[Congressional Record Volume 149, Number 35 (Wednesday, March 5, 2003)]
[Senate]
[Pages S3112-S3113]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           ECONOMIC STIMULUS

  Ms. STABENOW. I move now to another very important topic, and that is 
the question of stimulating this economy. We know that to get out of 
the massive debt that is being accumulated, we have got to stimulate 
the economy. We have to reverse the trend right now. We have seen over 
2 million private sector jobs lost in the last 2 years. We have to go 
back to the Eisenhower Presidency to find those kinds of numbers, those 
kinds of huge private sector losses and this massive debt. We know that 
has to be turned around.
  Part of what needs to happen to begin to get us back to the balanced 
budget and out of this massive debt, so we can protect Social Security 
and Medicare, is to stimulate the economy and create jobs. I am very 
proud to be a part of an effort to do that.
  We have in front of us a Democratic plan that has been introduced by 
our leader and Members in our caucus. It will provide immediate relief 
for families through a broad-based tax cut that is on the front end, a 
tax cut to the middle class and to those in our country who we know 
will turn around and buy those school clothes or a new car--and coming 
from Michigan, I am always hopeful it is a new American-made car--and 
purchasing that new home and all of those things that stimulate the 
economy, rather than giving the tax relief to somebody who has three 
homes or has five cars and is not likely to buy another one.
  What we want is to put that tax cut in the hands of middle-class 
people, working people, who will spend it now, so that our businesses 
will see the demand. Right now, newspaper headlines this week in 
Michigan relate to the auto industry cutting back on the building of 
new cars because the demand is not there.
  We have a proposal that relates to demand, not trickle-down economics 
from the top but demand, to put money in the pockets of people who will 
spend it. That is exactly what our proposal would do. It would provide 
about a $1,200 tax cut this year for a family of four. It would also 
provide tax incentives to encourage businesses to invest and create 
jobs, and it would increase the current multiyear bonus depreciation so 
if one invested now, they would get a bonus depreciation, which is very 
important.
  It would triple the amount of investments small businesses can write 
off immediately, and this is very important because the majority of new 
jobs are coming from small business. We need to be focusing on tax 
policies that will help and support job creation in small business.
  It would provide a 50-percent tax credit in 2003 to help small 
businesses pay for their share of health insurance premiums. This 
relates very much to the broader question of health care and where we 
are going.
  Later today, we are going to be introducing legislation to cut the 
price on prescription drugs so we can bring that health insurance 
premium down for small businesses. It would provide a 20-percent tax 
credit in 2003 for businesses investing in broadband, high-speed 
Internet infrastructure, focusing on rural areas, underserved areas. 
This is very important. We are in a high-tech new economy, and 
broadband access is critical as we move forward to be able to compete 
in the new world of high technology and helping small businesses 
invest, particularly in our rural areas, the hard-to-reach areas. It is 
an important part of our economic development structure.
  Another important piece we believe must be addressed now is to 
provide $5 billion for hometown security that would make sure that as 
we are investing in the economy, we are also making sure we are safe at 
home. When people have an emergency, they call 9-1-1. We want to make 
sure people on the other end of that line have the communications 
equipment, the technology, the training, and the personnel

[[Page S3113]]

to respond in a way that will keep us safe.

  We also know that part of what is happening economically across the 
country now is that we are seeing a ripple effect because the majority 
of States are in a financial crisis because of the downturn in the 
economy and other factors, so that as they lay off, and people are 
spending less because they are laid off from State or local 
governments, there is this ripple effect throughout the economy.
  In addition to putting money directly into people's pockets, we also 
propose putting money into the pockets of the small business owner. We 
propose providing dollars in immediate aid to State and local 
governments so that we are not seeing that ripple effect in terms of 
people losing their jobs, losing purchase power in the economy. We all 
know common sense says if we can provide money to State, local, and 
municipal governments and they can focus on immediate infrastructure 
such as rebuilding roads, water systems, sewer systems, we create good-
paying jobs by doing that, such as construction jobs. We take burdens 
off local property taxes, which helps individuals and businesses, and 
we can again stop the bleeding that is occurring right now in the 
States with more and more people losing their jobs and thus losing 
purchasing power in the economy. This is of great urgency.
  We come to the floor each day to ask that we immediately go to an 
economic stimulus package that will get America back to work, will put 
money in the pockets of individuals and businesses that can get the job 
done, that can stimulate this economy, to help our hometown security, 
and to make sure that we are helping to rebuild America, which also 
rebuilds jobs.

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