[Congressional Record Volume 147, Number 172 (Wednesday, December 12, 2001)]
[House]
[Pages H9324-H9325]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  FEDERAL ECONOMIC STIMULUS PROPOSALS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Texas (Mr. Rodriguez) is recognized for 5 minutes.
  Mr. RODRIGUEZ. Mr. Speaker, the Federal Government recently announced 
what we already knew, that the economy has been in recession since last 
March. According to the Labor Department, from September to October, 
the unemployment rate jumped from 4.9 percent to 5.4 percent, the 
largest 1-month jump since February of 1986. There are now 7.7 million 
unemployed Americans across this country, an increase of over 1,650,000 
since March. The terrorist attack of September 11 only hastened the 
economic downturn and highlighted the need for a Federal response to 
stimulate the national economy.
  Congress, as we all know, is locked in the debate about how best to 
quickly revive the U.S. and global economy. We need a response that is 
tailored to meet the problem, one that puts money in the hands of 
consumers, one that stimulates job creation, one that helps those most 
immediately hurt by job losses.
  Following the terrorist attack on September 11, the House and Senate 
budget committees issued a set of principles for the economic stimulus 
package. These principles stated that any stimulus measure should, 
first, be limited in duration; secondly, that it not cause the Federal 
Government to have an on-budget deficit; thirdly, that it not result in 
high, long-term interest rates; fourthly, that it be approximately $100 
billion in size; and, finally, that the cost should be fully offset in 
the future to ensure maximum repayment of our $5.8 trillion Federal 
debt. I repeat that, that the cost be fully offset in the future to 
ensure maximum repayment of that debt. And that is an important point, 
that we have to make sure that we pay for what we expend.

                              {time}  1830

  Sadly, the House of Representatives' leadership passed a tax bill 
disguised as an emergency stimulus package which ignored each of those 
principles. The misnamed Economic Security and Recovery Act, which 
basically only stimulated the corporations, provides little true 
economic stimulation to lessen our Nation's recession and will delete 
the U.S. Treasury of $274 billion over the next 10 years. Some 58 
percent, or $161 billion, of this total would come from our Social 
Security and Medicare trust funds. It is coming at the backs of our 
senior citizens and their pensions.
  In the long run, the bill is likely to increase the long-term 
interest rates,

[[Page H9325]]

which would raise home mortgage rates and, thereby, threaten the long-
term growth of the economy. The fiscal discipline of the last 8 years 
that produced the largest budget surpluses in decades would be wiped 
out by this legislation, especially when combined with a $2 trillion 
tax reduction bill passed earlier by this Congress.
  The bill includes long-term tax benefits for the wealthiest 2 percent 
of our taxpayers, $24 billion in retroactive tax relief for the largest 
corporations in America, accelerating the reduction in the top 
individual tax brackets affecting those persons making more than 
$297,000 per year, and provided $21 billion in tax benefits to U.S. 
corporate profits made outside the U.S. as long as the money is kept 
outside this country.
  A scant 11 percent of the overall benefits of the bill would benefit 
those that are unemployed due to the downturn of the economy. That is 
11 cents out of every dollar would only go for those that are in need.
  The irresponsible failure to offset the cost of those tax cuts will 
leave us with future budget deficits and upward pressure on long-term 
interest rates. I would repeat that this bill would come and create 
additional deficits for our country.
  Finally, the passage of this bill, and as we look at a bill, we have 
to make sure that it helps those that are in need and that it looks at 
stimulating the economy. It should follow the balanced alternatives 
that would quickly put money in the hands of people who have been hurt 
by the economic downturn and most likely to spend it and stimulate the 
economy. September 11 not only hurt New York, but it hurt everyone. It 
hurt those people on the borders that are having to wait. I ask that we 
really take into consideration and that we seriously look at what we 
are doing and that we vote for an appropriate piece of legislation.

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