To authorize the extension of nondiscriminatory treatment (normal trade relations treatment) to the products of Armenia.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I rise in support of this legislation. I want to, though, at the beginning talk about process and then I will discuss the substance of the bill.

There have been some process issues. One of them relates to the Senate. The bill here has some provisions that have been over in the Senate and they have been held up by the action, as I understand it, of one Member of the Senate. It relates to a labelling requirement and essentially would, if that effort succeeded, roll back a provision that we have favored. And I just want everyone to understand that I think trade issues should not be handled that way.

Secondly, I want to say a word about the Armenia PNTR. We have been discussing this, but not directly in the committee or the Subcommittee on Trade for a number of months. A bill was introduced to grant Armenia PNTR, and I very much have favored that happening. Unfortunately, the bill was not sent through the subcommittee or the full committee, and I think that really deprived us of a chance to add to this bill some references to certain issues that Armenia has faced and that we think other countries should confront, especially as they are going to accede to the WTO which has already happened in the case of Armenia and receive the extension of PNTR by the United States.

For example, we have been trying to introduce into this bill references to the implementation by Armenia of some important aspect of the Helsinki Act, citing that some progress, although not full, has been made in the area of human rights. This would include treatment of minorities, religious minorities and others, providing protection to minorities from violence based on discrimination of any kind, hostility or hatred, including anti-Semitism. Also, reference to the fact that Armenia has demonstrated a commitment to enforcing internationally recognized core labor standards and has been working to improve its enforcement of those laws, as well as implementing some important market reforms.

Well, this bill suddenly included the Armenia PNTR, which I have favored, but there is resistance from some on

the majority to allow us to insert into this bill these references to progress by Armenia in important areas that had reference, and should have reference, to other countries; and so I very much regret that.

But as said, this bill has some important provisions including the PNTR, provisions that extend important aspects of our tax laws. The extension of the work opportunity tax credits, the welfare-to-work tax credits, the AMT provision that the gentleman from Louisiana (Mr. McCrery) mentioned, as well as several others including tax incentives for the District of Columbia.

Also in this bill are some pension-related provisions. One of them relates to the 30-year Treasury rate. This is an important provision for large numbers of companies and their workers, and we needed to find a way to introduce this into legislation and to implement it, and this bill does exactly that. And is another reason to favor this bill.

There is also, as the gentleman from Louisiana (Mr. McCrery) mentioned, a provision relating to airlines and a 2-year provision to help them out. So this is a bill that has some miscellaneous provisions in it, but some of them are not very miscellaneous. Some of them are very important provisions. Some that are called technical, for example, would suspend or reduce import duties on numerous items for which there are no American competitors. And it would correct instances where Customs has overcharged for import duties. These are provisions that are important for domestic manufacturers and for their employees and for consumers.

One other provision that I should mention, since I have been so much involved with it with others, is the Reverse Customs Program at the northern border. This bill has references to that. These references are essentially relating to jurisdiction of committees. They do not change the basic provisions and do not in any way disturb the pace by which Customs will implement this important experiment in Reverse Customs Programs so that we can expedite the transportation of goods and passengers across the northern border, keeping in mind security considerations.

So, all in all, I believe this is a bill that deserves support with the caveats I mentioned. I have discussed earlier today, and the gentleman from Maryland, Mr. Cardin, did with the chairman of the committee, the issue of Armenia and the need not for anybody to consider it a precedent either in terms of how PNTR is handled, other countries are handled, or the provisions relating to them. And we have received those verbal reassurances that the way the Armenia PNTR has been handled, it will not be a precedent in terms of committee or subcommittee consideration.

When my turn next comes I am going to yield many minutes to the gentleman from Maryland (Mr. Cardin) who is going to talk about one issue that is not in this bill where there is an opportunity to place it and is so critical to hundreds of thousands of the citizens of the United States of America, and that is unemployment compensation, and I will do that at the appropriate time.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 5 minutes to the gentleman from Maryland (Mr. Cardin).

Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman from New Jersey (Mr. Pallone).

Mr. Speaker, it is my pleasure to yield 2 minutes to the distinguished Delegate, the gentlewoman from the District of Columbia (Ms. Norton).

Mr. Speaker, it is my pleasure to yield 2 minutes to the gentleman from California (Mr. George Miller).

Mr. Speaker, I yield myself the balance of my time.

Mr. Speaker, I want to make two points. First of all, this bill is not paid for, $7 billion, and I hope that the Senate will rectify that. It is our understanding that they will. And I think that gives people on our side some reassurance that this will not be a further addition to an already escalating atrociously high deficit.

Secondly, I simply want to reinforce, on the issue of unemployment compensation, that when the gentleman from Texas (Mr. DeLay) said, ``I see no reason to be extending unemployment compensation since every economic indicator is better than in 1993, when the Democrats ended the Federal unemployment program,'' that, as the gentleman from Maryland (Mr. Cardin) pointed out, that is really an inaccurate statement.

If we do not extend this program, every week after Christmas about 90,000 people are going to be out on the street without any benefits. Now, we went through this the last Christmas. If my colleagues want us to come back here this Christmas, the three of us who came last time, and object, we will do that, but we should not have to do that. The unemployment program should be extended, period. And I hope that the majority in this House will step up to the plate on what is if not life and death, it is survival decently for tens of thousands of our fellow and sister citizens.

Mr. Speaker, let me thank my friend, the gentleman from Michigan (Mr. Levin) for yielding me time.

Mr. Speaker, first let me say that there are some very important provisions in this bill. I see my friend, the gentleman from Ohio (Mr. Portman) on the floor, and I know that we are both pleased that the 30- year Treasury replacement is included in this bill.

I think we are both very disappointed that it is not for a longer period of time and does not include other provisions and legislation that we filed earlier that would have also helped preserve defined benefit plans properly funded for the workers of America, but at least there is some relief in this bill that is needed, and I am glad to see that is included in the legislation.

Let me say I appreciate the way the gentleman from Michigan (Mr. Levin) has presented the Armenian situation because I think he said it exactly right. There are human rights problems within Armenia. The Armenia Assembly of America, a respected group in this body, said the people of Armenia deserve nothing less than the declared aim of their government for free, fair, and transparent elections. As reported in depth by the OSCE, this achievable standard was not met.

The gentleman from New Jersey (Mr. Smith), the chairman of our Helsinki Commission, and myself as ranking Democrat sent the letter to the Committee on Ways and Means in April of 2003. I just want to quote one line from that letter where we said: The underlining intent of the Jackson-Vanik language is to foster democratization and protect human rights. Our commission puts a very high premium to carry out the responsibility of this body to make human rights development in these emerging democracies a top priority. We are disappointed that more progress has not been made.

In Armenia's case, they do have normal trade relations, and I thank the gentleman from Michigan (Mr. Levin) very much for the understanding that the process that was used in Armenia's elevation will not be the process used as we consider other countries for elevation on normal trade relations; and clearly, we will be looking at the progress on human rights issues.

Mr. Speaker, let me, if I might, spend the remainder of my time on the unemployment insurance issue. I must tell my colleagues I am extremely disappointed that the majority did not include an extension of the unemployment insurance benefits in this extender bill. We are going to be faced with the same thing that happened last year. The Christmas present to our unemployed will be that they are not going to get any additional benefits. The present program expires at the end

of December. We might be out of session by the end of the week, and yet the majority sees no urgency in extending the unemployment insurance. Eighty thousand to 90,000 workers every week will lose their Federal unemployment benefits if we do not extend this program.

The majority leader, the gentleman from Texas (Mr. DeLay), said, and I am quoting from today's paper, ``I see no reason to be extending unemployment compensation since every economic indicator is better than in 1993 when the Democrats ended the Federal unemployment program.''

Mr. Speaker, that is just not true. The extended benefit program in the early 1990s did not end until the economy had created nearly 3 million jobs, compared to the pre-recession levels. The current program is scheduled to end when the economy is still suffering a deficit of 2.4 million jobs. The current unemployment rate, 6 percent, has risen since the extended program was established in March of 2002. While starting at a higher level, the unemployment dropped substantially in the 1990s before we terminated the program.

The number of the long-term unemployed had dropped significantly before the 1990 extended program had expired. Today, the number of long-term unemployed, 2 million, has remained at a high level. The percentage of workers exhausting their unemployment benefits is higher today, 43 percent, than when the 1990 program ended, 39 percent. There are more people receiving unemployment today, 3.5 million, compared to the 1990s, 3.1 million.

Mr. Speaker, I just give those numbers because all we have to do is be in the trenches to know that people are hurting, people cannot find jobs, where every person seeking a job, there is only one job available. People want jobs, but cannot find them.

We need to extend the unemployment insurance Federal program. We have always done that in a bipartisan manner. We have always done it in every recession until we are on the road to recovery where people can find employment. That is not the case today. By every indicator that we have ever used in prior recessions, we should be extending the unemployment insurance program in this legislation. We should not be putting at jeopardy the needs of the people of our Nation.

So I am extremely disappointed; and I hope, Mr. Speaker, that the majority will allow us the chance to vote on the extension of unemployment insurance benefits before we adjourn this session of Congress. I know that there is support on the other side of the aisle for these programs. There have been two bills that have been filed. One has been filed by the gentlewoman from Washington (Ms. Dunn). I filed one. There has been legislation filed on both sides of the aisle. It is important that we consider it. It is important that we consider it as quickly as possible, and I hope that we will find a way to bring this up. Maybe the other body will include it in this legislation. I think we missed an opportunity to include it in this bill, and I am disappointed about that, and I urge my colleagues to figure out a way that we could address this issue before we adjourn.

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 3521) to amend the Internal Revenue Code of 1986 to extend certain expiring provisions, and for other purposes, as amended.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, to begin this explanation of the bill, the bill before us is very straightforward. It includes many elements which have passed this House before, in some cases numerous times.

The Tax Relief Extension Act of 2003 extends a number of important tax incentives strongly supported by Members on both sides of the aisle including incentives which create jobs and encourage restoration of brownfields.

One extension provision ensures that the benefits of individual tax credits are not lost to the bite of the alternative minimum tax. Those credits do little good if they are countered by the effects of the AMT. And the bill promotes economic growth by extending a provision first enacted in the 2002 stimulus bill allowing companies to carry back net operating losses up to 5 years.

The measure before us allows two important provisions related to defined benefit pension plans which must set aside enough money today to pay promised benefits tomorrow. As a result of declining rates on 30-year Treasury notes, plans are forced to assume that plan assets will grow more slowly than we know will be the case. This assumption results in employers having to set aside additional funds in their pension plan today, depriving them of money needed to expand their businesses and create more jobs.

The bill temporarily replaces the 30-year Treasury rate as the benchmark used for these calculations with an index based on high-grade corporate debt. The provision in this bill mirrors H.R. 3108, a bill approved last month in this Chamber by a vote of 397 to 2.

Further, the bill provides relief for embattled airlines facing burdensome mandatory contributions. This industry has been hard hit by the recession, a post-9/11 suspension in air travel and the resulting reduced passenger loads, and the higher costs of security resulting from terrorist fears.

Airlines are generally either in bankruptcy, coming out of bankruptcy or teetering on bankruptcy's brink. Forcing them to make billions of dollars in additional pension contributions at this time could be disastrous.

Accordingly, the bill before us contains relief which allows airlines to pay 20 percent of what current law would require into their plans during the next 2 years.

Together, these provisions will give Congress the time to develop long-term solutions to pension funding issues.

Finally, the bill includes several trade-related provisions. It includes the provisions of the Miscellaneous Trade and Technical Corrections Act, a compendium of bipartisan trade-related items, duty suspensions, and technical corrections drawn largely from legislation introduced by individual Members.

These duty suspensions are critical to many American employers since they are paying unnecessarily high prices for supplies which are not made here in the United States.

The House passed a substantially similar version of this bill in March of 2003 by a vote of 415 to 11.

The legislation before the House today includes several additional trade provisions, including an extension of Permanent Normal Trade Relations status to Armenia and an increase from $1,200 to $1,600 in the personal duty exemption for travellers returning to the United States from the Virgin Islands.

Like the tax provisions outlined above, the trade provisions included in this bipartisan bill are noncontroversial, small in cost and will help United States companies better compete.

Mr. Speaker, I urge my colleagues to support this package.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield 2 minutes to the gentleman from Pennsylvania (Mr. English), a distinguished member of the Committee on Ways and Means.

Mr. Speaker, I yield 2 minutes to the gentleman from Illinois (Mr. Weller), another member of the Committee on Ways and Means.

(Mr. WELLER asked and was given permission to revise and extend his remarks.)

Mr. Speaker, I yield 2 minutes to the gentleman from Michigan (Mr. Camp), another distinguished member of the Committee on Ways and Means.

Mr. Speaker, I yield 2 minutes to the gentleman from Ohio (Mr. Portman), a member of the Committee on Ways and Means, a gentleman who has done tremendous work on the pension elements that are contained in this bill and will continue, I am sure, to provide leadership in this area.

Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from Ohio (Mr. Boehner), the distinguished chairman of the Committee on Education and the Workforce.

Mr. Speaker, I yield 2\1/2\ minutes to the gentleman from Michigan (Mr. Knollenberg).

Mr. Speaker, I yield the balance of my time to the gentleman from Florida (Mr. Foley), a respected member of the Committee on Ways and Means, who will close the debate on this bipartisan bill.

Mr. Speaker, I rise today to offer some observations regarding H.R. 3521, which includes the text of H.R. 528 that would establish normal trade relations for the Republic of Armenia.

First, I wish to make clear I have supported conditionally terminating the application of the Jackson-Vanik amendment, known as Title IV, to the Soviet successor states, starting with the Kyrgyz Republic and the Republic of Georgia in 2000.

In the case of this legislation, I support granting permanent normal trade relations (PNTR) status to Armenia. I believe that graduation from Jackson-Vanik will contribute to economic growth in Armenia. Starting in 1989, Armenia had been receiving annual Jackson-Vanik waivers, first as part of the Soviet Union and then as an independent country. It's time to make this process permanent.

However, I also strongly believe that the graduation for any successor state must be conditioned upon the development of a legal structure that guarantees internationally recognized human rights for its Jewish citizens, and members of other religious, national and ethnic minorities. In the absence of such conditions, there is in my opinion no possibility of establishing democratic institutions applicable to all citizens.

Twice in the past, in the case of the Republic of Georgia and the Republic of Kyrgyzstan, Congress has prudently determined that graduation from Jackson-Vanik would require more than the mere opening of a country's doors to emigration. The legislation prudently noted the advances made in other areas prior to waiving Jackson-Vanik, including the ability of Jews and other minorities to identify with their cultural heritage, restitution of communal property, rigorous governmental responses to anti-Semitism an xenophobia, and commitments on the implementation of laws and practices ensuring minority protection.

I believe that we do a disservice to the Republic of Armenia and to the Armenian diaspora--Armenia's greatest resource and asset--by not including the same standards to this legislation.

The findings that we believe should be included in this legislation are as follows:

The Congress of the United States finds that Armenia--

Registered significant progress in developing a system of

governance in accordance with the provisions of the Final Act

of the Conference on Security and Cooperation in Europe (also

known as the ``Helsinki Final Act'') regarding human rights

and humanitarian affairs;

Addressed issues related to its national and religious

minorities through the relevant articles of its Constitution,

and as a member state of the Organization for Security and

Cooperation in Europe (OSCE), ensured that persons belonging

to national minorities have full equality individually as

well as in community with other members of their group;

Provided protection against incitement to violence against

persons or groups based on national, racial, ethnic, or

religious discrimination, hostility, or hatred, including

anti-Semitism;

[Append the following to finding in H.R. 528 related to

enacting free-market reforms] And is committed to making

additional reforms to its economy;

Concluded a bilateral trade agreement with the United

States, which entered into force on April 7, 1992, and a

bilateral investment treaty, which entered into force on

March 29, 1996;

Demonstrated a commitment to enforcing internationally

recognized core labor standards and to continue to improve

effective enforcement of its laws reflecting such standards;

and

Acceded to the World Trade Organization on February 5,

2003, and the extension of unconditional normal trade

relations treatment to the products of Armenia will enable

the United States to avail itself of all rights under the

World Trade Organization with respect to Armenia.

Armenia's small Jewish community is relatively well-treated and maintains a good working relationship with the government. I hope that the Armenian government will make available to the Jewish community an appropriate public space as symbolic compensation for communal properties destroyed during the Soviet period.

Although Armenia has gained accession to the World Trade Organization, the decision to graduate a country from the Jackson-Vanik amendment should be based upon those issues which motivated the original enactment of this law: religious freedom and human rights. Adoption of PNTR for Armenia by this House in the context as part of a larger, unrelated tax measure without this language should not be seen as any precedent for any future graduation.

In any case, I look forward to working with the gentleman from California and the gentleman from New York on incorporating language along these lines in the final bill regarding this legislation.

Mr. Speaker, I thank the gentleman for yielding me this time, and for his outstanding presentation on the floor today and for going over some of the most relevant and important topics of this extension of expiring tax provisions.

I want to call to the attention of my colleagues on both sides of the aisle some very, very important substantial pieces of legislative tax work that are here in the bill. The Work Opportunity Tax Credit, a credit for employers equal to 40 percent of wages for hiring certain disadvantaged individuals. Targeted groups include TANF families, high- risk youth, certain ex-felons, summer youth, certain Veterans, and families on food stamps. This is a very important provision in this bill.

Welfare to work, again an experiment which has yielded tremendous results in Palm Beach County, the county in which I live, provides a tax credit for employers hiring targeted groups equal to 35 percent of wages.

These are interesting and important provisions to help people get back on their feet, to maintain a work ethic, and contribute to themselves, their families and our Nation.

The gentleman from Michigan (Mr. Camp) and I authored an important provision relevant to elementary and secondary school teachers. My father is a retired teacher and principal, and that is a $250 above- the-line deduction for teachers purchasing classroom supplies. It was first enacted in the 2002 stimulus bill, and it continues today.

Qualified zone academy bonds. These are targeted tax credit bonds for school construction in economically targeted areas. This is very important for Florida with the rapid growth of the population and the need for school construction, once again a mechanism by which localities can seek tax credits for bonds to help with that opportunity.

Charitable contributions of computer technology used for educational purposes. We have seen a blossoming of computers in the classroom in educational settings, most due to the generosity of companies with excess equipment. This extends for 1 year the current law which encourages donation of computer technology and related equipment for educational purposes, providing donors with a higher basis and, therefore, larger deductions.

The gentleman from Illinois (Mr. Weller) mentioned the brownfields remediations cost. Again, those are in my district and districts throughout the country.

The Archer medical savings account, which will be a provision contained also in our Medicare bill which will be brought to the floor tomorrow or Saturday, all of these issues contained in this extension provide some great opportunities for constituents throughout all 50 States and the territories.

Finally, for D.C. residents, the gentlewoman from the District of Columbia (Ms. Norton) has worked extensively in reviving the fortunes of the city, and extends for 1 year a range of tax incentives for activities in the District of Columbia, including an important $5,000 tax credit for first-time home buyers. Anyone who lives on Capitol Hill has noticed a refurbishing, a reinvigoration of one of our most important cities. Visitors from around the world come to see where we work and where democracy flourishes.

Thanks to this provision, a $5,000 tax credit, we are starting to see the fruits of the labor of this bill, increasing homeownership and increasing opportunities: zero capital gains for D.C. on long-term capital gains held in the District, rental real estate buildings, things of that nature, getting people to reinvest in the capital city; and I thank the gentlewoman from the District of Columbia (Ms. Norton) for helping the Mayor of this city and bringing some of these opportunities forward.

I encourage passage of the expiring tax provisions and urge adoption of this bill.