Mr. President, I ask unanimous consent the pending amendment be laid aside. Mr. President, I appreciate that. I am so sorry. I was sure Senator Nickles had seen this amendment. I don't think there is anything surprising. It is essentially…
Mr. President, I ask unanimous consent the pending amendment be laid aside.
Mr. President, I appreciate that. I am so sorry. I was sure Senator Nickles had seen this amendment. I don't think there is anything surprising. It is essentially a jobs amendment, initiatives that have been introduced by other Senators. We packaged it in one package.
I ask Senator Conrad if he wants me to take time by discussing Senator Corzine's amendment and making other remarks or take time off the managers' time? Either way he wants it.
I was hopeful, when I spoke last night, that I could have 20 to 30 minutes for the entire amendment. That would be fine for me.
No, no, 30 minutes on my side, or 20 minutes on my side.
No, 20 minutes a side.
I thank my colleague very much. I have been looking forward to offering this amendment. I hope at the appropriate moment in time I will be able to send it to the desk.
Mr. President, if you were to go out all over this country and ask most of our constituents from every State in the Union what is on their minds, they are going to say it is the economy; it is jobs; it is their security. In this particular budget we should do much more to ensure that jobs are created and that our families are protected. So what we do in this amendment, which we pay for, is a number of initiatives which will help us create and retain jobs in this great country.
First of all, I want to give my colleagues a sense of why this is so important. The amendment I am offering is cosponsored by Senators Daschle, Sarbanes, Clinton, Schumer, Kennedy, Kohl, Durbin, Levin and Dodd. I see Senator Kohl is here. I am hopeful he will want to make a few comments as well.
Let me paint a picture of where we are. I think the best way to do it is just show a series of charts, that are very clear:
Private sector jobs decline: Three million jobs lost since
January 2001.
We see the incredible graph that just shows, essentially, almost a straight line down. We did see in February we had a little increase of 21,000 jobs, as I understand it, in the public sector. There is very little in the private sector.
I will if I can reserve the remainder of my time.
Mr. President, I ask unanimous consent to set aside the Corzine amendment and send my amendment to the desk.
Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.
Mr. President, let me continue with the story that is not a very happy story about job loss. We have seen 3 million jobs lost in the last 3\1/2\ years. We see unemployment for 27 weeks or longer. We see that 1.9 million workers are unemployed for more than 6 months. We have statistics that say although the unemployment rate looks to be 5.6 percent, in reality it is over 9 percent if you factor in the people who have given up their search for jobs. We see the smallest share of the population at work since 1994, with 62.2 percent of the population unemployed. These are startling statistics.
Manufacturing jobs in America: From 1993 to 2000, 385,000 manufacturing jobs created; and from 2001 to 2003, 2.785 thousand jobs lost. That is 75,270 jobs lost per month. For my people in California, we have seen an enormous drop in manufacturing jobs.
I want to show my colleagues the context of this job loss if we look back to other administrations. This is the average number of jobs created or lost per month. Under Ronald Reagan, we had 165,000 jobs per month; under George H. Bush, we had 47,604 jobs created every month; under Bill Clinton, we had 236,625 jobs created per month; and under George W. Bush, 58,815 jobs per month on average lost.
By any standard, this is a unique time. We have a chance to do something about it with this budget resolution.
California jobs: From 1993 to 2000, under the Clinton administration, 25,644 jobs were created per month in my State of 35 million people. Under George W. Bush, 284,900 jobs lost. That is 7,913 jobs lost per month. Nearly 8,000 jobs are lost per month in my State. That is about 8,000 family members coming home to tell their families they are in big trouble. We ought to do something about it. The good news is we can do something about it with this amendment I offered.
I want to show one more chart.
President Bush promised a whole different story--promises, promises, wishful thinking on jobs. The Bush administration has consistently over-predicted job growth for 2002, 2003, and 2004.
Today, I read in the paper that the President is going to appoint a manufacturing jobs czar. He came to a decision about the individual he wants to appoint. We have learned that this particular individual built a plant in China. Whether he will continue with that nomination, I do not know, but clearly that sends a very mixed signal, to be polite about it.
Let me talk for a moment about the amendment I am offering to protect America's jobs.
How much time do I have remaining?
Thank you.
Our amendment creates a $24 billion job reserve fund for the following purposes:
The Manufacturing Extension Partnership Program, $110 million cost; Advanced Technology Program, $125 million cost; Federal science at $1 billion cost; new manufacturing jobs tax credit at $7 billion cost; small business health insurance tax credit at $14 billion cost; stop jobs from moving overseas and end the runaway plant tax break, which saves $2 billion; the Dodd amendment with no Federal funds for outsourcing, no cost; worker notification, which is Senator Daschle's amendment in relation to jobs moving overseas, no cost; and worker assistance and trade adjustment expansion for service workers and expanded health insurance, $2 billion.
The way we pay for this amendment is the following: We end the runaway plant tax break, which brings in $2 billion, and we reduce tax breaks for millionaires, which brings in another $1 billion.
I want to spend just a moment explaining why I think that is fair. If you earn over $1 million, under the Bush tax cut you are going to get a refund of about $140,000 every single year.
Let me rephrase that. You are going to get a tax cut of $127,000 every single year. We reduce that refund to $85,000 for a very noble purpose. That purpose is to get America back to work and to help our middle-class families.
I think if you ask the average person in your State, just from what I can tell by looking at polls and talking to people, they will say even if they were in that millionaire category, we will have a stronger economy and more people working by not giving millionaires $127,000 a year from their taxes.
We reduce it to $85,000. Let us talk about that. They will now get back $85,000. How much is that? That is 7.5 times the annual income of a minimum-wage worker, just in the millionaire tax cut. We are, in fact, cutting it to $85,000, but that is 7.5 times the annual income of a minimum-wage worker. It is also two times the median household income. If you are a millionaire and get back $85,000 a year instead of $127,000, you are still getting back every year twice the median household income and 7.5 times the annual income of a minimum-wage worker.
I want to briefly tell you about each of these job creation plans.
Be providing a tax credit for creating new manufacturing jobs--this is a tax credit that goes to businesses that create jobs in manufacturing, originally sponsored by Senator John Kerry--the manufacturing jobs tax credit gives the tax cut to companies that create a new factory job in 2004, 2005 and 2006. This is a good thing for business. It is a great thing for workers. It is a good way to deal with this issue.
We increase the funding for the Manufacturing Extension Partnership. It sets aside $110 million of the reserve fund for the Manufacturing Extension Partnership Program. In 2003, this program helped create or retain 35,000 jobs.
The administration only asks for $13 million in 2004, and it is requesting only $39 million for 2005. They say they care about jobs, but they ought to do more, and $110 million will create a lot more jobs.
For the Advanced Technology Program, this amendment sets aside $140 million in the reserve fund. The administration proposes zeroing out this ATP program. The ATP helps companies get to market and grow, and that means jobs. Of the first 33 small companies to complete ATP programs, 60 percent doubled in size, and 4 grew more than 1,000 percent. The ATP program bridges the gap between the research lab and the marketplace. We need to see that go up to this $140 million level. I might say, even with that, it is still less than we have spent in the past on the program. George Bush, in 2005, requests zero for this important program.
Then we have Federal research and development, which is so key, at the National Science Foundation. It falls $1 billion short of what is called for in the bill we passed 5 years ago. It is very important. When President Bush says he increases Federal research by 5 percent, the problem for our Nation's researchers and research institutions is that increase is largely targeted for weapons development. However, we have other things we need to do which will create jobs, as well. That is the purpose of this amendment.
The health insurance tax credit for small business is clear. If business pays health insurance for its people, we think they ought to get a tax break. That is the kind of tax break we believe in on this side of the aisle because it is to encourage businesses to help employees with their health care.
We end tax subsidies to U.S. companies that send plants overseas. This is a Dorgan-Mikulski idea. This amendment includes language bringing to an end tax subsidies for employers that ship production of goods abroad. This part brings $2 billion.
We prohibit Federal funds from being used for offshore jobs. This is Senator Dodd's amendment that passed the Senate 70 to 26. When we give State and local governments Federal funds and when we decide to issue contracts, the jobs ought to stay here.
In my own State, the Defense Department wanted to buy rice for Iraq. Instead of buying it from California, which has the best rice in the world, they bought it from a foreign country. That is my farmers, taxpayer dollars, and all my people's dollars going into the war effort. We give a contract on rice to a foreign country when the sons and daughters of our farmers and our people are going to war. I don't get it.
This is an important amendment. We are improving the Trade Adjustment Assistance Program and extending it to service workers. That means help for people who are pushed out of a job because of trade agreements.
I will save some time for colleagues. How much time remains?
I yield 4 minutes to Senator Kohl.
I thank the Senator for asking this question. I have never known that we have offered such a comprehensive jobs amendment on a budget resolution. These are not ordinary times.
My friend is right when he asked this question. If we go back over time to Herbert Hoover in the Depression years in the 1930s, that is the only time we have actually lost jobs. We have created jobs under Roosevelt, Truman, Eisenhower, Kennedy, Johnson, Nixon, Ford, Carter, Reagan, George H.W. Bush, Clinton, and now we are down to this and we have seen 3 million jobs lost. We need a jobs amendment.
Clearly, we give tax breaks in this amendment to small businesses that pay or help pay for their employees' health benefits.
When we talk to people, they are scared about the cost of health insurance. They are frightened. They are frightened that the costs are going up, that they may lose it, not to mention their entanglements with HMOs that want to walk away.
We say to employers, employees, we will help if, in fact, you pay for your employees' health care, or at least part of it.
We also give a manufacturing jobs tax credit. And this is Senator Kerry's idea.
Madam President, do I have a remaining minute on my time?
I thank my friend.
So I say to my friend from Arkansas--because I would like to continue this give-and-take--what we are seeing is a devastating change in what has been known as economic progress in America--a devastating change--something we have not seen since Herbert Hoover. This is serious business.
For our small businesses that are creating whatever jobs are being created--although we still are not seeing a net increase in those jobs--we need them to get help. So in this amendment not only do we suggest a reserve fund to help our workers, but we suggest tax credits and tax breaks to our businesses that create manufacturing jobs. For every job they create, they get a tax credit, and also for those businesses that pay for health care for workers.
So I think the question was right on the mark.
I would be glad if my friend has any other questions.
I am happy to yield.
Absolutely.
This health care tax credit is very important as well.
In my State, my small businesses that do the right thing by their employees are being hurt. We ought to recognize if you do the right thing, you ought to get rewarded for it. So that is why we do this.
I say to my friend, he is right; this jobs amendment helps workers and helps businesses. It is a balanced approach.
Here is how we encourage the creation of American jobs: We provide tax credits to companies that create new jobs. We provide tax credits to help small businesses pay for health insurance. We expand funding to the Manufacturing Extension Partnership and the Advanced Technology Program, which really helps small businesses in an enormous way. What we do with these programs is we help them go from the research part of things to the marketing part of things. It has been a huge success.
Unfortunately, the President has zeroed out the ATP. I cannot understand it. This is something our businesspeople really want.
Also, as to basic scientific research, we see it in the budget, but it is mostly for defense weapons programs. We do not have it on the civilian side.
Again, coming from a State--I am sure your State has them, as well-- with very entrepreneurial people, who really can take off from scientific research, it is very important.
I say to my friend, we pay for this. We pay for this by ending--this is Senator Dorgan's idea--we end the tax break for companies that move offshore. Oh, yes, they are creating jobs, but they are creating jobs offshore. And we pay for it by saying to the millionaires--people who make over $1 million a year--we are saying to those folks: Instead of getting $127,000 a year back, can you take $85,000 a year back? That is still 7.5 times more than a worker at the minimum wage.
So this is a golden moment for this Senate to come together across party lines on behalf of our small businesses, on behalf of our workers, and create jobs.
I have already shown my colleague the historic proportions of this moment in history in which we find ourselves: the worst record since Herbert Hoover, the only Presidency since Herbert Hoover not to create jobs. This is an extraordinary moment. We need to take a moment to realize if a millionaire gets back $85,000 instead of $127,000, that is not a great sacrifice to make for putting people to work, for giving a lift to small business.
Madam President, I thank my friend because he is exactly right. This outsourcing is a very tough issue. I say to my friend, before he goes to his committee hearing, I met a young man in California who had an excellent job as a computer program manager. He is a newlywed and very excited about his life. He finds out he is being fired, not because he is not a good employee--he is a great employee, terrific--but because his job is being outsourced to another country. And the person over there is going to get a quarter of what he makes. Now, here is the real kicker. He is told he has to train his replacement.
I have to say, this is what is happening all over America. If we cannot take a stand in this budget which reflects all of our priorities as a nation, if we cannot take a stand for America's workers and America's small businesses, I do not know why we are here. What are we here for?
I ask my friend again to look at this chart which shows that the smallest share of the population is at work since 1994. This is not a good chart when you translate it into real lives of real people--and we know the stories in our States: a mother wakes up worried because her company says it no longer will pay health care--that is why we give a health care tax credit in this amendment--a gentleman, as I described, is told by his boss: You are losing your job. It is being outsourced, and you have to train your replacement. This is what is happening in America.
I know some colleagues are here who would like to be heard on this amendment, which I am very pleased about.
Madam President, I ask unanimous consent to have printed in the Record this Washington Post article from today: ``Bush Choice for Manufacturing Post in Question.''
Madam President, I will only read the first paragraph, and then I would like to yield 5 minutes to my friend from New Jersey, Senator Corzine.
Here is what it says:
Six months after promising to create an office to help the
nation's struggling manufacturers, President Bush settled on
someone to head it, but the nomination was being reconsidered
last night after Democrats revealed that this candidate had
opened a factory in China.
Now, I ask you, what signal are we sending to the workers of America, to the businesses of America, when the President's No. 1 choice for manufacturing czar has opened a business in China?
So if you put together this fact with this fact, with the chart I showed you that illustrates the worst problem in job creation since Herbert Hoover, we have an explosive situation on our hands. The vote on this amendment should not be about parties; it should be about our people, whether they are in Alaska, Wyoming, New Jersey, Michigan, or California.
I yield 5 minutes to the Senator from New Jersey and ask, after yielding that time, how much time would be remaining on my side?
I yield Senator Corzine 3 minutes and Senator Stabenow 4 minutes.
Excellent. So how much time will the Senator yield off the resolution?
I thank the Senator.
Will the Senator yield for a question before his time expires?
When my friend goes home to New Jersey and talks to people, does he find what I find; that people are anxious, they are insecure, they are concerned about retaining their job, retaining a good job, retaining health benefits? What I find is, even if people have good jobs, they are fearful of the cost of health insurance.
As the Senator knows, in our Democratic jobs alternative, we give a tax credit to businesses that pay for all or part of health insurance. I wondered if my friend has that same sense when he goes to talk to his people at home?
I ask my friend if he will yield an additional minute to the Senator.
If the Senator will yield, he is so right. Consumer confidence is almost everything in our economy, which is a consumer- based economy.
I took economics, so I have an economics background from my college years. But my friend practiced economics and did very well at it. What he says is so important. If your next-door neighbor is suffering because of a loss of jobs or downward pressure on job income, it has a contagious impact. A lot of this lack of consumer confidence is what we are seeing today.
I wish to ask my friend another question that has to do with the fact we paid for this amendment. We paid for this in two ways. First, we eliminate the tax loophole for companies that send their jobs overseas. That brings in $2 billion to pay for this reserve fund for jobs. We also say to millionaires, we know you are going to get back $127,000-- and people who earn more than that will get exponentially more--so instead of getting back $127,000, you get $85,000. That difference is more than a minimum-wage worker's salary for an entire year.
As my friend looks as his people in New Jersey and knows the median income level there, do you think this is a fair thing we do here, ask everybody to sacrifice?
To reiterate, we are saying to the millionaires of this country, we are proud of you, that you got the American dream; and you worked for it--most of them did, not all of them. Can't you make that sacrifice so we can put people to work and turn around these numbers?
Look at this chart. We talked about this before, going back to Ronald Reagan. We haven't seen this kind of deal since Herbert Hoover. Looking at New Jersey and the people making over $1 million who would be impacted, does my friend not believe we pay for this in a fair way?
I have one more question and that is it. First, I ask unanimous consent that Senators Mikulski and Dorgan be added as cosponsors of the amendment.
I ask for that as well.
When we look at the promises made and the reality, I would like my friend----
I will wait on that. I thank my friend from New Jersey.
Will my friend yield for a moment?
She was right on target about this manufacturing czar, this potential nominee, who may be a very lovely gentleman; nonetheless, what a poor choice. We should be rewarding people and companies that create jobs for the American people.
You know, I wish the world well. I want Iraq to have democracy and the Haitians to have democracy. I want the people of Afghanistan to thrive. Lord knows, we spend enough money there to help them. What about people at home? Isn't that our first responsibility?
I am telling you, when I have to hear stories from constituents who say, Not only was I laid off and my job is going to be outsourced to a foreign country but I have to train my replacement--I say somebody may call that outsourcing; I call it painful. I call it wrong.
My friend from Nevada wants me to get to the question and I will.
When this gentleman moves his jobs to China, does he not get a tax advantage? And are we not closing that loophole--it is the Dorgan idea--and does my friend support that, as well as the other items on this list?
Will my friend yield for a quick question before my colleague continues? I find this give-and-take very helpful.
I read an economic report that said although the jobless rate is officially at 5.6 percent, if one factors in the people who have given up, it is well over 9 percent. I wonder if my friend could comment on that, because he talked about how important it is to just keep up with the people who are coming in. What about the people who have given up?
Madam President, will my friend yield for a question?
I thank Senator Sarbanes and Senator Conrad for their enormous contribution in support of this amendment, which is really an amendment that is made up by the contribution of various members of the Democratic caucus, including Senator Dodd, who has just come to the floor. An important amendment ensuring Federal contracts should not be outsourced passed this Chamber with flying colors. It is important. As a matter of fact, I met with my local elected officials and I asked, Do you have any idea whether any of your department jobs are outsourced? They looked at me, and said, I don't know. I will go back and make sure tax dollars aren't being used to create jobs overseas.
I thank my friend for his contribution to this amendment. I want to ask my friend a question. It has to do with this whole notion of the anxiety in this country. I think anyone watching this debate understands there are many reasons for people to feel anxious. They feel anxious when there are deficits as far as the eye can see. It is stunning to think back to 3\1/2\ years ago. There were surpluses as far as the eye could see. What mismanagement.
I say to my friend the shocking part is--and when I was an economics major a long time ago we thought when there were big deficits it would create a lot of jobs. Here we have a circumstance where you have runaway deficits, runaway debt, and no job creation whatsoever. In fact, there is a net job loss.
I want to say to my friend from North Dakota, when he talks about the budget deficit, the trade deficit, the twin deficits, there is also the job deficit. Now you have the tripling. I think my friend made a good point when he talked about people being laid off and then having to train their replacement workers. I met such a gentleman who was a newlywed. He had a job as a computer program manager and he had to train his replacement. I cannot tell you the look on this man's face. He is leaving my State. He thought for sure this could never happen in the Golden State. As we know, it is happening in California and all over this country.
This is a stunning moment in history. That is why this amendment is so important.
The budget document is in fact the priority of the country. If we turn our back on the people of this country who need to work for a living, we shouldn't be here, to be honest, because that has to be an essential part of what we do to protect the country, from the standpoint of defense, protect workers and make sure they have jobs.
I want to ask my colleague this point about the anxiety in the land. I think what is feeding it is when your next-door neighbor loses a job, or someone in your family loses a job, you begin to feel anxious. When your next-door neighbor loses his health insurance or pension, you begin to get anxious yourself. Then when you pick up the papers--I put a lot of this together last night, and you can read this. ``Analysts Gloomy Over Job Creation''; ``Growth In Jobs Is Still Sluggish''; ``Job Growth Falls Short of Forecast''; ``Jobs Slump''; ``Fewer Small Businesses Plan To Hire''.
I am saying to my friend I think all of this is creating an anxiety in the land.
I will ask this question: Given everything we said--it is not rhetoric; it is reality; we have shown the numbers. They are real. We have talked about real families. We have seen what is happening. I ask my friend, is not this the time, if there was ever a time, we should say to the American people whom we care about and their families, their ability to have a quality of life, their ability to educate their children and send them to college, and their ability to look at the future with hope and optimism--wouldn't it be the moment we should be united as Republicans and Democrats and Independents here today in passing the amendment we put forward which not only will stimulate jobs directly but will stimulate small businesses by giving them the tax credits they deserve, so they can pay for health care insurance or create jobs? I ask my friend, is this not the moment in time to make this a priority for this Senate across party lines?
Mr. President, in 1 minute let me give it to you straight: We have seen a loss of 3 million jobs in the last 3 years. This is not sustainable. Our people are hurting. What this amendment does is gives us a chance to do something about it. We give tax credits to businesses, if they pay for health insurance, if they create manufacturing jobs. What we do is boost up some of the wonderful programs that are working in advanced technology, manufacturing extension. We increase investments in basic science. We close the loophole so if companies move abroad, they can't get special tax breaks, and we don't allow Federal funds to be used to offshore jobs.
We pay for it by saying to the millionaires of this country: Instead of getting back $120,000, you will get back $80,000. That is multiple times what a minimum-wage worker will get. Millionaires will still get back $80,000 a year under the Bush tax cut. We are asking them to make that sacrifice because we need the jobs.
I urge an aye vote.