[Congressional Record Volume 148, Number 8 (Wednesday, February 6, 2002)]
[Senate]
[Pages S386-S387]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CONTINUING WORK ON THE STIMULUS PACKAGE
Mr. BOND. Mr. President, I thank my colleagues from Georgia and from
Texas for presenting some very cogent arguments as to why we need to
keep working on this stimulus bill. I am disappointed by the sounds I
am hearing that it is going to be pulled. We need stimulus in this
economy, and we have already adopted an amendment that I proposed, on
an overwhelmingly bipartisan vote, to allow small businesses to write
off immediately their investments.
As I have said, I have two more amendments, frankly, in addition,
that are pending at the desk that I think my colleagues, if given an
opportunity to vote on them, would vote for overwhelmingly.
First is a measure that addresses the tax benefits for the armed
services members who served in the operations in Somalia. I don't think
there would be many on this floor who would not vote for it if they had
a chance. It provides that those who served during peacekeeping efforts
in Somalia should receive the same tax benefits in the same manner as
if such services were performed in a combat zone.
As we fight the global reach of the terrorist networks, we are asking
our men and women in uniform to perform at the very highest levels and
at an unprecedented operational tempo. This amendment I filed would
allow the men and women who served within the hostile fire zone in
Somalia to file for the same tax breaks afforded to military forces who
serve in a combat zone. Anybody who has seen the movie ``Blackhawk
Down,'' based on the real world conflict in Somalia, will understand
that our forces who served in that conflict were in a combat zone.
The Pentagon criterion for hostile fire pay requires the duty is
``event based, payable to members certified that have been subject to a
hostile fire. . . .''
Former SSG Kenneth Chatman, from Oran, MO, served the Army for 16
years as an avionics electronics repair technician. He served in
Somalia from August of 1993 to January of 1994 with the 101st Airborne
Division, air assault. The only tax exemption soldiers in Somalia got
was when they transited to some other zone. In his case, he flew over
Egypt and got a tax-free month. That is unjust. I believe anybody who
appreciates the battle that our military are taking on against
terrorism will understand that the sacrifices made by our forces
require that we give these brave men and women the same tax breaks that
others under direct fire receive.
The second amendment I have is truly a stimulus measure. It is
designed to increase the amount of venture capital available to small
business. The Small Business Administration Small Business Investment
Company Program--the SBIC Program--has a significant role in providing
venture capital to small businesses seeking investments in the range of
$500,000 to $3 million.
Small Business Investment Companies are Government-licensed,
Government-regulated, privately managed, venture capital firms created
to invest only in original debt or equity securities of U.S. small
businesses that meet size standards set by law.
In the current economic environment, the SBIC Program represents an
increasingly important source of capital for small enterprises--small
enterprises that are struggling to get back on their feet, to grow now
in the face of this economic recession we have been in for well over a
year. They need to have funding. While debenture SBICs qualify for SBA-
guaranteed borrowed capital, the Government guarantee forces a number
of potential investors--namely, pension funds--to avoid investing in
SBICs because they would be subject to tax liability for unrelated
business tax income--UBTI. Thus, they don't put their money in it. As a
result, 60 percent of the private capital potentially available to
invest for these SBICs to create jobs, put men and
[[Page S387]]
women to work, create wealth in the community, is ``off limits.''
My amendment would correct that problem by excluding Government-
guaranteed capital borrowed by debenture SBICs from debt for purposes
of the UBTI rules.
When we are looking at the need to diversify pension funds, this
gives those who hold pension funds who seek retirement security an
opportunity to use Government-guaranteed funds for investment in small
businesses in a professionally managed small business investment
company the opportunity to put their retirement funds to work and
create jobs in their community, create growth and opportunity for men
and women who need those jobs now.
I hope and expect, once again, that if this targeted small business
stimulus incentive were put up on this floor for a vote, it would be
overwhelmingly adopted and we would see jobs and growth of small
business.
I urge the leader, the Senator from South Dakota, to give us an
opportunity to continue to work on this very important package, which
has some good things in it and, if we had the chance to work on it,
would have more good things in it.
I yield the floor.
The PRESIDING OFFICER. The Senator from New York is recognized.
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