Rob Portman

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, on June 17, 1999, joined by Mr. Matsui of California, I introduced H.R. 2270, a bill to correct a fundamental distortion in the U.S. tax law that results in double taxation of U.S. taxpayers that have operations abroad. The United States taxes U.S. persons on their worldwide income, but allows a foreign tax credit against the U.S. tax on foreign-source income. The foreign tax credit limitation applies so that foreign tax credits may be used to offset only the U.S. tax on foreign-source income and not the U.S. tax on U.S.-source income. In order to compute the foreign tax credit limitation, the taxpayer must determine its taxable income from foreign sources. This determination requires the allocation of deductions between U.S.-source gross income and foreign- source gross income. Special rules enacted as part of the Tax Reform Act of 1986 apply for purposes of the allocation of interest expense. These rules generally require that interest expense incurred by the U.S. members of an affiliated group of corporations must be allocated based on the aggregate of all the U.S. and foreign assets of the U.S. members of the group. The interest allocation rules purport to reflect a principle of fungibility of money, with interest expense treated as attributable to all the activities and property of the U.S. members of a group regardless of the specific purpose for which the debt is incurred. However, the present-law rules enacted with the 1986 Act do not accurately reflect the fungibility principle because they apply fungibility only in one direction. Accordingly, the interest expense incurred by the U.S. members of an affiliated group is treated as funding all the activities and assets of such group, including the activities and assets of the foreign members of the group. However, in this calculation, the interest expense actually incurred by the foreign members of the group is ignored and thus is not recognized as funding either their own activities and assets or any of the activities and assets of other group members. This ``one-way-street'' approach to fungibility is a gross economic distortion. By disregarding the interest expense of the foreign members of a group, the approach reflected in the present-law interest allocation rules causes a disproportionate amount of U.S. interest expense to be allocated to the foreign assets of the group. This over-allocation of U.S. interest expense to foreign assets has the effect of reducing the amount of the group's income that is treated as foreign-source income for U.S. tax purposes, which in turn reduces the group's foreign tax credit limitation. The present-law interest allocation rules thus prevent the group from fully utilizing its available foreign tax credits, and lead to double taxation of the foreign income earned by the U.S. multinational group. This double taxation of the income that U.S. multinational corporations earn abroad is contrary to fundamental principles of international taxation and imposes on U.S. multinational corporations a significant cost that is not borne by their foreign competitors. The present-law interest allocation rules thus impose a burden on U.S.- based multinationals that hinders their ability to compete against their foreign counterparts. Indeed, the distortions caused by the interest allocation rules impose a substantial cost that affects the ability of U.S.-based multinationals to compete against their foreign counterparts both with respect to foreign operations and with respect to their operations in the United States. H.R. 2270 will reform the interest allocation rules to eliminate the distortions caused by the present-law approach. The elimination of these distortions will reflect the fundamental tax policy goal of avoiding double taxation and will eliminate the competitive disadvantage at which the present-law interest allocation rules place U.S.-based multinationals. A detailed technical explanation of the provisions of H.R. 2270 follows. Technical Explanation of H.R. 2270

Mr. PORTMAN

Mr. PORTMAN. Mr. Chairman, I thank my friend from Kentucky (Mr. Fletcher) for yielding me the time. Mr. Chairman, I like this amendment because I think it will empower and encourage parents. There is discussion going on all around this country following the tragic Columbine shootings. The discussions we have had on the House floor over the last 2 days is only one place that is happening. It is happening in school board meetings. It is happening, very importantly, around kitchen tables. It is happening in State legislatures. I think the one thing that all of us need to focus on is that despite a lot of ideas that have been put forward that are meant to address the problem of youth violence and what happened in Columbine, none are going to work unless we focus on character and I think unless we focus on family and parents. We might feel better having passed some of the legislation we are going to pass here in the next day, but I really do not believe it is going to change the root causes of youth violence. That is why I like this amendment, because it gets parents engaged, it empowers them to get involved. If we are going to solve the problems in our society of youth violence, substance abuse, all the data shows, as James T. Wilson says, and I am glad the gentleman from Kentucky (Mr. Fletcher) quoted him earlier, we have got to get our family back engaged with our children. As a parent, a father of three young children, I know that, and I think most of my constituents know that. And I think they believe that anything we can do here in the U.S. Congress to encourage our families to go stay together, to encourage families to provide guidance, to encourage families to give children a sense of right and wrong, that that will make the most fundamental difference in terms of avoiding future tragedies like the one that occurred in Columbine. So again, Mr. Chairman, I am delighted to support this amendment, and I urge its passage. The tragic shootings at Columbine High School have started a national discussion on what we can do to prevent such violent acts in the future. The debate we had here in the House of Representatives over the past 2 days has taken place across the country in state legislatures, town halls--and, more importantly, in school board meeting rooms, at the workplace and around the kitchen table. There's been a lot of soul-searching--and some of the ideas that have been put forward--including those aimed at cleaning up our popular culture--are helpful and should be adopted. Other proposals may make us feel as though we're doing something, but I don't believe they will change the root causes of youth violence. Throughout this national dialogue, I hope we do not overlook what I view, as a legislator--but, more importantly, as a father of three young children--as the most important factor in preventing these shocking and senseless acts of violence. There is no more powerful influence on a young person's life than a family, particularly an engaged, concerned and caring parent--and, where there is not a parent in the home, then a caregiver, a role model, who takes on the solemn responsibilities of parenthood. I've seen it firsthand in my work on the problem of reducing teenage substance abuse and have read it in many studies on drug abuse and reshaping adolescent behavior. In fact, based on sound surveys, researchers believe we could reduce teenage drug use by as much as 50 percent if parents would simply engage and talk to their kids about the dangers of drugs. That's a remarkable statistic, and a true testament to the power of family, and to the dangers of disengagement and apathy. Unfortunately, we've seen too many examples of problems that arise when parents aren't actively involved in their children's lives. A recent Letter to the Editor in one of my local papers--the Cincinnati Post--put it well, ``Parents are so involved in their own activities and life that they have forgotten . . . how much the children look to them as the example.'' Children look to us--their parents--as role models, and they also look to us for guidance. I hope the Columbine tragedy and the dialogue it has spawned leads us; as parents, to do a better job of setting boundaries for our kids. I thought Cincinnati Enquirer columnist Laura Pulfer described our challenge as parents in a recent column she wrote: ``Right and wrong. Good and bad. Yes and no. We can say these words, especially to our children. In fact, it is our duty.'' Mr. Speaker, let's keep our eye on the ball. The best way to get at the root cause of youth violence is for all of us to take a more active role in the lives of our young people. America's future depends on it.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I rise to recognize the achievements of a distinguished constituent and friend, Thomas L. Conlan, Jr. Tom is retiring as co-founder, President and CEO of Student Loan Funding Resources, Inc., which is headquartered in Cincinnati, Ohio. Tom has helped to open the doors of college opportunity to hundreds of thousands of young people throughout Ohio and the nation during his nearly two decades of dedicated service in education. In so many areas of his life, Tom's commitment has been to access and opportunity. He has played an important role in the development of the National Underground Railroad Freedom Center in Cincinnati. A newly- created Ohio foundation, named for his father, Thomas L. Conlan, made a leadership gift to support and advance the Freedom Center's educational programs for both students and educators. The grant funds will be used to help develop a curriculum for school children focusing on the Underground Railroad, as well as highlighting struggles for freedom across the globe. In the 1970s, prior to founding SLFR, Tom was Executive Director of the Ohio Energy Advisory Committee, where he led the development of the Ohio winter heating assistance program. He also authored the Federal Home Assistance Program Plan for Ohio, In this work Tom testified before Congress and the Ohio General Assembly on energy assistance for low-income citizens. His civic involvement over the years includes a founding membership in Ohio Concerned Citizens for the Arts; service on the City of Cincinnati's Energy Conservation Committee; the Ohio Department of Natural Resources Advisory Council to the Little Miami River; and co- chairmanship of the first Little Miami River (Cleanup involving 4,000 volunteers. In 1997, he chaired the Education Visioning Committee of the Greater Cincinnati Olympic Commission. Tom is Vice President of the Hamilton County Alcohol and Drug Addiction Services Board. He is a former trustee of the Queen City Foundation; the Greater Cincinnati Tall Stacks Commission; and the Catholic Big Brothers Association of Cincinnati. Tom is also devoted to his family--his wife and partner, Nan; his stepchildren, Kate and Matt; his granddaughter, Morgan Ann; his brother, John, John; five sisters, Gretta, Maureen, Mary Carol, Ginny and Chris; and his nieces and nephews. He also carries dear the memory of his parents. Nowhere has Tom been more directly responsible for improving the lives of people in need than in this stewardship of the education loan financing company, SLFR, that he co-founded. During his tenure, SLFR has provided funds and support services to more than 600,000 students. Tom has been a national leader in fashioning education loan policy to benefit America's students and their families. In 1993, he helped establish the Coalition for Student Loan Reform that has been a beacon for industry self-reform nationwide. He advocated the superiority of the Federal Family Education Loan Program (FFELP), a longstanding public-private partnership involving private funds, localized administration and loan guarantees from Washington. Under Tom's leadership, SLFR developed innovative education loan credit products in Ohio that represent affordable education financing options. The Supplemental Student Loan Program of Ohio, which provides low-cost loans for students and families whose financing needs exceed the amount of assistance available through federal and state financial aid programs, and the Jump Start Loan, which rewards borrowers with a sharply reduced interest rate, are examples of these options. Perhaps Tom's most important legacy will be the Thomas L. Conlan Education Foundation. The Foundation was established in June of 1998 from the re-organization of the original Student Loan Funding Corporation, which was co-founded by Tom and his father in 1981. The Foundation helps many Ohioans obtain an affordable, high quality education. All of us in Cincinnati wish Tom well in his retirement. We expect his retirement years will reflect the same civic spirit that he has carried throughout his life.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I rise to recognize the contributions of John Barrett, a friend, distinguished constituent and community leader who will receive Cincinnati's Boys Hope/Girls Hope's highest honor the Heart of Gold Award, on June 1, 1999. As a member of the Board of Boys Hope/Girls Hope in Cincinnati, John Barrett has given countless hours of his personal time to further the organization's important mission of helping vulnerable young people in our area. Boys Hope/Girls Hope works to overcome the obstacles of poverty, abuse and neglect and provide a structured, caring educational experience for those deserving students through high school and college. John's enthusiasm for this organization is contagious and he has been instrumental in attracting others in the business community to this most worthy cause. John Barrett believes in giving back to his community and he is particularly committed to improving the lives of the young people in our area. In addition to the tremendous work he does for Boys Hope/ Girls Hope, he serves on the boards of the Children's Hospital, the Dan Beard Council/Boy Scouts of America, and the Greater Cincinnati Scholarship Association. All of us in Greater Cincinnati owe John a debt of gratitude and congratulate him on receiving the Heart of Gold Award.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I thank the chairman of the Subcommittee on Social Security for yielding time to me. I want to also commend the gentleman from California (Mr. Wally Herger) for bringing this legislation before us tonight. It is my view that the next logical step toward fiscal sanity in this town. The first step was through a Republican majority to actually get a balanced budget in terms of a unified budget, all the receipts in, income taxes, payroll taxes, other fees, and all payments out of the Federal Government; for the first time in 30 years, we now have a unified balanced budget. But it is time now to ensure the integrity of the social security system by taking those payroll taxes and requiring that they indeed go to the trust fund and to the social security system. That is what this does, by walling it off. It is not the last step. It is the next logical step. The next step is actually to take those funds and put them to work for the American people so that financial security and retirement is ensured. That is why I want to compliment the chairman of the subcommittee, the gentleman from Florida (Mr. Shaw) and the gentleman from Texas (Mr. Archer) for coming forward with a plan that does that over the requisite 75-year period. That is the challenge of this Congress. It does not mean this step is not important, because it is the foundation upon which real social security reform must be built.

Mr. PORTMAN

Mr. PORTMAN. Mr. Chairman, because of a previously scheduled commitment, I missed rollcall vote No. 153 during consideration of H.R. 1906, the Fiscal Year Agriculture Appropriations Act. Had I been present, I would have voted ``yea''.

Mr. PORTMAN

Mr. PORTMAN. I yield to the gentleman from Maryland.

Mr. PORTMAN. Mr. Speaker, I am here tonight to talk about retirement security. With Americans living longer and 76 million baby-boomers soon to begin their retirement years, solving Social Security's fiscal problems has to be and should be a top priority of this Congress. And I think it is. I think it is a top priority of the President, as well. I encourage that, and I hope that we come up with a Social Security solution even this year. But we also have to realize that Social Security is not going to solve all of our retirement security problems. Social Security was never meant to handle all the retirement needs of Americans and, in fact, for most Americans it does not. Rather, it is just one leg of a three-legged stool that people rely on in their retirement. As my colleagues can see from this chart here, Social Security, employer provided pensions, and personal savings is the three-legged stool that Americans rely on for their retirement. This is a critical issue for all Americans, by the way, not just those Americans who are in retirement but those approaching those retirement years. We must move forward with policies that make a real difference in terms of providing overall retirement security for all Americans. It will mean for many Americans the difference between mere subsistence or even poverty in retirement, on the one hand, and real prosperity and a comfortable retirement, on the other hand. I am going to talk tonight about this leg of the retirement stool called employer-provided pensions. This is 401(k) plans, it is 457 plans, 403(b) plans and other defined contribution plans. It is also the defined benefit plans, profit sharing plans and so on. Pension savings are already, as this chart shows, an important part of Americans' retirement security, but not all is well with our pension program today. Only half of all Americans, for example, even have a pension today. What really concerns me as we look from 1983 until 1993 where we should have made a lot of progress in this area, we have roughly stayed the same. Only half of Americans today in the workforce have any kind of pension at all. That is anything, a 401(k), a simple plan, a profit sharing plan, anything. To me that is a major problem, one that we should address here in the United States Congress, who want to give Americans more access to a comfortable retirement. This means, by the way, that about 60 million Americans have no pension, no private retirement savings through their employer. It is even worse than that really because when we look at so many of the jobs that are being created in our economy today, it is in the smaller businesses. This chart shows that among smaller companies, the percentage of companies that offer any kind of a pension is even smaller. These two blocks together would be all companies of 25 or fewer employees. This shows that only 19 percent of them on average offer any kind of a pension plan at all. Those people who work in smaller businesses again where most of our jobs are being created in our economy even have a lower possibility of having any kind of retirement savings through their employer. This is all happening, incidentally, at a time when savings in our country is at an all-time low. The pension plans around the country would normally be contributing to higher savings but they simply are not as accessible as they should be. This shows the U.S. personal savings over time starting with 1935. Actually today we are at the lowest level at least since the Great Depression. Some economists think we are at our lowest savings rate ever. That is another reason we need to reform our pension laws, because pensions again are a major part of retirement savings but also of our overall savings in this country which is so important. We have a plan to try to change this. I have come up with this plan with the gentleman from Maryland (Mr. Cardin) who is also with us tonight. What this will do is it will provide for an increase in contribution levels and compensation levels and in benefit limits for all employees. It enables us, in other words, to let people save a lot more for their own retirement. It also takes out a lot of the well meaning but very restrictive rules and regulations that have come in place with our pension policy.

Mr. PORTMAN. I thank the gentleman very much.

Mr. PORTMAN

Mr. PORTMAN. I would urge my colleagues on both sides of the aisle to talk to the gentleman from Maryland, talk to me. H.R. 1102 is the name of the legislation. We have a number of cosponsors. We are looking for more. If we can come together again on a bipartisan basis to solve this problem and get this legislation passed, it will make the difference in people's lives. It will allow for millions of Americans to have real security in retirement rather than mere subsistence. It is something that we can do this year. Of course we all want to solve Social Security's problems. That may be a little more difficult to do in this environment. But this is one where we should be able to come together to provide for people to be able to save more for their retirement even outside of Social Security, even while we are working on the Social Security problem.

Mr. PORTMAN. I thank my colleague from Maryland for yielding. We have been laboring at this for a couple of years now. We have worked with a lot of different groups around the country who are concerned with people being able to have a secure retirement. This includes incidentally for this proposal we are talking about tonight the Chamber of Commerce of the United States, as well as the AFL-CIO. To have that kind of a broad cross-section on any legislation around here is rather unusual. Why are all these groups supporting this proposal? For one very simple reason. They all have people they are representing who want to provide retirement security for workers. This proposal is common sense changes, as the gentleman from Maryland said, to permit, for example, portability where you can be able to take your pension from job to job, responding to the increasingly mobile workforce out there. It also again goes into the pension rules and regulations which have become so burdensome that many small employers simply will not offer a plan at all. It cuts down on those rules and regulations to the point that smaller businesses are now going to be able to get into this business. It also cuts down some of the liability for our smaller businesses. Finally, very important, as the gentleman from Maryland said, it has the ability for people to save more for their own retirement. One that I particularly like that the gentleman from Maryland is very supportive of is the catch-up provision, for people who are over 50 years old coming back into the workforce. This would be a lot of working moms who stayed home to take care of kids and are now coming back into the workforce, we allow them to contribute an additional $5,000 a year to their retirement plan. This will help a lot of people to be able to build up that nest egg that is necessary for retirement.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I rise this evening to discuss an issue of great importance to so many Americans, and that is financial security in retirement. It is an important issue that has made the headlines a lot lately because of the retirement squeeze that our country faces. We have more and more people who are going to be retiring, the baby boom generation, 76 million Americans, including myself, beginning to retire in 10 short years. We have people living much longer in this country, which is a good thing. But it is a huge demographic shift, this combination of this big generation retiring and people living longer, that is putting a lot of pressure on our retirement systems. The Social Security system is not ready for it. Most of us know that now. But also our private retirement system, the employer-sponsored pension system, is not ready for it. Social Security needs to be a top priority of this Congress and this President. I would love to see Social Security reform this year. I am pushing hard for it. But Social Security is only one component of a secure retirement for Americans. It was never intended to meet all the financial needs of retirement and for most Americans, of course, it does not, as this chart shows. In fact, retirement security has often been called the three-legged stool, because people depend on three aspects of retirement savings. One is Social Security, one is personal savings and another one, a very important one, is employer-provided pensions. The fourth part of this pie, of course, is people's earnings after they retire from a full-time job, but it is employer provided pensions that 19 percent of people's retirement that I would currently like to focus on today. This is 401(k) plans. This is profit sharing plans. This is all of the plans that people who have a comfortable retirement have to supplement their Social Security. It is interesting when we look at pensions as compared to Social Security benefits. It is already a very important part of the retirement for so many Americans. In fact, last year more money was paid out through employer provided pensions than was paid out under Social Security. But all is not well with our pension system, not well at all in fact. Fewer than half of Americans who are working today have pensions. This is a major problem. Madam Speaker, in 1983 about 48 percent of Americans had pensions. One would think that by 1993 we would have improved that and said it was only about 50 percent. It remains there. Sixty million American workers do not have access to one of the most important means of a comfortable, secure retirement, and that is pension savings. Half of all workers do not have it, and actually it is worse than that among those employees of small businesses. Among our smaller businesses where so many of our jobs are being created in our economy today fewer than half of the workers have pensions. In fact when we combine those companies between 1 and 10 employees and those between 10 and 25 employees, the average for those smaller companies, and again this the companies that are creating most of the new jobs out there, is that only 19 percent of them offer any kind of pension program at all today. So those employees with smaller businesses even have less of an opportunity to be able to get the kind of retirement security that they deserve. Why is that? Madam Speaker, it is because setting up these plans, these pension plans, 401(k)s and so on, has become so costly and so burdensome, maintaining them has become so costly and there is so much liability that small businesses cannot afford to do it. Not enough workers have pension coverage at a time when our overall savings rate in this country also is terribly low. In fact, it is at historically low levels, and this is a real problem. Economists will tell us, whether they are liberal, centrist or conservative economists, we have got to increase the savings rate in this country if we want to continue to have the kind of economic prosperity we have enjoyed over the last several years. We have a plan to solve these problems. It is called the Comprehensive Retirement Security and Pension Reform Act of 1999. I have introduced it this year with my colleague and friend the gentleman from Maryland (Mr. Cardin). It is designed to dramatically increase personal savings rate and overall retirement security for millions of Americans by expanding the availability of pensions. It knocks down barriers to savings by raising limits and allowing workers to set more aside tax free for their retirement. It also untangles the complex and irrational rules and cuts through the red tape that burdens retirement plans and their participants, and it creates new incentives for small businesses to establish these pension plans. It has a wonderful catch-up provision where older workers who are coming back into the work force can put even more aside for their pensions. This is particularly important for working moms who have been out of the work force but coming back after age 50 and want the opportunity to get more in the nest egg for their retirement. It responds to the needs of the increasingly mobile work force we have in this country by allowing people to vest faster in their pension plans and allowing portability so you can move your pension plan from job to job, which is so important to many, Americans. We believe that changing jobs should not mean that you get short changed on your retirement savings and your sense of security in retirement. If enacted, these changes will expand savings, and they will make the difference between mere subsistence in retirement and retirement security for millions of workers nationwide. I urge my colleagues to cosponsor the legislation, H.R. 1102.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I rise today to thank and recognize my friend, Virginia Griffin, for her 32 years of gracious public service to the city of Cincinnati, especially to the children of Cincinnati. After 32 years as an elected member of the Cincinnati school board, Mrs. Griffin had decided to retire so she can devote more time to her family. Although her decision to step down is understandable, her departure will create a void that will be very difficult to fill. A product of the Cincinnati public schools herself, Mrs. Griffin was first elected to the school board in 1967. She led the district through many tumultuous issues, including a contentious desegregation lawsuit shortly after her election, countless curriculum changes, and numerous levy campaigns. In the early 1980's, she played a key role in the development of the magnet school program to promote both racial balance and innovative, high-quality educational programming. She also is rightfully proud of the district's first alternative school--the German language academy. She has been a staunch protector of the district's magnificent art collection. She led the changes to keep this historic and unique resource intact. In fact, one of her last acts as a member of the school board was to make the Cincinnati Art Club in Mount Adams the caretaker of the collection. Her expertise in legislative and financial matters over the years made Mrs. Griffin an invaluable member of the Board, and it is in these areas that her departure will be most felt. Mr. Speaker, Virginia Griffin represents the best of public service. She served the city, especially its schoolchildren, with dignity during her 32 years of service. She deserves our thanks for a lifetime of work well done.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, the recent shootings at Columbine High School in Littleton, CO, have shocked the entire Nation. As a legislator and as a parent of three young children, I am concerned about the overall environment in which today's kids are being raised. Today's fast-paced world of the Internet, video games, and increasingly violent pop culture bears little resemblance to the America in which so many parents from my generation were raised. The increase of the incidences and ferocity of school violence are a cause for deep concern--and a call to action. During the coming weeks and months, here in the Halls of Congress-- and in school board meeting rooms, city council chambers, and in state legislatures around the country--our Nation will discuss what we can do to prevent another tragedy like Littleton. Some of the ideas we will discuss will be helpful and should be adopted. Other proposals will make us feel as through we're doing something, but will do nothing to prevent the root causes of school violence. Throughout this national dialog, I hope we do not overlook the one obvious and essential ingredient to preventing these senseless acts of violence. There is nothing more powerful than an active, concerned, and caring parent. I've seen it personally in my work on the problem of reducing teenage substance abuse and have read it in countless studies on reshaping adolescent behavior. Mr. Speaker, I would like to enter a thoughtful and insightful piece by author and columnist Laura Pulfer from yesterday's Cincinnati Enquirer into the Congressional Record which addresses the urgent need for new parenting. [From the Cincinnati Enquirer, May 4, 1999] Can Parents Utter Hardest Word of All? (By Laura Pulfer) Some hard things must be said if we are to be honest about this thing that happened in Littleton. If we are to learn anything, if we are to let it be important. The first thing is that the young men who killed the children at the high school do not belong among the victims' names--even if the in-crowd made their lives a living hell. At the memorial site near Columbine High School, an Illinois carpenter erected a set of 8-foot-high wooden crosses, 15 of them, including two memorializing the killers. Feeling guilty? An angry father of one of the victims took down the crosses for Dylan Klebold and Eric Harris, saying it wasn't appropriate to honor the shooters in the same spot. Well, of course not. What the killers did at this high school is monstrous. We might forgive then, but we will not award them martyrdom. And however, nervous--however guilty--we suburban people of means are prepared to be about our skills as parents, about our two-paycheck homes, we can say so aloud. Monstrous. The murderers took guns of incredible destruction--weapons built to perform exactly as they did--and moved from classmate to classmate, blowing them away, surely with bits of bone and brain and blood clinging to their celebrated black trench coats. This is something evil. And we need to say so. This is not the time to be our famously flexible selves with our flexible time, flexible mortgages, flexible morals. Right and wrong. Good and bad. Yes and no. We can say these words, especially to our children. In fact, it is our duty. There is a reason human offspring are sent home from the hospital with a couple of parents instead of a Visa card and the keys to an apartment. They are unformed. And uninformed. We're supposed to fill them in. Keeping tabs They don't need us to be their buddies. They have younger, cooler people willing to do that. They need snoopy, pushy, loving, know-it-all parents. A study presented Monday to the Pediatric Academic Societies convention reports that children of parents who keep close tabs on them are less likely to get in trouble. Do you suspect our parents already knew this? You know, the generation who set curfews, made us work for our spending money, made us answer a lot of annoying questions before they would allow us out of the house, nagged us about our hair and clothes. Dr. Susan Feigelman, a University of Maryland researcher who led the study, advised parents to check up on their children's friends. This is a shocking notion for many enlightened former flower children. Researchers surveyed children ages 9-15 over a four-year period. The group was asked whether their parents knew where they were after school, whether they were expected to call and say where they were going and with whom, whether their parents knew where they were at night. Children monitored by their parents were less likely to sell drugs or use them. They were less likely to drink alcohol or have unprotected sex. Dr. Feigelman said the study showed that peer groups became more influential as children get older. Probably peer groups and everything else. So it only makes sense for parents to monitor that, too. That's not repressive. That's not illegal. That is our job. If a Marilyn Manson concert is unsuitable for viewing now, why not next month? If a gun show is inappropriate in the wake of the terrible crime committed with them in Littleton, why not forever? If a violent television show is too graphic today, how about tomorrow? And when it becomes apparent that children are tormenting each other, adults need to intervene. Stop it. Even if the tormentors are popular athletes. We have to start saying some hard things. To each other. But especially to our children. Beginning with ``no.''

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I rise this evening to talk about an issue that is of crucial importance to all Americans, and that is security and peace of mind in our retirement years. It is an issue that is beginning to gain a lot more attention nationally. In fact, today President Clinton revealed his plans for so-called universal savings accounts, USA accounts, that would function much like private pension savings. Why has retirement savings become a bigger and bigger issue, taking more and more attention of this body and more and more attention at the Clinton administration? It is because we find ourselves in a retirement squeeze. Happily, Americans are living longer. That is a good thing. But we also have 76 million baby boomers, me included, who are going to begin retiring in really just a few short years. Neither our public retirement system, Social Security, nor our private pension system in this country, including 401(k) type plans and others, are ready for this retirement of the baby boom generation. In response to these challenges, Social Security's fiscal problems have become a top priority of this Congress, and that is appropriate. But we have to remember Social Security is only one component of a secure and comfortable retirement. Social Security actually was never meant to meet all the retirement needs of Americans, and for most Americans it does not. Rather, it is only one leg of a three-legged stool that supports Americans in their retirement years. The other two are personal savings, and then employer-provided retirement plans such as 401(k) plans, profit sharing plans, defined benefit plans and others. This third leg, pension savings, is crucial in giving Americans the peace of mind they need as they plan for their retirement years. And economists from across the ideological spectrum, right, left and down the middle, agree that the enhanced personal savings that comes from increased pensions are key to long-term economic growth and prosperity. But all is not well with our pension system. In fact, it is not well at all. Right now only half of American workers have any kind of pension at all. That means about 60 million American workers do not have access to one of the key components of a secure retirement. And far fewer than half of employees who work for small businesses have access to plans. In fact, only 19 percent of small businesses, those with 25 or fewer employees, have any kind of retirement savings plan at all, 401(k), profit sharing or anything. Why? Well, I think the main reason is that over the years pensions have become so costly to set up and administer that many small businesses simply cannot afford to offer them. Not enough workers have this pension coverage at the same time that our overall savings in this country is in sharp decline. The personal savings rate in this country, the amount of money people save for their retirement and for other needs, is at its lowest since 1933. Again, 76 million baby boomers starting to retire in a few short years, yet studies show that older baby boomers have only about 40 percent of the savings that they will need to avoid a real drop in their standard of living after retirement.

Mr. PORTMAN. I appreciate it. That leads me right into what I am about to talk about. The gentleman from North Dakota has been a leader on this for years, particularly on the issue of portability that I will get into in a second. I appreciate his comment. In fact we do have some solutions to this problem that we have laid out. I have joined with the gentleman from North Dakota and with the gentleman from Maryland (Mr. Cardin) to introduce what is called the Comprehensive Retirement Security and Pension Reform Act of 1999. We are committed to making the needed reforms to our Social Security system, of course. In fact, the gentleman from Maryland and I both serve on the Subcommittee on Social Security. But we are also committed to making these changes in the private pension system. We believe there is a need to increase overall retirement security, which must include leveraging of private sector dollars by expanding pensions. The Portman-Cardin bill knocks down barriers to savings by raising limits for all Americans, allowing Americans to set aside more of their earnings tax free. It untangles complex and irrational rules and cuts through red tape that burdens retirement plans and their participants, and it creates new incentives for small businesses to establish plans. The Portman-Cardin bill also allows a special catch-up contribution for older Americans who have been out of the workforce for a while perhaps, working in part-time positions, particularly important for working moms who have returned to the workforce after raising their children and want to have more of a nest egg for retirement. We also respond, as I mentioned earlier, to the new realities of a mobile workforce by allowing portability. If enacted, all these changes will expand retirement savings and make the difference between retirement subsistence and real retirement security for millions of Americans. I urge the Congress to focus on this issue and to address this problem through the Portman-Cardin bill and other legislation to reform and expand our private pension system.

Mr. PORTMAN. I yield to the gentleman from South Dakota.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I want to thank the previous speaker for being willing to offer me some time, as well as our next speaker, and also to commend the gentleman from Florida (Mr. Mica), who just gave an explanation of some of the tremendous problems we face fighting drugs in this country and in our hemisphere, for his hard work on this effort. He chairs the subcommittee and committee that deals with this issue, not only in terms of reducing the supply of drugs into our country but also the demand, which is, as he said, where I focus more. The gentleman from Florida (Mr. Mica) has taken a strong and balanced approach on this that is going to lead, over time, I think, to a much more effective policy to save our young people from the scourge of drugs. I want to thank him for what he does every day. He could be out enjoying dinner tonight, maybe be with his family. Instead, he is here on the floor, as he is so many evenings, talking about this issue as he does in his committee constantly. Mr. Speaker, I am here tonight to talk about something else. It has to do with a natural disaster. Last Friday, Mr. Speaker, a tornado ripped through the very heart of my district near where I live, near where my office is. The cities of Blue Ash, Ohio, Montgomery, Ohio, Loveland, Ohio, Symmes and Sycamore Townships were some of the communities hardest hit in Hamilton County where I live; also Deerfield Township and several other townships, Hamilton, Salem and others in Warren County, Addysten in Western Hamilton County, were hit by these high winds and devastating storm. The damage is extensive. I have spent the last few days visiting the area and meeting with victims and local officials trying to help out. Four people were killed, many injured. It is a miracle that more were not killed when one looks at the devastation. Hundreds of southwest Ohio residents are tonight without homes. In some areas, entire neighborhoods were virtually wiped out. In other areas, individual houses have been destroyed and then the house right next to it stands unscathed. Although the damage estimates are still under way, we know that there are about 900 homes that have been damaged by the storm; 200 of them have been so severely damaged that they probably will not be able to be rebuilt or they have been totally destroyed. Another couple of hundred have sustained very extensive damage. Dozens of businesses were damaged or destroyed. Tonight our hearts go out to those families who are trying to put their lives back together. There are some people who lost everything. We have seen from other natural disasters in our area, particularly the flooding in 1997, how difficult it can be for a community to rebuild after a natural disaster; and our thoughts and prayers are with everyone in these hard-hit communities. The good news is that the response to this storm has been decisive and quick. Truly, I have been overwhelmed by it. Victims are getting help. Neighbors are helping, friends are helping, total strangers are pitching in, all to get people back on their feet. I spent the last few days working with local, State and Federal officials, working alongside Red Cross and so many other volunteers, police, fire fighters from every neighborhood in our region. It has been truly heartwarming to see people throughout southwest Ohio rally around these communities. I had occasion on Saturday to tour some of the areas with the Federal Small Business Administration personnel who were sent in to evaluate the damage, and I asked them after some of our visits what they thought about this disaster and how they would compare it to the many others that they have seen around the country, earthquakes, floods, fires and so on. They said, well, the big difference we see here is the fact that your community, Congressman, really has pulled together and people are helping in every way they possibly can, businesses, individuals and so on. That, again, was heartwarming for me to hear that in the area where I live, folks have come together in a way that is so effective at helping their fellow persons. There are too many people to thank, so many people have done this, the police and fire departments in Blue Ash, Montgomery, Loveland; Sycamore and Symmes Townships, Deerfield Township, all the affected areas have been fantastic. I think they have done an outstanding job. The sheriffs' departments in Hamilton and Warren Counties provided rapid response. Emergency management throughout southwest Ohio were well prepared and well organized. Our Governor, Bob Taft, came down to the area immediately. His emergency management agency officials have been excellent, and I want to thank the Governor personally for his interest and personal concern for our area. The Hamilton County Urban Search and Rescue Task Force, so-called USAR team, has been great. They have been working along with elements of FEMA's Ohio Task Force One and they have really been a Godsend to the communities. They searched about 70 homes the morning of the tornado to make sure there was indeed an accurate count of those damaged and injured and those killed. They also searched numerous businesses to look for survivors, and they have helped since then to be sure that as the clean-up is proceeding, people are entering these homes and businesses in a safe way. Dozens of other agencies throughout the area have lent their mutual support and assistance to these devastated communities. The Red Cross, of course, and the Salvation Army have been on the scene since the start, offering help to victims and their families; and all of us owe a tremendous debt of gratitude to untold hundreds of volunteers, people who have come out to these communities, some neighbors again, some friends, some total strangers who have taken time and energy to help these folks who are in distress. Our prayers go out to the families, and our thanks and appreciation go to all the hardworking volunteers and emergency management personnel and local officials who I think have done an outstanding job at a difficult time. This clean-up process is going to be long and hard. There is still more we need to do to help families get back on their feet. One area where we have made some progress is getting relief from the April 15th tax filing deadline for tornado victims. Victims have much too much to worry about on their minds right now to worry about whether or not they get their taxes in and to worry about the IRS. We have worked with the IRS here 2 days before the April 15 deadline to get some relief, to get extensions. The IRS has had officials at my office on Montgomery Road to answer questions and help tornado victims right through April 15. People can stop by my office in Kenwood, or call us at 791-0381 to get filing extension information, to get expedited refund checks from the IRS, or to expedite the process of their tax returns. We have forms to be able to help people extend their tax filings and also to get expedited refunds. The IRS has also agreed to set up a special phone number for tornado-related problems in Cincinnati. That number is 241-2929, and after hours you can call the IRS Helpline at 1- 800-829-1040. We are making some progress, but we still need a lot more help. The Federal Small Business Administration had a disaster relief team again I joined in the district last week. FEMA officials arrived at the disaster scene to conduct a disaster assessment. I understand from local and State and Federal officials that the area is likely to meet the threshold to be declared a Federal disaster area, and I urge President Clinton to give prompt consideration to a request that may come from Ohio Governor Bob Taft shortly. I would also like to thank my colleagues on both sides of the aisle, many of whom have come up to me to express their condolences and support as the area I represent recovers from this devastating storm. Now it is time for all of us to do all we can do to help these victims pull their lives back together.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, last Friday a terrible tornado ripped through the heart of the district I represent in Southwest Ohio. Eight hundred homes were destroyed or damaged. The Cities of Blue Ash, Montgomery, and Loveland, Symmes, Sycamore and Deerfield Townships were the hardest hit. Dozens of businesses were damaged and destroyed, four people killed, 34 injured, and hundreds of southwest Ohioans are tonight without a home. Our hearts go out to these families who are now trying to put their lives back together. The good news is that they are getting help. There has been a remarkable outpouring of support from their neighbors to help people pull their lives back together. I spent the last few days working along with State and local officials, the Red Cross, other volunteers, police and fire fighters, and Federal officials from SBA and FEMA. People from every neighborhood in our region have come to help. Folks in our area have really rallied behind these hard-hit communities. Our prayers go out to the families, and our thanks and appreciation go out to all the hard-working volunteers, emergency management personnel and local officials who, I believe, have done an outstanding job at a very difficult time. But we need more help. I urge President Clinton to take prompt action on Ohio Governor Bob Taft's request that Southwest Ohio be declared a Federal disaster area.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, on March 24, 1999, the city of Sharonville, Ohio, lost one of its finest citizens. Virgil G. Lovitt, a leader in the business world as well as the community, passed away at the age of 63. A great friend to many people, myself included, he did more for Sharonville quietly from behind the scenes than most people will ever know. A very successful businessman, Mr. Lovitt founded a State Farm insurance agency in 1957. In 1985, he represented Ohio for the annual agents field planning conference at the home office in Bloomington, Illinois. He was a State Farm Millionaire Life agent over 20 times. He was one of the first State Farm agents in Ohio to receive the series 6 security license. At the time of his death, he was national director and a member of Insurance Risk Management and a committee member of the Family Motor Coach Association. However, when people think of Virgil Lovitt, most will remember his willingness to serve and his desire to improve the lives of those around him. As a result of his commitment to serve the public, he spent 1963-1975 as President of the Sharonville City Council. He was Sharonville's ward chairman for over 20 years. Mr. Lovitt was also a member of the Hamilton County Republican Central Committee and Executive Committee, chairman of the Hamilton County Tax Incentive Review Board and member of the Sharonville Chamber of Commerce. Remarkably, he made time to be involved in the civic world as well. He was a past President and Secretary of the Sharonville Kiwanis Club and started its annual Halloween party. He was honored as the Kiwanian of the year as well as Kiwanian of the year for Spiritual Aims. Mr. Lovitt was active in the Sharonville arts and crafts show for 22 years. Even more important to Virgil was his family. He was married to his wife Marilyn for 44 years and they had two children. Their son Virgil is the mayor of Sharonville, and is married to Tracey; they have three children--Amanda, Glen and Amberly. Their daughter, Vickey Sasser, is married to Dennis and they have two children--Andrea and Andrew. Virgil was a devoted husband, father and grandfather and will be missed the most by his beloved family. Mr. Speaker, Virgil Lovitt's drive to serve his fellow man can stand as an inspiration to us all. He was a true community leader and his life's work will stand as a constant reminder to me and all who knew him that service to others is a noble call to be answered.

Mr. PORTMAN

Mr. PORTMAN. Mr. Chairman, I rise in support of the fiscally responsible Republican budget plan that protects Social Security and Medicare while providing needed tax relief. President Clinton has called on Congress to use part of the so-called budget ``surplus'' to protect Social Security, strengthen Medicare and finance a number of new spending projects. But when we hear President Clinton and other Washington politicians talk about this great ``surplus'' we have to remember where it comes from--the Social Security Trust Fund. The federal government borrows money from this Trust Fund--about $99 billion last year--to finance other government spending and to mask what is, in reality, a budget deficit. In fact, if we had taken the Social Trust Fund surplus out of the federal last year, we would have been $30 billion short of a balanced budget. For the next couple of years it is expected that most of the so- called surplus will be due to the Social Trust Fund, which all of us pay into in the form of payroll taxes. Then, based on current economic projects, real surpluses from the non-Social Security portion of the budget will begin to grow as taxpayers pay more than the government needs to finance its operations. I commend my friend and colleague from Ohio, John Kasich, the members of the Budget Committee and the Republican Leadership for proposing a sensible, long-overdue change to the way the Trust Fund is treated. The Republican budget stops using the Trust Fund to mask the real size of the deficit and, instead, preserves it for Social Security. This new approach to the surplus is more honest and more fiscally responsible. It also results in more surplus being preserved for Social Security than the President has proposed. Our plan builds a wall around the Social Trust Fund--creating a ``lock box'' that preserves 100% of the ``surplus'' for Social Security's needs. By stopping Congress and the White House from spending the Social Trust Fund, we protect current and future retirees. That's why the American Association of Retired Persons (AARP) has given the Republican plan its endorsement. President Clinton's budget also calls for using 15% of the so-called ``surplus'' for Medicare. But in short term, he actually proposes to borrow money from the Social Trust Fund to shore up Medicare, while at the same time cutting almost $9 billion from Medicare to pay for new government spending. This scheme is a classic example of robbing Peter to pay Paul. It also means, when the Medicare Trust Fund runs out of money in 2009, taxpayers will foot the bill. The Republican plan also takes steps to pay down the national debt and uses honest numbers--not shady Washington accounting--to address Medicare's financial challenges. Finally, while President Clinton's budget proposal calls for $100 in new taxes at a time when tax revenues are at an historic high, our plan provides tax relief beginning in 2000 that grows substantially over the next ten years to reduce the tax burden on America's families. With this new plan, we can finally stop raiding the Social Trust Fund to pay for more government spending. Let's hope Congress rejects the old ways as represented in the President's budget, and passes an honest plan to protect Social Security, preserve Medicare and let Americans keep more of what they earn.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I rise today to pay special tribute to a distinguished resident of West Union. OH, in the Second Congressional District, Mr. Chancy Wheeler. Mr. Wheeler will turn 100 years old on June 5, and he is being honored by the Government of France for his military service in the First World War. Mr. Wheeler was born in 1899 in Mount Olivet, KY. He volunteered for the Kentucky National Guard, and then transferred into the United States Army in 1917. As a member of the First Infantry Division, 28th Regiment, First Machine Gun Brigade, he served in 1918 in the Aisne- Marne offensive, the St. Michiel offensive, and the Meuse-Argonne offensive. He was wounded twice in battle. For his actions, he received the Silver Star medal on July 21, 1918. He also received a 75th Anniversary Commemorative Medal for World War I veterans from the U.S. Army. Mr. Wheeler will receive the French Legion of Honor in a ceremony organized by VFW Post 3400 in West Union, OH, on March 12. In his letter conveying the Legion of Honor to Mr. Wheeler, French Ambassador Bujon de l'Estang wrote: ``The Legion of Honor is conferred on you by the French government as a sign of the high esteem my country has for you who personally contributed to the decisive support the United States gave to French soldiers in the defense of their country during World War I.'' Chancy Wheeler distinguished himself in the struggle to ``make the world safe for democracy'' and served his country with honor. All of us in the Second Congressional District are grateful for his service and commend him on his recognition by the French Government. I wish him health and happiness in the years to come.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I rise today to pay tribute to Lavatus V. ``Vate'' Powell, a friend and community leader, who passed away on February 17, 1999. Vate was known for his integrity, straightforwardness, and positive outlook on life. His life was centered around service to others. Vate was born in Mississippi and graduated from Jackson State University in 1955. He earned his master of science degree in 1964 from Case Western Reserve University. He was a Cincinnati Public Schools teacher from 1955 to 1965. He began his career with Procter & Gamble in 1965 as a systems analyst in the Data Processing Systems Department. He went on to hold positions in personnel, urban affairs, and public relations, before becoming public affairs manager. He went on to become vice president of Procter & Gamble's Ohio Government Relations Division, where he served until his retirement in 1997. Vate was an extraordinary community volunteer. He served as president of the Andrew Jergens Foundation; chairman of Preserving Affordable Housing; chairman of the Purcell-Marian High School Foundation and a member of the Purcell-Marian board of trustees; trustee of the Cincinnati Museum Center; member of the Partners of Children's Defense Fund, and a director of the Ohio Chamber of Commerce. He served as co- founder and treasurer of the Black Male Coalition; Capitol Revival Task Force; chairman of the Cincinnati United Way Government Affairs Committee; and president of the Board of Trustees of Family Service of the Cincinnati area. He was an elder at Carmel Presbyterian Church. In 1997, he received an Imagemaker Award from Applause magazine for his efforts to promote education. That same year, he was honored by the African American Leadership Network for his work with Procter & Gamble. Vate was a warm and caring person who gave generously of his time and talents. Cincinnati was blessed to have him as a leading citizen. Many of us were blessed to have him as a friend.

Mr. PORTMAN

Mr. PORTMAN. Mr. Speaker, I thank the chairman for yielding. Mr. Speaker, as we have heard today and just heard from the previous speaker, both in terms of politics and substance, reforming Social Security and making the needed changes to preserve the system over time is going to be very, very difficult. It is going to require bipartisanship; it is going to require trust; and it is going to require small steps, many small steps, to get us there. That is what I see this resolution being all about, it is a small step in the right direction. It is not a solution. It is not the plan to save Social Security. But it does lay out for the first time in this Congress principles, basic principles, that I hope we can agree on, on a bipartisan basis. That seems to me to be a very good starting point. I would say also that there is a need to supplement Social Security with more private retirement savings, and I hope that we can work on a bipartisan basis on that as well. This is our 401(k) plans, our IRA plans and so on. Because, ultimately, that is an important part of retirement security for all Americans. There is no reason, Mr. Speaker, that we cannot get this done and get it done this year, so long as we reach out across the aisle and work on a bipartisan basis. And I see us beginning to do that with this resolution today; and, therefore, I strongly support it.

Mr. PORTMAN

Mr. PORTMAN. Mr. Chairman, I move to strike the last word. I do not have concern with the amendment, Mr. Chairman, but I am not sure that I fully understand the explanation. I think it is the intent of our legislation here today, in fact, to have common forms when there is a similar program, and that is very clear in the legislation, and it has been very clear in the discussion up to this point. The reason this amendment does not concern me is that, when we look at the language of the bill, there could have been some confusion about whether we would be requiring a common application and reporting system for all agencies. That was never the intent of the bill. In fact, the intent of the bill was laid out very clearly in the further subparagraphs which is, again, a common application or set of common applications where the financial assistance program serves similar purposes. That is clearly the intent of this legislation. Therefore, I think this amendment is fine because it takes out any confusion as to the intent of the bill. It does not, and I want to make this clear because it is an important distinction, give the agencies any discretion. The agencies do have to come up with common application forms and common procedures to serve similar purposes. With that understanding, which I think is clear in the legislation and clear with this amendment, I certainly would be willing to support the amendment.