[Congressional Record (Bound Edition), Volume 147 (2001), Part 16]
[Senate]
[Page 22713]
[From the U.S. Government Publishing Office, www.gpo.gov]



                     THE ECONOMIC STIMULUS PACKAGE

  Mrs. CARNAHAN. Mr. President, yesterday's action by the Senate to 
block the consideration of an economic stimulus package was 
unfortunate, untimely, and unnecessary. For the third time in 2 months, 
we missed an opportunity to bring desperately needed assistance to 
unemployed workers. We were also blocked from providing tax relief to 
businesses to encourage new investment, and we were not even permitted 
to consider a homeland security initiative to meet the safety needs of 
our homes and communities.
  But the resumption of negotiations on an economic stimulus package 
between congressional leaders and the administration is a positive 
sign. I say ``resumption of negotiations'' because there were 
productive talks last month between administration officials and 
congressional leaders. These talks resulted in an agreement on the size 
of the stimulus package and consensus was beginning to build.
  The Democratic and Republican leaders of the Budget Committee also 
agreed upon a set of guidelines to develop this legislation. They said 
it should be immediate, that it should provide a temporary stimulus. 
They also said it should focus on those who would be most likely to 
spend the money, and all that was left was to fill in the details.
  Unfortunately, the sensible process was abandoned. The House of 
Representatives pushed through a tax bill that was not temporary, did 
not provide immediate stimulus, and did not put money into the hands of 
those most likely to spend it. The House bill was bloated well beyond 
the size of the package that had been agreed upon, and the permanent 
changes it would make to the Tax Code would return us to the days of 
deficit spending and high interest rates.
  The bill passed by a slim margin on a partisan vote. The fact that 
the administration has endorsed this effort is a grave disappointment. 
Now that we are back at the negotiating table, it is time to return to 
the bipartisan Budget Committee principles. It should be stimulative, 
immediate, and temporary.
  Nobody can doubt that our economy is in trouble. The employment rate 
jumped 5.4 percent in October; nearly 8 million workers are unemployed. 
We must rise above our differences and focus on the priorities that 
unite us.
  Three things are of paramount importance. It is important that we get 
business growing again. There are a variety of good tax cut proposals 
for businesses on the table. They would cause immediate investment and 
growth without busting the budget. Identifying the best set of 
incentives should not be a difficult task. But it is also important 
that we invigorate consumer demand. Both sides of the aisle have 
proposed tax rebate checks to those Americans who did not receive a 
rebate earlier this year. We know that a $300 rebate to low-income 
persons would create economic activity because this money will be spent 
to make ends meet. But it is also important to provide temporary 
assistance to those who have lost their jobs. As we have in previous 
recessions, Congress should extend unemployment benefits.
  The claim that these benefits would be a disincentive to work is an 
insult to our workers. I have never met anyone who would rather receive 
a meager unemployment check than hold a job. But we need to provide 
unemployment benefits for a longer time than usual because the economy 
simply is not producing new jobs.
  Republicans and Democrats agree that those who have lost their jobs 
should not also lose their health insurance. But there are many 
different ideas on the best way to provide health insurance to 
unemployed workers. Whether it is a tax credit or a subsidy, I am open 
to these ideas. The important thing is that we not add millions of 
workers to the ranks of the unemployed and uninsured.
  We should also take care that our actions do not compound the fiscal 
woes of our State and local governments. Many States were already 
experiencing large budget deficits even before September 11. Since the 
attacks, there has been a sharp reduction in revenues. There has been 
an increased burden on essential Government services. If the Federal 
tax cuts we enact result in a reduction in State revenue, we must find 
a way to fill the gap for our States.
  If we stay focused on our core priorities, we can come to an 
agreement. We can also be sure that we don't bust the budget in the 
long run.
  Economists have warned us that if we abandon fiscal discipline, we 
will force long-term interest rates to rise. If we push up home 
mortgage rates, then any other stimulus we provide will be futile.
  Keeping interest rates low is especially important in my State. 
Missouri has one of the highest rates of home ownership in the country. 
Seventy-four percent of Missourians own their own homes, and they are 
counting on us to act responsibly. They are counting on our national 
leaders to step forward.
  The President has shown bold leadership in the war against terrorism, 
and now they are counting on him to show bold leadership on the 
economic front as well.
  A bipartisan agreement in the Senate is within reach. It is up to the 
President to bring all parties together for a sensible, balanced 
economic package that is good for America. That is the challenge. 
Americans are watching and waiting.
  I thank the Chair.
  The PRESIDING OFFICER. The Senator from Kansas.
  Mr. BROWNBACK. Mr. President, I ask unanimous consent to speak as in 
morning business for up to 5 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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