounts, she would pay $7,297 at her rorism. many beneficiaries paid some of the local pharmacies for these drugs from The brave young men and women of highest prices for drugs. Now they can June of this year until the end of 2005. the U.S. Armed Forces have answered begin shopping for a Medicare-approved Helen goes to this pharmacy because their Nation’s call to service. They de- discount card that will help them pay she knows and trusts this pharmacy. serve nothing less than our absolute, less, a lot less. She does not want to order her drugs unwavering commitment to their suc- With discounts taking effect June 1, through the mail. cess. Nothing less. this program will provide Medicare With a basic discount card offered by I yield the floor. beneficiaries with immediate savings this legislation, she would save $1,213— Mrs. HUTCHISON. Mr. President, I on their medicines until the com- that is 17 percent—off of her drugs. thank the Senator from Virginia for prehensive Medicare drug benefit be- Now the $1,200 by itself is a pretty big helping to explain to the world how sad gins in 2006. According to the Centers savings, but that is like giving her the all of us are about the developments in for Medicare and Medicaid Services, drugstore.com price at her local phar- Iraq with the prisoners. I appreciate beneficiaries will save $4 billion to $5 macy.

VerDate May 04 2004 00:07 May 06, 2004 Jkt 029060 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.016 S05PT1 S4860 CONGRESSIONAL RECORD — SENATE May 5, 2004 Helen has a fixed income of $1,000 a held 39 town meetings throughout Iowa going to be very accommodating. I am month. This means she also qualifies to tell my constituents about this drug appreciative that the Senator from for the transitional assistance and does discount card program and what it Iowa clarified that because all the not have to pay an enrollment fee. By does. As Members of Congress, we rhetoric we are hearing could scare our applying for the card and qualifying for should use this opportunity to educate seniors. the $600 credit, she also learns she is el- beneficiaries and to tell them about f igible for other assistance programs, the $600 credit. I am concerned about a PASSING THE ENERGY BILL such as those offered by drug manufac- political environment that confuses turers. With the $600 on her card in and misleads Medicare beneficiaries Mrs. HUTCHISON. I want to address both 2004 and 2005, combined with these and that in the end causes more harm the energy issue. I heard Senators on additional discounts, she will save than good. They deserve better than the floor earlier today talking about $6,894. that. the high price of gasoline, as if it is the I will repeat that because that is I want to address a couple of criti- President’s fault. I would remind ev- very significant. She will be saving al- cisms that people have been making. eryone we have an energy bill we are most $6,900 off of her drug bill. That is First, some have said that prices are two votes short of having cloture to a 95-percent savings for her. going to change every week. Drug card pass. We passed it in the Senate. We I ask the people who were criticizing sponsors can only increase the price if passed it in the House. We have 58 this program yesterday if they consider there is a change in the sponsor’s cost. votes to move it forward and we can’t that chickenfeed. For someone living Card sponsors can lower prices at any get the 60 votes it takes to break a fili- on a fixed income, what a relief that is time, which will have a positive im- buster. I ask the Senators who are con- going to be. About a third of her in- pact. cerned about high energy prices if they come will be freed up for other prior- I have been assured that CMS will ag- would consider voting to get the en- ities. gressively monitor the prices charged ergy conference report agreed to so the Since enrollment began Monday, May by card sponsors to make sure that President can sign it because it is a bill 3, we have heard some Members come they treat beneficiaries fairly. that will provide incentives for explor- to this Chamber to criticize the drug CMS will track any changes made in ing, incentives for creating new energy discount card. That is a shame. The drug prices and complaints received by resources, incentives for bringing Alas- discount card program will mean real 1–800–MEDICARE and other sources. ka gas down—which will be a huge help savings for beneficiaries, especially They also will ‘‘mystery shop’’ to make toward self-sufficiency in our country. with low incomes. Seniors have been sure that sponsors are not falsely ad- It has incentives for renewable fuel, for waiting a long time to get relief from vertising. the kind of fuel that will be burning high prescription drug costs. This leg- If CMS finds that a card sponsor is clean, such as nuclear powerplants, and islation delivers that relief. taking advantage of seniors, they can to have clean coal-burning and other I know this is an election year, but freeze enrollment, impose fines or kick new technologies. this is not the time or the issue to play the sponsor out of the program en- There is so much in the Energy bill politics at their expense and to scare tirely. that would bring our country into self- the seniors of America. More than 300 Lastly, some have been saying that sufficiency and we can’t get the Energy organizations—I wish these people on prices on the Medicare Web site are in- bill passed. I think Congress should the other side of the aisle would put accurate. CMS has assured me that the take the responsibility to see this bill this in their pipe and smoke it—en- prices are the right ones. Prices on the goes through. We have tried to pass an dorse this legislation. They will say Web site are the best prices that the energy bill for 10 years and we need to this drug discount card is a first step cards can guarantee. So they cannot be do it. We need to take control our- toward making drugs more affordable higher, but they could be lower. selves. It is time for us to do this for for all Medicare beneficiaries. I said this last week and I will say it the American people. The high price of The president of the National Council again: We should move on and not lose gasoline is set at our feet, and we can on Aging described the new Medicare sight of what really matters. And that do something about it. law as the single most important op- is helping beneficiaries like Helen from I yield the floor. portunity to help low-income Medicare Waterloo and the millions like her get The PRESIDING OFFICER. The Sen- beneficiaries to have emerged in the drugs at lower prices. The bottom line ator from Minnesota. past 35 years. is that the discount card program is a f This is what the president, Robert really good deal for our Nation’s Medi- PRISONERS IN IRAQ Hayes, said: care beneficiaries. (Low-income) people should run—not walk The PRESIDING OFFICER. The Sen- Mr. COLEMAN. Mr. President, the to sign up. ator from Texas. world has witnessed something in the This is especially true for the esti- Mrs. HUTCHISON. How much time last few weeks about the treatment of mated 4.3 million low-income bene- do we have remaining? prisoners in Iraq that does not rep- ficiaries who will see immediate relief The PRESIDING OFFICER. Seven resent what America is all about. It with a combined $1,200 this year and minutes 40 seconds. doesn’t represent our cause. It doesn’t the next which they can use to buy Mrs. HUTCHISON. Mr. President, I represent our mission. It doesn’t rep- their lifesaving prescription drugs. would like to be notified when I have resent our hopes and dreams for the What I find alarming is that some used 2 minutes and 40 seconds, after Iraqi people and for all of us—ulti- would try to score political points which I am going to yield the final 5 mately for democracy in Iraq. rather than help low-income bene- minutes to the Senator from Min- I applaud the President of the United ficiaries get some much needed help nesota. States for his speaking out, con- with their drugs. So my colleagues The PRESIDING OFFICER. The Sen- demning without qualification what voted against this bill last year. Suck ator has that right. has occurred. He, as I understand it, it up and move on. Mrs. HUTCHISON. I thank the Sen- went forth to speak to the Arab world, I was personally involved in the ne- ator from Iowa for talking about the face to face, the leader of the free gotiations last year. I can tell my col- Medicare discount drug card. I think it world speaking to the Arab world to let leagues that during the Medicare con- is so important that seniors know they them know this is not what America is ference, both Republicans and Demo- can easily compare prices; they can de- all about. I think that is important. We crats—that is bipartisan—strongly sup- termine which is the best card for all, at every level, have to reject it. ported the creation of a drug discount them. This is going to help anyone who Those who are responsible at every card. does not have other coverage. level have to be held to account. I While some would like people to be- I hope our seniors know they can call know the Commander in Chief will do lieve otherwise, this Medicare-ap- 1–800–MEDICARE and get further infor- that. proved drug discount card is a good mation. If they call their local Medi- As we deal with this terrible situa- deal. Since January of this year, I have care office, the Medicare people are tion, I hope we do not lose focus on our

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.019 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4861 mission. Our men and women are in Cantwell/Voinovich amendment No. 3114, ‘‘(iii) qualified research expenses (as de- harm’s way and our mission is freedom to extend the Temporary Extended Unem- fined in section 41(b)) and basic research pay- and security in Iraq. The critics of this ployment Compensation Act of 2002. ments (as defined in section 41(e)(2)), and war, do they want us to cut and run? The PRESIDING OFFICER. The Sen- ‘‘(iv) irrevocable contributions to a qualified employer plan (as defined in section Do they want to create a place of insta- ator from Louisiana. 72(p)(4)) but only if no deduction is allowed bility, a haven for terrorism? I can’t AMENDMENT NO. 3117 under this chapter with respect to such con- believe that. Mr. BREAUX. Mr. President, I call tributions. Someone once said a critic is some- up an amendment that is at the desk, ‘‘(D) RECAPTURE.—If the taxpayer’s esti- one who thinks he knows the way but No. 3117, Breaux-Feinstein. mate of qualified expenditures under sub- doesn’t know how to drive the car. It is paragraph (A)(ii)(I) is greater than the ac- The PRESIDING OFFICER. The tual expenditures, then the tax imposed by not a time for critics. Let us deal with clerk will report. this terrible incident. Let us show this chapter for the taxpayer’s last taxable The assistant legislative clerk read year ending in 2007 shall be increased by the America has standards and America is as follows: sum of— there for a reason. The reason is one of The Senator from Louisiana [Mr. BREAUX] ‘‘(i) the increase (if any) in tax which hope. The reason is one of freedom. proposes an amendment numbered 3117. would have resulted in the taxable year for What occurred is something that will which the deduction under this section was never occur again. I am confident our Mr. BREAUX. I ask unanimous con- allowed if the actual expenditures were used President will make sure of that. sent the reading of the amendment be in lieu of the estimated expenditures, plus At the same time, we have to stand dispensed with. ‘‘(ii) interest at the underpayment rate, de- with our President, stand with our The PRESIDING OFFICER. Without termined as if the increase in tax described in clause (i) were an underpayment for the troops. Teddy Roosevelt once said it is objection, it is so ordered. The amendment is as follows: taxable year of the deduction. not the critic who counts, but it is the ‘‘(5) LIMITATION ON CONTROLLED FOREIGN person in the arena. It is a tough arena (Purpose: To limit the amount of deferred CORPORATIONS IN POSSESSIONS.—In computing right now. But the cause is just. We foreign income that can be repatriated at a the excess qualified foreign distribution have lost life and it is a sacrifice, but lower rate) amount under paragraph (1) and the base div- the cause is just. We have seen that On page 88, between lines 17 and 18, insert: idend amount under paragraph (2), there with Qadhafi giving up his nuclear ‘‘(4) DOLLAR LIMITATION.— shall not be taken into account dividends re- weapons programs, Iran understanding ‘‘(A) IN GENERAL.—Notwithstanding para- ceived from any controlled foreign corpora- graph (1), the excess qualified foreign dis- tion created or organized under the laws of the serious consequences of their ac- tribution amount shall not exceed the lesser any possession of the United States. tion. of— Mr. BREAUX. Mr. President, this is a Let us be true to the cause. Let us ‘‘(i) the amount shown on the applicable fi- jobs bill. That is the title of the bill. ferret out those who committed these nancial statement as earnings permanently Presumably a jobs bill is intended to reinvested outside the United States, or reprehensible acts. Let us support the create jobs and hopefully is created to President going forth to the world, to ‘‘(ii) the excess (if any) of— ‘‘(I) the estimated aggregate qualified ex- create jobs in America. That is the leg- the Arab community, to say this is islation that is before us. It is abso- wrong. Let us continue to stay true to penditures of the corporation for taxable years ending in 2005, 2006, and 2007, over lutely essential that this legislation be the course, to understand that the lives ‘‘(II) the aggregate qualified expenditures adopted. that have been sacrificed have not been of the corporation for taxable years ending But one of the provisions in the legis- sacrificed in vain, that the world is in 2001, 2002, and 2003. lation gives me great concern. I offered safer today. It is safer with Saddam ‘‘(B) EARNINGS PERMANENTLY REINVESTED an amendment in the Finance Com- gone. It will be safer with peace and OUTSIDE THE UNITED STATES.— mittee. It was unanimously supported stability and democracy in the Middle ‘‘(i) IN GENERAL.—If an amount on an appli- by every single Democrat in the Fi- East. cable financial statement is shown as Fed- nance Committee and it lost by a par- I yield the floor. eral income taxes not required to be reserved by reason of the permanent reinvestment of tisan vote because our Republican col- f earnings outside the United States, subpara- leagues at that time did not feel they could support the amendment I offered. CONCLUSION OF MORNING graph (A)(i) shall be applied by reference to It was unanimously supported by every BUSINESS the earnings to which such taxes relate. ‘‘(ii) NO STATEMENT OR STATED AMOUNT.—If single Democrat member of the Fi- The PRESIDING OFFICER. Is there there is no applicable financial statement or nance Committee. any further morning business? If not, such a statement fails to show a specific The question deals with how we treat morning business is closed. amount described in subparagraph (A)(i) or companies that have earnings they clause (i), such amount shall be treated as f have stashed away in foreign countries. being zero. These amounts of money, many of JUMPSTART OUR BUSINESS ‘‘(iii) APPLICABLE FINANCIAL STATEMENT.— them, are in fact earned overseas. Com- STRENGTH (JOBS) ACT For purposes of this paragraph, the term ‘applicable financial statement’ means the most panies know if they bring those earn- The PRESIDING OFFICER. Under recently audited financial statement (includ- ings back to the United States, the the previous order, the Senate will re- ing notes and other documents which accom- United States, on a worldwide tax sume consideration of S. 1637, which pany such statement)— basis, will tax those earnings with a de- the clerk will report. ‘‘(I) which is certified on or before March duction for the amount of tax they The assistant legislative clerk read 31, 2004, as being prepared in accordance with have paid in the country in which they as follows: generally accepted accounting principles, earned those revenues. They pay the and regular corporate rate minus the tax A bill (S. 1637) to amend the Internal Rev- ‘‘(II) which is used for the purposes of a enue Code of 1986 to comply with the World statement or report to creditors, to share- credit they get for having paid taxes on Trade Organization findings on the FSC/ETI holders, or for any other substantial nontax those earnings in the foreign country. benefit in a manner that preserves jobs and purpose. However, there is no tax consequence production activities in the United States, to In the case of a corporation required to file to those companies if the money in fact reform and simplify the international tax- stays in the foreign country. That is ation rules of the United States, and for a financial statement with the Securities other purposes. and Exchange Commission, such term means called deferral. We defer any U.S. tax the most recent such statement filed on or on foreign earnings as long as the earn- Pending: before March 31, 2004. ings stay in the foreign country in Dorgan amendment No. 3110, to provide for ‘‘(C) QUALIFIED EXPENDITURES.—For pur- which they are earned. the taxation of income of controlled foreign poses of this paragraph, the term ‘qualified The legislation before this body now corporations attributable to imported prop- expenditures’ means— says we are going to give a very special erty. ‘‘(i) wages (as defined in section 3121(a)), Graham (FL) amendment No. 3112, to ‘‘(ii) additions to capital accounts for prop- break to U.S. companies that have strike the deduction relating to income at- erty located within the United States (in- money overseas, in many cases in tax tributable to United States production ac- cluding any amount which would be so added havens. We are going to let you bring tivities and the international tax provisions but for a provision of this title providing for that money back, not as other compa- and allow a credit for manufacturing wages. the expensing of such amount), nies in the past have brought it back,

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.022 S05PT1 S4862 CONGRESSIONAL RECORD — SENATE May 5, 2004 paying U.S. tax minus what they paid poses, but we would like some proof. wage limit of $87,900—and fully funding overseas, but we are going to cut you a We know it by seeing you have actu- employee retirement plans. special sweetheart deal. We are going ally spent more in the next 3 years in Why is it necessary to be so specific? to give you a sweetheart deal of an 85- these areas than in the previous 3 It is necessary because J.P. Morgan, percent tax credit by reducing the years. That is very important. which has conducted a survey of com- amount of taxes you would pay if you Here is an interesting statistic from panies that would repatriate money, bring it back to the United States—not the Joint Committee on Tax. Where is determined that most corporations will to pay what every other corporation the money like this coming from? reuse the repatriated profits for buying pays, 35 percent—we are going to ask From tax havens: Bermuda, Cayman Is- back debt, for increasing levels of liq- you to pay 5 percent, 5.25 percent. That lands, Hong Kong, Ireland, Luxem- uid assets, or even retiring equity. This is an 85-percent tax reward to compa- bourg, Switzerland. How much money is what a study of the very companies nies that have stashed money in tax are we going to let flow into the United that are involved have shown. None of havens, in many cases overseas, for the States at a 5-percent rate when it these items necessarily produces new sole purpose of avoiding U.S. taxation. should come in at the regular cor- jobs. The IRS has recently cited a number porate rate minus what they pay in the One of the things the Senate, as well of companies that have these types of foreign country? as Americans, should understand is tax shelters and overseas tax havens, Our legislation, the Breaux-Feinstein that there are a large number of Amer- such as in The Netherlands, Barbados, amendment, is about responsibility and ican companies that take advantage of the Cayman Islands and Bermuda—you accountability, about creating jobs in loopholes in U.S. tax law and pay no name the tax havens. Companies that this country, not stock buybacks that taxes. I recently took a look at a GAO earn money in one country will bring it enrich a few at the expense of jobs in study entitled ‘‘Comparison of the Re- over to a tax haven and keep it there, this country. ported Tax Liabilities of Foreign and avoiding U.S. taxes. But some now say There is a legitimate argument we United States Controlled Corpora- that is such a great idea, we are going ought to look at the whole tax system tions.’’ It covers the period from 1996 to to give them a real tax break and ask and see whether we should go to a ter- 2000. Let me give you an idea of what them to please bring it back over to ritorial system or not, but that is not they find: 61 percent of U.S.-controlled the United States. If you do so, we are before the Senate at this time. corporations pay no taxes; 71 percent of only going to tax you at about a 5-per- This legislation is absolutely essen- foreign-owned corporations operating cent rate. tial if we are going to maintain any in the United States reported no tax li- That is what the legislation says. credibility on creating jobs instead of ability from 1996 to 2000. The legislation says bring it back, you enforcing or creating tax havens. We This is stunning. I had no idea. So I get a huge tax reward for keeping have enough tax havens. We should not began to look a little bit at the his- money overseas and now bringing it encourage more. This amendment helps tory. Let me tell you a little bit about back to the United States, unlike what stop that. what it was like in 1945. In 1945, income other companies have had to do. How much time remains? taxes from corporations accounted for Every person we have talked to says The PRESIDING OFFICER. There 35 percent of Federal receipts. In 1970, we are going to bring it back to create are 23 minutes. these income taxes accounted for only jobs. I say, All right, if that is what Mr. BREAUX. We have an hour 17 percent of Federal revenue. So be- you are going to do, bring it back to equally divided? tween 1945 and 1970 there was a dra- create jobs in the United States of The PRESIDING OFFICER. Exactly. matic decline. Today, corporate in- America, we will let you do the 5-per- Mr. BREAUX. I yield 10 minutes to come taxes account for only 7.8 percent cent tax break. We will allow you to do the distinguished Senator, the cospon- of Federal revenues. it. sor of the amendment. We are giving companies that have My amendment simply says two The PRESIDING OFFICER. The Sen- sequestered profits abroad the ability things are different from the bill before ator from California is recognized. to bring those profits back at one-half the Senate. No. 1, it says you can bring Mrs. FEINSTEIN. Mr. President, I the tax rate the poorest American it back for job creation, for hiring will try and be brief. I thank the Sen- pays, and we have a specific study that more people. If you want to use it for ator from Louisiana for his leadership shows that for the most part, these cor- that purpose, OK. If you want to use it on this, particularly since this is the porations will not use these moneys for for research and development—phar- last year that he will be in the Senate. areas that produce jobs. maceutical industry or other elec- I have had the great privilege of work- What Senator BREAUX and I have tronic types of industry—OK, we will ing with him now for 12 years on the tried to do is to narrow the language let you use it for that. If you want to centrist coalition and in other endeav- that describes what companies may use it for capital expending, you want ors. He has always strived to bring par- spend repatriated profits on. We have to build another plant, OK, we will let ties together and to work across the narrowed the language to specific you use it for that. If you want to use aisle. Frankly, it is something that I spending categories—categories which it for your underfunded pension funds, admire and I want him to know that. produce jobs. I don’t think that is too OK, we will let you use it for that. The underlying bill, as I understand much to ask. But we will not let you use it for it, allows companies to bring foreign- How much will be repatriated? There something as nebulous as financial sta- earned profits back at a greatly re- are various estimates. J.P. Morgan es- bilization of the company, which is in duced rate. The Senator from Lou- timates $300 billion be repatriated. The the bill but not defined. What does that isiana spelled that out. That is a rate U.S. Treasury estimates it will be be- mean? Buy another Gulfstream? Yes, of 5.25 percent. Remember, the min- tween $200 and $300 billion. The Home- that might financially stabilize the imum income tax bracket for individ- land Investment Act Coalition, a coali- company. Stock buybacks? Yes, that uals in this country is 10 percent. So it tion of major corporations, estimates might be a good idea for a few people, is at a rate half of what the poorest $500 billion will come back to the but it does not create a lot of jobs, if Americans pay in Federal income United States. any. taxes. Without this amendment, it is likely Second, there has to be an enforce- Under this amendment, companies that corporations will take advantage ment mechanism, more than filing a could bring foreign-earned profits back of the reduced corporation tax rate and plan; and there is no responsibility if to the U.S. at this reduced rate pro- use the repatriated profits to shore up you do not follow it. vided these repatriated profits promote their finances. The items I have read My amendment says: All right, com- job growth and benefit employees. from the J.P. Morgan study indicate panies, if you bring it back for those Our amendment is specific. It allows just that. I will summarize the section purposes, we want proof you actually for spending on R&D, acquiring plants of this J.P. Morgan study. use it for those purposes. You can use and equipment, deducting increases in These were 28 firms in the study. the next 3 years to take these billions wages or the cost of creating a new They indicated that 46 percent of them of dollars and use it for legitimate pur- job—capped at the Social Security would pay down outstanding debt with

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.024 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4863 the money, 39 percent would finance Specifically excluded by this legisla- there any provision in the bill that capital spending, 39 percent would fund tion is executive compensation. Execu- says what will happen to the company R&D venture capital or acquisition, 18 tive compensation cannot be the tar- that does not abide by the plan? I be- percent would buy back stock, 11 per- get; but plant and equipment, shoring lieve in trust but verify. If you don’t do cent would use cash for working cap- up pension plans, buying back stock, what you say you are going to do, you ital, 11 percent might pay dividends if these kinds of things that improve the should have consequences. Is there double taxation ends, and 4 percent values of corporations and their com- anything in the bill that says they would fund underfunded pension funds. petitiveness are exactly what we ought would lose their deduction? I have been told many of these com- to be doing if we are actually inter- Mr. SMITH. I don’t think there is a panies would like to use the money for ested in creating jobs. penalty, I say to the Senator. I am mergers and acquisitions, which very I think it is also very important to happy to admit that because, frankly, I clearly could result in a reduction in point out that our American companies believe what companies are trying to jobs. I would not like to see this Senate that compete overseas are competing do is get their money back here on a have egg on its face by giving some of against German and French and other basis that allows them to be competi- the largest and most profitable cor- companies in those countries that also tive with other multinational compa- porations in America the ability to re- have foreign earnings. In these coun- nies from other countries. I think what patriate funds at one-half the tax rate tries—competitor countries—they they are interested in doing is a return the poorest Americans pay and have allow their earnings abroad to have on investment to their investors. When those funds used for mergers and acqui- what they call a free walk back. We are they give a return on investment to sitions which would result in employ- not allowing them a free walk back. We their investors, what they are also ees being fired for so-called efficiency are saying, for 1 year, the corporate doing is creating jobs. They are invest- reasons. I think without this language tax rate will fall from 35 percent to 5.25 ing in plant and equipment. And I, for that narrows the use of this money, percent. The effect will be immediate. one, do not think it is in the interest of that is exactly what could happen. It will be beneficial. It will help our this country to micromanage the Tax So I thank the Senator from Lou- economy. It will create jobs. But, Code any more than we already do. isiana for his leadership. I want to indi- moreover, it will, for 1 year, create a So, Mr. President, with that, I will cate my strong support for this amend- level playing field for American cor- turn the time to my colleague from ment. I hope Members will vote for this porations as against German or French California. amendment. or Japanese corporations whose coun- The PRESIDING OFFICER. The Sen- Mr. President, I yield back the re- tries have tax codes that allow them to ator from California. mainder of my time to the Senator take their foreign earnings back to Mrs. BOXER. Mr. President, I ask the from Louisiana. Senator, may I have 10 minutes? The PRESIDING OFFICER. The Sen- their native lands to be put into their local economies, to strengthen them Mr. SMITH. Yes, you may. ator from Oregon. Mrs. BOXER. I thank the Senator. Mr. SMITH. Mr. President, I believe when they need the strength. Right now, our economy could use Mr. President, first of all, let’s get on our side we have 30 minutes; is that matters straight from the get-go. Sen- correct? $400 billion. If our deficit could be re- ator BREAUX never liked this in the The PRESIDING OFFICER. That is duced by $75 billion, that would be first place. And I have tremendous re- correct. wonderful. If we could create 660,000 Mr. SMITH. Mr. President, I am jobs on a short-term basis—we hope spect for him. We just do not agree on going to speak for hopefully less than 5 that money then stays here—then we this tax provision. As a matter of fact, minutes and then allow my colleague have done a tremendous thing for the he voted to strip it out completely from California to speak. Senator EN- American worker and the American when actually we tried—Senator EN- SIGN and, I believe, Senator ALLEN may economy, and we have done it in a way SIGN and I—to get this in before. We wish to speak to this as well. that does not try to micromanage won this 75–25. Only 25 colleagues voted Mr. President, this is ultimately every business decision made in the against us. Senator BREAUX was lead- about whether we want the dollars of corporate boardrooms of America. ing the charge. these American multinational corpora- Mr. BREAUX. Will the Senator from Now he says he is just making a cor- tions to be brought back to America or Oregon yield for a question? rection. Well, I have read his correc- left in places like this. We can either Mr. SMITH. I am happy to yield for a tion. It is a poison pill for many rea- put these dollars to work here or we question. sons, which I will go into. But I think can leave them over there. Mr. BREAUX. Mr. President, would we ought to get it straight. We are If you are interested in creating jobs, the Senator point out anything in the being offered an amendment and told it I think it is important to remind folks legislation before this body now that is enhancing our bill, but it is offered what we are talking about is a min- would take any action against any by Senator BREAUX, who never liked it imum of $400 billion coming back into companies if they did not abide by in the first place. I think he would be this country within the 1-year window what they said they were going to use the first one to admit it because he was that is allowed by this legislation. It it for? Do they lose their tax deduc- quite open on the point before. has been estimated, on a conservative tion? Is there anything in the legisla- Now, I am proud to stand with my basis, that it will create 660,000 jobs. It tion, without my amendment, that colleagues today to stop this amend- will reduce the Federal deficit, over would say what would happen to comment. I think it is very important. I the next 5 years, by $75 billion. If ever panies if they use it for something to- am going to call on the 75 Senators there were a win-win, this amendment tally different from what their plans from both sides of the aisle who sup- on the JOBS bill is a win-win. say they are going to use it for? ported us the last time. I particularly As I listen to my colleagues, both of Suppose they decided to use it for thank Senator SMITH because he took whom I esteem as friends, I am as- something totally unrelated to job cre- the Ensign-Boxer bill into the com- tounded so much emphasis is put into ation. Is there anything, without my mittee and he got it into this bill, the dislike of business and what they amendment, that says what would hap- which was most important for us. Now might do with this money. I, frankly, pen to those companies? we are here to protect that work. have to wonder what is wrong with Mr. SMITH. The Senator, I guess, I will say this from the get-go. You companies bringing money back here does not trust they will use it for what could say all you want that we are and being allowed to shore up the they say they will use it for. building trust into this. Well, there is a strength of their business. What is Mr. BREAUX. Trust but verify. little more than trust. We are not say- wrong with that? That is exactly what Mr. SMITH. I believe when they es- ing in this bill anywhere that I have we want them to do. I do not believe, tablish a plan and get the approval for seen that the IRS cannot prosecute as a former businessman myself, that their plan they will follow through on someone who is not telling the truth. it is in this country’s interest to that. This is not some plan that is done in micromanage how they will reinvest it Mr. BREAUX. Suppose you have the dead of night at the accountant’s in this country. somebody who may not do that. Is office. There is a committee that has

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.026 S05PT1 S4864 CONGRESSIONAL RECORD — SENATE May 5, 2004 to put together the plan and they have you can’t reimburse for the rental of minutes to Senator ALLEN and, if I to show how they plan to use the funds. parking spaces for your employees. could, have 30 seconds to wrap up. If they lie in that, under an audit, as Here we have an amendment that we Mr. BREAUX. How much time do I any of us might have, they have to have crafted that is actually a bill that have remaining? show that in fact they deserve the de- is incorporated into the underlying The PRESIDING OFFICER. Fourteen duction. If the IRS says, no, they did bill, which gives the business commu- minutes 44 seconds. not follow the plan, then they will not nity a chance for 1 year to bring these Mr. BREAUX. Are we going to ro- get those deductions, just like all of us. funds home that are parked outside our tate? Are we just going to hear one There is nothing in our bill that ab- shores, funds that are sitting out there side? solves these corporations of the usual and not being brought back. We are Mr. SMITH. It would be fine with us procedure when you pay your taxes. So going to see what happens. We are told to let the Senator speak. Mr. BREAUX. Mr. President, I will I would like to get that out of the way. by economists from the left to the take 2 minutes off the time. I want to talk about jobs, because, right it is going to mean job creation. I wonder if anybody in this body re- God knows, in my State we have lost a We want to make sure it is used for the members Enron. Let’s trust that they lot. I want to put up what the various things that these corporations need. are going to do right. They are a U.S. experts are saying, from liberal to con- Instead, you have the Breaux amend- corporation that created more tax shel- servative, about this Invest in the USA ment which is micromanaging this deal ters than the IRS could count. It took Act that I am so proud to coauthor in such a way that it will affect things a group of Philadelphia lawyers 2 with my friend, Senator ENSIGN. as important as job training for work- months to even add up the number of What is the potential impact on the ers. Let’s just say a business is chang- tax shelters they had around the world. U.S. economy? J.P. Morgan says, as a ing its work product and they have a They had so many the IRS couldn’t result of enacting the Invest in the new way to deal with their workers. even follow it. USA Act, U.S. companies will increase They have to teach them how to use If you are going to give people who investment profits earned abroad in new computers and new programming, have tax shelters and a stash in income the United States by $300 billion. Bank machinery. They cannot use the money in foreign tax havens a huge benefit to of America forecasts the increase will they bring back to job train. bring the money back into this coun- be $400 billion. Dr. Allen Sinai of Deci- Senator FEINSTEIN called this a per- try, we ought to make sure they are sion Economics estimates that this ad- fecting amendment. It is not per- going to use it for job creation. With- ditional investment in the U.S. econ- fecting. It is a poison pill. out my amendment, they have to file a omy will generate 660,000 jobs. I am very proud to be part of this plan that says this is what they are Finally, we are doing something. The group in the Senate that has been going to spend it on. Suppose they highway bill is stalled. A lot of us are pushing for this for all this time. Any don’t spend one nickel more than they upset about that on both sides of the statement that we are not going to go did last year on job creation. Suppose aisle. That will create 800,000 jobs. after cheaters is ridiculous because we they don’t spend one nickel more on Here we will create 660,000 jobs, and have highlighted in our bill the fact capital expenditures than they did last Allen Sinai says that is a conservative that the company has to set up a com- year. Suppose they don’t spend one estimate of how many jobs would be mittee. They have to print a plan. more nickel on pensions for the work- created. And guess what. The Treasury They have to say how they are spend- ers than they did last year, but they is getting money because these profits ing their money. And if they undergo comply with what they said they were are sitting abroad. They are not com- an audit, they are going to have to going to do in their little plan. They ing home. They are not being taxed. stand behind it. are fine. They don’t have to spend one And we are going to tax them at a 5- The question is whether you want ac- nickel more under the committee bill, percent rate, and that is going to bring cumulated foreign earnings invested with all this money they are going to funds into the Treasury. There are here or abroad. The answer that we get bring back at a 5-percent tax rate, in some estimates that we will receive as from our colleagues is going to be very terms of creating jobs than they did be- much as $4 billion into the Treasury important. We can send a wonderful fore. because of this Invest in the USA Act. message today if we stand with this un- The Breaux-Feinstein amendment So how could we take such a good derlying language that we are serious says: If you want to bring it back for idea and mess it up? That is what we about job creation. We are serious that purpose, you have to show us that would do if this amendment passes. We about getting this capital back. I be- is what you are using it for. That, in know those funds are not going to be lieve we are doing a very wise thing. fact, you have spent more money in the brought back. I yield the rest of my time to the next 3 years than you would have the Under the Breaux amendment, let me Senator from Oregon, Mr. SMITH. previous year on job creation. That is read to you examples of spending that Mr. SMITH. Mr. President, I empha- not too much to ask. is not permitted, and you tell me if you size the point that Senator BOXER When we are giving a multinational agree with this. made in answering Senator BREAUX. corporation an enormous tax gift of You cannot use the money that you We did not include special penalties in having to pay not 35 percent but only 5 bring back for job training for workers. this bill, but the truth is, when you file percent, at least get a requirement You cannot use it for many unemploy- your tax returns, you have to own up that they are using it for something to ment benefits. You cannot use it for to what the plan is. You have to live up do with job creation and that they worker health, dental and hospital ex- to that. If you don’t, you lose the de- spend at least something more than penses. You cannot use it for most em- duction. they did the year before. Without the ployee childcare. You cannot use it to Can the IRS impose other penalties? Breaux-Feinstein amendment, there is reimburse employees for injuries and Of course it can. But it then has to no requirement that they spend one accidents. You cannot use it for work- make the case against the person. nickel more on job creation than they ers compensation and black lung bene- When people file their tax returns, they did previously after bringing this fits. You cannot use it for most em- know they are shooting with real bul- money back. ployee meals and lodging. You cannot lets on this stuff. Guess what. You talk about an incen- use it for worker relocation reimburse- I have every confidence that people tive to locate overseas. There will be a ment. You cannot use it for employee will be honest about this and utilize whole group of people saying: We did it tuition assistance. You cannot use it the revenues for the purposes intended for 1 year. Let’s do it next year, a third for an environmental cleanup and im- in creating jobs. year; let’s continue this. How about pact analysis. You cannot use it for Mr. President, how much time re- making this 5 percent permanent so we employee travel reimbursement. mains? can put all the jobs overseas, knowing You can buy jets with it under the The PRESIDING OFFICER. Fourteen Congress is going to take care of us Breaux amendment, but you can’t use minutes 45 seconds. every time there is a downturn in the it for employee travel reimbursements. Mr. SMITH. I would like to yield 9 economy and there is another amend- You can buy limousines with it, but minutes to Senator ENSIGN and 4 or 5 ment to extend the 5-percent tax break

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.029 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4865 1 more year. We will just move every- Whereas, if you do not change this law, creation or research and development thing over to the Caymen Islands. We that money will stay overseas. in order to get this huge break. They will move everything ever over to a J.P. Morgan economists talked about can spend exactly what they spent last Third World country. Because, guess job creation—660,000 new jobs created, year—no requirement, zip, zero. Yet we what, Congress is going to let us bring $75 billion in debt reduction, and an in- are going to give them one of the big- it back at 5 percent because the pres- crease in capital spending of up to $78 gest tax breaks. sure will be there, because the econ- billion, by bringing approximately $300 We already passed tax cuts of $3 tril- omy is not doing well, and all the jobs billion in foreign earnings back into lion for job creation. Are we much bet- go overseas. The only thing the this country. ter off today after all of that, some of Breaux-Feinstein amendment says is, if The Breaux amendment has several which I supported? That is a debatable you are going to bring it back for job problems. One, it is a poison pill—as issue. Let’s not make the same mis- creation, prove it, tell us you spent a was said by other speakers—limiting take and say we are going to give them little bit more than you would have or- benefits in such a way that it makes it an 85-percent tax cut if they are doing dinarily. Without Breaux-Feinstein, impracticable. Two, it requires that business overseas and if they bring there is no requirement that they money be spent for narrow purposes some of that money back and spend it spend one nickel more than they did only; third, it requires companies to on job creation. And by the way, there before. That is a big difference in what spend it in 3 years; fourth, it excludes is no requirement that you do anything we are trying to accomplish. amounts brought back from Puerto more than you did last year. What kind I reserve the remainder of my time. Rico and other possessions. That last of nonsense is that, as far as trying to The PRESIDING OFFICER. The Sen- one would treat Puerto Rico and our create more jobs in this country, in- ator from Virginia is recognized. possessions worse than investments stead of providing a huge incentive to Mr. ALLEN. Mr. President, I rise made in the rest of the world. locate overseas, bring workers over- today to join with Senators SMITH, EN- Senator BOXER brought up examples seas, and we are going to have Congress SIGN, and BOXER in opposition to the of what would not be permitted with let us bring it all back at 5 percent? Breaux-Feinstein amendment. In the the Breaux amendment. In addition to How unfair is that to the people who midst of this JOBS bill, we are trying the job training, they could not spend play by the rules, to other companies to make sure manufacturers in this it on job training to upgrade the skills who do business and hire people in this country can compete internationally. I and capabilities and productivity of country. am one who is always arguing, whether their workers in the United States. There is no requirement, without the it is tax policy, regulatory policy, our They could not fund startup busi- Breaux-Feinstein amendment, that laws in the United States ought to nesses. Why would we not want them companies that bring this money back make America more desirable and con- to fund startup businesses? Why would at a 5-percent rate spend one dime ducive toward investment and job cre- we want to prohibit the injection of more than they have in the past on the ation. new capital into cash-starved projects? creation of jobs. They can spend what The underlying provision—the idea of Mr. President, the point is that the they spent last year. In fact, they can repatriation or reinvesting in the amendment would limit the job cre- spend less than they spent last year. United States helps make the United ation incentive and, unfortunately, not The only thing they have to show is States more conducive and more at- have the full potential to make this they have a plan—no enforcement, tractive for investment and jobs. Let’s country more desirable for jobs and in- nothing. use some common sense. If you are a vestment. I respectfully urge my col- The Senator from Nevada has a sign company that does business overseas, leagues to defeat the Breaux amend- up that says 660,000 jobs. Suppose they and you have profits overseas, what- ment, support Senator SMITH in his ef- decide not to create one more job than ever country you are in you are going forts, and those of Senator ENSIGN and they did last year. They will still get to have to pay taxes. If you bring that others, who have fought gallantly and the 5-percent tax break. There is no re- money back into this country, you are wisely for more jobs and investment in quirement that they create six jobs. If going to be paying 35 percent in taxes. the United States of America. they created six last year, they can do You are going to pay one way or an- I yield the floor. that this year. They only have to show other, whether to that country or to Mr. BREAUX. Mr. President, how that the money is used for job creation. the United States. much time remains? However, if you take those profits The PRESIDING OFFICER. There They can take all the money they and keep investing them in China, in are 11 minutes 47 seconds. spent on capital expenditures last year South Korea, in Malaysia, or in the Mr. BREAUX. I thank the Chair. I and not spend any of it next year. They Philippines, or wherever else it may be, will take 2 additional minutes. can just use this overseas money and you are going to continue investing Again, I don’t have any basic argu- not do one thing more than they did them over there if you are going to be ment with those who say we ought to the year before. There is no enforce- subjected to this 35-percent tax. let the money come back that has been ment that they do what the plan says. The idea is, for 1 year, reduce that sitting in tax savings into this coun- There is no penalty if they don’t. They tax burden to 5.25 percent, bring those try. I will even go along with saying don’t lose their tax deduction. They profits back into this country, invest you can bring it back at 5 percent, if still get it and they do not have to them in the United States in a variety you are going to use it for job creation spend one nickel more in any category of ways that actually helps your busi- or research and development, for cap- without the Breaux-Feinstein amend- ness; thus, it creates more jobs. This is ital expenditures. And If you are going ment. a law that I certainly think ought to to use it to rebuild your pension fund We say: Look what you did in the be passed, not diminished or micro- for workers, OK, let’s do it for 1 year at last 3 years, and what you are going to managed or pestered with this amend- 5 percent. But, by gosh, can’t we at do in the future 3 years, and see if you ment. least have some standards to be able to did more than you did in the past. If Studies, for example, by the Joint enforce it? you did, you get the 5-percent break. Committee on Taxation have deter- Under the committee bill, without But, by golly, if you don’t, you don’t mined that the provision we are sup- the Breaux-Feinstein amendment, get it. I think that is fair. I withhold porting in the bill would inject ap- there is no obligation that they spend the remainder of my time. proximately $135 billion into our econ- one nickel more on job creation than The PRESIDING OFFICER. The Sen- omy for jobs, capital, investment, and they did last year or the year before. ator from Nevada is recognized. economic growth. The Joint Com- The only thing they have to do is say, Mr. ENSIGN. Mr. President, I want mittee on Taxation also said it would if last year we spent $10 billion on cap- to first talk about the underlying legis- bring in an additional $4 billion in tax ital expenditures, guess what. We will lation and then talk about the Breaux- revenues to the U.S. Treasury. Of spend $10 billion this year. They don’t Feinstein amendment. course, the profits are coming back; have to spend one nickel, one penny Allen Sinai is one of the most re- therefore, they are going to be taxed. more on capital expenditures or job spected economists in the United

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.032 S05PT1 S4866 CONGRESSIONAL RECORD — SENATE May 5, 2004 States—not a Republican or a Demo- tries with which we deal and compete. the extra boost the U.S. job market cratic economist—a bipartisan econo- The United States has the highest cor- needs. mist. These 660,000 jobs he said this un- porate tax rate of any of the coun- These are the items not allowed derlying bill will create is based on our tries—Korea, Indonesia, Japan, EU, av- under the Breaux amendment when it language. He is not saying what Sen- erage, Ireland, 12.5 percent. That comes back: debt reduction I just ator BREAUX just said, that they are makes a little more sense in terms of talked about, job training, and tuition not guaranteed to bring the jobs back. why they are competing a little better reimbursement, better health care ben- He is doing an independent analysis than we are. efits for workers, childcare for employ- based on the money coming back into In fact, in Ireland, they call it the ees getting back to work, and mate- the United States and based on that de- Celtic Tiger because their success has rials for new manufacturing. termining how many jobs it will cre- been so incredible as a result of low- There are a lot of items the money ate, and this is a very conservative ering their tax rates to attract capital. would not be allowed to be used for number. The money right stranded overseas under the Breaux amendment. This What else will this underlying bill now will not come back in the United really is a poison pill. The companies do? It will reduce the deficit, according States without our bill. That is the are telling us if the Breaux-Feinstein to his study, also by $75 billion over 5 bottom line. People say it is not fair to amendment is adopted, it basically years because of the economic stimulus allow the money to come back in at kills their incentive to bring the that will occur in the United States. lower tax rates than American compa- money back. The money that will come back—there nies are paying today in the United Let’s have some common sense here. have been studies—the first J.P. Mor- States. The bottom line is, fine, if it is If money is overseas and it is being in- gan study was around $300 billion. They not fair, then do we just want to leave vested over there because tax rates are have updated their numbers. It is ex- this money overseas? The money is not too high to bring it back to the U.S., pected to be around $500 billion. Allen going to come back to the United let’s lower the tax rates so the capital Sinai’s numbers, once again, an inde- States to create jobs without our bill. comes back to the United States to pendent economist, was based on the How do other countries treat this create jobs. That is the bottom line; it $300 billion figure. We heard $300 billion money that comes back into their will create jobs in the United States. It all the way up to $600 billion will come countries compared to what the United will make American business more back to the United States. That is States does currently? The United competitive in this global market- more money than all of the IPOs, ini- States is up to a 35-percent tax. place. tial public offerings, on the stock mar- France, Germany, Canada, Australia, If my colleagues are worried about ket from 1996 to 2002. That is a lot of the United Kingdom—zero, and they outsourcing, defeat the Breaux amend- economic activity. have no restrictions on how the money ment and keep the provision in the bill. We hear a lot today about can be spent. It just comes back and The Invest in the USA Act is a great outsourcing. Lou Dobbs talks about it gets reinvested in their countries. That piece of legislation. That is why on the almost every night—outsourcing, is why we are saying let’s bring it back floor of the Senate last year it received outsourcing, outsourcing. This bill is within that 1-year period of time, and 75 votes to 25 votes against it. With 75 insourcing. This insources jobs to the we will charge you 5.25 percent, which votes, in a bipartisan manner, we United States. Mr. President, $500 bil- is still higher than all of these coun- adopted our bill last year. We need to lion will create a lot of jobs in the tries. The companies want to bring keep this provision intact in the under- United States. that money back to invest in the lying bill. Here is the language, by the way, United States. I encourage all Senators who voted Senator BREAUX is talking about in our By the way, paying down debt is not last year with us to stay with us on bill when he says there really is not allowed under the Breaux-Feinstein this point and defeat the poison pill of any kind of enforcement mechanism: amendment. If you are a company and the Breaux-Feinstein amendment. . . . described in domestic reinvestment plan you are burdened with debt and now I reserve the remainder of our time. approved by the taxpayers, president, CEO or you have to lay off people, doesn’t it Mr. BREAUX. Mr. President, how comparable official before the payment of make sense to allow them to pay the much time do we have? such dividends and subsequently approved by debt down instead of laying off people? The PRESIDING OFFICER. Eight the taxpayers board of directors, manage- That just makes common sense to any- minutes four seconds. ment committee, executive committee, or body who has ever been in business. If Mr. BREAUX. I yield myself 3 min- similar body, which plan shall provide for you are in tough financial times, hav- utes. the reinvestment of such dividends in the It is interesting that they said Lou- United States, including as a source of funding money from overseas come back ing of worker hiring and training, infrastruc- and reducing your balance sheet debt isiana would gain 10,000 jobs if this ture, research and development, capital infor the companies located in the United passed. We probably lost 50,000 jobs vestments or for the financial stabilization States makes sense. It makes them with people moving overseas. So with of the corporation for purposes of job reten- more financially solvent. this legislation, we are still 40,000 jobs tion or creation. Mr. SMITH. Mr. President, will the short. Why is that language important in Senator yield for a question? What we are doing in this legislation our bill and how is that enforced Mr. ENSIGN. Yes, I will yield. is rewarding companies that operate today? We are in a post-Enron environ- Mr. SMITH. Mr. President, we talk overseas. We say, if you operate over- ment. The markets look at the govern- about 660,000 jobs for the whole coun- seas and you hire foreign workers in ance of corporations. The IRS certainly try. Isn’t it also true that California foreign countries and put your money looks at it. With Sarbanes-Oxley on the stands to gain 75,000 new jobs, and Lou- in a tax haven, somehow that is good books, CEOs are very sensitive to com- isiana stands to gain nearly 10,000 new policy, and we are going to let you plying with federal laws such as this. jobs; Nevada, over 5,000 new jobs; Or- take those earnings and only pay 5-per- Companies are required to develop a egon, nearly 30,000 jobs; and Virginia, cent tax on that. What kind of logic is plan, and they have to stick with the nearly 14,000 new jobs that can be cre- that? That is a huge incentive to con- plan, otherwise the stock markets will ated in a very short period of time. tinue to hire workers overseas knowing punish their stocks if they are not Doesn’t it really go to our individual Congress is going to let you bring earn- doing this. That is one of the ways the States to show just how dramatic a ings back, not at 35 percent, which markets actually enforce what is going benefit this brings to America and our every other company that hires U.S. on. States? workers in my State or any other I want to point out some of the other Mr. ENSIGN. Mr. President, I say to State has to pay. No, if you do it over- items that other countries do on a the Senator, I think those are very seas, you are only going to have to pay comparative basis. These are just cor- conservative estimates at a time when 5 percent if you give us a plan that porate tax rate comparisons. The we are talking about jobs. The rest of tells us you will use the money for the United States has the highest of all of the economy is doing well, and the job financial stabilization of the corpora- these countries, and these are coun- numbers are picking up. This can be tion, whatever the heck that means.

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.035 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4867 If we are going to create so many chance for corporations that have Without the Breaux-Feinstein jobs and if we are going to reduce the parked their foreign earnings abroad, amendment, they do not have to create deficit, when you look at this and score and that have no intention of bringing one single additional job more than it impartially, why does the Joint them back, to bring it back at a lower they did in previous years. We have an Committee on Taxation say this is tax rate. It would infuse our Treasury enforcement mechanism that says: going to cost the Treasury $3.7 billion? with about $4 billion in revenue, and Look, if they do not spend it for what If we are going to create so many more Allen Sinai, a respected economist, they say they are going to spend it, jobs and so many more people are says it will create 660,000 jobs. then they are not going to get the tax going to pay taxes, why does this pro- The PRESIDING OFFICER. The Sen- break. They are going to have to give vision in the current bill cost the U.S. ator’s time has expired. it back. They are going to have to be taxpayers $3.7 billion? That is the score Mrs. BOXER. I hope we will vote treated as any other company that from the Joint Committee on Taxation against the Breaux-Feinstein amend- does business in this country. when they looked at this provision. It ment and once and for all make this They call this a poison pill. I think it is not going to reduce the deficit. It is important bill the law of the land. is more a vitamin pill to a deficient going to cost the taxpayers almost $4 Mr. BREAUX. Parliamentary in- bill to try and help improve it to give billion. quiry: What is the status on remaining it some strength, to give it some credi- When someone makes the point that time? bility, to say, yes, we agree, let’s do it the IRS will audit these companies, au- The PRESIDING OFFICER. Thirty- for this purpose, but please have a re- dits are down on corporate America by nine seconds for Senator SMITH and quirement that it is actually used for over 60 percent. They are doing 60 per- four minutes fifty-four seconds for Sen- that purpose. cent fewer corporate audits. One won- ator BREAUX. The legislation does not have that. ders why Enron got away with every- Mr. BREAUX. I will close on my The only thing they have to do is come thing? Because the Treasury does not amendment. up with a description, a domestic rein- have the wherewithal to do the audits The PRESIDING OFFICER. The Sen- vestment plan that does not require it they need. ator from Louisiana. be spent. It certainly does not require The principal argument I have with Mr. BREAUX. Mr. President, I close that they spend more in the future the Breaux-Feinstein amendment is on this amendment with the following than they did in the past. But if the simply this: If people say they are comments: In this legislation, we are corporations put what they are think- going to bring it back at a 5-percent giving U.S. companies that hire foreign ing about doing in a domestic invest- rate and they are going to use it to cre- workers in foreign countries and put- ment plan, then they are OK, but there ate more jobs, I say, OK, let them do it, ting their money that they earned in is no requirement that they spend a but let’s have some mechanism to en- tax savings the opportunity, the gift, nickel more than they did in the past. sure they really do create more jobs to bring back to this country those That is the real principle that we are than they created in the past. That is earnings and not pay what every other trying to address with the Breaux- all the Breaux-Feinstein amendment U.S. corporation pays in taxes but to Feinstein amendment. I think it makes really says. It says: Show us, Mr. Cor- give them an 85-percent tax cut be- sense. porate America, that, in fact, you are cause they operated overseas and hired It still allows money to come back, creating more jobs than you did before. foreign workers and made products in but it only requires that they, in fact, And if you did, fine, you are off the foreign countries. We are going to give use those dollars for what they said hook; you get a 5-percent tax rate, but them an 85-percent tax cut over cur- they were going to use them. If they do if you do not create any more than you rent law if they bring the money back that, if they create more jobs, do re- did in previous years or you create less, over here. search and development, make capital then something is wrong with this The argument is that somehow that expenditures, do things that they say proposition, and we are not going to let is going to create more jobs over here. they are going to do with it, let’s you pay only 5-percent taxes. But there is no requirement that a sin- please have some mechanism in the It is an enforcement mechanism. I gle additional job be created. They do legislation that really requires them to agree, use it for pensions, use it for re- not have to create one more job or do what they say they are going to do. search and development, use it for cap- spend one more dollar on research and The history of this country with re- ital expenditures, use it for job cre- development than they did last year gard to recent scandals in corporate ation, but please show us that it was under the current bill without the America show that we have to be vigi- used for that purpose. Breaux-Feinstein amendment. lant and diligent, and we have to have The PRESIDING OFFICER. The Sen- The Breaux-Feinstein amendment some pretty clear parameters about ator has used 3 minutes. seeks to install responsibility that what people can and cannot do. This Mr. BREAUX. I reserve the remain- says: All right, if corporations want to legislation, without the Breaux-Fein- der of my time. bring it back for those purposes, even stein amendment, falls short in that Mr. SMITH. The time remaining on though it is going to cost the taxpayer particular provision. our side is 1 minute 40 seconds? $3.7 billion—some people outside of I reserve the remainder of my time. The PRESIDING OFFICER. One Washington may think that is a lot of The PRESIDING OFFICER. The Sen- minute forty-eight seconds. money; I think it is a lot of money— ator from Oregon. Mr. SMITH. I yield 1 minute to the $3.7 billion is the cost of this legisla- Mr. SMITH. Mr. President, if Senator Senator from California, and I will use tion without the Breaux-Feinstein BREAUX were offering a perfecting the remainder. amendment. The bottom line is there is amendment, I would take it. But he is The PRESIDING OFFICER. The Sen- no guarantee that they will spend one offering a poisonous amendment. What ator from California is recognized for 1 dollar more on creating a job, capital his amendment would effectively do is minute. expenditures, or research and develop- limit the ways that these dollars can Mrs. BOXER. As we wind down this ment than they did last year. The be used in America to create American debate, I thank Senators SMITH, EN- Breaux-Feinstein amendment says, jobs. SIGN, and ALLEN. I think we have had a yes, corporations can do this and we The more it is limited, the more jobs good debate. I want to thank Senator will give them this huge tax break if will be limited. So if my colleagues BREAUX for his passion. My colleague, they spend more on job creation and vote for his amendment, they are vot- Senator FEINSTEIN, and I do not see create more jobs than they did in the ing against job creation in their State. this eye to eye. past. That is our only requirement, and The Senator says he wants a guar- Here is how I would sum it up: On that is not too much of a requirement. antee. My mother used to say the only May 15, 2003, the Senate voted 75 to 25 They already say that is what they guarantees in life are death and taxes. for the Ensign-Boxer-Smith Invest in are going to do. The only thing our What is in this bill are penalties to the the USA Act. It was a very clear state- amendment says is, yes, they have to Tax Code. If my colleagues want to ment that we want to see job creation. do that, and if they do not they are not make sure these things are spent the What we are proposing is a 1-year only going to get the break. way they are described, then these

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.037 S05PT1 S4868 CONGRESSIONAL RECORD — SENATE May 5, 2004 companies have to follow the plan they offer a second-degree amendment, that Our bill is long term, to deal with our lay out before the IRS. If they do not, will be easier. supply and manage our demand. That they lose the deduction and the pen- On the amendment of the Senator is the only responsible strategy. We alties attached in the Tax Code will at- from Florida, Mr. GRAHAM, he needs a need more domestic oil and more nat- tach to them as well. half hour himself on that amendment, ural gas production. The Energy bill I urge my colleagues to vote against which we understand. There may be a provides the open door for that to the Breaux-Feinstein amendment. This few others who wish to take some time. occur. We need alternative fuel bill is important to create American We could agree to 45 minutes, maybe, sources. The Energy bill promotes for jobs. to an hour, on our side. I doubt if the sources such as wind and solar. It pro- Mr. BREAUX. How much time re- full hour will be used. motes clean coal technology, and, yes, mains? So it is my understanding that the eventually, nuclear power. We need The PRESIDING OFFICER. Fifty leadership, when debate is completed this broader portfolio to reduce risks of seconds. on those amendments, would set a time overdependence on one source. The oc- Mr. BREAUX. Mr. President, we are for voting on all three amendments or cupant of the chair knows that as well saying if corporate America wants to maybe even four would be pending. as anyone. One source of energy is dis- get this huge tax gift, OK, let’s do it. That is where we are. I think it indi- aster for this great country. Natural But let’s make sure they use it for the cates we are moving on this bill fairly gas, as the sole energy to produce elec- right purpose. Let’s make sure they ac- rapidly. As Senator DASCHLE and I in- tricity, is a disaster. tually use it for job creation. Breaux- dicated this morning, on our side we Senator SCHUMER said: ‘‘Don’t think Feinstein simply says they have to are winding down our amendments. We there is nothing we can do about high show that they spend more in future have a few others that will be offered, oil prices.’’ years, the next year, and the next year not many. We hope the majority will He is right. He suggests remedies— than they did in the previous years in also make a decision in the near future stop filling the SPR. That is wrong. terms of job creation and doing what as to whether they want to finish this But I do agree we can do something they said they were going to do. bill. We want to finish this bill. We about oil, natural gas, and gasoline Without the Breaux-Feinstein hope the majority does also. prices. Changes to our Strategic Petro- amendment, the only thing a company Mr. SMITH. Point of clarification? leum Reserve, the SPR, are short term, has to do is file a plan. If they do not Mr. REID. Yes. shortsighted, and bad policy. follow the plan, well, too bad; they do Mr. SMITH. It was my understanding The SPR is a national security asset. not get audited, too bad. There is no that it was 70 minutes on the Dorgan It is there to serve for an emergency, requirement that more money is spent amendment and my request is that in an emergency situation, when there to create jobs, and we are talking that include the debate, equally di- is a severe energy disruption. It is not about a jobs bill that creates jobs in vided, on the Republican substitute? a price control mechanism. If we alter this country, I thought, not in a for- Mr. REID. It would include debate on the SPR practices, then we can assume eign country. the substitute? that OPEC will alter their production I do not think we can go back home Mr. SMITH. On what will be offered output. This leads to more volatility in to our constituents and say we are on this side. the market and a disastrous result. going to give corporate America an 85- Mr. REID. Mr. President, I, first, President Clinton tried to use SPR to percent break for money they earned didn’t ask unanimous consent that deal with high oil prices. He failed. overseas. If they want to bring it back that would be the case. During the Gasoline prices—believe this—dropped for job creation, OK, but let’s make time Senator DOMENICI is speaking, we by one penny. That is all, a single sure that is what it is used for. will take a look at that. I just wanted penny. Risking our national security The PRESIDING OFFICER. The Sen- to notify Senators what we were trying by depleting or playing around with ator’s time has expired. All time has to accomplish. Senator DORGAN is on the SPR got us a total impact of one expired. The amendment is set aside. the floor and we will make a decision. penny. The Senator from Nevada. Mr. SMITH. That is fine. I know we are all concerned about Mr. REID. I know the Senator from Mr. REID. I ask unanimous consent high gasoline prices. On average, gaso- New Mexico wishes to speak as in that Senator DOMENICI be recognized line demand in the United States is morning business for 5 minutes, and for 5 minutes as in morning business about 9 million barrels a day. That is certainly we would have no objection and sometime during the day the roughly 378 million gallons of gasoline to that. I just want to lay out for Mem- Democrats be allotted the same privi- a day. Some parts of the country are bers what is going to transpire in the lege, 5 minutes as in morning business. experiencing $2-a-gallon price, and oth- next few hours. The two managers are The PRESIDING OFFICER. Without ers have prices in the $1.70 range. necessarily absent this morning but objection, it is so ordered. According to the Energy Information they have instructed us what should be The Senator from New Mexico is rec- Administration, the national monthly done on this legislation. We have com- ognized. average regular gasoline pump prices pleted debate on the Breaux amend- ENERGY are expected to peak at about $1.87. ment. We are next going to move to the Mr. DOMENICI. Mr. President, I wish One of the reported reasons that we amendment that has been filed by the I could have come to the floor earlier hear for high gasoline prices is the high Senator from North Dakota, Mr. DOR- but sometimes you are surprised to oil price demanded by OPEC. In 2003, GAN. hear arguments that you never ex- we imported 42 percent of our total pe- Following that, unless the majority pected. All Senators on that side of the troleum imports from OPEC countries. decides they want to offer an amend- aisle who have come down here to rail Supplies from OPEC provides about 26 ment, we are going to finish debate on against President Bush about high gas- percent of our domestic crude oil. the Graham amendment, which is also oline prices need to take a look in the Senator WYDEN introduced a resolu- laid down. mirror and blame themselves. I have tion about OPEC. I agree with some We had an agreed-upon time on the been down here for months trying to points of his resolution. The resolution Dorgan amendment, but as a result of get a comprehensive energy bill passed says the President should commu- the fact that we have been told a Sen- that will promote a policy of greater nicate with members of OPEC and ator may offer a second-degree amend- energy security and independence. maintain strong relations. Of course, ment to his amendment, it would be Some of these very Senators are block- that is a given. We need to work to- difficult for us to agree to a limit on ing these efforts. gether in a cohesive fashion in our re- that. So debate will go forward on the The Energy bill is not a silver bullet lations with exporting countries and Dorgan amendment, and those who are to lower prices for gasoline or for nat- send a strong message that we want re- trying to determine whether they are ural gas. No such thing exists. There is liable supplies at fair prices. going to offer an amendment can do so no silver bullet. It is disingenuous for Senator WYDEN’s resolution also says and at that time perhaps we can work Democrats to imply that one exists. that Congress should take short-term out a time agreement. If they don’t They know better. and long-term approaches to reducing

VerDate May 04 2004 02:09 May 06, 2004 Jkt 029060 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.040 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4869 and stabilizing oil prices. If we pass the The PRESIDING OFFICER. Without incentivizes the movement of jobs Energy bill now, in the short term, objection, it is so ordered. overseas. If you look at this Tax Code, then in the long term we will see the The Senator from North Dakota. which itself is a Byzantine set of com- benefits of lower oil prices. Mr. DORGAN. Madam President, plexities, there is not a section that The last part of Senator WYDEN’s res- tempted as I am to respond to the last says: In this part of the Tax Code, this olution lists some things that can be comments just offered by the Senator chapter is entitled ‘‘Incentive for Send- done to lower oil prices. I particularly from New Mexico, I will refrain and do ing U.S. Jobs Overseas.’’ There is no agree that we consider lifting regula- that at a later time. Suffice it to say it such part of the Tax Code. There is no tions that interfere with the ability of provides little benefit to come to the chapter, title or provision that says the U.S. domestic oil and coal, hydro- Senate and say, they are responsible this is the benefit you get from sending electric, biomass, and other alternative for us not having an energy bill. We all jobs overseas. But that benefit does fuels to supply a greater percentage of understand why we do not have an en- exist in the Tax Code, and I intend to the energy needs of the United States. ergy bill. I was one who signed the con- describe how and why it exists. That is an excellent description of the ference report, worked on the bill, Mr. REID. Will the Senator yield? Energy bill pending before the Senate. voted for the bill in the Senate. We do Mr. DORGAN. I am happy to yield. Isn’t it interesting, instead of passing not have an energy bill because it Mr. REID. We now have agreement the bill, we recommend resolutions failed by two votes. It failed by two that we can have those two votes. I that do the same thing but the resolu- votes because the majority leader of have already indicated that following tion will not accomplish the same the other body insisted on a retro- the remarks of Senator DORGAN and thing. We all know that. active waiver for liability of MTBE. He Senator MIKULSKI, we would move to If Senator WYDEN is serious that he was told it would kill the bill, and it the Graham amendment No. 3112 and wants these things, he should be voting killed the bill. the time would be equally divided, 2 to pass the Energy bill that includes I don’t have much patience with hours equally divided. Following the the very list contained in his resolu- Members who point to one side or the debate on that, I ask we move to vote tion. other and say they killed the Energy in relation to the Graham amendment I thank the Senate for listening. I am bill. The Energy bill should be in the No. 3112. Prior to that, we vote on the ready at any time to come down and Senate right now and should have been Breaux amendment No. 3117. There will debate the Energy bill and its content, in the Senate last week. We ought to be 2 minutes equally divided prior to because it is time we quit talking and do an energy bill. I said I would refrain each of the votes. start doing. It is time those on the from commenting. I just commented. The PRESIDING OFFICER. Without other side look in the mirror. In the There is no Republican or Democrat objection, it is so ordered. mirror, they will see they are respon- way to pay inflated gas prices. The way The Senator from North Dakota. sible for what is happening because you pay inflated gas prices is stick the Mr. DORGAN. Madam President, this they will not help us pass an energy hose in the tank and you have to fork is a picture of a little red wagon. On bill. over a bunch of bills when you are done the side of this little red wagon it says I yield the floor. filling the tank. We ought to get a bill ‘‘Radio Flyer.’’ Most of us understand The PRESIDING OFFICER. The Sen- through here. My colleagues on both what this little red wagon is because ator from Nevada. sides of the aisle believe that. In my we have actually had one of these red Mr. REID. Mr. President, after con- judgment, it ought to be a priority. wagons. I had one. My guess is the per- sideration during the speech of Senator AMENDMENT NO. 3110 son now occupying the Chair has had a DOMENICI, we believe the action of the Having said that, I have come to the little red wagon. Even in Nevada they Senate will be as follows: Senator DOR- Senate floor to speak to an amendment have little red wagons. Senator REID, GAN will speak on behalf of his amend- I offered yesterday on behalf of myself no doubt, has ridden in one of these. I ment. Senator MIKULSKI will speak on and Senator MIKULSKI. The amendment didn’t know until recently much about behalf of that amendment. It will take is supported and cosponsored by other the red wagons, but that they were probably a half hour for them to do it, Members of the Senate. wonderful and fun, and if you turn the but that is not in the form of a unani- Senator MIKULSKI and I offer an front wheels too sharp, sometimes they mous consent request. amendment that deals with the issue of tip over. Following that debate, we will move the embedded tax incentive in our Tax This little red wagon is enjoyed by off that amendment because the major- Code that actually incentivizes compa- these two young children as it has been ity is finding what vehicle they are nies to shut down their U.S. operation, enjoyed for decades and decades. This going to use for a second-degree move jobs overseas, and then send the wagon is called the Radio Flyer. It amendment. When they finish, when product from those jobs back into the comes from a company created in 1917 Senators DORGAN and MIKULSKI finish, United States. Let me describe the by an Italian immigrant woodworker we will move immediately to the amendment and let me describe why I named Antonio Pasin. He had a one- Graham amendment. At that time, we believe it is important. The amend- room workshop in New York City will lock in a 2-hour time agreement. It ment offered by myself and Senator where he made wooden wagons by is probably likely that each side will MIKULSKI is also cosponsored by Sen- hand. He called them Liberty Coasters, not use its full hour. ator HARKIN, Senator FEINGOLD, Sen- after the Statue of Liberty. He later re- Following that, it will be the desire ator KENNEDY, and Senator EDWARDS. named them ‘‘Radio Flyers’’ because he of the majority to have a vote on the This amendment partially repeals a always had an admiration for air- Breaux amendment and then on the tax subsidy called deferral. This sub- planes. That is how Radio Flyers came amendment of the Senator from Flor- sidy is only partially repealed because on the side of little red wagons sold all ida. We will have two amendments and it is repealed for those U.S. companies over the country. then go back to the amendment by the that move their operation to a foreign The company was inherited by Anto- Senator from North Dakota. subsidiary, produce the same product, nio’s children and then inherited by his I ask that we go to the Dorgan and ship the product back into this grandchildren located in Chicago, IL. amendment. The Senator is on the country. They lose deferral on that For almost a century, they turned out floor. Following debate on that, I ask kind of economic activity. these marvelous little red metal wag- unanimous consent that we go to the The amendment has several other ons made here in this country by work- Graham amendment. provisions that require notification of ing men and women who are proud to The PRESIDING OFFICER (Ms. MUR- communities, agencies, and workers make them—that is, until earlier last KOWSKI). Without objection, it is so or- when jobs are going to be lost and jobs month. They announced these little red dered. are going to be offshored. It requires wagons would now be made in China. Mr. REID. And that there be 2 hours the Department of Labor to supply sta- These American Flyers, these red wag- equally divided on the Graham amend- tistics on jobs sent overseas. ons, will now be sent to our country to ment, with no second-degree amend- The key part is to shut down the per- be enjoyed by our children, but they ments in order. verse provision in tax law that will no longer be made in America;

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.043 S05PT1 S4870 CONGRESSIONAL RECORD — SENATE May 5, 2004 they will be made in the country of ing about an American company that With respect to this issue of inter- China. That is an American icon, mov- decides it should be benefited with re- national provisions in the Tax Code, we ing to China. wards from our tax system for pro- do one, narrow thing. It is very simple. Huffy bicycles. Huffy bicycles have 20 ducing a product overseas that is going In my judgment, no one here will be percent of the American marketplace. to come back into our marketplace to able to say I did not understand it. It is Everybody knows about Huffy bicycles. be sold in this country. very simple. If you are an American Buy them at Sears, Kmart, Wal-Mart. It is unfair to U.S. domestic compa- corporation and you decide to produce In fact, for many years, Huffy bicycles nies to compete against another com- overseas for the purpose of selling into had a little decal between the handle pany that decides to send its produc- our country, we are not going to give bars and the front fender. That decal tion overseas, get rid of its American you a tax break any longer for con- was of the American flag, made by workers, and then end up competing tinuing to do it. We are not going to proud men and women working in a against its former competitors that give you a tax break. manufacturing plant in Ohio. Those stayed in this country, but compete in Now let me just go through a couple men and women made $11 an hour, but a way that provides this company that of things that describe the cir- they don’t work there anymore. They left this tremendous advantage because cumstances that exist in this country. lost their jobs. They came to work one they now pay lower taxes. They got a Imports from foreign affiliates of U.S. day to find out they were fired. Why? tax incentive for leaving. corporations have doubled since 1993. Is We are going to hear, I think, a lot of Because Huffy bicycles were moving to a lot of this happening? You bet. Is it obfuscation about this issue and China. Why were they moving to happening in a much more accelerated huffing and puffing and blue smoke in China? Because $11 an hour was too the air over all this. But I think there way? Of course. And the perverse thing much to pay an American worker when is a simple proposition to understand. is, we have a Tax Code that you could hire a worker in China for 33 If two companies that make bicycles incentivizes this to happen. cents an hour. exist in the same city, and one goes to Here is employment in U.S. manufac- By the way, when you move the little China to make bicycles to ship back to turing. It has fallen by 2.7 million jobs red wagon to China and you move the United States, the one that left since the year 2000. You see what is Huffy bicycles to China, you also get a gets a tax break. That is in current happening to the manufacturing sector tax break. By the way, if you just close law. You can either vote to support in this country. No country is going to your manufacturing plant in the current law and say, ‘‘I support con- long remain a world economic power United States and move it to China, tinuing to give this insidious tax break without a robust, healthy manufac- you get a tax break. to those who want to move offshore to turing sector. Huffy bicycles are not here anymore. ship back into this marketplace,’’ or I used Radio Flyer wagons—and They are in China. They are made by you can decide this is wrong. Huffy bicycles. I could have used any people who make 33 cents an hour. Those companies that stay here, number of products to describe what is They work 7 days a week, 12 to 14 hours those companies that produce here, happening to the manufacturing base a day. Both of these companies get a ought not to have to compete against of the country. And our Tax Code sub- tax cut for going to China. How does others that now have a lower tax rate sidizes it. It says: If you have a plant, that work? How do they get a tax cut because they left. That is a simple shut it down and move. We will give for doing that? We have something in proposition. There is a lot more we you a tax cut. our Tax Code called deferral. It is a for- should do, but we don’t do it in this Employment in foreign affiliates as a eign language to most people unless bill. I will give you some examples. percent of U.S. manufacturing has gone you are an accountant who works in all Companies that want to run subsidi- from 23 percent to 34 percent. I do not these areas. Deferral. It says: Tell you aries through tax havens, what we need to make the case any more than what, if you have two bicycle manufac- ought to do is decide if you don’t have this, except to say when we do this— turers side by side in the same town a business operation, you just want to and I often come to the floor to talk competing for the same marketplace, run your business accounting through about trade issues—it relates to a they pay the same wage; they hire the a tax-haven country, we are going to whole myriad of issues. I mentioned same number of workers; they produce treat you as if you never left this coun- Radio Flyers and Huffy bicycles going the same number of bicycles, one of try. That is what we ought to do. to China. I have not visited the plants them decides to move to China or just And this last goofy provision that is where they are made. move overseas, the bicycle manufac- in the underlying bill says to compa- I regret, and am enormously dis- turer that stays in your hometown in nies, Oh, by the way, you left, and you appointed, after a century of making this country will pay higher taxes than now have deferred income, for which little red wagons in our country, the the bicycle manufacturer that leaves you have never paid a tax; why don’t company that makes them has decided because the bicycle manufacturer that you bring it back here and pay a 5-per- to make them elsewhere. I regret bicy- leaves to go produce in China is not cent tax on it. What an incredibly cles that were made here are made in going to have to pay U.S. income taxes goofy idea. You think there would be China. But let me describe the cir- on its income until and unless it is re- some embarrassment about putting cumstance of all of these issues. And I patriated into this country. That is that in the bill, but there is not. There have talked about this before. This is a called deferral. So it will earn income is no embarrassment, apparently. But Washington Post article. It is about that is untaxed under something called Tom Paxon, many years ago, wrote labor provisions in China. This gets to deferral. this song ‘‘I’m Changing My Name to the issue of fair trade. But this is not We are told from the latest estimates Poland.’’ That is when Poland got some just fair trade. It is also the perverse we received recently that this deferral sort of bailout loan from the United tax incentive that says: Oh, by the benefit for companies that move over- States. ‘‘I’m Changing My Name to Po- way, ship your jobs overseas. seas to produce the same product and land.’’ Maybe the American people It says: ship it back into our marketplace in ought to get the same benefit that is On the night she died, Li Chunmei must the U.S. is over $6 billion in 10 years. being proposed in this bill of a 5-per- have been exhausted. Now I am not talking about an Amer- cent income tax rate. If it is good Co-workers said she had been on her feet ican company, for example, that is in enough for people who have $10 billion for nearly 16 hours, running back and forth the suburbs of Toledo, OH, and it de- in deferred income overseas, to repa- inside the Banain Toy Factory, carrying toy cides: I am going to move a manufac- triate it and pay a 5-percent rate, why parts from machine to machine. turing operation to Sri Lanka or Indo- shouldn’t every single American work- This was the busy season, before nesia so I can, less expensively, ing family pay the same 5-percent rate? Christmas. They worked 7 days a week. produce a product to market in Japan Are they unworthy? Are they less wor- The exact cause of her death remains or South Korea. That is not what I am thy? Why not give them the same op- unknown. They found her after the talking about. That is not what this portunity? lights went out: amendment Senator MIKULSKI and I are There are a dozen things we ought to Her roommates had already fallen asleep offering is talking about. We are talk- do to this Tax Code to make it fair. when she started coughing up blood. They

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.046 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4871 found her in the bathroom a few hours later, manufacturing base. Precious little at- around the supper table at night and curled up on the floor, moaning softly in the tention is paid to it. We will have talk about their lives ‘‘What kind of dark, bleeding from her nose and mouth. Members come to the floor this after- job do I have? Do I have job security? Someone called an ambulance, but she died noon aggressively supporting the prop- Does it pay well?’’ At a time when we before it arrived. The exact cause of [her] death remains un- osition that deferral is good for our discuss these things and know we have known. But what happened in this industrial country, good for our taxpayers, good lost 2.7 million manufacturing jobs in a town in southeastern Guangdong province is for our job base. Nonsense. Sheer non- few recent years, the question for this described by family, friends and co-workers sense. It is not good under any set of Congress is: Will you decide to end the as an example of what [Chinese] newspapers circumstances for us to say if you have perverse incentive in the Tax Code that call ‘‘guolaosi.’’ The phrase means ‘‘over- two companies, one that stays in actually ships jobs elsewhere? Yes or work death’’. ... America, and one that leaves our coun- no. There is not ‘‘maybe’’ as a poten- They actually have a term for it in try, both to produce products to sell in tial answer. It is yes or no. That is China. our marketplace, that we will advan- what we will vote on this afternoon. So these people, who used to make tage the company that left. We will My colleague, Senator MIKULSKI, Radio Flyers, the people who used to give an advantage to the company that comes from a wonderful State, a dif- make Huffy bicycles are supposed to fired its workers and left to take its ferent State than mine. She comes compete with that? We are supposed to jobs to Sri Lanka or to Indonesia or from more of an industrial State, the believe this is the way competition Taiwan or China or Bangladesh. It State of Maryland. But she has worked works in the world? I do not think so. makes no sense. It never has. And it with me tirelessly in creating this But aside from that, aside from the makes no sense today to decide that we amendment. I know she has a lot to perversity of setting up a competition will provide significant financial incen- say as well on behalf of American in circumstances where kids are tives to those who make the decision workers. Let me yield the floor to my worked to death, and paid pennies, and to shut down American jobs, shut down colleague from Maryland. live 12 to a room, work 7 days a week, manufacturing plants, move them The PRESIDING OFFICER. The Sen- 12 hours a day, aside from that, we, in overseas, and reward them for doing so. ator from Maryland. this Tax Code, have an incentive that This country ought to stand up for Ms. MIKULSKI. Madam President, I says: If you do this, you pay less in its economic interests, not to the det- ask unanimous consent to print in the taxes. If you do this, move your jobs riment of others but for its economic RECORD letters in support of the Dor- elsewhere, you actually get a tax interests. That is what this amend- gan-Mikulski amendment from the break. My colleague Senator MIKULSKI ment does. It is about jobs. It is about boilermakers and the shipbuilders, and I think that is perverse, as I have economic strength. It is about a manu- from the electrical workers, from the said. facturing base that needs to be strong U.A.W., and from the AFL–CIO. There being no objection, the mate- This proposal is very carefully tar- and vibrant and growing. And it is rial was ordered to be printed in the geted. It ends tax deferral only where about fairness. Finally and most im- RECORD, as follows: U.S. multinationals produce goods portantly, it is about common sense. INTERNATIONAL BROTHERHOOD OF abroad and ship those goods back into I come to this Chamber from a very the U.S. marketplace. For others who BOILERMAKERS, IRON SHIP BUILD- small town, 300 people in southwestern ERS, BLACKSMITHS, FORGERS & might be surprised by this amendment, North Dakota, a sparsely populated HELPERS, let me say to them, it is not new. State. One heavy dose of common sense Fairfax, VA, May 4, 2004. President John F. Kennedy tried to here would be that we would pass this DEAR SENATOR: Today, the Senate is ex- shut down deferral—a much larger amendment and say that this defies pected to vote on the Dorgan-Mikulski proposition than ours in this amend- logic. Go to the cafe in my hometown amendments to S. 1637, which would end tax ment. Richard Nixon supported shut- and ask folks: Do you think it makes deferral for U.S. companies that outsource ting down deferral. The House of Rep- manufacturing facilities and jobs to foreign sense for us to have an embedded provi- countries, only to ship foreign made goods resentatives actually voted in the 1980s sion in the American Tax Code that re- back to the United States. On behalf of the to shut this down. This is not new. wards a company that leaves and puts International Brotherhood of Boilermakers, I might also say, the Senate has pre- the company that stays at a competi- Iron Ship Builders, Blacksmiths, Forgers and viously voted on an amendment very tive disadvantage? Try defending that. Helpers, I strongly urge you to support the similar to this about 8 years ago. But if If you will defend that in any cafe, any Dorgan-Mikulski amendment and end the we are dealing with international tax- city in this country, let me be there ‘‘Runaway Plant/U.S. Job Export’’ subsidy. The Dorgan-Mikulski amendment will help ation—and we certainly are with re- while you do it so I can tell the other spect to the underlying bill brought to stop the flow of good-paying manufacturing side of this story. jobs out of the United States. In the last 3 the floor by the Finance Committee; There will come a point when this years, 2.7 million jobs that could support the and we are doing it in some ways that Congress—perhaps it is today when we typical American family have disappeared. are quite disappointing, some ways start down this road—has to decide to Part of this decline is due to tax incentives that are fine—if we are dealing with stand up for the economic interests at that encourage companies to shift their op- that subject, we cannot fail to deal home, take care of matters at home. erations abroad. Under current law, a U.S. with the subject of incentives that now This is a first step. company that shifts a manufacturing oper- exist for companies to eliminate U.S. Let me end where I began, with bicy- ation to a foreign based subsidiary can in- jobs and shipping those U.S. jobs over- definitely defer paying U.S. taxes on its prof- cles and wagons, just as a symbol. Both its until it sends those profits back to the seas. have now decided that they will not U.S. as dividends. I am not someone who believes our produce in the United States. They will U.S. taxpayers should not subsidize manu- country ought to put up walls. We have produce instead in China. Those jobs, facturing expatriates. This unfair and arcane a global economy; I understand that. I these wheels, these pedals, those han- tax provision rewards U.S. companies that don’t think the rules for globalization dlebars, and this red paint used to be move American jobs offshore and puts tax- have nearly kept pace with applied by American workers. They are paying domestic companies at a severe dis- globalization. That is why you can’t not any longer. I am not saying we advantage, while costing American taxpayers $6.5 billion over 10 years. Multi- hold discussions on trade anywhere ought to keep every job here. I am not national companies should not be encour- where there is a population center saying it is not a global economy. But aged to move jobs abroad and avoid paying these days, so they take them to Qatar, I am saying we can take the first com- their fair share of taxes on income gained someplace where there are no hotel monsense step to say we will no longer from the U.S. market. rooms. have an embedded perverse incentive Repealing the jobs exports tax subsidy will The fact is, we are now increasingly to reward companies to move their jobs allow American manufacturers to compete a global economy. But as we globalize, overseas. If we can’t take that step, fairly. This amendment not only repeals this the rules must keep pace. As we ill-advised job export subsidy, but it uses this is going to be a mighty short jour- those savings to accelerate the tax cuts pro- globalize this country, this world eco- ney for this country’s economy. vided in S. 1637 for domestic manufacturing. nomic power needs to be concerned At a time when we worry about jobs, Corporations will be held accountable to about its future, its job base, and its people worry about security; they sit the communities they leave behind. Workers

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.049 S05PT1 S4872 CONGRESSIONAL RECORD — SENATE May 5, 2004 and their families deserve to know when corporate taxes, but American companies Thank you for considering our views on their jobs are being sent abroad. This amend- that manufacture abroad can indefinitely these important issues. ment will shed new light on corporate prac- defer their taxes on that income. The Dor- Sincerely, tices by requiring companies to disclose to gan-Mikulski amendment would eliminate ALAN REUTHER, workers and the public whenever they lay off deferral so companies are taxed the same Legislative Director. more than 15 workers to send jobs overseas. whether they produce and invest in the Ms. MIKULSKI. Madam President, I Once again, I urge you to remedy the un- United States, or invest abroad and export want to thank the Senator from North fair tax incentive that sends American jobs back to the United States. This change overseas by supporting the Dorgan-Mikulski would save taxpayers nearly $7 billion and Dakota for his passion and vigor in pre- amendment to S. 1637. Thank you for your eliminate a major incentive in the tax code senting this amendment. I also thank attention to this important matter. to ship jobs overseas. him for his story about the Red Ryder, Sincerely, The amendment comes at a critical time a good old wagon. I had a Red Ryder BRIDGET P. MARTIN, for American workers. More than 2.8 million wagon. Growing up in a blue-collar Assistant to the International President, manufacturing jobs have been destroyed neighborhood in Baltimore during Director of Government Affairs. since President Bush took office. According World War II, my father had a little to a recent survey of American CEOs, 47 per- INTERNATIONAL BROTHERHOOD neighborhood grocery store. And one of cent of them plan to ship more manufac- OF ELECTRICAL WORKERS the ways the groceries got delivered Washington, DC, May 4, 2004. turing jobs overseas this year. The US tax was in this good old red wagon we had. code should not encourage companies to ex- Hon. DANIEL K. AKAKA, I could use the wagon for a couple U.S. Senate, Hart Office Building, port jobs, which is why the Senate should adopt the Dorgan-Mikulski amendment. things. Washington, DC. Dad would sometimes say: Barb, take DEAR SENATOR AKAKA: Today, the Senate Thank you for considering our views on is expected to vote on the Dorgan-Mikulski this important issue. the wagon down to Mrs. Smith or amendment to S. 1637, which would end tax Sincerely, Yankowski or Coalino. It was a very deferral for U.S. companies that outsource WILLIAM SAMUEL, ethnic neighborhood. They called in manufacturing facilities and jobs to foreign Director, Department of Legislation. and ordered late. Run down those or- countries, only to ship foreign made goods anges and take the wagon. back to the United States. On behalf of the INTERNATIONAL UNION, UNITED I loved that red wagon. I was also a 780,000 members of the International Broth- AUTOMOBILE, AEROSPACE & AGRI- Girl Scout during World War II. Dad erhood of Electrical Workers (IBEW), I CULTURAL IMPLEMENT WORKERS would let me use the wagon to go strongly urge you to support the Dorgan-Mi- OF AMERICA-UAW kulski amendment and end the ‘‘Runaway around the neighborhood to collect Washington, DC, May 4, 2004. Plant/U.S. Job Export’’ subsidy. newspapers because we were recycling The Dorgan-Mikulski amendment will help DEAR SENATOR: This week the Senate will a variety of things for the war effort. I stop the flow of good-paying manufacturing be considering amendments to the FSC/ETI felt like a little soldier on the move jobs out of the United States. In the last 3 tax replacement legislation. The UAW wish- with my red wagon and my little Girl years, 2.7 million jobs that could support the es to share with you our views on this impor- Scout uniform, along with other kids typical American family have disappeared. tant measure. Part of this decline is due to tax incentives from the troop. I was the kid with the The UAW strongly supports the Specter- wagon. I loved that wagon. I loved that that encourage companies to shift their op- Bayh manufacturer’s tax equity amendment. erations abroad. Under currnet law, a U.S. As currently structured, the FSC/ETI bill neighborhood so much because in that company that shifts a manufacturing oper- provides a deduction that only certain U.S. neighborhood there were men sent off ation to a foreign based subsidiary can in- manufacturers are able to utilize. Unfortu- to World War II, saving Western civili- definitely defer paying U.S. taxes on its prof- nately, this deduction does not provide any zation, saving the world. its until it sends those profits back to the benefit to many capital-intensive indus- We were the neighborhood of fac- U.S. as dividends. tries—including major auto and steel compa- U.S. taxpayers should not subsidize manu- tories. We made liberty ships. We nies—because they do not have sufficient facturing expatriates. This unfair and arcane turned out a liberty ship, one ship ‘‘manufacturing’’ income due to their ex- tax provision rewards U.S. companies that every 3 weeks. We put out turbo steel tremely high ‘‘legacy’’ health care and pen- move American jobs offshore and puts tax- to make the tanks. Glenn L. Martin sion costs. The net result is that domestic paying domestic companies at a severe dis- portion of the FSC/ETI bill fails to provide made the seaplanes that helped win the advantage, while costing American tax- any assistance to a major portion of our battle of the Pacific. We were in the payers $6.5 billion over 10 years. Multi- manufacturing base that is crucial to main- manufacturing business. We were in national companies should not be encouraged to move jobs abroad and avoid paying taining thousands of good paying jobs. the war effort business. And this little their fair share of taxes on income gained To correct this deficiency, the Specter- girl in her Girl Scout uniform with the from the U.S. market. Bayh amendment would allow manufacturers little red wagon made in the USA felt Repealing the jobs exports tax subsidy will to elect either to take the deduction cur- she was doing her bit. allow American manufacturers to compete rently in the bill, or in lieu of that to receive Guess what. Those jobs now are leav- fairly. This amendment not only repeals this a tax credit equal to 10 percent of their ing. Our shipyard jobs have left. Our ill-advised job export subsidy, but it uses health care expenditures for active and re- steel mills have shrunk to miniscule those savings to accelerate the tax cuts pro- tired workers aged 55–64. This election would vided in S. 1637 for domestic manufacturing. effectively allow auto and steel companies to levels. We don’t make ships. We don’t Corporations will be held accountable to receive a tax benefit equivalent to that re- make steel. We don’t make clothing. the communities they leave behind. Workers ceived by other domestic manufacturers. In We are really down. The blue-collar and their families deserve to know when addition, it would provide significant relief Baltimore of World War II and Korea their jobs are being sent abroad. This amend- for their ‘‘legacy’’ costs, and enable them to and Vietnam just isn’t what it used to ment will shed new light on corporate prac- increase investments and create additional be. tices by requiring companies to disclose to jobs for American workers. The UAW urges workers and the public whenever they lay off Where did those jobs go? Those jobs you vote for the Specter-Bayh amendment are on a slow boat to China. They are more than 15 workers to send jobs overseas. and to insist that it be incorporated into the Once again, I urge you to remedy the un- FSC/ETI bill. on a fast track to Mexico. And other fair tax incentives that sends American jobs jobs are in a dial 1–800 anywhere. And overseas by supporting the Dorgan-Mikulski The UAW also urges you to support amend- why did they go? They went because amendment to S. 1637. Thank you for your ments to reduce or eliminate tax breaks for the overseas operations of multinational cor- there were tax breaks that rewarded attention to this important matter. those corporations to move not only Sincerely, porations. This includes the Dorgan-Mikul- EDWIN D. HILL, ski amendment on runaway shops, the Har- the red wagons but so much of this International President. kin amendment disallowing deductions for manufacturing overseas. outsourcing, and the Hollings amendment Today, as we know, if you are in busi- Washington, DC, May 4, 2004. striking the international provisions in the ness and in the good old United States DEAR SENATOR. The AFL–CIO urges to sup- bill. These amendments would eliminate tax of America, you get a tax break if you port the Dorgan-Mikulski amendment to S. breaks that are exacerbating the loss of move those jobs overseas. I think it is manufacturing jobs in this country. Instead 1637. The amendment would eliminate for- wrong to give companies incentives to eign tax deferral for companies that export of subsidizing companies that ship jobs over- jobs. seas, the UAW believes Congress should tar- send millions of jobs to other countries Under current tax law, companies that get assistance to domestic manufacturers when millions of Americans are losing manufacture in the United States must pay who create jobs for American workers. their jobs. It is wrong to put companies

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.005 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4873 who stay in America at a competitive woman in America loves Maytag and I really want to have a tax code that disadvantage because they have their that friendly guy who comes to service brings our jobs back home, brings our business and hire their workers at them. Well, I hope he speaks a foreign money back home, stands up for Amer- home, pay their share of taxes, and language to try to read the manual, be- ica. So pass the Dorgan-Mikulski provide health care to their employees. cause those Maytags are made some- amendment and take your first step to- We should be rewarding these compa- where else. By the way, they used to be ward economic patriotism. nies with good guy tax breaks for hir- made in Illinois. So those 1,500 jobs The PRESIDING OFFICER. The Sen- ing and building their businesses right left. They were washed out, if you will, ator from North Dakota is recognized. here in the United States. We should be in this country. Mr. DORGAN. Madam President, giving good guy bonuses to American Then there is Levi Strauss, which thanks to the Senator from Maryland corporations who are providing health closed six U.S. plants, cutting over for her comments and her hard work on care to their workers and to their re- 5,000 jobs. So the jeans that made this amendment. I hope we will be able tirees. But, no, we give tax breaks to America famous are now being made in to pass this amendment. I expect we those people who want to take their other countries. will vote on it later today. I wanted to jobs and evacuate to another country. We could go on to furniture that used make a couple of additional points. It is time we look at our Tax Code to be made in our Southern States, like First of all, on this broader issue of and call for a patriotic Tax Code. I Virginia and North Carolina. Many of deferring tax, Presidents Kennedy, want a patriotic Tax Code. We walk you might have read in the paper over Nixon, and Carter all tried in vain to around the floor of the Senate, we go the weekend what is happening in Roa- actually end deferral. In 1975, the Sen- to rallies. We love to be in parades. We noke, VA, where many people have lost ate voted to end it. In 1987, the House wear our flags because we want to their jobs in manufacturing, in metal voted to end it. But in each case, of stand up for our troops—and stand up working, in furniture, and in other ma- course, it never got to the President’s for our troops we should—but we have terials. Their divorce rate is so high desk for signature. So we have this to stand up for America. that almost 50 percent of the people in thing called deferral. That sounds less We have to stand up for America by Roanoke, VA, are now divorced. It is ominous than it really is. having a strong economy. That is why becoming the divorce capital, with the With respect to the products manu- I want a patriotic Tax Code. This highest divorce rate in the Nation. factured abroad to be sold in our mar- amendment we are proposing is about Why did that happen? You can look at ketplace by U.S. corporations, this de- patriotism. It is about economic patri- the divorce rate and chart it along ferral is a title that says there is a tax otism. We have to start putting our with the decline in those manufac- break for U.S. companies to move jobs might and our muscle and our votes be- turing jobs. We have seen it in manu- overseas in order to sell back into our hind this in the Senate. facturing. There is the exit of the serv- marketplace. There is now $640 billion What does a patriotic Tax Code do? I ice jobs now. A lot of people in manu- in foreign earnings that have not been think it would focus on bringing our facturing who lost their jobs busted repatriated. Many of them, of course, jobs back home and bringing our their backs and their butts to send are parked in tax havens indefinitely— money back home. That is what a pa- their kids to higher education, commu- $640 billion. triotic Tax Code would do. The Dorgan- nity college, or college. They said go to My colleague also talked about some Mikulski amendment is step one. It college, kids, learn technology; it is products. What is more American than ends these huge tax breaks for manu- the new field. You are not going to be Levis? Well, Levis are gone. Before, facturing companies that send jobs laid off like me. You are going to have when you put on a pair of pants, you overseas, only to sell the products they a future. America will be the tech were putting on an American pair of make right here in the United States of country of the world. Well, guess what pants. Not anymore. You are putting America. The current Tax Code lets happened. Now the tech jobs are going. on Mexican or Chinese pants. these companies move the jobs and not In the next few years, the IT sector Then there is Fruit of the Loom. It is pay taxes on the profits, even though will move over 500,000 jobs overseas. one thing to lose your shirt, but Fruit they earn the profits by their sales of People are saying train—you have to of the Loom is gone. They used to be those products in the United States. be kidding. Even our State govern- manufactured here. They are manufac- Our amendment tells these compa- ments are outsourcing jobs by hiring turing them in Mexico and, I believe, nies if you want to export jobs out of companies to do call centers overseas. I some in China. By the way, if you want America, you need to pay the taxes on joined with Senator DODD to stop the to order up Mexican food, order Fig your profits. Our amendment says the outsourcing of Federal jobs overseas to Newtons. We all grew up with them. Tax Code can no longer be used to call centers. Fig Newton cookies used to be Amer- boost corporate rewards at the expense That is why I stand here today with ican. Now this cookie is made in Mex- of American workers. I have watched my colleague from North Dakota to ico. Next time you order Mexican food, those jobs I have talked about leave. A call on us to think about economic pa- ask whether they will bring you some couple months ago, we were hard hit on triotism, think about a patriotic Tax Fig Newtons. the eastern shore. There is a company Code that, first of all, gives rewards to The point is, we are not only shifting headquartered in Maryland called American companies that keep jobs these jobs out of our country for the Black and Decker. It makes many of here, and also a tax code that gives purpose of manufacturing to sell back the wonderful tools you use in your good bonuses to those companies that into our country, our Tax Code says home. It was started by a Maryland provide health insurance to their work- please do this and we will give you a family. The jobs were in America. Now ers and also look out for their retirees. $6.5 billion benefit over the coming 10 the headquarters is in America, but the Then the other thing is to end the years. jobs are not here. The eastern shore despicable process and breaks and re- If the Congress cannot take this baby jobs at that major manufacturing facil- warding those companies who move not step in addressing this perversion, then ity have left. Over a thousand people only the little red wagons, but very big the Congress cannot find its way were laid off; 1,000 people in a little manufacturing items overseas. That is through public policy in a way that re- community like Talbot County. That is why I want to stand up today for what flects any modicum of common sense. a tremendous impact. The impact has I believe is the right thing to do. I call I wanted to mention that while I been felt by the whole community. upon my colleagues to think about think there is much to criticize in the People lost their jobs, and people had where America is going in the 21st cen- underlying bill, there is a provision in to cut back in terms of their homes, tury. Where are we going to be? Are we the underlying bill that addresses so- the way they shop at their grocery going to create more opportunity? Are called ‘‘inversion.’’ I commend the store; and there is great shrinkage in we going to create more jobs that pay committee, Senator GRASSLEY, and the United Fund. I could go on about living wages, that have a benefit struc- Senator BAUCUS for that position. The that. Those jobs left this country. ture you can reward? Or are we going inversion is a circumstance where a At the same time, there are other ex- to resemble the economy of a third U.S. corporation says I want to re- amples. Take Maytag. Oh, gosh, every world country? nounce my American citizenship for

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.051 S05PT1 S4874 CONGRESSIONAL RECORD — SENATE May 5, 2004 the purpose of saving tax money. Well, The administration has stated the the underlying current international we have seen some of that. My col- weak employment situation is the re- tax incentives for American manufac- league from Maryland asks, where is sult of a dramatic increase in produc- turers. That is goal No. 1. the economic patriotism? The com- tivity. They argue this increased pro- Goal No. 2 is to avoid enacting a pro- mittee, in my judgment, did the right ductivity has raised our standard of vision that makes it more advan- thing with respect to this issue of in- living. There are a lot of Americans tageous than it is today for U.S. com- versions in the underlying bill. I con- out there who have not seen this rising panies to move jobs abroad. gratulate them for that. tide of standard of living. Goal No. 3 is to enact provisions that My hope is we will this afternoon Since this administration took of- encourage job creation in the United have some additional debate on this fice, real earnings growth has slowed States of America. amendment. I don’t know what is going dramatically, particularly for those at Goal No. 4 is to simplify the Tax to be offered as a substitute, but, hope- the lower income scale. Real earnings Code. fully, we will have votes on both, and at the middle of the income distribu- Goal No. 5 is to minimize extraneous we will be able to continue and com- tion rose only two-tenths of 1 percent tax matters that detract from the pur- plete this debate this afternoon. I hope per year in 2000, 2001, 2002, and 2003. pose of this legislation—jobs in Amer- when the dust settles Congress will To put this in comparison, this is a ica. Let me review the degree to which have done something that meets some marked deterioration from the suc- this legislation achieves these five very basic commonsense test. cesses of the 1990s. Between 1996 and My understanding is Senator GRAHAM important goals. 2000, real earnings growth for those in Goal No. 1, comply with the adverse of Florida is going to be involved in the the middle income was 1.7 percent per coming 2 hours. He is in the Chamber. WTO ruling. The World Trade Organi- year. zation, of which the United States is a Let me at this point yield the floor We also find ourselves with another with the understanding I will continue charter member, has ruled the growing deficit, and that is a growing extraterritorial income tax incentive this discussion this afternoon when we trade deficit. The U.S. trade deficit, return to this amendment. enacted in 2000 violates the WTO prohi- the excess of goods and services we buy bition against export subsidies. The I yield the floor. from others over the amount of goods AMENDMENT NO. 3112 extraterritorial income tax incentive, and services we sell to others, has var- acronymed ETI, was enacted to replace The PRESIDING OFFICER (Mr. ied over the years, generally in tandem HAGEL). Under the previous order, a similar export-related tax benefit, with the economy. For example, in the foreign sales corporation regime, there will now be 2 hours of debate 1981, we had a slight trade surplus. In equally divided on the Graham amend- which also came under fire by the 1986, the trade deficit had risen to a WTO. ment No. 3112. then record of 2.8 percent of gross do- The Senator from Florida. Under the ETI regime, a taxpayer Mr. GRAHAM of Florida. Mr. Presi- mestic product. Remember that num- can exclude a portion of its income re- dent, I first thank my colleagues, Sen- ber, in 1986, a record historic trade def- lated to goods sold, leased, or rented icit in the United States of 2.8 percent ator DORGAN and Senator MIKULSKI, for direct use or consumption or dis- who have raised the issue of will it be of gross domestic product. position outside the United States. The American jobs the JOBS bill will cre- In 1991, our trade deficit had fallen amount excluded under the ETI law is ate. That is a core question which is back to a mere two-tenths of 1 percent 15 percent of the net income derived raised by the amendment I have of our gross domestic product. We see from the transaction. brought to the Senate. We are about to in the last several years, as there has The WTO’s ruling is unfortunate be- spend $170 billion over the next 10 years been deterioration in jobs within cause it perpetuates an unfair advan- with the stated objective being to cre- America, there has also been a deterio- tage which the European businesses ate jobs for American men and women. ration in our international trade bal- have in relation to the United States The question is: How effective will this ance. For 2003, our trade deficit firms selling into that market. legislation be in achieving that goal? Is reached a new record of 5.5 percent of Nevertheless, because we rely on the it worth $170 billion under these condi- GDP. Compare that with the record of WTO to make sure other countries ad- tions to be spent or is there not a bet- 1986 of 2.8 percent of gross domestic here to international trade rules, we ter way to allocate that same amount product. must abide by its decision. It is the of money that will have a greater like- I present this information as the con- rule of trade law. lihood of actually creating jobs in the text within which to consider the legis- In addition to meeting our trade obli- United States? lation which is before us and the gations, we need to enact this bill to I would like to put this into some amendment I have offered—the need rescue those companies and their em- context. The context is where have we for strategic, energetic, and efficient ployees from the punitive tariffs which been in the recent past and where are stimulation to our economy, particu- are currently being imposed on U.S. ex- we today in terms of jobs for American larly our manufacturing economy and ports into the European Union. Cur- men and women. particularly to that part of the manu- rently, those tariffs equal 7 percent of The manufacturing sector of the facturing economy which has been so the price of a product being exported to American economy has lost 2.8 million damaged by the deterioration of our Europe. That tariff will increase 1 per- jobs since January of 2001. It may well international trade. cent per month for each month we be this administration will end up as The current impasse on this JOBS delay in repealing these offending pro- the first administration in 70 years, bill which has caused several weeks visions. since the administration of President delay may turn out to be a blessing in What is most unfortunate is the com- Herbert Hoover, to preside over a net disguise. The delay has provided the panies that had benefited from the ETI decline in private sector employment Senate with an opportunity to reassess provisions which have now been ruled in the United States. the fundamental merits of this legisla- illegal often do not make the products The unemployment rate has in- tion and then to consider what might which are now the subject of European creased 36 percent since January of be better alternatives for working men sanction and retaliation. Innocent 2001. The number of long-term unem- and women in this country. businesses and their employees are ployed has increased 175 percent. There I see this bill, the JOBS Act, as hav- caught in this crossfire. The JOBS Act have been policies and expectations ad- ing five goals. meets this first goal by repealing the vanced to reverse that situation. The The first goal is to meet our obliga- ETI provisions in our Tax Code. Re- President said, for instance, in his 2003 tion under the World Trade Organiza- pealing these provisions will increase Economic Report that based on the tion by repealing the existing laws, Federal income tax receipts by $45 bil- steps Congress had taken since his ad- rules, and regulations and, therefore, lion over the next 10 years. ministration commenced, in the year reverse the retaliatory sanctions which Goal No. 2: Avoid exacerbating the 2003 there would be 1.9 million new jobs are being imposed by European coun- current tax incentives for further created in America. The actual in- tries on products of the United States, outsourcing of jobs by U.S. corpora- crease in jobs in America was 100,000. many of which have nothing to do with tions. The JOBS Act does a poor job in

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.082 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4875 meeting this objective. The provisions into the United States. We are increas- not vote for making this window per- in title II of the bill, by definition, are ing the incentive to do so. manent, as the President is urging that designed to lower the tax burden on This bill includes a ‘‘temporary pe- we do, taxes have been raised. U.S. companies’ foreign operations. riod’’ during which dividend payments Now, this is not a fanciful sugges- The effect of that: To make it even from foreign affiliates to a U.S. parent tion. In fact, this very bill includes 21 more attractive to move operations receive a substantial reduction in their tax provisions which when they were and jobs outside the United States to a tax rate. The regular corporate tax enacted were for a specific time period, foreign base of operation. rate is 35 percent. It would be reduced which has long since passed. Every The total cost of the changes we are for an American corporation which has year, as we get close to these tax provi- making in this underlying law, which set up a subsidiary in a foreign coun- sions that are about to expire, we pass will have the effect of increasing the try, has earned a profit in that foreign legislation to extend them for yet a few incentives to leave the United States, country, is going to send that profit more years. is $37 billion over the next 10 years. As back to the United States. Instead of For instance, in this bill we have a stunning as it is, we are about to spend being subject to the normal tax of 35 number of items that were intended to $37 billion to give additional incentives percent, they would only be subject to be for a specific duration that we are for firms to move jobs out of the a tax of 5.75 percent. now going to extend substantially into United States. This provision reduces Federal reve- the future. These include items such as I will provide a couple of examples of nues by $3.8 billion over the next 10 the deduction for electric vehicles, de- how specific provisions will affect U.S. years. What are American working duction for teachers’ school expenses— multinational investment decisions. men and women going to get for their other items which may in and of them- First I will say to anyone who is listen- $3.8 billion? The rationale for this pro- selves be worthy. But they are illus- ing that if they would like to take a posal is that reducing the tax rate will trative of the difficulty of ever saying nap, this would be a good time to do it encourage U.S. multinational compa- that something which was supposed to because it gets real tough going at this nies to expatriate income held offshore be temporary is, in fact, temporary. If extended, the effect of this repatri- point. in order to make investments in the ation proposal will be to create a per- Example one, there is a provision in United States that will create jobs. this bill that changes the tax treat- Let me just point out one little prac- manent reduced tax rate for U.S. multinationals’ foreign investment, a tax ment of payments between affiliated tical fact. In order to take advantage rate which is 85-percent less than the foreign companies. The law today is of this; that is, for a U.S. firm oper- tax rate that same corporation would that the U.S. tax on income earned by ating outside the United States to be pay on income earned inside the United a foreign subsidiary of a U.S. multi- able to repatriate a substantial amount States. So we have a dismal failure on national is deferred until that income of funds during a narrow window of op- goal No. 2, which is to avoid giving any is paid to the U.S. parent in the form of portunity, it has to be a firm that has further incentives to U.S. multi- a dividend. Dividends paid by one for- a substantial amount of cash on hand nationals outsourcing jobs. eign subsidiary to another foreign sub- in order to be able to take advantage of Goal No. 3 is to encourage the cre- sidiary are treated as though they were that. If they have been investing the ation of jobs in the United States. The paid to the U.S. parent and are there- profits they have earned offshore to ex- primary provision for this encourage- fore subject to U.S. tax. pand their offshore operations, they ment is the creation of a U.S. job pro- The JOBS Act changes this treat- will have limited means by which to vision in the form of a manufacturers’ ment by continuing the deferral of U.S. avail themselves of this opportunity. deduction. As currently constituted, tax on dividends paid by one foreign My concern is that what we are real- this manufacturers’ deduction, which subsidiary to another located in a dif- ly creating is a tax incentive for tax is in this legislation, will reduce Fed- ferent country. The effect of this legis- shelters because it is those tax shel- eral revenues by $65 billion over the lation will be to make it more attrac- ters, as opposed to companies that are next 10 years. What are we getting for tive for a U.S. multinational to invest actively engaged in the production of our $65 billion? The deduction is com- excess cash in a foreign subsidiary in goods and services, that are the most puted as a percentage of the employer’s any country except the United States likely firms to take advantage of this income from production activities lo- of America. Payment to the U.S. par- window. They are the least likely firms cated within the United States. ent would trigger the tax, but payment to create jobs in the United States. The fact the deduction is based on in- to an affiliated foreign subsidiary Another concern about this tem- come, however, creates the perverse ef- would remain tax deferred. porary window proposal is it will not fect of rewarding manufacturers that An example: If an American firm op- be very temporary. How many times locate at least a portion of their oper- erating businesses in several foreign have we heard in the Senate, when a ations in a low-cost jurisdiction out- countries—let’s say one of those was tax cut has been passed but might not side the United States. When fully India and another was China—if the In- go into effect for several years in the phased in, the deduction equals 9 per- dian subsidiary earned substantial future, and then today someone says, cent of the profit earned from produc- profits and the company was making let’s reconsider: was that really a wise tion activities conducted in the United the decision will I use those profits to thing to do, to cut the tax rates begin- States. To qualify for the deduction, reinvest in India, will I use those prof- ning in the year 2009? Should we not re- the item must be produced, in whole or its by bringing them back to the evaluate that in the context of our cur- a significant part, within the United United States in the form of a dividend rent deficit situation and the war and States. The deduction has some limita- to invest in the United States, or will the other challenges America faces? tions. It is limited to an amount that I move those profits to China, today What is the response to that reason- equals 50 percent of the wages paid by the last two choices have the same tax able question? The response is, of the employer. To the extent that the implications. U.S. tax will be paid if course we should not consider it be- taxpayer has manufacturing operations the money was brought back home or if cause if a tax is precluded that is al- outside the United States, the deduc- the money was sent to China. Under ready on the books from staying on the tion is further reduced by the fraction this legislation, the only time the tax books or going into effect at a future representing the ratio of the firm’s will be paid is when it comes back to date, do my colleagues know what has U.S. activity to its worldwide activi- the United States. If the exact same just happened? They have raised taxes, ties. These limitations, which are fre- dollars go in the form of a dividend and that is the ultimate charge that quently referred to as haircuts, are from India to China, there is no tax. can be made against an American poli- supposed to assure that the incentive is We are creating a very substantial tician. targeted at U.S. production. new incentive for American companies Imagine what it is going to be like However, they do not always work in to use their income earned outside the when this temporary window is ready that manner. Let me show a couple of United States frequently, as Senators to expire and the same argument is charts as to how this provision, the 9- DORGAN and MIKULSKI have just said, made; if one does not vote for extend- percent manufacturers’ deduction, is to create a platform to export back ing this window, preferably if they do likely to work in real life.

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.052 S05PT1 S4876 CONGRESSIONAL RECORD — SENATE May 5, 2004 The first chart is a simple expla- They will argue that a firm that uti- the benefits more specifically to the nation of how the deduction is com- lizes foreign sources to provide 80 per- title of this bill, JOBS. Our proposal is puted. In this example, the firm has all cent of the production activity will not to exchange the bill’s incentive based of its production operations located in- meet that standard. on profits with an incentive based on side the United States. It earns $100 in We cannot be assured of that because jobs. Our proposal would redirect the sales for its products. It incurs costs nowhere in this legislation is the term $60 billion raised by repealing the ETI totaling $70 to produce them. The ‘‘in significant part’’ defined for most and the $37 billion currently directed costs, $70, are distributed as follows: products. In fact, a firm doesn’t have to the international tax changes and materials cost $40, wages inside the to move anything near 80 percent of its use those funds to create an income tax United States cost $27, other wages, $3. production offshore to get the benefit credit. That credit would be used to That is a total of $70. of this deduction. In my example, using partially offset the payroll taxes paid The company’s profit is $30. Its man- the same numbers but modified to re- by U.S. manufacturing employers. ufacturers’ deduction is computed as a flect one-quarter of production being One of the true disincentives imposed percentage of that income. At the fully moved offshore, this would still yield a by the Federal Government on job phased-in rate of 9 percent, the deduc- greater tax incentive than keeping 100 maintenance and creation in the tion would equal $2.70 to that firm. percent of the production in the United United States is the fact we impose a Let’s look at how the manufacturers’ States. 7.6 percent tax on the employer for his deduction is computed if the taxpayer Let me repeat that. If a firm keeps 75 employees which then becomes the outsources a share of its manufac- percent of its production in the United payroll tax that then supports Social turing in order to reduce labor costs. States, moves 25 percent abroad, under Security and Medicare. I am not pro- Chart No. 2 illustrates the effect of this this calculation it will get a $3.15 de- posing we do anything to the payments change. duction against its U.S. income tax that are made into the Social Security In this example, 80 percent of the versus if it keeps 100 percent in the and Medicare trust fund. Rather, what firm’s manufacturing occurs offshore, United States it will get a $2.70 deduc- I am suggesting is we take the now al- which results in a 90-percent reduction tion. most $100 billion we will have over 10 in its manufacturing wages. The firm Does that make common sense? It years, and use it in the form of a credit still earns the $100 that it did in the was certainly contemplated that some whereby it incorporates for all of its first example; that is $100 on the sale of portion of the final product’s produc- employees the first $35,000 of earnings, its product, but its costs are substan- tion could occur outside the United and will be able to deduct a credit tially lower than the $70 in the first ex- States. Otherwise, the statute would which would amount to approximately ample. In this case, the materials con- have been drafted without the ref- 20 percent of the payroll taxes paid by tinue to cost $40, manufacturing wages erence to ‘‘significant part.’’ It would the employer, or a 1.66 percentage in the United States have dropped to $5 have required that all the production point against their corporate income since a substantial amount of the cost be in the United States in order to tax. of production, not including materials, qualify. It would have been drafted so The employers who qualify for this has now moved outside the United it applies only to goods solely produced new incentive are the same ones who States to a low-wage area. Foreign in the United States. would have benefited under the manu- manufacturing wages are $7. So what My concern is the new deduction cre- facturers’ deduction. The difference is this firm used to pay $27 to get—the ated by this legislation will provide our proposal bases the incentive on manufacturing labor to assemble its U.S. employers with a positive incen- American jobs, not on profits. The dif- products—is now getting it for $12. The tive to move a larger amount of their ference is our proposal does not create other wages in the United States con- production offshore. The sponsors will the incentive. As this chart indicates, tinue at $3. also argue the extent of offshore pro- we are creating additional outsourcing The firm’s profit, therefore, is dra- duction activity is conducted by a sub- of American jobs if we use the almost matically improved by moving its op- sidiary of the U.S. taxpayer. The de- $100 billion in the manner the under- eration or a substantial portion of its duction will be reduced proportion- lying legislation directs. operation outside the United States. It ately as a result of the haircut. My ex- It seems to me to be a much better now earns a profit, instead of $30, of ample, however, does not assume an af- approach to link the benefit to jobs $45. filiate of the taxpayer is conducting rather than to link the benefit to prof- Under the general rule, the manufac- the offshore activity. In fact, it as- its, and one which has a much greater turers’ deduction would be 9 percent of sumes what is the predominant reality, likelihood of achieving the goal of cre- $45, which would be $4.05. However, that manufacturing businesses inside ating jobs in the United States. there is this separate limitation that the United States contract with manu- A fourth goal of this legislation, and you cannot have a deduction that is facturers outside the United States to one I have been very interested in, is more than half your U.S. wages. In this provide component parts. So there is the simplification of the Tax Code. instance, U.S. wages for manufacturing no affiliated relationship other than a Several years ago I suggested to the Fi- are $5, other wages paid in the United contract between the U.S. manufac- nance Committee attempting to sim- States are $3, for a total of $8; 50 per- turer and the foreign producer of the plify the United States Tax Code, all cent of $8 is $4. So the firm would get products. The haircut—although it is 17,000 pages of it, at one time is a task a $4 tax deduction as a result of this widely cited as a means by which these no one has the life expectancy, nor do procedure. kinds of abuses will be restrained—does their children nor probably their The result is this: As a result of mov- nothing to protect the job of unaffili- grandchildren, to see through to ac- ing significant parts of its operation ated U.S. suppliers. complishment. Therefore, we ought to outside the United States, this firm As I mentioned earlier, this new in- break down the Tax Code into its con- was able to qualify for a greater tax incentive will reduce the revenues of the stituent parts and try to simplify each centive under this bill than they would Federal Government by $65 billion over part at a time, in a rational, sequenced if they had kept their operation in the the next 10 years and will have the per- basis. I further suggested these inter- United States. They get a $2.70 deduc- verse effect of actually creating yet an- national tax rules would be a good tion by keeping the operation in the other incentive to move jobs out of the place to start. United States; they get a $4 deduction United States. I am pleased to say under the leader- by moving it offshore. As my examples indicate, I don’t ship of Chairman GRASSLEY and Rank- Some of the sponsors of this legisla- think this is a piece of legislation that ing Member BAUCUS, we started on that tion may argue there is another hair- can be defended as spending American path. The Finance Committee has es- cut in these limitations and that is be- taxpayers’ dollars in the most efficient tablished a working group to study our cause a firm cannot qualify for the de- manner possible to create jobs in international tax rules with the goal of duction unless the goods are produced America. There is a better approach. simplifying. This product is one of the ‘‘in whole or in significant part by the To provide the most effective tax in- results of that effort at simplification. taxpayer within the United States.’’ centive for job creation, we should link However, I suggest this legislation

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.054 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4877 misses the mark by a wide range in from biomass. That lowers Federal tax The Senator from Nevada. terms of simplifying the income tax revenues by $4.2 billion over 10 years. CHAIN OF COMMAND law. In fact, it would add another 378 These additional provisions have ob- Mr. REID. Mr. President, the Pre- pages to the income tax law. We are viously expanded the cost of the bill siding Officer stands for many things, starting with the goal of simplification and the purpose of the bill. So the but, in my mind, one of the things you and we are substantially increasing the amendment I have offered would do es- stand for is what is good about the quantity and the complexity of the in- sentially the following: United States military: A person who come tax code. One, it would repeal ETI. That is the put himself in harm’s way, with his Goal No. 5 is to minimize extraneous issue that brought us here in the first brother, and has created a story that is tax matters that detract from the pur- place. Second, it would repeal the intriguing and interesting and shows pose of this legislation. We are going to changes in international tax law, many the bravery of the Presiding Officer in spend $170 billion over 10 years to cre- of which will give further incentives to a time of crisis. ate jobs in America. We ought to be moving jobs offshore. Third, it will re- Mr. President, you are the role model concerned we are spending that $170 peal most of the targeted tax cuts. It for the troops we have in Iraq today. billion for that purpose and spending it will then take the money that has been Our men and women there are fighting as effectively as possible. saved from the ETI, from not adopting valiantly, and each day find themselves In an effort to conclude action on the 9-percent corporate tax deduction, in harm’s way, in many different ave- this legislation and secure the max- and from the individual items, and use nues. imum number of votes, there has been it to finance a serious effort at reduc- I came to the Senate floor this morn- an open encouragement to Senators to ing the payroll tax cost to the em- ing and talked about how I felt—this file amendments to this bill on smaller ployer and, thereby, reducing a signifi- Senator—on last Thursday I had been tax changes they would like to see cant disincentive to maintaining and misled and not treated fairly. We had a adopted. I am confident many of these hiring people in jobs in America. briefing up in 407, and we had the Sec- are worthy and could be supported on I close by describing the choices we retary of Defense there. As I indicated their merits. But we are never going to are making in this legislation. We are this morning, we had enough brass to have a discussion of their merits be- going to spend $170 billion over 10 fill a brass band. We had four-star gen- cause now they are buried in two so- years, or rounded to $17 billion per erals. We had the Chairman of the called managers’ amendments inside year. What could we do with $17 billion Joint Chiefs of Staff. I do not want all if we did not use it in a targeted and ef- this legislation. Many of them have the blame focused on Secretary Rums- fective means to create jobs for U.S. relatively little or zero relationship to feld. I feel those military officers men and women? creating jobs in the United States. should have told Democratic and Re- Let me mention a few of those. There Well, $17 billion would reduce this publican Senators last Thursday what is a tax break for Oldsmobile dealers. I year’s projected Federal deficit by was going to break on ‘‘60 Minutes’’ am certain they are facing some dis- about 4 percent, not an insignificant that night. I feel terribly misled and tress as General Motors canceled that amount. The $17 billion would fully disappointed in their not doing that. line of Oldsmobiles. Does it deserve to fund No Child Left Behind, plus it I say that because by their not tell- be in a JOBS bill and carry a cost of would fund veterans health care and ing us what was going to come out— $189 million over 10 years? the FIRE and SAFER grant programs There is capital gains relief for own- that provide critical assistance to our certainly all or most of them knew ers of horses. I assume that is good for Nation’s first responders. All of those something was going to come out; and the owners, and may be good for the could be purchased for $17 billion. if they did not know, they should have horses. It costs $64 million over 10 Mr. President, $17 billion would be known—each Senator was blindsided. Now, Mr. President, the reason I years. more than we spend annually on Pell There is a tax break for the makers grants, to assure access to higher edu- mentioned you as a role model for the of distilled spirits. That might make cation for our young people. troops in Iraq, Afghanistan, and around some of our people happier, but wheth- Now more than ever, we need to the rest of the world is virtually every er it will get them a job is less certain. make sure the money we spend will man and woman serving in the mili- That costs us $484 million over 10 achieve the results we seek. I have set tary does the right thing. Obviously, years. forth the reasons why I do not believe from the photographs and information There is a tax-exempt bond proposal the incentives in the underlying bill we have, some of them did not. But I do for purchase of forest land. I happen to will protect or will promote U.S. jobs. not want just the enlisted men, so to think purchase of forest land is prob- The proposals in the underlying bill speak, to be the scapegoats for what ably a good idea, but is it the place to target profits in the hopes that profits has obviously transpired. There is a spend $252 million over 10 years to cre- will trickle down and create jobs. chain of command, and there is respon- ate jobs in America? The amendment Senator DAYTON and sibility in that chain of command. There are tax credits for costs in- I have offered is a better approach be- I am terribly disappointed what went curred for railroad track maintenance. cause it specifically targets U.S. jobs. on in 407 with the chain of command, Again, it may be a good idea, but it is Firms will get a bigger tax break to and so I do not want my remarks at all questionable as to whether $492 million the extent they employ more U.S. to reflect adversely on the fighting we will spend over the next 10 years workers. Since U.S. jobs are the goal of men and women of this country—the will create a requisite number of Amer- this legislation—U.S. JOBS is the title Pat Tillmans of our country. There are ican jobs. of this legislation—our approach lots of Pat Tillmans. We admire and re- Then there are tax breaks for should be adopted. The working men spect him so much because he gave up amounts received under the Student and women of America will appreciate a multimillion-dollar contract to go Loan Repayment Program for the Na- this action by the Senate. fight in the war. But lots of other peo- tional Health Service Corps. That is $54 The PRESIDING OFFICER. The Sen- ple gave up lots of things to go fight in million over 10 years. ator from Nevada. these wars, and there are lots of Pat In the spirit of full disclosure, the Mr. REID. Mr. President, how much Tillmans. I admire him and his family bill includes proposals which myself time is left under Senator GRAHAM’s and his brother, who went in with him, and my staff have worked with the Fi- amendment on this side? as your brother went in with you. nance Committee to include in this The PRESIDING OFFICER. On your So, Mr. President, I hope the chain of legislation. One such proposal delays side, 16 minutes 40 seconds. command understands their responsi- the implementation of regulations gov- Mr. REID. Mr. President, I will claim bility and does not try to pass the buck erning the exclusion of income from the 5 minutes we have under morning off on these people who needed, obvi- the international operation of ships business. It is all part of the order of ously, supervision and control. and aircraft. That has an $8 million the Senate already. Then I will yield to I think also we have to take a look at cost over 10 years. my friend from Minnesota. what is going on in Iraq today with the Another provision is the extension of The PRESIDING OFFICER. Without so-called security guards who are being the credit for producing electricity objection, it is so ordered. hired, because it is obvious some wrong

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.057 S05PT1 S4878 CONGRESSIONAL RECORD — SENATE May 5, 2004 took place there as a result of what American businesses and investors for That is something we obviously should they did. their foreign operations. At a time do and will do. There are existing fees I appreciate my friend from Min- when we say we are concerned about now, and we will extend them over the nesota allowing me to speak prior to losing American jobs to foreign busi- life of the 10 years that this is scored him. The Senator now has 16 minutes nesses,—and we should be concerned; for budget purposes. We haven’t done it under the order. we should be alarmed—this bill would yet. But that is a continuation of the The PRESIDING OFFICER. The Sen- make it more profitable and thus more status quo; yet that is being counted as ator from Minnesota. appealing to expand foreign businesses if it were new tax revenue for the pur- Mr. DAYTON. Mr. President, I cer- instead of ones in the United States. poses of this bill to offset some of these tainly support the statement of the Why in the world would we want to do new tax breaks for foreign subsidiaries distinguished Senator from Nevada. that? Most of these provisions are rich and operations. AMENDMENT NO. 3112 man’s tax avoidance games and gim- We are adding vaccines for hepatitis Mr. President, we are referring to the micks. A to the list of taxable vaccines, $87 million over 10 years. I don’t myself JOBS Act, and to Senator GRAHAM’s For example, U.S. businesses or indi- excellent amendment. I am very proud viduals can claim a tax credit under understand the reason for that. We are limiting charitable contribu- to be a cosponsor and to have this op- U.S. taxes equal to any foreign taxes tions of ‘‘patents or similar property’’ portunity to speak on behalf of the they have paid. A tax credit is a dollar- to their cost basis to the donor. ‘‘Simi- Graham-Dayton amendment. As Sen- for-dollar reduction in the amount of lar property’’ is open to interpretation, ator GRAHAM pointed out to our col- the tax that is owed. So this arrange- but it requires some kind of fairly leagues, this bill is called the JOBS ment means the U.S. Treasury gets broad interpretation because the rev- Act. In fact, in the House, they call it paid last. If some company here owes the French Government $100 in taxes enue gains expected over the decade the American JOBS Act because, as we are $4 billion. These are charitable con- all know, we are missing a lot of jobs and the U.S. Government $150 in taxes, the company pays the French Govern- tributions. So if an artist, for example, in America today. Over 8 million Amer- paints a painting, a well-known artist, ment the $100 it owes and it only pays icans are out of work. Many have ex- the cost basis of that actual picture— the U.S. Government $50. If foreign hausted their unemployment benefits the materials, the canvas and the taxes were treated as a business ex- because they cannot find work any- paints and the like—the actual cost of pense, like any other cost of doing where. it is quite low. The value of it might be business, the loss to the U.S. Treasury This amendment offered by Senator worth tens of thousands, hundreds of would be far less severe. But this bill GRAHAM would make the bill live up to thousands, even millions of dollars. goes even further in the other direc- its name. You could call it the ‘‘Put The cost basis, if it is just the mate- tion. This would allow the company or the Jobs Into the JOBS Act’’ amend- rials, is going to be a huge disincentive business or the individual to be able to ment. It also would put the truth into for people who are in that situation to that title. Because the truth now is use those foreign tax credits for 20 donate their creations, patents to non- most of this bill has nothing to do with years into the future in order to reduce profit charitable organizations. We are providing jobs—at least not American their future U.S. taxes owed. going to gain $4 billion from doing Most U.S. citizens can’t do that. A jobs. It provides additional tax cuts to that. already profitable corporations, wheth- farmer with additional revenues, prof- Another of the revenue gains repeals er they provide jobs or not. its in a good year, a salesman with the 10 percent rehabilitation credit for According to a recent Washington high sales and, therefore, high commis- nonhistoric buildings. That is going to Post article on the bill, it is: sions has to pay higher taxes on his or generate $1 billion in revenues. In Min- One of the most complex, special-interest her income for that year. They can’t fi- nesota, there aren’t many buildings old riddled corporate tax bills in years, law- nagle their incomes and expenses over enough to be ‘‘historic,’’ but rehabilita- makers, Senate aides, and tax lobbyists say. the next 20 years to lower their tax lition of other buildings that are dilapi- The 930 page epic is packed with $170 billion abilities. As I said, these are rich man’s dated is certainly a worthwhile public in tax cuts aimed at cruise ship operators, games and gimmicks. purpose. Yet we are incorporating foreign dog-race gamblers, NASCAR track The other foreign tax breaks are owners, bow-and-arrow makers, and Olds- these kinds of tax increases to offset pretty much the same. They are just tax breaks we are providing for foreign mobile dealers, to name a few. more ways to avoid paying U.S. taxes Continuing on to quote the article: business operations. That doesn’t make owed on U.S. profits or income, more any sense to me at all. Even one of the tax lobbyists involved in special treatment for businesses in Senator GRAHAM has discussed very drafting it conceded that the bill ‘‘has risen other countries, employing workers in to a new level of sleaze.’’ well—and I won’t repeat his com- those other countries, jobs, many of ments—the advantages of this amend- I think that is quite instructive in its which used to be here in this country ment over the existing bill for creating statement: ‘‘even one of the tax lobby- for American workers. We are going to American jobs, jobs in the United ists involved in drafting it.’’ I am not reward those actions even more than States for American workers. That is on the Senate Finance Committee. I we have already, at a cost of $39 billion what we need. That is what the bill am told that committee, as the Appro- to the U.S. Treasury over the next 10 purports to be. That is what we ought priations Committee, requires many years, at a time when the Federal Gov- to be doing. years of seniority before someone can ernment is running annual deficits of This bill, as it relates to domestic gain access to it, so I don’t know what over $500 billion. manufacturers, is a general tax reduc- goes on in the drafting of legislation. This bill purports to be revenue neu- tion. It requires them to do nothing in But when the article says tax lobbyists tral. In other words, the tax increases return. That is a lot better than pro- were involved in drafting the bill that equal or offset the tax reductions. Well, viding tax breaks to foreign operations is before us or, as my colleague Sen- yes and no. As usual around here, with and subsidiaries and the investors in ator GRAHAM said, drafting the addi- all the smart Members and staffs, and them, but it is not good enough. Amer- tions to this bill that are not before us, I guess the tax lobbyists who write ican businesses reported record profits that are in the so-called managers’ their special interest tax cuts into the in the fourth quarter of last year, $76 amendments which are not disclosed to bill, some curious revenue increases billion in the quarter, above the pre- those of us voting, which are not dis- are cited. Some are actually good pub- vious record profits of $70 billion in the closed to the American people, then lic policy—the elimination of tax shel- third quarter of last year. Overall cor- there is something pretty putrid in ters, offshore and domestic—some are porate profits were up 20 percent last that process. questionable. Some of the so-called year from the year before. Now we are In fact, the provisions the article revenue gains are simply downright cu- coming out of a recession. mentions, questionable as they are, are rious. That is great news for America. That not even the worst provisions in the For example, over $17 billion of rev- is not uniform across the board, but legislation. This bill contains over $39 enue gains is cited from extending cus- that shows a very healthy profit pic- billion worth of tax advantages to toms user fees over the next 10 years. ture for most American businesses and

VerDate May 04 2004 00:32 May 06, 2004 Jkt 029060 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.060 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4879 one that, unfortunately, has not trans- know a lot about highways last year. I ductivity in manufacturing. When peo- lated into the job increases we would visited on two or three occasions ple can get machines to do work that expect to see, given that kind of profit- Ottumwa, IA, which is in the southeast individuals do, obviously, that en- ability and coming out of a recession corner of the State. Senator GRASSLEY hances productivity and it is done for and employment contraction. That is knows the statistics a lot better than I the sole purpose of being more accurate what this bill should be focused on. do. If I misstate them, he can correct and cutting down on the number of That is what the Graham amendment me. jobs—also, not to denigrate produc- does, which is why I am glad to be a co- By the end of World War II, Ottumwa tivity, because productivity being en- sponsor. It provides incentive and a re- had a population of more than 30,000 hanced is the only way in America or ward for providing American jobs. If do people, which was a combination of a anyplace else in the world you are you that, you get the benefit. If you strong agricultural economy and a going to increase the standard of living don’t do that, you don’t get the benefit growing number of industrial plants, of Americans. because you don’t need it right now. many of which provided parts for other When you increase productivity, peo- Between 1996 and 2000, 71 percent of industries, such as a company that pro- ple become more productive, they earn the foreign companies doing business vides parts for Deere Tractor, another more money, and their standard of liv- in the United States reported no U.S. Iowa firm. In 2003, the population had ing goes up. We want that for every- tax liability at all. Sixty-one percent slipped to below 25,000, and much of body. So enhancing productivity is of U.S.-controlled corporations during that job loss was due to the fact those very basic to the increasing of the that time, those 5 years from 1996 to plants of 150 to 500 people had picked standard of living. 2000, also reported no U.S. tax liability. up and left. Maybe they left for Mexico Now, there are fewer jobs in manu- In the year 2000, 82 percent of large or for China, but they were not in facturing today than there have ever U.S. corporations reported a U.S. tax Ottumwa, IA, anymore. been. But manufacturing is still a very liability of less than 5 percent of their When you talked to people in that major component of our economy. It is income; 76 percent of large foreign-con- town, whether it was the clerk reg- still around 15, 16 percent of our econ- trolled companies reported U.S. tax li- istering you into the motel or the per- omy, I believe. If you go back 40 or 50 ability of less than 5 percent of their son who was bringing you your dinner, years, it was probably 20 or 21 percent income. These large corporations are you heard a lot about the pain that was of the economy. But there was a period not overtaxed. Some of them are not coming from that loss of a job base, the of time when we lost 2 million jobs in taxed at all. Now, with these foreign loss of the future, and the loss of the manufacturing during the 1980s, and we credits that extend forward for 20 children of Ottumwa, as they began to still had manufacturing as 20 percent years, not only will they not pay taxes, question whether they had a future of the economy. So manufacturing is they will be owed rebates. there. very important, but it is maintaining This has to be the theater of the ab- I don’t believe it is the role of the its importance with less jobs doing the surd. We are giving away tax revenues Government to stand up and hold back work that needs to be done to manufac- for outyears—especially from 2008 to the tide of normal economic flows. The ture whatever we want in America. 2013, which is where this bill is fact is, capitalism is a very aggressive Now, several times on this issue I backloaded—that we don’t have, that form of economy. Companies go out of have quoted former Secretary of Labor we are going to be short of to do the business; companies come into busi- Reich from the Clinton administration. things we have committed to do, that ness; companies make decisions as to He is now a professor at Harvard, I be- will add up and extend beyond that to where they can be the most successful. lieve. He wrote on December 26 of last a point in time that it will add to the I don’t believe we should socialize our year in the Wall Street Journal about crisis we are going to face in the fol- economy in an attempt to avoid that. the problems of manufacturing and de- lowing decade fiscally. We are doing all We are not talking about affirmative clining employment in manufacturing. that for no reason whatsoever, except socialization. We are talking about, Secretary Reich pointed out that, yes, that someone said the tax lobbyists through the Tax Code, what I would America has 10-percent fewer jobs in have had their field day and they got call incentivized socialization. We are manufacturing now than they did in this riddled into the bill. trying to affect the decision that com- the previous benchmark. But he also We are trying to get it out so it can pany in Ottumwa makes by saying it pointed out during that same period of be put to use for the American work- will be more profitable for them to time, whereas the United States lost 10 ers, and especially those who want to take these 250 jobs and move them out percent of their manufacturing jobs, be American workers, who don’t have of the United States. China had lost 15 percent of their jobs jobs and have paid taxes on what they This legislation, I am sad to say, in manufacturing. So you see, even have earned, whatever amount that adds to those incentives. I don’t think though we are legitimately concerned may be, and are looking for a job and that is what we should do in a bill that about outsourcing of manufacturing will pay taxes on that. We should not has as its title ‘‘JOBS.’’ going to China, we are also seeing be getting into more tax avoidance The PRESIDING OFFICER. Who China finding ways to be more efficient schemes to send jobs overseas. That is yields time? in their manufacturing. what the Graham amendment would Mr. GRASSLEY. Mr. President, be- It is quite obvious, if you look at this prevent. fore I respond in a specific way to the historically, that this is progress: en- I yield the floor. amendment before us, everything Sen- hancing productivity to raise wages to Mr. GRAHAM of Florida. How much ator GRAHAM said about Ottumwa, IA, raise the standard of living. time do I have remaining? is accurate, I believe. Obviously, when This is not the era of Luddites, when The PRESIDING OFFICER (Mr. anyone in America loses a job, it is a people are going to go into factories COLEMAN). The Senator has 3 minutes very personal hurt to that individual, and smash machinery because they 20 seconds. particularly if they liked their job and think it is taking jobs away from peo- Mr. GRAHAM of Florida. First, I if they had been in that job for a long ple. If the Luddite philosophy were le- want to clarify a statement I made at period of time, and particularly if they gitimate, we would still be making the the conclusion of my remarks. The in- were older people and not looking to common pin by hand. dividual tax items I referred to are in- retrain or even spend the time and in- We are producing by machine so we cluded in a managers’ amendment. vestment in retraining. can enhance productivity to enhance They are not part of the amendment So considering those personal hurts, wages to enhance the standard of liv- that I have offered as a replacement es- and not without proper regard for the ing. The American people would not be sentially for the legislation. They are economic consequences of people hurt satisfied today with 96 percent of the not dealt with. by being laid off, it is a simple matter, American population being on farms, Mr. President, we have a very serious not only in the United States but all as it was in 1790 when this country was issue. I see that we have been joined by over the world, that there are less jobs a brand new country. Today about 2 the chairman of the Finance Com- in manufacturing than previously. It is percent of the people in the United mittee, Senator GRASSLEY. I got to mostly because of the enhanced pro- States are producing the food for the

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.062 S05PT1 S4880 CONGRESSIONAL RECORD — SENATE May 5, 2004 other 98 percent, and each farmer pro- down to 32 percent. One of the reasons tax for manufacturing, not across the duces for 145 people. The United States we lose jobs in manufacturing to the board. The chart behind me shows the exports about 40 percent of its food and global competition is that our cost to corporate tax rates on manufacturing farm products, because we cannot con- capital is very high in relationship to income for the European Union and for sume it domestically. our global competition. So in reducing the United States. I thought this chart Whether it is in manufacturing or the corporate tax by 3 percent and would be interesting for comparison whether it is in farming, if 5 percent of doing it in a revenue-neutral way so it since the United States and the Euro- the market is the American people, does not worsen the deficit, we have an pean Union are both highly developed then we are not going to have a very opportunity to create jobs in manufac- wage and skilled countries. high standard of living. The other 95 turing, make what jobs we have more This chart shows that on average the percent of the market are the people secure, and continue to enhance the European Union tax rate on manufac- outside the United States of America. productivity of workers in America. turing is 21 percent, while that in the If we still had 96 percent of the people I hope we remember that we do have United States is 24 percent. That is in America involved in farming, we a rapidly changing society. Our people averages. So do not get that confused would have a subsistence level of liveli- welcome an enhanced standard of liv- with the 35 down to the 32 I am talking hood. ing that comes from increased wages, about. We have to accept the fact that every which comes from increased produc- It is necessary to pass this 3-point re- month in America, 7 million jobs go tivity. And they want that to continue. duction in corporate tax rates which is out of existence and 7 million new jobs That is why I am concerned about the in this JOBS bill to keep the United come into existence. In that process, amendment of the Senator from Flor- States even with these European coun- people are more productive, make ida that is before us. That is why I am tries. So being a believer that competi- higher wages, and have a higher stand- going to ask my colleagues to consider tiveness breeds job growth, I fail to see ard of living, and not just for some of my views on this amendment and, how a wage credit in lieu of a tax cut our people but for all of our people. hopefully, disagree with Senator can produce more jobs if U.S. manufac- The only people in America who GRAHAM and defeat the amendment and turers remain burdened with a signifi- might not have a higher standard of move on and get this bill passed. That cantly higher rate of tax than their living are those we have kept down, 5-percent tax put on in March, in- main competitors. and this Congress is responsible for creased to 6 percent in April, and it is After arriving on the Senate floor, I keeping welfare recipients down, keep- 7 percent now in May. It is going to be received a copy of a ‘‘dear colleague’’ ing them out of mind, out of sight to 12 percent by election time. Are we letter from Senator GRAHAM of Florida the edge of society. But we established going to continue to have an environ- and Senator DAYTON of Minnesota. a principle of welfare reform in 1996 to ment where people can be laid off? That letter says production outsourced Senator GRAHAM may have an idea move people from the edge of society in to a foreign country qualifies for man- that is legitimate to discuss, but right welfare to the world of work, to the ufacturing deduction. now in the environment we are in, in mainstream of American society, be- That is not right. Our bill does not do which there is an increasing burden put cause it is in the world of work where that. The 3-point rate cut only applies on our exports to Europe, it seems to they have opportunities for enhanced to income from U.S.-based manufac- me we ought to forgo this discussion, productivity, for enhanced wages that turing. It does not apply to foreign which ought to come at another time will raise their standard of living. Ex- manufacturing of any type. So the fun- when Senator GRAHAM’s amendment cept for welfare recipients, people in damental premise of the Graham could fit in. We need to get this legisla- the world of work are producing more amendment is in error. tion passed. This legislation is a bipar- now than before to enhance their Senator GRAHAM also implies con- tisan bill. Not often do we get this bi- standard of living. tract manufacturing qualifies for the partisan cooperation in the Senate. We It seems to me that when we have 7 manufacturing deduction. This is not ought to take it and run with it. million jobs going out of existence 1 His amendment proposes to enact a correct. We specifically rejected allow- month and 7 million new jobs coming new wage tax credit and pay for it by ing a company to take a deduction for into existence in the same month, it striking the manufacturing rate cut— manufacturing that someone else does says better than anything I can say that cut from 35 percent down to 32 for them, regardless of whether the about how rapidly our economy is percent about which I just spoke—and contract manufacturer is located in the changing, much more rapidly today he would also strike all of the inter- United States or offshore. than ever in the history of our country. national provisions that are in this If we allowed contract manufacturing It might even change more rapidly in bill, international provisions to which to qualify, it would be a double dip. We the future. we try to bring a more rational ap- were lobbied on this and we rejected For people who abhor the fact that proach to the taxation of American that. So, again, a fundamental assump- we are losing manufacturing jobs, then business in international trade. tion of the amendment is in error. you have to ask, what do we do to Evidently, the Senator from Florida The Senator from Florida also criti- maintain those manufacturing jobs? believes a payroll tax credit that re- cizes the wage limitation. This limit is The basic bill we are dealing with, the duces employer contributions to the there to ensure manufacturing jobs are jobs and manufacturing bill, tries to do Social Security trust fund will create created. If they do not grow jobs, then it two ways: one, to staunch the bleed- more jobs than a manufacturing rate their manufacturing deduction is di- ing in jobs leaving manufacturing. It is cut. Payroll tax credits have long been minished. If their assembly lines are enhanced now because we have a Euro- controversial. I always thought market filled with robots instead of people, pean tax on our exports to Europe so demand and the ability to compete in then the deduction is limited. So if one that our manufacturers cannot be com- that market is what created jobs. If an wants more hiring, this is the way to petitive in Europe and, hence, people employer sees an opportunity and goes get it done. That is what the wage are being laid off. after that opportunity, then they will limit accomplishes. That European tax on our exports is add employees to meet demand, but I All of the fundamentals underlying legal and started in March. We started do not see how a tax credit creates his amendment are in error. I think debating this bill in March. We could market opportunity. they are a mischaracterization of the have had this bill passed in March. We I thought that tax relief, tax reduc- underlying bill. could have had the European tax be- tions, and the lower burden imposed by There is, however, an even more dis- hind us because once we pass this legis- having the Government as a silent turbing aspect of the amendment be- lation, there is no legal basis for their business partner is what enhances a fore us. Senators have heard me come putting the tax on our exports to their company’s competitiveness, which then to the floor many times to talk about country. in turn would lead to more the bipartisan development of the In the same vein, the jobs a manufac- opportunity. JOBS bill. Its construction began when turing bill will reduce the level of tax- This JOBS bill before us now con- Senator BAUCUS was chairman of the ation on corporations from 35 percent tains a 3-point reduction in corporate Senate Finance Committee. Senator

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.065 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4881 BAUCUS held hearings in July 2002 to expect us to do on such an important There was no World Trade Organiza- address the FSC/ETI controversy with- issue as manufacturing jobs and our tion back 20 years ago. Times have in the World Trade Organization. national economic health. changed so much. But the World Trade During this hearing, Senator GRAHAM As a practical matter, the only way Organization has ruled that our tax re- of Florida, now on the Senate floor to get a bill through this Senate is to gime, which gives our American com- with us, and Senator HATCH as well, ex- do it in a bipartisan way. But these ef- panies that export a bit of a break, is pressed concern about how our inter- forts are apparently not enough or we illegal. Other countries have their tax national tax laws were impairing the would not have this amendment before regimes which give their companies competitiveness of U.S. companies. us. breaks for their exports, and they are After some discussion on forming a I hope we can defeat this amendment legal. But we set up ours in a way that, blue ribbon commission to study this and move on because Senator BAUCUS regrettably, does not pass muster with problem, we all decided decisive action and I have a real sense of optimism the WTO. was more important than setting up a that this week there is very definitely There are a lot of reasons that is the commission. an optimistic point of view, particu- case. Frankly, I think we Americans During that hearing, Chairman BAU- larly from the other side, that this leg- were a little naive. A number of years CUS formed an international tax work- islation needs to be passed and that ago we agreed to a tax regime where ing group that was joined by Senator considering the fact we spent consider- companies in other countries could re- GRAHAM, Senator HATCH, and this Sen- able time on it in March, and some bate their value-added tax for exports; ator. This bipartisan Finance Com- time on it in April, and we have had whereas because we have a different mittee working group formed the basis these European taxes going on our ex- tax system, because we did not have a for the bill that is now before us. ports, growing 1 percent a month. It is value-added tax system and we tried to There is not one provision in this a bad situation. set up a different way to help our com- JOBS bill that was not agreed to by We hope the optimism we sensed yes- panies export, it turned out our way both Republicans and Democrats, not terday will be repeated today, and one became illegal under the general rules one. But today a member of that bipar- way to help us along is to help us de- of WTO. That happened a long time tisan working group offers an amend- feat this amendment. ago. We cannot recreate history. But ment that would destroy this bipar- I yield the floor. basically that is why we are here tisan consensus on the provisions of The PRESIDING OFFICER (Mr. today. Our tax regime which gives our the JOBS bill. SUNUNU). Who yields time? Does the companies a bit of a tax break has been Why? The JOBS bill includes the Senator from Iowa yield time to the declared illegal under WTO. international tax simplification meas- Senator from Montana? We have an obligation now. We can’t ures that were recommended in the Mr. GRASSLEY. I yield to the Sen- wait until the end of the year. We have Joint Committee on Taxation April ator from Montana whatever time he an obligation now to replace that ille- 2001 report on tax simplification. There might consume. I have not asked other gal regime with something that is was no constituency for these sim- people on my side if they want time. legal. We have an obligation now be- plifications. No governmental affairs Mr. BAUCUS. I will not consume it cause, as has been stated, the European representative came to our office to ad- all. Union, pursuant to rules under the vocate for them. Mr. GRASSLEY. I yield whatever WTO, has begun to tax American ex- No, the person who asked for them time the Senator may consume. ports to Europe. With each passing was the Senator from Florida. Senator Mr. BAUCUS. I appreciate that. month that tax becomes greater and GRAHAM emphasized the desire to in- Mr. President, I have a couple of greater. It gets up to 17 percent and clude these simplification measures in points. I very much appreciate the ef- that gets pretty severe after a while. the bill, and we did that. The Senator forts of the Senator from Florida in the So that is why we are here. from Florida preferred simplification amendment he has offered. He clearly The Finance Committee spent a lot over restructuring and wanted the em- is trying to address a problem that is of time trying to figure out what the phasis of our bill to be on foreign tax very acute in this country, which is job basic replacement legislation should credit reforms. We honored his views loss. He is also attempting to address it be—what is the best way to do this; because that is what our bill does in in a way a good number of Senators what is the best way to help American the bipartisan spirit of this legislation. and a good number of people think is a companies produce jobs, make prod- That Senator expressed concern way to do it, and that is by making the ucts, and also produce jobs in a way about the 90-percent foreign tax credit cost of employment to an employer that is legal under the WTO regime. limit on AMT, the alternative min- less expensive. We worked hard at it, as I said. We imum tax, and he wanted the 10–50 bas- In our country, it is regrettable, but talked to lots of different people ket problems solved. We did both of we have come to the point where very around the country. We had several these things in this bill. often payroll taxes are the greatest ex- meetings in the Finance Committee The Senator from Florida even pense an employee has. They pay more about this issue. We had a big, long, sought reductions on a number of for- in payroll taxes, because the employ- open markup. We came up with a way eign tax credit baskets, but the worker’s half is imputed to the employee, which we think, by and large, helps ing group decided that was too signifi- than income taxes. American companies quite well. What cant of an international change to be We have to work hard to try to find is it? It is very simple. It is a 9-percent accepted by the full Senate. I hope ways so the cost of employment to em- deduction for production by U.S. com- when we vote on this amendment the ployers is a little less expensive than panies—in the United States, that is. If Senator will back up our decision on at present. The Senator from Florida is they produce the product in the United that because this bill was reported out trying to address that. States, they get a 9-percent cost of proof committee on a bipartisan 19-to-2 I might say, though, his amendment duction benefit for that production. It vote. The Senator from Florida voted strikes over 60 percent of the bill. This not only applies to big corporations, for this bill in the Finance Committee. is a large bill. We don’t have many tax standard C corporations, it applies to Today, these priorities are no longer bills that come around. smaller corporations generally known important. To me, this is very con- I remember years ago we used to as S corporations, partnerships, sole fusing and it is quite a difficult devel- have a tax bill at the end of the year. proprietorships, as well as to any orga- opment for me to understand. Senator Long was then chairman of the nization that produces some product in As I have said before, we acted in the Finance Committee. He would wait the United States. best of faith to produce a bill that pro- until the end of the year. There would That is far better than the old regime tects American manufacturing jobs and be a lot of provisions and there would we are going to displace because the ensures our companies remain the be a good tax bill. I don’t think that is old regime, which gave benefits for ex- global competitors we want them to be. going to happen this year. This is be- ports, was not available to a lot of We did this in a fully bipartisan man- coming the major bill, and the reason farmers and ranchers and small ner. That is what the American people for that is very clear. businesspeople.

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.067 S05PT1 S4882 CONGRESSIONAL RECORD — SENATE May 5, 2004 So it is a good idea. Effectively, it advances in technology, particularly do not want to burden the employers. lowers the top corporate rate—if you communications technology. With so Now is not the time, nor the forum. He are paying 35 percent—by 3 percentage much information now digitized, so should bring that up at a later time. points, down to about 32 percent as much information now able to be sent The PRESIDING OFFICER. The Sen- your income taxes, corporate income over a broadband communications sys- ator from Iowa controls time. Only the taxes. But if you are a partnership or if tem, that is bringing us so much closer Senator from Iowa controls time. you are some other organization, your together. Mr. GRASSLEY. Mr. President, I taxes are also lowered because of the 9- We in the committee believed that in suggest the absence of a quorum. percent deduction for domestic manu- addition to helping domestic manufac- The PRESIDING OFFICER. The facturing. So it does help provide jobs. turers, as described, we should also clerk will call the roll. What else does it do? It gives the em- simplify a lot of the international pro- The legislative clerk proceeded to ployer who gets the benefit of this a visions, especially those where Amer- call the roll. Mr. BAUCUS. Mr. President, I ask choice. What is the best way for that ican companies are double taxed. The unanimous consent that the order for company to meet competition? What is theory of our system, our worldwide the quorum call be rescinded. the best way for that company to do system as opposed to—well, it is the The PRESIDING OFFICER. Without well? Whether it is a big company or same theory as other countries’ terri- objection, it is so ordered. small company, what is the best way? torial systems. But the theory of our Mr. BAUCUS. Mr. President, I ask Generally, most believe the manage- system is basically avoid double tax- consent all pending amendments be set ment of that company should have the ation of American companies. If an aside so the Senator from Colorado can choice of what works best for them. American company does business over- be recognized for the purpose of offer- That is why we said you don’t have to seas, clearly that other country—take ing an amendment, and I also ask con- use the money this way or have to use Germany, for example—wants to tax sent that the amendment of the Sen- the money that way. But in order to the American company’s production in ator from South Carolina, Mr. HOL- comply with the World Trade Organiza- Germany. But then that is an Amer- LINGS, also be the next amendment to tion rules, the only restriction, basi- ican company, so the American tax- be in order. cally, is it has to be produced in the payers have a right to think that com- Mr. REID. Mr. President, it is my un- United States, whether the product is pany should pay income taxes to Uncle derstanding Senator HOLLINGS would sold in the United States or whether it Sam, too. But we also want to avoid propose that amendment immediately is sold overseas. That was the one redouble taxation. following the votes on the two pending striction we had to apply to stay with- Basically, the idea in America is to amendments; is that right? in the WTO rules. give companies a tax credit on Amer- Mr. BAUCUS. I have no problem with We also took the opportunity to ad- ican taxes for the amount of the taxes that. That is my understanding. dress a growing concern that many they paid in the other country. That is The PRESIDING OFFICER. Without American companies face, particularly basically what we do. It is a com- objection, it is so ordered. the larger American companies, and plicated system, but it is one that by The Senator from Colorado. that is international competition. and large works pretty well. AMENDMENT NO. 3118 Other countries do a pretty good job of Then there are some other provisions (Purpose: To provide for a brownfields dem- taking care of their companies in the in this bill. There are energy tax provi- onstration program for qualified green sense that they want to make sure sions; also, a minority tax credit. What building and sustainable design projects, their companies are competitive in the is my main point? My main point is we and for other purposes) world. They do a pretty good job. So we have spent a lot of time in committee Mr. ALLARD. I ask consent to send have to ask ourselves: Americans, OK, on this bill. It passed the committee 19 an amendment to the desk, which will what do we do so as not to handicap to 2. Frankly, the two dissenters were take the slot reserved for the Miller- our American companies in inter- on the other side of the aisle. They had Schumer-Bond amendment. national operations and also in a way a different approach they thought The PRESIDING OFFICER. Without that is fair to small business, is fair to made much more sense to them. objection, it is so ordered. the budget, is fair to lots of other in- I suggest upfront, even though the Mr. ALLARD. I ask consent that the terests in our country; that is, other amendment has some frailties, this was pending amendment be temporarily considerations in addition to making never debated in the committee. It was laid aside, that I offer an amendment; sure our companies are as competitive never brought up in committee. It was following the reporting of my amend- as possible in the international arena. for very good reason, as the Senator ment, it be laid aside, and the Senate I don’t need to tell you how from Florida was engaged in another resume debate under the previous globalized our economy has become. It endeavor. He probably still is engaged order. is incredible how, each passing year, we to some degree. I very much appreciate The PRESIDING OFFICER. Without are so much more interconnected than that. He was not available and it was objection, it is so ordered. Mr. ALLARD. I ask that the clerk re- we were in previous years. not his fault this amendment was not Let me give one small example, the port amendment No. 3118. brought up. He was unable to be The legislative clerk read as follows: entrance of a good number of eastern present. It was not brought up in the The Senator from Colorado [Mr. ALLARD], countries into the European Union. Finance Committee. It was undebated for himself, Mr. SCHUMER, Mr. MILLER, Mrs. Half of the world’s population now is in in the Finance Committee. CLINTON, and Mr. CHAMBLISS, proposes an a buying consumer market. That is a His amendment is a huge change to amendment numbered 3118. major change. That is a profound the bill. It dramatically changes the Mr. ALLARD. I ask unanimous con- change. Companies worldwide, cer- bill. It changes the velocity of the bill. sent that the reading of the amend- tainly American companies, are going We have already addressed the issue ment be dispensed with. to have to compete in that market, as generally but not all of the content of The PRESIDING OFFICER. Without well as the American market. this amendment, which is drastically objection, it is so ordered. In addition, Mr. President, as you changing the bill. That is not an exag- (The amendment is printed in today’s well know, various other countries— geration. It is drastic. RECORD under ‘‘Text of Amendment.’’) whether it is the European Union or For that reason, respectfully I say to Mr. ALLARD. I yield the floor. even China—are entering into trade my good friend from Florida, this is AMENDMENT NO. 3112 agreements with other countries which not the time for the Senate to proceed The PRESIDING OFFICER. Who give a benefit to their companies and, with this amendment. There is a time yields time on the preceding amend- by definition, to the detriment of and place, in the committee, that we ment? American companies. It is an ex- should address his approach. That is, Mr. BAUCUS. Will the Senator yield tremely competitive world and becom- helping reduce the company payroll me an additional 5 minutes? ing even more so. It is more so because tax or helping employers so they do Mr. GRASSLEY. I yield the Senator of the additional markets, as I men- not pay quite so much in wages. We from Montana whatever time he might tioned, more so because of increased want to help people get wages but we consume.

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.071 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4883 Mr. BAUCUS. Mr. President, I have a income. That is two levels of tax on the new tax laws in foreign countries have couple more points about the Graham same income. The total tax could be, made the problem worse for American amendment. say, 75 percent or more. Without ad- companies. The JOBS bill extends the It is advisable the Senate not adopt justments such as the foreign tax cred- carryforward to limit the double tax- the amendment. His amendment would it which is in current U.S. law, these ation that occurs upon the expiration do two things. Basically, it strikes the two levels of taxation would make U.S. of foreign tax credits; that is, we are deduction for domestic manufacturing companies completely uncompetitive making it less likely that a U.S. com- and also strikes most of the inter- abroad. There is no question about pany will be subjected to double tax- national tax reform provisions. These that. ation. are very important changes that will Foreign tax credits, however, get the Each of these provisions simply cor- help Americans compete internation- company back to a single level tax and rects features of our international tax ally. make competition possible. Our foreign laws that frustrate the original pur- As I mentioned, the international tax credit rules are not perfect and pose of those laws. Again, the original provisions in the bill that would be double taxation still sometimes occurs. purpose was to avoid double taxation. stricken by the Senator’s amendment A prime example is the interest allo- The JOBS bill puts us back on track are designed to reduce double taxation cation provisions in the foreign tax with the original intent of our inter- of American companies. We want to do credit rules. national tax system. as much as we can to reduce double Let me give you an example. Take an So, as we all know, the international taxation of American companies. American company that pays $100 in provisions are a lot more complicated Let me give an example. Under cur- foreign taxes and $100 in U.S. taxes on than I have even begun to allude to, rent law, an American corporation that same income. That American but, very briefly, those are some of the would have to pay more to borrow company would generally claim a $100 provisions in the bill. They are correc- money to build a factory than foreign foreign tax credit to get back down to tions in the bill. They reduce double corporations would have to pay, even if a single layer of tax. But if that Amer- taxation, or eliminate it in many in- the factory is in the United States. ican company happened to take out a stances. It helps American companies This is because of the way we treat in- loan in the United States to finance a compete with foreign companies. That terest expenses and so-called interest project here in the United States, it means it is much more likely they will allocation. Essentially, we are chang- might be limited to an $80 or $90 for- be able to keep jobs in the United ing the interest allocation provision so eign tax credit—not because it paid States if they are able to compete more that a U.S. company with assets over- any less in foreign taxes, but because effectively. seas is not penalized, so long as the we treat it as if it were able to deduct Mr. President, for that reason, I urge borrowing is proportionate to the as- some of the interest on that U.S. loan we do not adopt this amendment. sets in each of the countries, which is to reduce its taxable foreign income, I suggest the absence of a quorum, on now not the case. That is, right now, even though it could not do so. That is behalf of the Senator from Iowa. American companies are penalized not right. The PRESIDING OFFICER. Without even if all their borrowing in the The rules are complicated, but the ef- objection, it is so ordered. United States is proportionate to fect is plain. If an American company The clerk will call the roll. worldwide borrowing. That is just not wants to borrow money and build a The bill clerk proceeded to call the fair. It is something other country’s plant in the United States, it faces an roll. companies do not have to put up with. uphill battle. It will pay higher inter- Mr. GRASSLEY. Mr. President, I ask That is one example of how our Tax est expenses than a comparable foreign unanimous consent that the order for Code currently puts American compa- company. Our interest allocation rules the quorum call be rescinded. nies at a disadvantage compared to in current law are making it easier for The PRESIDING OFFICER. Without other countries. its foreign competitors to build that objection, it is so ordered. The JOBS bill fixes a lot of these plant. But our bill fixes that, and it AMENDMENT NO. 3117 problems so Americans can compete on fixes other problems with our foreign Mr. GRASSLEY. Mr. President, I a level playing field, and it brings the tax credit rules. yield 3 minutes of my time to the Sen- Tax Code in compliance for the intent For example, companies that pay the ator from Nevada and 2 minutes to the to avoid double taxation. alternative minimum tax—the so- Senator from California, Mrs. BOXER. I say to my good friend from Florida called AMT—currently face limits on The PRESIDING OFFICER. The Sen- and to my colleagues in the Senate, the use of the AMT with respect to for- ator from Nevada. this is not the time, in my judgment, eign tax credits. Unlike non-alter- Mr. ENSIGN. Mr. President, in a few for that amendment. It has not been native minimum tax taxpayers, they minutes we are going to be voting on explored, debated, or brought up in are subjected to an artificial, com- the Breaux-Feinstein amendment. In committee. It is a huge change to a pletely arbitrary cap on the use of the underlying bill is an amendment very thought through bill. It should their foreign tax credits. It is 90. Arbi- that Senator BOXER and I worked on not be approved at this time. trarily limiting their foreign tax cred- last year. It was voted on in the Senate I take a couple of minutes while we its just makes these AMT taxpayers and had 75 affirmative votes, 25 nega- have the time to talk about some of pay double. The current AMT provi- tive votes. Seventy-five Senators said, the international provisions generally sions essentially, in many cases, result last year, it is a good idea for money in the JOBS bill. Let me state again in double taxation. The JOBS bill fixes that is sitting outside the country in why I think these provisions are good that, too. bank accounts—in businesses’ bank ac- policy and they help American compa- The JOBS bill also makes it less like- counts outside the United States—to nies. ly that a company’s foreign tax credits come back to the United States to cre- I will mention again the interest al- will expire unused. It is another prob- ate jobs and help the American econ- location provision. It is perhaps the lem: The foreign tax credits expire un- omy. most significant provision in the inter- used, and then the U.S. company could Right now, if companies bring that national tax title, both in terms of cost often be placed, in effect, in a position money back, they will have to pay the and the number of companies it would where it is subjected to double tax- difference between whatever that coun- help. The interest allocation provision ation. try charged and our 35-percent cor- is one of the many in the JOBS bill Currently, unused foreign tax credits porate tax rate. At the top rate, it is 35 that deals with foreign tax credits. Our can be carried over for 5 years. The percent they are paying. Therefore, foreign tax credit system is designed to original purpose of this carry-forward those companies are leaving that prevent taxpayers from paying tax rule was to prevent taxpayers from suf- money overseas. twice on the same income. When an fering double taxation because of tim- Well, with our piece of legislation, it American company earns money in ing differences between U.S. and for- is estimated that somewhere between France, the French tax that income eign tax laws. That purpose is not $400 billion and $600 billion will come and the United States also taxes that being served by our current law. Any back to the United States in the next

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.075 S05PT1 S4884 CONGRESSIONAL RECORD — SENATE May 5, 2004 12 months. That is a huge amount of do—please support us and defeat the The PRESIDING OFFICER. The Sen- money and will be a huge boost to the Breaux amendment. In my State alone ator from Oregon. American economy. Our economy is we are looking at 75,000 jobs. Mr. SMITH. Mr. President, this is a really starting to click on along, and Senator BREAUX is a very effective simple choice for our colleagues. It is we are really excited about that, but debater. He says: You are creating an- either vote for jobs or vote to limit the we can do more, and that is what we other Enron scandal. What is going to number of jobs we have the potential want to do. We can put more people to happen to this money? They are going to create. By independent studies, this work with our bill. to say they are using it for jobs, but inclusion, repatriation in the JOBS Independent estimates by Allen there is no penalty in place. bill, will create 660,000 jobs. It will re- Sinai, a well-respected economist, well The same penalty is in place as in the duce the deficit by $75 billion over 5 respected by Democrats and Repub- IRS Code. The CEO is going to sign the years, and it will bring to each of our licans, said this bill will create 660,000 plan. And if they don’t do the plan, local economies new energy. The jobs in the United States. Frankly, the they are in for trouble. That is clear. choice is to leave it offshore, doing lit- amendment by Senator BREAUX and This is not some plan that is going to tle good for the American people, or to Senator FEINSTEIN will gut this amend- be hatched in some accountant’s office. bring it here, to give companies for 1 ment. It is a poison pill. So we are en- It is right out there above the CEO’s year the chance that a walk-back with couraging all of our Senators to vote signature. their capital will reemploy the Amer- against it. I hope we defeat this and move on. It ican people and allow them to compete There are some important uses of is a good underlying bill. Let’s keep it with other multinational companies funds for job creation that Senator as it is. from other nations, which nations BREAUX’s amendment would stop the The PRESIDING OFFICER. Who allow them that kind of privilege. We money from being used for. yields time? are saying, let them do it for 1 year Those legitimate uses of funds in- The Senator from Louisiana. and we will create 660,000 jobs. clude improving health insurance for Mr. BREAUX. I understand there is 1 The PRESIDING OFFICER. Under employees and preventing investing in minute for the proponents of the the previous order, the question is on new small businesses. They could buy a Breaux-Feinstein amendment. agreeing to amendment No. 3117. new jet under the Breaux amendment, The PRESIDING OFFICER. There is Mr. BREAUX. Mr. President, I ask but they couldn’t pay for employees’ 11⁄2 minutes of debate time on the for the yeas and nays. travel expenses. This amendment Graham amendment. Under the pre- The PRESIDING OFFICER. Is there a makes no sense, and that is why we vious order, at the conclusion of debate sufficient second? should vote it down. on the Graham amendment, a vote will There appears to be a sufficient sec- The Senator from Louisiana is occur on the Breaux amendment, pre- ond. The clerk will call the roll. against the underlying bill. He is ceded by 2 minutes of debate equally The bill clerk called the roll. against the approach we took last year. divided. Mr. REID. I announce that the Sen- He voted against it. This is his effort to Mr. BREAUX. Regular order, Mr. ator from Massachusetts (Mr. KERRY) try to gut underlying legislation. That President. is necessarily absent. is why we are encouraging all Sen- The PRESIDING OFFICER. Is there The PRESIDING OFFICER. Are there ators, the 75 who voted for our legisla- objection to yielding back the remain- any other Senators in the Chamber de- tion last year, to vote against this ing balance of 1 minute on the Graham siring to vote? amendment to make sure that $400 to amendment? The result was announced—yeas 31, $600 billion does come back to the Without objection, time is yielded nays 68, as follows: United States and helps American back. [Rollcall Vote No. 81 Leg.] workers get jobs. Under the previous order, a vote will YEAS—31 Every night we hear on television now occur on the Breaux amendment, Akaka Durbin Leahy about outsourcing. This underlying bill preceded by 2 minutes of debate equal- Bingaman Edwards Levin is about insourcing. We are bringing ly divided. The Senator from Lou- Breaux Feingold Lieberman Byrd Feinstein Mikulski jobs back to the United States, and we isiana. Carper Graham (FL) Nelson (FL) should do that. Mr. BREAUX. Mr. President, it is in- Clinton Harkin Nickles The PRESIDING OFFICER. The Sen- teresting that the authors, the Sen- Conrad Inouye Reed Daschle Johnson Rockefeller ator from California. ators who oppose the amendment, say Dayton Kennedy Sarbanes Mrs. BOXER. Mr. President, I thank the bill is going to create 660,000 jobs. Dodd Kohl my colleague from Nevada. He worked If it is going to create 660,000 jobs, Dorgan Landrieu so hard and long on this underlying there is no problem. The people would NAYS—68 part of the JOBS bill, called the Invest be able to bring the money back and Alexander DeWine Miller in USA Act, because it is going to cre- pay 5 percent. The Breaux-Feinstein Allard Dole Murkowski ate, as my colleague said, according to amendment simply says if companies Allen Domenici Murray independent analysts, 660,000 new jobs. are going to get a huge, enormous tax Baucus Ensign Nelson (NE) Bayh Enzi Pryor Why would we want to ruin a provision break by bringing money out of tax Bennett Fitzgerald Reid people from all parts of the economic shelters in foreign countries and saying Biden Frist Roberts spectrum have told us is going to they want to use it for job creation, Bond Graham (SC) Santorum Boxer Grassley Schumer work? We want to try this for 1 year. fine. Let’s make sure that is what it is Brownback Gregg Sessions We want to bring back monies that are used for. Let’s have a standard by Bunning Hagel Shelby parked overseas and tax them at 5.25 which if more jobs are created, they Burns Hatch Campbell Hollings Smith percent, because right now we are not get 5 percent. But if they don’t create Cantwell Hutchison Snowe getting any revenues. It is going to more jobs, if they don’t spend it for Chafee Inhofe Specter mean $4 billion into the Treasury right that purpose, they are not going to get Chambliss Jeffords Stabenow Stevens away, something we desperately need. the 5-percent tax break. That is all it Cochran Kyl Coleman Lautenberg Sununu It is going to mean, as my colleague says. Collins Lincoln Talent says, insourcing, creating jobs here. It says, if you spend the money to Cornyn Lott Thomas Last year the Senate voted 75 to 25 create more jobs, you can bring it back Corzine Lugar Voinovich at a 5-percent tax rate, and we will Craig McCain Warner for the Ensign-Boxer bill. At that time Crapo McConnell Wyden Senator BREAUX was very honest about allow that to happen. But if you use it it. He didn’t like it then. He doesn’t for something else, you will not get a 5- NOT VOTING—1 like it now. But instead of objecting to percent tax rate. You will pay the reg- Kerry it flat out, he is offering an amendment ular corporate rate like any other The amendment (No. 3117) was re- that in essence kills the whole idea. American corporation. Without my jected. I urge my colleagues, if you care amendment, this costs $3.7 billion to Mrs. BOXER. Mr. President, I move about job creation—and I know you all the American taxpayer. to reconsider the vote.

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.077 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4885 Mr. BAUCUS. I move to lay that mo- Boxer Ensign Miller and the Senator from Nevada, for their tion on the table. Breaux Enzi Murkowski courtesy. Brownback Feinstein Murray The motion to lay on the table was Bunning Fitzgerald Nelson (NE) ABUSE OF PRISONERS IN U.S. MILITARY CUSTODY agreed to. Burns Frist Nickles Mr. President, as an American, as a Campbell Graham (SC) Pryor AMENDMENT NO. 3112 Cantwell Grassley former prosecutor, as a U.S. Senator Roberts who has spoken out in defense of The PRESIDING OFFICER. Under Carper Gregg Santorum Chafee Hagel the previous order, there will now be a Schumer human rights wherever they are vio- Chambliss Hatch Sessions lated, and as the ranking member of vote on the Graham amendment pre- Cochran Hutchison Shelby ceded by 2 minutes equally divided. Coleman Inhofe the Foreign Operations Subcommittee Smith Mr. GRAHAM of Florida. I ask for a Collins Jeffords that has appropriated hundreds of mil- Conrad Johnson Snowe lions of dollars to promote respect for recorded vote. Cornyn Kohl Specter The PRESIDING OFFICER. Is there a Corzine Kyl Stabenow the rule of law in countries around the sufficient second? Craig Leahy Stevens world, I was outraged and disgusted by Sununu There appears to be a sufficient sec- Crapo Lieberman the reports of abuse of Iraqi prisoners Daschle Lincoln Talent by United State military personnel and ond. DeWine Lott Thomas The yeas and nays were ordered. Dole Lugar Voinovich the civilian contractors working with The PRESIDING OFFICER. The Sen- Domenici McCain Warner them. Dorgan McConnell Wyden ator from Florida. Not only has this caused serious Mr. GRAHAM of Florida. Mr. Presi- NOT VOTING—1 harm, both physical and psychological, dent, there are two basic issues ad- Kerry to the individuals who were subjected to this mistreatment, it has tarnished dressed in this amendment. The amendment (No. 3112) was re- the reputation of all Americans and First, there are substantial changes jected. in the international tax provisions in Mr. REID. I move to reconsider the our Nation as a whole. I have listened as top officials at the this legislation. They are going to cost vote. Department of Defense, the National American taxpayers $37 billion, and the Mr. DORGAN. I move to lay that mo- Security Advisor, the Secretary of reason is because we are adding to the tion on the table. State, and other administration offi- already significant incentive for Amer- The motion to lay on the table was cials, have said they were ‘‘shocked’’ ican firms to take their jobs overseas. agreed to. and ‘‘stunned’’ by these reports. And I Second, we are going to spend $65 bil- The PRESIDING OFFICER. The Sen- have heard them, in a coordinated at- lion to give a blank check to American ator from Kentucky. tempt at damage control, say that manufacturing firms in the form of a Mr. MCCONNELL. Mr. President, I these were isolated incidents involving tax deduction. The amendment would ask unanimous consent that there now only a handful of individuals whose substitute and add $35 billion so we be an hour equally divided between the conduct, while reprehensible, should would have $100 billion to be given in two managers or their designees; pro- not be seen as indicative of a larger the form of a credit against the payroll vided further that following the use or yielding back of time, the Senate pro- failure. tax to reduce the form of tax, which is I have no doubt that the vast major- the greatest disincentive to the cre- ceed to vote in relation to the Dorgan amendment No. 3110, to be followed by ity of American men and women who ation and maintenance of jobs in the are risking their lives in Iraq, Afghani- United States. a vote in relation to the Allard amendment No. 3118, with no amendments in stan, and elsewhere are as disgusted by This is an amendment which truly these abhorrent acts as the rest of us. justifies the title of this bill, JOBS, order to either amendment prior to the votes. But I could not disagree more with and would add the phrase ‘‘in Amer- those who would characterize these in- ica.’’ The PRESIDING OFFICER. Is there objection? cidents as aberrations. The PRESIDING OFFICER. The Sen- While President Bush, Secretary ator’s time has expired. Mr. REID. Mr. President, reserving the right to object, and I will not ob- Rumsfeld, General Myers, Secretary Who yields time in opposition? Is ject, I have spoken to the managers— Powell and Condoleezza Rice, may have there objection to time being yielded well, not actually the managers of the been shocked by the photographs that back? bill—but I have spoken to the majority have been on the front page of every Without objection, it is so ordered. side. Prior to this kicking in, this newspaper in the world, they should All time is yielded back. The yeas and unanimous consent agreement, I ask not have been surprised by the revela- nays have been ordered. unanimous consent that the Senator tions themselves. These types of abuses The question is on agreeing to from Vermont be recognized for 5 min- have been going on at U.S. military de- amendment No. 3112. utes as in morning business, and, of tention facilities for a long time, and The clerk will call the roll. course, the same time accorded to the the administration has known about The assistant legislative clerk called majority. the incidents in Iraq for 5 months. This the roll. The PRESIDING OFFICER. Is there fact signals a failure of leadership at Mr. REID. I announce that the Sen- objection to that modification? several levels. ator from Massachusetts (Mr. KERRY) Without objection, the modified re- The mistreatment of prisoners by the is necessarily absent. quest is agreed to. U.S. military in Iraq was not limited to The PRESIDING OFFICER. Are there The Senator from Nevada. the crimes that have come to light at any other Senators in the Chamber de- Mr. REID. Mr. President, on the time the Abu Ghraib prison. Rather, there siring to vote? we have, 20 minutes of that would go to was, in the words of the U.S. Army’s The result was announced—yeas 22, Senator DORGAN. own inquiry, a ‘‘systemic and illegal nays 77, as follows: The PRESIDING OFFICER. Without abuse of detainees.’’ [Rollcall Vote No. 82 Leg.] objection, it is so ordered. It is revealing, and particularly dis- YEAS—22 The Senator from North Dakota is turbing, that the U.S. personnel involved conducted themselves so openly, Akaka Graham (FL) Mikulski recognized. Byrd Harkin Nelson (FL) Mr. DORGAN. Mr. President, par- even posing with the victims of their Clinton Hollings Reed liamentary inquiry: How much time sadistic acts. Dayton Inouye Reid was required on the last recorded vote? They obviously felt they had no rea- Dodd Kennedy Rockefeller The PRESIDING OFFICER. Approxi- son to believe that their superiors Durbin Landrieu Sarbanes Edwards Lautenberg mately 30 minutes. would be upset with their conduct. Feingold Levin Under the previous order, the Sen- The brazenness of these acts, the re- NAYS—77 ator from Vermont is recognized for 5 ported role of U.S. intelligence officers minutes. in encouraging such treatment to Alexander Baucus Biden Allard Bayh Bingaman Mr. LEAHY. Mr. President, I thank ‘‘soften up’’ detainees for interroga- Allen Bennett Bond my friends, the Senator from Kentucky tions, combined with earlier reports of

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.085 S05PT1 S4886 CONGRESSIONAL RECORD — SENATE May 5, 2004 similar abuses in Iraq and Afghanistan, press reports, the inquiries by Members administration ensures that torture suggests a much larger failure. of Congress, or the reports of human does not occur when it sends detainees And let us be clear. We are not talk- rights organizations? to countries that are known to practice ing only about the individuals who en- Or was the abuse of nameless, non- torture. gaged in these abusive acts. White Muslims suspected of being ter- On September 9, 2003, I wrote to Mr. We are talking about a failure of rorists, regardless of whether they Haynes again for clarification on a leadership by an administration that, were guilty or innocent, simply a low number of points, such as how the ad- well before this latest scandal, had al- priority until it became a public rela- ministration reconciled his statement ready severely damaged this Nation’s tions and foreign policy disaster? of policy with reports that detainees reputation and effectiveness in a war Let me cite just a few, of many, ex- were sent to countries where torture is against terrorism that is increasingly amples: practiced, and the reported use of in- perceived by Muslims around the world On December 25, 2002, the Washington terrogation techniques rising to or as a war against Islam itself. Post reported: near the level of torture. The growing anger and hostility to- ‘‘If you don’t violate someone’s human After 2 months with no response, an- ward our troops has been exploited by rights some of the time, you probably aren’t other letter, this one not from Mr. Saddam loyalists and extremists who doing your job,’’ said one official who has su- Haynes himself but from a subordinate, want to take the country backward. pervised the capture and transfer of accused was delivered late at night on the eve They have committed despicable acts terrorists. ‘‘I don’t think we want to be proof Mr. Haynes’ November 19, 2003, con- of violence against Americans, includ- moting a view of zero tolerance on this.’’ firmation hearing for a seat on the ing the desecration of corpses. Quote: Fourth Circuit Court of Appeals. That The acts described in the investiga- Bush Administration officials said the CIA, letter was totally unresponsive to my tive report by MG Antonio Taguba, in- in practice, is using a narrow definition of questions. cluding beatings, repeated sexual abuse what counts as ‘‘knowing’’ that a suspect has I also raised concerns when the case and humiliation, and threats and sim- been tortured. ‘‘If we’re not there in the surfaced of a Canadian-Syrian citizen, ulation of rape and of torture by elec- room, who is to say?’’ said one official con- Maher Arar, who was sent by U.S. au- versant with recent reports .... tric shock, violate the Geneva Conven- thorities to Syria, where Arar says he tions. One can only wonder if anyone would was physically tortured. Syria has a They clearly contradict President have been punished, or if we would well-documented history of torture. In Bush’s pledge on June 26, 2003, that the have even heard about it, if the photo- fact, President Bush stated, on Novem- United States will neither ‘‘torture’’ graphs of the abuses at Abu Ghraib had ber 7, 2003, that Syria has left ‘‘a legacy terrorist suspects, nor use ‘‘cruel and not been published. of torture, oppression, misery, and unusual’’ treatment to interrogate On March 4, 2003, the New York ruin’’ to its people. them. They also contradict the more Times described the treatment of Af- I wrote to FBI Director Mueller on detailed policy on interrogations out- ghan prisoners at the Bagram Air Base November 17, 2003, for more informa- lined in a June 25, 2003, letter to me by after two young prisoners died in U.S. tion on the case. Later that week, I Defense Department General Counsel military custody. wrote to Attorney General Ashcroft William Haynes. Their deaths were ruled homicides, with additional questions. Neither of Frankly, I regret to say that I was but the investigations of those deaths these letters from last year has been not among those who were shocked by have never been released. Other pris- answered. these revelations. Revolted, yes. oners described being forced to stand On January 6, 2004, Human Rights Shocked, I was not. I have been con- naked in a cold room for 10 days with- Watch wrote to Secretary Rumsfeld to cerned, as have others, about ongoing out interruption, with their arms express concern about the detention by reports of physical and psychological raised and chained to the ceiling and U.S. forces in Iraq of innocent, close abuse and the denial of rights of de- their swollen ankles shackled. relatives of a wanted person in order to tainees in U.S. military custody since They also said they were denied sleep compel the person to surrender, which September 11, 2001, not only in Iraq but for days and forced to wear hoods that amounts to hostage-taking, classified in Afghanistan and Guantanamo. cut off the supply of oxygen. as a war crime under the Geneva Con- These abuses have been well docu- That same day, the Wall Street Jour- ventions. mented by reputable human rights or- nal reported that a U.S. law enforce- On January 13, 2004, the Asian Wall ganizations, as well as by members of ment official said: Street Journal reported that a suspect the press. Some of the cases involve al- because the [Convention Against Torture] detained by U.S. forces in Iraq said legations of torture or cruel, inhuman has no enforcement mechanism, as a prac- that ‘‘he was ordered to stand upright and degrading treatment by U.S. mili- tical matter, ‘‘you’re only limited by your until he collapsed after 13 hours,’’ and tary and intelligence personnel. imagination.’’ that interrogators, ‘‘burned his arm Other cases involve allegations of the On March 9, 2003, the New York with a cigarette.’’ denial of due process, incommunicado Times reported: On January 18, 2004, the Sunday detention without charge, and the re- Intelligence officials . . . acknowledged Times of London reported that a de- fusal of access to attorneys. that some suspects had been turned over to tainee held by coalition forces in Iraq So when I hear the National Security security services in countries known to em- said that during his 3 months in deten- Advisor, or the Secretary of Defense, ploy torture. tion he was, ‘‘beaten frequently, given say they are determined to get to the On June 2, 2003, when allegations of shocks with an electric cattle prod and bottom of this, I, frankly, have to won- possible breaches of the Convention had one of his toenails [torn] off.’’ der, especially as they have known Against Torture surfaced, I wrote to Throughout this period there were about this for a long time. National Security Advisor Rice, asking not only continuous press reports of I first wrote to National Security Ad- for assurance that the United States is abuses of Afghan, Iraqi, and other de- visor Rice a year ago about reports of complying with its obligations under tainees in U.S. military custody. There cruel and degrading treatment of Af- the convention. I received a response were also repeated requests by human ghan detainees. from General Counsel Haynes. His let- rights organizations, myself, and oth- I have written several times to the ter contained a welcome commitment ers, for clarification of the policies and general counsel of the Department of by the administration that it is the procedures used in interrogations. Defense and to the Director of the CIA. policy of the United States to comply What we got, it seems, were, at best, I have sought answers to questions with all of its legal obligations under reassuring statements by officials in about policy, training, and account- the convention. Washington that were repeatedly ig- ability. Some of my questions have Similarly, Senator SPECTER wrote to nored in the field. been answered; many have been ig- Dr. Rice asking for ‘‘clarification about Several things bother me beyond the nored despite repeated requests. numerous stories concerning alleged reports themselves. Not only is there a Were Secretary Rumsfeld or mistreatment of enemy combatants in long pattern of abuse that has been Condoleezza Rice not aware of the U.S. custody,’’ and to explain how the documented. But with respect to the

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allegations at Abu Ghraib, Secretary ligence Agency, and make the results Mr. President, 21⁄2 years ago, shortly Rumsfeld and General Myers knew of public. after 2,986 people of some 60 nationali- these incidents and for over a week The administration should prosecute ties died in the attacks on the World they not only did not disclose them to any military or intelligence personnel Trade Center, on the Pentagon, and in the Congress or the American people, found to have engaged in or encouraged a lonely field in Pennsylvania, there they urged CBS News not to broadcast any acts amounting to torture or inhu- were expressions of sympathy and good the photographs. man treatment. Administrative pen- will toward our country unlike any we Major General Taguba’s report was alties are inadequate. There needs to had experienced since the end of the written 3 months ago, and as of yester- be a clear signal that these abuses will Second World War. day Secretary Rumsfeld said he still not be tolerated. I remember how the cover of the had not read it through. The administration should ensure French newspaper, Le Monde, pro- There has been an appalling lack of that all interrogators working for the claimed ‘‘Today, We Are All Ameri- appreciation or concern for the serious- United States, whether employees of cans.’’ The National Anthem was ness and frequency of these incidents. the military, intelligence agencies, or played at Buckingham Palace. None of us believes that prisoners of private contractors, understand and Today, that sympathy and good will, war, some of whom are suspected of abide by specific guidelines consistent which offered such promise, has long having killed or attempted to kill with the policy outlined by General since dissipated. In fact, it has been Americans, should be rewarded with Counsel Haynes last year, which pro- squandered. Squandered by an adminis- comforts. Harsh treatment may, at hibited interrogation methods abroad tration blinded by arrogance, steeped times, be justified. But we also know that would be barred in the United in condescension, prone to distortions that many of the people who have been States by the U.S. Constitution as well of the truth, motivated by simplistic detained, who have been depicted as as by the Geneva Conventions. These notions of ‘‘good versus evil,’’ and hav- terrorists and whose rights have been guidelines should be publicly available. ing only the most rudimentary under- violated, have turned out to be inno- The administration should grant the standing of the Iraqi people, their cul- cent of any crime. International Committee of the Red ture, their faith and traditions. The use of torture or the inhuman or Cross access to all detainees held by While we are continually treated degrading treatment of prisoners, who- the United States in the campaign with rosy assertions that things are ever they are, is beneath this Nation. against terrorism throughout the getting better, the number of U.S. cas- It is also illegal. That is the law wheth- world, whether held in facilities run by ualties soars. er U.S. military officers engage in such the U.S. military or intelligence serv- What was conceived as a campaign conduct themselves, or they turn over ices, or held by other governments at against terrorism, focused on al-Qaida, prisoners to the government agents of the behest of the United States. The is increasingly perceived by many of another country where torture is com- United States should not be operating the world’s 1.2 billion Muslims as a war monly used, in order to let others do undisclosed detention facilities to of aggression against Islam by the the dirty work. It is also the law when which no independent monitors have United States and our predominantly contractors or subcontractors of the access. Christian allies. U.S. military are involved. The administration should make pub- I have no doubt that most Iraqis are It undermines our reputation as a na- lic information about who is detained relieved to be rid of Saddam Hussein tion of laws, it hurts our credibility by occupation forces in Iraq and Af- and the horrors of his regime. Most with other nations, and it invites oth- ghanistan, and why, and enable fami- Iraqis abhor violence and want to reers to use similar tactics against our lies of detainees to visit their relatives. build their country. troops and other Americans. Even with internal safeguards, incom- Nor should there be any doubt about Torture is routinely used today in municado detention is an invitation to our concern for the safety of the over- dozens of countries. In fact, some of abuse. whelming majority of American sol- those who have complained the loudest The administration should videotape diers and civilians whose motives are about the abuses at Abu Ghraib are all interrogations and other inter- honorable and who are bravely risking among the world’s worst violators of action with detainees so responsible their lives. human rights. Their mistreatment of personnel know there will be a record But the individuals at Abu Ghraib prisoners is flagrant, it is pervasive, of any abuses. These videotapes should prison, at Bagram Air Base, and else- and it is a matter of state policy. be regularly reviewed by supervisory where who have violated the rights of So I am cognizant of the hypocrisy of personnel to ensure full compliance prisoners, were not acting in a vacuum. some of those who have equated the with interrogation and detention There was a culture that encouraged or U.S. military with Saddam Hussein’s standards in U.S. and international allowed it. Discipline was lacking. Ac- regime, which tortured and murdered law. countability was lacking. And just as hundreds of thousands of people. Noth- The administration should release those who committed these crimes ing could be further from the truth. the results of the investigation the De- should be prosecuted, the civilian and But that does not detract from the fact fense Department conducted into military officials who failed in their re- that the Bush administration’s re- deaths in custody of two detainees held sponsibility to ensure that the law was sponse to the pattern of reports of at Bagram Air Base in Afghanistan. respected should also be held account- abuse of detainees has been woefully The administration should ensure able. inadequate. that private contractors working for Mr. President, I ask unanimous con- It has been negligent, and innocent the United States in military or intel- sent that a May 4, 2004, op-ed in the people have suffered and some quite ligence roles operate under clear, legal Washington Post by Leonard S. possibly have died as a result. This procedures so they can be held crimi- Rubenstein, executive director of Phy- negligence is anything but benign in nally responsible for complicity in ille- sicians for Human Rights, entitled, the damage it threatens to our na- gal acts. Under the Military ‘‘Stopping the Abuse of Detainees,’’ be tional security and foreign policy in- Extraterritorial Jurisdiction Act, printed in the RECORD. terests, at a particularly dangerous which I worked with Senators SESSIONS There being no objection, the mate- time. and DEWINE to enact in the 106th Con- rial was ordered to be printed in the What should be done? Human rights gress, a contractor or subcontractor of RECORD, as follows: groups have suggested a number of im- the military can be prosecuted in Fed- [From the Washington Post, May 4, 2004] portant actions which I believe are eral court if the crime of which he is STOPPING THE ABUSE OF DETAINEES long overdue. The administration accused is a felony when committed in (By Leonard S. Rubenstein) should undertake an investigation of the United States. Photographs of American soldiers laughing the interrogation practices wherever The administration should take re- over naked Iraqi prisoners of war piled atop detainees are held around the world, sponsibility and be accountable for the one another are a revolting disgrace, all the whether the facilities are run by the breakdown of civilian control and loss more so because evidence of torture and ill U.S. military or the Central Intel- of lawful authority. treatment of individuals detained by U.S.

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.089 S05PT1 S4888 CONGRESSIONAL RECORD — SENATE May 5, 2004 forces in Afghanistan, Iraq and Guantanamo all prisoners and all medical records that can knowledge his outstanding leadership Bay, Cuba, is not new. The humiliating acts reveal abuse. The president should provide to on trade. Trade is such an abstract seen in photos may not have been predict- the American public a full accounting of in- word, but it is another word for jobs. able, but the abuse of detainees was, a prod- terrogation practices, including all records The big question is, how are we going uct of the circumstances of detention and and documents relating to the most recent the administration’s resistance to inde- violations and past allegations of abuse in to keep jobs in the United States? pendent monitoring and accountability. Afghanistan, Iraq, Guantanamo, the United This, then, takes us to tax policy. Stopping it requires a great deal more than States and other countries where individuals Tax policy is more than just simply the prosecution of a handful of offenders. have been sent. collecting revenue; tax policy is a The problem is that the main purpose of When some Americans insulted and hu- statement of our principles. The Tax these military detentions is interrogation, a miliated their Iraqi captives, they shamed Code in the United States has, since practice that always has potential for abuse. every American as well. Moreover, they jeop- the New Deal, stood for certain prin- Preventing abuse requires compliance with ardized the lives and well-being of U.S. sol- ciples: That it should be fair, No. 1, and rules for treatment of prisoners, as well as diers and people in custody throughout the access for independent monitors and ac- world. President Bush recoiled at the horror that the more wealthy you are, you countability for violators. But many detain- of it, but unless revulsion leads to more con- would bear a little heavier responsi- ees in Afghanistan and Iraq have been held certed action, the abuses will continue. bility. Part of the principle of fairness virtually incommunicado, sometimes in un- AMENDMENT NO. 3110 and of paying taxes is what is called disclosed locations, under rules that have The PRESIDING OFFICER. The Sen- citizenship. It is called shared responsi- never been made public. As early as 2002, bility. It is called, how do you make news reports of abuse or prisoners began to ator from North Dakota. surface, and new allegations have continued Mr. DORGAN. My understanding is sure the U.S. Government functions to to emerge. that we are now turning to the amend- provide national security and domestic The administration’s response has been to ment I have offered along with my col- opportunity and a safety net for sen- stonewall. A year ago, in response to the league, Senator MIKULSKI; is that cor- iors. That is really what it is all about. first set of allegations of abuse of detainees, rect? The Tax Code is the fundamental President Bush affirmed that the United The PRESIDING OFFICER. Under principle of how you collect revenue, States does not practice or condone torture and it is tied with citizenship, both in- or cruel, inhuman and degrading treatment, the previous order, there is a period of and that it investigates allegations of viola- 1 hour of debate, 30 minutes allocated dividual citizenship and corporate citi- tions. But the actions needed to convert this to the majority, 30 minutes allocated zenship. The way we see it is: If you are from a statement to a commitment have to the minority, of which 20 minutes is a good corporate citizen, you ought to been absent. For the past two years, human controlled by the Senator from North stay in this country and keep your jobs rights organizations have requested the Dakota. here. Right now we have a tax code guidelines used to govern interrogation, the Mr. DORGAN. Mr. President, that 20 that rewards just the opposite. We have results of investigations of alleged instances minutes begins at this point. Let me a tax code that rewards corporations of torture or mistreatment, information on yield myself 2 minutes. Then I will for shipping jobs overseas. individuals transferred to third countries for I believe what the Dorgan-Mikulski interrogation, and—most important—access yield 5 minutes to the Senator from to the detainees and their medical records to Maryland. amendment does is say that, No. 1, our ascertain whether they have been abused. Let me just say, this is the easiest Tax Code should be patriotic. Our Tax The administration either denied or failed amendment to consider of all of the Code should stand up for America. It even to acknowledge many of these requests, issues that we have dealt with on this should stand up for keeping jobs here. including those concerning findings of the legislation. It deals with the question It should stand up for rewarding good- investigation of the case of two detainees of whether we should shut down the guy companies that keep jobs here and who died in custody more than a year ago. loophole that exists in current tax law provide health benefits to their em- As for combatants sent to third countries, ployees. It should also close the loop- among them countries with a record of tor- that says to a company, shut your ture, the administration claimed to have ob- American manufacturing plant down, hole where people not only take jobs tained assurances that the countries do not fire your workers, move your manufac- overseas but hide their income in the torture detained combatants. turing plant overseas, manufacture the Bermuda Triangle or the Cayman Is- An even deeper problem with the adminis- product, ship it back into the U.S. mar- lands. tration’s approach has been its efforts to ketplace and, by the way, we will give This deals with one aspect. The evade compliance with the Geneva Conven- you a big tax break. If we can’t begin amendment Senator DORGAN and I tions, which protect detainees from torture, offer, the economic patriotism amend- ill treatment and humiliation, as well as in- a baby step in the right direction of human conditions of confinement. It has said saying, we will no longer subsidize in ment, says that right now what we that captured al Qaeda suspects in captivity the Tax Code the movement of U.S. would do is close the loophole for send- at Guantanamo and Afghanistan are not sub- jobs overseas, then we don’t have a ing jobs overseas. The Dorgan-Mikulski ject to the conventions at all. And U.S. offi- ghost of a chance of fixing what is amendment ends those huge tax breaks cials took a shockingly casual approach to wrong with this Tax Code. to manufacturing companies that send the treatment of POWs by U.S. surrogates in You have two companies side by side. jobs overseas, that only sell the prod- Afghanistan, assuming no responsibility for Both make bicycles. One decides it will ucts they make back here in the the horrific conditions of imprisonment for move its plant to China. The other con- United States. Right now this Tax thousands of Taliban fighters and washing U.S. hands of reports that allies killed pos- tinues to live in Baltimore and make Code lets these companies move the sibly hundreds or thousands of detainees. its bicycles in Baltimore. The dif- jobs and not pay the taxes on the prof- Some of the holding centers are even off-lim- ference? The company that moved its they earn by sales back home. its to the International Committee of the overseas gets a tax break. The com- Our amendment tells these compa- Red Cross, which is internationally author- pany that stays in Baltimore doesn’t. nies: If you want to export jobs out of ized to visit all security detainees. It is an insidious, perverse tax incen- America, you can go, but you can’t im- The president, the director of the CIA and tive that makes no sense. We ought to port these products back in the United the secretary of defense must now do what States and be able to shelter your prof- should have been done 18 months ago. The end it. message has to be clear that interrogators That is what my colleague and I do its. Our amendment says: The Tax must be subject to rules, and if the rules are with our amendment. I will explain it Code can no longer be used to boost to be obeyed, the door to the interrogation further at some later moment. I want corporate earnings at the expense of room must never be shut. They should pub- to offer 5 minutes to the Senator from American workers. It is actually an licly pledge that the United States is bound Maryland who has to go to the Intel- amendment that makes good sense. by the Geneva Conventions and will be bound ligence Committee. Why should we reward people who by them with respect to every single mili- The PRESIDING OFFICER. The Sen- move their jobs overseas and penalize tary detainee, whether or not it considers ator from Maryland is recognized for 5 in the Tax Code the people who keep them official prisoners of war. They should immediately account for the whereabouts minutes. their jobs here in the United States and condition of all in detention and offer Ms. MIKULSKI. Mr. President, I and who also tend to provide their em- the International Committee of the Red thank the Senator from North Dakota, ployees with health insurance? Cross, as well as independent human rights the lead sponsor of this amendment, People in my State really cannot be- monitors and medical experts, full access to for yielding me such time. I also ac- lieve what is happening. We have lost

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.011 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4889 21,000 manufacturing jobs since 2001. nedy tried to end the entire deferral The reason it is legal is because we are What a bloodless statistic. Behind system. President Nixon tried to end trying to change our tax laws to con- every one of those numbers are 21,000 it. President Carter tried to end it. The form with our international agree- families, 21,000 families that built Senate voted to end it in 1975. The ments—international agreements that ships, made steel, made garments and House of Representatives voted to end this body has already adopted. apparel, even made the kind of tech- it in 1987. In each case, the big eco- So we are dealing with these amend- nology we use in high tech. Where did nomic interests that get rewarded for ments—probably very legitimate those jobs go? They went on a slow shipping American jobs overseas have ones—but we have had amendments boat to China. They went on a fast won. The question is, will they win put before this bill that have kept this track to Mexico and a dial 1–800 any- today? We are losing jobs. We need to bill long enough on the agenda so that where. Why are they going? Because keep jobs in this country. we are already 77 percent less competi- the Federal Tax Code says it is OK. This amendment doesn’t prevent a tive than we used to be with our global The Federal Tax Code says, in fact, it company that chooses to move Huffy competition doing business in Europe. is not only OK, we are going to give bicycles or the little red wagons to So why are we here? We are here with you a huge subsidy. I think we need to China. It doesn’t prevent a company this underlying piece of legislation to subsidize the good-guy corporations. from moving Fig Newton cookies, preserve and create more jobs in Amer- That is what I want to do. I believe Fruit of the Loom, or Levis to Mexico. ica. that the Dorgan-Mikulski amendment But it does say if you are going to We have heard the Senator from is a patriotic amendment. It is part of move those jobs, at least we are not North Dakota make a very impas- an economic patriotism that we have going to help pay for it with incentives sioned case for American workers to start focusing on in this country. I in the Tax Code. That is a simple whose jobs have been lost when U.S. don’t want my country, in a few years, enough proposition. This Senate should plants move overseas. We have all wit- to have the economic profile of a Third adopt this amendment. nessed this heart-wrenching event. I World country. I reserve my time. know that my home State of Iowa has Vote for America, vote for patriotic The PRESIDING OFFICER (Mr. had plant closings or some parts of pro- economics, and vote for Dorgan-Mikul- CORNYN). The Senator from Iowa is rec- duction move overseas. Unfortunately, ski. ognized. this amendment will not do one dog- The PRESIDING OFFICER. The Sen- Mr. GRASSLEY. Mr. President, I gone thing to bring those jobs back. In ator from North Dakota is recognized. want to speak against the Dorgan fact, it could very well cost even more Mr. DORGAN. Mr. President, I yield amendment. I yield myself such time U.S. jobs. myself such time as may be necessary. as I might consume. Before I speak spe- I will explain my concerns by first Again, this is not complicated. Levis cifically to the amendment, since I examining his amendment. This used to be American. When you would heard the Senator from North Dakota amendment repeals deferral for prop- slip on a pair of Levis in the morning, express his concerns—and legitimate erty imported into the U.S. by foreign you were wearing a pair of American concerns—about jobs going overseas, I subsidiaries of U.S. companies, even pants. Not any longer. The manufac- think there might be some suggestion without regard to whether that prop- turer of Levis has gone to Mexico and in this amendment that this bill erty was ever previously produced, China. doesn’t deal with moving jobs overseas. manufactured, or grown in the United Fig Newtons. If you want some Mexi- This amendment is all about pre- States. This means the amendment can food, you can get Fig Newtons serving manufacturing jobs in America doesn’t focus on their primary com- from Mexico. That old all-American and creating more manufacturing jobs plaint that U.S. companies are shut- Fig Newton cookie has gone to Mexico. in America, because the basis for this ting their plants, moving production Fruit of the Loom underwear has legislation is that there is no benefit in offshore, and selling back into the gone to Mexico. this bill from the reduction of the cor- United States. I have mentioned previously Huffy porate tax from 35 percent down to 32 The bill does not focus on this sce- bicycles. They have gone to China. percent for any organization that nario. Instead, it overshoots the mark Do you know that little red wagon, doesn’t manufacture in the United by hitting all goods sold into the the Radio Flyer? This one has gone to States. So it applies to domestic manu- United States by U.S. companies, even China. facturers that are manufacturing in if it is impossible for those goods to The perversity of all of this is, the United States, not domestic manu- first be produced in the United States. whether it is Fig Newtons, Levis, Radio facturers that manufacture overseas. It I will give an example. If a produce Flyers, Huffy bicycles, or Fruit of the also applies to companies overseas— company sets up a banana farm in Loom underwear, they were all re- foreign companies—that would come to Costa Rica to import bananas into the warded for moving their jobs overseas the United States and invest here, cre- United States and around the world, because our Tax Code has embedded in ate jobs here, and hire people in Amer- the income from sales to the United it a special little deal: Move your jobs ica to manufacture here. States are not eligible for deferral. I overseas and we will give you a special There is a lot of concern expressed may be mistaken, but I am not aware deal. about moving jobs overseas. I don’t of too many banana farmers in Texas We want to change that. According denigrate any of those concerns. But or Florida. So I do not see how defer- to the Joint Tax Committee, U.S. tax- that is what the debate on this legisla- ring taxes on a banana farm in Costa payers will pay $6.5 billion between 2004 tion has been all about for 1 whole Rica is going to cost the United States and 2013 as tax incentives to U.S. com- week during the month of March, a few jobs. panies that set up offshore subsidiaries days during April, and now again this Similarly, if a U.S. company wanted to manufacture merchandise and ship week. During that period of time of to start a mining operation in some far it back into this country. We have lost stalling, we have had a 5-percent Euro- away land to extract a new and exotic about 2.7 million manufacturing jobs in pean tax put on our exports to Eu- mineral that is not found here at home, this country, and we have a perverse rope—a percent again in April, and now they can sell that anywhere in the provision in the Tax Code that says a third movement of 1 more percent. world, but they could not and cannot let’s even enhance that by That is going to go on every month. import that back into the United incentivizing those who would close Even if we pass this bill this very States without triggering this amend- their American factories and move the minute, this bill probably won’t be ment. jobs overseas. signed by the President for another How about coffee? The only place I This is not a new idea. This is a rath- month or so. We are going to continue know we grow coffee in the United er narrow amendment, by the way. We to have this terrible European tax put States is in Hawaii, and that was 25 don’t end deferral; we just end deferral on our exports there. years ago. Maybe they do not even with respect to U.S. companies that I emphasize for listeners who ask, grow it there now. We have lots of cof- are manufacturing abroad and selling how can they do that? Well, it is legal fee shops on our streets these days. If back into this country. President Ken- under international trade agreements. they set up their own coffee plantation

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.093 S05PT1 S4890 CONGRESSIONAL RECORD — SENATE May 5, 2004 in Brazil, they would get hit under this The Department of Commerce data eration, and if we do not have a more amendment that is before us. I do not shows that the bulk of U.S. investment level playing field for our companies, know whether we raise coffee anywhere abroad occurred in high-income, high- how do we expect to compete in this else in the United States, but we sure wage countries. In the year 2001, 79 per- world marketplace? do not raise it in Iowa. cent of the foreign assets and 67 per- I will give an example. A U.S. com- It appears the amendment of Senator cent of foreign employment of U.S. pany with a Singapore subsidiary will DORGAN and Senator MIKULSKI would multinationals were located in high-in- pay U.S. tax and a Singapore tax on allow a U.S. company to sell foreign come, developed nations, such as Aus- the subsidiary’s income. A French com- goods to anyone in the world except to tralia, Canada, Hong Kong, Japan, New pany with a Singapore subsidiary will America. That does not make sense to Zealand, Singapore, South Africa, and pay Singapore tax but not any tax in me. the countries of the European Union. Paris. That means the U.S. company in I have described how the bill would We have to remind ourselves that Singapore has a higher tax burden than operate, but I do not think that is the corporations are comprised of people. the French company in Singapore. Two intent of this legislation. What I be- People like good roads, safe water, reli- basic tax rules answer this problem and lieve is intended is that deferrals able power grids, and stable societies. seek to put U.S. companies on a level should be denied if a company closes a That is the only kind of environment playing field with foreign competitors U.S. plant, produces the goods offshore, where business can flourish. So it is from territorial countries. and then imports the goods back into only rational that if a U.S. corporation The first rule says when foreign in- the United States. This does not actu- is going to make a foreign investment, come is brought home, the U.S. allows ally happen very often. The latest De- it is going to make the safest invest- a reduction against U.S. tax for any partment of Commerce data on U.S. ment possible. That means going to foreign tax paid on that income. This multinationals shows that only 7 per- fully developed countries with thriving foreign tax credit prevents the U.S. cent of foreign subsidiary sales were markets and highly paid workers. from double-taxing foreign earnings. into the United States. We also have to remember a simple Does anybody believe in double taxing? Nevertheless, this amendment insists maxim for why companies go into for- In effect, that would make our com- that the rule of deferral in our tax law eign markets: You have to be there to panies noncompetitive in this inter- is somehow a tax benefit that moves sell there. national marketplace. Like deferral, jobs offshore and allows a company to Today, fully 95 percent of the world’s this too has been on the tax laws of the not pay taxes on foreign income. population and 80 percent of the pur- United States since 1918. The foreign Of course, this is not true. Deferral chasing power is located outside the tax credit is limited. It may only offset has nothing to do with moving jobs, United States. In other words, the up to 35 percent of the U.S. corporate and it never forgives taxes that are United States is 5 percent of the tax. If the foreign tax rate is higher, owed on foreign products of U.S. com- world’s population. But if we want to the credit stops where we stop taxing panies. The rule of deferral exists to sell, we go where the people are. Nine- corporations at 25 percent. If the credit keep U.S. companies competitive in ty-five percent of the people are out- is lower, say 10 percent, then an addi- the global marketplace. Let me repeat. side the United States. If you want to tional U.S. tax will be owed up to the The rule of deferral exists to keep U.S. make sales, you go where the people full 35 percent. In this example, the additional 25 percent of taxes would be companies competitive in the global are. We have an instance in which foreign owed to the U.S., which is the dif- marketplace, and it has been that way sales growth has outstriped domestic ference between the 10 percent and our in our tax laws since 1918. For 85 years sales growth. So this increased growth 35-percent top rate. it has been the law. requires increased foreign involvement. The second basic tax rule is U.S. We are going to hear a great deal The good news is foreign growth also companies are allowed to defer U.S. tax about deferrals this week. We will hear results in U.S. job growth. on income from the active business op- wild accusations about how this rule, A recent study confirmed that during eration of a foreign subsidiary until which has been in place since 1918, the 10 years, 1991 through 2001, for that income is brought back to the spells doom for American workers. every job U.S. multinationals created United States, and that is usually None of this is true. In fact, just the abroad, they created nearly two jobs in brought back in the form of a dividend opposite is true. By enhancing the the United States in their parent cor- paid to the U.S. parent. This is referred international competitiveness of U.S. poration. That is why it is critical to to as the rule of deferral, meaning the companies, deferral ensures an ever- our company that U.S. companies re- U.S. tax is deferred until the earnings growing base of opportunity for U.S. main competitive in this international are brought back. This is the rule this companies and their employees at marketplace. amendment attacks. home and abroad. Let’s review for a moment a more ra- It is important to note deferral is not U.S. multinationals are a critical tional explanation for deferral and how a forgiveness of a tax. It simply means component of our economy. These com- it works to keep our U.S. companies we impose full U.S. tax tomorrow in- panies operate in virtually every indus- competitive. stead of today. We do not forgive tax try and have investments of more than The United States taxes all of the under deferral because we do not want $13 trillion in facilities located across worldwide income of its citizens and to create incentives to move operations our great country. corporations. The U.S. income tax ap- offshore. The reason we defer tax on ac- As employers, they provided 23 mil- plies to all domestic and foreign earn- tive business operations is so U.S. com- lion jobs for Americans in 2001, nearly ings of U.S. companies. The United panies can remain competitive with 18 percent of the payrolls in the coun- States fully taxes income earned over- foreign companies, from those country. With a payroll in excess of $1.1 seas by foreign subsidiaries of U.S. tries that have a territorial tax sys- trillion, U.S. multinationals create companies. However, many foreign tem. more than 53 percent of the manufac- countries tax their companies on a ter- We do not defer tax on passive activi- turing jobs in America and employ ritorial basis, meaning they only tax ties such as setting up an offshore bank more than two U.S. employees for income earned within their country’s account. We tax passive activities every foreign worker. borders and do not impose tax on the yearly, and active operations are sub- During the 10 years between 1991 and earnings of foreign subsidiaries. ject to competitive disadvantage. For 2001, U.S. multinationals increased do- Countries that use a territorial sys- example, if we impose U.S. tax today mestic employment at a faster rate tem, such as Australia, Belgium, Can- on the profits of a Singapore sub- than the overall economy. We have a ada, Denmark, Finland, France, Ger- sidiary, then a U.S. company will pay recent study confirming that U.S. mul- many, Luxembourgian, the Nether- 35-percent U.S. taxes plus any Singa- tinationals are significant job creators, lands, Sweden, and Switzerland, among pore taxes, but the French competitor and those jobs are not created through other countries, have a great advan- located next door will only pay the exporting jobs to foreign nations with tage over a U.S. company. Singapore tax and not the Paris tax. low labor and low tax costs, as the We have to take that into consider- If a Singapore tax rate is less than amendment infers. ation. The tax system is the cost of op- the 35-percent U.S. tax rate, then the

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.096 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4891 French competitor will have a tax ad- SKI cite in debating their amendment, about bananas from, I believe, Costa vantage. This is because the U.S. al- whether U.S. employment levels of the Rica. So we will call that the banana lows the foreign tax credit offset U.S. companies will drop after this ad- defense. against U.S. income tax imposed on ditional tax is imposed. This goes to I have great respect for my colleague those foreign earnings but only up to a the issue of whether salespeople, pur- from Iowa. I enjoy his work and I think 35-percent top corporate rate. chasing agents, line workers, or others he is a good legislator. But in my judg- If the foreign rate is less than the could lose their jobs if the Dorgan-Mi- ment, some of the statements that U.S. 35-percent rate, then residual U.S. kulski tax increase is imposed on com- have just been made are not accurate, taxes are owed on the difference be- panies’ imports. and I would like to at least give a re- tween the U.S. and foreign rates. Keep in mind their amendment would sponse to them so people understand. In another example, if the Singapore attack imports of bananas from Costa First of all, this is not a tax increase. tax is 15 percent and the U.S. tax 35 Rica and coffee from Brazil. That is What a bunch of nonsense. This elimi- percent, then the U.S. will impose an going to cost U.S. jobs. The amend- nates a tax break for those companies additional 20-percent tax on those ment will kill U.S. jobs and the amend- who want to move jobs overseas. This Singapore earnings. The French comment is defeating its own purpose and is very simple. If we are going to shut pany, however, will only pay 15 percent should not be supported in the Senate. down loopholes that incentivize the Singapore tax, no tax in Paris. If the objective of Senators DORGAN moving of jobs overseas and have peo- If we did not allow deferral of that and MIKULSKI is to ensure companies ple call it a tax increase, I am sorry; it additional 20-percent tax, then the U.S. do not reduce U.S. employment by is not. That is not the purpose of it, company today would have to pay 20- round-tripping production, then it is that is not the intention of it, and not percent tax compared to the French equally important to ensure their tax the effect of it. company. The question on repealing increase does not reduce U.S. employ- My colleague talks about the 35-per- deferral is whether we want to hand ment. cent corporate tax rate. I am sorry, he over the world markets to companies Increasing taxes on U.S. companies knows that is a statutory rate. He also from France and Germany. will not bring those jobs back to Amer- knows very few corporations pay a 35- This amendment is being offered pre- ica. A company will only pay taxes if percent tax rate. sumably to save jobs in America, but the company is profitable, and they Mr. President, 61 percent of the U.S. when we have a tax system like they will only stay profitable if they remain domestic corporations in this country want, there is going to be an incentive competitive in their markets. But in pay zero—not 5 percent, 20 percent, 30 for moving those jobs. Repealing defer- the United States, taxes are a 35-per- percent, or 35 percent; they pay zero. ral means we export our high U.S. tax cent cost to profit, and that is where a That is according to a recent GAO re- rates to U.S. operations around the competitiveness disadvantage can port. The rest that do pay do not pay globe. occur when the U.S. company is com- the 35-percent statutory rate. They pay The U.S. has one of the highest cor- peting against foreign companies that substantially less than that. porate tax rates in the world. There are will not incur this tax increase. About 40 to 50 years ago, corpora- very few countries with higher mar- Senator BAUCUS and I, in trying to tions paid 40 percent of the total taxes ginal corporate rates. This means with- develop this bipartisan bill that is be- paid in this country. They now pay less out deferral, U.S. companies will be at fore us, held hearings last July regard- than 9 percent, and the American peo- a continual worldwide disadvantage ing the effects of international comple, individuals, pick up the rest. compared to their foreign competitors. petition within the United States. So I My colleague says this defers taxes; That is why we defer U.S. tax on active think we have a right to believe we are it doesn’t mean we forgive taxes. Of business operations, to allow U.S. com- very familiar with the domestic effects course, it does. This very bill brings to panies to be competitive in the global of these kinds of rate differentials. the floor of the Senate the most gen- marketplace. I would like to close with a quote erous provision I have ever heard of. It Some Senators today propose repeal- from Joseph Guttentag, International says repatriate all your earnings from ing deferral or cutting back. These pro- Tax Counsel for the Clinton adminis- overseas that have never been taxed, posals would export the high U.S. tax tration. He gave this testimony before and we will let you be taxed at 5.25 per- rate to U.S. operations around the the Senate Finance Committee 9 years cent. You repatriate it and we will re- world. That would be fine if all compa- ago, July 21, 1995. He said this: duce your taxes to 5.25 percent. I say nies around the world were paying the Current U.S. tax policy generally strikes a how about my constituents in North high U.S. tax rate, but they are not. reasonable balance between deferral and cur- Dakota? Why don’t we give all those Companies of foreign countries are not rent taxation in order to ensure that our tax constituents—regular people, family subject to our tax laws and are usually laws do not interfere with the ability of our farmers—an opportunity to pay a 5-per- taxed at a lower rate. companies to be competitive with their for- cent tax rate? Why just the folks who That brings us back then to the im- eign-based counterparts. decided to invest overseas? Why not ev- plications of the amendment before the I hope a statement from another ad- erybody? If 5 percent is good enough Senate. Our focus in considering this ministration, particularly from a re- for those who have over $600 billion in amendment must be on the ability of cent Democratic administration, the unrepatriated income, and you say American companies to compete with- Clinton administration, will carry a lot bring it back and we will cut your tax in the United States. The issue is not of weight with both Republicans and rate to 5 percent, let’s do it for the whether we tax foreign earnings cur- Democrats in helping to defeat this folks from Iowa and North Dakota. Let rently but whether we cede the U.S. amendment on which we will soon be me get their names and let’s give them market to foreign competition: You voting. a 5-percent tax rate. compete or you die. I hope Senators will join me in vot- This notion we are not forgiving The Dorgan-Mikulski amendment ing against the job losses that will re- taxes is wrong. Of course we are for- will increase taxes on U.S. companies, sult from this amendment and this tax giving taxes. This bill forgives taxes of but their foreign competitors in the increase that comes on American busi- those that are big enough to earn bil- United States will not face a similar ness with this amendment. lions overseas, and says to them: If you tax increase. This can lead to a loss of The PRESIDING OFFICER. The Sen- want to repatriate it, we will give you domestic market share, or even if mar- ator from North Dakota. a huge, big tax break. ket share is maintained losses may be Mr. DORGAN. Mr. President, I was Let me say with respect to the issue incurred on domestic sales because of sitting here wondering how someone of a company that has never been lo- pricing pressures and uncompetitive would actually support a tax provision cated here with a manufacturing plant, margins created by the additional tax that incentivizes the moving of U.S. deciding to manufacture in China burden. jobs overseas. I thought: That is hard versus here—my proposal, and the The best measure of an economic im- to support. I am going to call this de- amendment we have introduced, deals pact of their tax increase is the very fense the banana defense because my only with sales back into this country. concerns Senators DORGAN and MIKUL- colleague talked a couple of times now So the question that will be asked by

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.098 S05PT1 S4892 CONGRESSIONAL RECORD — SENATE May 5, 2004 someone who is building a manufac- quote from someone from the Clinton out of every seven manufacturing jobs turing plant for the purpose of pro- administration. Let me quote Will since 2000. The State’s economy has ducing the little red wagon called the Rogers. He said: not been able to absorb this increase in Radio Flyer, for a company to decide It’s not what they know that bothers me. unemployed workers, resulting in a where to manufacture this, what the It’s what they say they know for sure that stagnant unemployment rate. underlying provision in law does is to just ain’t so. The Dorgan-Mikulski amendment say: Make a decision. Either build it In this case, this narrow question would repeal the tax incentive for here or build it there. By the way, if with respect to deferral simply asks American companies to move overseas. you decide to build it there—in this whether we want to continue to make Our Tax Code should not endorse the case China—we will give you a tax it beneficial for someone to close a continued loss of American jobs to break. plant here and move it elsewhere, or to companies investing overseas. The Dor- My colleague says this bill closes all answer the question, if requested: gan-Mikulski amendment is the first these things—not true. In fact, it pro- Should I build it here or build it there, part of a prolonged solution to the con- duces a very generous, juicy, big tax to answer the question by saying let’s tinuing loss of American manufac- break at 5.25 percent, and in addition it build it there because our Tax Code turing jobs. The amendment would par- leaves untouched this tax break. provides a benefit for me if I build it tially repeal deferral, and targets the I can quote a good number of econo- there. Move a job to China and our tax repeal to apply only to firms that move mists who say there is embedded in bill rewards you. Keep a job here and production overseas but continue to this tax law a provision that says build you actually face unfair competition sell those products in the U.S. Thus, it here or build it there. Make a deci- because of the provision that is now in the amendment would repeal the com- sion to build it there. Take it offshore. law, the one I want to get rid of. This petitive advantage that companies Take it outside this country. is very simple. I reserve the remainder moving their production facilities off- In my judgment, it ought not be a of my time. shore currently receive. significant choice for this Congress to Mr. KOHL. Mr. President, I rise in At a time when the country’s manu- change this. This is a loophole that support of the amendment of the Sen- facturers are struggling, we cannot ought to be closed. ators from North Dakota and Mary- continue to give a benefit for those With respect to competition, my col- land. I supported this amendment be- companies who send American jobs league talked about competitiveness. cause it repeals an unfair provision abroad. We must bring equity to the Let me ask this question. Let’s assume that pulls jobs away from the Amer- tax code, and bring jobs back to Amer- that you are the corporation that stays ican manufacturing sector. I supported ica. in this country to build a bicycle. Your this amendment because it gives a tax The PRESIDING OFFICER. Who manufacturing plant is here. Now you break to companies who ship jobs over- yields time? are competing with the Huffy bicycle seas and then compete with domestic Mr. GRASSLEY. Mr. President, I company that moved to China. The dif- manufacturers. And I supported this think I have about 31⁄2 minutes. I am ference? They pay less in taxes than amendment because Wisconsin has seen going to take 11⁄2 minutes for myself, you do because you stayed here and a steady decline in manufacturing jobs, and then I hope Senator KYL will get they left. What about that competi- with many of these jobs being sent off- over here. He asked me for 2 minutes. tiveness? What about the competitive shore because the U.S. Government Then that would use up our time. issue of the company that stayed and would not tax their profits. now pays higher taxes than the com- Under current law, a U.S. company The first reaction to the response to pany that left? Incidentally, this com- that moves its manufacturing oper- my remarks that I have that I want to pany did leave. They fired the workers. ations overseas may defer paying U.S. clear up is that the author of the Why? Because it cost too much at $11 taxes on the profits it makes abroad amendment speaks to the point that it an hour to have them keep making bi- until those profits are sent back to the only hits imports coming into the cycles in our country. U.S. This process, known as deferral, United States if a company moved This cannot be obfuscated so much clearly serves as a reward for foreign overseas. The fact is—it may be a flaw that we can’t see what this question is investment and for shifting jobs off in the way it is written—this amend- before the Senate. Do you want to con- American soil. This reward comes at ment hits all imports coming into the tinue to have a Tax Code that the cost of American taxpayers; as United States. incentivizes the movement of jobs much as $2.2 billion over 7 years is lost The second point is, it was stated overseas, or do you want to close the for this misguided incentive. A tax pol- that this was not a tax increase. This loophole? This is not an attack on all icy that moves American jobs abroad amendment raises $6.5 billion. In my ‘‘deferral.’’ This is a much narrower at the expense of American taxpayers— judgment, when you change tax law amendment. The Senate is going to clearly this is not something that Con- and you bring revenue in, that is a tax vote on this, and it is not going to be gress should continue to endorse. increase. able to waltz around and tap dance. In addition to providing an incentive The second issue regarding Huffy This is not about having an American to move overseas, current law puts do- moving overseas, the response to that corporation with a foreign subsidiary mestic manufacturers who keep jobs in is, their competition is in China and in Bangladesh that is producing a prod- the U.S. at a competitive disadvantage. Taiwan. Companies have to do what uct to ship to South Korea, and there- While foreign companies can reinvest they can to meet the competition. fore it must be competitive with a profits abroad without paying any U.S. Would they rather have a Huffy com- company from France. That has noth- taxes, U.S.-based manufacturers in- pany that existed as a U.S. corporation ing to do with this amendment. So in vesting in American jobs have their competing with China and Taiwan addition to the banana defense, we now profits subject to U.S. taxes. Multi- manufacturers or would they rather have the French defense, I guess, or the national companies should pay the have the whole company go out of busi- U.S. corporation against French com- same taxes that domestic companies ness? If you do not meet your competi- petition. I don’t understand that. That pay, and companies keeping jobs in tion, you do not compete you die. is not what this amendment is about. America should not be penalized for Then there was reference to the fact We could debate that at some later doing so. the GAO report says 61 percent of com- point, but it is not what this amend- This is especially true given the con- panies did not pay taxes. That could be ment is about. tinuing job loss in the manufacturing true. But that also includes new com- Mr. President, how much time is re- sector. Wisconsin has been especially panies and it includes companies that maining? hard hit by the loss of manufacturing maybe are dormant; in fact, it does in- The PRESIDING OFFICER. The Sen- jobs to overseas competitors. My State clude all of those. ator has 3 minutes remaining. is one where manufacturing jobs have Here is the significant thing about Mr. DORGAN. I respect those who historically made up the core of our this GAO report: It says 96 percent of disagree with me. They have a right to economy. Due in part to tax incentives all large corporations in America pay disagree. My colleague ended with a such as deferral, Wisconsin has lost one tax.

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.101 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4893 We are back to the issue of what this would not be at a competitive dis- a defense about this, and it started out amendment does or does not do. It does advantage vis-a-vis their European with trade. The Europeans are hitting not do enough. competitors. us with these trade sanctions. Yes, I have to ask the Presiding Officer if I urge my colleagues to defeat the well, we are really weak-kneed on Senator KYL does not arrive and I have amendment of the Senator from North trade. This country has a beef problem 1 or 2 minutes remaining, what do I do? Dakota and support the Finance Com- with Europe, so we slap them around. I want to save the time for him, if I mittee. Do you know what we do with the Eu- can, under the rules of the Senate. Mr. DORGAN. How much time re- ropeans? We slap them around with I yield the floor and save my time for mains? sanctions on truffles, goose liver, and Senator KYL. The PRESIDING OFFICER. Fifteen Roquefort cheese. My God, that will Mr. DORGAN. Senator KYL is here. minutes total on the minority side re- send fear into an adversary. Mr. GRASSLEY. Mr. President, I mains. The Senator from North Dakota If Members want to talk trade, spend don’t have much time remaining, 2 has 21⁄2 minutes. time talking about trade and wonder minutes. Mr. DORGAN. Mr. President, let me why we do not have a spine and back- 1 The PRESIDING OFFICER. The Sen- consume the 2 ⁄2 minutes. Does that in- bone and strong knees to stand up for 1 ator has 30 seconds remaining. clude the 1 ⁄2 minutes? this country for a change. Mr. GRASSLEY. Could the Senator The PRESIDING OFFICER. It does But this is not about trade. This is be kind enough to give him an addi- not. about an insidious, perverse little pro- Mr. DORGAN. Mr. President, Senator tional minute and a half for our side? vision in the Tax Code that says, Move BAUCUS has left the room. Let me con- That is infinitesimal. We will argue for your jobs, decide to build overseas sume 5 minutes, with Senator BAUCUS’s a minute and a half over it. rather than here, and we will give you consent, of the minority time after Mr. DORGAN. I ask unanimous con- a little tax break. which I will yield back the time and I sent that a minute and a half be added If we cannot take a baby step in believe all time will have been yielded to the Republican side and a minute doing this, if we cannot close this loop- and a half be added to our side. back on this issue. Is that correct? The PRESIDING OFFICER. The Sen- hole, what on Earth can we do? Mr. GRASSLEY. I yield Senator KYL With respect to the fact it is alleged ator is correct. my remaining time. Without objection, it is so ordered. this is a tax increase, my guess is al- Mr. KYL. I thank the Senator from Mr. DORGAN. Let me make a couple most everything will be alleged to be a Iowa and I thank the Senator from of comments about the facts. First of tax increase in the future. It does not North Dakota. all, the number of manufacturing jobs matter what you talk about, they will The PRESIDING OFFICER. The Sen- we have lost in this country. This chart say it is a tax increase. Is closing a ator from Arizona. shows the number of manufacturing loophole that is fundamentally unfair, Mr. KYL. Mr. President, it seems to jobs we have lost since the year 2000, a that incentivizes the moving of Amer- me the amendment of the Senator from little over 2.7 million manufacturing ican jobs overseas, is that really a tax North Dakota does both too little and jobs. increase, or is it closing a loophole? Do too much. A lot of thought went into One cannot make the case this is not you want to keep doing this? crafting the bill before the Senate by a problem. Of course, we are losing Should we take taxpayers’ money, staff and members on the Finance manufacturing jobs. The number of incentivize it to say, let’s pay these Committee. It is hard to get this ex- jobs in foreign manufacturing affiliates guys to move bicycles and red wagons actly right. We have done that. This is of U.S. firms has grown by a million in overseas? Or, let’s pay them to move very complicated. an 8-year period. So, of course, they are Fig Newton cookies to Mexico, or pay What I mean by doing too little and gaining jobs. We are losing manufac- them to move tennis shoes to Indo- too much is this: The amendment only turing jobs and they are gaining jobs. nesia. Is that what we want to do, pay affects about 7 percent of the products It is hard to make the case there is not them to do that? That is what exists in according to the Commerce Depart- an issue here. our Tax Code. ment; 7 percent of the goods and serv- Now with respect to the issue of the This is the simplest possible amend- ices these multinational corporations corporations, 61 percent of whom pay ment. If Members want to support produce are imported back into the no taxes according to the GAO, my col- American jobs and want to at least United States. That is the only part of league says, well, probably some of have a neutral Tax Code and want to the new deferral rule that would be af- them are dormant. The U.S. corpora- stop the perversity of saying let’s actu- fected. tions made $2.7 trillion in gross income ally help finance and keep jobs from In that sense, it probably does not do on which they paid zero in taxes. If moving overseas, then vote for this. If much to accomplish the purposes of the that is dormancy, it is an interesting you want to talk about competition be- authors of the amendment. But it does state of affairs, in my judgment. tween Bangladesh and France and too much in the sense that anything Second, the issue of Huffy bicycles. I Costa Rica, and construct all kinds of that impedes the competitive advan- have used the issue of Huffy bicycles interesting theories that have nothing tage of the U.S. corporations and the and the Radio Flyer wagon to make to do with this amendment, then vote quality of their products is going to the point. The point is jobs are migrat- against it. There is nothing wrong with hurt their ability to do business. ing overseas. This Radio Flyer red that. I have lost before. I hope I will What we have tried to do with the de- wagon was made here for a century and not lose today. ferral rules is to even the balance be- now it is being made in China. This This amendment will come up again tween the European corporations, for Huffy bicycle was made here for a long and again because this country should example, and the American corpora- time. Now it is gone. It is made in not be subsidizing the loss of jobs to tions, so our companies are not taxed China. We saw the little red wagons other countries. Those jobs are going more than their competitors. This and Huffy bicycles leave America and in part because they can buy 33 cent an would, to the extent it changes these move to China. hour labor and put 12 people in a room deferral rules, impose a higher tax on With respect to Huffy, the workers and work them 7 days a week and say, American businesses than their Euro- here made $11 a hour. The company if you try to organize as a group of pean counterparts are required to pay. said that is way too much; I will hire a workers, you are fired. If you complain In that sense, it changes this competi- Chinese worker at 33 cents an hour, 7 about an unsafe work plant, you are tive balance. It is exactly what we are days a week, 12 hours a day. fired. So that is the incentive to move trying to get away from. As we did that, we said, We will give jobs overseas. I urge my colleagues to reject the you a tax break. Move this plant to On top of that, we actually, in public amendment of the Senator from North China and we will give you a tax break. policy, say we will buy you a little Dakota, acknowledge the work of the That is what our amendment would cherry on top of the sundae. The cherry Finance Committee which, as I said, shut down. on top of the sundae is you actually get very carefully tried to get this balance I was trying to think how would we a tax break here. The company you are right and ensure American companies construct a defense, or how will I hear competing against, that you left back

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.105 S05PT1 S4894 CONGRESSIONAL RECORD — SENATE May 5, 2004 in the United States—tough luck for not members of the Armed Services Breaux Enzi Murkowski Brownback Fitzgerald Murray them. They are paying higher taxes Committee will have the opportunity Bunning Frist Nelson (NE) than you are. to engage the Secretary in questions Burns Graham (SC) Nickles It seems to me if we cannot think our with regard to their individual con- Campbell Grassley Pryor way through this short little maze, this cerns on this and such other topics as Cantwell Gregg Roberts Chafee Hagel Santorum Congress cannot think its way through they may have. Chambliss Hatch Sessions anything. This is not organizing a two- I thank my colleagues. Many of you Cochran Hutchison Shelby car caravan. This is simple. This is have come to me and spoken about Coleman Inhofe Smith easy. And the choice, when we cast this Collins Jeffords Snowe that, and spoken to Senator LEVIN, and Cornyn Kyl Specter vote, is not going to be complicated at to our leaders. There is always a will- Craig Lieberman Stevens all. Either you believe this incentive ingness on behalf of the Secretary to Crapo Lott Sununu should not be in the Tax Code or you come forward. He will be joined by the DeWine Lugar Talent Dole McCain Thomas believe we ought to continue to sub- Chairman of the Joint Chiefs, the Chief Domenici McConnell Voinovich sidize jobs that are moved overseas. of Staff of the Army, the Acting Sec- Ensign Miller Warner We have more to do. We have a de- retary of the Army, and perhaps oth- NAYS—39 bate on trade that has to come. I don’t ers, because I was very insistent and he Akaka Dorgan Lautenberg expect we will get to the debate on was quite willing to provide a full Bayh Durbin Leahy trade because of the Central American array of witnesses such that the entire Biden Edwards Levin Free Trade Agreement. It should be spectrum of facts now known and Bingaman Feingold Lincoln brought to the floor and debated, but Boxer Feinstein Mikulski available can be shared openly with the Byrd Graham (FL) Nelson (FL) will not be before the election because, Senate and the general public. Carper Harkin Reed I am guessing, the President does not I thank the Chair. I hope all col- Clinton Hollings Reid want to have that debate—I would love Conrad Inouye Rockefeller leagues can arrange their schedules to Corzine Johnson Sarbanes it. Let’s get it here tomorrow, as far as attend these very important meetings. Daschle Kennedy Schumer I am concerned. I yield the floor. Dayton Kohl Stabenow There is much more to discuss on The PRESIDING OFFICER. The mi- Dodd Landrieu Wyden this issue. With respect to this alone, nority manager has 81⁄2 minutes re- NOT VOTING—1 the Senator from Maryland and I have maining. Kerry offered an amendment that is painfully The Senator from Montana. The motion was agreed to. simple and I hope will be painless to Mr. BAUCUS. Mr. President, I yield AMENDMENT NO. 3118 vote for. back whatever time I can yield back. I Mr. President, I yield the floor. The PRESIDING OFFICER. There also suggest the absence of a quorum. are now 4 minutes of debate equally di- The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The ator from Virginia. vided on the Allen amendment No. 3118. clerk will call the roll. The Senator from Colorado. Mr. WARNER. Mr. President, will the The bill clerk proceeded to call the Chair advise the Senate with regard to Mr. ALLARD. Mr. President, I rise to roll. speak in behalf of amendment No. 3118. the time agreements at this point? Mr. GRASSLEY. Mr. President, I ask The PRESIDING OFFICER. Time has This amendment is important to near- unanimous consent that the order for expired on the majority side. ly all States in this time of energy the quorum call be rescinded. Mr. WARNER. Mr. President, can the shortages. It provides for and encour- The PRESIDING OFFICER. Without Senator from Virginia ask for a period ages the use of renewable energy. objection, it is so ordered. of 5 minutes to discuss a matter of im- I am pleased to have cosponsorship All time has expired. portance to all Senators? from Senators MILLER, CLINTON, SCHU- The PRESIDING OFFICER. Without Mr. GRASSLEY. Mr. President, be- MER, and CHAMBLISS. objection, it is so ordered. fore we move on this amendment, I ask Passage of the green bonds provision The Senator from Virginia. unanimous consent that there be 4 is relevant to the JOBS bill. It is an- minutes of debate equally divided prior ticipated to create over 100,000 con- NOTICE OF HEARING AND BRIEFING ON IRAQ to the vote in relation to the Allard struction and permanent jobs. Mr. WARNER. Mr. President, this amendment. It also promotes the large-scale de- morning I had the privilege of engaging The PRESIDING OFFICER. Without velopment and deployment of renew- in a colloquy with the distinguished objection, it is so ordered. able energy generation. This will stim- minority leader with regard to the de- ulate the market for renewable tech- sire of the Senate to have Secretary VOTE ON AMENDMENT NO. 3110 nologies, such as solar, helping to bring Rumsfeld come in open session and re- The PRESIDING OFFICER. The question is on agreeing to the Dorgan down the cost of technology. spond to questions from Senators with I also believe it is important to note regard to the very serious situation of amendment. Mr. GRASSLEY. Mr. President, I that our amendment contains a provi- allegations about the mistreatment of sion which pays for its costs. prisoners in Iraq. move to table the Dorgan amendment and ask for the yeas and nays. In closing, I urge all of my colleagues Senator DASCHLE, Senator FRIST, and to vote for this amendment. It is lim- I—Senator FRIST and I worked on it The PRESIDING OFFICER. Is there a sufficient second? ited only by the amount of total bond- yesterday together; we worked on it ing authority and the fact that each There appears to be a sufficient sec- again today—Senator MCCAIN, Senator State is allowed only one project. I ond. LEVIN—I just left him—so there has think every State can work to take ad- The question is on agreeing to the been a group of us who have worked on vantage of the benefits that this motion. this. amendment will provide. The clerk will call the roll. I just finished a conversation with Madam President, I ask for the yeas The legislative clerk called the roll. Secretary Rumsfeld, and he has always and nays. been quite willing to come up. It is a Mr. REID. I announce that the Sen- The PRESIDING OFFICER. Is there a question of the time and the ability to ator from Massachusetts (Mr. KERRY) sufficient second? get together a team of witnesses to is necessarily absent. There appears to be a sufficient sec- join him. That has now been concluded. The PRESIDING OFFICER (Ms. MUR- ond. So the distinguished majority leader KOWSKI). Are there any other Senators The PRESIDING OFFICER. The Sen- and I have set the time for this to be in the Chamber desiring to vote? ator from Montana. 11:45 on Friday morning for a session of The result was announced—yeas 60, Mr. BAUCUS. I ask unanimous con- approximately 2 hours with the Senate nays 39, as follows: sent that this be a 10-minute vote. Armed Services Committee. Following [Rollcall Vote No. 83 Leg.] The PRESIDING OFFICER. Without that, the respective leaders of the Sen- YEAS—60 objection, it is so ordered. ate will have the usual type of briefing Alexander Allen Bennett Mr. ALLARD. I ask that we yield in S–407, at which time other Senators Allard Baucus Bond back time from both sides.

VerDate May 04 2004 01:10 May 06, 2004 Jkt 029060 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.108 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4895 The PRESIDING OFFICER. All time WELL will not let us do the unanimous for a vote on it in the late morning to- is yielded back. The question is on consent agreement unless we have morrow, with the time to be divided. agreeing to amendment 3118. The yeas some way of disposing of her amend- Mr. GRASSLEY. Madam President, and nays have been ordered. The clerk ment. I have also been contacted by to respond to the Senator from Massa- will call the roll. Senator CORZINE, Senator LAUTENBERG, chusetts, first of all, not involving me The assistant legislative clerk called and Senator FEINGOLD. They will agree but other people that are interested—I the roll. to no more unanimous consent agree- am interested—I have asked other Mr. REID. I announce that the Sen- ments unless they are included in the members to see what could be nego- ator from Massachusetts (Mr. KERRY) order in some way. tiated. There are talks ongoing now is necessarily absent. I repeat: Each of these Senators that range from, hopefully, we can es- The PRESIDING OFFICER. Are there wants this bill passed. None of them is tablish a couple other amendments for any other Senators in the Chamber de- trying to stall. They understand the votes before that. Part of that discus- siring to vote? importance of this legislation. But add sion is seeing if we can reach an agree- The result was announced—yeas 76, up all the time on our side, and it is ment on bringing up the amendment. nays 23, as follows: about 2 hours 45 minutes. That is all However, I don’t have anything to re- [Rollcall Vote No. 84 Leg.] that is remaining on debate time on port to Senator KENNEDY at this point. YEAS—76 our side. I hope we recognize and can Mr. KENNEDY. Again, I don’t want Akaka Crapo Lincoln figure out some way to get through Alexander Daschle Lugar these amendments and get this bill to interfere with the Senator from Allard Dayton McConnell passed. I see no reason we could not do Washington, but I know the Senator Allen DeWine Mikulski has attempted to get this amendment Baucus Dodd Miller it tomorrow easily. Bennett Dole The PRESIDING OFFICER. The Sen- up, at my last count, some 14 times Murkowski over the period of the last 7 or 8 Biden Durbin Murray ator from Iowa. Bingaman Edwards Nelson (FL) months. Now it is before the Senate. Bond Enzi Mr. GRASSLEY. Madam President, Nelson (NE) She is entitled to have it considered. Boxer Feingold first of all, there has been a very good Pryor Breaux Feinstein It is an amendment of enormous im- Reid working relationship between the two Brownback Frist sides on this bill. That is very encour- portance to working families in this Bunning Graham (FL) Roberts Burns Graham (SC) Rockefeller aging. I recognize that upfront. country. We have 85,000 workers who, Byrd Hatch Santorum In regard to the list of amendments, each week, lose their unemployment Campbell Hollings Sarbanes the fact that it is very short, with time insurance. This represents an ex- Carper Hutchison Schumer tremely important issue to hard- Chafee Inouye Smith agreements, is very good news. How- Chambliss Johnson Specter ever, in that list of amendments, there pressed middle-income families that Clinton Kennedy Stabenow are some that are nongermane, some are trying to make ends meet and fac- Cochran Kohl Stevens that are very controversial, some on ing serious issues in terms of the in- Coleman Landrieu Talent our side of the aisle we do not think crease in health care costs, increases in Conrad Lautenberg Voinovich Cornyn Leahy Warner are appropriate to be brought up on tuition, increases in terms of their Corzine Levin Wyden this legislation; and also a reminder utilities, their mortgage payments. Craig Lieberman that we have only dealt with two Re- This is a lifeline to hundreds of thou- NAYS—23 publican amendments at this point and sands of American families. This is a Bayh Gregg Nickles we have dealt with a lot of amend- matter of enormous importance. It is Cantwell Hagel Reed ments on the other side. Now, there is not just a minor amendment. For Collins Harkin Sessions nothing wrong with dealing with more many of us, it is the most important or Domenici Inhofe Shelby Dorgan Jeffords Snowe amendments on one side than on the perhaps the second most important Ensign Kyl Sununu other, and we have been very fair in outside of the overtime amendment on Fitzgerald Lott Thomas how we have approached this. this bill. Grassley McCain I don’t have a response to the Sen- I thank the Senator for Washington NOT VOTING—1 ator from Nevada, the distinguished for her perseverance on behalf of the Kerry Democratic assistant leader. We intend working families of this country, com- The amendment (No. 3118) was agreed to work very closely with him to see if mend her for her diligence in pro- to. we can get this bill to finality. In the tecting their interests, and look for- Mr. GRASSLEY. I move to lay that same way we have gotten this far this ward to following her leadership, hope- motion on the table. week—we have made a great deal of fully getting the opportunity to have a Mr. REID. I move to lay that motion progress—it is because we have had a reasonable period of time and then on the table. good working relationship with the have the Senate express its will. I cer- The motion to lay on the table was Senator from Nevada and the Senator tainly hope we would not have the agreed to. from Montana. blind opposition to this amendment we Mr. REID. Madam President, I have I cannot state an agreement at this have faced in the past when Members spoken to the Democratic leader, I point. I yield the floor. have tried to basically handcuff the have spoken to our manager. On our The PRESIDING OFFICER. The Sen- Senate from being able to give consid- side we have six amendments remain- ator from Massachusetts. eration to this amendment. ing. I mention them by name: Fein- Mr. KENNEDY. Madam President, gold, 5 minutes on his side; Lauten- parliamentary inquiry. Is the Cantwell I commend the Senator from Wash- berg, 30 minutes; Corzine, 30 minutes; amendment now the pending amend- ington for her diligence and persever- Cantwell, 30 minutes; Hollings, 40 min- ment? ance. This is a matter of enormous im- utes; Landrieu, 30 minutes. This bill The PRESIDING OFFICER. The portance and enormous consequence to can be completed in a relatively short Cantwell amendment is the pending the people of my State, I know to the time. I understand the Members would amendment. people in her State, and for people all rather not vote on some of these Mr. KENNEDY. I see the Senator over this country. I commend her for amendments, but I want the record to from Washington on her feet and ready developing the bipartisanship she has reflect we would agree to these very to address the Senate. As I understand, with the Senator from Ohio and other short time limits. There are no sur- she would be willing to set a time for a Senators. This has been a bipartisan ef- prises in any of the amendments. Ev- vote on her amendment sometime in fort she has led. That is the way it eryone knows what they are. Certainly the morning. So we can give the Senate should be because, obviously, the work- on Hollings and Landrieu, we have some idea what the program will be, I ers who need this help are from all agreed with the majority these could am just wondering now whether the parts of the country and represent all be next in order. floor managers would be willing to kinds of different viewpoints. The problem we have, everyone agree to a time limit on the amend- I thank her for her leadership and should understand, is Senator CANT- ment of the Senator from Washington, look forward to following this issue.

VerDate May 04 2004 02:09 May 06, 2004 Jkt 029060 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.110 S05PT1 S4896 CONGRESSIONAL RECORD — SENATE May 5, 2004 Ms. SNOWE. Mr. President, I would We must engage on this issue and we The PRESIDING OFFICER. Is there like to speak to one provision in the must do it now. I thank Senator objection? FSC/ETI tax legislation we are consid- ROCKEFELLER for his leadership and Mr. REID. Mr. President, reserving ering on the Senate floor which is very partnership on this issue, and the the right to object, will the distin- imporant—the broadband expensing Chairman and Ranking Member of the guished chairman of the committee provision. This provision would allow Finance Committee for their support, allow a modification to his request, investments in broadband infrastruc- and I look forward to passing this pro- that the Senator from Washington be ture, or high-speed Internet access, to vision and seeing it enacted this year. allowed to speak for 10 minutes prior be deducted for tax purposes in the The PRESIDING OFFICER. The Sen- to us going into morning business? year the investment was made rather ator from Iowa. Mr. GRASSLEY. Limited to speak- than over several years. The simple Mr. GRASSLEY. Madam President, I ing, and no requests or anything like point of this provision is to stimulate ask unanimous consent that the Sen- that? new technology investment. ate now proceed to a period of morning The PRESIDING OFFICER. Does the We have worked on the bill since business with Senators permitted to Senator so modify his request? mid-2000, and it is time to see it en- speak for up to 10 minutes each. Mr. GRASSLEY. My request would acted. I am particularly pleased to Mr. BAUCUS. Madam President, will be so modified. have worked with Senator ROCKE- the Senator hold back for a second be- The PRESIDING OFFICER. Is there FELLER on this issue and to join him in fore making that request? objection? sponsoring legislation to provide a Mr. GRASSLEY. Yes, I will. Madam Mr. NICKLES. Reserving the right to broadband tax incentive. He and I go President, I withdraw my unanimous object, I want to make sure the Sen- back quite a few years on technology consent request. ator from Washington be allowed to matters. We worked side by side to en- Mr. BAUCUS. I thank the Senator. speak and there be no unanimous con- sure that all of our Nation’s schools The PRESIDING OFFICER. Does the sent requests made pertaining to her are wired for basic Internet service, Senator from Iowa yield the floor? amendment. and that has been a tremendous suc- Mr. GRASSLEY. Madam President, I Mr. REID. Mr. President, if I could cess. I also appreciate the effective withdraw my unanimous consent re- respond, the Senator from Washington work Senator BURNS has done to fight quest and yield the floor. is protected. Her amendment is the for broadband investment. The PRESIDING OFFICER. The Sen- next amendment. I mean, it is an It is time to move beyond basic dial- ator from Montana. amendment that is now before the Sen- up service. Dial-up is adequate for Mr. BAUCUS. Madam President, this ate, and she understands nothing is sending e-mail, and sharing short docu- is a good bill on which we have made a going to happen on this bill until there ments, and browsing the web slowly. lot of progress. There are a lot of good is an agreement in some regard to her But if you need to receive information amendments yet outstanding. It is vote. She is not going to ask at this pe- quickly, or if you need something that amazing how much is in this bill that riod of time for a unanimous consent. is data-intensive like photographs or is so positive. She does not need to be protected. graphics or lengthy documents, then I say to my colleagues on both sides Mr. NICKLES. If the Senator will you need broadband. of the aisle, it is important for us to go Unfortunately, in rural States like yield further, the unanimous consent the extra mile, to see if there is a way mine, broadband deployment is not request only limits time; is that cor- to compromise. I will say that again: proceeding quickly enough. And that is rect? what this provision is designated to ad- both sides of the aisle. I have no objection. Here we have the amendment offered The PRESIDING OFFICER. Without dress—the rural and low-income areas where broadband generally is not al- by the Senator from Washington, and objection, it is so ordered. The Senator from Washington is rec- ready or readily available. It is de- we are kind of at a little bump in the ognized for 10 minutes. signed to help us move to the next gen- road. But this can be resolved. This is Ms. CANTWELL. Mr. President, I re- eration of broadband that some coun- resolvable. I hope very much we are mind my colleagues we are here talk- tries are already rolling out. There are not in a situation where backs stiffen ing about a JOBS bill. That is what we times when it makes sense to help the up and people dig their heels in the market deploy technology more quick- ground and pride becomes the over- are talking about, how we keep jobs in ly, and this is one of those times. Why? riding emotion. Rather, we are very America. So I think it is more than ap- Because here we are taking about close to resolving a very important propriate to be talking about one of infrasturcture, and the Government issue. So I ask that cooler heads pre- the biggest problems in our country can help ensure that all our citizens vail over the evening, to sleep on it, right now, the fact we have not created have access to basic infrastructure so and tomorrow morning—and/or to- jobs. We have lost 2 million jobs since all Americans regardless of their zip night—find a way to resolve this issue; this administration began. It is more code will have the chance to partici- otherwise, people could see the Senate than appropriate to be discussing the pate in—and succeed under—the tre- not at its best. There is an oppor- unemployment benefits American mendous benefits of new technologies. tunity, a real opportunity, for Senators workers need because they have lost It is critical we act quickly in this to show they can work together on jobs, through no fault of their own, area. A report by the Organization for both sides of the aisle on very impor- since 9/11 and have been struggling to Economic Cooperation and Develop- tant matters. get recognition by this body and the ment finds that the United States has We know none of us can have every- other body on unemployment benefits. dropped to sixth in the world in per- thing. We also know for things that are We still have 1.5 million Americans centage of broadband penetration. We important and worthwhile, generally it who have exhausted State benefits and must not sit idly by and allow the takes some give-and-take and com- have not gotten assistance from this United States to fall further behind in promise. We are almost there. body, the Senate, which now wants to this crucial area. I thank the Senators for how far we talk about a JOBS bill. Well, the most In addition to accelerating the de- have come thus far, and I urge us to important jobs issue we are facing in ployment of broadband, the provision work together to find a solution to America right now is that people who will also infuse immediate stimulus for these remaining amendments so we can are trying to go back to work would the economy by encouraging firms to get the bill passed very quickly. love to be getting a paycheck instead invest in high-speed telecom equip- I yield the floor. of an unemployment check, and yet we ment. Furthermore, these new capital The PRESIDING OFFICER (Mr. EN- are not giving them the option to have expenditures will create jobs—equip- SIGN). The Senator from Iowa. support in a program they have already ment manufcturers will expand their Mr. GRASSLEY. Mr. President, I ask paid into through their employer for production capabilities to meet in- unanimous consent that the Senate unemployment benefits. creased demand, and broadband pro- now proceed to a period of morning So what are people across the coun- viders with hire additional employees business, with Senators permitted to try saying? As the Senator from Mas- to install this new infrastructure. speak for up to 10 minutes each. sachusetts pointed out, we have had

VerDate May 04 2004 02:09 May 06, 2004 Jkt 029060 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.015 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4897 something like 15 different attempts to support. The State program has ex- care of 1.5 million. It is not going to get unemployment benefits for workers pired. People are still unemployed, and take care of 2 million people who have who are trying to find jobs but are not they cannot find a job. These people lost their jobs and 1.5 million who have finding jobs available. They are cer- would gladly go back to work, gladly already exhausted State benefits. tainly people who would rather work. go back to getting health benefits, The question is whether this body is The Dayton Daily News recently gladly go back to getting the other going to stand up and do the right said: benefits of being employed, but the thing and come up with a program to What’s troubling . . . is how some Repub- jobs are not there. So the question is expand unemployment benefits for the lican leaders are hoisting another ‘‘Mission whether we are going to do the job we next several months so unemployed Accomplished’’ banner, this one to hide the have said we were going to do. workers in America can have some cer- struggle for more than a million unemployed In fact, you can take the economists tainty they are going to have a future workers who have exhausted state benefits who are also looking at this, because I where they can stay in their home. without finding another job. think part of the other side of the aisle That is not what this Senator is say- would like to say: Don’t worry, it is all I am having a tough time convincing ing. That is what a newspaper in one of going to get better. But even if we dou- the other side of the aisle. Maybe they the hardest hit States is saying about ble last month’s numbers, even if in haven’t heard from their constituents this particular problem, the fact we the next 2 months we created 500,000 or on this issue. I think there are one or cannot simply say on a certain day the 600,000 jobs, it still isn’t going to be two States that may not have lost any economy is better and Americans are enough jobs for the 2 million Ameri- manufacturing jobs. Maybe their con- back to work, when, for the first part cans who have lost their way. So why stituents don’t feel the same pain that of this year, with last month’s num- not put some stimulus into the econ- we do in the Northwest. In 2002 alone, bers, we only created somewhere be- omy. we lost 72,000 jobs in our State, mostly tween 300,000 and 400,000 new jobs. We That is why the Miami Herald said as a result of the downturn after 9/11 have lost 2 million jobs since this ad- last month: Mixed messages, the White and its impact on the aviation indus- ministration has been in power. House gets a boost from strong job try, but certainly other industries as We had an economic report by the ad- growth, but economists say unemploy- well. So we have had a lot of people ministration that they were going to ment will remain a problem. who have continued to look for jobs. create all sorts of jobs in 2002. That did That is because economists are look- We have heard from a lot of these indi- not come about. In 2003 there was an- ing at the numbers and they are say- viduals. We have a Web site anybody other projection. That did not happen. ing: You are still going to have unem- can access at cantwell.senate.gov that Now we are in 2004. And even though ployment. tells you the stories of these individ- the administration said they thought It is no surprise that Alan Greenspan uals in their own words. they were going to create, I think the came before a House committee and, What each person tells over and over number was 2.6 million jobs this year, when asked about whether we should is how much they would like to have a the President’s own economic advisers expand Federal unemployment bene- job, how many job interviews they backed off of those numbers and said: fits, basically said: I think it is a good have gone on, only to find people five We don’t know how many jobs are idea, largely due to the number of going to be created. exhaustees that are out there in Amer- and six times more qualified than they Well, I can tell them, having been in ica. By that he means the number of taking the minimal number of jobs the private sector, trying to determine people who have fallen off the State that are actually being created. That is whether a company is growing at a program and could qualify for Federal why one of the chief economists in the rate in which you can resume hiring is assistance. country, Alan Greenspan, has said the a tough question. So I get that this is I know some of my colleagues have size of the exhaustees alone should a complicated issue, and we do not said they want to cut this program off drive us to expand unemployment ben- know how fast our economy is going to at some point in time: Why should we efits. It would, in and of itself, give us grow. But we know this: We are not keep doing it; the economy is starting the stimulus that would help us return going to find 2 million jobs in the next to pick up. the economy. 6 months. We are not going to hire 2 You do it because these exhaustees We had a vote not that long ago. million Americans who basically have don’t have a job. They can’t pay mort- Fifty-eight Members in this body voted lost their jobs, and in many cases gage payments, take care of health in support of unemployment benefits. through no fault of their own, and put care. Their employer paid into this pro- There was a similar vote, not the exact them back to work in that short a pe- gram for this very benefit. This is the same language, in the House of Rep- riod of time. best economic stimulus this country resentatives. They voted to basically The question is whether we want to could get right now. Giving employees give an extension of unemployment give the American worker who is un- access to the assistance of the Federal benefits through the Federal program. employed an opportunity to receive the program for the next 6 months would So basically majorities in both the Federal benefit this program was cre- generate $11 billion in economic stim- House and the Senate have voted for ated for, what they paid into through ulus. That is for every dollar spent on unemployment benefits. Yet still we do their employer so there could be assist- unemployment benefits, it generates $2 not have a benefit package. ance in tough economic times. of economic stimulus. I think about the States that have The administration was asked wheth- Well, if the last year and a half does er they thought we should do this. Sec- not qualify for tough economic times, I been hard hit, such as Ohio, Pennsyl- vania, Missouri, Washington, Oregon, retary of the Treasury Snow basically don’t know what would. Newspapers said it was something the White House across the country are saying it is time Alaska. Those are States that certainly could use the economic stimulus wasn’t objecting to. We asked the we deal with this. White House in their communications The Dayton Daily News again said in their States to keep companies from not defaulting on mortgage payments, shop. They said they thought it should early last month: get done. Maybe there are brighter days ahead. But keep families in their home, and pro- that’s no comfort now to the unprecedented vide additional stimulus to those sag- Now the question remains, who wants number of laid-off workers, who have scram- ging economies. to hold up this benefit package? The bled without success to find a job and . . . People on the other side of the aisle American workers have paid into this. lost the little bit of help given under state say: At some point in time, the Presi- They want the money they paid into unemployment benefits programs. dent’s economic plan is going to kick the Federal program to give them eco- It cannot be any more plain than in and work. But I don’t think anybody nomic support so we can give people an that. The President is on a bus driving can say it is going to kick in and work opportunity to go back to work when through a State that is basically say- in the next 2 months to the degree nec- jobs are created and not penalize them ing, as crisply and clearly as they pos- essary to take care of the number of for the economic situation they are in sibly can: We need additional help and unemployed. It is not going to take today.

VerDate May 04 2004 01:28 May 06, 2004 Jkt 029060 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.115 S05PT1 S4898 CONGRESSIONAL RECORD — SENATE May 5, 2004 MORNING BUSINESS bers of its Cabinet, backing away from of people who have struggled to make The PRESIDING OFFICER. The Sen- its economic numbers for the year, but ends meet and would rather work. ator’s time has expired. it is also saying they would support an I think it is very important that Con- Under the previous order, the Senate unemployment benefit package that gress act to move forward on this legis- will now proceed to a period of morning would come out of the House and Sen- lation. I know my colleagues would business. The Senator may speak up to ate. I say to the administration, obvi- like to get the FSC/ETI bill done. I 10 minutes in morning business. ously, we are not getting this bill done know they would like to say they f in the timely fashion that would ben- passed something that dealt with jobs. efit most Americans. Maybe they can Let’s be honest. There haven’t been a EXTENSION OF UNEMPLOYMENT come and help in this effort because lot of jobs created in the last 3 years. BENEFITS the preceding Bush administration did We are at a net negative jobs. We are Ms. CANTWELL. Mr. President, a great job supporting the package, at a net negative 2 million jobs lost in there are several other points I would even though jobs were starting to be America. So let’s not kid ourselves. like to make. I know some people are created, to stem the tide of job loss and Job creation will come back. It will thinking, why not do this for a shorter negative impact on the economy, and come back slowly. It will start to pick program. Why not expand the program still the economy started to pick up up, but that pickup is not going to be for maybe another 60 days. The point again. So we should do the same. at the pace to give people relief in is, where are we going to be in 60 days? I think the administration should America and relief that is due to them. Even if, say, we get a report on Friday take some time, as it is riding around Mr. President, while I am not making that says there are 300,000 jobs being Ohio—and some of these middle Amer- a unanimous consent request, I hope created and the next month there are ica States have been hard hit with un- that my colleagues understand how im- 300,000 jobs being created, you still employment benefits—and listen to the portant this is, and that tomorrow we have at that point 1.4 million Ameri- people who have lost jobs. They will will find time to vote on this amend- cans looking for work; that is, people tell them this program is important to ment. Not to vote on this amendment, who have completely exhausted their them, as I just outlined from several again, is to say it is more important to State benefits. newspaper editorials that have been in deal with corporations and their tax in- My constituents are making all sorts the Dayton paper, specifically. I am centives and tax breaks than it is to of choices. They are putting up their sure there are editorials from other deal with the American workers who homes for sale. They are moving in places throughout the Midwest as well. have lost their jobs. I don’t want to with relatives. They are selling family I know we had editorials from more send that message to these high-unem- possessions to pay mortgage payments. than a dozen newspapers wondering ployment States, to those individuals They are trying to hold on so this why we were not moving forward on who thought they supported this con- economy recovers. And they are hoping this legislation. cept of a Federal program, and then the next several months will bring So the point is, we have a case study tell them we have almost $15 billion in good economic news, as I hope it does. in the 1990s—and a good one—that this a Federal fund that was paid into by I hope the next several months brings administration should follow. This ad- their employers, but now they are not good economic news. But even if we ministration should look at the success going to be able to access any of it. I have good economic news, we are not of that program, how jobs were being would rather tell them this body de- going to have the return of 1.4 million created, and still they expanded unem- cided to do the right thing; that while people or 2 million people back to work ployment benefits because they knew we are waiting for the private sector to in the next several months. The ques- it would take several months to put return to a strong economic engine, we tion is, do we want to meet our obliga- that many Americans back to work. are going to do the right thing and give tion under the Federal program and That is what we are talking about people access to the Federal dollars help them. today. We are talking about a jobs pro- from the program they have already In the 1990s we had a very similar sit- posal that really is what we are going paid into; that we are going to help the uation. We had an economic downturn to do to incentivize or disincentivize American workers in their time of and the first Bush administration basi- corporations from moving overseas or greatest need; that our body, this insti- cally had to come up with a program doing business overseas. That is what tution, and the other side, the House of for unemployment benefits. They actu- the FCI/ETI bill is primarily about. Representatives, believe the American ally had already had the program in While we are debating what is good workers deserve to have support. place for more than a year and had to massage the intention of corpora- I hope tomorrow we can work out a good economic news. I think more than tions in America, we should be talking time agreement so this amendment can 600,000 jobs had been created. The ad- about what we are doing to support the be voted on, so we can move forward on ministration still supported another 9- American workers who lost their jobs not only getting the underlying bill month extension to unemployment through no fault of their own. Why try done but getting this legislation benefits. to mastermind and guess about cor- moved, since both bodies have sup- Actually, they supported that 9- porate intentions and incentive in the ported it and a majority of Members month extension, even with a richer tax policy but then leave American have supported the legislation. program than what we are suggesting workers who have a program that is de- I yield the floor and I suggest the ab- today. We are suggesting that the pro- signed to help them out in the cold sence of a quorum. gram ought to go for 13 weeks of Fed- without an opportunity? The PRESIDING OFFICER. The eral program and 13 weeks for very We have fought this battle a couple clerk will call the roll. high unemployment States. At that of times now. We fought it last year The assistant legislative clerk pro- point, the program was 20 weeks. So in when the benefits expired and got it re- ceeded to call the roll. the 1990s, the Bush administration de- instated. We fought it when people ac- Mr. FRIST. Mr. President, I ask cided, even though it had seen more tually lapsed off of benefits and we had unanimous consent that the order for than a half million in job growth—I to get them to understand that when the quorum call be rescinded. think they had several million in job we came back into session, the benefits The PRESIDING OFFICER. Without loss—even though they had seen the were going to be restored. But now objection, it is so ordered. economy pick up, they made the deci- many Americans have lost hope. It has f sion that so many people had been im- been since January 1 these people have pacted, laid off, and could not find been without benefits. Given that in- CINCO DE MAYO work, that it was important to give formation, Americans have tried to Mr. FRIST. Mr. President, on the them access to the Federal program. make the best they can out of a tough fifth of May, 1862, in Puebla, Mexico, a So they expanded the program for an- situation. They have made those tough fighting force of 2,000 peasants con- other 9 months. choices, and if you read the stories on fronted 6,000 well-equipped and Now, I know this administration is my Web site, or talk to constituents, expertly trained French troops, The now, as I said, through various mem- you will see very heartbreaking stories French troops had come to conquer the

VerDate May 04 2004 02:09 May 06, 2004 Jkt 029060 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.118 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4899 small town. Instead, the peasant army Even as we celebrate these important Cinco de Mayo celebrations can be prevailed, and their historic victory is contributions, Hispanics across the Na- large festivals drawing thousands of celebrated each year as Cinco de Mayo. tion continue to face unique chal- people, such as those in San Diego, Los Today, millions across the Americas lenges, including high unemployment, Angeles, Sacramento, San Francisco, will celebrate the spirit of Cinco de stagnant or declining wages, high and San Jose as well as small, more in- Mayo. They will cheer the shared goals school dropout rates, poverty, and lack timate events among neighbors. of independence, liberation, and free- of access to health insurance. The Bush It is very much the same as the way dom. Today, the people of North Amer- administration’s 2005 budget proposal we observe the Fourth of July—both in ica are united in good will. fails to make adequate investments to the variety of ways people choose to Indeed, the relationship between the help improve the quality of life for His- celebrate and in that a specific historic United States and Mexico is closer panics. In fact, his budget proposal event inspired the holiday, which has than it has ever been. We are neighbors cuts funding for small businesses, fails come to symbolize a much broader and we are friends. to adequately fund the No Child Left spirit. Mr. President, 33 million Latinos live Behind Act, eliminates funding for No one would want to limit the in the United States. The large major- dropout prevention, and underfunds meaning of the Fourth of July to a nar- ity, 66 percent, are of Mexican origin. minority health care programs. row celebration of American independ- In my home state of Tennessee, the The President’s budget also provides ence from Great Britain, nor would you Hispanic population has grown by near- tax breaks that benefit the wealthy at reduce Cinco de Mayo to a commemo- ly 1 million people since 1990. the expense of working families. That ration of the Mexican military victory Hispanics are strongly represented in is why I have joined my fellow Demo- in Puebla by itself. our Armed Forces and can claim more crats in Congress in supporting an However, it is important to recall the Congressional Medals of Honor for agenda that increases investments in bravery of the Mexican Army when valor than any other group. key economic, educational, and health- France, under the rule of Napoleon III, The U.S. and Mexico are partners in related programs to make America sought to establish a political and eco- NAFTA. Mexico is our second largest even stronger for future generations nomic foothold in Latin America by in- trading partner. and will continue to fight for these key stalling their own ruler in Mexico. The United States accounts for 60 programs in the 108th Congress. Napoleon’s troops, who had not been percent of all foreign direct investment I hope that today’s Cinco de Mayo defeated in battle for almost 50 years, in Mexico. celebrations serve as an important re- entered Mexico with considerable tech- Mexicans living in the United States minder of the contributions of His- nological advantages over the Mexican send about $9 billion a year home to panics and the need to support addi- Army. The French Army moved west their families. tional investments in programs and to attack Mexico City, mindful that if And more than 500,000 American citi- services that help them build a better the Mexican capital fell, a complete zens live in Mexico. future for their families and for our takeover of Mexico was imminent. So, today, I rise to recognize this his- Nation. On May 5, 1862, the Mexican Army de- toric day and join others in celebrating Mrs. FEINSTEIN. Mr. President, I feated the invading French forces in this day in this spirit. It teaches us a rise today to recognize Cinco de Mayo, the city of Puebla under the command profound lesson: that freedom is a uni- an important day in both Mexican and of General Zaragosa and Colonel versal drive, and ultimately, freedom American history as well as a symbolic Porfirio Diaz. If not for the great cour- will out. day to honor Mexican heritage. age of the Mexican Army, the course of Mrs. CLINTON. Mr. President, I rise Cinco de Mayo pays tribute to the history would be undoubtedly altered. today in recognition of Cinco de Mayo, courage and strength of the people of In my mind, Cinco de Mayo epito- a holiday celebrated in Mexico and in- Mexico and to the profound contribu- mizes what it means for immigrant creasingly in the United States, that tions Mexican Americans have made to communities to flourish, making their commemorates an important victory of our country’s history and culture. own unique additions to American cul- the Mexican Army against the French The U.S. Census Bureau estimates ture. at the Battle of Puebla. In my home that there are nearly 10 million people One San Francisco family, the State of New York and across the Na- of Mexican descent living in my home Ramirezes, who immigrated to the tion, Hispanic communities—particu- State of California alone. Every day, United States from Jalisco, Mexico, in larly the Mexican-American commu- Mexican Americans make huge con- 1955, are truly an American success nity—have embraced this holiday and tributions to our communities in every story. transformed it into a day of recogni- sector of the economy, in every level of Ramon Ramirez and his wife Guada- tion and celebration of the contribu- government, and in every aspect of so- lupe worked several jobs before acquir- tions Hispanics have made in the ciety. ing a San Francisco deli in 1967. Soon United States. Mexican-American leaders such as the space proved too small to accom- Among all cities across the Nation, the late Cesar Chavez, founder of the modate their customers and in 1982, New York ranks 11th in the size of its United Farm Workers Union, have left they expanded and opened Don Mexican population, close to cities indelible footprints in our national Ramon’s restaurant. with long standing Mexican commu- memory. I used to frequent Don Ramon’s when nities such as San Diego, Santa Ana, Organizations such as the League of I was the Mayor of San Francisco and and San Jose, CA. The number of Mexi- United Latin American Citizens, the I was always sincerely impressed with can New Yorkers counted by the U.S. National Council of La Raza, and the the Ramirez family. Ramon and Guada- Census more than tripled in the 1990s, Mexican American Legal Defense and lupe still work every day at Don increasing from 61,772 in 1990 to 186,872 Education Fund collaborate with gov- Ramon’s, arriving before dawn. Their in 2000. Currently, Mexicans constitute ernment, civic, community, and other three daughters remain involved in the third largest Hispanic/Latino popu- organizations to improve economic, running the restaurant, though their lation in New York State after Puerto educational, and civil rights for youngest daughter, Nati, has also pur- Ricans and Dominicans. Latinos. sued another career as director of the As the Nation’s largest minority Truly, a comprehensive snapshot of San Francisco district attorney’s sub- group, Hispanics are adding to our Na- California would be grossly incomplete poena unit. tion’s cultural richness and economic without full representation of the This is only one of many examples of prosperity. Every day they are working Mexican-American community. how Mexican Americans have helped and creating businesses in all sectors Many celebrations with traditional our country to flourish. across the country. Today, one in nine food, music, and parades take place Finally, I am pleased to join every workers in America is of Hispanic de- across the country and throughout American and every Mexican in cele- scent and there are currently 1.2 mil- California on Cinco de Mayo. Hundreds brating this important day in Mexican lion Hispanic-owned businesses with of thousands will gather to embrace history. On Cinco de Mayo we pay trib- annual revenues of $200 billion. and celebrate Mexican heritage. ute not only to the bravery shown at

VerDate May 04 2004 02:09 May 06, 2004 Jkt 029060 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.017 S05PT1 S4900 CONGRESSIONAL RECORD — SENATE May 5, 2004 the Battle of Puebla, we also recognize HONORING WOLFGANG PUCK them as part of our Las Vegas commu- the contributions of Mexican Ameri- Mr. REID. Mr. President, the city of nity. They are very active in charitable cans to our country as well. Las Vegas, in my native State of Ne- activities in Nevada, as well as Cali- f vada, is recognized as the entertain- fornia. Their Puck-Lazaroff Charitable Foundation was established in 1982, and IRAQI PRISONERS ment capital of the world. Our amazing resorts offer many op- has raised more than $5 million for Mr. FRIST. Mr. President, over the tions for fun, but one of their greatest charity. It sponsors the annual Amer- past week we have become aware—in- attractions is world-class dining. ican Food and Wine Festival, which deed, the entire world has learned of Over the last 12 years, many of our raises money for Meals on Wheels. the graphic evidence—of abuse against Nation’s leading chefs have opened res- Wolfgang and Barbara are also major Iraqi prisoners at Abu Ghraib prison. taurants in Las Vegas, transforming supporters of the American Cancer So- We express shock; we express con- our desert city into even more of a cul- ciety, the American Heart Association, demnation of these despicable acts. inary oasis. the Boys and Girls Clubs, Big Brothers That has been expressed on the floor— The man most responsible for this re- and Big Sisters of California and Ne- indeed, throughout the Nation. markable transformation is Wolfgang vada, and the Alzheimer’s Association. The persons who carried these acts Puck. In fact, on May 15, Wolfgang will be out must face justice. The perpetrators Wolfgang Puck was born in Austria. the honored guest at Keep Memory have disgraced themselves and, in the He began his formal training at age 14, Alive, an annual dinner in Las Vegas process, have brought shame to all of inspired by his mother, who was a that combats Alzheimer’s by raising us who cherish justice and decency and hotel chef. By the time he came to this money and public awareness. This dignity. country at age 24, Wolfgang had pre- Moreover, their behavior is deeply event began in 1996 as an intimate din- pared himself for success, but nobody ner party. It has been repeated each un-American. This country is founded could have predicted just how dramatic on those universal principles of human year since, thanks to Larry Ruvo and that success would be. Bobby Baldwin. Last year, Keep Mem- rights and respect for each and every By combining classic French tech- individual. Those disturbing pictures ory Alive had grown to a feast for 300 niques with influences from Asia and people at Postrio. Wolfgang and other show men and women who have aban- California, and by using the finest in- doned America’s values and, in the chefs prepared a memorable dinner, gredients from local purveyors, he has and Muhammed Ali and other celeb- process, jeopardized our efforts to bring changed the way Americans think rities auctioned off some memorable democracy and the rule of law to Iraq. about food and the way chefs prepare items. The evening raised $2.6 million Thousands of honorable men and it. women are working and sacrificing Along the way he has become Ameri- to fight Alzheimer’s. each and every day to bring peace and can’s most famous chef, and created an It is entirely fitting that this year’s freedom to the Iraqi people. We cannot empire comprising a dozen fine dining event at the Mirage will honor Wolf- let these intolerable acts of a few un- restaurants and more than 50 casual gang Puck for his work to combat this dermine the noble work of the over- and quick service establishments. horrible disease. Please join me today whelming majority of our troops. Four of his best restaurants are in in saluting Wolfgang and Barbara for The abusers of Abu Ghraib must face Las Vegas: Spago and Chinois at the all their contributions to the southern justice and they will face justice. In Forum Shops at Caesar’s Palace; Nevada community, and the entire March, the Army charged 6 military Trattoria Del Lupa at Mandalay Bay; country. police officers with physical and sexual and Postrio at the Venetian. f abuse of 20 Iraqi prisoners. Three of the One thing all these places have in six cases have been referred to military common is a remarkable attention to LOCAL LAW ENFORCEMENT ACT trial. The criminal probe into allega- detail. Wolfgang Puck is a person who OF 2003 tions against four other soldiers is con- thinks about everything that could Mr. SMITH. Mr. President, I today tinuing. In total, our military has possibly affect the dining experience. speak about the need for hate crimes launched five separate investigations. Some would even call him a worrier. legislation. On May 1, 2003, Senator An administrative review has resulted The story goes that before his first KENNEDY and I introduced the Local in notices of reprimand filed against Spago restaurant opened, he couldn’t Law Enforcement Enhancement Act, a seven officers and noncommissioned of- sleep for two days because he was wor- bill that would add new categories to ficers this week. The inspector general ried that nobody would show up. Well, current hate crimes law, sending a sig- of the Army and the commander of the people did show up, and they lined up nal that violence of any kind is unac- Army Reserve are also conducting to get in. So Wolfgang’s reaction was ceptable in our society. their own investigations. to worry about how he would ever be On August 9, 2000, police charged four I commend President Bush for his ef- able to feed such a crowd. men in Daly City, CA, for allegedly as- forts to reach out to the Arab world to Wolfgang Puck has been influential saulting two gay men in a fast food res- address this matter. It is important because of his cooking techniques and taurant. that we address these reprehensible his approach to food; almost every I believe that Government’s first acts directly and fully and quickly and American chef has learned something duty is to defend its citizens, to defend in a fully transparent manner. from him. But you don’t have to be a them against the harms that come out Our men and women in uniform are chef to learn from Wolfgang Puck. We of hate. The Local Law Enforcement respected around the world. They are can all learn from his willingness to respected for their professionalism and Enhancement Act is a symbol that can take risks and try new ways of doing become substance. By passing this leg- because they defend the highest of po- things. He has said that he learned litical ideals: individual rights, free- islation and changing current law, we more from his one restaurant that can change hearts and minds as well. dom, justice, and the rule of law. In failed than he learned from the many Bosnia, Afghanistan, Kosovo, Iraq, and that succeeded. f elsewhere, our troops are serving with Wolfgang has a great partner in life HONORING OUR ARMED FORCES honor, with courage, and with profes- and in business—his wife, Barbara sionalism to advance democracy and to Lazaroff. She is an acclaimed architec- PAT TILLMAN advance liberty. tural designer who has created mag- Mrs. BOXER. Mr. President, I rise As the Abu Ghraib investigations un- nificent environments where diners can today to celebrate the life and mourn fold, I do urge my colleagues and ev- appreciate Wolfgang’s food. I’m sure the death of Corporal Patrick D. Till- eryone watching and listening to keep Wolfgang would be the first to ac- man, age 27, who was killed in action that in mind. The vast majority of our knowledge that he couldn’t have ac- in Afghanistan on April 22, 2004. Pat men and women in uniform are serving complished what he has without Bar- Tillman was originally from San Jose, ably and honorably, and through their bara by his side. CA. He was a true hero. heroic efforts, they are advancing our Wolfgang and Barbara and their two Pat Tillman exuded greatness and freedoms and values. sons live in California, but we think of humility throughout his short life. He

VerDate May 04 2004 02:09 May 06, 2004 Jkt 029060 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.103 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4901 was a shining star on and off the foot- ters who died in the line of duty and ABUSE OF IRAQI PRISONERS ball field. In high school at Leland provide support and comfort to the sur- Mr. FEINGOLD. Mr. President, I High in San Jose, CA, Pat was named vivors. share the sense of outrage and disgust the Central Coast Co-Player of the Last year, during National Police that has been expressed by so many Week, I had the sad duty of acknowl- Year for 1993 and earned a scholarship Americans since the allegations and edging the loss of Officer James C. to Arizona State University. At Ari- horrifying pictures of deeply troubling Hesterberg, the first member of the zona State, he led the team to the Pa- abuses at the Abu Ghraib prison in Iraq Alaska Department of Corrections to cific-10 Conference Title and then to have come to light. lose his life in the line of duty. This the Rose Bowl. In 1997, while at Ari- I am particularly sickened by the year, I must sadly acknowledge the zona State, Pat was named Pac-10 De- damage that has been done to the loss of Officer John Watson of the fensive Player of the Year. Pat also brave men and women of the United Kenai Police Department who was fa- knew the value of a good education. He States military. The depraved acts of a tally shot while on duty on Christmas earned a degree in marketing at Ari- few risk tarnishing the reputation of zona State University, while also main- night 2003. On May 11, as part of the National hundreds of thousands of American taining a 3.84 GPA. The Arizona Car- servicemen and women who behave dinals selected Pat in the 1998 NFL Police Week observance, Corrections U.S.A., an association of 90,000 pub- honorably every day, even in extraor- draft where he played hard for the Car- dinarily difficult circumstances. These dinals as a safety. In 2000, the St. Louis licly-employed professional corrections officers, will meet to honor their broth- acts also put our troops at risk, by Rams offered him a substantial in- casting them in the role of abusers, crease in compensation to play for ers and sisters who have performed acts above and beyond in the protec- making it more difficult to gain the them. However, out of loyalty, Pat trust and cooperation of Iraqis. Any- turned it down to stay in Phoenix. tion of public safety. It gives me great pride to recognize time the Geneva Convention is vio- It was Pat’s deep loyalty and char- lated, the framework of basic standards acter that led him to his next career Officer Daniel Bates, an employee of the Alaska Department of Corrections, on which all military personnel and move. After the horrific attacks of 9/11, presently assigned to the Hiland Moun- their families depend is weakened. Pat, who was just returning from his tain Correctional Center, who will re- I am also troubled by the irreparable honeymoon, announced that he was ceive the 2004 Silver Medal of Valor damage done to American power. Our leaving the NFL to join the Army from Corrections U.S.A. power does not come only from mili- Rangers. Pat left behind his new bride On December 31, 2000, Officer Bates, tary might or economic muscle. We Marie and a substantial contract from then assigned to the Ketchikan Correc- also derive power from what we stand the Arizona Cardinals. tional Center, reacted quickly and pro- for. Our commitment to basic human Pat Tillman was not about money or fessionally to an incident involving an rights, to human dignity, and to the fame. He was a remarkable young man inmate who one month prior was con- rule of law gives us power to persuade who put his country and its ideals victed of twelve criminal counts stem- and to lead and to inspire. When this ahead of himself. Pat’s physical ming from the armed robbery of a liq- commitment is called into question, strength and talents were only over- uor store and a convenience store. Two American power is diminished, and this shadowed by his personal integrity. of those counts were for the crime of is a terrible loss. The United States Army posthumously attempted murder. The prisoner in Now that these appalling acts have awarded Pat the Purple Heart, the question was arrested after an all night been exposed and reported around the Meritorious Service Medal, the Silver manhunt during which he shot at po- world, we must proceed to show the Star, the Good Conduct Medal and the lice officers who tried to apprehend world something else—that our mili- Combat Infantryman’s Badge. him at a motel. tary, our political system, and our so- Pat Tillman was a loving husband, The inmate was participating in out- ciety do not condone this behavior, son, and brother. My heart goes out to door recreation at the jail when he that we are capable of a full and trans- his wife Marie, his parents, Patrick, Sr. began to scale the first of two perim- parent accounting for what has hap- and Mary; his two brothers, Kevin and eter fences around the exercise area. pened and how it has happened, that we Richard and the countless others whose He succeeded in scaling the inner will take action to correct the failures lives he touched. I want his family to fence, ignoring orders to stop, and in the system, and that we are com- know that people across California and failed to stop after being struck by a mitted to addressing these abuses throughout our country share their rubber projectile fired by Officer Bates. through the rule of law. grief as we also salute the gift of his After the prisoner breached the outer life and service. fence, the final barrier, Officer Bates f Pat Tillman was a man of great fired at him with live ammunition, DISCLOSING GOVERNMENT strength, courage and patriotism. His bringing him down. WRONGDOING example will continue to inspire count- Given this inmate’s history of vio- less Americans for years to come. It is lence toward law enforcement officers, Mr. AKAKA. Mr. President, today I most appropriate that we honor him it was critical to the public’s safety rise to pay tribute to those public serv- for his outstanding courage and his that Officer Bates acted promptly and ants who step forward to disclose gov- selfless devotion to others and to his decisively to prevent the escape. His ernment waste, fraud, and abuse. Com- country. A hero is gone, but he will not calm and professional actions may monly called whistleblowers, these in- be forgotten. have been instrumental in keeping the dividuals alert Congress and the public f names of one or more Alaska law en- to threats to health, waste of taxpayer forcement officers off of the National money, and other information vital to HONORING ALASKA CORREC- Law Enforcement Officer’s Memorial running an effective and efficient gov- TIONAL OFFICER DANIEL BATES Wall in Judiciary Square. For this we ernment. While there are protections Ms. MURKOWSKI. Mr. President, law are grateful. in place for Federal employees who dis- enforcement officers from around the Our Nation’s professional correc- close government wrongdoing, certain Nation—troopers, police officers, sher- tional officers are said to walk the legal decisions prevent many from iff’s deputies, professional corrections toughest beat in law enforcement. I am coming forward. To underscore the im- officers, conservation officers and pleased to join with Corrections U.S.A. portance of whistleblowers, Time Mag- rangers and federal law enforcement in recognizing one of America’s finest azine called 2002 the ‘‘Year of the Whis- officers—are traveling to our Nation’s officers, Daniel Bates, a veteran mem- tleblowers’’ because of the bravery of Capital for the annual observance of ber of the Alaska Department of Cor- FBI Agent Colleen Rowley, who alerted National Police Week which begins on rections, whose actions personify the Congress to serious institutional prob- May 9 and continues through May 15. department’s motto, ‘‘Vigilance Pride lems at the FBI, and Sherron Watkins National Police Week is a solemn pe- Dedication.’’ and Cynthia Cooper, who blew the riod, during which law enforcement of- I thank the President and yield the whistle on financial mismanagement ficers recognize their brothers and sis- floor. at Enron and WorldCom, respectively.

VerDate May 04 2004 02:09 May 06, 2004 Jkt 029060 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.125 S05PT1 S4902 CONGRESSIONAL RECORD — SENATE May 5, 2004 Today, as in 2002, it is important that mates for the newly enacted Medicare But Perry had not come to invade. during Public Service Recognition prescription drug program. In order to Instead, he planned to deliver a letter Week we acknowledge those who dis- aid these and other employees and pro- to the Emperor, signed by President close information without assurances vide full protection to Federal whistle- Fillmore, proposing ‘‘that the United of protection and pledge to do what we blowers, S. 1358 would codify the ‘‘anti- States and Japan should live in friend- can to provide full protection for those gag’’ provision and allow employees to ship and have commercial intercourse bring cases seeking remedial action for trusted public servants. with each other.’’ When his peaceful in- Congress has a duty to taxpayers to retaliation before the Merit Systems make informed decisions when car- Protection Board, MSPB, an inde- tentions became clear, tension around rying out its legislative, appropriation, pendent, quasi-judicial agency that ad- Edo Bay soon gave way to curiosity as and oversight functions. Such decisions judicates Federal employee appeals. each people sought to learn more about require access to timely and accurate In addition, our bill, the Federal Em- the strange new other. information, and when access is re- ployee Protection of Disclosures Act, Commodore Perry gave the presi- stricted, we are unable to provide over- would overturn certain Federal Circuit dential letter to local officials shortly sight and fulfill our constitutional re- decisions which have denied protection after his arrival, explaining that he to employees who made disclosures in sponsibilities. Only through a credible, would return the following spring to the course of their job duties or re- functioning statute can we protect the receive the Japanese reply. He arrived rights of Federal workers who wish to ported initially to the wrongdoer or a in Edo Bay slightly ahead of schedule, communicate with Congress. Guaran- coworker. S. 1358 would also suspend on February 13, 1854, this time with teeing freedom from retaliation or the Federal Circuit’s exclusive jurisdic- abuse when disclosing critical information over WPA reprisal cases for 5 nine ships anchored near the city of tion to Congress is the underpinning of years, and overturn the wrongly estab- Kanagawa. The cultural exchanges con- the Whistleblower Protection Act, lished ‘‘irrefragable proof’’ standard tinued. After a stunning parade on WPA. imposed by the Federal circuit for land, Perry arranged a 21-gun salute to Congress has worked hard, and con- whistleblowers to qualify for protec- honor the Emperor, and then flew the tinues to work, to provide real whistle- tion. Shogun’s flag from the masthead of one blower protection to Federal employ- Although much press has been given of his ships. He presented his hosts to recent whistleblower cases, it is im- ees. Unfortunately, through a series of with an array of gifts, including books, portant to remember those who have decisions contrary to both statutory maps of America, whiskey, wine, language and congressional intent, the reported allegations of aircraft maintenance violations, water safety regula- clocks, rifles, perfumes, a miniature Federal Circuit Court of Appeals, steam engine with railroad, and tele- which has sole appellate review for the tions, and lapses in our national secu- graph equipment—all of which aroused WPA, has denied full whistleblower rity. Protecting Federal employees protections to Federal workers and who blow the whistle allows us to pro- much awe in the growing crowds. The harmed Congress’s ability to do its job. tect taxpayers and, in recent notable Japanese presented the Commodore In fact, of the 85 retaliation cases de- instances, national security as well. and his officers with gifts from the Em- cided on the merits since 1994, the Fed- That is why the WPA is often referred peror, including scrolls, porcelain tea to as the Taxpayer Protection Act. sets, silks, jars of soy sauce, umbrellas, eral circuit has ruled for the whistle- During Public Service Recognition blower only once. swords, and ornate lacquer ware. They To ensure continued whistleblower Week, I urge my colleagues to remember public servants who have come for- even treated the sailors to a Sumo protection, I introduced S. 1358, the ward and honor them by supporting S. wrestling show. When one Japanese Federal Employee Protection of Disclo- 1358 and strengthening protections for commissioner left an American-hosted sures Act, on June 26, 2003, with Sen- whistleblowers. banquet, he gave Perry a crushing hug ators GRASSLEY, LEVIN, LEAHY, and f and exclaimed, ‘‘Japan and America, DURBIN. Since introduction, we have all the same heart.’’ been joined by Senators Dayton, Pryor, ADDITIONAL STATEMENTS and Johnson. Our bill would strengthen On March 31, after weeks of delicate protections for Federal employees who THE BLACK SHIPS FESTIVAL and complex negotiations, a treaty declaring ‘‘peace and friendship between report government waste, fraud, abuse, ∑ Mr. CHAFEE. Mr. President, this the United States of America and the gross mismanagement, and substantial year marks the 150th anniversary of and specific dangers to public health the signing of the Treaty of Kanagawa, Empire of Japan’’ was signed. The trea- and safety. which opened trade between Japan and ty of Kanagawa opened the seaports of Congress has consistently supported the United States. Rhode Islanders Shimoda and Hokodate to American the principle that Federal employees take great pride in the historic role ships, and granted shipwrecked sailors should not be subject to prior restraint played by Commodore Matthew C. protection in Japan. After the signing, from disclosing wrongdoing. For exam- Perry, USN, who was integral in the the Japanese held a great feast for the ple, every year since 1988 Congress has formation of the treaty. Americans, and there was much cele- included in every Transportation, In 1853, Japan had been almost com- bration. As author Rhoda Blumberg Treasury, and General Government Ap- pletely closed to foreigners for over 200 writes, ‘‘It is remarkable that people in propriations bill an ‘‘anti-gag’’ provi- years, denying trade, refusing ship- sion which prohibits the use of Federal the land of the Shogun could be so gra- wrecked sailors, and, most impor- cious and hospitable to unwanted visi- funds to implement nondisclosure poli- tantly, refusing to serve as a coaling tors from the Black Ships and that the cies that are inconsistent with several station for the growing numbers of open government statutes, such as the steamships slogging the long haul Americans could overcome their preju- WPA of 1989 as amended in 1994, the across the Pacific. Commodore Perry dice against a ‘different’ people and Military Whistleblower Protection Act was dispatched to Japan with full dip- enjoy their company.’’ of 1998, and the Lloyd Lafollette Act of lomatic powers by President Millard Americans and Japanese were gra- 1912, which prohibits discrimination Fillmore for the purpose of opening cious, hospitable, and did enjoy each against government employees who that nation’s doors to foreign trade. other’s company at their first encoun- communicate with Congress. On Friday, July 8, 1853, Commodore ter. And that relationship continues However, more must be done. Since Perry steamed four huge ships into today. The Japan-America Society and we introduced our bill there have been what is now Tokyo Bay. The hulks Black Ships festival of Rhode Island several more public reports of Federal breathed thick dark smoke, and were employees allegedly being fired or instantly dubbed the ‘‘Black Ships’’ by have helped maintain the bonds of threatened with termination or other the shocked citizens of Japan. Their ar- friendship between our two nations. retaliation for communicating with rival set the city of Edo, inhabited by This month, representatives from Congress and disclosing government more than one million people, into Rhode Island will be participating in a wrongdoing to the press. These reports commotion. The Japanese had not ceremony in Newport, Rhode Island’s include the controversy surrounding fought a single war for 256 years, but sister city, Shimoda, Japan, com- the U.S. Park Police and cost esti- now they feared an invasion. memorating the 65th anniversary of

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.127 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4903 that city’s Black Ships festival. I am In 1994, with this invaluable experi- the Senate Committee on Small Busi- proud to draw the Senate’s attention ence and fresh perspective on economic ness and Entrepreneurship, I want to to this historic occasion, and to ex- development issues in the United express my sincere gratitude and ap- press on behalf of my colleagues our States, Andrea returned to her home- preciation for Andrea’s commitment to deep congratulations to Mayor Naoki town of Boston with the hope of start- women entrepreneurs and for her many Ishii, members of the City Council, and ing a nonprofit for women entre- years of creating new opportunities for the citizens of Shimoda, Japan as they preneurs. Her idea was to create a women and their communities. Her host the celebration of the mutual launching pad for all women, regard- work through the Center for Women friendship and shared values between less of background, to start a business. and Enterprise will be greatly missed, our two nations, common bonds that She was particularly concerned with but I am confident that her successor, will last for many years to come.∑ helping disadvantaged women break Donna Good, is well suited to continue f the cycle of poverty and become finan- Andrea’s legacy of accomplishment. I cial self-sufficient. Her efforts led to want to wish Andrea success and good TEACHER APPRECIATION DAY the establishment of a community- luck in whatever the future holds.∑ ∑ Mr. BURNS. Mr. President, I honor based resource where aspiring women f some of the greatest men and women in entrepreneurs learn from those who DR. NORA KIZER BELL the Nation—Montana teachers. In my have the experience and knowledge to ∑ State we are blessed to have educators help others succeed. On October 23, Mr. ALLEN. Mr. President, today I making a difference each day in the 1995, with financial backing from the would like to commemorate the life of lives of our young people. This week is Small Business Administration, the Dr. Nora Kizer Bell, who passed away Teacher Appreciation Week and Mon- Commonwealth of Massachusetts, the on January 24, 2004, after a heroic fight tana educators should hold their heads Bank of Boston, and the Ewing Marion against cancer. Throughout her distin- high. Montana 8th graders have the Kauffman Foundation, Andrea started guished life, Dr. Bell was a great cham- second highest science scores in the CWE. pion of the liberal arts and women’s world. Eighty-four percent of Montana Under Andrea’s leadership and with a education. Among Dr. Bell’s career highlights public school teachers in core academic budget of $350,000, three employees, and was her term as President of Wesleyan fields have full certification and a donated space at Northeastern Univer- College. As the first female president major in their field, ranking Montana sity, CWE developed into a $2.6 million of the college, she implemented numer- as one of the top States—2nd out of nonprofit employing 25 full-time staff ous projects, including a major renova- 50—in teacher qualification. Montana with centers in Boston, Worcester, MA, tion and construction plan, and a new is one of the top 11 States in the per- and Providence, RI assisting nearly campus technology plan. She also centage of high school graduates going 2,000 clients a year. Although CWE has helped increase enrollment, improve on to college. quickly become the model for success- academic quality, and increase the en- Yes, our children are truly fortunate. ful women’s business centers, the im- Our highly qualified teachers not only dowment at Wesleyan. portance of CWE to women entre- In July 2002, Dr. Bell took office as work hard, but they care about each preneurs cannot be summed up with president of Hollins University in Roa- and every student that enters their numbers. noke. During her tenure, she worked classroom. I thank you, Montana As more women experience this hard to make the school a Tier One teachers, for your sense of duty and dream of business ownership, there will university and twice saw Hollins take compassion to our precious future gen- continue to be a need for community the top rank in ‘‘Quality of Life,’’ ac- eration.∑ leaders, like Andrea, who help facili- cording to the Princeton Review. f tate the path from poverty to pros- Dr. Bell, a magna cum laude grad- (At the request of Mr. DASCHLE, the perity through enterpreneurship—lead- uate of Randolph-Macon Women’s Col- following statement was ordered to be ers who can help these women start lege, was an articulate advocate of sin- printed in the RECORD.) small businesses, lift themselves up, gle-gender education. Over the years, and give back to their communities. she wrote on the issue in several pres- ANDREA SILBERT, CEO OF THE As a past president of the Associa- CENTER FOR WOMEN AND EN- tigious publications, including: USA tion of Women’s Business Centers and Today, the Washington Post and the TERPRISE AND LEADER FOR former member of the National Wom- WOMEN IN BUSINESS Christian Science Monitor. For her en’s Business Council, Andrea has been work, she was the recipient of numer- ∑ Mr. KERRY. Mr. President, I would an advocate for women in business not ous awards, including the Order of the like to take this opportunity to honor only in Massachusetts, but across the Palmetto, the highest civilian award Andrea C. Silbert, founder of the Cen- country. Her testimony before the Sen- presented by the Governor of South ter for Women and Enterprise, CWE, ate Committee on Small Business and Carolina. for her dedicated and tireless work on Entrepreneurship in February of 1997 Dr. Bell was the loving spouse of Dr. behalf of women in business. On Fri- helped develop the nationwide network David A. Bell, President of Macon day, after 9 years of outstanding serv- of Women’s Business Centers and State College, and the devoted mother ice, Andrea stepped down as chief exec- helped build a record of support for of three children. She leaves behind a utive officer for CWE. I am pleased to continued and increased funding for wonderful legacy as a mother, a friend take this moment to reflect on women who want to start businesses. and a leader in women’s education.∑ Andrea’s achievements and her con- When Andrea started CWE in 1995, tribution to the growing community of there were only 28 centers in the Wom- f women entrepreneurs. en’s Business Center network. Today, ANTHONY FILIPPIS, SR. AND THE Andrea began her career working for with Andrea’s support, assistance and MICHIGAN ATHLETES WITH DIS- Morgan Stanley in New York, but after outreach through the Association of ABILITIES HALL OF FAME only a few years, left the financial cap- Women’s Business Centers, there are 88 ∑ Ms. STABENOW. Mr. President, I ital of the world to pursue her interest centers in 47 States, the District of Co- rise to recognize a remarkable man and in community economic development. lumbia, American Samoa, and the Vir- his organization—Mr. Tony Filippis, This led Andrea to spend several years gin Islands. Last year, these centers Sr. and the Athletes with Disabilities helping the less fortunate in Costa helped 106,000 clients, but without the Hall of Fame. Rica, Colombia and Brazil. While in devotion and vision of people like An- Winston Churchill once remarked, Latin America, Andrea conducted re- drea, many of the women entre- ‘‘We shall draw from the heart of suf- search on nontraditional exports, preneurs across the country would not fering itself the means of inspiration taught seminars in financial planning have this invaluable resource. and survival.’’ of microloan programs for Women’s Andrea Silbert has not only been a And that is exactly what Mr. Filippis World Banking, and in Brazil helped leader for women in business, but a re- did. disadvantaged young girls with in- sounding voice for social change. On When tragedy struck in 1929, Mr. come-generating projects. behalf of myself and my colleagues on Filippis found inspiration not only for

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.128 S05PT1 S4904 CONGRESSIONAL RECORD — SENATE May 5, 2004 himself, but also for the 1.7 million dis- CARILION MEDICAL CENTER the Idaho Senate, and Lieutenant Gov- abled persons living in my home State NURSES ernor. The Evans family and D.L. of Michigan. Seventy-five years ago, ∑ Mr. ALLEN. Mr. President, today I Evans Bank have made important con- almost to the day, Mr. Filippis’s legs want to congratulate the wonderful tributions to both the private and pub- were mangled in a train accident, forc- nurses at Carilion Medical Center in lic sector in Idaho. ing amputation. Roanoke for recently achieving Magnet Congratulations to the employees, Frustrated by the discrimination Recognition from the American Nurses friends, and family of D.L. Evans on plaguing him in the years that fol- Credentialing Center, ANCC, a division the centennial anniversary. D.L. Evans lowed, he sought change. And change of the American Nurses Association. is a bank with a proud history, impres- he found. The mission of the ANCC is to pro- sive current achievements, and a prom- Mr. Filippis accepted a position as mote excellence in nursing and health ising future. I wish the bank and its the apprentice of Carl Wright, who care globally through credentialing employees the best as they continue to worked for a company that made his programs and related services. Their serve the communities and families of ∑ prosthetic legs; 10 years later they designation of Magnet Recognition is Idaho. founded their own company, Wright & the highest honor that can be bestowed f Filippis. upon hospital nurses. Currently, PAGE COUNTY HIGH SCHOOL 2003 Since its founding, Wright & Filippis Carilion Medical Center is one of just BOYS’ CROSS COUNTRY AND has grown into one of the only compa- 102 health care organizations in the CHEERLEADING TEAMS nies in the United States that offers U.S. to have received this recognition ∑ Mr. ALLEN. Mr. President, I am complete equipment services for the from the ANCC. very pleased today to recognize the disabled, from state-of-the-art pros- Last November, I had the oppor- great achievements and dedication of thetic limbs to public education about tunity to tour the Carilion Medical the Page County High School Boys’ rehabilitation. Center. During my visit, I got to see Cross Country and Cheerleading teams. More remarkably, however, is what firsthand the outstanding dedication Both teams finished their outstanding Mr. Filippis has done for the spirit of and commitment that the nurses pro- 2003 seasons by winning State cham- the disabled community in Michigan. vide their patients. I am pleased today pionship titles. In June 1999, he founded the Athletes to recognize the exceptional nurses at Throughout the season, the cross with Disabilities Hall of Fame. Carilion Health Center on their tre- country and cheerleading teams Annually, the Hall of Fame recog- mendous achievement and wish them showed the determination of a cham- ∑ nizes the top Male and Female Athletes continued success. pionship team. They worked continu- of the Year, as well as identifying a f ously to develop needed skills, per- Lifetime Achievement Award winner severe as athletes and follow the lead- HONORING D.L. EVANS BANK ON and other Hall of Fame inductees. ership of their coaches. 100 YEARS OF SERVICE The Hall of Fame, however, does This is the third State title in 4 years ∑ more than recognize the immense ath- Mr. CRAPO. Mr. President, I today for the Panthers Boys’ Cross Country letic achievement of Michiganians with honor D.L. Evans Bank on reaching a Team. In addition, the Panthers have disabilities. It also tells their stories so tremendous milestone—100 years in won the Shenandoah District regular that other people with disabilities can business. D.L. Evans bank is a finan- season championship for six consecu- draw strength and inspiration from cial institution in the largest sense of tive seasons and have now been them. that word. It is a significant, estab- crowned District Champions for 5 years lished organization with branches sole- It tells stories of people like Cheryl in a row. ly in my home State of Idaho, and Angelelli who, despite being confined Congratulations to the members of widely recognized for quality, personal- to a wheelchair due to spinal cord dam- the Page County High School Boys’ ized banking services to the commu- age, has proven herself a formidable Cross Country Team: Adam Atkins, nity. Today I honor the Evans family opponent in a swimming pool. Nathan Batman, Steve Beers, Wayne and their employees for their long, Beers, Zach Bouldin, Tommy Copeland, Among other achievements, she proud history of financial service to Jeff Frazier, Nathaniel Nelson, Ethan claimed a national title with one gold Idahoans and many others. Price, Todd Somers, T.J. Stoneberger; and four silver medals at the 1999 U.S. In 1904, D.L. Evans and a group of and their Coach Stanley Price. National Disability Championships. pioneer businessman met and organized This is also the cheerleading team’s Ranking 10th in the world and second Cassia County’s first bank. Despite the third victory at the Virginia High in the U.S. in the 100-meter breast floods, fires, droughts, and even grass- School League Group A State stroke and the 200-meter individual hoppers that have wreaked havoc on its cheerleading championship in 4 years. medley, she earned a spot on the customers, the bank has survived many The Panthers have now won seven con- paralympic swimming team for the 2000 tough economic times. As other banks secutive Shenandoah District Cham- Games in Sydney, Australia. around the country were closing their pionships and five consecutive Region It tells stories of people who also give doors, D.L. Evans Bank was expand- B cheerleading titles. back to their community. Ms. ing—moving from its one-story frame I would also like to congratulate the Angelelli is a member of several advi- building to a two-story stone head- members of the Page County sory councils for people with disabil- quarters in the early 1900s. From that Cheerleading Team: Brittany Aldrige, ities and her expertise is sought by the original Albion branch, the bank has Heather Alger, Casey Burke, Ashley management of concert halls and sta- opened locations in Boise, Burley, Me- Campbell, Caitlin Cave, Elizabeth diums on how to make their venues ridian, Ketchum, Jerome, Rupert, and Colopy, Tiffany Comer, Amanda more accessible to their disabled pa- Twin Falls. It is now the second largest Cubbage, Kara Greber, Stephanie trons. community bank head quartered in Grimsley, Kendrick Harris, Preston In the manner that Churchill called southern Idaho with $388 million in as- Harris, Felicia Jenkins, Sara Maiden, for, Mr. Filippis took his painful expe- sets and $345 million in deposits. Kayla McPherson, Clay Nevitt, rience of discrimination and used it as The Evans family’s participation in Vanessa Prince, Tiara Rodgers, Holly fuel to try to prevent those with dis- the Idaho State Government has been Shifflett, Sean Stewart, Nicole Taylor, abilities today from feeling the same no less impressive. The bank’s founder, Kevin Tester, Aaron Williams, Whitney sense of alienation he had. Through his D.L. Evans, served in the Idaho Senate Williams, Megan Yager; and their organization, others with disabilities from 1903–1904 and 1923–1924. The cur- Coaches, Barbara Hilliard, Brandy can be honored for their achievement rent President, John V. Evans Sr., has Strickler and Kevin Cubbage. and be a source of motivation to oth- served in numerous government capac- I am pleased to congratulate all of ers. ities including as Governor of Idaho, the athletes and the coaches on the We appreciate his hard work and Mayor of Malad City, State Senator Page County Boys’ Cross Country and thank him.∑ and Majority and Minority Leader of Cheerleading teams. They have made

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.130 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4905 Page County and the Commonwealth of Hunsucker, Bonnie Klein, Brandon perseverance, teamwork and sports- Virginia proud of their great achieve- McCurdy, Kdee Meidinger, Zach Mor- manship. The benefits of participating ments. Keep winning.∑ row, Candace Myers, Andrew Ofstad, in athletics can prove valuable in the f Kiel Rafter, Chris Rossmith, Kai daily lives of student-athletes whether Smith, Kate Taylor, and Christine at school or at work in their commu- DISTINGUISHED MONTANANS Woidtke. nities. Each of these student-athletes ∑ Mr. BAUCUS. Mr. President, I rise Pat Danley is the teacher whose ex- is a leader and a winner, not just in the today with great pride to honor a group pertise, guidance, and encouragement water but also in the classroom. of distinguished Montanans. Alyson that helped these students receive this I congratulate Coach Bernadino and Mike and Thomas Andres, Montana’s honor. Pat Danley is a veteran govern- the University of Virginia Swim and 2004 Milken Educator Award recipients ment and political science teacher at Dive teams on their 2004 ACC Cham- deserve recognition for their out- Polson High School. I commend Pat on pionship and wish them continued suc- standing work and service to our State his ability to prepare these students cess in the future. Keep winning.∑ and to the children they teach every for this competition. f day. These students have demonstrated a SAMUEL HOPKINS SHRUM Public service is the most noble strong understanding of the U.S. Con- ∑ thing a person can do. Whether it is stitution and the Bill of Rights. Here Mr. ALLEN. Mr. President, I am service to one’s church, community or in Congress, I think we can all recog- pleased today to recognize Mr. Samuel government, there is nothing more nize the value of fostering civic com- Hopkins Shrum, a native of Dayton, honorable. Alyson and Thomas are at petence and responsibility. These stu- VA, who was honored this year for 55 the top of a lengthy list of quality dents are Montana’s future leaders, and years of perfect attendance by the Ro- tary Club of Harrisonburg, VA. Mr. teachers in Montana to stand among I am proud to recognize their accom- Shrum’s commitment to the Harrison- their fellow American teachers to re- plishment.∑ burg Rotary is just one example in a ceive this national award. f The Milken Educator Award provides lifetime of dedication and hard work. public recognition and a $25,000 hono- 50TH ANNIVERSARY OF THE An architectural engineering grad- rarium to teachers, principals and FLORENCE WOMAN’S CLUB uate of the Virginia Polytechnic Insti- other educators who have a proven ∑ Mr. BUNNING. Mr. President, I rise tute, Mr. Shrum later attended West- minster Choir College in Princeton, NJ record of excellence in education. to congratulate the Florence Woman’s for post-graduate studies. He began his Alyson, a natural science teacher at Club of Florence, KY on the recent professional career with George E. East Valley Middle School, and Thom- celebration of its 50th anniversary. Shrum & Son, eventually becoming a as, a science teacher at St. Labre The Florence Woman’s Club was production engineer at Newport News Catholic Indian School, both have founded on April 20, 1954. Its goal was Shipbuilding and Dry Dock Company. strong records of excellence. In fact, I simply to make the city of Florence a Hard work and dedication led him to was recently honored to recognize better place to live. The causes that become President of Nielson Construc- Alyson as Montana’s 2004 Teacher of the club has lent its time to are almost tion Company in 1962 where he served the Year. too numerous to mention. They have until his retirement in 1976. The com- In Montana, there is little difference been involved in raising money to fight pany grew from a small operation of between our schools and our commu- cancer, working at local veterans’ hos- seven employees to nearly 300 while nities. This award highlights the great pitals, and helping with the preserva- Mr. Shrum served as executive vice- quality of teachers we have in Montana tion of historic buildings in the area, president, general manager, treasurer and spotlights the good things hap- to name just a few. and director, before being named its pening in our schools. The citizens of northern Kentucky president. Alyson and Thomas are two of Mon- are fortunate to have the services of Today, I congratulate Mr. Shrum for tana’s high quality teachers that are the Florence Woman’s Club. This orga- his dedication and commitment to helping to shape our State’s future. nization’s example of dedication, hard service in the Harrisonburg community They are creating an environment that work and compassion should be an in- and wish him continued success.∑ encourages learning, instilling a curi- spiration to all throughout the Com- f osity and a desire to learn—all of monwealth of Kentucky. which will produce a more educated They have my most sincere apprecia- H. ODELL ‘‘FUZZY’’ MINNIX workforce. A better educated work tion for this work, and I look forward ∑ Mr. ALLEN. Mr. President, I am force will spur job creation and trans- to their continued service to Kentucky. pleased today to recognize Mr. H. Odell late into a stronger economy with I have no doubt that they will be just ‘‘Fuzzy’’ Minnix for his community more good-paying jobs. The best way to as productive in their next 50 years as service and leadership. Mr. Minnix re- ensure Montana’s future is through a they have been in their first 50. Con- cently retired after serving three terms well-educated work force. gratulations.∑ on the Roanoke County Board of Su- We in Montana are very fortunate to f pervisors, including several years as be able to claim teachers like Alyson the board’s chairman. During his 12 UNIVERSITY OF VIRGINIA SWIM Mike and Thomas Andres as our very years on the Board of Supervisors, Roa- AND DIVE TEAMS own. They are playing a vital role in noke County saw significant improve- our State’s future. I commend Alyson ∑ Mr. ALLEN. Mr. President, I am ment in its quality of life; in recent and Thomas for all they have done and pleased today to recognize the 2003–2004 years, the county was recognized as I am confident they will continue to University of Virginia Men’s and Wom- one of the best school systems in the serve their students well. en’s Swimming and Diving teams for Nation and the community’s continued I would also like to recognize Polson their hard work in winning the 2004 commitment to expansion and growth High School as Montana’s 2004 winner ACC Championship. resulted in the creation of more jobs of the ‘We the People’ Competition. By These athletes, under the strong and opportunity in the region. winning the State competition, nine- coaching of Mark Bernadino, devoted a Throughout his life, Fuzzy Minnix teen of our State’s brightest govern- tremendous amount of time and energy has been a community leader and vol- ment students and their teacher quali- to studying, training and competing. It unteer. He was the recipient of the Ro- fied to represent Montana in the Na- was through their endless drive and anoke Valley Big Brother of the Year tional Civics Competition on the dedication that they were able to be- Award and has been an avid supporter United States Constitution. come ACC Champions this season. of youth sports, having been Head The names of the 19 students who are As a former student-athlete at UVA, Football Coach at Hidden Valley Jun- receiving this honor are as follows: I understand the impact that athletics ior High School. Mr. Minnix also served Charlie Cooper, Chance Dupuis, Sky play in the development of an individ- as Head Softball Coach, Assistant Var- Fredrickson, Ashley Gilchrist, Kasey ual’s character and life. Sports teach sity Football Coach and Assistant Var- Harwood, Rosanna Ho, Chad us important lessons of self-discipline, sity Track Coach at Cave Spring High

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.135 S05PT1 S4906 CONGRESSIONAL RECORD — SENATE May 5, 2004 School. Over the years, he has re- H. Con. Res. 408. Concurrent resolution ceived on May 3, 2004; to the Committee on mained active as a Virginia High congratulating the University of Denver Commerce, Science, and Transportation. School League Football and Basketball men’s hockey team for winning the 2004 EC–7331. A communication from the Para- legal Specialist, Federal Aviation Adminis- official. NCAA men’s hockey national championship, and for other purposes. tration, Department of Transportation, A Roanoke native, Mr. Minnix began The message also announced that transmitting, pursuant to law, the report of his distinguished career serving 4 years a rule entitled ‘‘Modification of Class E Air- in the U.S. Air Force. After his mili- pursuant to 22 U.S.C. 3003 note, and the space: Hays, KS’’ (RIN2120–AA) received on tary service, he entered a career in the order of the House of December 8, 2003, May 3, 2004; to the Committee on Commerce, air traffic control industry. A graduate the Speaker appoints the following Science, and Transportation. of the FAA Air Traffic Control Acad- Member of the House of Representa- EC–7332. A communication from the Para- emy in Oklahoma City, Mr. Minnix has tives to the Commission on Security legal Specialist, Federal Aviation Adminis- tration, Department of Transportation, worked as an Air Traffic Controller at and Cooperation in Europe: Mr. MCIN- TYRE. transmitting, pursuant to law, the report of airports in Norfolk, Dulles, Roanoke a rule entitled ‘‘Airworthiness Directives: and Lynchburg. f Rolls Royce Deutschland (RRD) TAY 611–8. Among his professional recognitions, MEASURES REFERRED TAY 620–15, TAY 650–15, and TAY 651–54 Tur- Fuzzy Minnix was the winner of the bofan Engines’’ (RIN2120–AA64) received on Roanoke Federal Employee of the Year The following concurrent resolutions May 3, 2004; to the Committee on Commerce, award and the FAA Education were read, and referred as indicated: Science, and Transportation. EC–7333. A communication from the Para- Facilitator of the Year award for the H. Con. Res. 380. Concurrent resolution recognizing the benefits and importance of legal Specialist, Federal Aviation Adminis- Eastern Region. tration, Department of Transportation, Mr. Minnix and his wife, Janet, have school-based music education; to the Com- mittee on Health, Education, Labor, and transmitting, pursuant to law, the report of two sons. They are active members of Pensions. a rule entitled ‘‘Airworthiness Directives: the Ghent Grace Brethren Church, H. Con. Res. 408. Concurrent resolution Boeing Model 737–100, 200, 300, 400, and 500 where Fuzzy has served as a Moderator congratulating the University of Denver Airplanes’’ (RIN2120–AA64) received on May and Sunday School Superintendent. men’s hockey team for winning the 2004 3, 2004; to the Committee on Commerce, The Roanoke region will surely miss NCAA men’s hockey national championship, Science, and Transportation. EC–7334. A communication from the Para- the leadership and talents that Mr. and for other purposes; to the Committee on the Judiciary. legal Specialist, Federal Aviation Adminis- Minnix displayed on the county’s tration, Department of Transportation, Board of Supervisors. I congratulate f transmitting, pursuant to law, the report of him on his community service and wish EXECUTIVE AND OTHER a rule entitled ‘‘Revocation of Class D Air- him well in his retirement.∑ COMMUNICATIONS space Area: Chicago, IL’’ (RIN2120–AA66) received on May 3, 2004; to the Committee on f The following communications were Commerce, Science, and Transportation. DAVIS COINER ROSEN laid before the Senate, together with EC–7335. A communication from the Para- ∑ Mr. ALLEN. Mr. President, today I accompanying papers, reports, and doc- legal Specialist, Federal Aviation Adminis- uments, and were referred as indicated: tration, Department of Transportation, would like to commemorate the life of transmitting, pursuant to law, the report of a respected leader and a great friend to EC–7325. A communication from the Para- a rule entitled ‘‘Airworthiness Directives: Si- the Commonwealth of Virginia, Mr. D. legal Specialist, Federal Aviation Adminis- korsky Aircraft Corporation Model S–76 A, Coiner Rosen of New Market, who tration, Department of Transportation, B, and C Helicopters’’ (RIN2120–AA64) re- passed away on March 13, 2004. transmitting, pursuant to law, the report of ceived on May 3, 2004; to the Committee on a rule entitled ‘‘Airworthiness Directives: Commerce, Science, and Transportation. Mr. Rosen’s contributions have left Airbus Model A319, A320, and A321 Airplanes an indelible mark on the Common- EC–7336. A communication from the Para- Doc. No. 2002–NM–18’’ (RIN2120–AA64) re- legal Specialist, Federal Aviation Adminis- wealth of Virginia. The Soldiers Con- ceived on May 3, 2004; to the Committee on tration, Department of Transportation, federate Cemetery, Shenandoah County Commerce, Science, and Transportation. transmitting, pursuant to law, the report of Historical Society and the Mount EC–7326. A communication from the Para- a rule entitled ‘‘Airworthiness Directives: Jackson Museum are just a few of the legal Specialist, Federal Aviation Adminis- Airbus Model A319, A320, and A321 Airplanes’’ projects that benefited from his gen- tration, Department of Transportation, (RIN2120–AA64) received on May 3, 2004; to erosity, vision and leadership. transmitting, pursuant to law, the report of the Committee on Commerce, Science, and a rule entitled ‘‘Amendment of Class E Air- Throughout his life, Coiner Rosen dem- Transportation. space: Lexington, TN’’ (RIN2120–AA66) re- EC–7337. A communication from the Para- onstrated great dedication to the pres- ceived on May 3, 2004; to the Committee on legal Specialist, Federal Aviation Adminis- ervation of the natural beauty and his- Commerce, Science, and Transportation. tration, Department of Transportation, torical significance of the Shenandoah EC–7327. A communication from the Para- transmitting, pursuant to law, the report of Valley. Because of his tireless efforts legal Specialist, Federal Aviation Adminis- a rule entitled ‘‘Airworthiness Directives: and unwavering dedication, genera- tration, Department of Transportation, Dornier Model 328–100 Airplanes’’ (RIN2120– tions of Virginians and Americans will transmitting, pursuant to law, the report of AA64) received on May 3, 2004; to the Com- be able to visit and gain a greater un- a rule entitled ‘‘Establishment of Class E mittee on Commerce, Science, and Transpor- Airspace: Kwigillingok, AK’’ (RIN2120–AA66) derstanding of our heritage. tation. received on May 3, 2004; to the Committee on EC–7338. A communication from the Para- Today we remember the remarkable Commerce, Science, and Transportation. legal Specialist, Federal Aviation Adminis- life of Mr. D. Coiner Rosen and com- EC–7328. A communication from the Para- tration, Department of Transportation, mend the positive contributions he legal Specialist, Federal Aviation Adminis- transmitting, pursuant to law, the report of made to Virginia. The dedicated and tration, Department of Transportation, a rule entitled ‘‘Airworthiness Directives: selfless service he provided throughout transmitting, pursuant to law, the report of Bombardier Model CL–600–2C10 (Regional Jet his years to preserve the history of our a rule entitled ‘‘Establishment of Class E Series 700 & 701), and CL–600–2D24 (Regional Commonwealth and our Nation will Airspace: Ruby, AK’’ (RIN2120–AA) received Jet Series 900) Airplanes’’ (RIN2120–AA64) re- on May 3, 2004; to the Committee on Com- benefit Americans for years to come.∑ ceived on May 3, 2004; to the Committee on merce, Science, and Transportation. Commerce, Science, and Transportation. f EC–7329. A communication from the Para- EC–7339. A communication from the Para- MESSAGE FROM THE HOUSE legal Specialist, Federal Aviation Adminis- legal Specialist, Federal Aviation Adminis- tration, Department of Transportation, tration, Department of Transportation, At 5:04 p.m., a message from the transmitting, pursuant to law, the report of transmitting, pursuant to law, the report of House of Representatives, delivered by a rule entitled ‘‘Establishment of Class E a rule entitled ‘‘Airworthiness Directives: Ms. Niland, one of its reading clerks, Airspace: Jamestown, KY’’ (RIN2120–AA66) Empresa Brasilera de Aeronautica S.A. announced that the House has agreed received on May 3, 2004; to the Committee on (EMBRAER) Model EMB–120 Airplanes’’ to the following concurrent resolu- Commerce, Science, and Transportation. (RIN2120–AA64) received on May 3, 2004; to EC–7330. A communication from the Para- the Committee on Commerce, Science, and tions, in which it requests the concur- legal Specialist, Federal Aviation Adminis- Transportation. rence of the Senate: tration, Department of Transportation, EC–7340. A communication from the Para- H. Con. Res. 3780. Concurrent resolution transmitting, pursuant to law, the report of legal Specialist, Federal Aviation Adminis- recognizing the benefits and importance of a rule entitled ‘‘Establishment of Class E tration, Department of Transportation, school-based music education. Airspace: Juneau, AK’’ (RIN2120–AA) re- transmitting, pursuant to law, the report of

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.134 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4907 a rule entitled ‘‘Airworthiness Directives: EC–7350. A communication from the Para- Whereas, in November 2003, long-term job- Bombardier Model DHC–8–401 and 402 Air- legal Specialist, Federal Aviation Adminis- lessness reached a twenty-year high, and planes’’ (RIN2120–AA64) received on May 3, tration, Department of Transportation, nearly one-fourth of the unemployed have 2004; to the Committee on Commerce, transmitting, pursuant to law, the report of been out of work for at least half a year; and Science, and Transportation. a rule entitled ‘‘Airworthiness Directives: Whereas, in November 2003, the nation’s EC–7341. A communication from the Para- Boeing Model 757–200 and 200CB Airplanes’’ unemployment rate remained at five and legal Specialist, Federal Aviation Adminis- (RIN2120–AA64) received on May 3, 2004; to nine-tenths percent, and Washington’s unem- tration, Department of Transportation, the Committee on Commerce, Science, and ployment rate was among the highest in the transmitting, pursuant to law, the report of Transportation. country at six and eight-tenths percent; and a rule entitled ‘‘Airworthiness Directives: EC–7351. A communication from the Chief, Whereas, Congress and the President origi- Airbus Model A330–301, 321, 322, 341, and 342 Regulations and Administrative Law, Coast nally approved temporary extended unem- Airplanes Model A340–211, 212, 213–311, 312, Guard, transmitting, pursuant to law, the re- ployment compensation to provide assist- and 313 Airplanes’’ (RIN2120–AA64) received port of a rule entitled ‘‘Safety/Security Zone ance to unemployed workers who were un- on May 3, 2004; to the Committee on Com- Regulations: [Including 95 Regulations]’’ able to find new jobs before exhausting their merce, Science, and Transportation. (RIN1625–AA00) received on May 3, 2004; to regular benefits, and to stimulate the econ- EC–7342. A communication from the Para- the Committee on Commerce, Science, and omy by injecting dollars directly into local legal Specialist, Federal Aviation Adminis- Transportation. communities; and tration, Department of Transportation, EC–7352. A communication from the Regu- Whereas, unemployed workers in most transmitting, pursuant to law, the report of lations Coordinator, Centers for Medicare states could receive up to thirteen weeks of a rule entitled ‘‘Airworthiness Directives: and Medicaid Services, transmitting, pursu- federal temporary extended unemployment Boeing Model 747–400F Airplanes’’ (RIN2120– ant to law, the report of a rule entitled compensation; and AA64) received on May 3, 2004; to the Com- ‘‘Medicare Program: Changes to the Criteria Whereas, unemployed workers in states mittee on Commerce, Science, and Transpor- for Being Classified as an Inpatient Rehabili- suffering from severe economic distress such tation. tation Facility’’ (RIN0938–AM71) received on as Washington could receive up to twenty-six EC–7343. A communication from the Para- weeks of federal temporary extended unem- legal Specialist, Federal Aviation Adminis- May 3, 2004; to the Committee on Finance. EC–7353. A communication from the Regu- ployment compensation; and tration, Department of Transportation, Whereas, Congress adjourned without pro- transmitting, pursuant to law, the report of lations Coordinator, Centers for Medicare and Medicaid Services, transmitting, pursu- viding for a further extension of unemploy- a rule entitled ‘‘Airworthiness Directives: ment compensation benefits after December Pilatus Aircraft Ltd. Models PC–12 and PC– ant to law, the report of a rule entitled ‘‘Medicare Program; Prospective Payment of 2003; and 12/45 Airplanes’’ (RIN2120–AA64) received on Whereas, across the nation, more than one System for Long–Term Care Hospitals: An- May 3, 2004; to the Committee on Commerce, million unemployed workers are expected to nual Rate Updates and Policy Changes’’ Science, and Transportation. exhaust their regular benefits in the first (RIN0938–AM84) received on May 3 , 2004; to EC–7344. A communication from the Para- quarter of 2004; and the Committee on Finance. legal Specialist, Federal Aviation Adminis- Whereas, in Washington, more than twen- EC–7354. A communication from the Chair- tration, Department of Transportation, ty-five thousand unemployed workers are ex- man of the Council of the District of Colum- transmitting, pursuant to law, the report of pected to exhaust their regular benefits in bia, transmitting, pursuant to law, the re- a rule entitled ‘‘Airworthiness Directives: the first quarter of 2004; and Aerospace Technologies of Australia Pty Ltd port of a D.C. Act 15–418, ‘‘Unemployment Whereas, these unemployed workers are Airplanes’’ (RIN2120–AA64) received on May Compensation and Domestic Violence left with few, if any, job prospects or other 3, 2004; to the Committee on Commerce, Amendment Act of 2004’’; to the Committee means of assistance; and Science, and Transportation. on Governmental Affairs. Whereas, Federal temporary extended un- EC–7345. A communication from the Para- EC–7355. A communication from the Chair- employment compensation benefits helped legal Specialist, Federal Aviation Adminis- man of the Council of the District of Colum- these hard-working people and their families tration, Department of Transportation, bia, transmitting, pursuant to law, the re- put food on the table and pay their bills transmitting, pursuant to law, the report of port of a D.C. Act 15–417, ‘‘Disposal of Dis- while they looked for work; and a rule entitled ‘‘Airworthiness Directives: trict–Owned Surplus Real Property in Ward 8 Whereas, Federal temporary extended un- McDonnell Douglas Model DC–9–14, 15, 15F, Temporary Amendment Act of 2004’’; to the employment compensation injected cash 31, 32, 32 (CD–9C), 32F (C–9A, C–9B), 33F, 34, Committee on Governmental Affairs. into troubled economies throughout the na- and 34F Airplanes and Model DC–9–21, DC–9– EC–7356. A communication from the Chair- tion and in Washington; and 41. and DC–9–51 Airplanes’’ (RIN2120–AA64) man of the Council of the District of Colum- Whereas, the economic and labor market received on May 3, 2004; to the Committee on bia, transmitting, pursuant to law, the re- conditions that warranted federal temporary Commerce, Science, and Transportation. port of a D.C. Act 15–416, ‘‘Commission on Se- extended unemployment compensation still EC–7346. A communication from the Para- lection and Tenure of Administrative Law persist; and legal Specialist, Federal Aviation Adminis- Judges Non–Liability Temporary Act of Whereas, if federal temporary extended un- tration, Department of Transportation, 2004’’; to the Committee on Governmental employment compensation benefits are not transmitting, pursuant to law, the report of Affairs. extended, workers and their families will a rule entitled ‘‘Airworthiness Directives: EC–7357. A communication from the Chair- suffer severe economic hardships and states McDonnell Douglas Model DC–9–15 Air- man of the Council of the District of Colum- such as Washington will be deprived of this planes’’ (RIN2120–AA64) received on May 3, bia, transmitting, pursuant to law, the re- crucial economic boost: Now, therefore, 2004; to the Committee on Commerce, port of a D.C. Act 15–415, ‘‘Freedom Way Des- Your Memorialists respectfully pray that Science, and Transportation. ignation Act of 2004’’; to the Committee on Congress and the President extend and make EC–7347. A communication from the Para- Governmental Affairs. retroactive the federal temporary unemploy- legal Specialist, Federal Aviation Adminis- EC–7358. A communication from the Chair- ment compensation program. Be it tration, Department of Transportation, man of the Council of the District of Colum- Resolved, That copies of this Memorial be transmitting, pursuant to law, the report of bia, transmitting, pursuant to law, the re- immediately transmitted to the Honorable a rule entitled ‘‘Airworthiness Directives: port of a D.C. Act 15–414, ‘‘Language Access George W. Bush, President of the United Airbus Model A310 and A320 Airplanes’’ Act of 2004″; to the Committee on Govern- States, the Secretary of the Department of (RIN2120–AA64) received on May 3, 2004; to mental Affairs. Labor, the President of the United States the Committee on Commerce, Science, and Senate, the Speaker of the House of Rep- Transportation. f EC–7348. A communication from the Para- resentatives, and each member of Congress legal Specialist, Federal Aviation Adminis- PETITIONS AND MEMORIALS from the State of Washington. tration, Department of Transportation, POM–413. A joint memorial adopted by the POM–414. A resolution adopted by the transmitting, pursuant to law, the report of Legislature of the State of Washington rel- a rule entitled ‘‘Airworthiness Directives: House of Representatives of the Legislature ative to the federal temporary unemploy- of the State of Michigan relative to treat- Saab Model SAAB 2000 Airplanes’’ (RIN2120– ment compensation program; to the Com- AA64) received on May 3, 2004; to the Com- ment of chronic diseases; to the Committee mittee on Health, Education, Labor, and on Health, Education, Labor, and Pensions. mittee on Commerce, Science, and Transpor- Pensions. tation. HOUSE RESOLUTION NO. 170 EC–7349. A communication from the Para- HOUSE JOINT MEMORIAL 4031 Whereas, an estimated 125 million Ameri- legal Specialist, Federal Aviation Adminis- Whereas, over the past few years, the na- cans suffer from at least one chronic illness, tration, Department of Transportation, tional economy has struggled unsuccessfully which includes such maladies as asthma, ar- transmitting, pursuant to law, the report of to rebound from the recession, and a strong thritis, diabetes, heart disease, mental ill- a rule entitled ‘‘Airworthiness Directives: and sustainable recovery remains elusive; ness, and many cancers. Approximately 60 McDonnell Douglas Model DC–9–10, 20, 30, 40, and million people are afflicted with more than and 50 Airplanes’’ (RIN2120–AA64) received Whereas, there are two million four hun- one of these conditions; and on May 3, 2004; to the Committee on Com- dred thousand fewer jobs today than when Whereas, chronic illnesses, which are re- merce, Science, and Transportation. the recession began; and sponsible for 7 of every 10 deaths, are the

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.025 S05PT1 S4908 CONGRESSIONAL RECORD — SENATE May 5, 2004 leading cause of death in our country. More value of helping women and families facing a of the State of Florida relative to the protec- than 75 percent of state Medicaid spending variety of very personal difficulties. With tion of crime victim’s rights; to the Com- goes toward the treatment of chronic ill- the strong societal implications of the good mittee on the Judiciary. nesses, and more than half of Medicaid work being done at pregnancy care centers HOUSE MEMORIAL NO. 335 across our state, these centers are per- spending treats Medicaid enrollees who have Whereas, the rights of a victim of violent forming a great volume of services that more than one chronic disease; and crime, being capable of protection without clearly are carried out for the public benefit: Whereas, the health care system of the denying the constitutional rights of those Now, therefore, be it United States could more accurately be accused of victimizing him or her, should not Resolved by the house of representatives, called a ‘‘sick care’’ system, as most costs be denied, and That we memorialize the Congress of the are incurred in the treatment of acute epi- Whereas, a victim of a violent crime United States and the Michigan Department sodes of chronic illnesses that, in many should have the right to reasonable and of Community Health to develop collabo- cases, could be avoided or lessened by pre- timely notice of any public proceeding in- rative relationships with pregnancy care ventive measures. Many chronic diseases can volving the crime and of any release or es- centers in Michigan. We urge that any as- be mitigated through improved diet, in- cape of the accused, and sistance made available to help with medical creased exercise, avoiding tobacco use, or Whereas, a victim has the right to be in- and abstinence education programs be ad- other management steps. In spite of this, our cluded in such public proceeding and to be ministered in a manner that does not com- country spends only a fraction of its health reasonably heard at public release, plea, sen- promise the values of the centers; and be it care money on prevention; and tencing, reprieve, and pardon proceedings, further Whereas, many studies have demonstrated and Resolved, That copies of this resolution be widespread problems with the quality of care Whereas, a victim has the right to adju- transmitted to the President of the United delivered to individuals with chronic ill- dicative decisions that duly consider the vic- States Senate, the Speaker of the United nesses. These studies often cite the absence tim’s safety, interest in avoiding unreason- States House of Representatives, the mem- of appropriate screening and follow-up care, able delay, and just and timely claims to res- bers of the Michigan congressional delega- inadequate coordination of treatment among titution from the offender, and tion, and the Michigan Department of Com- health care providers, and many preventable Whereas, these rights should not be re- munity Health. and costly complications; and stricted except when and to the degree dic- Whereas, there are structural barriers to POM–416. A resolution adopted by the tated by a substantial interest in public safe- improved treatment of chronic illnesses. ty or the administration of criminal justice Specifically, Medicaid and Medicare do not House of Representatives of the Legislature of the State of Michigan relative funding for or by compelling necessity: Now, therefore, encourage preventive steps or better coordi- be it nation for the treatment of people with more DNA testing; to the Committee on the Judi- ciary. Resolved by the Legislature of the State of than one disease. Clearly, with the financial Florida, That the Congress of the United HOUSE RESOLUTION NO. 193 pressures in health care and the aging of our States is requested to enact a proposed population, we need to take stronger steps to Whereas, one of the most significant amendment to the Constitution of the deal with chronic conditions in a more effec- breakthroughs in the area of crime fighting United States to protect the rights of crime tive manner: Now, therefore, be it is DNA testing. This scientific technology victims. Be it further Resolved by the house of representatives, has had a dramatic impact in protecting in- Resolved, That copies of this memorial be That we memorialize the Congress of the nocent people accused of crimes and identi- dispatched to the President of the United United States and the United States Depart- fying murderers, rapists, and other violent States, to the President of the United States ment of Health and Human Services to make criminals. Because of the effectiveness of Senate, to the Speaker of the United States the treatment of chronic diseases a higher this tool, there is enormous frustration House of Representatives, and to each mem- priority. We urge federal policy makers to among citizens and law enforcement profes- ber of the Florida delegation to the United transform the regulatory, financial, and clin- sionals that there is a large backlog of cases States Congress. ical structures for dealing with chronic dis- awaiting laboratory testing, both here in eases, including more support for preventive Michigan and across the country; and POM–418. A joint memorial adopted by the measures, better coordination of care, and Whereas, in spite of state and federal ef- Legislature of the State of Washington rel- the removal of regulatory barriers within forts to date, there remains in Michigan a ative to the Aganda family of Selah, Wash- Medicaid and Medicare and be it further backlog of over 74,000 cases awaiting DNA ington; to the Committee on the Judiciary. Resolved, That copies of this resolution be testing. It is estimated that Michigan State HOUSE JOINT MEMORIAL 4041 transmitted to the President of the United Police labs can expect 50,000 new DNA sam- States Senate, the Speaker of the United ples per year. At the current level of funding Whereas, the plight of the Aganda family States House of Representatives, the mem- available, it is expected that only 42,000 of of Selah, Washington has touched the hearts bers of the Michigan congressional delega- these can be processed annually, adding to of citizens all over the state; and tion, and the United States Department of the backlog of cases; and Whereas, Tomas Aganda, his wife Judy Health and Human Services. Whereas, this lag in testing represents a Aganda, and their daughter Jennylyn genuine threat to public safety. There have Aganda face concerted and repeated efforts POM–415. A resolution adopted by the been well-publicized reports of new violent by the United States Government to deport House of Representatives of the Legislature crimes being committed by people who were this family back to the Philippines; and of the State of Michigan relative to preg- on the streets solely because tests were still Whereas, the Aganda family, including nancy care centers in Michigan; to the Com- pending. Police across the state are con- sons Herbie and Khmson and daughter mittee on Health, Education, Labor, and fident that, if the backlog of cases were to be Stephanie, have been outstanding members Pensions. eliminated, thousands of unsolved serious of the Selah community for over a decade; crimes, including murders and rapes, would and HOUSE RESOLUTION NO. 167 be solved. The magnitude of removing so Whereas, the Aganda family lawfully en- Whereas, pregnancy care centers, which many violent criminals from society cannot tered this country on October 22, 1990, and are also known as crisis pregnancy centers, be ignored; and shortly thereafter purchased a small laundry are located in Michigan and across our coun- Whereas, the issue of finding ample re- business in the Selah community; and try and provide vitally needed help to women sources to conduct DNA tests on a timely Whereas, Judy Aganda’s parents are and families at difficult times in their lives. basis is a substantial security issue for our United States citizens who live in Yakima; These centers offer free, confidential, and nation. The federal nature of this issue is and compassionate services, which range from further underscored by the fact that violent Whereas, the Aganda family first sought pregnancy testing and childbirth classes to criminals often move around the country. an investor’s visa so that they could stay help with housing, counseling, and medical Clearly, this issue is vital to the safety of and contribute their energy and talents to referrals; and our citizens: Now, therefore, be it this community and Country, but were de- Whereas, pregnancy care centers encourage Resolved by the house of representatives, nied because the business was considered too women to make positive choices in life by That we memorialize the Congress of the small to support the family; and providing them with accurate and complete United States to increase the level of federal Whereas, the business is viable and has information. This information covers such funds available to the states for DNA test- supported the family for over a decade; and key topics as nutrition, prenatal care, adop- ing; and be it further Whereas, Judy Aganda has a cancerous tion service, and parenting; and Resolved, That copies of this resolution be growth as the base of her skull that requires Whereas, many pregnancy care centers transmitted to the President of the United continued treatments that would not be across the country also offer classes in absti- States Senate, the Speaker of the United available to her in the Philippines; and nence education, including programs carried States House of Representatives, and the Whereas, United States District Court out in schools; and members of the Michigan congressional dele- Judge Fred Van Sickle, in granting a six- Whereas, the work of pregnancy care cen- gation. month stay of the deportation order, noted ters is largely conducted by volunteers, with that the United States Government’s insist- contributions of time, talent, and financial POM–417. A memorial adopted by the ence on deporting Judy Aganda, in the face support from people who seek the intrinsic House of Representatives of the Legislature of her life-threatening condition, was a

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.051 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4909 ‘‘magnitude of constitutional violation that Resolved, That copies of this resolution be rected to the President of the United States is what I regard as a manifest injustice’’; and transmitted to the President of the United of America, Honorable Dick Cheney, Vice Whereas, the protection of the six-month States Senate, the Speaker of the United President of the United States of America, stay will end April 17, 2004, but the need for States House of Representatives, and the to the Speaker of the U.S. House of Rep- a compassionate and reasoned resolution of members of the Michigan congressional dele- resentatives, to the Majority Leader of the this crisis remains: Now, therefore, gation. U.S. Senate, and to Honorable Trent Lott, Your Memorialists respectfully pray that U.S. Senator, Honorable Thad Cochran, U.S. the United States Government end its con- POM–420. A resolution adopted by the City Senator, and Honorable Gene Taylor, U.S. certed efforts to deport the Aganda family Council of the City of Gulfport of the State Representative to Congress, and the Gov- and to instead provide them an opportunity of Mississippi relative to same sex mar- ernor and Lieutenant Governor of the State to remain in this country, especially in light riages; to the Committee on the Judiciary. of Mississippi, the Speaker of the House of of the fact that their daughter Stephanie, RESOLUTION Representatives of the State of Mississippi, who is a United States citizen, will be twen- Whereas, the Mayor and City Council rec- the President Pro Tem of the Mississippi ty-one years old in 2005 and will then be able State Senate, and the Harrison County dele- to file an immigrant visa for her parents; ognize that marriage as an exclusive ceremo- nial relationship between a man and a gation to the Mississippi Legislature, such and further, other officials in government as the Mayor That is the United States Bureau of Citi- woman is not only traditional, but is a principle upon which this country was founded, or City Council may direct to receive a copy zenship and Immigration Services, acting in thereof. concert with the Department of Homeland and is a union that has been held sacred in society and essential to the moral value sys- Security, is unwilling or unable to provide POM–421. A resolution adopted by the Sen- this compassionate relief, then we call upon tem in the City of Gulfport, State of Mis- sissippi, and throughout this land; and that ate of the General Assembly of the State of the members of our state’s congressional del- Tennessee relative to funding for the Juve- egation to seek relief for the Aganda family state and local tax laws, criminal laws, marital benefits, rights and benefits arising from nile Accountability Block Grant; to the through the passage of a private bill of relief. Committee on the Judiciary. Be it the spousal relationship and dependents’ Resolved, That copies of this Memorial be rights are structured in this country histori- SENATE RESOLUTION NO. 110 immediately transmitted to the Honorable cally and presently to a man and woman (op- Whereas, the Juvenile Accountability George W. Bush, President of the United posite sex) marital relationship; and Block Grant (JABG) was enacted in the 2002 States, Tom Ridge, Secretary of the Depart- Whereas, it is recognized that same sex re- reauthorization of the Juvenile Justice and ment of Homeland Security, Eduardo lationships are offensive to many citizens in Delinquency Prevention Act; and Aguirre, Jr., Director of the U.S. Bureau of this country for traditional, personal, and Whereas, this grant provides dollars for use Citizenship and Immigration Services, the religious reasons, and that marriages of a by states and units of local government to President of the United States Senate, the man and woman have always been celebrated promote greater accountability in the juve- Speaker of the House of Representatives, and as proper, and always will be acknowledged nile justice system; and each member of Congress from the State of as natural, proper and built and honored Whereas, between 1998 and 2002, the State Washington. upon a foundation of values of the United of Tennessee received $20,757,000 in JABG States of America; and the recognition of funds for accountability-based juvenile jus- POM–419. A resolution adopted by the same sex marriages on the other hand will tice system programs; and House of Representatives of the Legislature have a devastating effect on the moral tradi- Whereas, rural counties across the State of the State of Michigan relative to granting tions and on the laws and legal system of the have received funds to assist with juvenile a federal charter to the Korean War Veterans country, and shall ultimately mandate mar- court services and with decreasing the back- Association; to the Committee on the Judici- riage unions to be ordained within religious log of juvenile cases; and ary. denominations against serious religious be- Whereas, the types of programs in Ten- HOUSE CONCURRENT RESOLUTION NO. 24 liefs of certain faiths thereby bringing about nessee currently being funded by the JABG Whereas, as our nation witnesses once a dissolution of freedom of religion in this include: (1) intensive probation services; (2) again the sacrifices of our fellow citizens Country; and residential observation and assessment serv- taking up arms to preserve liberties, we have Whereas, believing that States should have ices; (3) intensive after-care services: (4) al- reawakened our sensitivity to the impor- a right to protect its traditions and values, ternative school and summary adventure- tance of service to veterans from all of especially when confirmed by the will of the based programs; (5) additional juvenile court America’s wars. Organizations that work to people, and for the purpose of protecting the officers and referees to handle cases; (6) im- help and advocate on behalf of veterans help family and its values, the Governing Author- proved data systems for tracking juvenile fulfill a promise between our country and its ity of the City of Gulfport hereby desires to cases; and (7) new youth and drug courts for defenders; and memorialize its support of the position ad- diversion from the regular juvenile justice Whereas, the Korean War Veterans Asso- dressed by President George W. Bush that an system; and ciation is the only veterans organization amendment to the United States Constitu- Whereas, because of the JABG funds, juve- comprised exclusively of Korean War vet- tion should be placed by the legislative nile courts in rural areas, which normally erans. This group has established an excel- branch of the United States of America on have minimal resources; now have a greater lent record of service to those who served the ballot to allow the electorate to decide variety of services to meet more individual- and suffered in Korea and their families; and whether or not laws prohibiting recognition ized needs; and Whereas, however, the Korean War Vet- of same sex marriages are legitimate and not Whereas, because of the services enabled erans Association is one of the few veterans to be overruled by the Courts: Now therefore, by the JABG funds, juvenile offense referrals groups of its size operating without a federal be it in Tennessee for crimes such as homicide, charter. Legislation is currently pending in Resolved by the Mayor and City Council of robbery, aggravated assault, rape, larceny, Congress in both the House of Representa- Gulfport, Mississippi, as follows: and burglary have been reduced by 16 percent tives (H.R. 1043) and the Senate (S. 478) to Section 1. That the matters, facts, and between 1997 and 2001; and grant a federal charter; and things recited in the Preamble hereto are Whereas, the JABG funds are providing for Whereas, the long overdue granting of a hereby adopted as the official findings of the seven staff positions and community-based federal charter would enable the association Governing Authority. services through OASIS Center, YCAP Posi- to significantly enhance its efforts to help Section 2. That United States President tive Beginnings program, Save Our Children needy Korean War veterans and their fami- George W. Bush be, and he is hereby offi- and Frank Reed Memorial Tutoring Pro- lies. With a charter, which would extend to cially commended by the Mayor and City gram, all of which are community-based it the same status as other veterans groups, Council of the City of Gulfport, Mississippi, youth serving non-profit agencies in Nash- the Korean War Veterans Association would for his position statement and proposal that ville, Tennessee; and be able to further its work and participate the legislative branch of the Government of Whereas, because of services provided by more fully with other groups. A federal char- the United States of America enact legisla- JABG funds, the Metropolitan Nashville/Da- ter also would permit the organization to as- tion to allow the electorate of the country to vidson County juvenile court’s central insist in processing claims for benefits; and vote on an amendment to the United States take diversion unit was able to divert 1,700 Whereas, as our nation marks the fiftieth Constitution that will clearly establish that youth out of the juvenile justice system; and anniversary of the end of military hostilities laws prohibiting recognition by the States of Whereas, JABG funds are being used in Da- on the Korean Peninsula, granting the fed- same sex marriages are constitutionally vidson County to support an onsite mental eral charter would be most appropriate: Now, valid; and the Governing Authority of the health specialist in the juvenile court, who therefore, be it City of Gulfport, Mississippi hereby makes facilitates intervention with the mental Resolved by the house of representatives (the publicly known is support of this position by health cooperative and provides the court senate concurring), That we memorialize the President Bush. with information on youth who are acting in Congress of the United States to enact legis- Section 3. That this Resolution shall take ways that warrant evaluation; and lation to grant a federal charter to the Ko- effect immediately upon its passage, and Whereas, it is necessary to maintain JABG rean War Veterans Association; and be it fur- shall be spread upon the minutes of the Gulf- funds to continue the success of reducing ju- ther port City Council, and copies shall be di- venile crime in Tennessee and providing

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.055 S05PT1 S4910 CONGRESSIONAL RECORD — SENATE May 5, 2004 more individualized, accountability-based and recertification of voting system hard- benefits when the imprisonment extends for interventions for youth involved with the ju- ware and software and the adoption of vol- a period of at least 30 days. These benefits venile courts: Now, therefore, be it untary voting system guidelines pursuant to include a variety of health services, includ- Resolved by the senate of the one hundred the Help America Vote Act of 2002; and be it ing some that require a threshold of eligi- third general assembly of the state of Tennessee, further bility of 90 days of internment; and That the continued success in the reduction Resolved, That the Clerk of the Senate Whereas, many people strongly feel that of juvenile crime in Tennessee and the in- transmit duly authenticated copies of this the length of time served as a POW nec- crease of vital services provided to children resolution to the members of the Ohio Con- essary to receive special benefits is far too who are in the juvenile criminal system is gressional delegation, to the Speaker and long. The sacrifice being made by members dependent upon the renewal of Juvenile Ac- Clerk of the United States House of Rep- of our military who are incarcerated as pris- countability Block Grant funds by the fed- resentatives, to the President Pro Tempore oners and the conditions they face are such eral government. Be it further and Secretary of the United States Senate, that the 30-day requirement is entirely inap- Resolved, That the Senate strongly urges and to the news media of Ohio. propriate; and the United States Congress and the Presi- Whereas, much stronger protections should dent of the United States to restore funding POM–423. A joint memorial adopted by the be extended to the men and women who risk for the Juvenile Accountability Block Legislature of the State of Washington rel- everything in defense of their country and Grants because of the tremendous value ative to the State’s DVA health care system; their fellow citizens. Creating a minimum these funds provide for local communities in to the Committee on Veterans’ Affairs. threshold for POW benefits eligibility would Tennessee. Be it further SENATE JOINT MEMORIAL 8040 send an important message to our military Resolved, That the Chief Clerk of the Sen- Whereas, there are 670,000 veterans who that our country is making a true commit- ate is directed to transmit enrolled copies of have chosen to call the great State of Wash- ment to these heroes commensurate with this resolution to each member of the Ten- ington home; and their suffering and sacrifices: Now, therefore, nessee Congressional Delegation, to the Hon- Whereas, these citizens are deserving of a be it orable George W. Bush, President of the world class health care system to deal with Resolved by the house of representatives, United States, to the Speaker and Clerk of injuries and diseases resulting from their That we memorialize the Congress of the the United States House of Representatives, selfless service to our country; and United States to enact legislation to reduce and to the President and Secretary of the Whereas, Washington State has signifi- the threshold of eligibility for Prisoner of United States Senate. cantly fewer veterans being served by the War benefits to one day of imprisonment; United States Department of Veterans Af- and be it further POM–422. A resolution adopted by the Sen- fairs (U.S. DVA) than other states in the na- Resolved, That copies of this resolution be ate of the General Assembly of the State of tion, and in 2002 was ranked second to the transmitted to the President of the United Ohio relative to the Election Assistance last in the number of veterans receiving States Senate, the Speaker of the United Commission; to the Committee on Rules and health care through the U.S. DVA; and States House of Representatives, and the Administration. Whereas, veterans in Washington State are members of the Michigan congressional dele- SENATE RESOLUTION NO. 1550 being placed on waiting lists by the U.S. gation. Whereas, the help America Vote Act of DVA in order to receive health care and f 2002, Public Law No. 107–252, establishes the pharmacy services; and Election Assistance Commission to serve as Whereas, the U.S. DVA national waiting REPORTS OF COMMITTEES a national clearinghouse and resource for the list data from July 2002 through September The following reports of committees 2003 indicates the Veterans’ Integrated Serv- compilation of information and review of were submitted: procedures with respect to the administra- ice Network 20, which includes Washington By Mr. ROBERTS, from the Select Com- tion of federal elections; and State, has the largest number of veterans Whereas, the Election Assistance Commis- waiting for nonemergent clinic visits; and mittee on Intelligence: sion, among its other responsibilities, is Whereas, an increasing number of Wash- Report to accompany S. 2386, An original charged with providing for the testing, cer- ington State veterans who formerly relied on bill to authorize appropriations for fiscal tification, decertification, and recertifi- alternate health care providers are finding year 2005 for intelligence and intelligence-re- cation of voting system hardware and soft- themselves without health care and are turn- lated activities of the United States Govern- ware by accredited laboratories, as well as ing to the U.S. DVA for their health care for ment, the Intelligence Community Manage- the adoption of voluntary voting system the first time; and ment Account, and the Central Intelligence guidelines; and Whereas, the U.S. DVA Capital Asset Re- Agency Retirement and Disability System, Whereas, states desiring to implement alignment for Enhanced Services (CARES) and for other purposes (Rept. No. 108–258). voter-verifiable paper ballots for electronic initiative has not fully considered the cur- By Mr. ROBERTS, from the Select Com- voting systems are dependent upon the Elec- rent and future need for veterans’ health mittee on Intelligence, without amendment: tion Assistance Commission issuing its cer- care services across the Veterans’ Integrated S. 2386. An original bill to authorize appro- tifications and voluntary voting system Service Network; and priations for fiscal year 2005 for intelligence guidelines in order to acquire secure voting Whereas, it is imperative that Washington and intelligence-related activities of the machines; and State receive adequate federal resources to United States Government, the Intelligence Whereas, the members of the Senate of the care for the increasing number of veterans Community Management Account, and the 125th General Assembly of Ohio are com- who will rely on the U.S. DVA for health Central Intelligence Agency Retirement and mitted to seeing the provisions of the Help care services: Now, therefore, Disability System, and for other purposes. Your Memorialists respectfully pray that America Vote Act of 2002 implemented in f such a manner as to make electronic voting the President will ensure the U.S. DVA as safe and secure as possible for Ohio citi- health care system in Washington State will INTRODUCTION OF BILLS AND zens: Now therefore be it be adequate to serve the current and future JOINT RESOLUTIONS Resolved, That we, the members of the Sen- demands of our state’s veterans. Your Memorialists further pray that Congress and The following bills and joint resolu- ate of the 125th General Assembly of Ohio, tions were introduced, read the first request the Congress of the United States to the President affirm the debt owed these vet- direct the Election Assistance Commission erans and provide funding for those services and second times by unanimous con- to develop standards and security accredita- deemed necessary. Be it sent, and referred as indicated: tion guidelines for all electronic voting de- Resolved, That copies of this Memorial be By Mr. COLEMAN (for himself, Mr. immediately transmitted to the Honorable vices in accordance with the Help America LEVIN, Ms. COLLINS, and Mr. REED): Vote Act of 2002; and be it further George W. Bush, President of the United S. 2383. A bill to amend title 10, United Resolved, That we, the members of the Sen- States, the Secretary of the United States States Code, to require the registration of ate of the 125th General Assembly of Ohio, Department of Veterans Affairs, the Presi- contractors’ taxpayer identification numbers request the Congress of the United States to dent of the United States Senate, the Speak- in the Central Contractor Registry database direct the Election Assistance Commission er of the House of Representatives, and each of the Department of Defense, and for other to establish standards for the design and use member of Congress from the State of Wash- purposes; to the Committee on Armed Serv- of reasonably affordable voter-verifiable ington. ices. paper ballots for electronic voting systems By Mr. BOND (for himself, Ms. SNOWE, POM–424. A resolution adopted by the for states that desire to implement the use and Mr. KENNEDY): House of Representatives of the Legislature of those ballots; and be it further S. 2384. A bill to amend the Small Business Resolved, That we, the members of the Sen- of the State of Michigan relative to eligi- Act to permit business concerns that are ate of the 125th General Assembly of Ohio, bility for prisoner of war benefits; to the owned by venture capital operating compa- further request the Congress of the United Committee on Veterans’ Affairs. nies or pension plans to participate in the States to direct the Election Assistance HOUSE RESOLUTION NO. 179 Small Business Innovation Research Pro- Commission to expedite its efforts regarding Whereas, under current federal law, a gram; to the Committee on Small Business the testing, certification, decertification, former Prisoner of War is eligible for special and Entrepreneurship.

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.058 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4911 By Mr. BINGAMAN: iting the carrying of concealed hand- of S. 1851 , a bill to raise the minimum S. 2385. A bill to designate the United guns. state allocation under section 217(b)(2) States courthouse at South Federal Place in S. 641 of the Cranston-Gonzalez National Af- Santa Fe, New Mexico, as the ‘‘Santiago E. fordable Housing Act. Campos United States Courthouse’’; to the At the request of Mrs. MURRAY, her Committee on Environment and Public name was added as a cosponsor of S. S. 1909 Works. 641, a bill to amend title 10, United At the request of Mr. COCHRAN, the By Mr. ROBERTS: States Code, to support the Federal Ex- names of the Senator from New Mexico S. 2386. An original bill to authorize appro- cess Personal Property program of the (Mr. BINGAMAN) and the Senator from priations for fiscal year 2005 for intelligence Forest Service by making it a priority South Dakota (Mr. JOHNSON) were and intelligence-related activities of the of the Department of Defense to trans- added as cosponsors of S. 1909, a bill to United States Government, the Intelligence Community Management Account, and the fer to the Forest Service excess per- amend the Public Health Service Act Central Intelligence Agency Retirement and sonal property of the Department of to improve stroke prevention, diag- Disability System, and for other purposes; Defense that is suitable to be loaned to nosis, treatment, and rehabilitation. from the Select Committee on Intelligence; rural fire departments. S. 2152 placed on the calendar. S. 955 At the request of Mr. MILLER, the By Mr. CONRAD (for himself and Mr. At the request of Mr. ALLEN, the name of the Senator from Nebraska DORGAN): (Mr. NELSON) was added as a cosponsor S. 2387. A bill to amend the Water Re- name of the Senator from Georgia (Mr. sources Development Act of 1999 to direct CHAMBLISS) was added as a cosponsor of of S. 2152, a bill to amend title 10, the Secretary of the Army to provide assist- S. 955, a bill to provide liability protec- United States Code, to provide eligi- ance to design and construct a project to tion to nonprofit volunteer pilot orga- bility for reduced non-regular service provide a continued safe and reliable munic- nizations flying for public benefit and military retired pay before age 60, and ipal water supply system for Devils Lake, to the pilots and staff of such organiza- for other purposes. North Dakota; to the Committee on Environ- tions. S. 2174 ment and Public Works. By Mr. JOHNSON (for himself and Ms. S. 976 At the request of Mr. BUNNING, the LANDRIEU): At the request of Mr. WARNER, the name of the Senator from North Da- S. 2388. A bill to make technical correc- names of the Senator from North Caro- kota (Mr. CONRAD) was added as a co- tions to the Mosquito Abatement for Safety lina (Mr. EDWARDS), the Senator from sponsor of S. 2174, a bill to amend title and Health Act, and for other purposes; to Mississippi (Mr. COCHRAN) and the Sen- XIX of the Social Security Act to in- the Committee on Health, Education, Labor, ator from Maine (Ms. SNOWE) were clude podiatrists as physicians for pur- and Pensions. added as cosponsors of S. 976, a bill to poses of covering physicians services By Mr. ENSIGN (for himself, Mr. MIL- under the medicaid program. LER, Mr. SMITH, Mr. GRAHAM of South provide for the issuance of a coin to Carolina, Mr. SESSIONS, Mr. KYL, Mr. commemorate the 400th anniversary of S. 2179 BROWNBACK, Mr. THOMAS, Mr. BURNS, the Jamestown settlement. At the request of Mr. BROWNBACK, the Mr. LOTT, Mr. COLEMAN, Mr. S. 1246 name of the Senator from Michigan SANTORUM, Mr. CORNYN, Mr. CRAIG, At the request of Mr. ROBERTS, the (Mr. LEVIN) was added as a cosponsor of and Mr. ALLARD): name of the Senator from Pennsyl- S. 2179, a bill to posthumously award a S. 2389. A bill to require the withholding of vania (Mr. SANTORUM) was added as a Congressional Gold Medal to the Rev- United States contributions to the United erend Oliver L. Brown. Nations until the President certifies that the cosponsor of S. 1246, a bill to amend the United Nations is cooperating in the inves- Internal Revenue Code of 1986 to pro- S. 2180 tigation of the United Nations Oil-for-Food vide for collegiate housing and infra- At the request of Mr. CAMPBELL, the Program; to the Committee on Foreign Rela- structure grants. name of the Senator from Colorado tions. S. 1358 (Mr. ALLARD) was added as a cosponsor f At the request of Mr. AKAKA, the of S. 2180, a bill to direct the Secretary of Agriculture to exchange certain SUBMISSION OF CONCURRENT AND name of the Senator from South Da- lands in the Arapaho and Roosevelt Na- SENATE RESOLUTIONS kota (Mr. JOHNSON) was added as a cosponsor of S. 1358, a bill to amend chap- tional Forests in the State of Colorado. The following concurrent resolutions ter 23 of title 5, United States Code , to S. 2190 and Senate resolutions were read, and clarify the disclosure of information At the request of Mr. INHOFE, the referred (or acted upon), as indicated: protected from prohibited personnel name of the Senator from Georgia (Mr. By Mr. CAMPBELL (for himself, Mr. practices, require a statement in non- MILLER) was added as a cosponsor of S. DODD, and Mr. BIDEN): disclosure policies, forms, and agree- 2190, a bill to implement equal protec- S. Res. 352. A resolution urging the Gov- tion under the 14th article of amend- ernment of Ukraine to ensure a democratic, ments that such policies, forms, and transparent, and fair election process for the agreements conform with certain dis- ment to the Constitution for the right presidential election on October 31, 2004; to closure protections, provide certain au- to life of each born and preborn human the Committee on Foreign Relations. thority for the Special Counsel, and for person. f other purposes. S. 2261 S. 1368 At the request of Mr. DEWINE, the ADDITIONAL COSPONSORS At the request of Mr. LEVIN, the name of the Senator from South Da- S. 53 names of the Senator from Nebraska kota (Mr. DASCHLE) was added as a co- At the request of Mr. DURBIN, the (Mr. HAGEL), the Senator from Kansas sponsor of S. 2261, a bill to expand cer- name of the Senator from South Da- (Mr. BROWNBACK), the Senator from tain preferential trade treatment for kota (Mr. JOHNSON) was added as a co- Ohio (Mr. DEWINE), the Senator from Haiti. sponsor of S. 53, a bill to amend the In- Indiana (Mr. LUGAR) and the Senator S. 2268 ternal Revenue Code of 1986 to allow from Florida (Mr. NELSON) were added At the request of Mr. BUNNING, the small business employers a credit as cosponsors of S. 1368, a bill to au- name of the Senator from Oklahoma against income tax for employee thorize the President to award a gold (Mr. INHOFE) was added as a cosponsor health insurance expenses paid or in- medal on behalf of the Congress to Rev- of S. 2268, a bill to provide for recruit- curred by the employer. erend Doctor Martin Luther King , Jr. ing, training, and deputizing persons S. 253 (posthumously) and his widow Coretta for the Federal flight deck officer pro- At the request of Mr. CAMPBELL, the Scott King in recognition of their con- gram. name of the Senator from Delaware tributions to the Nation on behalf of S. 2269 (Mr. CARPER) was added as a cosponsor the civil rights movement. At the request of Mr. BOND, the name of S. 253, a bill to amend title 18, S. 1851 of the Senator from New Jersey (Mr. United States Code, to exempt quali- At the request of Ms. MURKOWSKI, the LAUTENBERG) was added as a cosponsor fied current and former law enforce- name of the Senator from Vermont of S. 2269, a bill to improve environment officers from State laws prohib- (Mr. LEAHY) was added as a cosponsor mental enforcement and security.

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.029 S05PT1 S4912 CONGRESSIONAL RECORD — SENATE May 5, 2004 S. 2292 California (Mrs. FEINSTEIN) were added S. RES. 332 At the request of Mr. VOINOVICH, the as cosponsors of S. Con. Res. 90, a con- At the request of Mr. FEINGOLD, the names of the Senator from Illinois (Mr. current resolution expressing the Sense name of the Senator from Maine (Ms. FITZGERALD) and the Senator from of the Congress regarding negotiating, COLLINS) was added as a cosponsor of S. Georgia (Mr. CHAMBLISS) were added as in the United States-Thailand Free Res. 332, a resolution observing the cosponsors of S. 2292, a bill to require a Trade Agreement, access to the United tenth anniversary of the Rwandan report on acts of anti-Semitism around States automobile industry. Genocide of 1994. the world. S. CON. RES. 99 S. RES. 348 S. 2301 At the request of Mr. BROWNBACK, the At the request of Mr. BROWNBACK, the At the request of Mr. INOUYE, the names of the Senator from Arizona names of the Senator from Alaska (Mr. name of the Senator from South Da- (Mr. MCCAIN), the Senator from Maine STEVENS), the Senator from Missouri kota (Mr. JOHNSON) was added as a co- (Ms. COLLINS), the Senator from New (Mr. TALENT), the Senator from Min- sponsor of S. 2301, a bill to improve the Jersey (Mr. LAUTENBERG), the Senator nesota (Mr. COLEMAN) and the Senator management of Indian fish and wildlife from North Dakota (Mr. DORGAN), the from Nebraska (Mr. HAGEL) were added and gathering resources, and for other Senator from Ohio (Mr. DEWINE), the as cosponsors of S. Res. 348, a resolu- purposes. Senator from Wisconsin (Mr. KOHL), tion to protect, promote, and celebrate S. 2365 the Senator from New Mexico (Mr. motherhood. S. RES. 349 At the request of Mr. COLEMAN, the BINGAMAN), the Senator from Pennsyl- names of the Senator from Missouri vania (Mr. SANTORUM) and the Senator At the request of Mr. KENNEDY, the names of the Senator from New Jersey (Mr. BOND) and the Senator from Kan- from Maryland (Ms. MIKULSKI) were (Mr. LAUTENBERG) and the Senator sas (Mr. ROBERTS) were added as co- added as cosponsors of S. Con. Res. 99, sponsors of S. 2365, a bill to ensure that a concurrent resolution condemning from New York (Mr. SCHUMER) were the total amount of funds awarded to a the Government of the Republic of the added as cosponsors of S. Res. 349, a State under part A of title I of the Ele- Sudan for its participation and com- resolution recognizing and honoring mentary and Secondary Act of 1965 for plicity in the attacks against innocent May 17, 2004, as the 50th anniversary of fiscal year 2004 is not less than the civilians in the impoverished Darfur the Supreme Court decision in Brown total amount of funds awarded to the region of western Sudan. v. Board of Education of Topeka. State under such part for fiscal year S. CON. RES. 102 f 2003. At the request of Mr. BROWNBACK, the STATEMENTS ON INTRODUCED S. 2372 names of the Senator from New York BILLS AND JOINT RESOLUTIONS (Mr. SCHUMER) and the Senator from At the request of Mr. CORZINE, the By Mr. COLEMAN (for himself, name of the Senator from Illinois (Mr. New Jersey (Mr. LAUTENBERG) were added as cosponsors of S. Con. Res. 102, Mr. LEVIN, Ms. COLLINS, and DURBIN) was added as a cosponsor of S. a concurrent resolution to express the Mr. REED): 2372, a bill to amend the Trade Act of S. 2383. A bill to amend title 10, sense of the Congress regarding the 1974 regarding identifying trade expan- United States Code, to require the reg- 50th anniversary of the Supreme Court sion priorities. istration of contractors’ taxpayer iden- decision in Brown v. Board of Edu- S. 2376 tification numbers in the Central Con- cation of Topeka. At the request of Mr. BUNNING, the tractor Registry database of the De- S. RES. 202 name of the Senator from Tennessee partment of Defense, and for other pur- At the request of Mr. CAMPBELL, the (Mr. FRIST) was added as a cosponsor of poses; to the Committee on Armed name of the Senator from Arizona (Mr. S. 2376, a bill to amend the Internal Services. MCCAIN) was added as a cosponsor of S. Revenue Code of 1986 to repeal the Mr. COLEMAN. Mr. President, I rise Res. 202, a resolution expressing the scheduled restrictions in the child tax today to introduce the Central Con- sense of the Senate regarding the geno- credit, marriage penalty relief, and 10 tractor Registry Act of 2004 whose pur- cidal Ukraine Famine of 1932–33. percent rate bracket, and for other purpose is to establish a centralized con- poses. S. RES. 221 tractor database within the Depart- At the request of Mr. SARBANES, the S. 2382 ment of Defense and to require federal names of the Senator from Delaware At the request of Mr. INOUYE, the contractors who register in that data- (Mr. BIDEN) and the Senator from name of the Senator from Colorado base to provide their taxpayer identi- Pennsylvania (Mr. SANTORUM) were (Mr. CAMPBELL) was added as a cospon- fication number and their consent to added as cosponsors of S. Res. 221, a verifying that number with the Inter- sor of S. 2382, a bill to establish grant resolution recognizing National His- programs for the development of tele- nal Revenue Service as a condition torically Black Colleges and Univer- that must precede the awarding of a communications capacities in Indian sities and the importance and accom- country. contract by the Department of Defense. plishments of historically Black col- This bill will close a $3 billion tax loop- S.J. RES. 33 leges and universities. hole and will help to recover over $100 At the request of Mr. BROWNBACK, the S. RES. 313 million annually from federal contrac- name of the Senator from Georgia (Mr. At the request of Mr. FEINGOLD, the tors who have not filed federal tax re- CHAMBLISS) was added as a cosponsor of name of the Senator from Hawaii (Mr. turns or who have not paid the taxes S.J. Res. 33, a joint resolution express- INOUYE) was added as a cosponsor of S. they owe the government. I am joined ing support for freedom in Hong Kong. Res. 313, a resolution expressing the by Senators CARL LEVIN, SUSAN COL- S.J. RES. 36 sense of the Senate encouraging the ac- LINS and JACK REED. At the request of Mrs. FEINSTEIN, the tive engagement of Americans in world In a hearing before the Permanent names of the Senator from Connecticut affairs and urging the Secretary of Subcommittee on Investigations, the (Mr. LIEBERMAN), the Senator from Ne- State to coordinate with implementing General Accounting Office testified braska (Mr. NELSON), the Senator from partners in creating an online database that over 27,000 contractors at the De- New Jersey (Mr. LAUTENBERG) and the of international exchange programs partment of Defense owed over $3 bil- Senator from Maryland (Mr. SARBANES) and related opportunities. lion in unpaid Federal taxes. Normally, were added as cosponsors of S.J. Res. S. RES. 322 these taxes could be collected through 36, a joint resolution approving the re- At the request of Mr. HAGEL, the the Federal Payment Levy Program by newal of import restrictions contained names of the Senator from Arkansas levying fifteen percent of the contrac- in Burmese Freedom and Democracy (Mrs. LINCOLN), the Senator from tors’ payments. In fiscal year 2002, the Act of 2003. Rhode Island (Mr. REED) and the Sen- Financial Management Service should S. CON. RES. 90 ator from Illinois (Mr. DURBIN) were have collected over $100 million from At the request of Mr. LEVIN, the added as cosponsors of S. Res. 322, a tax delinquent Department of Defense names of the Senator from New York resolution designating August 16, 2004, contractors. However, actual collec- (Mr. SCHUMER) and the Senator from as ‘‘National Airborne Day.’’ tions for the year were less than

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.031 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4913 $500,000. Further, in 2001, the Depart- that registrants furnish this informa- following tax-related information for each ment of Defense provided the Internal tion as a condition for registration, source registered in that registry: Revenue Service with over 26,000 infor- and requires the Department of De- ‘‘(A) Each of that source’s taxpayer identi- mation returns that could not be used fense to warn contractors who fail to fication numbers. ‘‘(B) The source’s authorization for the to determine contractors’ tax liability. provide a valid taxpayer identification Secretary of Defense to obtain from the One of the principal reasons for this number that they may be subject to Commissioner of Internal Revenue— anemic state of collections and the backup withholding and requires im- ‘‘(i) verification of the validity of each of large volume of unusable information plementation of backup withholding in that source’s taxpayer identification num- returns has been and remains the in- cases where it is required. It precludes bers; and ability of the Department of Defense awarding a contract to any registrant ‘‘(ii) in the case of any of such source’s reg- and the Internal Revenue Service to who has not provided a valid taxpayer istered taxpayer identification numbers that reach an accord on verifying the tax- identification number and excludes is determined invalid, the correct taxpayer identification number (if any). payer identification numbers of the from coverage any registrant who is ‘‘(2)(A) The Secretary of Defense shall re- contractors who have registered in the not required to have a taxpayer identi- quire each source, as a condition for reg- Department of Defenses’s Central Con- fication number. istration in the Central Contractor Registry, tractor Registration database. It directs the Secretary of Defense to to provide the Secretary with the informa- Under current law, the Department apply to the Internal Revenue Service tion and authorization described in para- of Defense’s authority to verify con- for inclusion in the Taxpayer Identi- graph (1). tractors’ taxpayer identification num- fication Number Matching Program ‘‘(B) The Secretary shall— ‘‘(i) warn each source seeking to register in bers is limited to those contractors and directs the Commissioner of Inter- the Central Contractor Registry that the who have contracts with the Depart- nal Revenue to provide response to the source may be subject to backup for a failure ment of Defense and for whom the de- Department of Defense. It directs the to submit each such number to the Sec- partment is required to report mis- Secretary of Defense to provide any retary; and cellaneous income to the Internal Rev- registrant who is determined to have ‘‘(ii) take the actions necessary to initiate enue Service on a Form 1099 informa- an invalid taxpayer identification the backup withholding in the case of a reg- tion return. However, there are con- number with an opportunity to provide istrant who fails to register each taxpayer tractors who have registered in the a valid number. It further requires that identification number valid for the registrant and is subject to the backup with- Central Contractor Registration for the Central Contractor Registry clear- holding requirement. whom the Department of Defense lacks ly indicate whether a registrant’s tax- ‘‘(3) A source registered in the Central Con- authority to verify their taxpayer iden- payer identification number is valid, tractor Registry is not eligible for a contract tification numbers including individ- under review, invalid, or not required. entered into under this chapter or title III of uals and companies who would like to Finally, it requires that contractors the Federal Property and Administrative contract with the federal government taxpayer identification numbers be Services Act of 1949 (41 U.S.C. 251 et seq.) if and contractors who have contracts treated as confidential by federal con- that source— with agencies and departments other ‘‘(A) has failed to provide the authoriza- tract officers who have access to the tion described in paragraph (1)(B); than the Department of Defense. On Central Contractor Registry. ‘‘(B) has failed to register in that registry the other hand, current law also allows My overall objective in introducing all valid taxpayer identification numbers for a taxpayer to consent to the this bill is to ensure that tax cheats that source; or verification of their taxpayer identi- are not rewarded with federal con- ‘‘(C) has registered in that registry an in- fication number with the Internal Rev- tracts. If the Department of Defense valid taxpayer identification number and enue Service and allows the Internal and the Internal Revenue Service do fails to correct that registration. Revenue Service to provide a validated not have accurate and reliable tax- ‘‘(4)(A) The Secretary of Defense shall make arrangements with the Commissioner taxpayer identification number. payer identification numbers then we of Internal Revenue for each head of an agen- My bill will resolve the impasse be- will not be able to stop this practice. cy within the Department of Defense to par- tween the Department of Defense and My bill takes the necessary first step ticipate in the taxpayer identification num- the Internal Revenue Service by re- toward ensuring that the Department ber matching program of the Internal Rev- questing contractors’ consent to the of Defense and the Internal Revenue enue Service. validation of their taxpayer identifica- Service have valid taxpayer identifica- ‘‘(B) The Commissioner of Internal Rev- tion number as part of the registration tion numbers in the Central Contractor enue shall cooperate with the Secretary of process. Contractors will not be re- Defense to determine the validity of tax- Registry database. payer identification numbers registered in quired to provide their consent. But if I ask unanimous consent that the the Central Contractor Registry. As part of they do not, they will not be awarded a text of the bill be printed in the the cooperation, the Commissioner shall contract by the Department of Defense. RECORD. promptly respond to a request of the Sec- Further, my bill requires the Depart- There being no objection, the bill was retary of Defense or the head of an agency ment of Defense to warn contractors as ordered to be printed in the RECORD, as within the Department of Defense for elec- part of the registration process that if follows: tronic validation of a taxpayer identification they do not provide a valid taxpayer S. 2383 number for a registrant by notifying the Sec- retary or head of an agency, respectively, identification number they may be sub- Be it enacted by the Senate and House of Rep- of— ject to backup withholding. This would resentatives of the United States of America in ‘‘(i) the validity of that number; and Congress assembled, apply to those contractors who list an ‘‘(ii) in the case of an invalid taxpayer invalid taxpayer identification num- SECTION 1. SHORT TITLE. identification number, any correct taxpayer ber, have a contract with the Depart- This Act may be cited as the ‘‘Central Con- identification number for such registrant ment of Defense, and will earn mis- tractor Registry Act of 2004’’. that the Commissioner can promptly and SEC. 2. CENTRAL CONTRACTOR REGISTRY DATA- reasonably determine. cellaneous income that is required to BASE. be reported to the Internal Revenue ‘‘(C) The Secretary shall transmit to a reg- (a) AUTHORITY.—Chapter 137 of title 10, istrant a notification of each of the reg- Service. United States Code, is amended by inserting I would like to briefly summarize the istrant’s taxpayer identification numbers, if after section 2302d the following new section: any, that is determined invalid by the Com- major provisions of my bill. It provides ‘‘§ 2302e. Central contractor registry missioner of Internal Revenue and shall pro- a statutory basis for the Central Con- ‘‘(a) ESTABLISHMENT.—The Secretary of De- vide the registrant with an opportunity to tractor Registration and renames the fense shall maintain a centralized, electronic substitute a valid taxpayer identification database as the Central Contractor database for the registration of sources of number. Registry. It requires that the registry property and services who seek to partici- ‘‘(5) The Secretary of Defense shall require contain contractor’s taxpayer identi- pate in contracts and other procurements en- that, at the place in the Central Contractor fication numbers, their consent to tered into by the various procurement offi- Registry where the taxpayer identification cials of the United States. The database numbers of a registrant are to be displayed, verifying their numbers with the Inter- shall be known as the ‘Central Contractor the display bear (as applicable)— nal Revenue Service and for the Inter- Registry’. ‘‘(A) for each taxpayer identification num- nal Revenue Service to provide a cor- ‘‘(b) TAXPAYER INFORMATION.—(1) The Cen- ber of that registrant, an indicator of wheth- rected number if possible. It requires tral Contractor Registry shall include the er such number has been determined valid, is

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.033 S05PT1 S4914 CONGRESSIONAL RECORD — SENATE May 5, 2004 being reviewed for validity, or has been de- contract payment in the near future. bar contracts from being awarded to termined invalid; or To identify these contractors, DOD contractors who fail to supply a valid ‘‘(B) an indicator that no taxpayer identi- participates in a computer matching TIN. fication number is required for the reg- program administered by the Treasury In addition, the bill would require istrant. ‘‘(6) This subsection applies to each source Department that cross-checks DOD registrants to authorize DOD to vali- who registers any information regarding lists of upcoming contractor payments date their TINs with the IRS and ob- that source in the Central Contractor Reg- with IRS lists of delinquent taxpayers. tain a corrected TIN from the IRS, if istry after December 31, 2004, except that If a match occurs, DOD is supposed to needed and possible. This requirement paragraphs (1), (2), and (3) do not apply to a withhold money from the identified would apply to all registrants in the source who establishes to the satisfaction of contractor’s upcoming contract pay- Central Contractor Registry, no matter the Secretary of Defense that such source is ments. what type of contract is involved and not required to have a taxpayer identifica- The problem is that the DOD–IRS whether the contract is with DOD or tion number. another Federal agency. It would also ‘‘(c) CONFIDENTIALITY OF INFORMATION.— computer matching program has so far The Secretary of Defense shall ensure that produced relatively few matches. In allow the IRS to supply corrected TINs taxpayer identification numbers in the Cen- 2003, for example, DOD collected only where it can promptly and reasonably tral Contractor Registry are not made avail- about $680,000 of back taxes through its do so. able to the public. The Secretary shall pre- tax levy program instead of the $100 If, by chance, a registrant managed scribe a requirement for procurement offi- million that GAO estimates should to obtain a DOD contract without hav- cials of the United States having access to have been collected. That means DOD ing supplied a valid TIN, the bill would such numbers in that registry to maintain collected less than 1 percent of the direct DOD to withhold a portion of the confidentiality of those numbers.’’. their contract payments to satisfy (b) CLERICAL AMENDMENT.—The table of back taxes it should have. sections at the beginning of such chapter is On major impediment to the com- their tax debt as specified under exist- amended by inserting after the item relating puter matching program has been that ing law. Although this backup holding to section 2302d the following new item: it depends upon DOD’s providing the requirement has been on the books for ‘‘2302e. Central Contractor Registry.’’. correct taxpayer identification number years, DOD has not implemented it. Mr. LEVIN. Mr. President, I rise or TIN for each of its contractors, The bill would require DOD to start today to join my colleagues, Senators when many DOD contractors have ei- doing so. Finally, the bill would provide a NORM COLEMAN, SUSAN COLLINS and ther failed to submit a TIN or supplied number of protections. It would require JACK REED, in introducing the Central an incorrect number. DOD and other federal procurement of- Contractor Registry Act of 2004. The When a TIN is incorrect or missing, ficials not to make TIN numbers avail- purpose of this bipartisan bill is to the computer matching program is unable to the public, so that this informa- strengthen the ability of the Federal able to determine whether the relevant tion is kept confidential within the Government to stop tax cheats from DOD contractor is on the IRS list of procurement community using the obtaining Federal contracts or use a delinquent taxpayers. Data indicates Central Contractor Registry. It would portion of their contract payments to that, in one year, DOD sent the IRS explicitly exempt from the TIN re- repay their tax debts. over 26,000 invalid TINs that could not In February, the Permanent Sub- be used. quirements any contractor, such as a foreign business, not required by U.S. committee on Investigations, on which To increase the efficiency of the com- law to have a taxpayer identification Senator COLEMAN and I sit, held a hear- puter matching program, DOD and the number. The bill would also require ing on a report by the General Ac- IRS have tried to improve the accuracy DOD to show in the registry database counting Office which disclosed that of the TINs in DOD’s contractor data. whether a particular TIN has been vali- over 27,000 contractors at the Depart- The IRS has, for example, set up a dated, is awaiting validation, has been ment of Defense owe $3 billion in un- computer-based TIN validation system found invalid, or is not required, so paid taxes, mostly from failing to that can electronically verify a TIN that procurement officials using the transmit payroll taxes to the IRS. number in seconds. This electronic sys- database will know the status of a con- Think about that for a minute—27,000 tem is available for use by DOD and all other Federal agencies. Unfortunately, tractor’s TIN. If the IRS were to deter- DOD contractors—more than one in mine that a particular TIN was invalid, the IRS has also interpreted certain every ten DOD contractors—had out- the bill would require DOD to give the tax laws as prohibiting DOD from ob- standing tax debts at the same time relevant contractor an opportunity to taining TIN validations for many types they were holding out their hands for correct the number. DOD would also be of contracts. In addition, in the case of taxpayer dollars. required to warn all registrants in the Allowing tax cheats to bid on federal TIN numbers with clerical errors, the Central Contractor Registry of the pos- contracts is a disservice to all of the IRS has interpreted current taxpayer sibility of backup withholding in the honest taxpayers out there who man- confidentiality laws as prohibiting it event they fail to provide a valid TIN. age to meet their tax obligations. It is from supplying DOD with a corrected It is common business sense for the a disservice to all of the military men number. Federal Government to require con- and women who put their lives on the The bill we are introducing today tractors who want to be paid with Fed- line for us every day. It is a disservice would eliminate this bureaucratic red eral taxpayer dollars to allow the to all of the honest companies that tape and significantly increase the ef- United States to determine whether compete for the same DOD contracts, fectiveness of the tax levy program by they owe any taxes and, if so, to offset since companies that do not pay their increasing the accuracy of the TINs a portion of their contract payments to taxes have lower costs and a competi- used by DOD. reduce their tax debts. To accomplish tive advantage over the companies that The bill would strengthen TIN accu- that objective, the Federal Govern- do. racy by focusing primarily on the TINs ment has to do a better job in identi- Under current law, DOD has an obli- in the Central Contractor Registry, a fying federal contractors with unpaid gation to identify any DOD contractor government-wide database of persons taxes. Our bill, by improving the accu- with unpaid taxes, to withhold up to 15 wishing to bid on federal contracts. racy of taxpayer identification num- percent of their contract payments, This registry is currently administered bers in the Central Contractor Reg- and to forward that money to the IRS by DOD, and current Federal regula- istry, will strengthen DOD’s ability to to be applied to the contractor’s tax tions require potential bidders to self- identify tax delinquent contractors and debt. The official title of the DOD pro- register in the system by supplying either deny them new contracts or re- gram to carry out this obligation is the specified information. As part of the duce their tax debts. Federal Payment Levy Program, also process, registrants are currently sup- I hope all my colleagues will join us sometimes referred to as the DOD tax posed to supply a TIN, but many either in supporting this legislation’s enact- levy program. do not or supply an incorrect number. ment during this Congress. The first step in the program is for The bill would, for the first time, im- DOD to identify tax delinquent DOD pose a legal requirement on registrants By Mr. BOND (for himself, Ms. contractors who are scheduled to get a to supply a valid TIN and would also SNOWE, and Mr. KENNEDY):

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.034 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4915 S. 2384. A bill to amend the Small biotech start-ups for the possibility of By Mr. BINGAMAN: Business Act to permit business con- a future innovation and financial re- S. 2385. A bill to designate the United cerns that are owned by venture cap- turn and generally do not seek to take States courthouse at South Federal ital operating companies or pension control over the management functions Place in Santa Fe, New Mexico, as the plans to participate in the Small Busi- or day-to-day operations of the com- ‘‘Santiago E. Campos United States ness Innovation Research Program; to pany. Venture-capital firms that seek Courthouse’’; to the Committee on En- the Committee on Small Business and to invest in small biotech businesses do vironment and Public Works. Entrepreneurship. not, simply by their investment, turn a Mr. BINGAMAN. Mr. President, I rise Mr. BOND. Mr. President, the United small business into a large business. today with my colleague Senator States biotechnology industry is the These are legitimate, small, start-up DOMENICI to introduce a bill to des- world leader in innovation. This is due, businesses. Let’s not punish them. ignate the United States Courthouse in in large part, to the Federal Govern- Instead, we must work together to Santa Fe, NM as the ‘‘Honorable ment’s partnership with the private avoid stifling innovation. Let me be Santiago E. Campos United States sector to foster growth and commer- clear. Our impact today will foster Courthouse.’’ Santiago Campos was ap- cialization in the hope that one day we cures and medicines tomorrow that pointed to the Federal Bench in 1978 by will uncover a cure for unmet medical were once thought to be inconceivable. President Jimmy Carter and was the needs such as cystic fibrosis, heart dis- However, the industry cannot do it first Hispanic Federal judge in New ease, various cancers, multiple scle- alone. We must nurture biotechnology Mexico. He held the title of Chief U.S. rosis, and AIDS. and help the industry grow for the fu- District Judge from February 5, 1987 to However, the industry was dealt a ture of our economy and for our well- December 31, 1989 and took senior sta- major set-back when the Small Busi- being. tus in 1992. ness Administration (SBA) determined This bill that I am introducing today Judge Campos was a dedicated and that venture-backed biotechnology will do just that. It will ensure that passionate public servant who spent companies can no longer participate in the biotechnology industry has access most of his life committed to working the Small Business Innovation Re- to SBIR grants, as it has had for 20 for the people of New Mexico and our search (SBIR) program. Until recently, years. It will level the playing field to Nation. He served as a seaman first the SBIR program was an example of a ensure that SBIR grants are given to class in the United States Navy from highly successful Federal initiative to small businesses based on fruitful 1944 to 1946, as the Assistant Attorney encourage economic growth and inno- science and nothing else. This is still a General and then First Assistant At- vation in the biotechnology industry young and fragile industry, and we are torney General of New Mexico from by funding the critical start-up and de- on the cusp of great scientific ad- 1954 to 1957, and as a district court velopment stages of a company. vances. However, there will be pro- judge from 1971 to 1978 in the First Ju- Traditionally, to qualify for an SBIR found consequences if biotechnology dicial District in the state of New Mex- grant a small-business applicant had to companies continue to be excluded ico. He was the prime mover in reestab- meet two requirements; one, that the from the SBIR program. lishing Federal court judicial activity company have less than 500 employees; I ask unanimous consent that the in Santa Fe and had his chambers in and two, that the business be 51 per- full text of the bill be printed in the the courthouse there for over 22 years. cent owned by one or more individuals. RECORD. For his dedication to the State, Judge Recently, however, the SBA deter- There being no objection, the bill was Campos received distinguished achieve- mined that the term ‘‘individuals’’ ordered to be printed in the RECORD, as ment awards in 1993 from both the only means natural persons, whereas follows: State Bar of New Mexico and the Uni- for the past 20 years the term ‘‘indi- S. 2384 versity of New Mexico. Sadly, Judge Campos passed away vidual’’ has included venture-capital Be it enacted by the Senate and House of Rep- companies. As a result, biotech compa- resentatives of the United States of America in January 20, 2001 after a long battle nies backed by venture-capital funding Congress assembled, with cancer. Judge Campos was an ex- in Missouri and throughout our Nation, SECTION 1. SBIR AWARDS TO BUSINESS CON- traordinary jurist and served as a role who are on the cutting edge of science, CERNS OWNED BY VENTURE CAP- model and mentor to others in New can no longer participate in the pro- ITAL OPERATING COMPANIES OR Mexico. He was admired and respected EMPLOYEE BENEFIT OR PENSION gram. PLANS. by all that knew him. I believe that it The biotech industry is like no other (a) IN GENERAL.—Section 9(f) of the Small would be an appropriate tribute to in the world because it takes such a Business Act (15 U.S.C. 638(f)) is amended by Judge Campos to have the courthouse long span of time and intense capital adding at the end the following: in Santa Fe bear his name. expenditures to bring a successful prod- ‘‘(4) ELIGIBILITY.—A business concern shall Mr. President, I ask unanimous con- uct to market. In fact, according to a not be prevented from participating in the sent that the text of the bill be printed recent study completed by the Tufts Small Business Innovation Research Pro- in the RECORD. Center for the Study of Drug Develop- gram solely because such business concern is There being no objection, the bill was owned in part by— ment, it takes roughly 10–15 years and ordered to be printed in the RECORD, as ‘‘(A) a venture capital operating company follows: $800 million dollars for a company to that is managed and controlled by 1 or more bring just one product to market. As United States citizens or permanent resident S. 2385 you can imagine, the industry’s entre- aliens; or Be it enacted by the Senate and House of Rep- preneurs are seeking financial assist- ‘‘(B) an employee benefit or pension plan.’’. resentatives of the United States of America in ance wherever they can find it. (b) RULEMAKING AUTHORITY.—Not later Congress assembled, For the past 20 years, the SBIR pro- than 180 days after the date of enactment of SECTION 1. DESIGNATION OF SANTIAGO E. gram has been a catalyst for devel- this Act, the Administrator of the Small CAMPOS UNITED STATES COURT- HOUSE. oping our Nation’s most successful bio- Business Administration shall issue regulations to— The United States courthouse at South technology companies. In addition to (1) carry out the amendment made by sub- Federal Place in Santa Fe, New Mexico, these important government grants, section (a); shall be known and designated as the venture-capital funding plays a vital (2) ensure that a Small Business Innova- ‘‘Santiago E. Campos United States Court- role in the financial support of these tion Research award is not given to a busi- house’’. same companies. The strength of our ness concern that is majority owned by— SEC. 2. REFERENCES. biotechnology industry is a direct re- (A) another business concern that is ineli- Any reference in a law, map, regulation, sult of government grants and venture- gible to participate in the Small Business In- document, paper, or other record of the novation Research Program; or United States to the United States court- capital working together. house referred to in section 1 shall be deemed However, some have argued that a (B) a venture capital operating company or an employee benefit or pension plan that is to be a reference to the ‘‘Santiago E. Campos biotech firm with a majority of ven- the alter ego, instrumentality, or identity of United States Courthouse’’. ture-capital backing is a large busi- another business concern that is ineligible to ness. This is simply a bogus conclusion. participate in the Small Business Innovation By Mr. CONRAD (for himself and Venture-capital firms solely invest in Research Program. Mr. DORGAN):

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.041 S05PT1 S4916 CONGRESSIONAL RECORD — SENATE May 5, 2004 S. 2387. A bill to amend the Water Re- Lake have a safe and reliable water ical role in the implementation and sources Development Act of 1999 to di- supply. I urge my colleagues to review management of the program. It kept rect the Secretary of the Army to pro- this legislation quickly so we can pass the contract records. It controlled the vide assistance to design and construct it this year. bank accounts and was the only entity a project to provide a continued safe allowed to release Saddam Hussein’s and reliable municipal water supply By Mr. ENSIGN (for himself, Mr. oil earnings. And it arranged for the system for Devils Lake, North Dakota; MILLER, Mr. SMITH, Mr. audits. As Secretary General Kofi to the Committee on Environment and GRAHAM of South Carolina, Mr. Annan noted, ‘‘under the program, the Public Works. SESSIONS, Mr. KYL, Mr. [U.N.] Secretary General was required Mr. CONRAD. Mr. President, I rise BROWNBACK, Mr. THOMAS, Mr. to supervise the sale of Iraqi oil, and to today to introduce legislation to au- BURNS, Mr. LOTT, Mr. COLEMAN, monitor the spending of the proceeds thorize the U.S. Army Corps of Engi- Mr. SANTORUM, Mr. CORNYN, Mr. on specific goods and services for the neers to construct a new municipal CRAIG, and Mr. ALLARD): benefit of the Iraqi people.’’ water supply system for the city of S. 2389. A bill to require the with- Well, he did a lousy job. Devils Lake, ND. This project is very holding of United States contributions Tasked by the international commu- important to the reliability of the to the United Nations until the Presi- nity to deny Saddam Hussein the abil- water supply for the residents of Devils dent certifies that the United Nations ity to rebuild his military apparatus Lake and is needed to mitigate long- is cooperating in the investigation of while providing humanitarian needs, term consequences from the rising the United Nations Oil-for-Food Pro- the United Nations allowed the corrupt flood waters of Devils Lake. gram; to the Committee on Foreign Re- to become richer and innocent Iraqis to As many of my colleagues know, the lations. be oppressed. Devils Lake region has been plagued by Mr. ENSIGN. Mr. President, I rise Today we have a chance to rectify a flooding disaster since 1993. During today to introduce legislation in the that injustice. We must demand that that time, Devils Lake, a closed basin hopes that it will correct a grave injus- the United Nations cooperate com- lake, has risen 25 feet, consuming land, tice committed against the people of pletely with efforts to extrapolate the destroying homes, and impacting vital Iraq as well as the honest and law-abid- truth from this scandal and punish the infrastructure. As a result of this dis- ing citizens of the world community. guilty. We know that the Volker panel We now believe that Saddam Hussein, aster, the city of Devils Lake faces a does not have subpoena power. corrupt U.N. officials, and corrupt well- And we’ve now learned that officials significant risk of losing its water sup- connected countries were the real bene- acting on behalf of Benon Sevan, the ply. Currently, six miles or approxi- factors of the Oil-for-Food Program. Executive Director of the Oil-for-Food mately one-third of the city’s 40-year- Their benefits came from illegal oil Program, who is personally implicated old water transmission line is covered shipments, financial transactions, in the scandal, are asking contractors by the rising waters of Devils Lake. kickbacks, and surcharges and allowed not to release documents relating to The submerged section of the water Saddam Hussein to build up his armed the program to congressional inves- line includes numerous gate valves, air forces and live in the lap of luxury. tigators without getting U.N. author- relief valves, and blow-off discharges. The evidence in this far-reaching ization. An April 2, 2004, U.N. letter to All of the water for the city’s resi- scandal tells an unbelievable story. In a Swiss firm Cotecna reminded the dents and businesses must flow January of this year, the Iraqi Gov- firm that according to its contract all through this single transmission line. erning Council (IGC) released a list of documents: ‘‘shall be property of the It is also the only link between the 270 former government officials, busi- United Nations, shall be treated as con- water source and the city’s water dis- nessmen, political parties, and foreign fidential and shall be delivered only to tribution system. Since the trans- cronies of Hussein from more than 46 United Nations authorized officials.’’ mission line is operated under rel- countries suspected of profiting from Cotecna, was in charge of inspecting atively low pressures and is under con- illegal oil sales that were part of the the humanitarian goods shipped to Iraq siderable depths of water, a minor leak U.N.’s Oil-for-Food Program. under Oil-for-Food. It had Kofi Annan’s could cause significant problems. If a Our own U.S. General Accounting Of- son Kojo on its payroll until the month failure in the line were to occur, it fice estimates that Saddam Hussein si- it won its U.N. contract. And an April would be almost impossible to identify phoned off $4.4 billion through oil sale 14 letter reminded a Dutch company the leak and make necessary repairs, surcharges. Saddam Hussein also de- called Saybolt of its confidentiality and the city would be left without a manded kickbacks on the humani- agreements with the U.N., demanding water supply. tarian relief side from suppliers which ‘‘that Saybolt address any further re- The city is in the process of accessing amounted to 10–20 percent on many quests for documentation or informa- a new water source due both to the contracts. tion concerning these matters to us.’’ threat of a transmission line failure Saddam used this revenue to rebuild Saybolt was in charge of making sure and the fact that its current water Iraq’s military capabilities, to main- oil invoices matched shipments. source exceeds the new arsenic stand- tain lavish palaces, buy loyalty, op- The United Nations should be more ard that will take effect in 2006. The press his people and financially support interested in bringing the truth to city has worked closely with the North terrorism. And as Claude Hankes- light then trying to protect its tat- Dakota State Water Commission in Drielsma, an IGC consultant inves- tered reputation and its corrupt offi- identifying a new water source that tigating the scandal testified, the se- cials. will not be affected by the rising flood cret payments ‘‘provided Saddam Hus- The legislation I am introducing waters and will provide the city with sein and his corrupt regime with a con- today will hold the United Nations’ adequate water to meet its current and venient vehicle through which he feet to the fire on this scandal. It calls future needs. bought support internationally by for transparency and accountability. The bill I am introducing today will bribing political parties, companies Under this bill, the United Nations authorize the Corps to construct a new and journalists . . . This secured the must allow GAO and law enforcement water supply system for the city. I be- cooperation and support of countries agencies access to its Oil-for-Food lieve the Federal Government has a re- that included members of the Security records. U.N. officials must waive their sponsibility to assist communities Council of the United Nations.’’ immunity for any crimes committed on mitigate the adverse consequences re- The United Nations should be embar- United States soil and repay their ill- sulting from this ongoing flooding dis- rassed. gotten gains. aster. In my view, the Corps should be What resulted from the goodwill ges- If not, 10 percent of our assessed U.N. responsible for addressing the unin- ture was international scandal, corrup- regular budget contributions will be tended consequences of this flood and tion at the highest levels, and suffering withheld the first year and 20 percent mitigate its long-term consequences. Iraqi citizens. Not exactly a model U.N. the second year. Granted, the with- This bill will help the Federal Govern- program. holding of $36 million in the first year ment live up to its responsibility and Contrary to its protestations, the is no where near the more than $1 bil- ensure that the residents of Devils United Nations Secretariat had a crit- lion that the United Nations skimmed

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.040 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4917 off the top of Iraqi oil sales for admin- these standards and build a democratic soci- (1) acknowledges and welcomes the strong istrative costs or the billions that were ety based on free elections and the rule of relationship formed between the United stolen from the Iraqi people through law; States and Ukraine since the restoration of corruption and mismanagement. But Whereas this election takes place against Ukraine’s independence in 1991; the backdrop of previous elections that did (2) recognizes that a precondition for the the 10 percent withholding worked in not fully meet international standards and full integration of Ukraine into the Western the past when the 103rd Congress used of disturbing trends in the current pre-elec- community of nations, including as an equal it to compel the United Nations to cretion environment; member in institutions such as the North ate an inspector general. And I believe Whereas it is the duty of government and Atlantic Treaty Organization (NATO), is its it can work again. public authorities at all levels to act in a establishment of a genuinely democratic po- But we have to make an important manner consistent with all laws and regula- litical system; choice first. We can do nothing and tions governing election procedures and to (3) expresses its strong and continuing support for the efforts of the Ukrainian people allow the word ‘‘humanitarianism’’ to ensure free and fair elections throughout the entire country, including preventing activi- to establish a full democracy, the rule of be the new code word for corruption ties aimed at undermining the free exercise law, and respect for human rights in scandal from here on out. Or we can of political rights; Ukraine; stand up and make the United Nations Whereas a genuinely free and fair election (4) urges the Government of Ukraine to rightfully accountable for the corrup- requires a period of political campaigning guarantee freedom of association and assem- tion that harmed innocent Iraqis. The conducted in an environment in which nei- bly, including the right of candidates, mem- answer is clear. We must act. ther administrative action nor violence, in- bers of political parties, and others to freely timidation, or detention hinder the parties, assemble, to organize and conduct public The U.N. is broken. This scandal re- events, and to exercise these and other vealed that the U.N. Security Council political associations, and the candidates from presenting their views and qualifica- rights free from intimidation or harassment is unable to do its job when some mem- tions to the citizenry, including organizing by local or national officials or others acting bers are more interested in lining their supporters, conducting public meetings and at their behest; pockets than preserving security. I events throughout the country, and enjoying (5) urges the Government of Ukraine to contend that there was no way that the unimpeded access to television, radio, print, meet its Organization for Security and Co- U.S. could get France and Russia to en- and Internet media on a non-discriminatory operation in Europe (OSCE) commitments on force Security Council resolutions on basis; democratic elections and to address issues Whereas a genuinely free and fair election previously identified by the Office of Demo- Iraq and go to war when so many of cratic Institutions and Human Rights their politically connected individuals, requires that citizens be guaranteed the right and effective opportunity to exercise (ODIHR) of the OSCE in its final reports on companies, and institutions received their civil and political rights, including the the 2002 parliamentary elections and the 1999 Iraqi oil contracts. Victory brought right to vote and the right to seek and ac- presidential elections, such as illegal inter- their corruption to light. And I am quire information upon which to make an in- ference by public authorities in the cam- deeply worried that the ability of the formed vote, free from intimidation, undue paign and a high degree of bias in the media; (6) urges the Ukrainian authorities to en- United Nations to convey ‘‘legitimacy’’ influence, attempts at vote buying, threats sure— of political retribution, or other forms of co- to the new Iraqi government and assist (A) the full transparency of election proce- ercion by national or local authorities or in postwar Iraq is hampered by its his- dures before, during, and after the 2004 presi- others; tory of corruption and mismanagement dential elections; Whereas a genuinely free and fair election (B) free access for Ukrainian and inter- in the Oil-for-Food program. requires government and public authorities national election observers; The U.N. needs to come clean and to ensure that candidates and political par- (C) multiparty representation on all elec- start over. The first step toward doing ties enjoy equal treatment before the law tion commissions; that is to accept the terms and condi- and that government resources are not em- (D) unimpeded access by all parties and tions of the Oil-for-Food Account- ployed to the advantage of individual can- candidates to print, radio, television, and ability Act. didates or political parties; Internet media on a non-discriminatory Whereas a genuinely free and fair election f basis; requires the full transparency of laws and (E) freedom of candidates, members of op- SUBMITTED RESOLUTIONS regulations governing elections, multiparty position parties, and independent media or- representation on election commissions, and ganizations from intimidation or harassment unobstructed access by candidates, political by government officials at all levels via se- SENATE RESOLUTION 352—URGING parties, and domestic and international ob- lective tax audits and other regulatory pro- THE GOVERNMENT OF UKRAINE servers to all election procedures, including cedures, and in the case of media, license TO ENSURE A DEMOCRATIC, voting and vote-counting in all areas of the revocations and libel suits, among other TRANSPARENT, AND FAIR ELEC- country; measures; Whereas increasing control and manipula- (F) a transparent process for complaint TION PROCESS FOR THE PRESI- tion of the media by national and local offi- DENTIAL ELECTION ON OCTOBER and appeals through electoral commissions cials and others acting at their behest raise and within the court system that provides 31, 2004 grave concerns regarding the commitment of timely and effective remedies; and Mr. CAMPBELL (for himself, Mr. the Ukrainian authorities to free and fair (G) vigorous prosecution of any individual DODD, and Mr. BIDEN) submitted the elections; or organization responsible for violations of following resolution; which was re- Whereas efforts by the national authorities election laws or regulations, including the to limit access to international broad- application of appropriate administrative or ferred to the Committee on Foreign casting, including Radio Liberty and the Relations: criminal penalties; Voice of America, represent an unacceptable (7) further calls upon the Government of S. RES. 352 infringement on the right of the Ukrainian Ukraine to guarantee election monitors from Whereas the establishment of a demo- people to independent information; the ODIHR, other participating States of the cratic, transparent, and fair election process Whereas efforts by national and local offi- OSCE, Ukrainian political parties, can- for the 2004 presidential election in Ukraine cials and others acting at their behest to im- didates’ representatives, nongovernmental and of a genuinely democratic political sys- pose obstacles to free assembly, free speech, organizations, and other private institutions tem are prerequisites for that country’s full and a free and fair political campaign have and organizations, both foreign and domes- integration into the Western community of taken place in Donetsk, Sumy, and else- tic, unobstructed access to all aspects of the nations as an equal member, including into where in Ukraine without condemnation or election process, including unimpeded access organizations such as the North Atlantic remedial action by the Ukrainian Govern- to public campaign events, candidates, news Treaty Organization (NATO); ment; media, voting, and post-election tabulation Whereas the Government of Ukraine has Whereas numerous substantial irregular- of results and processing of election chal- accepted numerous specific commitments ities have taken place in recent Ukrainian lenges and complaints; and governing the conduct of elections as a par- parliamentary by-elections in the Donetsk (8) pledges its enduring support and assist- ticipating State of the Organization for Se- region and in mayoral elections in ance to the Ukrainian people’s establishment curity and Cooperation in Europe (OSCE), in- Mukacheve, Romny, and Krasniy Luch; and of a fully free and open democratic system, cluding provisions of the Copenhagen Docu- Whereas the intimidation and violence their creation of a prosperous free market ment; during the April 18, 2004, mayoral election in economy, their establishment of a secure Whereas the election on October 31, 2004, of Mukacheve, Ukraine, represent a deliberate independence and freedom from coercion, Ukraine’s next president will provide an un- attack on the democratic process: Now, and their country’s assumption of its right- ambiguous test of the extent of the Ukrain- therefore, be it ful place as a full and equal member of the ian authorities’ commitment to implement Resolved, That the Senate— Western community of democracies.

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.044 S05PT1 S4918 CONGRESSIONAL RECORD — SENATE May 5, 2004 Mr. CAMPBELL. Mr. President, as the democratic opposition ‘‘Our TEXT OF AMENDMENTS Co-Chairman of the Helsinki Commis- Ukraine’’ bloc had won, the territorial SA 3117. Mr. BREAUX (for himself sion, I submit today a resolution urg- elections commission announced as and Mrs. FEINSTEIN) proposed an ing the Government of Ukraine to en- winner the candidate of a party led by amendment to the bill S. 1637, to sure a democratic, transparent and fair the head of Presidential Administra- amend the Internal Revenue Code of election process for the presidential tion, Viktor Medvedchuk. That some of 1986 to comply with the World Trade elections scheduled to be held in late the abuses and violence took place in Organization rulings on the FSC/ETI October. An identical resolution is front of OSCE observers, and that some benefit in a manner that preserves jobs being submitted by Chairman of the of the victims of violence were mem- and production activities in the United House International Relations Com- bers of the Ukrainian parliament, only States, to reform and simplify the mittee HENRY HYDE and my colleague underscores the brazenness of these ac- international taxation rules of the and Chairman of the Helsinki Commis- tions. The outlandish conduct of the United States, and for other purposes; sion, Representative CHRIS SMITH. I am Mukacheve elections not only casts as follows: pleased to note that the Commission’s doubt over their outcome, but when On page 88, between lines 17 and 18, insert: Ranking Member, Mr. DODD, and the coupled with other recent problematic ‘‘(4) DOLLAR LIMITATION.— Ranking Member of the Committee on elections, including in Constituency ‘‘(A) IN GENERAL.—Notwithstanding para- Foreign Relations, Mr. BIDEN, are No. 61 in Donetsk, could be a barom- graph (1), the excess qualified foreign dis- original cosponsors of the resolution. eter for the October presidential elec- tribution amount shall not exceed the lesser The Helsinki Commission, which has tions. of— ‘‘(i) the amount shown on the applicable fi- long monitored and encouraged human The resolution I submit today out- rights, rule of law and democracy in nancial statement as earnings permanently lines those measures the Ukrainian au- reinvested outside the United States, or Ukraine, continues to be a stalwart thorities need to take—consistent with ‘‘(ii) the excess (if any) of— supporter of Ukraine’s development as their own laws and international agree- ‘‘(I) the estimated aggregate qualified ex- an independent, democratic and mar- ments—for a free, fair, open and trans- penditures of the corporation for taxable ket-oriented state. There is a genuine parent election process. The Ukrainian years ending in 2005, 2006, and 2007, over desire in the United States for Ukraine authorities at all levels, including the ‘‘(II) the aggregate qualified expenditures to succeed in this process and for the executive, legislative and judicial of the corporation for taxable years ending in 2001, 2002, and 2003. long-suffering Ukrainian people to branches, need to ensure an election fully realize their dreams and aspira- ‘‘(B) EARNINGS PERMANENTLY REINVESTED process that enables all of the can- OUTSIDE THE UNITED STATES.— tions. This resolution, by encouraging didates to compete on a level playing ‘‘(i) IN GENERAL.—If an amount on an appli- fair, open and transparent elections, is field. This includes the various institu- cable financial statement is shown as Fed- a concrete expression of the commit- tions and agencies involved directly or eral income taxes not required to be reserved ment of the U.S. Congress to the indirectly in the elections process, by reason of the permanent reinvestment of Ukrainian people. such as the Central Election Commis- earnings outside the United States, subpara- The resolution underscores that an sion, the Ministry of Internal Affairs, graph (A)(i) shall be applied by reference to election process and the establishment the earnings to which such taxes relate. Procuracy, the State Security Service ‘‘(ii) NO STATEMENT OR STATED AMOUNT.—If of a genuinely democratic political sys- (SBU), Tax Administration, as well as tem consistent with Ukraine’s freely- there is no applicable financial statement or the Constitutional and Supreme such a statement fails to show a specific undertaken OSCE commitments is a Courts. amount described in subparagraph (A)(i) or prerequisite for Ukraine’s full integra- clause (i), such amount shall be treated as tion into the Western community of Ukraine’s October presidential elections should be a watershed for the fu- being zero. nations as an equal member, including ‘‘(iii) APPLICABLE FINANCIAL STATEMENT.— ture direction of that country of great into NATO. The October elections will For purposes of this paragraph, the term ‘ap- be vital in determining Ukraine’s potential. It is abundantly clear that a plicable financial statement’ means the most course for years to come and they small clique have a vested interest in recently audited financial statement (includ- present the Ukrainian authorities with perpetuating the outmoded status quo. ing notes and other documents which accompany such statement)— a real opportunity to demonstrate Ukrainian authorities need to radically improve the election environment if ‘‘(I) which is certified on or before March their commitment to OSCE principles 31, 2004, as being prepared in accordance with and values. there is to be hope for these elections to meet OSCE standards. The question generally accepted accounting principles, Unfortunately, Ukraine’s pre-elec- and tion environment has already been de- is whether their perceived self-interest ‘‘(II) which is used for the purposes of a cidedly problematic and of increasing will trump the interest of the people of statement or report to creditors, to share- concern to the United States and the Ukraine. Having restored the independ- holders, or for any other substantial nontax international community. During the ence of their proud land, the Ukrainian purpose. course of this year I have shared spe- people deserve an opportunity to over- In the case of a corporation required to file cific concerns with Senate colleagues, come the legacy of the past, and con- a financial statement with the Securities particularly in terms of the media. The solidate democracy, human rights and and Exchange Commission, such term means the rule of law. the most recent such statement filed on or resolution submitted today focuses before March 31, 2004. squarely on key problem areas, includ- ‘‘(C) QUALIFIED EXPENDITURES.—For pur- f ing increasing control and manipula- poses of this paragraph, the term ‘qualified tion of the media and attempts by na- expenditures’ means— tional authorities to limit access to AMENDMENTS SUBMITTED AND ‘‘(i) wages (as defined in section 3121(a)), international broadcasting, including PROPOSED ‘‘(ii) additions to capital accounts for prop- Radio Liberty and Voice of America. erty located within the United States (in- SA 3117. Mr. BREAUX (for himself and Mrs. Among other concerns are the blatant cluding any amount which would be so added FEINSTEIN) proposed an amendment to the but for a provision of this title providing for obstacles to free assembly and a free bill S. 1637, to amend the Internal Revenue the expensing of such amount), and fair political campaign as well as Code of 1986 to comply with the World Trade ‘‘(iii) qualified research expenses (as de- substantial irregularities in several re- Organization rulings on the FSC/ETI benefit fined in section 41(b)) and basic research pay- cent elections. in a manner that preserves jobs and produc- ments (as defined in section 41(e)(2)), and An egregious example of how not to tion activities in the United States, to re- ‘‘(iv) irrevocable contributions to a quali- conduct elections was the mayoral form and simplify the international taxation fied employer plan (as defined in section election held two weeks ago in the rules of the United States, and for other pur- 72(p)(4)) but only if no deduction is allowed western Ukrainian city of Mukacheve. poses. under this chapter with respect to such con- This election was marred by intimida- SA 3118. Mr. ALLARD (for himself, Mr. tributions. SCHUMER, Mr. MILLER, Mrs. CLINTON, Mr. ‘‘(D) RECAPTURE.—If the taxpayer’s esti- tion, violence, fraud and manipulation CHAMBLISS, and Mr. CORZINE) submitted an mate of qualified expenditures under sub- of the vote count, electoral disruptions amendment intended to be proposed by him paragraph (A)(ii)(I) is greater than the ac- and irregularities. Despite strong evi- to the bill S. 1637, supra; which was ordered tual expenditures, then the tax imposed by dence indicating that a candidate from to lie on the table. this chapter for the taxpayer’s last taxable

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.046 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4919

year ending in 2007 shall be increased by the ‘‘(B) MINIMUM CONSERVATION AND TECH- ‘‘(vii) EMPLOYMENT.—The project is pro- sum of— NOLOGY INNOVATION OBJECTIVES.—The Sec- jected to provide permanent employment of ‘‘(i) the increase (if any) in tax which retary, after consultation with the Adminis- at least 1,500 full time equivalents (150 full would have resulted in the taxable year for trator of the Environmental Protection time equivalents in rural States) when com- which the deduction under this section was Agency, shall ensure that, in the aggregate, pleted and construction employment of at allowed if the actual expenditures were used the projects designated shall— least 1,000 full time equivalents (100 full time in lieu of the estimated expenditures, plus ‘‘(i) reduce electric consumption by more equivalents in rural States). ‘‘(ii) interest at the underpayment rate, de- than 150 megawatts annually as compared to The application shall include an independent termined as if the increase in tax described conventional generation, analysis which describes the project’s eco- in clause (i) were an underpayment for the ‘‘(ii) reduce daily sulfur dioxide emissions nomic impact, including the amount of pro- taxable year of the deduction. by at least 10 tons compared to coal genera- jected employment. ‘‘(5) LIMITATION ON CONTROLLED FOREIGN tion power, ‘‘(B) PROJECT DESCRIPTION.—Each applica- CORPORATIONS IN POSSESSIONS.—In computing ‘‘(iii) expand by 75 percent the domestic tion described in subparagraph (A) shall con- the excess qualified foreign distribution solar photovoltaic market in the United tain for each project a description of— amount under paragraph (1) and the base div- States (measured in megawatts) as compared ‘‘(i) the amount of electric consumption re- idend amount under paragraph (2), there to the expansion of that market from 2001 to duced as compared to conventional construc- shall not be taken into account dividends re- 2002, and tion, ceived from any controlled foreign corpora- ‘‘(iv) use at least 25 megawatts of fuel cell ‘‘(ii) the amount of sulfur dioxide daily tion created or organized under the laws of energy generation. emissions reduced compared to coal genera- any possession of the United States. ‘‘(3) LIMITED DESIGNATIONS.—A project may tion, not be designated under this subsection un- ‘‘(iii) the amount of the gross installed ca- SA 3118. Mr. ALLARD (for himself, less— pacity of the project’s solar photovoltaic ca- Mr. SCHUMER, Mr. MILLER, Mrs. CLIN- ‘‘(A) the project is nominated by a State or pacity measured in megawatts, and TON, Mr. CHAMBLISS, and Mr. CORZINE) local government within 180 days of the en- ‘‘(iv) the amount, in megawatts, of the submitted an amendment intended to actment of this subsection, and project’s fuel cell energy generation. be proposed by him to the bill S. 1637, ‘‘(B) such State or local government pro- ‘‘(5) CERTIFICATION OF USE OF TAX BEN- to amend the Internal Revenue Code of vides written assurances that the project EFIT.—No later than 30 days after the com- 1986 to comply with the World Trade will satisfy the eligibility criteria described pletion of the project, each project must cer- Organization rulings on the FSC/ETI in paragraph (4). tify to the Secretary that the net benefit of ‘‘(4) APPLICATION.— the tax-exempt financing was used for the benefit in a manner that preserves jobs ‘‘(A) IN GENERAL.—A project may not be purposes described in paragraph (4). and production activities in the United designated under this subsection unless the ‘‘(6) DEFINITIONS.—For purposes of this sub- States, to reform and simplify the application for such designation includes a section— international taxation rules of the project proposal which describes the energy ‘‘(A) RURAL STATE.—The term ‘rural State’ United States, and for other purposes; efficiency, renewable energy, and sustainable means any State which has— which was ordered to lie on the table, design features of the project and dem- ‘‘(i) a population of less than 4,500,000 ac- as follows: onstrates that the project satisfies the fol- cording to the 2000 census, lowing eligibility criteria: ‘‘(ii) a population density of less than 150 On page 139, between lines 13 and 14, insert ‘‘(i) GREEN BUILDING AND SUSTAINABLE DE- people per square mile according to the 2000 the following: SIGN.—At least 75 percent of the square foot- census, and SEC. ll. BROWNFIELDS DEMONSTRATION PRO- age of commercial buildings which are part ‘‘(iii) increased in population by less than GRAM FOR QUALIFIED GREEN BUILDING AND SUSTAINABLE DE- of the project is registered for United States half the rate of the national increase be- SIGN PROJECTS. Green Building Council’s LEED certification tween the 1990 and 2000 censuses. (a) TREATMENT AS EXEMPT FACILITY and is reasonably expected (at the time of ‘‘(B) LOCAL GOVERNMENT.—The term ‘local BOND.—Subsection (a) of section 142 (relating the designation) to receive such certifi- government’ has the meaning given such to the definition of exempt facility bond) is cation. term by section 1393(a)(5). amended by striking ‘‘or’’ at the end of para- ‘‘(ii) BROWNFIELD REDEVELOPMENT.—The ‘‘(C) NET BENEFIT OF TAX-EXEMPT FINANC- graph (12), by striking the period at the end project includes a brownfield site as defined ING.—The term ‘net benefit of tax-exempt fi- of paragraph (13) and inserting ‘‘, or’’, and by by section 101(39) of the Comprehensive Envi- nancing’ means the present value of the in- inserting at the end the following new para- ronmental Response, Compensation, and Li- terest savings (determined by a calculation graph: ability Act of 1980 (42 U.S.C. 9601), including established by the Secretary) which result ‘‘(14) qualified green building and sustain- a site described in subparagraph from the tax-exempt status of the bonds. able design projects.’’. (D)(ii)(II)(aa) thereof. ‘‘(7) AGGREGATE FACE AMOUNT OF TAX-EX- (b) QUALIFIED GREEN BUILDING AND SUS- ‘‘(iii) STATE AND LOCAL SUPPORT.—The EMPT FINANCING.— TAINABLE DESIGN PROJECTS.—Section 142 (re- project receives specific State or local gov- ‘‘(A) IN GENERAL.—An issue shall not be lating to exempt facility bonds) is amended ernment resources which will support the treated as an issue described in subsection by adding at the end thereof the following project in an amount equal to at least (a)(14) if the aggregate face amount of bonds new subsection: $5,000,000. For purposes of the preceding sen- issued by the State or local government pur- ‘‘(l) QUALIFIED GREEN BUILDING AND SUS- tence, the term ‘resources’ includes tax suant thereto for a project (when added to TAINABLE DESIGN PROJECTS.— abatement benefits and contributions in the aggregate face amount of bonds pre- ‘‘(1) IN GENERAL.—For purposes of sub- kind. viously so issued for such project) exceeds an section (a)(14), the term ‘qualified green ‘‘(iv) SIZE.—The project includes at least amount designated by the Secretary as part building and sustainable design project’ one of the following: of the designation. means any project which is designated by ‘‘(I) At least 1,000,000 square feet of build- ‘‘(B) LIMITATION ON AMOUNT OF BONDS.—The the Secretary, after consultation with the ing. Secretary may not allocate authority to Administrator of the Environmental Protec- ‘‘(II) At least 20 acres. issue qualified green building and sustain- tion Agency, as a qualified green building ‘‘(v) USE OF TAX BENEFIT.—The project pro- able design project bonds in an aggregate and sustainable design project and which posal includes a description of the net ben- face amount exceeding $2,000,000,000. meets the requirements of clauses (i), (ii), efit of the tax-exempt financing provided ‘‘(8) TERMINATION.—Subsection (a)(14) shall (iii), and (iv) of paragraph (4)(A). under this subsection which will be allocated not apply with respect to any bond issued ‘‘(2) DESIGNATIONS.— for financing of one or more of the following: after September 30, 2009. ‘‘(A) IN GENERAL.—Within 60 days after the ‘‘(I) The purchase, construction, integra- ‘‘(9) TREATMENT OF CURRENT REFUNDING end of the application period described in tion, or other use of energy efficiency, re- BONDS.—Paragraphs (7)(B) and (8) shall not paragraph (3)(A), the Secretary, after con- newable energy, and sustainable design fea- apply to any bond (or series of bonds) issued sultation with the Administrator of the En- tures of the project. to refund a bond issued under subsection vironmental Protection Agency, shall des- ‘‘(II) Compliance with LEED certification (a)(14) before October 1, 2009, if— ignate qualified green building and sustain- standards. ‘‘(A) the average maturity date of the issue able design projects. At least one of the ‘‘(III) The purchase, remediation, and foun- of which the refunding bond is a part is not projects designated shall be located in, or dation construction and preparation of the later than the average maturity date of the within a 10-mile radius of, an empowerment brownfields site. bonds to be refunded by such issue, zone as designated pursuant to section 1391, ‘‘(vi) PROHIBITED FACILITIES.—An issue ‘‘(B) the amount of the refunding bond does and at least one of the projects designated shall not be treated as an issue described in not exceed the outstanding amount of the re- shall be located in a rural State. No more subsection (a)(14) if any proceeds of such funded bond, and than one project shall be designated in a issue are used to provide any facility the ‘‘(C) the net proceeds of the refunding bond State. A project shall not be designated if principal business of which is the sale of food are used to redeem the refunded bond not such project includes a stadium or arena for or alcoholic beverages for consumption on later than 90 days after the date of the professional sports exhibitions or games. the premises. issuance of the refunding bond.

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.049 S05PT1 S4920 CONGRESSIONAL RECORD — SENATE May 5, 2004 For purposes of subparagraph (A), average Paragraph (2) of section 932(c) (relating to S. 1789 and H.R. 1616, to authorize the maturity shall be determined in accordance treatment of Virgin Islands residents) is exchange of certain lands within the with section 147(b)(2)(A).’’. amended to read as follows: Martin Luther King, Junior, National (c) EXEMPTION FROM GENERAL STATE VOL- ‘‘(2) FILING REQUIREMENTS.— Historic Site for lands owned by the UME CAPS.—Paragraph (3) of section 146(g) ‘‘(A) IN GENERAL.—Each individual to (relating to exception for certain bonds) is whom this subsection applies for the taxable City of Atlanta, GA, and for other pur- amended— year shall file an income tax return for the poses; S. 1808, to provide for the preser- (1) by striking ‘‘or (13)’’ and inserting ‘‘(13), taxable year with the Virgin Islands. vation and restoration of historic or (14)’’, and ‘‘(B) INFORMATION RETURNS FOR CERTAIN buildings at historically women’s pub- (2) by striking ‘‘and qualified public edu- TAXPAYERS.— lic colleges or universities; S. 2167, to cational facilities’’ and inserting ‘‘qualified ‘‘(i) IN GENERAL.—Each individual— establish the Lewis and Clark National public educational facilities, and qualified ‘‘(I) to whom this subsection applies for Historic Park in the States of Wash- green building and sustainable design the taxable year or for any taxable year dur- ington and Oregon, and for other pur- projects’’. ing the 5-taxable-year period ending before poses; and S. 2173, to further the pur- (d) ACCOUNTABILITY.—Each issuer shall the date of the enactment of the Jumpstart maintain, on behalf of each project, an inter- Our Business Strength (JOBS) Act, and poses of the Sand Creek Massacre Na- est bearing reserve account equal to 1 per- ‘‘(II) to whom this subparagraph has not tional Historic Site Establishment Act cent of the net proceeds of any bond issued applied for the preceding 2 taxable years, of 2000. under this section for such project. Not later shall file an income tax return with the Because of the limited time available than 5 years after the date of issuance, the United States. for the hearings, witnesses may testify Secretary of the Treasury, after consultation ‘‘(ii) FILING FEE.—The Secretary shall by invitation only. However, those with the Administrator of the Environ- charge a processing fee with respect to the wishing to submit written testimony mental Protection Agency, shall determine return filed under this subparagraph of an for the hearing record should send two whether the project financed with such amount appropriate to cover the administra- bonds has substantially complied with the copies of their testimony to the Com- tive costs of the requirements of this sub- mittee on Energy and Natural Re- terms and conditions described in section paragraph and the enforcement of the pur- 142(l)(4) of the Internal Revenue Code of 1986 poses of this subparagraph.’’. sources, United States Senate, SD–364 (as added by this section). If the Secretary, (c) PENALTIES.— Dirksen Senate Office Building, Wash- after such consultation, certifies that the (1) IN GENERAL.—Part I of subchapter B of ington, DC 20510–6150. project has substantially complied with such chapter 68 is amended by adding at the end For further information, pleased con- terms and conditions and meets the commit- the following new section: tact Tom Lillie at (202) 224–5161 or ments set forth in the application for such ‘‘SEC. 6717. FAILURE OF VIRGIN ISLANDS RESI- Sarah Creachbaum at (202) 224–6293. project described in section 142(l)(4) of such DENTS TO FILE RETURNS WITH THE f Code, amounts in the reserve account, in- UNITED STATES. cluding all interest, shall be released to the ‘‘(a) PENALTY AUTHORIZED.—The Secretary AUTHORITY FOR COMMITTEES TO project. If the Secretary determines that the may impose a civil money penalty on any MEET project has not substantially complied with person who violates, or causes any violation COMMITTEE ON ARMED SERVICES such terms and conditions, amounts in the of, the requirements of section 932(c)(2)(B). reserve account, including all interest, shall ‘‘(b) AMOUNT OF PENALTY.— Mr. GRASSLEY. Mr. President, I ask be paid to the United States Treasury. ‘‘(1) IN GENERAL.—Except as provided in unanimous consent that the Com- (e) EFFECTIVE DATE.—The amendments subsection (c), the amount of any civil pen- mittee on Armed Services be author- made by this section shall apply to bonds alty imposed under subsection (a) shall not ized to meet during the session of the issued after December 31, 2004. exceed $5,000. Senate on Wednesday, May 5, 2004, at On page 365, between lines 3 and 4, insert ‘‘(2) REASONABLE CAUSE EXCEPTION.—No 2:30 p.m., in closed session to mark up the following: penalty shall be imposed under subsection the Department of Defense Authoriza- SEC. ll. SUBSTANTIAL PRESENCE TEST RE- (a) with respect to any violation if such vio- tion Act for fiscal year 2005. QUIRED TO DETERMINE BONA FIDE lation was due to reasonable cause. RESIDENCE IN UNITED STATES POS- The PRESIDING OFFICER. Without ‘‘(c) WILLFUL VIOLATIONS.—In the case of SESSIONS. any person willfully violating, or willfully objection, it is so ordered. (a) SUBSTANTIAL PRESENCE TEST.— causing any violation of, any requirement of COMMITTEE ON COMMERCE, SCIENCE, AND (1) IN GENERAL.—Subpart D of part III of TRANSPORTATION subchapter N of chapter 1 (relating to posses- section 932(c)(2)(B)— ‘‘(1) the maximum penalty under sub- Mr. GRASSLEY. Mr. President, I ask sions of the United States) is amended by unanimous consent that the Com- adding at the end the following new section: section (b)(1) shall be increased to $25,000 and ‘‘(2) subsection (b)(2) shall not apply.’’. mittee on Commerce, Science, and ‘‘SEC. 937. BONA FIDE RESIDENT. (2) CLERICAL AMENDMENT.—The table of ‘‘For purposes of this subpart, section Transportation be authorized to meet sections for Part I of subchapter B of chapter 865(g)(3), section 876, section 881(b), para- on Wednesday, May 5, 2004, at 9:30 a.m., 68 is amended by adding at the end the fol- graphs (2) and (3) of section 901(b), section for a closed hearing on steroids. lowing new item: 957(c), section 3401(a)(8)(C), and section The PRESIDING OFFICER. Without 7654(a), the term ‘bona fide resident’ means a ‘‘Sec. 6717. Failure of Virgin Islands resi- objection, it is so ordered. person who satisfies a test, determined by dents to file returns with the COMMITTEE ON FINANCE the Secretary, similar to the substantial United States.’’. Mr. GRASSLEY. Mr. President, I ask presence test under section 7701(b)(3) with re- (d) EFFECTIVE DATES.—The amendments unanimous consent that the Com- spect to Guam, American Samoa, the North- made by subsection (a) shall apply to taxable ern Mariana Islands, Puerto Rico, or the Vir- mittee on Finance be authorized to years ending after the date of the enactment meet during the session on Wednesday, gin Islands, as the case may be.’’. of this Act. (2) CONFORMING AMENDMENTS.— May 5, 2004, at 10 a.m., in the 215 Dirk- (A) The following provisions are amended f sen Senate Office Building, to hear tes- by striking ‘‘during the entire taxable year’’ NOTICES OF HEARINGS/MEETINGS timony on ‘‘The Benefits of Healthy and inserting ‘‘for the taxable year’’: Marriage.’’ (i) Paragraph (3) of section 865(g). SUBCOMMITTEE ON NATIONAL PARKS The PRESIDING OFFICER. Without (ii) Subsection (a) of section 876(a). Mr. THOMAS. Mr. President, I would objection, it is so ordered. (iii) Paragraphs (2) and (3) of section 901(b). like to announce for the information of COMMITTEE ON THE JUDICIARY (iv) Subsection (a) of section 931. the Senate and the public that the fol- (v) Paragraphs (1) and (2) of section 933. Mr. GRASSLEY. Mr. President, I ask lowing hearing has been scheduled be- unanimous consent that the Com- (B) Section 931(d) is amended by striking fore the Subcommittee on National paragraph (3). mittee on the Judiciary be authorized (C) Section 932 is amended by striking ‘‘at Parks of the Committee on Energy and to meet to conduct a hearing on the close of the taxable year’’ and inserting Natural Resources: Wednesday, May 5, 2004 at 10 a.m. on ‘‘for the taxable year’’ each place it appears. The hearing will be held on Thurs- ‘‘Oversight Hearing: Aiding Terror- (3) CLERICAL AMENDMENT.—The table of day, May 20, 2004 at 2:30 p.m. in room ists—An Examination of the Material sections of subpart D of part III of sub- SD–366 of the Dirksen Senate Office Support Statute’’ in the Dirksen Sen- chapter N of chapter 1 is amended by adding Building in Washington, DC. ate Office Building Room 226. at the end the following new item: The purpose of the hearing is to re- ‘‘Sec. 937. Bona fide resident.’’. ceive testimony on the following bills: Witness List (b) REPORTING REQUIREMENTS FOR BONA S. 1672, to expand the Timucuan Eco- Panel I: The Honorable Chris Wray, FIDE RESIDENTS OF THE VIRGIN ISLANDS.— logical and Historic Preserve, Florida; Assistant Attorney General, Criminal

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.049 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4921 Division, United States Department of a.m., in closed session to mark up the APPOINTMENTS Justice, Washington, DC; The Honor- personnel programs and provisions con- The PRESIDING OFFICE. The Chair, able Daniel Bryant, Assistant Attorney tained in the Department of Defense on behalf of the Vice President, pursu- General, Office of Legal Policy, United Authorization Act for fiscal year 2005. ant to 22 U.S.C. 276h–276k, as amended, States Department of Justice, Wash- The PRESIDING OFFICER. Without appoints the following Senator as a ington, DC; and Mr. Cary Bald, Assist- objection, it is so ordered. member of the Senate Delegation to ant Director, Counterterrorism Divi- SUBCOMMITTEE ON READINESS AND the Mexico-U.S. Interparliamentary sion, Federal Bureau of Investigation, MANAGEMENT SUPPORT Group during the Second Session of the United States Department of Justice, Mr. GRASSLEY. Mr. President, I ask 108th Congress: The Senator from New Washington, DC. unanimous consent that the Sub- Mexico, Mr. BINGAMAN. Panel II: Mr. David Cole, Professor of committee on Readiness and Manage- The PRESIDING OFFICER. The Law, Georgetown University Law Cen- ment Support of the Committee on Chair, on behalf of the Vice President, ter, Georgetown University, Wash- Armed Services be authorized to meet in accordance with 22 U.S.C. 1928a– ington, DC; and Mr. Paul Rosenzweig, during the session of the Senate on 1928d, as amended, appoints the fol- Senior Legal Research Fellow, The Wednesday, May 5, 2004, at 10 a.m., in lowing Senators as members of the Heritage Foundation, Washington, DC. closed session to mark up the readiness Senate Delegation to the NATO Par- The PRESIDING OFFICER. Without and management support programs and liamentary Assembly during the Sec- objection, it is so ordered. provisions contained in the Depart- ond Session of the 108th Congress: Sen- SELECT COMMITTEE ON INTELLIGENCE ment of Defense Authorization Act for ator ERNEST F. HOLLINGS of South Mr. GRASSLEY. Mr. President, I ask fiscal year 2005. Carolina, Senator ZELL MILLER of unanimous consent that the Select The PRESIDING OFFICER. Without Georgia. Committee on Intelligence be author- objection, it is so ordered. f ized to meet during the session of the SUBCOMMITTEE ON SCIENCE, TECHNOLOGY, AND Senate on May 5, 2004, at 2:30 p.m., to SPACE NATIONAL WORLD WAR II hold a closed hearing on intelligence Mr. GRASSLEY. Mr. President, I ask MEMORIAL matters. unanimous consent that the Sub- Mr. FRIST. Mr. President, I ask The PRESIDING OFFICER. Without committee on Science, Technology, unanimous consent the Judiciary Com- objection, it is so ordered. and Space be authorized to meet on mittee be discharged from further con- SUBCOMMITTEE ON FORESTS AND PUBLIC LANDS Wednesday, May 5, 2004, at 2:30 p.m., on sideration of S.J. Res. 34 and the Sen- Mr. GRASSLEY. Mr. President, I ask Space Shuttle and the Future of Space ate proceed to its immediate consider- unanimous consent that the Sub- Launch Vehicles. ation. committee on Forests and Public The PRESIDING OFFICER. Without The PRESIDING OFFICER (Mr. Lands of the Committee on Energy and objection, it is so ordered. COLEMAN). Without objection, it is so Natural Resources be authorized to SUBCOMMITTEE ON STRATEGIC FORCES ordered. meet during the session of the Senate Mr. GRASSLEY. Mr. President, I ask The clerk will report the resolution on Wednesday, May 5, at 2:30 p.m. unanimous consent that the Sub- by title. The purpose of the hearing is to re- committee on Strategic Forces of the The legislative clerk read as follows: ceive testimony on the following bills: Committee on Armed Services be au- A joint resolution (S.J. Res. 34) desig- S. 155, to convey to the town of thorized to meet during the session of nating May 29, 2004, on the occasion of the Frannie, WY, certain land withdrawn the Senate on Wednesday, May 5, 2004, dedication of the National World War II Me- by the Commissioner of Reclamation; at 11:30 a.m., in closed session to mark morial, as Remembrance of World War II S. 2285, to direct the Secretary of the up the strategic forces programs and Veterans Day. Interior to convey a parcel of real prop- provisions contained in the Depart- There being no objection, the Senate erty to Beaver County, UT; S. 1521, to ment of Defense Authorization Act for proceeded to consider the joint resolu- direct the Secretary of the Interior to fiscal year 2005. tion. convey certain land to the Edward H. The PRESIDING OFFICER. Without Mr. FRIST. I further ask that the McDaniel American Legion Post No. 22 objection, it is so ordered. joint resolution be read three times in Pahrump, NV, for the construction f and passed, the preamble be agreed to, of a Post building and memorial park the motion to reconsider be laid upon for use by the American Legion, other PRIVILEGE OF THE FLOOR the table, and any statements related veterans’ groups, and the local commu- Mr. GRASSLEY. Mr. President, I ask to this matter be printed in the RECORD nity; S. 1826, to direct the Secretary of unanimous consent for Jill Gotts, a at the appropriate place. the Interior to convey certain land in legislative fellow for the Finance Com- The PRESIDING OFFICER. Without Washoe County, NV, to the Board of mittee majority staff, be granted floor objection, it is so ordered. Regents of the University and Commu- privileges between now and the end of The joint resolution (S.J. Res. 34) nity College System of Nevada; S. 2085, the 108th Congress. was read the third time and passed. to modify the requirements of the land The PRESIDING OFFICER. Without The preamble was agreed to. conveyance to the University of Ne- objection, it is so ordered. The joint resolution, with its pre- vada at Las Vegas Research Founda- amble, reads as follows: f tion; and H.R. 1658, to amend the Rail- S.J. RES. 34 road Right-of-Way Conveyance Valida- NOTICE: PUBLIC FINANCIAL Whereas on May 29, 2004, thousands of vet- tion Act to validate additional convey- DISCLOSURE REPORTS erans, their families, and friends will gather ances of certain lands in the State of The filing date for 2004 Public Finan- on the Mall in Washington, District of Co- California that form part of the right- cial Disclosure reports is Monday, May lumbia, to dedicate the National World War of-way granted by the United States to 17, 2004. Senators, political fund des- II Memorial; Whereas on that day, Americans will pay facilitate the construction of the ignees and staff members whose sala- Transcontinental Railway, and for tribute to the more than 16,112,000 veterans ries exceed 120 percent of the GS–15 pay of all military services who served in World other purposes. scale must file reports. War II between the German invasion of Po- The PRESIDING OFFICER. Without Public Financial Disclosure reports land in 1939 and the surrender by Japan on objection, it is so ordered. should be submitted to the Senate Of- V–J Day in 1945; SUBCOMMITTEE ON PERSONNEL fice of Public Records, 232 Hart Build- Whereas on that day, Americans will be re- Mr. GRASSLEY. Mr. President, I ask ing, Washington, DC 20510–7116. minded of the heroism and sacrifice of mem- unanimous consent that the Sub- The Public Records office will be bers of the Armed Forces who were on duty during some of the critical conflicts of World committee on Personnel of the Com- open from 8 a.m. to 6. p.m. on the filing War II, including the attack on Pearl Harbor mittee on Armed Services be author- date to accept these filings. For further of December 7, 1941, the Battle of Midway of ized to meet during the session of the information, please contact the Public June 6, 1942, the invasion of Guadalcanal on Senate on Wednesday, May 5, 2004, at 9 Records office at (202) 224–0322. August 7, 1942, the Allied campaign in North

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.062 S05PT1 S4922 CONGRESSIONAL RECORD — SENATE May 5, 2004 Africa in November 1942, Operation Overlord tinue that process and that progress to- frighten and intimidate detainees. One (D-Day) on June 6, 1944, the capture of Iwo morrow with respect to relevant graphic description in the New York Jima on February 23, 1945, and the Tokyo amendments to the bill. Senators Times today talks about the experience bombing raids of March 1945; should expect rollcall votes on amend- of a particular Iraqi male, the deep hu- Whereas on that day, veterans and their miliation and shame he still feels, the families from North Dakota will honor the ments throughout the afternoon. The heroism and sacrifice of the approximately Senate may also act on executive utter degradation, the sadistic and dis- 69,000 North Dakota veterans who served in nominations during tomorrow’s ses- gusting abuse of him night after night World War II, including 1,569 who made the sion; therefore, additional votes are by his American captors. ultimate sacrifice, and recognize the hard- possible. I agree with the remarks of the ma- ships and sacrifices of the 164th Regiment of In particular, I look forward and jority leader that these people carrying the American Division, a unit of the North hope we would be able to act on one out these terrible deeds were few in Dakota Army National Guard, who were the very important nominee, John D. number, but tragically their impact is first unit of the United States Army to land Negroponte of New York, to be Ambas- enormous. They are going to make life on Guadalcanal on October 13, 1942, in the a lot more difficult and a lot more dan- campaign to recapture that island; sador Extraordinary and Pleni- Whereas on that day, America will ac- potentiary of the United States of gerous for the 134,000 incredibly brave, knowledge the supreme sacrifice of the more America to Iraq. Many members have patriotic Americans who are over there than 400,000 Army, Army Air Corps, Navy, had the opportunity to get to know putting their lives on the line every Marine Corps, Coast Guard, and Merchant this particular nominee, to discuss his day and night. Marine personnel who were killed in action plans for the future, and it is critical A story in the New York Times gives in World War II; we act as soon as we possibly can on a sense of how this is affecting the way Whereas 12 distinguished Senators and this nominee who will be our ambas- the United States is viewed in the Arab Members of Congress serving in the 108th world, saying in the Arab world and be- Congress, including Senator Daniel K. sador to Iraq. It is critical we do that as soon as possible. It is my hope and yond, the tormenting of Iraqi prisoners Akaka, Senator Ernest F. Hollings, Senator by their American guards shredded al- Daniel K. Inouye, Senator Frank R. Lauten- expectation to do that tomorrow. ready thin support for Washington’s in- berg, Senator Ted Stevens, Senator John W. f Warner, Congressman Cass Ballenger, Con- vasion of Iraq and its vow to install gressman John D. Dingell, Congressman ORDER FOR ADJOURNMENT democratic values and respect for Ralph M. Hall, Congressman Amo Houghton, Mr. FRIST. If there is no further human rights. Congressman Henry J. Hyde, and Congress- business to come before the Senate, I The outrage over the abuse shown in man Ralph Regula, served in World War II; ask unanimous consent that the Sen- pictures flashed across front pages and and television screens drew emotional com- Whereas World War II veterans, members ate stand in adjournment under the previous order, following the remarks parisons, asking how the American oc- of the generation known as ‘‘the Greatest cupation of the country could be dis- of Senator DAYTON for up to 10 minutes Generation’’, through their sacrifice and tinguished from the way Saddam Hus- hard work over more than 50 years, have en- and Senator MURRAY for up to 60 min- sein’s government oppressed the ordi- abled millions of Americans to enjoy unpar- utes. alleled prosperity and the blessings of free- The PRESIDING OFFICER. Without nary Iraqis. This kind of outrage will lead to more attacks against our dom: Now, therefore, be it objection, it is so ordered. Resolved by the Senate and House of Rep- The Senator from Minnesota. forces, greater intensity of attacks, resentatives of the United States of America in more bombing and assassination at- Congress assembled, That May 29, 2004, is here- f tempts against our forces and other by designated as Remembrance of World War IRAQ PRISONER ATROCITIES representatives, more casualties, more II Veterans Day, and the President is urged men and women from America dying, to call upon the people of the United States Mr. DAYTON. Mr. President, I was to celebrate the day with appropriate cere- present for the concluding remarks of shedding blood as a result of this im- monies and activities. the majority leader regarding the moral and illegal misconduct. atrocities committed in Iraq against The U.S. military, according to this f report, first became aware of these in- the prisoners there. I certainly share cidents, or some of them, as early as ORDERS FOR THURSDAY, APRIL 6, his sentiments. A number of my col- January of this year; in fact, maybe 2004 leagues have spoken today from both even sooner than that. It was January Mr. FRIST. I ask unanimous consent sides of the aisle expressing their hor- 19 that LTG Ricardo Sanchez, the com- that when the Senate completes its ror, their outrage, and their deep re- mander of the joint task force in Iraq, business today, it adjourn until 9:30 gret. I join with them as well. requested that these incidents of last a.m. on Thursday, May 6th. I further I also am deeply disturbed as a Sen- October, November, and December be ask that following the prayer and ator and as a Member of the Senate investigated. There was a preliminary pledge, the morning hour be deemed Armed Services Committee at the lack report which indicated systemic prob- expired, the Journal of proceedings be of communication from the military lems within the prison brigade and sug- approved to date, and following the and the civilian command to those gested a lack of clear standards, pro- time of the two leaders, the Senate Members of the Senate about these in- ficiency, and leadership. then begin a period of morning busi- cidents—in fact, right up to the mo- That investigation began then on ness for up to 90 minutes, with the first ment they were disclosed to the Amer- January 24. It was carried out through half of the time under the control of ican people through, fortunately, a free interviews and other investigations of the majority leader or his designee, and vigilant press. both Iraqi prisoners, former prisoners, and the second half under the control According to the information I have and U.S. military personnel who had of the Democratic leader or his des- been able to obtain, a copy of the most witnessed these incidents. ignee; provided that following morning recently referenced classified internal On February 29, the executive sum- business, the Senate resume consider- military report, and other news reports mary was presented to the military ation of Calendar 381, S. 1637, the FSC/ about that and other information, command; on March 19, the final writ- ETI JOBS bill. many of these incidents that have been ten report. The outbrief to the appoint- The PRESIDING OFFICER. Without under investigation occurred last Octo- ing authority took place on March 3, objection, it is so ordered. ber, last November—in other words, 2004. That is 2 months ago, and actu- f over half a year ago. They are horrible ally the 2 months preceding that, var- events. The report said that Iraqi pris- ious people in the chain of command PROGRAM oners had been victims of sadistic, bla- were aware of these incidents. Mr. FRIST. Mr. President, tomorrow, tant, and wanton criminal abuses. They must have recognized the enor- following morning business, the Senate They were beaten with broom handles mous impact they would have, the dev- will resume consideration of the FSC/ and chairs and threatened with rape. astating effect they would have upon ETI JOBS bill. We made excellent One prisoner was sodomized with a our situation in that country, mili- progress on the bill today, disposing of chemical light stick or with a broom- tarily, diplomatically, and in our rela- four amendments. I hope we can con- stick. Military dogs were also used to tions with other countries throughout

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.065 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4923 the world. Yet as far as I have been I think the people at various levels Today, I am sounding the alarm. Un- told, not one word—not one word, lit- who participated in this investiga- less we wake up to this threat, we are erally, was communicated to anyone in tion—I am not going to call it a cover- going to lose an industry that Ameri- the Senate, Democrat or Republican. up because there was an ongoing inves- cans created and that has brought in- We had, in fact, a briefing last Thurs- tigation, but, my goodness, for the last novation to every corner of our econ- day afternoon, a top-secret classified 2 months, when it was completed, and omy. briefing, which was attended, as I re- we were not informed, it was not being We Americans led the first century of call, by about 40 to 45 Members of the reported. If not covered up, it was flight, but we might not even have a Senate with the Secretary of Defense being hidden from Congress. role in the second century if we keep and the Chairman of the Joint Chiefs of I am going to ask those individuals sleepwalking down this dangerous Staff. That briefing occurred 2, 3 hours to read or reread the United States road. before the ‘‘60 Minutes II’’ report which Constitution and refresh their under- I am here on the Senate floor tonight disclosed these incidents and this re- standing of what it means to be in a to say: Wake up. Wake up to this port. Not one word—not one word—was constitutionally established democracy threat before we lose another American mentioned to any of us. where the executive branch and the industry. Wake up to this threat before I have been in briefings as a member legislative branch have coequal respon- we lose more high-wage, high-skill of the Senate Armed Services Com- sibilities. American jobs. Wake up to this threat mittee through the last weeks and I certainly would like to work with before it is too late. months where we have asked, time Members of both sides of the aisle in Too many Americans, especially in after time: What is going on? What is regard to the authorization of mili- our Government, are not aware of what the progress? What is the lack of tary—— Europe is doing to kill off our aero- progress? Where are the problems? The PRESIDING OFFICER. The Sen- space industry. I want to expose the What is occurring? Not a word about ator’s time has expired. unlimited assault that Europe and Air- this. Not a word, until it occurred, of Mr. DAYTON. Mr. President, I ask bus are leveling at America’s aerospace the eruption of violence, the inten- unanimous consent for 1 minute to workers. sification of violence, in key areas of conclude my remarks. As my colleagues know, I have been The PRESIDING OFFICER. Without Iraq over the last several weeks, which troubled by Europe’s market-distorting objection, it is so ordered. caused, in April, the highest level of actions in commercial aerospace for Mr. DAYTON. Mr. President, I would casualties since the war began. We ask, many years. I have raised my concern like to work with Members of both again and again: What is going on? And with Senators, with foreign leaders, sides of the aisle to put in place lan- we are told: Everything is fine. We are and with administrations of both par- guage, in the military authorization making great progress. ties. and in any supplemental requests that As early as last August, we were told Tonight, I am detailing my concerns are going to be made, that we be given 95 percent of the country is peacefully before the full Senate because EADS full and necessary disclosure, the same progressing. Everything is going well. and Airbus have launched a deceptive way we require corporations that are And we find out, through news reports PR and lobbying campaign to convince making stock offerings to inform their or through the reality of events, that is the U.S. Government that it is essen- investors, the same way we require cor- not the case. tially an American company. The Air- porations and those running them to There is no credibility. The American bus campaign of half-truths is on full inform their boards of directors of rel- people are not being told the facts and display as the company works overtime evant, critically important informa- the truth. The U.S. Congress is not in Washington, DC, to recreate a com- tion that has a material bearing on the being told the facts and the truth. We petition they already lost to build the information that is being presented so deserve the facts and the truth. next generation refueling tanker for they can make informed decisions. We I do not know who knew what at the Air Force. what point in time up through this are getting far less than that. We are I have come to the Senate floor to- chain of command. But I believe we being asked to make informed deci- night to set the record straight and to have the responsibility and the right to sions when we are not being given the show how Europe’s broader plan to find out. We are going to have, I am information, we are not being told the dominate aerospace threatens our fu- told, the opportunity, in the Senate truth. We are having vital, important ture. Armed Services Committee, to meet information withheld. That has to Tonight, I am going to focus on five with Secretary of Defense Rumsfeld stop. We need to disclose what has oc- issues. this Friday morning. I certainly—and I curred in these incidents. First, I want to explain why this is so We need to make sure they never know others, too—will be asking for important for our country. that sequence of events and asking why happen again. And we need to make Secondly, I want to explain how the it is that we are not told relevant in- sure that we in Congress are given the European view of aerospace as a social formation, crucial information that af- opportunity that we deserve, the right program to create jobs is helping Eu- fects the conditions over there, the that we have, to look out on behalf of rope beat out our more traditional progress or lack thereof, that then, in the American people to make sure they business perspective. turn, affects the lives, the safety, the never occur again. Third, I want to expose, in detail, the Thank you, Mr. President. well-being of the men and women who I yield the floor. underhanded things that Airbus is are serving over there heroically, and The PRESIDING OFFICER. The Sen- doing to dismantle our aerospace in- whose families are waiting back in my ator from Washington. dustry, from providing subsidies for State of Minnesota and across this Mrs. MURRAY. Thank you, Mr. launch aid, research, facilities and sup- country, frantically, anxiously, won- President. pliers, to selling planes below cost, dering what their future is going to be, guaranteeing the future value of air- f wondering if they are going to return craft, tying sales to landing rights, and home alive safely. THE AEROSPACE INDUSTRY linking plane sales to other trade We were elected in a democratic Mrs. MURRAY. Mr. President, will issues. process by those men and women, their the last aerospace worker leaving Fourth, I want to expose the decep- families, to be here to look out for America turn out the lights? I ask that tive lobbying and PR campaign Airbus them, to ask questions about what is question to sound an alarm for every is using to reopen a competition it lost going on, to be given the information American who cares about our econ- and the dangers that poses for Amer- about what is occurring, so we can par- omy and our security. ican security. Finally, I want to talk ticipate in decisions that are going to We are about to surrender our global about the steps we must take to retain affect U.S. policies that are going to aerospace leadership because we are our leadership of this critical industry. determine the outcome of their lives— sitting on our hands while Europe is Let me explain the title of my when they will be home, whether they doing everything it can to dismantle speech, ‘‘Will the Last Aerospace will come home. our aerospace industry. Worker Leaving America Turn Out the

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.142 S05PT1 S4924 CONGRESSIONAL RECORD — SENATE May 5, 2004 Lights?’’ I have the great honor of rep- are not low-wage, low-skill jobs that Let me start at home. For us in resenting the State of Washington move to where the labor is cheapest. America, commercial aerospace is seen which is one of America’s great aero- These are high-wage, high-skilled jobs as private business. Some companies space centers. We are very proud of our we need to keep in America. But we are will win; some companies will lose. We long history and our leadership. On being aggressively challenged by Eu- will let the marketplace decide. But for July 15, 1916, Bill Boeing started his rope for those jobs. Europe, aerospace is a jobs program. airplane company in Seattle, WA. Aerospace is also important for our The European governments will fund Since that day, Boeing and Washington overall economy. Our leadership in and support their domestic industry State have shared the ups and downs of commercial aerospace has helped because creating aerospace jobs in and the commercial aerospace industry. We American industries, from health care of itself is considered a priority. They have experienced extended periods of to automobiles, become safer, more ef- don’t care if Airbus loses money. They nearly full employment, and we have ficient, and more productive. don’t even require Airbus to pay back endured marked downturns that left According to John Douglas, president loans on failed products. They don’t tens of thousands unemployed. of the Aerospace Industries Association care as long as they are creating jobs In the early 1970s, there was a par- of America, the aerospace sector ‘‘gen- for Europeans. ticularly bad downturn. It seemed as if erates economic activity equal to near- Europe views aerospace as a long- everyone was leaving Seattle. So two ly 15 percent of the nation’s gross do- term investment. They are aggres- Seattle businessmen decided to post a mestic product and supports approxi- sively subsidizing the industry and billboard to put a lighthearted spin on mately 11 million American jobs.’’ Mr. pressuring and rewarding customers all the layoffs. Here is the photo that Douglas notes that aerospace also led without regard to making a profit or ran in the Seattle Times in 1971. It the Nation in net exports with a $30 following the business rules American shows a billboard with a light bulb and billion surplus in 2000. workers must follow. Simply put: They a string coming out of it. It says, ‘‘Will The Commission on the Future of the are willing to pay any price to take the last person leaving Seattle turn U.S. Aerospace Industry found that in over American leadership. out the lights.’’ 2001: Don’t take my word for it. Look at Anyone who lived through this dif- . . . more than 600 million passengers re- what EU leaders have said. Here is ficult period in Washington State lied on U.S. commercial air transportation what British Prime Minister Tony knows this sign. Eventually Seattle re- and over 150 million people were transported on general aviation aircraft. Over 40 percent Blair had to say last year: covered, and since the 1970s we have ex- of the value of U.S. freight is transported by As a result of over 500,000 pounds in launch perienced ups and downs. Today we are air. Aerospace capabilities have enabled e- aid, Airbus is today in a position where it facing another severe downturn in the commerce to flourish with overnight and can take over the leadership of the large air- aerospace industry. But today it is not parcel delivery and just in time manufac- craft market from Boeing in the United just Seattle or Washington State that turing. States. That would be tremendous for Brit- is hurting. We are hemorrhaging aero- ish manufacturing and for European indus- Not only is this about jobs, it is also try. space jobs in Kansas, California, Texas, about security. It is irresponsible to let It is not just Tony Blair. Here is Florida, New York, Illinois, Georgia, our country surrender our aerospace what a 2001 report to the European Arizona, Pennsylvania, Ohio, Con- leadership. Once our plants shut down, Commission, titled ‘‘European Aero- necticut, Maryland, New Hampshire, once our skilled workers move to other nautics, a Vision for 2020’’ states: Massachusetts, and Colorado. This is a fields, once the infrastructure is gone, national problem, and we are not too you can’t recreate that overnight. It European aeronautics has grown and pros- many years away from asking, will the pered with the support of public funds, and took 100 years to build our aerospace this support must continue if we are to last aerospace worker leaving America leadership, and we could lose it all in achieve our objective of global leadership. turn off the lights? We have to take ac- the next 10 years. The same report goes on to say: tion before it is too late. Sadly, we are Finally, commercial aerospace is im- Total funding required from all public and approaching a point of no return. portant for our future. Europe is work- private sources over the next 20 years could Last week the top two executives of ing hard to overtake our leadership of go beyond 100 billion euros. EADS revealed their plans to take over aerospace because they know it is the Simply put, Europe views aerospace the global aerospace industry. Accord- future, the future of the worldwide jobs as a priority. According to the Eu- ing to a German newspaper on April 27, economy and the future of human ex- ropean Aerospace Industry Associa- 2004, CEO Rainer Hertrich said: ploration. Europe wants to lead the fu- tion, there are at least 407,000 direct In ten years, we’ll be number one, every- ture. And if we stay on this track, they where, worldwide. jobs in Europe’s aerospace sector, more will. than 1.2 million total jobs supported by His CEO Phillipe Camus said: This industry is worth saving be- aerospace in Europe, and there are cause it is important for our jobs, our We’re now ready for our final step: more than 80,000 firms in the European globalization. economy, our security, and our future. aerospace supply chain. I should explain by way of background Some of my colleagues may wonder Europe has maintained a $20 billion there are only two companies in the why I am speaking at some length to- annual trade surplus in aerospace world that make large passenger air- night about the future of our aerospace goods since 1996. Europe has an aggres- planes. One is the Boeing Company. Its industry. It is because this industry is sive investigation for the future of commercial air operation is critical for jobs, for our economy, for aerospace. It wants to use significant headquartered in Renton, WA. The our security, and for our future. public investment to create and sus- other is Airbus which is headquartered The commercial aerospace industry tain jobs, largely at the expense of U.S. in Toulouse, France. Airbus is a divi- employs more than 2 million Ameri- competitors and workers. cans with an average salary of $47,000. sion of the European Aeronautics De- Here is how the Commission on the But unfortunately, we are losing these fense and Space Company also known Future of the U.S. Aerospace industry good-paying jobs at a rapid rate. In the as EADS. Throughout my remarks to- put it in 2002: past 15 years, we have lost 700,000 night, I will refer to Airbus and EADS Unfortunately, it appears that European American aerospace jobs. These are interchangeably. So it is one European officials intend to continue directly sub- scientific and technical jobs; 700,000 company and one American company sidizing EU companies. The recently un- high-skilled, high-wage jobs are gone. competing for control of the commer- veiled EU aerospace policy strategy calls for Unless we wake up, we are about to cial aerospace industry. an increase in subsidies to continue building lose more. Next I want to talk about how the market share, largely at the expense of U.S. We spend a lot of time in the Senate United States and Europe view com- companies. talking about how American jobs are mercial aerospace, because we have So Europeans are willing to do any- being shipped overseas in search of two very different visions. Unfortu- thing to subsidize Airbus and distort cheaper labor. Aerospace is a little dif- nately, their vision will allow them to the market so it can beat Boeing. But ferent than some of the other indus- overtake us unless we realize what here in the United States, our Govern- tries we have discussed. Aerospace jobs they are doing. ment is sitting on the sidelines. We are

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.145 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4925 following a normal business model, and without assuming any of the financial This article also notes that, accord- we are getting creamed by the Euro- risk and accountability that U.S. firms ing to a 2001 European Parliament re- peans, who are following a social wel- have to contend with every day. Here is port, the U.S. National Security Agen- fare model, where it doesn’t matter if how a top aviation analyst put it: cy intercepted faxes and phone calls they lose money if their products fail. Airbus cares a lot less about returning between Airbus, Saudi Arabian Air- As long as they are employing Euro- value to shareholders. Boeing is the classic lines, and Saudi Government officials peans and taking over America’s mar- American shareholder-driven corporation. in early 1994. The NSA found that Air- ket share, they don’t care. That is not Europe’s approach is working, too. bus agents were offering bribes to a competition; that is subsidized slaugh- Today, EADS is the second largest Saudi official to ensure that Airbus re- ter. aerospace company in the world. In the ceived a $6 billion order to modernize We have to wake up before it is too last decade, Boeing has seen its market the Saudi Arabian airlines fleet. Bribes late for America’s aerospace companies position globally erode significantly. and corruption have long been a part of and workers. This is not a truly com- At one time, Boeing sold 75 percent of their standard operating procedure for petitive market. Private U.S. compa- the aircraft purchased worldwide. Air- getting other countries to buy their nies, responsible to their shareholders, bus was in the teens. Today, Airbus airplanes. are confronting subsidized companies claims to supply more than 50 percent Those are just a few of the many funded by governments who don’t care of the industry. techniques they have used to beat out if they make a profit as long as they Mr. President, I have made the case American workers. Let me turn to an- create jobs. Understanding how the Eu- with statistics, data, trade reports, and other one. Airbus purchases have long ropeans approach aerospace is the first official Government findings. Let me been linked to landing rights at Eu- step to helping American workers sur- put it a little more simply: Airbus has rope’s busiest airports; a very attrac- vive this onslaught. The next step is to a sugar daddy named Europe, who will tive incentive to offer them to buy understand how the Europeans are put- keep forking over money until Airbus their airplanes, but it is a very questing their vision into action, and that has demolished America’s aerospace in- tionable practice. I want to share four documented ex- is what I want to focus on next. dustry and put hundreds of thousands amples. In 2002, an airline named Tonight, I want to explore the un- of skilled American workers on the unprecedented means that Airbus and the easyJet placed a big Airbus order and employment lines. then received favorable landing spots Europeans are using to overtake Amer- We cannot sit back and continue to ican workers. Europe is taking over at Orly Airport in France. In 2002, Ma- let that happen. But it is not just the laysia Airlines received landing rights America’s aerospace industry through support and development side in the aggressive, unfair market-distorting at Charles de Gaulle Airport in Paris 3 form of subsidies for launching facili- days after buying 6 Airbus A 380s. measures. Specifically, European gov- ties, research, and suppliers. Europe’s ernments are supporting Airbus on the Emirates Airlines and Qatar Airways market distortions go much further on both received extra landing rights after development side, as Airbus creates the sales side. Tonight I want to expose new aircraft, and on the sales side, as buying Airbus airplanes. some of the ways that European gov- A source close to Emirates Airlines Airbus pressures airlines and foreign ernments are supporting Airbus sales. governments to buy their aircraft. said: Airbus uses a series of incentives and It seems that Airbus leans on Air France, Let’s start with the development threats to steal customers away from side, where we find massive market- which has the slots at Paris Charles de Boeing—everything from bribes and Gaulle and the slots are given to the airline distorting subsidies at every stage. landing rights, to discounts, value that has bought airbus. . . .This has been Let’s remember that Airbus was cre- guarantees, and trade threats and re- known for years. Airbus sells one of its ated by European governments in 1967 wards. Airbus has a history of graft and planes to a customer and promises to do its specifically to challenge Boeing and corruption. But don’t take my word for best to get slots for that airline. U.S. aerospace dominance in the manu- it. Look at what the Economist maga- But landing rights are not the only facture of large civil aircraft. EADS zine, on June 14, 2003, said in a special trick Airbus uses to sell their planes. gets subsidies at nearly every stage of report, entitled ‘‘Airbus’s Secret Past; Airbus also aggressively discounts the aircraft development. They benefit Aircraft and Bribery″: purchase price of its planes, often at from launch subsidies, research sub- Up until 2000, Airbus and other French the last minute, and often below the sidies, facility subsidies, and supplier companies were allowed to take a tax deduc- cost of production. subsidies. These aggressive subsidies tion for bribes. Airbus regularly makes a late final give Airbus virtually unlimited back- offer to an airline after Boeing has Imagine that—bribing someone to ing to overtake the American aero- made its best offer. Time and again, buy your airplane and then you take a space industry. It is like an American Boeing has lost a commercial sale be- tax deduction for the bribe you paid. worker stepping into a boxing ring cause Airbus doesn’t have the same The Economist article details Airbus only to find out that, instead of one op- commercial accountability. Airbus reg- sales campaigns in India, Syria, and ponent, he is up against the full force ularly sells aircraft below the price of Canada that involved corruption and and power of the entire European production simply to gain market bribes. The article notes that, in 2001, Union. It is not a fair fight. share and to take customers away from the Under Secretary for Commerce for Europe’s abuses have been well docu- Boeing. mented by our own Government. Here International Trade testified before The 2000 easyJet deal I just men- is what the U.S. Trade Representative Congress on U.S. competitiveness in tioned a moment ago is a prime exam- said about Airbus subsidies in its 2003 aircraft manufacturing. The Under ple of Airbus’s willingness to discount report on trade barriers: Secretary warned that bribery remains airplanes to win sales campaigns. a threat to U.S. competitiveness. He Since the inception of Airbus in 1967, the Airbus does not reveal its discounts governments of France, Germany, Spain, and said: or the particulars of a given order. the UK have provided direct subsidies to This is an industry where foreign corrup- However, it was widely reported that their respective Airbus member companies tion has a real impact. Bribery by foreign Easy Jet got a 50-percent discount on to aid the development, production, and mar- companies can have important consequences its Airbus purchase. Boeing said the for U.S. competitiveness because of the crit- keting of Airbus civil aircraft. Airbus mem- deal was below the cost of production. ber governments have borne a large portion ical role governments play in selecting air- of development costs for all Airbus aircraft craft suppliers; and because of the huge sums Airbus sold its planes below cost. Air- modes and provided other forms of support, of money involved in aircraft purchases, this bus got the order at Boeing’s expense, debt rollovers, and marketing assistance, in- sector has been especially vulnerable to and the Europeans got at least 10,000 cluding political and economic pressure on trade distortions involving bribery of foreign direct jobs. It is a great deal for Eu- purchasing governments. public officials. rope; it is a horrible deal for American These subsidies create an uneven His remarks were directed squarely workers. It happened because of all the playing field and allow Airbus to do at Airbus and the European nations financial backing, subsidies, and spe- things that normal private companies that aggressively back Airbus sales cial deals that Airbus gets from its Eu- cannot afford to do. Airbus has grown campaigns throughout the world. ropean sponsors.

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.151 S05PT1 S4926 CONGRESSIONAL RECORD — SENATE May 5, 2004 Let me share another way that Air- tees Airbus is using to undermine policymakers and to the general pub- bus distorts the marketplace. Buying American aerospace. Airbus also steals lic. They are running a campaign of new aircraft is a big expense for any sales by making threats and rewards misinformation and half-truths to se- airline. Airlines want to make sure the on unrelated trade issues. cure more U.S. business for European planes they buy will hold their value Airbus and European government of- workers. Their campaign is particu- for years after their purchase. Nor- ficials regularly link Airbus sales to larly evident in Washington, DC, where mally, the market price decides the other trade issues. There is constant Airbus is seeking to influence both the value of a used airplane, just like the cooperation between Airbus and Euro- administration and this Congress. They marketplace decides the value of a pean leaders to pressure foreign air- have their lobbyists working to unused car. But Airbus uses its deep lines and governments to buy Airbus ravel the Boeing tanker contract, and pockets to override the marketplace. aircraft. Let me share a few docu- their PR shop is making false claims When Airbus sells a plane to an airline, mented examples that span the globe. about Airbus’s impact on our economy. it often promises the airline that the First, Europe gives special rewards to Simply put, they are trying to get us plane will hold its value in the future, countries for buying Airbus planes. It to see them as an American company. and if it does not, Airbus will pay the happened with Russia 2 years ago. Airbus and EADS have hired a small difference to the airline. After the Russian airline Aeroflot army of lobbyists. At least 18 lobbyists For example, Airbus will tell an air- bought Airbus planes, Russian export- at multiple lobbying firms are reg- line that the plane it buys will be ers were given greater access in the Eu- istered to represent Airbus and EADS worth $60 million in 10 years. The mar- ropean market, and Russia was given in Washington, DC. Their lobbyists in- ket only pays $40 million. Airbus will use of the EU space launchsite. clude the current chairman of the Re- pay the difference to the airline. It is a It happened in Thailand as well. Fol- publican National Committee, former very attractive incentive for an airline, lowing a 2002 Thai Airlines Airbus pur- Members of Congress, former staffers but it is also unfair because it allows chase, Airbus lobbied the EU to lower to a previous Senate majority leader, a one company to completely distort the trade barriers to Thai chicken and previous House minority leader, and marketplace. These Airbus guarantees shrimp exports. others heavily involved in congres- allow the company to use their govern- Time and again, Airbus links their sional campaigns. Lobbyists with ties ment subsidies to buy market share. plane purchases to other trade deals. to the administration are also at work If this happened in another field such But Airbus is not content to just use for Airbus, including former officials at as cars, this Congress would be up in trade rewards. It also threatens to pun- the White House, Defense Department, arms. Imagine going to a Toyota dealer ish other countries unless they buy Commerce Department, Transportation and a salesman makes you a guarantee Airbus planes. Let me share a couple Department, Export-Import Bank, that in 10 years your car will be worth examples that first involves Pakistan. OPIC, and NASA. a certain amount of money far above In April 2003, Pakistan media re- Airbus and EADS have also hired its actual value. As a car buyer, you ported that EU retaliated in textile ne- prominent Americans to help them love that dealer. Airlines like Airbus’s gotiations against Pakistan following gain entry into the U.S. markets and guarantee. But if a foreign carmaker the Boeing 777 purchase. Airbus is not to put an American face on this Euro- did that, every representative from competing on the merits of its product. pean operation. Instead, it uses threats of retaliation U.S. carmakers, suppliers, and dealers Ralph Crosby is the CEO of EADS would be here in Congress demanding to pressure countries into going along. Another example of these threats and North America. Mr. Crosby was a long- fairness. time senior executive with the The same abuse is taking place today pressure tactics involves Taiwan. Dur- Northrup Grumman Corporation. in the aircraft market, but Congress is ing an aggressive 2002 competition be- EADS said Crosby’s hiring was ‘‘to en- not responding. That is why I am ex- tween Boeing and Airbus for an impor- hance the access of EADS to all ele- posing all of these techniques. tant Taiwan sale, the Government of Let me share two specific cases France threatened to terminate its sat- ments of the U.S. defense and aero- where Airbus used these value guaran- ellite cooperation with Taiwan if Air- space marketplace.’’ tees to distort the market and take bus was turned away. T. A. McArtor is the chairman of Air- sales away from American workers. Let me share a final example of these bus North America. He previously In 2003, Boeing and Airbus competed trade tactics, and it is one of which I served as the administrator of the Fed- to sell planes to Iberia Airlines of have personal knowledge. eral Aviation Administration. David Spain. At the last minute, Airbus European governments have linked Oliver is the executive vice president stepped in and undercut Boeing’s price. Airbus purchases to EU accession. I and chief operating officer of EADS It then offered Iberia a residual value saw this myself on a trip to Central North America. Oliver was previously guarantee on the future value of the Europe that I took in 1998 when I vis- the principal Under Secretary of De- aircraft. Airbus got the deal. An offi- ited Poland, Hungary, and the Czech fense for Acquisition, Technology, and cial with Iberia Airlines said Airbus Republic. One Central European airline Logistics. With this team of lobbyists got the deal because of the ‘‘extraor- told me pointblank that they are under and former U.S. Government officials dinary conditions’’ it offered at the pressure from the Europeans to buy in place, Airbus and EADS now want last minute. Once again, because of its Airbus because it would ultimately policymakers and the public to believe government support, Airbus was able make EU accession easier. that Airbus is actually an American to do things that a private for-profit This is just a sampling of the very company. company could not. aggressive competitor that my con- Here is what Airbus and EADS say in Airbus used that same market-dis- stituents and our aerospace workers Washington, DC, and all over the coun- torting approach with easyJet, a low- confront every day in the global mar- try in speeches, in paid advertisements, cost carrier that had a fleet of all Boe- ket. I note that this is just the tip of and in other official materials: They ing aircraft. In 2002, easyJet agreed to the iceberg. I have been briefed by say Airbus has created and supports buy 120 planes from Airbus and take some of our Government intelligence 120,000 jobs in our country. They say options on an additional 120 planes. agencies, and the examples I shared are Airbus subcontracts with as many as Airbus offered a significant price dis- just a very small part of what is hap- 800 U.S. firms in the United States, and count and a residual-value guarantee pening. I encourage all of my col- they say Airbus now does $6 billion in to win that deal. leagues to be briefed by the appropriate business annually in the United States. These are just a few examples of how agencies because it will shock you, just For more than a year, I have called Airbus, backed by European govern- as it shocked me. Arrange a briefing on Airbus to justify and document ments, is taking jobs away from Amer- and find out for yourself. these assertions, and they have re- ican workers through market-dis- I now want to turn to my fourth fused. Last year, I wrote to the Com- torting tactics. But it is not just the point. Airbus and EADS are now en- merce Department and asked them to bribes, corruption, the landing slots, gaged in a slick campaign to market investigate these claims, and I want to the discounts, and the value guaran- themselves as an American company to share the results.

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.147 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4927 On jobs, Airbus used to claim they The truth is, Airbus and EADS are nancial arrangement. First, EADS lacks rel- created 100,000 U.S. jobs. The U.S. Com- exporting U.S. jobs, suppliers, and dol- evant tanker experience and needs to de- merce Department could not find any lars to Europe as fast as they can. It is velop an air refueling boom and operator sta- justification for that claim. Commerce clear to me that Airbus is making tion, making their approach a significantly higher risk. asked Airbus to document these phony claims about its impact on the Second, a comparison of the net present claims. Airbus refused. Now Airbus is U.S. economy, hiring lobbyists and values of the aircraft recommended by Boe- inflating its bogus figures, saying it is mounting a PR campaign so it can po- ing and EADS establishes Boeing as the pre- responsible for 120,000 American jobs. sition itself to steal the tanker con- ferred financial option. Do my colleagues know what figure tract from American workers. Third, the size difference of the EADS’ pro- the Commerce Department came up I will turn to that tanker contract posed KC–330 results in an 81 percent larger with? Five hundred. Not 120,000, not and some disturbing developments. As ground footprint compared to the KC–135E it 100,000, but 500 jobs is what the Com- all of my colleagues know, I have been would replace, whereas the Boeing 767 is only involved in the tanker contract from 29 percent larger. merce Department came up with. The KC–330 increase in size does not bring The truth is, Airbus in large part is the very beginning. I have been proud with it a commensurate increase in available responsible for the economic shock, to work with many other Senators on air refueling offload. consolidation, and dislocation that has it. There is no question our Air Force Finally, the EADS aircraft would demand hurt American aerospace workers over needs new air refueling tankers. There a greater infrastructure investment and dra- the last decade. Thousands of small is also no question that Airbus is try- matically limits the aircraft’s ability to op- businesses have gone out of business. ing to reopen a competition it lost 2 erate effectively in the worldwide deploy- Consolidation in the industry has years ago. ment. brought enormous change, and hun- I want to make sure American pol- Those are the detailed technical rea- dreds of thousands of jobs have been icymakers understand how Europe is sons why Airbus lost the tanker con- lost throughout the industry. Let us hurting American aerospace workers tract. The Air Force essentially said set the record straight. Airbus does not and what Airbus has been doing behind that EADS and Airbus did not have a create American jobs; it kills them. the scenes to undermine the Boeing real tanker or tanker technology; their Airbus also makes false claims about tanker contract. If we allow Airbus to proposed aircraft was so large it re- the number of U.S. suppliers it uses. steal the tanker contract through its quired a larger footprint on the ground Airbus says it contracts with 800 U.S. phony claims, we will be helping Eu- and a significant infrastructure invest- firms. The Commerce Department, rope dismantle our domestic aerospace ment. after looking into this request, can industry and asking U.S. taxpayers to Their proposal was ‘‘significantly only come up with 250 firms, not 800. foot that bill. higher risk,’’ for the Air Force, and, After that, Airbus did something kind No one doubts the need for new tank- their proposed aircraft couldn’t operate of fishy. They revised their supplier ers. Airborne refueling tankers allow worldwide—limiting our ability to figure down from 800 firms to 300 firms, our country to project military force project force. but they increased the alleged value of around the globe. Most of our tankers Finally, the Air Force said that Boe- its contracts from $5 billion up to $6 are more than 40 years old. One-third ing was the ‘‘preferred financial op- billion annually. We just cannot trust of the fleet is unfit to fly at any given tion,’’ meaning the Boeing proposal time due to mechanical failure. Each Airbus’ funny numbers. was the cheaper alternative for tax- When it comes to suppliers, Airbus plane requires a full year of mainte- payers. deserves no credit for using U.S. sup- nance for every 4 years spent on duty. So in March 2002, Airbus lost. For There is no question they must be re- pliers, and that is because commercial most people, it would be over, but not placed with new tankers. The only aerospace—the airlines, not the manu- for a company like Airbus. Airbus con- question is, who is going to build these facturers—select many of the suppliers. tinued its campaign to delay and if pos- tankers—American workers or French Clearly Airbus does not deserve credit sible, kill the KC–767 tanker deal. Air- workers? If we give this contract to the for the choices that its customers bus lobbyists have continued to work French, we will be rewarding Europe’s make. So again, Airbus does not help on and off of Capitol Hill with tanker trade-distorting behavior, putting opponents. American firms; it hurts them. Americans out of work, and helping Finally, Airbus claims it does $6 bil- Airbus lobbyists worked to convince Europe dismantle our aerospace indus- lion in business in the United States Members of Congress that Airbus try. should be recognized as an American each year. They say that every chance Congress and the administration Company. Airbus even used the United they get, but here is something they do have wrestled with a variety of issues States Chamber of Commerce to spon- not say. EADS alone has a $6 billion having to do with the tanker replace- trade surplus with the United States. I ment program adopted by Congress and sor trips to Paris and Toulouse, France am not talking about another country; signed into law by the President 2 for Congressional staffers. I am talking about one company run- years ago. We are still trying to sort Airbus tried to derail the lease of ning a $6 billion trade surplus with the through all of the issues. It has been a four 737 aircraft to the Air Force for United States. unique and, frankly, at times a very executive transport at the General Ac- Airbus and EADS are not helping frustrating process. counting Office. Airbus didn’t care America’s aerospace industry. They are We are all aware of the impropriety about the four 737’s. They were testing destroying it. Already, 700,000 Amer- of a few Boeing employees surrounding the system to see if they could use a ican workers have lost their jobs while this deal. There is no excuse for their bid protest at the GAO to block the Europe keeps adding new workers to behavior. I will not defend it. I will not tanker lease. The GAO dismissed the the Airbus payroll. It is time for the excuse it. They are being investigated Airbus bid protest. Senate, for our Government, and for and I expect they will be held account- As the tanker deal was scrutinized, the American people to take a real able to the fullest extent of the law. criticized and delayed, Airbus was reg- close look at Airbus’ real impact on But the actions of a few do not lessen ularly available to offer its tanker the United States. the merits of a tanker deal. The Air again to U.S. taxpayers and the Air The truth is that Airbus is a horrible Force needs this equipment, and Boe- Force. During the delay, Airbus spent investment for our country. According ing is the best company to provide it. $90 million to develop a real tanker. to EADS’ documents, North America Let us remember that the Air Force Now they are working as hard as they provides EADS with 35 percent of its looked at a proposal from Airbus in can to reopen the competition they revenues, about 10 billion euros, but 2002 and rejected it on the merits. In lost. North American workers only make up fact, the Air Force gave very detailed For Airbus, the tanker competition 2 percent of the company’s jobs—just reasons why the Airbus proposal was is not over. We see that in Airbus ma- 2,400 jobs out of 107,000 worldwide. We inferior. Let me quote from the Air terials—that are riddled with ref- give them a third of their business. Force statement on March 28, 2002: erences to the tanker program. Again What do we get in return? Two percent The EADS offering presents a higher risk and again, EADS and Airbus say they of their jobs. That is a bad deal. technical approach and a less preferred fi- are prepared to bid for the tankers.

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\CR\FM\G05MY6.149 S05PT1 S4928 CONGRESSIONAL RECORD — SENATE May 5, 2004 EADS even went to Wall Street earlier As you know, the average age of our exist- North Korea—as potentially representing this year to pitch the company to U.S. ing tanker fleet is 42 years and one-third of major opportunities, Noel Forgeard, CEO, in- financial interests. our tanker fleet is unfit to fly at any given dicated yesterday. As part of their pitch to U.S. inves- time due to mechanical and operational fail- The same article quotes an Airbus tors, EADS says they still may com- ure. KC–135’s spend 400 days in major depot Vice President as saying: maintenance for every five years of service. pete for tankers in the U.S. Any unnecessary delay in replacing our We might have been looking to place a Would they dare to say these things aging tanker fleet puts in jeopardy our abil- total of 180 aircraft—100 with Iran, 50 with if they weren’t hard at work to give ity to meet critical air refueling and power Iraq and 30 with Libya—with at least 140–150 EADS another opportunity at tankers projection requirements. orders feeding through. funded by U.S. taxpayers? The Air Force’s proposed tanker lease pro- It was widely reported that Airbus This week, EADS Joint Chief Execu- gram is one of the most closely scrutinized was in close contact with Iraqi airways tive Rainer Hertrich was quoted by programs ever undertaken by the Depart- during the period of UN sanctions fol- Reuters saying: ment of Defense. I support the DOD Inspec- lowing the 1991 Persian Gulf War. Ap- tor General’s current efforts to provide an parently, Airbus was in discussion with I see a realistic chance that the issue will independent assessment of various aspects of be taken up again by the administration this program. However, barring evidence of the state run—Saddam Hussein run— after the election. wrongdoing, it is critical that we proceed Iraqi airways to sell 20 Airbus aircraft. Mr. President, over the past few without delay to implement the Air Force It was also widely reported that per- months, I have been very concerned tanker lease program and begin production sonnel from Iraqi Airways were taken about what Airbus has been doing. In of those aircraft here in the United States. to Jordan and Malaysia for three late March, I sent a letter to Secretary I know how committed you are to replac- month training courses on Airbus of Defense Donald Rumsfeld detailing ing our aging tanker fleet, and I know that equipment. Airbus still carries a five- meeting the demands of the critics of this my concerns with Airbus’s campaign of plan has taken a toll. But you and I both plane deal with Saddam Hussein on its distortion and misinformation to kill know that many of these critics will not be order books and has said the deal is the tanker program. satisfied until they stop this contract with still valid. While American troops are I ask unanimous consent that my let- the only American airplane manufacturer rebuilding Iraq’s infrastructure and ter to Secretary Rumsfeld printed in capable of producing a new generation tank- trying to build a peaceful, democratic the RECORD. er. We cannot allow that to happen. future for the Iraqi people, Airbus There being no objection, the mate- Sincerely, wants the new Iraqi government to rial was ordered to be printed in the PATTY MURRAY, honor Saddam Hussein’s plane deal. U.S. Senator. RECORD, as follows: To me, for so many reasons, EADS is U.S. SENATE Mrs. MURRAY. Let me read one pas- not a ‘‘strong U.S. citizen.’’ Washington, DC, March 22, 2004. sage from my letter. I wrote: Here is another claim from Mr. Cros- Hon. DONALD RUMSFELD, Airbus’ corporate behavior on this matter by’s letter that I must refute. He Secretary, Department of Defense, cannot be tolerated by the U.S. government. wrote: The Pentagon, Washington, DC Its actions are further delaying our ability Should decisions by the U.S. government DEAR SECRETARY RUMSFELD: I am deeply to meet a key military requirement, and if concerned about recent comments by Sec- successful, will result in the outsourcing of open a competitive procurement of aerial re- retary James Roche regarding re-opening thousands of American manufacturing jobs fueling tankers, EADS North America will competition to supply aerial refueling tank- to a foreign corporation that is unfairly sub- respond. We will offer a superior, cost-effective aer- ers to the U.S. Air Force. sidized by European governments and that The Air Force has already conducted a unfairly competes with the only U.S. aircraft ial refueling solution that will be completed careful and open competition to build the re- manufacturer. by American workers, on American soil, in quired tankers. As Secretary Roche outlined Such an outcome represents ill-conceived the United States providing the Department in his testimony to the Senate Commerce public policy, and will also unfairly punish of Defense and the Air Force the opportunity Committee in September, Boeing won that the nearly 30,000 workers who will be em- to select the product that provides the best competition based on the superiority of its ployed should the Air Force tanker lease capabilities to the U.S. armed forces. design, technology, delivery schedule, and program proceed with a domestic manufac- Let’s remember that the Air Force overall risk reduction plan. Although Airbus turer, as currently planned. already rejected Airbus’s tanker pro- demanded that the General Accounting Of- I have not received a reply from Sec- posal for the reasons I mentioned. The fice review that decision, the review was dis- retary Rumsfeld, but I did receive a Air Force said Boeing was the cheaper missed almost immediately as lacking merit. option, and it deemed the A330 a ‘‘sig- Rather than honorably accept the competi- shocking reply from someone else. Two tion’s outcome, Airbus has resorted to a days after writing to Secretary Rums- nificantly higher risk.’’ But in Mr. campaign of distortion and half-truths in an feld, I received a letter from Mr. Ralph Crosby’s world, these failures somehow effort to kill the proposed Air Force tanker Crosby, the Chairman and CEO of translate into what he calls a ‘‘supe- lease program. EADS North America. rior, cost-effective aerial refueling so- I have fully supported thorough reviews of So I sent a letter to Secretary Rums- lution.’’ all aspects of this program, and will continue feld, and I got a reply from the head of There is another disturbing claim to support constructive modifications based Airbus. There’s something very fishy hidden in Mr. Crosby’s statement that on recommendations from those reviews. should set off alarm bells. He said that However, I will not tolerate Airbus’s at- about that. It got even more out- tempts to undermine the program itself by rageous as I read Mr. Crosby’s letter. Airbus tankers would be ‘‘completed’’ forcing the government to revisit careful de- Mr. Crosby stated that EADS is com- in the U.S. terminations about specific issues that have mitted to being a ‘‘strong U.S. cit- Mr. Crosby says the A330 refueling already been made, reviewed, re-reviewed, izen,’’ and he repeated the same statis- tanker for the Air Force would be com- and validated by responsible government en- tics that EADS refuses to verify to ei- pleted by American workers on Amer- tities. The outcome of the initial tanker ther me or to the Department of Com- ican soil. Translated that means tank- competition is one such issue that has been merce. I want to refute a few claims in ers will be built in Europe by European clearly and conclusively settled. workers at U.S. taxpayer expense and Airbus’s corporate behavior on this matter Mr. Crosby’s unsolicited letter. cannot be tolerated by the U.S. government. First, Mr. Crosby had the gall to sug- then American workers can install the Its actions are further delaying our ability gest that EADS is a ‘‘strong U.S. cit- final components. Once again, EADS to meet a key military requirement, and if izen.’’ Their history tells a much dif- and Airbus are trying to use their mar- successful, will result in the outsourcing of ferent story. Airbus and EADS have ket-distorting tactics to shift aero- thousands of American manufacturing jobs been willing suppliers to nations that space jobs to Europe to the detriment to a foreign corporation that is unfairly sub- the United States considers either of American workers. sidized by European governments and that rogue states or state sponsors of ter- I have a simple reply to the Airbus’s unfairly competes with the only U.S. aircraft campaign to build tankers in Europe manufacturer. Such an outcome represents rorism. ill-conceived public policy, and will also un- According to one news article dating paid for by U.S. taxpayers. fairly punish the nearly 30,000 workers who back to 2001: No thank you. No thanks. Never. will be employed should the Air Force tank- The Airbus Industrie Consortium views I wrote back to Mr. Crosby, and I ask er lease program proceed with a domestic those countries against which US or UN unanimous consent that my letter to manufacturer, as currently planned. sanctions are in place—Libya, Iran, Iraq and him be printed in the RECORD.

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.071 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — SENATE S4929 There being no objection, the mate- The Department of Commerce confirmed my commercial aerospace industry in this rial was ordered to be printed in the suspicions and almost entirely discredited country, and particularly in Wash- RECORD, as follows: Airbus’ claims. To date, despite vows to do ington State, I have real questions so, Airbus has not provided the Department U.S. SENATE, of Commerce any additional credible infor- about the appropriateness of U.S. tax- Washington, DC, April 6, 2004. mation on its contributions to U.S. workers payer dollars going to strengthen Eu- RALPH D. CROSBY, JR., and the U.S. economy. The truth is Airbus rope’s competitive position and hurting EADS North America, continues to market itself to the Congress American aerospace workers. Washington, DC. and the American people with assertions I have talked in great detail tonight DEAR MR. CROSBY: Thank you for your let- that appear to be untrue and dishonest. You about why EADS and Airbus are ter of March 24, 2004. I appreciate your at- are aware of my concerns, as well as those threats to the U.S. aerospace leader- tempt to clarify your position. Unfortu- raised by the Department of Commerce, and nately, the vague and ambiguous language in ship and to American workers. Europe I encourage you to provide justification for has a plan to take over global leader- your letter has served to underscore my ear- Airbus’ direct claims on jobs, suppliers and lier concerns about Airbus’s efforts to under- economic contribution. ship in aerospace. Europe views aero- mine the Air Force Tanker Modernization Finally, to set the record straight, Airbus space as a social program, a jobs pro- program. Additionally, I continue to seri- did file a bid protest challenge regarding the gram for the benefit of Europeans. Air- ously question Airbus’s unsubstantiated leasing provisions contained in the FY’03 bus and EADS are the prime example claims regarding its employment and eco- DoD Appropriations Act (PL 107–248). The of Europe’s vision for its citizen and its nomic impact in the United States. Air Force executed the lease of four commer- Your letter outlines, as you have stated aerospace industry. cial Boeing 737 special mission aircraft long There are real consequences for U.S. publicly on several occasions, Airbus’s desire before the Air Force attempted to proceed to compete for the Air Force Tanker Mod- with the KC–767 program. The Airbus bid national security in what happens ernization program. Your continued insist- protest was specific to the four 737 aircraft here. We have to retain our supplier ence on Airbus’s qualifications to compete in but I must conclude that the real Airbus tar- base, our skilled workforce, and our such a contest seems to belie the fact that get was the lease program itself and ulti- technological advantages to project the tanker competition already took place in mately the Air Force’s ability to move for- force and to defend our Nation. 2002—a competition that Boeing won and ward with a 100 plane KC–767 lease with the We have a decision to make in Wash- Airbus lost based on each company’s pro- Boeing company. The Airbus bid protest was ington, DC. U.S. policymakers on be- posed design, technology, delivery schedule, dismissed by the General Accounting Office. half of the American people have to de- and overall risk reduction plan. Again, thank you for your response to my As you know, the Air Force informed letter. I look forward to hearing from you. cide whether we want to sit idly by as EADS on April 2, 2002 that its platform was Sincerely, Europe hopes we continue to do or deemed high-risk for the Air Force’s oper- PATTY MURRAY, whether we want to commit ourselves ational requirements for the refueling tank- United States Senator. to a future in global aerospace. ers. I remain puzzled by Airbus’s continued Mrs. MURRAY. I asked Mr. Crosby to I conclude by talking briefly about a effort to re-open the tanker competition two few things we must do to keep Amer- years after its final conclusion. again justify the claims regarding the To my knowledge, the Airbus 2002 proposal EADS and Airbus contributions to this ican workers at the forefront of com- has never been made public. Providing the country on jobs, suppliers and eco- mercial aerospace. Let me offer three public with a clear picture of Airbus’s capa- nomic contributions. For more than a specific suggestions. bilities at the time of the competition would year, his company has refused to an- First of all, we should hold Europe help to address concerns refuting the com- swer my questions and the requests accountable for its market-distorting petitions outcome. from the Department of Commerce. I actions. We have to look seriously at a I continue to believe that Airbus has en- asked Mr. Crosby to make public the trade case to challenge Europe’s failure gaged in a campaign of distortion and half- to adhere to its treaty obligations. We truths to discredit the Air Force, Boeing and EADS 2002 tanker proposal submitted the KC–767 lease program. Your letter did to the Air Force. have to recognize the future of aero- not dispel my concern that Airbus is engaged We know the Air Force said the pro- space is larger than a trade case or a in a campaign to undermine the tanker lease posal was high risk, more expensive Boeing dispute with Airbus. Only a de- program. I would welcome a full accounting than Boeing, and could limit U.S. force termined Federal commitment to aero- of Airbus’s continued involvement with the projection worldwide. For 2 years, space will assure our children and our tanker lease program on par with the var- EADS and Airbus have been able to ac- grandchildren opportunity to compete ious information subpoenaed from both the cess Boeing proprietary information for the high-skill, high-wage aerospace Defense Department and Boeing. A full ac- about its technology and pricing, that jobs of the future. counting of Airbus’s lobbying activities in- Second, we should not reward EADS cluding support given to tanker opponents came available during the tanker pro- would provide the public with a full sense of gram review. and Airbus for their market-distorting, this debate. Now, after spending $90 million to de- job-killing behavior. Airbus wants U.S. As enlightening as the examination of the velop a tanker it previously did not policymakers and the public to buy its facts may be, I do not think Airbus is willing have, Airbus wants to reopen the tank- campaign that it is a good U.S. citizen. to be as transparent in detailing its commu- er contract after it has already seen all That is baloney. They are trying to nications with the Congress, the Administra- of Boeing’s cards. Airbus has learned mask the real harm they are posing to tion, and others outside of government as an awful lot about Boeing and tankers American workers. the Boeing Company has been. From my van- Europe wants to further weaken U.S. tage point, Airbus’s involvement in the cam- and it has used that new technology to paign to discredit Boeing and the tanker pro- best Boeing in a recent tanker com- aerospace competitors by accessing gram could not be clearer. petition for Australia. Mr. Crosby will U.S. taxpayer-funded defense programs. I am also troubled by your continued as- not talk about his 2002 proposal. He And, most offensively, Airbus is work- sertions regarding Airbus’s economic and wants to compete with Boeing based on ing to undermine both the Air Force employment presence in the U.S. Your letter everything Airbus has learned about and the Boeing Company to kill the states that Airbus ‘‘supports’’ a certain num- Boeing over 2 years and an additional tanker program so it may ultimately ber of U.S. jobs, and that an Airbus tanker $90 million investment in tankers. outsource tanker manufacturing to Eu- would be ‘‘completed’’ by U.S. workers. In rope. my view, an Airbus tanker ‘‘completed’’ by Finally, I asked Mr. Crosby to pro- U.S. workers is a tanker manufactured in vide a full accounting of Airbus’ in- It is long past time to shine a very Europe with the overwhelming number of volvement with the tanker lease pro- bright light on Airbus and its lobbying jobs also created in Europe. gram on par with the various informa- efforts in Washington, DC. If we reward I would appreciate any solid, verifiable, tion subpoenaed from both the Depart- their underhanded methods, if we let and straight-forward information detailing ment of Defense and Boeing. them steal the tanker contract away the number of U.S. workers and vendors that I also asked Mr. Crosby to provide a from our American workers, the Amer- Airbus directly employs, as well as specific full accounting of Airbus’ lobbying ac- ican taxpayers will be paying Europe direct employment and U.S. content relating to help finish off our aerospace indus- to manufacturing a national Airbus tanker tivities, including support given to aircraft. tanker opponents. I await a reply from try. As you know, I earlier challenged Airbus’ Mr. Crosby. I don’t see how we can let a sub- many rhetorical claims about jobs, suppliers Let me say that given the tremen- sidized foreign company use our tax and economic contributions in this country. dous damage Airbus has done to the dollars to put Americans out of work.

VerDate May 04 2004 03:37 May 06, 2004 Jkt 029060 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\CR\FM\A05MY6.072 S05PT1 S4930 CONGRESSIONAL RECORD — SENATE May 5, 2004 But if they get away with their lob- have a fighting chance to lead the Joseph E. Brennan, of Maine, to be a Fed- bying, their bogus claims, and their PR world in aerospace. I know if we focus eral Maritime Commissioner for the term ex- campaign, we will have bought Airbus on the challenge before us, our country piring June 30, 2008. a sledgehammer to whack away at our will recover from this, just as Seattle DEPARTMENT OF STATE aerospace industry. That is outrageous. recovered from the downturn in the Paul V. Applegarth, of Connecticut, to be We cannot let it happen. We need to 1970s. We have a bright future ahead if Chief Executive Officer, Millennium Chal- hold Europe accountable for what it we take the steps I have outlined and lenge Corporation. has done and we need to make sure Air- hold on to our leadership in commer- f bus is not rewarded for its bad actions. cial aerospace. Finally, we should act boldly to em- Aviation was born in America 100 LEGISLATIVE SESSION brace many of the recommendations years ago. Let’s make sure Americans The PRESIDING OFFICER. Under from the Commission on the Future of are leading it 100 years from now. the previous order the Senate will re- the United States Aerospace Industry. I yield the floor. turn to legislative session. The administration is acting on a number of fronts. Congress must do f f more, as well. As a first step, Congress EXECUTIVE SESSION ADJOURNMENT UNTIL 9:30 A.M. should create a Joint Committee on TOMORROW Aerospace. I intend to introduce legis- The PRESIDING OFFICER. Under lation to create that joint committee. EXECUTIVE CALENDAR It will help Congress recognize our fu- the previous order, the Senate stands ture is very much tied to aerospace and Mrs. MURRAY. I ask unanimous con- in adjournment until 9:30 a.m., Thurs- commercial aerospace, in particular. A sent the Senate immediately proceed day, May 6, 2004. dedicated group of House and Senate to executive session to consider the fol- Thereupon, the Senate, at 8:18 p.m., Members with a targeted agenda can lowing nominations on today’s Execu- adjourned until Thursday, May 6, 2004, help the administration and the coun- tive Calendar, Calendar Nos. 619, 620 at 9:30 a.m. and 657. try recommit itself to the next century f of global aerospace leadership. I further ask unanimous consent that I have sounded the alarm. No Mem- the nominations be confirmed, the mo- CONFIRMATIONS ber of Congress can claim they did not tion to reconsider be laid upon the Executive nominations confirmed by know what European governments and table, the President be immediately the Senate May 5, 2004: notified of the Senate’s action, and the Airbus are doing to American workers. FEDERAL MARITIME COMMISSION Senate then return to legislative ses- This is a critical industry. They are A. PAUL ANDERSON, OF FLORIDA, TO BE A FEDERAL jobs worth fighting for. sion. MARITIME COMMISSIONER FOR THE TERM EXPIRING I am not willing to surrender our The PRESIDING OFFICER. Without JUNE 30, 2007. JOSEPH E. BRENNAN, OF MAINE, TO BE A FEDERAL leadership in the second century of objection, it is so ordered. MARITIME COMMISSIONER FOR THE TERM EXPIRING flight. There is a battle for the future The nominations considered and con- JUNE 30, 2008. of the aerospace industry. Europe is firmed en bloc are as follows: DEPARTMENT OF STATE putting its full support, subsidies, and NOMINATIONS PAUL V. APPLEGARTH, OF CONNECTICUT, TO BE CHIEF EXECUTIVE OFFICER, MILLENNIUM CHALLENGE COR- power behind Airbus, and it is working. FEDERAL MARITIME COMMISSION PORATION. We have to get off the sidelines. A. Paul Anderson, of Florida, to be a Fed- THE ABOVE NOMINATIONS WERE APPROVED SUBJECT I am committed to working in the TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- eral Maritime Commissioner for the term ex- QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY Senate to make sure American workers piring June 30, 2007. CONSTITUTED COMMITTEE OF THE SENATE.

VerDate May 04 2004 02:35 May 06, 2004 Jkt 029060 PO 00000 Frm 00078 Fmt 4624 Sfmt 9801 E:\CR\FM\G05MY6.155 S05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E741 EXTENSIONS OF REMARKS

PAYING TRIBUTE TO DELFINO Center opened its doors in October 2002 and issue in the context of Cinco de Mayo. I want GALLEGOS has continued a tradition of excellence in pro- to pay tribute to President Fox and the Mexi- viding for the senior citizens. can government for their principled stand on HON. SCOTT McINNIS Ongoing programs and activities are per- human rights. haps one of the most important aspects of the OF COLORADO I find it absolutely appalling that one year Downingtown Area Senior Center. The Center IN THE HOUSE OF REPRESENTATIVES after 75 Cubans were tried in kangaroo courts participates in: an AARP driving class, arts in Havana, sentenced to prison terms ranging Wednesday, May 5, 2004 and crafts, audiologist visits, ballroom dancing, from 6 to 28 years, and imprisoned in rat-in- Mr. MCINNIS. Mr. Speaker, I would like to blood pressure/weight checks, exercise class- fested, dank cells, Castro’s totalitarian ma- take this opportunity to pay tribute to Delfino es, consumer awareness classes, historical chine is still trying to crack the backs of Gallegos of Capulin, Colorado. Mr. Gallegos is presentations, income tax preparation, golf one of only a handful of living World War I vet- tournaments, and volunteer opportunities. Cuba’s internal opposition by continuing to erans, and was recently honored for his serv- These programs indeed foster and improve lock up some of its most renown leaders. ice at the American Legion’s 85th birthday the quality of life of all participating seniors. These 75 individuals are suffering indescrib- celebration at the Dickey-Springer Post 113, In addition, the Downingtown Area Senior able horrors at the hands of Cuban authorities an organization founded by World War I vet- Center has created a program for seniors simply because they sought to express their erans. called ‘‘Fit and Fun.’’ The Fit and Fun program disagreement with Castro’s government, pro- Mr. Gallegos was born December 28 1903 concentrates on health and wellness, while it vide an independent media voice, stock their in Costilla, New Mexico. He answered his na- also supplies its members with timely informa- shelves with banned literature, represent the tion’s call to service, joining the military at the tion and support to increase the likelihood of interests of independent labor, and otherwise age of 17, and was sent to Camp Sherman, a longer, happier, and more fulfilling life. Sen- improve the lot of their fellow citizens. In other Ohio for basic training. Towards the end of the iors participate in ‘‘body recall’’ to improve words, these soldiers of freedom were thrown First World War, his duties included guarding muscle tone, line-dancing for aerobic activity, behind bars because they practiced their pro- prisoners from Germany and other countries. and yoga sessions to balance the mind and fessions or attempted to exert their political Upon his honorable discharge from the service body. Weekly seminars are also given on rights and civil liberties. in 1923, Delfino met and married his wife Medicare supplement programs, chronic dis- Deliria, and moved to Capulin where he eases management, and home health care. Recently, Chairman HYDE and I led our worked as a potato farmer and sheepherder. These seminars are critical for seniors if they Committee’s consideration of H. Res. 563, Mr. Speaker, I am honored to pay tribute to are to continue to live healthy and active lives. which was sponsored by my good friends and Delfino Gallegos before this body of Congress As of June 2003, 2,150 people participated in colleagues, ILEANA ROS-LEHTINEN of Florida and this nation. The freedoms we enjoy today the Fit and Fun program. and BOB MENENDEZ of New Jersey, among are a direct result of the sacrifices made by Mr. Speaker, I ask that my colleagues join others. H. Res. 563 recognized the reprehen- veterans throughout our nation. He is a great me today in recognizing the Downingtown sible state of human rights in Cuba. It also patriot and treasure to his community and vet- Area Senior Center for its dedication to the called upon the international community to erans across Colorado. I sincerely thank him health and well-being of senior citizens in the pass a resolution denouncing Cuba’s human for his service. Downingtown community and for their service rights record at this year’s session of the f to the Commonwealth of Pennsylvania. United Nations Commission on Human Rights. f Two weeks ago, the Commission passed a RECOGNIZING DOWNINGTOWN resolution, sponsored by Honduras, which AREA SENIOR CENTER CELEBRATING CINCO DE MAYO condemned the imprisonment of the 75 dis- AND MEXICO’S CONTINUED sidents and urged Cuba to allow a special rep- HON. JIM GERLACH STRUGGLE FOR FREEDOM AND JUSTICE IN THE HEMISPHERE resentative of the Commission to visit Cuba OF PENNSYLVANIA and report on the state of human rights in the IN THE HOUSE OF REPRESENTATIVES island country. Havana so far has resound- Wednesday, May 5, 2004 HON. TOM LANTOS ingly rejected the request of the international OF CALIFORNIA community and reportedly refused to accept Mr. GERLACH. Mr. Speaker, I rise today to IN THE HOUSE OF REPRESENTATIVES the Commission’s special representative. recognize the Downingtown Area Senior Cen- ter for its 30 years of dedicated service to the Wednesday, May 5, 2004 Mr. Speaker, Mexico joined the United senior citizens of the Downingtown, Pennsyl- Mr. LANTOS. Mr. Speaker, I rise today in States and twenty other countries in voting for vania area. celebration of Cinco de Mayo and in recogni- this resolution deploring human rights violation The Downingtown Area Senior Center has tion of the many contributions that Mexicans in Cuba. In the weeks that have followed, existed since 1974 to serve the nutritional, so- and Mexican-Americans have made and con- Castro has vilified President Fox and his Ad- cial, and educational needs of the people tinue to make in my congressional district in ministration for the courageous stand that aged 60 and older and to enhance their dig- California and across our nation. Mexico took in Geneva as a defender of free- nity, independence, and encouraging involve- The Cinco de Mayo holiday commemorates dom in the Hemisphere—a stand similar to ment in the community. the May 5, 1862 victory of an ill-equipped and General Zaragoza at Puebla. The Senior Center began as a Meals To- vastly outnumbered Mexican army, under the Mr. Speaker, although we in this House and gether program with four seniors from the command of General Ignacio Zaragoza, over across the globe disagree on how best to Downingtown United Methodist Church. The Napoleon’s army at the Battle of Puebla. Al- bring about change in Cuba, we stand to- Downingtown Area Senior Center rented though Napoleon eventually installed his gether in solidarity with those who endure tor- space from the Church until April, 2002. In Au- brother as regent over Mexico, the triumph of ture, incarceration, and deprivation because gust of that same year, the Downingtown Area the Mexican people over the French in this they refuse to submit to the boot of an authori- Senior Center moved into the Ashbridge Com- battle has come to symbolize the fight for free- tarian regime. mons. In this location, the Senior Center was dom and justice in the Hemisphere—a fight responsible to continue and improve services that many dissidents in Cuba continue to I am proud to call my friends in neighboring to seniors. They did so by outfitting a kitchen, wage intensely against Castro’s brutal regime. Mexico our allies in this unfortunately never- arranging a telephone system, networking a Mr. Speaker, the recent diplomatic furor in- ending struggle against tyranny. Amigos, computer system, and creating a new living volving our friend and ally Mexico and the re- desde cinco de mayo de 1862 hasta cinco de space. The new Downingtown Area Senior gime of Fidel Castro in Cuba is an appropriate mayo de 2004, la lucha continu´a!

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00001 Fmt 0626 Sfmt 0634 E:\CR\FM\K05MY8.003 E05PT1 E742 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 TRIBUTE TO U.S. ARMY PFC JER- ered ‘‘unbanked.’’ Over one-third of Hispanic contributions to Glenwood Springs and the EMY RICARDO EWING OF MIAMI, families do not have bank accounts. Despite State of Colorado. FLORIDA these figures, fewer and fewer States include In 1950, Jeannine moved to Colorado and personal finance in education standards for began her career in television and radio. She HON. KENDRICK B. MEEK students in kindergarten through high school. served as the Butternut Weather Girl for OF FLORIDA That is why the National Council on Eco- KBTV, Channel 2 in Denver, was ‘‘Miss IN THE HOUSE OF REPRESENTATIVES nomic Education, the Jump$tart Coalition for Jenny’’ on Romper Room, and was an editor Personal Financial Literacy, and its partner or- and journalist for Channel 9 News. In 1965, Wednesday, May 5, 2004 ganizations have designated April as ‘‘Finan- she moved to Glenwood Springs and had Mr. MEEK of Florida. Mr. Speaker, I rise to cial Literacy Month.’’ Our goal is to educate radio programs on KGLN and KDNK, and Tel- honor the memory of U.S. Army PFC Jeremy the public about the need for increased finan- evision Talk shows on Cable 12. Ricardo Ewing, who was killed on April 29th in cial literacy for youth in the United States. In While many people in Colorado might have a car bomb attack in Iraq. He served his coun- today’s world, we must continue to expand ac- known Jeannine as a television and radio per- try with dignity and honor, and he was a true cess to mainstream financial institutions and sonality, she became a beloved member of hero. provide all Americans the tools they need to her Glenwood Springs community through her Private First Class Ewing’s death is particu- become productive members of our society. generosity and extensive community involve- larly saddening to me as he grew up in our f ment, where she was known affectionately as community and was one of my constituents. Grandma Nene. A small sampling of her par- He graduated from Miami Central High School RECOGNIZING VALUABLE CON- ticipation includes volunteering for the Valley in 2000. He was known for his independence TRIBUTIONS OF MILITARY IM- View Hospital Auxiliary; Glenwood Springs and ambition, and for his sense of duty. He PACTED SCHOOLS, TEACHERS, Sheriff’s Department; Brownies, Girl Scouts, enlisted shortly after the September 11th at- ADMINISTRATION, AND STAFF and Boy Scouts; and Glen Valley Nursing tacks and became a member of the 1st Ar- FOR THEIR ONGOING CONTRIBU- Home. For the annual Newcomers Fashion mored Division of the Army’s 4th Battalion’s TIONS TO EDUCATION OF MILI- Show she designed and made the featured 27th Artillery Regiment. TARY CHILDREN wedding ensemble, initiated some of the first The 1st Armored Division’s tour of duty was efforts in starting a local animal shelter, and SPEECH OF recently extended due to increased insurgency was the Strawberry Days Grand Marshall in in Iraq. Private First Class Ewing, 22, was one HON. MICHAEL C. BURGESS 2001. of eight soldiers mortally wounded last Thurs- OF TEXAS Mr. Speaker, it is clear Jeannine Ford Artaz day, in a car bomb attack on his Army convoy IN THE HOUSE OF REPRESENTATIVES plays a vital role in her Glenwood Springs near Mahmoudiyah, south of Baghdad. community. Her dedication and selfless efforts Tuesday, May 4, 2004 Private First Class Ewing is a symbol of have done much to enhance the lives of those bravery and freedom, and the sacrifice he has Mr. BURGESS. Mr. Speaker, I rise today around her, and is worthy of recognition be- made for his country will never be forgotten. during the National Teacher Appreciation fore this body of Congress and this nation. My heartfelt condolences go out to Private Week of 2004 in strong support of H. Res. Thanks for your service to your community First Class Ewing’s parents, Arthur and Hilda 598, which recognizes and commends the Jeannine, and I wish you all the best in your Lewis, and to his family and friends. All of teachers, administration, and staff of Military future endeavors. America mourns their loss. Impacted Schools, as well as those serving at f f the Department of Defense Education Activity schools world-wide. TRIBUTE TO MRS. THEODORA SUPPORTING THE GOALS AND As a member of the House Impact Aid Coa- JOHNSON: A TRULY GREAT LADY IDEALS OF FINANCIAL LITERACY lition, I would like to thank these teachers and MONTH staff for their dedication to the over 750,000 HON. KENDRICK B. MEEK children of military personnel. OF FLORIDA SPEECH OF In our current War on Terrorism, it is espe- IN THE HOUSE OF REPRESENTATIVES cially important for the children in these HON. JOE BACA Wednesday, May 5, 2004 OF CALIFORNIA schools, many of whom have at least one par- IN THE HOUSE OF REPRESENTATIVES ent deployed abroad, to have the support of Mr. MEEK of Florida. Mr. Speaker, I rise to these extraordinary teachers. Teachers serv- celebrate the life of a quiet and dignified matri- Tuesday, April 27, 2004 ing Military Impacted schools encounter arch, the late Theodora Johnson. Her passing Mr. BACA. Mr. Speaker, I rise in support of unique challenges every day as they help mili- last week has cast a veil of deep sadness H. Res. 578, a resolution supporting the goals tary children achieve a high degree of edu- over our community. and ideals of Financial Literacy Month. This cational attainment. ‘‘Momma Dear’’ Johnson was an extraor- bill, introduced by my colleagues Congress- While none of the schools in the Texas 26th dinary person by any measure. Her life was a woman JUDY BIGGERT and Congressman District are militarily impacted, the State of delicately drawn picture of a calm, confident, RUBE´N HINOJOSA, supports the goals and Texas is home to thousands of military per- dignified and strong woman with an unwaver- ideals of Financial Literacy Month and re- sonnel, and I would like to thank each and ing commitment to the well being of her family quests that the President issue a proclamation every one of the teachers who provide military and to those who shared her vision of a com- calling on the Federal Government, States, children with support and an excellent edu- munity of service and faith. She volunteered schools, businesses, and others to observe cation. her time at Christ the King Catholic Church in the month with appropriate programs and ac- f South Dade—she was a founding member of tivities. the parish—and dedicated countless time and Our financial services industry benefits mil- PAYING TRIBUTE TO JEANNINE effort to enhancing her community. lions of people, allowing individuals and fami- FORD ARTAZ She taught and volunteered in her parish lies to build homes, buy cars, finance edu- school because she firmly believed in the high cations, and start businesses. Financial lit- HON. SCOTT McINNIS stakes involved in the education of children. eracy is particularly important for the Hispanic OF COLORADO Her work with children literally transformed and minority communities. It empowers indi- IN THE HOUSE OF REPRESENTATIVES their lives. She was keenly aware of the fact viduals to make wise financial decisions in an that giving our children the care and attention increasingly complex economy. Despite the Wednesday, May 5, 2004 they need in life was her vocation. importance of financial literacy, the numbers Mr. MCINNIS. Mr. Speaker, it is my privilege She understood full well that either we pay show that our work is just getting started. to rise today before this body of Congress and now or we pay later. And so, she reached out Recent studies have found that high school this nation to recognize a remarkable woman to the parents of these children because she seniors know less about principles of basic from my district. Jeannine Ford Artaz of Glen- instinctively knew that the future of society is personal finance than did high school seniors wood Springs, Colorado has displayed the inextricably linked to the education of the 5 years ago. Between 25 and 56 million peo- kind of selfless dedication to her community young. Her approach to motivating youth em- ple over the age of 18 do not use mainstream, that enriches the lives of all around her, and phasized personal responsibility and com- insured financial institutions and are consid- it is my pleasure to thank her for her many munal sharing.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00002 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.001 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E743 Theodora Johnson lives on in the lives of Mr. Speaker, I ask that my colleagues join Poppy Corsages: Class I—1st—Grace the people she touched, in the good works me today in recognizing the East Pikeland Blocker, Fort Atkinson, 2nd—Kalinda Kolek, she left behind, and in the wonderful memo- School for its 75 years of dedication and ex- Protivin, Class II—Micki Schuck, Oelwein, ries we have of her. I know that I speak for all 2nd—Carrie Pout, Oelwine, 3rd—Cassidy cellence in teaching and for its considerable Pout, Oelwine, Class III—1st—Jessica my colleagues in extending to her family our contributions to and unparalleled achievement Milbrandt, Fort Atkinson, 2nd—Kristen deepest sympathy and condolences. within the East Pikeland community. Milbrandt, Fort Atkinson, 3rd—Kerri Boies, f f Oelwein Chaplain’s Book of Prayers & Inspirations: RECOGNIZING EAST PIKELAND PERSONAL EXPLANATION Class II—1st—Jessica Milbrandt, Fort Atkin- ELEMENTARY SCHOOL son, 2nd—Kristin Milbrandt, Fort Atkinson, HON. ROB PORTMAN 3rd—Kalinda Jo Kolek, Protivin HON. JIM GERLACH OF OHIO Junior History Book: Kristin Milbrandt, Fort Atkinson. OF PENNSYLVANIA IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES Junior Scrapbook: Jessica Milbrandt, Fort Wednesday, May 5, 2004 Atkinson. Wednesday, May 5, 2004 Mr. PORTMAN. Mr. Speaker, yesterday I Americanism Essay Contest: Kristin Mr. GERLACH. Mr. Speaker, I rise today to was absent attending meetings in my Con- Milbrandt, Fort Atkinson. recognize the East Pikeland Elementary Handiwork: 1st place all classes—Fort At- gressional District in Ohio and missed the kinson. School on its 75th anniversary and for its ex- votes on rollcall No. 139, on H. Res. 600, emplary dedication and service to the children A wonderful lunch was served by the host Congratulating charter schools; Roll Call Num- Unit and the entertainment of Hawaiian of the East Pikeland Township and the ber 140, on H. Con. Res. 380, Recognizing Phoenixville School District. dancing very enjoyable. The Oelwein Unit school-based music education; and Roll Call will host the 2005 conference and I hope to Originally, East Pikeland School was a one- Number 141, on H. Res. 599, Congratulating see many Juniors in attendance. Mary E. room schoolhouse that in 1928 followed the the University of Connecticut men’s and wom- Lukes, Fourth District Junior Chairman. national trend of school consolidation, in con- en’s basketball teams. solidating with two other schools, the Schuyl- Had I been present, I would have voted f kill School and the Charlestown School. This ‘‘yes’’ on rollcall No. 139, ‘‘yea’’ on rollcall No. consolidation was made possible through the TRIBUTE TO VINCE DEMUZIO, ILLI- 140, and ‘‘yea’’ on rollcall No. 141. generous philanthropy of a local entrepreneur, NOIS STATE SENATOR AND MA- Frank B. Foster. f JORITY LEADER In its early years, the East Pikeland School FOURTH DISTRICT JUNIOR was one of the first In Pennsylvania to start an CONFERENCE elementary school newspaper. In 1932, Miss HON. WILLIAM O. LIPINSKI Helen Ottinger created ‘‘The Tattler’’ and the OF ILLINOIS newspaper later won an award for being the HON. TOM LATHAM IN THE HOUSE OF REPRESENTATIVES OF IOWA best elementary newspaper in the Common- Wednesday, May 5, 2004 wealth. IN THE HOUSE OF REPRESENTATIVES Beginning in the 1970s, the East Pikeland Wednesday, May 5, 2004 Mr. LIPINSKI. Mr. Speaker, I rise today to School further exhibited its excellence in pay tribute to the memory of an exceptional Mr. LATHAM. Mr. Speaker, I recently re- statesman from Illinois, Senate Majority Lead- teaching and learning when students in grades ceived a letter from a constituent of mine who five, eight, and eleven were required to begin er Vince Demuzio. Throughout his career, is an Americanism Chairman for the American Senator Demuzio has been a tremendous participating in the Pennsylvania System of Legion in Osage, Iowa. This person asked for School Assessment. Each year, the East leader for the State of Illinois. His efforts in the the attached article’s inclusion in the CON- Pikeland School students’ scores were among Illinois Assembly, too numerous to even men- GRESSIONAL RECORD. Because of the excep- the top in Chester County and the state in tion, serve as a model for each of us in public tional work that the American Legion and the service. both reading and math. This outstanding per- American Legion Auxiliary do for our country, formance by the students led to numerous For twenty nine years, Senator Demuzio I believe that this gesture is a small token of proved to be a true leader in the state legisla- awards, including a citation from the Pennsyl- the appreciation of the Congress. vania House of Representatives. In the year ture as he worked to represent the needs of 2000, the School was recognized by the East 4TH DISTRICT JUNIOR CONFERENCE his constituents while reaching out to all of his Pikeland Township for ranking highest among The Osage Unit 278 hosted the Fourth Dis- colleagues. Senator Demuzio was admired Chester County schools in reading and math. trict Junior Conference on March 21, 2004 and respected on both sides of the aisle. His In 2000–2001, East Pikeland received a Main- with about 70 people in attendance. spirited partisanship, which included a reputa- The new officers for the coming year will tion of being both tough and fair, brought tenance of High Standards Award for main- be: taining high scores for three consecutive President—Nicole Schroeder, Unit 672 Fort members together across party lines, for the years. In 2002–2003, East Pikeland received Atkinson. good of Illinois. an achievement improvement award from the Vice-President—Alicia Brandau, Unit 278 Senator Demuzio consistently possessed a East Pikeland Township for increased scores Osage. keen understanding of what it truly meant to in reading and math. Secretary—Mallory Schweiger, Unit 278 be a public servant. Vince put the needs of his Aside from an impressive academic record, Osage. community first and foremost in everything he Historian—Amy Schroeder, Unit 672 Fort the East Pikeland School has also excelled in Atkinson. did. The people of Illinois have truly benefited extracurricular activities starting as early as Chaplain—Kelsey Klimesh, Unit 266 from Senator Demuzio’s legislative initiatives 1946. Basketball was a popular sport, with the Calmar. that included massive education reform, trans- East Pikeland boys’ team winning the West Sergeant-at-Arms—Brittney Shannon, portation projects, agricultural research, and Chester playoffs in 1946. And in 2004, an old Unit 9 Oelwein. necessary state-wide water and sewage im- tradition of basketball games between Assistant Sergeant-at-Arms—Kalinda provements. He remained focused on state Phoenixville area schools was reinstated. Kolek, Unit 605 Protivin. government throughout his entire political ca- The many talents of the young people of Fourth and fifth grade boys named ‘‘the Future the Fourth District shown through once reer and has greatly contributed to the devel- Phantoms’’ represented East Pikeland in the again in the form of contest entries that opment of downstate Illinois. tournament. Along with participation in sports, were submitted for judging. Congratulations Senator Demuzio’s leadership and political the students of East Pikeland participate in to all who worked so hard on their projects. abilities have been recognized by his col- band and chorus and perform twice a year in The top place contestants were: leagues throughout his entire career. Vince the winter and spring concerts. In 2000, the Poppy Posters: Class I—1st—Jake Tyler, served as the state chairman of the Demo- East Pikeland Chorus won a superior rating in Hawkeye, 2nd—Dustin Elsbernd, Calmar, cratic Party from 1986 to 1990, becoming the 3rd—Miranda Walz, Monona Class II—1st— its first participation in the Music in the Parks Holly Randall, Guttenberg, 2nd—Lukes first downstate official to hold the post in dec- competition in Hershey, Pennsylvania. Two Elsbernd, Calmar, 3rd—Megan Fink, Fort At- ades, giving the areas surrounding the 49th years later in 2002, the tradition of a second kinson Class III—1st—Emily Faust, district a greater voice in the state govern- grade play began with all students singing and Colesburg, 2nd—Kelsey Klimesh, Calmar, ment. In 2003, Senator Demuzio became the acting in the spring performance. 3rd—Lindsi Franzen, Calmar Dean of the Senate, having served more

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.004 E05PT1 E744 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 years than any other current member of the Il- civics competition. This weekend, these bright DeShjon Mitchell knows he’s not defined by linois State Senate. Senator Demuzio is cred- young men and women will face 49 other his paralysis, and that his dreams before his ited with rebuilding the infrastructure of the Illi- teams from around the nation, demonstrating injury continue on. He’s just altering how he nois Democratic Party and the Illinois delega- their knowledge of the Constitution of the plans to accomplish them. This athletic teen tion stands united today as a result of his su- United States of America and how it has went back to school and graduated with his perb leadership. shaped the history and institutions of this land. class. He then went on to San Diego State The Illinois Senate and the people of this I am extremely proud of these students, the University and completed his degree in Eco- state have lost a great leader. Mr. Speaker, I future leaders of the 11th district of California nomics just four years later. Through his work join the State of Illinois in mourning the loss of and the Nation and I wish them the best of with Sharp On Survival he is rediscovering his this statesman, and extend to Senator luck in the competition. confidence. He is still playing sports and en- Demuzio’s family my thoughts and prayers. This is not the first time the Amador Valley joying music, and he’s added public speaking f High School team has been to the National to his talents, working as a Voice of Injury competition. Since 1992, the team has made Prevention (VIP) for Sharp On Survival. PAYING TRIBUTE TO VIRGINIA it to this level four times, and in 1995 they Juan Solis was diagnosed at the age of 37 HOWEY were crowned National Champion. This record neurocysticercosis and hydrocephalus with of accomplishment is truly a testament to the which required multiple surgeries and shunting HON. SCOTT McINNIS talented, dedicated teachers of the Amador to drain the fluid on his brain. He spent months in the hospital followed by several OF COLORADO Valley High School. years in a nursing home. With the help of the IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, please join me in congratulating these fine young scholars, and all the patients and staff of Sharp Cabrillo Skilled Wednesday, May 5, 2004 students from around the country whose dedi- Nursing Unit, Juan is forever grateful he’s got Mr. MCINNIS. Mr. Speaker, it is a great cation to civics and the history of this great a second chance on life. He is finally home pleasure to stand and recognize Virginia Nation brings them here this week. with his family and working two jobs after being away for five years. He hopes to return Howey for receiving the Southwest Colorado f Not-for-Profit Director of the Year Award. Vir- to coaching the neighborhood kids in ‘‘futbol- ginia has spent twenty-two years starting early HONORING THE SHARP soccer’’ this year. childhood and family support programs in HEALTHCARE VICTORIES OF Mathew Sparks was temporarily sidelined Montezuma County, and this award is a well- SPIRIT EVENT from his dream of service to his Country by a deserved testament to her dedication to her spinal cord injury at the age of 23. While Matt community and the State of Colorado. HON. RANDY ‘‘DUKE’’ CUNNINGHAM may not be able to fly with the Marines, he is now telling his story as a Voice of Injury Pre- Virginia’s extensive involvement with com- OF CALIFORNIA vention (VIP) for Sharp On Survival. Through munity organizations comes from her firm be- IN THE HOUSE OF REPRESENTATIVES lief that one person can make a difference, but Matt’s work in the program, he’s able to serve Wednesday, May 5, 2004 it takes a whole community to make a lasting by speaking at the Marine Corps and Navy impact. As the current Pinon Project executive Mr. CUNNINGHAM. Mr. Speaker, I rise safety stand-downs, helping to protect the director, she has implemented 12 programs today to recognize the 14th annual Sharp men and women who protect our country. Christine O. Timmins is an educator who for prenatal moms, infants and toddlers, pre- Healthcare Victories of Spirit event. This event hasn’t let a 1978 spinal injury change her. She schoolers, school-age youth, families, and in- is a celebration of all that is right in health is full of capability, dedicated to serving, and dividuals, serving roughly 900 families in Mon- care and the value of community ties. For over dedicated to her students. Christine’s courage tezuma and Dolores counties. She also has 40 years, the Sharp model of rehabilitation care provides innovative services that assist has benefited teens for more than 30 years served as chair of the Family Resource Asso- now. Her colleagues will tell you, ‘‘She can no ciation’s state board of directors, on the United individuals impacted by catastrophic injury or illness in reaching their greatest potential—at longer leave footprints in the sand, but she Way of Montezuma advisory board, as fiscal leaves imprints on the hearts and minds of all agent for the Montezuma/Dolores Community home, at school, on the job and in recreational and sports activities. Their success is dem- whom she has taught and touched with her Summit, and as Southwest KIDS coordinator ability for so many years.’’ onstrated through the achievements of those for four years. She also was responsible for The San Diego Brain Injury Foundation has who are privileged to serve within Rehabilita- securing a Department of Transportation grant been serving brain injury survivors and their for a seat belt campaign and implemented the tion Service. Victories of Spirit showcases loved ones since 1983. The foundation started Montezuma-Cortez school district’s Early great work and partnerships that lead to even as a grass roots effort by families of survivors Reading First Program for 300 preschool chil- greater patient outcomes and achievement. who knew they needed help and that many dren. This special evening is dedicated to hon- others would too. Over the last 20 years, Mr. Speaker, it is my honor to recognize Vir- oring incredible people who have played a those initial seeds have blossomed into a re- ginia Howey on receiving the Southwest Colo- hand at turning tragedy into triumph. The gional not-for-profit organization that has rado Not-for-Profit Director of the Year Award Eagle Spirit Award represents the symbolism raised over $700,000 to provide support, re- before this body of Congress and this nation. of the Eagle Spirit, a Navajo sign of the most source and information, networking opportuni- The award is a testament to her hard work potent healing power, one that elicits images ties and service referral to 11,000 people af- and great skill as an organizer building proof soaring, of conquering and of excelling. Vic- fected by brain injury each year in San Diego grams that benefit individuals, families, and tories of Spirit is a night that celebrates tri- County. Their mission is to improve the quality communities throughout Southwest Colorado. I umphs and those who make them possible. of life for brain injury survivors and their fami- wish her all the best in her future endeavors. Year after year it demonstrates to our commu- lies and promote public awareness and social f nity just how powerful the human spirit is and advocacy. inspires each one of us to be the best we can More than 500 guests including business, CONGRATULATIONS TO AMADOR be. I would like to individually recognize each government and educational leaders, physi- VALLEY HIGH SCHOOL CIVICS of the recipients of the Eagle Spirit Award: cians and health care executives, rehabilitation TEAM Josephina Everett is a mother and a teacher providers, the media and honored community for deaf children in need. Josefina and her members from the San Diego area will join in HON. RICHARD W. POMBO husband, Luke, live in Mexico and run a free the celebration. I would like to thank the Hon- OF CALIFORNIA Christian home and school for deaf children in orary chair of the event, Donnie Edwards of IN THE HOUSE OF REPRESENTATIVES Mexico. Josephina, who became deaf at the the San Diego Chargers. Donnie will be joined age of five, has dedicated her life to helping by Bree Walker, a producer/broadcaster, who Wednesday, May 5, 2004 deaf children learn and appreciate their gifts. has hosted the celebration for more than a Mr. POMBO. Mr. Speaker, I rise today to Following a burst aneurysm that almost took decade. congratulate the students of the Amador Val- her life, Josephina learned to sign again using This inspiring evening will benefit Sharp On ley High School civics team, from Pleasanton, one hand and eventually learned to write and Survival, Sharp’s Institute for Injury and Vio- California. The 19 seniors and their coach, so- to walk. Josefina and her family have shown lence Prevention, the recognized model chap- cial studies teacher Matt Campbell are here in great strength against all odds. Their love and ter of the Think First National Injury Prevention Washington to represent California in the ‘‘We faith have brought them all back to the deaf Foundation. All proceeds raised from this the People: The Citizen and the Constitution’’ children of Valle de Guadalupe. event benefit Sharp On Survival and help to

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.008 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E745 bring vital prevention education to more youth Some people will claim that this bill opens In 2003, United for a Fair Economy (UFE) throughout San Diego County. I ask my col- our borders. That is false. The SOLVE Act reported that 24 percent of African Americans leagues to join me today in recognizing the simply brings order to an immigration system live in poverty, compared to 8 percent of white Victories of Spirit event, the recipients of the that is broken. Americans. Victories of Spirit award, and all those who as- I urge my colleagues to support passage of It is because of such disparities that this sisted in making this event a success. this legislation. resolution calls upon Congress to do more f f than celebrate the 50th Anniversary of the Brown decision by noting its historical signifi- INTRODUCTION OF A RESOLUTION INTRODUCTION OF H.R. 4262, THE cance. This resolution asks Congress to RECOGNIZING THE 50TH ANNI- SOLVE ACT OF 2004 renew its commitment to continuing and build- VERSARY OF BROWN V. BOARD ing on the legacy of Brown with a pledge to OF EDUCATION HON. JOE BACA acknowledge and address the modern day OF CALIFORNIA disparities that perpetuate a separate and un- IN THE HOUSE OF REPRESENTATIVES HON. JOHN CONYERS, JR. equal society. OF MICHIGAN f Wednesday, May 5, 2004 IN THE HOUSE OF REPRESENTATIVES Mr. BACA. Mr. Speaker, I rise in support of Wednesday, May 5, 2004 PAYING TRIBUTE TO RUTH H.R. 4262, the SOLVE Act of 2004, that re- SUMMONS Mr. CONYERS. Mr. Speaker, today I am forms our nation’s immigration laws. This leg- pleased to introduce a resolution recognizing islation was introduced yesterday by Con- the 50th anniversary of the Brown v. Board of HON. SCOTT McINNIS gressman GUTIERREZ and I am proud to be Education decision. OF COLORADO one of its many original cosponsors. This month we honor and celebrate the 50th IN THE HOUSE OF REPRESENTATIVES This bill reunites families by reducing the anniversary of Brown v. Board of Education, a Wednesday, May 5, 2004 years or decades of family separation caused landmark decision that not only desegregated by backlogs and harsh restrictions. public schools, but led to the desegregation of Mr. MCINNIS. Mr. Speaker, it is with a Under this bill, immigrants waiting more than every segment of our society. Half a century heavy heart that I rise today to pay tribute to 5 years will be given a visa outside the per- ago, on May 17, 1954, the Brown decision ad- the life and memory of Ruth Summons. Ruth’s country limits. In addition, immediate relatives vanced the Constitutional principle that every long life of one hundred years saw many would no longer count against the 480,000 American should be guaranteed equal protec- changes, and her kind soul touched many limit on family-based visas. If we truly value tion of the laws. lives. Her journey ended in Colorado, a place the family unit, we cannot keep in place poli- In this decision, the United States Supreme that she loved dearly, and where she chose to cies that tear it apart. Court declared, ‘‘in the field of public edu- spend her retirement. As her family and We must reward work by granting immi- cation, the doctrine of ‘separate but equal’ has friends mourn her passing, I believe it appro- grants who work hard and pay taxes the op- no place.’’ It was Brown that reversed Plessy priate to call to attention her legacy before this portunity to earn a green card. v. Ferguson, the case that established this body of Congress and this nation today. This bill will allow immigrants who have ‘‘separate but equal’’ doctrine, which stamped Ruth was born to a family of eight children lived in the U.S. for 5 years and worked for 2 Africans Americans with a badge of inferiority in Louisiana, where she attended a one-room years to be eligible for legalization, including as articulated by Judge John Marshall Harlan, schoolhouse. Her adventurous spirit carried spouse and children. the lone dissenter in Plessy. her to Texas for business school, and then on Also, immigrants who have lived in the U.S. Brown commenced an era that began to to Denver, where she worked as a secretary for less than 5 years would be eligible for a 3- strip African Americans and other minorities of in a law firm for forty-seven years. Ruth met year visa. The visa will allow immigrants to this badge of inferiority. With Brown, millions her husband Harold at a singles dance for live, work, and travel legally in the U.S., and of minorities and women would be afforded seniors in Denver, and they married and apply for a green card after two years of work educational opportunities. This decision also moved to Grand Junction to enjoy their retire- history. provided momentum to the Civil Rights Move- ment. Ruth lived her life in such a way that Congressman GUTIERREZ’ bill respects work- ment and this nation would come to realize her husband will forever remember her, say- ers by protecting wages and working condi- change not just within the realm of education, ing: ‘‘there wasn’t a better woman on Earth.’’ tions for U.S. workers. but in other segments of society as well. Mr. Speaker, Ruth Summons lived a long This proposal creates a new visa for low- The Brown decision helped lead to the Civil and full life, and she will be sorely missed by skilled workers, such as agricultural farm Rights Act of 1964, which advanced the idea those fortunate to have known her. It is my workers. These workers will be paid a pre- that discrimination in the workplace and in honor to recognize her life before this body of vailing wage so that Americans do not suffer public establishments would not be tolerated. Congress and this nation. I would like to ex- from lower wages, and the bill makes sure The decision also helped lead to the Voting tend my heartfelt respects to her family and companies hire American workers first. Rights Act of 1965, which promotes every friends during this difficult time of bereave- The confusing system we have today is so American’s right to participate in the political ment. difficult to navigate that it encourages many to process and the Fair Housing Act of 1968 f immigrate illegally as a first resort. which promotes equal and fair access to hous- HONORING NORA BUTLER OF According to the Department of Labor, our ing for every American. economy will need a stable supply of legal im- Fifty years after Brown, however, the pursuit CHICAGO migrants to maintain our economy. for equal rights and equal opportunity for Hospitals in California are importing nurses every American citizen continues. This notion HON. RAHM EMANUEL from South East Asia and Latin America be- can best be evidenced by statistics that reflect OF ILLINOIS cause of a nursing shortage. Restaurants and the socio-economic disparities within the Afri- IN THE HOUSE OF REPRESENTATIVES other service jobs are hiring immigrants to fill can American community: Wednesday, May 5, 2004 in thousands of vacancies. In March 2004, the Department of Labor re- The fact is that we can reduce illegal immi- ported that 10 percent of African Americans Mr. EMANUEL. Mr. Speaker, I am pleased gration by having fair and reasonable immigra- were unemployed, compared to 5 percent of to rise today to honor the contributions that tion laws. white Americans. Ms. Nora Butler, one of our most active com- Our government must work hard to prevent In 2003, the National Assessment of Edu- munity members, has made to the 36th Ward people and businesses from violating our cational Progress (NAEP) or ‘‘the nation’s rein the 5th Congressional District and Chi- laws. That is why we must support comport card’’ indicated that 60 percent of African cago’s North Side. prehensive immigration reform. American fourth graders were not reading at a At 91 years young, Ms. Butler still is going Our current system loves immigrants one fourth grade level, compared to 25 percent of strong. She is an instrumental volunteer at Al- day and hates them the next. We need a sys- white American fourth graders. derman William J.P. Banks’ service office, and tem that is logical, orderly and sympathetic to In 2003, the Kaiser Family Foundation esti- still serves as a precinct captain for the ward. human needs. This system forces the average mated that 20 percent of African Americans Her boundless energy and enthusiasm during Mexican and Filipino to wait over ten years were uninsured, compared to 12 percent of this past March’s primary election would have before being reunited with their spouse. white Americans. been remarkable for someone even half her

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00005 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.011 E05PT1 E746 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 age, and I cannot wait to see the results that surmountable well outfitted French army of 1982, the Colonial Heights Fire Department her renewed efforts will bring in November. 6,500 soldiers. This victory was a glorious mo- was instrumental in the evacuation of North Born in San Bernardino, California, Ms. But- ment in Mexican history, thus Cinco de Mayo Elementary School, and the chemical cleanup ler was raised in Springfield, Illinois, and is remembered. that ensued for two weeks. moved to Chicago after high school seeking Cinco de Mayo’s increased popularity is ap- When other agencies are unable to reemployment. During her younger years, she parent in the innumerable celebrations along spond, the fire department ensures that the served in a variety of posts for the Chicago the U.S.-Mexico border and in parts of the citizen’s emergencies are given proper atten- Park District. U.S. that have a high population of people tion. With the establishment of the Emergency For the last 40 years, Ms. Butler has worked with a Mexican heritage. In these areas the Medical Services in 1987, the fire department as a precinct captain and assistant precinct holiday is a celebration of Mexican culture, of has been able to expand the services that it captain for the 36th Ward. She loves reaching food, music, beverage and customs unique to provides. Prior to 1987 the department re- out to people and is willing to do whatever it Mexico. This date provides me with a wel- ceived approximately 300–350 calls per year. takes—from placing lawn signs to driving resi- come opportunity to recognize and appreciate Over 7,000 calls were received last year re- dents to and from the grocery store—all to the contributions being made by the growing lated to medical needs, public service and fire make her community a better place. Mexican-American communities across the assistance. Alderman Banks’ staff at the 36th Ward Of- United States. We in New York City and in my In addition to the life saving efforts of the fice look toward Ms. Butler as an inspiring ex- community are benefiting from the dynamic Colonial Heights Fire Department, two scholar- ample of a truly dedicated public servant presence of this vibrant culture. ship programs have been established for stu- through her spirit of volunteerism and her It is important that on this day of remem- dents wanting to pursue careers in either a commitment of time two days per week to pro- brance that we do not let the message of tri- medical or fire fighting related field. In recogni- vide assistance to the staff with correspond- umph in the face of adversity be overridden by tion of their many valiant efforts, the fire de- ence, answering phones, and constituent serv- festivals, food, and music. Let us never forget partment has been recognized by the Amer- ice. the great contributions that Mexican-Ameri- ican Legion, the Optimist and the Moose. Mary Aiello, an aide to the Alderman, put it cans have made and continue to make to our Throughout the 75 years of operation in Co- best in her description of Ms. Butler’s person- nation. Their presence is apparent in politics, lonial Heights, the fire department has been ality and grace: ‘‘No matter where you go with arts, athletics, entertainment, military excel- persistent in delivering quality care and serv- her, she is always friendly, gracious and inter- lence, science, culinary arts, and embedded in ice to those in need. The community has ben- ested in helping anybody who needs or wants the American language. efited immensely from the Colonial Heights anything. She is always conscious of other On this important day we must recognize Fire Department’s resounding success, and people’s needs and concerns.’’ that the Mexican-American contribution to our distinguished years of service. Ms. Aiello also provided an example that nation is similar to the many other immigrant underlines Ms. Butler’s selfless dedication. groups that came to our great nation with the Mr. Speaker, please join me in honoring the Each year she is charged with the important same hopes of self-betterment and the pursuit Colonial Heights Fire Department in celebra- assignment of organizing Alderman Banks’ an- of the American Dream. On Thanksgiving we tion of their 75th Anniversary of loyal and nual senior citizens’ function. Instead of just commemorate the Pilgrims and Native Ameri- dedicated service. relaxing and enjoying the event, Ms. Butler cans overcoming the harshness of winter and serves food and does everything she can do settlement into the New World, which speaks f to make sure the other seniors are having a to the overcoming the seemingly insuperable. PAYING TRIBUTE TO CHET ALLEN good time. She is also involved with the Cinco de Mayo symbolizes the power of monthly senior citizens’ meetings at the Mont faith in the face of adversity. It is rooted in our Clare Baptist Church. nation’s history that in order to achieve great- HON. SCOTT McINNIS Ms. Butler’s positive outlook and uplifting ness we must find the power within ourselves OF COLORADO sense of humor are evident to all who know and never give up. If we are able to work hard IN THE HOUSE OF REPRESENTATIVES her. Although residents of the 36th Ward are and never lose faith then the sky is the limit. often surprised to learn that the woman help- It is this exact belief that Cinco de Mayo truly Wednesday, May 5, 2004 ing them is 91, she recently said, ‘‘They al- embodies. Thus, this date has yet to receive Mr. MCINNIS. Mr. Speaker, I would like to ways tell me I should run for office.’’ the official recognition that it deserves. I sin- take this opportunity to pay tribute to Chet Mr. Speaker, I thank Ms. Butler for her cerely hope and believe that one day Cinco de Allen of Grand Junction, Colorado. His efforts many years of dedicated service and for the Mayo will be a designated national holiday. and vision earned his business, Boomers assistance she has given to so many resi- f nightclub on Main Street in Grand Junction, dents of the 5th Congressional District. I hope COLONIAL HEIGHTS FIRE DEPART- the designation ‘‘The Best of the West places her uplifting spirit, warm smile, and infectious to go for people over thirty’’ by Daily Sentinel personality will remain a presence in the 36th MENT—IN CELEBRATION OF THEIR 75TH ANNIVERSARY readers. Since opening Boomers in 2002, Ward for many more years to come. I am very Chet has helped revitalize Main Street, as well proud to represent Nora Butler. as spread his love of Blues, Jazz, and art, all f HON. J. RANDY FORBES of which figure prominently in Boomers atmos- OF VIRGINIA IN RECOGNITION OF CINCO DE phere. IN THE HOUSE OF REPRESENTATIVES MAYO Chet came to Grand Junction in 1981 as an Wednesday, May 5, 2004 engineer for the Rio Grande Zephyr Railroad. HON. CHARLES B. RANGEL Mr. FORBES. Mr. Speaker, I rise today in He and his wife Janet fell in love with the town and decided to stay, but felt the town was OF NEW YORK recognition of the Colonial Heights Fire De- somewhat lacking in nightlife. In 2000, he and IN THE HOUSE OF REPRESENTATIVES partment, in celebration of their 75th Anniver- sary. his wife purchased and renovated an old fur- Wednesday, May 5, 2004 The Colonial Heights Fire Department was niture warehouse on Main Street, expecting to Mr. RANGEL. Mr. Speaker, I rise to ac- organized in 1929, and operated with 12 vol- lease it to someone who would turn it into a knowledge Cinco de Mayo, an important day unteers. The first Fire Chief was Benjamin downtown hotspot. When the first tenants in the Mexican community. In recent years the Keys. Today there are 45 career personnel failed, Chet and Janet took the task upon holiday of Cinco de Mayo or The Fifth Of May and 35 volunteers for the department. The fire themselves, and thanks to their responsive- has gained much popularity in American cul- department has been instrumental in saving ness to the community needs, Boomers has ture. However, it is not, as many people be- lives during times of natural disasters, as well thrived since opening in September 2002. lieve a celebration of Mexican Independence. as other disastrous occasions. Mr. Speaker, I am honored to pay tribute to Mexico’s actual Independence Day is Sep- The fire department has worked closely with Chet Allen before this body of Congress and tember 16. Cinco de Mayo memorializes the the community to ensure the best quality of this nation. Through his vision and determina- Mexican army’s triumph over the French at care for the citizens of Colonial Heights. In tion, he has made remarkable contributions to The Battle of Puebla in 1862. Cinco de Mayo times of disaster, the community has been his community. I sincerely thank him for his ef- pays homage to an ill prepared militia of about able to rely on the dedicated and dependable forts and wish him the best in his future en- 4,500 overcoming what appeared to be the in- men and women of the fire department. In deavors.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00006 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.014 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E747 MARKING 120 YEARS OF organization. Daniel currently assists up to 61 Ukraine. The pre-election environment in COMMUNITY SERVICE children at any given time, ages 5 to 18 years Ukraine has been discouraging, with examples of age, from throughout Florida. Daniel Memo- of obstacles to free assembly and free HON. ANDER CRENSHAW rial Incorporated also operates a charter speech, the limiting of access to Radio Liberty, OF FLORIDA school, foster homes, and other services for Voice of America and other international IN THE HOUSE OF REPRESENTATIVES children. broadcasts, and substantial transgressions in Wednesday, May 5, 2004 Mr. Speaker, let me conclude with this recent parliamentary by-elections and mayoral thought. Were it a perfect world, organizations elections. Mr. CRENSHAW. Mr. Speaker, I rise today like daniel would have no place in our society. Mr. Speaker, the most blatant of these took to mark the anniversary of a very helpful insti- But the sad truth is organizations like daniel place just a few weeks ago in the city of tution in Jacksonville, Florida. The institution is are necessary and provide a vital service. Mukacheve. These elections witnessed vio- daniel. Their mission is to help youth build Daniel truly makes a difference in the lives of lence, intimidation, fraud and other massive character by helping them forge strong values, children, and for our entire community. I ask violations both of the electoral code and any enhance their self-worth, and erect a sense of my colleagues to join me today in recognizing standards of civilized human behavior. The community. I would like to enter into the the good work of daniel, all they have per- mayoral elections have been roundly and record, a brief history of this organization, and formed for the last 120 years, and in wishing rightly criticized by the United States, Europe, how it came to help so many children through daniel another 120 years of community serv- and the OSCE. Many observers fear that its 120 years in operation. ice. Mukacheve is a harbinger of things to come. Established in 1884, daniel has met the f As Chairman of the U.S. delegation to the physical and emotional needs of children. It is OSCE Parliamentary Assembly, I join OSCE considered Florida’s oldest child-serving agen- PERSONAL EXPLANATION PA President Bruce George in calling upon cy. Originally founded as an orphanage, and Ukrainian President Kuchma to ensure a prop- later named after James Jaquelin Daniel, dan- HON. GEORGE R. NETHERCUTT, JR. er investigation of the violations which took iel has evolved into a multi-service agency OF WASHINGTON place and to rectify the situation so that the that assists troubled youth and their families IN THE HOUSE OF REPRESENTATIVES will of the voters is realized. with a variety of innovative and nationally rec- Mr. Speaker, Ukraine remains at a cross- Wednesday, May 5, 2004 ognized programs. roads. Developments with respect to democ- Originally established as the Orphanage and Mr. NETHERCUTT. Mr. Speaker, on Tues- racy have been discouraging over the last few Home for the Friendless, its mission was ‘‘to day, May 4, I was unavoidably detained due to years. The elections represent a real chance receive into a suitable home to support and a prior obligation. Had I been present, I would for Ukraine to get back on the road to full re- provide for all who shall come under the provi- have voted ‘‘yes’’ on the following: Rollcall spect for the tenets of democracy, human sions of the constitution as far as our means vote No. 139 on H. Res. 600, Congratulating rights and the rule of law. The United States and facilities will enable us.’’ charter schools and their students, parents, stands in solidarity with the people of Ukraine To meet this goal, a cottage was rented on teachers, and administrators across the United as they strive to achieve these essential goals. the corner of Liberty and Ashley Street and a States for their ongoing contributions to edu- f fund was started to open a permanent home. cation; Rollcall vote No. 140 on H. Con. Res. Three years later, a two-story frame building 380, Recognizing the benefits and importance PAYING TRIBUTE TO REV. GARY was built on the corner of Evergreen Avenue of school-based music education; and Rollcall MACDONALD and Center Street. vote No. 141 on H. Res. 599, Congratulating The earliest minutes of the organization that the University of Connecticut Huskies for win- would become daniel begin with a Preface as HON. SCOTT McINNIS ning the 2004 National Collegiate Athletic As- follows: OF COLORADO sociation Division I men and women’s basket- IN THE HOUSE OF REPRESENTATIVES Before Organization a few children in the ball championships. city occupied themselves in the winter of ’83– Wednesday, May 5, 2004 ’84 in working for a little fair, the proceeds f Mr. MCINNIS. Mr. Speaker, it is with a to be devoted to the care of little orphan RESOLUTION ENCOURAGING DEMO- children. Dell Hungerford, Edie Fitzgerald, heavy heart that I rise today to honor the life Kitty and Eva Havener began in a quiet way CRATIC ELECTIONS IN UKRAINE and memory of Reverend Gary MacDonald of & soon other children became interested and Durango, Colorado, who passed away recently in Feb. 1884 quite a large company, old and HON. CHRISTOPHER H. SMITH at the age of forty-six. Reverend MacDonald young, met at Mrs. A.L. Hungerford’s where OF NEW JERSEY was pastor of Durango’s New Life Chapel, and she had carefully arranged a programme of IN THE HOUSE OF REPRESENTATIVES his sudden death comes as a shock to us all. interest to the children and where all were He was a man of devotion, hard work, and supplied with good things under the super- Wednesday, May 5, 2004 vision of herself and the friends whom she humilty, and while his family and community had invited to assist her. The proceeds Mr. SMITH of New Jersey. Mr. Speaker, I’m mourn his passing, I believe it is appropriate amounted to $41.57 which were generously pleased to join Rep. HYDE, Chairman of the to pay tribute to the life of an exceptional per- supplemented by Mr. & Mrs. Hungerford by a International Relations Committee, in spon- son. donation of $15.00. soring an important resolution urging Ukraine Involved in the ministry for twenty-four In 1888, a yellow fever epidemic ravaged to ensure a democratic, transparent, and fair years, Reverend MacDonald served as senior the Jacksonville community. Colonel James election process for the upcoming presidential pastor of the Lubbock First Foursquare Jaquelin Daniel, the president of the Auxiliary election. By urging the Ukrainian authorities to Church in Lubbock, Texas before he and his Sanitary Association, well-known attorney and abide by their freely undertaken OSCE com- wife Tammy moved to Durango. In 1998, he religious leader, worked tirelessly to combat mitments on democratic elections, this resolu- was named senior pastor at New Life Chapel the disease and coordinate volunteer efforts. tion emphasizes our commitment to the in Durango, and in April 2000 he was ap- As a result, however, Daniel died of the fever. Ukrainian people and the goal of Ukraine’s in- pointed as the divisional superintendent of the Financial contributions poured in from around tegration into the Western community of na- Western Slope Division of Foursquare Church- the nation to ‘‘build a living monument to his tions. es. Known for his passion and leadership, memory’’ and the Daniel Memorial Association As Chairman of the Helsinki Commission, I Reverend MacDonald spoke at youth camps, was formed and consolidated with the Orphan- have been a steadfast supporter of human retreats, conferences, and churches through- age in 1891. Daniel Memorial Home for chil- rights and democracy in Ukraine, and I value out the country; and wrote many songs of wor- dren was incorporated in 1893. independent Ukraine’s contribution to security ship. During the intervening years, the needs and stability in Europe. The stakes in the up- Mr. Speaker, it is my honor to pay tribute to have changed as society and the family struc- coming elections are high, not only with re- the life of Reverend Gary MacDonald before tures have changed, however, Daniel Memo- spect to the outcome, but also as a funda- this body of Congress and this nation. Rev- rial continues to support and provide for chil- mental indicator of Ukraine’s democratic de- erend MacDonald was a kind and devoted dren as far as their means and facilities will velopment. spiritual leader who did much to uplift the lives allow. Recent events have dramatically under- of his congregation. I would like to extend my Mr. Speaker, I am proud to be associated scored the need for this clear statement of re- heartfelt condolences to his family and mem- with the remarks concerning the history of this solve to support a truly democratic process in bers of his church as they mourn his passing.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00007 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.017 E05PT1 E748 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 HONORING ALBERT R. MORRIS cations, makes these deaths all the more trag- PAYING TRIBUTE TO ALTA ic. CASSIETTO HON. MICHAEL N. CASTLE I hope that our efforts through this bill and OF DELAWARE as well as the attention that we can bring to HON. SCOTT McINNIS IN THE HOUSE OF REPRESENTATIVES this disease through Asthma Awareness Day OF COLORADO education and outreach activities today and IN THE HOUSE OF REPRESENTATIVES Wednesday, May 5, 2004 throughout the weekend at the Omni Wednesday, May 5, 2004 Mr. CASTLE. Mr. Speaker, it is with great Shoreham Hotel will help us reduce the inci- pleasure that I rise today to recognize the dence of asthma and the fatality rate associ- Mr. MCINNIS. Mr. Speaker, I would like to achievements of Mr. Albert R. Morris, Presi- ated with it. With this kind of bi-partisan effort take this opportunity to pay tribute to Alta dent of A.R. Morris Jewelers in Wilmington, and supported at the state and local level, we Cassietto of Montrose, Colorado. Throughout DE. On behalf of the citizens of the First can make sure that every asthma patient has her fulfilling life, Alta has fulfilled many roles with great success, including being appointed State, I would like to pay tribute to this out- a chance to breath freely. Telluride’s first woman Postmaster. Her serv- standing individual, and extend to him our ice, both in her career with the Postal Service congratulations on being chosen as the 2004 f and her community involvement, is certainly recipient of the Small Business Council of HONORING THE RETIREMENT OF commendable and deserving of recognition by America’s Small Business Person of the Year RICHARD MICKA this body of Congress and nation. Award. Alta Cassietto was born in Cedaredge, Col- Mr. Speaker, for over 40 years, A.R. Morris HON. JOHN D. DINGELL orado in 1907. After traveling with her parents Jewelers has set the standard for business to their native Italy in 1908, the family returned OF MICHIGAN and civic leadership in Delaware. The Morris to Telluride at the outbreak of the First World family’s steadfast commitment to depend- IN THE HOUSE OF REPRESENTATIVES War. In 1927, as only a junior in high school, ability, integrity, quality, and trust has ce- Wednesday, May 5, 2004 Alta began to work as a reporter for the Tellu- mented A.R. Morris’ position at the pinnacle of ride Daily Journal. When economic conditions small business in Delaware, and as this award Mr. DINGELL. Mr. Speaker, I rise today to pay tribute to my dear friend, Richard ‘‘Dick’’ forced the paper to become a weekly in 1929, indicates, throughout the nation. Based on an Alta became the editor, a position she held unwavering commitment to his community, Mr. Micka, on the occasion of his retirement from La-Z-Boy Corporation after 36 years of distin- until 1934, when she became Telluride’s first Morris has proven that businesses can suc- woman Postmaster, a position she held for ceed, while still maintaining an individual rela- guished service. A longtime Monroe County, Michigan resi- thirty-six years until her retirement in 1970. tionship with their customers. Now, in A.R. In 1975 Alta moved to Montrose to better dent, Dick graduated from Monroe Catholic Morris’ second generation of family ownership, care for her mother. She has remained very Central High School in 1956. He then earned they continue to provide value and excellence active in the community, volunteering at the a bachelor’s degree in economics from the in their craft. Montrose Memorial Hospital and with the Re- It is with great pleasure that I offer the most University of Detroit in 1960. That same year, tired Seniors Volunteer Program. She has also heartfelt congratulations to Mr. Morris upon re- he was commissioned as a second lieutenant pursued her love of traveling, having crossed ceipt of this award. His tireless diligence and in the Air Force. For nearly three of his seven both the Atlantic and Pacific ten times. dedication to work and family should serve as years in the military, Dick served at Okinawa. Mr. Speaker, it is my privilege to pay tribute an example for all small businesses. Mr. He became a captain with the Medical Service to Alta Cassietto before this body of Congress Speaker, I commend Albert R. Morris for his Corps. and this nation. She is a truly great treasure exceptional leadership and I ask that we rec- Dick began his career with La-Z-Boy’s Mon- for her Montrose community and the State of ognize the substantial contributions his family roe Headquarters in 1968 as Factory Payroll Colorado. I sincerely thank her for her service. Supervisor. In 1970, he moved to inventory and business have made to the state of Dela- f ware. control, and then to the production-planning department in 1971. He was special projects THE WOOL SUIT AND TEXTILE f manager from 1974 to 1979, working closely TRADE EXTENSION ACT OF 2004 THE IMPORTANCE OF ASTHMA with the Fabric Processing Center. In this po- AWARENESS DAY sition, he was among the first to witness the HON. AMO HOUGHTON company’s computer-controlled system in OF NEW YORK HON. EDOLPHUS TOWNS Monroe, Michigan command a South Carolina IN THE HOUSE OF REPRESENTATIVES OF NEW YORK factory machine to mechanically choose and Wednesday, May 5, 2004 pick up a fabric roll from the thousands on IN THE HOUSE OF REPRESENTATIVES Mr. HOUGHTON. Mr. Speaker, today I am hand. In 1979, Dick was promoted to his cur- pleased to join my colleague from New York, Wednesday, May 5, 2004 rent position. As Vice President of Administra- LOUISE SLAUGHTER, introducing the ‘‘Wool Suit Mr. TOWNS. Mr. Speaker, I want to thank tion, Dick has dealt with the assets, patents, and Textile Trade Extension Act of 2004.’’ trademarks, and administrative functions of the Allergy and Asthma Network for holding This legislation extends and improves an ex- La-Z-Boy, but he is certainly best known for today’s 7th annual Asthma Awareness Day isting program designed to equalize the trade his service as La-Z-Boy’s community and civic and the Breath Freely Briefing to increase treatment provided to domestic manufacturers affairs director. asthma awareness. I also want to thank my of worsted wool suits. colleagues, Representative STEARNS, Chair- Dick has faithfully served many community Over the last decade a provision in our man BARTON, Representative TUBBS-JONES, organizations, including the Monroe County trade laws has had a devastating impact on Representative ENGEL and Representative Historical Commission, the United Way of the tailored clothing industry in the United KENNEDY for their leadership on this issue. Monroe County, and the Monroe County States—reducing employment by half. This I am proud to be an original cosponsor of Chamber of Commerce. provision effectively created a suit export in- H.R. 2023. I signed onto this bill because I un- He is also a noted conservationist. The dustry overnight in Canada and Mexico. Effec- derstand the life-altering effects of asthma. As Michigan United Conservation Club honored tively, finished suits were able to enter our you know, asthma is the 6th ranking chronic him with their Conservationist of the Year market duty-free, while our domestic pro- condition in the United States and the leading award in June 1974 for his efforts to save the ducers were forced to contend with a tariff of serious chronic illness of children in the United Pointe Mouillee State Game Area in Monroe more than 30 percent on the fine fabrics used States. County, Michigan. He is still very actively in- in their production. The African American community is dis- volved in efforts to restore Lake Erie wetlands, With a shrinking customer base the textile proportionately impacted by the effects of clean the lake of environmental contamination mills that once produced enormous amounts asthma. More than 3 million African Americans and restore native habitats and species. of worsted wool fabric reduced their fabric pro- currently have asthma. We are three times As Dick enters his retirement years, I would duction. Competition for supply and prices more likely than the general population to be ask that my colleagues rise and join with me paid to woolgrowers in turn were impacted hospitalized for asthma. Sadly, African Ameri- to wish him and his wife, Jeanne, a very negatively. cans constitute 26 percent of all asthma happy, healthy, and relaxing future. I would Our proposal builds on action taken by Con- deaths. The fact that asthma can be managed also like to thank him for his dedicated service gress in 2000 and 2002 to address this situa- with proper health care and appropriate medi- both to La-Z-Boy and the Monroe Community. tion. Under the existing legislation, domestic

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00008 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.020 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E749 suit makers, textile producers, and the domes- tional Eye Institute (NEI) and the Centers for It is the traditions of the long-established tic sheep industry received a combination of Disease Control and Prevention (CDC) have cultures that make Taos a proud community, tariff relief and incentives to stabilize employ- the resources they need to improve commu- a desirable place to live, and a wonderful ment and production in the United States. This nication and education campaigns, increase place to visit. Although the Town of Taos cele- program has been extremely successful, and surveillance, support epidemiology and pre- brates its 70th birthday this month, we must stopped the precipitous decline in employment vention research; and implement appropriate not forget that it is an area that has been in the tailored suit industry. program and policy changes. home to American Indians for nearly 1,000 However, these provisions expire next year. In order to ensure access to and availability years. The arrival of the Spanish Conquis- Because the suit industry must design their of treatment and rehabilitation services for in- tadores, led by Capita´n Hernan Alvarado on lines months in advance, the expiration of this dividuals with vision loss, we must support August 29, 1540, marked the beginning of the program will affect pricing and competitiveness programs at the Centers for Medicaid and three cultures that would eventually dominate much earlier than the close of 2005. Medicare Services (CMS) and the Department the area. Our proposal extends these provisions for of Health and Human Services (HHS) that re- Yet other newcomers emerged in the 18th an additional five years, and makes improve- move barriers and improve access to eye century with the arrival of French and Amer- ments in the program for all interested parties. exams currently covered under Medicare, ican traders. Taos, no more than a tiny moun- We are pleased to note that our legislation such as diabetic eye exams and glaucoma detain village, was transformed into a bustling has the strong support of the suit manufactur- tection for high risk populations. We must also trade center as wagon trains, frontier scouts ers, the garment workers’ union—UNITE, the strengthen the Medicare program to advance and mountain men gathered. Taos was also sheep association, and the textile industry. As coverage for vision rehabilitation services as the home of famous frontier scout Kit Carson, the domestic tailored clothing industry and provided by orientation and mobility special- who is commemorated in a state park and mu- wool textile mills continue to face significant ists, rehabilitation teachers, and low-vision seum. challenges maintaining employment and pro- therapists. The once geographically-isolated village be- duction as a result of an unleveled playing Finally, we must bolster our research efforts came more accessible when the Atcheson, field, an extension of this program is timely to improve our understanding of the eye and Topeka and the Santa Fe Railroad reached and vital to the continued health of this impor- visual system in health and disease, and to Santa Fe. The era of America’s love affair with tant manufacturing sector. develop the most effective means of preven- the West had begun. As tales of the region’s We hope our colleagues will join us in co- tion, treatment and rehabilitation. This report beauty spread, tourists, writers and artists sponsoring this legislation. provides the roadmap we need to raise aware- from the east discovered northern New Mexi- f ness about vision loss, give individuals the co’s uniqueness. Some settled permanently. tools they need to prevent it, and give hope to By the end of the Roaring Twenties, Taos IN SUPPORT OF THE NATIONAL the millions already suffering from vision loss had an established reputation as a thriving art VISION STRATEGY that better treatments for can be found. colony. Writer D.H. Lawrence is credited with As a co-chair of the Congressional Vision saying, ‘‘I think the skyline of Taos is the most HON. DAVID E. PRICE Caucus, I would like to thank all of the organi- beautiful I have ever seen. . .’’ Perhaps the OF NORTH CAROLINA zations involved in crafting this report, includ- most prominent resident of the 20th century IN THE HOUSE OF REPRESENTATIVES ing the American Academy of Ophthalmology, was none other than artist Georgia O’Keeffe. Wednesday, May 5, 2004 the American Optometric Association, the The incorporation of the Town of Taos CDC, Lighthouse International, the National began as a community-wide initiative after Mr. PRICE of North Carolina. Mr. Speaker, Alliance For Eye and Vision Research, the several large structure fires destroyed most of on behalf of the Congressional Vision Caucus, NEI and most importantly, Prevent Blindness the plaza buildings in existence at the time. I rise to recognize May as Healthy Vision America. Prevent Blindness America should Month, and to discuss the importance of the Community volunteers undertook an effort to be commended for spearheading this effort, organize a volunteer fire department, a com- recommendations of the Vision Problems Ac- for bringing together this coalition of experts, tion Plan, A National Public Health Strategy to munity water supply system and a municipal and for its almost century-long dedication to form of government to ensure stability over the the prevention of blindness and vision loss. preventing vision loss. Good vision is critical to conducting activi- long term. ties of daily living, and it affects developmental f Taos, sometimes described as ‘‘The Soul of the Southwest,’’ is a flourishing community learning, communication, work, health, and CELEBRATING THE 70TH ANNIVER- quality of life. Unfortunately, far too many peo- today in New Mexico. A hundred galleries SARY OF THE INCORPORATION showcase the works of artists past and ple are at risk for losing their eyesight. More OF THE TOWN OF TAOS, NM than 80 million Americans have a potentially present, local and international. Scattered blinding eye disease, 3 million have low vision, within walking distance around the plaza and 1.1 million are legally blind, and an additional HON. TOM UDALL along side streets lined with bright hollyhocks 200,000 are more severely visually impaired. OF NEW MEXICO and geraniums, the galleries invite thousands Despite the fact that half of all blindness can IN THE HOUSE OF REPRESENTATIVES of tourists each year. World-class contem- porary fine art, southwestern art, sculpture, ce- be prevented, far too many people do not Wednesday, May 5, 2004 have access to the care they need. If current ramic, crafts, jewelry, and weavings are long- trends continue, the number of blind and vis- Mr. UDALL of New Mexico. Mr. Speaker, I time economic staples of the town. ually impaired individuals will double by 2030. rise today to recognize an historic and out- Wheeler Peak at over 13,000 feet looks Healthy Vision Month, a component of standing community—Taos, New Mexico—and down on the world-class Taos Ski Basin. Dur- Healthy People 2010, is a national eye health to congratulate the residents on the celebra- ing the warmer months, the area provides a campaign to raise awareness about the var- tion of the town’s 70th anniversary. scenic chair lift and trails for hiking, biking, ious conditions that can affect eyesight and On May 7, 2004, the Town of Taos will horseback trips, llama treks and fishing. cause vision loss. Additionally, a coalition of commemorate the 70th anniversary of its in- Today, as in the past, Taos is a mecca for leading eye health experts have just released corporation as a general law municipality in a wide range of people who are attracted by the Vision Problems Action Plan, A National the State of New Mexico. This event will also its mystique, unique heritage, historical signifi- Public Health Strategy to provide our nation mark 389 years since the King of Spain colo- cance, and beauty. with a framework for preventing vision loss. nized the Taos area in 1615—five years be- Mr. Speaker, I could speak for hours on the This groundbreaking study recommends that, fore the Pilgrims landed in New England. rich history of Taos. Let me finish by saying in order to reduce the occurrence of vision Further, this will be the 209th anniversary that this special occasion is a time for all loss and its accompanying disabilities, we since the Don Fernando de Taos land grant Taosen˜os to honor 70 years of proud and must concentrate our efforts on three priority was declared an Ayuntamiento under the laws noble history. While we are grateful for the areas: prevention; access to care and treat- of the Spanish government in 1795. Finally, past seven decades, I know that the best is ment; and research. this will also mark 156 years since the Treaty yet to come. I ask that my colleagues join me Our public health and prevention campaign of Guadalupe Hidalgo was signed by the as we honor all the contributions Taos has must ensure that vision programs at the Na- United States and Mexico in 1848. made to New Mexico.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00009 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.023 E05PT1 E750 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 ARTICLE BY RABBI ISRAEL ute and praying at the Western Wall around and the paper’s support of freedom and de- ZOBERMAN the temple where Jesus left his mark, and mocracy. In 2000, he received an award from Yad Vashem’s Holocaust Memorial remind- former President Boris Yeltsin celebrating the ing the courageous and visionary pope of his HON. EDWARD L. SCHROCK own proud anti-Nazi saga and the Jewish paper’s 90th anniversary. In 2003 he was hon- OF VIRGINIA classmates he lost. And could I have honored ored at an event in Moscow for his efforts to IN THE HOUSE OF REPRESENTATIVES retiring Bishop Walter F. Sullivan at our preserve Russian culture in the United States. holiest service on Yom Kippur Eve? Our dear Wednesday, May 5, 2004 Mr. Weinberg is also a well-known philan- Catholic bishop, who has become a close thropist in the Russian-American community. Mr. SCHROCK. Mr. Speaker, I share the friend, held our Holocaust Torah scroll from He is the founder and President of the UJA- Czechoslovakia. He was instrumental in es- following article on behalf of a constituent, Federation Russian Division, which raises Rabbi Israel Zoberman. tablishing the new Holocaust museum in Richmond. funds for economically disadvantaged Russian What a golden opportunity Mel Gibson had Following Gibson’s penetrating film, Jew- Jews worldwide. With his wife Lilly, Mr. to introduce a significant note of much-need- ish children in Virginia Beach and elsewhere Weinberg helped raise funds to build several ed harmony into the alarming discord of a have been socially ostracized. Would Gibson polarized and fractured world community, projects in Israel, including a school for dislike to face the two high schoolers in my and even here at home, with heightened reli- abled children. In addition to his work the UJA, congregation who had swastikas left on their gious and political strife. I fear that he Mr. Weinberg is President of the Fund for the desks? And what might yet happen in a Eu- missed it. It happened—and to Gibson’s cred- rope that is experiencing the worst resur- Neediest Russian Immigrants. The fund was it he didn’t hide it—because so far he is pas- gence since the Holocaust of the virulent instrumental in building an emergency room sionately locked into the anti-Vatican II virus of anti-Semitism, as well as the vast and hospital in Israel, and was active in pro- stance which longs for the ‘‘good old days’’ Muslim world with its growing radicalism? viding assistance to Russian-American victims when the Mass was in Latin and Jews were On the eve of Passover and Easter’s shared of September 11th. Finally, Mr. Weinberg also not collectively free from the outrageous rejoicing in the divine gifts of renewal and serves as President of Litfundt, which provides charge of deicide (the killing of God). The resurrection, respectively for Jews and world-impacting crucifixion of a fellow Jew assistance for Russian-American artists and Christians, there is much that Gibson can so writers. historically resulted in the varied cru- ably do to help us build together God’s king- cifixion of millions of his brethren, including dom on earth of healing, hope and harmony I am pleased to stand here today to con- gas chambers, thus figuratively crucifying for all. There is much at stake and we are all gratulate Mr. Weinberg for his 40 years of the suffering Jesus time and again. in it together. Indeed Jesus’ message and mission of service to the Russian-American community Israel’s shalom have been tragically over- Rabbi Israel Zoberman, spiritual leader of and thank him for his commitment to freedom taken by history’s greatest and longest ha- Congregation Beth Chaverim in Virginia and democracy. He is a man of integrity and tred fueled by The Passion, so ironically to- Beach, is son of Polish Holocaust survivors. drive, and I wish him all the best now and in ward Jesus’ own flesh and blood. Jews are He is immediate past president of the Hamp- the future. still victims of nails spread in their bodies ton Roads Board of Rabbis. by suicide bombers. How in the world did f f Gibson cast that governor Pontius Pilate as a pussycat, manipulated by those scary-look- HONORING VALERY (LAWRENCE) PAYING TRIBUTE TO DAYNA ing, menacing rabbis that he after all ap- WEINBERG PRESIDENT, PUB- LEONARD pointed to high office? He surely knows that LISHER, AND EDITOR-IN-CHIEF all the Jews at that time were under terror- OF NOVOYE RUSSKOYE SLOVO izing Roman rule which gave rise to the fer- tile messianism so poignantly represented by HON. SCOTT McINNIS Jesus. HON. JERROLD NADLER OF COLORADO Gibson allowed his creative imagination to OF NEW YORK IN THE HOUSE OF REPRESENTATIVES really soar high, but at what price? Millions IN THE HOUSE OF REPRESENTATIVES will consider his take as gospel truth and Wednesday, May 5, 2004 perpetuate those stereotypical images pur- Wednesday, May 5, 2004 suing us, Jews and Christians, with so much Mr. NADLER. Mr. Speaker, I rise today to Mr. MCINNIS. Mr. Speaker, I would like to damage to both. Isn’t it time to loosen those recognize Valery (Lawrence) Weinberg, Presi- take this opportunity to congratulate Dayna destructive bonds of oppression? dent, Publisher and Editor-in-Chief of Novoye Leonard of Montrose, Colorado on being Gibson succeeded in resurrecting through Russkoye Slovo. On May 8th Mr. Weinberg the power of his artistic talent the ghosts named Youth of the Year by the Black Canyon that Catholics and Protestants courageously will be celebrating 40 years of service at Boys’ and Girls’ Club. The award, in its fifty- tried through revised doctrine and practice Novoye Russkle Slovo (New Russian Word). seventh year, recognizes contributions to fam- to bury in humanity’s graveyard of monu- Novoye Russkoye Slovo is the oldest and ily, community, school, and the club. Dayna mental sins and errors. But he also presents most widely read Russian-language daily will serve as a representative for the club for us with a precious opportunity to redouble newspaper in the United States. the remainder of the year, and it is my pleas- our ecumenical dialogue and sectarian edu- Born in the Ukraine in 1945, Mr. Weinberg ure to recognize her achievement today. cational efforts of all religions to prove that emigrated first to Poland, and then to the blood should lead to love, violence to vision, United States in 1964—the same year he A fifth grade student at Pomona Elementary and reality to redemption. began his career at Novoye Russkoye Slovo. School in Montrose, Colorado, Dayna was Perhaps now that Gibson’s risky financial named Youth of the Month by the Boys’ and investment—prompted by an evident deep From 1964–1982 he held numerous positions at the paper. He was named Executive Vice Girls’ Club in February 2003. This honor al- faith which I’m glad he found—has borne lowed her to compete for the honor of Youth substantial fruit, he would contemplate an- President in 1982 and President in 1986. In other version of The Passion that is less 1995, Mr. Weinberg founded and became of the Year. Dayna was selected Youth of the threatening to our common dream. It is high President of People’s Wave Radio (WYDM Year from fourteen other winners because of time to prove that religion can and should be 1380–AM), the only 24-hour, seven-day-a- her moral character, life goals and public a source of infinite goodness and not only of week Russian-Language radio station in the speaking ability, after a competition which in- inexhaustible evil. My own young congrega- world. cluded an essay, an interview, and a speech. tion met for 10 glorious years from 1985 to In addition to her participation in the Boys’ and 1995 at the most gracious Catholic Church of Under Mr. Weinberg’s leadership, Novoye Russkoye Slovo played an important role in Girls’ Club, Dayna is active in Black Canyon the Ascension in Virginia Beach. That in- Gymnastics, the Torch Club leadership pro- spiring interfaith model could not have hap- bringing democracy to the Soviet Union by pened without the reforms of Vatican II supporting Russian dissidents and publishing gram, as well as several community service when Pope John XXIII began and current their work. Former presidents from both polit- projects. Pope John Paul II enhanced the promising ical parties, including President Bill Clinton Mr. Speaker, I am honored to pay tribute to rapprochement with the Jewish people. and Ronald Reagan, have acknowledged the service and achievements of Dayna Leon- This sea change culminated in the Vati- Novoye Russkoye Slovo anniversaries and ard before this body of Congress and this na- can’s official recognition of the Jewish state, the Jews no longer rejected by the church’s noted the newspaper’s part in helping new im- tion; and to congratulate her on having the teaching of contempt condemning us to for- migrants adapt to life in the United States and distinction of being named Youth of the Year. ever be wanderers with Cain’s mark upon us. understand U.S. policy and democracy. Her dedication to improving herself and her The Polish pope’s visit to Israel’s eternal After the collapse of communism, the Rus- community are truly remarkable and I wish her capital Jerusalem witnessed his paying trib- sian government honored Mr. Weinberg for his all the best in her future endeavors.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00010 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.027 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E751 STATEMENT OF AMBASSADOR ter standards of life in larger freedoms. The The outcome of the second session of the LUIS GALLEGOS ON ‘‘INTER- work of the Organization in disability in its Ad Hoc Committee was the decision to elabo- NATIONAL DISABILITY RIGHTS: early period focused on improvement of the rate an international convention and to es- THE PROPOSED U.N. CONVEN- well-being of persons with disabilities to tablish the Working Group to draft a text meet their needs in the social context. In the that would form the basis for negotiations TION’’ BEFORE THE CONGRES- 1960s, initiatives within the disability com- on the convention, which will be submitted SIONAL HUMAN RIGHTS CAUCUS, munity and adoption by the United Nations to the Ad Hoc Committee at its third ses- MARCH 30, 2004 of the international human rights conven- sion, from 24 May to 4 June at he United Na- tions both in civil and political and eco- tions Headquarters in New York. nomic, social and cultural realms, resulted HON. TOM LANTOS III. THE WORKING GROUP OF THE AD HOC in a fundamental reevaluation of the rights COMMITTEE JAN. 5–16, 2004 OF CALIFORNIA of persons with disabilities within the con- IN THE HOUSE OF REPRESENTATIVES text of development. The growing concern The Working Group was chaired by the Permanent Representative of New Zealand, Wednesday, May 5, 2004 for the need of adopting a human rights perspective since 1970s were specifically ad- Don MacKay. It took into account all con- Mr. LANTOS. Mr. Speaker, on March 30th, dressed by the United Nations in adoption of tributions submitted to the Ad Hoc Com- the Congressional Human Rights Caucus held the declarations concerning the rights of mittee by States, observers, expert meetings, a groundbreaking Members’ Briefing entitled, persons with disabilities. United Nations bodies, regional commissions The human rights of persons with disabil- and intergovernmental organizations, as well ‘‘International Disability Rights: The Proposed as by non-governmental organizations U.N. Convention.’’ This discussion of the glob- ities became part of the international policy agenda in the 1980s since adoption of the (NGOs), independent experts and national al situation of people with disabilities was in- World Programme of Action concerning Dis- disability and human rights institutions. tended to help establish disability rights issues abled Persons by the General Assembly at its Members of the Working Group were of a as an integral part of the general human rights thirty-seventh session in 1982. The World diverse body of policy makers, legal practi- discourse. The briefing brought together the Programme transformed the disability issue tioners, disability advocates, and experts, human rights community and the disability from ‘‘social welfare’’ issue into that of inte- consisted of 27 representatives of govern- rights community, and it raised awareness in grating the human rights of persons with ments, one national human rights institu- disabilities in all facets of development. tion and 12 NGO representatives, mainly Congress of the need to protect disability The Standard Rules on the Equalization of from organizations of persons with disabil- rights under an international law to the same Opportunities for Persons with Disabilities ities, resulting in a broader and enhanced extent as other human rights through a bind- was adopted by the United Nations in 1993 to understanding of disability in the context of ing U.N. convention on the rights of people focus on the human rights perspective of the promotion and protection of the rights of with disabilities. World Programme of Action. Though the persons with disabilities in today’s society Our expert witnesses included Deputy As- Standard Rules was not a legal instrument, and in development. sistant Secretary of State Mark P. Lagon; the it has been widely used as a set of strategic Disability advocates, working side by side Permanent Representative of the Republic of guidelines to promote the rights of persons with experts in international law and other with disabilities. The international frame- relevant fields, helped to view the existing Ecuador to the United Nations, Ambassador works to promote the rights of persons with human rights norms and standards from a Luis Gallegos; the United Nations Director of disabilities were further advanced by a series disability perspective, which, in turn, pro- the Division for Social Policy and Development of 1990s United Nations development con- posed viable options to strengthen the exist- in the Department of Economic and Social Af- ferences and their respective five-year re- ing system for promoting and protecting the fairs, Johan Scho¨lvinck; the distinguished views, the Millennium Development Goals rights of persons with disabilities as well as former Attorney General of the United States, and other relevant international commit- to incorporate the disability perspective into former Under-Secretary General of the United ments. the human rights norms. Proposals to elaborate a convention on the (1) Summary of the meeting Nations and former Governor of Pennsylvania, rights of persons with disabilities were pre- the Honorable Dick Thornburgh; the President sented during the United Nations Decade of The Group identified possible approaches of the National Organization on Disability Disabled Persons (1983–1992), many of which and narrowed down the options, which re- (NOD), Alan A. Reich; Kathy Martinez, a have reflected reformulated concepts of dis- sulted in the draft text with options for consideration of the Ad Hoc Committee. The member of the National Council on Disabilities ability that have moved away from the traditional model of care, social welfare and draft text embodies successful collaboration (NCD); and a representative of the United among all the members of the Working States International Council on Disabilities medical support to a human rights framework. These proposals were required of fur- Group. It covers, in its 25 articles and the (USCID) and Executive Director of Mental Dis- ther study by the international community. Preamble, encompassing human rights prin- ability Rights International, Eric Rosenthal. The initiative on a comprehensive and in- ciples and norms, such as general principles As I had announced earlier, I intend to place tegral convention to promote and protect and obligations, equality and non-discrimi- the important statements of our witnesses in the rights of disabled persons is the result of nation, the right to work, and equal recogni- the CONGRESSIONAL RECORD, so that all of my a proposal made by President Vicente Fox of tion before the law with a disability focus. It colleagues may profit from their expertise, and Mexico during the fifty-sixth session of the also addresses disability-specific issues and concerns, such as accessibility, independent I ask that the statement of Ambassador General Assembly of the United Nations, which called upon the international commu- living, protection of persons with disabilities Gallegos be placed at this point in the CON- nity to combat poverty and social exclusion from violence and abuse, accessibility, edu- GRESSIONAL RECORD. with Mexico taking the lead in promoting an cation, personal mobility, social security Mr. Chairman, Members of U.S. Congres- agenda for development. The importance was and adequate standards of living, as well as sional Human Rights Caucus, Representa- highlighted to involve all citizens as stake- issues of inclusion, such as inclusion of dis- tives of the U.S. Administration, Represent- holders and that a just world must be inclu- abled children, disabled women and persons atives of Disability and Human Rights Orga- sive of all groups. For that reason, Mexico with multiple disabilities, promotion of posi- nizations, Ladies and Gentlemen: I am deep- had proposed the establishment of a ‘‘Special tive attitudes towards persons with disabil- ly honored by the invitation extended to me Committee’’ to study the elaboration of an ities, inclusion in the community, participa- to address you at this distinguished panel of international convention on promoting the tion in political and public life, and partici- the United States Congressional Human rights and dignity of persons with disabil- pation in cultural life, recreation, leisure Rights Caucus. ities, which was endorsed by General Assem- and sport. I regard the privilege of addressing you as bly resolution 56/168. (2) Analysis imposing upon me three obligations: first II. PROGRESS IN ELABORATING A ‘‘COMPREHEN- The draft text by the Working Group, re- that of discussing the background of the Ad SIVE AND INTEGRAL’’ INTERNATIONAL CON- flecting their diversity in background and Hoc committee on an international conven- VENTION approach, resulted in a broader and enhanced tion on the rights of persons with disabil- The outcome of the first session of the Ad understanding of disability in the context of ities; second, that of informing you of its on- Hoc Committee (29 July–9 August 2002) was a promotion and protection of the rights of going work and third my analysis concerning resolution, adopted by the fifty-seventh ses- persons with disabilities in today’s society development of an international convention sion of the General Assembly as resolution and in development. The work of the Group and the newly emerging disability rights 57/229 of 18 December 2002, on further action facilitated interpreting the existing human movement. related to elaboration of a comprehensive rights norms and standards from the dis- I. BACKGROUND and integral international convention. The ability perspective as well as incorporating The commitment of the United Nations to Committee, in close collaboration with dis- the disability perspective into the human promotion of the rights of persons with disability organizations and civil society orga- rights norms. abilities is deeply rooted in the goal of the nizations, reaffirmed the commitment to the Members of the European Union advocated Organization: realization of the Charter’s vi- goals set out before it by General Assembly that a proposed new convention should focus sion of a just and peaceful world and the bet- resolution 56/168. on the model of a non-discrimination human

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00011 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.030 E05PT1 E752 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 rights treaty, such as the Convention on ties Commission, Hong Kong SAR, Republic who govern our democratic nation, but on Elimination of all Forms of discrimination of China). the American people. And because of this su- against Women and the Convention on During the past two sessions of the Ad Hoc preme responsibility, it is our duty as a free Elimination of Racial Discrimination, which Committee and the most recent session of its people to work hard in preserving our rights would minimize proliferation of detailed Working Group in January 2004, US partici- for the future generations. This is my com- standards and mechanisms. Other Members, pants as government and NGO representa- mitment to America’s future. such as Mexico, Venezuela, Sierra Leone, tives, panelists, researchers or individual ad- My commitment to America’s future is to South Africa, Thailand, and Organizations of vocates played a major role in promoting the uphold the freedoms we were granted by the Persons with Disabilities, promoting, in rights of persons with disabilities. The inter- blood and sweat of our elders. For some, this most cases, the model of a comprehensive national community, along with the dis- may be as simple as voting on Election Day convention, such as the Convention on the ability communities worldwide, would have to empower a governing body capable of pro- Rights of the Child, emphasizing on the much to gain from the continuing and active tecting our rights. For others, their commit- specificities of the situation of persons with participation of the United States in the ment may lie in the front line, physically disabilities as their focus in elaborating the work of the Ad Hoc Committee and the stopping those who endanger the American Convention. newly emerging international disability way of life. Does this mean that the soldier’s The draft text by the Working Group, as it rights movement. blood runs redder than that of the simple stands now, is the result of a hybrid between CONCLUSION voter? Of course not; both hearts beat the two approaches and there are number of As a result of consultations at national, re- strongly with American pride and both souls complex issues and tasks left to the Ad Hoc gional and international levels concerning soar along with the majestic eagle. It is not Committee for its consideration. an international convention since the Ad what you are committed to, but how com- (3) The issue areas requiring close attention Hoc Committee was established, new net- mitted you are that counts. As for myself, I The following issues would require close works and communities of disability-sen- believe that I will perform whatever duties examinations and consultations by the Ad sitized policy makers, programme special- my nation calls on me to perform. I will be Hoc Committee as the views differed signifi- ists, academics and advocates have emerged. just as pleased if I can donate to a helpful cantly among the Members: definition(s) of Together, they are contributing to a process cause, as I would be if I were to be called to disability and persons with disabilities; dis- of promoting and developing universal norms a foreign shore to fight for our rights. What- ability statistics and data collection; inter- and thereby contributing to implementation ever my responsibility, I will certainly be national cooperation; special and inclusive of the universal human rights for all. dedicated. education, and the monitoring mecha- The on-going international discourse on My commitment to America’s future is to nism(s). The Group did not cover the inter- disability rights in the process of elaboration educate my children and raise them in an en- national monitoring mechanism at this time of an international convention demonstrates vironment where they, too, can respect and and focused instead on national frameworks our common foundation—a fundamental as- cherish their American citizenship. As Theo- for implementation and monitoring of the piration of the humankind to establish an in- dore Roosevelt stated, ‘‘To educate a man in convention. tegrated community of its members based mind and not in morals is to educate a men- ace to society.’’ We must educate our future (4) The third session of the Ad Hoc Committee upon the principles of the universality of human rights—the fundamental freedoms, generation so that they may continue the The third session of the Ad Hoc Committee the dignity and worth of every human per- legacy of our grand country. If we do not will take place from May 24–June 4 at the son. teach them properly, they may lose sight of United Nations Headquarters in New York. As we strive to promote and protect the the importance of their freedom, and the The Ad Hoc Committee will have before it rights of persons with disabilities through rights we presently have may exist as just the draft text as a basis for negotiation of the work on an international convention, we unachievable aspirations. The path these the text of an international convention on are embarking upon a significant endeavour children traverse leads to America’s future. the rights of persons with disabilities. in translating the universality of the human Thus, we must keep them on this path and IV. THE SIGNIFICANT ROLE PLAYED BY U.S. rights into reality and taking a concrete ensure that they view the end of the journey LEADERS AND ADVOCATES IN DISABILITY step toward a just and equitable society. with the utmost respect and dedication. RIGHTS IN THE WORK OF THE INTERNATIONAL My most significant commitment to Amer- f COMMUNITY ica’s future would be to always keep my The commitment of the United States to MY COMMITMENT TO AMERICA’S American pride strong within my heart, for further goals of human equality and dignity FUTURE Coolidge never specified whether the for persons with disabilities has been dem- ‘‘unremitting effort’’ he mentioned should be onstrated in a number of legislative and pol- physical or spiritual. I believe that you must icy initiatives, such as American with Dis- HON. MIKE FERGUSON first achieve a spiritual dedication to the abilities Act (1992) and ‘‘New Freedom Initia- OF NEW JERSEY United States before you can move on, and tive’’ (2001), which resulted in a comprehen- IN THE HOUSE OF REPRESENTATIVES the more spiritually dedicated you are, the more American you become. And so, as long sive set of regulations and enforcement Wednesday, May 5, 2004 mechanisms and the new disability-sen- as the stars and stripes continue to wave sitized community—leadership of govern- Mr. FERGUSON. Mr. Speaker, I would like grandly over these fifty unified states, so, ment, organizations of disabilities, countless to submit a paper by Mr. James Rieder, Jr., of too, will my heart beat with pride for my nation. I conclude yet again with this small, advocates, scholars, practitioners in dis- Colonia, New Jersey, into the CONGRESSIONAL ability rights, as well as civic groups. I am yet powerful, phrase from Mr. Coolidge and I RECORD. I would like to offer my congratula- implore you to always remember it and keep delighted to see many of those leaders tions to Mr. Rieder on his accomplishment of present at this meeting today. Those leaders it in your heart, as I keep it in mine: ‘‘Free- have made extraordinary contributions not winning the 2004 Voice of Democracy broad- dom is not only bought with a great price; it only to their own society, but also to the cast scriptwriting contest. Following is the is maintained by unremitting effort.’’ work of the international community. paper that Mr. James Rieder, Jr., wrote: f Such outstanding contributions are exem- ‘‘The meaning of America is not to be plified in a wide range of activities from leg- found in a life without toil. Freedom is not A TRIBUTE TO JANE BAKER islative and policy initiatives, scholarship, only bought with a great price; it is main- research to advocacy at national, regional tained by unremitting effort.’’ (Thirtieth HON. TOM LANTOS and international levels: for example, one of President of the United States of America, OF CALIFORNIA the finest institutions of higher-learning in Calvin Coolidge) the United States, University of California Consider these words by the late former IN THE HOUSE OF REPRESENTATIVES at Berkeley co-organized with the United President. ‘‘The meaning of America is not Wednesday, May 5, 2004 Nations ‘‘The United Nations Consultative to be found in a life without toil.’’ In order Expert Meeting on international norms and to be a true American, one must not take Mr. LANTOS. Mr. Speaker, it is with great standards relating to disability (December his/her responsibilities lightly, and must in- honor and pride that I pay tribute to an ex- 1998). The work is considered as a first step stead strive to achieve not only what’s best traordinary woman, Jane Baker. For the past to consider promotion of the human rights of for himself/herself, but also what is good for twenty years Jane has been an inspiration to persons through the use of international nor- all, no matter the task at hand. ‘‘Freedom is those who wish to make positive change in mative framework, including implications of not only bought with a great price . . .’’ Our their communities, as she has dedicated her- an international convention on the rights of great nation was constructed from the ulti- self to serving both San Mateo city and Coun- persons with disabilities. A number of US mate sacrifices of others, their lives, but not participants and leading scholars partici- just our forefathers, but our grandfathers ty, located in my congressional district, pated in both Berkeley and its follow-up and fathers, as well. ‘‘. . . it is maintained through the various public service positions meeting (the Interregional Seminar on inter- by unremitting effort.’’ The United States she held. national norms and standards relating to does not only thrive on those who lost their Jane Baker was born in Hamilton, Ohio, and disability organized by the Equal Opportuni- lives on the battlefield, nor even on those after graduating from Purdue University, she

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00012 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.033 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E753 and her husband Bill moved to San Francisco. JUDGE WILLIAM B. BRYANT the annex to their court be named for Judge Shortly after moving to California, Jane hosted ANNEX TO THE E. BARRETT William B. Bryant. The residents of this city and produced a television cooking-show that PRETTYMAN FEDERAL BUILDING that Judge Bryant has served so well and the aired in San Francisco and San Jose, where AND UNITED STATES COURT- members of the bar here would be particularly she demonstrated easy meals that one could HOUSE pleased. I am delighted that Senator PATRICK make on an average night for the average LEAHY, ranking member of the Senate Judici- family. By 1963, the Bakers had settled in San HON. ELEANOR HOLMES NORTON ary Committee, has agreed to sponsor this bill Mateo, where they have resided ever since. OF THE DISTRICT OF COLUMBIA in the Senate and I urge rapid approval to give Mr. Speaker, Jane had always participated IN THE HOUSE OF REPRESENTATIVES honor to one of the great judges of our court. in community events, being very active in her Wednesday, May 5, 2004 f local Parents Teacher Association (PTA) and Ms. NORTON. Mr. Speaker, this bill has an TRIBUTE TO FORREST L. WOOD the Girl and Boy Scouts. Her commitment to unusual origin. The Chief Judge of the U.S. save open space on Sugarloaf Mountain in District Court for the District of Columbia, for San Mateo from overdevelopment prompted HON. MARION BERRY himself and the members of the trial court, vis- her to run for the San Mateo City Council in OF ARKANSAS ited my office to request that the annex under 1973. Her historic victory, at that time only the IN THE HOUSE OF REPRESENTATIVES construction for the E. Barrett Prettyman Fed- second woman ever elected to a City Council eral Building be named for senior U.S. District Wednesday, May 5, 2004 seat, was made more dramatic by the fact that Court Judge William B. Bryant. Judge Bryant Mr. BERRY. Mr. Speaker, I rise today to she captured more votes than two male in- was unaware of the desires and actions of his cumbents. Jane’s traditional smashing ways honor an Arkansan who loves this country as colleagues, who unanimously agreed to re- much as any person I’ve ever met. Forrest L. continued when she became the first-ever fe- quest that the annex be named for the judge. male mayor of the city of San Mateo. During Wood is an entrepreneur who has proved It is rare that Congress names a courthouse Americans can get as far in life as their talents the twenty years that Jane Baker served on or an annex for a judge who has served in the San Mateo City Council she remained de- will take them. that court and even more rare for a judge who It was his own fortitude that made Ranger voted to public service and although people is still sitting. Judge Bryant’s colleagues, who encouraged her to run for higher offices, such Boat Company what it is today. The company know his work and his temperament best, was founded in 1968 and almost as quickly as State Senate and Congress, Jane declined have found a particularly appropriate way for because she recognized the value of local was destroyed by fire in 1971. With no insur- our city and our country to celebrate the life ance and armed only with 60 salvaged boat government and the closer relationship to the and accomplishments of a great judge. I know public that comes with it. orders, the Wood family nailed a telephone to Judge Bryant personally, I know his reputation a scorched tree, cleaned off the blackened Jane Baker’s commitment to community in this city and on the law, I know that the re- site and began rebuilding. Within 40 days the service did not merely stop at being an elect- quest to name the annex for Judge Bryant re- company was back in operation building ed official, as her drive and energy led her to flects deep respect for his unusually distin- boats. serve on many boards and commissions. The guished life at the bar. Mr. Wood’s simple business philosophy con- number of boards and commissions that Jane Judge Bryant began his career in private tinues to drive the Ranger Boat Company served on is incredible. She represented the practice in the segregated Washington of the today, ‘‘You must build a good product—price cities of San Mateo on the Bay Area Metro- 1940s and 50s, when African-American law- it fairly—let folks know you have it, and treat politan Transportation Commission and served yers were barred from membership in the Dis- your customers right.’’ as Chair from 1993 to 1995. Jane also chaired trict of Columbia Bar Association and from In addition to his many business achieve- the San Mateo County Transportation Author- using the Bar law library. He established his ments, all leading to revolutionizing the Bass ity for two years and was a member of the legal reputation as a partner in the legendary Fishing Boat industry, Mr. Wood is an aggres- Joint Powers Board-CALTRAIN. Additionally, African-American law firm of Houston, Bryant sive conservationist. His efforts to save the she served on the Association of Bay Area and Gardner and taught at Howard University environment for sportsmen are as legendary Governments for ten years, from 1975 to Law School. His reputation as an extraor- as the equipment he provides them to enjoy 1985. dinary trial lawyer led to his appointment as those lands. As a result, in 1998, he was In addition to her dedication to local govern- the first African-American Assistant U.S. Attor- ney for the District of Columbia. He rose to named to the Arkansas Game and Fish Com- ment service, Jane was an active member of mission. various statewide and national organizations. become the first African-American to serve as Chief Judge of the U.S. District Court whose Mr. Wood, his wife, Nina Kirkland, and their The litany of those organizations is too large four daughters work together, simultaneously to list in its entirety, but includes; the Board of members now ask that the annex be named for Judge Bryant. running a cattle ranch, construction company, Directors of the National League of Cities, the and fishing guide operation. Unlike so many State Job Training Coordinating Council, the For his representation of criminal defend- ants in private practice, Judge Bryant was ad- other business success stories, Mr. Wood’s American Association of University Women, drive is based on a true desire to further his California Elected Women for Education and mired as one of the city’s best and most respected lawyers. Among his many notable community and this country. On behalf of the the Women’s Association of the First Pres- Congress, I extend gratitude for all the Wood byterian Church of San Mateo. cases is the landmark Mallory v. United States, 354 U.S. 449 (1957), where the Su- family does to make the world a better place. As one would expect, Jane Baker has been preme Court ruled that an arrested person f honored for her numerous achievements by must be promptly brought before a judicial offi- many of the organizations, including being RECOGNIZING AN EXTRAOR- cer. named Safety Woman of the Year by the San Judge Bryant graduated from D.C. public DINARY CITIZEN, DR. NEARI Mateo Safety Council. She was also chosen schools, Howard University and Howard Law FRANCOIS WARNER as an Outstanding Graduate by the Purdue School, where he was first in his class. After University School of Consumer and Family graduation, Judge Bryant served as chief re- HON. RODNEY ALEXANDER Services and inducted into the San Mateo search assistant to Dr. Ralphe Bunche when OF LOUISIANA County Women’s Hall of Fame in 1999. Bunche worked with Gunnar Myrdal, the fa- IN THE HOUSE OF REPRESENTATIVES Mr. Speaker, Jane Baker was often hailed mous Swedish economist, in his studies of Wednesday, May 5, 2004 as a maverick mayor because she wasn’t American racial issues. Judge Bryant served afraid to speak her mind. In an era where in the U.S. Army during World War II and was Mr. ALEXANDER. Mr. Speaker, I rise today women were often seen and not heard in City honorably discharged as a Lieutenant Colonel to recognize an extraordinary citizen from the Hall Jane helped shatter the glass ceiling. A in 1947. Fifth District of Louisiana, Dr. Neari Francois true pioneer for women’s rights, Jane Baker Judge Bryant, who is 92, took senior status Warner, who will soon be retiring as acting has diligently served San Mateo for over 20 in 1982. He raised a family but, as Chief President of Grambling State University. Dr. years. I know that I will not be the only one Judge Thomas Hogan wrote, ‘‘lost his beloved Warner’s tireless service and genuine commit- to miss her presence in our city government. wife, Astaire and now lives alone—with this ment to education, and to GSU, her alma I extend my very best wishes to her and hope Court and the law as the center of his life.’’ mater, are remarkable and inspiring. she finds the future as rewarding as her years I am grateful to our judges of the U.S. Dis- In January 2001, Dr. Warner became the of public service. trict Court here for the thoughtful proposal that first female to hold the title of acting president

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00013 Fmt 0626 Sfmt 9920 E:\CR\FM\K05MY8.014 E05PT1 E754 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 of Grambling State University, a position she of blind and visually impaired individuals will CINCO DE MAYO held with great honor and distinction for three double by 2030. years. In this short period of time, Dr. Warner That is why it is so important that we have HON. CHARLES W. STENHOLM successfully obtained 100-percent accredita- the insight to address these concerns now. OF TEXAS tion of Board of Regents-mandated programs, IN THE HOUSE OF REPRESENTATIVES And, what better way to do that than to high- from 87 percent when she accepted the posi- Wednesday, May 5, 2004 tion. Under Dr. Warner’s leadership, six en- light May as Healthy Vision Month—a national dowed professorships and a mini college by eye campaign to raise awareness about the Mr. STENHOLM. Mr. Speaker, today I the Division of Continuing Education were es- various conditions that can affect eyesight and would like to reflect on this important day in tablished. She also took the leading role at- cause vision loss. A component of Healthy history where a relatively small group of val- taining the unconditional reaffirmation of Ac- People 2010, this initiative will undoubtedly iant men met and overcame tremendous odds creditation by Southern Association Colleges serve as a catalyst to highlight the horrors of to bring hope and unity to a struggling nation. On Cinco de Mayo, 1862, General Zaragoza and Schools at Grambling State University. serious vision problems. led an untrained and outmatched group of Dr. Warner has shown many noteworthy ac- Additionally, it is important that we highlight complishments throughout her tenure at GSU. 2,000 Mexican fighters to defend the town of the recently released report, Vision Problems Puebla against the French. Under the com- The Fall 2003 enrollment showed the first in- Action Plan, a National Public Health Strategy. crease in three years, and retention rates in- mand of Napoleon III, these 6,000 French sol- Developed by a coalition of leading eye health creased system-wide and campus-wide. Under diers were among the best-trained and best- experts, including Prevent Blindness Amer- her leadership, funding was raised and equipped armies in the world. However, their groundbreaking began on the new Health, ican, the Centers for Disease Control and Pre- sophisticated armor and weapons were no Physical Education and Recreation Building vention, Lighthouse International, the Amer- match for the iron will and solidarity of the and Multi-purpose Center. Additionally, Dr. ican Optometric Association, and the Amer- Mexican people. Their victory became a symbol of the pride Warner signed several strategic partnerships ican Academy of Ophthalmology, this report and patriotism of the Mexican people, who de- in distance learning and created student and will provide our nation with a framework for fended themselves against a superior force. In faculty computer labs. preventing vision loss. the United States, Cinco de Mayo has become I thank Dr. Warner for her outstanding con- In addition to its focus on preventing vision a celebration of the achievements and rich tributions to the university and to our commu- loss, this groundbreaking study also rec- contributions Hispanics have made to our nity and am proud to recognize her notable ommends that in order to reduce the occur- great nation, as well as a reminder of the val- accomplishments and manifold contributions. I rence of vision loss and its accompanying dis- ues and freedoms all Americans hold so dear. extend congratulations to Dr. Warner and best abilities, our nation must concentrate on ac- Hispanics in my Congressional District, and wishes for her future endeavors as she retires cess to care and treatment including rehabili- across the nation, have added much to the from acting president of Grambling State Uni- tation and research. The report also states cultural fabric of our country. As the fastest- versity. that we must ensure that vision problems at growing minority population in the nation, they f the National Eye Institute and Centers for Dis- are a driving force in the U.S.—economically, RECOGNIZING MAY AS HEALTHY ease Control and Prevention have the re- politically, and socially. VISION MONTH sources they need to improve communication That is why I am proud to cosponsor House and education campaigns and prevention re- Concurrent Resolution 163, a resolution which HON. MIKE McINTYRE search. recognizes the historical significance of Cinco To better ensure access to and the avail- de Mayo and calls upon the American people OF NORTH CAROLINA to observe the date with appropriate festivities. ability of treatment and rehabilitation services IN THE HOUSE OF REPRESENTATIVES I know in West Texas, folks are participating for individuals with vision loss, the report rec- Wednesday, May 5, 2004 in local festivals and gatherings to commemo- ommends the importance of supporting pro- rate Mexico’s victory at Puebla. Mr. MCINTYRE. Mr. Speaker, I rise today to grams at the Centers for Medicaid and Medi- recognize May as Healthy Vision Month and to Hispanics share with other Americans the care Services and the Department of Health common goals of freedom, opportunity, and a highlight the important recommendations of and Human Services that remove barriers and the Vision Problems Action Plan, a National chance to build a better life. I am happy to be improve access to eye exams currently cov- Public Health Strategy as a way to prevent here and remember this momentous day as ered under Medicare, such as diabetic eye blindness and vision loss. we are reminded that all people—regardless As Proverbs 29:18 states, ‘‘Where there is exams and glaucoma detection for high risk of their race, color, creed, or gender—deserve no vision, the people perish.’’ populations. the opportunity to experience liberty, freedom As the son of an optometrist and someone The report also recommends bolstering our and the right to self-determination. America who has focused carefully on proper eye care, research efforts to improve our understanding stands behind these ideals and appreciates the contributions of Hispanics everywhere. I know that good vision is critical to conducting of the eye and visual system in health and dis- activities of daily living. Vision not only affects ease, as well as developing the most appro- f our ability to learn and work, but it also affects priate and effective means of prevention, and INTRODUCTION OF THE MARY our ability to adequately communicate with access to treatment and rehabilitation. McLEOD BETHUNE COUNCIL others. Therefore, it is essential that we in Finally, it’s about improving our eyesight. HOUSE NATIONAL HISTORIC SITE Congress have the foresight and insight to put BOUNDARY ADJUSTMENT ACT— Working in conjunction with Healthy Vision forth measures that will improve our eyesight. MAKE A HISTORICAL SITE MORE Month, the Vision report will undeniably pro- And, by encouraging awareness, early diag- ACCESSIBLE TO TOURISTS nosis and prevention of eye disorders, I am vide the roadmap that is necessary to raise confident that we can. awareness about vision loss, provide individ- HON. ELEANOR HOLMES NORTON First, it’s about having the foresight to rec- uals with the tools they need to prevent it, and OF THE DISTRICT OF COLUMBIA ognize the problems associated with eye dis- give hope to the millions already suffering IN THE HOUSE OF REPRESENTATIVES orders. Unfortunately, far too many people are from vision loss that better treatments can and Wednesday, May 5, 2004 at risk for losing their eyesight. In fact, more will be found. I applaud those who played an than 80 million Americans have a potentially integral role in developing this report, and I Ms. NORTON. Mr. Speaker, today I am in- blinding eye disease, 3 million have low vision, look forward to working with my colleagues to troducing the Mary McLeod Bethune Council 1.1 million are legally blind, and an additional adopt its recommendations. House National Historic Site Boundary Adjust- 200,000 are more severely visually impaired. ment Act. This is the original home of the Na- In my state of North Carolina, over 6 million As a member of the Congressional Vision tional Council of Negro Women founded by people over the age of 18 have some case of Caucus, I recognize the severity of eye dis- the great Mary McLeod Bethune. Ms. Bethune vision impairment or age-related eye disease. orders and the risks associated with not hav- is also the legendary founder of the historically However, despite the fact that half of all blinding regular check-ups. At the very least, prop- black college, Daytona Normal and Industrial ness and some eye disorders can be pre- er eye care should be a basic component of Institute for Negro Girls, now Bethune- vented, far too many people do not access the adequate health care. Today, I stand com- Cookman College, and she played a powerful care they need. If nothing is done, the number mitted to making it a national priority. role in the Roosevelt Administration.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00014 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.037 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E755 The Bethune Council House, declared a Na- In addition, under Ms. Wright’s guidance vented, far too many people do not access the tional Historic Site by Congress in 1982, was and direction, Maple Avenue School and stu- care they need. If nothing is done, the number acquired by the National Park Service (NPS) dents have been at the forefront of a number of blind and visually impaired individuals will in 1994. The Bethune Council House, a his- of innovative initiatives such as Law Day, Ca- double by 2030. toric house museum, features original fur- reer Day, Instrumental and Choral Music pro- That is why awareness, early diagnosis and niture, photographs and facsimiles of historic grams, the Talented and Gifted Program, and prevention are so important. Healthy Vision documents from the National Council of Negro a school wide Science Fair. Maple Avenue Month, a component of Healthy People 2010, Women (NCNW). This legislation is needed School students have represented the school is a national eye health campaign to raise for two reasons. First, the Bethune House is in the district Science Fair, Math Fair, and awareness about the various conditions that not handicap accessible, and as a historic Technology Fair, and have consistently won can affect eyesight and cause vision loss. building, it would be impossible to alter the local and regional Art awards. In addition, their Additionally, a coalition of leading eye health house in any way without endangering its his- debate team has been City Champion for sev- experts, including Prevent Blindness America, toric nature. This bill would extend the current eral consecutive years and their basketball the Centers for Disease Control and Preven- boundary of the Bethune House by authorizing team played in the 2003 District Championship tion, Lighthouse International, and the Amer- ican Academy of Ophthalmology, just this the NPS to acquire the abutting property to finals. allow handicapped accessibility. Second, the During Ms. Wright’s time as Principal, Maple week have released the Vision Problems Ac- tion Plan, A National Public Health Strategy, to bill provides space for administrative offices Avenue School has also been recognized by provide our nation with a framework for pre- for the NPS to conduct duties related to the the district for achievements in Literacy, venting vision loss. Bethune Council House. Science, and Math. Based upon 8th grade This legislation is needed to carry out the This groundbreaking study recommends GEPA scores for the past two years, Maple that, in order to reduce the occurrence of vi- important mission of the Bethune Council Avenue School has been cited as one of the House. The Bethune legacy is carried forward sion loss and its accompanying disabilities, top 5 schools and one of the top 10 schools, our nation must concentrate our efforts in today by the nation’s most prominent civil respectively, in the district in Literacy. During rights leader, Dr. Dorothy Height, Chair and three priority areas: prevention/public health, the same time period, Maple Avenue School access to care and treatment including reha- President Emerita of the NCNW, who recently has been recognized as one of the most im- received the Congressional Gold Medal of bilitation, and research. proved schools and as one of the top 10 Our public health and prevention campaign here in the Congress. Consequently, this bill schools in the district in Science. During the must ensure that vision programs at the Na- honors both of these heroes of our country by 2001–2002 school year, Maple Avenue School tional Eye Institute (NEI) and Centers for Dis- assuring that the first home of the organization has been one of the top 10 most improved ease Control and Prevention (CDC) have the to which they dedicated their lives is acces- schools in Math, according to ESPA scores, resources they need to improve communica- sible to all Americans. I ask that the House and has been a past winner of the Math Olym- tion and education campaigns, increase sur- pass this bill promptly. pics and most recently went to the district veillance, epidemiology and prevention re- f semi-finals. search; and implement appropriate programs, TRIBUTE TO MS. ESTHER WRIGHT Maple Avenue graduates are accepted into policies and systems changes. the Newark Public School’s Magnet High In order to ensure access to and availability HON. DONALD M. PAYNE School Programs; Arts High; Science High; of treatment and rehabilitation services for individuals with vision loss, we must support OF NEW JERSEY University, Technology, and Essex County Vo- programs at the Centers for Medicaid and IN THE HOUSE OF REPRESENTATIVES cational High School; as well as area Private and Catholic High Schools at a rate of 30 per- Medicare Services (CMS) and the Department Wednesday, May 5, 2004 cent. Many more participate in Magnet Career of Health and Human Services (HHS) that re- Mr. PAYNE. Mr. Speaker, Ms. Esther Dolo- Academies, which provide transition into move barriers and improve access to services res Wright has dedicated her life to the service skilled career opportunities after High School. covered under Medicare. of others as an educator for over 40 years. I salute Ms. Wright for her dedication to the Finally, we must bolster our research efforts She began her teaching career in Newark, students, parents, and teachers in our commu- to improve our understanding of the eye and N.J. in 1964, and over the years, she has lit- nity, and I am proud to have her in my district. visual system in health and disease, as well erally touched thousands of lives in a positive Mr. Speaker, please join me in extending my as developing the most appropriate and effec- way. Ms. Wright received her Masters of Arts thanks to Ms. Wright for her lifetime of public tive means of prevention, and access to treat- in Education with a concentration in Adminis- service, and I invite my colleagues to join me ment and rehabilitation. tration and Supervision from the University of in recognizing the achievements of the Maple This report provides the roadmap we need Virginia in May, 1976. She has served the stu- Avenue School. to raise awareness about vision loss, give individuals the tools they need to prevent it, and dents, parents, and teachers of Maple Avenue f School as an Administrator for over 15 years. give hope to the millions already suffering During her tenure as Principal of Maple Av- IN SUPPORT OF THE NATIONAL from vision loss that better treatments can be enue School, she has presided over many im- VISION STRATEGY found. portant changes to the school facility and pro- I would like to thank all of the organizations grams, including complete renovations to the HON. PATRICK J. TIBERI involved in crafting this report, including the American Academy of Ophthalmology, the school auditorium, gymnasium, and play- OF OHIO American Optometric Association, the Centers ground area, as well as the establishment of IN THE HOUSE OF REPRESENTATIVES a state of the art science lab and the creation For Disease Control and Prevention, Light- of a computer network, which provides internet Wednesday, May 5, 2004 house International, the National Alliance For access to all of Maple Avenue School’s pri- Mr. TIBERI. Mr. Speaker, as a founding Eye and Vision Research, the National Eye In- mary and middle school students. They have member of the Congressional Vision Caucus, stitute (NEI) and most importantly, Prevent implemented a distance learning program in I rise to recognize May as Healthy Vision Blindness America. Prevent Blindness Amer- conjunction with the New Jersey State Depart- Month, and to discuss the important rec- ica should be commended for spearheading ment of Education, which recognized Maple ommendations of the Vision Problems Action this effort, for bringing together these various Avenue School with a ‘Best Practices’ award. Plan, A National Public Health Strategy as a groups, and for its almost century-long tradi- She has continued to provide support for inno- way to prevent blindness and vision loss. tion of preventing vision loss. vative programs to encourage student Good vision is critical to conducting activi- f achievement such as the Morning, After ties of daily living, is a portal for language, and INTRODUCTION OF THE COLLEGE School, and Saturday Academy enrichment affects developmental learning, commu- ACCESS & OPPORTUNITY ACT programs; character development programs nicating, working, health and quality of life. such as Best Friends for girls and Best Men Unfortunately, far too many people are at for boys; the Afternoon and Evening After risk for losing their eyesight. More than 80 mil- HON. JOHN A. BOEHNER OF OHIO School Youth Development Programs, which lion Americans have a potentially blinding eye IN THE HOUSE OF REPRESENTATIVES serve the student and community populations; disease, 3 million have low vision, 1.1 million and Project ACCEL, which reduces high are legally blind, and an additional 200,000 Wednesday, May 5, 2004 school drop out rates and retention rates for are more severely visually impaired. Despite Mr. BOEHNER. Mr. Speaker, in 1965, High- students. the fact that half of all blindness can be pre- er Education Act was established to assist low

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00015 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.041 E05PT1 E756 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 and middle income students striving for a Because Minority Serving Institutions play based simply on the date the loans are con- higher education. It was as simple as that; the an important role for expanding college ac- solidated. The variable interest rates for con- law was put into place to ensure college access, the bill makes a number of reforms de- solidation loans will ensure all consolidation cess for those who might not otherwise be signed to strengthen these institutions and borrowers have access to low rates while able to afford it. allow them to better serve their students. For being protected from interest rates that rise In the last two years, I and other members instance, the bill would make it easier for too high through an interest rate cap. of the Committee on Education & the Work- these schools to use technology to improve In addition to ensuring consolidation loans force have worked tirelessly to craft higher education, and would reduce red tape that are provided under the current successful vari- education legislation that will live up to that creates unnecessary burdens as they apply able rate structure, the bill will also prevent original mission. Our number one priority is, for grants. other student loans from moving to a fixed and must be, expanding college access for Importantly, the bill would make the student rate as they would in 2006 unless we take ac- current and future students. aid funding provided through the campus- tion to prevent that change. Without pre- Today’s introduction of the College Access based aid programs more fair and equitable. serving the current variable rate structure for & Opportunity Act represents the culmination By phasing out unfair advantages given to these loans, borrowers would be forced to pay of those efforts. We are pleased to be offering older, more well-established schools, the Col- 6.8 percent interest rates on all loans. With a bill that ensures students are priority number lege Access & Opportunity Act would ensure borrowers today paying 2.82 percent in school one, and are proud to have worked closely these funds are targeted to the students who and 3.42 percent in repayment, it would be with the stakeholders of America’s higher edu- need them the most. shameful to impose an arbitrary fixed interest cation system to have produced legislation Chief among our principles for reforming rate that would double the rate available to that meets our principles of access, afford- higher education was the need to increase ac- borrowers today. ability, accountability, and quality; abiding by countability, and the College Access & Oppor- While strengthening the loan programs to these principles has produced a measure that tunity Act includes a number of steps that will better serve borrowers, the College Access & will ultimately ensure fairness for low and mid- accomplish that goal. By empowering the con- Opportunity Act will also protect the credit his- dle income students. sumers of higher education—students and tory borrowers earn while repaying these The College Access & Opportunity Act in- parents—with information, we will ensure they loans. The bill will require lenders to report cludes comprehensive reforms that will can fully exercise their power in the market- federal student loan information to all national strengthen Pell Grants, student aid, college place of higher education. Be it adding trans- credit bureaus, ensuring borrowers are given access, and Minority Serving Institutions. The parency to college costs or adding sunshine to the positive credit history they earn by repay- bill will reduce loan costs and fees for stu- the accreditation process, the bill will give con- ing their student loans. dents, and eliminate red tape for students and sumers access to significant new information Recognizing that the face of America’s high- graduates. The College Access & Opportunity to help them make their own best decisions er education system has changed significantly Act also includes steps to remove barriers for about higher education. in recent years—both the students and the in- non-traditional students, and importantly, will The College Access & Opportunity Act also stitutions that serve them—the bill will ensure empower consumers through increased sun- includes a number of significant reforms to the all colleges and universities are treated fairly shine and transparency in college costs and multi-billion dollar federal student loan pro- as they seek to better serve students. The bill accreditation. The bill will benefit students in numerous grams, with major steps to realign resources will repeal the unfair 90–10 rule, a requirement ways; in fact, there are far too many student in order to better serve low and middle income imposed only on proprietary schools. The 90– benefits for me to list individually today. How- students striving for a higher education. 10 rule was implemented as a safeguard, yet ever, I’d like to describe some of the highlights Federal student loans provide access to there is no evidence it reduces fraud and of the bill that will show just a few of the many low-cost funding that many students need to abuse and significant evidence that it may re- ways the College Access & Opportunity Act finance their higher education. The College duce access for the neediest students by forc- will expand college access for current and fu- Access & Opportunity Act will expand access ing schools to raise tuition or move out of ture students aspiring for the dream of a col- to this important resource in a responsible inner cities where many students are receiving lege education. manner that will not allow students to be bur- full federal funding. The College Access & Opportunity Act dened by unmanageable debt levels. The bill also recognizes the importance of strengthens college access programs, particu- The bill will update loan limits for first and distance education at the forefront of techno- larly those serving students who may struggle second year students, ensuring more money logical advancements that can give students to enter higher education. The bill enhances is available at the beginning of students’ stud- new opportunities to learn. By eliminating the TRIO and GEAR UP programs targeted to ies when loan limits are significantly lower and 50 percent rule, which restricts the number of first-generation, non-traditional and minority students may struggle with college costs. students that can be enrolled in distance edu- students, and ensures low-income working However, the bill will not increase the aggre- cation and the number of courses an institu- adults can also receive the valuable services gate borrowing limits, ensuring students are tion may offer via distance education, the Col- provided through these access programs. not saddled with higher overall debt levels. lege Access & Opportunity Act will increase In Pell Grants, which are the cornerstone of The bill also reduces origination fees for stu- access to quality higher education through al- federal need-based student aid, the bill in- dents, an important step that will ensure stu- ternate channels. The bill would maintain and cludes an initiative we call ‘‘Pell Grants Plus’’ dents have access to more of the money they even enhance safeguards to ensure the integ- to provide additional Pell Grant aid to needy borrow. rity of these programs, while removing restric- students who have completed a rigorous high In order to make these positive reforms that tions that prevent innovation and expanded school curriculum through the State Scholars provide students with greater access to stu- use of new technology for student learning. program. The proposal, similar to one offered dent loan resources, the bill includes signifi- Finally the bill will no longer include sepa- by President Bush in his FY 2005 budget re- cant realignment of federal resources within rate definitions of institution of higher edu- quest, would not only provide up to $1000 of the loan program. The bill would limit excess cation, placing all eligible schools on an even additional Pell Grant assistance to Pell-eligible subsidy payments made to lenders, changing playing field as they work to provide higher students, but would also serve as an incentive provisions in current law and requiring lenders education to their students. for more states to participate in the State to return excess income that can be better The College Access & Opportunity Act is Scholars program and prepare more students used to expand student access. important legislation that will help fulfill the to excel in higher education. The bill will eliminate the anti-consumer original mission of the Higher Education Act— The bill also repeals the unfair limit on Pell ‘‘single-holder’’ rule, which needlessly limits expanding college access. By placing students Grants called ‘‘tuition sensitivity,’’ which pun- consumers’ ability to shop around for the best as our first priority, we are bringing forward a ishes very low cost schools and the students deal on a consolidation loan by requiring bor- bill that I am proud to say will significantly im- who attend those schools by reducing their rowers to consolidate with their current lender prove higher education in America. I am Pell Grant aid they can receive. In addition, if that lender holds all their loans. The bill will pleased to be offering this legislation with my the College Access & Opportunity Act would also ensure consolidation loans are provided good friend Rep. McKeon, and am eager to permit year-round Pell Grants to allow stu- under the current variable interest rate struc- move forward with these important reforms to dents to accelerate their studies and graduate ture provided for other federal student loans, ensure access, affordability, accountability, sooner. eliminating unfair treatment of borrowers and quality.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00016 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.045 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E757 INTRODUCING THE IMPROVING AC- ive technology devices multiple times with toring of chemotherapy and the associated CESS TO ASSISTIVE TECH- multiple individuals; or assistive technology side-effects patients may experience. NOLOGY FOR INDIVIDUALS WITH device demonstration programs to teach peo- Today, more than two-thirds of cancer DISABILITIES ACT ple with disabilities about the variety of avail- cases strike people over the age of 65, and able assistive technology devices and how to the number of cancer cases diagnosed among HON. HOWARD P. ‘‘BUCK’’ McKEON use them. senior citizens is projected to double by 2030. At the same time, many of the community- OF CALIFORNIA These are important and necessary activi- based cancer centers are facing significant IN THE HOUSE OF REPRESENTATIVES ties and I am confident that states will continue to work with stakeholders in their com- barriers in hiring the specialized oncology Wednesday, May 5, 2004 munities to enhance or develop comprehen- nurses they need to treat cancer patients. It is Mr. MCKEON. Mr. Speaker, I rise today to sive programs that will provide tremendous estimated that there will be a shortage of 1.1 introduce the Improving Access to Assistive benefit to individuals with disabilities. In fact, million nurses in the year 2015. Technology for Individuals with Disabilities Act. we require that states do just that, so we are The Oncology Nursing Society (ONS) is the This legislation improves the Assistive Tech- ensuring that individuals with disabilities will largest organization of oncology health profes- nology Act to ensure that individuals with dis- continue to have important input in this pro- sionals in the world, with more than 30,000 abilities have access to assistive technology gram. registered nurses and other health care pro- services and equipment throughout their lives. I deeply appreciate the importance of assist- fessionals. Since 1975, the Oncology Nursing I would like to thank the gentleman from Ohio ive technology devices and services for indi- Society has been dedicated to excellence in patient care, teaching, research, administration (Mr. BOEHNER), the Chairman of the Com- viduals with disabilities. These devices can and education in the field of oncology. The mittee on Education and the Workforce, for his make a major difference in the lives of individ- Society’s mission is to promote excellence in assistance in bringing this bill to this point. uals with disabilities. Assistive technology can oncology nursing and quality cancer care. To Since 1988, the federal government has help individuals meet the challenges they face played an important role in helping states de- that end, ONS honors and maintains nursing’s every day, and through the use of assistive historical and essential commitment to advo- velop systems to provide access to assistive technology, an individual with a disability can technology devices and services for individ- cacy for the public good by providing nurses overcome almost any obstacle he or she and healthcare professionals with access to uals with disabilities. The original intent of this faces. the highest quality educational programs, can- program was to provide seed money for states I look forward to working with the members cer-care resources, research opportunities and to establish state-wide systems to help individ- of the Committee, other members of Con- networks for peer support. uals with disabilities. Since then all 50 states, gress, and other stakeholders as we craft leg- On behalf of the people with cancer and the District of Columbia, Puerto Rico, and the islation that will build upon and improve pre- their families in Minnesota’s 3rd Congressional outlying areas have established systems of vious reforms. These steps to strengthen as- District, I would like to acknowledge Eva Gal- some design and scope. In the original legisla- sistive technology programs will also com- lagher for her leadership within the Oncology tion, we wisely put in a sunset provision that plement our ongoing effort to ensure that chil- Nursing Society as a member of the ONS caused us to reexamine the role and scope of dren with disabilities receive a quality edu- Board of Directors. Through Eva’s and ONS’ the original program. cation. I urge my colleagues to join me in sup- leadership, our nation is charting a course that For the past 2 years, my subcommittee has port of the Improving Access to Assistive will help us win the war on cancer. been investigating this program; we have held Technology for Individuals with Disabilities Act. The ONS has 4 chapters in my home state a hearing on this important program, visited f of Minnesota. Located in the Bloomington, assistive technology centers, and discussed Esko, Hayfield and Milan areas, these chap- the benefits and drawbacks of the existing TRIBUTE TO EVA GALLAGHER ters serve the oncology nurses in the state program. We have sought broad input from AND THE ONCOLOGY NURSING and help them continue to provide high quality our friends across the aisle, from the disability SOCIETY cancer care to patients and their families in community, and from the state programs to our state. gain valuable insight into this program. As we HON. JIM RAMSTAD I commend the Oncology Nursing Society go through the legislative process we will con- OF MINNESOTA for all of its efforts and leadership over the last tinue to seek input from our friends on the IN THE HOUSE OF REPRESENTATIVES 29 years and thank the Society and its mem- other side of the aisle as well as our friends bers for their ongoing commitment to improv- Wednesday, May 5, 2004 in the disability community to make this a ing and assuring access to quality cancer care strong bill. Mr. RAMSTAD. Mr. Speaker, I rise today to for all cancer patients and their families. I urge In the bill we are introducing today, we are call attention to the important and essential my colleagues to support them in their impor- shifting the focus of the program to individuals role that oncology nurses play in providing tant endeavors. with disabilities. Our goal is to help states get quality cancer care. These nurses are prin- f more pieces of assistive technology into the cipally involved in the administration and moni- TRIBUTE TO THE OREGON hands of individuals with disabilities. This new toring of chemotherapy and the associated INSTITUTE OF TECHNOLOGY focus will expand the reach of the state pro- side-effects patients experience. As anyone grams by moving away from support of admin- ever treated for cancer will tell you, oncology istrative activities toward emphasizing the im- nurses are intelligent, well-trained, highly HON. GREG WALDEN portance of getting the technology itself to the skilled, kind-hearted angels who provide qual- OF OREGON individuals with disabilities that need it. ity clinical, psychosocial and supportive care IN THE HOUSE OF REPRESENTATIVES Although we are refocusing the program, we to patients and their families. In short, they are Wednesday, May 5, 2004 certainly recognize the importance of state integral to our nation’s cancer care delivery Mr. WALDEN of Oregon. Mr. Speaker, I rise flexibility, and our bill maintains that important system. today to share with you and my colleagues my element of the program. We direct states to Cancer is a complex, multifaceted and distinct pride in a winning institution in my dis- focus their efforts of putting technology into chronic disease, and people with cancer are trict, the Oregon Institute of Technology (OIT). the hands of individuals with disabilities. best served by a multidisciplinary health care Located in Klamath Falls, Oregon, OIT is na- We ask that States develop alternative fi- team specialized in oncology care, including tionally recognized for its high standards and nancing methods to enhance the ability of indi- nurses who are certified in that specialty. This results-oriented approach to education. The viduals with disabilities to access assistive year alone, 1.3 million Americans will hear the school motto, ‘‘First Hired, Highest Paid,’’ is no technology devices and services through low words, ‘‘You have cancer.’’ In addition, idle boast. A few years ago I had the honor of interest loans, interest buy-down programs, re- 556,000 will lose their battle with this terrible serving as commencement speaker during an volving loan funds, loan guarantee, or other disease. Every day, oncology nurses see the OIT graduation, and nearly all of the grad- mechanisms of the State’s choice. pain and suffering caused by cancer and un- uates I addressed had been offered high-pay- Additionally, we allow States to choose to derstand the physical, emotional, and financial ing jobs. develop: Assistive technology device loan pro- challenges that people with cancer face Ably led by President Martha Anne Dow, grams to support short-term loan programs of throughout their diagnosis and treatment. On- OIT pursues excellence in every aspect of the assistive technology devices to individuals with cology nurses play a central role in the provi- college experience, from research and tech- disabilities; assistive technology device reutili- sion of quality cancer care as they are prin- nology application to career-oriented instruc- zation programs (i.e., recycling) to use assist- cipally involved in the administration and moni- tion and competitive athletics.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00017 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.048 E05PT1 E758 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 Mr. Speaker, it is in the realm of athletics He began basic training at Fort Leonard Therefore, Mr. Speaker, I rise today to that OIT most recently demonstrated its cham- Wood, Missouri and eventually became a honor Shirley V. Edwards, and join with my pionship mettle when the men’s basketball motor transport operator assigned to the Regi- colleagues in the House of Representatives to team won the NAIA Division II National Title. mental Headquarters Troop, 2nd Armored recognize her extraordinary work in New York Seeded 16th, the OIT Hustlin’ Owls were not Cavalry Regiment, at Fort Polk, Louisiana. City’s public education system. favored to win, but when the final buzzer Pfc. Whitaker was deployed to Iraq in July f sounded they had proven themselves to be 2003. Although his family expected him home the best team in the nation among NAIA Divi- April 14, his tour was extended due to the in- TRIBUTE TO PROFESSOR F. JAMES sion II teams. Their series of upset victories crease in insurgent activity in Iraq. Two weeks ROHLF may have surprised some sportscasters, but it later a truck crashed into the back of his was no surprise to the fans of OIT who have Humvee, pushing it partially over the side of a HON. TIMOTHY H. BISHOP come to expect great things from the Hustlin’ bridge. Marquis Whitaker fell while attempting OF NEW YORK Owls under the phenomenal coaching of to climb to safety. IN THE HOUSE OF REPRESENTATIVES Danny Miles. Pfc. Whitaker joins 756 American troops Wednesday, May 5, 2004 Coach Danny Miles, a NAIA Hall of Fame who have given their lives to bring freedom to coach, took over a losing basketball program the people of Iraq. We mourn their loss and Mr. BISHOP of New York. Mr. Speaker, at OIT thirty-three years ago and never looked the promise of their futures, like that of Mar- today I rise to honor Professor F. James back. Racking up 734 career wins, Danny quis, were cut all too short. Rohlf, for his outstanding career as a scientist ranks 17th on the all-time career victory list. It Mr. Speaker and distinguished colleagues, I and professor at Stony Brook University, who is no surprise that this year he was named ask you to join me in honoring Pfc. Marquis was elected a Fellow of the American Acad- NAIA Coach of the Year, an honor that he Whitaker. I promise his mother Jacqueline, his emy of the Arts and Sciences in 2001. shares with his able staff: Mike Pisan, Doug father Anthony, his five sisters and two broth- Professor Rohlf’s current research is con- Kintzinger, Jarrod Davis, Milijia Mitrovic, and ers that Marquis will forever remain a hero in cerned with the development, evaluation, and Aristide Agnimel. the eyes of his country and that we will never application of new statistical methods for use Although Coach Miles is proud to have won forget the sacrifice he made in the name of in geometric morphometrics. Over the last few the national championship, he is even more freedom and democracy. years he has written papers demonstrating proud of the fact that he, his staff, his team, f how standard statistical methods such as prin- and the OIT fans won the James Naismith cipal components analysis, canonical variates Award for sportsmanship. This was not just a IN RECOGNITION OF SHIRLEY V. analysis, multiple regression, and other meth- victory of superior athleticism and coaching; it EDWARDS ods can be adapted for the analysis of shape. was a victory of strong character. His work also emphasizes the development I join the OIT family in my pride over senior HON. NYDIA M. VELA´ ZQUEZ of interactive computer software to perform the Kevin Baker’s winning the tournament’s Most OF NEW YORK unique computations needed in geometric Valuable Player award. Baker was also joined IN THE HOUSE OF REPRESENTATIVES morphometrics. This software also provides by teammates Florian Houget and Todd Mat- the special interactive graphical displays to en- thews on the All-Tournament team. It goes Wednesday, May 5, 2004 able users to visualize shapes and has made without saying that a championship perform- Ms. VELA´ ZQUEZ. Mr. Speaker, I rise today it possible for these new methods to be ap- ance involves every team member, so I also on the floor of the U.S. House of Representa- plied routinely by many biologists. want to share with you my pride in Hustlin’ tives to recognize the achievements of Shirley Due to the unfamiliarity of most biologists Owls Michael Nunes, Jared Hall, Levell Hesia, V. Edwards, a visionary and the principal of with the types of mathematics needed to un- Joe Billings, David Michaelis, Matt Johnson, EBC High School/Bushwick, Brooklyn in the derstand the methods used in geometric Elijah Page, and Alex Carlson, each of whom 12th Congressional District. morphometrics, many one to two week work- contributed so much to their team’s winning After 25 years of blight, Bushwick is experi- shops have been held in cities and universities effort. encing a renaissance. Despite this, it con- around the world, which Professor Rohlf has Mr. Speaker, for those who are familiar with tinues to suffer from a high rate of unemploy- organized or in which he has been the prin- the story of the Klamath Basin in my district, ment and poverty. Shirley Edwards, armed cipal lecturer. These programs are to teach you know the story of a strong, proud people with her education specialist background, the necessary techniques and to give potential who live their lives with heart and determina- knew she had a mission to fulfill. She under- users a chance to collect data, learn how to tion. It is no surprise that the bond between stood that education was the key to breaking use the software, and to interpret the results. OIT and the Klamath community is so strong. the cycle of poverty, and she dedicated herself Professor F. James Rohlf is also author and They share the character of winners who to the creation of EBC High School for public co-author of many publications. Early in his never, ever give up. We can all find inspiration service and academic excellence. career he received fellowships from U.S. Pub- from OIT’s achievements, many more of which For the last 10 years, Principal Edwards has lic Health Service to conduct predoctoral re- I expect to recognize in the future. called EBC High School/Bushwick her home, search in 1959–1962, and a National Science f serving as a mentor to both students and Foundation postdoctoral appointment in 1962. TRIBUTE TO PRIVATE FIRST teachers alike. She is said to have led EBC/ He has received many honors including: W.J. CLASS MARQUIS ANTOINE Bushwick down the ‘‘road not taken,’’ showing Eckert Visiting Environmental Scientist; IBM WHITAKER many in the community that it was possible to T.J. Watson Research Center; Professor Visi- leave an imprint when they had lost all hope. tant, Universidad Nacional del Litoral, Santa She was instrumental in creating an array of Fe, Argentina; Visiting Professor University of HON. SANFORD D. BISHOP, JR. innovative programs, leaving behind an impor- Rome ‘‘La Sapienza,’’ Dipartimento di Biologia OF GEORGIA tant legacy that forms the foundation of the Animale e dell’Uomo; and the election to the IN THE HOUSE OF REPRESENTATIVES high school. American Academy of Arts and Sciences. Wednesday, May 5, 2004 Principal Edwards, among her many positive Professor Rohlf held positions such as re- Mr. BISHOP of Georgia. Mr. Speaker, it is contributions, introduced students to the value search assistant in 1958–59, teaching assist- with a heavy heart that I rise today to pay spe- of public service and giving back to their com- ant in fall of 1959 and research associate in cial tribute to one of our nation’s many heroes, munity, encouraging them to make a real dif- the summer of 1962 at the University of Kan- Army Pfc. Marquis Antoine Whitaker. Pfc. ference. She witnessed first-hand how drugs, sas. He was visiting assistant professor of en- Whitaker lost his life April 27 while serving his crime and poverty devastated lives, and she tomology in the spring of 1965 and associate country in Iraq. He was only twenty years old. made it her mission to empower students and professor of statistical biology, 1966–69. And, A beloved son and brother, a proud Amer- to give them a second chance at earning an he was an assistant professor of biology at the ican and a devoted Christian, Marquis loved education and forging a better path for them- University of California, Santa Barbara 1962– football, music, his GMC Jimmy and his selves in the future. Principal Edwards moti- 1966. girlfriend, Tarai, who misses him very much. vated students to become enthusiastic lifelong Professor F. James Rohlf is interested in He graduated from Kendrick High School in learners and responsible adults. She truly and has been involved in the applications of 2002 and joined the Army only months later, changed lives—now over 90 percent of her mathematical methods and statistics (espe- to give back to his country and put his career graduating classes are pursuing college de- cially multivariate statistics) to problems in bi- on a responsible path. grees. ology with emphasis on morphometrics and

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00018 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.051 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E759 the theory of systematics. I am proud to rec- Today, Itche goes to the office every day to On Crossin’ Awards; and, most recently, the ognize and honor Professor F. James Rohlf ensure that the journal he is editor-in-chief of, 2004 Interfaith Communities United for Justice for his outstanding career as a scientist and Yiddishe Kultur, sees continued life. Even after and Peace Award. professor and for all the many accomplish- forty years on the job, he remains tirelessly Lalo Alcaraz is a loving husband, father and ments and services he has provided to the devoted to the endurance of one of the few a devoted member of the Writers Guild Union, community of biological science. surviving quality journals published in Yiddish West. I commend him for his numerous con- f language worldwide. tributions to the Latino community through his In a society such as ours, which values hard journalism career and political activism. PERSONAL EXPLANATION work, education and culture, Itche Goldberg is f priceless. A child wishing to study Yiddish cul- HON. PHIL ENGLISH ture can turn to Itche’s work at every stage of THE PASSING OF ILLINOIS STATE SENATOR RALPH DUNN OF PENNSYLVANIA life; whether it is his children’s stories, text- IN THE HOUSE OF REPRESENTATIVES books, journals or upcoming second volume of essays. Itche is an asset to us all, and I feel Wednesday, May 5, 2004 HON. JOHN SHIMKUS privileged to honor him for his profound con- OF ILLINOIS Mr. ENGLISH. Mr. Speaker, I was unable to tributions towards the preservation of Yiddish, IN THE HOUSE OF REPRESENTATIVES be present for rollcall votes 139, 140, and 141 and for doing so with such an inspiring pas- Wednesday, May 5, 2004 on May 4, 2004. Had I been present, I would sion. Mir shatsn op ayer vunderlekhe arbet have voted in the following manner: Rollcall l’toyves der yidisher kultur vos hot baraikhert Mr. SHIMKUS. Mr. Speaker, I rise today to 139, ‘‘yea’’ on H. Res. 600—Congratulating dem gontsn Yidishn yishev. (English Trans- recognize the life of Illinois State Senator charter schools; rollcall 140, ‘‘yea’’ on H. Con. lation ‘‘We honor your wonderful work for the Ralph Dunn on May 3. Res. 380—Recognizing school-based music benefit of Yiddish culture which enriches all of Senator Dunn had a long list of accomplish- education; and rollcall 141, ‘‘yea’’ on H. Res. Yiddish heritage.’’) ments during his years as a State Senator, a 599—Congratulating the UConn men’s and f State Representative and as a member of the women’s basketball teams. Illinois Constitutional Convention—which he f RECOGNIZING LALO ALCARAZ described as ‘‘the greatest thing I’ve ever been involved with.’’ HONORING THE 100TH BIRTHDAY HON. HILDA L. SOLIS Illinois State Representative Mike Bost said, OF ITCHE GOLDBERG CELE- OF CALIFORNIA ‘‘He gave me some tremendous advice, even BRATED ON APRIL 25, 2004 IN THE HOUSE OF REPRESENTATIVES after he left office. He was well-respected and he served his district and his state well. Every- Wednesday, May 5, 2004 HON. JERROLD NADLER body knew Ralph was a square shooter. I OF NEW YORK Ms. SOLIS. Mr. Speaker, I rise to recognize never got in trouble if I followed him.’’ IN THE HOUSE OF REPRESENTATIVES Lalo Alcaraz, a leader and political activist in Du Quoin Mayor John Rednour said, ‘‘I al- the Latino community who exemplifies the ways knew the best way to get something Wednesday, May 5, 2004 best in American journalism today. done for my town was to call Ralph. He was Mr. NADLER. Mr. Speaker, I rise today to For almost 10 years, Mr. Alcaraz has not only a gentleman, he was a gentle man.’’ congratulate my constituent, Itche Goldberg on touched the lives of millions of newspaper and Mayor Rednour, Representative Bost and the occasion of his 100th birthday. Itche is at magazine readers here in the U.S. and in many others will join together on Friday, May once a leader, scholar and educator, yet he Mexico. Born in San Diego, CA, in 1964, he 7th to celebrate the life and legacy of this still remains a student. It is rare to encounter grew up near the U.S.-Mexico border with his Southern Illinois giant. There is little doubt that a man who has achieved as much as Itche Mexican immigrant parents—each day sharing Ralph and his wife Ellen will be watching with has, but that is not what truly makes Itche two different cultures. He began his journalism their typical mix of pride and humility. unique. What sets Itche apart from those few career as student at San Diego State Univer- They have earned this moment of recogni- who can match his accomplishments is his sity by drawing politically and culturally driven tion as well as our thanks for a lifetime of continued passion to learn, explore and delve editorial cartoons for the university newspaper. service to all of us. further into the subjects he studies. The great- As he gained notoriety among readers across f est beneficiary of Itche’s work has never been campus, Alcaraz also grabbed the attention of Itche himself, but rather those who have had top publishing media syndicates in southern TRIBUTE IN HONOR OF LYNDSEY the pleasure of reading his works and the California. LEA TELLER, 2004 LEGRAND work he has translated and for the important An award winning editorial cartoonist, SMITH SCHOLARSHIP WINNER OF role he has played in preserving the Yiddish screenwriter, and journalist, Alcaraz continues LITCHFIELD, MI language. to entertain his readers today by skillfully cap- Itche began his path of scholarship in Can- turing the essence of our country’s changing HON. NICK SMITH ada, where he studied philosophy, political ec- cultural and political landscape. He is the cre- OF MICHIGAN onomics and German. At the age of twenty, ator of nationally syndicated and hardhitting IN THE HOUSE OF REPRESENTATIVES he was already teaching in the Toronto Work- editorial cartoons that depict pressing issues men Circle Folkshul, the first step onto a path affecting the Latino community. Published in Wednesday, May 5, 2004 of instruction that extended to Philadelphia English and Spanish in publications such as Mr. SMITH of Michigan. Mr. Speaker, it is and New York as well. His lectures have been the New York and Los Angeles Times, La with great respect for the outstanding record in both Yiddish and English, covering Jewish Opinion, and Hispanic Magazine, his cartoons of excellence she has compiled in academics, culture and literature. From 1970 to 1985, include the Latino-themed daily strip La leadership and community service, that I am Itche was professor of Yiddish language and Cucaracha, and Migra Mouse, a satire on proud to salute Lyndsey Lea Teller, winner of literature at Queens College of the City Uni- Latinos and immigration. Alcaraz is also the the 2004 LeGrand Smith Scholarship. This versity of New York. co-editor of the satirical magazine Pocho and award is given to young adults who have dem- From 1936 to 1951, Itche edited Yungvarg, he is the illustrator of the book Latino USA: A onstrated their true commitment to playing an a Yiddish children’s magazine, and others for Cartoon History. important role in our Nation’s future. both parents and teachers. During that time, Throughout his illustrious career, Alcaraz As a winner of the LeGrand Smith Scholar- he wrote many children’s stories in Yiddish. has been honored and recognized for his ex- ship, Lyndsey is being honored for dem- Also among Itche’s work are numerous Yid- ceptional journalistic work. He has received onstrating the same generosity of spirit, intel- dish textbooks he authored, and even more he four Southern California Journalism Awards for ligence, responsible citizenship, and capacity edited. As Director of the Service Bureau for Best Cartoon in Weekly Papers between for human service that distinguished the late Jewish Education and the Zhitlowsky Founda- 1994–1999. He is also the 1998 winner of the LeGrand Smith of Somerset, Michigan. tion, Itche’s mission was to make sure these Los Angeles Hispanic Public Relations Asso- Lyndsey is an exceptional student at books were not only produced, but also pro- ciation’s Premio Award for Excellence in Com- Litchfield High School. Aside from being at the vided to their target audiences in Jewish sec- munications; the 2000 Rockefeller Foundation top of her class academically, she possesses ular schools. Itche was also recently awarded Multi-Media Fellowship; the 2003 Center for an outstanding record of achievement in high the prestigious Raoul Wallenberg medal. the Study of Political Graphics and the Keep school. She is the Secretary for the National

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00019 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.054 E05PT1 E760 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 Honor Society and the Treasurer for her grad- employer in the greater East Los Angeles These exceptional students have consist- uating class. Lyndsey has run cross country area, with over 900 racially diverse and multi- ently displayed their dedication, intelligence and track for four years. She is also very ac- lingual staff members. and concern throughout their high school ca- tive with her church. I want to commend the work of AltaMed’s reers. They stand out among their peers not On behalf of the United States Congress, I President and CEO Ca«stulo de la Rocha, the only because of their many achievements, but am proud to join with her many admirers in Board of Directors, its nine senior manage- also the disciplined manner in which they extending our highest praise and congratula- ment professionals, and its generous sup- meet all challenges. Although they have al- tions to Lyndsey Lea Teller for her accom- porters for their tireless and excellent leader- ready accomplished a great deal, these young plishments and selection as winner of a ship efforts. Their hard work made AltaMed’s people possess unlimited potential. LeGrand Smith Scholarship. This honor not 35th Anniversary Gala a reality. On behalf of the United States Congress, only recognizes her efforts, but it is also a tes- May this historic event be an opportunity for we join the many admirers in extending our tament to the parents, teachers, and other in- everyone to commemorate the vision, com- highest praise and congratulations to the final- dividuals whose personal interest, strong sup- passion, and commitment that the original ists of the 2004 LeGrand Smith Congressional port and active participation contributed to her AltaMed founders had for their community 35 Scholarship program: success. To this remarkable young woman, I years ago. And may today’s AltaMed leader- Tinsley Hunsdorfer of Albion, Michigan; extend my most heartfelt good wishes for all ship and medical team carry their mission for- Renee Gaudreau of Albion, Michigan; Ben- her future endeavors. ward into the future. jamin Wilson of Battle Creek, Michigan; Heather Taylor of Homer, Michigan; Michael f f Schneider of Litchfield, Michigan; Lacey RECOGNIZING THE ALTAMED THE PASSING OF ILLINOIS STATE Ferro of Jonesville, Michigan; Joshua SENATOR VINCE DEMUZIO Robare of Hillsdale, Michigan; Amy Sanford HEALTH SERVICES CORPORATION of Reading, Michigan; Elysia Berry of Read- ing, Michigan; Kimberly Emens of Waldron, HON. HILDA L. SOLIS HON. JOHN SHIMKUS Michigan; Zachary Risk of Jonesville, Michi- gan; Ryan Cherry of Brooklyn, Michigan; OF CALIFORNIA OF ILLINOIS IN THE HOUSE OF REPRESENTATIVES Amanda Jones of Michigan Center, Michi- IN THE HOUSE OF REPRESENTATIVES gan. Tiffany Lambert of Jerome, Michigan; Wednesday, May 5, 2004 Wednesday, May 5, 2004 Eric Palmer of Jerome, Michigan; Amy Nemeth of Jackson, Michigan; Kathryn Ms. SOLIS. Mr. Speaker, I rise to recognize Mr. SHIMKUS. Mr. Speaker, I rise today to recognize the life of Illinois State Senator Gillen of Jackson, Michigan; Zachary the AltaMed Health Services Corporation Kanaan, Jr. of Clark Lake, Michigan; Susan (AltaMed). For 35 years, AltaMed has exempli- Vince Demuzio who passed away on April 27. Hammond of Jackson, Michigan; Benjamin fied exceptional leadership in America by pro- Senator Demuzio, or Vince as most people Stafford of Parma, Michigan; Rachel viding increased access and award-winning knew him, lived a life dedicated to public serv- Osborne of Hudson, Michigan; Lyndsey quality health care to the medically under- ice. While committing himself to the public Banks of Adrian, Michigan; Olivia Rawson of served multi-ethnic communities of Los Ange- good, Vince still found time for his family—his Onsted, Michigan; Leanna Pelham of Onsted, Michigan; Sara Worsham of Onsted, Michi- les County. wife, Deanna, their two children and their four grandchildren. gan; Blythe Crane of Chelsea, Michigan; Established in 1969 at a modest storefront Ashleigh Doop of Dexter, Michigan; and Eliz- in East Los Angeles, AltaMed has never In central Illinois, Vince Demuzio is remem- abeth Parker of Dexter, Michigan. bered as a champion for education, a fighter strayed from its commitment to serve medi- f cally underinsured and uninsured individuals. for good jobs and roadways, and a tireless ad- ´ First known as El Barrio Free Clinic and later vocate for the needs of his constituents. RECOGNIZING MR. SERGIO RASCON as La Clõ«nica Familiar Del Barrio, the AltaMed Illinois Senate Minority Leader, Frank Wat- organization was first managed by doctors, son, said of Vince, ‘‘If we all emulate the con- HON. HILDA L. SOLIS nurses, and social workers, who generously cerns that Vince Demuzio had for the people OF CALIFORNIA volunteered their non-working hours to treat he represented and the people of this state IN THE HOUSE OF REPRESENTATIVES . . . we would all be better off and be better individuals and their families with the best- Wednesday, May 5, 2004 people for it.’’ available medical care. Spurred by a federal Ms. SOLIS. Mr. Speaker, I rise to recognize government measure known as the Urban I couldn’t agree more. Illinois has lost a great leader with the passing of State Senator Mr. Sergio Rasco«n, a labor union leader who Health Initiative and a federal grant in 1977, exemplifies the best in American leadership La Clõ«nica Familiar Del Barrio managed to in- Vince Demuzio. f today. crease its services and the organization offi- Born in 1953 in Sonora, Mexico, Mr. Rasco«n cially changed its name to the AltaMed Health 2004 LEGRAND SMITH grew up and graduated from high school in Services Corporation. SCHOLARSHIP FINALISTS the San Fernando Valley region of Los Ange- Thirty-five years after its inception, AltaMed les. Possessing a strong passion for labor continues to provide quality medical service to HON. NICK SMITH union politics, in 1979 he was named Labor over 46,000 patients at 19 service outlets, six OF MICHIGAN Foreman of the Laborers’ International Union stand-alone health care clinics, two mobile IN THE HOUSE OF REPRESENTATIVES of North America LIUNA Local 300, a powerful health care units, and 11 social service sites subdivision of the American Federation of throughout Los Angeles County. Proudly serv- Wednesday, May 5, 2004 Labor. ing predominantly low-income and underrep- Mr. SMITH of Michigan. Mr. Speaker, it is In 1984, he was named an official agent of resented communities, AltaMed continues to with my sincerest pleasure that I rise to recog- the LIUNA Local 300, while becoming a natu- be at the forefront of quality health care serv- nize the finalists of the 2004 LeGrand Smith ralized U.S. citizen that same year. Dem- ice. Its extensive services provide individuals Congressional Scholarship Program. This spe- onstrating a natural ability to lead, motivate, of all ages with state-of-the-art medical and cial honor is an appropriate tribute to these re- and organize workers, he earned the highest dental clinics, geriatric care, home safety, HIV/ markable young adults for their academic ac- honors by his peers and was promoted to the AIDS prevention, youth support groups, and complishments, demonstration of leadership executive board of the Labor Council for Latin substance abuse prevention and treatment and responsibility, and commitment to social American Advancement LCLAA in 1989 and programs. and civic involvement. We all have reason to later to Business Manager and President of With an annual operating budget of $55 mil- celebrate their success, because our future the LIUNA Local 300 union throughout the lion, AltaMed is the largest nonprofit health rests in their promising and capable hands. 1990s. care agency in the greater East Los Angeles The finalists are being honored for showing Currently holding politically influential posi- area—servicing 46 Zip codes in Los Angeles the same generosity of spirit, depth of intel- tions as First Vice President of the LCLAA County. With support from various grants, ligence, and capacity for human service that State Chapter and as Los Angeles Commis- AltaMed works to enroll uninsured individuals distinguished the late LeGrand Smith of Som- sioner on the Convention and Exhibition Cen- into low cost or no cost insurance programs erset, Michigan. ter Bureau, Rasco«n is regarded as one of the such as Medi-Cal, Healthy Families, California They are young men and women of char- most powerful and youngest political activists Kids and Healthy Kids. In addition, AltaMed acter, ambition, and initiative, who have al- in the United States. Under his direction, the continues to promote economic and commu- ready learned well the value of hard work and LIUNA Local 300 is involved in more political nity development and is the second largest commitment. races than any other in its history.

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00020 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.059 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E761 In addition to being an effective political lob- base. It makes no sense in America to isolate nesses are dropping coverage and more peo- byist for progressive politicians, Rasco«n’s small businesses as little health care islands ple are left uninsured. Congress must address achievements extend from being a once active unto themselves. We must have association the uninsured problem and move forward with water board member to generous community health plans.’’ The President is right, and we increasing the insured through Association provider. From 1997 to 2001, he served as a should help level this playing field so that Health Plans. It’s the least Congress can do to Board Director for the Metropolitan Water Dis- small businesses can offer quality coverage to ensure that the American people will receive trict MWD in southern California. During his their workers. better health care at a more reasonable price. position as a member of the board, he worked Importantly, the bill addresses both the ac- I urge my colleagues to cosponsor this im- to ensure that everyone in Los Angeles Coun- cess and cost issues at the heart of the health portant legislation. ty have safe drinking water. He served impor- care reform debate, giving uninsured working f tant roles in the MWD, such as being Vice families new hope for a solution that can give Chairman of the Subcommittee on Organiza- them access to quality health care. Small busi- COMMENDING FREMONT tion and Personnel and an active member of nesses in most states are stuck with dis- ELEMENTARY SCHOOL the MWD’s Budget and Finance and Legal proportionately high costs because they have and Claims committees. to choose from fewer than five providers, so HON. BOB BEAUPREZ As an active leader in his community, Mr. AHPs offer them a new option for them to OF COLORADO Rasco«n is involved in numerous charitable and choose from. By pooling their resources and IN THE HOUSE OF REPRESENTATIVES educational activities in Los Angeles County. increasing their bargaining power, AHPs will Wednesday, May 5, 2004 By collaborating with other prominent labor or- help small businesses reduce their health in- ganizations, his LIUNA Local 300 has helped surance costs. Most importantly, AHPs will ex- Mr. BEAUPREZ. Mr. Speaker, I rise today raise over $120,000 in scholarship funding for pand access to quality health care for the peo- to commend Fremont Elementary, a school lo- the children of southern California union mem- ple for whom it is currently out of reach: unin- cated back home in my Colorado district, for bers. sured working families. displaying the kind of academic excellence Mr. Sergio Rasco«n is an advocate for every I urge my colleagues to join Mr. JOHNSON, that is to be recognized at a national level. working American in the United States. I am Mrs. VELA«ZQUEZ, Mr. DOOLEY, Mr. BURNS and Fremont recently received word that they honored to recognize his illustrious career of I in this effort, and to cosponsor this important are one of the top three finalists for the 21st exceptional and tireless leadership during this legislation. Century School of Distinction Award. Over year’s Cinco de Mayo week in the Latino com- f 1,200 schools nationwide applied for this dis- munity. May his legacy continue to live for- tinction. To be a finalist is an amazing honor ever. INTRODUCTION OF THE SMALL for them. BUSINESS HEALTH FAIRNESS f The award is open to all public, private, ACT OF 2004 charter and parochial schools. There are ten INTRODUCTION OF THE SMALL different categories of merit. Fremont is in the BUSINESS HEALTH FAIRNESS HON. SAM JOHNSON ‘‘Technology Implementation’’ category. ACT OF 2004 OF TEXAS Schools in this category have shown sensible IN THE HOUSE OF REPRESENTATIVES improvement in the implementation of technology in at least one school program or the HON. JOHN A. BOEHNER Wednesday, May 5, 2004 OF OHIO curriculum itself. IN THE HOUSE OF REPRESENTATIVES Mr. SAM JOHNSON of Texas. Mr. Speaker, The review board will soon be making a visit I rise today to introduce the ‘‘Small Business to the remaining three schools and will make Wednesday, May 5, 2004 Health Fairness Act of 2004.’’ their final decision pending that visit. The Mr. BOEHNER. Mr. Speaker, I rise today to Today we introduce an important compo- awards program will conclude with a national join my colleague, SAM JOHNSON, in intro- nent of the Bush administration agenda—the awards ceremony in June. Also, the winner ducing the ‘‘Small Business Health Fairness ‘‘Small Business Health Fairness Act’’—to will be highlighted in a future issue of ‘‘Scho- Act of 2004.’’ allow the establishment of certified, federal, lastic Administrator’’. I have long felt that the most pressing crisis association health plans (AHPs). Recently, I had the honor of being able to we face in health care today is the number of AHPs will significantly expand access to read to the students at Fremont during their uninsured Americans, which currently stands health coverage for uninsured Americans by: Celebrity Read Week. It was a pleasure to be at more than 41 million. And the problem is (1) Increasing small businesses’ bargaining in the presence of such great and enthusiastic not going away. With health care costs con- power with health care providers, and (2) Giv- young minds. tinuing to rise sharply across the country, ing employers freedom from costly state-man- I am continually impressed with this school’s more and more employers and workers are dated benefit packages. As such, AHPs will in- administration and their dedication to edu- sharing the burden of increased premiums. crease the number of insured Americans by cating these young leaders of tomorrow. The Health care costs rose by 14 percent in 2003, up to 8 million people. According to figures re- school and its staff raise the bar of academic and surveys project another increase of 13 leased by the U.S. census bureau, one in expectations and set an example for all ele- percent this year. As costs escalate, the ranks seven Americans lacks health insurance. mentary schools, in and out of my district, to of the uninsured will increase as well. You might ask, just who are these unin- follow. I am proud to live in the same district Today we introduce the ‘‘Small Business sured? as a school that exemplifies such superior Health Fairness Act of 2004,’’ which rep- Well . . . they are working people who sim- academic programs. resents a bipartisan solution to this problem. ply don’t have access to insurance, can’t af- I would like to wish the best of luck to Fre- The bill gives small businesses the opportunity ford it, or their employer can’t afford to partici- mont Elementary with this award and with all to band together through bona fide trade asso- pate in a plan for them. Sixty percent—or 24 future endeavors. This educational institution ciations and purchase quality health care for million—of uninsured Americans work in small has shown amazing academic excellence and their workers at a lower cost. businesses. Some of these people are offered I would like to congratulate them for the dis- The bipartisan bill would increase small insurance and turn it down because they can’t tinction this has earned them. businesses’ bargaining power with health care pick up their part of the tab. According to the f providers, give them freedom from costly same census report, the increase in the num- state-mandated benefit packages, and lower ber of uninsured comes solely from declining IN RECOGNITION OF BROWARD their overhead costs by as much as 30 per- coverage in the small employer market. And COUNTY, FL cent—benefits that many large corporations there is no sign that the trend will reverse, or like GM and UPS and many unions already even slow. Health insurance costs are still ris- HON. E. CLAY SHAW, JR. enjoy because of their larger economies of ing and many small employers are forced to OF FLORIDA scale. drop health coverage, while some cannot offer IN THE HOUSE OF REPRESENTATIVES President Bush addressed this point directly it in the first place. last year during a speech at the Women’s En- The cost-saving benefits of AHPs would Wednesday, May 5, 2004 trepreneurship Summit, where he said, ‘‘Small help the small employers of Main Street ac- Mr. SHAW. Mr. Speaker, I rise today in rec- businesses will be able to pool together and cess coverage at a more affordable price. ognition of two programs in Broward County, spread their risk across a large employee Let’s face the facts. Costs are rising, busi- Florida, that were awarded Acts of Caring

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00021 Fmt 0626 Sfmt 9920 E:\CR\FM\A05MY8.063 E05PT1 E762 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 Awards by the National Association of Coun- the Centers for Disease Control and Preven- Folklorico Atotonilco, a nationally renowned ties on April 21, 2004. Broward County’s tion, Lighthouse International, and the Amer- traditional Mexican folk dance troupe. Water Matters Program and Library Friends ican Academy of Ophthalmology, released the On May 6, 2004, they will be celebrating 25 Tutoring Program were both recognized by the Vision Problems Action Plan, A National Pub- years of performing outstanding traditional National Association of Counties for their out- lic Health Strategy. This important document Mexican folk dances for audiences in the standing performance and service to the com- will provide our nation with a framework for greater Kansas City area. The event at the munity. preventing vision loss. Folly Theater in Kansas City is part of a week The Water Matters Program of Broward This groundbreaking study recommends of celebrations commemorating the 142nd an- County was designed to educate residents in that, in order to reduce the occurrence of vi- niversary of Cinco de Mayo. May 5, 1862, is the Everglades area on the importance of sion loss and its accompanying disabilities, the date of the famous triumph of Mexican water conservation and environmental respon- our nation must concentrate our efforts three General Ignacio Zaragoza Seguin’s small, sibility. Broward County educates their citizens priority areas: prevention/public health, access poorly armed band of 4,500 men over a well on environmental awareness in several dif- to care and treatment including rehabilitation, equipped French army of 6,500 soldiers, ferent ways, including public service an- and research. which occurred against all odds. Mexican cul- nouncements and the development of an infor- Our public health and prevention campaign ture and heritage is traditionally celebrated in mational web page. The county also imple- must ensure that vision programs at the Na- commemoration of this historic victory for inde- mented Water Matters Day to further support tional Eye Institute (NEI) and Centers for Dis- pendence. the program, including hands-on activities for ease Control and Prevention (CDC) have the those who attend. The program is supported resources they need to improve communica- El Grupo Folklorico Atotonilco was founded by a large number of volunteers, allowing it to tion and education campaigns, increase sur- in 1979, when Maria Chaurand was asked to exist on a very small budget. veillance, epidemiology and prevention re- round up some neighborhood children and The North Regional/BCC Library Friends search; and implement appropriate programs, teach them a dance to entertain festival goers. Tutoring Program was designed to create policies and systems changes. It was an opportunity for Chaurand to share intergenerational relationships through edu- In order to ensure access to and availability her love of dance and Mexican culture. Since cation. Volunteer tutors who participate in the of treatment and rehabilitation services for in- then, the dance troupe has had over 700 chil- program vary in age from high school students dividuals with vision loss, we must support dren learn this art, and the dance company to senior citizens. The diligent work of this pro- programs at the Centers for Medicaid and currently boasts 85 members, ranging in age gram has impacted over 400 children since Medicare Services (CMS) and the Department from 5 to 40 years old. El Grupo Folklorico 1995 and also operates on a minimal budget. of Health and Human Services (HHS) that re- Atotonilco is also the most highly requested Mr. Speaker, we owe a debt of gratitude to move barriers and improve access to eye dance group on the state of Missouri folk arts those citizens of Broward County who seek to exams currently covered under Medicare, roster. improve the environment as well as educate such as diabetic eye exams and glaucoma de- Dance in Mexico is considered one of the the youth of our nation through volunteer tutor- tection for high risk populations. most basic artistic expressions of the culture ing services. Broward County best exemplifies We must also strengthen the Medicare pro- and spirit of its people. Each region has its a county government that has achieved its full gram to advance coverage for Medicare vision own unique style and each dance is per- potential, setting an example for other county rehabilitation services as provided by orienta- formed in its distinctive costumes native to governments around the nation. tion and mobility specialists, rehabilitation that region. An extensive repertoire, presented f teachers and low-vision therapists including in in lavish costumes worn by energetic dancers, IN SUPPORT OF THE NATIONAL patients homes and their environment. makes El Grupo Folklorico Atotonilco’s pro- VISION STRATEGY Finally, we must bolster our research efforts gram an exciting and educational experience. to improve our understanding of the eye and The swing of every folkloric skirt and the bow HON. ILEANA ROS-LEHTINEN visual system in health and disease, as well of every sombrero represent the rich cultural OF FLORIDA as developing the most appropriate and effec- heritage and unique characteristics of Mexi- IN THE HOUSE OF REPRESENTATIVES tive means of prevention, and access to treat- co’s 32 states. Wednesday, May 5, 2004 ment and rehabilitation. This report provides the roadmap we need Over their last 25 years, El Grupo Folklorico Ms. ROS-LEHTINEN. Mr. Speaker, as a Co- to raise awareness about vision loss, give indi- Atotonilco dancers have showcased their tal- Chair of the Congressional Vision Caucus, I viduals the tools they need to prevent it, and ents in theaters and performance halls in: Mis- would like to recognize May as Healthy Vision give hope to the millions already suffering souri, Kansas, Oklahoma, Nebraska, Iowa, Month, and to discuss the important rec- from vision loss that better treatments for can New Mexico, Texas, Illinois, California, Spain ommendations of the Vision Problems Action be found. and Mexico. The dance troupe has received Plan, A National Public Health Strategy as a We would like to thank all of the organiza- numerous awards and recognition for their way to prevent blindness and vision loss. tions involved in drafting this report, including performances and has garnered a reputation Good vision is critical to conducting activi- the American Academy of Ophthalmology, the as one of the best Mexican folk dance compa- ties of daily living, is a portal for language, and American Optometric Association, the Centers nies in the country. In 1997, El Grupo affects developmental learning, commu- For Disease Control and Prevention, Light- Folklorico Atotonilco received the honor as the nicating, working, and quality of life. ‘‘Premiere Mexican Folk Dance Company in Unfortunately, a large number of people are house International, the National Alliance For Eye and Vision Research, the National Eye In- U.S.’’ They are the sole recipient of that honor at risk for losing their vision. More than 80 mil- to this day. lion Americans have a potentially blinding eye stitute (NEI) and most importantly, Prevent disease, 3 million have low vision, 1.1 million Blindness America. Prevent Blindness Amer- Maria Chaurand has come a long way from are legally blind, and an additional 200,000 ica should be commended for spearheading her first Cinco de Mayo fiesta 25 years ago, are more severely visually impaired. Despite this effort, for bringing together these various when she coached 16 children in the art of the fact that half of all blindness can be pre- groups, and for its almost century-long tradi- sharing Mexican culture through regional vented, far too many people do not access the tion of preventing vision loss. dance and costume. Thousands of people care they need. If we do not take action, the f throughout Kansas City and around the coun- number of blind and visually impaired individ- HONORING EL GRUPO FOLKLORICO try have been thrilled to hear the exuberant uals will double by 2030. ATOTONILCO beat and see colorful performances that have Awareness, early diagnosis and prevention graced stages in many communities. Mr. are crucial for all. Healthy Vision Month, a HON. KAREN McCARTHY Speaker, please join me in honoring Maria Chaurand and the dancers of El Grupo component of Healthy People 2010, is a na- OF MISSOURI Folklorico Atotonilco for carrying on the folk- tional eye health campaign to raise awareness IN THE HOUSE OF REPRESENTATIVES about the various conditions that can affect loric traditions of old Mexico through the pag- Wednesday, May 5, 2004 eyesight and cause vision loss. eantry of music, costume and dance for the This week, a coalition of leading eye health Ms. MCCARTHY. Mr. Speaker, I proudly rise past 25 years. Viva El Grupo Folklorico experts, including Prevent Blindness America, to announce a celebration to honor El Grupo Atotonilco!

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00022 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.067 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E763 HONORING THE LEGACY OF PAT CALLING FOR SHARED SACRIFICE My sacrifice turned out to be minimal. I TILLMAN: AN EXTRAORDINARY IN THE WAR ON TERROR survived a year as an infantry lieutenant in AMERICAN Vietnam. I was not wounded; nor did I struggle for years with post-traumatic stress dis- HON. CHARLES B. RANGEL order. A long bout of survivor guilt was the OF NEW YORK price I paid. Others suffered far more, par- HON. LINCOLN DIAZ-BALART IN THE HOUSE OF REPRESENTATIVES ticularly those who had to serve after the war had lost all sense of purpose for the men OF FLORIDA Wednesday, May 5, 2004 fighting it. I like to think that in spite of my IN THE HOUSE OF REPRESENTATIVES Mr. RANGEL. Mr. Speaker, I rise today to being so unwilling at first, I did some small call upon our nation to share the sacrifice im- service to my country and to that enduring Wednesday, May 5, 2004 posed upon us by our war on terrorism. I have love of mine, the United States Marine introduced a bill to reinstitute the draft for Corps. Mr. LINCOLN DIAZ-BALART of Florida. Mr. young Americans between the ages of 18 and To my profound surprise, the Marines did a far greater service to me. In 3 years I learned Speaker, Pat Tillman was assigned to A Com- 26 and national civilian service for all those pany, 2nd Battalion, 75th Ranger Regiment, more about standards, commitment and yes, not needed in the military. life, than I did in 6 years of university. I also and was based at Fort Lewis, Washington. On Since I have submitted this bill in January learned that I had had no idea of my own April 22, 2004, he was killed in the line of duty 2003, my conviction that we need a draft has limits: when I was exhausted after humping near the Pakistan border as he led his Army risen on an almost daily basis. In March 2003 up and down jungle mountains in 100-degree Ranger team to help comrades caught in an the administration decided to take the nation heat with a 75-pound pack, terrified out of ambush. He was 27 years old. to war against Iraq for doubtful reasons. I do my mind, wanting only to quit, convinced I not think that members of this administration couldn’t take another step, I found that in Pat Tillman attended Leland High School in and Congress would have been so willing to fact I could keep going for miles. And my life was put in the hands of young men I would San Jose, California. As a linebacker on the launch a war if they had known that their own Arizona State University football team, he was otherwise never have met, by and large high- children might have to fight it. school dropouts, who turned out to be among named the 1997 PACÐ10 Defensive Player of Fact is, that we are currently a nation in the finest people I have ever known. the Year. Finishing with a marketing degree in which the poor fight our wars while the affluent I am now the father of a young man who three and a half years, he graduated summa stay at home. The majority of our brave serv- has far more character than I ever had. I cum laude with a 3.84 GPA. icemen and women come either from poor joined the Marines because I had to; he signed up after college because he felt he He was drafted by the Arizona Cardinals in rural areas or poverty-shaken inner-city neigh- borhoods. About thirty-five percent of our sol- ought to. He volunteered for an elite unit the seventh round in 1998, the 226th pick and has served in both Afghanistan and Iraq. diers are minorities. These young people enlist overall. He became the Cardinals’ starting When I see images of Americans in the war in the military mainly for financial and edu- safety and in 2000, he set a new franchise zones, I think of my son and his friends, cational opportunities. many of whom I have come to know and record with 224 tackles. I believe that the burdens of war should not deeply respect. When I opened this news- Following the terrorists attacks of Sep- be shouldered solely by the poor segments of paper yesterday and read the front-page tember 11, 2001, Pat Tillman spoke of his ad- our society, but must be fairly shared by all ra- headline, ‘‘9 G.I.’s Killed,’’ I didn’t think in miration for his relatives who had taken up cial and economic groups. I am pleased to abstractions. I thought very personally. see that during the last couple of months the The problem is, I don’t see the images of or arms to defend the nation in previous conflicts. read about any of the young men and women He went on: ‘‘I really haven’t done a damn support for a reintroduction of the draft has who, as Dick Cheney and I did, have ‘‘other thing as far as laying myself on the line like risen substantially among the American peo- priorities.’’ There are no immediate family ple. As our casualties in Iraq increase daily that. And so I have a great deal of respect for members of any of the prime civilian plan- and exhausted soldiers are kept in Iraq under ners of this war serving in it—beginning with those that have and what the flag stands for.’’ stop loss orders, the debate about shared sac- President Bush and extending deep into the In 2002, he turned down a $3.6 million con- rifice is gaining ground. Defense Department. Only one of the 535 tract from the Arizona Cardinals and enlisted I submit to the CONGRESSIONAL RECORD an members of Congress, Senator Tim Johnson in the Army instead. article by journalist and Vietnam War Veteran of South Dakota, has a child in the war—and only half a dozen others have sons and Following his death, the military post- William Broyles Jr. which was published in the daughters in the military. humously promoted Pat Tillman from specialist New York Times on May 4, 2004. Mr. Broyles’ The memorial service yesterday for Pat to corporal. He also was awarded a Purple article is one of the strongest pieces favoring Tillman, the football star killed in Afghani- Heart and the distinguished Silver Star award the draft that I have read so far and it fully re- stan, further points out this contrast. He remains the only professional athlete of any for gallantry on the battlefield. flects my own opinion on this subject. [From the New York Times, May 4, 2004] sport who left his privileged life during this war and turned in his play uniform for a real In the world of professional sports, Pat Till- A WAR FOR US, FOUGHT BY THEM man’s story is extraordinary; choosing duty one. With few exceptions, the only men and (By William Broyles Jr.) women in military service are the pro- over dollars. However, in the context of our WILSON, Wyo.—The longest love affair of foundly patriotic or the economically needy. military, his sacrifice is typical of our soldiers. my life began with a shotgun marriage. It It was not always so. In other wars, the His death reminds us about the sacrifices was the height of the Vietnam War and my men and women in charge made sure their student deferment had run out. Desperate family members led the way. Since 9/11, the that our veterans and fighting forces have not to endanger myself or to interrupt my war on terrorism has often been compared to made for us. Not for fame or fortune, but for personal plans, I wanted to avoid military the generational challenge of Pearl Harbor; a love of country, with determination, courage service altogether. I didn’t have the re- but Franklin D. Roosevelt’s sons all enlisted and honor, the men and women of our armed sourcefulness of Bill Clinton, so I couldn’t soon after that attack. Both of Lyndon B. services have dedicated their lives to the de- figure out how to dodge the draft. I tried to Johnson’s sons-in-law served in Vietnam. escape into the National Guard, where I This is less a matter of politics than privi- fense of our democratic ideals. Pat Tillman will would be guaranteed not to be sent to war, lege. The Democratic elites have not re- be remembered as one of the most admirable but I lacked the connections of George W. sponded more nobly than have the Repub- of America’s heroes. His legacy will strengthen Bush, so I couldn’t slip ahead of the long lican; it’s just that the Democrats’ hypocrisy the United States of America forever. waiting list. My attitude was the same as is less acute. Our president’s own family il- Dick Cheney’s: I was special, I had ‘‘other lustrates the loss of the sense of responsi- The life we live today is shaped by men and priorities.’’ Let other people do it. bility that once went with privilege. In three women like Pat Tillman. Each has stood ready When my draft notice came in 1968, I was generations the Bushes have gone from war in defense of their country. Our nation owes relieved in a way. Although I had deep hero in World War II, to war evader in Viet- an immeasurable debt of gratitude for their doubts about the war, I had become troubled nam, to none of the extended family showing about how I had angled to avoid military up in Iraq and Afghanistan. service. We enjoy our freedoms because of service. My classmates from high school Pat Tillman didn’t want to be singled out their valor. were in the war; my classmates from college for having done what other patriotic Ameri- I join a grateful nation in sending my were not—exactly the dynamic that exists cans his age should have done. The problem today. But instead of reporting for service in is, they aren’t doing it. In spite of the presi- thoughts and prayers to the Tillman family and the Army, on a whim I joined the Marine dent’s insistence that our very civilization is all families who have lost loved ones serving Corps, the last place on earth I thought I beat stake, the privileged aren’t flocking to to protect our sacred liberty. longed. the flag. The war is being fought by Other

VerDate May 04 2004 05:04 May 06, 2004 Jkt 029060 PO 00000 Frm 00023 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.071 E05PT1 E764 CONGRESSIONAL RECORD — Extensions of Remarks May 5, 2004 People’s Children. The war is impersonal for the administration’s handling of the war, Mr. Faria was a Connecticut businessman the very people to whom it should be most which is perhaps why the administration is who had contributed to the efforts of the Na- personal. so dead set against bringing it back. tional Right to Work Committee. In 1977, after If the children of the nation’s elites were f facing enemy fire without body armor, riding already contributing to the cause for 8 years, he sent a letter to Committee President Reed through gantlets of bombs in unarmored NEW HEADQUARTERS FOR Larson offering his services as a member of Humvees, fighting desperately in an increas- CALIFORNIA FFA ingly hostile environment because of arro- the Board of Directors. gant and incompetent civilian leadership, In that letter, Mr. Faria explained his strong then those problems might well find faster HON. DEVIN NUNES desire to be more deeply involved with the solutions. OF CALIFORNIA Committee’s efforts. The men and women on active duty IN THE HOUSE OF REPRESENTATIVES today—and their companions in the National He wrote: ‘‘Although I have supported the Guard and the reserves—have seen their will- Wednesday, May 5, 2004 National Right to Work Committee for a num- ingness, and that of their families, to make Mr. NUNES. Mr. Speaker, as a former ber of years because of my strong belief in in- sacrifices for their country stretched thin member of the Tulare Chapter of the Future dividual freedom, I did not really appreciate and finally abused. Thousands of soldiers Farmers of America, I am proud to announce the clout of Union political power until I worked promised a 1-year tour of duty have seen on trying to close loopholes in Connecticut’s that promise turned into a lie. When Eric that the California FFA is in the process of Shinseki, then the Army chief of staff, told building a permanent $5 million home. This Unemployment Compensation law. I would like the president that winning the war and peace building will be located north of Galt, Cali- the opportunity to do more in the area of right in Iraq would take hundreds of thousands fornia, on Highway 99 and will contain housing to work as I feel America’s future depends on more troops, Mr. Bush ended his career. As a for state officers, meeting rooms and dor- it.’’ result of this and other ill-advised decisions, mitories. The new FFA headquarters will pro- Luckily for those in the Right to Work move- the war is in danger of being lost, and my be- vide not only needed facilities but also long- ment, Reed Larson took Mr. Faria up on this loved military is being run into the ground. This abuse of the voluntary military can- term continuity for this important organization. offer, beginning a quarter century fight to- not continue. How to ensure adequate troop Indeed, many future leaders of California will gether for workers’ Right to Work. levels, with a diversity of backgrounds? How have their first leadership training experiences Mr. Faria joined the board of directors of the to require the privileged to shoulder their at this facility. National Right to Work Legal Defense Foun- fair share? In other words, how to get today’s Funds for the project are being raised by dation shortly thereafter. equivalents of Bill Clinton, George W. Bush, 59,000 high school students who are studying Dick Cheney—and me—into the military, The Right to Work principle—the guiding vocational agriculture. In addition, former concept of the National Right to Work Legal where their talents could strengthen and re- alumni and friends of the FFA have already vive our fighting forces? Defense Foundation and one of the guiding The only solution is to bring back the contributed $1.3 million toward the project. principles of Thomas Faria’s work—affirms the draft. Not since the 19th century has Amer- The Future Farmers of America is an orga- right of every American to work for a living ica fought a war that lasted longer than a nization that contributes support to vocational without being compelled to belong to a union. week with an all-volunteer army; we can’t do agriculture students through home projects The National Right to Work Legal Defense it now. It is simply not built for a protracted and leadership training programs. It once was Foundation gives legal assistance to employ- major conflict. The arguments against the mostly a rural program, for high school stu- draft—that a voluntary army is of higher ees who are victimized because of their asser- dents of vocational agriculture. Now, many of tion of that principle. quality, that the elites will still find a way the students are from metropolitan areas and to evade service—are bogus. In World War II have projects designed for a broad spectrum Mr. Faria generously supported the Founda- we used a draft army to fight the Germans tion with his time and resources until his death and Japanese—two of the most powerful of urban living. I am very pleased to congratulate the FFA almost 1 year ago. His efforts helped to pro- military machines in history—and we won. vide free legal assistance to thousands of The problems in the military toward the end on this important step in preparing for and of Vietnam were not caused by the draft; prosperous future. Americans whose rights had been violated by they were the result of young Americans abuses of compulsory unionism and helped f being sent to fight and die in a war that had make more Americans free. become a disaster. THOMAS FARIA: MORE THAN Many workers, and many Americans who One of the few good legacies of Vietnam is THREE DECADES OF SERVICE TO believe in the American ideal of freedom, owe that after years of abuses we finally learned THE RIGHT TO WORK CAUSE thanks to Mr. Faria. I am speaking on their be- how to run the draft fairly. A strictly impartial lottery, with no deferments, can ensure half, and on my own today, to publicly ac- that the draft intake matches military HON. MARILYN N. MUSGRAVE knowledge this gratitude. needs. Chance, not connections or clever ma- OF COLORADO So, Mr. Speaker, today I proudly pay tribute nipulation, would determine who serves. IN THE HOUSE OF REPRESENTATIVES to Mr. Faria and the National Right to Work or- If this war is truly worth fighting, then the ganization with whom he served. Their efforts burdens of doing so should fall on all Ameri- Wednesday, May 5, 2004 have preserved and advanced freedom for in- cans. If you support this war, but assume that Pat Tillman and Other People’s Chil- Mrs. MUSGRAVE. Mr. Speaker, I didn’t dividual workers for more than 35 years. I ap- dren should fight it, then you are worse than know Thomas Faria. But I know of the work plaud their unwavering dedication and tireless a hypocrite. If it’s not worth your family he did. And I know the importance of the fight action on behalf of what should be every fighting it, then it’s not worth it, period. The he waged for years for freedom. I rise today American’s birthright not to be forced to join a draft is the truest test of public support for to give tribute to Thomas Faria and his work. labor union to get or keep a job.

VerDate May 04 2004 05:19 May 06, 2004 Jkt 029060 PO 00000 Frm 00024 Fmt 0626 Sfmt 0634 E:\CR\FM\A05MY8.074 E05PT1 May 5, 2004 CONGRESSIONAL RECORD — Extensions of Remarks E765 SENATE COMMITTEE MEETINGS Governmental Affairs Authorization Request for fiscal year Title IV of Senate Resolution 4, To hold hearings to examine tax payer 2005. dollars subsidizing diploma mills. SR–222 agreed to by the Senate on February 4, SH–216 1977, calls for establishment of a sys- Judiciary MAY 18 tem for a computerized schedule of all Terrorism, Technology and Homeland Se- 9:30 a.m. meetings and hearings of Senate com- curity Subcommittee Foreign Relations mittees, subcommittees, joint commit- To hold hearings to examine rapid bio- To hold hearings to examine the way terrorism detection and response. tees, and committees of conference. ahead in Iraq. SD–226 This title requires all such committees SD–419 to notify the Office of the Senate Daily MAY 12 Digest—designated by the Rules com- MAY 19 9:30 a.m. mittee—of the time, place, and purpose 9:30 a.m. Environment and Public Works of the meetings, when scheduled, and Foreign Relations To hold hearings to examine the environ- any cancellations or changes in the mental regulatory framework affecting To continue hearings to examine the way meetings as they occur. oil refining and gasoline policy. ahead in Iraq. As an additional procedure along SD–406 SD–419 with the computerization of this infor- Foreign Relations 10 a.m. mation, the Office of the Senate Daily To hold hearings to examine the current Banking, Housing, and Urban Affairs Digest will prepare this information for situation in Afghanistan. To hold an oversight hearing to examine printing in the Extensions of Remarks SD–419 the International Monetary Fund and 10 a.m. World Bank. section of the CONGRESSIONAL RECORD SD–538 on Monday and Wednesday of each Appropriations Defense Subcommittee Indian Affairs week. To hold hearings to examine proposed Business meeting to consider pending Meetings scheduled for Thursday, budget estimates for fiscal year 2005 for calendar business; to be followed by a May 6, 2004 may be found in the Daily the Department of Defense. hearing to examine S. 1696, to amend Digest of today’s RECORD. SD–192 the Indian Self-Determination and MEETINGS SCHEDULED Governmental Affairs Education Assistance Act to provide To continue hearings to examine tax further self-governance by Indian payer dollars subsidizing diploma tribes. MAY 7 mills. SR–485 9:30 a.m. SD–342 11:30 a.m. Armed Services Indian Affairs Energy and Natural Resources Closed business meeting to markup pro- To hold hearings to examine S. 1715, to Business meeting to consider pending posed legislation authorizing appro- amend the Indian Self-Determination calendar business. priations for fiscal year 2005 for mili- and Education Assistance Act to pro- SD–366 tary activities for the Department of vide further self-governance by Indian Defense. tribes. MAY 20 SR–222 SR–485 9:30 a.m. Joint Economic Committee Judiciary Indian Affairs To hold a hearing to examine the em- To hold hearings to examine S. 2013, to To hold hearings to examine S. 2382, to ployment situation for April. amend section 119 of title 17, United establish grant programs for the devel- 1334 LHOB States Code, to extend satellite home opment of telecommunications capac- 11:45 a.m. viewer provisions. Armed Services SD–226 ities in Indian country. To hold hearings to examine allegations SR–485 of mistreatment of Iraqi prisoners. MAY 13 2:30 p.m. SD–106 Energy and Natural Resources 9:30 a.m. National Parks Subcommittee Foreign Relations To hold hearings to examine S. 1672, to MAY 11 To hold hearings to examine combating expand the Timucuan Ecological and 9:30 a.m. corruption in the multilateral develop- Historic Preserve, Florida, S. 1789 and Foreign Relations ment banks. H.R. 1616, bills to authorize the ex- To hold hearings to examine the deadly SD–419 change of certain lands within the Mar- intersection of AIDS and hunger. 10 a.m. tin Luther King, Junior, National His- SD–419 Agriculture, Nutrition, and Forestry toric Site for lands owned by the City 10 a.m. To hold hearings to examine Commodity of Atlanta, Georgia, S. 1808, to provide Health, Education, Labor, and Pensions Futures Trading Commission regu- for the preservation and restoration of Aging Subcommittee latory issues. historic buildings at historically wom- To hold hearings to examine break- SD–106 throughs in Alzheimer’s research. Health, Education, Labor, and Pensions en’s public colleges or universities, S. SD–430 Children and Families Subcommittee 2167, to establish the Lewis and Clark Energy and Natural Resources To hold hearings to examine causes, re- National Historical Park in the States To hold hearings to examine the impacts search and prevention of premature of Washington and Oregon, and S. 2173, and costs of last year’s fires, focusing births. to further the purposes of the Sand on the problems faced last year and SD–430 Creek Massacre National Historic Site what problems agencies and the land 2 p.m. Establishment Act of 2000. they oversee may face next season, in- Health, Education, Labor, and Pensions SD–366 cluding aerial fire fighting assests and To hold hearings to examine prescription crew, and overhead availability. drug reimportation. SEPTEMBER 21 SD–366 SD–430 10 a.m. Agriculture, Nutrition, and Forestry 2:30 p.m. Veterans’ Affairs Forestry, Conservation, and Rural Revital- Armed Services To hold joint hearings with the House ization Subcommittee Readiness and Management Support Sub- Committee on Veterans’ Affairs to ex- To hold hearings to examine conserva- committee amine the legislative presentation of tion programs of the 2002 Farm bill. To hold hearings to examine acquisition the American Legion. SD–628 policy issues in review of the Defense 345 CHOB

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HIGHLIGHTS House committees ordered reported 26 sundry measures. The House passed H.R. 4227, Middle-Class Alternative Tax Relief Act of 2004. Senate ferred foreign income that can be repatriated at a Chamber Action lower rate. Pages S4861–68, S4883–85 Routine Proceedings, pages S4853–S4930 By 22 yeas to 77 nays (Vote No. 82), Graham Measures Introduced: Seven bills and one resolu- (FL) Amendment No. 3112, to strike the deduction tion were introduced, as follows: S. 2383–2389, and relating to income attributable to United States pro- S. Res. 352. Pages S4910–11 duction activities and the international tax provisions Measures Reported: and allow a credit for manufacturing wages. S. 2386, to authorize appropriations for fiscal year Pages S4861, S4874–77, S4878–82, S4882–83, S4885 2005 for intelligence and intelligence-related activi- Dorgan Amendment No. 3110, to provide for the ties of the United States Government, the Intel- taxation of income of controlled foreign corporations ligence Community Management Account, and the attributable to imported property. (By 60 yeas to 39 Central Intelligence Agency Retirement and Dis- nays (Vote No. 83), Senate tabled the amendment.) ability System. Page S4910 Pages S4861, S4869–74, S4885–94 Measures Passed: Pending: Cantwell/Voinovich Amendment No. 3114, to ex- Remembrance of World War II Veterans Day: tend the Temporary Extended Unemployment Com- Committee on the Judiciary was discharged from pensation Act of 2002. Page S4861 further consideration of S.J. Res. 34, designating A unanimous-consent agreement was reached pro- May 29, 2004, on the occasion of the dedication of the National World War II Memorial, as Remem- viding for further consideration of the bill at 11 brance of World War II Veterans Day, and the joint a.m., on Thursday, May 6, 2004. Page S4922 resolution was then passed. Pages S4921–22 Appointments: Jumpstart Our Business Strength (JOBS) Act: Mexico-U.S. Interparliamentary Group: The Senate continued consideration of S. 1637, to amend Chair, on behalf of the Vice President, pursuant to the Internal Revenue Code of 1986 to comply with 22 U.S.C. 276h–276k, as amended, appointed the the World Trade Organization rulings on the FSC/ following Senator as a member of the Senate Delega- ETI benefit in a manner that preserves jobs and pro- tion to the Mexico-U.S. Interparliamentary Group duction activities in the United States, to reform and during the Second Session of the 108th Congress: simplify the international taxation rules of the Senator Bingaman. Page S4921 United States, taking action on the following NATO Parliamentary Assembly: The Chair, on amendments proposed thereto: Pages S4861–97 behalf of the Vice President, in accordance with 22 Adopted: By 76 yeas to 23 nays (Vote No. 84), Allard U.S.C. 1928–1928d, as amended, appointed the fol- Amendment No. 3118, to provide for a brownfields lowing Senators as members of the Senate Delegation demonstration program for qualified green building to the NATO Parliamentary Assembly during the Second Session of the 108th Congress: Senators Hol- and sustainable design projects. Pages S4882, S4894–95 Rejected: lings and Miller. Page S4921 By 31 yeas to 68 nays (Vote No. 81), Breaux Nominations Confirmed: Senate confirmed the fol- Amendment No. 3117, to limit the amount of de- lowing nominations: D451

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A. Paul Anderson, of Florida, to be a Federal Mar- AUTHORIZATION—DEFENSE itime Commissioner for the term expiring June 30, Committee on Armed Services: Subcommittee on Readi- 2007. ness and Management Support met in closed session Paul V. Applegarth, of Connecticut, to be Chief and approved for full committee consideration, those Executive Officer, Millennium Challenge Corpora- provisions which fall within the jurisdiction of the tion. (New Position) subcommittee, of proposed legislation authorizing Joseph E. Brennan, of Maine, to be a Federal Mar- appropriations for fiscal year 2005 for military ac- itime Commissioner for the term expiring June 30, tivities of the Department of Defense. 2008. (Reappointment) Page S4930 AUTHORIZATION—DEFENSE Messages From the House: Page S4906 Committee on Armed Services: Subcommittee on Stra- Measures Referred: Page S4906 tegic Forces met in closed session and approved for full committee consideration, those provisions which Executive Communications: Pages S4906–07 fall within the jurisdiction of the subcommittee, of Petitions and Memorials: Pages S4907–10 proposed legislation authorizing appropriations for Additional Cosponsors: Pages S4911–12 fiscal year 2005 for military activities of the Depart- ment of Defense. Statements on Introduced Bills/Resolutions: Pages S4912–18 AUTHORIZATION—DEFENSE Additional Statements: Pages S4902–06 Committee on Armed Services: Committee met in closed session to mark up proposed legislation authorizing Amendments Submitted: Pages S4918–20 appropriations for fiscal year 2005 for military ac- Notices of Hearings/Meetings: Page S4920 tivities of the Department of Defense, but did not Authority for Committees to Meet: Pages S4920–21 complete action thereon, and will meet again on tomorrow. Privilege of the Floor: Page S4921 STEROID USE Record Votes: Four record votes were taken today. (Total—84) Pages S4884, S4885, S4994, S4995 Committee on Commerce, Science, and Transportation: Committee held a closed hearing to examine the use Adjournment: Senate convened at 9:30 a.m., and of steroids by United States Olympic Athletes, re- adjourned at 8:18 p.m., until 9:30 a.m., on Thurs- ceiving testimony from Terrence P. Madden, United day, May 6, 2004. (For Senate’s program, see the re- States Anti-Doping Agency, and William C. Martin, marks of the Majority Leader in today’s Record on United States Olympic Committee, both of Colorado page S4922.) Springs, Colorado; and Donald Catlin, University of California, Los Angeles School of Medicine Depart- ment of Pharmacology, Los Angeles. Committee Meetings Hearing recessed subject to the call of the chair. (Committees not listed did not meet) SPACE LAUNCH CAPABILITIES Committee on Commerce, Science, and Transportation: Sub- APPROPRIATIONS: DEPARTMENT OF committee on Science, Technology, and Space con- DEFENSE cluded a hearing to examine the space shuttle and Committee on Appropriations: Subcommittee on Defense the future of space launch, focusing on the Inter- concluded a hearing to examine proposed budget es- national Space Station, defense launch systems, the timates for fiscal year 2005 for defense-related pro- civil and commercial perspectives, expendable versus grams, after receiving testimony from numerous reusable launch vehicles, and ensuring fairness in contracting, after receiving testimony from William public witnesses. F. Readdy, Associate Administrator for Space Flight, and Rear Admiral Craig E. Steidle, U.S. Navy (Ret.), AUTHORIZATION—DEFENSE Associate Administrator for Exploration Systems, Committee on Armed Services: Subcommittee on Per- both of the National Aeronautics and Space Admin- sonnel met in closed session and approved for full istration; Michael Kahn, ATK Thiokol Inc., committee consideration, those provisions which fall Brigham City, Utah; John C. Karas, Lockheed Mar- within the jurisdiction of the subcommittee, of pro- tin Space Systems Company, Denver, Colorado; Rob- posed legislation authorizing appropriations for fiscal ert A. Hickman, Aerospace Corporation, Arlington, year 2005 for military activities of the Department Virginia; and Elon Musk, Space Exploration Tech- of Defense. nologies Corporation, El Segundo, California.

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PUBLIC LANDS CONVEYANCES pact of divorce, drug use and poverty on children Committee on Energy and Natural Resources: Sub- and marriage, receiving testimony from Julie committee on Public Lands and Forests concluded a Baumgardner, First Things First, Chattanooga, Ten- hearing to examine S. 155, to convey to the town nessee; Dwayne Grimes, Dominick Walker, and Jo- of Frannie, Wyoming, certain land withdrawn by the seph T. Jones, all on behalf of the Center for Fathers, Commissioner of Reclamation, S. 2285, to direct the Families, and Workforce Development, Baltimore, Secretary of the Interior to convey a parcel of real Maryland; Kathryn J. Edin, Northwestern University property to Beaver County, Utah, S. 1521, to direct Department of Sociology, Evanston, Illinois; Ron the Secretary of the Interior to convey certain land Haskins, Brookings Institution, and Theodora Ooms, to the Edward H. McDaniel American Legion Post Center for Law and Social Policy, both of Wash- No. 22 in Pahrump, Nevada, for the construction of ington, D.C.; and Scott M. Stanley, University of a post building and memorial park for use by the Denver Center for Marital and Family Studies, Den- American Legion, other veterans’ groups, and the ver, Colorado. local community, S. 1826, to direct the Secretary of Hearing recessed subject to the call of the Chair. the Interior to convey certain land in Washoe Coun- TERRORISM: MATERIAL SUPPORT ty, Nevada, to the Board of Regents of the Univer- STATUTE sity and Community College System of Nevada, S. 2085, to modify the requirements of the land con- Committee on the Judiciary: Committee concluded an veyance to the University of Nevada at Las Vegas oversight hearing to examine the material support Research Foundation, and H.R. 1658, to amend the statute relating to aiding terrorists, focusing on how Railroad Right-of-Way Conveyance Validation Act material support statutes have been crucial in efforts to validate additional conveyances of certain lands in in the investigation and prosecution of terrorists, and the State of California that form part of the right- in the protection from future terrorist attacks, after of-way granted by the United States to facilitate the receiving testimony from Christopher A. Wray, As- construction of the transcontinental railway, after re- sistant Attorney General, Criminal Division, Daniel ceiving testimony from Senators Hatch and Reid; J. Bryant, Assistant Attorney General, Office of Bob Anderson, Deputy Assistant Director, Minerals, Legal Policy, and Gary M. Bald, Assistant Director, Realty and Resource Protection, Bureau of Land Counterterrorism Division, Federal Bureau of Inves- Management, Department of the Interior; Mark tigation, all of the Department of Justice; and David Whitney, Beaver County Commission, Beaver, Utah; Cole, Georgetown University Law Center, and Paul Stephen G. Wells, Desert Research Institute, Reno, Rosenzweig, Heritage Foundation, both of Wash- Nevada; and John F. Gallagher, University of Ne- ington, D.C. vada, Las Vegas. INTELLIGENCE HEALTHY MARRIAGE Select Committee on Intelligence: Committee held closed Committee on Finance: Subcommittee on Social Secu- hearings on intelligence matters, receiving testimony rity and Family Policy held a hearing to examine the from officials of the intelligence community. benefits of a healthy marriage, focusing on the im- Committee recessed subject to call. h House of Representatives Chaplain: The prayer was offered today by Com- Chamber Action mander Maurice S. Kaprow, Chaplain Corps, U.S. Measures Introduced: Measures introduced will ap- Naval Reserve in Norfolk, Virginia. Page H2551 pear in the next issue. Middle-Class Alternative Minimum Tax Relief Additional Cosponsors: See next issue. Act of 2004: The House passed H.R. 4227, to Reports Filed: Reports were filed today as follows: amend the Internal Revenue Code of 1986 to extend H.R. 4061, to amend the Foreign Assistance Act to 2005 the alternative minimum tax relief available of 1961 to provide assistance for orphans and other in 2003 and 2004 and to index such relief for infla- vulnerable children in developing countries (H. tion, by a yea-and-nay vote of 333 yeas to 89 nays, Rept. 108–479). See next issue. Roll No. 144. Pages H2561–85

VerDate May 04 2004 05:16 May 06, 2004 Jkt 029060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D05MY4.REC D05MY4 D454 CONGRESSIONAL RECORD — DAILY DIGEST May 5, 2004 Rejected the Neal amendment in the nature of a ing the sense of Congress regarding the arbitrary de- substitute printed in H. Rept. 108–477 by a yea- tention of Dr. Wang Bingzhang by the Government and-nay vote of 197 yeas to 228 nays, Roll No. 143. of the People’s Republic of China and urging his Pages H2570–84 immediate release; and Pages H2614–17 H. Res. 619, the rule providing for consideration Expressing the concern of Congress over Iran’s of the bill was agreed to by voice vote, after agreeing development of the means to produce nuclear weap- to order the previous question by a yea-and-nay vote ons: H. Con. Res. 398, expressing the concern of of 220 yeas to 201 nays, Roll No. 142. Congress over Iran’s development of the means to Pages H2555–61 produce nuclear weapons. Pages H2617–23 Concurrent Resolution on the Budget for FY Amendment to the Communications Satellite 2005—Motion to Instruct Conferees: The House Act of 1962: Agreed by unanimous consent to pass rejected the Moore motion to instruct conferees on S. 2315, to amend the Communications Satellite Act S. Con. Res. 95, original concurrent resolution set- of 1962 to extend the deadline for the INTELSAT ting forth the congressional budget for the United initial public offering—clearing the measure for the States Government for fiscal year 2005 and includ- President. Page H2600 ing the appropriate budgetary levels for fiscal years Quorum Calls—Votes: Five yea-and-nay votes de- 2006 through 2009, by a yea-and-nay vote of 208 veloped during the proceedings of today and appear yeas to 215 nays, Roll No.145. on pages H2560–61, H2584, H2584–85, Pages H2585–93, H2598–99 H2598–99, and H2599. There were no quorum Suspensions: The House agreed to suspend the rules calls. and pass the following measures: Adjournment: The House met at 10 a.m. and at Recognizing the importance of increasing aware- 11:50 p.m. stands in recess subject to the call of the ness of autism: H. Res. 605, amended, recognizing chair. the importance of increasing awareness of autism, supporting programs for increased research and improved treatment of autism, improving training and Committee Meetings support for individuals with autism and those who NATIONAL DEFENSE AUTHORIZATION care for individuals with autism, by a 2⁄3 yea-and-nay ACT vote of 421 yeas with none voting ‘‘nay’’, Roll No. Committee on Armed Services: Subcommittee on Projec- 146; Pages H2593–98, H2599–S2600 tion Forces approved for full Committee action H.R. Amending the Safe Drinking Water Act: H.R. 4200, National Defense Authorization Act for Fiscal 2771, to amend the Safe Drinking Water Act to re- Year 2005. authorize the New York City Watershed Protection NATIONAL DEFENSE AUTHORIZATION Program; and Pages H2600–05 ACT Small Public Housing Authority Act: H.R. 27, Committee on Armed Services: Subcommittee on Ter- amended, to amend the United States Housing Act rorism Unconventional Threats and Capabilities ap- of 1937 to exempt small public housing agencies proved for full Committee action H.R. 4200, Na- from the requirement of preparing an annual public tional Defense Authorization Act for Fiscal Year housing agency plan. Pages H2605–07 2005. Suspensions—Proceedings Postponed: The House NATIONAL DEFENSE AUTHORIZATION completed debate on the following measures under ACT suspension of the rules. Further proceedings were postponed until Thursday, May 6. Committee on Armed Services: Subcommittee on Total Sense of the House regarding the Lao People’s Force approved for full Committee action, as amend- Democratic Republic: ed, H.R. 4200, National Defense Authorization Act H. Res. 402, expressing the for Fiscal Year 2005. sense of the House of Representatives regarding the urgent need for freedom, democratic reform, and MISCELLANEOUS MEASURES international monitoring of elections, human rights, Committee on Education and the Workforce: Ordered re- and religious liberty in the Lao People’s Democratic ported, as amended, the following bills: H.R. 2728, Republic; Pages H2607–14 Occupational Safety and Health Small Business Day Sense of Congress regarding the detention of Dr. in Court Act of 2003; H.R. 2729, Occupational Wang Bingzhang by the Government of the Peo- Safety and Health Review Commission Efficiency ple’s Republic of China: H. Con. Res. 326, express- Act of 2003; H.R. 2730, Occupational Safety and

VerDate May 04 2004 05:16 May 06, 2004 Jkt 029060 PO 00000 Frm 00004 Fmt 0627 Sfmt 0627 E:\CR\FM\D05MY4.REC D05MY4 May 5, 2004 CONGRESSIONAL RECORD — DAILY DIGEST D455 Health Independent Review of OSHA Citations Act MIDDLE EAST—WATER SCARCITY of 2003; and H.R. 2731, Occupational Safety and Committee on International Relations: Held a hearing on Health Small Employer Access to Justice Act of Water Scarcity in the Middle East: Regional Co- 2003. operation as a Mechanism Toward Peace. Testimony ALASKA NATURAL GAS PIPELINE STATUS was heard from the following officials of the Depart- REPORT ment of State: John F. Turner, Assistant Secretary, Bureau of Oceans and International Environmental Committee on Energy and Commerce: Subcommittee on and Scientific Affairs; David Satterfield, Deputy As- Energy and Air Quality held a hearing entitled sistant Secretary, Bureau of Near Eastern Affairs; and ‘‘Alaska Natural Gas Pipeline Status Report.’’ Testi- James Kunder, Deputy Assistant Administrator, Bu- mony was heard from Senator Murkowski; Patrick reau for Asia and the Near East, AID; and public Wood III, Chairman, Federal Energy Regulatory witnesses. Commission, Department of Energy; and public witnesses. SOCIAL INVESTMENT AND ECONOMIC DEVELOPMENT FUND FOR THE AMERICAS PHYSICIAN FEE SCHEDULE—CURRENT ACT MEDICARE PAYMENT SCHEDULE REVIEW Committee on International Relations: Subcommittee on Committee on Energy and Commerce: Subcommittee on Western Hemisphere approved for full Committee Health held a hearing entitled ‘‘Physician Fee Sched- action H.R. 3447, Social Investment and Economic ule: A Review of the Current Medicare Payment Sys- Development Fund for the Americas Act of 2003. tem.’’ Testimony was heard from Bruce Steinwald, Director, Health Care—Medicare Payments Issues, CONSTITUTIONAL AMENDMENT GAO; Douglas Holtz-Eakin, Director, CBO; and REGARDING APPOINTMENT OF Glenn Hackbarth, Chairman, Medicare Payment Ad- INDIVIDUALS TO FILL HOUSE VACANCIES; visory Commission. TERRORIST PENALTIES ENHANCEMENT ACT ZERO DOWNPAYMENT ACT Committee on the Judiciary: Ordered reported, ad- Committee on Financial Services: Subcommittee on versely, H.J. Res. 83, Proposing an amendment to Housing and Community Opportunity approved for the Constitution of the United States regarding the full Committee action, as amended, H.R. 3755, Zero appointment of individuals to fill vacancies in the Downpayment Act of 2004. House of Representatives. The Committee also began markup of H.R. 2934, INTERIOR DEPARTMENT’S TRIBAL Terrorist Penalties Enhancement Act of 2003. RECOGNITION PROCESS Committee on Government Reform: Held a hearing enti- MISCELLANEOUS MEASURES tled ‘‘Betting on Transparency: Toward Fairness and Committee on Resources: Ordered reported the following Integrity in the Interior Department’s Tribal Rec- bills: H.R. 142, amended, To amend the Reclama- ognition Process.’’ Testimony was heard from the tion Wastewater and Groundwater Study and Facili- following officials of the Department of the Interior: ties Act to authorize the Secretary of the Interior to Theresa Rosier, Counselor to the Assistant Secretary, participate in the Inland Empire regional water recy- Indian Affairs; and Earl E. Devaney, Inspector Gen- cling project, to authorize the Secretary to carry out eral; the following officials of the State of Con- a program to assist agencies in projects to construct necticut: Richard Blumenthal, Attorney General; and regional brine lines in California, and to authorize Mark D. Boughton, Mayor, City of Danbury; and the Secretary to participate in the Lower Chino public witnesses. Dairy Area desalination demonstration and reclamation project; H.R. 1014, amended, Gateway Com- WILDFIRES IN THE WEST munities Cooperation Act; H.R. 2010, amended, To Committee on Government Reform: Subcommittee on protect the voting rights of members of the Armed Energy Policy, Natural Resources and Regulatory Services in elections for the Delegate representing Affairs held a hearing entitled ‘‘Wildfires in the American Samoa in the United States House of Rep- West—Is the Bush Administration’s Response Ade- resentatives; H.R. 2201, National War Permanent quate?’’ Testimony was heard from P. Lynn Scarlett, Tribute Historical Database Act; H.R. 2663, To au- Assistant Secretary, Policy, Management, and Budg- thorize the Secretary of the Interior to study the et, Department of the Interior; Mark E. Rey, Under suitability and feasibility of designating Castle Secretary, Natural Resources and Environment, Nugent Farms located on St. Criox, Virgin Islands, USDA; and public witnesses. as a unit of the National Park System; H.R. 2828,

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amended, Water Supply, Reliability, and Environ- tion, Department of Homeland Security; Ernest R. mental Improvement Act; H.R. 2912, To reaffirm Frazier, Sr., Chief of Police and Security Department, the inherent sovereign rights of the Osage Tribe to Amtrak; and public witnesses. determine its membership and form of government; H.R. 2966, amended, Right-to-Ride Livestock on AGOA ACCELERATION ACT Federal Lands Act of 2003; H.R. 2991, Inland Em- Committee on Ways and Means: Ordered reported, as pire Regional Water Recycling Initiative; H.R. amended, H.R. 4103, AGOA Acceleration Act of 3247, amended, Trail Responsibility and Account- 2004. ability for the Improvement of Lands Act of 2003; H.R. 3378, Marine Turtle Conservation Act of DCI WRAP UP BUDGET 2003; H.R. 3504, To amend the Indian Self-Deter- Permanent Select Committee on Intelligence: Met in execu- mination and Education Assistance Act to redesig- tive session to hold a hearing on DCI Wrap Up nate the American Indian Education Foundation as Budget. Testimony was heard from departmental the National Fund for Excellence in American Indian witnesses. Education; H.R. 3505, amended, to amend the Bend Pine Nursery Land Conveyance Act to specify the re- DEPARTMENT OF HOMELAND SECURITY— cipients and consideration for conveyance of the MARITIME SECURITY OPERATIONS Bend Pine Nursery; H.R. 3706, John Muir National Historic Site Boundary Adjustment Act; H.R. 3768, Select Committee on Homeland Security: Subcommittee amended, Timucuan Ecological and Historic Preserve on Infrastructure and Border Security held a hearing Boundary Revision Act of 2004; H.R. 3819, amend- entitled ‘‘Maritime Security Operations within the ed, Lewis and Clark National Historical Park Des- Department of Homeland Security.’’ Testimony was ignation Act of 2004; H.R. 3846, amended, Tribal heard from the following officials of the Department Forest Protection Act of 2004; H.R. 3874, amended, of Homeland Security: RADM David S. Belz, To convey for public purposes certain Federal lands USCG, Assistant Commandant for Operations, U.S. in Riverside County, California, that have been iden- Coast Guard; Charles E. Stallworth II, Director, Of- tified for disposal; H.R. 3932, amended, To amend fice of Air and Marine Operations, Bureau of Immi- Public Law 99–338 to authorize the continued use grations and Customs Enforcement; Jayson P. Ahern, of certain lands within the Sequoia National Park by Assistant Commissioner, Office of Field Operations, portions of an existing hydroelectric project; and Bureau of Customs and Border Protection; and Tom H.R. 4114, amended, Migratory Bird Treaty Reform Blank, Assistant Administrator, Policy, Transpor- Act of 2004. tation Security Administration. U.S. COMMISSION ON OCEAN POLICY PRELIMINARY REPORT Joint Meetings Committee on Science: Held a hearing entitled ‘‘U.S. NORTHERN IRELAND MURDER CASES Commission on Ocean Policy Preliminary Report.’’ Testimony was heard from ADM James D. Watkins, Commission on Security and Cooperation in Europe (Hel- USN (Ret.), Chairman, U.S. Commission on Ocean sinki Commission): Commission concluded a hearing Policy; and public witnesses. to examine the impact in Northern Ireland of recently published reports on collusion in prominent IMPROVING THE REGULATORY murder cases, after receiving testimony from Peter FLEXIBILITY ACT Cory, former Canadian Supreme Court Justice, Ot- Committee on Small Business: Held a hearing entitled tawa; Geraldine Finucane, Northern Ireland; and ‘‘Improving the Regulatory Flexibility Act—H.R. Elisa Massimino, Human Rights First, Washington, 2345.’’ Testimony was heard from Representatives D.C. Terry and Pence; Thomas Sullivan, Chief Counsel for f Advocacy, SBA; and public witnesses. COMMITTEE MEETINGS FOR THURSDAY, OVERSIGHT—RAILROAD SECURITY MAY 6, 2004 Committee on Transportation and Infrastructure: Sub- (Committee meetings are open unless otherwise indicated) committee on Railroads held an oversight hearing on Railroad Security, Testimony was heard from Allan Senate Rutter, Administrator, Federal Railroad Administra- Committee on Agriculture, Nutrition, and Forestry: to hold tion, Department of Transportation; Chet Lunner, hearings to examine new opportunities for agriculture, fo- Assistant Administrator, Office of Maritime and cusing on biomass use in energy production, 10 a.m., Land Security, Transportation Security Administra- SD–106.

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Committee on Armed Services: closed business meeting to sary and for its remarkable commitment and contribu- continue markup of proposed legislation authorizing ap- tions to Detroit, the State of Michigan, and the United propriations for fiscal year 2005 for military activities for States; H. Res. 613, Recognizing and honoring the 10th the Department of Defense, 9:30 a.m., SR–222. anniversary of Vietnam Human Rights Day; H.R. 622, Committee on Banking, Housing, and Urban Affairs: busi- Supporting the goals and ideals of Peace Officers Memo- ness meeting to mark up an original bill, The Public rial Day; and H.R. 3740, To designate the facility of the Transportation Terrorism Prevention Act, 10 a.m., United States Postal Service located at 223 South Main SD–538. Street in Roxboro, North Carolina, as the ‘‘Oscar Scott Committee on Commerce, Science, and Transportation: to Woody Postal Office Building,’’ 10 a.m., 2154 Rayburn. hold hearings to examine impacts of climate change and Subcommittee on Human Rights and Wellness, hear- states’ actions, 9:30 a.m., SR–253. ing entitled ‘‘Autism Spectrum Disorders: An Update on Committee on Governmental Affairs: Subcommittee on Federal Government Initiatives and Revolutionary New Oversight of Government Management, the Federal Treatment of Neurodevelopmental Diseases,’’ 2 p.m., Workforce, and the District of Columbia, to hold hear- 2247 Rayburn. ings to examine S. 1668, to establish a commission to conduct a comprehensive review of Federal agencies and Committee on International Relations, hearing on The Cri- programs and to recommend the elimination or realign- sis in Darfur: A New Front in Sudan’s Bloody War; fol- ment of duplicative, wasteful, or outdated functions, 10 lowed by markup of H. Con. Res. 403, Condemning the a.m., SD–342. Government of the Republic of the Sudan for its attacks Committee on the Judiciary: to hold hearings to examine against innocent civilians in the impoverished Darfur re- the nomination of Jonathan W. Dudas, of Virginia, to be gion of western Sudan, 10:30 a.m., 2172 Rayburn. Under Secretary of Commerce for Intellectual Property Committee on the Judiciary, Subcommittee on Courts, the and Director of the United States Patent and Trademark Internet, and Intellectual Property, to mark up the Sat- Office, 2:30 p.m., SD–226 ellite Home Viewer Extension and Reauthorization Act of 2004, 10 a.m., 2141 Rayburn. House Committee on Resources, Subcommittee on National Committee on Appropriations, Subcommittee on Defense, Parks, Recreation and Public Lands, hearing on H.R. executive, on the National Foreign Intelligence Program 3283, Federal Lands Recreation Enhancement Act, 10 Budget, 1:30 p.m., H–405 Capitol. a.m., 1334 Longworth. Committee on Armed Services, Subcommittee on Readi- Committee on Small Business, Subcommittee on Rural En- ness, to mark up H.R. 4200, National Defense Author- terprise, Agriculture and Technology, hearing entitled ization Act for Fiscal Year 2005, 9 a.m., 2118 Rayburn. ‘‘The Benefits of Tax Incentives for Producers of Renew- Subcommittee on Strategic Forces, to mark up H.R. able Fuels and Its Impact on Small Businesses and Farm- 4200, National Defense Authorization Act for Fiscal Year ers,’’ 10 a.m., 311 Cannon. 2005, 11 a.m., 2212 Rayburn. Committee on Transportation and Infrastructure, Sub- Subcommittee on Tactical Air and Land Forces, to committee on Coast Guard and Maritime Transportation, mark up H.R. 4200, National Defense Authorization Act hearing on H.R. 4251, Maritime Transportation Amend- for Fiscal Year 2005, 1 p.m., 2118 Rayburn. ments of 2004, 10 a.m., 2167 Rayburn. Committee on Energy and Commerce, Subcommittee on Committee on Veterans’ Affairs, Subcommittee on Health, Commerce, Trade and Consumer Protection, hearing enti- hearing on the following: H.R. 4020, State Veterans’ tled ‘‘Online Pornography: Closing the Doors on Perva- Homes Nurse Recruitment Act of 2004; H.R. 4231, De- sive Smut,’’ 10 a.m., 2322 Rayburn. partment of Veterans Affairs Nurse Recruitment and Re- Subcommittee on Telecommunications and the Inter- tention Act of 2004; H.R. 3849, Military Sexual Trauma net, hearing entitled ‘‘The ‘Dot Kids’ Internet Domain: Counseling Act of 2004; H.R. 4248, Homeless Veterans Protecting Children Online,’’ 9:30 a.m., 2123 Rayburn. Assistance Reauthorization Act of 2004; and a measure to Committee on Financial Services, Subcommittee on Do- mestic and International Monetary Policy, Trade, and reform the qualifications and selection requirements for Technology, hearing entitled ‘‘Oversight of the Export- the position of the Under Secretary for Health, 9:45 a.m., Import Bank of the United States,’’ 10 a.m., 2128 Ray- 334 Cannon. burn. Permanent Select Committee on Intelligence, executive, Committee on Government Reform, hearing entitled Briefing—Iraqi Prisoner Issues/Abu Ghraib, 10 a.m., ‘‘What’s the Hold Up’’ A Review of Security Clearance H–405 Capitol. Backlog and Reciprocity Issues Plaguing Today’s Govern- Subcommittee on Intelligence Policy and National Se- ment and Private Sector Workforce;’’ and to mark up the curity, executive, briefing on Global Intelligence Update, following measures: H.R. 4259, Department of Home- 9 a.m., H–405 Capitol. land Security Financial Accountability Act; H.R. 4176, Select Committee on Homeland Security. hearing entitled To designate the facility of the United States Postal Serv- ‘‘Progress in Addressing Management Challenges at the ice located at 122 West Elwood Avenue in Raeford, Department of Homeland Security,’’ 10:30 a.m., 2318 North Carolina, as the ‘‘Bobby Marshall Gentry Post Of- Rayburn. fice Building’’; H. Con. Res. 295, Congratulating and saluting Focus: HOPE on the occasion of its 35th anniver-

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Thursday, May 6 10 a.m., Thursday, May 6

Senate Chamber House Chamber Program for Thursday: After the transaction of any Program for Thursday: Rolled votes on Suspensions: morning business (not to extend beyond 11 a.m.), Senate (1) H. Res. 402, expressing the sense of the House of will continue consideration of S. 1637, Jumpstart Our Representatives regarding the urgent need for freedom, Business Strength (JOBS) Act. democratic reform, and international monitoring of elections, human rights, and religious liberty in the Lao Peo- ple’s Democratic Republic; (2) H. Con. Res. 326, expressing the sense of Congress regarding the arbitrary detention of Dr. Wang Bingzhang by the Government of the People’s Republic of China and urging his immediate release; (3) H. Con. Res. 398, expressing the concern of Con- gress over Iran’s development of the means to produce nuclear weapons.

Extensions of Remarks, as inserted in this issue

HOUSE Forbes, J. Randy, Va., E746 Pombo, Richard W., Calif., E744 Gerlach, Jim, Pa., E741, E743 Portman, Rob, Ohio, E743 Alexander, Rodney, La., E753 Houghton, Amo, N.Y., E748 Price, David E., N.C., E749 Baca, Joe, Calif., E742, E745 Johnson, Sam, Tex., E761 Ramstad, Jim, Minn., E757 Beauprez, Bob, Colo., E761 Lantos, Tom, Calif., E741, E751, E752 Rangel, Charles B., N.Y., E746, E763 Berry, Marion, Ark., E753 Latham, Tom, Iowa, E743 Ros-Lehtinen, Ileana, Fla., E762 Bishop, Sanford D., Jr., Ga., E758 Lipinski, William O., Ill., E743 Schrock, Edward L., Va., E750 Bishop, Timothy H., Jr., N.Y., E758 McCarthy, Karen, Mo., E762 Shaw, E. Clay, Jr., Fla., E761 Boehner, John A., Ohio, E755, E761 McInnis, Scott, Colo., E741, E742, E744, E745, E746, Shimkus, John, Ill., E759, E760 Burgess, Michael C., Tex., E742 E747, E748, E750 Smith, Christopher H., N.J., E747 Castle, Michael N., Del., E748 McIntyre, Mike, N.C., E754 Smith, Nick, Mich., E759, E760 Conyers, John, Jr., Mich., E745 McKeon, Howard P. ‘‘Buck’’, Calif., E757 Solis, Hilda L., Calif., E759, E760, E760 Crenshaw, Ander, Fla., E747 Meek, Kendrick B., Fla., E742, E742 Stenholm, Charles W., Tex., E754 Cunningham, Randy ‘‘Duke’’, Calif., E744 Musgrave, Marilyn N., Colo., E764 Tiberi, Patrick J., Ohio, E755 Diaz-Balart, Lincoln, Fla., E763 Nadler, Jerrold, N.Y., E750, E759 Towns, Edolphus, N.Y., E748 Dingell, John D., Mich., E748 Nethercutt, George R., Jr., Wash., E747 Udall, Tom, N.M., E749 Emanuel, Rahm, Ill., E745 Norton, Eleanor Holmes, D.C., E753, E754 Vela´ zquez, Nydia M., N.Y., E758 English, Phil, Pa., E759 Nunes, Devin, Calif., E764 Walden, Greg, Ore., E757 Ferguson, Mike, N.J., E752 Payne, Donald M., N.J., E755

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