[Congressional Record Volume 154, Number 16 (Thursday, January 31, 2008)]
[Senate]
[Pages S511-S518]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                            STIMULUS PACKAGE

  Mrs. LINCOLN. Mr. President, yesterday the Finance Committee went to 
work. We marked up a stimulus package after the House had done their 
package on Tuesday, I believe. They sent a package to us because, quite 
frankly, as we look out across this great Nation, we understand that 
our economy needs a jolt. It needs a quick jolt. It needs something for 
hard-working Americans to participate in bringing this country back on 
line and getting our economy going and moving forward. That is exactly 
what we did in the Finance Committee. We took the bill the House had 
quickly done. They moved quickly with the administration to put 
something out there. That was a good thing to do, get us started and 
get us moving in the Congress. But, unfortunately, as we looked at that 
package they sent us, there were some very hard-working Americans, some 
justifiable Americans who needed to be a part of stimulating this 
economy who had been left out.
  So what we did in the Finance Committee was to try to make some 
improvements in a timely way to the package the House had already 
produced and to get it over here so we could get to work on it here on 
the floor of the Senate and move it forward so that the people of this 
country could again reinvigorate themselves and their economies and get 
back to work. Our plan included two very key groups the House had left 
out. Those two groups are our seniors and disabled veterans.
  I know the Presiding Officer, like myself and many others, has a 
tremendous respect for the seniors of this Nation. These are the 
individuals who have built this country. They have labored hard. They 
have given their all. The fact that their Social Security income does 
not count as income on their tax returns is no reason to leave them out 
of this equation. The other group is our disabled veterans. I know my 
colleagues can realize the importance of this group. These are 
courageous Americans who have fought, given to this country in order 
that we can live in this great land and enjoy the freedoms we do. There 
is no reason we should leave these two groups out in stimulating the 
economy.
  At least 20 million seniors depend primarily on Social Security 
income for their retirement. These are individuals who are out there in 
their communities. They are working hard still to be an active part of 
the community. But more importantly, they are also those who need it 
the most. They are the ones who are deciding between whether they are 
going to purchase their prescription drugs, whether they are going to 
buy food, whether they are going to pay the utility bill, and whether 
they will be able to do that small something special for a grandchild 
or a neighbor. Those are the kinds of people they are.
  I did a call-in show yesterday. There was the most delightful man, an 
elderly gentleman--I believe he was from South Carolina--who called in 
to the program.
  He said: I am one of those seniors. I don't want to be forgotten. I 
want to be a part of stimulating this economy. I really need it. I am 
appreciative that you didn't forget our wounded warriors, our disabled 
veterans, those who have given of themselves that this country could be 
free and respected. But I have to tell you, if you leave us out, it 
will be OK because I still believe in this country, and I still believe 
in those who do need it, those folks who are working hard to take care 
of their families.
  That is just the kind of person we need to help, somebody who has 
that kind of compassion, somebody who respects the fact that they need 
it, but they are going to continue to give back in whatever possible 
way they can.
  There is no excuse for us not bringing up this Senate Finance 
Committee package and passing it, leaving those two groups of 
individuals out in this great opportunity to revitalize our economy, 
put faith back in the American people that we are going to act quickly, 
that we are going to target these resources to places where we know 
they will get back into the economy.
  If you look at the facts from the AARP, older Americans spend about 
92 percent of their income--a greater proportionate share than all 
other adults. They are going to spend those resources on putting it 
back into the economy. Food, for instance--more than 85 percent of the 
food we consume in this country is produced or processed in this 
country. Those are American jobs they are going to be supporting. It is 
an economy that supports us all which they will be supporting. It is 
critical that we make sure these two groups are not left out, and we 
did that in the Finance Committee. Those were two of our priorities.
  I was so proud to join with my colleague, Senator Olympia Snowe of 
Maine, to offer the amendment for our wounded warriors. I was so proud 
of Senator Baucus and Senator Grassley for working with us to make that 
happen, realizing a group had been left out that was essential and that 
should not lose the opportunity nor the belief we have in them that 
they are an integral part of this American fabric. They are the very 
reason we enjoy and maintain the freedoms we have.
  Our disabled veterans are such an incredibly important group. We know 
there are approximately 3.2 million veterans who receive disability 
income from the Veterans' Administration who will be eligible for 
rebates under the Finance Committee plan; 3.2 million of them receive 
disability income they cannot count as income on their tax returns. We 
don't know that all 3.2 million will qualify, but we do know that, at 
the least, a quarter of a million of them will. We know for a fact that 
a quarter of a million of them will qualify for that rebate. It is 
certainly more than that that is possible. But the point is not how 
many of them qualify. The point is that we would attempt to leave out 
any of them in terms of being able to participate in this economic 
stimulus.

  These Americans--our wounded warriors, our disabled veterans, just 
like our seniors and just like hard-working American families--are 
going to spend their rebate checks on a variety of needs. They are 
either going to be spending it on food or a new pair of shoes. They are 
going to be taking care of their needs, maybe pumping money back into 
the economy in a multitude of ways.
  The Senate plan is a good plan. It is good for Americans. It is good 
for seniors. It is good for disabled veterans. It is good for our 
economy. We have worked in the committee in a timely way. We have 
targeted these dollars. We have kept a rein on the amount of money we 
are spending, having been advised by all kinds of economists, the 
Secretary of the Treasury, former Secretaries of the Treasury, who said 
to us: Do not make the plan too big. Keep it limited.
  That is exactly what we did. But we did take the opportunity to not 
forget two very valuable parts of the American fabric and the American 
family; that is, our seniors and our disabled veterans.
  If we take up this Finance Committee package and pass it quickly and 
get it to the President, then we will have achieved the goal of 
stimulating our economy and not leaving out any Americans who could be 
such a vital part in helping us do that.
  So I encourage all of my colleagues, let's don't sit here and 
squabble over a whole lot of things. Let's move quickly, taking what 
the House has done, making the improvements we have

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made, and move forward, get this done. Then we have an even greater 
opportunity to start in on the work that is the business of the U.S. 
Congress; that is, to make sure the investment we have made in these 
people and in this great stimulus package is not lost or squandered 
because we are going to follow it up with a multitude of other things 
that are on our plate that can continue to stimulate the economy.
  The one that comes to mind, to me, is the farm bill. The farm bill, 
which we passed out of here with 78, 79 votes--it would have been more 
if all the Members had been here; we had never gotten that many votes 
for a farm bill, I don't think, in our history--is a great opportunity 
to infuse rural America with development dollars, conservation programs 
that need to be funded, and looking at nutrition programs, which are 
essential. I just mentioned that 85 percent-plus of the food we consume 
in this country is grown or processed here. Think of the good American 
jobs we stimulate when we make sure those nutrition programs are in 
place.
  We have a host of opportunities before us. I hope--I hope--we will 
not drag our feet on this stimulus package; that we can come together 
in a bipartisan way, just as we did in the Finance Committee, and vote 
for this stimulus package that has come out of committee with the 
improvements that do not leave any of our American families behind.
  Thank you, Mr. President.
  The PRESIDING OFFICER. The Senator from Vermont.
  Mr. SANDERS. Mr. President, I ask to speak as in morning business.
  The PRESIDING OFFICER. We are in a period of morning business.
  Mr. SANDERS. Mr. President, let me congratulate the Senator from 
Arkansas on her fine and important work on the Finance Committee. Let 
me also congratulate Majority Leader Reid for his leadership, and 
Senator Baucus, Senator Grassley, and the other members for taking the 
ball a significantly strong step forward as we deal with the economic 
problems facing our country.
  I think it is clear to the vast majority of the American people, if 
not to the President of the United States, that our country has some 
very serious economic problems. The middle class is shrinking. Tens of 
millions of Americans are working longer hours for low wages. Poverty 
is increasing. And there is a level of economic desperation among the 
lowest income people in our country that many of us have not seen for a 
very long time.
  As we speak, senior citizens in the State of Vermont are finding it 
extremely difficult to pay for their home heating fuel bills, which are 
soaring, as they are seeing record-breaking levels of the cost for home 
heating oil.
  Emergency food banks in the State of Vermont and throughout this 
country are literally running out of food because many low-income 
working people are simply, today, not being able to earn enough money 
to purchase the food they need for their families.
  Homeless shelters are running out of beds. We have some major 
economic problems, and the time is long overdue for this Congress to 
begin to address them.
  As we discuss an economic stimulus package, there are Members of the 
Senate--and there are many Americans--who have appropriately raised 
questions about the amount of money we intend to spend in an economic 
stimulus package. There are people who point out, quite correctly, that 
in this country today we continue to have record-breaking deficits, and 
we have a huge national debt.
  All of that is a very legitimate concern I share. That is why we 
should not heed the advice of the President who, in his State of the 
Union Address, urged us to extend hundreds of billions of dollars in 
tax breaks to the wealthiest 1 percent of our population. No, I do not 
think the wealthiest people in this country need more tax breaks. I 
think we have to start focusing our attention on the needs of the 
middle class, on working families, on those Americans most in need.
  At this point, let me give thanks to our friends in the House who 
passed an economic stimulus package which has started the ball rolling. 
Now, with the legislation we are debating in the Senate, it is our job 
to improve upon what the House did, and I hope we will be doing exactly 
that.
  While the House bill has a number of important attributes, the 
stimulus package passed yesterday in the Senate Finance Committee is, 
in fact, a much better and a far more significant piece of legislation. 
The Senate bill, among other things, understands low-income senior 
citizens across this country are facing very serious economic problems. 
Like low- and middle-income working people, they need help.
  Senior citizens, every week I go back to Vermont, tell me they cannot 
survive on their Social Security checks, and that the cost-of-living 
COLAs are too small. They cannot find the money they need to heat their 
homes. They are having a hard time purchasing the food they need. That 
is why I very strongly support the provision in that legislation passed 
by the Senate Finance Committee which will enable over 20 million 
senior citizens to get a one-time $500 tax rebate. This is money that 
will be part of an economic stimulus because these are some of the 
people most in need who will certainly spend that money quite quickly, 
helping to create jobs in the process.
  So I urge all of my colleagues, in a nonpartisan way, to stand with 
the hard-pressed, low-income senior citizens of our country and support 
the provision in the Senate Finance Committee bill which says we are 
going to provide a tax rebate to senior citizens. They cannot and must 
not be excluded from the economic stimulus package.
  Further, the Senate bill does another very important thing in 
reaching out to our disabled American veterans, many of whom are also 
struggling economically. By definition, these are people who have been 
disabled defending the United States of America. They must not be 
forgotten as we discuss an economic stimulus package. At the very 
least, what the Senate Finance Committee did will provide a rebate for 
some 250,000 of those veterans, and perhaps even more. That is the 
right thing to do from a moral perspective. Those people deserve that 
help. In fact, helping them will also provide an economic stimulus.
  The Senate Finance bill also extends unemployment benefits by 13 
weeks in all States and 26 weeks in States experiencing high rates of 
unemployment. That is a good and proper thing to do as well. As 
unemployment rises--and especially in those areas where there are 
consistently high levels of unemployment--many people are going to run 
out of unemployment benefits. Their unemployment benefits will expire. 
Those benefits need to be extended, and that is what the Senate bill 
does, and the House bill does not.
  So in my view, the legislation coming out of the Senate Finance 
Committee is a more significant piece of legislation than that passed 
in the House in helping those people who are most in need. It is also 
more important in terms of providing the economic stimulus our economy 
needs.
  But to be very frank with you, what came out of the Senate Finance 
Committee is an important step forward, an important improvement over 
what existed in the House, but we need on the floor of the Senate to do 
much more than what was done in the Senate Finance Committee.
  For example, the Senate Finance Committee bill does not provide any 
funding for food stamps. According to the U.S. Department of 
Agriculture, over 35 million Americans struggled to put food on the 
table last year, and the number of the hungriest Americans--those 
people who literally do not have enough food every day--that number 
goes up and up and up.
  Economists from different political persuasions, both the left and 
the right, have told us food stamp benefits would be one of the best 
ways to stimulate the economy. So, once again, you are dealing with the 
moral issue: As the United States of America, in the year 2008, we 
should not tolerate a situation where any American goes hungry, where 
food banks are running out of food. That is not what America should be 
about.
  Second of all, as we expand the Food Stamp Program, we create a very 
important economic stimulus by definition. If people do not have enough 
food to eat, they are going to spend that money. They are going to 
spend it on food, food which is, by and large, grown in the United 
States of America, and we are going to create jobs in that

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process. So my hope is, again, in a bipartisan or tripartisan manner, 
the Senate will add food stamps to the economic stimulus package.
  The Baucus substitute--the Senate Finance Committee bill--just like 
the House bill, does not provide any money for the Low Income Home 
Energy Assistance Program, usually known as LIHEAP. This is a program 
which is extraordinarily important to cold-weather States such as 
Vermont, New England, all across the northern tier. But, in fact, it is 
important to every State in this country because in Arizona, in the 
summer, when it gets to 120 degrees, people there need help as well.
  Right now, in the State of Vermont, and all over this country, we 
have senior citizens and low-income people struggling--tearing out 
their hair--trying to figure out how they are going to pay to heat 
their homes when the cost of home heating oil is now well over $3 a 
gallon. The reality is that because we have not increased funding for 
LIHEAP to the degree that we should, either the amount of money each 
individual person is getting is going down or States are making the 
decision to provide LIHEAP funding to fewer of our people. Neither 
alternative is acceptable.
  This is a cold winter in various parts of this country. It has been 
below zero in the State of Vermont recently. No American should go 
cold. No American should be forced to make a choice between food and 
heating his or her home. We have to expand LIHEAP funding. People who 
receive that will be spending that money, and that is also an economic 
stimulus. So in my view, including food stamps, LIHEAP, and 
unemployment benefits in the economic stimulus package is not only the 
right thing to do in terms of stimulating the economy, it is the moral 
thing to do. It is what we as a nation should be doing.

  For too long I think the White House and the Congress have been 
identified with programs that help the wealthiest people in this 
country--the people, in fact, who do not need any help at all. The 
richest 1 percent is doing fine without any tax breaks from Congress. 
Now is the time to start paying attention to the middle class, the 
working families, the vast majority of our people who are struggling 
economically. Now is their time, and we have to listen to their needs 
and respond to them.
  In addition to addressing issues such as LIHEAP, food stamps, and 
unemployment compensation, there are other areas we should be moving 
forward on: rebuilding and repairing our schools, bridges, roads, 
culverts, sewer systems, rail, ports, and airports. Not only would we 
be addressing the tremendous problems we have in our crumbling 
infrastructure, but that is also a quick route to put people in the 
construction industry back to work. In the State of Vermont, it is 
estimated that we have over $1 billion in work that has to be done in 
our infrastructure. The estimate, according to the engineers, is that 
we have over $1 trillion of unmet infrastructure needs in America. We 
should be rebuilding our schools, making them more energy efficient, 
and in the process we put our working people in the construction 
industry back to work. We should address that issue as well.
  Coming from a cold weather State, I am very conscious of the issue of 
weatherization. It makes zero sense that in Vermont and all across this 
country we have millions of lower income people who are living in homes 
which are poorly insulated, which do not have storm windows, their 
roofs leak energy, so these people are spending money for heating fuel 
that is literally going out the window and through the roof. 
Weatherization projects are already in existence in all of the States. 
Putting money into weatherization puts people to work. It saves on the 
fuel costs for many seniors, lower income people, and it also, not 
unimportantly, helps us reduce greenhouse gas emissions. So funding 
weatherization is a win-win-win. We should do that as well.
  I also believe we should be increasing renewable energy investments 
in wind and solar. That is, as I understand it, in the Finance 
Committee bill, which is very important. We are losing out to the rest 
of the world in creating the kinds of industries we need through solar, 
energy, and wind. In the process, we would create many good-paying 
jobs. The idea that we have not yet passed an extended tax credit for 
wind and solar makes zero sense. We have to move in that area as well.
  I personally also wish to see included in a stimulus package 
increased funding for community health centers, because when people 
lose their jobs, they are losing their health care. Federally qualified 
health centers have been a wonderful tool to bring people into primary 
health care access, regardless of their incomes.
  Back in 2001, I was an early backer of tax rebates--one of those who 
actually came up with that concept. I support tax rebates for the 
middle class, for low-income families with children, and for persons 
with disabilities. I also believe that senior citizens should be 
receiving help in this bill as well through a bonus in their Social 
Security checks.
  So I think we are making some progress. I think the Senate bill is 
far better than the House bill. I think we have the responsibility on 
the floor of the Senate to improve upon what was done in the Finance 
Committee. I hope that in a nonpartisan way, this Senate will reach out 
to the American people and let them know we are aware of the pain they 
are experiencing; we know what is happening in the low-income 
community; we know what is happening to our veterans; we know what is 
happening to our senior citizens; and we finally are going to start 
focusing on their needs, rather than the needs of the wealthiest 1 
percent who have occupied so much of the attention of the Senate for so 
many years.
  We have an opportunity to do something very important for the 
American people. I hope we do it, and I hope we do it as quickly as we 
possibly can.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from Florida is recognized.
  Mr. NELSON of Florida. Mr. President, I say to the Senator from 
Vermont, who comes from a cold weather State, this Senator comes from a 
warm weather State, and a lot of the ideas proffered by the Senator 
from Vermont apply to my State as well as his. He has very eloquently 
laid out how; that if you want to do stimulus, the quickest way to get 
the money into the economy and flowing so those dollars can turn over 
is increased compensation, unemployment compensation, and increased 
food stamps. This $300-per-person rebate approved over in the House, 
improved over here--not just because it is $500, but because it is 
going to senior citizens as well in the Senate Finance Committee 
package, whichever one of those you look at, it is going to be May, 
June, July, or August before those checks get out into the economy. If 
you want to do stimulus immediately, you are talking about 2 weeks away 
with increased unemployment compensation and food stamps.
  What the Senator says about taking care of our veterans, our disabled 
veterans, and what he says about the infrastructure, is true. We 
desperately need infrastructure improvements. As far as a stimulus 
right now, that is not going to put the money out there, but a lot of 
this stimulus package is psychological. It is the fact that the Federal 
Reserve, through monetary policy, by cutting the interest rates that 
banks share with each other--that helps, but there is a delay, a lag, 
before that does anything. The immediate jolt is psychological. So too 
with this stimulus package. At the end of the day, this Senator is 
going to support it because we do need that psychological jolt, that 
the Government is standing behind us, not slipping further into 
recession. But if this Senator had his druthers, he shares a lot of the 
ideas that the Senator from Vermont has proffered on the quick ways to 
get the money out into the economy.
  Mr. President, I ask unanimous consent that the Senator from Colorado 
be recognized following my remarks.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. NELSON of Florida. Mr. President, I can tell my colleagues that 
our people are hurting. We don't normally think of the State of 
Florida, which is in the megatrend, which is the fourth largest State, 
which is going to become the third largest State within 4 years, the 
State that is the microcosm of the entire country in almost every 
demographic group--we reflect the country, in large part because a lot 
of the country has moved to Florida--you don't

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normally think of a go-go State such as that as being hurting 
economically. But, indeed, our State is hurting. A lot of it has to do 
with the real estate market going flat. You take tremendously robust 
areas such as Fort Myers, Lee County on the southwest coast of Florida; 
it has been in a building boom for years. Of course, that real estate 
market is flat now, and from all the ripple effects throughout the 
economy as a result of that, we are hurting. Our people are hurting 
because they are paying more for gas, for milk, for bread. Meanwhile, 
because of the flat real estate market, they are seeing their housing 
values plummet, and many of them are trying to correct the situation by 
selling their houses, which they can't sell, or unwinding the bad loans 
they have. But then they can't get buyers to look at their homes.
  We see the statistics bear this out nationally. December's rate on 
unemployment was 5 percent, and that is the highest it has been in 2 
years. The GDP growth for the last quarter of last year, 2007, 
increased only .6 of a percent compared to an almost 5-percent increase 
in the third quarter of 2007. Yesterday, the Fed, in response, cut the 
interest rates again by a half point, and this is the second rate cut 
in 8 days. Today, the Department of Labor released the initial 
unemployment claims for the week that ended last week, January 26, and 
guess who had the largest unemployment increase in the country? My 
State of Florida. The layoffs are concentrated in construction, in 
trade, in service, and manufacturing.
  We are in the middle of a crisis with foreclosures, mortgage 
defaults, and we are hearing the experts say that the worst is still to 
come. Two million Americans could lose their homes. We had in Florida 
last year, in 2007, the second highest mortgage foreclosure rate with 
more than 2 percent of all our households entering some state of 
foreclosure during the year. That is a 100-percent increase over the 
previous year, and Florida home sales last year were down 31 percent 
compared to the previous year. Oh, by the way, the median home price 
dropped 13 percent.
  So we are now seeing that ripple effect through the economy, 
particularly in a State such as mine that was such a hot growth market. 
We are seeing it in the deterioration of the home values, and we are 
seeing it in the State's economy. The fall-off of revenues to the State 
of Florida has been significant.
  Since the housing crisis is at the heart of this slowdown, it is 
crucial that in this rescue passage we target these specific concerns. 
There is going to be a temporary increase in the conforming loan limits 
of Fannie Mae and Freddie Mac as well as the FHA program. I think these 
measures will help restore confidence and liquidity in the housing 
market. The Senate bill adds more aid, including a provision that would 
allow State and local governments to issue bonds to help with the 
financing of those subprime loans.
  Then, of course, we mentioned earlier disabled veterans. This package 
is going to provide quick help to disabled veterans, as well as 
seniors, and I am certainly hoping that we are going to get a clear up-
or-down vote on providing an additional 13 weeks of unemployment 
compensation that is going to help ease the pain of those who are being 
laid off because of this recession we have now slipped into.
  Time is of the essence. In a perfect world, we shouldn't have to do 
this, because whatever we come up with in this package we have to go 
out and borrow, and that means we are going to borrow it from China. 
That is not good. That is piling on more debt to the national debt. But 
the fact is we have to do something. I am going to support it.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Colorado is recognized.
  Mr. SALAZAR. Mr. President, I rise today to discuss the state of our 
economy and the need for Congress to pass the economic stimulus 
legislation that we reported out of the Senate Finance Committee 
yesterday, with my strong support. I urge my colleagues to embrace the 
urgency we should be bringing to this legislation.
  This is an issue that has understandably received significant 
attention over the past several weeks and continues to cause people in 
my State of Colorado and across the Nation a great deal of concern.
  I want to start by listing a few pertinent facts.
  After one of the worst holiday retail seasons in years, consumer 
spending, which accounts for two-thirds of the national economy, is 
experiencing a sharp pullback.
  Economists are now predicting that GDP growth for 2008 will barely 
exceed 2 percent for the year.
  Home values are plummeting in many areas, and foreclosures are on the 
rise. In 2007, Colorado ranked fifth in the Nation in foreclosures. 
Foreclosures were up 30 percent over 2006 and 140 percent over 2005.
  The December unemployment rate in Colorado was up nearly half a 
percentage point from November.
  A barrel of oil costs over $90. On average, a gallon of gas costs 
almost $3.
  The economy is on thin ice.
  But economic indicators are one thing, and the financial pressures 
that middle-class families are feeling is another. Families across 
Colorado and the Nation are feeling squeezed by the growing costs of 
energy, education, and health care. Savings are melting away, and 
disposable income is a thing of the past for many Americans.
  I know what it feels like to not know whether you will have enough 
money to provide your family with the things they need or the future 
they deserve.
  With that in mind, there is no better way we can start the important 
work of the second session of the 110th Congress than by providing some 
measure of relief to Americans who are struggling financially, and by 
doing whatever we can to reinvigorate the slumping economy.
  I believe that the central components of the Finance Committee 
package do an excellent job of meeting those objectives.
  I strongly support providing a one-time tax rebate to low- and 
middle-income families to help them pay their bills and make it through 
these tough times. This will help jumpstart consumer spending, because 
most of these rebates will get spent almost immediately.
  The Senate package will provide $500 per individual, $1000 per 
couple, and $300 for every child under the age of 17 for qualifying tax 
filers. I am pleased that the Senate rebate proposal includes upper 
income limits to ensure that the rebates are targeted, in addition to 
being timely and temporary.
  I also support tax incentives that provide relief for small 
businesses and encourage them to invest and create jobs. These 
businesses are the engine of the economy in my State of Colorado and 
across the Nation--helping them is an excellent way to get our economy 
moving again.
  I support extending unemployment benefits for an extra 13 weeks, and 
even longer in high-unemployment States. We have seen a lot of evidence 
about how effective these benefits are at targeting assistance to 
people who need it and will spend it, and I am glad we were able to get 
that done in the Finance Committee.
  Our bill also provides rebates to nearly 20 million seniors living on 
Social Security income and nearly 250,000 disabled veterans that were 
left out of the House bill.
  Our bill temporarily extends important renewable energy and energy 
efficiency tax incentives. These tax credits will spur investment and 
job creation in an industry that is critical to our economic future.
  Our bill temporarily raises the national cap on tax-exempt mortgage 
revenue bonds, which State and local governments may use to provide 
low-interest financing to low-income home buyers and homeowners. This 
proposal will help address another central contributor to our economic 
troubles--the fall-out from the subprime mortgage crisis, which has 
been especially severe in my State of Colorado.

  Lastly, our bill strengthens safeguards designed to prevent people 
from obtaining tax rebates they are not entitled to by requiring tax 
filers to have a valid Social Security number in order to receive a 
rebate.
  As a result of these important proposals, I believe the stimulus 
legislation currently before the Senate will go a long way toward 
meeting our primary objective: putting money as quickly as possibly 
into the hands of people and businesses who will put it right back into 
the economy.
  Having said that, I believe that once we pass this stimulus package 
we will

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need to take a second set of steps to bolster the Nation's longer term 
fiscal health.
  I believe we need to move quickly to pass a farm bill that will help 
revitalize rural economies in Colorado and across the country. I 
believe we need to boost investment in our Nation's infrastructure and 
do more to help address the crisis in housing and real estate. Also I 
believe we need to strengthen our programs that provide assistance to 
American workers, businesses, and farmers who are adversely impacted by 
our trade policies.
  Accordingly, I encourage my colleagues to do what we can now to put 
money right back into the economy by working quickly to pass the 
legislation before us, but also pledge to continue to work to enact 
policies that could make a real difference to our economy's long-term 
health.
  The American economy is hurting, but it is fundamentally resilient. I 
firmly believe that by working quickly to provide short-term stimulus, 
and by taking modest steps to provide stability in the longer term, we 
can get back on track.
  Just this week, we heard from the President of the United States on 
the need for us to move forward with an economic stimulus package 
because he recognizes, as do American families, that the economy is in 
trouble. It is remarkable that we have bipartisan movement moving 
forward, with the President working with Speaker Pelosi and others to 
try to get a stimulus package put together that makes sense for the 
United States of America.
  Yesterday, in the Finance Committee, there was another demonstration 
of what you can do when you work together. With the leadership of 
Senators Baucus and Grassley, we put together a robust package that 
should be considered on the floor here--hopefully, later today.
  I wish to say a few things about that package. It is important for us 
to recognize that what came out of the House has now been put into a 
Finance Committee package that is much improved that will help us 
stimulate the economy in a number of different ways.
  There are improvements that need to be made with the House 
legislation. Like any other legislation, as you get into the details, 
you find ways of making it better. That is what Senators Baucus and 
Grassley and the members of the Finance Committee did yesterday.
  I wish to simply address five key points that I believe make this 
package an improved one.
  The first point is simplicity. The House version has a rebate 
package, attempting to get money back into the pockets of consumers to 
stimulate demand in the economy. That package is a relatively complex 
formulation of how you provide those rebates. Our package coming out of 
the Finance Committee is not. It says that if you are a tax filer, you 
are going to get $500. If you are filing jointly, you and your spouse 
get $1,000. If you are filing jointly and you have two children, it 
will be $1,600. It is a relatively simple package to understand, and 
that is about two-thirds of what is included in the package. So the 
American public will be able to understand what it is they are going to 
get without having to go through an accounting exercise in order to 
determine what kind of tax rebates they are going to get. So the 
package out of the Finance Committee should be applauded for its 
simplicity. It improves significantly upon the House package in that 
regard.
  Secondly, there were groups of important Americans whom we have a 
moral obligation to stand up for who were left out of the package that 
came out of the House. Twenty million seniors in America, who are the 
ones who paved the way for all of us to have the America we have today, 
would be left out of the tax rebate in the House package. The reason 
they would be left out in the House package is because the way that 
formulation of the tax rebate was put together is based on earned 
income. If you are a retired senior on Social Security or on a pension, 
you don't have earned income. That means you don't qualify for the tax 
rebate.
  Therefore, what we did in this much-improved package out of the 
Finance Committee is said we are going to provide the tax rebate to 
these 20 million Americans. I hope that across the United States of 
America, those who care about seniors, and seniors themselves, are 
watching what the Senate does this afternoon and tomorrow and beyond 
with respect to this much-improved package that would add these 20 
million seniors to the tax rebate.
  In addition, the House package that came over here also left out 
another very important group of people: disabled veterans. Mr. 
President, 250,000 disabled veterans are left out of the tax rebate 
because the benefits they receive are not characterized as earned 
income. I would bet, if you ask our colleagues in the Senate today--
Democrats and Republicans--they would say they want to stand for our 
veterans and honor our Nation's commitments to help them. They would 
say we ought not to leave 250,000 veterans behind. The Senate Finance 
Committee, in a bipartisan way, said: We are not going to leave 250,000 
disabled veterans behind. We are going to get them the tax rebate they 
deserve. So our Finance Committee package, in my view, closes these 
gaps that were left in the House package that was passed last week.
  In addition, what we do in our Finance Committee package is move 
forward with the extension of unemployment insurance. Yes, we are 
seeing the signs of significant unemployment in many States. In my 
State alone, unemployment has gone up about half a percentage point in 
the last several months. If you focus on Michigan, Ohio, and Nevada, 
where you are seeing unemployment rates as high as 8 percent, when you 
see that, it is important for us to recognize that our unemployment 
insurance program should reach those people who don't have a job. At 
the end of the day, if you think about the quality of life for people 
in this country, if you don't have a job, you cannot have a quality of 
life. Extending those benefits is very important.
  In addition, our package takes some of what the House did with 
respect to incentives for job creation for small and big businesses 
alike--about $50 billion, more or less, is what would be used to 
incentivize job creation through both small and large businesses. It 
would do it by creating bonus depreciation and other mechanisms to 
incentivize businesses to invest in themselves.
  When you think about small businesses in particular, we know they are 
the economic generators of most of the jobs we have in America today. 
By providing a mechanism that gives the bonus depreciation, we will be 
able to make sure these businesses are able to invest in themselves. I 
know of one small business owner in Colorado who said that because of 
this package, he will be able to move forward and open a restaurant, 
where he will be able to hire somewhere between 20 and 35 people. So 
this stimulus package will do a lot for small business. It is something 
we very much appreciate.
  But we decided not just to leave it there because there are some 
other important aspects of the economy that need to be addressed in the 
short term. We did that through some improvements in that aspect of the 
stimulus package.
  First, we looked at the energy issue we are facing in America today. 
We know that in many States the new frontier of the energy revolution 
is coming our way. In Colorado, you see it in how we are capturing the 
power of the Sun and wind and the power of the biomass. But many of the 
production tax credits and investment tax credits are going to expire. 
This positive economic wave needs a short-term extension. We have done 
that in this package, thanks to the leadership of Senator Cantwell and 
others on the Finance Committee who pushed that amendment so hard.
  Mr. President, I urge my colleagues to support the Finance Committee 
package and get our economy up and running again.
  In conclusion, this is a stimulus package. That means it needs to be 
targeted, timely, and temporary. But this package isn't going to solve 
the economic problems that are facing our country today. There are 
longer term issues that are crying out for a solution, much of which we 
ought to be able to do in the Congress this year alone. I am throwing 
out just a few of those examples.
  First, the 2007 farm bill. As the Presiding Officer knows, food 
security is

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important in Montana. It is important for the Nation, and it is 
important for the world. As attorney general for Colorado and now as a 
Senator, I have had a sign on my desk that says ``no farms, no food.'' 
I wonder what would happen to America if we didn't have our grocery 
shelves stocked with food and have the most inexpensive and high-
quality foods of any nation in the world.
  The 2007 farm bill, which we crafted out of the Agriculture 
Committee, which garnered the support of 82 Senators in this Chamber, 
needs to be brought across the finish line. So the administration--the 
President--should be asking us to move that farm bill through and get 
it done quickly. We need to be able to do it. We were able to get it 
through the Senate. We need to pivot off of the stimulus package and 
get the farm bill done. The food security of America requires us to do 
that.
  We cannot just stop, in my view, moving forward with the farm bill. 
There is also other work we need to do.
  We are in a housing crisis in America today. We are in a housing 
crisis in my State of Colorado. In Colorado, we have 1 out of 375 homes 
currently in foreclosure. These are families who lived in those homes 
who have lost those homes. One out of 375 homes is in foreclosure. But 
that doesn't tell the story of pain. Yes, those families are certainly 
suffering, but think about all of the other homeowners in Colorado--
probably 90 percent of them--who have seen a decline in home values. 
For most Americans, their home is essentially the majority of the 
equity they own. So when you see a decline in home values, you also see 
a taking away from the value most American families have built into 
their homes.
  When you look at the housing industry, the home construction 
industry, it is, as my friend Senator Conrad said yesterday in the 
Finance Committee, not in a recession; homebuilders are, in effect, in 
a depression because of what is happening in the housing market in the 
Nation. We try to do something in this bill, but there is other work we 
have to do to try to stand up the housing component of our economy 
because that is such a key indicator of the strength of our economy.
  So we need to do the farm bill, and we need to do additional 
significant work to try to right the housing crisis. But we cannot stop 
with the farm bill and we cannot stop with the housing issues. We also 
need to address other issues that are long term, which we have a 
historic opportunity to address, including the issue of energy and 
renewables, which we tried to get through the Senate last year.
  We must stop for a moment and say thank you that a part of the energy 
package we debated on the Senate floor is now law. We have CAFE 
standards that are going to bring about significant savings in oil that 
we currently import from other countries. That is a very good thing. We 
have a renewable fuels standard that has quintupled our goal where we 
want to go in growing energy independence. We created an energy package 
that says we as America have a vision that, by 2025, 25 percent of our 
energy will come from the power of the Sun, the power of the wind, and 
from the crops we grow in America. What was missing in that package was 
a part of the legislation the Finance Committee passed in a bipartisan 
way which would have given us the jet engine to power this clean energy 
economy for the 21st century.
  We must return to that energy legislation to complete a package that 
will help us move forward to address the fundamental values at issue. 
Those fundamental values are very simple. They are about national 
security, so we are not compromising foreign policy by our 
overdependence on foreign oil. Those values are about making sure we 
are taking care of our planet and addressing the issue of global 
warming, and those values are the economic opportunities for America 
from shore to shore to create economic opportunity from the new energy 
economy.
  While this stimulus bill is important and we must move forward with 
this bill in an urgent manner, let's all remember that this is but 
phase 1 of what we have to do to restore the foundations of a good 
long-term economy for the United States. This will be good work if we 
can get this work done in the Senate. But there is still much work in 
the days ahead.
  I yield the floor, and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Ms. STABENOW. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Salazar.) Without objection, it is so 
ordered.
  Ms. STABENOW. Mr. President, I rise today as a member of the Finance 
Committee, along with the distinguished Chair, to speak about what we 
did in terms of the Senate Finance stimulus package which I think is 
something that makes a tremendous amount of sense for people, for 
investment, for the economy.
  Before speaking about unemployment compensation insurance, which is a 
critical part of the package, let me say that I commend most sincerely 
our chairman, Senator Baucus, our ranking member, Senator Grassley, for 
again not only working together but producing something that is a 
balanced approach, that addresses both stimulus from the standpoint of 
helping people, puts money directly back into people's pockets, but 
also helping to stimulate and support businesses, small businesses, 
large businesses, those not only earning a profit and make investments 
but those that are not earning a profit and making investments.
  They had the vision to work with us in the area of alternative energy 
production, to extend production tax credits which directly relate to 
jobs. That is a part of this bill as well. I thank them for taking a 
look at the House package, and while we commend what was done--it was 
bipartisan, they did it quickly, it was a step in the right direction 
working with the White House--we found there were parts of what they 
did in structuring the rebate that needed to be fixed because we found 
that over 20 million seniors would be left out of getting a rebate 
because they do not have earned income; they are living on Social 
Security. They would have been left out, as well as about a quarter of 
a million disabled veterans, again, living on disability, not having 
earned income. Not only is it the right thing to do, the moral thing to 
do to make sure our seniors can get help, that we are helping disabled 
veterans, but economically it is the smart thing to do because we know 
those who are living on fixed incomes are spending the dollars because 
they have to be able to live, to pay the rent and the mortgage and the 
heating bill and the food and prescription drug costs, all of those. So 
immediately giving help to those who are struggling to make ends meet 
is not only right, it is smart in terms of the economy.

  The Senate package expands on what the House did to make sure we 
don't leave out people, that we don't leave out senior citizens and 
disabled veterans. We also make sure we don't leave out millions of 
Americans who have worked all their lives, middle-income wage earners 
who have built the American dream for their family, have a home, have 
had in the past the ability to send the kids to college, maybe they 
had, in Michigan, a cottage up north or a snowmobile; they had the 
ability to live the good life that we have all wanted for ourselves and 
our children and have found themselves caught in an economic downturn 
and, in fact, a recession.
  For the State of Michigan it looked like for too long a recession. A 
lot of middle-income families now find themselves in a situation where 
they are out of work. They want to work. Nobody wants to live on 40 
percent of their income, which is what unemployment compensation 
provides, and try to make the mortgage payment, care for the kids, pay 
the heating bill and the food bill and do all those things that we need 
to do--pay the gas prices, and so on. Nobody wants to be unemployed, 
and nobody wants to find themselves in a situation where they have to 
live on unemployment benefits. But we have millions of people who find 
themselves in that situation.
  Our Finance package makes sure we can extend benefits, 13 weeks for 
unemployed individuals in every State and then an additional 13 weeks 
for those who are in States of high unemployment. This is the right 
thing to do. It is not only the moral thing to do, it is the smart 
thing to do when it comes to the economy.
  We had economists from President Reagan's time, economists from 
President Clinton's time. We had everything

[[Page S517]]

in between. We had the Congressional Budget Office tell us that 
extending unemployment compensation is one of the top two ways, along 
with food stamps, to stimulate the economy quickly. We don't have to 
wait until the IRS gets done with tax season, doing all the rebates and 
getting around to doing the additional rebates in May, June, and July; 
this can happen immediately. We go directly to those who, 
unfortunately, are not in a position to save but need to spend every 
single dollar that comes into their household in order to try to hold 
things together and not lose the house and to keep their family going.
  All the signs show this will be a terrible recession for American 
workers. We are moving in a direction that is extremely difficult. The 
national unemployment rate has shot up to 5 percent, and experts 
predict it is going to rise above 6 percent in 2009. We have never had 
such a dramatic jump in unemployment without having a recession.
  In many States the jobs picture is far gloomier. As I mentioned, in 
Michigan, we have an unemployment rate of 7.6 percent. That is one area 
where we don't want to be first. In fact, we are working very hard to 
turn that around in a number of ways. Other parts of this bill deal 
with alternative energy, and that is great for us because we are making 
those wind turbines and solar panels and the alternative fuel vehicles. 
We are working very hard to move ourselves out of that situation. But 
we have a lot of people who are working very hard who, through no fault 
of their own, have lost their job and have not been able to find 
another one in this economy.
  In addition to Michigan's 7.6 percent, Mississippi is at 6.8 percent 
unemployment. Ohio, Alaska, and South Carolina are all over 6 percent 
and expected within the month to meet the trigger that is in this bill 
of 6.5 percent. That is a possibility. The unemployment problem is, 
unfortunately, getting worse rapidly. We had more than half a million 
workers join the ranks of the unemployed in the last month; 500,000 
people who have become unemployed in the last month alone. Workers who 
have lost their jobs are having more trouble finding work today than in 
past recessions. Today 17 percent of workers have been looking for a 
job for more than 26 weeks, compared to only 11 percent in 2001.
  Let me also stress that in the last package we had, the last stimulus 
package, we were looking at long-term unemployment of 11.3 percent, 
back in January 2001 when we were first talking about a stimulus and 
decided to include unemployment insurance. Now, as of December, this 
last December, long-term unemployment is 17.5 percent. It is 55 percent 
higher than it was when we started first talking about the last 
stimulus package in which we included unemployment compensation 
extension. I am very grateful to the chairman, the leadership of the 
Finance Committee, and our leader, Senator Reid, for speaking out about 
this and supporting our efforts to make sure this is in the package.

  This problem is affecting workers all across the economic spectrum, 
even those with a college education and years of experience. We have 
engineers in Michigan. We have talented, well-qualified, well-educated 
people who find themselves in this situation of losing their jobs. 
There are nearly two unemployed workers for every job opening across 
the country, which is also critical to talk about. We have right now 
7.7 million Americans who are competing for 4 million jobs.
  Some people say: Well, if somebody is on unemployment compensation, 
they just don't want to work. If we extend that compensation for 
another 13 weeks or 26 weeks, people just don't work. That will be an 
incentive not to work.
  I welcome anyone to talk to a family in Michigan and say that. The 
reality is, we have 7.7 million Americans competing for 4 million jobs. 
That raises a whole other host of issues I will not get into today 
about how we need to start exporting products and stop exporting jobs 
and all the other things we need to do to tackle this issue of a strong 
economy. The reality is for too many folks, that debate is not going to 
help. They are looking at, right now: Am I going to be able to keep the 
lights on? Am I going to be able to keep the phone on? Am I going to be 
able to make sure I can make a mortgage payment so my family is not out 
on the street? Those are the questions that are being asked. No one is 
finding themselves in unemployment insurance living it up. It is just 
about trying to help them keep the family together, keep things 
together until they can find that next job. This is what they are 
competing against.
  Because it is becoming harder to find a job, more families are 
finding that our unemployment insurance system is not providing enough 
support because of the numbers. Mr. President, 37 percent of 
recipients, 37 percent of the people who are unemployed exhaust their 
benefits before finding a job, and more will follow as the recession 
deepens. And 2.6 million people ran out of benefits in 2007. Again, 
they were competing for jobs where there are not enough jobs.
  These aren't just numbers. There is a lot of numbers that can make 
this case. But it is about millions of people, millions of Americans, 
millions of middle-class Americans, millions of people who are working 
hard to be in the middle class or fighting like crazy to stay in the 
middle class. That is what this is about. They are willing to work 
hard. They are looking for a job. They want a job. They are desperately 
concerned about losing their chance at the American dream for 
themselves and their families.
  In good economic times, our current employment benefits are enough to 
tide families over for the few weeks that it takes to find another job. 
I remember those times. Somebody needs some temporary help, they lose a 
job, turn around, go out on a few interviews and, a few weeks later, 
they have another job. But these are not those times. These are not 
good times.
  Yesterday's alarming GDP figures show that economic growth has 
trickled to a near halt. Savings have plummeted. Debt is rising. Mr. 
President, 200,000 families each month risk losing their home. It is 
staggering, in the greatest country in the world. The Fed has cut 
short-term interest rates more rapidly than at any other time in 
history. It is clear that we are facing an economic crisis that will 
make it even harder to find a job in the coming months. Faced with 
these clear warning signs, we must act quickly.
  Anything that we pass--and I sure hope it is the Senate Finance 
proposal because I think it is balanced, it is effective, it is 
targeted, and it is the right thing to do--has to include extending 
unemployment compensation for these families who have found themselves 
in such a traumatic situation. It is wrong to abandon them when they 
need it the most. It is the smart thing to do according to all 
economists. If we want to say we have done something that is targeted, 
that is quick, extending unemployment is much quicker than a rebate 
check. I certainly support the rebate check, but it is going to take a 
while to get those to people. Unemployment extension is much quicker. 
It is one of the quickest things we can do.
  So from every angle, this is the right thing to do. Most importantly, 
though, I look at the families who are looking to us to do the right 
thing.
  In the past we have waited too long, and working families have 
suffered. In the wake of September 11, the unemployment rate rose to 
5.3 percent in October of 2001. There was a bipartisan consensus we 
should do something, but political gridlock prevented us from enacting 
anything until the following March of 2002. By that time, unemployment 
was up to 5.7 percent and went to 5.9 percent in April. The 2001 
recession proved devastating for our economy and, unfortunately, too 
many families have not recovered from that time. The bill passed by the 
Finance Committee yesterday is a crucial step forward for our economy 
and for our workers and their families.
  By extending unemployment benefits for 13 weeks and providing an 
additional 13 weeks of benefits in high-unemployment States, as I said 
before, we provide an immediate boost to the economy and at the same 
time help hard-working middle-class families weather this storm.
  All of the economists agree: Each $1 invested in benefits to out-of-
work Americans leads to a $1.64 increase in growth--$1 equals $1.64 in 
growth. That is clearly one of the top two things we

[[Page S518]]

can do to be able to stimulate the economy. This compares to only 
pennies of stimulus in other areas.
  No stimulus package will be effective unless it provides real 
security for families struggling the most. We have to address this 
issue. We have to address this unemployment situation.
  Let me say, in closing, when we look at the coming year--in January 
of last year, average unemployment was 4.6 percent. At this time, it is 
5 percent, although many areas are much higher than that. But it is 
projected that by next year the unemployment rate will go up to 6.5 
percent. Now, granted, Michigan right now is at 7.6 percent. There are 
other States that are above 6 percent, above or close to 6.5 percent. 
But this is the direction in which we are going.
  One of the things about acting now with an unemployment compensation 
extension is we can help those families at this moment who need help 
now. We can actually be ahead of the curve rather than way behind in 
helping a family be able to keep their house or to be able to put their 
family at ease, knowing that at least there will be something 
available.
  The Senate Finance package makes sense. It is the right thing to do. 
On the business side, we not only focus on investments for those that 
are making a profit but for those that are not but are still making 
investments in important areas of the economy, such as manufacturing in 
Michigan. We extend critical tax credits for alternative energy 
production, which is critical. We make sure over 20 million seniors are 
not left out, that over 250,000 disabled veterans are not left out. We 
add a piece for State and local bonding authority for housing, which 
will help and support what the House did.
  Then we do what I have talked about today: We remember the faces of 
the people who have worked hard to make this country great, middle-
class families across this country who through no fault of their own 
and, I would argue, too much of the time through action of the current 
administration or inaction on what we need to be doing on enforcing 
trade policy or changing the way we fund health care in this country or 
doing other aggressive actions in order to keep jobs and expand jobs, 
find themselves caught in this economic downturn.
  They are looking to us. If there ever was a time that they would 
expect their Government to act on behalf of middle-class America, it 
would be now. It is critically important. I am very pleased the Senate 
Finance package includes extended unemployment compensation. I hope 
when it is time to vote, we will see a very strong bipartisan vote on 
this issue.
  Mr. President, before stepping down, I see my good friend, the 
ranking member, the Republican ranking member of the Finance Committee, 
on the floor. I personally thank him for working with us on an approach 
that is good for people. It is good for families, individuals, for 
seniors, disabled veterans, good for business, looks to the future on 
energy. I appreciate his leadership, as always.
  I am hopeful we will see a bipartisan vote that says we get it and we 
are committed and we are willing to move in a way that supports the 
economy and the families of America.
  Thank you, Mr. President.
  The PRESIDING OFFICER. The Senator from Maryland.

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