[Congressional Record (Bound Edition), Volume 155 (2009), Part 8]
[Senate]
[Pages 10073-10075]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. DURBIN (for himself and Mr. Brown):
  S. 829. A bill to provide a Federal income tax credit for Patriot 
employers, and for other purposes; to the Committee on Finance.
  Mr. DURBIN. Mr. President, when companies make headlines today it is 
often for all the wrong reasons: outrageous bonuses, tax avoidance, 
fraud, profiteering, etc. Yet many of the companies that provide jobs 
are conscientious corporate citizens that try to treat workers fairly 
and at the same time create good products that consumers want and 
maximize profits for their shareholders. I believe that we should 
reward such companies for providing good jobs to American workers and 
create incentives to encourage more companies to do the same. The 
Patriot Employers Act does just that.
  This legislation, which I am introducing today along with Senator 
Brown, would provide a tax credit to reward the companies that treat 
American workers best. Companies that provide American jobs, pay decent 
wages, provide good benefits, and support their employees when they are 
called to active duty should enjoy more favorable tax treatment than 
companies that are unwilling to make the same commitment to American 
workers. The Patriot Employers tax credit would put the tax code on the 
side of those deserving companies by acknowledging their commitments.
  The Patriot Employers legislation would provide a tax credit equal to 
1 percent of taxable income to employers that meet the following 
criteria.
  First, invest in American jobs. Maintain or increase the number of 
full-time workers in America relative to the number of full-time 
workers outside of America, maintain corporate headquarters in America 
if the company has ever been headquartered in America, and maintain 
neutrality in union organizing drives.
  Second, pay decent wages. Pay each worker an hourly wage that would 
ensure that a full-time worker would earn enough to keep a family of 
three out of poverty, at least $8.50 per hour.
  Third, prepare workers for retirement. Either provide a defined 
benefit plan or provide a defined contribution plan that fully matches 
at least 5 percent of worker contributions for every employee.
  Fourth, provide health insurance. Pay at least 60 percent of each 
worker's health care premiums.
  Fifth, support our troops. Pay the difference between the regular 
salary and the military salary of all National Guard and Reserve 
employees who are called for active duty, and continue their health 
insurance coverage.
  In recognition of the different business circumstances that small 
employers face, companies with fewer than 50 employees could achieve 
Patriot Employer status by fulfilling a smaller number of these 
criteria.
  There is more to the story of corporate American than the widely-
publicized wrongdoing. Patriot Employers should be publicly recognized 
for doing right by their workers even while they do well for their 
customers and shareholders. I urge my colleagues to join Senator Brown 
and me in supporting this effort. Our best companies, and

[[Page 10074]]

our American workers, deserve nothing less.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 829

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Patriot Employers Act''.

     SEC. 2. REDUCED TAXES FOR PATRIOT EMPLOYERS.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     adding at the end the following new section:

     ``SEC. 45R. REDUCTION IN TAX OF PATRIOT EMPLOYERS.

       ``(a) In General.--In the case of any taxable year with 
     respect to which a taxpayer is certified by the Secretary as 
     a Patriot employer, the Patriot employer credit determined 
     under this section for purposes of section 38 shall be equal 
     to 1 percent of the taxable income of the taxpayer which is 
     properly allocable to all trades or businesses with respect 
     to which the taxpayer is certified as a Patriot employer for 
     the taxable year.
       ``(b) Patriot Employer.--For purposes of subsection (a), 
     the term `Patriot employer' means, with respect to any 
     taxable year, any taxpayer which--
       ``(1) maintains its headquarters in the United States if 
     the taxpayer has ever been headquartered in the United 
     States,
       ``(2) pays at least 60 percent of each employee's health 
     care premiums,
       ``(3) has in effect, and operates in accordance with, a 
     policy requiring neutrality in employee organizing drives,
       ``(4) if such taxpayer employs at least 50 employees on 
     average during the taxable year--
       ``(A) maintains or increases the number of full-time 
     workers in the United States relative to the number of full-
     time workers outside of the United States,
       ``(B) compensates each employee of the taxpayer at an 
     hourly rate (or equivalent thereof) not less than an amount 
     equal to the Federal poverty level for a family of three for 
     the calendar year in which the taxable year begins divided by 
     2,080,
       ``(C) provides either--
       ``(i) a defined contribution plan which for any plan year--

       ``(I) requires the employer to make nonelective 
     contributions of at least 5 percent of compensation for each 
     employee who is not a highly compensated employee, or
       ``(II) requires the employer to make matching contributions 
     of 100 percent of the elective contributions of each employee 
     who is not a highly compensated employee to the extent such 
     contributions do not exceed the percentage specified by the 
     plan (not less than 5 percent) of the employee's 
     compensation, or

       ``(ii) a defined benefit plan which for any plan year 
     requires the employer to make contributions on behalf of each 
     employee who is not a highly compensated employee in an 
     amount which will provide an accrued benefit under the plan 
     for the plan year which is not less than 5 percent of the 
     employee's compensation, and
       ``(D) provides full differential salary and insurance 
     benefits for all National Guard and Reserve employees who are 
     called for active duty, and
       ``(5) if such taxpayer employs less than 50 employees on 
     average during the taxable year, either--
       ``(A) compensates each employee of the taxpayer at an 
     hourly rate (or equivalent thereof) not less than an amount 
     equal to the Federal poverty level for a family of 3 for the 
     calendar year in which the taxable year begins divided by 
     2,080, or
       ``(B) provides either--
       ``(i) a defined contribution plan which for any plan year--

       ``(I) requires the employer to make nonelective 
     contributions of at least 5 percent of compensation for each 
     employee who is not a highly compensated employee, or
       ``(II) requires the employer to make matching contributions 
     of 100 percent of the elective contributions of each employee 
     who is not a highly compensated employee to the extent such 
     contributions do not exceed the percentage specified by the 
     plan (not less than 5 percent) of the employee's 
     compensation, or

       ``(ii) a defined benefit plan which for any plan year 
     requires the employer to make contributions on behalf of each 
     employee who is not a highly compensated employee in an 
     amount which will provide an accrued benefit under the plan 
     for the plan year which is not less than 5 percent of the 
     employee's compensation.''.
       (b) Allowance as General Business Credit.--Section 38(b) of 
     the Internal Revenue Code of 1986 is amended by striking 
     ``plus'' at the end of paragraph (34), by striking the period 
     at the end of paragraph (35) and inserting ``, plus'', and by 
     adding at the end the following:
       ``(36) the Patriot employer credit determined under section 
     45R.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2009.
                                 ______
                                 
      By Ms. SNOWE (for herself and Mr. Wyden):
  S. 836. A bill to provide enhanced authority to the Congressional 
Oversight Panel established pursuant to the Emergency Economic 
Stabilization Act of 2008; to the Committee on Banking, Housing, and 
Urban Affairs.
  Ms. SNOWE. Mr. President, I rise today to introduce legislation to 
provide the Congressional Oversight Panel, COP, with subpoena authority 
so that it can more effectively conduct oversight on behalf of American 
tax payers. Created as part of last fall's Emergency Economic 
Stabilization Act, EESA, to be Congress' watchdog over the Troubled 
Asset Relief Program, TARP, it has become apparent that a lack of 
subpoena authority is actively preventing the COP from obtaining all 
necessary information to safeguard rescue fund dollars. I would like to 
thank Senator Wyden for cosponsoring this legislation that would grant 
the COP subpoena power should three of the Panel's five members feel it 
is appropriate.
  One of three organizations charged with overseeing TARP, the COP's 
role is to ``review the current state of the financial markets and the 
financial regulatory system'' and to report to Congress every 30 days. 
Through regular reports, COP must oversee Treasury's actions; assess 
the impact of spending to stabilize the economy; evaluate market 
transparency; ensure effective foreclosure mitigation efforts; and 
guarantee that Treasury's actions are in the best interest of the 
American people. Notably, Congress provided the COP in EESA the 
explicit power to secure information from any government agency upon 
the request of its Chair.
  Unfortunately despite the yeoman efforts of COP Chair Elizabeth 
Warren and her four colleagues, the Panel is having difficulties 
discharging its duties. In particular, the Panel appears to be having 
problems obtaining necessary information from the Treasury Department, 
which is administering the TARP. Indeed, Ms. Warren told the Senate 
Finance Committee on March 31 that she feels as though the Panel and 
its requests for information are simply not a priority for the 
Department. Unfortunately, the facts appear to bolster Ms. Warren's 
conclusion.
  Ms. Warren's written testimony before the Finance Committee notes, 
``The Oversight Panel has repeatedly called on Treasury to articulate a 
clear strategy for its use of TARP funds; the absence of such a vision 
hampers effective oversight. In fact, our first report outlined a 
series of ten basic questions, starting with the question, `What is 
Treasury's strategy?' Months later, Congress and the American people 
have no clear answer to that question. The ongoing uncertainty has 
hindered recovery efforts. I have sent two letters to Treasury 
Secretary Geithner asking for clarification on this specific point. I 
am disappointed to report that the Oversight Panel has not received a 
substantive response.''
  In addition to a letter the Panel sent to Secretary Geithner on March 
5 asking him to outline a strategy for TARP and respond to questions 
regarding the approach taken by the recently announced Financial 
Stability Plan, Ms. Warren asked that Mr. Geithner testify before the 
COP on March 12 or March 19. Although Ms. Warren reports that Secretary 
Geithner replied to her March 5 letter on April 2, nearly two weeks 
after the requested response date of March 20, a COP hearing with Mr. 
Geithner as a witness will only now take place on April 21, a delay 
that has only further impeded the Panel's effectiveness.
  Furthermore, other COP members have also noticed Treasury's apparent 
pattern of failing to respond to critical questions. Deputy Chair Damon 
Silvers testified before the Joint Economic Committee, JEC, on March 11 
about the Panel's attempt to answer the critical question of whether 
taxpayers are receiving assets commensurate in value with TARP dollars 
being expended. Unfortunately, the Treasury

[[Page 10075]]

Department appears to have been less than helpful in assisting the 
Panel in its analysis. In fact, Mr. Silvers told JEC the following:
  ``Our valuation report relied entirely on publicly available data. 
The Panel did make a broad document request of the Treasury Department 
pursuant to our authority under Section 125 of the EESA on December 17, 
2008. Our purpose was to obtain any non-public information that 
Treasury possessed that would go to issues of valuation, in addition to 
contributing to our general ability to oversee the TARP program. In a 
letter dated December 24, 2008, the Treasury Department declined to 
provide the material we requested, and raised concerns about our newly 
formed Panel's internal controls over the confidential documents. 
Despite extensive discussions between our staff and the Treasury 
Department, Treasury has only produced a small number of the documents 
the Panel requested.''
  With $700 billion in TARP funds at stake, providing the Congressional 
Oversight Panel with the tools and resources it requires to conduct 
effective oversight is absolutely essential. The fact is that we in 
Congress are duty bound to correct TARP inadequacies but can only do so 
with reliable information from its overseers. Clearly, the examples I 
have just cited demonstrate that providing the Panel subpoena authority 
is warranted so that it can compel Treasury and any other entities to 
provide all requisite information. For this reason, I ask my colleagues 
to support this legislation that would do just that so that it can be 
quickly sent to President Obama for his signature.
  Mr. President, I ask unanimous Consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 836

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SUBPOENA POWER FOR CONGRESSIONAL OVERSIGHT PANEL.

       Section 125(e)(1) of the Emergency Economic Stabilization 
     Act of 2008 (12 U.S.C. 5233(e)(1)) is amended--
       (1) by striking ``The Oversight'' and inserting the 
     following:
       ``(A) In general.--The Oversight''; and
       (2) by adding at the end the following:
       ``(B) Subpoena power.--For purposes of carrying out this 
     section, upon majority vote of its members, the Oversight 
     Panel may require, by subpoena or otherwise, the attendance 
     and testimony of witnesses and the production of such books, 
     records, correspondence, memoranda, papers, documents, tapes, 
     and materials as the Oversight Panel considers advisable.
       ``(C) Issuance and enforcement of subpoenas.--
       ``(i) Issuance.--A subpoena issued pursuant to subparagraph 
     (B) shall bear the signature of a member of the Oversight 
     Panel, and shall be served by any person or class of persons 
     designated by the Oversight Panel for that purpose.
       ``(ii) Enforcement.--In the case of contumacy or failure to 
     obey a subpoena issued under subparagraph (B), the subpoena 
     shall be enforceable by order of any appropriate district 
     court of the United States. Any failure to obey the order of 
     the court may be punished by the court as a contempt of that 
     court.''.

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