John Kerry

Mr. KERRY

Mr. KERRY. Mr. President, I ask unanimous consent that this statement be printed in the record. Mr. President, I rise today to introduce the Minority Entrepreneurship Development Act of 2007. At the beginning of a new Congress it is important to set priorities for the nation because every new Congress brings with it the hope for a brighter future. One of the ways that this new Senate will lead is by creating opportunities for more Americans to pursue the American dream. As incoming Chair of the Small Business and Entrepreneurship Committee, I hope to help in that effort by fostering the development of entrepreneurship in minority communities. It's vital that current and future entrepreneurs from minority communities are given the opportunity to build their own piece of the American dream. I believe that this legislation the Minority Entrepreneurship Development Act of 2007 will help in that effort. I want to take a moment and tell you why it's so important to expand the numbers of entrepreneurs in the minority community. As a member of the Senate Committee on Small Business and Entrepreneurship, I have received firsthand testimony and countless reports documenting the positive economic impact that occurs when we foster entrepreneurship in under-served communities. There are signs of significant economic returns when minority businesses are created and are able to grow in size and capacity. Between 1987 and 1997, revenue from minority owned firms rose by 22.5 percent, an increase equivalent to an annual growth rate of 10 percent. Employment opportunities within minority owned firms increased by 23 percent during that same period. There is a clear correlation between the growth of minority owned firms and the economic viability of the minority community. Although these economic numbers tell a significant part of the story they don't tell the whole story of what these firms mean to the minority communities they serve and represent. Many of these business leaders are first generation immigrants; many are first generation business owners and many represent, for those in their communities, what hard work, determination and patience can do. We must encourage those kinds of values in our minority communities and, quite frankly, in our nation as a whole. For generations, millions have come to our shores in search of a better life. Millions of others were brought here by force and for years were not given a voice in how their lives would turn out. But, how ever we got here, we all have become branches of this great tree we call America. This tree is still nourished by roots planted by our forefathers more than 200 years ago. Those men and women planted the roots of hard work, innovation, faith and risk taking. When you think about it, those words are the perfect description of an entrepreneur. It is the spirit of entrepreneurship that has made our nation great. And that is why it is absolutely imperative that we continue to support and develop that spirit in our minority communities. To that end, this legislation provides several tools to help minority entrepreneurs as they develop and grow their businesses. First, this legislation will create an Office of Minority Small Business Development at the Small Business Administration. One of its primary functions will be to increase the number of small business loans that minority businesses receive. Latinos, African-Americans, Asian-Americans and women have been receiving far fewer small business loans than they reasonably should. To ensure that this trend is reversed and minorities begin to get a greater share of loan dollars, venture capital investments, counseling, and contracting opportunities, this bill will give the new office the authority to monitor the outcomes for SBA's Capital Access, Entrepreneurial Development, and Government Contracting programs. It also requires the head of the Office to work with SBA's partners, trade associations and business groups to identify more effective ways to market to minority business owners, and to work with the head of SBA's Field Operations to ensure that district offices have staff and resources to market to minorities. Second, this legislation will create the Minority Entrepreneurship and Innovation Pilot Program. This program will offer a competitive grant to Historically Black Colleges and Universities, Tribal Colleges, and Hispanic-Serving Institutions to create an entrepreneurship curriculum at these institutions and to open Small Business Development Centers on those campus' to serve local businesses. The goal of this program is to target students in highly skilled fields such as engineering, manufacturing, science and technology, and guide them towards entrepreneurship as a career option. Traditionally, minority-owned businesses are disproportionately represented in the service sectors. Promoting entrepreneurial education to undergraduate students will help expand business ownership beyond the service sectors to higher yielding technical and financial sectors. Third, this legislation will create the Minority Access to Information Distance Learning Pilot Program. This program will offer competitive grants to well established national minority non-profit and business organizations to create distance learning programs for small business owners who are interested in doing business with the federal government. The goal of this program is to provide low cost training to the many small business owners who cannot afford to pay a consultant thousands of dollars for advice or training on how to prepare themselves to contract with the Federal Government. There are thousands of small businesses in this country that are excellent and efficient. They are primed to provide the goods and services that this nation needs to stay competitive. This program will help prepare them to do just that. Finally, this legislation will extend the Socially and Economically Disadvantaged Business Program which expired in 2003. This program provides a price evaluation adjustment for socially and economically disadvantaged businesses as a way of increasing their competitiveness when bidding against larger firms. This is one more tool to increase opportunities for our minority small business owners. I have outlined several ways that we can create a more positive environment for our minority small business community. These are reasonable steps that we ought to take without delay. Moreover, these are important steps that will help bolster a movement that is already underway. According to U.S. Census data, Hispanics are opening businesses 3 times faster than the national average. Also, business development and entrepreneurship have played a significant role in the expansion of the black middle class in this country for over a century. These business owners are embodying the entrepreneurial spirit that our forefathers carried with them as they established this nation. With this legislation and in my role as incoming Chair of the Committee on Small Business and Entrepreneurship, I hope to play a part in helping to extend that spirit to the next generation of entrepreneurs. Not only is this vital for our minority communities, but it is vital for America. I urge my colleagues to join with me in support of the Minority Entrepreneurship Development Act of 2007. I ask unanimous consent that the text of the legislation be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, today I am introducing the Small Business Health Care Tax Credit Act which would provide small businesses with a refundable tax credit to help with the cost of providing employees with health insurance. Recent studies show that certain groups of individuals are less likely to have employer-provided health insurance. The 2006 Kaiser Family Foundation Employer Health Benefits Survey shows that since 2000 the number of firms offering health benefits has declined from 69 percent to 61 percent in 2006. This decline in coverage is more prevalent in small businesses. Only 48 percent of the firms with less than 10 employees offer health insurance whereas, 90 percent of the firms with 50 or more employees offer health benefits. Approximately 32 million Americans work for firms with fewer than 50 employees. The April 2006 Commonwealth Fund Biennial Health Insurance Survey concluded that 41 percent of working-age Americans with incomes between $20,000 and $40,000 were uninsured for at least part of the past year. This reflects a dramatic increase in this income range, up from 28 percent in 2001. The survey found that of the 48 million American adults who were uninsured in the past year, 67 percent were in families where at least one person worked full time. My legislation provides a refundable tax credit to small businesses designed to help provide coverage to those who are currently uninsured. Small businesses with less than 50 employees would be eligible to receive a tax credit to help with the cost of health care premiums for employees making more than $5,000 and less than $50,000 a year. To be eligible for the credit, the employer has to pay at least 50 percent of the health care insurance premium. The credit for businesses with fewer than 10 employees will be capped at 50 percent of the cost of the premium, and the credit amount decreases for larger businesses. Last year, Leonard Burman, Codirector of the Tax Policy Center, testified before the Senate Finance Committee and suggested a refundable tax credit as an incremental option to help defray higher administrative costs faced by small employers in purchasing health care. This credit will help small businesses afford health care premiums. It is a refundable credit, so that it will help new businesses that do not yet have taxable income be able to offer health care and provide struggling businesses with assistance so that they can offer health care. This tax credit will cut the cost of health insurance by up to 50 percent for small business owners. It will enable small businesses to provide health insurance for their low- and moderate-income employees. Until we can agree on a comprehensive proposal that will help reduce the cost of health care premiums for small businesses, this legislation provides an appropriate option for increasing health insurance coverage for small businesses and their employees. I ask for unanimous consent that the text of the legislation be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, today I am introducing legislation which addresses the individual alternative minimum tax (AMT) for 2007. Last Congress, a choice was made to extend lower capital gains and dividends rates that do not expire until the end of 2008 rather than address the AMT for 2007. My preference was to address the AMT for 2007 and I believe we still must take action to prevent taxpayers never intended to pay the AMT from being penalized this year. I opposed the Tax Increase Prevention and Reconciliation Act of 2005 because it contained the wrong priorities for America leaving behind working families and substantially adding to the deficit. This law extended the lower rates on capital gains and dividends for 2009 and 2010, but only addressed the individual AMT for 2006. According to the Joint Committee on Taxation, those earning $200,000 or more will receive 84 percent of the benefit of the capital gains tax cut and 63 percent of the benefit of the dividends tax cuts. According to the Congressional Budget Office, 42.8 percent of taxpayers with income between $50,000 and $100,000 will be impacted by the AMT if the AMT is not fixed for 2007 a number that increases to 66 percent by 2010. The Tax Increase Prevention and Reconciliation of Act of 2005 extends a tax cut that does not expire to the end of 2008 with a price tag of $50 billion, but fails to protect the hard working families that will be impacted by the AMT. These families were never intended to be impacted by the AMT, a tax originally designed to prevent a small number of high-income taxpayers from avoiding taxation. Today, I am introducing legislation that will address the AMT for 2007 and repeal the lower tax rates on capital dividends for 2009 and 2010. To calculate the AMT, individuals add back certain ``preference items'' to their regular tax liability. These include personal exemptions, the standard deduction, and the itemized deduction for state and local taxes. From this amount, taxpayers subtract the AMT exemption amount, commonly referred to as the ``patch'' which reverted to lower levels at the end of 2005. The Tax Increase Prevention and Reconciliation Act of 2005 increased and extended the patch for 2006. The patch was increased in order to hold the same number of taxpayers harmless from the AMT in 2006 as in 2005. The problem with the AMT is that while the regular tax system is indexed for inflation, the AMT exemption amounts and tax brackets remain constant. This has the perverse consequence of punishing taxpayers for the mere fact their incomes rose due to inflation. In 2001 Congress opted to provide more tax cuts to those with incomes of over $1 million rather than fix a looming tax problem for the middle class. The Economic Growth and Tax Relief Reconciliation Act of 2001 did include a small adjustment to the AMT, but it was not enough. And we knew then that the number of taxpayers subject to the AMT would continue to rise steadily because the combination of tax cuts and a minor adjustment to the AMT would cause the AMT to explode. We are rapidly approaching this explosion and without immediate action America's middle class will be harmed. My legislation extends and expands the AMT exemption amount for 2007 to prevent additional taxpayers from being impacted by the AMT. Without increasing and extending the AMT exemption for 2007, an additional 19.5 million taxpayers will be impacted by the AMT in 2007. Large families, with incomes as low as $49,438, will be hurt by the AMT. My legislation will allow nonrefundable personal credits such as the higher education tax credits and the dependent care credit against the AMT for 2007. This legislation is offset by repealing the lower rates on capital gains and dividends. My colleagues on the other side of the aisle have argued that the extension of the capital gains and dividends benefits is necessary to provide investor certainty. But I believe that the certainty of working families worried about paying the AMT should come first. About a third of long-term capital gains are reported by taxpayers who are impacted by the AMT and due to the interaction of the AMT, they do not fully benefit from the lower rates. Simply put, taxpayers forced to carry the AMT burden will not benefit from the lower capital gains and dividends rate. The AMT is a looming problem that is impacting hard-working families and for each year that we fail to address the AMT, it gets worse and more expensive. At a minimum we must address the AMT for 2007. My legislation is not a long-term cure to the AMT crisis, but it will provide certainty for 2007 to hard working families who will be impacted by the AMT just because of where they live and the number of children they have, and it will addresses the AMT in a revenue neutral manner for 2007 as well. We all agree that the AMT should not be impacting families with incomes below $100,000. My bill fixes the AMT for 2007 in a timely and fiscally responsible manner and gives Congress time to work in a bipartisan manner to find a fiscally responsible permanent solution to the AMT. I ask unanimous consent that the text of this bill be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, today, I am introducing the Restore a Rational Tax Rate on Petroleum Act of 2007. This legislation repeals the manufacturing deduction for big oil and gas companies that was enacted by Congress in 2004. I introduced this legislation in the 109th Congress and Congressman McDermott introduced companion legislation in the House. The domestic manufacturing deduction was designed to replace export- related tax benefits that were successfully challenged by the European Union. Producers of oil and gas did not benefit from this tax break. Initial legislation proposed to address the repeal of the export- related tax benefits and to replace them with a new domestic manufacturing deduction. That legislation only provided the deduction to industries that benefited from the export-related tax benefits. However, the final product extended the deduction to include the oil and gas industry as well. My bill repeals the manufacturing deduction for oil and gas companies because these industries suffered no detriment from the repeal of export-related tax benefits. At a time when oil companies are reporting mind-boggling record profits, there is no reason to reward them with a tax deduction. Like me, many Members of Congress support a windfall profits tax on big oil and gas companies. Providing this deduction to oil and gas companies actually functions as a reverse windfall profits tax. This deduction lowers the tax rates on the windfall profits that they are currently enjoying. And without Congressional action this benefit will increase: upon enactment, the domestic manufacturing deduction was three percent, but it increased to six percent in 2007 and it is scheduled to increase to nine percent in 2010. I urge my colleagues to support this legislation. We owe it to the American people to eliminate tax benefits to the oil industry at a time of record profits, record gas prices, and record deficits. I ask unanimous consent that the text of this bill be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, 16 months after Hurricane Katrina struck the Gulf Coast, small business owners in New Orleans and across Louisiana are still struggling to keep their doors open and their employees working. In those 16 months, I have worked with Senators Snowe, Landrieu, and Vitter to produce a comprehensive package to reform the SBA's Disaster Assistance program. The SBA's failed response in a time of unmatched need demonstrated to everyone that this program is broken and needs fixing. Immediately after Hurricane Katrina hit, I introduced an amendment with Senator Landrieu to the fiscal year 2006 Commerce, Justice and Science appropriations bill to address the needs of Gulf Region small business and homeowners. The amendment was adapted with input from Chair Snowe, and a subsequent bipartisan amendment passed the Senate with a vote of 96-0. Although the entire Senate supported the amendment, it was stripped out of the bill in conference. On September 30, 2005, I again worked with Chair Snowe and Senators Landrieu and Vitter to introduce a bipartisan proposal, the Small Business Hurricane Relief and Reconstruction Act of 2006 S. 1807. This proposal was opposed by the administration. In June, I introduced the Small Business Disaster Loan Reauthorization and Improvements Act of 2006, S. 3487 which once again attempted to comprehensively address the shortcomings of the SBA's Disaster Assistance program. Again, the administration opposed this effort. In August, the Small Business Committee unanimously reported S. 3778, the Small Business Reauthorization and Improvements Act of 2006, which again put forward a bipartisan, comprehensive fix for this program. Finally, in December, just prior to the adjournment of the 109th Congress, yet another attempt was made at reaching a bipartisan consensus with the introduction of S. 4097, the Small Business Disaster Response and Loan Improvements Act of 2006. The administration maintained its opposition to the fixes proposed in this bill. Now, on the first day of this new Congress, I am introducing the Small Business Disaster Response and Loan Improvements Act of 2007. Once again, this bill enjoys bipartisan support by the chair and the ranking minority member of the Small Business Committee, as well as by the Democratic and Republican Senators of Louisiana, whose constituents continue to wait for their Government to respond appropriately. I am introducing this bill on the first day of the 110th Congress because as the incoming chair of the Small Business Committee, improving the Disaster Assistance program at the SBA is among my top priorities. This bill includes directives for the SBA to create a private disaster loan program, to allow for lenders to issue disaster loans. To ensure that these loans are borrower-friendly, we provide authorization for appropriations so that the agency can subsidize the interest rates. In addition, the administrator is authorized to enter into agreements with private contractors in order to expedite loan application processing for direct disaster loans. The bill also includes language directing SBA to create an expedited disaster assistance loan program to provide businesses with short-term loans so that they may keep their doors open until they receive alternative forms of assistance. The days immediately following a disaster are crucial for business owners--statistics show that once they close their doors, they likely will not open them again. These short-term loans should help prevent those doors from closing. A presidential declaration of Catastrophic National Disaster will allow the administrator to offer economic injury disaster loans to adversely affected business owners beyond the geographic reach of the disaster area. In the event of a large-scale disaster, businesses located far from the physical reach of the disaster can be affected by the magnitude of a localized destruction. We saw this when the terrorist attacks of September 11, 2001 affected businesses from coast to coast, and we saw it again with the 2005 Gulf Coast hurricanes. Should another catastrophic disaster strike, the President should have the authority to provide businesses across the country with access to the same low-interest economic injury loans available to businesses within the declared disaster area. Non-profit entities working to provide services to victims should be rewarded and given access to the capital they require to continue their services. To this end, the administrator is authorized to make disaster loans to non-profit entities, including religious organizations. Construction and rebuilding contracts being awarded are likely to be larger than the current $2 million threshold currently applied to the SBA Surety Bond Program, which helps small construction firms gain access to contracts. This bill increases the guarantee against loss for small business contracts up to $5 million and allows the administrator to increase that level to $10 million, if deemed necessary. The bill also provides for Small Business Development Centers to offer business counseling in disaster areas, and to travel beyond traditional geographic boundaries to provide services during declared disasters. To encourage Small Business Development Centers located in disaster areas to keep their doors open, the maximum grant amount of $100,000 is waived. So that Congress may remain better aware of the status of the administration's disaster loan program, this bill directs the administration to report to the Committee on Small Business and Entrepreneurship of the Senate and to the Committee on Small Business of the House of Representatives regularly on the fiscal status of the disaster loan program as well as the need for supplemental funding. The adiministration is also directed to report on the number of Federal contracts awarded to small businesses, minority-owned small businesses, women-owned businesses, and local businesses during a disaster declaration. Finally, gas prices continue to fluctuate, and fuel-dependent small businesses are struggling with the cost of energy. This bill provides relief to small business owners during times of above average energy price increases, authorizing energy disaster loans through the Small Business Administration and the United States Department of Agriculture to companies that are dependent on fuel. In the 16 months since Katrina struck, I have visited New Orleans three times. I have met with the lifeblood of that city--its small business owners--the shopowners on Bourbon Street and on Magazine Street who make that city unique. The people of New Orleans are resilient, and they remain hopeful; they are keeping their businesses open despite tourism that has been slow to return and despite a government response that was painfully slow to arrive. Sixteen months is too long a time to wait to reform and improve a program that could have breathed relief into this city's economy during a time of desperation. As this new Congress begins, I call on my colleagues to support this legislation, a bipartisan labor of more than a year's worth of negotiations. The tools offered within this bill will go a long way toward heading off another Katrina-like response to any future catastrophic disaster. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, today the first bill I am introducing in the 110th Congress is the Kids Come First Act, legislation that would ensure every child in America has health care coverage. The Kids Come First Act was also the first bill I introduced in the 109th Congress and I feel just as strongly today as I did at the beginning of the last Congress that insuring all children must be a top agenda item. In the two years since I last introduced this bill, the problem of uninsured children in this nation has actually worsened. The 110th Congress faces many challenges, from the war in Iraq to lobbying reform. But perhaps no issue bears more directly on the lives of more Americans than health care reform. Today 47 million Americans are uninsured, including 11 million under age 21. Health care has become a slow-motion Katrina that is ruining lives and bankrupting families all over the country. We cannot stand by as the ranks of the uninsured rise and American families find themselves in peril. A recent Census Bureau report revealed that for the first time in almost a decade the number of uninsured children increased. In 2005 there were 361,000 children under the age of 18 added to the uninsured rolls. And the number of Americans without health care continues to rise. The Kids Come First Act calls for a Federal-State partnership to mandate health coverage to every child in America. The proposal makes the states an offer they can't refuse. The federal government will pay for the most expensive part: enrolling all low-income children in Medicaid, automatically. The states will pay to expand coverage to higher income children. In the end, states across the country will save more than $6 billion a year, and every child will have health care. It is totally unacceptable that, in the greatest country in the world, millions of children are not getting the health care they need. The Kids Come First Act expands coverage for children up to age of 21. Through expanding the programs that work, such as Medicaid and SCHIP, we can cover all eleven million children uninsured children. Insuring children improves their health and helps families cover the spiraling costs of insuring them. Covering all kids will reduce avoidable hospitalizations by 22 percent and replace expensive critical care with inexpensive preventative care. Also, when children get the medical attention they need, they pay much better attention in the classroom and studies show their performance improves. To pay for the expansion of health insurance for children, the Kids Come First Act includes a provision that provides the Secretary of Treasury with the authority to raise the highest income tax rate of 35 percent to a rate not higher than 39.6 percent in order to offset the costs. Prior to the enactment of the Economic Growth and Tax Relief Act Reconciliation Act of 2001, the top marginal rate was 39.6 percent. Less than one percent of taxpayers pay the top rate and for 2007, this rate only affects individual with income above $349,700. The health care of our children is a priority that we must address and it can be done in a fiscally responsible manner. I will continue to work to find ways to offset the cost of my proposal. The wealthiest of all Americans do not need a tax cut when 11 million children do not even have health insurance. President Bush has called for this rate cut to be made permanent, but I believe it would be a better use of our resources to invest in our future by improving health care for children. Since I first introduced the Kids Come First Act in the 109th Congress, more than 500,000 people have shown their support for the bill by becoming Citizen Cosponsors and another 20,000 Americans called into our ``Give Voices to Our Values'' hotline to share their personal stories. In addition, a coalition of 24 non-profit organizations representing 20 million people from across the country have endorsed Kids Come First, including the National Association of Children's Hospitals, the American Academy of Pediatrics, the American Academy of Family Physicians, March of Dimes, the Small Business Service Bureau, AFL-CIO, SEIU, and AFSCME. It is clear that providing health care coverage for our uninsured children is a priority for our nation's workers, businesses, and health care community. They know, as I do, that further delay only results in graver health problems for America's children. Their future, and ours, depends on us doing better. I urge my colleagues to support and help enacting the Kids Come First Act of 2007 during this Congress. I ask unanimous consent that the text of the Kids Come First Act of 2007 be printed in the Record.

Mr. KERRY. Mr. President, today I am introducing the ``Export Products Not Jobs Act.'' Our tax code is extremely complicated. In 1994, the IRS estimated that a family that itemized their deductions and had some interest and capital gains would spend 11\1/2\ hours preparing their Federal income tax return. A decade later in 2004, this estimate increased to 19 hours and 45 minutes. It is time for Congress to pass bipartisan tax legislation in the style of the Tax Reform Act of 1986, which greatly simplified the tax code. And our tax reform should be based upon the following three principles: fairness, simplicity, and opportunity for economic growth. Citizens and businesses struggle to comply with rules governing taxation of business income, capital gains, income phase-outs, extenders, the myriad savings vehicles, recordkeeping for itemized deductions, the alternative minimum tax (AMT), the earned income tax credit (EITC), and taxation of foreign business income. I believe that our international tax system needs to be simplified and reformed to encourage businesses to remain in the United States. And today, I am introducing legislation that I hope will be fully considered as we continue our discussions on tax reform. Presently, the complexities of our international tax system actually encourage U.S. corporations to invest overseas. Current tax laws allow companies to defer paying U.S. taxes on income earned by their foreign subsidiaries, which provides a substantial tax break for companies that move investment and jobs overseas. Today, under U.S. tax law, a company that is trying to decide where to locate production or services--either in the United States or in a foreign low-tax haven--is actually given a substantial tax incentive not only to move jobs overseas, but to reinvest profits permanently, as opposed to bringing the profits back to re-invest in the United States. Recent press articles have revealed examples of companies taking advantage of this perverse incentive in our tax code. For instance, some companies have taken advantage of this initiative by opening subsidiaries to serve markets throughout Europe. Much of the profit earned by these subsidiaries will stay in the European countries and the companies therefore avoid paying U.S. taxes. Other companies have announced the expansion of jobs in India. This reflects a continued pattern among some U.S. multinational companies of shifting software development and call centers to India, and this trend is starting to expand include the shifting critical functions like design and research and development to India as well. Some companies are even outsourcing the preparation of U.S. tax returns. The Export Products Not Jobs Act would put an to end to these practices by eliminating tax breaks that encourage companies to move jobs overseas and by using the savings to create jobs in the United States by repealing the top corporate rate. This legislation ends tax breaks that encourage companies to move jobs by: 1. eliminating the ability of companies to defer, paying U.S. taxes on foreign income; 2. closing abusive corporate tax loopholes; and 3. repealing the top corporate rate. It removes the incentive to shift jobs overseas by eliminating deferral so that companies pay taxes on their international income as they earn it, rather than being allowed to defer taxes. Last Congress, the Ways and Means Subcommittee on Revenue held a hearing on international tax laws. Stephen Shay, a former Reagan Treasury official, testified that our tax rules ``provide incentives to locate business activity outside the United States.'' Furthermore, he suggested that taxation of U.S. shareholders under an expansion of Subpart F would be a ``substantial improvement'' over our current system. The Export Products Not Jobs Act does just that. Our current tax system punishes U.S. companies that choose to create and maintain jobs in the United States. These companies pay higher taxes and suffer a competitive disadvantage with a company that chooses to move jobs to a foreign tax haven. There is no reason why our tax code should provide an incentive that encourages investment and job creation overseas. Under my legislation, companies would be taxed the same whether they invest abroad or at home; they will be taxed on their foreign subsidiary profits just like they are taxed on their domestic profits. This legislation reflects the most sweeping simplification of international taxes in over 40 years. Our economy has changed in the last 40 years and our tax laws need to be updated to keep pace. Our current global economy was not even envisioned when existing law was written. My Export Products Not Jobs Act will in no way hinder our global competitiveness. Companies will be able to continue to defer income they earn when they locate production in a foreign country that serves that foreign country's markets. For example, if a U.S. company wants to open a hotel in Bermuda or a car factory in India to sell cars, foreign income can still be deferred. But if a company wants to open a call center in India to answer calls from outside India or relocate abroad to sell cars back to the United States or Canada, the company must pay taxes just like call centers and auto manufacturers located in the United States. Currently, American companies allocate their revenue not in search of the highest return, but in search of lower taxes. Eliminating deferral will improve the efficiency of the economy by making taxes neutral so that they do not encourage companies to overinvest abroad solely for tax reasons. The Congressional Research Service stated in a 2003 report that, ``[a]ccording to traditional economic theory, deferral thus reduces economic welfare by encouraging firms to undertake overseas investments that are less productive--before taxes are considered--than alternative investments in the United States.'' Additionally, a 2000 Department of Treasury study on deferral stated, ``[a]mong all of the options considered, ending deferral would also be likely to have the most positive long-term effect on economic efficiency and welfare because it would do the most to eliminate tax considerations from decisions regarding the location of investment.'' The ``Export Products Not Jobs Act'' would modify the rules for determining residency for publicly-traded companies by basing a corporation's residence on the location of its primary place of management and control. This will prevent companies from locating in tax havens, but basically maintaining their operations in the United States. This provision should not hinder foreign investment in the United States. Existing companies that are incorporated in foreign countries with a comprehensive tax treaty with the United States will not be affected by this provision. Massachusetts is an example of a state that benefits from foreign investment. Two foreign companies have recently expanded investment in Massachusetts. Our tax system should not discourage foreign investment, but it should not encourage companies to locate in tax havens. The revenue raised from the repeal of deferral and closing corporate loopholes would be used to repeal the top corporate tax rate of 35 percent. The tax differential between U.S. corporate rates and foreign corporate rates has grown over the last two decades and the repeal of the top corporate rate is a start in narrowing this gap. The Export Products Not Jobs Act would promote equity among U.S. taxpayers by ensuring that corporations could not eliminate or substantially reduce taxation of foreign income by separately incorporating their foreign operations. This legislation will eliminate the tax incentives to encourage U.S. companies to invest abroad and reward those companies that have chosen to invest in the United States. I urge my colleagues to join me in this effort, and I ask unanimous consent that summary of the Export Products Not Jobs Act, as well as the text of the legislation, be printed in the Record.

Mr. KERRY. Mr. President, today I am introducing the College Opportunity Tax Credit Act of 2007. This legislation creates a new tax credit that will put the cost of higher education in reach for American families. An October 2006 College Board report found that this year tuition and other costs at public and private universities rose faster than inflation. And, according to the report, tuition and fees at public universities rose more in the past five years than at any other time in the past 30 years, increasing by 35 percent to $5,836 this academic year. Over the same time period, tuition and fees at private universities increased 22 percent to $22,218. Unfortunately, neither student aid funds nor family incomes are keeping pace with increasing tuition and fees. In my travels around the country, I frequently hear from parents concerned they will not be able to pay for their children's college. These parents know that earning a college education will result in greater earnings for their children and they desperately want to ensure their kids have the greatest opportunities possible. In 1997, we implemented two new tax credits to make college affordable--the HOPE Credit and the Lifetime Learning Credit. These tax credits were important and have put college in reach for families, but I believe we can do more. In December, the Senate Finance Committee held a hearing on tax incentives for higher education in which we learned that the existing tax credits are not reaching enough students, particularly lower-income students who are most severely impacted by rising tuitions. The HOPE and Lifetime Learning credits are not refundable, and therefore a family of four must have an income over $30,000 in order to receive the maximum credit. Almost half of families with college students fail to receive the full credit because their income is too low. In order to receive the full benefit of the Lifetime Learning credit, a student has to spend $10,000 a year on tuition and fees. This is nearly double the average annual public four-year college tuition and four times the average annual tuition of a community college. Over 80 percent of college students attend schools with tuition and fees under $10,000. In 2004, I proposed a refundable tax credit to help pay for the cost of four years of college. Currently the HOPE Credit applies only to the first two years of college. The College Opportunity Tax Credit Act of 2007 (COTC) helps students and parents afford all four years of college. It also builds on the proposal I made in 2004 by incorporating some of the suggestions made by experts, including those at this week's Finance Committee hearing. My legislation creates a new credit that replaces the existing HOPE credit and Lifetime Learning credit and ultimately makes these benefits more generous. The COTC has two components. The first provides a refundable tax credit for a student enrolled in a degree program at least on a half- time basis. It would provide a 100 percent tax credit for the first $1,000 of eligible expenses and a 50 percent tax credit to the next $3,000 of expenses. The maximum credit would be $2,500 each year per student. The second provides a nonrefundable tax credit for part-time students, graduate students, and other students that do not qualify for the refundable tax credit. It provides a 40 percent credit for the first $1,000 of eligible expenses and a 20 percent credit for the next $3,000 of expenses. Both of these credits can be used for expenses associated with tuition and fees. The same income limits that apply to the HOPE credit and the Lifetime Learning credit apply to the COTC; the COTC will be phased out ratably for taxpayers with income between $45,000 and $55,000 ($90,000 and $110,000 for married taxpayers). These amounts are indexed for inflation, as are the eligible amounts of expenses. The College Opportunity Tax Credit Act of 2007 simplifies the existing credits that make higher education more affordable and will enable more students to be eligible for tax relief. I understand that many of my colleagues are interested in making college more affordable. I look forward to working with my colleagues to make a refundable tax credit for college education a reality this Congress. I ask unanimous consent that the text of the bill be printed in the Record.

Mr. KERRY. Mr. President, I ask unanimous consent that this statement be printed in the record. Mr. President, I rise today to introduce the Minority Entrepreneurship Development Act of 2007. At the beginning of a new Congress it is important to set priorities for the nation because every new Congress brings with it the hope for a brighter future. One of the ways that this new Senate will lead is by creating opportunities for more Americans to pursue the American dream. As incoming Chair of the Small Business and Entrepreneurship Committee, I hope to help in that effort by fostering the development of entrepreneurship in minority communities. It's vital that current and future entrepreneurs from minority communities are given the opportunity to build their own piece of the American dream. I believe that this legislation the Minority Entrepreneurship Development Act of 2007 will help in that effort. I want to take a moment and tell you why it's so important to expand the numbers of entrepreneurs in the minority community. As a member of the Senate Committee on Small Business and Entrepreneurship, I have received firsthand testimony and countless reports documenting the positive economic impact that occurs when we foster entrepreneurship in under-served communities. There are signs of significant economic returns when minority businesses are created and are able to grow in size and capacity. Between 1987 and 1997, revenue from minority owned firms rose by 22.5 percent, an increase equivalent to an annual growth rate of 10 percent. Employment opportunities within minority owned firms increased by 23 percent during that same period. There is a clear correlation between the growth of minority owned firms and the economic viability of the minority community. Although these economic numbers tell a significant part of the story they don't tell the whole story of what these firms mean to the minority communities they serve and represent. Many of these business leaders are first generation immigrants; many are first generation business owners and many represent, for those in their communities, what hard work, determination and patience can do. We must encourage those kinds of values in our minority communities and, quite frankly, in our nation as a whole. For generations, millions have come to our shores in search of a better life. Millions of others were brought here by force and for years were not given a voice in how their lives would turn out. But, how ever we got here, we all have become branches of this great tree we call America. This tree is still nourished by roots planted by our forefathers more than 200 years ago. Those men and women planted the roots of hard work, innovation, faith and risk taking. When you think about it, those words are the perfect description of an entrepreneur. It is the spirit of entrepreneurship that has made our nation great. And that is why it is absolutely imperative that we continue to support and develop that spirit in our minority communities. To that end, this legislation provides several tools to help minority entrepreneurs as they develop and grow their businesses. First, this legislation will create an Office of Minority Small Business Development at the Small Business Administration. One of its primary functions will be to increase the number of small business loans that minority businesses receive. Latinos, African-Americans, Asian-Americans and women have been receiving far fewer small business loans than they reasonably should. To ensure that this trend is reversed and minorities begin to get a greater share of loan dollars, venture capital investments, counseling, and contracting opportunities, this bill will give the new office the authority to monitor the outcomes for SBA's Capital Access, Entrepreneurial Development, and Government Contracting programs. It also requires the head of the Office to work with SBA's partners, trade associations and business groups to identify more effective ways to market to minority business owners, and to work with the head of SBA's Field Operations to ensure that district offices have staff and resources to market to minorities. Second, this legislation will create the Minority Entrepreneurship and Innovation Pilot Program. This program will offer a competitive grant to Historically Black Colleges and Universities, Tribal Colleges, and Hispanic-Serving Institutions to create an entrepreneurship curriculum at these institutions and to open Small Business Development Centers on those campus' to serve local businesses. The goal of this program is to target students in highly skilled fields such as engineering, manufacturing, science and technology, and guide them towards entrepreneurship as a career option. Traditionally, minority-owned businesses are disproportionately represented in the service sectors. Promoting entrepreneurial education to undergraduate students will help expand business ownership beyond the service sectors to higher yielding technical and financial sectors. Third, this legislation will create the Minority Access to Information Distance Learning Pilot Program. This program will offer competitive grants to well established national minority non-profit and business organizations to create distance learning programs for small business owners who are interested in doing business with the federal government. The goal of this program is to provide low cost training to the many small business owners who cannot afford to pay a consultant thousands of dollars for advice or training on how to prepare themselves to contract with the Federal Government. There are thousands of small businesses in this country that are excellent and efficient. They are primed to provide the goods and services that this nation needs to stay competitive. This program will help prepare them to do just that. Finally, this legislation will extend the Socially and Economically Disadvantaged Business Program which expired in 2003. This program provides a price evaluation adjustment for socially and economically disadvantaged businesses as a way of increasing their competitiveness when bidding against larger firms. This is one more tool to increase opportunities for our minority small business owners. I have outlined several ways that we can create a more positive environment for our minority small business community. These are reasonable steps that we ought to take without delay. Moreover, these are important steps that will help bolster a movement that is already underway. According to U.S. Census data, Hispanics are opening businesses 3 times faster than the national average. Also, business development and entrepreneurship have played a significant role in the expansion of the black middle class in this country for over a century. These business owners are embodying the entrepreneurial spirit that our forefathers carried with them as they established this nation. With this legislation and in my role as incoming Chair of the Committee on Small Business and Entrepreneurship, I hope to play a part in helping to extend that spirit to the next generation of entrepreneurs. Not only is this vital for our minority communities, but it is vital for America. I urge my colleagues to join with me in support of the Minority Entrepreneurship Development Act of 2007. I ask unanimous consent that the text of the legislation be printed in the Record.

Mr. KERRY. Mr. President, today I am introducing the Small Business Health Care Tax Credit Act which would provide small businesses with a refundable tax credit to help with the cost of providing employees with health insurance. Recent studies show that certain groups of individuals are less likely to have employer-provided health insurance. The 2006 Kaiser Family Foundation Employer Health Benefits Survey shows that since 2000 the number of firms offering health benefits has declined from 69 percent to 61 percent in 2006. This decline in coverage is more prevalent in small businesses. Only 48 percent of the firms with less than 10 employees offer health insurance whereas, 90 percent of the firms with 50 or more employees offer health benefits. Approximately 32 million Americans work for firms with fewer than 50 employees. The April 2006 Commonwealth Fund Biennial Health Insurance Survey concluded that 41 percent of working-age Americans with incomes between $20,000 and $40,000 were uninsured for at least part of the past year. This reflects a dramatic increase in this income range, up from 28 percent in 2001. The survey found that of the 48 million American adults who were uninsured in the past year, 67 percent were in families where at least one person worked full time. My legislation provides a refundable tax credit to small businesses designed to help provide coverage to those who are currently uninsured. Small businesses with less than 50 employees would be eligible to receive a tax credit to help with the cost of health care premiums for employees making more than $5,000 and less than $50,000 a year. To be eligible for the credit, the employer has to pay at least 50 percent of the health care insurance premium. The credit for businesses with fewer than 10 employees will be capped at 50 percent of the cost of the premium, and the credit amount decreases for larger businesses. Last year, Leonard Burman, Codirector of the Tax Policy Center, testified before the Senate Finance Committee and suggested a refundable tax credit as an incremental option to help defray higher administrative costs faced by small employers in purchasing health care. This credit will help small businesses afford health care premiums. It is a refundable credit, so that it will help new businesses that do not yet have taxable income be able to offer health care and provide struggling businesses with assistance so that they can offer health care. This tax credit will cut the cost of health insurance by up to 50 percent for small business owners. It will enable small businesses to provide health insurance for their low- and moderate-income employees. Until we can agree on a comprehensive proposal that will help reduce the cost of health care premiums for small businesses, this legislation provides an appropriate option for increasing health insurance coverage for small businesses and their employees. I ask for unanimous consent that the text of the legislation be printed in the Record.

Mr. KERRY. Mr. President, today I am introducing legislation which addresses the individual alternative minimum tax (AMT) for 2007. Last Congress, a choice was made to extend lower capital gains and dividends rates that do not expire until the end of 2008 rather than address the AMT for 2007. My preference was to address the AMT for 2007 and I believe we still must take action to prevent taxpayers never intended to pay the AMT from being penalized this year. I opposed the Tax Increase Prevention and Reconciliation Act of 2005 because it contained the wrong priorities for America leaving behind working families and substantially adding to the deficit. This law extended the lower rates on capital gains and dividends for 2009 and 2010, but only addressed the individual AMT for 2006. According to the Joint Committee on Taxation, those earning $200,000 or more will receive 84 percent of the benefit of the capital gains tax cut and 63 percent of the benefit of the dividends tax cuts. According to the Congressional Budget Office, 42.8 percent of taxpayers with income between $50,000 and $100,000 will be impacted by the AMT if the AMT is not fixed for 2007 a number that increases to 66 percent by 2010. The Tax Increase Prevention and Reconciliation of Act of 2005 extends a tax cut that does not expire to the end of 2008 with a price tag of $50 billion, but fails to protect the hard working families that will be impacted by the AMT. These families were never intended to be impacted by the AMT, a tax originally designed to prevent a small number of high-income taxpayers from avoiding taxation. Today, I am introducing legislation that will address the AMT for 2007 and repeal the lower tax rates on capital dividends for 2009 and 2010. To calculate the AMT, individuals add back certain ``preference items'' to their regular tax liability. These include personal exemptions, the standard deduction, and the itemized deduction for state and local taxes. From this amount, taxpayers subtract the AMT exemption amount, commonly referred to as the ``patch'' which reverted to lower levels at the end of 2005. The Tax Increase Prevention and Reconciliation Act of 2005 increased and extended the patch for 2006. The patch was increased in order to hold the same number of taxpayers harmless from the AMT in 2006 as in 2005. The problem with the AMT is that while the regular tax system is indexed for inflation, the AMT exemption amounts and tax brackets remain constant. This has the perverse consequence of punishing taxpayers for the mere fact their incomes rose due to inflation. In 2001 Congress opted to provide more tax cuts to those with incomes of over $1 million rather than fix a looming tax problem for the middle class. The Economic Growth and Tax Relief Reconciliation Act of 2001 did include a small adjustment to the AMT, but it was not enough. And we knew then that the number of taxpayers subject to the AMT would continue to rise steadily because the combination of tax cuts and a minor adjustment to the AMT would cause the AMT to explode. We are rapidly approaching this explosion and without immediate action America's middle class will be harmed. My legislation extends and expands the AMT exemption amount for 2007 to prevent additional taxpayers from being impacted by the AMT. Without increasing and extending the AMT exemption for 2007, an additional 19.5 million taxpayers will be impacted by the AMT in 2007. Large families, with incomes as low as $49,438, will be hurt by the AMT. My legislation will allow nonrefundable personal credits such as the higher education tax credits and the dependent care credit against the AMT for 2007. This legislation is offset by repealing the lower rates on capital gains and dividends. My colleagues on the other side of the aisle have argued that the extension of the capital gains and dividends benefits is necessary to provide investor certainty. But I believe that the certainty of working families worried about paying the AMT should come first. About a third of long-term capital gains are reported by taxpayers who are impacted by the AMT and due to the interaction of the AMT, they do not fully benefit from the lower rates. Simply put, taxpayers forced to carry the AMT burden will not benefit from the lower capital gains and dividends rate. The AMT is a looming problem that is impacting hard-working families and for each year that we fail to address the AMT, it gets worse and more expensive. At a minimum we must address the AMT for 2007. My legislation is not a long-term cure to the AMT crisis, but it will provide certainty for 2007 to hard working families who will be impacted by the AMT just because of where they live and the number of children they have, and it will addresses the AMT in a revenue neutral manner for 2007 as well. We all agree that the AMT should not be impacting families with incomes below $100,000. My bill fixes the AMT for 2007 in a timely and fiscally responsible manner and gives Congress time to work in a bipartisan manner to find a fiscally responsible permanent solution to the AMT. I ask unanimous consent that the text of this bill be printed in the Record.

Mr. KERRY. Mr. President, today, I am introducing the Restore a Rational Tax Rate on Petroleum Act of 2007. This legislation repeals the manufacturing deduction for big oil and gas companies that was enacted by Congress in 2004. I introduced this legislation in the 109th Congress and Congressman McDermott introduced companion legislation in the House. The domestic manufacturing deduction was designed to replace export- related tax benefits that were successfully challenged by the European Union. Producers of oil and gas did not benefit from this tax break. Initial legislation proposed to address the repeal of the export- related tax benefits and to replace them with a new domestic manufacturing deduction. That legislation only provided the deduction to industries that benefited from the export-related tax benefits. However, the final product extended the deduction to include the oil and gas industry as well. My bill repeals the manufacturing deduction for oil and gas companies because these industries suffered no detriment from the repeal of export-related tax benefits. At a time when oil companies are reporting mind-boggling record profits, there is no reason to reward them with a tax deduction. Like me, many Members of Congress support a windfall profits tax on big oil and gas companies. Providing this deduction to oil and gas companies actually functions as a reverse windfall profits tax. This deduction lowers the tax rates on the windfall profits that they are currently enjoying. And without Congressional action this benefit will increase: upon enactment, the domestic manufacturing deduction was three percent, but it increased to six percent in 2007 and it is scheduled to increase to nine percent in 2010. I urge my colleagues to support this legislation. We owe it to the American people to eliminate tax benefits to the oil industry at a time of record profits, record gas prices, and record deficits. I ask unanimous consent that the text of this bill be printed in the Record.

Mr. KERRY. Mr. President, 16 months after Hurricane Katrina struck the Gulf Coast, small business owners in New Orleans and across Louisiana are still struggling to keep their doors open and their employees working. In those 16 months, I have worked with Senators Snowe, Landrieu, and Vitter to produce a comprehensive package to reform the SBA's Disaster Assistance program. The SBA's failed response in a time of unmatched need demonstrated to everyone that this program is broken and needs fixing. Immediately after Hurricane Katrina hit, I introduced an amendment with Senator Landrieu to the fiscal year 2006 Commerce, Justice and Science appropriations bill to address the needs of Gulf Region small business and homeowners. The amendment was adapted with input from Chair Snowe, and a subsequent bipartisan amendment passed the Senate with a vote of 96-0. Although the entire Senate supported the amendment, it was stripped out of the bill in conference. On September 30, 2005, I again worked with Chair Snowe and Senators Landrieu and Vitter to introduce a bipartisan proposal, the Small Business Hurricane Relief and Reconstruction Act of 2006 S. 1807. This proposal was opposed by the administration. In June, I introduced the Small Business Disaster Loan Reauthorization and Improvements Act of 2006, S. 3487 which once again attempted to comprehensively address the shortcomings of the SBA's Disaster Assistance program. Again, the administration opposed this effort. In August, the Small Business Committee unanimously reported S. 3778, the Small Business Reauthorization and Improvements Act of 2006, which again put forward a bipartisan, comprehensive fix for this program. Finally, in December, just prior to the adjournment of the 109th Congress, yet another attempt was made at reaching a bipartisan consensus with the introduction of S. 4097, the Small Business Disaster Response and Loan Improvements Act of 2006. The administration maintained its opposition to the fixes proposed in this bill. Now, on the first day of this new Congress, I am introducing the Small Business Disaster Response and Loan Improvements Act of 2007. Once again, this bill enjoys bipartisan support by the chair and the ranking minority member of the Small Business Committee, as well as by the Democratic and Republican Senators of Louisiana, whose constituents continue to wait for their Government to respond appropriately. I am introducing this bill on the first day of the 110th Congress because as the incoming chair of the Small Business Committee, improving the Disaster Assistance program at the SBA is among my top priorities. This bill includes directives for the SBA to create a private disaster loan program, to allow for lenders to issue disaster loans. To ensure that these loans are borrower-friendly, we provide authorization for appropriations so that the agency can subsidize the interest rates. In addition, the administrator is authorized to enter into agreements with private contractors in order to expedite loan application processing for direct disaster loans. The bill also includes language directing SBA to create an expedited disaster assistance loan program to provide businesses with short-term loans so that they may keep their doors open until they receive alternative forms of assistance. The days immediately following a disaster are crucial for business owners--statistics show that once they close their doors, they likely will not open them again. These short-term loans should help prevent those doors from closing. A presidential declaration of Catastrophic National Disaster will allow the administrator to offer economic injury disaster loans to adversely affected business owners beyond the geographic reach of the disaster area. In the event of a large-scale disaster, businesses located far from the physical reach of the disaster can be affected by the magnitude of a localized destruction. We saw this when the terrorist attacks of September 11, 2001 affected businesses from coast to coast, and we saw it again with the 2005 Gulf Coast hurricanes. Should another catastrophic disaster strike, the President should have the authority to provide businesses across the country with access to the same low-interest economic injury loans available to businesses within the declared disaster area. Non-profit entities working to provide services to victims should be rewarded and given access to the capital they require to continue their services. To this end, the administrator is authorized to make disaster loans to non-profit entities, including religious organizations. Construction and rebuilding contracts being awarded are likely to be larger than the current $2 million threshold currently applied to the SBA Surety Bond Program, which helps small construction firms gain access to contracts. This bill increases the guarantee against loss for small business contracts up to $5 million and allows the administrator to increase that level to $10 million, if deemed necessary. The bill also provides for Small Business Development Centers to offer business counseling in disaster areas, and to travel beyond traditional geographic boundaries to provide services during declared disasters. To encourage Small Business Development Centers located in disaster areas to keep their doors open, the maximum grant amount of $100,000 is waived. So that Congress may remain better aware of the status of the administration's disaster loan program, this bill directs the administration to report to the Committee on Small Business and Entrepreneurship of the Senate and to the Committee on Small Business of the House of Representatives regularly on the fiscal status of the disaster loan program as well as the need for supplemental funding. The adiministration is also directed to report on the number of Federal contracts awarded to small businesses, minority-owned small businesses, women-owned businesses, and local businesses during a disaster declaration. Finally, gas prices continue to fluctuate, and fuel-dependent small businesses are struggling with the cost of energy. This bill provides relief to small business owners during times of above average energy price increases, authorizing energy disaster loans through the Small Business Administration and the United States Department of Agriculture to companies that are dependent on fuel. In the 16 months since Katrina struck, I have visited New Orleans three times. I have met with the lifeblood of that city--its small business owners--the shopowners on Bourbon Street and on Magazine Street who make that city unique. The people of New Orleans are resilient, and they remain hopeful; they are keeping their businesses open despite tourism that has been slow to return and despite a government response that was painfully slow to arrive. Sixteen months is too long a time to wait to reform and improve a program that could have breathed relief into this city's economy during a time of desperation. As this new Congress begins, I call on my colleagues to support this legislation, a bipartisan labor of more than a year's worth of negotiations. The tools offered within this bill will go a long way toward heading off another Katrina-like response to any future catastrophic disaster. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, today the first bill I am introducing in the 110th Congress is the Kids Come First Act, legislation that would ensure every child in America has health care coverage. The Kids Come First Act was also the first bill I introduced in the 109th Congress and I feel just as strongly today as I did at the beginning of the last Congress that insuring all children must be a top agenda item. In the two years since I last introduced this bill, the problem of uninsured children in this nation has actually worsened. The 110th Congress faces many challenges, from the war in Iraq to lobbying reform. But perhaps no issue bears more directly on the lives of more Americans than health care reform. Today 47 million Americans are uninsured, including 11 million under age 21. Health care has become a slow-motion Katrina that is ruining lives and bankrupting families all over the country. We cannot stand by as the ranks of the uninsured rise and American families find themselves in peril. A recent Census Bureau report revealed that for the first time in almost a decade the number of uninsured children increased. In 2005 there were 361,000 children under the age of 18 added to the uninsured rolls. And the number of Americans without health care continues to rise. The Kids Come First Act calls for a Federal-State partnership to mandate health coverage to every child in America. The proposal makes the states an offer they can't refuse. The federal government will pay for the most expensive part: enrolling all low-income children in Medicaid, automatically. The states will pay to expand coverage to higher income children. In the end, states across the country will save more than $6 billion a year, and every child will have health care. It is totally unacceptable that, in the greatest country in the world, millions of children are not getting the health care they need. The Kids Come First Act expands coverage for children up to age of 21. Through expanding the programs that work, such as Medicaid and SCHIP, we can cover all eleven million children uninsured children. Insuring children improves their health and helps families cover the spiraling costs of insuring them. Covering all kids will reduce avoidable hospitalizations by 22 percent and replace expensive critical care with inexpensive preventative care. Also, when children get the medical attention they need, they pay much better attention in the classroom and studies show their performance improves. To pay for the expansion of health insurance for children, the Kids Come First Act includes a provision that provides the Secretary of Treasury with the authority to raise the highest income tax rate of 35 percent to a rate not higher than 39.6 percent in order to offset the costs. Prior to the enactment of the Economic Growth and Tax Relief Act Reconciliation Act of 2001, the top marginal rate was 39.6 percent. Less than one percent of taxpayers pay the top rate and for 2007, this rate only affects individual with income above $349,700. The health care of our children is a priority that we must address and it can be done in a fiscally responsible manner. I will continue to work to find ways to offset the cost of my proposal. The wealthiest of all Americans do not need a tax cut when 11 million children do not even have health insurance. President Bush has called for this rate cut to be made permanent, but I believe it would be a better use of our resources to invest in our future by improving health care for children. Since I first introduced the Kids Come First Act in the 109th Congress, more than 500,000 people have shown their support for the bill by becoming Citizen Cosponsors and another 20,000 Americans called into our ``Give Voices to Our Values'' hotline to share their personal stories. In addition, a coalition of 24 non-profit organizations representing 20 million people from across the country have endorsed Kids Come First, including the National Association of Children's Hospitals, the American Academy of Pediatrics, the American Academy of Family Physicians, March of Dimes, the Small Business Service Bureau, AFL-CIO, SEIU, and AFSCME. It is clear that providing health care coverage for our uninsured children is a priority for our nation's workers, businesses, and health care community. They know, as I do, that further delay only results in graver health problems for America's children. Their future, and ours, depends on us doing better. I urge my colleagues to support and help enacting the Kids Come First Act of 2007 during this Congress. I ask unanimous consent that the text of the Kids Come First Act of 2007 be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, today I am introducing the ``Export Products Not Jobs Act.'' Our tax code is extremely complicated. In 1994, the IRS estimated that a family that itemized their deductions and had some interest and capital gains would spend 11\1/2\ hours preparing their Federal income tax return. A decade later in 2004, this estimate increased to 19 hours and 45 minutes. It is time for Congress to pass bipartisan tax legislation in the style of the Tax Reform Act of 1986, which greatly simplified the tax code. And our tax reform should be based upon the following three principles: fairness, simplicity, and opportunity for economic growth. Citizens and businesses struggle to comply with rules governing taxation of business income, capital gains, income phase-outs, extenders, the myriad savings vehicles, recordkeeping for itemized deductions, the alternative minimum tax (AMT), the earned income tax credit (EITC), and taxation of foreign business income. I believe that our international tax system needs to be simplified and reformed to encourage businesses to remain in the United States. And today, I am introducing legislation that I hope will be fully considered as we continue our discussions on tax reform. Presently, the complexities of our international tax system actually encourage U.S. corporations to invest overseas. Current tax laws allow companies to defer paying U.S. taxes on income earned by their foreign subsidiaries, which provides a substantial tax break for companies that move investment and jobs overseas. Today, under U.S. tax law, a company that is trying to decide where to locate production or services--either in the United States or in a foreign low-tax haven--is actually given a substantial tax incentive not only to move jobs overseas, but to reinvest profits permanently, as opposed to bringing the profits back to re-invest in the United States. Recent press articles have revealed examples of companies taking advantage of this perverse incentive in our tax code. For instance, some companies have taken advantage of this initiative by opening subsidiaries to serve markets throughout Europe. Much of the profit earned by these subsidiaries will stay in the European countries and the companies therefore avoid paying U.S. taxes. Other companies have announced the expansion of jobs in India. This reflects a continued pattern among some U.S. multinational companies of shifting software development and call centers to India, and this trend is starting to expand include the shifting critical functions like design and research and development to India as well. Some companies are even outsourcing the preparation of U.S. tax returns. The Export Products Not Jobs Act would put an to end to these practices by eliminating tax breaks that encourage companies to move jobs overseas and by using the savings to create jobs in the United States by repealing the top corporate rate. This legislation ends tax breaks that encourage companies to move jobs by: 1. eliminating the ability of companies to defer, paying U.S. taxes on foreign income; 2. closing abusive corporate tax loopholes; and 3. repealing the top corporate rate. It removes the incentive to shift jobs overseas by eliminating deferral so that companies pay taxes on their international income as they earn it, rather than being allowed to defer taxes. Last Congress, the Ways and Means Subcommittee on Revenue held a hearing on international tax laws. Stephen Shay, a former Reagan Treasury official, testified that our tax rules ``provide incentives to locate business activity outside the United States.'' Furthermore, he suggested that taxation of U.S. shareholders under an expansion of Subpart F would be a ``substantial improvement'' over our current system. The Export Products Not Jobs Act does just that. Our current tax system punishes U.S. companies that choose to create and maintain jobs in the United States. These companies pay higher taxes and suffer a competitive disadvantage with a company that chooses to move jobs to a foreign tax haven. There is no reason why our tax code should provide an incentive that encourages investment and job creation overseas. Under my legislation, companies would be taxed the same whether they invest abroad or at home; they will be taxed on their foreign subsidiary profits just like they are taxed on their domestic profits. This legislation reflects the most sweeping simplification of international taxes in over 40 years. Our economy has changed in the last 40 years and our tax laws need to be updated to keep pace. Our current global economy was not even envisioned when existing law was written. My Export Products Not Jobs Act will in no way hinder our global competitiveness. Companies will be able to continue to defer income they earn when they locate production in a foreign country that serves that foreign country's markets. For example, if a U.S. company wants to open a hotel in Bermuda or a car factory in India to sell cars, foreign income can still be deferred. But if a company wants to open a call center in India to answer calls from outside India or relocate abroad to sell cars back to the United States or Canada, the company must pay taxes just like call centers and auto manufacturers located in the United States. Currently, American companies allocate their revenue not in search of the highest return, but in search of lower taxes. Eliminating deferral will improve the efficiency of the economy by making taxes neutral so that they do not encourage companies to overinvest abroad solely for tax reasons. The Congressional Research Service stated in a 2003 report that, ``[a]ccording to traditional economic theory, deferral thus reduces economic welfare by encouraging firms to undertake overseas investments that are less productive--before taxes are considered--than alternative investments in the United States.'' Additionally, a 2000 Department of Treasury study on deferral stated, ``[a]mong all of the options considered, ending deferral would also be likely to have the most positive long-term effect on economic efficiency and welfare because it would do the most to eliminate tax considerations from decisions regarding the location of investment.'' The ``Export Products Not Jobs Act'' would modify the rules for determining residency for publicly-traded companies by basing a corporation's residence on the location of its primary place of management and control. This will prevent companies from locating in tax havens, but basically maintaining their operations in the United States. This provision should not hinder foreign investment in the United States. Existing companies that are incorporated in foreign countries with a comprehensive tax treaty with the United States will not be affected by this provision. Massachusetts is an example of a state that benefits from foreign investment. Two foreign companies have recently expanded investment in Massachusetts. Our tax system should not discourage foreign investment, but it should not encourage companies to locate in tax havens. The revenue raised from the repeal of deferral and closing corporate loopholes would be used to repeal the top corporate tax rate of 35 percent. The tax differential between U.S. corporate rates and foreign corporate rates has grown over the last two decades and the repeal of the top corporate rate is a start in narrowing this gap. The Export Products Not Jobs Act would promote equity among U.S. taxpayers by ensuring that corporations could not eliminate or substantially reduce taxation of foreign income by separately incorporating their foreign operations. This legislation will eliminate the tax incentives to encourage U.S. companies to invest abroad and reward those companies that have chosen to invest in the United States. I urge my colleagues to join me in this effort, and I ask unanimous consent that summary of the Export Products Not Jobs Act, as well as the text of the legislation, be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, today I am introducing the College Opportunity Tax Credit Act of 2006. This legislation creates a new tax credit that will put the cost of higher education in reach for American families. An October 2006 College Board report found that this year tuition and other costs at public and private universities rose faster than inflation. And, according to the report, tuition and fees at public universities rose more in the past five years than at any other time in the past 30 years, increasing by 35 percent to $5,836 this academic year. Over the same time period, tuition and fees at private universities increased 22 percent to $22,218. Unfortunately, neither student aid funds nor family incomes are keeping pace with increasing tuition and fees. In my travels around the country, I frequently hear from parents concerned they will not be able to pay for college for their children. These parents know that earning a college education will result in greater earnings for their children and they desperately want to ensure their kids have the greatest opportunities possible. In 1997, we implemented two new tax credits to make college affordable--the HOPE credit and the lifetime learning credit. These tax credits were important and have helped families afford college, but I believe we can do more. This week the Senate Finance Committee held a hearing on tax incentives for higher education in which we learned that the existing tax credits are not reaching enough students, particularly lower income students who are most severely impacted by rising tuitions. The HOPE and lifetime learning credits are not refundable, and therefore a family of four must have an income over $30,000 in order to receive the maximum credit. Almost half of families with college students fail to receive the full credit because their income is too low. In order to receive the full benefit of the lifetime learning credit, a student has to spend $10,000 a year on tuition and fees. This is nearly double the average annual public four-year college tuition and four times the average annual tuition of a community college. Over 80 percent of college students attend schools with tuition and fees under $10,000. In 2004, I proposed a refundable tax credit to help pay for the cost of 4 years of college. Currently the HOPE Credit applies only to the first 2 years of college. The College Opportunity Tax Credit Act of 2006, COTC, helps students and parents afford all 4 years of college. It also builds on the proposal I made in 2004 by incorporating some of the suggestions made by experts, including those at this week's Finance Committee hearing. My legislation creates a new credit that replaces the existing HOPE credit and lifetime learning credit and ultimately makes these benefits more generous. The COTC has two components. The first provides a refundable tax credit for a student enrolled in a degree program at least on a half- time basis. It would provide a 100 percent tax credit for the first $1,000 of eligible expenses and a 50 percent tax credit to the next $3,000 of expenses. The maximum credit would be $2,500 each year per student. The second provides a nonrefundable tax credit for part-time students, graduate students, and other students that do not qualify for the refundable tax credit. It provides a 40 percent credit for the first $1,000 of eligible expenses and a 20 percent credit for the next $3,000 of expenses. Both of these credits can be used for expenses associated with tuition and fees. The same income limits that apply to the HOPE credit and the lifetime learning credit apply to the COTC: the COTC will be phased out ratably for taxpayers with income between $45,000 and $55,000--$90,000 and $110,000 for married taxpayers. These amounts are indexed for inflation, as are the eligible amounts of expenses. The College Opportunity Tax Credit Act of 2006 simplifies the existing credits that make higher education more affordable and will enable more students to be eligible for tax relief. I understand that many of my colleagues are interested in making college more affordable. I look forward to working with my colleagues to make a refundable tax credit for college education a reality next Congress. I ask unanimous consent that the text of the bill be printed in the Record.

Mr. KERRY

Mr. KERRY. Mr. President, I want to express my thanks to all of my colleagues for adopting this resolution to honor the memory of Boston's greatest sports champion and legend, Arnold ``Red'' Auerbach. Plain and simple, Red Auerbach was basketball. He was more than just the greatest NBA coach of all time; he was the creator of the modern professional game. Through the selection of the likes of Cousy, Russell, Havlicek, and Bird, Red built the greatest basketball dynasty in history. During two decades of coaching, Red Auerbach won 938 games and led the Boston Celtics to a record 9 National Basketball Association, NBA, championship titles. He was inducted into the Basketball Hall of Fame twice, once for his coaching and once for his contributions to the game. In 1980, Red was voted the greatest coach in NBA history by the Professional Basketball Writers Association of America. Fourteen of Red's players have been inducted into the Basketball Hall of Fame. After moving to the Celtics front office in 1966, Red's knowledge of basketball was instrumental in helping the Celtics win seven additional NBA titles. In 1985, a life-size sculpture of Red Auerbach was placed in Boston's historic Faneuil Hall Marketplace to honor Red's contributions to the Boston Celtics and the city of Boston. Most importantly, Red was known as a visionary and for his fierce loyalty to the people who worked for the Boston Celtics. From the players, to the coaches, to the ball boys, Red recognized the goodness in people and brought out the greatness in everyone he touched. He was an agent of change, hiring the first African-American coach in all of pro sports and drafting the league's first African-American player. Red will be forever remembered as Boston's greatest winner on the court, but through the Red Auerbach Youth Foundation, he made a difference in thousands of young lives throughout Massachusetts. Red's foundation focuses on getting children, who would not otherwise participate, involved in sports and to bring children of all racial and ethnic backgrounds together through sports. Red was also a proud Navy man. The values of honor, commitment, and integrity that Red brought to his coaching were also taught in the Navy where he served so proudly. The Navy's ``Lone Sailor Award,'' which he recently received, will sit in a special place of honor in this giant's trophy case along with an awe inspiring number of championship trophies. My thoughts and prayers go out to his children, Randy and Nancy, and his granddaughter Julie during this very difficult time. We take comfort knowing he is once again in the arms of his beloved Dot. While we may never again catch a whiff of that unforgettable cigar smoke or see him shake his rolled up program at a bad call by an official again, we will never forget the man who taught us how to win again and inspired a city to be champions. Boston--indeed America--lost one of its finest with Red's passing. And I am so pleased that the U.S. Senate is honoring his life today by passing this resolution

Mr. KERRY

Mr. KERRY. Mr. President, in the 15 months since Hurricane Katrina decimated gulf coast communities, Senators Snowe, Landrieu, Vitter, and I have worked to produce a comprehensive package to reform the SBA's disaster loan program. The SBA's failed response in a time of unmatched need demonstrated to everyone that this program is broken and needs fixing. Immediately after Hurricane Katrina hit, I introduced an amendment with Senator Landrieu to the fiscal year 2006 Commerce, Justice and Science appropriations bill to address the needs of gulf region small business and homeowners. The amendment was adapted with input from Chair Snowe, and a subsequent bipartisan amendment passed the Senate with a vote of 96 to 0. Although the entire Senate supported the amendment, it was stripped out of the bill conference. On September 30, 2005, I again worked with Chair Snowe and Senators Landrieu and Vitter to introduce the Small Business Hurricane Relief and Reconstruction Act of 2006, S. 1807. Although this bill presented a bipartisan, comprehensive approach to hurricane relief, it stalled in the face of the Administration's opposition. In June, I introduced the Small Business Disaster Loan Reauthorization and Improvements Act of 2006, S. 3487, which once again attempted to comprehensively address the shortcomings of this program. Finally, in August, and with continued opposition from the administration, the, committee unanimously reported S. 3778, the Small Business Reauthorization and Improvements Act of 2006, which again put forward a bipartisan, comprehensive fix for this program. Many of the provisions included in the bill we are introducing today were included in one or more of these previous proposals. The bill includes directives for the SBA to create a private disaster loan program, to allow for lenders to issue disaster loans. To ensure that these loans are borrower friendly, we provide authorization for appropriations so that the agency can subsidize the interest rates. In addition, the administrator is authorized to enter into agreements with private contractors in order to expedite loan application processing for direct disaster loans. The bill also includes language directing SBA to create an expedited disaster assistance loan program to provide businesses with short-term loans so that they may keep their doors open until they receive alternative forms of assistance. The days immediately following a disaster are crucial for business owners--statistics show that once they close their doors, they likely will not open them again. These short-term loans should help prevent those doors from closing. A Presidential declaration of catastrophic national disaster will allow the administrator to offer economic injury disaster loans to adversely affected business owners beyond the geographic reach of the disaster area. Nonprofit entities working to provide services to victims should be rewarded and given access to the capital they require to continue their services. To this end, the administrator is authorized to make disaster loans to nonprofit entities, including religious organizations. Construction and rebuilding contracts being awarded are likely to be larger than the current $2 million threshold currently applied to the SBA Surety Bond Program which helps small construction firms gain access to contracts. This bill increases the guarantee against loss for small business contracts up to $5 million and allows the administrator to increase that level to $10 million, if deemed necessary. The bill also provides for small business development centers to offer business counseling in disaster areas and to travel beyond traditional geographic boundaries to provide services during declared disasters. To encourage small business development centers located in disaster areas to keep their doors open, the maximum grant amount is waived. So that Congress may remain better aware of the status of the administration's disaster loan program, this bill directs the administration to report to the Committee on Small Business and Entrepreneurship of the Senate and to the Committee on Small Business of the House of Representatives regularly on the fiscal status of the disaster loan program as well as the need for supplemental funding. The administration is also directed to report on the number of Federal contracts awarded to small businesses, minority-owned small businesses, women-owned businesses, and local businesses during a disaster declaration. Finally, gas prices continue to fluctuate, and fuel-dependent small businesses are struggling with the cost of energy. This bill provides relief to small business owners during times of above average energy price increases, authorizing energy disaster loans through the Small Business Administration and the Department of Agriculture to companies that depend on fuel. Residents of the gulf coast continue to rebuild from last year's hurricane season. By all accounts, Administrator Preston has implemented policies that are helping gulf coast victims get back on their feet. However, the SBA needs the tools offered in this bill in order to comprehensively address the needs of business owners following a large-scale disaster. As the 109th Congress prepares to adjourn, it is unconscionable that we have not yet put in place the reforms needed for this program to function effectively. I urge my colleagues in the final days of this session to support this legislation, so that God forbid another region has to deal with a disaster the size and scope of the 2005 gulf coast hurricanes, the SBA will be fully able to provide the assistance that homeowners and business owners require.

Mr. KERRY

Mr. KERRY. Mr. President, in the 15 months since Hurricane Katrina decimated gulf coast communities, Senators Snowe, Landrieu, Vitter, and I have worked to produce a comprehensive package to reform the SBA's disaster loan program. The SBA's failed response in a time of unmatched need demonstrated to everyone that this program is broken and needs fixing. Immediately after Hurricane Katrina hit, I introduced an amendment with Senator Landrieu to the fiscal year 2006 Commerce, Justice and Science appropriations bill to address the needs of gulf region small business and homeowners. The amendment was adapted with input from Chair Snowe, and a subsequent bipartisan amendment passed the Senate with a vote of 96 to 0. Although the entire Senate supported the amendment, it was stripped out of the bill conference. On September 30, 2005, I again worked with Chair Snowe and Senators Landrieu and Vitter to introduce the Small Business Hurricane Relief and Reconstruction Act of 2006, S. 1807. Although this bill presented a bipartisan, comprehensive approach to hurricane relief, it stalled in the face of the Administration's opposition. In June, I introduced the Small Business Disaster Loan Reauthorization and Improvements Act of 2006, S. 3487, which once again attempted to comprehensively address the shortcomings of this program. Finally, in August, and with continued opposition from the administration, the, committee unanimously reported S. 3778, the Small Business Reauthorization and Improvements Act of 2006, which again put forward a bipartisan, comprehensive fix for this program. Many of the provisions included in the bill we are introducing today were included in one or more of these previous proposals. The bill includes directives for the SBA to create a private disaster loan program, to allow for lenders to issue disaster loans. To ensure that these loans are borrower friendly, we provide authorization for appropriations so that the agency can subsidize the interest rates. In addition, the administrator is authorized to enter into agreements with private contractors in order to expedite loan application processing for direct disaster loans. The bill also includes language directing SBA to create an expedited disaster assistance loan program to provide businesses with short-term loans so that they may keep their doors open until they receive alternative forms of assistance. The days immediately following a disaster are crucial for business owners--statistics show that once they close their doors, they likely will not open them again. These short-term loans should help prevent those doors from closing. A Presidential declaration of catastrophic national disaster will allow the administrator to offer economic injury disaster loans to adversely affected business owners beyond the geographic reach of the disaster area. Nonprofit entities working to provide services to victims should be rewarded and given access to the capital they require to continue their services. To this end, the administrator is authorized to make disaster loans to nonprofit entities, including religious organizations. Construction and rebuilding contracts being awarded are likely to be larger than the current $2 million threshold currently applied to the SBA Surety Bond Program which helps small construction firms gain access to contracts. This bill increases the guarantee against loss for small business contracts up to $5 million and allows the administrator to increase that level to $10 million, if deemed necessary. The bill also provides for small business development centers to offer business counseling in disaster areas and to travel beyond traditional geographic boundaries to provide services during declared disasters. To encourage small business development centers located in disaster areas to keep their doors open, the maximum grant amount is waived. So that Congress may remain better aware of the status of the administration's disaster loan program, this bill directs the administration to report to the Committee on Small Business and Entrepreneurship of the Senate and to the Committee on Small Business of the House of Representatives regularly on the fiscal status of the disaster loan program as well as the need for supplemental funding. The administration is also directed to report on the number of Federal contracts awarded to small businesses, minority-owned small businesses, women-owned businesses, and local businesses during a disaster declaration. Finally, gas prices continue to fluctuate, and fuel-dependent small businesses are struggling with the cost of energy. This bill provides relief to small business owners during times of above average energy price increases, authorizing energy disaster loans through the Small Business Administration and the Department of Agriculture to companies that depend on fuel. Residents of the gulf coast continue to rebuild from last year's hurricane season. By all accounts, Administrator Preston has implemented policies that are helping gulf coast victims get back on their feet. However, the SBA needs the tools offered in this bill in order to comprehensively address the needs of business owners following a large-scale disaster. As the 109th Congress prepares to adjourn, it is unconscionable that we have not yet put in place the reforms needed for this program to function effectively. I urge my colleagues in the final days of this session to support this legislation, so that God forbid another region has to deal with a disaster the size and scope of the 2005 gulf coast hurricanes, the SBA will be fully able to provide the assistance that homeowners and business owners require.

Mr. KERRY

Mr. KERRY. Mr. President, last year President Bush and Indian Prime Minister Manmohan Singh ushered in a new era of cooperation between the United States and India on civilian nuclear energy. President Bush promised to seek the necessary changes in U.S. laws and policies to allow full cooperation and commerce in this area. In return, Prime Minister Singh has committed India to specific steps strengthening its adherence to various elements of the global nonproliferation regime. This agreement marks a historic milestone for U.S. relations with India, one of our most important friends, a natural ally, and a country that can be a close partner on a number of key issues including nuclear nonproliferation. The legislation pending before us today is critically important because it sets the framework for Congress to consider a formal peaceful nuclear cooperation agreement with India under section 123 of the Atomic Energy Act. The Foreign Relations Committee passed this bill with strong bipartisan support shortly before the July 4th recess, and I hope the full Senate will follow suit. By passing this legislation, we will not only move the United States and India one step closer to energy cooperation but also send a clear message that a strong United States-India relationship is vital to both of our nations. More and more, this bond is built on the bedrock of natural affinities--on shared interests and shared values. And it is no wonder--our two countries are natural partners. We should be partners in the war on terror, in the spread of democracy, in religious tolerance, in advancing technology, and in bringing stability and balance to Asia. In the post-9/11 world, we share interests and we share threats. India after all sees more terror attacks every year than any other country. For a long time, South Asians and Americans have been extremely close--thanks to so many families spilt between the two countries and such a vibrant Indian-American community here at home. But now at last our Governments are finally catching up to our people and bringing our countries together. I have long believed that it is in the interest of the United States and India to expand our strategic relationship. In 1994 I took a trade delegation from my home State of Massachusetts to India. It was clear to me that Cold War tensions had created a gulf between our nations that didn't serve either country. I believed then that India could and should be a critical American partner in South Asia. My subsequent trips in 1999 and again earlier this year have only reinforced that view. With its strategic location in South Asia and its experience in maintaining a stable and religiously diverse democracy--India has nearly 150 Muslim citizens--India can be an important partner on a range of issues, from combating the threat of terrorism and proliferation to promoting democracy and regional security. Cooperating on the civilian nuclear front can help move this essential partnership forward. I know from my discussions in India this past January with Prime Minister Singh and his National Security Adviser that they want our help in meeting India's energy needs. This is crucial if India is to continue to expand its economy and increase its stature as a major regional and global power. And they see this nuclear initiative, as we do, as an important foundation for our bilateral relationship. And everywhere I went, I kept hearing from political leaders and businessmen just how important they consider American investment in India's economic future--and not just in technology. India wants our help. They see this nuclear initiative as a cornerstone of economic development and sensible energy policy, and I see it as a great chance for our countries to work together. Civil nuclear cooperation is in India's interest, but it is also in ours. That is why during my trip to India in January I was one of the first Senators to express my support for the civil nuclear initiative in principle. Since then, I have been committed to working with my colleagues to find a way to make this deal work for all our interests. I am pleased that we have accomplished that with the legislation approved by the committee. Obviously, there are ramifications for our nonproliferation efforts because for the first time we are agreeing to engage in nuclear cooperation with a country that has a nuclear weapons program but is not a party to the Nuclear Non-proliferation Treaty or bound by its obligations. We cannot gloss over the fact that this is an unprecedented step. But it is not one taken lightly. I am convinced that this exception for India makes sense, despite its real costs, given India's record as a trustworthy steward of nuclear materials and technologies. India can be an important ally in our global nonproliferation efforts, as demonstrated by their voting with us in the International Atomic Energy Agency to try to curb Iran's nuclear ambitions. And, of course, India is critical to any regional effort to cap fissile material production. India has made a number of positive commitments with respect to its nuclear program, such as separating its civil and military facilities, putting more of its civilian facilities under IAEA safeguards, and working with the United States to achieve a multilateral fissile material cutoff treaty. I believe this bill we are considering today will encourage India to fulfill these commitments while still allowing for timely consideration by Congress of the bilateral nuclear cooperation agreement--the so- called section 123 agreement--when it is concluded by Indian and American negotiators. As I said when Secretary Rice testified before the committee on this deal in early April, it is critical for us to see the safeguards agreement that India reaches with the IAEA before taking action on the section 123 agreement between us and India. This bill ensures that we will. I am pleased that it includes my language clarifying that India's safeguards agreement with the IAEA must provide for safeguards ``in perpetuity,'' as India has said it would. Arthur Vandenberg, a Republican Senator from Michigan, used to say that partisan politics ought to stop at the water's edge. Crafting this legislation was not easy, but I am pleased to say that we have thus far met Vandenberg's challenge. And we must continue to do so. To reach agreement, we had to balance a number of critically important interests: building a strong and comprehensive relationship with India, furthering our global nonproliferation efforts, and protecting congressional prerogatives to act on nuclear cooperation agreements between the United States and other countries. I recognize that there are aspects of this legislation that some on both sides of the debate wish had come out differently, but on the whole, I believe the legislation the committee has sent to the Senate is a good-faith-- and ultimately successful--effort to meet those needs. One of the most important aspects of the balance in the bill before us is the requirement that Congress review the formal peaceful nuclear cooperation agreement with India, which must be submitted under section 123 of the Atomic Energy Act. The bill passed by the House includes procedures which would deny Congress a full right of review. Such an approach would undermine the balance we have struck in this bill. I believe it is essential that the Senate conferees insist upon the procedures in the Senate bill for the consideration of the 123 agreement. The Senate bill is a good bill, and our goal should be to enact as much of it as possible. We have taken an important step forward for one of our most promising and important relationships in the years to come.

Mr. KERRY

Mr. KERRY. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with.

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

Mr. KERRY. Mr. President, I ask unanimous consent that amendment No. 5142 to the Military Construction-Veteran Affairs bill be called up.

Mr. KERRY. Mr. President, I will be very brief. I thank the managers of the bill for accepting this amendment. I do this as Senator Kennedy's cosponsor, along with Senators Akaka, Boxer, and Jeffords. What we have found is that all of the vet centers around the country are enormously overburdened in trying to be able to take care of returning Iraq and Afghanistan veterans, particularly those with PTSD mental health issues. The staffing, unfortunately, is not up to what it needs to be. Demand has doubled. So we have an obligation, which I think everybody accepts, to try to make certain we do what is necessary for those who have served as they return. This amendment would add money that is offset; it comes out of the fund within the bill itself. I am grateful to both Senators Feinstein and Hutchison for their willingness to accept it. This will provide quality care in our vet centers. We had a study in the Veterans' Affairs Committee in the House which found that the number of returning veterans requesting services has doubled. One in four vet centers that have been surveyed around the country have been forced to actually limit services or establish waiting lists for critically needed services. So I think this will help us meet a need, and I am grateful for my colleagues being willing to accept it. It is our obligation to do everything possible to ensure that veterans returning from Iraq and Afghanistan can make the transition home successfully. ``Welcome home'' must be more than something we say to our veterans. It must be measured in actions taken, not just words spoken. Today, I am offering an amendment to increase funding for the VA vet centers to provide critically needed services to our returning veterans. The VA vet centers provide readjustment counseling and outreach services to all veterans who served in any combat zone. Our veterans earned these benefits through their service to country, and we must fulfill Nation's commitment to them by providing the highest quality services possible. Unfortunately, a recent report reveals that VA vet centers need additional funding in order to provide the trained professionals necessary to offer quality mental health services. The vet center program was established to assist Vietnam-era veterans who were experiencing readjustment problems. In 1991, Congress extended the eligibility to veterans who served during other periods of armed hostilities after the Vietnam era. The goal of the centers is to provide a broad range of counseling, outreach and referral services to help veterans successfully readjust to civilian life. Services include individual counseling, group counseling, marital and family counseling, bereavement counseling, medical referrals, assistance in applying for VA benefits, and employment counseling. A recent report by the House Veterans Affairs Committee Democratic staff found that in 9 months, between October 2005 and June 2006, the number of returning veterans from Iraq and Afghanistan who turned to vet centers for post traumatic stress disorder services doubled. The increased demand for services is beginning to affect access to quality care. In fact, one in four vet centers surveyed has been forced to limit services or establish waiting lists for critically needed services. After serving this Nation and fighting for our country, our veterans should not have to fight for critical adjustment services. In November of 2004, VA Secretary Nicholson approved a mental health strategic plan, acknowledging gaps in mental health services due to the surge in demand from veterans of combat in Iraq and Afghanistan. Congress provided approximately $100 million to fund the VA mental health strategic plan. However, a recent GAO report shows that the VA has diverted or failed to utilize money that was intended for staffing at vet centers and has not provided a full accounting of what has happened to the funding. The GAO is expected to issue a full report on these funding gaps later this year, but the preliminary results indicate a possible misuse of mental health dollars. One-third of the veterans coming home from Iraq and Afghanistan come to the VA with mental health concerns. We have seen the cases of PTSD rise sharply along with the need for readjustment care when veterans return home. It is imperative that our vet centers have enough trained professionals to offer quality mental health services. There are 207 vet centers across the country. They are currently unable to deal with the increasing demand for mental health services. Each of these centers needs additional funding to hire sufficient staff to deal with the recent influx of patients. y John Rowan, National President of Vietnam Veterans of America, recently said, ``The resources are not there in the VA Vet Centers.'' Mr. Rowan went on to say that ``Not only is the mental health and well- being of veterans being placed at risk, the Vet Centers themselves are at risk. Because of significantly increased work loads, some centers have introduced waiting lists. Accommodating the ever-increasing demand for readjustment counseling is taking a heavy toll on already overworked staff.'' We need to do more to help our veterans. My amendment would provide $18 million to hire additional mental health staff at VA vet centers. This amount was recommended by the Vietnam Veterans of America to allow the VA to hire the appropriate staff needed to deal with the influx of veterans who need help. The Vietnam Veterans of America and the National Military Family Association support my amendment. Our soldiers have sacrificed greatly for their country, and we owe them the best care when they return. Many wounds of war are not visible, which makes it that much more important that vet centers have all the resources they need to serve those veterans who are suffering in any way. I ask all my colleagues to support this amendment to provide appropriate funding to staff our vet centers.

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