[Congressional Record Volume 149, Number 170 (Friday, November 21, 2003)]
[Senate]
[Page S15403]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]



  (At the request of Mr. Daschle, the following statement was ordered 
to be printed in the Record.)

HONORING MILITARY RESERVISTS AND THEIR SMALL BUSINESS EMPLOYERS DURING 
        NATIONAL EMPLOYER SUPPORT OF THE GUARD AND RESERVE WEEK

 Mr. KERRY. Mr. President, as this is National Employer Support 
of the Guard and Reserve Week, it seems an appropriate time to speak on 
the honorable Americans serving in our National Guard and Reserve.
  To fight our wars and to meet our military responsibilities, the 
United States supplements its regular, standing military with a capable 
band of citizen soldiers, reservists who serve nobly and continue to 
make the ultimate sacrifice for this country. At present, there are 
about 165,000 national guardsmen and reservists on active duty--more 
than half of the 300,000 called to active duty since September 11. They 
serve admirably around the world, performing critical wartime functions 
in Iraq, Afghanistan, and elsewhere. This country does not go into 
battle without members of the National Guard and Reserve, and we should 
be grateful for their service.
  Instead of gratitude, members of the Guard and Reserve find the Bush 
administration's military agenda leaving them behind. In addition, 
earlier this year, the Republican majority in the U.S. House of 
Representatives sought to cut reservist pay by 40 percent for normal 
peacetime training requirements. The Republican majority in the U.S. 
Senate blocked efforts to extend health care benefits to Guard and 
Reserve members. Just this month, the Republican majority in Congress 
voted against legislation by Senator Durbin that would have provided 
supplemental income for Federal employees who are called up to active 
duty. These efforts are wrong and demonstrate the misplaced priorities 
of the Republican Party.
  To make matters worse, the Bush administration recently announced 
that it would require thousands of National Guard and Army Reserve 
troops to extend their tours of duty up for an additional six months. 
This extension will cause significant economic difficulties for the 
reservists, their families, their employers, and our national economy.
  Beyond the hardship of leaving their families, their homes and their 
regular employment, more than one-third of military reservists and 
National Guard members face a pay cut when they're called for active 
duty. Many of these reservists have families who depend upon that 
paycheck and can least afford a substantial reduction in pay.
  The United States Chamber of Commerce estimates that 70 percent of 
military reservists called to active duty work in small- or medium-size 
companies. The continued activation of military reservists to serve in 
Iraq and the broader war on terrorism has imposed a tremendous burden 
on many of our country's small businesses. Too many of these 
businesses, when their employees are asked to leave their jobs and 
serve the Nation, are unable to continue operating successfully--
resulting in severe financial difficulty and even bankruptcy. Large 
businesses have the resources to provide supplemental income to 
reservist employees called up for active duty and to replace them with 
a temporary employee. However, many small businesses are unable to 
provide this assistance or temporarily cover the reservist's duties.
  The Federal Government has an obligation to help small businesses 
weather the loss of an employee to a call-up and a duty to protect 
small business employees and their families from suffering a pay cut to 
serve our Nation. It is imperative that we help families of reservists 
maintain their standard of living while their loved one protects our 
country abroad.
  That is why I have proposed creating a Small Business Military 
Reservist Tax Credit, which does two things. First, it provides an 
immediate Federal income tax credit to any small business to help with 
the cost of temporarily replacing a reservist employee that has been 
called up to active duty. Second, it provides a tax credit to small 
businesses that pay any difference in salary for an employee who is 
called up. This tax credit is worth up to $12,000 to any small business 
and up to $20,000 for small manufacturers.

  It is common knowledge that small businesses continue to be our most 
effective tool at creating new jobs and spurring economic growth 
nationwide. Small businesses employ over 50 percent of the Nation's 
work force. Across the country, small businesses are currently creating 
75 percent of new jobs. Furthermore, many of these small businesses 
provide quality goods and services that are a vital link in the supply 
chain for national defense. Many of these small companies need 
immediate help to keep their business going while their employees 
encounter tremendous personal sacrifice in service of our country.
  This assistance will immediately help struggling entrepreneurs keep 
their small businesses running during the loss of an employee to 
temporary military service. It will also help the families of military 
reservists cope with the financial burden of their absence. In this way 
we ensure that we preserve our great tradition of citizen soldiers at 
such a critical time in the Nation's history.
  In his speech designating this week National Employer Support of the 
Guard and Reserve Week, President Bush recognized several large 
businesses for their support of the Guard and Reserve. I, too, commend 
these big corporations for their support of our reservists and 
guardsmen, but the President has again showed that he doesn't 
understand the plight of our military reservists and their smaller 
employers. The fact is big businesses, like those the President 
recently honored, aren't going out of business if one of their 
reservist employees is called up. Small businesses may.
  My legislation provides a real solution--helping small businesses 
maintain productivity and helping make up the difference for reservists 
who face pay cuts when they're deployed--not just a pat on the back 
that this week provides. I urge the President and all of my colleagues 
to support my proposal.

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