Earl Pomeroy

Mr. POMEROY

Mr. POMEROY. Madam Speaker, I want to take this opportunity to thank the people of North Dakota for the chance to represent our great state in this great chamber for the past 9 terms. Words cannot adequately express the feelings of gratitude I have as my time as a member of body draws to a close. At varying times I've agreed or disagreed with virtually every member--Democratic or Republican--in this House. Steering the course for the United States of America is a very difficult and complex undertaking. As our country moves into its third century in the first decade of the new millennium, it seems like the challenges only get bigger as we go forward. But I conclude my life here with a strong sense of hope and optimism for the future. The United States Capitol is the icon of democracy known throughout the world. In this historic place, sometimes in the darkest hour, leaders here assembled have set the course to see us through. If the American people exhibit the best aspects of their nature-- courage, compassion, strength, resolve, community--the leaders in the chamber will deliver accordingly. I will always treasure the time I had here. I won some, I lost some, but I tried my best to reflect the concerns of those I represented, as well as the genuine goodness of the folks who call North Dakota home. North Dakotans have selected a new Congressman, Representative-elect Rick Berg, and I wish him great success in delivering for our state. In conclusion, there is one group in particular I want to thank--all of those who have served on my staff now at the end or any time during these nine terms. Present and recent staff members include Bob Siggins, Melanie Rhinehart Van Tassel, Stacy Austad, Brenden Timpe, Adam Durand, Dustin Olson, Diane Oakley, Chris Cunningham, Matt Pearce, Hillary Price, David Grant, Annie Finkenbinder, Ross Keys, Joan Carlson, Dianne Mondry, Nick Keaveny, Geoff Greenwood, Bill Heigaard, and Erin Hill. They are extraordinarily talented and dedicated individuals, reflective of the wonderfully gifted staff members I have been privileged to work with for the 18 years of my service in the House. Now I look forward to more time with my wife, Mary, and my children, Kathryn and Scott, as this term ends and my membership in this body ceases. I thank my colleagues for their commitment to work so hard to serve their constituents and our country. I have been richly blessed to have had the chance to work with you in the people's House--the United States Congress.

Mr. POMEROY

Mr. POMEROY. Mr. Chair, I rise today in opposition to the Senate amendment to the House amendment to the Senate amendment to the bill H.R. 4853--Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. I believe it is important that we extend the so-called Bush tax cuts for everyone while our economy is still struggling to recover, and as long as we can pay for it. This bill as presented to the U.S. House does not meet that test. I am especially disappointed in the provision on the estate tax. I cannot in good conscience cast one of my last significant votes in Congress in favor of a bill that would add tens of millions of dollars to the Federal deficit to benefit the wealthiest few families in the country. The payroll tax holiday provision included in this package is also troublesome since for the first time in 75 years, the sacrosanct, dedicated revenue stream to provide Social Security benefits is diverted for other purposes. While we have fully protected the Social Security Trust Fund in the legislation and there will be no change in how much money is in the Trust Fund, I am concerned that proponents of private accounts will argue to continue this diversion of the payroll tax beyond one year--perhaps even putting the money into private accounts. At a time when we know that the long term solvency of Social Security will need either greater contributions or significant reductions in benefit, providing a payroll tax holiday is clearly a move in the wrong direction.

Mr. POMEROY

Mr. POMEROY. Madam Chair, for the last five sessions I have worked to try and clarify the rate of estate taxation in this country. I felt the right approach was ultimately to take the 2009 levels and make them permanent. The amendment that carries my name in this debate would take the 2009 levels for estate taxation instead of the levels contained in the Senate compromise. The rationale for the 2009 level is pretty compelling. The estate tax in 2009 was the smallest rate of taxation on estates in 80 years. My friend just referenced an estate tax situation encountered from his family. He did not say it was at a much higher rate of tax than was ultimately achieved in 2009. In fact, the rate in 2009 means 99.8 percent of the families in this country have no estate tax. Zero. It went gradually lower and lower, and in 2009 hit a lower rate of taxation for estates than was ever the case under Ronald Reagan, was ever the case under George Bush I, was ever the case under George W. Bush. Now, why would we want to go with 2009 levels as opposed to the Senate deal? It's simply a matter of money: $23 billion over 2. And, quite possibly, the levels in the Senate bill would be the new rate for the estate tax. In that case, we would lose $90 billion over 10. I have heard on the other side such concern about unpaid-for unemployment benefits. I have not heard one word about unpaid-for estate tax levels. They would add to the national debt $23 billion more than the 2009 levels. They don't pay for a cent of it, and they seem to think that is fine. Do you know who benefits from the Senate tax levels compared to the 2009 levels? 6,600 of the wealthiest families. Let's go with the 2009 levels. Let's save $23 billion over 2, let's save $90 billion over 10. Let's tackle these deficits, starting with a fair estate tax level.

Mr. POMEROY

Mr. POMEROY. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks on S. 3789, the bill now under consideration.

Mr. POMEROY. Mr. Speaker, by way of close, let me say that the legislation before us is important and reflects what has been a pattern of bipartisan work between the ranking member and myself as I have chaired the Social Security Subcommittee. I have enjoyed working with Sam Johnson. It is a pretty thrilling thing for a kid from North Dakota to get to work with an American hero, and I have appreciated his conscientious service as ranking member of the Social Security Subcommittee. I also, to colleagues, have deeply appreciated the opportunity to chair the committee. I received a Social Security check in my own life when my dad died as I was a teenager. To have the opportunity to chair the subcommittee, protecting the United States' most important domestic program, Social Security, was a deep honor and a responsibility that I'll always treasure, having had that chance. I want to thank the staff members who helped throughout, keeping this subcommittee superbly supported with the important policy work before it. Kathryn Olson, Joel Najar, Morna Miller, Jennifer Beeler on the majority. We have certainly appreciated working with Kim Hildreth on the minority. It has been a terrific experience. General Leave

Mr. POMEROY. Mr. Speaker, earlier this year, I introduced a bill with my friend, the ranking member on the Social Security Subcommittee, Sam Johnson, to protect the accuracy of Social Security records and help shield individuals from identity theft. Our bill prohibited Federal, State, and local governments from employing prisoners in any capacity that would allow inmates access to the full or partial Social Security numbers of other individuals, such as through prison labor contracts. The bipartisan Senate bill before us today does the same thing and also prohibits Federal, State, and local governments from displaying Social Security numbers on paper checks, which will also help protect the Social Security program and protect fraud. Both are obvious changes that would protect millions of Americans from identity theft. Mr. Speaker, I urge passage of this bill. I reserve the balance of my time.

Mr. POMEROY. Mr. Speaker, I yield the gentleman 1 additional minute.

Mr. POMEROY. Mr. Speaker, I yield 2 minutes to the gentleman from Oregon (Mr. DeFazio).

Mr. POMEROY. I encourage my colleagues to support this bill. I yield back the balance of my time, Mr. Speaker.

Mr. POMEROY. Mr. Speaker, I move to suspend the rules and pass the bill (S. 3789) to limit access to social security account numbers.

Mr. POMEROY. Mr. Speaker, I yield 2 minutes to the gentleman from Houston, Texas (Mr. Gene Green). (Mr. GENE GREEN of Texas asked and was given permission to revise and extend his remarks.)

Mr. POMEROY

Mr. POMEROY. Mr. Speaker, I yield 2 minutes to the gentleman from Connecticut (Mr. Courtney).

Mr. POMEROY. Mr. Speaker, I yield 1 minute to the gentleman from Wisconsin, Dr. Kagen.

Mr. POMEROY. Mr. Speaker, I yield myself such time as I may consume. In October, the Social Security Commissioner announced there would be no cost-of-living adjustment--or COLA--for Social Security benefits in 2011. This is the result of economic conditions. It is not due to action or inaction on the part of Congress. Congress enacted legislation in 1975 to provide for an automatic cost-of-living adjustment so seniors would not face year after year of rising prices for daily expenses with no increase in benefits. Unfortunately, due to the formula, next month will mark the first time since 1975 when the automatic COLA will not increase for the second year in a row. Because the recovering economy is slowly turning around, prices tracked by those bureaucrats measuring these items find that it has not reached the peak of inflation in 2008 caused by the spike of energy prices. So it is an anomaly within the formula providing no cost-of-living adjustment. Any of us visiting with our senior citizens across this great land understand something quite different has occurred within the life of our seniors: they are experiencing higher prices. In fact, this is causing a hardship for so many, given the fact that Social Security benefit levels are really very modest. They are $14,000 for the average retiree. It is $13,000 on average in North Dakota. We estimate that some more than 30 million Americans get most of their income from Social Security, and many millions of Americans get all of their income from Social Security. So, basically, they have their benefit levels flatlined at a time when they are encountering higher costs, reducing their quality of life experience, and disappointing them greatly about Social Security. The bill before us would provide 54 million Americans with a $250 payment in lieu of COLA. Now, for those at the very bottom, this means a lot--about a $20 a month cost-of-living adjustment to help them with those higher costs. I want us to think for just a moment, Mr. Speaker, about this very modest $250 payment, $20 a month, in contrast to some of the relief measures being tossed around as negotiations proceed to conclude this session. We heard about a deal the White House has been discussing with the Senate that would provide, for example, an estate tax provision representing a windfall to the wealthiest few families in this country. At a time when Congress is considering measures that would provide vast amounts of relief to the wealthiest who need it the least, you would think that we might be able to measure support for $250 to seniors living on Social Security checks unable to meet their expenses in light of higher costs but no COLA. The bill before us should pass under any sense of fairness, particularly at this time of the holidays. The bill is supported by AARP, the Alliance for Retired Americans, the National Committee to Preserve Social Security and Medicare, the Strengthen Social Security Campaign, the Disabled American Veterans, and the Wider Opportunities for Women organizations. Mr. Speaker, I encourage my colleagues to support H.R. 5897, the Seniors Protection Act of 2010. I reserve the balance of my time.

Mr. POMEROY. Mr. Speaker, I yield 1 minute to the gentlewoman from Florida (Ms. Castor).

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

Mr. POMEROY. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5987) to ensure that seniors, veterans, and people with disabilities who receive Social Security and certain other Federal benefits receive a one-time $250 payment in the event that no cost-of- living adjustment is payable in 2011, as amended.

Mr. POMEROY. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H.R. 5987, the bill now under consideration.

Mr. POMEROY. Mr. Speaker, I yield 1 minute to the gentleman from New York (Mr. Higgins).

Mr. POMEROY. Mr. Speaker, at this time I yield 1 minute to the gentleman from Iowa (Mr. Loebsack).

Mr. POMEROY. Mr. Speaker, I yield the balance of my time to the gentleman from New York (Mr. Weiner).

Mr. POMEROY. Mr. Speaker, I yield back the balance of my time.

Mr. POMEROY

Mr. POMEROY. Madam Speaker, all of us have observed from time to time wounded heroes in uniform and with their loving families being guided through our Capitol by an energetic tour guide. I know we all appreciate the efforts made to reach out to those who are healing from the wounds of war and recognize them with these very trips to our Capitol. The tour guide responsible for these visits is Albert Casswell and as I've come to know him, I have been deeply impressed by his commitment to those who have served our country. This fall I asked Mr. Casswell to provide a tour for the family members of Chief Master Sergeant Richard Etchberger during the week Chief Etchberger was posthumously awarded the Congressional Medal of Honor for extraordinary heroism in service to our country. During the Vietnam War he acted bravely to save the lives of his fellow airmen resulting in the tragic loss of his own life. Mr. Casswell was moved as I was moved by meeting this wonderful family and learning the story of Chief Etchberger. He not only provided an exceptional tour for the family, he authored a poem in honor of Chief Etchberger and has inquired as to whether it was appropriate to include in the Congressional Record. I offer the poem of Mr. Casswell in appreciation of all he has done to help our soldiers and for his obvious concern for them and their families.

Mr. POMEROY

Mr. POMEROY. Mr. Speaker, I rise today in support of House Resolution 1494. Our nation's future rests on the shoulders of our youth, and the exceptional dedication and intelligence displayed by all of the students who took part in the 84th Scripps National Spelling Bee earlier this year gives me great confidence that our future will be a bright one. As the largest and longest-miming educational promotion in the United States, this year's Scripps National Spelling Bee brought together 273 spellers from all over the United States and across the world. The rigorous preparation and diligence required by these students to compete at this international level is truly incredible. I would specifically like to recognize Shantanu Srivatsa, a student at Cheney Middle School in West Fargo, North Dakota, for tying for second place in this competition. This was Shantanu's third consecutive appearance at the Spelling Bee, and I was impressed to learn that his favorite subject in school is in fact mathematics, and that in addition to his participation in the spelling bee, he also represents his school at regional and state mathematics competitions. When reviewing the words Shantanu correctly spelled to make it to the highest levels of the competition, I am astounded by his command of the English language. Though I represent a state with a large sugar beet industry, I must admit that I did not know that a cossette was part of the sugar refining process--and I certainly did not know how to spell it. Thanks to Shantanu, I now know that it is cossette, C-O-S-S-E-T-T- E. Lest this example lead one to suspect that Shantanu's vocabulary was limited to the geographically proximate--his correct spelling of schlieren, that would be S-C-H-L-I-E-R-E-N, clearly demonstrates that the breadth of his knowledge includes subjects, or more precisely substances, that would be exceedingly rare in North Dakota due to the geologic history of the northern Great Plains. Students like Shantanu and all of the other participants in this competition not only represent the best students in our nation, but also exemplify the ideals of hard work, dedication, and poise that are an inspiration to us all. Please join me in supporting all of the Scripps National Spelling Bee participants who have demonstrated the highest levels of academic achievement by supporting this resolution.

Mr. POMEROY

Mr. POMEROY. Madam Speaker, I rise in support of H.R. 5297--Small Business Lending Fund Act of 2010, a bill that brings billions of dollars of tax relief and access to capital to small businesses. Helping North Dakota businesses create jobs is one of my top priorities. In North Dakota, small business is business. Nearly 80 percent of North Dakotans work for companies with less than 500 employees and 60 percent work for companies with less than 100 employees. Small businesses are a proven engine of job creation. During the last economic expansion, companies with less than 20 employees accounted for 40 percent of the job growth while accounting for only 25 percent of all jobs. Today, we give this engine of job creation the fuel it needs to charge forward. Surveys of National Federation of Independent Business members identified the number one economic concern facing small businesses as poor sales stemming from a lack of demand from consumers. This has been their top concern since the recession and most recently 31 percent of respondents reported poor sales as their most important problem. Beneath this response is the fact that many small businesses want to borrow but cannot. So, they need help with capital too. To help small business, I introduced bipartisan legislation, the Small Business Jobs and Tax Relief Act, which would generate demand for products and services while putting more capital into the hands of small businesses. One of the lingering difficulties is that many small businesses have limited access to the capital they need to operate, grow, and create new jobs. By providing small business tax relief, Congress can free up money, which will help small businesses feel that they can hire new employees and make investments in new equipment that will build demand for goods and services. I am pleased that tax cuts from the bill I authored are in key components in this bill before the House today. One of the several good measures in H.R. 5297 that will generate the demand that our small business need to grow is bonus depreciation. It is one of the best ways to stimulate the economy and create jobs. Bonus depreciation accelerates the rate at which businesses can deduct the cost of capital expenditures so it encourages companies to spend while it boosts company cash flows. Economists rate bonus depreciation as one of the most economically productive tax initiatives. In a 2001 analysis, the Institute for Policy Innovation estimated that every $1 of tax cuts devoted to accelerated depreciation generates about $9 new growth in the economy. Looking back at times when bonus depreciation was used to encourage capital investment, economists determined that it was responsible for creating several hundred thousand jobs. Out in our small towns, many Americans are creating job opportunities for themselves and for others by starting new small business. We need to encourage this spirit of free enterprise. The Small Business Lending Fund Act of 2010 will help new start-up businesses in two ways that I heard from North Dakotans would be helpful and included in my bill: 1. The bill would double the current amount a start-up business can deduct, so that a new business owner could deduct $10,000 of expenses he or she might have incurred to set up shop. Without the bill before us today, that deduction for start up costs would be limited to only $5,000; and 2. The 100 percent exclusion from tax of gains on small business stock in H.R. 5297 would expand the access to capital for small business across the county. This bill also reduces the regulatory burden on small business by modernizing the tax accounting required for business provided cell phones and eliminating outlandish penalties for abusive tax shelters. Small businesses are most likely to conduct business while they are away from their offices. Nine out of ten small businesses indicate they use mobile phones for their business and one in seven feel that their businesses could not survive without mobile devices. The Internal Revenue Code still contains paperwork requirements for wireless phones from the 1970s. Rather than spending money on accountants and the costs associated with an IRS audit, H.R. 5297 allows small businesses to spend it instead on creating jobs. While the Internal Revenue Service must stop abusive tax shelters, today will vote to eliminate a disproportionate effect that some tax penalties have on small businesses. No longer will small businesses face outlandish penalties for failing to disclose on their taxes reportable transactions. The bill brings such penalties into proportion with the underlying tax savings and does not put business owners out of business. In conclusion, I would like to thank Chairman Levin for including small business tax incentives, especially bonus depreciation, and relief from excessive regulations that I authored in the bipartisan Small Business Jobs and Tax Relief Act in the final bill that we vote on today. The Small Business Lending Fund Act of 2010 is good for North Dakota small businesses. I urge my colleagues to vote yes on H.R. 5297.