Supporting the goals and ideals of National Financial Literacy Month, 2010, and for other purposes.

Mr. Speaker, I move to suspend the rules and agree to the resolution (H. Res. 1257) supporting the goals and ideals of National Financial Literacy Month, 2010, and for other purposes.

Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days within which to revise and extend their remarks on this legislation and to insert extraneous material thereon.

Mr. Speaker, I yield myself as much time as I may need.

Mr. Speaker, I rise in strong support of House Resolution 1257, Supporting the Goals and Ideals of National Financial Literacy Month, 2010, and for other purposes. I will enter into today's Record President Barack Obama's National Financial Literacy Month proclamation, which I hold in my hands.

Mr. Speaker, it gives me great pride to bring this important resolution to the floor of the U.S. House of Representatives. It contains some very important data on financial literacy and economic education. Unfortunately, I'm sad to have to report again this year that the surveys and the studies we reviewed while drafting this resolution indicate that the majority of Americans remain financially illiterate and are in desperate need of financial education.

I represent the 15th Congressional District of Texas, which includes Hidalgo County, one of the poorest counties in the whole country. It is 89 percent Hispanic and contains over 900 colonias. Many of the residents do not speak English fluently, and several speak English as a second language.

They tend to purchase refrigerators, washing machines, automobiles, televisions, and electronic equipment in cash. One of the reasons for this aberration is a question of trust. Another is that lower-income Americans are not aware of the benefits conveyed when they open a bank account at a mainstream financial institution.

A more pervasive problem is that mainstream financial institutions tend not to open branches in the neighborhoods in which these constituents live. Consequently, these residents are left to rely on non-mainstream financial servicers such as payday lenders, such as check cashers and other predatory entities.

For these reasons, I was not surprised by the findings of the FDIC's December 2009 national survey of unbanked and under-banked households. It revealed that approximately 60 million people in our United States are either unbanked or under-banked.

It is for situations such as this that Congresswoman Judy Biggert and I began collaborating on financial literacy and economic education starting in 2003. Two years later, in 2005, we co-founded and currently co-chair the Financial Economic Literacy Caucus. I'm very pleased and grateful that she and I and the members of this caucus have worked together on a bipartisan basis on financial literacy and economic education over the years.

This year, 2010, the caucus has coordinated with several different associations on financial literacy events, including the National Consumer Protection Week Fair, America Saves Week, and the release of the National Foundation for Credit Counseling's, better known as the NFCC, their fourth annual consumer financial literacy survey.

On April 27th of this year, the Congresswoman and I are coordinating on the Annual Financial Literacy Day Fair with Senator Daniel Akaka from

Hawaii, with the Jumpstart Coalition for Personal Financial Literacy, with the Junior Achievement, and the Council for Economic Education. This fair, on April 27, will be held in the Senate Hart Building from noon to 3 p.m. I encourage you and all my colleagues to attend this special event. If you are unable to attend due to conflicts in your schedule, you might consider sending one of your staff in the Senate Hart Office building.

America Saves Week, the National Consumer Protection Week Fair, and the Financial Literacy Day Fair, as well as the resolutions Congresswoman Biggert and I introduce every year to support their goals and ideals, are substantive and an important statement of Congress' commitment to improving the financial literacy and economic education of all Americans.

The financial literacy fairs are very comprehensive and concrete. Agency staff are on hand at these events to provide our staff with the materials they need to hold events in our districts to help arm our constituents with the information and guidance they need to become more confident, savvy, and safe in the marketplace.

The NFCC's, which is the National Federation for Credit Counseling's, fourth annual consumer literacy survey indicates that a larger percentage of Americans, more than two in five adults, now keep close track of their spending. However, more than half still do not have a budget, and more than 11 million adults fail to monitor their overall spending.

Nearly 64 million adults admit to not paying all of their bills on time. Though 67 percent of adults say they pay for most purchases with cash or with a debit card, approximately 41 percent report that their household carries credit card debt, and more than 11 million say they carry $10,000 or more in credit card debt from month to month.

Approximately 100 million people currently have a home mortgage, and of those, one in three say that the terms of their mortgage somehow turned out to be different than they and their family expected.

Eighty percent of adults feel there are situations where it is acceptable to default on a mortgage, and two of the top three most justifiable circumstances place the blame on the lender.

Despite all this negative data, the proportion of adults who have non-retirement savings has increased from 63 percent in 2007 to 67 percent this year.

So, Mr. Speaker, as you can tell, we have far to go to improve the financial literacy rate of all Americans across the United States during all stages of life. One of the ways that our caucus has moved the financial literacy cause forward is coordinating with several Federal agencies on the National Consumer Protection Week I mentioned earlier.

On a positive note, several Members of Congress have introduced comprehensive and beneficial legislation that will help Americans become financially literate and provide them with the necessary consumer protections.

One such legislation is the Credit Card Reform Act. Authored by my good friend and colleague from New York, Congresswoman Carolyn Maloney, it was signed into law by President Barack Obama in 2009. Congresswoman Maloney could not be with us on the floor for this debate, but her presence is felt here and throughout the United States, and especially in the wallets of most Americans.

Her legislation takes financial literacy and economic education 10 steps forward. It requires issuers that extend credit to young consumers under the age of 21 to obtain an application that contains the following: The signature of a parent, guardian, or other individual 21 years or older who will take responsibility for the debt; or that person who signs is proof that the applicant has an independent means of repaying any credit extended.

It limits prescreened offers of credit to young consumers and prohibits increases in the credit limit on accounts where a parent, legal guardian, spouse or other individual is jointly liable unless the individual who is jointly liable approves the increase. This law increases the protections for students against aggressive card marketing and increases transparency of affinity arrangements between the credit card company and university. I commend her for her dedication to financial literacy and for managing to pass that legislation.

I coauthored the Student Aid and Fiscal Responsibility Act that passed both Houses and was signed into law recently by President Barack Obama. That law invests $750 million in the College Access Challenge Grant Program. These formula grants to States help organizations provide services such as financial literacy and debt management skills that increase the number of low-income students who are prepared to enter and succeed in college and manage their student loans.

This Congress is also considering legislation that will establish an office of financial literacy that I requested in the Financial Services Committee. Other financial literacy proposals are being reviewed, including establishing financial literacy centers across the United States.

Mr. Speaker, financial literacy and economic education are both a life skill and a key component of financial and economic stability and development. It is imperative that we pay more attention to the financial literacy rates of our citizens from prekindergarten all the way to retirement. The sooner a person begins to learn good saving habits, the better off he or she will be in the future.

I urge my colleagues to support this resolution and join the Financial and Economic Literacy Caucus.

The White House

Office of the Press Secretary

[For Immediate Release--April 2, 2010]

Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.

Mr. Speaker, on that I demand the yeas and nays.

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

Mr. Speaker, I rise today in support of this legislation, providing Members of Congress shall not receive a cost of living adjustment in pay during fiscal year 2011, sponsored by the gentleman from Arizona (Mr. Mitchell), actually mirroring language that the gentleman from Texas (Mr. Paul) has had before our body for some period of time. Both gentlemen have worked on this together, it is my understanding.

Across the country, we know that there are serious issues plaguing Americans, mainly a deteriorating economy and very high unemployment rates. In my home State, the underemployment rate is over 20 percent. In my district, Sacramento County has an unemployment rate of 12.9 percent, which is actually lower than some of the cities in my district. The city of Galt, for example, has an unemployment rate of 15 percent. So it goes without saying that things are not well in our economy and people are suffering.

As Americans around the country are struggling and sacrificing to make ends meet, it appears that we in Congress should not be immune. Other institutions are doing likewise. The Chief Justice of the Supreme Court recently announced in his Year-End Report for the Judiciary that he would not be requesting the usual salary increase for Federal judges given that ``so many of our fellow citizens have been touched by hardship.'' The President has also announced a pay freeze for top White House officials and other appointees in the Federal Government.

Mr. Speaker, recently in this House we passed H. Res. 1257, supporting the goals and ideals of National Financial Literacy Month, 2010. This legislation sought to raise public awareness about financial education through highlighting the importance of maintaining and managing personal finances, increasing personal savings, and reducing indebtedness in the United States. Some would ask whether we in Congress ought to undertake that same examination with respect to our spending in this House and our spending overall on the Federal budget.

At a time when we are passing resolutions telling Americans to be more cognizant of their financial situation, their debt, their savings, we do need to do the same in the House.

Millions of Americans are not getting a pay raise this year. Many, unfortunately, are not even getting paychecks. Under these circumstances, Congress must forgo a pay raise to save the hardworking taxpayers and hard-looking job seekers in this country a little of their money. Relative to the overall Federal budget, this single act doesn't have that great an impact. But any dollar, any Federal dollar, is something that we should treat with utmost responsibility because it comes to us in a sense involuntarily from our constituents. It comes through taxes or future taxes to pay for current debts.

So under these circumstances I think most of my colleagues, if not all of my colleagues, would agree that this is the time for us to forgo a pay raise. I would urge all of my colleagues to support this resolution, Mr. Speaker.

I reserve the balance of my time.

Mr. Speaker, at this time I would like to yield 5 minutes to the indomitable distinguished gentleman from Texas (Mr. Paul), who has worked on this issue for some time.

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

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

After listening to the gentleman from Texas (Mr. Paul), I am reminded of some freezes I would like to see. In addition to this freeze on our pay for a year, I would like to see us put a freeze on regulations on small business.

The previous speaker just mentioned that he believes we have somewhat of an arcane procedure for providing for pay raises to Members of Congress. That may be true. But there is certainly no more arcane activity that we engaged in than when we passed the health care bill in that having a new burden on business, particularly small business. And I speak of section 9006 of the health care bill, which has nothing to do with health, but has everything to do with regulation in that now, as opposed to the law which has existed for many years in which you had to file a 1099 on someone who provided a service for you, the purpose of which was to make sure that there was some paper trail to see if you were paying payroll taxes, we now have decided under this bill, the health care bill, section 9006, to require anybody involved in a trade or a service, that is any type of business who makes a purchase from some other corporate entity of any type that amounts to more than $600 cumulatively over a single year, that requires a 1099 to be filed with the person that you purchase the product from and the Federal Government.

What this means is that now if you purchase plane tickets and it amounts to more than $600 and you are engaged in a business, you will have to file a 1099 with United Airlines or American Airlines and the Federal Government. If you purchase food for your company and it amounts to more than $600, you will have to file a 1099. If you happen to be a rancher and you purchase bales of hay, you are going to have to keep a running tab all year long, and when you go over $600 you are going to have to file a 1099. If you in fact utilize FedEx or UPS, if during the course of the year it is more than $600, you will have to file a 1099 with FedEx or UPS and the Federal Government.

So this is a new burden that will require accounting procedures for anybody involved in business, particularly imposed on small business. But more than that, there is a double-edged sword to this. And that is this is a dagger at the heart of small business. Because if you have this obligation, it is easier to deal with one single big vendor than to have a number of them. Instead of going to your local hardware store if you are a small company and you need some hardware, you ought to go to one of the big guys because their universe of products is greater. And so if you have everything you purchased from them, knowing it is going to be over $600, you only have a single 1099 to file.

So what we have done in one fell swoop is make it more difficult to actually operate with this new regulatory scheme, and on the other hand, create disincentives for small business.

Now, when we contacted the Internal Revenue Service to see how they are going to interpret it, they said we haven't interpreted it yet because we are waiting for HHS to give us guidance. So now we have tax policy going to be determined by HHS.

All I'm saying is, if people think that we've had arcane procedures for means of pay raises for Members of Congress, it is nothing compared to what we've done in this health care bill with regulation on small business. I actually call that provision of the health care bill the ``universal snitch act'' because, when you file this 1099, it has nothing to do with your obligation to pay taxes. It has got to be premised on the idea that every vendor you deal with cheats and that the only way to catch cheaters is to have this new paper trail.

So I don't know. It just seems repugnant to me that we would do that, and I happen to have a bill that I introduced yesterday that would repeal that.

I just bring this up because the gentleman from Texas prompted this thought in my mind about freezes that would be appropriate. Then when the previous speaker mentioned arcane procedures, there was nothing more arcane than the health care bill we passed.

In fact, when we called the IRS, they weren't sure that this was in the bill. When we talked to the Congressional Research Service, they said, Oh, it couldn't be. Then when we pointed out that the new language in the bill is property and not just services--and that includes anything that you purchase--it has an unbelievable obligation on small business.

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

Mr. Speaker, I yield 2 minutes to the pride of the Coast Guard, the distinguished gentleman from North Carolina (Mr. Coble).

Mr. Speaker, I have no further requests for time.

I would just urge my colleagues to support this resolution. This is appropriate at this particular time. I think all Members of Congress recognize the difficult economic straits we are in. It is a simple resolution. It forgoes the pay raise for the year 2011, and I would urge my colleagues to support it.

I yield back the balance of my time.

I thank the gentleman from California.

Mr. Speaker, I rise in support of this legislation, and I want to compliment Mr. Mitchell from Arizona for getting this bill to the floor. We have worked on this for several years. I am pleased that this is going to be passed today.

Much has been said about the unemployment rate in this country. And I saw one other take on unemployment today, where it said that for low- income people below $20,000, the unemployment rate is actually 31 percent, which shows how devastating this recession is, and for some it is an actual depression.

I would like this bill to be passed, but not just as symbolism. It is good symbolism and important symbolism. As was mentioned by the gentleman from California, it is not a tremendous amount of money, but it is important for us to recognize that we have a serious problem in this country and that we shouldn't be careless about the way we think about this problem. It shouldn't make us feel necessarily good because we passed this. This is just necessary.

It does remind me of a piece of legislation I introduced many years ago, in the 1970s, when we had rampant inflation, which I anticipate will probably come back to this country. Back then we had a 15 percent inflation rate. My suggestion then in the form of legislation, to get the Members' attention to understand what inflation was all about, I said we should take a pay cut at the rate of inflation. Even today we might suggest that. There is a lot more inflation out there than we admit to. So maybe not only should we freeze our salaries, maybe we should be taking a pay cut so that we can do a better job, because we really can't brag about the job that we have done for the country because of the condition the country is in.

But I would like to extend this motivation to freeze the pay of Congressmen to freezing a few other things. I would like to see our budget at least frozen where it is. That would go a long way to solving some of our budgetary problems. And how about freezing the debt level. Let's not raise the debt level. Instead, this next year our national debt is going to go up about $2 trillion when you add up all that we borrow from our trust funds.

Also, I would like to see a freeze on regulations because regulations usually backfire. There are unintended consequences, they cost a lot of money, they act as a tax, and they don't improve the economy overall.

I would be in support of freezing the wealth transfer system, the system that most people think is going to help all the poor people. The trouble is the wealth transfer system helps the rich people, and they are the ones who get the bailouts and the poor people don't. So a freeze on wealth transfer would go a long way toward restoring a free society and a constitutional government.

Also, I think the consensus of the American people today is we ought to freeze the bailouts. Let's not bail out anybody anymore. But it looks like it will be a long time before that happens because we have a monetary system where we have somebody over there called the Federal Reserve that says we can print money at will, and our job is to be the lender of last resort. That means to bail anybody and everybody out that needs money. And it looks like that will be domestic as well as international.

I would like to freeze the ability of the Federal Reserve to print money out of thin air. That in moral terms is counterfeit, and yet that is the encouragement for us to run up our deficits because the Fed can come in and increase the money supply. A sound monetary system would have frozen anybody's ability to just create money out of thin air.

I would also like to freeze the income tax at the 1912 level. And that indeed would be a real boost to the people of this country. All of a sudden there would be great wealth in the hands of the consumer. Just think if all the money that we spent on the bailouts that just tided things over, if just a portion of that had been used to get rid of the income tax, I think the money would have been better spent because the people would have been spending the money instead of the bureaucrats and the politicians and the regulators that bailed out the people who were making all the money in the first place.

But I would also extend this freeze onto some other things, too. I would like to freeze some of our militarism. I think we have enough fighting going on. I don't think we should expand the war. I don't think we should be looking for another enemy. I would like to freeze the sanctions on countries. I would like to see a lot more free trade. I would like to see that the bombing is not extended, that we quit allowing our CIA to extend the bombing of countries that have not attacked us. I would also like to put a freeze on this concept of preventive war. This whole idea of the concept of preventive war means that we can literally start the war.

So, yes, it's good that we are freezing the salaries of us here in the Congress. But if we really want to restore the Republic, we will freeze a lot of these other issues as well.

I yield myself such time as I may consume.

Mr. Speaker, I rise today as a cosponsor of House Resolution 1257, which recognizes April as Financial Literacy Month, and I would strongly urge my colleagues to support it.

I would like to begin by thanking my good friend and fellow chair of the House Financial and Economic Literacy Caucus, Mr. Hinojosa, for sponsoring this legislation and for his continuing efforts to improve financial literacy rates in America.

Since 2005, when Mr. Hinojosa and I formed the caucus, financial literacy has grown from an interesting offshoot of economic education to a key element in numerous efforts on and off the Hill to protect consumers, improve financial security, help manage debt, assist in retirement planning, and prepare our children to prosper in today's sophisticated marketplace.

We've also seen financial literacy programs become successful centerpieces of campaigns to bring independence and family security to impoverished and underserved populations, women, minorities, and even victims of hurricanes or domestic violence.

For example, with help from the Allstate Foundation and the National Network to End Domestic Violence, thousands of abuse victims nationwide have benefited from the Economic Empowerment for Domestic Violence Survivors program. It empowers victims of domestic violence with a financial strategy to escape abusive households and help provide them with resources and training to achieve independence.

Mr. Speaker, Financial Literacy Month is a chance to recognize and support the work of countless organizations like these around America-- and the leadership of groups like the Jumpstart Coalition, Junior Achievement, and the Council for Economic Education--for all they do to educate American consumers and, most importantly, our children.

It's also an opportunity to recognize how much more work remains to be done. According to the FDIC, as was mentioned, approximately 60 million people in the United States are either unbanked or underbanked. Sixty percent of preteens do not even know the difference between cash, credit cards, and checks, and yet only 26 percent of new students are actively learning financial planning from their parents.

And according to the national Foundation for Credit Counseling's latest consumer survey, one-third of adults, or more than 75 million people, are not putting any part of their income towards retirement, up from 28 percent in 2008. These are troubling numbers. And in today's economic climate, the financial challenges and choices facing consumers have only grown.

That's why, as Congress reviews our national education guidelines and takes up far-reaching changes to our country's regulations, we must keep in mind one of the most important benefits of financial literacy as expressed in this resolution today before us: Financial education is the first line of defense against financial fraud.

When it comes to preparing against economic uncertainty, recognizing deceptive practices, building credit, or making dozens of other day-to- day financial decisions, nothing protects consumers and their financial security more effectively than arming them, even as young students, with a sound foundation in financial literacy.

Consumers benefit most from more financial options, not fewer, and with the right information and education, individual Americans are best equipped to avoid financial pitfalls, analyze risk, and make financial decisions that hold the greatest benefit for their future and that of their families.

With that, I would just like to once again thank my good friend and colleague, Mr. Hinojosa, for bringing this resolution to the floor, and I would like to also recognize the hard work of his dedicated staff, especially Greg Davis, for all their efforts.

And finally, Mr. Speaker, I would like to encourage all of my colleagues and their staffs to attend this year's financial literacy day fair on Capitol Hill. As Mr. Hinojosa mentioned, but I think it bears repeating, it's going to be held next Tuesday, April 27, where Members will be able to find a broad array of financial education materials and ideas for reaching out to constituents on this important issue. This year, it is being hosted on the Senate side, in Hart 902, by Senators Akaka and Enzi, and invitations should be arriving soon to each office.

Mr. Speaker, I urge my colleagues to support House Resolution 1257, and I reserve the balance of my time.

Mr. Speaker, at this time, I would like to yield as much time as she may consume to my friend and colleague in the Financial Services Committee, Ms. Jenkins of Kansas.

I would urge all of our colleagues to support this resolution, and I yield back the balance of my time.

Madam Speaker, I was not present for the following roll call votes. Had I been present, I would have voted as follows:

On rollcall No. 454, on H. Con. Res. 292, Supporting the goals and ideals of National

Aerospace Week, and for other purposes, I would have voted ``aye.''

On rollcall No. 450, on H. Res. 1219, Expressing support for designation of September as National Child Awareness Month, I would have voted ``aye.''

On rollcall No. 449, on H. Con. Res. 126, Recognizing the 50th anniversary of Title VI international education programs within the Department of Education, I would have voted ``aye.''

On rollcall No. 448, on H. Res. 1472, Expressing support for designation of the week of September 13, 2010, as National Adult Education and Family Literacy Week, I would have voted ``aye.''

On rollcall No. 372, on H.R. 5297, I would have voted ``aye.''

On rollcall No. 293, on H.R. 5330, To Amend the Antitrust Criminal Penalty Enhancement and Reform Act of 2004 to Extend the Operation of Such Act for a 5-Year Period Ending June 22, 2015, and for Other Purposes, I would have voted ``aye.''

On rollcall No. 292, H.R. 1017, Chiropractic Care Available to All Veterans Act, I would have voted ``aye.''

On rollcall No. 291, H. Con. Res. 278, Expressing the Sense of Congress That a Grateful Nation Supports and Salutes Sons and Daughters in Touch on Its 20th Anniversary That is Being Held on Father's Day, 2010, at the Vietnam Veterans Memorial in Washington, the District of Columbia, I would have voted ``aye.''

On rollcall No. 213, H. Res. 1271, Honoring the Life and Achievements of Rev. Benjamin Lawson Hooks, I would have voted ``aye.''

On rollcall No. 212, H. Res. 1257, Supporting the Goals and Ideals of National Financial Literacy Month, 2010, and for Other Purposes, I would have voted ``aye.''

On rollcall No. 172, H. Res. 1205, Providing for Consideration of the Bill (H.R. 4849) to Amend the Internal Revenue Code of 1986 to Provide Tax Incentives for Small Business Job Creation, Extend the Build America Bonds Program, Provide Other Infrastructure Job Creation Tax Incentives, and for Other Purposes (On Ordering the Previous Question), I would have voted ``aye.''

On rollcall No. 153, On Approving the Journal, I would have voted ``aye.''

On rollcall No. 84, H. Res. 699, Expressing the Appreciation of Congress for the Service and Sacrifice of the Members of the 139th Airlift Wing, Air National Guard, I would have voted ``aye.''

On rollcall No. 50, H.R. 4238, To Designate the Facility of the United States Postal Service Located at 930 39th Avenue in Greeley, Colorado, As the ``W.D. Farr Post Office Building'', I would have voted ``aye.''

On rollcall No. 49, H.R. 4425, To Designate the Facility of the United States Postal Service Located at 2-116th Street in North Troy, New York, As the ``Martin G. `Marty' Mahar Post Office'', I would have voted ``aye.''

On rollcall No. 19, H. Res. 1003, Expressing Support for the Designation of January 10, 2010, Through January 16, 2010, As National Influenza Vaccination Week, I would have voted ``aye.''

On rollcall No. 18, H. Res. 1011, Recognizing the Importance of Cervical Health and of Detecting Cervical Cancer During Its Earliest Stages and Supporting the Goals and Ideals of Cervical Health Awareness Month, I would have voted ``aye.''

On rollcall No. 17, H. Res. 990, Expressing Support for Designation of January 2010 As ``National Mentoring Month'', I would have voted ``aye.''

On rollcall No. 5, H.R. 3892, To Designate the Facility of the United States Postal Service Located at 101 West Highway 64 Bypass in Roper, North Carolina, As the ``E.V. Wilkins Post Office'', I would have voted ``aye.''

On rollcall No. 858, H. Res. 868, Honoring and Recognizing the Service and Achievements of Current and Former Female Members of the Armed Forces, I would have voted ``aye.''

On rollcall No. 381, H.R. 2847, I would have voted ``aye.''

On rollcall No. 109, H.J. Res. 38, Making Further Continuing Appropriations for Fiscal Year 2009, and for Other Purposes, I would have voted ``aye.''

On rollcall No. 108, H.J. Res. 38, Making Further Continuing Appropriations for Fiscal Year 2009, and for Other Purposes, I would have voted ``no.''

On rollcall No. 107, On Approving the Journal, I would have voted ``aye.''