[Congressional Record Volume 148, Number 43 (Wednesday, April 17, 2002)]
[Senate]
[Page S2832]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 2181. A bill to review, reform, and terminate unnecessary and 
inequitable Federal subsidies; to the Committee on Governmental 
Affairs.
 Mr. McCAIN. Mr. President, today, I am re-introducing 
legislation to establish a process to evaluate Federal subsidies and 
tax advantages received by corporations to ensure they are in the 
national interest, not the special interest. This bill, ``The Corporate 
Subsidy Reform Commission Act,'' is identical to a bill I introduced in 
previous years.
  Because we face diminishing resources, we must prioritize our level 
of Federal spending. Therefore, corporate welfare simply must be 
eliminated.
  There are more than 100 such corporate subsidy programs in the 
Federal budget today, requiring the Federal Government to spend 
approximately $65 billion a year.
  Terminating even some of these programs could save taxpayers tens of 
billions of dollars each year, money that could be used to cut taxes 
for lower-income Americans, bolster Social Security, pay down the 
national debt, and strengthen our military forces.
  In years past, Congress has insisted that it would eliminate the 
existence of this corporate welfare, but virtually no such program has 
been eliminated. Consequently, taxpayer dollars continue to be wasted 
as I speak.
  The Corporate Subsidy Reform Commission Act aims to remove the 
special treatment given to politically powerful industries and restore 
all taxpayers to a level playing field. It defines inequitable 
subsidies as those provided to corporations without a reasonable 
expectation that they will return a commensurate benefit to the public.
  The Act excludes any subsidies that are primarily for research and 
development, education, public health, public safety, or the 
environment. Also excluded are subsidies or tax advantages necessary to 
comply with international trade or treaty obligations.
  The Act would create a nine-member commission nominated by the 
President and the Congressional leadership. Federal agencies would be 
required to submit to the Commission, at the time of the 
Administration's next budget, a list of subsidies and tax advantages 
that each agency believes are inequitable.
  The Commission will provide recommendations to either terminate or 
reduce the corporate subsidies. The President has the authority under 
the Act to either terminate consideration of the Commission's 
recommendations, or submit the Commission's recommendations to the 
Congress as a legislative initiative.
  The Congress would then have four months to review the Commission's 
recommendations that have been endorsed by the President. At that time, 
the actions of all involved committees in each respective legislative 
body would be sent to the floor for debate, under expedited procedures.
  Many Federal subsidies and special-interest tax breaks for 
corporations are unnecessary, and do not provide a fair return to the 
taxpayers who bear the heavy burden of their cost. If a corporation is 
receiving taxpayer-funded subsidies or tax breaks that are unsupported 
by a compelling benefit to the public, the subsidy should be ended.
  Does it make sense for the Agriculture Department to spend $80 
million a year on a program, the Market Access Program, that subsidizes 
the overseas advertising campaigns of cash-strapped corporations such 
as Pillsbury, Dole, and Jim Beam?
  Why should the Commerce Department spend $211 million a year on the 
Advanced Technology Program to give research grants to consortiums of 
some of the largest and richest high-tech companies in this Nation?
  Where is the accountability to taxpayers here? They have been 
shortchanged at the expense of the special interests. This undermines 
our Nation's fiscal house, and impairs Congress' ability to respond to 
truly urgent needs such as health care, education, debt reduction, and 
national security.
  Unfortunately, the pervasive system of pork-barreling and special 
interest legislating is speeding along unabated in Washington. Instead 
of pursuing our Nation's priorities, both parties continue to spend 
without accountability. During my service in the Senate, I have worked 
to eliminate wasteful earmarks in appropriations bills. And yet this 
year alone, about $15 billion in pork barrel spending was approved by 
the Senate without going through any merit-based review process.
  I would rather eliminate corporate subsidies and inequitable tax 
subsidies without resorting to a commission. But we know that the 
influence of the special interests will prevent that effort from 
succeeding unless forceful action is taken.
  We need a credible process to identify corporate pork and eliminate 
it. This legislation is the first important step in alleviating the 
public burden of unnecessary corporate subsidies and tax 
breaks.
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