[Congressional Record Volume 156, Number 156 (Thursday, December 2, 2010)]
[Senate]
[Pages S8363-S8365]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EMERGENCY SENIOR CITIZENS RELIEF ACT
Mr. WHITEHOUSE. I thank the Chair.
At the end of my remarks, I will propound a unanimous consent request
that the minority party is aware is coming.
I travel around my State pretty often, and when I do, I hear a lot in
Rhode Island about the sacrifices people have had to make during what
are, for our State, still very difficult economic times. We are still
over 11 percent unemployment. Many of my constituents have adjusted to
this difficult economic climate by cutting back on extras and finding
savings in their personal lives wherever they can. But for our
seniors--Rhode Island has a very large population of seniors--who live
on a limited budget, simply cutting back is a very harsh option for
them.
In 2008, Rhode Island seniors on Social Security received an average
monthly payment of about $1,130. Madam Present, $1,130 a month is not a
lot to live on, particularly in the Northeast. I have heard from
seniors who worry about keeping the heat on in their homes because oil
prices are so high. I have heard from seniors who have to split pills
or skip doses because their prescription costs are so high. And I am
hearing this from people who have worked hard all their lives, who paid
into the system throughout their careers and who believed they would be
able to grow old comfortably. Instead, many of them are really just
scraping by on their Social Security benefits, and the benefits often
no longer cover their daily living expenses. So for people in this
situation, every penny counts.
This past year, for the first time since 1975, Social Security
recipients in Rhode Island, in New York, and elsewhere did not receive
a cost-of-living adjustment, or COLA, and it appears they will not
receive a cost-of-living adjustment in 2011 either. These yearly
adjustments are dictated by a specific formula that is tied to
inflation. I know that because of the slow economy, inflation has been
stagnant over the past 2 years. So the rigid mathematical formula that
drives the cost-of-living adjustment does not presently provide for the
cost-of-living adjustment seniors need.
This is a misfire in the cost-of-living calculation because it is
based on a market basket that includes things seniors don't buy a lot
of and it doesn't put adequate weight on heat and oil and energy,
prescriptions and medical devices, and things on which seniors do spend
a lot of money. It also overlooks people such as Chuck, who is a 67-
year-old retiree from North Providence, RI, who wrote to me recently to
express his concern that his monthly Social Security income will be
frozen at its current level for yet another year. He wrote that
regardless of what the COLA formula concludes, his cost of living
continues to rise. Chuck says:
Prices have risen at the supermarkets. Medications have
also increased in copayments. Today, I am paying more and
getting less for the dollar.
I believe Chuck speaks for many American seniors when he expresses
concern about the lack of an increase in Social Security payments. So
today I rise in support of the Emergency Senior Citizens Relief Act,
introduced by my colleague, Senator Sanders of Vermont. This bill would
help ease the strain on the budgets of our seniors by providing a
special one-time payment in 2011 of $250 to all Social Security
recipients. In effect, it would be a COLA replacement. Although a $250
COLA replacement may not sound like much money, for those on a limited
budget, the extra financial assistance provides a little extra peace of
mind amid skyrocketing health care and prescription drug costs. And for
seniors in New England, the payment could help keep the heat on through
the approaching winter.
This assistance would not be unprecedented. While this was the first
year in decades that seniors did not receive a COLA, we have taken
steps in recent years to provide special help to seniors and to
disabled Americans struggling through this recession. In 2008, I worked
very hard with my colleagues to secure a $300 rebate for seniors and
SSDI recipients in that year's economic stimulus act. In 2009, we again
worked to make sure the American Recovery and Reinvestment Act included
a one-time $250 payment to seniors and SSDI recipients. We now have a
chance to once again lend that helping hand to our seniors.
Passing this bill would be the right thing to do for seniors,
obviously, but it is also a good thing to do for our struggling
economy. In Rhode Island, for example, the payments would inject more
than $51 million into our economy--money that would quickly be spent on
essential items such as food and medicine.
As I said at the beginning, Rhode Island is hurting. Unemployment
stands at 11.4 percent, gas is now more than $3 per gallon, and our
seniors face yet another year of frozen Social Security payments. By
passing this Emergency Senior Citizens Relief Act, we can show our
seniors that they are not forgotten and in turn provide a valuable
boost to the local grocery stores, pharmacies, and shopping centers
that remain such an integral part of our local economy.
I urge my colleagues to join me in standing by our Nation's seniors
and to support the Emergency Senior Citizens Relief Act.
In that regard, I ask unanimous consent that the Finance Committee be
discharged of S. 3976, which is the Emergency Senior Citizens Relief
Act of 2010 that I have been discussing; that the Senate proceed to its
immediate consideration; that there be 4 hours of debate with respect
to the bill divided and controlled by Senator Sanders and the
Republican leader or his designee, and that no amendments or motions be
in order during the pendency of this agreement; that upon use or
yielding back of time the bill be read a third time, and the Senate
proceed to vote on passage of the bill.
The ACTING PRESIDENT pro tempore. Is there objection? The Senator
from Wyoming.
Mr. BARRASSO. Madam President, reserving the right to object, would
the Senator agree to include an amendment that would offset the cost of
the bill with unspent Federal funds, the text of which I have at the
desk?
Mr. WHITEHOUSE. I am happy to discuss with colleagues on the other
side how this can be paid for, but I cannot help but note that
colleagues on the other side do not share their concern for the payment
and pay-go side of the equation when it comes to the tax cuts for
people making many millions of dollars a year whom we are trying to get
exempted as we try to get tax relief for the middle class.
It would be hard for me to hold seniors getting a $250 one-time
benefit in a year in which the COLA formula has misfired and they are
getting no COLA benefit despite their other costs going up, and at the
same time be asked to agree to hundreds of thousands of dollars per
millionaire, in some cases, in tax relief that is not paid for. I
think, if anything, the seniors should be held to a lower standard than
multimillionaires for whom the tax benefit would amount to potentially
hundreds of thousands of dollars.
I appreciate my colleague's very legitimate concern about the cost
this would incur. I submit we are still, at least in my State, in a
stage in the recovery where we continue to need to revive the economy.
This will be very beneficial to the country in terms of its economic
recovery, and it would be unfair to hold seniors to a different
standard for this $250 COLA, a harsher standard than we would hold our
millionaires to, for hundreds of thousands of dollars in tax relief. So
I stand by the request as propounded in the unanimous consent.
The ACTING PRESIDENT pro tempore. Is there objection?
Mr. BARRASSO. Madam President, reserving the right to object, I note
on the front page of USA Today ``Jobless Data could Break '80s
Record.''
[[Page S8364]]
Not since the early 1980s has the nation's unemployment
rate been so grim for so long, a government report due Friday
is likely to show.
It goes on to say:
The chronic level of high unemployment shows that many
Americans are still suffering, even though [the government],
the National Bureau of Economic Research, has said the
recession officially ended in June 2009.
The people in this country know what is happening in their own
communities and their own States and do not need to be told different
things by the government when they know the reality in which they are
living.
I heard from my distinguished colleague some concerns we all share
about the economy and what best way to stimulate economic growth. I
believe, with Members on my side of the aisle, that one of the things
you do is you don't raise taxes on anyone in this country during these
economic times. We are unanimous on this side of the aisle in that
position.
But listening to my colleague, there are now actually a growing
chorus of Members from his side of the aisle who are agreeing with me,
including the two newest Members of the Senate from the other side of
the aisle who have come here, the distinguished Senator from West
Virginia and the one from Delaware. The one from West Virginia, while
running for the Senate, said, ``I wouldn't raise any taxes,'' referring
to the tax cuts that are scheduled to expire come the end of this year.
The Senator-elect and newly sworn in Senator from Delaware, in terms of
tax cuts, said, ``I would extend them for everyone.''
So there is a growing chorus on the ways to give this economy and the
job-creating segment of this economy some certainty so they can then
make the investments, make the decisions, hire the people to try to do
that.
We are unanimous in our support for not raising taxes on anyone
during economic times like this and, with that growing chorus, then, as
a result, I object.
Mr. WHITEHOUSE. I appreciate the objections of the Senator.
The ACTING PRESIDENT pro tempore. Objection is heard.
Mr. WHITEHOUSE. I would respond by saying that even if we assume that
the right answer at this point is to continue a massive tax cut for
people who make--I think it was most recently reported that the 400
biggest income earners in the country earned an average, each, of $344
million, a third of $1 billion each. So the tax cuts for people like
that create a very significant cost to the country.
I understand it is the theory of the Senator that this is to our
economic benefit. But, clearly, there is a very high cost in our
deficit to going down that path.
My motivation in offering this unanimous consent is that our seniors,
who will spend the $250 one-time payment virtually immediately--which
every economist I have ever seen who discusses the economic stimulus
effect of these different types of expenditure agrees would be far more
beneficial if it were the $250 payment on behalf of seniors than it
would be when these highest end people get these massive tax refunds
and benefits--that it would be fair to treat seniors the same way.
I regret that we face this objection. I think the objection is
inconsistent in the sense that the Senator is holding, with this
objection, seniors to a higher standard, a harsher standard, than he is
holding millionaires and billionaires to. Everybody knows about the
marginal utility of money. For a senior on a fixed income, $250 extra
at the end of the year, Christmas time, whether it means keeping the
house warm, affording their prescription drug payments, being able to
set a little money aside for presents for their grandchildren--that is
very important funding, and not just from a humanitarian point of view.
From an economic point of view it means it gets plowed right back into
the local economy--the local toy store, the local grocery store, the
local pharmacy. It gets put right back to work. I don't know what
happens when somebody making $334 million a year gets a $1 million tax
break.
The ACTING PRESIDENT pro tempore. The Senator has consumed his time.
Mr. WHITEHOUSE. In that case, I yield the floor and thank the
Presiding Officer for her courtesy.
The ACTING PRESIDENT pro tempore. The Senator from Wyoming.
Mr. BARRASSO. Madam President, in response to my colleague from Rhode
Island, despite over a $13 trillion existing debt that we cannot pay
back, the Democrats are back with another proposal to add another $13
billion to the deficit, add it to the growing deficit. This one is not
even a new proposal, it is a proposal that was already rejected by 50
Senators, including 11 Members from across the aisle a number of months
ago.
If we are going to attempt to help those seniors, as has been
mentioned by my colleague, we need to do it in a fiscally responsible
way.
I absolutely support helping the seniors who are having a hard time.
I just propose we pay for it. That is why I offered the amendment to
the proposal from the Senator from Rhode Island that would, in fact,
just pay for it. It is as simple as that. I propose that instead of
piling money, debt on top of our massive debt, what I have offered is
an amendment that would authorize the Office of Management and Budget
to cut an appropriate amount from other programs to help them find
money to pay for this one.
Mr. WHITEHOUSE. Will the Senator yield for a question?
Mr. BARRASSO. Yes, Madam President.
Mr. WHITEHOUSE. A question, through the Chair: Would the Senator
explain why it is that when it comes to the deficit it is more
important to protect our national debt than it is to help our seniors,
but it is less important to help our deficit and our debt than it is to
give tax breaks to multi-multimillionaires?
As I said, the 400 highest income earners the IRS has reported
earning more than a third of $1 billion each on average, it would
strike me that the deficit and the debt is a matter of national concern
that should apply equally to millionaires--I mean multi-super-ultra-
hyper-millionaires--than it is to seniors struggling to get by on
Social Security. I don't understand why the deficit matters so much
when it comes to depriving our seniors of a COLA adjustment, but it
doesn't appear to matter at all when it comes to providing the very
wealthiest Americans--people who have their own jets, have their own
yachts, people who have, you know, seven homes--additional tax relief
that most billionaires who have come forward in this matter say they
don't want or need; that it is unpatriotic, frankly, from their
perspective not to be asked to contribute more.
Mr. BARRASSO. Madam President, the way that I propose to pay for this
to help those seniors, to help those who have those needs, is a
proposal that is very familiar to this body. It is because 21 of my
Democratic colleagues voted in favor of this way to pay for something
earlier this week when the same pay-for was attached to an amendment
from my colleague, Senator Johanns from Nebraska, that would have
repealed an unfortunate paperwork mandate in the health care law.
I would be happy to list all of the Senators who voted for this. I am
sorry my friend across the aisle is not joining me in supporting this
fiscally responsible support for our seniors. But, as I say, on the
issue of stimulating the economy and giving some certainty in this
Nation to those job creators, the Republicans are united: 42 of us say
you should not raise taxes on anyone during economic times like these,
and the chorus of Democrats who support that continues to grow. It grew
this past week from five members of the Democratic conference to seven
with the swearing in of Senator Coons of Delaware and Senator Manchin
of West Virginia.
Senator Kent Conrad from North Dakota has said:
The general rule of thumb is that you do not raise taxes or
cut spending during an economic downturn. That would be
counterproductive.
So he says do not raise taxes during an economic downturn.
Senator Evan Bayh said:
The economy is very weak right now. Raising taxes will
lower consumer demand at a time when we want people putting
more money into the economy.
Senator Jim Webb, Democrat from Virginia, said: ``I don't think they
ought to be drawing a distinction . . . '' at a certain dollar number.
[[Page S8365]]
Senator Ben Nelson from Nebraska said:
I support extending all of the expiring tax cuts until
Nebraska's and the nation's economy is in better shape, and
perhaps longer, because raising taxes in a weak economy could
impair recovery.
Senator Joe Lieberman, Connecticut, said:
I don't think it makes sense to raise any Federal taxes
during the uncertain economy we are struggling through.
Then, of course, Senator Coons: ``I would extend them to tax cuts for
everyone.''
And Senator Manchin, then-Governor of West Virginia, said, ``I
wouldn't raise any taxes.''
At a time with 9.6 percent unemployment, at a time when our Nation
continues to struggle economically, at a time people are looking for
work, wanting to work, looking for jobs, the job-creating sector of
this country needs some certainty. With the mandates of the health care
law, which are expensive, environmental mandates coming from the
Environmental Protection Agency with their rules and regulations
impacting on the cost of energy, and then the uncertainty, the
significant uncertainty that exists in this country as to what tax
rates will be and how that is going to impact all taxpayers with their
take-home pay come January 1, it is no surprise that people are
concerned and reluctant to make long-term commitments and investments
in businesses and in the future.
That is why I stand here to object to my colleague from Rhode Island
when he makes a proposal, which there is support for, but it is unpaid
for. We need to pay for it. I bring to the Senate floor a responsible
way in which to pay for it, and which he has rejected.
I yield the floor.
The ACTING PRESIDENT pro tempore. The Senator from North Dakota.
Mr. DORGAN. Madam President, are we in a period of morning business?
The ACTING PRESIDENT pro tempore. We are still in morning business.
However, the time remaining, 10 minutes remaining, is controlled by the
minority.
Mr. DORGAN. In that case I would yield to the minority to use the 10
minutes, and I will be seeking recognition following them.
The ACTING PRESIDENT pro tempore. The Senator from Iowa.
____________________