[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

     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
     Specter
     Stabenow
     Torricelli
     Wellstone
     Wyden

                                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

     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 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.

                          ____________________