Evan Bayh

Mr. BAYH

Mr. BAYH. Mr. President, yesterday I introduced legislation, entitled the Simplification Through Additional Reporting Tax, START, Act of 2006, that will require brokerage houses and mutual fund companies to track and report cost basis information to their customers and the IRS. The legislation is cosponsored by Senators Obama, Carper, Kerry, and Levin and is based upon a recommendation made by the National Taxpayer Advocate, the organization created as part of the 1998 IRS Restructuring and Reform Act whose explicit purpose is to make recommendations to Congress to simplify the tax code. Over 130 million Americans are now struggling with the difficult job of filling out their taxes and 32 million taxpayers will likely have to report a capital gain or loss. For taxpayers all across the country that are angry and frustrated with the tax code, the START Act will hopefully provide some measure of relief and, at the same time, help close what is called the ``Tax Gap.'' The Federal Government now fails to collect close to $350 billion in taxes that are legally owed. This is called the tax gap, an amount that exceeds last year's $318 billion deficit, or this year's projected deficit of $336 billion. The National Taxpayer Advocate has observed that if we eliminated the tax gap, we could cut taxes for every American by $2,000. This would only be true, of course, if we ran a surplus. Because we are running a deficit, and will likely be doing so for the foreseeable future, the tax gap is really a $2,000 tax increase on our children and grandchildren, with interest building every year. This is a moral failure that needs to be addressed. Unfortunately, while there has been a lot of discussion about this issue in the halls of Congress and within the administration, there has been little action. In the last two years, there have been six congressional hearings on this issue. The Internal Revenue Service Commissioner Mark Everson has said that this issue is a top priority and that over a period of time the government could collect between $50 and $100 billion of the tax gap ``without changing the dynamic between the IRS and the [American] people.'' However, in their latest budget, the Bush Administration has introduced proposals that only attempt to close $259 million of the tax gap in fiscal year 2007, or approximately one-tenth of 1 percent of the tax gap as measured in 2001. This is a failure of leadership. More can be done. The legislation that I am introducing today does not eliminate the tax gap, but it does address a significant part of the problem. Specifically, the START Act of 2006 addresses the portion of the tax gap related to capital gains. This part of the tax gap results from the underreporting of capital income, and can include income related to the sale of stocks, bonds, real estate, and a myriad of other investments. According to the IRS, the revenue loss from the underreporting of capital income is $11 billion annually. It is important to understand that this figure is based on 2001 data. Since 2001, the amount of revenue collected through capital gains taxes has increased by $190 billion, from $349 billion in 2001 to $539 billion in 2005. If one makes the reasonable assumption that the misreporting percentage has stayed stable during this period, the $11 billion problem in 2001 is now a whopping $17 billion problem in 2005. Over 10 years, assuming no growth in capital gains realizations, this potentially represents $170 billion in revenue that the Federal Government is failing to collect. The START Act is intended to accomplish three goals: first, reduce the deficit by closing a portion of the tax gap; second, simplify the tax-filing process for the millions of Americans who pay capital gains taxes; and, third, make the tax code fairer. The first goal of this legislation is to reduce the deficit. We not only have a moral responsibility to our children and grandchildren to begin seriously addressing our growing deficit and debt, we also need to do so to protect our vital trade and national security interests. The total public debt now stands at $8.2 trillion, or $27,728 for each man, woman, and child living in America. This week, the Senate will likely vote again to raise the public debt limit, this time to $9 trillion. By 2011, the debt will have reached $11.8 trillion. In the last three years alone, we will have increased the debt limit by $3 trillion, a 40-percent increase from when President Bush took office in January 2001. While we are mortgaging our country, it is important to ask to whom do we owe all of this money. Increasingly, the answer is foreigners, and this development represents an economic and security threat to our country. In December 2005, an estimated $2.2 trillion of the publicly held debt was owned by foreign creditors, such as the Chinese and Japanese. It took 42 Presidents 224 years to run up a trillion dollars of debt held by foreigners. This President has more than doubled that amount in just five years. This has weakened our country. Why? Because when the value of the U.S. dollar plunges at the mere suggestion by a Japanese or Chinese central banker that they will sell their holdings in U.S. dollars, it signals that we no longer control our economic destiny. This level of dependency affects our ability to bargain from a position of strength on national security issues with foreign countries. It is worth remembering that there has never been a country that is militarily strong, but financially weak, yet that is the path that we are on today. Vice President Dick Cheney famously said that ``deficits don't matter.'' Well, they do, as almost all economists will tell you. And the reason they matter is that when we borrow, we prevent both the private sector and the public sector from being able to invest in our country's and our children's future. Our children are now part of a global economy, and are competing against children in Japan, India, and China for the jobs of the future. If we fail to invest in their future because instead we are paying off our debts, we will become the first generation to leave a country that is worse off than the one that we inherited. While the START Act of 2006 will not balance the budget, it does represent a step in the right direction. The impact of START has not yet been scored by the Joint Tax Committee, so the impact on the deficit is not known. Nevertheless, the capital gains tax gap is now $17 billion per year. My proposal might not close the entire gap, but I expect that it will make a very meaningful down payment on the problem. The second goal of my legislation is to simplify the tax-filing process and help American taxpayers spend less time filling out their taxes. It is no secret that the Tax Code is overly complex. It now has over 17,000 pages and contains almost four times as many words as the Bible. The IRS now prints over 1,000 publications. Americans now spend 5.8 billion hours and $194 billion every year to complete their tax forms. According to the National Taxpayers Union, the number of taxpayers using paid professionals has soared by approximately 60 percent since 1980 and by nearly 30 percent since 1990. Reflective of this complexity is the fact that one of the leading tax preparation firms, H+R Block, was in the news recently because it could not accurately do its own corporate tax return. One of the most complex areas of the tax code is Schedule D, the form that taxpayers must fill out when they report their capital gains and losses. For the average taxpayer, simply filling out this one schedule adds 7 hours to the tax return filing process almost a full work day. And, for taxpayers using return preparers to complete this form, it can add significantly to their costs. Computing a capital gain or loss would seem, on its face, easy enough. You need to know the original purchase price and the final sales amount. Taking the difference between the two should determine the amount of gain or loss. Taxpayers do have the final piece of the puzzle--the sale price, as brokerage houses and mutual funds now report this information, called ``gross proceeds,'' to their customers and the IRS on Form 1099B. But what taxpayers are not told, and what is extremely difficult to calculate, is what is called the ``adjusted cost basis'' in their investment. This is a technical term for the original price of the investment, plus any necessary adjustments. Taxpayers face enormous challenges in trying to determine the adjusted basis of the securities they have held for many years. The first challenge is simply a matter of recordkeeping. Brokers usually send an investor a certificate of ownership stating the original purchase price of the asset. But stocks or bonds or mutual funds can be held for long periods of time, and many taxpayers lose this information and thus are left without any record of what they paid for the investment. The second challenge is a more serious one and stems from the fact that a taxpayer's capital gain or loss is not always simply the difference between the purchase price and sale price. Taxpayers must often adjust the tax basis they have in their investments due to certain events that take place during their ownership of the security. For example, if a company's stock splits, the tax basis in that stock must be cut in half; alternatively, if there is a reverse stock split, the tax basis in that stock must be doubled. Consider, too, that if you reinvest capital gains or dividends in the same investment, you likewise have to adjust your basis. Determining the adjusted basis can be a very complex undertaking and, under current law, sole responsibility for this calculation falls on the taxpayer. The START Act would eliminate both of these challenges. By requiring brokerage houses and mutual funds to track and report taxpayer's adjusted basis information, countless hours or days of frustration would be eliminated for the 32 million taxpayers who pay capital gains taxes. More importantly, these taxpayers would have confidence that the amount that they are paying in capital gains taxes is the correct amount. Information returns of this sort will provide taxpayer's with accurate information about their investments that they simply can plug into their tax returns. No more trips into the attic to rifle through old boxes. No more having to sit down and try to calculate the impact of ten stock splits and reorganizations on your shares of IBM or AT+T stock. In addition to reducing the deficit and making the tax-filing process simpler, the START Act will also make the tax code fairer. Presently, the tax code discriminates against middle-class Americans who earn the overwhelming majority of their income in the form of wages. The reason is that middle-class Americans cannot underpay their taxes because their employers submit wage information reports, called W-2 forms, to the IRS. If a factory worker in Indiana wants to underpay his taxes, the IRS will know about it since his employer sent the amount that he earned in wages to the IRS. By contrast, taxpayers that rely on capital gains for their income, however, are accountable to only themselves. Under current law, the IRS lacks the ability to monitor the accuracy of taxpayer's calculations since initial purchases are not reported to the IRS. This provides dishonest taxpayers with an opportunity to inflate the tax basis they have in their investments, thereby underpaying their capital gains taxes. Taxpayers that have capital gains income are thus on the honor system to report accurately. While that may work for the Boy Scouts, it doesn't work when it comes to paying taxes. Now many capital gains taxpayers are honest, but some are not. And if the dishonest ones want to do some Enron accounting, there is virtually no way that the IRS can detect it. The START Act addresses this inequity between wage and capital income earners by putting them on a level playing field. By requiring that adjusted cost basis information be reported to the IRS, every taxpayer that has a capital gain will be treated in the exact same way that every wage earner is treated. If we want everyone to play by the rules, then everyone should be held to the same level of accountability. Moreover, if we want Americans to believe that their tax system is fair, then we need to make sure that they believe that the person next door is actually paying their fair share in taxes. Third party information returns that allow the IRS to determine if someone is paying their taxes accurately are critical to ensure taxpayers comply with the law and that everyone is paying their fair share in taxes. The IRS uses this type of information return for wages, dividends, and interest income, and in these areas, the amount of non- compliance is negligible. Why should we not hold capital gains income to the same standard? To accomplish the three goals that I have discussed, my bill requires brokerage houses and mutual funds to track and report their customer's adjusted basis and provide this information to their customers and the IRS. The reporting requirement would only apply prospectively to securities acquired after the effective date. This would prevent companies from having to undertake costly and time-consuming efforts to determine basis information for assets that could be decades old. The START Act applies to stocks, bonds, and mutual funds. For other types of securities, the bill grants authority to the Treasury Secretary to determine if the reporting requirement should apply more broadly. Financial instruments, such as derivatives, swaps, and options are not covered in the bill, but the Treasury Secretary may decide to include or exclude them when implementing the legislation. The START Act candidly acknowledges that there will be cases where it will be difficult or impossible for companies to provide accurate basis information. In these cases, such as gifts, bequests, and specialized cases where unique basis adjustment rules come into play like wash sale rules, the legislation grants the Treasury Secretary the authority to require brokerage houses and mutual funds to provide other information that will allow the IRS to understand why basis information is not being provided. For example, in the case of a gift where the adjusted basis is unknown, a brokerage house could in lieu of supplying the adjusted basis figure, simply denote instead a ``G'' on the information return issued to the taxpayer and the IRS. The START Act also provides authority to the Treasury Secretary to issue regulations that will facilitate the transfer of cost basis information when investors move assets from one brokerage house, or mutual fund, to another. A significant amount of basis information is currently lost when individuals move their financial accounts from firm to firm and the original purchase price information is not transferred to the new broker. Finally, the START Act requires companies to begin tracking adjusted basis information during the 2008 tax year and taxpayers will receive their first reports by January 31, 2009. This will give companies close to 2 years, more than ample time, to put the processes and systems in place to comply with this new regulation. Moreover, it will give impacted companies close to 3 years before they have to issue their first information report. Any proposal that imposes a new reporting requirement will have its critics and I am sure this proposal will attract its fair share of attention from some in the securities industry that don't like this idea. I would simply ask these potential critics read the bill before they pass judgment on the idea. I have tried to take a balanced approach and have sought input from a wide-range of experts and affected parties. Specifically, I have tried to balance the need to improve tax compliance with the goal of not placing an undue burden on industry. Specifically, by making the legislation prospective and providing three years of lead time before the industry must issue their first information report, I believe this legislation will present minimal burdens for industry. In drafting this legislation, I have shared this legislation widely with industry, government officials, academics, and other tax professionals in order to craft the best bill possible. I have received input from the Securities Industry Association of America, the Investment Company Institute, the American Institute of Certified Public Accountants, and the National Association of Enrolled Agents. I have also reached out to small brokerage firms and mutual funds in Indiana to hear their perspective. In addition, the Government Accountability Office, the Internal Revenue Service, and the Joint Tax Committee have been consulted for their expertise on this legislation. During these consultations, I have not heard any explicit criticism of the proposal, but have received many helpful suggestions on ways to make this legislation both balanced and fair to companies and taxpayers. However, I do expect that there could be some philosophical and technical issues that are raised with the bill, so I want to take a moment to highlight those and respond to them immediately. First, this proposal does not raise capital gains tax rates. For those that are legally paying the right amount in capital gains taxes, they won't pay one penny more in taxes. This proposal only ensures that people pay what they legally owe. And, moreover, what is happening today is that our failure to collect the taxes that are legally owed is effectively imposing a tax increase on our children and grandchildren who will have to pick up the tab for our fiscal failure to merely enforce the laws on the books. For this reason, I would argue that if my bill is enacted it would represent a tax cut for our children and grandchildren who will pay higher taxes if this problem is not addressed. Some may look at this proposal and dismiss it as antibusiness and just another government regulation. I am sure there were some that had similar concerns when it was first proposed that all U.S. employers should report wages to the IRS. Now, however, we know that this reporting requirement is a cornerstone of ensuring tax compliance. Moreover, the reporting requirement does not elicit any protests from employers because they realize that without it, the U.S Treasury would lose billions in legally owed taxes. As I have said before, the honor system may work for the Boy Scouts, but it is not a great way to collect taxes. Finally, no business would be able to succeed if every year it failed to collect $17 billion per year in sales. In fact, any responsible company would move heaven and earth to address such a problem. U.S. taxpayers deserve the same level of accountability. Some brokerage houses or mutual funds may argue that companies cannot provide this information because, in some cases, the correct information doesn't exist. This argument does not square with the fact that there are plenty of examples of companies that already provide cost basis information to their clients. If Fidelity or Ameritrade or E*Trade can provide cost basis information to all of their clients, it clearly suggests that the information can be provided. Some may argue that this proposal will be costly to implement, even if it is a prospective proposal, because they don't have the systems in place to track and report cost basis. I would invite them to go talk to companies that have already decided to offer basis-tracking for their clients, and ask them how much it cost to offer this service. I would also ask them to talk to the software vendors and companies that provide basis tracking services to brokerage house and mutual funds. What they will tell you is that the cost is reasonable. According to a leading company that provides basis tracking services to brokerage firms and mutual fund companies, it typically charges on an annual basis approximately $1 per account. For a company with 10,000 accounts, that is a yearly charge of $10,000, a small figure when you look at the revenues of a brokerage firm of this size. Some may point out that there are some types of transactions or securities where a brokerage firm or mutual fund cannot reasonably be expected to provide accurate cost basis information. My bill candidly acknowledges this fact. In these cases, brokerage houses and mutual funds will simply be required to provide ``other information'' that will allow their customers and the IRS to understand why adjusted cost basis information could not be provided. This is already standard practice for many companies that provide cost basis information to their customers. In conclusion, this should be an issue that honorable members from both sides of the aisle can agree needs to be addressed. Democrats and Republicans will fight endlessly about what tax rates should be, but I believe all Members should agree on the principle that all taxpayers should pay what you owe. We should also all agree that we need to reduce our deficit, simplify the tax-filing process, and promote a fair and equitable tax system. The START Act of 2006 is intended to make progress on all of these goals. I hope it can start a civil conversation about ways to improve our tax system. I look forward to working with all interested parties to craft a workable proposal that provides some needed relief to our overburdened taxpayers.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today to applaud the Transportation Corporation in South Bend, IN, for its decision to use biofuels to power the South Bend public transit system, the second largest public transit system in all of Indiana. This is good news for the environment and good news for the economy. By using biofuels to power South Bend's public buses, Indiana is setting an example for the rest of the Nation and leading the way on the path to greater energy security. Ending our dependence on foreign oil is one of the defining challenges of our generation and it's going to affect America for generations to come. It will affect our economy, our finances, our Nation's security and, ultimately, the kind of world our children inherit from us. If we learned anything from September 11, it is that we can no longer afford to be dependent on places like Saudi Arabia, Russia, and Venezuela for our energy supply. Yet unfortunately, we are more dependent on foreign oil from hostile countries today than we were on September 11--making us more vulnerable and putting the United States in the uniquely disturbing and intolerable position of bankrolling both sides in the war on terror. By tapping the energy potential of Indiana's farm fields, we can ensure a reliable domestic energy supply to meet our Nation's needs while ending our reliance on unstable countries for their oil and, at the same time, creating thousands of jobs for Hoosier farmers. South Bend's buses will run on B20 soy biodiesel, a clean renewable fuel that creates a new market for Indiana's 28,000 soybean farmers. Indiana's farmers represent some of the very best of our State's traditions and history, and I am proud that they will be our partners as we chart a path to energy independence in the 21st century. Although it may seem daunting, we can reduce our dependence on oil. Brazil has announced that it expects to be energy independent by the end of the year by fulfilling its energy needs in part from domestically produced biofuels. If they can do it, so can we. And here in Indiana, we are beginning to understand the power and potential of renewable energy sources. Last year, the Indy Racing League announced its decision to use ethanol in its IndyCars. Beginning in 2006, all IndyCars will race on an ethanol-blend before switching to 100 percent ethanol fuel the following year. If a high performance vehicle running on ethanol can win the Brickyard, surely ethanol is good enough for the family minivan, too. Today's announcement builds on Indiana's prominent leadership role in the country's growing renewable fuel industry. If cities around the country would follow South Bend's lead, step-by-step we could move towards energy independence. Here in the Senate, I have introduced bipartisan legislation aimed at breaking America's dependence on foreign oil by reducing our use of oil by 7 million barrels a day by 2026. My legislation would achieve that goal by creating incentives to encourage the use of alternative fuels like those being used by TRANSPO and promoting greater energy efficiency. A key part of accomplishing this goal involves increasing America's use of biofuels through significant increases in tax credits and grants. By letting America's farmers produce America's fuel, we will help truly set our country free. I want to thank South Bend and TRANSPO for showing us how to start making that progress.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave young man from Kokomo. Sergeant Rickey Jones, 22 years old, was one of four soldiers who died on February 22 when their vehicle was hit by a roadside bomb during a patrol near Hawijah, 150 miles north of Baghdad. With his entire life before him, Rickey risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. A 2002 graduate of Kokomo High School, Rickey joined the Army because of concerns about a tight local job market at the time. After his first tour in Iraq, he returned with a new world view and volunteered for a second tour of duty. His mother told local media that the change in her son was unmistakable and that during his time in the Army, Rickey had matured into a man and a true soldier. Rickey's brother, Michael, spoke of his admiration for Rickey's patriotism, saying, ``Rickey was proud of what he did and proud to serve his country. He died proud.'' Other family members fondly recalled that Rickey was a loving person and the pride of his family, who simply wanted to help ensure a better quality of life for Iraqi children. Rickey was killed while serving his country in Operation Iraqi Freedom. He was a member of the 1st Battalion, 327th Infantry Regiment, 101st Airborne Division based at Fort Campbell, KY. Today, I join Rickey's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Rickey, a memory that will burn brightly during these continuing days of conflict and grief. Rickey was known for his dedication to his family and his love of country. Today and always, Rickey will be remembered by family members, friends and fellow Hoosiers as a true American hero, and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Rickey's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: ``We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here.'' This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Rickey's actions will live on far longer that any record of these words. It is my sad duty to enter the name of Rickey Jones in the official record of the United States Senate for his service to this country and for his profound commitment to freedom, democracy and peace. When I think about this just cause in which we are engaged, and the unfortunate pain that comes with the loss of our heroes, I hope that families like Rickey's can find comfort in the words of the prophet Isaiah who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Rickey.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave young man who was born in Michigan City. Brian Schoff, 22 years old, died on January 29 when a roadside bomb exploded near his humvee during a combat operation. With his entire life before him, Brian risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. Although Brian moved to Tennessee when he was young, his valor over the course of his service in Iraq is proof that he was a Hoosier at heart. He joined the Army in 2003, a year after he graduated from high school, because he wanted to serve his country. Brian enjoyed the military, but he intended to return to Indiana in May to join his father working at Sullair Corporation. His father described his son to local media outlets as an adventurous, active person who enjoyed hunting, fishing and sports. Brian was killed while serving his country in Operation Iraqi Freedom. He was a member of the 101st Airborne Division based at Fort Campbell, KY. This brave young soldier leaves behind his father, Brian L. Schoff, and his mother, Cathy Odle of Manchester, TN. Today, I join Brian's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Brian, a memory that will burn brightly during these continuing days of conflict and grief. Brian was known for his dedication to his family and his love of country. Today and always, Brian will be remembered by family members, friends and fellow Hoosiers as a true American hero, and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Brian's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: ``We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here.'' This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Brian's actions will live on far longer that any record of these words. It is my sad duty to enter the name of Brian J. Schoff in the official Record of the U.S. Senate for his service to this country and for his profound commitment to freedom, democracy and peace. When I think about this just cause in which we are engaged, and the unfortunate pain that comes with the loss of our heroes, I hope that families like Brian's can find comfort in the words of the prophet Isaiah who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Brian.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave young man from Lafayette. Matthew Frantz, 23 years old, died on January 20 when an improvised explosive device detonated near his vehicle during a patrol near Al Huwijah in Iraq. With his entire life before him, Matthew risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. Following in the family tradition of service, Matthew had been committed to joining the military since he was in the second grade. A 2001 graduate of Lafayette Jefferson High School, his teachers recalled how eager he was to join the service, as well as what a decent and friendly student he was. One of his teachers told a local news outlet, ``Matt was very excited about being part of the military. It was what he wanted to do. He was just a young man that wanted to serve his country.'' Matthew had been in the military for nearly 2 years, but this was his first deployment to Iraq. He arrived there only 4 months ago as a counterintelligence specialist. Matthew was killed while serving his country in Operation Iraqi Freedom. He was a member of the 1st Special Troops Battalion in the 101st Airborne Division based at Fort Campbell, KT. This brave young soldier leaves behind his father and mother, James and Marilyn Frantz; his brothers, Chris and Eric, who also serve in the military; and his fiance, Amalia Cerbin. Today, I join Matthew's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Matthew, a memory that will burn brightly during these continuing days of conflict and grief. Matthew was known for his dedication to his family and his love of country. Today and always, Matthew will be remembered by family members, friends, and fellow Hoosiers as a true American hero, and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Matthew's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: ``We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here.'' This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Matthew's actions will live on far longer that any record of these words. It is my sad duty to enter the name of Matthew C. Frantz in the official record of the U.S. Senate for his service to this country and for his profound commitment to freedom, democracy, and peace. When I think about this just cause in which we are engaged and the unfortunate pain that comes with the loss of our heroes, I hope that families like Matthew's can find comfort in the words of the prophet Isaiah who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Matthew. Sergeant Clifton Yazzie

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave young man from Evansville. Jonathan Pfender, 22 years old, died on December 30 when an improvised explosive device detonated near his vehicle during a patrol in Bayji, Iraq. With his entire life before him, Jonathan risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. A 2001 graduate of North Posey High School, Jonathan decided to leave his job at the Evansville Pizza Hut to pursue a career in the Army. According to his mother, Jonathan was not satisfied with the direction his life was taking and decided to change course by joining the military, an idea he had contemplated since junior high school. Remembered as a likeable, fun-loving and passionate young man who loved serving in the Army, Jonathan was the pride of his family and headed to Iraq with their full support. His mother recounted to a local newspaper, ``[His co-workers] were crazy about him. Everyone was, you couldn't not fall in love with him.'' Jonathan was killed while serving his country in Operation Iraqi Freedom. He was a member of the 1st Battalion, 187th Infantry Regiment, 3rd Combat Team of the 101st Airborne Division based at Fort Campbell, KY. This brave young soldier leaves behind his mother and stepfather, Peggy Jo and Jeff Hammond; his father and stepmother, Randy and Jackie Pfender; a 26-year-old brother; a 1-year-old half brother; stepsiblings and other relatives. Today, I join Jonathan's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Jonathan, a memory that will burn brightly during these continuing days of conflict and grief. Jonathan was known for his dedication to his family and his love of country. Today and always, Jonathan will be remembered by family members, friends and fellow Hoosiers as a true American hero and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Jonathan's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: ``We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here.'' This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Jonathan's actions will live on far longer that any record of these words. It is my sad duty to enter the name of Jonathan Pfender in the official record of the United States Senate for his service to this country and for his profound commitment to freedom, democracy and peace. When I think about this just cause in which we are engaged, and the unfortunate pain that comes with the loss of our heroes, I hope that families like Jonathan's can find comfort in the words of the prophet Isaiah who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Jonathan.

Mr. BAYH

Mr. BAYH. Mr. President, today I wish to pay tribute to the Linton Police Department and their Chief of Police, Keith McDonald. I also want to take a moment to recognize Linton's Drug Task Force Officer Joshua Goodman. Under the leadership of Chief McDonald, the Linton Police Department has increased its drug arrests by nearly 500 percent over the past 5 years. Most recently, the department executed a drug bust that resulted in the seizure of approximately $250,000 worth of methamphetamine--one of the largest drug busts in the western part of the State. Methamphetamine is currently one of the fastest-growing drug threats in the Nation, and the problem is particularly acute in the Midwest and Indiana. In Indiana, the number of meth labs has increased 750 percent over the last 5 years and the meth industry costs the State at least $100 million a year. Indiana's epidemic of meth use destroys families, places undue burdens on taxpayers, and exhausts child service resources. Hoosier families depend on local law enforcement officers to protect their children and keep their communities strong. In the face of the growing meth epidemic and despite an increasing number of homeland security responsibilities, the Linton Police Department and other police departments across the State have risen to the challenge. With the help of tougher State meth laws, these local police forces have succeeded in reducing the number of meth labs across Indiana. But they need more support from the Federal Government. Local police forces, like Linton's, are already stretched thin as they respond to a growing number of homeland security challenges. Nothing short of a national commitment with tough, innovative laws will stop the spread of this terrible drug that is threatening our communities. For this reason, I coponsored the Combat Meth Act in 2004 to provide a nationwide approach that gives police officers the tools they need to fend off the creation of new meth labs and helps families rebuild their lives. I am hopeful that this legislation will help Linton and other towns continue to succeed in their fight against the meth scourge. I wanted to take the time to recognize the Linton Police Department today, because as our Nation faces increasingly uncertain times, including the escalation of the meth epidemic, it is our first responders who are our primary line of defense. In all areas, but especially the fight against meth, Linton's Police Department has gone well beyond the call of duty. On behalf of the State of Indiana, I thank the Linton Police Department for helping keep Greene County's streets safe and its community strong and meth-free. It is my honor to enter this tribute in the official record of the United States Senate in recognition of the Linton Police Department's extraordinary commitment to the citizens of Greene County.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today to pay tribute to one of our most remarkable members, Senator Jon Corzine, who leaves us this year to continue his work on behalf of the people of New Jersey in a new capacity. Experience and leadership qualities like his are rare, and with them, he has set himself apart as a champion of the environment, a safe homeland, affordable health care, and working men and women everywhere. After managing one of the most successful businesses in the world, Jon arrived in the Senate five years ago with the negotiating skills and leadership experience that allowed him to succeed so admirably here. Most notably, Jon came to Washington with an unusual and important perspective. He understands the bottom line. He understands that it is not right for our children to inherit our unpaid bills and that we have a responsibility to ensure that we leave them a safer, more secure and more compassionate America. In pursuit of these goals and never shying from a challenge, Jon Corzine was a leader in the fight to protect Social Security from privatization and helped lead the charge to secure our chemical facilities from terrorist attacks. However, while tackling those critical national challenges, it was obvious that his heart was with New Jersey. Over the past 6 years, Jon fought hard to improve the quality of life for all of the people of his State by investing in the local economy and protecting New Jersey's natural resources. Last month, New Jersey residents showed their gratitude and admiration for Jon's service and elected him Governor of their State. With their votes, they showed that they believed in Jon's quest to make New Jersey one of the best places to live, work and raise a family. As a former Governor, I know the challenges and the rewards of running a State. And from working with Jon in the Senate, I know that he will help move New Jersey forward and will make sure that the State government provides people with value for their hard-earned tax dollars, while respecting the values that unite us all. Today, the Senate loses a valued colleague. However, today, New Jersey gains a great Governor. Jon, we will miss you. Susan joins me in wishing you all the best in the future. New Jersey is lucky to have you.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today to introduce the Small Business Growth Initiative of 2005, which is critical to expanding opportunities for our small businesses to excel in the U.S economy and compete with larger businesses at home and abroad. Our Nation's competitiveness hinges on our ability to cultivate the entrepreneurial spirit and provide a policy environment that helps our Nation's job creators start or expand small businesses. Since I joined the Small Business Committee in 2003, I have redoubled my efforts to help small businesses, and this bill represents my latest ideas and work to provide additional assistance to the small business community. In my home State of Indiana, small businesses employ nearly 1.3 million Hoosiers and make up 97.5 percent of all Indiana companies. Nationwide, small businesses have created between 60 and 80 percent of net new jobs over the last decade. Despite this success, small businesses are confronted with unique challenges. To understand what small business owners must overcome to build a successful enterprise, one need only know that one-third of small businesses fail in the first 2 years, and about half fail in the first 4 years. To help more small businesses succeed, my bill is designed to help small businesses train their employees, increase access to capital, encourage long-term investments in new technologies and equipment, expand opportunities to conduct research and development for the Federal Government, and finally, offer employee retirement plans. The global economy requires that successful small businesses continually update workers' skills to remain competitive. To meet this requirement, the first section of the bill provides a $1,000 tax credit for training costs per employee for up to five employees. This tax credit can be used for employees to, among other activities, obtain a new job certification, attend a community college course, or attend a 1-day seminar. Statistics indicate that the U.S. faces a growing skills gap in its workforce. With technology playing a critical role in the economy, it is vital that we continually educate workers so that they are able to meet the challenges of new and innovative tasks. Companies are often reluctant to invest in worker training due to the fear that workers will take their new training to new jobs. This tax credit reduces the cost to the employer and provides much-needed support for employers to develop a skilled workforce. Access to capital is critical for emerging small businesses as they seek to innovate, create jobs, and create wealth. The second provision in this bill provides a significant incentive to individuals and companies to invest in emerging small businesses, thereby increasing the amount of capital available to small businesses. Specifically, this bill provides a zero capital gains rate for long-term individual and corporate investments in small business stock. A 2004 report by the Council on Competitiveness highlighted small businesses' difficulty in trying to access venture capital. The study found: ``Recently, (the funding gap) has been widening as Venture Capital firms are shifting investments to focus on more mature firms with larger capital needs. Entrepreneurs report difficulty in raising money between $2 million and $5 million.'' The third section of my bill extends a critical incentive that small businesses have used to invest in new technologies, expand their operations, and most important, create jobs. Under current law, small businesses can expense--rather than depreciate--up to $100,000 in new qualifying machinery or equipment in each year through 2007. My bill extends this tax provision through the end of 2010. This will allow small businesses to enjoy a 5-year planning horizon for new investment. It is difficult for small businesses to make significant investments when the tax code is riddled with ``here today, gone tomorrow'' provisions. This provision will provide tax savings to small businesses and reduce the amount of time that small businesses would otherwise be forced to spend complying with complex depreciation rules. The fourth section of my bill would expand research and development opportunities for small businesses by increasing the amount of federal R&D opportunities available through the Small Business Innovation Research Program, SBIR, and the Small Business Technology Transfer Program, STTR. Small businesses produce 13 to 14 times more patents per employee than large firms. Small business patents are twice as likely as large firm patents to be among the 1 percent most cited patents. These programs are critical to expand opportunities for small businesses to enter the Federal marketplace and in so doing, develop new products that can be commercialized and create new jobs. They play a major role in helping the government advance cutting-edge research. According to the Small Business Administration, approximately 1 in 4 SBIR projects will result in the sale of new commercial products or processes. The fifth and final section of my bill is designed to help small businesses offer employee retirement plans. Too many workers at small companies do not have the opportunity to contribute to their retirement security. Only 31 percent of small businesses with 10 to 24 employees provide retirement plans to their employees. By comparison, 72 percent of large firms with 1,000 or more employees provide retirement plan options to their employees. As we consider ways to help small businesses grow and be competitive, it is important to provide incentives that allow them to recruit and retain qualified employees and better compete with larger businesses at home and abroad that provide retirement plans for their employees. The problem for small businesses stems, in part, from the administrative costs of starting a retirement plan. To address this problem, my bill doubles the existing tax credit to offset start-up costs associated with setting up new retirement plans. Under this bill, small companies would be eligible to take a 50 percent credit on the first $2,000 in approved costs incurred in each of the first 3 years of a qualified pension plan's existence. In conclusion, small businesses are the engine of our economy and we need to focus attention on advancing policies that help small businesses grow and prosper. I look forward to working with my colleagues on these and other proposals to help our Nation's entrepreneurs continue to lead the world in innovation and compete effectively with large companies both here and abroad in the global economy.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today to introduce the Small Business Growth Initiative of 2005, which is critical to expanding opportunities for our small businesses to excel in the U.S economy and compete with larger businesses at home and abroad. Our Nation's competitiveness hinges on our ability to cultivate the entrepreneurial spirit and provide a policy environment that helps our Nation's job creators start or expand small businesses. Since I joined the Small Business Committee in 2003, I have redoubled my efforts to help small businesses, and this bill represents my latest ideas and work to provide additional assistance to the small business community. In my home State of Indiana, small businesses employ nearly 1.3 million Hoosiers and make up 97.5 percent of all Indiana companies. Nationwide, small businesses have created between 60 and 80 percent of net new jobs over the last decade. Despite this success, small businesses are confronted with unique challenges. To understand what small business owners must overcome to build a successful enterprise, one need only know that one-third of small businesses fail in the first 2 years, and about half fail in the first 4 years. To help more small businesses succeed, my bill is designed to help small businesses train their employees, increase access to capital, encourage long-term investments in new technologies and equipment, expand opportunities to conduct research and development for the Federal Government, and finally, offer employee retirement plans. The global economy requires that successful small businesses continually update workers' skills to remain competitive. To meet this requirement, the first section of the bill provides a $1,000 tax credit for training costs per employee for up to five employees. This tax credit can be used for employees to, among other activities, obtain a new job certification, attend a community college course, or attend a 1-day seminar. Statistics indicate that the U.S. faces a growing skills gap in its workforce. With technology playing a critical role in the economy, it is vital that we continually educate workers so that they are able to meet the challenges of new and innovative tasks. Companies are often reluctant to invest in worker training due to the fear that workers will take their new training to new jobs. This tax credit reduces the cost to the employer and provides much-needed support for employers to develop a skilled workforce. Access to capital is critical for emerging small businesses as they seek to innovate, create jobs, and create wealth. The second provision in this bill provides a significant incentive to individuals and companies to invest in emerging small businesses, thereby increasing the amount of capital available to small businesses. Specifically, this bill provides a zero capital gains rate for long-term individual and corporate investments in small business stock. A 2004 report by the Council on Competitiveness highlighted small businesses' difficulty in trying to access venture capital. The study found: ``Recently, (the funding gap) has been widening as Venture Capital firms are shifting investments to focus on more mature firms with larger capital needs. Entrepreneurs report difficulty in raising money between $2 million and $5 million.'' The third section of my bill extends a critical incentive that small businesses have used to invest in new technologies, expand their operations, and most important, create jobs. Under current law, small businesses can expense--rather than depreciate--up to $100,000 in new qualifying machinery or equipment in each year through 2007. My bill extends this tax provision through the end of 2010. This will allow small businesses to enjoy a 5-year planning horizon for new investment. It is difficult for small businesses to make significant investments when the tax code is riddled with ``here today, gone tomorrow'' provisions. This provision will provide tax savings to small businesses and reduce the amount of time that small businesses would otherwise be forced to spend complying with complex depreciation rules. The fourth section of my bill would expand research and development opportunities for small businesses by increasing the amount of federal R&D opportunities available through the Small Business Innovation Research Program, SBIR, and the Small Business Technology Transfer Program, STTR. Small businesses produce 13 to 14 times more patents per employee than large firms. Small business patents are twice as likely as large firm patents to be among the 1 percent most cited patents. These programs are critical to expand opportunities for small businesses to enter the Federal marketplace and in so doing, develop new products that can be commercialized and create new jobs. They play a major role in helping the government advance cutting-edge research. According to the Small Business Administration, approximately 1 in 4 SBIR projects will result in the sale of new commercial products or processes. The fifth and final section of my bill is designed to help small businesses offer employee retirement plans. Too many workers at small companies do not have the opportunity to contribute to their retirement security. Only 31 percent of small businesses with 10 to 24 employees provide retirement plans to their employees. By comparison, 72 percent of large firms with 1,000 or more employees provide retirement plan options to their employees. As we consider ways to help small businesses grow and be competitive, it is important to provide incentives that allow them to recruit and retain qualified employees and better compete with larger businesses at home and abroad that provide retirement plans for their employees. The problem for small businesses stems, in part, from the administrative costs of starting a retirement plan. To address this problem, my bill doubles the existing tax credit to offset start-up costs associated with setting up new retirement plans. Under this bill, small companies would be eligible to take a 50 percent credit on the first $2,000 in approved costs incurred in each of the first 3 years of a qualified pension plan's existence. In conclusion, small businesses are the engine of our economy and we need to focus attention on advancing policies that help small businesses grow and prosper. I look forward to working with my colleagues on these and other proposals to help our Nation's entrepreneurs continue to lead the world in innovation and compete effectively with large companies both here and abroad in the global economy.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave young man from Fort Wayne. Jonathan Blair, 21 years old, died on November 19 in Bayji, Iraq when a roadside bomb exploded near his vehicle during a combat operation. With his entire life before him, Jonathan risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. Remembered for his thoughtfulness and patriotism, Jonathan joined the Army shortly after graduating from Elmhurst High School in 2002. The attacks of September 11 inspired him to consider military service, but Jonathan also saw the military as a gateway to further knowledge and a potential ticket to a higher education. One of his high school teachers fondly recounted to the Fort Wayne Journal Gazette that Jonathan was a patriotic and ``cerebral'' student who would contemplate fully any answer in class. Another teacher remembered, ``Jonathan challenged you as a teacher to make him better as a student; he was just a really interesting kid.'' Jonathan was killed while serving his country in Operation Iraqi Freedom. He was a member of the 1st Battalion, 187th Infantry Regiment, 3rd Brigade Combat Team of the 101st Airborne Division based at Fort Campbell, KY. Today, I join Jonathan's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Jonathan, a memory that will burn brightly during these continuing days of conflict and grief. Jonathan was known for his dedication to his family and his love of country. Today and always, Jonathan will be remembered by family members, friends, and fellow Hoosiers as a true American hero, and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Jonathan's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: ``We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here.'' This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Jonathan's actions will live on far longer that any record of these words. It is my sad duty to enter the name of Jonathan Blair in the official record of the U.S. Senate for his service to this country and for his profound commitment to freedom, democracy, and peace. When I think about this just cause in which we are engaged and the unfortunate pain that comes with the loss of our heroes, I hope that families like Jonathan's can find comfort in the words of the prophet Isaiah, who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Jonathan. Remembering Army Sergeant First Class Michael C. Parrott

Mr. BAYH

Mr. BAYH. Mr. President, I rise today to pay tribute to a remarkable organization in my home State, the Community Harvest Food Bank of Northeast Indiana. Each night, nearly 600,000 Hoosiers go to bed hungry, including 190,000 children. The numbers are heartbreaking, particularly during the holiday season, but thanks to the Community Harvest Food Bank of Northeast Indiana, our State is making strides to end this terrible tragedy. The Community Harvest Food Bank of Northeast Indiana has been a leader in the efforts to eliminate hunger across Indiana. Each year, Community Harvest collects and distributes more than 7 million pounds of donated surplus food through a network of more than 550 social service agencies. Each of these agencies offers invaluable assistance to hungry children, the working poor, and the elderly and helps ensure that every Hoosier has access to a healthy meal. Recently, the organization was named the 2005 Food Bank of the Year by America's Second Harvest--an honor never before awarded to an Indiana food bank. This award recognizes the hard work, dedication, energy, and efficiency of the organization, as well as its inspired leadership under Jane Avery. With Jane at the helm, Community Harvest has achieved organizational excellence, while continuing to do God's work, making sure that all our neighbors are cared for and fed. One of the lessons I learned from my parents was that life is not about what you take out of it, but what you put back in. Jane lives that sentiment to the fullest every day. Her work has made Indiana a better place to live for all of us. This year has been particularly hard on many Hoosier families and communities, making the work of Community Harvest especially critical. Businesses across the State have suffered layoffs, and families have lost their homes in recent tornados and storms, all while gas and heating prices have continued to increase. The Community Harvest Food Bank allows families to stretch their budget further, so they don't have to face the impossible decision of choosing between paying bills and putting food on the table. Each week, between 50,000 and 54,000 children and adults in 9 counties in Indiana are able to sit down to a hot meal because of Community Harvest's work. It is part of the fabric of life in Indiana that we all look out for our neighbors, aiding them through tough times and celebrating in good times. The Community Harvest Food Bank of Northeast Indiana is the kind of organization that keeps the Hoosier tradition of compassion alive and makes me proud to be a Hoosier. It is my great honor to recognize Jane Avery and the Community Harvest Food Bank of Northeast Indiana for their service to the State of Indiana.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave young man who grew up in North Manchester. Scott Zubowski, 20 years old, died on November 12 near Fallujah, Iraq when a roadside bomb exploded under the military vehicle in which he was riding. With his entire life before him, Scott risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. Remembered for his intelligence and honorable service, Scott was killed during his second tour of duty in Iraq. A 2003 graduate of Manchester High School, Scott enlisted in the Marine Corps shortly after graduation, inspired by his older brother's Marine service. Recently married to another Manchester graduate, Scott was set to return home before his 21st birthday in March. One of his classmates told the Muncie Star Press that ``Not only was he the smartest guy I've ever known, he was unique in a way for which words aren't good enough to actually describe who he was. But to those of us who knew him and were his friends, his presence made a profound impact in our lives that still continues to shape us today.'' Scott was killed while serving his country in Operation Iraqi Freedom. He was a member of the 2nd Batallion, 7th Marine Regiment, 1st Marine Division, I Marine Expeditionary Force. This brave young soldier leaves behind his wife, Klancey; his mother, Barbara Weitzel; his father, Richard Zubowski; and his brothers, David and Brian. Today, I join Scott's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Scott, a memory that will burn brightly during these continuing days of conflict and grief. Scott was known for his dedication to his family and his love of country. Today and always, Scott will be remembered by family members, friends and fellow Hoosiers as a true American hero and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Scott's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: ``We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here.'' This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Scott's actions will live on far longer that any record of these words. It is my sad duty to enter the name of Scott Zubowski in the official record of the United States Senate for his service to this country and for his profound commitment to freedom, democracy and peace. When I think about this just cause in which we are engaged, and the unfortunate pain that comes with the loss of our heroes, I hope that families like Scott's can find comfort in the words of the prophet Isaiah who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Scott.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart to honor the life of a great woman, Paula Yeager, who died last Wednesday after a long battle with cancer. For 6 years, Paula served the State of Indiana as the executive director of the Indiana Wildlife Federation, IWF. She was a true conservationist, a dedicated public servant and a wonderful mother. Her colleagues, friends, and family will miss her dearly, and I know that sentiment is shared by countless others across Indiana and the country. A career travel agent, Paula first applied for a job with the IWF in order to work on meaningful issues--a decision influenced by her experience with breast cancer. During her 6-year tenure with the group, Paula overcame her relative inexperience and became a successful activist in conservation issues through hard work, an unwavering commitment to diplomacy and tireless advocacy. As executive director, Paula mended the State federation's relationship with the National Wildlife Federation, NWF, improved the group's profile with lawmakers, and confronted many important issues, including mercury contamination and wetlands preservation. Her ability to unite people with differing interests earned her a reputation for diplomacy, and that effort paid off when the Indiana Department of National Resources, IDNR, banned fenced deer hunting in August. The former IDNR director called Paula the person ``most responsible in Indiana for leading the effort to ban canned hunting.'' Honored twice with the IWF's Presidents Award, Paula was named the Conservationist of the Year in 2001 by the IDNR, and this past summer the NWF recognized Paula with their Conservation Service Citation. There is a saying that life is not about what you take out of it but what you put back in. Paula lived that sentiment to the fullest. Her work made Indiana a better place to live for all of us. For that, we will always be grateful to the courageous travel agent who decided it was time to make a difference through the IWF. Indiana lost a great citizen last week. It is my sad honor to enter the name of Paula Yeager in the Record of the Senate for her service to Indiana.

Mr. BAYH

Mr. BAYH. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. BAYH. Mr. President, I rise today for a cause that is essential to preserving our Nation's security by ensuring the Guard and Reserve remain a vital component of our national security structure. I also rise to defend our moral obligation to do right by our fellow citizens who bear the burden of battle and by their loved ones who make it possible for them to do that by supporting them here at home. No one should be forced to choose between doing right by their family and their loved ones and doing right by their country, but too often today we have placed thousands of our fellow citizens in exactly that position. That is what this amendment is designed to correct. We now have 145,000 guardsmen and reservists serving who have been called to active duty. Fully 35 percent of our troops in Iraq are guardsmen and reservists, many of them putting their lives in harm's way. Just this last week, I took the liberty of spending a couple of hours out at Walter Reed Army Hospital. Many of the most grievously injured there have served in the Guard and Reserve. We owe it to do right by them. Their deployments are lasting longer than before. Since the Korean War, it is our practice to only have them called to active duty for no more than 6 months. But today, it is routine, not at all uncommon, for them to be called to active duty for more than a year and sometimes multiple calls. Mr. President, 51 percent of these individuals whose lives we are disrupting, 51 percent who are serving, many of them in harm's way, suffer a substantial loss of income, what I have referred to as the ``patriot penalty.'' The average loss of income is about $4,400 per soldier--a material amount of money for many Americans. Our amendment, with the support of Senator Durbin, Senator Landrieu, the active support of Senators Warner and Levin, would help to correct this situation by providing up to $3,000 per month in making up lost income for our Reserve and Guard men and women. This is important to maintaining the Guard as a critical component of our national security structure. We are currently running, in the Army Guard, about 24 percent below our recruiting goals. The commander of the Reserve not too long ago described his force as ``a broken force.'' At a time when we are relying upon the Guard and the Reserve more than ever before, we must ensure that we act to maintain our recruiting goals and to ensure the morale of the force. Many laudable private firms have risen to the challenge by providing for their employees but, regrettably, not all do so. About 29 percent of employers are currently doing that, but that still leaves the bulk of our Guard men and women and our reservists without, so we have acted to make up that gap. It is not a burden they could have reasonably anticipated, given the difference in callups today versus before. I again thank my distinguished colleagues, the Senator from Virginia and the Senator from Michigan. Once again, I thank my colleague Dick Durbin, who has been extremely gracious and who has been a strong leader in this capacity. I will conclude by saying the true test of a strong society is not only the armaments we purchase but how we support those who bear the burden of battle and their loved ones here at home. If we can help them pay the mortgage or keep food on the table while they are serving us in Iraq and Afghanistan and elsewhere, it is not only the intelligent thing to do, it is the morally responsible thing to do. That is what this amendment would accomplish. I thank my colleagues for their graciousness and their support.

Mr. BAYH. Mr. President, I have many of my colleagues to thank for their graciousness and for their attention to an issue of significant importance to our country. I would like to start with my friend and colleague, Dick Durbin from Illinois, who has cared about this issue for many years, particularly with regard to our Federal employees who are bearing the burden of battle today on our behalf just as they work for us in their civilian capacities here at home. Senator Durbin has been a model of comity and accommodation and in a body that is too often driven by other interests. I thank him profusely for his consideration here today. I also thank Senator Landrieu for her longstanding interest in this issue. She has had a somewhat different approach, but it would achieve the same objective--helping our Guard men and women and their families while they are serving our country. I also express my appreciation to the two leaders on the Armed Services Committee, Senators Warner and Levin, for their courtesy. I thank you for accepting our amendment. I know you share our conviction about doing right by our brave men and women in the Guard and Reserve, and I wish to express my personal appreciation for your accommodation in this regard. I know there are occasionally differences of opinion about some aspects of this, and the fact that we could work through them at this moment means a great deal to me, as I know it does to the families of the Guard men and women we are attempting to help.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today to tell you about the extraordinary young Hoosiers I met last month in Indianapolis. On October 22, National Make A Difference Day, I hosted my third annual Indiana Service Leaders Summit to honor high school students from across the State for their service and hopefully to inspire them to continue serving their communities throughout their lives. In their schools and their communities, the young men and women I met truly have answered the call to service. Some of them helped build homes, some tutored and mentored younger students, and others raised money to support cancer research or fed the hungry. Several of the young men and women started service clubs on their own to address the problems in their schools and communities. Each one of the students I met spent hours making a difference and together they have impacted the lives of countless Hoosiers. I was honored to have the opportunity to meet and speak with them. It was impressive and inspiring to learn about the many causes they support. Robert F. Kennedy once said, ``Some men see things as they are and say `Why?' I dream of things that never were and say, `Why not?''' Each one of these young men and women have already asked themselves ``Why not?'' and have worked to make positive changes in their communities. They represent a new generation of promise with the potential to make a real difference across Indiana and the Nation. During the summit, which was cohosted by Indiana University Purdue University Indianapolis, the students heard from Hoosier leaders who have chosen to dedicate their lives to serving others. The speakers highlighted the five pillars of successful service: inspiration, organization, dedication, evaluation, and reflection. Following the speeches, the students and I prepared more than 1,000 care packages with the assistance of the Salvation Army that will be sent to Hoosier troops serving in Iraq and Afghanistan. The students then divided into groups and participated in service activities at different sites throughout Indianapolis. I would like to thank each one of the following individuals for participating in the summit and for their service to their communities: Bradley Albachten, Amy Altemeyer, Joanna Barnett, Jessica Barnett, Chelsea Rae Baugher, Jessica Beckner, Kirsten Bedell, Marc Bergman, Erin Bess, Kortney Bogue, Kaitlin Bohlander, Kelly Bolt, Patrick Borders, Nicholas Brancolini, Emily Brunton, Neil Burk, Jessica Burton, Rohini Chatterjee, Danielle Clark, Desmon Clark, Timothy Cleaver, Nathan A. Click, Sean Cody, Lindsay Conner, John Copeland, James Corn, Michelle Cotlar, Aaron Desonia, Rachel M. Dragoo, Nicholas Eastrada, Andrew Fleenes, Ryan Gambill, Chrisopher Gibson, Brooke Gilbert, Jaime Gingerich, Annie Girdler, Char Glassley, Joseph David Goepfrich, Andy Goldblatt, Mark Halstead, Christin Hammond, Stacey Havlin, Madison Head, Ryan Heap, Katelyn Heighway, Chavonne Henderson, Erin Hendricks, Denise Hickman, Jennifer Hildenbrand, Heather Howard, Dustin Hull, Joel Hungate, Kelsey Jagoda, Bart Jarvis, Casey Jedrzejczak, James Jessen, Raymond Jones, Whitney Jones, Kristopher Kast, Daniel Kent, Caitlin Keusch, Emily Keusch, Sarah Knoth, Marsha Krisenko, Mirissa Krukowski, Blaine Kubit, Lacy Lane, Laura Linnemeier, Ranita Madison, Diane Matacale, T.J. McCan, Amber McCan, Katie McDaniel, Kala McKinney, Saralyn McKinnon-Crowley, Catherine McManus, Julie Mennel, Emma Meyer, John Miller, Bryan Miller, Michelle Miller, Brittanty Moser, Alicia Moser, Ashleigh Neal, Joseph O'Brien, Brittany Oliver, Ajay Patwari, Lisa Pluckebaum, Sarah Pine, Caleb Pope, Lauren Proffitt, Katie Rice, Ronald Richter Jr., Audra Roach, Brad Robertson, Ashley Robinson, Victoria Roby, Elisabeth Rudolph, Drew Schuster, Ben Scott, Gabrielle Seo, Kelsey Septoski, Nicholas Shepherd, Marisha Sherrard, Naina Singh, Corrina Smith, Amy Leigh Stark, Kristen Steele, Faye Stokes, Pamee Thao, Tara Thornburg, Rebecca Throwbridge, Abby Tueher, Keith A. Turner Jr., Martha Vance, Kaylee Vannatta, Zac Warren, Benjamin Waterman, Christina Weintraut, Rachel Werner, James Macklem Weston, Preston Wheelock, Renee White, Lauren Wilkins, Britne Wimmer, Tyler Witt, Josh Worch, Jerica Yingling, Taryn Paige Zubel. I would also like to take a moment to express my gratitude to the Indiana University Purdue University Indianapolis students who took part in the summit as well. They are role models to younger students and I am proud to recognize their achievements. I would like to thank each of the following IUPUI students for their participation: Katy Altman, Natasha Arora, Christopher Baire, Jennifer Behzadi, Alisha Borcherding, Michael Burk, Byron Clark, Brandy Cline, Rachel Dickinson, Una Dragic, Neal Foreman, Christine Furey, Andrea Guinn, Will Hartzell-Baird, Tiffany Holcey, Mallery Hornsby, Jayna Kadel, Jeffrey Mattingly, Andrew Oertel, Irina Perelmuter, Jayme Plude, Emily Puntenney, Rebecca Salley, Eddie Shmukler, Anita Sivam, Laura Sutton, Heather Teach, Lygia Vernon.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave young man from Kendallville. Christopher Monroe, 19 years old, died on October 25 in Basra, Iraq. With his entire life before him, Chris risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. Remembered for his strong family ties and devotion to the Army, Chris was killed while filling in for a friend on a convoy, a change from his typical desk job. After September 11, Chris had yearned to serve his country and follow in the family tradition of military service. He begged his mother to allow him to enlist early at age 17. The 2004 East Noble High School student had been in Iraq for only a couple months when he was killed. Friends and family recounted that Chris was an outgoing, generous young man who had given up his Christmas leave to allow others in his unit to be with their families for the holidays. His mother, Annette, told local media outlets that she was proud of her son and that he died doing what he was born to do. Chris was engaged and was planning an October 2006 wedding. Chris was killed while serving his country in Operation Iraqi Freedom. He was a member of the Army Reserve's 785th Military Police Battalion, based out of Fraser, MI. This brave young soldier leaves behind his father Perry Bolton II; his mother Annette Monroe; and his brothers Greg and Nick. Today, I join Chris's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Chris, a memory that will burn brightly during these continuing days of conflict and grief. Chris was known for his dedication to his family and his love of country. Today and always, Chris will be remembered by family members, friends, and fellow Hoosiers as a true American hero, and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Chris's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here. This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Chris's actions will live on far longer that any record of these words. It is my sad duty to enter the name of Christopher Monroe in the Congressional Record of the U.S. Senate for his service to this country and for his profound commitment to freedom, democracy and peace. When I think about this just cause in which we are engaged, and the unfortunate pain that comes with the loss of our heroes, I hope that families like Chris's can find comfort in the words of the prophet Isaiah who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Chris.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today to pay tribute to a community landmark in northern Indiana. The Studebaker National Museum is home to more than 114 years of automobile history, including four presidential carriages and several vehicles from the original Studebaker collection. The Studebaker name has been a significant part of the South Bend community since 1852 when the Studebaker brothers founded their blacksmith business. For more than a century, the Studebaker Corporation helped form the economic and social fabric of the area, employing tens of thousands of Hoosiers and providing classic affordable cars to thousands more. In 1966, the Studebaker Corporation donated its collection of rare and antique vehicles, beginning the automobile collection at the Studebaker National Museum. The collection has continued to grow since then, demonstrating both Studebaker's famous craftsmanship and innovative design, as well as the evolution of the automobile industry. The collection now tells the story of America's Industrial Age, bringing the era to life for Hoosiers and Americans from across the country. In addition to the educational and historical services it provides, the Studebaker National Museum is a committed leader in the development and growth of South Bend's vibrant economy and the revitalization of the Historic West Washington District. Soon, the Museum will be relocating into the Historic West Washington District. On the occasion of this move, I commend the Studebaker National Museum on their impressive service to the community thus far and wish them well in their new location.

Mr. BAYH

Mr. BAYH. Mr. President, I rise today with a heavy heart and deep sense of gratitude to honor the life of a brave soldier from Paxton. Matt Kimmell, 30 years old, died on October 11 in Muqdadiyah, Iraq, when an improvised explosive device exploded near the military vehicle in which he was riding. With so much of his life before him, Matt risked everything to fight for the values Americans hold close to our hearts, in a land halfway around the world. A man remembered for kindness, compassion, and deep faith, Matt joined the National Guard just 1 year after graduating from Faith Christian School in Carlisle. Soon committed to military life, he signed up for a tour of duty and was chosen to be an Army airborne ranger. When his training was over, he returned home, studied law enforcement at Vincennes University and joined the Vanderburgh County Sheriff's Department as a road patrol deputy, where he worked 3 years before reenlisting in the Army. Universally liked and admired, his friends and colleagues recounted that Matt had not joined the military for glory but rather because of his deep sense of right and wrong. Matt served as the newspaper carrier for the Sullivan Daily Times during his childhood in Paxton. Even as a young boy, customers remember him as prompt and diligent. All of his actions were underscored by his Christian faith. Three years ago, he married Mylissa Hall, a nurse from Worthington. He loved children and the couple planned to start a family when he returned from Iraq. A friend of Matt's told the Terre Haute Tribune Star, ``He broke the mold when they made him.'' Matt's small hometown has been hit hard by the death of one of their own. This week, townsfolk planted 542 small American flags down a half mile stretch in Matt's honor and they have started a fund to build a monument to him. Matt was killed while serving his country in Operation Iraqi Freedom. He was assigned to the 5th Special Forces Group, based at Fort Campbell, KY. This brave young soldier leaves behind his wife Mylissa; his father Pastor Larry Kimmell and his mother Jeanne; his brother Matt; and his sister Suzanne. Today, I join Matt's family and friends in mourning his death. While we struggle to bear our sorrow over this loss, we can also take pride in the example he set, bravely fighting to make the world a safer place. It is his courage and strength of character that people will remember when they think of Matt, a memory that will burn brightly during these continuing days of conflict and grief. Matt was known for his dedication to his family, his faith, and his love of country. Today and always, Matt will be remembered by family members, friends, and fellow Hoosiers as a true American hero and we honor the sacrifice he made while dutifully serving his country. As I search for words to do justice in honoring Matt's sacrifice, I am reminded of President Lincoln's remarks as he addressed the families of the fallen soldiers in Gettysburg: We cannot dedicate, we cannot consecrate, we cannot hallow this ground. The brave men, living and dead, who struggled here, have consecrated it, far above our poor power to add or detract. The world will little note nor long remember what we say here, but it can never forget what they did here. This statement is just as true today as it was nearly 150 years ago, as I am certain that the impact of Matt's actions will live on far longer than any record of these words. It is my sad duty to enter the name of Matt Kimmell in the Congressional Record of the U.S. Senate for his service to this country and for his profound commitment to freedom, democracy, and peace. When I think about this just cause in which we are engaged, and the unfortunate pain that comes with the loss of our heroes, I hope that families like Matt's can find comfort in the words of the prophet Isaiah who said, ``He will swallow up death in victory; and the Lord God will wipe away tears from off all faces.'' May God grant strength and peace to those who mourn, and may God be with all of you, as I know He is with Matt.

Mr. BAYH

Mr. BAYH. Mr. President, it is with a heavy heart that I wish to honor the life of a great man, Jim Kelley, who died Sunday, leaving behind a legacy of generosity and selflessness. He was known as a visionary businessman, a dedicated public servant, and a kind-hearted humanitarian. His friends and family will miss him dearly, and I know that sentiment is shared by countless others across Indiana and the country. Jim grew up during the Great Depression on a farm in northeast Indiana. Through hard work and study, Jim became a great business success, a position he used to support his many philanthropic efforts. There was hardly a Fort Wayne charity or non-profit that did not benefit from Jim's generosity. In addition to helping existing charities, Jim actively sought new ways to help the people in his community and even families halfway around the world. From creating a golf tournament to support local charities to organizing humanitarian trips to help foster families in the former Soviet Republic of Moldova, Jim's philanthropy had no boundaries. Jim believed in equality and worked hard to provide opportunities for all Hoosiers. When he purchased Brookwood Golf Club in the 1960s, it became the first privately owned course in the area to welcome African- American golfers. He was also a supporter of Union Baptist Church, the oldest African-American church in Fort Wayne. As Chairman of the Democratic Party in Allen County, Jim became one of the most influential Democrats in the County's history. His role helped restore the Democratic Party in Allen County and provided him with yet another avenue to improve the quality of life for area Hoosiers. There is a saying that life is not about what you take out of it, but what you put back in. Jim lived that sentiment to the fullest. He touched countless lives through his work, from local families in Fort Wayne to children an ocean away in Eastern Europe. While Jim was a leader in many aspects, including business, politics and community service, it is his generosity of spirit that Hoosiers will remember most. I am proud to be among the many Hoosiers to call him my friend, and I will miss him. Indiana lost a great man this week. It is my sad honor to enter the name of James Kelley in the official record of the U.S. Senate for his service to Indiana.

Mr. BAYH

Mr. BAYH. Mr. President, pursuant to section 904 of the Congressional Budget Act of 1974, I move to waive the applicable sections of that act for purposes of the pending amendment, and I ask for the yeas and nays.

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

Mr. BAYH. I thank my colleague from West Virginia.