[Congressional Record Volume 149, Number 73 (Thursday, May 15, 2003)]
[Senate]
[Pages S6421-S6428]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT OF 2003--Continued
Mr. BAUCUS. Mr. President, what is the regular order?
The PRESIDING OFFICER. The reconciliation act, and it is necessary to
set aside the pending Burns amendment.
Mr. BAUCUS. I ask unanimous consent that the Burns amendment be set
aside.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 614
The PRESIDING OFFICER. The business now is the amendment of the
Senator from Michigan.
Who yields time?
Ms. STABENOW. Mr. President, I ask unanimous consent that Senator
Mikulski be added as a cosponsor of the amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Ms. STABENOW. Mr. President, I urge my colleagues to support this
very important amendment for the seniors of this country. This does
that. First and foremost, before we pass the dividend tax cut and the
top rate tax cut, we will proceed to develop and pass a comprehensive
prescription drug benefit that is equivalent to what we receive in the
Senate. I have heard many colleagues express the concern I share, which
is that the seniors and the disabled of this country ought to have the
same ability to have the prescription drug coverage we as Federal
employees do.
This amendment simply sets our priorities straight. It says before we
proceed with these two tax cuts, we will pass a comprehensive
prescription drug benefit based on FEHBP, the most common portion of
which is used by Senate and House Members. I urge my colleagues to
support this amendment.
The PRESIDING OFFICER. Who yields time? The Senator from Iowa.
Mr. GRASSLEY. Mr. President, I oppose this amendment. I feel exactly
about Medicare and prescription drug issues as the Senator from
Michigan, but this is not the way to do it. This amendment reduces our
jobs and growth package even before the Finance Committee takes up a
comprehensive prescription drug benefit and Medicare improvement bill.
I hope everybody knows that I am very committed to reporting a $400
billion bill out of the Finance Committee, and doing it this summer,
hopefully within the month. This will add a comprehensive prescription
drug benefit for seniors.
The amendment before us jumps the gun. I am working in a bipartisan
way on a prescription drug policy that fits within that $400 billion
framework in our budget resolution. In fact, I have a 4 o'clock meeting
today with Senators on that issue that, obviously, I am not going to be
able to keep because of these rollcall votes. We need to keep the jobs
and growth package complete.
The PRESIDING OFFICER. The Senator's time has expired.
Mr. GRASSLEY. Mr. President, I want to raise a point of order. This
upsets the balance of our bill. This language is not germane to the
measure before the Senate. Therefore, I raise a point of order under
section 305(b)(2) of the Congressional Budget Act.
The PRESIDING OFFICER. The Senator from Michigan.
Ms. STABENOW. Due to the fact the budget resolution does not contain
enough revenue to do what our distinguished chairman has just
indicated, this amendment is necessary to make that happen. Pursuant to
section 904 of the Congressional Budget Act of 1974, I move to waive
the applicable sections of that act and the budget resolution for the
consideration of the pending amendment. I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The question is on agreeing to the motion. The clerk will call the
roll.
The assistant legislative clerk called the roll.
The yeas and nays resulted--yeas 44, nays 56, as follows:
[Rollcall Vote No. 159 Leg.]
YEAS--44
Akaka
Bayh
Biden
Bingaman
Boxer
Byrd
Cantwell
Chafee
Clinton
Conrad
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Edwards
Feingold
Feinstein
Graham (FL)
Harkin
Hollings
Inouye
Johnson
Kennedy
Kerry
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Mikulski
Murray
Nelson (FL)
Pryor
Reed
Reid
Rockefeller
Sarbanes
Schumer
Stabenow
Wyden
NAYS--56
Alexander
Allard
Allen
Baucus
Bennett
Bond
Breaux
Brownback
Bunning
Burns
Campbell
Carper
Chambliss
Cochran
Coleman
Collins
Cornyn
Craig
Crapo
DeWine
Dole
Domenici
Ensign
Enzi
Fitzgerald
Frist
Graham (SC)
Grassley
Gregg
Hagel
Hatch
Hutchison
Inhofe
Jeffords
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Roberts
Santorum
Sessions
Shelby
Smith
Snowe
Specter
Stevens
Sununu
Talent
Thomas
Voinovich
Warner
The PRESIDING OFFICER. On this vote, the yeas are 44, the nays are
56. Three-fifths of the Senators duly chosen and sworn not having voted
in the affirmative, the motion is rejected. The point of order is
sustained, and the amendment falls.
Mr. GRASSLEY. Mr. President, I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The next amendment is the Warner amendment. The Senator from Iowa.
Mr. GRASSLEY. I ask unanimous consent that the Warner amendment be
set aside to take up another amendment, and then we will take up the
Warner amendment next.
The PRESIDING OFFICER. Is there objection? Without objection, it is
so ordered.
[[Page S6422]]
Amendment No. 592, As Modified
The PRESIDING OFFICER. The next amendment is the Voinovich amendment.
Who yields time?
The Senator from Montana.
Mr. BAUCUS. I understand the regular order is the Voinovich
amendment. The Senator from Ohio has the right to speak.
The PRESIDING OFFICER. The Senator is correct.
The Senator from Ohio.
Mr. VOINOVICH. I have an amendment that has been modified. The
modification has been agreed to. I send my amendment, with the
modification, to the desk.
The PRESIDING OFFICER. Without objection, the amendment is so
modified.
The amendment, as modified, is as follows:
(Purpose: To establish a blue ribbon commission on comprehensive tax
reform)
At the appropriate place insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fundamental Tax Reform
Commission Act of 2003''.
SEC. 2. ESTABLISHMENT OF COMMISSION.
(a) Establishment.--There is established the ``Blue Ribbon
Commission on Comprehensive Tax Reform'' (in this Act
referred to as the ``Commission'').
(b) Membership.--
(1) Composition.--The Commission shall be composed of 12
members of whom--
(A) 1 shall be the Chairman of the Board of Governors of
the Federal Reserve System;
(D) 2 shall be appointed by the majority leader of the
Senate;
(E) 2 shall be appointed by the minority leader of the
Senate;
(F) 2 shall be appointed by the Speaker of the House of
Representatives;
(G) 2 shall be appointed by the minority leader of the
House of Representatives; and
(H) 3 shall be appointed by the President, of which--
(i) no more than 2 shall be of the same party as the
President; and
(2) Federal employees.--The members of the Commission may
be employees or former employees of the Federal Government.
(3) Date.--The appointments of the members of the
Commission shall be made not later than July 30, 2003.
(c) Period of Appointment; Vacancies.--Members shall be
appointed for the life of the Commission. Any vacancy in the
Commission shall not affect its powers, but shall be filled
in the same manner as the original appointment.
(d) Initial Meeting.--Not later than 30 days after the date
on which all members of the Commission have been appointed,
the Commission shall hold its first meeting.
(e) Meetings.--The Commission shall meet at the call of the
Chairman.
(f) Quorum.--A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(g) Chairman and Vice Chairman.--The President shall select
a Chairman and Vice Chairman from among its members.
SEC. 3. DUTIES OF THE COMMISSION.
(a) Study.--The Commission shall conduct a thorough study
of all matters relating to a comprehensive reform of the
Federal tax system, including the reform of the Internal
Revenue Code of 1986 and the implementation (if appropriate)
of other types of tax systems.
(b) Recommendations.--The Commission shall develop
recommendations on how to comprehensively reform the Federal
tax system in a manner that generates appropriate revenue for
the Federal Government.
(c) Report.--Not later than 18 months after the date on
which all intitial members of the commission have been
appointed pursuant to section 2(b), the Commission shall
submit a report to the President and Congress which shall
contain a detailed statement of the findings and conclusions
of the Commission, together with its recommendations for such
legislation and administrative actions as it considers
appropriate.
SEC. 4. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold such hearings, sit
and act at such times and places, take such testimony, and
receive such evidence as the Commission considers advisable
to carry out this Act.
(b) Information From Federal Agencies.--The Commission may
secure directly from any Federal department or agency such
information as the Commission considers necessary to carry
out this Act. Upon request of the Chairman of the Commission,
the head of such department or agency shall furnish such
information to the Commission.
(c) Postal Services.--The Commission may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
(d) Gifts.--The Commission may accept, use, and dispose of
gifts or donations of services or property.
SEC. 5. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Each member of the Commission
who is not an officer or employee of the Federal Government
shall be compensated at a rate equal to the daily equivalent
of the annual rate of basic pay prescribed for level IV of
the Executive Schedule under section 5315 of title 5, United
States Code, for each day (including travel time) during
which such member is engaged in the performance of the duties
of the Commission. All members of the Commission who are
officers or employees of the United States shall serve
without compensation in addition to that received for their
services as officers or employees of the United States.
(b) Travel Expenses.--The members of the Commission shall
be allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of
business in the performance of services for the Commission.
(c) Staff.--
(1) In general.--The Chairman of the Commission may,
without regard to the civil service laws and regulations,
appoint and terminate an executive director and such other
additional personnel as may be necessary to enable the
Commission to perform its duties. The employment of an
executive director shall be subject to confirmation by the
Commission.
(2) Compensation.--The Chairman of the Commission may fix
the compensation of the executive director and other
personnel without regard to chapter 51 and subchapter III of
chapter 53 of title 5, United States Code, relating to
classification of positions and General Schedule pay rates,
except that the rate of pay for the executive director and
other personnel may not exceed the rate payable for level V
of the Executive Schedule under section 5316 of such title.
(d) Detail of Government Employees.--Any Federal Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption
or loss of civil service status or privilege.
(e) Procurement of Temporary and Intermittent Services.--
The Chairman of the Commission may procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code, at rates for individuals which do not
exceed the daily equivalent of the annual rate of basic pay
prescribed for level V of the Executive Schedule under
section 5316 of such title.
SEC. 6. TERMINATION OF THE COMMISSION.
The Commission shall terminate 90 days after the date on
which the Commission submits its report under section 3.
SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to the Commission to carry out this Act.
Mr. VOINOVICH. Mr. President, I ask that the amendment, as modified,
be accepted by voice vote.
The PRESIDING OFFICER. Is there objection to vitiating the yeas and
nays?
The Senator from Montana.
Mr. BAUCUS. Mr. President, might I ask the Senator from Ohio if the
modification is the one that changes the ratio of the membership?
Mr. VOINOVICH. It changes the ratio of the membership and increases
more representation by minority. It takes off the head of the IRS, and
it is more evenly balanced and meets the problems that we talked about
last night.
Mr. BAUCUS. I have no objection.
The PRESIDING OFFICER. Without objection, it is so ordered. The yeas
and nays are vitiated.
The question is on agreeing to the amendment, as modified.
The amendment (No. 592), as modified, was agreed to.
Mr. BAUCUS. Mr. President, I move to reconsider the vote.
Mr. REID. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
The PRESIDING OFFICER. The Senator from Montana.
Mr. BAUCUS. I understand the next amendment is the Graham of Florida
amendment.
The PRESIDING OFFICER. If the Warner amendment is once again set
aside.
Mr. BAUCUS. I ask unanimous consent that the Warner amendment and all
relevant amendments be temporarily set aside so we can next proceed to
the Graham of Florida amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 617
The PRESIDING OFFICER. Who yields time on the Graham amendment?
Mr. GRAHAM of Florida. I ask unanimous consent that Senators
Rockefeller and Kerry be added as cosponsors to my amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. GRAHAM of Florida. Mr. President, we have more dismal news on the
state of the economy in today's press; that the April sales in the
United
[[Page S6423]]
States declined .9 percent below those in March. This is what the chief
economist of Wells Fargo had to say about this development: Consumers
are tapped out. They have done a marvelous job of supporting the
economy, but they are basically done. We need something else to pull up
the slack.
I suggest that what we need is this amendment which will place money
in the hands of those Americans and institutions most likely to spend
and therefore create demand. Those include payroll, small business. It
includes those who have already lost their jobs and their unemployment
benefits and State governments. This proposal would focus on the next 2
years----
The PRESIDING OFFICER. The Senator's time has expired.
Mr. GRAHAM of Florida. The period of time in which we need to have a
stimulus. Most importantly, this would not add to the national debt
because it would be fully offset, therefore avoiding the potential that
by adding to the deficit we will add to the economic problems that we
will have in the future.
Mr. President, I ask unanimous consent that an article from today's
Washington Post on consumer spending be printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
[From the Washington Post, May 15, 2003]
Consumers Trimmed Spending In April
drop in gasoline sales was factor in decline
(By Dina ElBoghdady and Anitha Reddy)
Consumer spending dipped in April as shoppers were more
concerned about their jobs than the easing of tensions with
Iraq, increasing prospects that economic growth will be tepid
at best in the second half of the year.
The Commerce Department reported yesterday that April
retail sales fell 0.1 percent from March, when pent-up demand
created by February's snow storms helped boost sales 2.3
percent.
Excluding auto purchases, April sales declined 0.9 percent,
the report showed.
``Consumers are tapped out,'' said Sung Won Sohn, chief
economic officer at Wells Fargo & Co. ``They've done a
marvelous job of supporting the economy, but they are
basically done . . . We need something else to pull up the
slack.''
A large portion of the overall sales decline came from
consumers spending less on gasoline. Gas purchases fell 5.9
percent from late March to late April as gas prices slid by
about a dime on average.
But shoppers also held back on their purchases of clothing,
furniture and garden supplies because of uncertainty about
holding on to their jobs, or finding new ones, if necessary.
The jobless rate is 6 percent today, compared with slightly
over 4 percent a year ago. Consumers' hesitancy was a big
factor preventing the postwar bounce that economists had
expected.
``It's not just that the unemployment rate is a problem,
it's that the people who are unemployed are unemployed for a
longer period of time,'' said John E. Silvia, chief
economicst at Wachovia. ``The job pool is stagnant.''
A tax cut might prompt shoppers to increase spending and
help fuel a more robust recovery, said David A. Wyss, chief
economist at Standard & Poor's Corp.
Wyss said the savings patterns of the average American
indicate that any extra money in after-tax pay would be spent
rather than saved.
``The saving rate is pretty much flat, which certainly
suggests that consumers are spending as much money as they
have,'' Wyss said. ``You can't expect them to do much more
than that.''
Sales fell 3.2 percent at clothing and accessory stores,
1.4 percent at department stores and 0.5 percent at
restaurants and bars.
``I've just been going out a lot less,'' said Tonya Sawyer,
a claims adjustor shopping at the Fashion Centre at Pentagon
City. ``So I don't have the need for clothes or make-up.''
Instead, the 30 years old said she relies on new books and
CDs, rental videos and her dog Bella to entertain herself in
her Arlington apartment. Sales at stores that sell sporting
goods, books, music and hobby materials increased 1.2
percent.
Even the one demographic group that stores hoped might show
steadfast devotion to shopping--teenage girls during prom
season--was being wary.
``It's finding what you want at the right price'' that's so
hard, said Breona Cain, a high school senior from Largo who
was at Pentagon City with two friends yesterday, searching
for the perfect accessories for her dress.
Auto sales rose 2.5 percent in April, thanks to widespread
no-interest financing offers.
``Consumers have shown they're opportunistic,'' said Frank
Badillo, senior economist at Retail Forward Inc., a market
research firm. ``So certain sectors are benefiting in what is
otherwise a weak environment.''
Some economists say that in such an uncertain climate it's
too early to guage the outlook for the rest of the year.
``The April results should most properly be viewed as
transition from a war footing to a normal peacetime
footing,'' Ken Mayland, president of Clear View Economics,
said in a report. ``Consumers are betwixt and between a
`recession' mindset and a `recovery mindset. They have not
bought in to either.''
The PRESIDING OFFICER. The Senator's time has expired.
Who yields time?
Mr. KYL. Mr. President, speaking on behalf of Senator Grassley, this
is a complete substitute and therefore, obviously, will have to be
opposed. It strikes all of the good work from the committee bill
regarding the child credit, marriage penalty, AMT, reduction of rates
for individuals and small businesses, as well as the dividend relief.
We certainly appreciate the Senator's concerns about unemployment
insurance and relief for the States. Obviously, we are committed to
addressing the unemployment insurance issue. As everyone now knows, we
have $20 billion for State aid in the bill, and therefore we will have
to make a point of order. The matter is not germane to the measure now
before the Senate. Therefore, I make a point of order that the pending
amendment violates section 305(b)(2) of the Congressional Budget Act of
1974.
Mr. GRAHAM of Florida. Pursuant to section 904 of the Budget Act I
ask that the point of order against my amendment be waived.
I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The question is on agreeing to the motion.
The clerk will call the roll.
The senior assistant bill clerk called the roll.
The result was announced--yeas 35, nays 65, as follows:
[Rollcall Vote No. 160 Leg.]
YEAS--35
Akaka
Biden
Bingaman
Boxer
Breaux
Byrd
Cantwell
Clinton
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Feingold
Feinstein
Graham (FL)
Harkin
Hollings
Inouye
Jeffords
Kennedy
Kerry
Landrieu
Lautenberg
Leahy
Levin
Mikulski
Murray
Nelson (FL)
Reid
Rockefeller
Sarbanes
Stabenow
Wyden
NAYS--65
Alexander
Allard
Allen
Baucus
Bayh
Bennett
Bond
Brownback
Bunning
Burns
Campbell
Carper
Chafee
Chambliss
Cochran
Coleman
Collins
Conrad
Cornyn
Craig
Crapo
DeWine
Dole
Domenici
Edwards
Ensign
Enzi
Fitzgerald
Frist
Graham (SC)
Grassley
Gregg
Hagel
Hatch
Hutchison
Inhofe
Johnson
Kohl
Kyl
Lieberman
Lincoln
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Pryor
Reed
Roberts
Santorum
Schumer
Sessions
Shelby
Smith
Snowe
Specter
Stevens
Sununu
Talent
Thomas
Voinovich
Warner
The PRESIDING OFFICER. On this question, the yeas are 35, the nays
are 65. Three-fifths of the Senators duly chosen and sworn not having
voted in the affirmative, the motion is rejected. The point of order is
sustained, and the amendment falls.
Mr. GRASSLEY. I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 550 Withdrawn
The PRESIDING OFFICER. Without objection, the pending Warner
amendment is set aside.
The Senator from Virginia.
Mr. WARNER. Mr. President, I ask to have the amendment set aside.
The PRESIDING OFFICER (Mr. Crapo). Without objection, it is so
ordered.
Mr. WARNER. My request is on behalf of Senator Collins, Senator
Craig, Senator Allen, and Senator Murkowski. I do so because we have
made a conscientious effort, together with the cooperation of the
managers of this bill, to find the offset and we simply could not find
the offset.
The thrust of our amendment is for the teachers in America. The
amendment is very simple. It compensates them through a tax deduction
for each time they reach into their own pocketbooks or pockets to buy
school supplies for their students. We need to increase
[[Page S6424]]
that amount from $250 which is current law. We need to broaden it so
they can use some of the deduction for purposes of continuing
education. This is an amendment not for the rich; it is simply for
those who serve America and ask very little by way of salary.
We cannot move it at this time, but the managers very generously have
acceded to this colloquy. The managers have agreed to look at this in
future tax legislation and for the time being will agree to extend it
so this current law of the $250 deduction will not expire at the end of
this calendar year.
I ask the question of my colleague.
Mr. GRASSLEY. The Senator accurately stated what my intentions are,
but let me say it for myself so the Senator knows I have said it.
First of all, I need to thank the Senator for his cooperation in
working with us on this amendment so we can expedite the bill. Also, I
make clear I am a strong supporter of the Senator's legislation and the
expansion of it and would agree to make sure we get this done before
the end of the calendar year, so that would involve extending it and
expanding these teacher provisions.
This all deals--so everyone knows what we are talking about--with the
extension of legislation passed within the last 2 years. It sunsets. We
make these permanent, and there would be a significant increase in the
above-the-line deduction for teachers.
Mr. WARNER. Mr. President, I thank my distinguished colleague.
Perhaps the ranking member may wish to address this issue. If the
ranking member would care to make a comment about the withdrawal of the
amendment of the Senator from Virginia?
Mr. BAUCUS. Mr. President, I thank the Senator from Virginia for
asking the question. All I can say at this point is we will do the very
best we can.
Mr. WARNER. I thank my colleague. I move to withdraw the amendment.
The PRESIDING OFFICER. Without objection, the amendment is withdrawn.
Amendment No. 575
The PRESIDING OFFICER. The business before the Senate is the Kyl
amendment.
The Senator from Arizona.
Mr. KYL. Mr. President, is there an order for me to speak to the Kyl
amendment at this point?
The PRESIDING OFFICER. The Senator has the floor for 1 minute.
Mr. KYL. Mr. President, this is the amendment that would return money
to the States from the tobacco company payments to trial lawyers, money
that exceeded reasonable fees as determined by a common standard in the
courts and an IRS Code provision.
What we have done in this amendment is to apply it only
prospectively, not retroactively. The fee is a reasonable fee plus 500
percent, and in any event the lawyers are guaranteed--and, colleagues,
please note this--$20,000 per hour. That is what the lawyers are
guaranteed in those cases, those 10 to 15 cases per year to which this
would apply.
Those fees were not set by contract. They were not set by courts. The
money is going to be paid by the tobacco companies. The only question
is, are these excess fees going to be paid to the tobacco lawyers or
are they going to be paid to the States?
I will have at both desks a chart which shows how much money each of
the States would receive. It is between $6 billion and $9 billion in
total. You can see the amount listed on this sheet. I ask you to
consult that because that is money your States would receive if this
amendment is adopted.
The PRESIDING OFFICER. Who speaks in opposition? The Senator from
Montana.
Mr. BAUCUS. Mr. President, I yield to the Senator from Louisiana.
The PRESIDING OFFICER. The Senator from Louisiana.
Mr. BREAUX. Mr. President, this amendment was already offered in the
Senate Finance Committee. It was defeated by a bipartisan vote of
Republicans and Democrats in the Finance Committee.
IRS should not be involved in setting the fees for CEOs in this
country. They should not be involved in setting the fees for plumbers
or electricians. And they should not be involved in setting the fees
for attorneys who have had voluntary agreements between defendants and
the plaintiffs about what they should be paid, which have been approved
by the courts. All of these fees have been approved by the courts or by
the arbitrator. They were voluntarily agreed to.
Lawyers don't get paid by the hour in these cases; they get paid by
the job. IRS should not determine what are correct payments for
services.
Mr. BIDEN. Will the Senator yield me 10 seconds?
Mr. BREAUX. I yield it if I have any time remaining.
Mr. BIDEN. I want to point out company lawyers were paid $700 million
per year, per year, for 5 years. Plaintiffs' lawyers had to risk $100
million of their own money.
The PRESIDING OFFICER. All time has expired.
Mr. BREAUX. Mr. President, the pending amendment is not germane.
Therefore, I make a point of order the amendment violates section
305(b)(2) of the Congressional Budget Act of 1974.
Mr. KYL. Mr. President, I move to waive the provision. I ask for the
yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second? There is a
sufficient second.
The question is on agreeing to the motion. The clerk will call the
roll.
The assistant legislative clerk called the roll.
Mr. LOTT (when his name was called). Present.
Mr. REID. I announce that the Senator from Hawaii (Mr. Inouye) is
necessarily absent.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The yeas and nays resulted--yeas 37, nays 61, as follows:
[Rollcall Vote No. 161 Leg.]
YEAS--37
Alexander
Allard
Bennett
Bond
Brownback
Bunning
Burns
Campbell
Collins
Cornyn
Craig
Dole
Domenici
Ensign
Enzi
Fitzgerald
Frist
Grassley
Gregg
Hagel
Hutchison
Inhofe
Kyl
Lugar
McCain
McConnell
Murkowski
Nickles
Roberts
Santorum
Sessions
Snowe
Stevens
Sununu
Talent
Thomas
Warner
NAYS--61
Akaka
Allen
Baucus
Bayh
Biden
Bingaman
Boxer
Breaux
Byrd
Cantwell
Carper
Chafee
Chambliss
Clinton
Cochran
Coleman
Conrad
Corzine
Crapo
Daschle
Dayton
DeWine
Dodd
Dorgan
Durbin
Edwards
Feingold
Feinstein
Graham (FL)
Graham (SC)
Harkin
Hatch
Hollings
Jeffords
Johnson
Kennedy
Kerry
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Mikulski
Miller
Murray
Nelson (FL)
Nelson (NE)
Pryor
Reed
Reid
Rockefeller
Sarbanes
Schumer
Shelby
Smith
Specter
Stabenow
Voinovich
Wyden
ANSWERED ``PRESENT''--1
Lott
NOT VOTING--1
Inouye
The PRESIDING OFFICER. On this vote, the yeas are 37, the nays are
61, and one Senator responded ``present.'' Three-fifths of the Senators
duly chosen and sworn not having voted in the affirmative, the motion
is rejected. The point of order is sustained, and the amendment falls.
Mr. GRASSLEY. Mr. President, I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 619
The PRESIDING OFFICER. The next amendment is the Landrieu amendment.
Each side has 1 minute.
Who yields time?
Mr. BAUCUS. Mr. President, I ask unanimous consent that relevant
pending amendments be temporarily laid aside so that Senator Landrieu's
amendment can be voted on.
The PRESIDING OFFICER. The Landrieu amendment is now before the body.
Mr. GRASSLEY. Mr. President, the Senate is not in order.
The PRESIDING OFFICER. The Senator is correct. Senators will please
take their conversations off the floor.
The Senator from Louisiana.
Ms. LANDRIEU. Thank you, Mr. President.
Mr. President, this afternoon we are being asked to buy a pig in a
poke.
[[Page S6425]]
That is what we would say in Louisiana--a pig in a poke. Please
colleagues, do not vote for the underlying bill. Senator Corzine and
Senator Schumer and I offer an amendment which is a $350 billion
alternative that is truly stimulative. It tries to work with the
administration but takes out the nonstimulative portion and puts in a
rebate on wages. If we want to create jobs, then let us stop taxing
them.
Our amendment also treats States as respected partners and not as
charitable aid organizations, which they are not.
It also says that tax cuts aren't the only way to stimulate the
economy; that you can make strategic investments. As politicians, live
up to your promises to children by funding education and health care.
Don't buy a pig in a poke, and don't turn your back on the 2 million
companies, 2 million farms, and 2 million partnerships that do not get
a penny from the dividend tax cut.
Mr. GRASSLEY. Mr. President, the way to make sure the American people
are not buying a pig in a poke is to get more money in the pockets of
the taxpayers so that there is less money around here for 535 Members
of Congress to play with.
I want to speak in regard to this amendment; that the complete
substitute will cut back our efforts to reduce marginal rates for
families and small businesses.
In addition, the bill will make millions of taxpayers subject to the
alternative minimum tax.
I appreciate the Senator's efforts on the child tax, and we already
have a $95 billion child tax credit.
We also have significant State aid in the bill.
We have a point of order, as we have had before on an amendment like
this.
I raise that point of order--that the language is not germane to the
measure now before the Senate. The point of order is under section
305(b)(2) of the Congressional Budget Act.
Ms. LANDRIEU. Mr. President, pursuant to section 904 of the
Congressional Budget Act, I move to waive the applicable sections of
that act for the consideration of this amendment, and I ask for the
yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The question is on agreeing to the motion. The clerk will call the
roll.
The legislative clerk called the roll.
The yeas and nays resulted--yeas 47, nays 53, as follows:
[Rollcall Vote No. 162 Leg.]
YEAS--47
Akaka
Baucus
Bayh
Biden
Bingaman
Boxer
Breaux
Byrd
Cantwell
Carper
Clinton
Conrad
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Edwards
Feingold
Feinstein
Graham (FL)
Harkin
Hollings
Inouye
Jeffords
Johnson
Kennedy
Kerry
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Mikulski
Murray
Nelson (FL)
Pryor
Reed
Reid
Rockefeller
Sarbanes
Schumer
Stabenow
Wyden
NAYS--53
Alexander
Allard
Allen
Bennett
Bond
Brownback
Bunning
Burns
Campbell
Chafee
Chambliss
Cochran
Coleman
Collins
Cornyn
Craig
Crapo
DeWine
Dole
Domenici
Ensign
Enzi
Fitzgerald
Frist
Graham (SC)
Grassley
Gregg
Hagel
Hatch
Hutchison
Inhofe
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Roberts
Santorum
Sessions
Shelby
Smith
Snowe
Specter
Stevens
Sununu
Talent
Thomas
Voinovich
Warner
The PRESIDING OFFICER. On this vote, the yeas are 47, the nays are
53. Three-fifths of the Senators duly chosen and sworn not having voted
in the affirmative, the motion is rejected. The point of order is
sustained, and the amendment falls.
Mr. GRASSLEY. Mr. President, I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Mr. BAUCUS. Mr. President, my understanding is there are pending
votes that require unanimous consent to be set aside. I make that
request so that the next Landrieu amendment can be in order.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 620
The PRESIDING OFFICER. The Landrieu amendment No. 620 is before the
Senate.
There are 2 minutes equally divided.
Who yields time?
The Senator from Louisiana.
Ms. LANDRIEU. Mr. President, this amendment would go a long way to
send the right message to our guardsmen and reservists. Over 370,000
have been activated since September 11 and the attack on this city and
our Nation.
As we know, it has been made painfully aware to us that many of these
guardsmen and reservists who serve take a cut in pay because they leave
their jobs, they close their businesses to temporarily serve us.
This amendment will give their employers, and themselves if they are
an employer, the opportunity to write off 50 percent of the cost of
their salaries so those salaries can be maintained while they are
protecting and serving us. It is the least we can do.
The other side is going to say they will get to it later. Let's get
to it today. Let's not let this tax bill pass without honoring the
Guard and Reserves and giving them a chance to keep their businesses
open while they keep us safe.
The PRESIDING OFFICER. The Senator from Iowa.
Mr. GRASSLEY. Mr. President, this amendment proposes to offer a 50-
percent tax credit for employers of reservists to encourage
differential pay.
This amendment does not benefit those who are self-employed and
provides little benefit to small businesses with little equity.
In addition, nearly 80 percent of the cost of the military tax bill,
which we have already passed in the Senate, is dedicated to reservists
with the above-the-line deduction that was included because Senator
DeWine pushed very hard for it.
The amendment is paid for by reducing the dividend exclusion which is
essential to our growth package; in other words, to keep a well
balanced growth package.
So the amendment I see as an attack on the jobs and growth bill, and
I ask that it not be adopted.
Mr. President, I raise a point of order on germaneness, that the
amendment is not germane. The point of order comes under section
305(b)(2) of the Congressional Budget Act.
Ms. LANDRIEU. Mr. President, I ask unanimous consent that Senator
Feingold, Senator Stabenow, and Senator Mikulski be added as cosponsors
of the amendment.
The PRESIDING OFFICER. Without objection, it is so ordered.
Ms. LANDRIEU. Mr. President, pursuant to section 904 of the
Congressional Budget Act, I move to waive the applicable sections of
that act for the consideration of the pending amendment, and I ask for
the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The question is on agreeing to the motion.
The clerk will call the roll.
The bill clerk called the roll.
The yeas and nays resulted--yeas 46, nays 54, as follows:
[Rollcall Vote No. 163 Leg.]
YEAS--46
Akaka
Baucus
Bayh
Biden
Bingaman
Boxer
Breaux
Byrd
Cantwell
Carper
Clinton
Conrad
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Edwards
Feingold
Graham (FL)
Harkin
Hollings
Inouye
Jeffords
Johnson
Kennedy
Kerry
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Mikulski
Murray
Nelson (FL)
Pryor
Reed
Reid
Rockefeller
Sarbanes
Schumer
Stabenow
Wyden
NAYS--54
Alexander
Allard
Allen
Bennett
Bond
Brownback
Bunning
Burns
Campbell
Chafee
Chambliss
Cochran
Coleman
Collins
Cornyn
Craig
Crapo
DeWine
Dole
Domenici
Ensign
Enzi
Feinstein
Fitzgerald
Frist
Graham (SC)
Grassley
Gregg
Hagel
Hatch
Hutchison
Inhofe
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nelson (NE)
Nickles
Roberts
Santorum
Sessions
Shelby
[[Page S6426]]
Smith
Snowe
Specter
Stevens
Sununu
Talent
Thomas
Voinovich
Warner
The PRESIDING OFFICER (Mr. Smith). On this vote, the yeas are 46, the
nays are 54. Three-fifths of the Senate duly chosen and sworn not
having voted in the affirmative, the motion is rejected.
The point of order is sustained and the amendment falls.
Mr. KYL. Mr. President, I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 621 Withdrawn
Mr. BAUCUS. Mr. President, I ask unanimous consent that the votes on
the various amendments next up be temporarily laid aside so we can
proceed to the Landrieu amendment No. 621.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Louisiana.
Ms. LANDRIEU. Mr. President, I thank my colleagues for their
patience. Senator Sessions and I offered this amendment. We are not
going to ask for a vote, but I would like to explain it in 1 minute. We
offered this amendment to try to technically correct a glitch in the
renewal community law. It only affects districts in Louisiana and
Alabama now, but it could affect, in the near term, districts in 40
other States.
I am going to ask the chairman of the Finance Committee to consider
this fix. It only costs $14 million a year and it will help create jobs
in some of the poorest areas in our country. So if I could ask for
their consideration, I will at this time withdraw the amendment.
Mr. KYL. Mr. President, I have spoken to the Senator from Louisiana.
I know the chairman is appreciative of her efforts along with the
Senator from Alabama. He is anxious to continue to work with her on
this matter. He appreciates their very strong interest in trying to
rectify this situation. On behalf of the chairman, I can say he will be
willing to work with her.
Mr. BAUCUS. Mr. President, I, too, have spoken with the Senator and
understand her concerns and will do my utmost to help resolve the
issue.
The PRESIDING OFFICER. Without objection, the amendment is withdrawn.
Mr. BAUCUS. Mr. President, I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The bill clerk proceeded to call the roll.
Mr. BAUCUS. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Amendment No. 557
Mr. BAUCUS. Mr. President, I ask unanimous consent that the votes on
the earlier amendments be temporarily laid aside so we can now proceed
to amendment No. 557 by the Senator from New York.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from New York is recognized.
Mr. SCHUMER. Mr. President, this is a simple amendment. Two years
ago, on the last tax bill, we took a historic step in this body. We
said part of college tuition should be tax deductible. We required that
the first $3,000 be deductible for a family making up to $160,000 a
year. This will raise that. It goes up to $4,000 in the next fiscal
year under the previous law, and then it expires in 2006. This law
would make it permanent and raise the amount to $8,000 initially, next
year, and then $12,000 in future years.
It is very simple. It pays for itself, by the way, by reducing the
top rate not by three points but by one point. The choice is simple.
Middle-class people have an awfully difficult time paying for college.
If you are rich, you can afford it. If you are poor, we help you, and
we should. But the middle class gets stuck. Families are up late at
night worrying about how they are going to pay the tuition bill.
I ask my colleagues, which do they choose? Bring the top rate down
but not as quickly and help middle-class families with the second
greatest expense they face other than their home, or bring the rate
down quickly? It is a simple choice. I hope the body will vote for the
middle-class parents who are stuck with these huge tuition bills.
Mr. KYL. Mr. President, we added the tuition provision in the bill 2
years ago, and it is obviously supported by a broad number of people in
the body. The problem is that this addition is way too expensive and
comes out of the top rate reduction from the bill that is on the floor,
the acceleration of the marginal income tax rate provision of the bill.
Obviously, we have to oppose this particular amendment. This is a
matter that could be dealt with in a different way but not by paying
for it in the manner it is paid for. It is not germane. Therefore, I
raise a point of order under 305(b)(2) of the Congressional Budget Act
of 1974.
Mr. SCHUMER. Mr. President, I ask that the point of order be waived,
and I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There is a sufficient second.
The question is on agreeing to the motion.
The clerk will call the roll.
The legislative clerk called the roll.
The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
The yeas and nays resulted--yeas 49, nays 51, as follows:
[Rollcall Vote No. 164 Leg.]
YEAS--49
Akaka
Baucus
Bayh
Biden
Bingaman
Boxer
Breaux
Byrd
Cantwell
Carper
Clinton
Collins
Conrad
Corzine
Daschle
Dayton
Dodd
Dorgan
Durbin
Edwards
Feingold
Feinstein
Graham (FL)
Harkin
Hollings
Inouye
Jeffords
Johnson
Kennedy
Kerry
Kohl
Landrieu
Lautenberg
Leahy
Levin
Lieberman
Lincoln
Mikulski
Murray
Nelson (FL)
Nelson (NE)
Pryor
Reed
Reid
Rockefeller
Sarbanes
Schumer
Stabenow
Wyden
NAYS--51
Alexander
Allard
Allen
Bennett
Bond
Brownback
Bunning
Burns
Campbell
Chafee
Chambliss
Cochran
Coleman
Cornyn
Craig
Crapo
DeWine
Dole
Domenici
Ensign
Enzi
Fitzgerald
Frist
Graham (SC)
Grassley
Gregg
Hagel
Hatch
Hutchison
Inhofe
Kyl
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Nickles
Roberts
Santorum
Sessions
Shelby
Smith
Snowe
Specter
Stevens
Sununu
Talent
Thomas
Voinovich
Warner
The PRESIDING OFFICER. On this vote, the yeas are 49, the yeas are
51. Three-fifths of the Senators duly chosen and sworn not having voted
in the affirmative, the motion is rejected. The point of order is
sustained, and the amendment falls.
Mr. BAUCUS. I move to reconsider the vote.
Mr. REID. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 622, As Modified
The PRESIDING OFFICER. The next amendment is the Ensign amendment No.
622.
The Senator from Nevada.
Mr. ENSIGN. Mr. President, I have a technical modification to my
amendment at the desk, and I ask unanimous consent that my amendment be
so modified.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment, as modified, is as follows:
On page 281, between lines 2 and 3, insert the following:
SEC. ____. TOLL TAX ON EXCESS QUALIFIED FOREIGN DISTRIBUTION
AMOUNT.
(a) In General.--Subpart F of part III of subchapter N of
chapter 1 is amended by adding at the end the following new
section:
``SEC. 965. TOLL TAX IMPOSED ON EXCESS QUALIFIED FOREIGN
DISTRIBUTION AMOUNT.
``(a) Toll Tax Imposed on Excess Qualified Foreign
Distribution Amount.--If a corporation elects the application
of this section, a tax shall be imposed on the taxpayer in an
amount equal to 5.25 percent of--
``(1) the taxpayer's excess qualified foreign distribution
amount, and
``(2) the amount determined under section 78 which is
attributable to such excess qualified foreign distribution
amount.
Such tax shall be imposed in lieu of the tax imposed under
section 11 or 55 on the
[[Page S6427]]
amounts described in paragraphs (1) and (2) for such taxable
year.
``(b) Excess Qualified Foreign Distribution Amount.--For
purposes of this section--
``(1) In general.--The term `excess qualified foreign
distribution amount' means the excess (if any) of--
``(A) dividends received by the taxpayer during the taxable
year which are--
``(i) from 1 or more corporations which are controlled
foreign corporations in which the taxpayer is a United States
shareholder on the date such dividends are paid, and
``(ii) described in a domestic reinvestment plan approved
by the taxpayer's president, chief executive officer, or
comparable official before the payment of such dividends and
subsequently approved by the taxpayer's board of directors,
management committee, executive committee, or similar body,
which plan shall provide for the reinvestment of such
dividends in the United States, including as a source for the
funding of worker hiring and training; infrastructure;
research and development; capital investments; or the
financial stabilization of the corporation for the purposes
of job retention or creation, over
``(B) the base dividend amount.
``(2) Base dividend amount.--The term `base dividend
amount' means an amount designated under subsection (c)(7),
but not less than the average amount of dividends received
during the fixed base period from 1 or more corporations
which are controlled foreign corporations in which the
taxpayer is a United States shareholder on the date such
dividends are paid.
``(3) Fixed base period.--
``(A) In general.--The term `fixed base period' means each
of 3 taxable years which are among the 5 most recent taxable
years of the taxpayer ending on or before December 31, 2002,
determined by disregarding--
``(i) the 1 taxable year for which the taxpayer had the
highest amount of dividends from 1 or more corporations which
are controlled foreign corporations relative to the other 4
taxable years, and
``(ii) the 1 taxable year for which the taxpayer had the
lowest amount of dividends from such corporations relative to
the other 4 taxable years.
``(B) Shorter period.--If the taxpayer has fewer than 5
taxable years ending on or before December 31, 2002, then in
lieu of applying subparagraph (A), the fixed base period
shall mean such shorter period representing all of the
taxable years of the taxpayer ending on or before December
31, 2002.
``(c) Definitions and Special Rules.--For purposes of this
section--
``(1) Dividends.--The term `dividend' means a dividend as
defined in section 316, except that the term shall also
include amounts described in section 951(a)(1)(B), and shall
exclude amounts described in sections 78 and 959.
``(2) Controlled foreign corporations and united states
shareholders.--The term `controlled foreign corporation'
shall have the same meaning as under section 957(a) and the
term `United States shareholder' shall have the same meaning
as under section 951(b).
``(3) Foreign tax credits.--The amount of any income, war,
profits, or excess profit taxes paid (or deemed paid under
sections 902 and 960) or accrued by the taxpayer with respect
to the excess qualified foreign distribution amount for which
a credit would be allowable under section 901 in the absence
of this section, shall be reduced by 85 percent.
``(4) Foreign tax credit limitation.--For all purposes of
section 904, there shall be disregarded 85 percent of--
``(A) the excess qualified foreign distribution amount,
``(B) the amount determined under section 78 which is
attributable to such excess qualified foreign distribution
amount, and
``(C) the amounts (including assets, gross income, and
other relevant bases of apportionment) which are attributable
to the excess qualified foreign distribution amount which
would, determined without regard to this section, be used to
apportion the expenses, losses, and deductions of the
taxpayer under section 861 and 864 in determining its taxable
income from sources without the United States.
For purposes of applying subparagraph (C), the principles of
section 864(e)(3)(A) shall apply.
``(5) Treatment of acquisitions and dispositions.--Rules
similar to the rules of section 41(f)(3) shall apply in the
case of acquisitions or dispositions of controlled foreign
corporations occurring on or after the first day of the
earliest taxable year taken into account in determining the
fixed base period.
``(6) Treatment of consolidated groups.--Members of an
affiliated group of corporations filing a consolidated return
under section 1501 shall be treated as a single taxpayer in
applying the rules of this section.
``(7) Designation of dividends.--Subject to subsection
(b)(2), the taxpayer shall designate the particular dividends
received during the taxable year from 1 or more corporations
which are controlled foreign corporations in which it is a
United States shareholder which are dividends excluded from
the excess qualified foreign distribution amount. The total
amount of such designated dividends shall equal the base
dividend amount.
``(8) Treatment of expenses, losses, and deductions.--Any
expenses, losses, or deductions of the taxpayer allowable
under subchapter B--
``(A) shall not be applied to reduce the amounts described
in subsection (a)(1), and
``(B) shall be applied to reduce other income of the
taxpayer (determined without regard to the amounts described
in subsection (a)(1)).
``(d) Election.--
``(1) In general.--An election under this section shall be
made on the taxpayer's timely filed income tax return for the
taxable year (determined by taking extensions into account)
ending 120 days or more after the date of the enactment of
this section, and, once made, may be revoked only with the
consent of the Secretary.
``(2) All controlled foreign corporations.--The election
shall apply to all corporations which are controlled foreign
corporations in which the taxpayer is a United States
shareholder during the taxable year.
``(3) Consolidated groups.--If a taxpayer is a member of an
affiliated group of corporations filing a consolidated return
under section 1501 for the taxable year, an election under
this section shall be made by the common parent of the
affiliated group which includes the taxpayer, and shall apply
to all members of the affiliated group.
``(e) Regulations.--The Secretary shall prescribe such
regulations as may be necessary and appropriate to carry out
the purposes of this section, including regulations under
section 55 and regulations addressing corporations which,
during the fixed base period or thereafter, join or leave an
affiliated group of corporations filing a consolidated
return.''.
(b) Conforming Amendment.--The table of sections for
subpart F of part III of subchapter N of chapter 1 is amended
by adding at the end the following new item:
``Sec. 965. Toll tax imposed on excess qualified foreign distribution
amount.''.
(c) Effective Date.--Except as otherwise provided, the
amendments made by this section, other than the amendment
made by subsection (d), shall apply only to the first taxable
year of the electing taxpayer ending 120 days or more after
the date of the enactment of this Act.
(d) Termination of Rehabilitation Credit for Buildings
Other Than Certified Historic Structures.--Section 47
(relating to rehabilitation credit) is amended by adding at
the end the following new subsection:
``(e) Termination of Credit for Buildings Other Than
Certified Historic Structures.--No credit shall be allowed
under subsection (a)(1) with respect to expenditures incurred
after December 31, 2003.''.
Mr. ENSIGN. Mr. President, the modification says the offset included
in the amendment repeals the tax credit for refurbishing of nonhistoric
structures only, not historic structures, with which people had
concerns.
If you believe the American economy needs a shot in the arm right
now, then you should vote for this amendment. Our amendment allows
companies that have made money overseas to bring it back right now.
They are taxed at 35 percent. When faced with a choice of whether they
keep it overseas or bring it back, they keep it overseas. We are going
to allow a 1-year exemption. The tax will be lowered from 35 percent to
5.25 percent. They have 1 year to invest the money to create jobs in
this country. As with Senator Boxer's very fine amendment in our bill,
it cannot go for executive pay. The money has to be invested in America
to create jobs.
I believe this will be a tremendous stimulus to our economy, and I
urge its adoption.
I yield 10 seconds to my friend from California.
The PRESIDING OFFICER. The Senator's time has expired.
Mrs. BOXER. I ask for 10 seconds.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mrs. BOXER. Mr. President, I hope my colleagues will vote for this
one-time infusion of private sector dollars to create jobs and
encourage business investment in plants and equipment. This infusion
will happen immediately. I think it is what we need to fight for
because our people are hurting out there.
I thank the Chair.
The PRESIDING OFFICER. The Senator's time has expired.
USE OF FUNDS REPATRIATED
Mrs. BOXER. Mr. President, I rise to thank Senator Ensign for his
leadership on the Invest in the USA Act. As we said earlier, this
infusion of cash will provide an immediate and much needed boost to the
economy. Over the next year, it is estimated that this legislation,
which is included in this bill as an amendment, will bring $140 billion
in foreign earnings back into the United States.
As my friend is aware, under our amendment, which is the Invest in
the USA Act of 2003, these funds are to be used as a source for worker
hiring and training; infrastructure; research, and
[[Page S6428]]
development; capital investments; or the financial stabilization of the
corporation for the purposes of job retention or creation. Any attempt
to use these funds to increase executive pay would be a violation of
the intent of this legislation.
Mr. ENSIGN. Mr. President, the Senator from California is absolutely
correct. These funds are meant to stimulate the economy. I pledge to
work with Senator Boxer and our colleagues in conference to ensure that
these funds may not be used for executive pay.
The Senator from Louisiana.
Mr. BREAUX. Mr. President, I rise in opposition to the Senator's
amendment. This amendment was offered in the Senate Finance Committee.
Republicans and Democrats joined to defeat this amendment.
There is no question that the international tax laws need to be
assessed. We have agreed to do that in the Finance Committee. The
Republican leadership said they would look at all international tax
laws and consequences.
This is a retroactive tax break. This bill is supposed to be
stimulative in the future, not in the past. This amendment will reward
companies for what they did a long time ago when we ought to be looking
at the bill in a prospective nature.
A retroactive tax cut is not what we need. We ought to examine
international tax laws. We have an agreement to do it in a bipartisan
fashion. This does not belong in the bill at this time.
I make a point of order that the amendment is nongermane under
section 305(b)(2) of the Congressional Budget Act of 1974.
Mr. ENSIGN. Mr. President, I move to waive that section of the
Congressional Budget Act. Also, I note that many of the people who
voted against this amendment in the Finance Committee will be voting
for it today.
Pursuant to section 904 of the Congressional Budget Act of 1974, I
move to waive the applicable sections of that act for the consideration
of this amendment, and I ask for the yeas and nays.
The PRESIDING OFFICER. Is there a sufficient second?
There appears to be a sufficient second.
The question is on agreeing to the motion. The clerk will call the
roll.
The bill clerk called the roll.
The yeas and nays resulted--yeas 75, nays 25, as follows:
[Rollcall Vote No. 165 Leg.]
YEAS--75
Akaka
Alexander
Allard
Allen
Baucus
Bayh
Bennett
Bond
Boxer
Brownback
Bunning
Burns
Campbell
Cantwell
Carper
Chafee
Chambliss
Cochran
Coleman
Collins
Cornyn
Corzine
Craig
Crapo
DeWine
Dodd
Dole
Domenici
Ensign
Enzi
Feinstein
Fitzgerald
Frist
Graham (SC)
Grassley
Gregg
Hagel
Hatch
Hollings
Hutchison
Inhofe
Jeffords
Kyl
Landrieu
Lautenberg
Leahy
Lieberman
Lincoln
Lott
Lugar
McCain
McConnell
Miller
Murkowski
Murray
Nelson (NE)
Nickles
Pryor
Reid
Roberts
Santorum
Schumer
Sessions
Shelby
Smith
Snowe
Specter
Stabenow
Stevens
Sununu
Talent
Thomas
Voinovich
Warner
Wyden
NAYS--25
Biden
Bingaman
Breaux
Byrd
Clinton
Conrad
Daschle
Dayton
Dorgan
Durbin
Edwards
Feingold
Graham (FL)
Harkin
Inouye
Johnson
Kennedy
Kerry
Kohl
Levin
Mikulski
Nelson (FL)
Reed
Rockefeller
Sarbanes
The PRESIDING OFFICER. On this question, the yeas are 75, the nays
are 25. Three-fifths of the Senators duly chosen and sworn having voted
in the affirmative, the motion is agreed to.
The question now is on the amendment.
Mr. GRASSLEY. I urge we now adopt the amendment by voice vote.
The PRESIDING OFFICER. The question is on agreeing to the amendment.
The amendment (No. 622), as modified, was agreed to.
Mr. GRASSLEY. I move to reconsider the vote.
Mr. BAUCUS. I move to lay that motion on the table.
The motion to lay on the table was agreed to.
Amendment No. 611
Mr. BAUCUS. Mr. President, my understanding is the next amendment is
the amendment offered by the Senator from North Dakota, Mr. Conrad.
The PRESIDING OFFICER. The Senator is correct.
The Senator from North Dakota.
Mr. CONRAD. Mr. President, this bill increases the child tax credit
from $600 to $1,000 effective back at the beginning of this year.
My amendment simply takes it back another year to the beginning of
2002. This is an efficient way of targeting money to those who are most
likely to use it to give stimulus to the economy.
I offset the additional cost by delaying part of the final reduction
in the top marginal rate for a year and a half. This asks the top 1
percent, actually less than 1 percent of the taxpayers, to take part of
their reduction somewhat later. It gives a benefit to 27 million
American families by asking less than a million American families to
wait for the final part of their additional tax reduction for a year
and a half.