Madam President, I wish to speak and have my time allocated to the Kyl amendment. Madam President, I wish to speak both to the Kyl amendment and to the Gregg amendment, but let me indicate first to…
Madam President, I wish to speak and have my time allocated to the Kyl amendment.
Madam President, I wish to speak both to the Kyl amendment and to the Gregg amendment, but
let me indicate first to my friend from New Hampshire, we are not talking about sales that would have happened anyway. If anybody looks at the numbers of what has been happening in this country, we have had capacity to build 17 million vehicles in this country, 9 million of them sold in the last year, which is why we are seeing the automobile industry in the state that it is.
The reality is, this is a program that has been working. Consumers believe it is working, small businesspeople believe it is working, people who make steel and aluminum and advertisers and everyone who is involved in the larger economic impact of the auto industry believes it is working. That is why we need to pass this bill, as the House did.
As a general statement, I say everyone knows if any amendment is adopted, this program will fall. This program will be killed if any amendment is adopted. So we should start from that premise right now and then go to the merits. The reality is, if any amendment is adopted, the program will die. Those opposing the CARS Program are offering amendments hoping at least one of them will be adopted so the program will be killed.
With regard to the amendment of my friend from New Hampshire, first, let me say this. The bill is already deficit neutral. The $2 billion involved is completely offset with funds already appropriated under the Recovery Act. In a way, Senator Gregg's amendment is actually making us pay for this twice, which does not make any sense at all.
My colleagues on the other side of the aisle who are constantly bashing the recovery package for not delivering immediate results should be jumping for joy. There has been nothing more immediate, nothing more temporary, nothing more timely than the CARS Program.
The reality is that after only a week and a half into the program, we are back asking that the additional money we had originally asked for in the beginning be appropriated because this has worked.
I urge a strong ``no'' vote on the Gregg amendment.
As to the Kyl amendment, I also urge we oppose this amendment that would set an end date for this Saturday, effectively ending, again, one of the most important and successful stimulus we have had. It would be a hit to the economy, to the environment, and to consumer confidence just as it is starting to improve.
Many of the oversight goals Senator Kyl is seeking to achieve, NTHSA already has the authority to do and they are already working on. NTHSA is already maintaining a database and is working to make it as timely and up to date as possible.
The original legislation also requires a report on the program that will cover many of the details that are in the Kyl amendment. The legislation also adds the requirement of a GAO study that will review the administration of the program. DOT has made several modifications to its online system to streamline the transactions and to speed up the processes. They have conducted field hearings, informal surveys; they have worked with dealers, and they have doubled the number of staff they have had. They have worked to refine and to deal with the immediate concerns because of how quickly the response came in.
So I would just urge that we vote no on the Kyl amendment, no on the Gregg amendment, and no on any other amendment that will kill the most effective stimulus we have passed this year.
I thank the Chair.
Madam President, I appreciate the concerns the Senator from Oklahoma has raised. One question I would have is, if the amendment is adopted, would he in fact support a continuation of the program? Because he certainly made a number of other arguments in opposition, which I appreciate. I know those arguments as well. But I think, given all those arguments, this really is about trying to stop the program.
I urge my colleagues to oppose the amendment. It would absolutely derail what has been the most effective stimulus to date for us. It is about jobs, it is about helping small businesses.
With the concerns initially raised, some of the bureaucratic concerns initially--I have to tell you that NHTSA has been working fast and furiously in solving those problems. The National Association of Dealers strongly supports continuing this. I do not think they would if they believed it was not effective as a program.
Let me talk about the amendment specifically. It may be well intended, but there is no environmental benefit if the old vehicle is not scrapped--No. 1. The temporary CARS Program is specifically designed to maximize gas savings for consumers. In fact, so far the average savings is about $1,000, and for people in my State, that is a lot of money right now when you are pinching pennies and trying to keep things going in your household. That has been an extremely important part of this.
It is important to talk about the fact that this is a very limited program. It is very limited in scope. The funding extension will enable a replacement of less than .3 percent of the 250 million vehicles on the road. It does not compete with charities. The amendment is unnecessary because people can donate the value of the voucher to charity, if they want to. In fact, the voucher amount surpasses the value of the vehicle, so charities could actually receive more funds through a donation of the voucher, if someone wished to do that.
Also, the program, because it is temporary, does not affect long-term donations. In fact, we have met and worked with charities, discussed these issues,
because I strongly support the programs that have donations of automobiles to charities for the very reasons the Senator from Oklahoma talked about.
The reality is that there have been trends against donating cars in recent years. It is not because of the CARS Program, I have to indicate; it is because of a tax treatment change that was made under the Republican majority back in 2004 that has been a problem. If we want help the charities with automobiles, we would fix the tax treatment that was passed as part of the tax changes that were made under the Republican majority.
Also, many charities have indicated to us that they have not seen a drop in donations due to the program. What is most interesting is that we talked to some who have said they have actually seen an increase due to the heightened awareness of car recycling, particularly in owners who, after researching, find out they really do not qualify for the CARS Program but they are still looking to take advantage in some way of the deals that are out there on these great new vehicles, made in America. I hope people are going to be doing everything with their voucher to buy an American-made vehicle. The temporary program really has given people the opportunity to go out and shop and take a look at what is out there.
Pat Jessup, the president of Cars 4 Causes, has said that, ``oddly enough,'' car donations are up this month. Oddly enough, car donations are up this month. She adds:
In fact, because of the increase in donations, Cars 4
Causes has staffed up to handle the in-coming calls.
What a nice byproduct of all the awareness right now, of the possibilities going out and buying a new vehicle.
To continue quoting her:
Once the conversation about trading in or trading up or
donating a car gets going the car owner begins researching
possibilities, looking into tax deductions versus cash for
the trade-in. Also, some have found their car does not
qualify for the Cash for Clunkers Program, but while
researching they discover the tax advantages of donating a
vehicle. Then they call us.
I appreciate the concerns that have been raised, but, in fact, this program--raising awareness about the cars that are now available, the new or more fuel-efficient automobiles that are available in car dealerships all across the country, the ability to use the Cash for Clunkers Program, we are now seeing that other great programs where vehicles are donated to charities have actually gone up.
For that, among many other reasons, particularly because this amendment would kill the CARS Program, I urge a ``no'' vote.
Madam President, I also rise in opposition to the Vitter amendment.
First of all, this amendment, as my distinguished colleague has indicated, would limit the government's options in dealing with the financial crisis by prohibiting and restricting the extension authority. It would take away a very important option at this time that we should be retaining and, frankly, send the wrong signals to the markets when our markets are so fragile.
At a time when we are beginning to see small signs of improvement, small signs--and we will not see real signs until people have jobs and are working again--but restricting the administration's ability to stabilize the financial markets is dangerous and it is counterproductive to our economic growth.
Unfortunately, this amendment would actually undercut one of the most effective programs to help the economy we have seen. We know, as we have said before, if there are any amendments that are adopted, then this effectively kills the CARS Program.
So for a multitude of reasons, I would urge a ``no'' vote on this particular amendment.
Madam President, I am happy to yield.
Madam President, it was my great pleasure to yield and it is a very important point to raise and I appreciate the distinguished chairman of the Banking Committee for his comments, as he has led us on so many of these issues to bring us out of an incredibly difficult economic situation for the country.
Amendment No. 2306
Madam President, I also wish to speak, briefly, on the Isakson amendment, which I happen to support. At other times, in other places, I absolutely agree we need to continue to jump-start the housing market. I think we have seen that the $8,000 first-time home buyer tax credit has been a positive. I support expanding that.
When we look at what families choose to purchase, what their biggest purchases are, for most families it is their home and it is their automobile. We have actually modeled the CARS Program after the same kind of argument that caused the Congress and the President to support the stimulus, the $8,000 first-time home buyer tax credit. I think we ought to seriously look at ways to expand that, and I very much appreciate the leadership of the Senator from Georgia on this issue.
But the reality is, if we were to adopt this amendment to help those who are interested in buying a home, we would hurt people who need to buy an automobile and the stimulus that has worked so well, so quickly, in the CARS Program.
So I would ask for a ``no'' vote on this particular amendment simply because, at this point in time, we know what this is all about. Let's face it. We know what is happening here. Those who are opposed to the underlying bill, to the CARS Program, know if there are any amendments that are adopted, then the entire program will be ended. It will be done.
We are hearing from auto dealers all across the country, as well as consumers, as well as those who provide the materials for automobiles-- we have heard from the steel industry, we have heard from the aluminum industry, we have heard from those who benefited from advertising, we have heard from all those in the long line of people who benefit from the auto industry and manufacturing in this country--that this has worked in stimulating the economy, getting people back into showrooms.
Even if people do not qualify for the program, they get back into the showroom, and they look around at these great automobiles. I should say, a lot of them are made in Michigan. We look for those. But the reality is, there are great automobiles that are out there now, and people are taking this time to go in and to shop and buy automobiles, even if they are not part of the program.
So we are hearing from dealers all across the country talking about the success of this program. It is something for consumers, something people can see that is tangible. It is not just a debate about what might happen sometime in the future, but it is about right here, right now, how do we help consumers?
The added benefit, as we know, is that because we said you need to buy a more fuel-efficient vehicle, we are seeing, in fact, the fuel economy go up, savings go up. We are told right now the average vehicle that is being turned in gets a little bit above 15 miles per gallon; and people are buying vehicles that are getting a little under 25 miles per gallon. That is about $1,000 back in somebody's pocket saved on gasoline. And, boy, wouldn't we all like to have $1,000 back in our pockets right now as a result of a stimulus program that supports people's efforts to get into a more fuel-efficient vehicle? This has been a winner on every front.
We know, at this point in time--after the quick action in the House of Representatives last Friday when it became clear the initial funding was going to be running out--we have known since then, with the House gone, the opportunity to continue this program depends upon our willingness to step up and support the House bill without changes. We all know that.
I would challenge anyone offering an amendment, if their amendment is passed, does that mean we have their vote on the underlying bill? Because that would be a great concern of mine. At the moment, I think what we have are ideas that are good and ideas that are not that are being offered. But everybody knows, in the end, any amendment that is adopted, no matter how well intended--and I know there are well- intended efforts, good ideas, good ideas such as the Isakson amendment, which in another venue I have supported and will support--but right now, on this bill, if we make any changes, we are saying to every small business dealer, every dealer across the country: We don't care whether this has worked, we don't care whether this is effective, we don't want to support you, and we don't want to continue it. We are saying the same thing to consumers. We are saying the same thing to those who care desperately about the auto industry and manufacturing in this country.
So I am very hopeful we will reject all the amendments that are in front of us. On those I support, in terms of the substance, I look forward to working with colleagues in the future, to come back in other ways to put forward these ideas. There are certainly very good ideas that have been put forward, as well as ideas that I do not believe are positive.
But right now the only question in front of us is: Do you support the CARS Program? Do you support the small business dealers across this country? Do you believe this economic stimulus should be continued--an economic stimulus that has worked so well?
I have to say, in closing, I have said before, my father and my grandfather were auto dealers back in the days of Oldsmobile, which dates me. But I know what it was like growing up in a small town where this dealership was so important in terms of employment, in terms of supporting the community,
and all that was going on. I know how hard they worked.
My first job was washing cars on the car lot. I understand all that goes into a family-owned business and how much our dealers care about their community, about their business, about their employees. This is about them. This is about supporting people who support their communities, who create jobs, who have had a very, very, very tough time in this economy.
Here we have the great opportunity to support something, not based on faith, not based on some intellectual argument but based on the fact it is working. So I would urge all my colleagues to vote no on the amendments and to join us in extending, as we go into the August recess, a very important and effective stimulus for the American economy.
Thank you very much, Madam President.
Madam President, I urge a ``no'' vote on this amendment. This will stop this incredibly successful stimulus on Saturday. It will say to the 160,000 dealers all across this country that we are not willing to support something that has brought people into their showrooms. Whether qualifying for the CARS Program or not, people are coming in and buying automobiles. We are talking about a stimulus. We are talking about jobs. We are talking about moving the economy forward.
We all know if this amendment is adopted, or if any amendment is adopted the CARS Program will be ended. For those of us who believe it makes sense for consumers, for business, for the economy, I ask for a ``no'' vote.
Madam President, I again ask for a ``no'' vote. This will kill the program. I think it is important to know, we have worked closely with charities on this particular bill. We had some very interesting comments come back. We have been told that some of the charities are actually seeing increases in their own donations due to the heightened awareness of car recycling.
To quote Pat Jessup, president of Cars 4 Causes, she has said, ``oddly enough,'' car donations are up this month. ``In fact,'' she adds, ``because of the increase in donations, Cars 4 Causes has staffed up to handle the incoming calls.''
They indicated when people look, if they do not qualify for the Cash for Clunkers Program, they are going on to discover the tax advantages of donating a vehicle. Then they are calling them.
This is a short-term stimulus. It is not affecting very important charities. I urge a ``no'' vote.
Mr. President, for the sake of all of my colleagues, this would kill the CARS program for 160,000 dealers and consumers across the country.