S2926 CONGRESSIONAL RECORD — SENATE April 24, 2013 The PRESIDING OFFICER. Is there fied by the State under subparagraph (A) to (c) SMALL SELLER EXCEPTION.—A State is objection? Without objection, it is so which the authority of this Act shall not authorized to require a remote seller to col- ordered. apply; and lect sales and use taxes under this Act only (The foregoing tally has been (2) implements each of the following min- if the remote seller has gross annual receipts imum simplification requirements: in total remote sales in the United States in changed to reflect the above order.) (A) Provide— the preceding calendar year exceeding VOTE EXPLANATION (i) a single entity within the State respon- $1,000,000. For purposes of determining ∑ Mr. COWAN. Madam President, I was sible for all State and local sales and use tax whether the threshold in this section is met, necessarily absent from votes during administration, return processing, and au- the gross annual receipts from remote sales today’s session. Had I been present for dits for remote sales sourced to the State; of 2 or more persons shall be aggregated if— the votes, I would have supported the (ii) a single audit of a remote seller for all (1) such persons are related to the remote seller within the meaning of subsections (b) nominations of Jane Kelly, of Iowa, to State and local taxing jurisdictions within that State; and and (c) of section 267 or section 707(b)(1) of be United States Circuit Judge for the (iii) a single sales and use tax return to be the Internal Revenue Code of 1986; or Eighth Circuit and Sylvia Mathews used by remote sellers to be filed with the (2) such persons have 1 or more ownership Burwell, of West Virginia, to be Direc- single entity responsible for tax administra- relationships and such relationships were de- tor of the Office of Management and tion. signed with a principal purpose of avoiding Budget. I would have also supported A State may not require a remote seller to the application of these rules. the motion to proceed to S. 743, the file sales and use tax returns any more fre- SEC. 3. LIMITATIONS. Marketplace Fairness Act.∑ quently than returns are required for non- (a) IN GENERAL.—Nothing in this Act shall remote sellers or impose requirements on re- be construed as— f mote sellers that the State does not impose (1) subjecting a seller or any other person MARKETPLACE FAIRNESS ACT OF on nonremote sellers with respect to the col- to franchise, income, occupation, or any 2013 lection of sales and use taxes under this Act. other type of taxes, other than sales and use No local jurisdiction may require a remote taxes; The PRESIDING OFFICER. The seller to submit a sales and use tax return or (2) affecting the application of such taxes; clerk will report the bill. to collect sales and use taxes other than as or The legislative clerk read as follows: provided by this paragraph. (3) enlarging or reducing State authority A bill (S. 743) to restore States’ sovereign (B) Provide a uniform sales and use tax to impose such taxes. (b) NO EFFECT ON NEXUS.—This Act shall rights to enforce State and local sales and base among the State and the local taxing not be construed to create any nexus or alter use tax laws, and for other purposes. jurisdictions within the State pursuant to paragraph (1). the standards for determining nexus between The PRESIDING OFFICER. The ma- (C) Source all remote sales in compliance a person and a State or locality. jority leader. with the sourcing definition set forth in sec- (c) NO EFFECT ON SELLER CHOICE.—Nothing AMENDMENT NO. 741 tion 4(7). in this Act shall be construed to deny the Mr. REID. Madam President, on be- (D) Provide— ability of a remote seller to deploy and uti- lize a certified software provider of the sell- half of Senators Enzi, Durbin, and oth- (i) information indicating the taxability of products and services along with any product er’s choice. ers, I have an amendment at the desk and service exemptions from sales and use (d) LICENSING AND REGULATORY REQUIRE- and I ask the clerk to report. tax in the State and a rates and boundary MENTS.—Nothing in this Act shall be con- The PRESIDING OFFICER. The database; strued as permitting or prohibiting a State clerk will report the amendment. (ii) software free of charge for remote sell- from— The legislative clerk read as follows: ers that calculates sales and use taxes due on (1) licensing or regulating any person; each transaction at the time the transaction (2) requiring any person to qualify to The Senator from Nevada [Mr. REID], for is completed, that files sales and use tax re- transact intrastate business; Mr. ENZI, Mr. DURBIN, Mr. ALEXANDER, and turns, and that is updated to reflect rate (3) subjecting any person to State or local Ms. HEITKAMP, proposes an amendment num- taxes not related to the sale of products or bered 741. changes as described in subparagraph (H); and services; or The amendment is as follows: (iii) certification procedures for persons to (4) exercising authority over matters of Beginning on page 2, line 10, strike ‘‘if the be approved as certified software providers. interstate commerce. Streamlined’’ and all that follows through For purposes of clause (iii), the software pro- (e) NO NEW TAXES.—Nothing in this Act page 11, line 5, and insert the following: vided by certified software providers shall be shall be construed as encouraging a State to if any changes to the Streamlined Sales and capable of calculating and filing sales and impose sales and use taxes on any products Use Tax Agreement made after the date of use taxes in all States qualified under this or services not subject to taxation prior to the enactment of this Act are not in conflict Act. the date of the enactment of this Act. with the minimum simplification require- (E) Relieve remote sellers from liability to (f) NO EFFECT ON INTRASTATE SALES.—The ments in subsection (b)(2). A State may exer- the State or locality for the incorrect collec- provisions of this Act shall apply only to re- cise authority under this Act beginning 180 tion, remittance, or noncollection of sales mote sales and shall not apply to intrastate days after the State publishes notice of the and use taxes, including any penalties or in- sales or intrastate sourcing rules. States State’s intent to exercise the authority terest, if the liability is the result of an granted authority under section 2(a) shall under this Act, but no earlier than the first error or omission made by a certified soft- comply with all intrastate provisions of the day of the calendar quarter that is at least ware provider. Streamlined Sales and Use Tax Agreement. 180 days after the date of the enactment of (F) Relieve certified software providers (g) NO EFFECT ON MOBILE TELECOMMUNI- this Act. from liability to the State or locality for the CATIONS SOURCING ACT.—Nothing in this Act (b) ALTERNATIVE.—A State that is not a incorrect collection, remittance, or non- shall be construed as altering in any manner Member State under the Streamlined Sales collection of sales and use taxes, including or preempting the Mobile Telecommuni- and Use Tax Agreement is authorized not- any penalties or interest, if the liability is cations Sourcing Act (4 U.S.C. 116–126). withstanding any other provision of law to the result of misleading or inaccurate infor- SEC. 4. DEFINITIONS AND SPECIAL RULES. require all sellers not qualifying for the mation provided by a remote seller. In this Act: small seller exception described in sub- (G) Relieve remote sellers and certified (1) CERTIFIED SOFTWARE PROVIDER.—The section (c) to collect and remit sales and use software providers from liability to the term ‘‘certified software provider’’ means a taxes with respect to remote sales sourced to State or locality for incorrect collection, re- person that— that State, but only if the State adopts and mittance, or noncollection of sales and use (A) provides software to remote sellers to implements the minimum simplification re- taxes, including any penalties or interest, if facilitate State and local sales and use tax quirements in paragraph (2). Such authority the liability is the result of incorrect infor- compliance pursuant to section 2(b)(2)(D)(ii); shall commence beginning no earlier than mation or software provided by the State. and the first day of the calendar quarter that is (H) Provide remote sellers and certified (B) is certified by a State to so provide at least 6 months after the date that the software providers with 90 days notice of a such software. State— rate change by the State or any locality in (2) LOCALITY; LOCAL.—The terms ‘‘locality’’ (1) enacts legislation to exercise the au- the State and update the information de- and ‘‘local’’ refer to any political subdivision thority granted by this Act— scribed in subparagraph (D)(i) accordingly of a State. (A) specifying the tax or taxes to which and relieve any remote seller or certified (3) MEMBER STATE.—The term ‘‘Member such authority and the minimum simplifica- software provider from liability for col- State’’— tion requirements in paragraph (2) shall lecting sales and use taxes at the imme- (A) means a Member State as that term is apply; and diately preceding effective rate during the used under the Streamlined Sales and Use (B) specifying the products and services 90-day notice period if the required notice is Tax Agreement as in effect on the date of the otherwise subject to the tax or taxes identi- not provided. enactment of this Act; and

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00018 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2927 (B) does not include any associate member Mr. REID. Madam President, I now skills our employers need. Getting a under the Streamlined Sales and Use Tax ask unanimous consent that Senator job is a two-way street. Both Hoosier Agreement. DONNELLY be recognized for up to 20 companies and Hoosier workers have (4) PERSON.—The term ‘‘person’’ means an individual, trust, estate, fiduciary, partner- minutes to give his maiden speech, and responsibilities. We can’t expect a good ship, corporation, limited liability company, he will proceed as in morning business. job and good pay if we don’t bring some or other legal entity, and a State or local Following his speech, I ask unanimous skills to the table. government. consent that Senator DURBIN, the man- I heard from a welding trainer in (5) REMOTE SALE.—The term ‘‘remote sale’’ ager of the bill, be recognized. Gary, IN, from an IT company in means a sale into a State, as determined The PRESIDING OFFICER. Without Noblesville, and from rural health care under the sourcing rules under paragraph (7), objection, it is so ordered. providers in Terre Haute, IN, and the in which the seller would not legally be re- The Senator from Indiana. quired to pay, collect, or remit State or local message was the same, and it resonates AN OPPORTUNITY AGENDA sales and use taxes unless provided by this across the board and across the State: Act. Mr. DONNELLY. Madam President, Employers need more skilled workers. (6) REMOTE SELLER.—The term ‘‘remote one of the best parts about this job is Good skills equal good jobs. seller’’ means a person that makes remote getting the chance to talk to Hoosiers That is why I helped introduce the sales in the State. here in Washington, back home in Indi- bipartisan AMERICA Works Act, which (7) SOURCED.—For purposes of a State ana, and, on those special occasions, a modifies Federal training programs to granted authority under section 2(b), the lo- chance to see our Hoosiers when they place a priority on those programs and cation to which a remote sale is sourced re- are serving our country overseas. fers to the location where the product or those certifications demanded by to- service sold is received by the purchaser, When I was visiting our servicemem- day’s businesses and today’s industries. based on the location indicated by instruc- bers in Afghanistan in Khost Province The improvements in this bill are a tions for delivery that the purchaser fur- in July 2009, I asked our Indiana Na- benefit for both workers and employ- nishes to the seller. When no delivery loca- tional Guard members if there was one ers. Workers would know the time they tion is specified, the remote sale is sourced thing I could do for them, what would to the customer’s address that is either spend training is more likely to lead to that be? I expected them to tell me a good job. For employers, they will be known to the seller or, if not known, ob- about safety vests or about new trucks. tained by the seller during the consumma- more likely to hire people they know tion of the transaction, including the address They said, JOE, we have this handled have the training they need to be pro- of the customer’s payment instrument if no here. What we need more than any- ductive the moment they walk in the other address is available. If an address is thing is a chance to have a job when we door. get home. We owe our servicemembers unknown and a billing address cannot be ob- We also have to make sure our busi- tained, the remote sale is sourced to the ad- that opportunity. nesses do not get overwhelmed by regu- dress of the seller from which the remote From Hoosiers serving our Nation in lations. In Fort Wayne I heard about sale was made. A State granted authority Afghanistan and around the world to businesses dealing with too many regu- under section 2(a) shall comply with the the communities of Vincennes and sourcing provisions of the Streamlined Sales lations that don’t make any sense for Madison and Plymouth and Gary, the and Use Tax Agreement. their particular industry. It is time to message is the same everywhere. It is (8) STATE.—The term ‘‘State’’ means each get rid of the bureaucratic mess and to about jobs, and the chance to go to of the several States, the District of Colum- keep what works. Regulations should bia, the Commonwealth of Puerto Rico, work and take care of your family. So be like the umpire on the field: Make Guam, American Samoa, the United States how do we take the Hoosier common- sure everyone is playing by the rules, Virgin Islands, the Commonwealth of the sense approach, focus on jobs and cre- make sure the rules are common sense, Northern Mariana Islands, and any other ter- ate the conditions needed for our peo- ritory or possession of the United States, and then stay in the background. Regu- ple and our businesses to succeed? and any tribal organization (as defined in lations should protect the health and section 4 of the Indian Self-Determination I propose an opportunity agenda. Government doesn’t create jobs; busi- safety of our families and our workers and Education Assistance Act (25 U.S.C. while not creating unnecessary burdens 450b)). nesses create jobs. So let’s create the for our business owners. CLOTURE MOTION opportunities, help put the conditions Further, the regulatory system Mr. REID. I have a cloture motion at in place for our businesses in Indiana should give businesses the certainty the desk. and around the country to be able to The PRESIDING OFFICER. The clo- create more jobs, put the programs in they need to plan for the future and ture motion having been presented place for all of the American people to the ability to compete with anyone under rule XXII, the Chair directs the be ready to hit the ground running on anywhere in the world. clerk to read the motion. day one. Because if we don’t have a job, We need to go all-in on American en- The legislative clerk read as follows: nothing else works. We can talk about ergy. This helps our businesses, helps CLOTURE MOTION health care, we can talk about climate our families, and helps national secu- We, the undersigned Senators, in accord- change, we can talk about any other rity. I was in Lawrenceburg, IN, a ance with the provisions of rule XXII of the issue, but if we don’t have the chance beautiful town right along the Ohio Standing Rules of the Senate, hereby move to go to work and earn a living and River. When I was there, I heard of one to bring to a close debate on S. 743, a bill to take care of our family, nothing else of the companies located there, a restore States’ sovereign rights to enforce trucking company, that is trying to State and local sales and use tax laws, and works. for other purposes. That is why earlier this month I con- turn their fleet into a natural gas fleet. Harry Reid, Richard J. Durbin, Heidi ducted a series of roundtable meetings They are interested in making that Heitkamp, Martin Heinrich, Amy Klo- in eight different Hoosier communities transition, but the front-end costs are buchar, Al Franken, Sherrod Brown, trying to get ideas from Hoosier busi- high and the infrastructure isn’t in Brian Schatz, Benjamin L. Cardin, nesses, community leaders, and edu- place yet. So developing American en- Angus S. King, Jr., Richard cators, asking one simple question: ergy sources makes sense for American Blumenthal, Sheldon Whitehouse, John How can we help our entrepreneurs, our business, makes sense for our families, D. Rockefeller IV, Joe Manchin III, and makes sense for national security. Thomas R. Carper, Tom Harkin, Pat- small business owners, the men and rick J. Leahy. women who go to work every day, how Let’s keep more of our hard-earned dollars in Indiana—or in Wisconsin, the Mr. REID. I ask unanimous consent can we help them create more jobs? So that the reading of the names be in creating an opportunity agenda home State of the Presiding Officer— waived. built on Hoosier common sense, I heard by investing in homegrown energy in- The PRESIDING OFFICER. Without loudly and clearly: The place to start is cluding solar, coal, wind, oil, natural objection, it is so ordered. with education and with training. gas, biodiesel, ethanol, nuclear. Mr. REID. I now ask unanimous con- In every community I went to, I We are blessed with an abundance of sent that the mandatory quorum under heard about the skills gap: jobs that energy right here in America. It makes rule XXII be waived. are currently going unfilled—opportu- us stronger, creates jobs, reduces our The PRESIDING OFFICER. Without nities that are there for the taking but debt, and gives us a chance to make objection, it is so ordered. we have to have workers who have the our Nation safer.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00019 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2928 CONGRESSIONAL RECORD — SENATE April 24, 2013 I support projects such as the Key- The people of Indiana expect their we will at least give an opportunity for stone Pipeline because it creates jobs, leaders to put Hoosier common sense debate and a vote. puts people to work, and has signifi- ahead of partisanship. We expect our We want to finish this bill this week. cant bipartisan support. That is an ex- Senators not to be the loudest people We are going to stay until we finish it, ample of a commonsense investment in in the building but the hardest working so the sooner Members get serious domestic energy that both sides of the people in the building, and in my case about their amendments the more like- aisle can support. to make my job about making sure I ly it is we will be able to leave this These are just a few of the ideas I am looking out for their jobs. week. have gotten from people who are cre- I am honored to be here in this So that is the state of play on S. 743. ating jobs, running businesses, meeting Chamber working every day—not be- I have spoken to the substance of payroll, employing our neighbors, and cause I work for anybody here; I work this bill several times, but I see some growing our businesses all across Indi- for everyone back home. That is my Members on the floor seeking recogni- ana. mission, that is my job, and I am in- tion. At this point I yield. There is a whole lot more wisdom in credibly privileged to do that. The PRESIDING OFFICER. The Sen- Washington, IN, than there is in Wash- God bless Indiana. God bless the ator from Iowa. (The remarks of Mr. HARKIN and Mr. ington, DC. A big reason for this is be- United States. cause Hoosiers, as many Americans, Madam President, I yield back. SANDERS pertaining to the introduction are focused on just getting things done, The PRESIDING OFFICER. The Sen- of S. Con. Res. 15 are printed in today’s working together. It is not about par- ator from Illinois. RECORD under ‘‘Submitted Resolu- tisanship, and it is not about politics. Mr. DURBIN. Madam President, let tions.’’) In Indiana it is about common sense me congratulate my colleague from my The PRESIDING OFFICER. The Sen- and trying to solve the problem. It is neighboring State of Indiana, Senator ator from Illinois. Mr. DURBIN. Madam President, be- about an opportunity agenda that cre- DONNELLY, on his first speech on the fore I yield the floor to the Senator ates jobs for hard-working people and a floor of the Senate. I can tell you, as a from Arkansas, I would like to again good life for their families. That is downstater in Illinois, I can identify make the point I made earlier. what it is all about. with so many things he said about his Here is what I am about: taking the Pending before the Senate is S. 743. State and his pride in his State and his This is the Marketplace Fairness Act best ideas from both parties, both sides feelings about his responsibility as the of this Chamber, and getting things cosponsored by myself, Senator ENZI, new Senator from the Hoosier State. Senator HEITKAMP, Senator ALEX- done—starting with jobs. As Hoosiers, I thank him so much for that com- ANDER, and others. This matter is now we do not care if you are a Democrat; ment and look forward to working with we do not care if you are a Republican; pending before the Senate, and we are him for many years to come as we rep- asking all Members with amendments we care if you are ready to go to work resent adjoining States. on what matters most. to please bring them to the floor. I AMENDMENT NO. 745 TO AMENDMENT NO. 741 We make decisions based on what is know the Senator from Arkansas has Madam President, I have an amend- best for our families. We take pride in heard that call, and that is why he is ment at the desk and ask that it be making the checkbook balance and here. We want to move this forward called up. making tough choices necessary to and have an active debate on this issue. The PRESIDING OFFICER. The make that possible. We expect the We are asking our colleagues not to clerk will report the amendment. same from our government. Keep taxes put it off. If we want to wrap this up in The assistant legislative clerk read low, cut waste, and do not throw more a timely fashion, we need their co- as follows: money at the problem. Just try to operation. So I urge all offices, if you solve the problem. The Senator from Illinois [Mr. DURBIN] have an amendment, please come to Hoosiers are hard working. We do not proposes an amendment numbered 745 to the floor and discuss it with Senator amendment No. 741. want a free lunch; all we want is a fair ENZI and me. shake. We believe respect is earned Mr. DURBIN. Madam President, I ask I yield the floor. through the sweat and the hard work unanimous consent that reading of the The PRESIDING OFFICER. The Sen- we put in every single day. We do not amendment be dispensed with. ator from Arkansas. expect to receive anything we have not The PRESIDING OFFICER. Without Mr. PRYOR. I wish to talk about earned. objection, it is so ordered. amendment No. 740, which is an amend- Hoosier common sense tells us that The amendment is as follows: ment I am offering with the Senator our families are all better off when we At the end, add the following: from Missouri, Mr. BLUNT. We under- have stronger communities and more This Act shall become effective 1 day after stand there will be an objection to this. enactment. opportunities for businesses and work- I will not ask unanimous consent to ers. We take care of our brothers and Mr. DURBIN. Madam President, I call it up at this moment. Hopefully, sisters in need, not with a handout but would like to explain where we stand one of our colleagues will arrive in a by providing them with the oppor- on the pending legislation. This is a minute to do that. tunity to work hard and to build a bet- bill which has been introduced by Sen- Let me say first that I am for the ter life. ators ENZI, ALEXANDER, HEITKAMP, and Marketplace Fairness Act. I am a co- We have a proud tradition of Sen- myself. It is S. 743. Pending now on this sponsor. I believe it is the right thing ators from Indiana who have embodied bill is the managers’ amendment, to do. It is an issue I have been work- these principles of Hoosier common which we have crafted, and a second- ing on since my time more than 10 sense: from Senator Lugar’s decades of degree amendment, which is a slight years ago in the attorney general’s of- leadership in matters of commonsense technical change. fice in the State of Arkansas when we foreign policy, his leadership in saving The reason we are at this stage is be- were trying to set up a multistate com- over 100,000 Hoosier auto jobs, and his cause we are looking for colleagues to pact about how to collect sales tax on constant efforts on behalf of Indiana’s come forward if they have amendments the Internet. This is taxes on Internet farmers, from Lake Michigan to the to this bill. We would like to entertain sales on the Internet. Ohio River; to Senator Birch Bayh’s those amendments. We hope they are What I am talking about today, the tireless efforts to expanding voting germane and relevant amendments and Pryor-Blunt amendment, is different. rights and equality for women through not far afield from the important sub- We are talking about amendment No. his efforts on title IX; to Senator and ject matter before us. But I made this 740, which is sometimes confused with Vice President Dan Quayle’s bipartisan announcement yesterday, again this it, but basically amendment No. 740 efforts to pass job training legislation; morning, and I make it now: Any Mem- deals with the Internet Tax Freedom to Senator Evan Bayh flexing his inde- ber of the Senate who is interested in Act—sometimes called ITFA, of all pendence and his passion to get our fis- amending the bill, please come to the things—but nonetheless, basically it cal house in order; and to my current floor with your amendment. Senator does just a few things. colleague, Senator DAN COATS, in his ENZI and I will be happy to work with First, it makes it clear that online efforts to keep our Nation safe. you if we can accept it. If we cannot, retailers will not begin to have to pay

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00020 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2929 additional tax just for doing business Marketplace Fairness Act by extending So what is being offered by the Sen- online. So the way this works is that current law to ensure without any ators from Arkansas and Missouri, on right now States and cities, counties, question that this is not about taxing behalf of Internet users all over the et cetera, are prohibited from taxing the Internet. United States to protect them from Internet service. We are not talking In fact, this amendment would ex- being taxed on this measure, is over about sales tax, we are talking about tend for a decade the almost 15-year and above anything in this bill but is Internet service, the Internet service prohibition on taxing the Internet, the consistent with policy we have lived itself. This is a moratorium that has one that goes back to 1998. with for 15 years, if I am not mistaken. been around for a long time. Amend- So I support the Marketplace Fair- I think the Senator from Missouri ment No. 740 is the amendment that ness Act. I believe this bill would be mentioned it was 15 years. From my would extend this for 10 years. even better if it clarified for the next point of view, this is a friendly amend- This is a clean extension. Basically, decade that we continue to maintain ment, it is an amendment which is there are some States that have been the view the Congress and the Federal good for America, it protects our ac- grandfathered under the current mora- Government has had on the Internet cess to the Internet, and it does not torium. They will continue to be since the Internet first emerged as an jeopardize—does not jeopardize—the grandfathered. We do not cover things avenue of commerce and would not underlying legislation. such as voice, audio, video. That is a allow for the taxing of the Internet and In fact, if I am not mistaken, the two separate issue. We are talking about prevents those taxes from being col- sponsors are cosponsors or at least just the Internet itself. lected. have supported the underlying Market- This also does not have any negative I yield for my friend from Arkansas. place Fairness Act. impact on the Universal Service Fund, The PRESIDING OFFICER. The Sen- I thank the Senator from Arkansas 9–1-1, e911, and other fees like those. ator from Illinois. for yielding for those questions. Those are separate. We have crafted Mr. DURBIN. Madam President, I Mr. PRYOR. I see my colleague from this very carefully to do just a straight wish to ask the Senator from Arkansas Oregon is here, and he has a long his- and clean 10-year extension. if he would yield for a question through tory with this legislation and other We understand there will be an objec- the Chair. legislation similar to it. Let me make tion to this. Before we hear that objec- Mr. PRYOR. Be glad to, Madam one final point before I try to set aside tion, I yield the floor for my colleague President. the current amendment and bring up Mr. DURBIN. Madam President, from Missouri. 740 to make it pending. pending before us is S. 743, the Market- My final point is this: The Internet The PRESIDING OFFICER. The Sen- place Fairness Act, and this legislation has been an amazing success story. It ator from Missouri. is unbelievable how successful it has Mr. BLUNT. Let me quickly yield to would require Internet retailers selling been, how diverse, and how robust. But my friend from Oklahoma for a unani- into States with sales taxes to collect we think of it as ubiquitous. The truth mous consent request. the sales tax. The Senator from Arkan- is, it is not. In the United States, 80 The PRESIDING OFFICER. The Sen- sas and the Senator from Missouri have percent of American households have ator from Oklahoma. offered a different piece of legislation Mr. INHOFE. I ask that at the con- relating to the Internet. I would like to access to the Internet, but only 65 per- cent take it. So only 65 percent of peo- clusion of the remarks by the Senators ask the Senator from Arkansas if he ple in this country actually utilize the from Arkansas and Missouri, that I be would please clarify a few things. First, is there any tax imposed by Internet and take Internet service. recognized as if in morning business. I am afraid if we do add a tax, if the The PRESIDING OFFICER. Without this Marketplace Fairness Act on the State and local governments add a tax, objection, it is so ordered. use of the Internet? Mr. PRYOR. No, there is no tax in it will make it less affordable. A lot of The Senator from Missouri. people do not take Internet service be- Mr. BLUNT. As my good friend from this amendment. Amendment 740, in cause they cannot afford it. So I am Arkansas said and for the benefit of the fact, extends the moratorium on taxing afraid if we allow State and local gov- Senator from Oregon, we haven’t made the Internet. Mr. DURBIN. I am asking before ernments to tax access to the Inter- a request yet for this amendment to be your amendment is adopted. The un- net—tax the service itself—then we moved to the front of the line to be de- derlying bill has no tax on access to will see that effort hurt even more. bated, but we are here to say that we the Internet. I ask unanimous consent to set aside would like to have this amendment on Mr. PRYOR. That is correct. the pending amendment and call up this bill. We are both supporters of the Mr. DURBIN. So the Senator is sug- amendment No. 740 to make it pending. Marketplace Fairness Act for reasons gesting the extension of protecting The PRESIDING OFFICER (Mr. that I hope we have well established, America’s right to access the Internet HEINRICH). Is there objection? and I think people, including Members from being taxed; is that correct? Mr. WYDEN. Reserving the right to of the Senate, are beginning to under- Mr. PRYOR. That is correct. object. stand that it is a fairness principle. Mr. DURBIN. So for those who would The PRESIDING OFFICER. The Sen- But what this amendment does, rec- come to the floor and argue somehow ator from Oregon. ognizing the importance of online com- this bill is going to inhibit or restrain Mr. WYDEN. Mr. President, I do this merce, that it has grown dramatically Americans in the use of the Internet, it to have a colloquy with my friend from since 1998 when this amendment first does not, and the Pryor-Blunt amend- Arkansas. I want him to understand became part of the law, the Internet ment, which is being offered, extends that I have stayed off the floor of this Tax Freedom Act—and in 1988, it said for 10 years this prohibition against body for well over 1 day for the sole that you wouldn’t tax the Internet taxing access to the Internet. purpose of trying to see if we can bring itself for use of the Internet. Unless we I ask the Senator from Arkansas: both sides together on this issue. I act, this law will expire in 2014. This The last time this was considered, does think that is important, and I have al- would be a 10-year extension that the Senator know when and what the ready acknowledged I am willing to would simply say that we would con- disposition of that matter was? look at how we could bring both sides tinue to ensure that people’s access to Mr. PRYOR. I am not familiar with together, recognizing the Quill deci- Internet services is tax free. the history of that. Would the Senator sion. To be clear, the underlying bill we from Illinois know that? As I have already said, I have looked are considering, the Marketplace Fair- Mr. DURBIN. My impression—and I at compacts between States and things ness Act, doesn’t create a new tax. It could be mistaken—is it was adopted of this nature, and I have made re- doesn’t tax consumers’ use of the Inter- by voice vote. The amendment the Sen- peated offers to the advocates of this net, and Senator PRYOR and I both ator is offering giving a 7-year protec- bill, offering specifics on paper, and es- would oppose taxing use of the Internet tion against taxes for using the Inter- sentially nothing is offered in return at this point. But this simply adds to net was adopted by voice vote. It was other than: We have the votes and we the fair tax collection processes that clearly unanimous—at least there were are going to coerce you, as Oregonians, will be available to States under the no objections—on a bipartisan basis. to go along with this.

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I think we are going to say in Washington, DC, question: If you are Nike and you are the Senator knows I authored the we believe in States rights if we think located in Oregon and you decide to do Internet tax freedom bill in the Senate the State is right and they are going to Internet sales—which I believe they back in 1998, and I did it because I go along with the approach we have do—but you also decide to have Nike thought it was important to have the dictated. shops available—and we have seen defense shield against potentially In my part of the world, to show the them in malls—what is the law going thousands of taxing jurisdictions sin- irony of this situation, Washington to be? You know what the law is going gling out the Internet for these kinds State has a sales tax. Oregon does not to be if you are Nike and you want to of taxes. Regrettably, the underlying have a sales tax. There are differential come and open a shop in a mall near bill is going to be a targeted strike on tax considerations in both jurisdic- Chicago—you play by the rules of Chi- the Internet. It is not going to be a de- tions, and we often make agreements cago and Illinois. fense shield. It would, as it stands in terms of how we do business. So we If we require certain filings with our today, serve as an amendment that have shown it is possible to deal with government, if we require you pay cer- would undercut what we sought to do this issue, and I want my colleague tain property taxes, if we require you back in 1998. from Arkansas and my friend from Illi- collect certain sales taxes—rules of the As the original author here, I am nois to know I am willing to set aside road: If you want to do business in Illi- looking forward to working with the absolutely everything and work around nois, you play by Illinois rules. The Senator under any circumstance to re- the clock to see if we can find some same thing holds true if I want to open authorize a law that I think has common ground, with my theory being a business in Oregon; I play by Oregon worked. All the law says is you have to it is hard to say it is a States rights ap- rules. do offline what you do online. If we boil proach if a State is unable to have any Now the question: If you don’t phys- it down, it is a nondiscrimination law. element in the process with respect to ically locate in Illinois but sell into Il- This comes up the next year, and the its own judgment, its voluntary judg- linois, do you still have to play by Illi- Commerce and Finance Committees ment, about what it wants to do. nois rules? That is what this bill says. both have interests in this. We have al- So I object at this time. That is not coercion. ways worked cooperatively in these The PRESIDING OFFICER. Objec- Nike can decide they don’t want to areas. I remember our experience to- tion is heard. sell in Illinois because they don’t want gether on nanotechnology. The Senator from Illinois. to collect the sales tax in Illinois. That So I just have to say I am going to Mr. DURBIN. Mr. President, I am dis- is their business decision. Let it be. have to object at this time, but I am appointed. I am disappointed because I But if they want to come and use the very interested in working with my know this was a good-faith effort on customers of Illinois to make a profit, colleague, with Senator DURBIN, and behalf of the Senators from Arkansas all we are saying to them is: Collect Senator BLUNT, who was just here, to and Missouri to make certain Ameri- the sales tax. Why? Because their com- come up with an arrangement that cans across the board wouldn’t have to petitors in Illinois—the families who goes to the heart of this question; that pay a tax to use the Internet. That has have opened the shops and the stores— is, should States such as Oregon be co- been policy for 15 years. We just had an are collecting sales tax every day from erced, required to collect these online opportunity to extend it for 10 more their customers. They are finding peo- taxes for States that are thousands of years and there was an objection by ple who are showrooming, walking into miles away. The refrain throughout the Senator from Oregon. the running shoe store, trying on all this whole discussion has been this is a I know in his heart of hearts he the shoes, and saying, Just great, let States rights bill. didn’t want to object because I know me write something down here, see you I respect that, but what it translates his commitment to the Internet and later, and then going to the Internet into is folks say they are for States what a difference it has made in this and buying those shoes over the Inter- rights if they think the State is right country. Here is the problem he faces net without paying the sales tax. What and the State is willing to go along and the reason he objected, if I can try happens to the store they used to try with this particular approach that has to interpret what he just said. There on the shoes? Eventually, they lose come out of Washington, DC, which is are five States in America with no business and sometimes they go out of they would be coerced into collecting sales tax—five States. No State sales business. these sales taxes for jurisdictions from tax in Alaska, Oregon—the home State We are trying to level the playing thousands of miles away. In some of the Senator—Montana, New Hamp- field. No coercion. Oregon, make up cases—New Hampshire and other places shire, and Delaware. No sales tax. That your own laws for your own citizens have been making this point as well— means, because that State has decided and people who do business there. We it would be discriminatory because the there will be no sales tax, the people don’t change a word of it. But if you online sector would be subjected to re- living in that State who make a pur- want to do business in another State, quirements that were not required of chase at a store pay no sales tax—visi- we are asking that you collect the brick-and-mortar retailers. Again, this tors as well, no sales tax. Those who sales tax of that State. In fact, we pro- undermines our vision for the tech sec- buy things over the Internet in that vide the software free for you to do it. tor, which has been about bricks and State don’t pay a sales tax either. That I am sorry the Senator from Oregon clicks. We want both the brick-and- is the State’s decision. We don’t change objected to the Internet freedom bill mortar retailers and the online people that a bit. If this underlying bill offered by the Senators from Arkansas to do well. I know the Senator from Ar- passes, that will continue. and Missouri. It is a good one. It is one kansas agrees with that as well. There is no coercion—which the Sen- we would have liked to have seen part So I haven’t said anything on the ator from Oregon uses as his term—on of this discussion. I hope before this floor of this body on a matter my con- the State of Oregon to impose any conversation and debate end that we stituents feel very strongly about for sales tax on their citizens, on the peo- get a chance to reconsider. going on 2 days, until just now, solely ple buying in their State. It is their Mr. INHOFE. Mr. President, point of for purposes of working with my friend State right to decide. What this bill order. from Arkansas and the distinguished does impact is the Internet retailer in The PRESIDING OFFICER. The Sen- leader from Illinois, Senator DURBIN, Oregon selling products in the State of ator from Oklahoma. and I will continue to do that. But at Illinois. When Nike or Columbia sell Mr. INHOFE. Mr. President, by unan- the end of the day, States rights, to products in the State of Illinois, the imous consent, I was to be recognized some extent, has to have an element of Supreme Court told us Congress has to after the conclusion of the remarks of voluntariness. If States rights has no decide, if they sell a product in the the Senators from Missouri and Arkan- element of voluntary judgments by State of Illinois to an Illinois con- sas. I wish to ask when that would be, States, it is pretty hard to say a State sumer, do they have to collect the Illi- because this is going on and on. has any rights. The State truly is going nois sales tax. That is what the bill The PRESIDING OFFICER. The Sen- to be coerced when we have reached the says. That is all it says. ator from Oregon.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00022 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2931 Mr. WYDEN. Mr. President, I ask Mr. INHOFE. Mr. President, my good be devastating, to use his words. So unanimous consent to pose a question friend from Pennsylvania, Senator that is where we are right now. to my colleague from Oklahoma. TOOMEY, and I had an amendment that When the majority leader last night The PRESIDING OFFICER. Without we put forth several weeks ago back in introduced an amendment that would objection, it is so ordered. the time when we did not know for sure transfer the overseas contingency oper- Mr. WYDEN. Mr. President, if I whether sequestration was going to be- ations funds from the fiscal years of would be able to engage the Senator come a reality. We have some com- 2014, 2015, and 2016 to offset the seques- from Oklahoma, with his leave, I could ments to make about that. ter impacts in the current year, I think take about 5 minutes or so—no more— I will be yielding to the Senator from this is not implementable because he to respond to the points Senator DUR- Pennsylvania in a moment, but I first uses future appropriations to offset BIN has made. That would be the end of want to make an observation here, current year spending. It is also dan- my time, and I believe the Senator that anytime a bureaucracy is forced gerous to continue to hollow out our from Oklahoma would be next. to cut, they will find the one thing the military. The PRESIDING OFFICER. Is there people of America want most and that A couple days ago I talked about how objection? is what they will cut. There is no bet- we are comparable today in the hollow Mr. INHOFE. Mr. President, I do not ter example of this than the FAA. I force we are approaching to what we object to that, but I would ask the Sen- went around with them for quite some were in the 1970s and the 1990s. Now it ator from Arkansas if he has any objec- time on the pilots bill of rights last could actually be worse. In one of the tion to that. I want to be sure to get in summer. We were able to get some- hearings we had, one of the chiefs of the queue sometime here. thing done. But I know they are a very the military made the statement that Mr. WYDEN. Mr. President, very this would not be just as bad—it would briefly to respond to comments made powerful agency. There is no question be worse. by my friend from Illinois, this legisla- about that. To give you an example of that, the That is what we are faced with right tion has nothing to do with Nike. Nike FAA began furloughing traffic control- now. I think we need to look very care- of course is a very large company and lers—and others too—on April 21. This fully and make sure we do not allow has stores and trucks and a physical is what is interesting, and you have to our warfighters—every time you cut presence all over the United States. their money out of the OCO account, They pay taxes because of that phys- pay attention to this. The cuts that that increases risk. Increasing risk in- ical presence under the Quill decision. were going to come to the FAA creases lives lost. That is how serious So the comments by my colleague from through sequestration amounted to 5 Illinois are very unfortunate, because percent of the FAA’s budget to bring it this is. Now back to our amendment we put they misstate what this debate is all down to 2010 levels. The FAA operations budget has together some time ago. This was back about. This debate is about the little guy. grown by 109 percent since 1996. That before March 1, which was when the re- Later on this afternoon, Senator has more than doubled since 1996. alization appeared that sequestration MERKLEY and I are going to come to On April 22, the first day after fur- was going to be a reality, and it was the floor of the Senate and actually lough took effect, over 400 flights were this: If the whole purpose of sequestra- read accounts from small businesses cancelled and nearly 7,000 flights were tion is to save money out of the budg- here in our State. They are people who delayed. That, my good friends, is a et, and if you come along with some- don’t have a physical presence all over way of making people miserable to thing that says: We will live with the the country, and they are scratching bring them around to their way of top line that is dictated by sequestra- their heads this afternoon and they are thinking that somehow there is not tion but we would ask that the chiefs saying to themselves, How in the world enough fat in a bureaucracy that has of the services be allowed to make are we possibly going to be able to more than doubled in the last 15 years those decisions as to where the cuts comply with this, because in a difficult that they have to take these drastic would be. I had occasion to call all five economy, we are barely able to make steps. The FAA has the flexibility to service chiefs, and it has been re- ends meet. We are going to have to go reduce the costs, but they have not at- affirmed in the last 2 weeks by them in out and spend time and money and tempted to do that. public hearings that if they could take staff figuring out how to do this. As I said, very clearly, in 1996, the this top line that would be so dev- That is what this is about. Are we FAA’s operating budget was $4.6 bil- astating to their service—and this was going to take something like our cur- lion. In 2012, the operation budget was the Army, Navy, Marines, and Air rent policy—which is the defensive $9.7 billion. I don’t know off the top of Force. If they could determine where shield against discriminatory treat- my head of another bureaucracy that some of that was, would it be less dev- ment from these tech-based online has grown that much in that period of astating, No. 1? No. 2, would you be businesses—and turn it into a targeted time. The FAA operations budget has able to do it? The answer was yes and strike on them, which this legislation increased by $5.1 billion over 14 years. yes. does, or are we going to work together, That is 109 percent. I think the Senator from Pennsyl- which is what I have tried to do pretty The furloughs of the air traffic con- vania and I had a very good idea, and much nonstop since Monday, to see if trollers are expected to save only $200 we are here today to talk about that. we can find some kind of common million. I wish I had a chart here to With that, I yield for my friend from ground? Part of the challenge is we show you what a small percentage that Pennsylvania. have to get some equity even in terms $200 million is of the increase of $5.1 The PRESIDING OFFICER. The Sen- of the amendments, because it looks as billion over 14 years. I think it is very ator from Pennsylvania. though one side is getting to offer important that we talk about that in Mr. TOOMEY. Mr. President, I want theirs and another side may be fore- light of some of the things we are try- to thank the Senator from Oklahoma closed. ing to do with sequestration. That was for his leadership and work, and say a I am going to continue to try to the FAA. few words, and then I am going to reach out to colleagues on both sides of Unfortunately, it is our defense sys- make a unanimous consent request in this debate. But I appreciate very tem that has been taking all the hits. this regard—but first a little bit of con- much the courtesy of my friend from Here we have the defense at 18 percent text here. Oklahoma, because I had to clarify of the budget and they are taking 50 This Federal Government has dou- that this amendment is about the percent of the hits. This is after the bled in size in the last 12 years. Total small, innovation-oriented businesses President through his programs has spending is up 100 percent in a little that we think are the future and the knocked down spending levels by $487 over a decade. What the sequester center of this debate since it got going. billion over this 10-year period, and se- amounts to is 2.5 percent of this gigan- I thank my colleague from Oklahoma questration would be another $1⁄2 tril- tic bloated government. But it is actu- for his courtesy. lion—which in the mind and the state- ally less than that in a very meaning- The PRESIDING OFFICER. The Sen- ments of the Secretary of the Defense ful way, because the 2.5 percent we re- ator from Oklahoma. at that time, Secretary Panetta, would ferred to—the sequestration, this cut—

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00023 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2932 CONGRESSIONAL RECORD — SENATE April 24, 2013 is a reduction in the permission to budget, could be tightening belts so we places we can save. The fact is, espe- spend. We call it budget authority. don’t have to furlough air traffic con- cially in a government that has grown What it is is permission for the govern- trollers. this big, we absolutely can find the lit- ment to spend money. It actually takes For instance, the FAA spends $540 tle, tiny savings that are required in a while for the government to get million a year on consultants. That is the sequester so we do not have to do it around to spending the money that is nice. I am not sure all of that is as im- in a disruptive way. authorized in any given year. So the portant as keeping planes flying in the UNANIMOUS CONSENT REQUEST—S. 799 actual reduction in spending, the real air. The FAA operates a fleet of 46 air- That is why I ask unanimous consent reduction in cash that will go out the craft. That costs $143 million a year— that the Senate proceed to the imme- door in this fiscal year if the sequester very nice indeed. Probably not as im- diate consideration of S. 799. I ask goes into effect is a little over 1 per- portant as making sure planes are com- unanimous consent the bill be read a cent, about 1.25 percent. That is what ing and going from La Guardia and third time and passed, the motion to we are talking about. Kennedy and Newark and Philadelphia reconsider be considered made and laid Our friends on the other side of the and Pittsburgh and across the country. upon the table. aisle say, This is impossible; you can’t The FAA budget includes $1 billion The PRESIDING OFFICER. Is there do it; it will be devastating. They pre- more in grants for airport improve- objection? dicted all kinds of calamity if a gov- ments. I am a pilot. I fly in and out of Mr. DURBIN. Reserving the right to ernment that has grown by 100 percent lots of airports and it is great when a object. has to find 1 percent to trim over the nice little airport has a new taxiway, The PRESIDING OFFICER. The Sen- next 6 months. terrific, but is it truly as important as ator from Illinois. Here is another point we ought to keeping our air traffic controllers Mr. DURBIN. Mr. President, I lis- keep in mind. If the cuts and sequester there on the job? These are the kinds of tened to the Senator from Pennsyl- hold, if we achieve the savings that tradeoffs we ought to be making. vania. I have heard his arguments. I were signed into law, that were voted My Republican colleagues and I have know he is convinced of his arguments. on by both Chambers, and that the been offering a wide range of solutions. There are several things he did not President of the United States agreed Senator BLUNT had the idea that mention. The sequestration we are cur- to by virtue of his signature—if we do, maybe we ought to treat Federal work- rently going through was a bipartisan then total spending this year will still ers, in this context, the context of the decision. Both parties agreed to do it. be greater than last year. And we are sequestration, the same way we do in In fact, the leadership on the Repub- told that is somehow a Draconian aus- other emergencies and designate essen- lican side and the leadership on our terity program. tial workers. That makes some sense side voted for it. It was to be the out- What we are talking about is a mod- to me. I think that would make a lot of come if we did not reach an agreement est reduction in the rate at which this sense. JERRY MORAN has another idea on the budget, and we did not. So now Federal Government grows. That is all for how we could address this. we are in sequestration. we are talking about here. And we are Senator INHOFE and I introduced a When he suggests it is only 1 percent told that is not possible; there is no bill before the sequester went into ef- of government spending, I would add a way you can do it. fect. What we said was let’s give the couple of facts. We have exempted a That is simply not true. One of the President the maximum flexibility— long category of Federal spending so it things that is maddening to me is the right? The reason they say they have will not be subject to these cuts. For administration—and the President is to lay off or furlough air traffic con- example, we have said we will not cut responsible for this. They are willfully trollers is because they do not have the pay for our military 1 penny, so we choosing to make the cuts in the most any choice, the law requires it—except exempted that part. When we take all disruptive way they can, because they they did not want the change in the the exemptions out, it is not 1 percent have got so much invested in this idea law which would have given them the of our budget. For the agencies af- that we can’t cut any spending. Be- choice. Senator INHOFE and I had a bill fected, it is closer to 5 percent on an cause they predicted such dire con- that would give the administration annual basis. Since there are only 6 sequences and such disaster, they can’t complete flexibility. months left in the year, it turns out to very well allow reasonable and man- I say this because I pointed to a num- be closer to 10 percent that they have ageable cuts to take place which would ber of areas in the FAA’s budget where to cut to make the cuts for the remain- be easily attained. So we have this ex- I think they could find the savings, der of the year, so 1 percent does not tremely irresponsible set of cuts that avoid furloughing air traffic control- quite tell the whole story. are completely unnecessary. lers, but under the approach Senator Also, in terms of the number of peo- Let me zero in a little bit on the FAA INHOFE and I suggested, they would not ple working for the Federal Govern- budget itself. The sequester is in effect be limited to finding the savings within ment, the largest increase in Federal now. If it holds—if it is fully imple- the FAA budget; they could look any- employment in the last 10 years has mented—the FAA budget will, as a re- where in the government for the lowest been in the Department of Defense. sult, be larger than the President priority spending, the most wasteful Why would that be? Two wars, that is asked for in his budget submission. spending, the least necessary spending why. When they talk about the in- Does anybody think when the Presi- or perhaps redundancy and duplication. creased number of people working for dent submitted his budget request he I will give just another few examples. the Federal Government, don’t over- was intending to shut down air traffic The GAO has discovered that through- look the fact of the Department of De- control operations? I can assure you he out the Federal Government we have 47 fense effort and our effort to make sure didn’t tell us that at the time. different job training programs. Does the men and women in uniform were The fact is there are plenty of places anyone truly think we need 47 of these safe and came home safe. So when they where we can achieve this savings. The and that by consolidating them maybe talk about that increase, that is part of administration knew this day was com- we could save some overhead, some ad- it. ing for over 1 year. There has been ministrative costs? Maybe some of Here is what we have suggested. In- plenty of time to plan for this and to them don’t work so well. stead of just shifting the furniture prioritize. How about the fact that we have 94 around in the room, let us avoid what The Senator from Oklahoma points different green building programs—94 we are facing. We are facing the reality to the huge growth in the FAA’s budg- programs—679 renewable energy pro- of 6,800 flights a day in America being et. That is wildly disproportionate to grams. This is all over government be- delayed because air traffic controllers any growth in flights. There are plenty cause we have never bothered to scrub are being furloughed 1 out of every 10 of opportunities to achieve the savings, this and come up with the savings we days. We should avoid that—if not just as evidenced by the fact that the Presi- could have achieved. for convenience, certainly for safety. I dent never asked for all this money. Senator COBURN from Oklahoma has agree. Let me give a few examples of places offered all kinds of ideas, Senator LEE When it comes to cutting 70,000 chil- where the President, within the FAA from Utah. There are all kinds of dren, little kids, out of the Head Start

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00024 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2933 Program, let’s agree we should not be Mr. DURBIN. Mr. President, I just est 400 individuals in this country own doing that. We get one chance at those want to make one postscript. When more wealth than the bottom half of kids to have a good education and a PAUL RYAN, the Republican candidate America. Four hundred people have good life. Don’t blow it because of a se- for Vice President and the chairman of more wealth than the bottom 150 mil- questration problem. the House Republican Budget Com- lion Americans. Today, one family, the Shall we cut $1.8 billion out of the mittee, wrote his 2011 budget, he in- Walton family—owners of Walmart— National Institutes of Health medical cluded the very fund which the Senator own more wealth than the bottom 40 research money? $1.8 billion? No. This from Pennsylvania refers to as the Ca- percent of the American people; one Senator believes that is stupid—short- nadian invasion fund. So it was a good family has more wealth than the bot- sighted and stupid. If we don’t put idea when PAUL RYAN had to write a tom 40 percent. money into medical research, we are budget. It is a bad idea when we are Today—and this is truly a remark- not thinking. America leads the world trying to avoid the pain of sequestra- able fact which of course we do not in medical research. The sequestration tion. talk about too much—the top 1 percent should not put us further behind. The PRESIDING OFFICER. The Sen- of Americans own 38 percent of all fi- What I am going to make a unani- ator from Vermont. nancial wealth. Let’s guess what the mous consent request to do is use the Mr. SANDERS. Mr. President, I also bottom 60 percent of the American peo- overseas operations contingency ac- agree we should not invade Canada. I ple own. The top 1 percent own 38 per- count, an account set aside for future live right near there. It would be ter- cent of the wealth. The bottom 60 per- war which we will not need because rible. cent own 2.3 percent of the wealth in this President is bringing our troops What we are hearing and what we America. That is a rather remarkable home from Afghanistan as he did in have heard now for a number of months and disturbing fact. Iraq. is a discussion about deficit reduction, Today, as Warren Buffett has pointed I will object to the consent request of about how we proceed and how we ad- out, the 400 richest Americans are now the Senator from Pennsylvania and I dress the fact that this country has a worth a recordbreaking $1.7 trillion, will make my own after that. I object. $16.6 trillion national debt. That is a more than five times what we were The PRESIDING OFFICER. Objec- serious issue. worth just two decades ago. Mean- tion is heard. I think as we contemplate how we ad- while, according to a June 2012 study UNANIMOUS CONSENT REQUEST—S. 788 dress this issue, we have to put it into from the Federal Reserve, median net Mr. DURBIN. I ask unanimous con- a broader context as to what is going worth for middle-class families dropped sent the Senate proceed to consider- on in the United States. What is the by nearly 40 percent from 2007 to 2010. ation of Calendar No. 64, S. 788, a bill best way forward in terms of deficit re- That is the equivalent of wiping out 18 to suspend the fiscal year 2013 seques- duction at a time when the United years of savings for the average mid- tration and offset with funds from States has by far the most unequal dis- dle-class family. overseas contingency operations; that tribution of wealth and income of any That is distribution of wealth. That the bill be read three times and passed, major country on Earth. In other is incredibly unequal, incredibly un- the motion to reconsider be laid upon words, we cannot talk about how we fair, and getting worse and worse. That the table with no intervening action or proceed with deficit reduction, we can- is something we might want to keep in debate. not say it is OK to cut Social Security mind when we talk about how we do The PRESIDING OFFICER. Is there or Medicare or Medicaid or nutrition deficit reduction. objection? programs when the middle class of this Then when we talk about distribu- The Senator from Pennsylvania. country is disappearing, poverty is ex- tion of income, what we earned last Mr. TOOMEY. Mr. President, reserv- tremely high, while at the same time year, that is even worse than distribu- ing the right to object, I would like to the wealthiest people and the largest tion of wealth, as bad as that is. If you explain what this amounts to. Let’s be corporations are doing phenomenally can believe it, the last study we have very clear. There is no money in the well. Any serious discussion about def- seen on this subject—this is quite overseas contingency operation fund. icit reduction has to include those amazing—showed that from 2009 to This is barely an accounting device. Do issues. 2011, all the new income created during you know what this really is? The pro- Let me bore you for a moment with that time period went to the top 1 per- posal is that we do away with the se- some interesting statistics. This, in cent while the bottom 99 percent actu- quester and we thereby spend more fact, came out just yesterday from the ally saw a decline in their income. All money and we just pretend it is offset. Pew Research Center. What they said the new income created in that time But the fact is, some time ago, this ad- is that all the new wealth generated in period, 2009 to 2011, went to the top 1 ministration made a decision about the this country from 2009 to 2011 went to percent. Real unemployment today is level of our involvement in Afghani- the top 7 percent of the American not 7.6 percent, it is 13.8 percent if we stan that had nothing to do with this households. All the new wealth went to count those people who have given up sequester. That has nothing to do with the top 7 percent of American house- looking for work and those people who the sequester. The fact that we are no holds, while the bottom 93 percent of are working part-time. The youth un- longer at war there does not allow us Americans saw a net reduction in their employment rate is just horrendous, to spend money we do not have. wealth. and it is even higher than the general Let me give an analogy. I could come The Pew Research Center found that average. down to the Senate floor and suggest I from 2009 to 2011, the mean net worth Very interestingly, a new poll came think it should be the policy of the of American households in the top 7 out by Gallup that was done just a few United States that we absolutely not percent rose by 28 percent, while the days ago—April 17, 2013. I find the re- invade Canada and we not have a war mean net worth of the bottom 93 per- sults of that poll very remarkable. This with Canada. Imagine the money we cent of American households went poll deals with an issue that very few could save if we do not go to war with down by 4 percent; in other words, the people in Congress are even prepared to Canada. people on top are doing very well, ev- talk about, let alone act upon. So, with all that savings, let’s go out erybody else is not doing well. Here is what the poll from April 17, and spend it because we have this ter- Over this same time period, the top 7 2013—this week—said: About 6 in 10 rific savings. This proposal is abso- percent of American households saw Americans—about 60 percent—believe lutely no more meaningful than if I their wealth increase by a combined money and wealth should be more were to make that suggestion, which $5.6 trillion—the top 7 percent, $5.7 tril- evenly distributed among a larger per- obviously everyone understands is ri- lion in wealth increase; the bottom 93 centage of the people in the United diculous. percent saw a wealth decline of $600 bil- States, while only one-third of Ameri- So I object. lion. That is what the Pew Research cans think the current distribution is The PRESIDING OFFICER. Objec- Center reported just yesterday. fair. tion is heard. The Senator from Illi- Today, when we talk about distribu- So when my friends want to cut pro- nois. tion of wealth and income, the wealthi- grams for the middle class and give tax

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00025 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2934 CONGRESSIONAL RECORD — SENATE April 24, 2013 breaks to the rich, they should under- and other large corporations that are You know what, it is time you helped stand that about 60 percent of the doing phenomenally well, came for- us with deficit reduction. American people already believe that ward and said to Congress: You should I hear a lot of my Republican friends we have an unfair distribution of raise the eligibility age for Social Se- and the President talking about how wealth in America. What is even more curity and Medicare to 70 and cut So- we need tax reform, but we are going to interesting, according to this Gallup cial Security COLAs by adopting the do it deficit neutral. No, I beg to differ. poll from a few days ago—and they do so-called chained CPI. The wealthiest We do need tax reform. We do need to this poll every year—is that a record- people are doing phenomenally well, end the absurdity of losing huge breaking 52 percent of the American Wall Street gets bailed out by working amounts of money because of the tax people believe ‘‘that our government,’’ families all over this country, and then havens in the Cayman Islands and Ber- i.e, the Congress, ‘‘should redistribute these guys come back to Congress and muda and elsewhere, but we also have wealth by heavy taxes on the rich.’’ say: Raise the retirement age for So- to raise revenue when we do tax re- Again, that is 52 percent of the Amer- cial Security and Medicare to 70 years form. It is not simply lowering tax ican people who believe that. of age. rates. How many Members of the Congress Needless to say, my views are a little I will give some examples about how get up and come close to reflecting bit different than Mr. Blankfein’s or absurd the current situation is and what a majority of the American peo- the Business Roundtable. I believe the why—before we cut Social Security and ple want? The American people know way to do deficit reduction is not by before we attack programs that the that the middle class is collapsing. punishing people who are already hurt- middle class and working families of They know poverty is unacceptably ing and struggling to keep their heads this country depend upon—we have to high. They know the wealthy and large above water. We don’t punish the sick, end these absurd loopholes corporate corporations are doing extraordinarily the kids, the elderly, or disabled vet- America is enjoying. well, and they want us to do something erans. We need to ask those people who I have just a few examples. Bank of about it. But around here, forget doing are doing very well to start paying America is one of the financial institu- something about it. We cannot even their fair share of taxes. tions that was bailed out by the Amer- talk about what the American people Now I will talk about what I think ican people when their recklessness want us to do. we should be doing and why we should and greed almost resulted in the col- The American people are frustrated be doing it. In 1952, 32 percent of all of lapse of our financial system. In 2010, with Congress for a whole lot of rea- the revenue generated in this country Bank of America set up more than 200 sons, and certainly at the top of the came from large corporations—about subsidiaries in the Cayman Islands, list is how we are ignoring the eco- one-third of all the revenue. Today just which, of course, has a zero percent tax nomic reality facing the middle class 9 percent of Federal revenue comes rate to avoid paying U.S. taxes. Bank of this country and the growing wealth from corporate America. In 2011, cor- of America set up 200 subsidiaries in and income inequality. They want us porations paid just 12 percent of their the Cayman Islands. In 2010, not only to do something about it, and I think it profits in taxes. That is the lowest per- did Bank of America pay nothing in is high time we did. centage since 1972. Federal income taxes, but it received a So instead of cutting programs for In 2005—the last figures we have—one rebate from the IRS worth $1.9 billion the middle class, they are giving more out of four corporations paid no Fed- that year. Bank of America paid noth- tax breaks for those people who don’t eral income taxes at all even though ing in taxes. need it. Maybe we should do what the they collected over $1 trillion in rev- In 2010, JPMorgan Chase operated 83 American people want and ask the subsidiaries incorporated in offshore wealthy and large corporations to start enue during that 1-year period. In 2011, corporate revenue as a per- tax havens to avoid paying $4.9 billion paying their fair share of taxes and centage of GDP was just 1.2 percent in U.S. taxes. They avoided paying $4.9 protect working families. Interestingly enough, we hear from lower than any other major country in billion. Goldman Sachs is one of the largest the wealthiest people in this country the OECD, including Britain, Germany, institutions in the country. In 2010, and from their organizations. What we France, Japan, Canada, and many hear from them is not: Hey, we are other countries. Each and every year Goldman Sachs operated 39 subsidiaries doing really well. We know this coun- corporations and the wealthy are and offshore tax havens to avoid an es- try has a whole lot of problems, and we avoiding more than $100 billion in U.S. timated $3.3 billion in U.S. taxes. Citigroup, which is another financial are prepared to pitch in; we are pre- taxes by sheltering their incomes in institution that was bailed out by the pared to help out with deficit reduc- the Cayman Islands, Bermuda, and tion. By the way, for those who are on other offshore tax havens. taxpayers of this country, has paid no Wall Street, remember that it was the So the point is: How do we do deficit Federal income taxes for the last 5 American people who bailed out Wall reduction? Do we say to an elderly years. That is not bad. Many people Street. Instead of hearing how they are woman in the State of Vermont who is who are out there watching this are prepared to reciprocate now in Amer- trying get by on $14,000 or $15,000 a year saying: That is pretty good. How did ica’s time of need, unfortunately what that we are going to cut her Social Se- they avoid paying income taxes when we are hearing is quite the contrary. curity? they are one of the largest corpora- Lloyd Blankfein is the CEO of Gold- Do we say to a disabled vet: Thank tions in America for a 5-year period? man Sachs, and this is what he said on you for your service and your sacrifice That is pretty good. November 19, 2012, to CBS: for this country, we are sorry you lost During the last 5 years General Elec- You’re going to have to undoubtedly do your legs, but we are going to have to tric made $81 billion in profit, which is something to lower people’s expectations— cut your benefits? not too shabby. Not only has General the entitlements and what people think that Do we say to a struggling low-income Electric avoided paying Federal in- they’re going to get, because they’re not family trying to survive on one or an- come taxes during these years, it re- going to get it. other nutrition program: Sorry, but ceived a tax rebate of $3 billion from Blankfein and his friends at the Busi- you may have to go hungry and not get the IRS. GE has at least 14 offshore ness Roundtable recently came out dinner on Wednesday? subsidiaries in Bermuda, Singapore, with a report. Now, the Business Do we say to working people who and Luxembourg for the purpose of Roundtable is the organization rep- have lost their jobs: We are going to avoiding U.S. income taxes. resenting the CEOs of the largest cor- have to cut your unemployment com- Does anyone still want to know why porations. All of them make millions pensation which will make it almost the American people are cynical about of dollars a year in salary or benefits. impossible for your family to survive? what is going on in Washington? Does All of them have very generous retire- Is that our approach or do we go to anyone want to know why the Congress ment benefits. Some of them are worth corporate America, which is enjoying of the United States has an extremely hundreds of millions of dollars. recordbreaking profits? low level of support or favorability? It These people, the Business Round- One out of four corporations pays is because the American people know table, which consists of Wall Street nothing in taxes. Do we say to them: they are getting ripped off. They are

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00026 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2935 working 50 or 60 hours a week, and they issues coming before us on a contin- litical science. Our Constitution is the are paying their taxes. General Elec- uous basis, we have to have some con- best answer ever provided to these two tric makes $81 billion, and over the last text. We have to look back to the his- questions. It is the best answer, and 5 years they have paid nothing in tory of this body and the history of the the Framers knew exactly what they taxes. Does anybody vaguely think country. were doing. that is fair? My favorite quote from Mark Madison, in the 51st Federalist—and I We have some people who say: We Twain—and there are lots of them, but have to apologize to my female Sen- want to do tax reform, but we want to my favorite is: History doesn’t always ator friends because Madison only make it revenue neutral. We don’t repeat itself, but it usually rhymes. talked in terms of men, but when we want any new income in order to help And in this case I believe that is true. hear ‘‘men,’’ we think ‘‘men and us with deficit reduction. Let’s cut So- Let’s start with a very basic ques- women.’’ He meant that, he just didn’t cial Security, Medicare, Medicaid, edu- tion: Why do we have government at say it. But in the 51st Federalist, here cation, but, no, we cannot get new rev- all? Why are we here? Why do we have is what he said: ‘‘If men were angels, enue from large corporations. this grand edifice? Why do we have the no government would be necessary.’’ During the last 5 years Verizon made rules and laws and this panoply of the We wouldn’t need it. Then he said: over $48 billion in profits. Not only has Constitution? If angels were to govern men, neither ex- Verizon avoided paying Federal income Well, it is all about human nature. ternal nor internal controls on the govern- taxes during those years, it received a Unfortunately, part of human nature is ment would be necessary, either. In framing $535 million rebate from the IRS—not conflict. Often it is conflict that is re- a government which is to be administered by too bad. solved by violence. Hobbes, the British men over men, however, the great difficulty From 2008 through 2010, not only did philosopher, said: ‘‘Life is nasty, brut- lies in this: You must first enable the gov- Honeywell avoid paying Federal in- ish, and short.’’ ernment to control the governed; and in the next place, oblige it to control itself. come taxes, it received a $34 million A few years ago, Bill Moyers, whom I tax refund from the IRS. believe is one of the wisest living That is the whole deal. That is what Merck is a pharmaceutical company. Americans, spoke at the graduation of the Constitution is all about. How did In 2009 not only did Merck pay no Fed- one of my sons. I was at the graduation it do it? I think the best analogy for eral income taxes, it received a $55 mil- because I wanted to see what $100,000 the U.S. Constitution is the homely lion tax refund from the IRS. On and looked like all in one place at one Vegematic. Remember Billy Mays: It on it goes: Corning, Boeing, Microsoft, time. Now it would be $200,000. But slices, it dices, it purees. The Constitu- Caterpillar, Cisco, Dow Chemical. I Moyers had a very profound observa- tion is the Vegematic of power. It have example after example of large tion, and he talked about the propen- slices and dices. It lays it out. It di- profitable corporations where CEOs sity of people to be mean to each other, vides it between the people and the make millions and millions of dollars, to resolve disputes by violence. He used government, between the Federal Gov- and they say to the American people: a phrase that has stayed with me, and ernment and the States and the local- We support cuts in programs for you— I think it is very profound: ‘‘Civiliza- ities, and within the branches of the Social Security, Medicare, Medicaid, tion,’’ Moyers said, ‘‘is an unnatural Federal Government. Power is sepa- you name it—but don’t ask us to pay act.’’ Civilization is an unnatural act. rated, and that was the theory of the more in taxes. It takes work to maintain civilization Framers; that this division of power— This Senate has a decision to make: from one generation to the next. The ambition combating ambition—was the Do we occasionally—I am not asking world around us today gives us evi- structural solution to the danger of the for much—stand up to the lobbyists, dence of this. All one has to do is open government abusing its own people. campaign contributors, and big money the paper: North Korea, the Middle Then, finally, they weren’t satisfied, interests and ask the large corpora- East, and, Lord help us, the Boston and in the ratification of the Constitu- tions and the wealthy who are doing Marathon or two little boys in a sand- tion was adopted the Bill of Rights. phenomenally well to help us with def- box with one truck. Conflict is part of The Bill of Rights is nothing more than icit reduction or do we continue to our human nature. a sphere of protection around each of stick it to the working families and the So the basic function, the basic ne- us as individuals that says even if the middle class of this country? That is cessity that brings forth any govern- government follows all these arcane the challenge and the issue we face. I ment throughout history is to provide rules and all these Rube Goldberg pro- hope we have the courage to do the security to our citizens, internal and cedures and a law comes out at the right thing. external, and, of course, the Constitu- other end, if it violates free speech, it With that, I yield the floor. tion says this in the Preamble: to ‘‘en- is no good. If it violates the right to The PRESIDING OFFICER. The Sen- sure domestic tranquility’’—that is Al bear arms, it isn’t valid. If it violates ator from Maine. Capone—and ‘‘provide for the common people’s right to be secure in their per- Mr. KING. Mr. President, I ask unan- defense’’—that is Hitler or al-Qaida. sons and possessions, it is off limits. So imous consent to speak in morning But, then, the paradox is once we cre- the Bill of Rights is the last sword, business for 20 minutes. ate a government, we are handing over shield, and buckler that protects us The PRESIDING OFFICER. Without power to other people, and there is al- from an abusive government. objection, it is so ordered. ways the danger the government itself The tension between effective gov- NATIONAL CHALLENGES will become abusive, and that has been ernment and controlling government Mr. KING. Mr. President, I rise today true throughout human history. has never been resolved in this society. with some humility because I rise in The ancient Latin quote is, ‘‘Who Many of the arguments we are having the footsteps of one of Maine’s greatest will guard the guardians?’’ Govern- now about gun control, the Federal Senators, Olympia Snowe. I am fortu- ments are about power—power we give budget, financial regulation, health nate enough to succeed her in this seat. up in order for governments to serve care, climate change, and environ- In the midst of the campaign a year or us. But, again, human nature raises its mental policy are all manifestations of so ago, I also realized I was not only head. Lord Acton, the 19th century this age-old debate we keep having. succeeding Olympia Snowe but George British philosopher, again had a very What I think is amazing is that the Mitchell and Ed Muskie, who are two profound observation: ‘‘Power corrupts, arguments and even the rhetoric—the of the greatest legislators of the 20th and absolute power corrupts abso- words themselves—always seem to be century. So it is with some trepidation lutely.’’ That is true of all people in all about the same. On the Federalist side, to be standing on the shoulders of times and in all places. Power corrupts we always hear about the necessity of those great Members of this body. and absolute power corrupts abso- national solutions to national prob- Most speeches we hear in this Cham- lutely. lems, universal principles, appeals to ber are on a topic of the day—taxation, So these two questions—why have a fairness. On the other side, we hear al- gun control, fairness of the market- government and how do we control the legations of tyranny, nullification, ref- place—but I think in order to under- government once we create it—encom- erences to Jefferson’s famous quote, stand the issues we are debating, the passes all one needs to know about po- that ‘‘occasionally the tree of Liberty

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00027 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2936 CONGRESSIONAL RECORD — SENATE April 24, 2013 must be watered with the blood of Pa- problems and the rights of the States nally’’ too much and it gets people’s triots and Tyrants.’’ The 10th amend- and the people to make their own deci- hopes up. Budgets. A budget fundamen- ment, States rights, and hints of seces- sions. tally reflects policy. It fundamentally sion, the rhetoric is the same. In fact, Of course, tragically, the most dra- reflects what we believe about our- the current divisions in this Congress matic manifestation of this was the selves and about the government. The between traditional Democrats and a Civil War, but the Civil War itself was budget passed by the House—the so- Republican Party largely driven by the about this very question. Wrapped up called Ryan budget—is a classic polit- anti-Federalist sentiments of the tea in States rights and slavery, it was a ical document. I don’t mean that in a party is at least the 10th time this question of what are the powers of the negative sense. It espouses a philos- same issue has arisen in American his- Federal Government and what are the ophy of what this government should tory. powers reserved to the States and to be. It is one more step in this discus- The American Revolution itself, No. the people. We all know the tragedy of sion. 1, was a populist revolt against con- that event and what happened. I do not believe the Ryan budget is centrated power far away. Second, the I think one of the most interesting about debt and deficits. It is about drafting of the Constitution arose out results of the Civil War is a change in shrinking government. That is what of the weaknesses of the Articles of English usage of the term ‘‘United the policy is: to reduce the size of the Confederation. Many of us—all of us— States.’’ Prior to the Civil War, people government to a place where it is much sort of feel this government has been in the United States referred to the smaller. what it is forever. For 7 or 8 years, be- United States as a plural noun: the Federal spending is not out of con- tween the end of the Revolution and United States are; they are. The United trol. Nondefense discretionary spend- the drafting of the Constitution, we States, they are doing this or that. In ing today is the lowest it has been in 50 were governed by something called the other words, they referred to them- years. Defense is about the same. What Articles of Confederation, which was selves as a collective, as a group of is out of control is all of our spending too weak. It didn’t concentrate power States. After the Civil War, the usage on health care. That is what is driving enough, and that gave rise to the Con- which we have until today is that the the Federal deficit. It is not about debt stitutional Convention in 1787. United States is a singular noun, one and deficits, it is about shrinking gov- Then, the ratification of the Con- country: It is. That is an amazing de- ernment. stitution and the Bill of Rights was velopment. There was no law passed, So where does this leave us? An in- itself a manifestation of this argu- but that showed how the people’s view teresting history lesson. ment—the argument that the wonder- of what their country was all about I hope something more. ful terms ‘‘Federalist’’ and ‘‘anti-Fed- changed. First, I think it provides us with a In the early part of the last century, eralist’’ describe the division in the way of understanding what separates the New Deal and the two crises of de- country which we are fighting over to us. If we understand what is going on pression and war—particularly the this day. I think of HARRY REID and here in this Chamber, I think it helps Great Depression—the issue then was DICK DURBIN as Hamilton and Adams us. fought out in the Supreme Court, and and MCCONNELL and CORNYN are the Second, I think it is important, for the U.S. Supreme Court at first said pre-1803 Jefferson and Madison. I say me anyway, to believe there is no right the New Deal laws were unconstitu- pre-1803 because Jefferson was the answer to this question. There is no tional. They went too far. The com- apostle of States rights, but he became right answer. It cannot be all one or merce clause wouldn’t stretch that far. the other. Neither side has exactly the President and somehow found in the Then, of course, there was a lot of poli- right response. We should not be an un- Constitution the heretofore unknown tics and discussion. The case went controlled, central government, and we right to buy Louisiana. We are glad he back—I believe it was the ‘‘sick chick- should not be a government that is so did. en’’ case—and the Supreme Court said: The Alien and Sedition Acts of 1800, dispersed that we cannot do anything. Well, maybe the commerce clause does which were the PATRIOT Act of the The tension is hard-wired into our sys- stretch that far. Historians refer to day, passed by President John Adams tem, but I think it helps us find bal- that as ‘‘the switch in time that saved anced policy. to get at what they thought were sedi- nine.’’ tious activities in the country. Jeffer- The civil rights movement was hap- We need a national government—we son, when he was Vice President, se- pening as I was growing up, and States need a strong national government— cretly wrote a resolution for the Ken- rights was the rhetoric again. What are for the same reasons as in 1789: to solve tucky legislature saying that the Alien the powers that we have in this city national problems, problems that can- and Sedition Acts were null and void in versus the communities and the States. not be solved at the local level either Kentucky and were a violation of the Here we are, No. 10: The tea party because of the scope of the problem constitutional principles. and the urge to shrink government. itself—global terrorism: I am sorry, the The tariff of 1828, known as the Tariff The resistance to the Affordable Care Brunswick Police Department cannot of Abominations, was a tariff that pro- Act. I was always surprised that sum- deal with all the terrorism—or because tected northern manufacturers, but it mer when people were getting red in piecemeal solutions will not work. En- prejudiced the South and, lo and be- the face about a health care bill. It vironmental protection has to be done hold, South Carolina wanted to nullify wasn’t the health care bill; it was the locally, but it also has to be done na- it and, in fact, in 1832 voted to do so. perception that Washington was some- tionally. Air moves. Polluted water The nullification crisis of 1832 was only how taking over something that should moves. averted by the election of Andrew have been left to them. Or immigration. It has to be a na- Jackson and a compromise tariff that Gun control is a classic example tional solution. was passed in 1834. which we were debating last week, and I am sorry, but strangling govern- That is five times already. the irony and the difficulty of gun con- ment in the bathtub is even less fea- This is an interesting one. The fugi- trol is the problem is largely local and sible today than it was in 1789. tive slave laws in 1850 were passed by particularly in urban areas, but the so- Gridlock, which is, if you think the Federal Government and it says if lution is national because the guns about it, gridlock is total victory for a slave escaped into your State, even if being misused in urban areas come the anti-Federalists. Gridlock is not it was a free State, your legal enforce- from all over the country. That is why, the answer. The Framers knew the gov- ment community had to cooperate and in my opinion, we need national legis- ernment had to work. It may be slow return the slave to its master. The Su- lation; at a minimum background and cumbersome, but, ultimately, it preme Court of the State of Wisconsin checks and trafficking regulation. Reg- had to be functional. Madison recog- in 1854 declared that law unconstitu- ulation itself is an expression of gov- nized this, and so did the preamble: ‘‘to tional, void, and of null effect in the ernmental power, and it is resisted in form a more perfect Union’’—‘‘a more State of Wisconsin. Again, it was the many parts of the country. perfect Union’’—than that which had tension between the power of the Fed- Budgets—finally, budgets. I shouldn’t been formed by the Articles of Confed- eral Government to remedy national say finally. My wife says I say ‘‘fi- eration.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00028 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2937 On the other hand, on the other side ited. Calls to cut government spending We must disenthrall ourselves, think of this argument, though, Federal solu- are fine, but they must be matched in new and different ways, and then we tions all the time are not the answer with specifics. You cannot just talk shall save our country. either. about government spending and not Thank you, Mr. President. There is a grave danger that we all talk about FAA towers or our intel- I suggest the absence of a quorum. face because our job here is making ligence community or our defense ca- The PRESIDING OFFICER (Mr. laws; and the problem is, if the only pability. COONS). The clerk will call the roll. tool you have is a hammer, every prob- We have to understand that each gen- The assistant legislative clerk pro- lem looks like a nail. If the only tool eration must meet its own challenges ceeded to call the roll. we have is laws, then we are inclined to and redefine this question with its eyes Mr. DURBIN. Mr. President, I ask unanimous consent that the order for try to solve every problem. I believe open to practical effects, without the quorum call be rescinded. States rights are important. I think blinders on of absolutism or ideology. As I look back on history, the great The PRESIDING OFFICER. Without States have an important role to play objection, it is so ordered. in our system, and I think they are the accomplishments of the body, the great COMMENDING SENATOR KING best places to solve a lot of the issues accomplishments of this government, Mr. DURBIN. Mr. President, let me that are facing our country. have rarely if ever been victories for salute my colleague from Maine for an One of them is education. I remember one side or the other. Instead, they extraordinary maiden speech on the sitting at home and watching the de- have been based upon hard-fought bat- floor of the Senate. It was a great les- bate between George W. Bush and Al tles and grudging compromise, recogni- son in history, and those of us who con- Gore in 2000, and they were arguing tion of national needs along with local tinue to study history realize he has an what size the classroom should be and interests, and a willingness to honor insight into this Nation which we all how big the school should be, and I our most basic charge: to form a more should hear and share. I thank him for turned to my wife Mary and said: perfect union. being here and for sharing his thoughts These guys think they are running for I hope in a small way to contribute to this, to contribute to the search for with us, and particularly for being part superintendent of schools. of the solution to America’s challenge. This is not a Federal issue. The Fed- solutions that are practical and effec- tive. I am caucusing with the Demo- As I said to him when I went up to eral Government has a responsibility him, you will never get in trouble with in education: to fund, to do research, crats, but I agree with ENZI and ALEX- ANDER on the Marketplace Fairness me if you quote somebody from Illi- and to help, but not to guide. nois; he quoted Abraham Lincoln, and Overreaching regulation, in my view, Act. I agree with ENZI and ALEXANDER on the Marketplace Fairness Act, but did it in an extraordinary way. is a problem. I believe in structural so- So I thank him and commend him for lutions. I was not a Member of this with BLUMENTHAL and KAINE on guns. I agree with BLUMENTHAL and KAINE on his fine statement. body, but had I been, I suspect I would Pending on the floor is the Market- have opposed Dodd-Frank and sup- guns, but I agree with COBURN on dupli- cation and regulation. And I agree with place Fairness Act. It is a bill which ported the restoration of the Glass- has been before this body now for al- COBURN on duplication and regulation, Steagall Act. I think that is a struc- most a week. It is 11 pages long. It is but I agree with MURRAY on the budg- tural solution because regulatory solu- not a new concept. Members have had tions always end up being burdensome. et. We face serious challenges—defense, ample time to review it. We have had A friend of mine in Maine sent me a budget, and constantly changing cir- three successive votes on the issue—on picture of him sitting next to a stack cumstances. We live in a time of accel- the budget resolution, on cloture on this high of regulations at a commu- erated change. the motion to proceed, and on the mo- nity bank as a result of Dodd-Frank Almost exactly 150 years ago, our tion to proceed—and the outcome of that they are going to have to abide greatest President sent a message to those votes were 75, 74, and 75. That is by. This is a community bank. Bangor Congress in the midst of the greatest an extraordinary majority in this Savings Bank did not cause the finan- crisis this country has ever faced. His Chamber and indicates a willingness to cial crisis of 2008, yet they are having message was about change and about tackle this problem and pass this bill. to bear the burden of these regulations, how to deal with change and was to try I have invited my colleagues, as has which are expensive, which are drying to shake Congress out of the lethargy Senator ENZI, to come to the floor. If up credit for their customers, and of politics as usual because we were in you have something you wish to offer which I do not believe are going to con- the midst of the Civil War. to this bill, bring the amendment to us. tribute to a solution. I cannot argue that the crises we face It is not that we are going to accept Another point on this, on the anti- today collectively or individually equal every amendment, but that is not what Federalist side, is that deficits do mat- the Civil War, but they are pretty seri- the process is about. Some of these ter. Deficits do matter. We cannot con- ous. I have been in hearings in the last amendments will be offered for a vote, tinue to burden our children with the 2 weeks in the Intelligence Committee as they should be, and debated. costs of government. and the Armed Services Committee, So far, there has only been one amendment that has actually been of- In a hypercompetitive world, it and every single one of the top profes- fered on the floor, and it was objected seems to me that every tax dollar sionals in both defense and intelligence to by the Senator from Oregon, Mr. counts and every regulation must be have said this is the most dangerous WYDEN. The amendment Senator smart and minimally intrusive. This is and complicated period they have expe- WYDEN objected to was called the a new world we are in. We are com- rienced in their 35, 40, or 50 years in Internet Freedom Act, and it basically peting not just with companies around this business. So we are facing some se- said we would renew our 15-year com- this country but with companies all rious challenges. over the world, and they want our jobs. I want to share with you what I be- mitment that we will not tax Ameri- Understanding these differences and lieve is the most profound observation cans for access to the Internet. I think this age-old argument, we have to un- about how we deal with change that I that is good policy, the Internet Free- derstand that we cannot be enthralled have ever encountered. December 2, dom Act. So I invited Senator PRYOR to this debate. We cannot be locked 1862, President Lincoln sent the mes- to offer that on the underlying bill, and into it. But we do have national chal- sage, and here is how it ended. Here is it was objected to by the Senator from lenges. They have to be met with na- what Abraham Lincoln said: Oregon. Make no mistake, the Market- tional solutions. Challenges such as The dogmas of the quiet past, are inad- place Fairness Act that Senator ENZI cyber threats, research, infrastructure, equate to the stormy present. The occasion and I and Senator ALEXANDER and Sen- gun crime, terrorism—and, Boston, by is piled high with difficulty, and we must ator HEITKAMP bring to the floor is not the way, is an example of coordination rise—with the occasion. As our case is new, at war with the Internet at all. We between levels of government that I so we must think anew, and act anew. value it. It is an important part of our think worked very effectively. And here is the key line: economy, an important part of our Our failure to act is a disservice to We must disenthrall ourselves, and then we lives. We support the notion of Internet those who built what we have inher- shall save our country. freedom from taxes.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00029 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2938 CONGRESSIONAL RECORD — SENATE April 24, 2013 What we are trying to achieve, 44th State. So he presented this framed to help out with this bill, they collect though, is the appropriate role for the flag to me. Incidentally, that was only from every person from the first dime Internet when it comes to retail sales. the flag of the United States for a 6- of sales. So we have given a little bit of The Marketplace Fairness Act levels year period. Then some other States a break to particularly the nontax the playing field between businesses on came in and we added them. It has an States, and to those working on line Main Street or in shopping malls and interesting arrangement of stars on it that are small businesses to continue businesses on the Internet. It says, if too, because the 44 stars do not fit in a this effort to grow the Internet. the business in Chicago, IL, on Michi- nice even pattern unless you did four Of course, we are hoping a lot of our gan Avenue has to collect sales tax on rows with 11 in a row. That changes the businesses in our States will get to sales over the counter, then Internet dimensions of the flag considerably. that million-dollar mark. But here is retail sales into the State of Illinois I appreciate his consideration on the status on the million-dollar mark. face the same sales tax. That is it. It is that. I appreciate the consideration he We are told that if we reduced that to not that complicated. No Federal tax, has given to pieces of legislation that I $150,000 it would only affect less than no new tax; only the collection of ex- have seen him work on. We do not one-quarter of 1 percent of the busi- isting State sales taxes. That is all we agree on all of those pieces of legisla- nesses in the United States—not very are asking for. tion, but it is nice to have the concern many. They are starting to be a rel- Our opposition comes from several and the thought and the process for atively big business when they are quarters, but primarily from no-sales- getting things done that he brings to doing $1 million on line. This does not tax States such as Oregon, Montana, the Senate. That is very nice. count their in-store sales. This is just New Hampshire. Those Senators from I too want to encourage my col- their on-line sales. So I hope the other those States where they pay no sales leagues if they have amendments to States that have had some difficulty tax whatsoever would not even require bring them down. That is what we say with that will realize that is a pretty their Internet sellers to collect sales this process is about. This is an amend- liberal mark we have gone to. tax on sales made in other States. ment process on the floor, which every- Of course, I know a lot of people are At the end of the day, if Marketplace body has asked for. We are doing it. So getting a lot of correspondence from Fairness passes, the citizens of Oregon we need the amendments. A number of eBay. eBay, in the 12 years I have been will not pay 1 penny in sales tax more people have talked to me about dif- working on this bill, has consistently they pay now, nor will the citizens in ferent parts they had a potential con- opposed it, even though they appeared Montana, New Hampshire, Delaware, or cern about. I hope we solved their con- almost up to the time we were ready to Alaska. The State law prevails. We do cern by actually looking at the word- do the bill to be in agreement with not change it at all. But to suggest you ing in the bill. This is not a very dif- some of the things that were in the could sit in Oregon as an Internet re- ficult bill to read. Sometimes we do bill. tailer and sell into our States at a dis- ones that are a couple of thousand Incidentally, that is when we had a advantage to the local businesses and pages. This one is 11 pages. I do not considerably bigger bill. It was about not collect sales taxes is unfair. think there is anybody who will not be 80 pages long. This one we changed. What we are trying to achieve here is capable of reading the bill. Unlike The main difference is now there are fairness and balance. We have obvi- most of the bills, this is in pretty nor- States rights, which there should have ously the major retailers across Amer- mal language, rather than some of the always been. That is the way it is in ica supporting this, but more. We have conforming language that sometimes the Constitution. This is a States units of government that are now not results around here. rights bill. That reduces the length of receiving the sales tax receipts from I think most of the problems retail- it considerably. Internet sales they could. Of course, we ers should have with this have been The million-dollar proposal is to give have others interested—developers, Re- taken care of. One that the nonsales- people time to adjust and collect. Inci- altors, labor unions, business groups. It tax States talk about, and the Senator dentally, there is kind of a phase-in in is the most amazing coalition backing from Illinois, Mr. DURBIN, also men- this. Some people say, why don’t we the Marketplace Fairness bill. tioned, the people in those States still have kind of a phase-in? Well, we have Senator ENZI and I urge every Sen- will not pay a sales tax. But if you hap- 90 days. We agreed to do 6 months so ator with an amendment to this bill, pen to be one of the people selling into people could gear up for it. come to the floor now. Do not wait other States, and you sell a tremen- Besides that 6 months, the States are until tomorrow, and certainly do not dous volume into other States, then going to have to provide free software wait until Friday. We want to bring up under this bill you will be expected to to be able to do the tax, so that when those amendments. I hope those oppos- collect and remit the sales tax, as any they put in a ZIP Code for where they ing this bill will not continue to object retailer in the States that have sales are sending the product, they will to them, as the Senator from Oregon tax. automatically know the tax. They talk did earlier. But if you have an amend- There is an exemption. The Senator about 9,600 tax jurisdictions. Well, in ment, please bring it to the floor. Mem- from Oregon, Mr. WYDEN, asked us to this there are only 46 different tax ju- bers get squirmy on Thursday night have a compromise. That is why we risdictions. Nevertheless, they put in and Friday morning. They want to get have the exemption in there. It is a that ZIP Code and they will know what back home. I understand that. But if compromise. We started with it in the the tax is and have no liability whatso- you want to reach that deadline and do Senate as being a $500,000 exemption. ever because that falls on the people it in the appropriate, timely way, The House folks convinced us—as I who provided them with this free soft- please bring all amendments to the mentioned, this is a bipartisan, Repub- ware. This makes a huge difference to floor now. We urge our colleagues to do lican and Democrat, bicameral, House States, counties, and municipalities. that. and Senate effort. The House convinced I used to be a mayor. I was a mayor I yield the floor. us that $1 million was a more reason- of a town that tripled in size during the Mr. ENZI. Mr. President, I want to able figure, and they gave some good 8 years I was mayor. Had it not been congratulate the Senator from Maine reasons for it. Now $1 million would for sales tax, we would have been on his speech. It was a tremendous his- give any small businessman quite a few broke. I checked around to see how tory lesson. I have enjoyed getting to years, perhaps—I hope it is a short pe- much towns and municipalities rely on know him a little bit since he got here. riod of time, but it should give them the sales tax for their source of rev- I had quite an interesting surprise yes- quite an amount of time before they enue. I was shocked. About the min- terday. He came to my office and he had to adjust to this, because they imum that I run into is 30 percent. brought an American flag, all framed. have to sell $1 million on line in a year There are quite a few more than I ever The way he got it, there was a desk his before they have to start collecting the thought that rely on sales tax for 70 great-aunt had. The desk was probably tax the next year. percent of what they do. made in the 1860s. But behind one of In a State where there is a sales tax So what does a municipality do with the drawers they found this flag. It was and the people are selling in the brick- its money? Well, let’s see, a lot of them a flag with 44 stars. Wyoming was the and-mortar store which we are trying have schools they have to take care of,

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00030 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2939 they have law enforcement they have for a library, and how much you can States is considered a tax expenditure. to take care of, they have firefighters levy for fire. Those things do not begin Again, it was hit by 5.3 percent. they have to take care of, some of to cover the cost of the service that is One of the reasons this is 5.3 percent them have ambulances. So it is all of rendered. this year in the sequester instead of 2.3 the first responders essentially they So to the people who are protecting percent—which is what it was across have to take care of. the Internet, I would say it is pretty the board for the .3 percent—is we If you are in the northern States, as hard to flush your toilet on the Inter- don’t have any months left to revise I was, you have to do it for snow re- net. Sometimes those utilities come those expenditures, but these are one- moval. People are really particular into play with these things too. Those time payments. The time for con- about snow removal. Incidentally, Wy- taxes are very important to almost all densing them has not expired, so at the oming is still having a little bit of win- of the communities across the United most it should have been 2.3 percent. ter. Let’s see, today is Wednesday, so States, in 46 States. The other four do That is a different problem that I will that is typically our spring. We have a not have a sales tax. handle in a different bill. I am hoping lot of snow, even in April. That is when One of the things people have said is, people will not try to gum this up with most of our moisture comes. We get if they get this extra sales tax, why a whole bunch of nongermane or irrele- snow in January too, but that is a real don’t they bring down some of the vant motions. If we stick to relevant dry snow. In fact, we are such a dry cli- taxes they currently have? Some of the ones where we are really trying to im- mate that I often tell people that even States and some of the municipalities prove this bill, I am in favor of it. If we our rain is only 80 percent moisture. Of and counties will do that. I have had are trying to do some other peripheral course, a lot of it gets sucked up by the several of them tell me that if we could ones, in light of the tremendous sup- air as it falls. A long rainstorm in Wyo- get a little bit more in sales tax, we port this bill has, I am hoping people ming might be 5 minutes. We get a would do that. will stick to the bill and try to perfect total of 13 inches a year. So we rely on But let me tell you a little problem it. We can have votes on that. that snow. But if you are a mayor and we have in the Federal Government. I see my friend from Tennessee is it snows, you have a major problem, We are out of money, so we are cutting here. because people expect to be able to get back. And one of the ways we cut back I yield the floor and reserve the re- around. I found out that if you plow it was through the sequester. mainder of my time. to the center, then they cannot make The way some of that is worded, The PRESIDING OFFICER. The Sen- left-hand turns. If it is left on the some of these things are considered tax ator from Tennessee. ground very long and that freezes, then expenditures. For instance, the Federal Mr. CORKER. I wish to thank the you really have a problem getting it Government promised to pay a prop- Senator from Wyoming for his out- up. If you plow it to the sides, you erty tax in lieu of real taxes. In other standing leadership on this issue. I block in people’s driveways and peo- words, the municipality does not tax know it is something he has worked on ple’s cars. That usually upsets them them, the county does not tax them. for a long time, and finally we have it too. But the Federal Government says: Yes, on the floor for debate. I remember when I was mayor, every we own property. If you can sell that I am a strong supporter of the Mar- once in a while I would get a call from property at a private sale, the private ketplace Fairness Act. I thank all in- a disgruntled citizen who would com- entity would have to pay property tax volved on both sides of the aisle for plain that I just plowed their driveway on that. So it is only fair that the Fed- getting it to this place. As the Senator back in after they had gotten it open. eral Government pays taxes in lieu of just mentioned, I do hope we will have They wanted to know what I was going taxes. They have been doing that for a an amendment process soon which will to do about it. I would tell them to number of years. allow people to improve the bill as the give me a few minutes. I would get in The value of the properties, of will of the body sees fit. my car, which always had a snow shov- course, has gone up considerably, par- I come from a State, the State of el in the trunk. I would go to their ticularly in cities where there are Fed- Tennessee, where we have no income house and start digging it out. Usually eral buildings, but also in the forests. I tax. We generate funding for education when they noticed me, they came run- have people who know the value went and health care through a sales tax. ning out and said: Oh, no, we did not up because they are able to lease some That is the way our citizens like it. intend for you to do that. I said: Well, cabin land in national forests. Their What we found in the State over time everybody else is doing snow removal. I payments have more than doubled in is that more and more sales are coming never got two calls on that. But that is the last 3 years. That is a 100-percent into Tennessee residents over the another use for sales tax money. There increase. I guess this year it is even a Internet. In many cases what is hap- are many more. more dramatic increase. But the Fed- pening is people are going into the All of the charities in a town usually eral Government, while it is charging brick-and-mortar stores that are all go to the city council. They say, we more for the property, is not paying part of the fabric of our community. have this valuable project. We need more in property taxes, which would be They are going into brick-and-mortar some money. Anybody who says they the normal thing. This year, they are stores where people have made invest- cannot fight city hall probably never taking 5.3 percent out of every bit of ments in land, buildings, roofs, and op- tried. A lot of those requests are grant- that tax. Of course, I say to people: eration. They go in and try on goods, ed. Wouldn’t it be nice if when you file see how it looks, and then they order it But if the sales tax continues to your Federal income taxes you could on the Internet. shrink—that is what is happening with have taken 5.3 percent out of there? It Obviously, those sales proceeds, the it now, State sales tax, county sales is sort of the same thing. It is what the sales tax that normally would come tax, local sales tax is all shrinking. If government said they would pay in with that, are therefore bypassed. that continues to shrink, they are taxes. What we have done over time because going to have to start cutting back on There are a number of reasons these of the tremendous success, which I am things they do. Of course, probably sales taxes are extremely important thankful for, of the Internet is, there is some of the charity things will be some and getting more important. If you had actually a system that has been cre- of the first ones to go. It is always hard Federal mineral royalties, you lost 5.3 ated to get around State laws that to tell what the net effect will be. But percent of that too. That is because the exist all around our country. This bill if they do not have any ability to in- States collect—half the money from has nothing to do with imposing any crease the revenues they have—and the minerals in the State are supposed kind of new tax or revenue generator. most of the towns in Wyoming do not to be for the State and half are sup- This law allows States that already have a chance to increase the taxes posed to be for the Federal Govern- have laws on the books to carry out they receive. Property taxes are lim- ment. The half the Federal Govern- their implementation. ited by very specific sorts of things, ment received they considered to be Again, our citizens have no income such as how much you can levy for the revenue. The half that is supposed to tax. If the country and if society con- cemetery, and how much you can levy stay with the States or go back to the tinues as is and sales tax continues to

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00031 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2940 CONGRESSIONAL RECORD — SENATE April 24, 2013 erode because of Internet sales coming He understands the transaction taxes denying them the right to follow the in from other places, what eventually that they are talking about, and I ap- law of the United States, denying them could happen in our State is we will preciate his learned opinion on that. the right to enforce the law they are have to move to an income tax. Mine comes from section 3, called required to enforce, and they charged Our citizens like it the way it is. I ‘‘Limitations,’’ and in general it says: that they are refused the right to carry am glad this legislation is where it is. Nothing in this act should be construed out plain directives from the Congress I hope it is going to become law be- as subjecting a seller or any other per- that said under certain circumstances cause I believe it is something that cre- son to franchise, income, occupation, they shall commence, for example, re- ates fairness, if you will, in the mar- or any other types of taxes other than moval proceedings against someone. ketplace so all of those who are cre- sales and use taxes. The Secretary just says: No, we are not ating and selling goods in the State of I hope we stick to that and make going to do that anymore. Tennessee and other places are treated sure it just says ‘‘sales and use taxes.’’ Well, here is a very unusual develop- exactly the same. I have worked on this for 12 years, so it ment, I would suggest. I started out as I have heard some arguments from is tough enough to extend it beyond a young Federal prosecutor in 1977, and my friends in the financial community that. I know there are lots of things I have never heard of this occurring. talking about this opening the door to people would like and to open this up. The ICE officers sued Secretary Napoli- some kind of financial transaction tax. I appreciate the one amendment that tano and Mr. Morton, and they raised I deal with a lot of these individuals. I was presented but was objected to, the suggestion they were placed in an am on the Banking Committee, and we which was an amendment which would untenable position where the law re- discuss a lot of issues relative to finan- have continued to ensure—we already quired them to do one thing and they cial institutions and transactions. I have a provision that says you cannot were told by their superiors to do know of no reason anybody should have tax the Internet. You cannot tax the something contrary to law. The case any fear of that. Internet. They wanted to extend that was heard in Federal Court. There is nothing in this bill that cre- another 10 years, and it doesn’t expire In the hearing yesterday, I raised ates a different arrangement within for another couple of years. this with the Secretary. And my friend, State or local governments that allows I thank the Senator for all of the ef- the chairman of the Judiciary Com- them to do something different than fort he has gone to on this bill and all mittee, Senator LEAHY, laughed. He they already are doing. I don’t know of the ways he has helped us. I appreciate said: Well, a lot of people file lawsuits, any precedent that has been set in his plea for people to come forward but it is another thing to win one of State and local governments as it re- with their amendments. these lawsuits. lates to transactions regarding finan- I suggest the absence of a quorum. That is true. It is unusual to see cial activities. I don’t know of any- The PRESIDING OFFICER. The some of these lawsuits that are filed thing in this bill that should cause peo- clerk will call the roll. actually reach a situation in which ple fear of that occurring down the The assistant legislative clerk pro- Federal officials are directed to do road. ceeded to call the roll. something. But it appears that is ex- Typically, when a piece of legislation Mr. SESSIONS. I ask unanimous con- actly what the Federal judge did yes- such as comes up, we have all kinds of sent that the order for the quorum call terday. He said the Secretary doesn’t groups who come forward to try to be rescinded. have the ability to direct agents not to poke holes in it. Some of them, by the The PRESIDING OFFICER. Without do what Congress has explicitly re- way, are legitimate. Hopefully, the objection, it is so ordered. quired them to do. They have a right to amendment process we have will help Mr. SESSIONS. I would further ask have certain policies and procedures— address some of the issues people may unanimous consent that I be allowed to although those are pretty dangerous as be concerned about. speak as in morning business. it is because setting prosecutorial A lot of times there is just fear gen- The PRESIDING OFFICER. Without guidelines and procedures can create a erated to keep anything that may exist objection, it is so ordered. circumstance in which effective law en- from changing. I hope when we have a IMMIGRATION REFORM forcement is neutered. But to go for- debate, when we actually begin having Mr. SESSIONS. Mr. President, we ward and actually dictate that man- amendments on this issue, what we have had a long-standing problem in dated statutory requirements not be will do is stick to the substance, as was the enforcement of immigration laws enforced, this Federal judge suggested, mentioned, and that we will try to im- in the United States. The Secretary of was not acceptable. prove this bill in a meaningful way. Homeland Security, Secretary Napoli- One ICE agent testified at the hear- As it sits, again, I wish to thank the tano, has regularly and sophisticatedly ing that agents have witnessed large Senator from Wyoming. I wish to issued policy directives that have ad- numbers of criminal aliens in jails tell- thank the senior Senator from Ten- versely impacted the ability of law en- ing each other how to evade immigra- nessee, LAMAR ALEXANDER, whom I forcement officers to do the job that is tion laws because word has gotten know has worked very closely with the required of them by law. It has caused around that ICE agents are required to Senator. I am an original cosponsor of quite a bit of a problem. take their verbal claims at face value. this bill. I think it is an issue whose The ICE officers association, the If they say they have been here and time has come. I hope the Senate will union, voted a couple of years ago came here as a child, that must be pass this piece of legislation after our unanimously no confidence in John taken at face value, without verifica- debate concludes. I hope the House of Morton, the Director of that agency. tion, and ICE agents must then release Representatives will do the same. He should already have been removed, them instead of putting them on a path To me, this is about fairness, fairness in my opinion. In addition, morale, ac- to removal. in the marketplace so those people who cording to a government survey in the Another officer, Chris Crane, the are involved in sales transactions, ICE officers department, is one of the president of the 7,600-member associa- whether they are brick and mortar or very lowest in the government. tion, testified in court the administra- whether they are Internet and being I asked Secretary Napolitano in 2011 tion’s policies put officers in the unten- shipped out of someone’s garage or had she met with these officers and dis- able position of releasing illegal aliens shipped from a warehouse, I hope we cussed the problems. The answer was from custody who have been identified will achieve a balance that is appro- no. I asked her Tuesday, yesterday, had as a result of their criminal behavior priate for our country and fair to all she met with them. She said no. simply because word has gotten around those involved. I raised the point that these ICE offi- they do not have to be deported if they Mr. President, I yield the floor. cers are not complaining about pay, claim to qualify for the President’s ad- The PRESIDING OFFICER. The Sen- not complaining about working condi- ministrative amnesty. ator from Wyoming. tions, and not complaining about It is a remarkable development, that Mr. ENZI. I thank the Senator from things that often enter into employ- a Federal judge has concluded that law Tennessee for his comments. He is very ment disputes. What they are saying is enforcement officers in America are involved in the Banking Committee. that the Secretary and Mr. Morton are being directed not to follow plain law.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00032 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2941 With regard to the proposed legisla- respected and affirmed in their duties. as an immediate grant of legality, with tion produced by the Gang of 8 that is On a daily basis they are out con- a vague promise of enforcement in the going to be brought up tomorrow in the fronting people who are in this country future. This court case is dramatic Judiciary Committee. It has hardly unlawfully and violating various laws. proof that enforcement has not been been read yet, but we know that law They are trying to remove them from happening. greatly expands the discretion given to the country, as we have always done— I thank the Chair, and I yield the the Secretary of Homeland Security. In and as every country does when people floor. many different places it gives the Sec- violate their laws—and they have been The PRESIDING OFFICER (Mr. retary the power to do that and waive undermined in that. Their morale has BROWN). The senior Senator from Mon- some of what would appear to be plain plummeted, and the Secretary hasn’t tana is recognized. policy goals of the act, at least accord- even talked to them. Mr. BAUCUS. Mr. President, I would ing to the people who sponsored it. I will tell you who else hasn’t talked like to say a few words about the pend- This has far-reaching implications to them—the people who wrote this ing bill before us. for the debate on the reform of immi- bill. Chris Crane, the head of the asso- This bill will hurt small businesses gration. The bill gives the Secretary an ciation, wrote, called, publicly asked not just in Montana, New Hampshire, unprecedented amount of discretion for the opportunity to participate in and Oregon—non-sales tax States—but and waiver authority. By some esti- these discussions and at least tell them all across the country. The bill will let mates, there are over 200 mentions in what the real world is like. But, no, one State go after businesses in an- this nearly 900-page bill of giving more they had the chamber of commerce, other State. This bill could give any power to the Secretary. Five times in they had the agriculture people, they State the right to make businesses the bill it affirms the Secretary’s had certain union officials, they had La across the country collect sales taxes ‘‘unreviewable discretion’’ to waive or Raza. They have all been meeting and for that State when selling products alter provisions of the legislation as talking but not the people out there online. Therefore, businesses could be she sees fit. In fact, the bill essentially struggling every day trying to make forced to spend their time and money codifies the flawed policies that are sure we have a lawful system. collecting taxes for States across the now being challenged in this lawsuit. It That is what the American people are country with no benefit to them. gives statutory power to the Secretary asking for. The American people are I am repeating that this bill has not to do what she has been doing. not angry at people who want to come been through regular order. The Fi- Indeed, illegal immigrants appre- to America. We believe in immigration. nance Committee has not had a chance hended after the new law goes into ef- We are going to see immigration con- to improve this bill or address the fect would not enter deportation pro- tinue. No one is suggesting that is many unanswered questions about its ceedings. Instead, the Secretary ‘‘shall going to end. But the American people provisions. The floor of the Senate is provide the alien with a reasonable op- are upset with their politicians and no place to try to improve upon the bill portunity to file an application’’ for their government leaders who say one and make the bill work. provisional legal status provided the thing, promise one thing, and do the Years of work have been put into the immigrant ‘‘appears prima facie eligi- exact opposite. They have been prom- issue of State sales taxes, and I com- ble, to the satisfaction of the Sec- ising for 30 years that we are going to mend Senators DURBIN and ENZI for it. retary.’’ The bill emphasizes that it is have a lawful system of immigration. Unfortunately, that work is not re- not designed to ‘‘require the Secretary It hasn’t occurred. flected in the bill on the floor today. to commence removal proceedings’’ We passed a law to have 700 miles of For years, the concept of allowing against any illegal immigrant. fencing, and everybody applauded— States to require out-of-State sellers to We have a Secretary of Homeland Se- some of them grudgingly. Yet only 30 collect sales taxes on their behalf was curity who is issuing policies that re- miles of a double fencing, as required done through a compact known as the quire sworn law officers not to enforce by law, has ever been built. Streamlined Sales and Use Tax Agree- actions specifically required by con- Twenty years ago there was a law ment. gressional law. A Federal judge just mandating an effective entry-exit visa After over a decade of work on yesterday found that is not proper, and system. Some of the foreign terrorists streamlining, only 24 States adopted stated in effect the Secretary is not came in on 9/11 under the visa system. the required simplification measures. above the law, which I think most Forty percent of the people here ille- The remaining States refused to join Americans would certainly agree with. gally, it now appears, come to this the compact. Why? Because they didn’t Now we have a proposed new law that country through the visa system. It want to meet the requirements for sim- would give more authority to the Sec- hasn’t been fixed yet, but we continue plification. retary to continue to waive policies in to promise we will do it sometime. To break the logjam, Senator ENZI the future and would grant the Sec- Even this bill, as I look at it, won’t introduced the Marketplace Fairness retary additional discretion in many close the gaps in the entry-exit visa Act in November of 2011. This new bill areas. system. It will not fix that problem. is nothing like the streamline bill. This is the problem, colleagues: Con- So I think the American people are They are totally different bills with gress tells America we are going to pleading with Congress to do the right different legislation. give legal status—amnesty—imme- thing, to actually make sure we have a This new bill says a State can require diately to some 11 million people who system that serves the national inter- out-of-State sellers to collect sales have entered the country illegally. By est and is fair. No system is fair if peo- taxes on their behalf simply by meet- definition, that is to whom this ap- ple who do the right thing have to wait ing six or so simplification require- plies. And we say: Trust us, we are and wait and wait and people who do ments. But these simplification re- going to have the toughest laws you the wrong thing get rewarded. That is quirements were ones chosen that the have ever heard of in the future. Well, so obvious as to be unmistakable. States could easily or already meet. first, these laws aren’t that tough. Sec- So I look forward to going forward They are window dressing. ondly, it provides multiple waiver au- with a discussion of what we can do to First, the bill says a State must pro- thorities to the Secretary of Homeland improve this system. We certainly need vide software free of charge that cal- Security, and this Secretary has prov- improvement. I certainly respect my culates sales taxes due. What that en she is not willing to have the laws of colleagues who worked on it. I think means to the business owner is 45 dif- this country enforced. She has even their hearts are right. I know their ferent pieces of software. What kind of been sued by her own law enforcement hearts are right. We can do some good software is it going to be? Could it be officers, who have just won at least an things. But I do believe the American a single Microsoft Excel file buried initial victory in a lawsuit in Federal people are right to be dubious. The deep in a State’s Web site? How would Court. American people are right to watch a business make this software work- This is a dramatic example of the this very carefully, and they should able? The bill does not say. problems I have been hearing from not affirm another one of these situa- Let’s say a business thinks the soft- Federal law officers. They need to be tions in which a promise occurs, such ware provided by a State isn’t good

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00033 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2942 CONGRESSIONAL RECORD — SENATE April 24, 2013 enough—that it isn’t workable. Now offering amendments on different State the FAA and this White House are de- this business will be forced to go to tax issues, such as the Internet Free- liberately trying to make it harder on court in that State and prove the State dom Act. But the floor is not the right their customers—the people who use didn’t meet the simplification require- place to mark up a complicated stat- the airways and fly airplanes. ments. What kind of fees—not to men- ute, let alone tack additional legisla- Last week the head of the FAA ac- tion time—is that going to take? A tion onto the bill. This bill needs to be knowledged that, like other govern- business will have to purchase software reviewed in a comprehensive and ment institutions, his agency has the or services from a private company to thoughtful manner through regular discretion to fund high-priority collect sales taxes owed for multiple order. projects—over low-priority projects not States. This won’t be free. Businesses I repeat: This bill is not thought a particularly remarkable statement in will also have to pay for the ongoing through. It is bad for Montana, and it and of itself. But we know now that in- service of collecting and filing taxes. is bad for small businesses all across stead of using that discretion, the FAA Second, one of the most confusing our country, and not just nonsales-tax has announced it plans to furlough em- issues a business ever faces with State States. ployees for the remainder of the budg- tax issues is whether it has what is Mr. President, I yield the floor. etary year, potentially leading to called nexus. In tax jargon, that means The PRESIDING OFFICER. The sen- flight delays all across this country. sufficient connection to the State. If ior Senator from Texas is recognized. The FAA’s Director claims he has the business has nexus, it has to collect SEQUESTRATION used all the flexibility allowed to him sales taxes on sales into the State Mr. CORNYN. Mr. President, amid under the law—even though his agency right now—whether or not this pending complaints from the White House spends $541 million on consultants, $179 legislation is passed. This bill does about the FAA furloughs, we need to million on travel, and $134 million on nothing to solve the confusion on keep at least one thing in mind: The office supplies. By comparison, the sequester cuts nexus. Even if it passes, businesses will sequester was President Obama’s idea the FAA budget by $637 million—less still grapple with the issue of whether in the first place. His administration than 4 percent of the agency’s 2012 they have nexus in other States. created it; he signed it into law on Au- budget. I don’t know any business in Why does this matter? This matters gust 2, 2011; and he knew the date it America that can’t manage a 4-percent because the bill sets up rules only for would go into effect. And yet, as the cut in their income. But the FAA ap- those out-of-State sellers with no deadline approached, earlier this year parently can’t, without disrupting the nexus—termed the remote sellers. Does the President and his administration air-traveling public, inconveniencing this sound complicated? It is. It is very traveled the country to stir up anxiety, them, and even creating a hardship complicated. concern, and fear over the imposition This bill creates one set of rules for which is completely unnecessary. of the sequester, warning that the sky We have already seen the FAA exer- sellers that have nexus prior to the would fall like a modern-day Chicken cise discretion to one small extent, and Marketplace Fairness Act, and another Little. that is by delaying the closure of air set of rules for remote sellers. What It has been almost 2 months since the traffic control towers until June 15, does the small business owner do who sequester took effect, and the adminis- after announcing as many as three pre- isn’t sure where his business falls—into tration’s claims that the sky would fall vious final dates for implementation. one category or the other? If you get it have each proven to be false. Much like the proposed tower clo- wrong, that business may be exposed to First, we had the Secretary of Edu- sures, this recent round of furloughs is additional penalties. cation Arne Duncan claiming the being driven not by the necessity of Third, even if the business is clearly school teachers were already getting budget cuts but by political calcula- a remote seller, the so-called sim- pink slips. But that wasn’t true. tions and sheer incompetence, along plification requirements are in no way Then President Obama declared that with the administration’s desire to ap- simple. Streamline—that is the other U.S. Capitol janitors were getting a parently maximize the pain on Amer- legislation that was worked out be- pay cut. But on further examination, ican taxpayers because of their refusal tween about 24 States—was book that proved not to be true. to take our fiscal health seriously. It length. Here, instead, we have a bill Customs and Border Protection ini- boggles the mind. that is only 11 pages. tially told their employees—including We have offered legislation that The bill’s sponsors have thoroughly border agents—that they might be fur- would give the President and this ad- compromised with 100 different fac- loughed. However, a month into the se- ministration the necessary flexibility tions on this, and what they came up quester, Customs and Border Protec- to administer the cuts imposed by the with may look simple on the outside tion walked back that claim and de- sequester—which the President, again, but is total chaos underneath. Remem- cided to make better use of depart- knew was coming since he signed it ber, too, a business still could be forced mental resources. into law on August 2, 2011. But our to file sales tax returns in 50 different The Director of the National Park friends across the aisle blocked that jurisdictions. Some of these returns are Service said the sequester might lead legislation, which would give the FAA due monthly. A business will be subject to cancellation of Washington, DC’s and the executive branch discretion, to all those different jurisdictions’ cherry blossom festival. But as all the and the President’s administration definitions of what is or is not taxable. visitors who flocked to DC can tell you, sent out a statement of administration It varies by State. In addition, small the festival went on as planned, and policy saying that if we passed it, he businesses will be exposed to audit, col- Washington’s Metro reported one of its would veto it. lection, and enforcement by 50 dif- highest ridership days in its history. This morning I joined with Senator ferent States. With all of these bogus claims, it HOEVEN, our colleague from North Da- This bill carves out businesses with seems the administration is desperate kota, to cosponsor bipartisan legisla- less than $1 million in remote sales. to prove it wasn’t crying wolf after all. tion that would direct the FAA to That threshold is too low. Retailers For example, we are learning that eliminate the flight delays it has im- have notoriously low profit margins, the Federal Aviation Administration is posed on air travelers. In order to meet and small businesses can easily surpass now deliberately engineering flight this directive, the bill would give the that threshold with sales. In com- delays—deliberately engineering flight Secretary of Transportation the addi- mittee we could actually look at data delays, just as families gear up for tional authority to transfer funds with- to see what makes sense. We could their summer travel. It is a bizarre, al- in the Department’s existing budget. bring experts in to talk about what a most surreal experience. All across This legislation represents just one of real small seller exception should look America, businesses work hard to take the many proposals that are designed like, rather than arbitrarily picking a care of their customers because they to ensure that the sequester is not used number. know their livelihood depends on their as an excuse to endanger public safety I know Senator DURBIN has invited ability to satisfy their customers’ and security, or inconvenience or cre- Senators to come down to the floor and needs. But when it comes to the admin- ate hardships for the air-traveling pub- offer amendments. Other Senators are istration and the Federal Government, lic.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00034 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2943 Unfortunately, between the cancella- Mr. DURBIN. Will the Senator yield fairly easy for people to look through tion of the White House tours and now for a question? it and see what is included and what is the FAA furloughs, the administration Mr. ENZI. I yield the floor. not included. We have pretty much has repeatedly shown it is more inter- Mr. DURBIN. I would like to engage limited this—not pretty much, we defi- ested in finding ways to inconvenience the Senator in a dialog, if I can, nitely limit this to sales and use taxes. the American people than it is in look- through the Chair. When they put other peripheral things ing for real solutions to our fiscal prob- The PRESIDING OFFICER. The Sen- in there, then they are opening the bill lems. ator is recognized. to go into a lot of different things. So The American people, it would seem Mr. DURBIN. The Senator from Wyo- I hope that would not happen. obvious, deserve more and better from ming and the Senator from Tennessee Of course, there was some question their government. I urge the FAA, No. and I, along with the Senator from earlier in one of the speeches by the 1, to take another look at its budget, North Dakota, have brought this meas- Senator from Montana about the real take a look at those piles of money ure to the floor and invited our col- difficulties of being able to administer that might be available to move leagues to file amendments. We are this. Again, there are only 11 pages in around to help avoid the furloughs and starting to get a response. I can give the bill. Page 4 covers software, free of avoid the inconvenience and disruption this general report, kind of general ob- charge for remote sellers, that cal- to the public or, 2, to use the flexibility servation, because we have to decide culates the sales and use tax on that that we would be glad to give the FAA, how to move forward. transaction due at the time it is com- if it needs additional authority, to So far there are about 13 amend- pleted. It also has to provide a way to make commonsense decisions. ments that have been suggested to us. file the sales and use tax returns, and We don’t need another round of scare I would say, off the top of my head, six it has to be updated for any rate tactics. We need a serious conversation or seven of those I would move to table changes that there happen to be. about our country’s priorities, and a if they are brought to the floor because The responsibility is all on the State budget that reflects them. they all amend the Internal Revenue to provide the software. I think the Mr. President, I yield the floor. Code. They change Federal taxation. provisions that are in there pretty well The PRESIDING OFFICER. The sen- Our bill does not change Federal tax- specify how carefully that has to be ior Senator from Wyoming is recog- ation, and we run into a procedural done. If it is not, there is no liability nized. problem, known as a blue-slip problem, on the remote seller. So I think we Mr. ENZI. Mr. President, I thank the if we amend the Internal Revenue Code have covered that. Senator from Texas for his comments. in the Senate and send that measure Yes, it will be difficult to do that There is definitely a problem. We had over to the House. software, but that is part of the provi- people miss votes on Monday night be- So I urge, and I hope my colleagues sion in here. It can be done. This is a cause the supposed furlough that the will join me, colleagues who want to day, as the Senator from Tennessee air traffic controllers had to have in ef- change the estate tax, gift tax, what- points out, that we can put in a ZIP fect delayed some planes for more than ever it may be, please save that for an- Code and find out what our sales tax is 11⁄2 hours. I looked at some of the num- other day. If they bring it to the floor, going to be. That is what this program bers, and I don’t think that had to hap- if we end up voting before cloture, I is calling for. I think I have that right. pen. Even within areas, there is enough will suggest we table those so we do I rely on the Senator from Tennessee flexibility to do better things. not go to the merits of any of those to answer that question more specifi- I noticed some of the sequester suggestions but simply say that is not cally. things in Wyoming that came out and part of this bill. The PRESIDING OFFICER. The Sen- made calls about them, and found out There are two or three amendments, ator from Tennessee is recognized. that people actually could change one is a managers’ amendment, one is Mr. ALEXANDER. I thank the Sen- within their own budgets some things a technical amendment on our side. As ators from Illinois and Wyoming for they were concerned with and make you can see, we are starting to get past their comments. Basically, the Senator sure it didn’t affect the customer. the halfway point of the amendments from Illinois has said the bill is ready That is just good management. currently filed. Then there are a hand- to be amended. It is here for that pur- One of the things was closing down ful, five or six amendments from Sen- pose. We encourage our colleagues to some of the visitors centers in Yellow- ators from no sales tax States, and bring amendments if they have them. stone and Grand Teton. They are not some of them are fairly predictable as We could have started the amend- open yet because at this time we are to what they want. One is a carve-out ments on Monday if the opponents had just getting the snow cleared out. I amendment which says don’t let the agreed to that. But we were forced, called and asked about keeping them law apply to our States. I think we are through Senate procedure, to go open and they said we don’t have going to have to face that question at through Monday and Tuesday and most enough personnel. some point and so be it. Let’s have a of today in order to deal with the fili- You have a gift shop there. That is a vote on this and move forward. buster. But we are about to be ready to profit center. You are supposed to be But I am still going to join my col- vote on amendments. making money on that. leagues urging everyone with an It was unfortunate; some people have They said the money goes to the gen- amendment, please bring them for- said in a misleading way that this eral fund. ward. Let’s get an understanding of taxes the Internet. Of course, it does I said: Where do you think your what we are going to do next. Those not. There is a Federal law against tax- money comes from? who have already delivered the amend- ing the Internet. The Senator from Ar- The gift shop should operate, and if ments, thank you. I am sorry the Inter- kansas attempted to extend that ban they have a problem with personnel, all net freedom amendment offered by the on taxing the Internet for 10 years and they have to do is the person who runs Senators from Arkansas and Missouri one of the opponents to our legislation the gift shop opens the door, does their was objected to by the Senator from blocked that. He blocked even having a day’s sales, and in the evening as they Oregon because I think it would have vote on that. That is unfortunate. are ready to leave, I hope they would been a good addition to this bill. It is ironic that the Senator from look up and down the street and see if But I yield to my colleagues and ask Montana would object to the fact that another customer was coming, but if for their thoughts, where we stand at this is an 11-page bill. I don’t want to they were not, go ahead and lock the this moment. relitigate some of the other bills we door and leave. That is just good busi- Mr. ENZI. Mr. President, I appreciate have passed around here, but there was ness. That is the way they could oper- that question. One of the reasons there a big hue and cry when Senators got a ate. It is my understanding those gift is difficulty, there is the blue-slip prob- 2,700-page bill that dealt with health shops and visitors centers will now be lem with the House, but also we have care and it was complicated and hard opened. the section on limitations in this bill to read. We have gone in a different di- There are ways that could be han- that appears on page 7. There are only rection. We have an 11-page bill that is dled. To go back to the bill—— 11 pages in this bill so it ought to be the result of work that has gone on

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It has been introduced with exactly It has been my interest, and I want Let me just say categorically, I have these 11 pages since February of this to repeat it, to work out a compromise known Senator DURBIN and Senator year. So everybody can read it. It is on this issue. Our side has put down on ENZI for a long time. They are not in- not complicated. It is plain and simple. paper a number of proposals that we terested in an Oregon business going It is about States rights. I think it is think ought to be the basis for trying away or anybody else’s business going good that we have an uncomplicated to work out a position that would away. That is not their intent. Regret- 11-page bill we all can read and we have allow, from our standpoint, at least tably, that is the effect. I just outlined had plenty of time to read it. some semblance of a right for a State how a small businessperson describes Of course, we would have preferred to to make its own judgments and not be the nature of free markets. have it reported by the Finance Com- coerced into just going along with a We are very proud of what we do in mittee, but they would not report it. piece of legislation that forces our the nursery industry in Oregon. We So the only choice we had was to bring small businesses to collect these taxes like the fact that we are selling high- it to the floor. Now it is open for for everybody else. The way I have quality goods, and we are winning amendment so I hope we will do that. compared it, whenever the proponents those sales over those supplying lower The only other point is it was said of the bill say they are for States quality goods. However, I know this is there is no benefit to an out-of-State rights, what I have said is they are for going to add substantial costs to Or- seller from, say, selling into Tennessee, States rights if they think the State is egon retailers, and in their own words if someone from Wyoming is selling right. they have said this would put them at into Tennessee. Of course there is a I am going to now read some exam- a disadvantage in tough global com- benefit. We are buying that business’s ples because my colleagues have said petition. goods. All we want to be able to do is they want to hear specific instances. I also want to say this—particularly to have the right to say: Mr. Wyoming, Here is what we heard from the Oregon since the Senator from Illinois is if you want to sell into Tennessee, you Nurserymen. These are not big busi- here—because I hope it indicates my are going to play by the same rules the nesses. These are not businesses with desire to try to work something out for Tennessee businesses have to play by. 500 people. These are businesses with purposes of passing this bill. I made an That is all we want to do. The equal five, seven or eight employees. Senator enormous concession for purposes of an protection clause of the Constitution MERKLEY and I are very proud of our agreement. This bill clearly gives a for- guarantees we cannot do anything Oregon nurseries. They produce an ex- eign retailer a leg up over an Oregon worse to you. But if you want to sell to traordinarily high-quality product, retailer or Montana retailer or any- us, you do what we do. ranked one, two or three in every cat- body else because it doesn’t apply to We think that is fair and we think egory of nursery products. those foreign retailers. that not allowing States to consider The reality is those are products that One of my and Senator MERKLEY’s that is forcing States to play ‘‘Mother are being sought out by Americans in constituents, Fire Mountain Gems—lo- May I’’ with Members of Congress every nook and cranny of the Nation. cated in Grants Pass, OR—is competing about matters which should be within That is how free markets are supposed in a tough global market. And what is their own sovereign jurisdiction and to work. The seller of high-quality going to happen is this bill—because it keeping States from doing what they goods wins sales over those supplying will not affect their foreign competi- think is fair. lower quality goods. tion—is going to cause them to spend I thank Senators DURBIN and ENZI for What this bill is going to do, as out- time and money that their foreign their leadership. lined by the small businesses Senator competitors would not have to do. Mr. ENZI. Mr. President, I suggest MERKLEY and I represent, the Oregon They sell all over the country in scores the absence a quorum. Association of Nurserymen, this bill is The PRESIDING OFFICER. The of jurisdictions. This bill gives a big going to add substantial costs to Or- clerk will call the roll. advantage to foreign retailers because The legislative clerk proceeded to egon retailers and make it more dif- it does nothing to, in effect, level the call the roll. ficult for them to compete with lower playing field between the small mer- Mr. WYDEN. Mr. President, I ask quality sellers in other parts of the chants and the businesses that Senator unanimous consent the order for the country. MERKLEY and I represent and their for- quorum call be rescinded. Here is a letter, and I will quote from eign competitors. The PRESIDING OFFICER. Without it, from the Oregon Nurserymen. They For the purpose of a good-faith ef- objection, it is so ordered. are the growers and sellers of plants fort, we have made a concession to try Mr. WYDEN. Mr. President, I think and trees. They are the prototypical to work this out. At this time I am not for the next half hour Senator small business and the backbone of our pressing to have that flaw, which is an MERKLEY and I are going to have the economy. This is a quote: enormous flaw. It gives a significant opportunity to outline specifically how It is my view that this legislation would advantage to foreign retailers over this affects small businesses in the real force small businesses to spend precious time American business. world. That has always been our con- generating endless sales reports for govern- I see the distinguished President of cern. One of the proponents of the bill ment instead of tending to customers, selling the Senate here, and he has been so el- plants and trees, and creating traded sector oquent in standing up for the rights of earlier today talked about big busi- jobs. Oregon growers are far away from their nesses and big businesses getting a free markets and we need to look to knock down American businesses. We have a fea- ride. That is not what this debate is all barriers to sales of our green goods. ture in this bill that actually gives a about if you are from Oregon or Mon- There are fewer than five people at huge windfall to the foreign retailers tana or New Hampshire. What you are these firms. Here is another quote from at the expense of American business. concerned about are your small busi- a small business: I am not asking for that to be cor- rected in this legislation, even though nesses. Let’s call the bill what it is—a transaction These are innovators. They are peo- tax. As the legislation stands now, the bill I think it is enormous discrimination ple without lobbies and political action will impact the marketplace—to the det- against American business. The Sen- committees. They are small businesses. riment of the small business and their abil- ator from Wyoming and I both serve on Someday they would like to be big, but ity to conduct commerce. Congress taxes the Finance Committee. I chair the Fi- they are trying to compete in a nation- things it wants to go away. nance Subcommittee on Global Com- wide marketplace and they are over- That is what these nurserymen, petitiveness. It is awfully hard to be whelmingly in opposition to this bill whom Senator MERKLEY and I rep- globally competitive if we give an ad- and for understandable reasons. resent, are saying about this bill. They vantage to foreign retailers. But in the

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00036 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2945 interest of trying to work this out, I the Oregon Association of Nursery- for other States where it is a mutually said we will not insist on that being ad- men—with 5, 8, or 10 people. Those are beneficial relationship, then it is very dressed in this bill. We will have to the people for whom Senator MERKLEY strange to have to be compelled—even come back to the Finance Committee and I are advocating. those 45 States that have sales tax ob- and look at that. I am happy to yield the rest of my viously were not so excited about form- So what our side has said is—Senator time to Senator MERKLEY. ing such a structure. They also seem MERKLEY, the Senators from New Mr. MERKLEY. Mr. President, how determined to pull into this involun- Hampshire, the Senators from Mon- much time remains? tary structure States that find the tana—just give us the opportunity to The PRESIDING OFFICER. There is sales tax abhorrent. If they find a tax be able to tell our constituents: You no time agreement. abhorrent—and just a little bit of back- are not going to have this pushed down The Senator from Oregon. ground there. I believe our State has your throat. You are not going to be Mr. MERKLEY. Mr. President, I com- voted nine times on a sales tax. Large- coerced into collecting these sales pliment the senior Senator from Or- ly the vote has been on heavy majori- taxes from thousands of jurisdictions egon who has come to this floor and ties defeating it. Many of those votes around the country. very clearly laid out what is felt in the are 70 to 30. I don’t see how we can have States heart of Oregonians across our State, Some of those reasons for that is be- rights if a State loses its ability to and that is this bill tells Oregonians cause it is an extremely regressive tax. make any judgments at all about areas they have to be the collection agents Another reason is that it is an expen- where it wants to make its own prior- for folks from 45 other States and hun- sive tax to collect; therefore, it is ities. Its priorities are being deter- dreds of local jurisdictions. This is not much less efficient and much more mined right here in Washington, DC, just an expense mandate, it is an offen- government waste. with this legislation with respect to sive intrusion into the rights of the Now we have all these Senators who the collection of sales taxes. Those pri- citizens of our State. are champions of government waste orities are being made here. In that regard, I want to just engage not only forcing an extension of their When Oregon small businesses are in a few questions and thoughts with own State’s wasteful tax system, but being coerced by State governments lo- my colleague from Oregon and try to imposing it upon the small businesses cated thousands of miles from Oregon’s highlight some of the concerns and of Oregon. Then we come to a whole se- borders, I think that is too much. I issues we have. ries of concerns that any small busi- think adding a layer of bureaucracy to I ask through the Chair the senior ness is going to have in this situation. the large and growing national market- Senator from Oregon: As he reads this A small business is told they must place fostered by the Net in the way bill, does he see in it any compensation participate, and basically anything be- this does attacks our most competitive for the time and effort that the busi- yond a single-person shop is pulled into small businesses. nesses in Oregon will have to spend col- this bill. Then they are subjected to— I also want to highlight—because the lecting the tax for hundreds of jurisdic- I think it is over 800 tax jurisdictions— only amendment I have objected to so tions across this country? having to call them and say: We are far today has been the one with respect Mr. WYDEN. I really don’t. I know not sure you gave us the right amount. to the Internet Tax Freedom Act that the sponsors of the legislation keep Is there anything in this bill that I authored back in 1998 in the Senate— talking about how this is not going to says those hundreds of tax jurisdic- the reason I had to object is the text of be a burden, for example, to the busi- tions out there cannot call and basi- this legislation directly undercuts the nesses my colleague advocates for, and cally challenge whether they have the Internet Tax Freedom act, and I will be that there is going to be software, com- right amount of money? specific. puters, and technology. I think my col- Mr. WYDEN. The Senator is right The law we wrote prohibits discrimi- league’s question is pivotal. that certainly those jurisdictions could natory taxes on electronic commerce. There is a little bit of interesting his- challenge Oregon. It goes to the ques- It is section 1101 of the Internet tax tory I think my friend from Wyoming tion, again, of how the systems are not bill. It prohibits discriminatory taxes knows more about than anyone else. in place, so let’s just force Oregon to do on electronic commerce. Under the For years there has been an effort at it even though the systems have not text of the bill, in effect they could re- the State level to try to remove some been available. There are actually quire an Internet company in one of of the hassles and the costs that my more than 9,000 separate taxing juris- these States, such as New Hampshire, colleague has talked about. I think the dictions. to collect sales taxes for the Massachu- official name—and my colleague prob- What we have been told by the pro- setts government. However, if some- ably knows this—is the State stream- ponents of the bill is that they are body drives from Massachusetts to an- lined sales tax project or something going to get this down to a smaller other one of these States, such as New along those lines. number of systems than 9,000. Again, Hampshire, the brick-and-mortar store If it were so simple, and if this was that is why it ought to be possible—if doesn’t have to pump the perspective something that didn’t have the kind of the Senator from Illinois and the Sen- customer for all kinds of information costs for small businesses that my col- ator from Wyoming will negotiate with about where they are from or where league is so concerned about, I think us—to work something out. they are going and the like. we would have already seen it put into We have given them on paper several So the reason—with great reluc- effect by the proponents of the bill. proposals to try to find some common tance—I had to object to adding this The reason we are on the Senate ground where our constituents—folks legislation to this bill that I am the floor talking about it—and talking in Oregon especially, but they are in original author of in the Senate is be- about Oregon businesses being forced New Hampshire and Montana and other cause this bill in its current form di- to do this against their will—is that it States that have made their own judg- rectly undercuts the essence of the is not without costs, it is not without ments—would have the ability to shape Internet Tax Freedom legislation. hassle, and the technology and all of some of our own decisions. As my col- At this time I will yield to my col- the marvels of software and computers league knows, Washington State has a league, Senator MERKLEY. I just want that we have heard about for the pro- sales tax. We don’t have a sales tax. So to make a special note that Senator ponents is not there. They have not our region alone shows that if we could MERKLEY has made a whole host of im- been able to do it through that kind of allow States to come together and portant contributions in the Senate, approach—which is essentially vol- make their own voluntary judgments, and I have been especially pleased he untary—so now they are on the Senate it is pretty clear that folks in Wash- has been a persistent advocate for floor to force States such as Oregon to ington believe they made some of the small business. I know the Senator do it. right decisions for their economy and from Illinois brought up big businesses Mr. MERKLEY. The Senator makes a individuals and we have made our own. in Oregon. The grief we have here is great point. If States have not volun- The fact that a State with a sales tax what this is going to mean to those tarily entered into compacts where and a State without a sales tax coex- small businesses, those nurserymen— they get to collect their own sales tax ist—and quite peaceably—right next to

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Mr. President, I were inside the State of New York, and has not responded in writing to any of think about the small businesses that that means subject to the State organi- the offers we made. would be subject to so many jurisdic- zations inside the government of New We would like to walk through this tions that they now have a tax rela- York, that means audits, that means process and find a way to have some tionship with and the responsibility to fees. It could include court actions. opportunity to tell our constituents— collect for and the possibility of having So we are talking about, as the Sen- particularly the ones Senator MERKLEY to basically call them and say: Well, ator put it, 9,000 jurisdictions that now correctly identified as being small and you didn’t do it right; you didn’t use can make life completely unmanage- going through all of these bureaucratic the right amount or the right software able. It would only take 2 or 3 to make water torture drills—that they are or this or that. it unmanageable, but 9,000 can make it going to be able to shape their own fu- I can’t imagine any small business unmanageable for a small business in ture. wanting to be exposed to, as my col- Oregon. Washington has a sales tax. Oregon league pointed out, 9,000—and even if it Now, my colleague from Illinois has doesn’t. The Senator from Illinois is consolidated into 800, that is still a said it is OK for small business because keeps talking about how Oregon is lot of people to deal with. If we have to we put in an exemption for selling $1 going to be some huge haven if we get deal with five or six, that is over- million online. That is no kind of an an opportunity to initiate a voluntary whelming. But then the question be- exemption at all. Let me explain. Let’s compact. That hasn’t happened today. comes whether those States have the say a small business is selling $1 mil- When we have one State and another power to audit the Oregon small busi- lion online and they have a 5-percent that are borders—as my colleagues nesses as collectors of a tax, just as margin. That means they are making know, we are very close. We have kept they might audit any other group that $50,000 a year. After they basically rec- the peace. We can work out these ap- was collecting sales tax for their State. ognize that a person is working for proaches. Mr. WYDEN. Again, it sure looks as themselves—they have no benefits sep- To have Senator MERKLEY and I con- though those are going to be the kinds arate from that—that is a very modest, cede on the major point, which is the of burdens our States—the ones with- middle income. That is one person. So provision that gives a foreign retailer a out a sales tax—are going to be sub- this has an exemption for only a busi- leg up in this bill—which I think is a jected to. ness of one—a modestly successful very serious defect, and I think a lot of The proponents say: That is not business of one—which means every Senators who vote for this bill, when going to happen. There is going to other business in the State that is en- they see that it is going to be a huge magically be all of this software and gaged online is subject to this provi- advantage for foreign retailers, they all of this technology, so if anybody sion. are going to have some real misgivings wants to come back and look later, So while others may feel comfortable about that—we gave that up for pur- this is not going to be hard to respond telling their home State small busi- poses of this. We have made conces- to. nesses—and this would include those in sions. We can’t even get an offer in I just know, looking at all of the the 45 sales tax States—that they are writing about something to negotiate businesses that have been in touch subject to audits and fees and court ac- that would incorporate a way to pro- with us—including A to Z Wineworks, tion from 9,000 other entities, I am cer- tect our States from the kinds of fea- for example. We have clothing stores, tainly not comfortable telling the tures Senator MERKLEY has correctly such as Queen Bee, a quintessential small businesses of Oregon they are described. small business that is employing eight going to be facing this type of incred- skilled staff members who all help to ible bureaucracy created by some of I especially appreciate him going bring the designs to life at the Hive on the folks who come to the floor and say through the specifics, as he always North Williams Street in Portland. The they are all about small business. does. Senator MERKLEY cited the fact Senator and I know them. Their goods Now, they want small businesses to that this legislation has a provision to are locally crafted in Portland. Re- be audited and fee’d and asked to turn basically compensate people for errors, becca Pearcy there said she—I will up in some other State for a hearing. which suggests to me that they think quote her: That is an outrageous attack on small there are going to be a bunch of errors and the reason they think so is because Building, running, and maintaining a Web business, not to mention our States site is expensive and complicated enough. I that do not have a sales tax. It is an they are right, as my friend from Wyo- can’t imagine having to include the addi- outrageous overplay attacking States ming knows, because they sought in tional infrastructure of charging and paying rights. the effort to try to sort this out during sales taxes to States outside of Oregon. Mr. WYDEN. Mr. President, I the streamlined sales tax discussions These are real businesses with six, couldn’t say it any better than Senator that have gone on for so many years. eight people who, when they hear that MERKLEY. I think he has characterized I wish to yield to Senator MERKLEY they are going to have to pay, that what this legislation is all about better for the last word. It is a pleasure to they are going to run the risk of hav- than anybody I have heard on the floor partner with Senator MERKLEY on so ing these kinds of audits and the like, of the Senate. many issues, and he has described it and that maybe there is going to be I have been in this debate for quite a today as well as anyone has in this dis- software and computers for them to while here. It is about coercion. It is cussion. I thank Senator MERKLEY for take care of it, they say: You have to about putting those small businesses all of his leadership, and I yield to him be kidding. We can’t put our business Senator MERKLEY is talking about for closing it up, as our small busi- at risk on the promise of that kind of through sort of the equivalent of bu- nesses in Oregon, such as the Oregon hope and a Washington promise. reaucratic water torture. I have ex- Association of Nurserymen, have been Mr. MERKLEY. Well, I appreciate plained how the text of it in its present talking to us about. the Senator expanding on that. form directly violates the prohibition Mr. MERKLEY. I thank my senior On page 6 of this bill, there is a line in the Internet Tax Freedom Act of dis- Senator for his championing and his that starts out very promising: ‘‘Re- criminatory taxes. leadership and his longtime defense of lieve remote sellers and certified soft- Again, to the sponsors of the legisla- the Internet as a place of fair trans- ware providers from liability to the tion, I wish to repeat that I and Sen- actions for small businesses and large, State or locality for incorrect collec- ator MERKLEY and Senator SHAHEEN, as a tax-free zone. I hope this Chamber tion and remittance . . . ’’ Well, that Senator AYOTTE, the two Montana Sen- is not engaging in a course that is sounds OK. That sounds as though you ators—we have put down on paper—on going to change that dramatically, as are not subject to an audit. But then it paper, I say to my colleagues—specific it seems so intent on doing at this mo- goes on to say, only from basically an offers to try to work this out. Senator ment.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00038 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2947 I am very struck by the correct point Senate—creating new opportunities for States and not collect the sales tax my colleague made about foreign com- Oregon small businesses to succeed in owed to that State. That is it. We are panies. Here we have a company in this tough economy. But that is the op- not forcing them to sell in Illinois or Canada that is not subject to this bill. posite of what we are doing here. Wyoming. That is a business decision We have a company in Mexico that is Maybe that is why Oregonians are they are making. We are just saying: If not subject to this bill. For that mat- overwhelmingly opposed to this bill. you sell, collect the sales tax required ter, we have a company in Nigeria or I think it is clear that there are some by Illinois law, Wyoming law, Con- anywhere else in the world not subject ideas for which, if someone passion- necticut law. That is what it comes to this bill. So when American busi- ately believes in them, they are willing down to. nesses say we should maintain a level to try them out, they are willing to de- Why is it important? It is important playing field to keep business in Amer- velop a pilot project before they im- because businesses in our State—small ica, allow us to play on a level playing pose it on the entire Nation. businesses—are competing with Inter- field, they are certainly hoping we Certainly out of the 45 States, since net retailers that get an automatic dis- won’t pass something such as this that so many have come to the floor rep- count when they do not collect the gives such an enormous advantage to resenting their States passionately, sales tax. other nations. saying this should be done, why don’t I listened to the explanation given by I must say that constituents have they have a pilot project among their one of my friends from Oregon here, been weighing in on this issue. I don’t States and demonstrate that this is not and he said that I am defying the nat- think it would surprise anyone to know going to be a burden in which there are ural forces of the free market system, that they don’t like it. Ninety-eight audits and fees and court appearances where good-quality goods are chosen percent are writing in to us to say: We and phone calls from the some 9,600 ju- over lower quality goods. Well, I can- don’t like it. We don’t like the idea of risdictions my senior colleague has not argue about the pine trees that are other States auditing our businesses. pointed out? Why don’t they dem- grown in Oregon because I do not know We don’t like being asked to be a tax onstrate that first before they decide if they are better than the pine trees collection agency for another State. to run an attack on the success of grown in Washington or some other Oregon is not asking anyone else to small businesses in the State of Oregon place. But we are dealing in many in- do that unless they have a State-to- and, for that matter, across this Na- stances here with identical goods—the State compact, which is exactly the tion? How about that? That is a fair Nike running shoes that you can buy at way this could have been done and proposal. Run a pilot project. Chris Koos’ sporting goods store in should have been done but hasn’t been If you love this idea so much, do it Normal, IL, or buy over the Internet done because the States couldn’t agree, among yourselves and demonstrate it with no sales tax. It is not a question even though they were sales tax and bring the report back to this of good quality versus bad quality; it is States. That tells us quite a lot. Chamber for further conversation. But a question of sales tax or no sales tax. They don’t like the idea of being sub- the idea of coercing my citizens of the So what the Oregonians have sug- gested to us is what they consider to be ject to bureaucrats or the potential for State of Oregon to do your work, with a perfect solution: Remove any require- legal action where they might have to enormous imposition and uncertainty, ment for their Internet retailers to col- travel to another State, and they don’t when they are trying to succeed as lect sales tax from anybody. Therefore, like the idea that there is absolutely small businesses—and when small busi- no compensation for the enormous im- there would be no Federal mandate. nesses are the power of creating jobs in Well, let me remind them, there is no position this bill places on the small this country—that is wrong. Federal tax in this bill. There is no new businesses of Oregon. That is quite a So for those who speak about the tax in this bill—State, local, or Fed- lot not to like. So, of course, it is 98 heavy hand of government, those who eral. All we are asking for is the basics. percent against this bill. speak about the power of small busi- I thought I would read one such let- If Oregonians want to sell in an adjoin- nesses, those who speak about bureauc- ing State such as California, they will ter: racy and imposition, then live your collect the sales tax owed to California Please do not support the Marketplace words in action and kill this vicious at- Fairness Act. It is not fair to businesses like and pay it back. tack on small businesses across this Then I listened to them describe how mine that other States could tax my Oregon- Nation. based company. The voters of Oregon have onerous this would be. Right now, Thank you, Mr. President. eBay, which is no friend of this bill, of- continually voted down sales taxes as a The ACTING PRESIDENT pro tem- method of collecting revenue within our fers a service available to businesses State. It should not be imposed on us by pore. The Senator from Illinois. that they can buy that will tell them other States. If these States have problems Mr. DURBIN. Mr. President, I under- the exact sales tax to be collected with their collection, they should figure it stand the passion of my colleagues based on your ZIP Code and address, out with the help of their local populace . . . from Oregon. Oregon is one of five and that service costs—listen to this My company is an Internet retailer and we States with no sales tax. I know they onerous cost—$15 a month. It is $15 a are able to compete and create jobs on a have voted down a sales tax by state- level playing field. month. If you want to go to the highest The dynamics of this fight will have con- wide referendum repeatedly, by mar- Cadillac version, it is $140 a month— sequences for mid-sized retailers like mine, gins of 2 to 1, I am told. So it is clear less than $2,000 a year. especially companies based in Oregon. Big they have a passionate feeling about no Incidentally, in our bill we require retailers are fighting to limit our ability to sales tax in Oregon. the States that are asking for the col- compete with them. Their goals are to have Here is the good news. The bill Sen- lection of sales tax to provide, free of local footprints and employees across the ator ENZI and I have introduced and charge, software to every Internet re- country in major metropolitan markets. want to pass in the Senate will not im- They should pay those local taxes and fees tailer so they can collect this without pose one penny of sales tax obligation any expense to their business. where they are a burden. Companies like on anyone living in Oregon. Whether mine, that have not chosen to be in that This is not onerous. It is not unfair. model, should not. they are purchasing over the counter It is just basic leveling of the playing Please continue to support the Internet’s or they are purchasing over the Inter- field. free market. Please protect Oregon business net—not one penny of sales tax liabil- I want to yield the floor to my friend and maybe even create some new opportuni- ity. Their States rights are protected. from Wyoming, my cosponsor of this ties. Their passion against sales tax is hon- measure. That is what we should be doing in ored. And the same is true in Alaska, The ACTING PRESIDENT pro tem- the U.S. Senate—creating new opportu- Montana, New Hampshire, and Dela- pore. The Senator from Wyoming. nities for Oregon small businesses to ware—all the other no-sales-tax States. Mr. ENZI. Mr. President, Senator succeed in this tough economy. That is But this is what it really gets down BROWN was here earlier, and I had what this business owner in Oregon be- to. This is not about the people in Or- wanted to be able to speak briefly. So lieves, and I will repeat that sentence egon paying a sales tax. It is about the if, when I finish my remarks, he is since the writer made that point: That businesses—the Internet businesses in here, I ask unanimous consent that he is what we should be doing in the U.S. Oregon that want to sell into other be recognized to speak.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00039 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2948 CONGRESSIONAL RECORD — SENATE April 24, 2013 The ACTING PRESIDENT pro tem- retailer is because they are sure it can Wyoming, for his good work on this pore. Without objection, it is so or- be done. legislation and for his always cour- dered. I was fascinated by the audits. If teous demeanor. Mr. ENZI. I want to talk about what they are using that computer program, Mr. President, I ask unanimous con- we have just heard here and an impli- how could they vary from what they sent to speak as in morning business cation that we are not champions of actually take in to actually sell? The for up to 8 minutes. small business. program takes it in, the program holds The ACTING PRESIDENT pro tem- I was in small business. I had it, and the program sends it out with pore. Without objection, it is so or- shoestores, retail shoestores, so that is the report. There is not a lot of room dered. why I know some of these problems. I for error. WORKING FAMILIES TAX RELIEF ACT know about the people coming in, try- Then they say they are going to be Mr. BROWN. Mr. President, this ing on the shoes, getting exactly what running around auditing those firms. week Senator DURBIN and I are intro- fits, having all of the service of looking They are going to audit the firm that ducing the Working Families Tax Re- through all of the styles and that sort looks as if it is shipping everything ev- lief Act with a majority of my Demo- of thing, and then leaving and making erywhere and not reporting at all. That cratic colleagues on the Senate Fi- a purchase on the Internet. is what accountants do. They figure nance Committee. Talking to other retailers now, that out the high risk. They are not going For a number of years, one area of bi- is not the biggest irritation. They buy to go in and look for pennies here and partisan agreement in Washington has it on the Internet, the product has a there. They go in and look for enough been on the need for comprehensive tax problem—and every product has the po- to at least cover the cost of the audit. reform. Tax reform can clear the Code tential of having some problem—and If you are not doing probably 10 or 20 of wasteful carve-outs and special in- they bring it back to the store where times the value of the audit, you are terest loopholes. they got the free service, where they not going to be hired to do many of Senator ENZI was part of a bipartisan did not buy the shoe, and they ask for them. meeting that the Finance Committee it to be replaced. I hope people can see So those that are complying, using is wont to do, sitting around a table the inequity in that. the program, they are not going to talking about these issues, just last But we are not talking about the have any problem. week. small business like the shoestore I had. But this exempts all the businesses We understand that comprehensive We are talking about small businesses that are doing less than $1 million on- tax reform can place American compa- that are selling online and are doing line in a given year. Until you do $1 nies on an even footing with foreign over $1 million a year in sales. I do not million online in a given year, you are competitors. It can reduce the deficit. think people would consider that to be exempt from it. It can provide a shot in the arm to eco- I would imagine that a lot of those a really small business—$1 million in nomic competitiveness and growth. On nurseries do not hit the million-dollar sales. If they are doing $1 million in that there is agreement. mark. They would like to hit the mil- sales, you can pretty much guarantee What comprehensive reform should lion-dollar mark, and I would like that they are automated. They are not do—and there is general agreement them to hit the million-dollar mark, automated in their manufacturing, on this also—is undermine the earned- and if they got to that million-dollar they are automated in their sales. That income tax credit and the child tax mark, I think they would be so over- means they have a computer. Not credit. These credits are the single joyed, they would say: I am auto- many businesses today function with- most effective incentive to increase mating on the computer. I will be out a computer. If they have a com- happy to do it because maybe I can sell low-income parents participating in puter, you would be amazed at some of $2 million worth of sales if that is the the workforce and reward work and the things those computers will do. case. promote family formation—all goals I go back to Wyoming almost every Now, comments on the streamlined which we, I believe, all seek. That is weekend, and I visit businesses. I visit sales tax. My State was one of the first why support for these programs in the businesses so they can tell me what ones to get into it. So was South Da- past has been broad-based and bipar- kinds of problems the Federal Govern- kota, so were Nebraska and another 20, tisan. ment is causing for them. I am amazed 21 States besides those. The comment President Reagan and former Rep- at the automation they have. I am was that you cannot streamline this. resentative Jack Kemp—the former amazed at what they are able to do. What kind of incentive has there been running mate of Senator Dole in a And most of it is because of computers. for them to streamline it more? The Presidential election—were champions Now we are saying—and I think com- purpose of the compact is to streamline of the modern earned-income tax cred- puters kind of started out on that it more, but at the moment they are it. When it was expanded in 1986, Presi- coast—that computers just do not have having to protect their sales within dent Reagan said it is ‘‘the best anti- the capability to do these kinds of their State to make sure they are not poverty, the best pro-family, the best things. To be able to figure a sales tax? losing the revenues they were already job creation measure to come out of All you have to have is a ZIP Code, and counting on. Congress.’’ He was right. it eliminates the 9,600 jurisdictions we They knew there was this little Su- In Ohio some 1 million households re- are talking about here. That computer preme Court case that is now 20 years ceived the EITC—the earned-income can figure that sales tax, and at the old that challenged us to fix it. That is tax credit—and 665,000 households re- end of the month, that same computer what we are trying to do here—fix it. If ceived the CTC—the child tax credit— will have kept track of all of this stuff, that fix goes in, I am betting that a lot on average in the 3 years of 2009, 2010, and it will do the reports that are nec- more States will join the streamlined and 2011. essary electronically. It can probably sales tax and it will streamline more That is why this week Senator DUR- do that with about five or six key taps, than what we envisioned. But even if BIN and I, along with most of our maybe less than that. I am sure they they do not, there are requirements in Democratic colleagues, are introducing could actually be set to send the report here that keep it uniform enough. And the Working Families Tax Relief Act. on the last day of the month at a spe- with the computers, we can show ex- Our bill would make permanent the cific hour. That is how computers amples of how people already do this 2009 levels for the earned-income tax work. sort of thing on the computer. That credit and the child tax credit. It would So an argument that this cannot be should take care of a lot of their prob- index the child tax credit for inflation. done—I do not think anybody will buy lems. It would allow workers without chil- that. And the States would not be will- I yield the floor under the previous dren to access the full earned-income ing to provide those programs free of order for Senator BROWN. tax credit. It would reduce the full charge and then put in the protections The ACTING PRESIDENT pro tem- earned-income tax credit access age to from liabilities and errors if they were pore. The Senator from Ohio. 21. It would simplify the filing process not sure they could do it. The reason Mr. BROWN. Mr. President, I thank to reduce fraud because there is some they put in those protections for the Senator ENZI, the senior Senator from acknowledged fraud in this program, as

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00040 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2949 there is throughout the tax system. very hopeful that Senator BAUCUS in 110TH CONGRESS (2007–2008) And I have pledged to many of my col- his last year and a half in the Senate, S. 34, Sales Tax Fairness and Simplifica- leagues on both sides of the aisle, as with Ranking Member HATCH and lead- tion Act, Senator Michael Enzi—introduced this bill moves forward, to work to re- ers from that committee such as Sen- 5/22/2007, Referred to: Senate Finance. Senate Commerce Committee hearing on duce that fraud. ator WYDEN and Senator ENZI and oth- The Recovery Act of 4 years ago ex- ‘‘Communications, Federalism, and Tax- ers, can reform the Tax Code, can put ation’’ where it was discussed—5/23/2007. panded access and refundability for measures in place to prevent fraud. 111TH CONGRESS (2009–2010) both the EITC and CTC. It was meant As we introduce the Working Fami- to respond to the great recession but lies Tax Relief Act, I remain hopeful No bill introduced. also to ensure the country’s finest our colleagues across the aisle will 112TH CONGRESS (2011–2012) antipoverty programs keep up with the work with us to make these credits a S. 1452, the Main Street Fairness Act, Sen- times. Making these credits permanent part of tax reform. ator Dick Durbin—introduced 7/29/2011, Re- at the current level is critical to fight- I yield the floor. ferred to: Senate Finance. S. 1832, the Marketplace Fairness Act, Sen- ing poverty. The ACTING PRESIDENT pro tem- In 2011, the EITC and CTC lifted 10 ator Michael Enzi—introduced 11/9/2011, Re- pore. The Senator from Tennessee. ferred to: Senate Finance. million people, including 5 million chil- Mr. ALEXANDER. Mr. President, I 11/30/2011—House Judiciary Committee dren, out of poverty. The EITC has have enjoyed the discussion on the hearing on ‘‘Constitutional Limitations on helped nearly half a million single Marketplace Fairness Act. It is nice to States’ Authority to Collect Sales Taxes in mothers enter the workforce. These have a good debate and I am looking E-Commerce.’’ credits do not just reward work, they forward to voting on amendments that 1/31/2012—Official letter signed by 12 bipar- provide lifelong benefits to children. are here. tisan Senators requesting Finance Com- We know from studies that it improves I wish to address two or three points mittee hearing on S. 1832. health outcomes, it increases earning 2/1/2012—Letter sent by 208 national, state that have been made during the debate. and local organizations and companies re- potential for children in low-income The first is about what we call here questing a hearing on S. 1832, the Market- families, because those families pulled regular order. What we mean by that is place Fairness Act. out of poverty can give advantages to that the bill was introduced, it goes to 4/25/2012—Senate Finance Committee hear- those children that pay off later in life a committee, and the committee re- ing on state and local tax issues, including S. they could not give to those children in ports it to the floor, and we bring it up 1832, the Marketplace Fairness Act. those families if their incomes were on the floor, and we have a debate and 7/11/2012—S. Amdt. 2495, the Marketplace below the poverty line. Fairness Act, filed to the Small Business then we vote on it. We want to see Jobs and Tax Relief Act. Expectant mothers who receive the more of that around here. EITC are more likely to receive pre- 7/25/2012—Official letter signed by 16 bipar- Well, the problem with this bill is tisan Senators requesting a Finance Com- natal care. These are not opinions; that the Finance Committee would not mittee markup on S. 1832, the Marketplace they are fact. Newborns are more like- act on it. Let’s be straightforward Fairness Act. ly to experience birth indicators, such about it. This bill has been around a 7/24/2012—House Judiciary Committee hear- as low weight and premature birth. Be- long time. The Finance Committee ing on H.R. 3189, the Marketplace Fairness hind all of these statistics are real peo- chairman is the only one who can Equity Act of 2011. 8/1/2012—Senate Commerce Committee ple, people whose lives and opportuni- schedule a hearing and cause it to be ties are improved because of these hearing on ‘‘Marketplace Fairness: Leveling acted on. He did not want to do that, the Playing Field for Small Business.’’ credits. despite the fact that we asked him to Let me share a story. Michelle Eddy, 11/29/2012—S. Amdt. 3223, the Marketplace do it. So as a result, the majority lead- Fairness Act, filed to the National Defense a Cleveland native, is a single mother er used a procedure that brings the bill Authorizations Act. Amendment was blocked who works hard to support her two from getting a vote. daughters. One is 9, the younger is 4. to the floor. To underscore that, let me ask unan- 113TH CONGRESS (2013–2014) This year the Neighborhood Housing imous consent to have printed in the S. 336, The Marketplace Fairness Act, Sen- Services of Greater Cleveland helped RECORD a timeline for the Marketplace ator Michael Enzi—introduced 2/14/2013, Re- Ms. Eddy prepare her tax return. She Fairness Act. It details the steps we ferred to: Senate Finance. was able to use the credits she received 2/14/2013—Official letter signed by 16 bipar- from Earned Income Tax Credit and have taken since 2001. There being no objection, the mate- tisan Senators requesting Finance Com- Child Tax Credit to pay for school sup- mittee hearing on S. 336, the Marketplace rial was ordered to be printed in the plies, uniforms, and daycare for her Fairness Act. RECORD, as follows: two daughters. 3/21/2013—S. Amdt. 578 (Enzi 2nd Degree S. She has worked in a retail store as a MARKETPLACE FAIRNESS TIMELINE Amdt. #656)—Deficit Neutral Reserve Fund shift manager for 5 years. She recently, 107TH CONGRESS (2001–2002) enabling Congress to pass the Marketplace though, started a new job as a res- S. 512, Internet Tax Moratorium and Eq- Fairness Act. Senate Record Vote #62—Enzi Amendment agreed to 75 to 24. taurant server so she can spend eve- uity Act, Senator Byron Dorgan—introduced nings and weekends with her daugh- 3/9/2001, Referred to: Senate Finance, Finance Mr. ALEXANDER. To summarize ters. Without EITC, without CTC, she Committee hearing—8/1/2001. some of these steps, this began in the S. 1542, Internet Tax Moratorium and Eq- 107th Congress in 2001. Now Senator would almost certainly have to work a uity Act, Senator Michael Enzi—introduced second job to make ends meet, leaving ENZI started even before that, I think, 10/11/2001, Referred to: Senate Commerce. with Senator Dorgan. They introduced her children at home without her far S. 1567, Internet Tax Moratorium and Eq- too often. The EITC and the CTC are uity Act, Senator Michael Enzi—introduced the Internet Tax Moratorium and Eq- not what make Michele Eddy a good 10/18/2001, Referred to: Senate Commerce. uity Act in 2000 and 2001. Then in 2003, mother, but they enable her to be there Senate Amdt. #2156 to H.R. 1552, Motion to the Streamlined Sales and Use Tax Act with her children when they need her table amendment was agreed to—57 to 43 on was introduced by Senator ENZI. That most. 11/15/2001. is 10 years ago. Right now, some 30 percent of chil- 108TH CONGRESS (2003–2004) Then again in 2005 and 2006 Senator dren under the age of 3 are in families S. 1736, Streamlined Sales and Use Tax ENZI and Senator Dorgan. Then again with too little earnings to qualify for Act, Senator Michael Enzi—introduced 10/15/ in 2007 and 2008, Senator ENZI. In the full CTC. Even worse, nearly 13 percent 2003, Referred to: Senate Finance. 111th Congress no bill was introduced. of children under 3 are in families with 109TH CONGRESS (2005–2006) But now we are getting to a little more no earnings, and as such get into CTC S. 2152, Sales Tax Fairness and Simplifica- recent history. Last Congress, 2011 and or EITC. We know the Child Tax Credit tion Act, Senator Michael Enzi—introduced 2012, Senator DURBIN introduced the is not indexed for inflation. By the end 12/20/2005, Referred to: Senate Finance. Main Street Fairness Act. Senator S. 2153, Streamlined Sales Tax Simplifica- ENZI joined him in that. It was referred of the decade another 1 million chil- tion Act, Senator Byron Dorgan—introduced dren will be forced to grow up in pov- 12/20/2005, Referred to: Senate Finance. to the Senate Finance Committee. erty. Senate Finance Subcommittee on Inter- So for all of that time, the Finance The CTC needs to be more robust. We national Trade hearing on sales tax fairness Committee has had an opportunity to need to reform the Tax Code now. I am and other state/local tax issues—7/25/2006. work on this legislation in the way

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00041 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2950 CONGRESSIONAL RECORD — SENATE April 24, 2013 they thought it should be. There were State taxation of the Internet. Senator Fairness Act of 2013 because it gives states hearings in the Senate Commerce Com- PRYOR of Arkansas sought to extend the right to decide what works best for their mittee in August of 2012 on essentially that ban for 10 more years today. The local governments, residents, and businesses. Given the fiscal constraints all levels of gov- the same 11-page bill that has been in- opponents of the bill objected even to a ernment are facing, we should allow states troduced here today and that we are vote on taxing the Internet. This is to enforce their own tax laws. acting on. very disappointing. That is the infor- The Finance Committee held a hearing There was a partial hearing in the mation about the timeline I wanted to last Congress titled, ‘‘Tax Reform: What It Senate Finance Committee during that put in. Means for State and Local Tax and Fiscal year. But that was all. Then, in this Here is some more information that I Policy,’’ on April 25, 2012, which highlighted year, in February, on Valentine’s Day, ask unanimous consent to have printed the growing demand to close this particular loophole. Two witnesses, Kim Rueben and Senator ENZI introduced the Market- in the RECORD at this point. Sanford Zinman, expressed the need for bet- place Fairness Act we are debating There being no objection, the mate- ter federal polices to allow the collection of here, this 11-page bill. There was a let- rial was ordered to be printed in the sales and use taxes from online sales. In fact, ter from 16 Senators, Republicans and RECORD, as follows: Dr. Rueben called passing legislation similar Democrats, asking the Finance Com- U.S. SENATE, to the Marketplace Fairness Act of 2013 a mittee to hold a hearing and to deal Washington, DC, February 14, 2013. ‘‘no-brainer.’’ We appreciate your willing- with it. But it has not. Hon. MAX BAUCUS, ness to address this issue and would request I respect the decision of the chair- Chairman, Committee on Finance, Dirksen Sen- an additional forum to further discuss the man to be opposed to the bill and not ate Office Building, Washington, DC. impacts of this legislation on the U.S. econ- Hon. ORRIN HATCH, omy. to hold a hearing and not to report the Ranking Member, Committee on Finance, Dirk- The Finance Committee is in the best posi- bill to the floor. But if he does that, sen Senate Office Building, Washington, tion to address the collection of sales and then I would suggest he should respect DC. use taxes on remote sales. We urge the Com- the right of the majority leader to DEAR CHAIRMAN BAUCUS AND RANKING MEM- mittee to hold a markup on the Marketplace bring the bill to the floor and allow the BER HATCH: We urge the Finance Committee Fairness Act of 2013 at the earliest date pos- Senate to debate it. to markup the Marketplace Fairness Act of sible. Thank you, in advance, for your con- As far as the regular order goes, a 2013 at the earliest date possible. This bipar- sideration of this request. Sincerely, week should be long enough to consider tisan legislation would allow States to col- lect the sales and use taxes on remote sales Senator Michael B. Enzi; Senator Dick this bill, which has been in one form or that are already owed under State law. Durbin; Senator Lamar Alexander; another around since 2001. We could Since the 1992 Supreme Court decision, Senator Heidi Heitkamp; Senator John have begun debating amendments on Quill Corporation v. North Dakota, States Boozman; Senator Tim Johnson; Sen- Monday. That is when the bill came to have been unable to collect the sales and use ator Roy Blunt; Senator Jack Reed; the floor. But the opponents filibus- taxes owed on sales by out-of-state catalog Senator Bob Corker; Senator Sheldon tered it. This was not a Republican or and online sellers. Congress has been debat- Whitehouse; Senator Amy Klobucher; a Democratic filibuster, it was both ing solutions to assist States for more than Senator Al Franken; Senator Ben a decade, and some States have been forced Cardin; Senator Dianne Feinstein; Sen- sides, from opponents. And what that to take action on their own, leading to ator Mary Landrieu; Senator Joe deprived us of was an opportunity to greater confusion and further distorting the Manchin. vote and debate amendments on Mon- marketplace. day and Tuesday. Today, 18 bipartisan Senators introduced U.S. SENATE, Then we had another vote. So we the Marketplace Fairness Act of 2013, which Washington, DC., January 31, 2012. have now had three votes, one during would give States the right to decide for Hon. MAX BAUCUS, the budget session, one on cloture on themselves whether to collect—or not to col- Chairman, Committee on Finance, Dirksen Sen- the motion to proceed, and then one on lect—sales and use taxes on all remote sales. ate Office Building, Washington, DC. Congressional action is necessary because the motion to proceed itself. We have Hon. ORRIN HATCH, the ruling stated that the thousands of dif- Ranking Member, Committee on Finance, Dirk- gotten 74, 75 votes each time. It is a ferent state and local sales tax rules are too sen Senate Office Building, Washington, majority of the Democratic Senators, complicated and onerous to require busi- DC. it is a majority of the Republican Sen- nesses to collect sales taxes unless they have DEAR CHAIRMAN BAUCUS AND RANKING MEM- ators. This does not happen all the a physical presence (store, warehouse, etc.) BER HATCH. We urge the Finance Committee time, that we have such strong majori- in the state. to hold a hearing on The Marketplace Fair- ties on each side of the aisle, saying in Today, if an out-of-state retailer refuses to ness Act (S. 1832), bipartisan legislation to three successive votes of 74 and 75 collect sales and use taxes, the burden is on allow States to collect sales and use taxes on the consumer to report the tax on an annual remote sales that are already owed under votes: We favor an important piece of income tax return or a separate state tax State law. For the past 20 years, States have legislation. form. However, most consumers are unaware been prohibited from enforcing their own I would hope the better course would of this legal requirement and very few com- sales and use tax laws on sales by out-of- be to come to some agreement that we ply with the law. Across the country, states state, catalog and online sellers due to the can take the amendments we have here and local governments are losing billions in 1992 Supreme Court decision Quill Corpora- from Democrats and from Republicans, tax revenue that is legally owed. On average, tion v. North Dakota. Congress has been de- bring them up, table them, vote on States depend on sales and use taxes for 20 bating solutions for more than a decade, and them, debate them, and act on this and percent of their annual revenue. According some States have been forced to take action to the National Conference of State Legisla- on their own leading to greater confusion bring this to a conclusion this week. tures, this sales tax loophole will cost states and further distorting the marketplace. Then there is substantial support in and local governments over $23 billion in On November 9, 2011, five Democrats and the House of Representatives for this. avoided taxes this year alone. At a time five Republicans introduced The Market- The bill could then go to the House. when State budgets are under increasing place Fairness Act, which would give states The House could do whatever the pressure, Congress should give States the the right to decide for themselves whether to House wishes. There could be a con- ability to ensure compliance with their own collect—or not to collect—sales and use ference and we could get a result. laws. taxes on all remote sales. Congressional ac- Every attempt has been made by the The Quill decision also put millions of tion is necessary because the ruling stated local retailers at a competitive disadvantage that the thousands of different state and sponsors of this legislation since 2001 by exempting remote retailers from tax col- local sales tax rules were too complicated to bring this through the regular order, lection responsibility. The ‘‘physical pres- and onerous to require businesses to collect which means take it through the com- ence’’ standard means that local retailers in sales taxes unless they have a physical pres- mittee. The opponents of the idea have our communities are required to collect ence in the state. chosen first in the Finance Committee sales taxes, while online and catalog retail- Today, if an out-of-state retailer refuses to to not allow there to be a markup of ers selling in the same state are not required collect sales and use taxes, the burden is on the bill, and then on the floor to not to collect any of these taxes. In effect, this the consumer to report the tax on an annual tax loophole subsidizes some taxpayers at income tax return or a separate state tax allow us to debate amendments. form. However, most consumers are unaware For example, some people say this the expense of others and some businesses over others. of this legal requirement and very few com- legislation taxes the Internet. Of State and local governments, retailers, and ply with the law. Consumers can be audited course, that is 100 percent wrong, be- taxation experts from across the country are and charged with penalties for failing to pay cause there is a Federal law banning urging Congress to pass the Marketplace sales and use taxes.

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00042 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2951 Across the country, states and local gov- Governors Association urging Senators NATIONAL GOVERNORS ernments are losing billions in tax revenue REID and MCCONNELL to pass this legis- ASSOCIATION, already owed. On average, States depend on lation. I ask unanimous consent that it Washington, DC, April 22, 2013. sales and use taxes for 20% of their annual Hon. HARRY REID, be printed in the RECORD. revenue. According to the National Con- Majority Leader, U.S. Senate, ference of State Legislatures, this sales tax There being no objection, the mate- Washington, DC. loophole will cost states and local govern- rial was ordered to be printed in the Hon. MITCH MCCONNELL ments $23 billion in avoided taxes this year RECORD, as follows: Majority Leader, U.S. Senate, alone. At a time when State budgets are Washington, DC. NATIONAL GOVERNORS under increasing pressure, Congress should DEAR SENATOR REID AND SENATOR MCCON- ASSOCIATION, give States the ability to enforce their own NELL: On behalf of the National Governors Washington, DC, December 11, 2012. laws. Association (NGA), we urge the Senate to Hon. MAX BAUCUS, The Quill decision also put millions of pass S. 743, known as the Marketplace Fair- Chairman, Committee on Finance, U.S. Senate, local retailers at a competitive disadvantage ness Act (MFA), as soon as possible. Washington, DC. by exempting remote retailers from tax col- Just last month, during Senate consider- Hon. ORRIN HATCH, lection responsibility. Local retailers in our ation of its FY14 budget resolution, the Sen- Ranking Member, Committee on Finance, U.S. communities are required to collect sales ate voted 75–24, in support of the MFA. This Senate, Washington, DC. taxes, while online and catalog retailers sell- overwhelming, bipartisan vote stands in ing in the same state are not required to col- DEAR CHAIRMAN BAUCUS AND SENATOR stark contrast to those who oppose this com- lect any of these taxes. This creates a tax HATCH: Never before has the need for legisla- mon-sense legislation. loophole that subsidizes some taxpayers at tion to grant states the authority to collect Never before has the need for legislation to the expense of others and some businesses sales taxes on remote sales been greater. The grant states the authority to collect sales over others. continued disparity between online retailers taxes on remote sales been greater. The con- State and local governments, retailers, and and Main Street businesses is shuttering tinued disparity between online retailers and taxation experts from across the country are stores and undermining state budgets. Con- Main Street businesses is shuttering stores urging Congress to pass The Marketplace gress has the opportunity to level the play- and undermining state budgets. The Senate Fairness Act because it gives states the right ing field for all retailers this year by passing has the opportunity now to level the playing to decide what works best for their local gov- S. 1832, the ‘‘Marketplace Fairness Act.’’ field with 21st Century rules for all retailers. ernments, residents, and businesses. Given Years ago, the Supreme Court ruled that Opponents call this legislation a new tax. our fiscal constraints, we should allow states state sales tax laws were too complex to re- Of course, this is not a new tax, nor is it a to enforce their own tax laws and make sure quire out-of-state sellers to collect sales tax on the Internet or on business. It is that state and local governments and busi- taxes on catalog sales. As a result, states are merely a means of collecting taxes owed on nesses are not left behind in tax reform dis- unable to collect more than $23 billion in the sale of goods and services over the Inter- cussions. The House Judiciary Committee’s sales taxes owed annually from remote sales net. hearing on this single issue on November 30, made through catalogs over the Internet. It From the viewpoint of the states, if a com- 2011, demonstrated the growing demand to also creates an artificial price disparity be- pany is doing business, selling goods and so- close this loophole, and your committee tween goods bought from the corner store liciting customers in their state, that com- would provide the best public forum for an and those bought online. It is in essence an pany should have to play by that state’s open debate in the Senate on the merits of unwarranted yet growing subsidy to Internet rules. If a state has a sales tax on specific this important policy issue. sellers at the expense of brick and mortar goods, then everybody selling those goods The Finance Committee is in the best posi- stores. there should have to collect and remit it. tion to shape the discussion on state and This philosophy is not only fair, it also pro- Failure to act now will only exacerbate local taxation this year, particularly on motes competition, which is good for con- state losses and harm local businesses that sales and use taxes on remote sales. We urge sumers, good for tax equity, and good for are losing sales to online sellers. According the Committee to hold a hearing on the im- business by leveling the playing field and to a leading Internet analytics firm, 2012 hol- plications of The Marketplace Fairness Act creating certainty—all accomplished with- iday online sales are up 14 percent from last at the earliest date possible. Thank you in out affecting the federal budget. year. (Wall Street Journal, Real-Time Eco- advance for your consideration of this re- NGA urges the Senate to take decisive bi- nomics, Dec. 5, 2012.) Cyber Monday was the quest. partisan action and pass S. 743. heaviest online spending day on record at Sincerely, Sincerely, $1.47 billion. The firm attributes the growth Michael B. Enzi, Lamar Alexander; John GOVERNOR TOM CORBETT, to broad strength in the e-commerce sector Boozman; Roy Blunt; Bob Corker; Jeff Chair, Economic De- and the fact that more than half of those Bingaman; Richard Durbin; Tim John- velopment and Com- who use the Internet have already made an son; Jack Reed; Sheldon Whitehouse; merce Committee. online purchase this holiday season. Mark Pryor; Ben Cardin. GOVERNOR STEVEN Mr. ALEXANDER. These are letters The Marketplace Fairness Act restores BESHEAR, from Senators to the leaders of the Fi- fairness by providing states the authority to Vice Chair, Economic collect if they are willing to simplify their nance Committee. The first letter is Development and tax systems to make it easier to do business. Commerce Com- dated January 31, 2012, last year, at the It also provides protection to truly small mittee. beginning of the year. It was from five businesses in your state through a small Mr. ALEXANDER. Now, finally, I ask Democrats and five Republicans who business exception. This common sense ap- introduced the Marketplace Fairness proach will allow states to collect taxes they unanimous consent to have printed in Act. It asks for a hearing, asks for the are owed, help businesses comply with dif- the RECORD the names of the Governors committee to act. That is the first let- ferent state laws, and provide fair competi- and former Governors who support this ter. tion between retailers that will benefit con- legislation. sumers and protect jobs. Furthermore, pas- There being no objection, the mate- The next letter came this year, on sage of the bill will serve as the equivalent of February 14, from 16 Senators, both rial was ordered to be printed in the a $23 billion stimulus to state and local gov- RECORD, as follows: parties, to the Finance Committee, ernments helping to speed recovery and grow asking the Finance Committee to act the economy. Robert Bentley, R-Alabama; Bob McDon- nell, –R-Virginia; Chris Christie, R-New Jer- on the Marketplace Fairness Act. Best of all, the Marketplace Fairness Act Then there is a letter to the leaders sey; Nikki Haley, R-South Carolina; Brain will accomplish these goals without raising Sandoval, R-Nevada; Terry Branstad, R- of the Finance Committee from the Na- taxes or increasing the federal debt. Iowa; Dennis Daugaard, R-South Dakota; tional Governors Association, signed We understand that you would prefer to Paul LePage, R-Maine; Tom Corbett, R- by the Democratic Governor of Wash- take up the Marketplace Fairness Act next Pennsylvania; Mike Pence, R-Indiana; Bill ington and the Republican Governor of year in the context of wide-ranging, com- Haslam, R-Tennessee; Rick Snyder, R-Michi- Tennessee, asking the Finance Com- prehensive tax reform. Frankly, our Main gan; C.L. ‘‘Butch’’ Otter, R-Idaho; Jan Brew- mittee, on behalf of the States, to con- Street businesses and states cannot afford to er, R-Arizona; Bobby Jindal, R-Louisiana; sider this legislation and act on it. The wait. This is our best chance to pass this im- Rick Scott, R-Florida; Nathan Deal, R-Geor- Finance Committee elected not to do portant legislation and we urge your support gia. for enacting S. 1832 this year. Lincoln Chafee, I-Rhode Island. that. Sincerely, Steven Beshear, D-Kentucky; Neil This information will be part of the GOVERNOR CHRIS GREGOIRE, Ambercrombie, D-Hawaii; Mike Bebee, D-Ar- RECORD. Washington. kansas; Jerry Brown, D-California; Mark Finally, there is also a letter dated GOVERNOR BILL HASLAM, Dayton, D-Minnesota; John Hickenlooper, D- April 22 of this year from the National Tennessee. Colorado; Martin O’Malley, D-Maryland;

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00043 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2952 CONGRESSIONAL RECORD — SENATE April 24, 2013 Dannell Malloy, D-Connecticut; Jay Nixon, right-to-work law, but I am not going the Speaker of the House, and the Re- D-Missouri; Deval Patrick, D-Massachusetts; to impose that from Washington. publican legislature a lot more than I Patt Quinn, D-Illinois; Earl Ray Tomblin, D- States have the right to be right, do the Senate and Congress to make West Virginia. States have the right to be wrong, and decisions about tax dollars. FORMER GOVERNORS– Washington has no business telling I think I know pretty well what they Mitch Daniles, R-Indiana; Jeb Bush, R- sovereign States what its tax structure will do if they have power to do it. I Florida; Christine Gregoire, D-Washington. ought to be. Washington certainly has suspect they will say they are not Mr. ALEXANDER. I do that with a no business standing in the way of going to pick and choose winners and little bit of obvious bias as a former States stopping discrimination against losers. I know they are going to say Governor. I think it is important that taxpayers and businesses because that that because the Governor and Lieu- the country know what the Governors is exactly what we are doing if we don’t tenant Governor told me. I expect what think, because the legislation we are act. they will say is this will bring in more talking about today is a States rights We are perpetuating discrimination. revenue so we will lower our tax rate bill. It is an 11-page bill. It is a very Most conservatives I know don’t like because we will start collecting money simple, straightforward bill. It simply picking and choosing between winners from all the people who owe it instead says that Tennessee, Alabama, Vir- and losers. of some of the people who owe it. ginia, New Jersey, any State, has the They don’t like treating one tax- It is correct that some Governors right to decide for itself whether it payer one way and one in a similar sit- have already said that. We were told wants to collect taxes that are already uation another way, one business one today that in Ohio they have already owed from some of the people who owe way and another one another way. said if this bill passes, they will collect the taxes or all of the people who owe That is exactly what we are doing if we money from everybody who owes it and the taxes. That is it. That is it. That is don’t act. then they will lower their income all it does. We are discriminating against the taxes. The Governors who supported it are shoestore in Wyoming, against the Art Laffer said in his column in the the Governor of Alabama, Virginia, boot store in Nashville, and against the Wall Street Journal: That is precisely New Jersey, South Carolina, Nevada, small store in Maryville, TN. We are what we ought to do to stimulate Iowa, South Dakota, Maine, Pennsyl- saying collect the tax when you sell growth. He said: If we are going to have vania, Indiana, Tennessee, Michigan, something, but if your competitor from a tax, the best tax, said Mr. Laffer, is Governor Otter of Idaho, Arizona, Lou- outside your State sells it, he or she a tax that covers the largest number of isiana, Florida, Georgia, Rhode Island, does not have to. That is discrimina- people at the lowest possible rate. Kentucky, Hawaii. tion. If that is the case, what we are per- I just read a bunch of Republican That is why the leading conserv- petuating within action is the worst Governors. Now I am into the Demo- atives such as the chairman of the kind of tax, which is the tax that crats: Kentucky, Hawaii, Arkansas, American Conservative Union, William States are allowed to tax a smaller California, Minnesota, Colorado, Mary- Buckley, before he died; and Art Laffer, range of people at a higher rate. This land, Connecticut, Missouri, Massachu- the economist who helped President permits them to tax all the people who setts, Illinois and West Virginia. The Reagan develop his ideas; and the Gov- are in a similarly situated place at a former Governors include Mitch Dan- ernors such as Mitch Daniels, Jeb lower rate, if that is what they choose iels, Jeb Bush, and the former Demo- Bush, Chris Christie, and Bill Haslam, to do. cratic Governor of Washington. that is why these conservatives say The arrogance of those in Wash- Here we have a bill on the floor that they support the bill. ington who would say they don’t trust we have voted on three times already We are not even deciding whether the States to make those decisions, that has a majority of the Democratic States will collect taxes from out-of- they need to go back to seventh grade, Senators and a majority of the Repub- State sellers. We are just saying States read the U.S. Constitution and learn a lican Senators, and 75 votes three have the right to do it. Of course they little American history about where times—74 one time, 75 twice. The bill have the right to do it. this country came from. also has the support of a long list of That is why I am including this list I am very proud of this Senate for, on Republican Governors—actually more of Governors. I think it is part of our this important issue led by Senator Republican than Democratic Gov- job as Senators to respect the sov- DURBIN and Senator ENZI, coming up ernors. Yet we have got some people in ereign States from where we come, to with 75 and 74 votes 3 consecutive Washington who say, we do not trust respect the rights of the States to not times to say we believe in a two-word the States to make these decisions. I think that just because we are in principle on this 11-page bill, States wonder if these people have ever read Washington we know better. Most Ten- rights or 10th Amendment, that we will the Constitution of the United States? nesseans don’t like that. recognize the power of States to make I wonder if they know what the 10th I know when I was Governor nothing their own decisions. Amendment says? This was a very im- used to make me madder than a bunch If we don’t act, all these claims about portant part of the creation of this of legislators coming up with some what happened to the 9,600 jurisdic- country. bright idea in Washington, passing it, tions will come true. Some Governor— Sovereign States had reserved to turning it into a law, holding a press I know I would do it if I were still them their powers. They didn’t expect conference, taking the credit for it, and there—the Senate didn’t act on this, to come to Washington and play then sending the bill to me. The next the Congress didn’t act, I would go ‘‘Mother May I’’ to a bunch of Senators thing you know they would be home right back to the Supreme Court. I and Congressmen who fly here on air- making a speech at the Lincoln Day would bet that 20 years after the Quill planes and think they are smarter than Dinner or Jefferson Day Dinner, if they case that Senator HEITKAMP brought, they were when they left Nashville, were a Democrat, about local control. back before there was an Internet, Memphis or wherever their hometown Well, it is about local control. when the Court then said that requir- is. The purpose of this bill is to leave The idea that people in Washington ing out-of-State sellers to collect the within the States the responsibility for would say we don’t trust the States to tax was burdensome, they would look making decisions. make decisions about how to spend at the Internet. Some people up here think they money, look at our record. We are run- Those Justices know they can find know best. Maybe they do, maybe they ning up trillion-dollar deficits every out the weather in their hometowns by don’t. Tennessee doesn’t have an in- year, borrowing 26 cents out of every $1 putting in the ZIP Code and putting in come tax. I would like for every State we spend. the name of the town. They know that not to have an income tax, but I am I come from a State that has no an out-of-State seller could figure out not going to impose that from Wash- State debt on roads. It has to balance the sales tax from the ZIP Code of the ington just because I am a Senator. the budget every year. It has a AAA buyer. They know that. Tennessee has a right-to-work law. I bond rating. I would trust Governor I will predict that they would hold it would like for every State to have a Haslam, Lieutenant Governor Ramsey, is not an undue burden, and then all

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00044 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2953 the out-of-State sellers really would lution has caused the global pH of the prevent economic losses and job losses have 9,600 jurisdictions to deal with. upper ocean to increase nearly 30 per- due to degraded shores and degraded We are simplifying, and we are creating cent—by some measures nearly 40 per- waters. something that will work. We are fol- cent—since preindustrial times. Our coasts need immediate attention, lowing a process that is well tried. In Rhode Island, the Ocean State, so the plan could not come too soon. It There are a great many out-of-State coastal activities define our heritage, states: catalog sellers and online sellers that our culture, and also our economy. Our Our nation lost nearly 60,000 acres of coast- today do exactly what the instate sell- coastal waters are spawning grounds, al wetlands each year between 1998 and 2004. ers do. They collect the sales tax. They nurseries and shelters for fish and . . . Habitats are being altered by invasive do it through the ZIP Code over the shellfish, which we enjoy and from species that threaten native aquatic life and Internet. We are saying everybody which we profit. Our shores and coastal cost billions of dollars per year in natural and infrastructure damage. should do that except those who sell ponds are barriers that protect our less than $1 million a year. They don’t coastal communities from ocean The implementation process the ad- have to do anything under this law. storms and that naturally improve ministration is pursuing is all about According to many economists, that water quality. Our oceans and coasts local needs and concerns. So the Na- takes 99 percent of the online sellers make coastal States such as ours who tional Ocean Policy establishes vol- out of the effect of this bill. We have we are. untary regional planning bodies. Local tried to bring this through regular We will continue to take advantage people can get together, layer together order. We are down here trying right of the ocean’s bounty, as we should. We the relevant data, and promote greater now. We have received substantial sup- will trade, we will fish, and we will and more responsible use of their re- port. There have been hearings. There sail. We will dispose of waste, we will gion’s ocean resources. has been a lot of work in the House, extract fuel and harness the wind. We In New England, we have seen the and there is broad support from the will work our oceans. Navies and cruise value of this cooperative ocean plan- Governors. I am hopeful we will move ships, sailboats and supertankers will ning. Rhode Island’s Ocean Special forward tomorrow, finish this legisla- plow their surface. We cannot undo Area Management Plan—a special area tion, send it to the House, and take a this part of our relationship with the management plan is called a SAMP in step toward recognizing the Constitu- sea. What we can change is what we do the trade—has made ecosystem res- tional framework of our country by in return. If we use our best science toration and industry interests ad- honoring the sovereign States rights to and judgment to plan for the uses of vance simultaneously. I recently spent make decisions for themselves and our oceans, we will continue to reap time at the Northeast Regional Plan- stopping this attitude of requiring Gov- the value they provide. ning Body meeting in Rhode Island and ernors and legislators to come to Wash- Carbon-driven changes to our planet I know our region is excited to move ington and play ‘‘Mother May I’’ with will continue and will accelerate. The forward with a regional process. responsibilities that ought to be clear- faster you are driving, the better your So let’s look at some of the practical ly the responsibility of States. headlights need to be. Our headlights results when you get the information I yield the floor and note the absence in this area are scientific research and and the affected people in the room to- of a quorum. planning. As we move ever faster into gether. In Rhode Island, the wind en- The ACTING PRESIDENT pro tem- this uncharted territory, our head- ergy industry, with its vast potential pore. The clerk will call the roll. lights had better be working to pre- for manufacturing and maintenance The bill clerk proceeded to call the serve the valuable ecosystems upon jobs, is rapidly developing wind farms roll. which our communities and economies off of our coasts. Thanks to the Mr. WHITEHOUSE. Mr. President, I rely. groundwork that was laid by the Rhode ask unanimous consent that the order The National Ocean Policy, signed by Island SAMP, wind developers moved for the quorum call be rescinded. President Obama in 2010, provides a fairly smoothly through the regulatory The ACTING PRESIDENT pro tem- commonsense framework for sensible thicket and they have avoided inter- pore. Without objection, it is so or- research and planning and public-pri- ference with marine highways, critical dered. vate cooperation, as we face the sig- fisheries, habitats, and naval training Mr. WHITEHOUSE. Mr. President, I nificant challenges bearing down on ranges. don’t think it will take this long, but I our oceans and coasts—on both our There is actually quite a good report ask unanimous consent to speak as in ecosystems and our industries. I commend to all my colleagues on the morning business for up to 15 minutes. Last week, the White House released ocean SAMP published by the Rhode The ACTING PRESIDENT pro tem- the National Ocean Policy Implemen- Island Ocean Special Area Management pore. Without objection, it is so or- tation Plan, a blueprint for effective Plan. It is a practitioner’s guide, and it dered. management of our oceans and the is a very effective document that shows CLIMATE CHANGE Great Lakes. It is not easy to balance how well this worked. Mr. WHITEHOUSE. Mr. President, I the competing needs of commerce, con- In this process, local people were lis- come to the floor again to address cli- servation, culture, and recreation. tened to and they were heard. When mate change, particularly today the More than 20 Federal agencies oversee the Federal Bureau of Ocean Energy change that carbon pollution is wreak- our marine industries, governing ev- Management announced this wind en- ing in our oceans. erything from fisheries to oil and gas ergy area here off of the Rhode Island Water temperatures are increasing, leasing. The implementation plan coast, there was an area named Coxes sea level is rising, ocean water is grow- takes this on and moves us toward bet- Ledge, and the fishermen were con- ing more acidic, and powerful storms ter and more collaborative manage- cerned. The floor of the ocean at Coxes are becoming more frequent and more ment of ocean resources. Ledge made it particularly rich fishing intense. It is time to wake up to the The implementation plan gathered grounds and they didn’t want it inter- threat to our oceans and coasts posed the thoughts of a wide range of key fered with by having that area put up by carbon pollution. stakeholders: maritime and energy in- for wind farm development. Sure The rate at which carbon is now dustries, conservation and recreation enough, when the map came out, the being dumped into the atmosphere and interests, academic experts, and Fed- curve of Coxes Ledge is going right absorbed by our oceans is unprece- eral, State, local, and tribal govern- through the middle of the wind farm dented. NOAA estimates almost 1 mil- ments. The plan supports economic area, protected for the fishermen. They lion tons of the carbon dioxide we growth by streamlining permitting and were listened to and they were heard. dump into the atmosphere is absorbed approval processes, by improving map- So much of this is simple common into the oceans every hour—1 million ping and ocean observing, and by pro- sense. In Massachusetts, the endan- tons every hour. We know with sci- viding greater access to data and infor- gered North Atlantic right whale, a entific certainty that carbon pollution mation. The plan lays out specific ac- population of about 450 of them, feeds causes the ocean to become more acid- tions and timelines to protect and re- in the waters just off of Boston. The ic. Indeed, we measure that carbon pol- store coastal wetlands and reefs and to whale strikes between shipping and the

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00045 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE S2954 CONGRESSIONAL RECORD — SENATE April 24, 2013 right whales were becoming a problem. tion, helped develop the Rhode Island Social Security—one of the funda- And because the right whale is endan- Ocean Special Area Management Plan, mental pillars of the American middle gered, it was becoming a real risk for SAMP, said this: class—has not contributed and will not shipping going in and out of Boston The National Ocean Policy Implementa- contribute to our deficits. Social Secu- Harbor. So they found data that tion Plan will enable regions like New Eng- rity is fully funded by its participants showed where the whale strikes were land to move ahead with this smart ocean through payroll taxes and cannot by likely to be and they mapped that planning by engaging people like me, who law add to the deficit. data. When they mapped the data, they live and work on the water every day, while Under current payroll tax levels, So- saw if they moved the shipping channel not forcing planning on other regions that do cial Security will have the funds to pay not currently want to engage in the process. out of Boston Harbor up a little bit 100 percent of benefits until 2033. It is they could come through an area that Climate change is upon us, and its ef- true we do need to make some adjust- was largely safe from whale strikes. fects will only accelerate as we con- ments to ensure that full benefits can The cost to the industry was some- tinue to spew megatons of carbon into be paid beyond that date, but that task where between 9 and 22 minutes of our atmosphere. Changes are occurring has nothing to do with deficit reduc- extra transit time—virtually nothing— fast in the oceans. That fact makes it tion. Even if Congress did nothing be- while the number of whale strikes has all the more important that Congress fore 2033, the projected shortfall would dropped significantly. remain vigilant and that we put our force automatic benefit cuts, not def- Here is another example from outside full support behind the commonsense icit spending. of Delaware. The green sort of neon- framework of the national ocean pol- I do look forward to working with colored dots here track the signals icy. Senators of both parties to ensure that coming off cargo ships going in and out I yield the floor and I suggest the ab- Social Security remains fully solvent of Delaware Bay. As you can see, there sence of a quorum. for generations to come, but that dis- is a pretty solid track coming out of The ACTING PRESIDENT pro tem- cussion does not belong in the unre- Delaware Bay right through here. pore. The clerk will call the roll. lated debate on our Nation’s budget When Delaware first proposed its wind The bill clerk proceeded to call the deficits. energy areas, they proposed these light roll. The Social Security cuts the Presi- green blocks as wind energy areas. This Mr. WHITEHOUSE. Mr. President, I dent has proposed are not just in the one, as we can see here, was planned ask unanimous consent that the order wrong discussion, they are wrong right on top of the main shipping chan- for the quorum call be rescinded. themselves. To reflect inflation, Social nel heading southeast out of Delaware The ACTING PRESIDENT pro tem- Security recipients each year get cost- Bay. pore. Without objection, it is so or- of-living adjustments, what we call Critics say these kinds of efforts to dered. COLAs. The President’s proposal get the data and the people in the room PROTECTING SOCIAL SECURITY changes the formula used to make that together ‘‘zone’’ the ocean. That is just Mr. WHITEHOUSE. Mr. President, determination, shifting to something plain factually wrong. The policy last month, the Senate approved a called the chained Consumer Price brings together people who use our budget that included a blueprint for Index or chained CPI. It sounds innoc- ocean. In this case, the case of Dela- balanced and responsible deficit reduc- uous, but make no mistake, it is a ben- ware Bay, simply putting everybody in tion. That budget was skillfully man- efit cut cloaked in technical jargon. the room allowed the wind energy aged by our Budget Committee chair- The argument for a chained CPI is areas to be modified to avoid the con- man, Senator MURRAY. It would com- that it is a more accurate measure of flict. So the southeastern area comes plete the deficit reduction needed to inflation—that it takes into account out and the turbine areas are beside it stabilize our Nation’s finances with a real-world decisions consumers make and the problem has been solved. That mix of smart spending cuts and rev- to modify their buying habits as prices is not zoning, that is what military of- enue from closing wasteful tax loop- fluctuate. As the price of apples goes ficers would call situational awareness; holes. Top economists agree we need up, we buy more bananas, so the over- what the military would call about $4 trillion of deficit reduction to all effect on our budget is moderated. deconfliction. What it really is is com- make our finances sustainable, and our The result is lower annual cost-of-liv- mon sense. budget gets us there. Together with the ing adjustments—about 0.3 percent each year. But let’s take a look at how As Nancy Sutley, the Chair of the deficit reduction enacted last Congress, seniors fare under the existing COLA White House Council on Environmental the Senate budget would reduce the Quality, said: structure. deficit by $4.3 trillion through a nearly In 2010 and 2011, seniors received no With increasing demands on our ocean, we 2-to-1 mix of spending cuts and rev- must improve how we work together, share cost-of-living adjustment whatsoever— enue. information, and plan smartly to grow our 0.0 percent in 2010, 0.0 percent in 2011. economy, keep our ocean healthy and enjoy House Republicans took a very dif- But according to the existing consumer the highest benefits from our ocean re- ferent approach with their budget, price formula used by government ac- sources, now and in the future. making only cuts—drastic cuts—to countants, prices didn’t rise enough to Our ocean and coastal economy is education, law enforcement, medical justify COLAs. That is what the COLA important. Shoreline counties in this research, and even ending Medicare as formula says. But in real life, what did country generate 41 percent of our we know it for future retirees. The it look like? gross domestic product. In 2010, 2.8 mil- House budget derives its deficit reduc- According to the Bureau of Labor lion jobs were supported by maritime tion from cuts that primarily hurt low- Statistics, seniors saw food prices rise economic activities; commercial ports income and middle-class Americans, 1.5 percent in 2010, medical costs in- supported 13 million jobs; energy and while refusing to touch a single tax crease 3.3 percent, and they saw their minerals production supported almost giveaway to wealthy and well-con- gas and home heating oil go up by three-fourths of a million jobs. But all nected special interests. Senate Demo- more than 13 percent each, and the of this activity creates opportunities crats took a middle course; House Re- COLA covered zero percent. for conflict. publicans produced an extremist tea The next year, 2011, these costs in- The National Ocean Policy Imple- party wish list. creased again. Food prices jumped 4.5 mentation Plan is a blueprint to re- In his own budget plan, President percent, medical care jumped 3.5 per- solve those wasteful conflicts, to Obama included some smart provisions cent, gasoline jumped 9.9 percent, and ‘‘deconflict’’ intelligently, and to such as investments in infrastructure fuel oil jumped 14.3 percent, and again streamline efforts across the Federal and the Buffett rule for tax fairness. I the COLA for seniors was zero. Government to keep our oceans and respect the President’s outreach to a So 2010 and 2011 add together; they our ocean economy thriving. And it compromise with Republicans, but I are not included in one another. So lets each region go forward at its own cannot support the cuts to Social Secu- food and beverage is a total of 6 per- pace. rity benefits in his plan. It is simply cent, plus, allowing for compounding, Michael Keyworth, recent head of our wrong to place the burden of deficit re- 6.8 percent for medical care, 23.7 per- Rhode Island Marine Trades Associa- duction on seniors and the disabled. cent for gasoline, and 27.8 percent for

VerDate Mar 15 2010 07:27 Apr 06, 2014 Jkt 079060 PO 00000 Frm 00046 Fmt 0624 Sfmt 0634 E:\RECORD13\RECFILES\APR2013\S24AP3.REC S24AP3 bjneal on DSK3VPTVN1PROD with CONG-REC-ONLINE April 24, 2013 CONGRESSIONAL RECORD — SENATE S2955 fuel oil—all with a COLA of zero per- just make ends meet with Social Security as ment, and motivation of others to take cent. we have no other income. We wear sweat leadership roles in philanthropy and The numbers show what Rhode Island shirts and pants to bed and coats in the community involvement. seniors know: The problem with the house during the winter because we can’t Previous recipients of this pres- pay the high prices of oil. If Social Security tigious award include the John D. and Social Security COLA is that it is too gets cut, I don’t know how we will make it. low, that it doesn’t meet the real costs I have worked all my adult life until the last Catherine T. MacArthur Foundation, seniors experience in real life. two years. I NEED my Social Security. . . . the Susan G. Komen Breast Cancer Why does this happen? The existing In the face of ever-increasing prices for Foundation, the Alfred P. Sloan Foun- cost-of-living formula considers prices health care, home heating, prescription dation, and the John S. and James L. across the whole economy, including drugs and grocery bills, asking seniors to Knight Foundation, among many oth- products seniors are not so likely to give up more and more of their Social Secu- ers. buy, such as flat-screen TVs and smart rity benefit as they age when every dollar The Stiller Family Foundation has phones and sporting equipment. Their counts is just plain wrong. benefited youth centers, arts organiza- prices may have fallen, but seniors These are real-life experiences of peo- tions, urban renewal projects, and edu- don’t benefit much from those lower ple who are the kind of folks chained cation institutions throughout prices. CPI would affect. Yes, we need to make Vermont. The foundation recently an- The problem is that the current sys- additional sacrifices to complete the nounced a major grant to create the tem fails to account for seniors’ true job of deficit reduction; no, those bur- Robert P. Stiller School of Business at costs in these areas. So my position is dens should not fall on our elderly and the Champlain College of Vermont and that we should move on to a more ac- disabled constituents. Our deficits established a permanent endowment curate formula for seniors, one that fo- come from unnecessary Bush-era tax for the study of appreciative inquiry at cuses on food, medicine and heating oil cuts that virtually exclusively bene- the school. and gas and the other things seniors fited the wealthy, they come from a My wife Marcelle and I have known actually buy. I have been proud to sup- decade of wars we didn’t pay for, and Bob and Christine a long time. As life- port legislation to change the Social they come from the worst economic long philanthropists, they have made a Security COLA formula to one that is crisis since the Great Depression. They positive impact in communities around geared more toward seniors, and I will have nothing to do with Social Secu- the globe through their pointed leader- continue to fight for the adoption of rity, so don’t take it out on the sen- ship, innovative ideas, and generous that new formula. iors. funding. It is hard to mention all of Chained CPI takes us in the opposite As the Senate budget shows, we can their many achievements. As founder direction. It assumes consumers will complete the task of stabilizing our of the highly successful Green Moun- alter the types of goods they buy as Nation’s finances in smart ways, in fair tain Coffee Roasters, Bob continues to prices rise. But seniors on fixed in- ways, in balanced ways, in ways that promote sustainable business practices comes have little ability to shift their don’t put the burden on those who can through environmental and fair trade buying habits away from these basic least afford it. initiatives all over the world. And expenses, things such as food, medical When I ran for this office, I pledged Christine has been a strong advocate care, gasoline, and fuel oil. It is hard to to the people of Rhode Island that I for Champlain College’s Single Parents shift away from those. The lower would oppose cuts to Social Security, Program, which offers single parents COLAs that chained CPI would produce and I will keep that promise. the opportunity to break generational will only cut into seniors’ already tight I yield the floor and I suggest the ab- cycles of poverty by helping them fund budgets, and force seniors to bear the sence of a quorum. a college education. Vermont is a bet- burden of reducing deficits that Social The ACTING PRESIDENT pro tem- ter place because of all the work done Security had no part in creating. A 0.3- pore. The clerk will call the roll. by Bob and Christine Stiller. I request unanimous consent that percent reduction each year might The legislative clerk proceeded to this article from the Burlington Free sound small, but over time the power call the roll. Press be printed at this point in the of compound interest makes those ben- Mr. WHITEHOUSE. Mr. President, I RECORD. efit cuts significant. ask unanimous consent the order for There being no objection, the article For people currently nearing retire- the quorum call be rescinded. was ordered to be printed in the ment, these cuts would amount to an- The ACTING PRESIDENT pro tem- RECORD, as follows: nual benefit reductions of $658 by the pore. Without objection, it is so or- [From the Burlington Free Press, Apr. 12, time they reach age 75, $1,147 by the dered. 2013] time they reach age 85, and $1,622 by f STILLER FAMILY FOUNDATION RECEIVES the time they reach age 95. That same MORNING BUSINESS NATIONAL RECOGNITION power of compounding makes these The Association of Fundraising Profes- cuts even larger for future generations Mr. WHITEHOUSE. Mr. President, I sionals recently honored Green Mountain of seniors. Perhaps $658 or $1,1622 ask unanimous consent that the Sen- Coffee Roasters Founder Bob Stiller and his doesn’t sound like much money to ate proceed to a period of morning wife Christine and their Stiller Family some folks around here, but to a senior business with Senators permitted to Foundation with the Most Outstanding in Rhode Island living on Social Secu- speak for up to 10 minutes each. Foundation Award of 2013. The ACTING PRESIDENT pro tem- The award was made at the Association’s rity, that is real money. international conference in San Diego on After getting no COLA for 2 years in pore. Without objection, it is so or- April 6. a row, Bethany, a senior from Smith- dered. The Most Outstanding Foundation award field, RI, wrote to me: f is given annually to honor a foundation that My health is not the best and it’s not easy demonstrates outstanding commitment trying to survive on my Social Security and CONGRATULATING THE STILLER through financial support, innovation, en- the increasing prices of gas, food, etc. and FAMILY FOUNDATION couragement and motivation of others to co-pays for medical. . . . The COLA calcula- Mr. LEAHY. Mr. President, I rise take leadership roles in philanthropy and na- tion for Social Security doesn’t work. We tional, international and/or community in- today to congratulate Bob and Chris- volvement. need an increase yearly to stay even with tine Stiller and their Stiller Family rising premiums and everyday expenses. The award dates back to 1989, and has pre- Please continue to fight for Social Security Foundation for receiving the Most Out- viously been given to the John D. and Cath- and Medicare. standing Foundation Award of 2013 erine T. MacArthur Foundation, the David from the Association of Fundraising and Lucile Packard Foundation, the Susan Deanne from Coventry, RI, wrote to G. Komen Breast Cancer Foundation, the Al- me in February: Professionals. The Most Outstanding Foundation fred P. Sloan Foundation and the John S. I am 68 years old and retired. I cannot award is given annually to honor a and James L. Knight Foundation, among work even part time because of severe Ar- others. thritis. My son lives with me who is perma- foundation that demonstrates out- The Stiller Foundation’s initiatives are nently disabled due to an accident when he standing commitment through finan- primarily focused on people and commu- was 9 years old. He is now 44 years old. We cial support, innovation, encourage- nities in Vermont and Florida. The Stillers

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