[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                    JOBS AND INVESTMENT ACT OF 1994

                                 ______


                          HON. BERNARD SANDERS

                               of vermont

                    in the house of representatives

                        Friday, October 7, 1994

  Mr. SANDERS. Mr. Speaker, I am pleased to introduce on behalf of the 
Progressive Caucus, the Jobs and Investment Act of 1994, which will 
begin a rational approach to job creation.
  Millions of Americans are unemployed and uncounted, underemployed, or 
forced to take temporary work in low-paying jobs. The nation's physical 
infrastructure is deteriorating and our manufacturing base is fleeing 
overseas. In the face of this crisis, President Clinton abandoned even 
the scaled back $16 billion economic stimulus bill he supported, 
because of a Republican filibuster in the Senate.
  The most rational approach to spur economic growth is a serious 
public investment program that pumps tens of billions of dollars into 
the human and physical infrastructure of the Nation.
  For some months now, the House Progressive Caucus has been putting 
together this jobs/stimulus bill which we have introduced today. The 
heart of this bill is a $63 billion annual investment over the next 2 
years in; (a) physical infrastructure; (b) human capital and; (c) 
targeted tax relief. These investments would be paid for by increases 
in progressive revenues beginning in the third year.
  Mr. Speaker, this investment of nearly $125 billion over the next 2 
years should result in the creation of between 3 million and 5.5 
million jobs. Infrastructure improvements in the bill will also result 
in long term economic and employment growth.
  The physical infrastructure component of the bill will provide for 
much needed improvements in our Nation's transportation network 
including highways, mass transit, airports and rail. In addition, 
billions would be made available to upgrade water and sewer systems, to 
clean up the environment, and for investment in renewable energy and 
energy efficiency. Local communities would receive assistance through 
the Community Development Block Grant [CDBG] program, grants for 
improvements in school libraries, and funding for community development 
financial institutions.
  The bill's human capital investments include targeted job training in 
the allied health fields, significant increases in adult, elementary 
and secondary education, as well as Head Start. The legislation also 
increases the monies available for a number of preventative health and 
migrant and homeless health programs. A new community health advisor 
program is also established. This program is designed to increase 
health care access to millions of inner city and rural people who are 
medically underserved.
  The third component of this job/stimulus bill is tax relief designed 
to ease the burden on middle and low-income Americans and to provide 
them with home ownership opportunities. The first tax relief measure is 
a tax credit equal to 20 percent of a worker's social security tax (up 
to a maximum of $200 per worker). The second piece is a first-time 
homebuyer tax credit equal to 10 percent of the purchase price of a new 
home (up to a maximum credit of $6,000). A first-time homebuyer making 
$50,000 or less could be eligible for the maximum credit. For those 
making more, the $6,000 cap would go down by $100 for every $200 of 
income over $50,000.
  Mr. Speaker, in order to maximize the stimulative effect of this 
package, the Progressive Caucus bill pays for these investments with 
progressive revenue measures beginning in the third year after 
enactment. Much of the economic trouble we are experiencing is a direct 
result of the failed policies were massive tax reductions for the very 
richest members of our society. Therefore, this bill, while seeking to 
remedy the problems in our economy, pays for the significant public 
investment by asking those who benefitted from the 1980s to pay more of 
their fair share.
  Mr. Speaker, overall, this jobs/stimulus bill represents a bold 
attempt to deal with an economy facing serious structural deficiencies. 
We can no longer look to economic solutions geared solely to appeasing 
stock traders and bond holders. The needs of America's working men and 
women must also be addressed. This bill does just that. Millions of 
decent paying jobs would be created. Our nation's physical and human 
capital would be greatly enhanced, and middle-income and working people 
would get some much needed tax relief.

                        Where the Dollar Will Go


  New Investments in Our Nation's Infrastructure ($/year for two-year 
                                period)

       $10 billion for repairing highways and bridges
       $1.6 billion for improving and expanding mass transit 
     systems
       $1.0 billion for airport improvements
       $1.0 billion to upgrade rail travel and freight shipping
       $4.0 billion for construction of new water and sewage 
     treatment facilities
       $4.0 billion for economic development projects in major 
     cities, towns, and neighborhoods
       $3.0 billion for improving existing schools and libraries 
     and building new ones
       $1.0 billion for energy efficiency improvements in federal 
     buildings
       $1.0 billion for community development banks in low-income 
     communities to stimulate targeted lending and local economic 
     development projects
       Total $30.6 billion/year


   new investments in our nation's needy people ($/year for two-year 
                                period)

       $2.0 billion to train low-income Americans for careers in 
     disseminating basic health care and disease prevention 
     information
       $1.0 billion for youth apprenticeship training programs 
     serving 14-21 year olds
       $2.5 billion for hiring new teachers, tutors, and 
     specially-trained instructors to improve our schools
       $4.0 billion for Head Start to cover all eligible 3-5 year 
     olds
       $900 million for community-based efforts to prevent AIDS, 
     breast and cervical cancer, tuberculosis, and lead exposure
       $400 million to expand migrant and homeless health centers
       $100 million for states and communities to train local 
     residents to provide health promotion and disease prevention 
     materials
       $100 million for scholarships and loan programs for doctors 
     and nurse practitioners in under-served communities
       Total $11 billion/year


    new tax relief for working families ($/year for two-year period)

       $16 billion tax credit equal to 20% of person's FICA 
     contribution, capped at $200/person
       $6 billion tax credit up to $6,000 for first-time 
     homebuyers with annual income of $62,000 or less
       Total $22 billion/year


             GRAND TOTAL OF NEW INVESTMENTS = $63.6 BILLION

                    where the dollars will come from

            new taxes on unearned income ($ in billion/year)

       $12-20 billion from .25% tax each time stock ownership is 
     transferred
       $66.6 billion from terminating preferred tax treatment of 
     capital gains relative to earned income
       $1.5-2.2 billion from capital gains tax on inherited 
     investment (i.e. eliminate stepped up basis at death)


grand total of new taxes = $79.5-$99.5 billion/year

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