[Congressional Record Volume 147, Number 142 (Tuesday, October 23, 2001)]
[House]
[Pages H7208-H7209]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         ECONOMIC STIMULUS BILL

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Maine (Mr. Allen) is recognized for 5 minutes.
  Mr. ALLEN. Mr. Speaker, over the past few days, I have been meeting 
with constituents in Maine, including a couple of meetings with fire 
department, police department, and EMT personnel about what they have 
been going through since September 11. My colleague, the gentleman from 
Maine (Mr. Baldacci), and I did one of those meetings together; and I 
did another one yesterday morning in Portland.
  What those people said to me over and over again is we need help with 
the added costs that we have run up since September 11; and, after all, 
this was an attack on the United States and not on the State of Maine 
or the City of Portland or the towns in my district or anywhere else in 
the country. Second, they said we need training to cope with these new 
threats, chemical and biological threats or other threats, that we are 
not entirely prepared for. And, third, they said we need better 
communication with Federal officials, State officials, and others, in 
fact with each other, in order to do the jobs that we have set out to 
do.
  But when we look at what is happening to our States right now, we 
notice several things. First, costs are up. Costs are up because of 
overtime and all sorts of additional tasks that are being undertaken 
since September 11. Revenues are down because of the slowing economy. 
Sales taxes have dropped; and other State revenues are down, so that 
for many States deficits are looming. In fact, for more than half a 
dozen States in this country, the deficits look like they could be over 
$1 billion.
  Tomorrow, this Congress, back in session, will take up an economic 
stimulus bill; and I have to say how disappointed I am in the bill that 
has been reported out by the Committee on Ways and Means on a partisan, 
not a bipartisan, basis.
  First of all, it provides huge tax breaks to some of the largest 
corporations in the country. Second, it will cut State revenues, I said 
cut State revenues, by $5 billion a year for each of the next 3 years. 
And, third, it is, as I said, not a bipartisan bill, not in the spirit 
of unity and resolve that we have shown in this Congress and around the 
country since September 11 but a partisan bill.
  Let me touch for a moment on the tax cuts to corporations, largely 
coming from the repeal of the corporate alternative minimum tax and 
certain AMT tax credit carry-forwards, a technical term. But let us 
look at this.
  People around this country, many of them, got $300 for a tax rebate a 
little while ago. IBM, if the bill passes tomorrow and is signed by the 
President and passed by the Senate, would get $1.4 billion in a tax 
rebate. General Motors would get $833 million in a tax rebate. General 
Electric would get $671 million in a tax rebate.
  What sense does that make? I cannot explain that to people back in 
Maine. We have $25 billion going to some of the largest and most 
successful corporations in this country. They are good companies, they 
work hard; but these corporations do not need $25 billion in tax 
rebates now.

                              {time}  2045

  Let me go quickly to another point. I mentioned what has been 
happening in our States. Revenues are down; costs are up. A report by 
the Center on Budget and Policy Priorities shows that the States 
collectively will lose $5 billion in revenues over each of the next 5 
years precisely because of the tax changes that are going to be made at 
the Federal level if the House bill passes tomorrow.
  Now, why does that happen? It happens because so many States, in 
fact, 49, have their tax laws tied to the Federal tax laws, so when we 
make a change here, it affects State revenues. What does this mean for 
economic stimulus? It means that State revenues will be cut. They will 
have to increase taxes or lay off people because of the changes that we 
make. What will that do? It will slow down the economy.
  So the steps that are proposed to be taken by the Republican majority 
tomorrow are steps that will slow down economic activity in our states. 
It makes no sense.
  Now we are engaged in a war on terrorism. We are engaged in conflict

[[Page H7209]]

abroad, and we are engaged in a major effort here at home to protect 
our citizens. We are asking our citizens for sacrifice; we are asking 
our citizens to pull together.
  Tomorrow, we will have an economic stimulus package from the House 
Committee on Ways and Means on a partisan basis which hands out $25 
billion to the largest corporations in this country and will take away 
$5 billion a year from our State governments at a time when they need 
it most.
  Mr. Speaker, the majority should be embarrassed by this legislation 
that is coming to the House floor tomorrow. These major American 
companies in energy areas, in automobiles, they should be embarrassed 
by this $25 billion handout. We should turn our back on it and develop 
a real economic stimulus package for the people of this country.

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