John Thune

Mr. THUNE

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 President, I ask unanimous consent that the order for the quorum call be rescinded.

Mr. THUNE. Mr. President, I ask unanimous consent to enter into a colloquy with my colleagues from Arizona, Alabama and New Hampshire.

Mr. THUNE. Mr. President, we come to the floor today to talk about the sequestration and the looming fiscal cliff. Unfortunately, the White House missed an important deadline last week by failing to provide Congress and the American people with a required report that details the administration's plan for implementing the $1.2 trillion sequester that is scheduled to take effect on January 2 of next year, less than 4 months from now. That report on both defense and nondefense cuts came about because the administration ignored repeated requests to provide Congress and the American people with details about the impact that sequestration is going to have on critical programs, particularly with regard to our military and national defense. Members of both parties agreed that it was necessary for the White House to produce this information, and so we were glad to see that Sequestration Transparency Act bill passed, a bill with which Senator Sessions, Senator McCain, and others of us were involved. The law required the administration to produce by September 6, last week, a report on how they intended to implement sequestration. Yet so far we have not seen that report. Here we are, it is a week later, and so far President Obama has chosen to ignore a requirement that he signed into law just over a month ago. All Americans are required to play by the rules and follow the laws of the land. It seems to me, at least, the administration owes the American people and the Congress, under the law that was passed, a report that would detail the proposal they have with regard to the sequestration that is going to occur the first of next year. I think the reason that is important--it is important for a lot of reasons, but we do not have a lot of time here. If we are going to do something to avert what would be a catastrophe for our national security interests, we have to take the steps that are necessary to do that. Well, it is very hard to come up with a replacement or an alternative to what the administration proposes when we do not know what the administration is proposing. So we are hoping that when we get this report, which I hope will be soon since it is now a week overdue, we get an idea about what the administration proposes to do and then Congress can move forward, hopefully, with an alternative that would avert what would be a major disaster, as has been described by our military leadership in this country, to America's national security interests. I know the Senator from Arizona, the Senator from Alabama, and others will detail some of that, but I think it is important to point out what some of the President's own advisers have said. The Secretary of Defense Leon Panetta has issued repeated warnings about the negative impact these cuts will have on our military, saying, ``It would do catastrophic damage to our military and its ability to protect this country.'' General Odierno, Chief of Staff of the Army, said that ``cuts of this magnitude would be catastrophic to the military.'' He went on to say that ``these cuts would incur an unacceptable level of strategic and operational risk.'' It is interesting, there is a book out now by Washington Post reporter Bob Woodward, who describes President Obama and then-OMB Director Jack Lew when they were going through this process as insisting on these defense cuts during the debt ceiling negotiation. It is clear they wanted to use these defense cuts as leverage to get tax increases. In fact, if we breach the fiscal cliff, if we go over the fiscal cliff, it is now being predicted by the Congressional Budget Office that that will drive unemployment beyond 9 percent next year and plunge the country into yet another recession. In fact, they project--CBO does--that the GDP will contract by 2.9 percent during the first half of next year and by 5 percent over the entire year. Federal Reserve Chairman Ben Bernanke has also said that estimates ``do not incorporate the additional negative effects likely to result from public uncertainty about how these matters will be resolved.'' We are heading toward a train wreck. We are heading toward a disaster for America's national security interests. It all started with the fact that this Chamber has not produced a budget for now 3 years in a row. This is what you end up with when you do not have a budget. We do not have a blueprint on how we are going spend $3.6 trillion of the American taxpayers' money, so we ended up with a budget control act which was cobbled together at the last minute to avoid a crisis on the debt limit last summer which put in place a supercommittee designed to come up with these cuts. When the committee failed, this sequestration process was triggered. That was last November. We have had almost a whole year now for the administration to put forward their plan about how they would implement this sequestration, these across-the-board cuts that disproportionately impact our national security spending. It is a disservice to the American people, disservice to the Congress for the administration not only to have not put something out prior to, but now since we passed legislation that was signed into law just a month ago that required the President to put forward this report, not to have received it yet so that we can have the time that is necessary to take the action that is necessary to avoid what would be a catastrophe and a disaster for America's national security interests. I hope we will receive that report. This fiscal cliff is real. It is not just the Congressional Budget Office; a lot of the outside analysts have looked at this and come to the same conclusion; that is, if something is not done to avert these cuts and to deal with the tax increases that will occur on the first of next year, we will go over a fiscal cliff, and that could be incredibly dangerous and have catastrophic consequences for America's national security interests but also for our economy and for jobs. I would like to yield to my colleague from Arizona, Senator McCain, one of the most respected voices on national security issues and someone who has been very active on this sequester issue and trying to get the Defense Department to at least let us know what they are intending to do with regard to the cuts that are going to impact the national security interests of this country. I yield to the Senator from Arizona.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize the Services Center Federal Credit Union, SCFCU, a member-owned, not-for-profit financial cooperative located in Yankton, Springfield, and Parkston, SD. Chartered on April 2, 1962, this year marks the 50th anniversary of the SCFCU. As a community charter, membership is open to all who live or work in Bon Homme or Yankton Counties. Building upon their mission of being responsive to their members' needs by providing competitive financial services, their membership has grown to nearly 6,500 Bon Homme and Yankton County residents. As a credit union member myself, I understand firsthand the benefit of a credit union membership. Credit unions are a part of the community and they are well aware of the specific needs of their members. Their commitment to providing the best possible service is commendable, especially in the financial environment we are faced with today. The SCFCU commemorated their 50th anniversary during their annual meeting held in Yankton, SD, on June 23, 2012. I would like to offer my congratulations to the leaders and membership of the SCFCU on this milestone anniversary and wish them continued prosperity in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize Ryan and Amber Johnson of Sioux Falls, SD, as my nominees for the 2012 Angels in Adoption Award. Since 1999, the Angels in Adoption program through the Congressional Coalition on Adoption Institution has honored more than 1,800 individuals, couples, and organizations nationwide for their work in providing children with loving, stable homes. After being married for only a short time, Ryan and Amber Johnson began to consider expanding their family. After overcoming initial personal setbacks, the Johnson family decided to open their home to children in need by becoming foster parents. The couple quickly accepted the opportunity to become long-term foster parents of three siblings between the ages of 7 months and 6 years, and later, the Johnsons provided a temporary, loving home for a 4-year-old foster child. The Johnsons were soon blessed again with two Native American half-brothers as foster children. It quickly became evident to Ryan and Amber how wonderful the addition of these two boys was to their family. Shortly after, Ryan and Amber adopted Lukias, age 3, and are in the process of finalizing the adoption of his younger brother. During the adoption process, the Johnson family learned that they were pregnant, and on May 1, 2011, welcomed their newest family member, Sophia. The young family now consists of 3 siblings, ages 1, 2, and 3. Foster homes regularly see children come and go, staying for varying lengths of time. The changing environment often places an emotional toll on the caregivers who develop deep, personal relationships with their foster children. Despite the challenges that foster parents face, the Johnsons have used their life lessons to create a warm, loving home for children in need of a nurturing environment to grow and develop. Ryan and Amber plan to continue taking in foster children and possibly even expand their family by giving other children a place to call home. National Adoption Day is around the corner, and it is important to recognize the compassionate families who bring joy to the lives of children as foster and adoptive parents. It brings me great pride to be able to honor South Dakotans Ryan and Amber Johnson, my nominees for the 2012 Angels in Adoption Award.

Mr. THUNE

Mr. THUNE. I know it is very confusing, and I thank my colleague from North Dakota for yielding to his colleague from the South. I hoped to come down and to ask unanimous consent to pass S. 1956 with a committee-reported amendment. My understanding is there is an objection on the other side. I am disappointed about that. I had hoped we would be able to get unanimous consent today to pass what is a very bipartisan bill. It is the European Union Emissions Trading Scheme Prohibition Act. It is a bill that passed by voice vote earlier this week from the Commerce Committee, and a similar measure was passed earlier this year in the House of Representatives by a voice vote. The aviation industry, the administration, consumers, the U.S. Chamber of Commerce, just about everyone believes that the EU must be reined in and it must happen quickly. In fact, just this week at the Commerce Committee markup Senator Boxer, who is the chairwoman of the Environmental and Public Works Committee, and also a member of the Commerce Committee, said, referring to my bill: I think moving it fast is critical because I think it will send a message to the international organization we are trying to nudge forward and know this is the way this is going to be dealt with. I could not agree more. In 2005, the European Union began their emissions trading scheme which attempts to cap emissions of carbon dioxide from stationary sources within the European Union. Starting in 2012, in January of this year, aviation operators departing from or landing in Europe began to be included in this emissions scheme. Under this program, any airline, including non-European airlines, flying into and out of Europe will be required to pay for EU emissions allowances. Allowances will be collected for the entirety of the flight including portions in U.S. and international airspace. This is a great example of this unfair application that is happening right now. We have Olympic athletes flying to and from the London games by air. One such Olympian is from my home State of South Dakota, Paige McPherson, and she is competing in Taekwondo next week. She arrived in London last week and the final leg took her from Newark Airport to Heathrow Airport. During this flight, approximately 555 miles of the 3,500 miles flown, or 16 percent, was actually in EU airspace, but her flight was taxed as if 100 percent of it was in EU airspace. Obviously, this unilateral imposition of the EU ETS on U.S. aviation operators is arbitrary, unfair, and a clear violation of international law. Plus it is being done without any guarantee for environmental improvements and at a huge cost to the aviation industry and constituents we serve. Let me be clear that no one in Congress is against the EU implementing this European trading scheme within their boundaries. That is obviously their prerogative; that is their jurisdiction. However, I believe any system that includes international and other non-EU airspace must be addressed through the International Civil Aviation Organization, known as ICAO, of which the United States and 190 countries, including all of the EU member states, are members. That is why I introduced this simple bipartisan bill. It gives the Secretary of Transportation the authority to take the necessary steps to ensure America's aviation operators are not penalized by any system unilaterally imposed by the European Union. The bill also requires the Secretary of Transportation, the Administrator of the FAA, and other senior U.S. officials to use their authority to conduct international negotiations and take other actions necessary to ensure that U.S. operators are held harmless from the actions of the European Union. It is time for the Senate to join the House of Representatives and the administration in voicing our strong opposition to application of the European Union's emission trading scheme system to American operators. I am sorry that it couldn't be done today because, as I said, this was unanimously reported out of the Commerce Committee earlier this week. We have broad bipartisan support. Democrats and Republicans agree this is an issue that needs to be addressed. Frankly, it is one that I think could be addressed in a very timely way. The longer we wait, the longer we have American air carriers and therefore American travelers paying into a system where is no guarantee it is going to be used for any kind of environmental improvements in Europe. It is, in effect, a tax on American travelers that would fund European governments. If we want to put it in a crass way, we could say that the American public is being taxed to bail out European nations. That is as simply as I can put this. It is a violation of international law; it is a violation of American sovereignty. It is unfair, unjust, and an illegal tax. It needs to be stopped. This legislation would allow that to happen. It is unfortunate that we have an objection on the other side to prevent that from happening tonight. I intend to work with my colleagues to get a vote on this when we return in September. I want to thank my colleague from North Dakota for his graciousness in allowing me to make that statement. I yield the floor.

Mr. THUNE

Mr. THUNE. Mr. President, today I would like to take this opportunity to honor Judy Kroll of Volga, SD. Judy Kroll has spent her career serving the community of Brookings, SD, in her capacity as an educator, as well as the director of the thriving speech and debate program at Brookings High School. Judy, who retired this summer, served as a South Dakota educator for 37 years, teaching in both Madison and Parkston before starting at Brookings High School in 1980. During her 32 years as an educator and debate coach in Brookings, she has left an indelible impact on her students, dedicating an immeasurable amount of time to positively impacting the lives of young people. Judy has devoted countless hours to advance the critical and analytical skills of those students who she taught, coached, and mentored. During her coaching career, Judy has been awarded South Dakota Forensic Coaches Association Coach of the Year on numerous occasions and coached her students to multiple State championships in various speech and debate events. Her success as a coach was also demonstrated at the national level. She coached policy debate teams to 2nd and 3rd place finishes in 2000 at the National Forensics League National Speech and Debate Tournament and a 7th place finish earlier this summer at the same tournament. Judy's longstanding involvement in the debate community has been recognized not only by her South Dakota peers, but at a national level as well. In 2011, she was admitted to the National Forensics League Hall of Fame. Of the thousands of debate coaches who have been a part of the National Forensics League since its inception in 1925, only 158 individuals have earned this honor. Judy is one of four South Dakotans to have received this honor. In addition, she was recently named the 2012 National Forensics League Coach of the Year. This award recognizes Judy's outstanding leadership and commitment to National Forensic League activities. Judy's receipt of this award marks only the second time a South Dakotan has received such an honor since it was first awarded in 1953. During her teaching and coaching career, Judy encouraged her students to never give up on accomplishing their goals. She promoted outstanding sportsmanship and for years a large display in her classroom read, ``What is popular is not always right, and what is right is not always popular.'' Judy exemplified for her students the importance of working hard and attaining success without compromising ethics and sense of doing what is right. I join Judy's family, friends, and students in recognizing her meritorious work and extend my sincere thanks and appreciation to Judy for all she has done for her students and the State of South Dakota, and wish her the best in her retirement.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize James Whitcher, an intern in my Washington, DC, office, for all of the hard work he has done for me, my staff, and the State of South Dakota over the past several weeks. James is a graduate of Hot Springs High School in Hot Springs, SD. Currently, he is attending the University of Mary in Bismarck, ND, where he is majoring in athletic training. He is a hard worker who has been dedicated to getting the most out of his internship experience. I extend my sincere thanks and appreciation to James for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize Kody Kyriss, an intern in my Aberdeen, SD, office, for all of the hard work he has done for me, my staff, and the State of South Dakota over the past several weeks. Kody is a native of Lesterville and a graduate of Menno High School. Currently, he is attending Northern State University, where he is pursuing degrees in English and political science. He is a very hard worker who has been dedicated to getting the most out of his internship experience. I would like to extend my sincere thanks and appreciation to Kody for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize Brendan Smith, an intern in my Washington, DC, office, for all of the hard work he has done for me, my staff, and the State of South Dakota over the past several weeks. Brendan is a graduate of Lyman High School in Presho, SD. Currently, he is attending South Dakota School of Mines and Technology where he is majoring in chemical engineering. He is a hard worker who has been dedicated to getting the most out of his internship experience. I extend my sincere thanks and appreciation to Brendan for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize Megan Raposa, an intern in my Sioux Falls, SD, office, for all of the hard work she has done for me, my staff, and the State of South Dakota over the past several weeks. Megan is a graduate of St. Thomas More High School in Rapid City, SD. Currently, she is attending Augustana College where she is majoring in business communications and government. She is a hard worker who has been dedicated to getting the most out of her internship experience. I would like to extend my sincere thanks and appreciation to Megan for all of the fine work she has done and wish her continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize Tyler Fitz, an intern in my Washington, DC, office, for all of the hard work he has done for me, my staff, and the State of South Dakota over the past several weeks. Tyler is a graduate of Roosevelt High School in Sioux Falls, SD. He is also a graduate of South Dakota State University where he majored in history and Spanish. He is a hard worker who has been dedicated to getting the most out of his internship experience. I extend my sincere thanks and appreciation to Tyler for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize Stephen Goodfellow, an intern in my Sioux Falls, SD, office, for all of the hard work he has done for me, my staff, and the State of South Dakota over the past several weeks. Stephen is a graduate of Boiling Springs High School in Boiling Springs, PA. Currently, he is attending the University of South Dakota where he is majoring in economics and finance. He is a hard worker who has been dedicated to getting the most out of his internship experience. I would like to extend my sincere thanks and appreciation to Stephen for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize Allyson Burns, an intern in my Rapid City, SD, office, for all of the hard work she has done for me, my staff, and the State of South Dakota over the past couple of months. Allyson is a graduate of Stevens High School in Rapid City, SD. Currently, she is attending Creighton University in Omaha, NE where she is majoring in psychology and creative writing. She is a hard worker who has been dedicated to getting the most out of her internship experience. I extend my sincere thanks and appreciation to Allyson for all of the fine work she has done and wish her continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I recognize Alex Hall, an intern in my Washington, DC, office, for all of the hard work he has done for me, my staff, and the State of South Dakota over the past several weeks. Alex is a graduate of Lincoln High School in Sioux Falls, SD. Currently, he is attending the University of New Mexico where he is majoring in philosophy and psychology. He is a hard worker who has been dedicated to getting the most out of his internship experience. I extend my sincere thanks and appreciation to Alex for all of the fine work he has done and wish him continued success in the years to come.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize the 50th anniversary of construction of the Oahe Dam. In December 1944, President Franklin D. Roosevelt approved the Flood Control Act. This set into motion the construction of several dams across South Dakota. Construction on the Oahe Dam commenced in 1948 and was completed in 1962. In August of 1962, President John F. Kennedy dedicated the dam located in central South Dakota on the Missouri River. The dam was a massive endeavor for the U.S. Army Corps of Engineers, standing 245 feet tall with an earth fill volume of 92 million cubic yards and a concrete fill volume of 1,122,000 yards. The reservoir stretches 231 miles to Bismarck, ND. The Oahe Dam is the 14th largest manmade reservoir in the world. Oahe Dam is beneficial not only to South Dakota but throughout the Midwest. The powerplant on the dam is the largest producer of energy on the Missouri River. North Dakota, South Dakota, Nebraska, Minnesota, and Montana receive power produced by the Oahe Dam. Local farmers and ranchers benefit from the irrigation that is provided from the reservoir. I would like to recognize the efforts of all those who have contributed to the construction and maintenance of the Oahe Dam. It has become one of South Dakota's greatest resources.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize the 75th anniversary of Grossenburg Implement. The company was founded during the Great Depression in 1937 by Charles Jacob Grossenburg in Tripp County, SD. The demand for two-cylinder tractors during World War II led to the company's success and prosperity. Since then, Grossenburg Implement has stayed true to their mission statement ``to provide the best product at a reasonable price and with the highest level of service.'' Along with products from John Deere, Grossenburg sold Oldsmobile and Cadillac automobiles. Throughout the years, the Grossenburg family remained dedicated to quality service and continued success. Charlie, son of Barry and Marilyn Grossenburg, represents the fourth generation of the family business and is now the vice president. In 1998, Grossenburg Implement continued its success by adding a combine shop in Winner and subsequently an overhead crane to the shop in 2005. In 2009, the company also celebrated the opening of another combine shop in Pierre. Most recently in 2012, the company expanded their business by purchasing Northeast Equipment, Inc. in Nebraska. Today, the company has grown from one store to a projected $150 million company. I would like to congratulate the Grossenburg family and the employees of Grossenburg Implement for 75 years of success and wish them a prosperous future.

Mr. THUNE

Mr. THUNE. If I might say to my colleague from Mississippi and to the Senator from Indiana, to put this into perspective, the proposal in the Democratic bill, which would take the exemption back down to $1 million and raise the top rate to 55 percent, would apply to 24 times the numbers of farms and ranches as does current law. In other words, it increases by 24 times the number of family farms and ranches that would be impacted by the estate tax relative to where we are under current law. As the Senator from Mississippi pointed out, lots of mom-and-pop businesses--13 times the number of small businesses--would now be subject to the death tax as is the case with current law. So if we look at the impact of this, certainly on farm and ranch country--and I see that Senator Moran is here, who represents a lot of farmers and ranchers very much like those in my State of South Dakota--this is profoundly impactful. It would have a very negative impact on farm and ranch country--and I also argue, as the Senator from Mississippi pointed out--and on a lot of mom-and-pop small businesses.

Mr. THUNE. Mr. President, if I might respond to my colleagues from Mississippi and from Indiana, the Senator from Mississippi is absolutely right. The proposal we will vote on as presented by the Democrats today would allow the death tax exemption to go back to $1 million, that is the pre-2001 level, and apply a 55-percent tax rate on top of that. To give you an example of how that might work in a State such as mine, I represent South Dakota. The average size farm in my State is a little under 1,400 acres. And if you look at the average value per acre of land and multiply it by the size of the average farm, you are talking about an average farm of between $2 million and $2.5 million in value. You could be talking about--and this is average, and we have a lot of farms that will be impacted more significantly than this. But you will be subjecting about $1.5 million of that farm's value to a 55-percent tax rate; and 84 percent of the value of farm assets, according to USDA, is in real estate. They are land rich but cash poor. What happens? When the IRS comes calling after somebody passes away and says: Your farm is worth this amount, we are going to assess a 55- percent tax, they will say: We cannot pay that. We have it in land but not cash. So they have to sell land, assets, and equipment to pay the IRS. Here we are trying to promote the intergenerational transfer of farms and ranches as part of the tradition and backbone of our economy, and this is the absolute opposite of what we ought to be encouraging. We want policies that encourage the situation that family farms and ranches stay in the family. Having a confiscatory tax like this that would apply a 55-percent tax to assets above $1 million will have a crushing impact on farms and ranches in my State and, I submit, to other States.

Mr. THUNE. Mr. President, I ask unanimous consent that I be able to enter into a colloquy with my colleagues for the remainder of that time.

Mr. THUNE. Mr. President, I think we have about one-half hour left; is that correct?

Mr. THUNE. I thank the Senator from Kansas. I too look forward to working with him on fundamental tax reform, because that is what we need to do to get the economy turning around. I think you will see tremendous economic growth. I think you would see our economy unleashed if we would reform our Tax Code in a way that broadens the tax base and lowers the rates. The Senator from Kansas talked about the fair tax-- certainly another proposal out there that many people support. But in any event, we do need a fundamental tax reform. And it would be nice if, when we do that, we do away with the death tax completely. With that being said, what is being proposed here today, as we have all pointed out, is something that in many cases in places such as Kansas and South Dakota--and our colleague, the Senator from Wyoming, Senator Barrasso, is now here, who represents a rural State, a State where you have a lot of folks with big expanses of land. There are many people in agriculture who are land rich and cash poor. The Senator from Kansas pointed out that when you have an operation that exceeds that $1 million threshold that is being proposed in the Democratic tax plan and then everything above that in terms of the value of your assets is taxed at that top marginal rate of 55 percent, then you are in many cases having to sell pieces of your operation in order to pay the IRS--or, worse yet, going to the bank to borrow money, in which case you may not be able to repay it. But this creates all kinds of problems for people who are involved in the day-to-day production of agriculture when it comes to keeping that operation in the family. I appreciate the observations of the Senator from Kansas and his insights based upon his experience and the people he represents. I too look forward to the day when we are debating fundamental tax reform. But until that comes, we shouldn't be raising taxes. We shouldn't be raising taxes in this type of an economy where we have as many people unemployed as we do, we have sluggish economic growth. And we certainly shouldn't be punishing family farmers and ranchers and small business people with what is a punitive death tax proposal coming out of the Democrats in the plan we are about to vote on at 4:00. I yield to my colleague from Wyoming who is here, again, representing a State much like mine and much like the Senator from Kansas, who has a lot of people who would be impacted by this Draconian tax.

Mr. THUNE. I appreciate the remarks of my colleague from North Dakota who understands this issue very well, representing a State that is composed largely of family farms and ranches and small businesses. It is similar to my State of South Dakota, similar to Senator Moran's State of Kansas. We share not only a lot of commonalities in terms of how we make our living but also in the kind of hard-working people who are the backbone, as my colleague said, of our country. There is a work ethic among people involved in working the land, people who are involved in agriculture, that we hope gets rewarded. One of the ways that gets rewarded is when someone works very hard all their life--and that is very true in agriculture. There are very few jobs in agriculture that are easy. It is a hard way to make a living. The men and women who are involved in production agriculture have, in my view, among the best work ethic in the country, and we want to see that hard work rewarded. One of the ways we hope that gets rewarded is when it comes time to pass that operation on, to allow that operation to be handed off to the next generation so they, too, can benefit from that hard work and build that enterprise and grow the family farm in a way that is good for our economy generally and certainly good for the economy in places such as North Dakota, South Dakota, and Kansas. That is why a proposal such as this is so devastating, because you are subjecting 24 times more farms and ranches in this country to the death tax than are currently exposed to it under current law. This is a dramatic increase in the number of folks who would be impacted by the death tax--obviously a significant increase in the amount people are going to be forced to pay when the time comes. I think at a time when we are facing unemployment now for 41 consecutive months over 8 percent, some 23 million Americans either unemployed or underemployed, and some Americans have been unemployed for a longer period of time, one thing we don't need in the middle of this kind of economy is a big fat tax increase. That is what the Democratic proposal does--not just on the estate tax but also the marginal income tax rates going up on small businesses on January 1. There will be almost 1 million businesses impacted by higher rates, which employ 25 percent of the workforce in this country, as well as increasing taxes on investment, on capital gains, and dividends. A big fat tax increase in the middle of a very fragile economy is the wrong prescription. I would hope, as the Senator from North Dakota suggested, that our colleagues on both sides will support the alternative we will put forward which will extend the rates for all Americans, so not any American is faced with higher taxes come January 1 of this year. I think it would be devastating for our economy to do that. Certainly it would be devastating to the family farms and ranches in places such as the Midwest. I know my colleague from Kansas understands very well, because he represents the same kind of people we do in the Dakotas. They are hard working. All they want to know is that they have an opportunity to be able to benefit from that hard work and hopefully pass it on to the next generation when the time comes.

Mr. THUNE. Mr. President, I first want to thank the Senator from Indiana for his very astute observations about the impact of these taxes on hard-working men and women in this country. I would say to my colleague from North Dakota, who is now here, and the Senator from Kansas--both of whom represent very rural States--this is not an issue that is inconsequential. A lot of people think people who have $1 million in assets are rich. But as I said earlier, in most farm and ranch operations, 80 percent of the value of that is in real estate. So they may be land rich but cash poor. When we talk about imposing a tax of this size on hard-working farmers and ranchers in this country, we are getting at the very heart, as the Senator from Kansas pointed out, of their ability to transfer that farm or ranch operation to the next generation. That is what is at stake. The Senator from North Dakota is here, and the farmland in North Dakota is similar to what we have in South Dakota, except they have energy. They found oil in a few places in North Dakota, which drives those land values up even higher. We would like to see some of that in South Dakota, but in either of the Dakotas or in Kansas we have seen land values going up in the past few years and it takes a bigger operation to make it work to survive in modern agriculture. So the size of these operations, in many cases, exceeds by multiples the million- dollar exemption that would be allowed by the Democratic proposal, and everything above that, as was said, would be taxed at 55 percent, which would be absolutely disastrous for American agriculture today, and that is on top of the other taxes. This proposal also raises taxes on about 1 million small businesses that employ about 25 percent of the American workforce. It raises taxes on capital gains and dividends and then it puts this death tax back into place with the million-dollar exemption. As I said earlier, if we look at the number of people who would be subject to and covered by the death tax today, this proposal would increase those people subject to whom the death tax would apply by 24 times--a 2,400-percent increase in the number of people who would be subject to the death tax, according to the Joint Committee on Taxation. That is the group that studies these issues and that looks at the impact of tax policy. According to the Joint Committee on Taxation, 24 times more farmers and ranchers would be subject to the death tax than are subject to it today and 13 times more small businesses. That is the scale of the proposal the Democrats have put forward. I would say to my colleague from North Dakota, my neighbor, that I assume, as he talks to farmers and ranchers in his State, he gets the same sort of feedback I do in visiting with people in South Dakota; that is, they are very concerned about what would be a huge tax increase, so to speak, when someone passes on and tries to pass that operation on to the next generation.

Mr. THUNE

Mr. THUNE. Mr. President, today I wish to recognize Derek Miles of Tea, SD, who will compete in the 2012 Summer Olympic Games taking place in London, England. This will be his third consecutive trip to the Summer Olympic Games. Derek has a long history of success as a pole vaulter, including three U.S. National Championships, 10 years ranked in the top 10 in the U.S.--4 of which he has been ranked No. 1, and 6 years ranked in the top five in the world. Derek is currently working as an assistant pole vault and jumps coach at the University of South Dakota where he graduated from in 1996 as a four-time NCAA Division II All-American with a bachelor's degree in history. Derek also earned his master's in athletic administration at the University of South Dakota in 1998 and was inducted into the Henry Heider Coyote Sports Hall of Fame in 2006. In addition to his personal accomplishments, Derek has coached multiple conference champions and organized the Miles Pole Vault Summit bringing the world's best pole vaulters to Vermillion, SD, in 2007. Derek should be very proud of all his accomplishments. On behalf of the State of South Dakota, I am pleased to say congratulations on another Olympic qualification. We are very proud and wish you the best of luck.