George Allen

Mr. ALLEN

Mr. ALLEN. Mr. President, I commend the chairman and ranking member of the Finance Committee, Senators Grassley and Baucus, for their work on the Tax Administration Good Government Act. The legislation provides taxpayer safeguards, streamlines tax administration, and simplifies the tax code. I do have some concern with one provision in the bill. Specifically, the bill also includes a provision on the IRS Free File Program. The Free File Program is the result of a public-private partnership agreement between the IRS and the Free File Alliance, LLC, a group of tax software companies managed by the Council for the Electronic Revenue Communication Advancement, CERCA. It is important to continue to promote these types of public-private partnerships and it is my hope that we can work together on this provision as we move to conference with the House of Representatives.

Mr. ALLEN. I thank the chairman and ranking member. continuing care facilities

Mr. ALLEN

Mr. ALLEN. Mr. President, I rise today to join with Senators Smith, Ensign, and Boxer in opposition to the Breaux-Feinstein amendment. In the midst of this JOBS bill, we are trying to make sure manufacturers in this country can compete internationally. I am one who is always arguing, whether it is tax policy, regulatory policy, our laws in the United States ought to make America more desirable and conducive toward investment and job creation. The underlying provision--the idea of repatriation or reinvesting in the United States helps make the United States more conducive and more attractive for investment and jobs. Let's use some common sense. If you are a company that does business overseas, and you have profits overseas, whatever country you are in you are going to have to pay taxes. If you bring that money back into this country, you are going to be paying 35 percent in taxes. You are going to pay one way or another, whether to that country or to the United States. However, if you take those profits and keep investing them in China, in South Korea, in Malaysia, or in the Philippines, or wherever else it may be, you are going to continue investing them over there if you are going to be subjected to this 35-percent tax. The idea is, for 1 year, reduce that tax burden to 5.25 percent, bring those profits back into this country, invest them in the United States in a variety of ways that actually helps your business; thus, it creates more jobs. This is a law that I certainly think ought to be passed, not diminished or micromanaged or pestered with this amendment. Studies, for example, by the Joint Committee on Taxation have determined that the provision we are supporting in the bill would inject approximately $135 billion into our economy for jobs, capital, investment, and economic growth. The Joint Committee on Taxation also said it would bring in an additional $4 billion in tax revenues to the U.S. Treasury. Of course, the profits are coming back; therefore, they are going to be taxed. Whereas, if you do not change this law, that money will stay overseas. J.P. Morgan economists talked about job creation--660,000 new jobs created, $75 billion in debt reduction, and an increase in capital spending of up to $78 billion, by bringing approximately $300 billion in foreign earnings back into this country. The Breaux amendment has several problems. One, it is a poison pill-- as was said by other speakers--limiting benefits in such a way that it makes it impracticable. Two, it requires that money be spent for narrow purposes only; third, it requires companies to spend it in 3 years; fourth, it excludes amounts brought back from Puerto Rico and other possessions. That last one would treat Puerto Rico and our possessions worse than investments made in the rest of the world. Senator Boxer brought up examples of what would not be permitted with the Breaux amendment. In addition to the job training, they could not spend it on job training to upgrade the skills and capabilities and productivity of their workers in the United States. They could not fund startup businesses. Why would we not want them to fund startup businesses? Why would we want to prohibit the injection of new capital into cash-starved projects? Mr. President, the point is that the amendment would limit the job creation incentive and, unfortunately, not have the full potential to make this country more desirable for jobs and investment. I respectfully urge my colleagues to defeat the Breaux amendment, support Senator Smith in his efforts, and those of Senator Ensign and others, who have fought gallantly and wisely for more jobs and investment in the United States of America. I yield the floor.

Mr. ALLEN

Mr. ALLEN. Mr. President, today I would like to commemorate the life of Dr. Nora Kizer Bell, who passed away on January 24, 2004, after a heroic fight against cancer. Throughout her distinguished life, Dr. Bell was a great champion of the liberal arts and women's education. Among Dr. Bell's career highlights was her term as President of Wesleyan College. As the first female president of the college, she implemented numerous projects, including a major renovation and construction plan, and a new campus technology plan. She also helped increase enrollment, improve academic quality, and increase the endowment at Wesleyan. In July 2002, Dr. Bell took office as president of Hollins University in Roanoke. During her tenure, she worked hard to make the school a Tier One university and twice saw Hollins take the top rank in ``Quality of Life,'' according to the Princeton Review. Dr. Bell, a magna cum laude graduate of Randolph-Macon Women's College, was an articulate advocate of single-gender education. Over the years, she wrote on the issue in several prestigious publications, including: USA Today, the Washington Post and the Christian Science Monitor. For her work, she was the recipient of numerous awards, including the Order of the Palmetto, the highest civilian award presented by the Governor of South Carolina. Dr. Bell was the loving spouse of Dr. David A. Bell, President of Macon State College, and the devoted mother of three children. She leaves behind a wonderful legacy as a mother, a friend and a leader in women's education.

Mr. ALLEN

Mr. ALLEN. Mr. President, today I want to congratulate the wonderful nurses at Carilion Medical Center in Roanoke for recently achieving Magnet Recognition from the American Nurses Credentialing Center, ANCC, a division of the American Nurses Association. The mission of the ANCC is to promote excellence in nursing and health care globally through credentialing programs and related services. Their designation of Magnet Recognition is the highest honor that can be bestowed upon hospital nurses. Currently, Carilion Medical Center is one of just 102 health care organizations in the U.S. to have received this recognition from the ANCC. Last November, I had the opportunity to tour the Carilion Medical Center. During my visit, I got to see firsthand the outstanding dedication and commitment that the nurses provide their patients. I am pleased today to recognize the exceptional nurses at Carilion Health Center on their tremendous achievement and wish them continued success.

Mr. ALLEN

Mr. ALLEN. Mr. President, I am pleased today to recognize the 2003-2004 University of Virginia Men's and Women's Swimming and Diving teams for their hard work in winning the 2004 ACC Championship. These athletes, under the strong coaching of Mark Bernadino, devoted a tremendous amount of time and energy to studying, training and competing. It was through their endless drive and dedication that they were able to become ACC Champions this season. As a former student-athlete at UVA, I understand the impact that athletics play in the development of an individual's character and life. Sports teach us important lessons of self-discipline, perseverance, teamwork and sportsmanship. The benefits of participating in athletics can prove valuable in the daily lives of student-athletes whether at school or at work in their communities. Each of these student-athletes is a leader and a winner, not just in the water but also in the classroom. I congratulate Coach Bernadino and the University of Virginia Swim and Dive teams on their 2004 ACC Championship and wish them continued success in the future. Keep winning.

Mr. ALLEN

Mr. ALLEN. Mr. President, I am pleased today to recognize Mr. Samuel Hopkins Shrum, a native of Dayton, VA, who was honored this year for 55 years of perfect attendance by the Rotary Club of Harrisonburg, VA. Mr. Shrum's commitment to the Harrisonburg Rotary is just one example in a lifetime of dedication and hard work. An architectural engineering graduate of the Virginia Polytechnic Institute, Mr. Shrum later attended Westminster Choir College in Princeton, NJ for post-graduate studies. He began his professional career with George E. Shrum & Son, eventually becoming a production engineer at Newport News Shipbuilding and Dry Dock Company. Hard work and dedication led him to become President of Nielson Construction Company in 1962 where he served until his retirement in 1976. The company grew from a small operation of seven employees to nearly 300 while Mr. Shrum served as executive vice-president, general manager, treasurer and director, before being named its president. Today, I congratulate Mr. Shrum for his dedication and commitment to service in the Harrisonburg community and wish him continued success.

Mr. ALLEN

Mr. ALLEN. Mr. President, I am pleased today to recognize Mr. H. Odell ``Fuzzy'' Minnix for his community service and leadership. Mr. Minnix recently retired after serving three terms on the Roanoke County Board of Supervisors, including several years as the board's chairman. During his 12 years on the Board of Supervisors, Roanoke County saw significant improvement in its quality of life; in recent years, the county was recognized as one of the best school systems in the Nation and the community's continued commitment to expansion and growth resulted in the creation of more jobs and opportunity in the region. Throughout his life, Fuzzy Minnix has been a community leader and volunteer. He was the recipient of the Roanoke Valley Big Brother of the Year Award and has been an avid supporter of youth sports, having been Head Football Coach at Hidden Valley Junior High School. Mr. Minnix also served as Head Softball Coach, Assistant Varsity Football Coach and Assistant Varsity Track Coach at Cave Spring High School. Over the years, he has remained active as a Virginia High School League Football and Basketball official. A Roanoke native, Mr. Minnix began his distinguished career serving 4 years in the U.S. Air Force. After his military service, he entered a career in the air traffic control industry. A graduate of the FAA Air Traffic Control Academy in Oklahoma City, Mr. Minnix has worked as an Air Traffic Controller at airports in Norfolk, Dulles, Roanoke and Lynchburg. Among his professional recognitions, Fuzzy Minnix was the winner of the Roanoke Federal Employee of the Year award and the FAA Education Facilitator of the Year award for the Eastern Region. Mr. Minnix and his wife, Janet, have two sons. They are active members of the Ghent Grace Brethren Church, where Fuzzy has served as a Moderator and Sunday School Superintendent. The Roanoke region will surely miss the leadership and talents that Mr. Minnix displayed on the county's Board of Supervisors. I congratulate him on his community service and wish him well in his retirement.

Mr. ALLEN

Mr. ALLEN. Mr. President, today I would like to commemorate the life of a respected leader and a great friend to the Commonwealth of Virginia, Mr. D. Coiner Rosen of New Market, who passed away on March 13, 2004. Mr. Rosen's contributions have left an indelible mark on the Commonwealth of Virginia. The Soldiers Confederate Cemetery, Shenandoah County Historical Society and the Mount Jackson Museum are just a few of the projects that benefited from his generosity, vision and leadership. Throughout his life, Coiner Rosen demonstrated great dedication to the preservation of the natural beauty and historical significance of the Shenandoah Valley. Because of his tireless efforts and unwavering dedication, generations of Virginians and Americans will be able to visit and gain a greater understanding of our heritage. Today we remember the remarkable life of Mr. D. Coiner Rosen and commend the positive contributions he made to Virginia. The dedicated and selfless service he provided throughout his years to preserve the history of our Commonwealth and our Nation will benefit Americans for years to come.

Mr. ALLEN

Mr. ALLEN. Mr. President, I call up amendment No. 3113.

Mr. ALLEN. I ask unanimous consent the reading of the amendment be dispensed with.

Mr. ALLEN. Mr. President, I ask unanimous consent to add Senator Lindsey Graham of South Carolina as a cosponsor of this amendment.

Mr. ALLEN. Mr. President, I certainly wouldn't want to do anything to harm the ability of Senators to be with their spouses, and I certainly consider that a pressing question. Yes, I would accept that offer and that proposal. I will only make a few comments so people know what they are voice voting on. I will take no more than a few minutes. That is a kind offer.

Mr. ALLEN. Mr. President, this amendment has to do with the Homestead Preservation Act. I filed this amendment to this underlying legislation to repeal the FSC/ETI tax regime. I support the JOBS bill which should be focused on helping our manufacturers here in this country and also help increase jobs. The efforts made in the prior amendment were very commendable in many regards. This amendment would provide displaced workers access to short-term, low-interest loans to help meet monthly home mortgage payments while training for or seeking new employment. This is a commonsense, compassionate amendment designed to help working families who through no fault of their own were adversely affected or lost their jobs due to international competition. We have seen across this country--whether in the Southeast, or the Northeast, or the Midwest--uneasy times for everyone. Many regions of this country, from the Southeast, the Northeast and the Midwest and especially in places like southwest Virginia where we see a lot of job losses in the textile and apparel industry as well as furniture manufacturing, which has been especially hard hit. Any time one of these factories closes, it is a devastating blow to all the families and businesses in that community and in the region. I was proud to actually see the response of close-knit communities in southwest Virginia where everyone came together to help those who had lost a job. When companies like Pluma, Tultex, Pillowtex and others closed their doors and thousands of jobs were lost; not one or two, but multiples of thousands. Most recently in Galax, VA--otherwise known as the home of the ``Old- Time Fiddlers Convention''--Webb Furniture Enterprises closed their doors due to international competition. This amendment will help those families--not just in Virginia but across this country. The proposal would direct the Department of Housing and Urban Development--HUD--to help through these tough times. I understand no government loan or government assistance will substitute for a job. But there are ways we can assist in this regard. We ought to find ways to ease the stress and turmoil for people whose lives are unexpectedly thrown into transition after years of steady employment with a company that suddenly disappears. While they are looking for jobs and getting retraining, people are worrying about their homes. Often the biggest financial investment in someone's life is their home. They have a lot of equity built into that home. Again, while they are getting training and looking for another job, those mortgage payments are still there. When I saw this sort of economic disaster hit Martinsville a few years ago, it struck me so much like a natural disaster as far as the devastation. But in many regards it is worse than a natural disaster because after a natural disaster there is a buildup. There is hope for the future. In an economic disaster with the loss of thousands of jobs, there is no clear rebuilding process. The point is the Federal Government, in my view, ought to make similar assistance available to homeowners in economic disasters as is available when there is a natural disaster. That is the rationale behind my amendment--the Homestead Preservation Act. This legislation will provide temporary mortgage assistance to displaced workers by helping them make ends meet during their search for a new job. Specifically, the Homestead Preservation Act authorizes HUD to administer a low-interest loan program at 4 percent for workers displaced due to international competition. The loan is for up to an amount of 12 monthly mortgage payments--only 12, 1 year--for home mortgage payments only. The program is authorized at $10 million per year for 5 years. The loan would be paid off. These are not grants. They are loans to be repaid over a period of 5 years. No payments, though, would be required until 6 months after the borrower has returned to work full time, or 1 year, whichever is applicable. The loan is available only for the cost of the monthly home mortgage payment, and covers only those workers displaced due to international competition. It requires individuals seeking to avail themselves of this loan program to be enrolled in job training or job assistance programs. The Homestead Preservation Act provides temporary financial tools necessary for displaced workers to get back on their feet and to succeed. It is logical and, in my view, a responsible response. This measure garnered strong bipartisan support the last time it was considered by the Senate. I respectfully urge my colleagues to recognize the value Americans place on owning a home, and support this caring and needed initiative. If no one has anything further to say about it, I urge adoption of this amendment.

Mr. ALLEN. Thank you, Mr. President.

Mr. ALLEN. I move to lay that motion on the table. The motion to lay on the table was agreed to. Reform

Mr. ALLEN

Mr. ALLEN. Mr. President, on behalf of Senator McCain, Senator Wyden, myself, and others who are in favor of Internet tax freedom, I respectfully urge my colleagues to vote for cloture on this amendment. What is at stake is whether 15- to 18-percent taxes will be imposed upon Internet access. The Internet is a great invention for the advancement of ideas, of information, for commerce, for telemedicine, and for education. This country has been a leader in technology, although we are falling behind, particularly in broadband. I ask my colleagues to vote for cloture. There can be germane amendments but allow us to go forward. A vote for cloture is a vote for freedom and opportunity for the American people. Stand on the side of that principle.

Mr. ALLEN. Objection.

Mr. ALLEN. Reserving the right to object, will the Senator from Connecticut restate what his request is?

Mr. ALLEN. I ask the Senator from Connecticut, is the subject of Senator Byrd's remarks the Internet tax issue?

Mr. ALLEN. Mr. President, I understand the nature of Senator Byrd's remarks. We all want to get to the amendments that might be proposed on the Internet tax issue, but knowing the subject matter of Senator Byrd's remarks, there is no objection.

Mr. ALLEN. Mr. President, the Senator from California mentioned waiting for 4 years while this bill ends. The reality is that those who are paying taxes right now because some States and localities have started taxing DSL in the last several years, that means consumers, with the amendment that was approved in the McCain amendment, that the consumers are going to be taxed for 2 more years. The design of this bill, as amended, is to protect taxpayers. It is to protect consumers. It is to expand opportunity, jobs, and commerce to people all across this country. The grandfather clause that Senator McCain put in his amendments, particularly on the DSL, is different than what we passed out of the committee, which was to stop these DSL taxes immediately because what has happened in the last few years is some of these localities and States have figured out ways around the intent of the original Internet tax moratorium and, indeed, are taxing the backbone. Having a 4-year grandfather on DSL taxes, on the backbone, on high-speed broadband, rewards those who have been the most aggressive in looking at loopholes to tax. It is going to cause probably more litigation as well because it can always be argued over. The reality of taxes is that they want to put them on DSL. They want telecommunications taxes. Telecommunications taxes on average across this country are about 15 to 17 percent. Some places it is worse than others. Richmond, VA, is about the worst in the whole country. About 27 percent is the local tax. These are the kinds of taxes that are going to be imposed on DSL bills, whether from the telephone, wireless, BlackBerrys or Y5. The issue is this is the way that our Internet access bills should look, without DSL taxes on it. Here is the cost, $23.90, $25, $37, whatever it may be, no taxes, clear, simple, understandable, and more affordable. If taxes are put on, the Internet service bill will look like what a telephone bill looks like right now, and this is just one page of it, but all the local taxes, all the State taxes, all the Federal taxes, again, on average in this country are about 17 percent. This is what we are trying to prevent. The Feinstein-Alexander amendment, though, would allow this sort of taxation onto the Internet service access bill. One of the problems we have, and Senator Wyden brought it up, is how do we ever get rid of taxes? Guess what. Part of this tax was put in as a luxury tax on telephone service to finance the Spanish American War in 1898. Everybody is still paying that tax. That war has been fought and won over 100 years ago. That is how difficult it is, nearly impossible, to ever get rid of taxes. The McCain compromise allows those who are taxing DSL to wean themselves off of that tax over 2 years. The reality is if the grandfather is allowed to go on 4 years, which is the duration of the entire measure on the moratorium, they will never take off those taxes. So I say to my colleagues, the time to act is now because this is how it will impact across the country. Say someone wanted to e-mail from Washington, DC, to Los Angeles, CA. That is going to be routed to Chicago, which has a hub, another big hub in Austin, across all the way to the Bay area of San Francisco that has a hub, and then to Los Angeles. That is the way it would go. All of these jurisdictions in between that 3,000 miles are going to be able to put on these DSL taxes. This is what we are trying to stop. The ones that have been doing it--and it is unclear how many States are doing it at this point. Some say 8, some say 12, some say 20. The point is, there is going to be 3,000 miles of taxes from localities, States, and jurisdictions in between. The States will have enough time with the McCain compromise, which is, I think, very generous to those who are advocates of allowing taxation on the Internet, to have 2 more years to wean themselves off of it. The big issue on the fiscal impact that one would hear all the time was voice over IP, worrying about telephone service migrating to the Internet. That has been resolved. The junior Senator from Tennessee, Mr. Alexander, and I debated and discussed it. All of us worked on it, and finally, this afternoon we were able to get language that everyone could agree upon. So when folks say it is going to have such a big hit, a big cost on States and localities, the voice over amendment, which we all adopted unanimously, will take away those fiscal impacts. What we are now talking about, though, is whether there is going to be 3,000 miles of taxation and subjecting Internet traffic to that sort of taxation. This is clearly undesirable, particularly when we are trying to get high-speed broadband built out to rural and small town communities. If we start increasing taxes on DSL and broadband, it is going to make it very difficult to get companies to invest, but most importantly it will mean more people will be unable to afford DSL or high-speed broadband services. So I ask my colleagues to make sure we avoid this sort of taxation. Do not let all those States in America put on taxes like the ones we see on our telephone bill. Let us make sure we act on this amendment to defeat it. The defeat of this amendment will be a protection to consumers, and it also will be a vote to expand economic opportunity and prosperity for all Americans everywhere in our country. I respectfully urge my colleagues to defeat or vote no on the Feinstein-Alexander amendment because it is contrary to the desirability of economic opportunity for Americans. Adding more taxes, or allowing these taxes to continue for 4 years, is not the policy to make this country more competitive, individuals more free, with greater opportunities. I yield the floor.

Mr. ALLEN. Mr. President, I move to reconsider the vote.

Mr. ALLEN

Mr. ALLEN. Mr. President, I suggest the absence of a quorum.

Mr. ALLEN

Mr. ALLEN. Will the Senator from Texas yield?