A bill to amend the Internal Revenue Code of 1986 to allow an above-the-line deduction against individual income tax for interest in indebtedness and for State sales and excise taxes with respect to the purchase of certain motor vehicles.

Mr. President, it is a real pleasure to join and partner with my good friend, Senator Mikulski, on this initiative to save American jobs, help American families, support the auto industry, as she has just said, and put America back on wheels.

During those tough economic times, we believe this proposal will help American families afford the cars, small trucks, and SUVs they need to get to work, to take their kids to school, and encourage investment needed to boost auto sales which will help save American jobs, help middle-class families, and support the auto industry.

Selling cars, again, is one of the most important things we can do for the entire auto industry, by encouraging now tentative buyers who are worried about making the payments to go ahead and purchase. This is the best way to get our auto industry back to work and provide the jobs people need.

In my home State of Missouri and throughout the Nation car sales have declined sharply in recent months, and there will likely be a further decline as the economy struggles. Cars and trucks are one of the largest purchases for households. Most rely on some kind of financing to acquire the vehicles.

By making interest payments and sales and excise taxes deductible, this program will help middle-class families afford the cars, SUVs, and light trucks they need to get to work and take their kids to school. This should mean real savings to middle-class families who are struggling to pay a mortgage or rent, buy groceries, and afford health care.

This proposal also helps the struggling auto industry and millions of jobs that are dependent on them: auto suppliers, steel and glass manufacturers, and the car dealers.

There are closing car dealerships in Missouri. They are shutting their doors, laying off workers, cutting jobs. Others are facing real squeezes. They, too, may be facing this same crisis if they do not get people purchasing cars.

With our economy shedding hundreds of thousands of jobs over the past several months, it is critical that we act now to prevent further losses to an industry that touches the entire Nation.

Now, in addition to this tax proposal, I think we must take action to provide bridge loan financing to Detroit's big three auto companies. The idea of getting Government involved in the free market is troublesome and potentially dangerous to the health of our system, but I strongly believe we have to act in unique times of crisis when millions of workers are in danger of losing their jobs. We are clearly in this unique crisis. We are experiencing a crisis unparalleled since the Great Depression.

It is for that reason that I will not turn my back on hundreds of thousands of Missouri jobs. Now is the time to act. Unlike many other industries, the auto industry touches, as I said, millions of manufacturing and servicing jobs across the Nation.

Over 100,000 auto workers are in assembly plants, more than 1 million workers are at auto dealerships in every State, over 300,000 workers are in the wholesale end of the auto industry,

over 800,000 workers work in auto repair, and over 500,000 workers are in auto parts plants.

These autoworkers are not just in big cities such as Detroit. Autoworkers are found supporting families in small- and medium-sized communities across rural America.

In my home State of Missouri, small towns such as Maryville in northwest Missouri have 10,000 people, and 1,800 families depend upon the 200 workers at the Federal-Mogul plant. They are making steering systems. Closing that plant will be a tough blow to the Maryville community dependent upon it.

We have 500 jobs at the Dura plant in Moberly, 400 at the Gates plant in Versailles, 170 at the Modine plant in Joplin. On and on it goes, like a long list of just about every Missouri small- and medium-sized town. We cannot afford to pull the plug on the manufacturing backbone of rural America.

These auto-dependent jobs, whether they are union or not--and many are not--provide very good wages. They are manufacturing jobs that support middle-class families. They provide health care benefits for families, retirement for the elderly, and a couple weeks of paid vacation. Without these blue-collar jobs, many of these middle-class families would slip back into lower incomes with no health care, little hope for college, and an uncertain future. We have to fight for working people and their jobs and not allow their employers to go under.

Despite the real need for temporary emergency assistance to save jobs in Missouri and across the country, I do not support a blank check from the Government. I want to make sure we are not simply throwing good money after bad. It is critical that any rescue include three basic principles: First, the bill must have strong taxpayer protection. This means any bill must ensure that taxpayers are repaid for their emergency assistance and that taxpayers share in the turnaround profits of participating automakers.

Second, the bill must include executive accountability so that failed executives are not rewarded for poor management. I do not know about you, but I am offended when I read in the paper that companies getting Federal bailout money are using it to pay bonuses. Some of them said they have already set the bonuses aside. Well, if they set the bonuses aside, they set them aside as their company was going down. Getting money from the Federal Government should not enable them to make those bonus payments.

I have seen one major Wall Street firm saying it is going to stop bonuses until this crisis is over. I think that is something we should commend. I think that is a practice that ought to be followed.

Third, and most important--and this is key--the bill must include significant financial reform so that recipients of taxpayer funds demonstrate that they have a plan to ensure long-term competitiveness, health, and profitability by bringing their costs under control.

Funds should be conditioned on a strong restructuring plan for the industry and for each recipient to have funds so that this aid is a bridge to somewhere, not a bridge to nowhere. That is why I need to emphasize the need for a real financial strategy that will put the Detroit big three on the road to competitiveness, health, and profitability.

I believe we ought to set up a system where a responsible Government agency, a Secretary-level official, has to approve the continuing plans, the goals, the definable standards that must be met, and that official ought to hold them accountable for accomplishing the purposes, cutting the costs, and making the tough business decisions that are necessary to assure profitability.

Well, these are things I believe most of my colleagues want to see. I do not believe anybody wants to see the auto industry go down. But there is real concern that if we put in some money now, we may be back seeing them in the same condition several months down the road.

Well, the time has come for the auto industry to lay out for Government officials in their ability to approve the release of these funds if they have a plan. And as they go forward, they ought to be required to show the approving official that they are taking those steps that are necessary to make their plants and their companies profitable.

Some ask: Why don't we just allow the automakers to fall into bankruptcy like some in the airline industry? We all know bankruptcy has successfully allowed many airlines to get back in the air. I am afraid it would be a disaster for the thousands of parts and service businesses dependent on major automakers. How would they get credit to run their operations to supply a company in bankruptcy? How would the bankrupt company in the current crisis get the credit it needs to emerge from bankruptcy? Who is going to buy a car from a bankrupt company? What protections would they have for their warranties and other requirements they have for servicing?

Others say a financial rescue has no place in the free market. I agree that generally that is a good question. But even free markets need oversight and a safety net. That is why we have the Federal Reserve, the Securities and Exchange Commission, and the Federal Deposit Insurance Corporation. Each of these agencies is designed to take emergency actions in times of emergency. Clearly, that is what we have. That is why we should respond now.

There have been a lot of discussions on the source of funding for the auto industry, whether it should come out of the Treasury's Troubled Asset Relief Program, or TARP, or the Department of Energy's Section 136 program. I am pleased to see that there seems to be broad support for assisting the auto industry despite the differences in funding. I support either or both of these measures of support, provided we meet the conditions I laid out which include significantly laying out a plan to profitability, cost cutting that will be approved and then will be monitored by the appropriate Government official who has the power to continue to release the funds.

I will discuss in other remarks how the TARP has changed in purpose from what we were told it would be. It has continued to change. I am afraid it has caused a great deal of uncertainty, which, obviously, markets do not like. But before closing, I wish to suggest an area where there is great need and where I believe the funds under the Troubled Asset Relief Program can and should be used to give the economy a major boost, creating the jobs we badly need, and that is in State and local government infrastructure.

Despite the Government's efforts to thaw the credit crunch, State and local governments continue to face hardships in municipal bond financing. People were telling me, once we got the money into the banks, credit would loosen up and municipal bonds could be sold. So far, we are not seeing that. State and local bond and debt financing is still a problem. In Missouri and throughout the Nation, many infrastructure projects are being delayed or scaled back due to credit problems, the inability to get credit, and they have not faced it in many years.

Even State and local governments with high credit ratings are struggling to obtain affordable financing. In Missouri, for example, we have some $800 million approved in debt to rebuild our bridges. The city of Kansas City, MO, has $200 million it is ready to spend on its water and sewer infrastructure. The St. Louis Airport is badly in need of funding for $100 million in upgrades to facilitate commerce and continue to provide jobs. I believe the funds should be used to purchase those portions of those debts that can be used to put people to work in 2009. Not all of the $800 million on fixing bridges is going to be spent in 1 year, but there should be a reasonable judgment as to how much work can be started when construction season begins in the spring.

We ought to be willing to have the Federal Government provide the funding and get the debt issuance in return, which, if they fund it at the current going rate for debt with the Federal Government, should be a no-cost ultimate cost to the taxpayer or an addition to the debt. But what these infrastructure jobs will do right now is provide work so that working men and women will be able to do things such as buy cars, provide for their families, spend the money to get the economy growing again.

I urge Treasury to consider assisting the municipal bond market through the TARP program. It will not only

boost infrastructure investments, build the critical infrastructure we need to make our economy go forward, but it will create jobs. As has been said many times before by people a lot smarter than I, a good job is the best social policy we have. A good job is the basis of the economy.

What we are advocating today in the bill I cosponsored with Senator Mikulski is a way to get cars sold so they will create jobs all up and down the chain in the auto industry and provide a bridge to somewhere for the future of the auto industry so they will get their costs under control, keep them out of bankruptcy, and make the changes that are needed to be competitive in the national and the world market.

I urge my colleagues to join with us in the legislation by Senator Mikulski and also in pushing to use the TARP funds for investment in municipal bonds that will put people to work on infrastructure.

Mr. President, it is a real pleasure to join and partner with my good friend, Senator Mikulski, on this initiative to save American jobs, help American families, support the auto industry, as she has just said, and put America back on wheels.

During those tough economic times, we believe this proposal will help American families afford the cars, small trucks, and SUVs they need to get to work, to take their kids to school, and encourage investment needed to boost auto sales which will help save American jobs, help middle-class families, and support the auto industry.

Selling cars, again, is one of the most important things we can do for the entire auto industry, by encouraging now tentative buyers who are worried about making the payments to go ahead and purchase. This is the best way to get our auto industry back to work and provide the jobs people need.

In my home State of Missouri and throughout the Nation car sales have declined sharply in recent months, and there will likely be a further decline as the economy struggles. Cars and trucks are one of the largest purchases for households. Most rely on some kind of financing to acquire the vehicles.

By making interest payments and sales and excise taxes deductible, this program will help middle-class families afford the cars, SUVs, and light trucks they need to get to work and take their kids to school. This should mean real savings to middle-class families who are struggling to pay a mortgage or rent, buy groceries, and afford health care.

This proposal also helps the struggling auto industry and millions of jobs that are dependent on them: auto suppliers, steel and glass manufacturers, and the car dealers.

There are closing car dealerships in Missouri. They are shutting their doors, laying off workers, cutting jobs. Others are facing real squeezes. They, too, may be facing this same crisis if they do not get people purchasing cars.

With our economy shedding hundreds of thousands of jobs over the past several months, it is critical that we act now to prevent further losses to an industry that touches the entire Nation.

Now, in addition to this tax proposal, I think we must take action to provide bridge loan financing to Detroit's big three auto companies. The idea of getting Government involved in the free market is troublesome and potentially dangerous to the health of our system, but I strongly believe we have to act in unique times of crisis when millions of workers are in danger of losing their jobs. We are clearly in this unique crisis. We are experiencing a crisis unparalleled since the Great Depression.

It is for that reason that I will not turn my back on hundreds of thousands of Missouri jobs. Now is the time to act. Unlike many other industries, the auto industry touches, as I said, millions of manufacturing and servicing jobs across the Nation.

Over 100,000 auto workers are in assembly plants, more than 1 million workers are at auto dealerships in every State, over 300,000 workers are in the wholesale end of the auto industry,

over 800,000 workers work in auto repair, and over 500,000 workers are in auto parts plants.

These autoworkers are not just in big cities such as Detroit. Autoworkers are found supporting families in small- and medium-sized communities across rural America.

In my home State of Missouri, small towns such as Maryville in northwest Missouri have 10,000 people, and 1,800 families depend upon the 200 workers at the Federal-Mogul plant. They are making steering systems. Closing that plant will be a tough blow to the Maryville community dependent upon it.

We have 500 jobs at the Dura plant in Moberly, 400 at the Gates plant in Versailles, 170 at the Modine plant in Joplin. On and on it goes, like a long list of just about every Missouri small- and medium-sized town. We cannot afford to pull the plug on the manufacturing backbone of rural America.

These auto-dependent jobs, whether they are union or not--and many are not--provide very good wages. They are manufacturing jobs that support middle-class families. They provide health care benefits for families, retirement for the elderly, and a couple weeks of paid vacation. Without these blue-collar jobs, many of these middle-class families would slip back into lower incomes with no health care, little hope for college, and an uncertain future. We have to fight for working people and their jobs and not allow their employers to go under.

Despite the real need for temporary emergency assistance to save jobs in Missouri and across the country, I do not support a blank check from the Government. I want to make sure we are not simply throwing good money after bad. It is critical that any rescue include three basic principles: First, the bill must have strong taxpayer protection. This means any bill must ensure that taxpayers are repaid for their emergency assistance and that taxpayers share in the turnaround profits of participating automakers.

Second, the bill must include executive accountability so that failed executives are not rewarded for poor management. I do not know about you, but I am offended when I read in the paper that companies getting Federal bailout money are using it to pay bonuses. Some of them said they have already set the bonuses aside. Well, if they set the bonuses aside, they set them aside as their company was going down. Getting money from the Federal Government should not enable them to make those bonus payments.

I have seen one major Wall Street firm saying it is going to stop bonuses until this crisis is over. I think that is something we should commend. I think that is a practice that ought to be followed.

Third, and most important--and this is key--the bill must include significant financial reform so that recipients of taxpayer funds demonstrate that they have a plan to ensure long-term competitiveness, health, and profitability by bringing their costs under control.

Funds should be conditioned on a strong restructuring plan for the industry and for each recipient to have funds so that this aid is a bridge to somewhere, not a bridge to nowhere. That is why I need to emphasize the need for a real financial strategy that will put the Detroit big three on the road to competitiveness, health, and profitability.

I believe we ought to set up a system where a responsible Government agency, a Secretary-level official, has to approve the continuing plans, the goals, the definable standards that must be met, and that official ought to hold them accountable for accomplishing the purposes, cutting the costs, and making the tough business decisions that are necessary to assure profitability.

Well, these are things I believe most of my colleagues want to see. I do not believe anybody wants to see the auto industry go down. But there is real concern that if we put in some money now, we may be back seeing them in the same condition several months down the road.

Well, the time has come for the auto industry to lay out for Government officials in their ability to approve the release of these funds if they have a plan. And as they go forward, they ought to be required to show the approving official that they are taking those steps that are necessary to make their plants and their companies profitable.

Some ask: Why don't we just allow the automakers to fall into bankruptcy like some in the airline industry? We all know bankruptcy has successfully allowed many airlines to get back in the air. I am afraid it would be a disaster for the thousands of parts and service businesses dependent on major automakers. How would they get credit to run their operations to supply a company in bankruptcy? How would the bankrupt company in the current crisis get the credit it needs to emerge from bankruptcy? Who is going to buy a car from a bankrupt company? What protections would they have for their warranties and other requirements they have for servicing?

Others say a financial rescue has no place in the free market. I agree that generally that is a good question. But even free markets need oversight and a safety net. That is why we have the Federal Reserve, the Securities and Exchange Commission, and the Federal Deposit Insurance Corporation. Each of these agencies is designed to take emergency actions in times of emergency. Clearly, that is what we have. That is why we should respond now.

There have been a lot of discussions on the source of funding for the auto industry, whether it should come out of the Treasury's Troubled Asset Relief Program, or TARP, or the Department of Energy's Section 136 program. I am pleased to see that there seems to be broad support for assisting the auto industry despite the differences in funding. I support either or both of these measures of support, provided we meet the conditions I laid out which include significantly laying out a plan to profitability, cost cutting that will be approved and then will be monitored by the appropriate Government official who has the power to continue to release the funds.

I will discuss in other remarks how the TARP has changed in purpose from what we were told it would be. It has continued to change. I am afraid it has caused a great deal of uncertainty, which, obviously, markets do not like. But before closing, I wish to suggest an area where there is great need and where I believe the funds under the Troubled Asset Relief Program can and should be used to give the economy a major boost, creating the jobs we badly need, and that is in State and local government infrastructure.

Despite the Government's efforts to thaw the credit crunch, State and local governments continue to face hardships in municipal bond financing. People were telling me, once we got the money into the banks, credit would loosen up and municipal bonds could be sold. So far, we are not seeing that. State and local bond and debt financing is still a problem. In Missouri and throughout the Nation, many infrastructure projects are being delayed or scaled back due to credit problems, the inability to get credit, and they have not faced it in many years.

Even State and local governments with high credit ratings are struggling to obtain affordable financing. In Missouri, for example, we have some $800 million approved in debt to rebuild our bridges. The city of Kansas City, MO, has $200 million it is ready to spend on its water and sewer infrastructure. The St. Louis Airport is badly in need of funding for $100 million in upgrades to facilitate commerce and continue to provide jobs. I believe the funds should be used to purchase those portions of those debts that can be used to put people to work in 2009. Not all of the $800 million on fixing bridges is going to be spent in 1 year, but there should be a reasonable judgment as to how much work can be started when construction season begins in the spring.

We ought to be willing to have the Federal Government provide the funding and get the debt issuance in return, which, if they fund it at the current going rate for debt with the Federal Government, should be a no-cost ultimate cost to the taxpayer or an addition to the debt. But what these infrastructure jobs will do right now is provide work so that working men and women will be able to do things such as buy cars, provide for their families, spend the money to get the economy growing again.

I urge Treasury to consider assisting the municipal bond market through the TARP program. It will not only

boost infrastructure investments, build the critical infrastructure we need to make our economy go forward, but it will create jobs. As has been said many times before by people a lot smarter than I, a good job is the best social policy we have. A good job is the basis of the economy.

What we are advocating today in the bill I cosponsored with Senator Mikulski is a way to get cars sold so they will create jobs all up and down the chain in the auto industry and provide a bridge to somewhere for the future of the auto industry so they will get their costs under control, keep them out of bankruptcy, and make the changes that are needed to be competitive in the national and the world market.

I urge my colleagues to join with us in the legislation by Senator Mikulski and also in pushing to use the TARP funds for investment in municipal bonds that will put people to work on infrastructure.

Mr. President, I have sought recognition to comment on two issues relating to our current economic problems which are so widespread in our country. One is the proposed economic aid to the automobile manufacturers and the second is the proposed assistance to people who are threatened with foreclosure.

The suggestion has been made that there should be very substantial Federal economic aid to the automobile manufacturers, focusing at the moment on General Motors. I am prepared to consider that issue providing we have a factual and evidentiary basis which would warrant such economic aid, with an analysis of the current financial situation of General Motors, with an analysis of what the proposals are to assist General Motors in a way which would be realistically calculated to keep General Motors in operation, and with an evidentiary base to show that there is not some preferable alternative with respect to letting the market take its course.

It seems to me indispensable that if Congress is to undertake that kind of analysis that there is going to have to be regular order followed as to how we legislate in this body. And that was not done on the recent $700 billion proposal which was passed by the Congress last month. Our regular order requires that there be a legislative proposal, a bill written down which can be read, studied, and analyzed. After there is a bill, to have hearings with the appropriate committee and to hear proponents of the plan and to hear opponents of the plan and then to have in regular order a committee markup where the members of the committee sit down--in this case the Banking Committee, which has jurisdiction--look over the bill and then mark it up--that is goes over the bill line by line. Then a report is written. The report comes to the full membership, the Senate has debate, amendments may be offered, and then the Senate works its will on passing a bill, if the Senate chooses to do so.

A similar proceeding occurs in the House of Representatives, and then there is a conference with Members of the two bodies coming together for a presentation to the President, who then has ideas maybe involved in the legislative process, and he signs or vetoes.

Regrettably, that was not done during the passage of the $700 billion economic aid proposal, and it was not done, I submit, much to the disadvantage of the country. When this issue was under consideration, I wrote to the majority leader and the Republican leader by a letter dated September 21 urging that we not rush to judgment; saying that we ought to follow regular order in the way we handle this matter.

Mr. President, I ask unanimous consent to have inserted in the Record a copy of this letter following my remarks.

On September 23, I wrote to Secretary of the Treasury Paulson and the Chairman of the Federal Reserve Ben Bernanke raising quite a number of issues looking to what the merits of the proposal were. On September 27, I wrote again to Secretary Paulson, Chairman Bernanke, also again to the leaders of the House and Senate, and also to the key members of the committee raising a series of questions. I have yet to receive an answer to any of these letters.

On September 29, I was informed that we would have a session after the House of Representatives defeated the proposal, which was a surprise; that there would be a session on Wednesday, October 1, at 7:30 in the evening, and the Senate was then confronted with a proposition to either take it or leave it. No amendments could be offered. By this time, the original proposal had expanded from 4 pages, which Secretary Paulson had initially submitted, and it had expanded to more than 100 pages, then to more than 400 pages. It was unknown generally that there was a good bit in the legislative proposal of what we refer to as grants or pork, which turned out to be very, very embarrassing. But faced with that kind of an emergency situation, my vote was cast in the affirmative.

The vote was 474 to 25, a very heavy margin in support of the legislation, and it was a rush to judgment, without following regular order and without considering so many of the critical issues which should have been taken up in the regular course of Senate business.

I traveled my State during the course of the month of October, as it is my custom to touch each of Pennsylvania's 67 counties each year, and the number one item on the agenda was the $700 billion economic aid program. And candidly, the temperature of my constituents was boiling-- 212 degrees Fahrenheit--and the thermometer was broken. I see the distinguished Senator from Maryland, Senator Mikulski, nodding in the affirmative that that was the situation in her State as well. Now we are asked to have economic aid for General Motors. There has been a figure of some $25 billion which is talked about. I am prepared to consider that, but only if there is an understanding of what are the facts, what is the evidence; is there a factual and evidentiary base for Congress to do this?

I am told informally that it takes $11 to $14 billion in cash to operate General Motors.

But they now have $16.2 billion. They have $50 billion in bonds that are perhaps worth in the range of $20 billion or a little more in the market that yield 9 percent in interest. On the market value, that would put their borrowing somewhere over 20 percent. The question comes to my mind: Isn't that expensive? Couldn't that be modified? But I have yet to see any semblance of a plan for General Motors to become viable. What are the prospects?

General Motors and the automobile industry generally--the industry has been on notice for a long time that they were in a very difficult competitive situation; that the standards on gas mileage were about to be imposed and were imposed in legislation last year. What have they done?

We have been told it is not advisable to consider chapter 11 proceedings under bankruptcy. But we know that Continental and U.S. Air have gone through that.

We are told that the warranties would not be sustainable and that people would lose confidence. There may be ways to address that kind of issue with a fund set up for warranties to be funded.

All of these are questions which, it seems to me, need to be answered. When we were informed through a variety of sources that we would be in a lame duck session starting today, there was a projection for a Senate vote on Wednesday. I wrote to Senator Reid and Senator McConnell, a letter very similar to the one I wrote on September 21, urging that we not rush to judgment and asking that there be consideration of a great many of these issues if we were to make some sensible determination as to financial aid to the automobile industry. I sent copies of this letter, again, to Treasury Secretary Paulson and to Federal Reserve Chairman Bernanke, and also to the chief executive officers of General Motors, Ford, and Chrysler.

I ask unanimous consent that copies of these letters be printed in the Record.

Mr. President, I ask unanimous consent to continue for 5 more minutes.

I thank my colleague from Maryland.

Mr. President, it seems to me these are key questions which need to be answered. The automobile industry obviously is of enormous importance in our country. Not to have the automobile industry would have very severe economic consequences. But we do have to have answers to these questions in regular order. We need to take these matters up so we can cast an intelligent

vote on this kind of economic aid. The question I would supplement is-- I heard it from my constituents--Who is next? Bear Stearns was given economic aid, Lehman Brothers was not, and perhaps that was a mistake-- perhaps not. AIG was given considerable economic aid. Fannie Mae and Freddie Mac were given considerable economic aid. If we are to make an intelligent decision, we are going to have to take a look at these important questions.

Exhibit 1

United States Senate,

Washington, DC, September 21, 2008.

Senator Harry Reid,

Majority Leader, U.S. Senate,

Washington, DC.

Senator Mitch McConnell,

Minority Leader, U.S. Senate,

Washington, DC.

Dear Harry and Mitch: As you project the Senate's schedule,

I urge that we not rush to judgment and take whatever time is

necessary on any proposed legislation to deal with the

nation's economic problems. The public, our constituents,

have a great deal of skepticism, which I share, about

legislation which will let Wall Street ``off the hook'' and

pay insufficient attention to Main Street, middle class

Americans.

It is important to focus the legislation on the hundreds of

thousands of homeowners who are at risk of losing their

residences to foreclosure.

In deciding what additional powers to give to the federal

regulators, I believe we should give careful consideration to

not extending those powers beyond the current crisis and take

steps to prevent a recurrence.

I have read reports that some Wall Street firms, whose

conduct has created the crisis, will benefit from a

congressional legislative fix. We should do our utmost to see

to it that those responsible for the crisis bear the maximum

financial burden on any bailout in order to minimize the

taxpayers' exposure.

There are reports that the bailout might be extended to

foreign firms with United States affiliates. In my view, the

legislation must be carefully tailored for United States'

interests and if foreign firms, even if United States

affiliates are to be involved, then consideration should

given to appropriate contributions from those foreign

governments.

I realize there is considerable pressure for the Congress

to adjourn by the end of next week, but I think we must take

the necessary time to conduct hearings, analyze the

Administration's proposed legislation, and demonstrate to the

American people that any response is thoughtful, thoroughly

considered and appropriate.

Sincerely,

Arlen Specter.

(The remarks of Mr. Specter pertaining to the introduction of S. 3686 are located in today's Record under ``Statements on Introduced Bills and Joint Resolutions.'')

Mr. President, our economy is in shambles. People are losing their jobs, they are losing their life savings, and they are losing their homes. Congress must act and we must act now.

I agree with the Senator from Pennsylvania, Mr. Specter, that this session of the Congress and this session of the Senate should not be called a lameduck. We should neither be lame nor should we duck the big issue facing our country. We have helped out. If you look at what we have done already--well, we have already done a bailout. We helped the sharks and we helped the whales. Now it is time to help the minnows, the little guy and gal, the American consumer.

I have that solution. Today, I introduce legislation, cosponsored by my colleague from Missouri, to save jobs in the American automobile industry, to help consumers, and get our economy back on track. It is simple, it is straightforward, and it is bipartisan. It is also timely and temporary.

My bill would save jobs. What is it that I want to do? I want to stimulate demand in the automobile industry so people actually come into showrooms and buy cars, minivans, or light trucks. Why is this a good idea? Actually, if you buy a car, someone has to make it, someone has to sell it, someone has to service it, and someone has to provide administrative services. This is good for manufacturers, the dealers, and the suppliers. It could save considerable jobs in the auto industry.

My bill is not about bailouts. It is about jobs, jobs, jobs. Six million jobs are at stake in the American car industry. One out of ten jobs in America relies on the auto industry. Right now, the facts are gloomy. Sales are down. The auto industry has already cut over 100,000 jobs. The 30,000 American dealerships in this country are at risk of losing 37,000 jobs. We cannot let this happen. We cannot let the American automobile industry implode.

I believe we can help by getting the consumers into the showroom, have them feel that Government is on their side in helping them with one of the biggest purchases during this tough time.

What does this amendment do? My bill is simple. If you buy a passenger car, minivan, or light truck between November 12 of this year and December 31 of 2009, you will get a tax deduction for your sales or excise tax and the interest on your loan. Families can save anywhere from $2,000 to $5,000 by the Mikulski-Bond bill.

This is a big deal because, next to the purchase of your home, the purchase of your automobile is your next big ticket.

It is targeted. I cap it at families with an income of over $250,000 a year. It focuses on the middle-income and the middle-class family cars. It is also timely because we need to know that the biggest 6-week period for automobile sales is between Thanksgiving and New Year's Eve. They sell other cars during 6-week periods, but between Thanksgiving and New Year's

Eve is the biggest 6-week sale. This bill also helps the environment because it gets more people in more fuel-efficient cars.

This bill is not limited to only American cars. It focuses on any car, recognizing that many automobiles are now made in southern States, as Texas does Toyotas; Kentucky does Toyotas; Tennessee does Nissans. Any way we look at it, even though it might have a foreign logo, it is American jobs doing the manufacturing.

What would this mean? I have here a chart--it is bigger than me--for a Dodge minivan. The average minivans cost about $25,500.

On a 4-year loan at an 8 percent excise tax, it would result in a savings of anywhere, depending on the State, from $1,500 to $2,000.

I have already heard from people all over this country how that, plus the deals being offered by manufacturers and dealers, could result in being able to buy a minivan for under $20,000 a year.

This would be fantastic. I could put up chart after chart for the Malibu, for the Ford pickup 150, for the Toyota Camry. This would stimulate demand. Just think what it means. People could come into a showroom of their choice, and if we passed this bill--it would be retroactive to the day I announced they could actually buy something that would put them on the road with a car that is more fuel efficient with lower carbon emissions.

At the same time, jobs, jobs, jobs. As I said, there are 30,000 new car dealerships nationwide. They employ close to 1 million people. In my own home State there are 300 dealerships. People do not realize that dealers in many rural parts of my State usually employ over 50 people in sales, the auto mechanics, as well as the administrative positions. This legislation would help them because they would actually be working. It would help the people who are actually making those.

Senator Specter said he has been traveling the State. I have been traveling mine too. I went to the General Motors plant in Maryland at White Marsh where they make the new power transmission. Right now they can make a Tahoe hybrid, a Tahoe, a big muscle car, that with the hybrid technology they have now, can get the same mileage as a Toyota Camry.

If you also talk to the people who worked there, they could employ 1,000; they now employ 250 people. If you were with me in the car dealership and would talk to people such as the mechanic--I talked to a mechanic who works for a Chevy dealer in Bethesda. He has worked there for 23 years.

He said to me: Senator Barb, all my life I have loved to work on cars. I just love it. I love to fix them; I love to repair them. If they are new, I want to make sure they are fit for duty. I have earned a good living. I have been happy. I think I have helped make a lot of other people happy. But the only way I can stay happy is if I continue to work. I have a mortgage. I have two kids in college. Maybe they are going to go into engineering, I do not know, but I know if we do not get more people into this dealership my job could be gone.

Talk to the dealer. The dealer's name is Sam. The first thing you know about him is he wears the little Rotary pin on his lapel because he is the guy who not only provides jobs, tries to provide good deals to customers, but also is the one who is part of the Chamber of Commerce, part of the United Way.

We are talking about people who are part of the fabric of our society. We are not talking about an abstraction. We are not talking about a single ZIP code like Wall Street. We are talking about the automobile industry in every State and every community. So when we help them, we are helping ourselves.

People say: what is the cost of this, Senator Barb? Well, I will tell you. It is about $8 billion. They go: Oh, well, we just spent $350 billion and threw it down the rat hole. We do not have anything to show for this $350 billion but more arrogance and more greed. While they want Americans to dine on Lean Cuisine, they are dining on spa cuisine.

So I think it is time we help people in our own community, help the consumers who want to participate in the economy. Clunkers get traded in, and we also help them. Maybe you know somebody who works for a hedge fund, I do not. But I do know the people who work for the automobile industry--whether it is the dealers or the receptionist who came to work 43 years ago right out of high school who said: Senator Barb, we could not sell cars in those days, but I have been here in and out of this same dealer for 43 years, raised my kids, earned a good living, did the back office work. I want to keep on doing it. I am not ready for Social Security, and, for God's sake, do not put it in Wall Street.

Well, I say do not put Social Security on Wall Street and do not put another nickel on Wall Street. If we are going to help with our economy, let's do it where it creates jobs.

I wanted to explain the bill I have introduced today that I am going to bring up as part of our economic recovery plan on Wednesday. But most of all, what I wanted to say is, the Congress should not go home until we see how we are going to help this economy get rolling.

I think my bill which has been cosponsored by Senator Bond puts wheels on the American economy, and I hope I have victory on it later this week.

I yield the floor.

Mr. President, our economy is in shambles. People are losing their jobs, they are losing their life savings, and they are losing their homes. Congress must act and we must act now.

I agree with the Senator from Pennsylvania, Mr. Specter, that this session of the Congress and this session of the Senate should not be called a lameduck. We should neither be lame nor should we duck the big issue facing our country. We have helped out. If you look at what we have done already--well, we have already done a bailout. We helped the sharks and we helped the whales. Now it is time to help the minnows, the little guy and gal, the American consumer.

I have that solution. Today, I introduce legislation, cosponsored by my colleague from Missouri, to save jobs in the American automobile industry, to help consumers, and get our economy back on track. It is simple, it is straightforward, and it is bipartisan. It is also timely and temporary.

My bill would save jobs. What is it that I want to do? I want to stimulate demand in the automobile industry so people actually come into showrooms and buy cars, minivans, or light trucks. Why is this a good idea? Actually, if you buy a car, someone has to make it, someone has to sell it, someone has to service it, and someone has to provide administrative services. This is good for manufacturers, the dealers, and the suppliers. It could save considerable jobs in the auto industry.

My bill is not about bailouts. It is about jobs, jobs, jobs. Six million jobs are at stake in the American car industry. One out of ten jobs in America relies on the auto industry. Right now, the facts are gloomy. Sales are down. The auto industry has already cut over 100,000 jobs. The 30,000 American dealerships in this country are at risk of losing 37,000 jobs. We cannot let this happen. We cannot let the American automobile industry implode.

I believe we can help by getting the consumers into the showroom, have them feel that Government is on their side in helping them with one of the biggest purchases during this tough time.

What does this amendment do? My bill is simple. If you buy a passenger car, minivan, or light truck between November 12 of this year and December 31 of 2009, you will get a tax deduction for your sales or excise tax and the interest on your loan. Families can save anywhere from $2,000 to $5,000 by the Mikulski-Bond bill.

This is a big deal because, next to the purchase of your home, the purchase of your automobile is your next big ticket.

It is targeted. I cap it at families with an income of over $250,000 a year. It focuses on the middle-income and the middle-class family cars. It is also timely because we need to know that the biggest 6-week period for automobile sales is between Thanksgiving and New Year's Eve. They sell other cars during 6-week periods, but between Thanksgiving and New Year's

Eve is the biggest 6-week sale. This bill also helps the environment because it gets more people in more fuel-efficient cars.

This bill is not limited to only American cars. It focuses on any car, recognizing that many automobiles are now made in southern States, as Texas does Toyotas; Kentucky does Toyotas; Tennessee does Nissans. Any way we look at it, even though it might have a foreign logo, it is American jobs doing the manufacturing.

What would this mean? I have here a chart--it is bigger than me--for a Dodge minivan. The average minivans cost about $25,500.

On a 4-year loan at an 8 percent excise tax, it would result in a savings of anywhere, depending on the State, from $1,500 to $2,000.

I have already heard from people all over this country how that, plus the deals being offered by manufacturers and dealers, could result in being able to buy a minivan for under $20,000 a year.

This would be fantastic. I could put up chart after chart for the Malibu, for the Ford pickup 150, for the Toyota Camry. This would stimulate demand. Just think what it means. People could come into a showroom of their choice, and if we passed this bill--it would be retroactive to the day I announced they could actually buy something that would put them on the road with a car that is more fuel efficient with lower carbon emissions.

At the same time, jobs, jobs, jobs. As I said, there are 30,000 new car dealerships nationwide. They employ close to 1 million people. In my own home State there are 300 dealerships. People do not realize that dealers in many rural parts of my State usually employ over 50 people in sales, the auto mechanics, as well as the administrative positions. This legislation would help them because they would actually be working. It would help the people who are actually making those.

Senator Specter said he has been traveling the State. I have been traveling mine too. I went to the General Motors plant in Maryland at White Marsh where they make the new power transmission. Right now they can make a Tahoe hybrid, a Tahoe, a big muscle car, that with the hybrid technology they have now, can get the same mileage as a Toyota Camry.

If you also talk to the people who worked there, they could employ 1,000; they now employ 250 people. If you were with me in the car dealership and would talk to people such as the mechanic--I talked to a mechanic who works for a Chevy dealer in Bethesda. He has worked there for 23 years.

He said to me: Senator Barb, all my life I have loved to work on cars. I just love it. I love to fix them; I love to repair them. If they are new, I want to make sure they are fit for duty. I have earned a good living. I have been happy. I think I have helped make a lot of other people happy. But the only way I can stay happy is if I continue to work. I have a mortgage. I have two kids in college. Maybe they are going to go into engineering, I do not know, but I know if we do not get more people into this dealership my job could be gone.

Talk to the dealer. The dealer's name is Sam. The first thing you know about him is he wears the little Rotary pin on his lapel because he is the guy who not only provides jobs, tries to provide good deals to customers, but also is the one who is part of the Chamber of Commerce, part of the United Way.

We are talking about people who are part of the fabric of our society. We are not talking about an abstraction. We are not talking about a single ZIP code like Wall Street. We are talking about the automobile industry in every State and every community. So when we help them, we are helping ourselves.

People say: what is the cost of this, Senator Barb? Well, I will tell you. It is about $8 billion. They go: Oh, well, we just spent $350 billion and threw it down the rat hole. We do not have anything to show for this $350 billion but more arrogance and more greed. While they want Americans to dine on Lean Cuisine, they are dining on spa cuisine.

So I think it is time we help people in our own community, help the consumers who want to participate in the economy. Clunkers get traded in, and we also help them. Maybe you know somebody who works for a hedge fund, I do not. But I do know the people who work for the automobile industry--whether it is the dealers or the receptionist who came to work 43 years ago right out of high school who said: Senator Barb, we could not sell cars in those days, but I have been here in and out of this same dealer for 43 years, raised my kids, earned a good living, did the back office work. I want to keep on doing it. I am not ready for Social Security, and, for God's sake, do not put it in Wall Street.

Well, I say do not put Social Security on Wall Street and do not put another nickel on Wall Street. If we are going to help with our economy, let's do it where it creates jobs.

I wanted to explain the bill I have introduced today that I am going to bring up as part of our economic recovery plan on Wednesday. But most of all, what I wanted to say is, the Congress should not go home until we see how we are going to help this economy get rolling.

I think my bill which has been cosponsored by Senator Bond puts wheels on the American economy, and I hope I have victory on it later this week.

I yield the floor.