Congressional Record, Volume 147 Issue 72 (Wednesday, May 23, 2001)

[Congressional Record Volume 147, Number 72 (Wednesday, May 23, 2001)]
[Senate]
[Pages S5490-S5495]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

RESTORING EARNINGS TO LIFT INDIVIDUALS AND EMPOWER FAMILIES (RELIEF)
ACT OF 2002

The ACTING PRESIDENT pro tempore. Under the previous order, the
Senate will now resume consideration of H.R. 1836, which the clerk will
report.
The assistant legislative clerk read as follows:

A bill (H.R. 1836) to provide the reconciliation pursuant
to section 104 of the concurrent resolution on the budget for
fiscal year 2002.

Pending:

Collins/Warner amendment No. 675, to provide an above-the-
line deduction for qualified professional development
expenses of elementary and secondary school teachers and to
allow a credit against income tax to elementary and secondary
school teachers who provide classroom materials.

The PRESIDING OFFICER (Mr. Roberts). The distinguished Senator from
Maine.

Amendment No. 741

Ms. SNOWE. Mr. President, I send up amendment No. 741 and ask for its
immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Maine [Ms. Snowe], for herself, Mrs.
Lincoln, Mr. Jeffords, Mr. Chafee, Mr. DeWine, Mr. Kerry, Mr.
Dodd, Mr. Rockefeller, Ms. Collins, Mr. Domenici, and Mr.
Smith of Oregon, proposes an amendment numbered 741.

Ms. SNOWE. Mr. President, I ask unanimous consent that further
reading of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

(Purpose: To express the sense of the Senate that the modifications to
the child tax credit contained in section 201 should be part of the
final tax package)

On page 18, between lines 14 and 15, insert:

SEC. 202. SENSE OF THE SENATE ON THE MODIFICATIONS TO THE
CHILD TAX CREDIT.

(a) Findings.--
(1) There are over 12,000,000 children in poverty in the
United States--about 78 percent of these children live in
working families.
(2) The child tax credit was originally designed to benefit
families with children in recognition of the costs associated
with raising children.
(3) There are 15,400,000 children whose families would not
benefit from the doubling of the child tax credit unless it
is made refundable and another 7,000,000 children live in
families who will not receive an increased benefit under the
bill unless the credit is made refundable.
(4) A person who earns the Federal minimum wage and works
40 hours a week for 50 weeks a year earns approximately
$10,300.
(5) The provision included in section 201 would give
families with children the benefit of a partially refundable
child tax credit based on 15 cents of their income for every
dollar earned above $10,000.
(6) For a family earning $15,000 that is an additional $750
to help make ends meet.
(7) Doubling the child tax credit to $1,000 and making it
partially refundable will benefit over 37,000,000 families
with dependent children.
(8) The expansion of the child tax credit included in
section 201 is a meaningful and a responsible effort on the
part of the Senate to address the needs of low income working
families to promote work and such an expansion would provide
the benefit of a child tax credit to 10,700,000 more children
than the provision passed by the House of Representatives.
(b) Sense of the Senate.--It is the sense of the Senate
that the ``10-15'' child tax credit provision included in
section 201 is a worthy start, and should be maintained as
part of the final package.

Ms. SNOWE. Mr. President, I rise today to offer a sense of the Senate
amendment in support of the provisions in the bill that expand and
extend the child tax credit to millions of working families. I am
joined in offering this amendment by Senators Lincoln, Jeffords,
Chafee, DeWine, Kerry, Dodd, Rockefeller, Collins, Domenici, Smith of
Oregon, and Wellstone.
The RELIEF Act doubles the maximum child tax credit from $500 to
$1,000 per child and extends it by making it partially refundable for
15 cents on every dollar earned above $10,000. These provisions were
incorporated in the bill during the Senate Finance Committee markup on
a bipartisan basis and, together, these provisions will extend the
benefits of the child tax credit to more than 55 million children
nationally, as well as 37 million families. Without refundability,
almost 16 million of these children would not be eligible for an
increased benefit. The overwhelming majority of these children--almost
two-thirds--live in working families.
This amendment demonstrates our commitment to the child tax credit
provisions in this package. I urge support of the amendment.
The PRESIDING OFFICER. Who yields time in opposition?
Mr. REID. Mr. President, I know of no opposition to this amendment.
We yield back our time.
The PRESIDING OFFICER. All time is yielded back.
Ms. SNOWE. Mr. President, I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The question is on agreeing to the amendment.
The clerk will call the roll.
The senior assistant bill clerk called the roll.
Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain)
and the Senator from North Carolina (Mr. Helms) are necessarily absent.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The result was announced--yeas 94, nays 4, as follows:

[Rollcall Vote No. 159 Leg.]

YEAS--94

Akaka
Allard
Allen
Baucus
Bayh
Bennett
Biden
Bingaman
Bond
Boxer
Breaux
Brownback
Bunning
Burns
Byrd
Campbell
Cantwell
Carnahan
Carper
Chafee
Cleland
Clinton
Cochran
Collins
Conrad
Corzine
Craig
Crapo
Daschle
Dayton
DeWine
Dodd
Domenici
Dorgan
Durbin
Edwards
Ensign
Feingold
Feinstein
Fitzgerald
Frist
Graham
Grassley
Gregg
Hagel
Harkin
Hatch
Hollings
Hutchinson
Hutchison
Inhofe
Inouye
Jeffords
Johnson
Kennedy
Kerry
Kohl
Landrieu
Leahy
Levin
Lieberman
Lincoln
Lott
Lugar
McConnell
Mikulski
Miller
Murkowski
Murray
Nelson (FL)
Nelson (NE)
Reed
Reid
Roberts
Rockefeller
Santorum
Sarbanes
Schumer
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Specter
Stabenow
Stevens
Thomas
Thompson
Thurmond
Torricelli
Voinovich
Warner
Wellstone
Wyden

[[Page S5491]]

NAYS--4

Enzi
Gramm
Kyl
Nickles

NOT VOTING--2

Helms
McCain

The amendment (No. 741) was agreed to.

Amendment No. 769, As Modified

Mr. NELSON of Nebraska. Mr. President, I call up my amendment No. 769
and ask unanimous consent to modify it.
The PRESIDING OFFICER. The Senator has that right. Without objection,
the amendment is modified. The clerk will report.
The assistant legislative clerk read as follows:

The Senator from Nebraska [Mr. Nelson] proposes an
amendment numbered 769, as modified.

Mr. NELSON of Nebraska. I ask unanimous consent reading of the
amendment be dispensed with.
The ACTING PRESIDENT pro tempore. Without objection, is so ordered.
The amendment is as follows:

(Purpose: To provide a circuit breaker for tax cuts if debt levels are
not reduced as provided in the budget resolution for fiscal year 2002)

At the appropriate place, insert the following:

SEC. . CIRCUIT BREAKER.

(a) In General.--In any fiscal year beginning with fiscal
year 2004, if the level of debt held by the public at the end
of that fiscal year (as projected by the Office of Management
and Budget sequestration update report on August 20th
preceding the beginning of that fiscal year) would exceed the
level of debt held by the public for that fiscal year set
forth in the concurrent resolution on the budget for fiscal
year 2002 (H. Con. Res. 83, 107th Congress), any Member of
Congress may move to proceed to a bill that would make
changes in law to reduce discretionary spending and direct
spending (except for changes in Social Security, Medicare and
COLA's) and increase revenues in a manner that would reduce
the debt held by the public for the fiscal year to a level
not exceeding the level provided in that concurrent
resolution for that fiscal year.
(b) Consideration of Legislation.--A bill considered under
subsection (a) shall be considered as provided in section
310(e) of the Congressional Budget Act of 1974 (2 U.S.C.
641(e)).
(c) Procedure.--It shall not be in order in the Senate to
consider any bill, joint resolution, motion, amendment, or
conference report, pursuant to this section, that contains
any provisions other than those enumerated in section
310(a)(1) and 310(a)(2) of the Congressional Budget Act of
1974. This point of order may be waived or suspended in the
Senate only by the affirmative vote of three-fifths of the
Members duly chosen and sworn. An affirmative vote of three-
fifths of the Members duly chosen and sworn, shall be
required in the Senate to sustain an appeal of the ruling of
the Chair on a point of order raised under this paragraph.

Mr. NELSON of Nebraska. This amendment is a circuit breaker as
opposed to a trigger. Nothing automatically kicks in as in the case of
the trigger amendments that have been offered in the past but it does,
in fact, create an opportunity for a privileged motion that deals with
spending or tax cuts in the event the debt reduction targets are not
being met.
Mr. BAUCUS. Mr. President, the Senate is not in order.
The PRESIDING OFFICER. The Senator is correct. The Senate will please
come to order.
Mr. NELSON of Nebraska. Mr. President, this circuit breaker does not
specify any action to be taken if the midcourse review legislation is
not enacted into law. What it does is it simply permits any Senator to
bring up a privileged motion that deals with spending or tax cuts but
exempts Social Security, Medicare, and COLA's from being subject to any
potential spending cuts in the midcourse correction.
I hope my colleagues will support this amendment. I ask they do so.
Mr. GRASSLEY. Mr. President, I am not going to use my 1 minute. With
this modification, I ask unanimous consent the amendment be agreed to;
if not, then by voice vote.
The PRESIDING OFFICER. Does the Senator yield back his time?
Mr. GRASSLEY. I do.
The PRESIDING OFFICER. All time is yielded back. The question is on
agreeing to the amendment.
The amendment (No. 769), as modified, was agreed to.
Mr. GRASSLEY. Mr. President, I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The PRESIDING OFFICER. The Senator from Nevada.
Mr. REID. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. REID. Mr. President, I ask unanimous consent the order for the
quorum call be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. REID. Mr. President, the list we gave to the majority lists
Senator Durbin being next but we want to flip that and have Senator
Graham's amendment be next in order.
Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Mr. HARKIN. Mr. President, I ask unanimous consent the order for the
quorum call be rescinded.
The PRESIDING OFFICER (Mr. Ensign). Without objection, it is so
ordered.

Amendment No. 784

Mr. HARKIN. Mr. President, I call up amendment No. 784 and ask for
its immediate consideration.
The PRESIDING OFFICER. The clerk will report the amendment.
The legislative clerk read as follows:

The Senator from Iowa [Mr. Harkin], for himself and Mr.
Johnson, proposes an amendment numbered 784.

Mr. HARKIN. Mr. President, I ask unanimous consent reading of the
amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

(Purpose: To provide a deduction for unreimbursed expenses related to
certain public activities of emergency response professionals)

At the end of subtitle D of title IV, add the following:

SEC. ____. ABOVE-THE-LINE DEDUCTION FOR QUALIFIED EMERGENCY
RESPONSE EXPENSES OF ELIGIBLE EMERGENCY
RESPONSE PROFESSIONALS.

(a) Deduction Allowed.--Part VII of subchapter B of chapter
1 (relating to additional itemized deductions for
individuals), as amended by this Act, is amended by
redesignating section 224 as section 225 and by inserting
after section 223 the following new section:

``SEC. 224. QUALIFIED EMERGENCY RESPONSE EXPENSES.

``(a) Allowance of Deduction.--In the case of an eligible
emergency response professional, there shall be allowed as a
deduction an amount equal to the qualified expenses paid or
incurred by the taxpayer during the taxable year.
``(b) Definitions.--For purposes of this section--
``(1) Eligible emergency response professional.--The term
`eligible emergency response professional' includes--
``(A) a full-time employee of any police department or fire
department which is organized and operated by a governmental
entity to provide police protection, firefighting service, or
emergency medical services for any area within the
jurisdiction of such governmental entity,
``(B) an emergency medical technician licensed by a State
who is employed by a State or non-profit to provide emergency
medical services, and
``(C) a member of a volunteer fire department which is
organized to provide firefighting or emergency medical
services for any area within the jurisdiction of a
governmental entity which is not provided with any other
firefighting services.
``(2) Governmental entity.--The term `governmental entity'
means a State (or political subdivision thereof), Indian
tribal (or political subdivision thereof), or Federal
government.
``(3) Qualified expenses.--The term `qualified expenses'
means unreimbursed expenses for police and firefighter
activities, as determined by the Secretary.
``(c) Denial of Double Benefit.--
``(1) In general.--No other deduction or credit shall be
allowed under this chapter for any amount taken into account
for which a deduction is allowed under this section.
``(2) Coordination with exclusions.--A deduction shall be
allowed under subsection (a) for qualified expenses only to
the extent the amount of such expenses exceeds the amount
excludable under section 135, 529(c)(1), or 530(d)(2) for the
taxable year.
``(d) Termination.--This section shall not apply to taxable
years beginning after December 31, 2006.''.
(b) Deduction Allowed in Computing Adjusted Gross Income.--
Section 62(a) (relating to adjusted gross income defined), as
amended by this Act, is amended by inserting after paragraph
(19) the following new paragraph:
``(20) Qualified professional development expenses.--The
deduction allowed by section 224.''.

[[Page S5492]]

(c) Conforming Amendments.--
(1) Sections 86(b)(2), 135(c)(4), 137(b)(3), and 219(g)(3),
as amended by this Act, are each amended by inserting
``224,'' after ``221,''.
(2) Section 221(b)(2)(C), as amended by this Act, is
amended by inserting ``224,'' before ``911''.
(3) Section 469(i)(3)(E), as amended by this Act, is
amended by striking ``and 223'' and inserting ``, 223, and
224''.
(4) The table of sections for part VII of subchapter B of
chapter 1, as amended by this Act, is amended by striking the
item relating to section 223 and inserting the following new
items:

``Sec. 224. Qualified emergency response expenses.
``Sec. 225. Cross reference.''.

(d) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
2001.

Mr. HARKIN. First, I thank my colleagues, the chairman of the
committee, Senator Grassley, and the ranking member, Senator Baucus,
for helping work out this amendment. They have done a great job. I
really appreciate it. But I also believe all of our policemen and our
firefighters and our volunteer firefighters are going to appreciate it
even more because what happens right now is a lot of our law
enforcement officers, firefighters, and volunteer firefighters spend a
lot of money out of their own pockets for work-related expenses. This
amendment would help cover their out-of-pocket expenses for their guns,
bulletproof vests, uniforms, some transportation costs, and equipment
for volunteer firefighters.
Just to give you an example of what I am talking about, police
officers in Altoona, IA, pay for their own guns, which can cost up to
$800. In Des Moines, they have to pay for their guns, ammunition, shoes
and boots, and part of the cost of their $600 bulletproof vests. For
some police, when they go to training, the training is paid for but the
transportation to get there is not paid for, so they have to pay for
that out of their own pocket.
The PRESIDING OFFICER. The Senator's time has expired.
Mr. HARKIN. I ask unanimous consent for just 30 seconds more.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. HARKIN. For these men and women, who earn an average of $28,000
to $40,000 a year and have families to support, those expenses add up,
especially for new officers. This amendment would help provide a
deduction for these people when they pay for those expenses out of
their own pocket.
Again, I thank Senator Grassley and Senator Baucus for being willing
to work out this amendment.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. GRASSLEY. Mr. President, this amendment is similar to one we did
in another profession on another amendment that is being worked out. We
accept this amendment, look favorably on it. I ask if we can have a
voice vote.
I yield back my time.
The PRESIDING OFFICER. All time is yielded back.
The question occurs on agreeing to amendment No. 784.
The amendment (No. 784) was agreed to.
Mr. GRASSLEY. I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. REID. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The legislative clerk proceeded to call the roll.
Ms. STABENOW. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER (Mr. Bunning). Without objection, it is so
ordered.

Motion to Recommit

Ms. STABENOW. Mr. President, I call up my motion at the desk.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:

The Senator from Michigan (Ms. Stabenow) moves to recommit
the bill H.R. 1836, as amended, to the Committee on Finance
with instructions to report the same back to the Senate
forthwith with an amendment that--
(1) ensures that the provisions of this bill do not result
in any fiscal year in an on-budget surplus for that fiscal
year that is less than the surplus for that year in the
Federal Hospital Insurance Trust Fund; and
(2) establishes a 60-vote point of order prohibiting any
bill, resolution, amendment, motion, or conference report
that uses funds in such Trust Fund for any purpose other than
for providing part A benefits under the Medicare program.

Ms. STABENOW. Mr. President, I ask my colleagues to join me in this
motion to recommit and to join with Senator Bob Graham, who has been
such a leader in protecting Medicare, and my colleague from Minnesota,
Senator Dayton, who has been such a champion on Medicare and
prescription drugs.
This is a very simple, straightforward motion. No. 1, it says we will
not use the Medicare Part A trust funds in order to pay for this tax
cut. We have seen in the numbers from the final conference committee on
the budget that every single year Medicare trust funds are used for
this tax cut. This says no to that practice. It puts into place a 60-
vote point of order in the future for any other attempts to use the
Medicare trust fund.
We believe strongly that we need to update Medicare. We need to
provide prescription drugs and strengthen Medicare. We ought not to be
using it for other purposes.
We ask colleagues to join us, to say strongly that when it comes to
Medicare, we want to update it, not raid it.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. GRASSLEY. Mr. President, everything the Senator from Michigan
said, I agree with. I would just do it in a different way. I would do
it according to the budget resolution that was adopted.
In that budget resolution, we fully protect Part A. It is a
commitment on the part of this party, this Congress, and the President
of the United States to only use Medicare money for Medicare, nothing
else. That is what we will do.
This amendment is not needed because of the budget and the planning
on this tax bill. This issue comes up every time we are trying to
spread out the tax reductions over the next 10 years. It is very basic
to every decision we make that we not go into the Medicare trust fund.
I ask Members not to vote for the amendment because it is not needed.
I raise a point of order on germaneness. That point of order is based
upon section 305(b)(2) of the Budget Act.
Ms. STABENOW. Mr. President, pursuant to section 904 of the
Congressional Budget Act of 1974, I move to waive the applicable
sections of that act for consideration of the pending motion, and I ask
for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The question is on agreeing to the motion. The clerk will call the
roll.
The legislative clerk called the roll.
The yeas and nays resulted--yeas 46, nays 54, as follows:

[Rollcall Vote No. 160 Leg.]

YEAS--46

Akaka
Bayh
Biden
Bingaman
Boxer
Byrd
Cantwell
Carnahan
Carper
Cleland
Clinton
Conrad
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Edwards
Feingold
Feinstein
Graham
Harkin
Hollings
Inouye
Johnson
Kennedy
Kerry
Kohl
Landrieu
Leahy
Levin
Lieberman
Lincoln
Mikulski
Murray
Nelson (FL)
Reed
Reid
Rockefeller
Sarbanes
Schumer
Stabenow
Torricelli
Wellstone
Wyden

NAYS--54

Allard
Allen
Baucus
Bennett
Bond
Breaux
Brownback
Bunning
Burns
Campbell
Chafee
Cochran
Collins
Craig
Crapo
DeWine
Domenici
Ensign
Enzi
Fitzgerald
Frist
Gramm
Grassley
Gregg
Hagel
Hatch
Helms
Hutchinson
Hutchison
Inhofe
Jeffords
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Roberts
Santorum
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Specter
Stevens
Thomas
Thompson
Thurmond
Voinovich
Warner
The PRESIDING OFFICER. On this vote there are 46 yeas and 54 nays.
Three-fifths of the Senators duly chosen and sworn not having voted in
the affirmative, the motion is rejected. The point of order is
sustained and the motion falls.

[[Page S5493]]

The PRESIDING OFFICER. The Senator from Florida is recognized.

Amendment No. 763

(Purpose: To allow individuals a deduction for qualified long-term care
insurance premiums, use of such insurance under cafeteria plans and
flexible spending arrangements, and a credit for individuals with long-
term care needs)

Mr. GRAHAM. Mr. President, I call up amendment No. 763.
The PRESIDING OFFICER. The clerk will report the amendment.
The assistant legislative clerk read as follows:

The Senator from Florida [Mr. Graham] proposes an amendment
numbered 763.

Mr. GRAHAM. Mr. President, I ask unanimous consent that the reading
of the amendment be dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
(The text of the amendment is located in the Record of Tuesday, May
22, 2001, under ``Amendments Submitted and Proposed.'')
Mr. GRAHAM. Mr. President, one of the dramatic announcements of the
2000 census was the fact that one of the fastest growing components of
our population is Americans over the age of 80. This is just the first
ripple of what will be a tidal wave of Americans over the age of 80 as
we move into the 21st century.
This amendment goes to exactly that issue by first recognizing the
care that is currently being given to older Americans by caregivers by
providing a $3,000 tax credit to those persons who are tending to the
needs of a frail elderly member of their family, and second, to
encourage Americans to purchase long-term care insurance for their own
protection when they might reach the point where they require
institutional care.
This is an extremely important amendment for preparation of the
future of millions of Americans. I urge its adoption.
The PRESIDING OFFICER. The Senator's time has expired.
The Senator from Iowa.
Mr. GRASSLEY. Mr. President, we know of the need to recognize the
contribution of 22 million family caregivers in the United States. We
know the need to encourage people to save for long-term care through
tax credits for long-term health care.
Following a hearing I held last month on long-term care, Senator
Graham and I introduced legislation to do what this amendment creates.
He and I worked jointly on a similar bill last year and pressed hard
for its passage.
As I stated at the hearing, I am committed to addressing the pressing
financial long-term care challenges that accompany the retirement of
the baby boom generation. However, I cannot support the inclusion of
his amendment in the bill since it raises taxes on people to pay for
it.
I will be offering a second-degree amendment. I yield back my time.
The PRESIDING OFFICER. The Senator's time has expired.

Amendment No. 786 to Amendment No. 763

Mr. GRASSLEY. Mr. President, I have a second-degree amendment at the
desk, and I ask for its immediate consideration.
The PRESIDING OFFICER. The clerk will report.
The legislative clerk read as follows:

The Senator from Iowa [Mr. Grassley] proposes an amendment
numbered 786 to amendment No. 763.
On page 1, line 2, strike all after the word ``strike''
through the end of page 1, line 3.
On page 20, strike lines 14 and 15 and insert the
following:
``This section shall apply to policies issued after January
1st 2006.''

Mr. GRASSLEY. Mr. President, this amendment, rather than raise taxes,
will be paid for out of the budget surplus.
I yield back the remainder of my time.
The PRESIDING OFFICER. The Senator from Florida.
Mr. GRAHAM. Mr. President, what is the time limit for debate on
second-degree amendments?
The PRESIDING OFFICER. One minute each. The Senator yielded back his
time. The Senator from Florida has 1 minute.
Mr. GRAHAM. The amendment that is offered proposes to pay for this by
making a 1-percent reduction in the marginal rate cut for the highest
income Americans. The second-degree amendment pays for it by blowing
the budget cap of $1.35 trillion and going above that for the purposes
of this very important amendment.
I believe strongly in this amendment, but I also believe in fiscal
discipline. I am afraid the course being suggested by the second-degree
amendment is the course that is going to be suggested for the remaining
months of this session of Congress; that is, every time we have a new
tax idea, let's do it by increasing the total amount of tax and not be
faithful to the commitment we have made to limit the total tax
authority to $1.35 trillion.
Mr. President, on policy grounds, I strongly oppose the second-degree
amendment. I raise a point of order.
The PRESIDING OFFICER. The Senator's time has expired.
Mr. GRAHAM. Mr. President, I raise the point of order that the
pending second-degree amendment violates section 311(a)(2)(B) of the
Congressional Budget Act of 1974.
Mr. GRASSLEY. Mr. President, I move to waive the Budget Act and ask
for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The question is on agreeing to the motion. The clerk will call the
roll.
The assistant legislative clerk called the roll.
The yeas and nays resulted--yeas 49, nays 51, as follows:

[Rollcall Vote No. 161 Leg.]

YEAS--49

Allard
Allen
Bennett
Bond
Brownback
Bunning
Burns
Campbell
Chafee
Cochran
Collins
Craig
Crapo
DeWine
Domenici
Ensign
Enzi
Fitzgerald
Frist
Gramm
Grassley
Gregg
Hagel
Hatch
Helms
Hutchinson
Hutchison
Inhofe
Jeffords
Kyl
Lott
Lugar
McConnell
Murkowski
Nickles
Roberts
Santorum
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Specter
Stevens
Thomas
Thompson
Thurmond
Voinovich
Warner

NAYS--51

Akaka
Baucus
Bayh
Biden
Bingaman
Boxer
Breaux
Byrd
Cantwell
Carnahan
Carper
Cleland
Clinton
Conrad
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Edwards
Feingold
Feinstein
Graham
Harkin
Hollings
Inouye
Johnson
Kennedy
Kerry
Kohl
Landrieu
Leahy
Levin
Lieberman
Lincoln
McCain
Mikulski
Miller
Murray
Nelson (FL)
Nelson (NE)
Reed
Reid
Rockefeller
Sarbanes
Schumer
Stabenow
Torricelli
Wellstone
Wyden
The PRESIDING OFFICER. On this vote the yeas are 49, the nays are 51.
Three-fifths of the Senators duly chosen and sworn not having voted in
the affirmative, the motion is rejected. The point of order is
sustained and the amendment falls.
The PRESIDING OFFICER. The Senator from Florida.
Mr. GRAHAM. Mr. President, am I correct the second-degree amendment
has failed?
The PRESIDING OFFICER. It failed.
Mr. GRAHAM. By virtue of the waiver of the point of order not having
received 60 votes, is that correct?
The PRESIDING OFFICER. That is correct.
Mr. GRASSLEY. Mr. President, I have a point of order that the pending
amendment is not germane to the provisions of the reconciliation bill.
I make that under section 305(b)(2) of the Budget Act.
The PRESIDING OFFICER. The Senator from Florida.
Mr. GRAHAM. Mr. President, I ask the budget point of order be waived.
I will ask for the yeas and nays, but before doing so I would like to
use my 1 minute to speak against the motion.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRAHAM. Mr. President, what we have raised in this one amendment
are two of the most basic questions that this overall tax bill raises.
One is fiscal discipline. We had a vote, and I am pleased more than a
majority of Senators voted not to break the $1.35 trillion cap. That
was what we were being asked to do, to add $50 billion beyond the
current tax cut authority through the amendment that was offered by the
Senator from Iowa.
The second issue we are now facing is one of priorities. Upon which
do you

[[Page S5494]]

put the higher priority, assisting Americans prepare for their old age,
helping families who are providing care for a frail, elderly family
member through a $3,000 tax credit--is that a higher priority than
delaying the 1-percent decrease for the highest income-tax payers in
America, the rate reduction which is in this underlying bill? Those are
the choices. Which is more important to you? What are your priorities?
The PRESIDING OFFICER. The Senator from Iowa.
Mr. GRASSLEY. Mr. President, I ask unanimous consent for equal time.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRASSLEY. Mr. President, I rise to support my point of order and
to say I agree on the need for long-term care insurance, a need to
encourage family care giving through tax credits. The Senator and I
have introduced legislation to accomplish that. Also, people need to
remember that senior citizens who pay income taxes are going to benefit
from our tax reduction as well.
The second and last point I will make is: This, again, is one more
time of, I will bet, dozens of times over the last 4 days that we have
had amendments from the other side to break up the rate structure, the
bipartisan compromise in this bill. I ask we vote against waiving the
point of order.
Mr. GRAHAM. Mr. President, I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second? There is
sufficient second. The question is on agreeing to the motion. The clerk
will call the roll.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The yeas and nays resulted--yeas 47, nays 53, as follows:

[Rollcall Vote No. 162 Leg.]

YEAS--47

NAYS--53

Allard
Allen
Baucus
Bennett
Bond
Breaux
Brownback
Bunning
Burns
Campbell
Chafee
Cochran
Collins
Craig
Crapo
DeWine
Domenici
Ensign
Enzi
Fitzgerald
Frist
Gramm
Grassley
Gregg
Hagel
Hatch
Helms
Hutchinson
Hutchison
Inhofe
Jeffords
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Roberts
Santorum
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Stevens
Thomas
Thompson
Thurmond
Voinovich
Warner
The PRESIDING OFFICER. On this vote the yeas are 47, the nays are 53.
Three-fifths of the Senators duly chosen and sworn not having voted in
the affirmative, the motion is rejected. The point of order is
sustained and the amendment falls.
Mr. SCHUMER addressed the Chair.
The PRESIDING OFFICER. The Senator from New York.

Amendment No. 777

Mr. SCHUMER. Mr. President, I call up amendment No. 777, the good
luck amendment.
The PRESIDING OFFICER. The clerk will report the amendment.
The assistant legislative clerk read as follows:

The Senator from New York [Mr. Schumer] proposes an
amendment numbered 777.

Mr. SCHUMER. I ask unanimous consent reading of the amendment be
dispensed with.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment is as follows:

(Purpose: To provide alternative minimum tax relief for individuals,
extend certain expiring tax provisions, and to provide an offset for
revenue loss)

On page 314, after line 21, add the following:

SEC. ____. INDIVIDUAL ALTERNATIVE MINIMUM TAX INDEXING;
EXTENSION OF CERTAIN EXPIRING PROVISIONS.

(a) Alternative Minimum Tax Relief.--Section 701(a) of this
Act is amended to read as follows:
(a) In General.--Section 55(d) (relating to exemption
amount) is amended by adding at the end the following new
paragraph:
``(4) Inflation adjustment.--
``(A) In general.--In the case of any taxable year
beginning after 2000, the dollar amounts referred to in
paragraph (1) shall each be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section (1)(f)(3) for the calendar year in which the taxable
year begins, by substituting `1999' for `1992'.
``(B) Rounding.--If any amount as adjusted under
subparagraph (A) is not a multiple of $50, such amount shall
be rounded to the nearest multiple of $50.''.
(b) One-year Extension of Certain Expiring Provisions.--
(1) Adoption credits.--
(A) Children without special needs.--Section 23(d)(2)(B)
(defining eligible child) is amended by striking ``2001'' and
inserting ``2002''.
(B) Adoption assistance programs.--Section 137(f) (relating
to termination) is amended by striking ``2001'' and inserting
``2002''.
(2) Nonrefundable personal credits under AMT.--So much of
section 26(a)(2) as precedes subparagraph (A) is amended to
read as follows:
``(2) Special rule for 2000, 2001, and 2002.--For purposes
of any taxable year beginning during 2000, 2001, or 2002, the
aggregate amount of credits allowed by this subpart for the
taxable year shall not exceed the sum of--''.
(3) Work opportunity credit.--
(A) Temporary extension.--Section 51(c)(4)(B) (relating to
termination) is amended by striking ``2001'' and inserting
``2002''.
(B) Effective date.--The amendment made by this paragraph
shall apply to individuals who begin work for the employer
after December 31, 2001.
(4) Welfare-to-work credit.--
(A) Temporary extension.--Section 51A(f) (relating to
termination) is amended by striking ``2001'' and inserting
``2002''.
(B) Effective date.--The amendments made by this paragraph
shall apply to individuals who begin work for the employer
after December 31, 2001.
(5) Electricity from certain renewable resources.--
Subparagraphs (A), (B), and (C) of section 45(c)(3) (defining
qualified facility) are each amended by striking ``2002'' and
inserting ``2003''.
(6) Delay in effective date of requirement for approved
diesel or kerosene terminals.--Paragraph (2) of section
1032(f) of the Taxpayer Relief Act of 1997 is amended by
striking ``January 1, 2002'' and inserting ``January 1,
2003''.
(7) Qualified zone academy bond program.--Section
1397E(e)(1) (relating to national limitation) is amended by
striking ``and 2001'' and inserting ``2001, and 2002''.
(8) Employer provided educational assistance.--Section
127(d) (relating to termination) is amended by striking
``2001'' and inserting ``2002''.
(9) Income limit for percentage depletion.--Subparagraph
(H) of section 613A(c)(6) is amended by striking ``January 1,
2002'' and inserting ``January 1, 2003''.
(10) Subpart f exemption.--
(A) Temporary extension.--Section 953(e)(10) is amended--
(i) by striking ``January 1, 2002'' and inserting ``January
1, 2003'', and
(ii) by striking ``December 31, 2001'' and inserting
``December 31, 2002''.
(B) Conforming amendment.--Section 954(h)(9) is amended by
striking ``January 1, 2002'' and inserting ``January 1,
2003''.
(11) Parity in the application of certain limits to mental
health benefits.--
(A) Temporary extension.--Subsection (f) of section 9812 is
amended by striking ``on or after September 30, 2001'' and
inserting ``after September 30, 2002''.
(B) Effective date.--The amendments made by this paragraph
shall apply to benefits for services furnished after
September 30, 2001.
(12) Phaseout of deduction for clean-fuel vehicles and
certain refueling property.--
(A) Temporary extension of phaseout.--Subsection (b)(1)(B)
of section 179A is amended--
(i) in the matter preceding clause (i), by striking
``December 31, 2001' and inserting ``December 31, 2002'',
(ii) in clause (i), by striking ``2002'' and inserting
``2003'',
(iii) in clause (ii), by striking ``2003'' and inserting
``2004'', and
(iv) in clause (iii), by striking ``2004'' and inserting
``2005''.
(B) Extension of termination date.--Section 179A(f) is
amended by striking ``December 31, 2004'' and inserting
``December 31, 2005''.
(C) Effective date.--The amendments made by this paragraph
shall apply to property placed in service after December 31,
2001.
(13) Phaseout of credit for electric vehicles.--
(A) Temporary extension of phase out.--Section 30(b)(2) is
amended--
(i) in the matter preceding subparagraph (A), by striking
``December 31, 2001'' and inserting ``December 31, 2002'',
(ii) in subparagraph (A), by striking ``2002'' and
inserting ``2003'',
(iii) in subparagraph (B), by striking ``2003'' and
inserting ``2004'', and

[[Page S5495]]

(iv) in subparagraph (C), by striking ``2004'' and
inserting ``2005''.
(B) Extension of termination date.--Section 30(e) is
amended by striking ``December 31, 2004'' and inserting
``December 31, 2005''.
(C) Effective date.--The amendment made by this paragraph
shall apply to property placed in service after December 31,
2001.
(14) Generalized System of Preferences.--Section 505 of the
Trade Act of 1974 (19 U.S.C. 2465) is amended by striking
``September 30, 2001'' and inserting ``December 31, 2002''.
(15) Andean Trade Preference.--Section 208(b) of the Andean
Trade Preference Act (19 U.S.C. 3206(b)) is amended to read
as follows:
``(b) Termination of Duty-Free Treatment.--No duty-free
treatment extended to beneficiary countries under this title
shall remain in effect after December 31, 2002.''.
(16) Temporary increase in amount of rum excise tax covered
over to puerto rico and virgin islands.--Section 7652(f )(1)
(relating to limitation on cover over of tax on distilled
spirits) is amended to read as follows:
``(1) $10.50 ($13.25 in the case of distilled spirits
brought into the United States after June 30, 1999, and
before January 1, 2003), or''.
(c) Effective Date.--Except as otherwise provided in this
section, the amendments made by this section shall apply to
taxable years beginning after December 31, 2001.
(d) Revenue Offset.--The Secretary of the Treasury shall
adjust the reduction in the highest marginal tax rate in the
table contained in section 1(i)(2) of the Internal Revenue
Code of 1986, as added by section 101(a) of this Act, as
necessary to offset the decrease in revenues to the Treasury
for each fiscal year resulting from the amendments made by
this section.

The PRESIDING OFFICER. The Senator from New York is recognized for 1
minute.
Mr. SCHUMER. Mr. President, this is a simple amendment. We have had
two worries mainly about this tax bill. One is that the dollars go too
much to the wealthiest people and not enough to the middle class, and
we have had a lot of amendments thereon. The second is that it breaks
fiscal discipline. This amendment deals with that second category.
What is missing in this tax bill bothers me as much as what is in it,
maybe more. We do not do any of the tax extenders which we know we will
do later this year. We do not change the alternative minimum tax hardly
at all, which will catch 39 million people by the time this 10-year
bill is finished.
This amendment includes both of those so we do not have to come back
and do them and break the $1.35 trillion that we said we will keep and
lowers the top rate to make room for those.
It is a fiscally responsible amendment. I would challenge anyone who
wants to vote against it to make a pledge that they will not vote at a
later time outside the budget cap for these two issues.
I thank you, Mr. President.
The PRESIDING OFFICER. The Senator's time has expired.
The Senator from Texas.
Mr. GRAMM. Mr. President, this amendment raises the whole extender
question, something the Finance Committee will be looking at later this
year. The bipartisan bill before us does not address this issue.
This amendment is nongermane to the bill, and I raise a point of
order that it is nongermane.
Mr. SCHUMER. Mr. President, I move to waive the point of order and
ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The question is on agreeing to the motion. The clerk will call the
roll.
The assistant legislative clerk called the roll.
The PRESIDING OFFICER (Mr. Burns). Are there any other Senators in
the Chamber desiring to vote?
The yeas and nays resulted--yeas 46, nays 54, as follows:

[Rollcall Vote No. 163 Leg.]

YEAS--46

NAYS--54

Allard
Allen
Baucus
Bennett
Bond
Breaux
Brownback
Bunning
Burns
Campbell
Chafee
Cochran
Collins
Craig
Crapo
DeWine
Domenici
Ensign
Enzi
Fitzgerald
Frist
Gramm
Grassley
Gregg
Hagel
Hatch
Helms
Hutchinson
Hutchison
Inhofe
Jeffords
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Roberts
Santorum
Sessions
Shelby
Smith (NH)
Smith (OR)
Snowe
Specter
Stevens
Thomas
Thompson
Thurmond
Voinovich
Warner
The PRESIDING OFFICER. On this vote the yeas are 46, the nays are 54.
Three-fifths of the Senators duly chosen and sworn not having voted in
the affirmative, the motion is rejected.
The point of order is sustained and the amendment falls.

____________________