[Congressional Record Volume 147, Number 144 (Thursday, October 25, 2001)]
[Extensions of Remarks]
[Pages E1929-E1930]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               ECONOMIC SECURITY AND RECOVERY ACT OF 2001

                                 ______
                                 

                               speech of

                          HON. KAREN McCARTHY

                              of missouri

                    in the house of representatives

                      Wednesday, October 24, 2001

  Ms. McCARTHY of Missouri. Mr. Speaker, I rise to express my support 
for enacting an economic stimulus package, and to voice my opposition 
to H.R. 3090, the Economic Stimulus and Recovery Act in its current 
form.

[[Page E1930]]

  A more fiscally responsible approach to induce economic growth would 
combine tax cuts and increased spending within the confines of Federal 
Reserve Chairman Greenspan's cost recommendations. Mr. Greenspan 
recommended a total package not to exceed 1 percent of GDP or $100 
billion including the relief measures already enacted by Congress. The 
tax cuts must contain taxpayer rebate checks for those who did not 
receive them last summer, enhanced expensing for business capital 
purchases, and marginal tax rate adjustments to foster spending. The 
elements of the package should be limited to those projects which will 
provide immediate economic impact, such as extended unemployment 
benefits, health care coverage for furloughed workers, and increased 
security measures. In order to continue bipartisanship in our Congress, 
Democrats and Republicans should work together to enact a measure 
containing these provisions.
  An effective plan must focus on the people most impacted by the 
economic downturn. Immediate relief and direct payments through rebate 
checks for the 30 million Americans who were omitted from the tax 
relief provided earlier this year must be an integral part of the 
stimulus package. These individuals are most in need and most likely to 
spend their rebates, making both common sense and economic sense.
  Tax cuts should be temporarily targeted to induce investment and 
encourage cash flow in the economy. The temporary nature encourages 
individuals and business to immediately take advantage of proposals 
rather than wait several years to invest in new infrastructure or 
capital markets. Changes in expensing and capital loss will meet these 
goals by proving short term investment incentives to businesses and 
individuals. H.R. 3090 contains many unnecessary provisions, such as 
the repeat of the corporate alternative minimum tax retroactive to 
1986. This will give 50 of the wealthiest corporations $20 billion in 
refunds.
  Sufficient funds should be available to ensure continued health 
coverage and unemployment benefits in the case of a prolonged 
recession. Providing COBRA health--insurance should be a top priority 
to guarantee the continued health for those unable to purchase their 
own coverage, such as victims and their families or displaced workers. 
H.R. 3090 is inadequate to address the nation's needs in these areas. 
We must increase security infrastructure spending. We should also 
include additional investments, such as those contained in the 
Bioterrorism Protection Act of 2001, in our nation's public health 
system to better respond to bioterrorism threats. Not only does this 
protect our country from future attacks, it provides jobs and cash flow 
into the economy. Irresponsibly spending too much without offsetting 
the cost will lead to future long term budget deficits and interest 
rate increases.
  Mr. Speaker, I support a bipartisan economic stimulus package that 
will effectively and responsibly improve our economy and win the war on 
terrorism without raiding Social Security and Medicare.

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