[Congressional Record Volume 142, Number 75 (Friday, May 24, 1996)]
[Extensions of Remarks]
[Page E919]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS JOB PROTECTION ACT OF 1996

                                 ______


                               speech of

                          HON. ROBERT MENENDEZ

                             of new jersey

                    in the house of representatives

                        Wednesday, May 22, 1996

  Mr. MENENDEZ. Mr. Speaker, I have been a supporter of small business 
but I rise in opposition to H.R. 3448, the Small Business Job 
Protection Act. While I support the small business provisions of the 
bill, I strongly object to the Ways and Means Committee not holding 
hearings on this bill.
  I was an original cosponsor of the targeted jobs credit extension 
bill, which has been included in H.R. 3448, but I was disappointed when 
the Republican leadership chose to not accept a majority of the Ways 
and Means Committee's vote to strike from the bill a requirement that 
employer-paid education benefits be limited to undergraduate schooling. 
H.R. 127, a bill I sponsored, would have extended employer-provided 
educational assistance for graduate as well as undergraduate tuition.
  These provisions of the bill will hurt businesses and workers. 
Thousands of workers will not be able to benefit from employer-provided 
educational assistance since the Republican leadership chose not to 
extend tax-free-employer-provided tuition assistance for graduate level 
education.
  Most of the tax cuts in this bill result from the elimination of 
section 936 of the Internal Revenue Code. The procedure leading to the 
elimination of this section is highly suspect. This is a major change 
in the Tax Code that will have an overwhelming effect on Puerto Rico.
  The Commonwealth of Puerto Rico has not been consulted regarding the 
elimination of section 936. Members have not been given an opportunity 
to hear about the consequences of this on the Commonwealth of Puerto 
Rico. It is unfair to place the burden of the tax cuts this bill 
provides on the Commonwealth of Puerto Rico, which has no vote in 
Congress, and to eliminate section 936 without holding hearings on its 
impact. I do not agree with the precedent that has been set.
  Members may not realize the adverse consequences of eliminating 
section 936 without providing a substitute program to stimulate job 
creation. Eliminating section 936 without any effective substitute will 
lead to job loss first in Puerto Rico, then in the United States and 
will finally hurt businesses in America. Without section 936, 
unemployment and poverty would increase dramatically in Puerto Rico. 
Where will workers in Puerto Rico look for jobs?
  Job loss in Puerto Rico means that residents of Puerto Rico may 
migrate to areas like my congressional district, where the unemployment 
rate is already above the national average. People of Hispanic descent 
have strong family ties and in times of adversity their families will 
reach out to help them. With unemployment rates in my district over 10 
percent, a major influx of unemployed workers will exacerbate a problem 
which is already intolerable. So you can see the unintended 
consequences of this legislation not only on Puerto Rico but also in 
New Jersey, New York, and other areas where Puerto Ricans have settled 
in the United States. Many Puerto Ricans living in the States are 
economically disadvantaged but their generous nature compels them to 
try to help those who are at even greater economic peril. This doubly 
disadvantages the disadvantaged.
  Finally, it is just bad policy for the Republican leadership to not 
provide an opportunity to learn about the impact of eliminating section 
936 without providing any alternatives. This further disenfranchises 
the people of the Commonwealth of Puerto Rico while imposing an unfair 
financial burden on them. Whether intentional or not it is invidious 
that this legislation singles out an individual ethnic group.

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