[Congressional Record (Bound Edition), Volume 147 (2001), Part 14]
[House]
[Page 19858]
[From the U.S. Government Publishing Office, www.gpo.gov]



           SUPPORT ECONOMIC SECURITY AND RECOVERY ACT OF 2001

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 3, 2001, the gentleman from Illinois (Mr. Weller) is recognized 
during morning hour debates for 5 minutes.
  Mr. WELLER. Mr. Speaker, these are important times for our Nation as 
we respond to the attack on September 11, as we work to provide 
leadership to address the challenges that we face, as we work to 
provide the solutions to the military challenge, the international and 
national security issues, and also the economic security issues.
  I particularly wanted to commend President Bush for the strong, 
commanding leadership that he has shown in response to the attack. I 
also want to commend the leadership of this Congress, particularly the 
Speaker of the House, for his calm, strong leadership that he has shown 
as we address the terrorist attack on September 11.
  We have had several challenges. We have given full authority to the 
President for the military action that is now under way. We have funded 
that military action with $40 billion, as well as the emergency and 
recovery effort. We have worked to address the financial challenges of 
our aviation sector, we have passed legislation out of this House, and 
we are working out the differences with the Senate on providing special 
powers for our intelligence and law enforcement agencies to go after 
terrorists.
  There is another challenge that we have before us, though. That is a 
challenge that we were already feeling prior to September 11. That was 
our economic challenge.
  President Bush inherited a weakening economy. The last 12 or 14 
months we have seen changes in the direction of the economy. 
Unfortunately, the terrorist attack was also a psychological blow on 
our economy, causing many consumers and business decisionmakers to step 
back.
  The question is, what type of action should we take? Clearly, we need 
to act quickly. We need to provide strong leadership. We need to give 
confidence back to consumers, as well as business decisionmakers to 
spend and invest in the future of our economy.
  I believe, as we look at what type of approach we need to take, that 
we need to be thinking short-term, what can we do to cause investment 
over the short-term to protect current jobs and get this economy 
growing again; essentially, a cash register effect; incentives that 
will cause business decision-makers as well as consumers to spend and 
invest.
  Let me give an example of one sector of the economy that has had a 
big impact on our overall economy over the past decade which currently 
has been suffering. That is the technology sector. Over the past 
decade, the technology sector has generated one-third of all our growth 
in jobs; in fact, the majority of assets today that have been purchased 
come out of the technology sector.
  I would note in 1994, or in the year 2000, private investment in 
information processing equipment software grew at an average rate of 28 
percent. Investment in computers and peripheral computers grew at an 
astounding 113 percent average annual rate during that same period of 
time.
  However, that trend has reversed, and that sector that grew one-third 
of our jobs is now in a slump. We have seen a loss of almost 400,000 
jobs in technology and telecommunications since January of this year, 
and actually an 8.4 percent drop in investment from the fourth quarter 
of 2000 to the second quarter of 2001.
  We do need to act quickly. We need to provide incentives to invest in 
the creation of jobs, as well as revitalize important sectors of our 
economy. Clearly, the technology sector needs help.
  This past week, the Committee on Ways and Means moved out of the 
committee and the legislation will now be before us in this House this 
week, what some call an economic stimulus package, but legislation that 
is called the Economic Security and Recovery Act, legislation designed 
to put more money in consumers' pockets, as well as provide incentives 
to invest.
  There are three provisions in this legislation that will have a big 
impact in helping revitalize the technology sector, which we need to 
revitalize if we are going to get this economy growing again.
  The three provisions include the 30 percent expensing, providing 
greater incentives to invest by business for the next 3 years, a 
temporary provision; increasing the opportunity for small business to 
invest from the current level of $24,000 to $35,000; and also, the net 
operating losses carryback, allowing businesses losing money now to 
credit that loss against previous income paid in previous years to get 
a refund to free up capital that they can invest.
  These provisions will make a big difference in revitalizing the 
technology sector. As we look at depreciation reform, the opportunity 
for a business to expense 30 percent of the purchase cost of that asset 
will reward investment.
  Currently, a computer is depreciated over 5 years. By expensing that 
first 30 percent, that would be a big incentive to allow a business to 
recover the cost of investing in technology, computers, software, 
peripheral equipment, medical technology, high technology telephone 
station equipment, wireless equipment, as well as DSL and networking 
equipment they can expense now with 30 percent, with the legislation we 
passed out of the Committee on Ways and Means that will be before the 
House this week.
  That will reward investment in the creation of jobs. I would also 
note, it will reward investment in providing greater security. The vast 
majority of offices and factories are all owned by the private sector. 
We need to help the private sector make their facilities more secure.
  With this expensing provision of 30 percent expensing, they can 
recover the cost of electronic access equipment, biometrics, television 
surveillance, as well as computers and software to protect their data 
and information systems; also, electronic alarm systems and other 
components.
  The bottom line is, this legislation, the Economic Security and 
Recovery Act, the legislation before the committee or the House this 
week, will reward investment, will create jobs. It will boost the 
technology sector, and will also help private companies make their 
offices and their factories much more secure.
  I urge bipartisan support for this legislation. We need to get the 
economy moving again.




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