[Congressional Record Volume 147, Number 155 (Friday, November 9, 2001)]
[Senate]
[Pages S11642-S11643]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   REVITALIZING THE AMERICAN ECONOMY

  Mrs. CARNAHAN. Madam President, I thank my colleague from Alaska and 
my colleague from Illinois for their kindness this morning.
  I add my voice to those who believe we must act quickly to revitalize 
the American economy. Even before the terrorist attacks, our economy 
was slowing down. New reports now indicate the unemployment rate is 
rising, that consumer confidence is low, and that businesses are 
postponing investments. The convergence of these important indicators 
spells trouble for us in the months ahead. That is why Congress must 
act now.
  The American people expect us to find solutions. All across America, 
the fires of patriotism are burning brightly while in the Congress we 
smolder in indecision. In fact, we in this Congress can learn from the 
unity and patriotism of the American people. They want us to work 
together across party lines to do the urgent business of this Nation.
  Leading economists in the country have repeatedly told us what needs 
to be done. We can jump-start our sluggish economy, we are told, by 
providing immediate tax relief and economic assistance targeted to 
those who are most likely to invest and spend. These economists have 
also warned us that if we abandon fiscal discipline, long-term interest 
rates will rise. It is time for us to heed their sensible advice.
  The Democratic and Republican leaders of the Budget Committee in both 
the House and the Senate have laid out very useful principles for an 
effective stimulus package. They all agree the legislation ought to be 
immediate, it should be temporary, and it should be focused on 
individuals and businesses most likely to spend the stimulus dollars. I 
believe if we abide by these bipartisan principles, we can craft a 
stimulus package that would give a boost to the American economy, and 
we can do that without jeopardizing our long-term fiscal health.
  Using these guidelines, we can craft a package that will garner 
support from both parties and one that President Bush can sign quickly. 
Our goal is to get the Nation back to work again and back to growing 
again. By getting cash into the hands of businesses, we can create new 
jobs and new investments in plants and equipment.
  A number of promising ideas have been suggested that would provide 
this needed cash infusion into businesses. It has been proposed that 
businesses could accelerate the rate at which they depreciate new 
assets. Doing this would help businesses of all sizes decrease their 
costs this year and free up investment capital.
  For example, let me tell my colleagues about a company in my hometown 
of Rolla, MO. It is called Brewer Science, Inc. It is a successful and 
growing company that employs 235 people. It produces the chemicals used 
in the manufacture of integrated circuits. The proposed increase in 
allowable deductions would enable this small business to expand faster. 
Additional cash in this business could be spent on additional research 
and development, and that is the kind of investment and expansion that 
will get our economy back on track.
  Increasing business investments address only part of the problem. 
While the economy goes through its natural business cycle, many 
Americans are facing immediate unemployment. Creating new jobs for 
these workers is crucial, but it will take some time. In the meanwhile, 
we must help these families in crisis. Last Friday, the Labor 
Department released some alarming figures. Seven hundred thousand 
Americans lost their jobs in October. The unemployment rate surged to 
5.4 percent this month. There are now a total of 7.7 million Americans 
out of work. These are staggering numbers. Families all across America 
are hurting.
  Shortly after September 11, I encouraged my colleagues to act quickly 
on

[[Page S11643]]

behalf of the workers in the airline industry who lost their jobs 
abruptly. To my great regret, they did not act.

  At that time, many in this body claimed it was appropriate to wait. 
They said we ought to deal with assistance to the unemployed when we 
consider broader legislation to stimulate the economic recovery. Now 
almost 8 million Americans are worrying about how they will pay the 
rent or their mortgage. Millions of American parents have lost their 
health care insurance, and they are worrying what they will do if a 
child gets sick. Millions of families are wondering how they will put 
food on their Thanksgiving table this year. It would be unconscionable 
to tell these people to wait any longer. Extended unemployment benefits 
and help with health care coverage must be included in a stimulus 
package.
  By extending unemployment compensation, we will be putting dollars 
into the hands of people who need the money immediately for their basic 
needs. The money will be spent quickly, which in turn provides the 
needed remedy for an ailing economy. We have an opportunity to do the 
right thing at the right time and for the right reasons. We must act 
quickly and in a bipartisan fashion. We cannot afford to wait until 
more people are laid off or more businesses fail. We must not leave our 
families to struggle without help or without hope.
  If we have the will, we can forge a just and reasonable compromise 
that will ease the pain of this recession. When Holocaust survivor Elie 
Wiesel was asked what was the most important commandment, he replied: 
Thou shall not sit by idly. That response points up the importance of 
acting when we have a chance to influence an outcome. During this time 
of crisis, let it not be said of the U.S. Congress that we sat idly by. 
Let us act with courage, and let us act now.
  The ACTING PRESIDENT pro tempore. The Senator from Illinois.
  Mr. DURBIN. I congratulate my colleague from Missouri. She said in 
just a few moments exactly what we need to hear as we consider this 
economic stimulus package.
  I believe she has put a finger on it: We are being called on, across 
America, to rally behind our flag, our President, and our cause, that 
we should make certain when it comes to the economic stimulus package, 
we also keep in mind that all America is involved. It is the working 
families in America paying the payroll taxes into the Social Security 
trust fund who are funding all we are doing. The money we are spending 
to defend America against terrorism, the money we are spending to 
rebuild New York, the money we are spending to help the airline 
industry, the money we are spending for an economic stimulus all comes 
out of the Social Security trust fund, and all of that money comes from 
the payroll workers across America.
  When we talk about invigorating this economy and getting it moving 
forward again, what a difference in approach we have between the two 
political parties. On the House side, the Republicans came up with a 
stimulus package which I am afraid doesn't meet the test of encouraging 
consumer spending, doing it in a timely fashion, and not damaging the 
economy. Instead, what the House Republican package came up with was, 
sadly, a great deal of tax relief for the biggest corporations in 
America. This is profiteering in the name of patriotism.
  Consider for a minute that these corporations would receive rebate 
checks for 15 years' worth of Federal income tax under the stimulus 
plan supported by the House of Representatives. IBM would receive $1.4 
billion from the Social Security trust fund; Ford, $1 billion; General 
Motors, $833 million. The list goes on and on. Billions and billions of 
dollars in corporate relief from the House Republican stimulus plan and 
precious little or nothing for the workers across America.

  We know what will get this economy moving again. Give some money to 
the people who are having a tough time--having just lost their jobs--to 
keep their families together, and they will spend it. Of course they 
will. Give the people who just lost their jobs help in paying for 
health insurance, and they will use that help because they are as 
frightened as anyone that family members or their children will not be 
protected with health insurance. Those are the pillars of the Senate 
Democratic plan for stimulus: That we help those who have just been 
laid off, who are facing a difficult time.
  We also provide tax rebates for 45 million low-income taxpayers who 
received no rebate earlier this year. People pay payroll taxes, pay 
into the Social Security trust fund. This time around, we believe they 
should receive some tax assistance.
  We have business tax cuts, as well--a 10-percent bonus appreciation. 
I heard from businesses across Illinois: Give us some help in 
depreciating some of the things we purchase and we will purchase more. 
That can move the economy forward. It is a sensible plan.
  We want to extend unemployment benefits an additional 13 weeks in all 
50 States. This is not a radical suggestion. This is the course 
followed by President Bush's father. In the teeth of a recession, he 
said: We have to stand by the people who have lost their jobs. In 
America we have 7.5 million Americans who are out of work. We ought to 
stand by them and any laid off in the near future. We need to expand 
coverage to the people who do not receive unemployment insurance today.
  We also know when it comes to this health insurance, unless we help 
people buy health insurance once they have lost a job, they will have 
none; they are not likely to do so. Just do the math. The average 
unemployment check is $230 a week; the average payment for private 
health insurance when you have lost your job is $588 a month. It just 
does not work.
  We have quite a contrast between the Republican approach of getting 
this economy moving forward and the Democratic approach. The Republican 
approach embodies tax cuts for the wealthy and profitable corporations 
and nothing for homeland security. I hope I get a moment to get to this 
issue.
  When it comes to tax cuts for the wealthy, by speeding up the rate 
cuts, the Republican plan would give a new $16,000-a-year tax break to 
the wealthiest 1 percent of Americans. Those are people making over $1 
million a year, receiving $16,000 from the Republican tax stimulus. 
What a stimulus that is: For citizens making $1 million a year, we want 
to give you $16,000 more. That is not going to put money back into the 
economy, not nearly as much as helping the economy by giving the money 
to the average working family, the middle-income family across America.
  When we give every millionaire a check from the Treasury for $16,000, 
that is money being thrown away that could be used to deal with 
economic stimulus. That $16,000 goes right out of the Social Security 
trust fund. Payroll taxes paid by average workers into the Social 
Security trust fund are being spent to give a $16,000-a-year check to 
the wealthiest people in America--and to do it for 4 years under the 
Republican plan.
  The Republican plan, in addition, with the accelerated tax cuts, 
costs $27 billion in 2002--next year--and increases to $121 billion 
over 10 years. Remember the advice we receive from people: Don't do 
anything that will hurt us in the long term. They are going to 
basically eat up any surplus we have in the future to give tax cuts to 
the wealthiest people in this country. That makes no sense at all.

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