Statements on Introduced Bills and Joint Resolutions S. 911

CONGRESSIONAL RECORD
SENATE
PAGE S5373
April 11, 2003

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Ms. LANDRIEU (for herself and Mr. CORZINE):

    S. 911. A bill to amend the Internal Revenue Code of 1986 to provide a rebate of up to $765 to individuals for payroll taxes paid in 2001, to provide employers with an income tax credit of up to $765 for payroll taxes paid during the payroll tax holiday period, and for other purposes; to the Committee on Finance.

[Page S5374]

    Ms. LANDRIEU. Mr. President, we are living in difficult economic times. Too many people are out of work and the economy is not growing enough to put them back to work permanently. The March unemployment rate was 5.8 percent and it has been holding around this mark for about a year. More bad news came just last week when the number of jobless claims soared to 445,000 for the week ending March 29. That is the highest number of weekly claims for unemployment benefits in almost a year.

    While unemployment has been rising, other economic indicators are dropping. New orders for manufactured goods in February decreased $4.9 billion or 1.5 percent; shipments also fell 1.5 percent, the largest decrease since February of last year.

    These cold, hard numbers cannot measure the unease and uncertainty many Americans feel today. The Conference Board Consumer Confidence Index fell 2 more points in March after a 3 point drop in February. When your neighbor is out of work and cannot find a job, you worry that you might be next. So you hold off on buying that new washing machine, the new car you need to get to work, or you put that dream vacation on hold. Americans have experienced losses in their pensions and 401(k) plans. When you combine all of this with the uncertainty surrounding the war against terrorism and the war with Iraq, you create a great drag on the economy.

    I think all of my colleagues agree that the economy is not where we want it to be right now. We agree that it needs a booster shot. We have partisan disagreement over specifics and the size of the stimulus. But if we put aside our partisan differences, I believe we can come up with a bipartisan solution to help the economy in the short term.

    We can accomplish this if we agree on a few, narrow principles for an economic stimulus plan. First, we should aim toward providing an immediate boost to the economy. We do not need tax cuts that will only begin to help several years downs the road. The economy needs help today. Second, the urgent need for the boost today means that the economic stimulus plan must be simple and easy to administer so that full effects can be felt right away. Third, I believe that a stimulus plan must be fiscally responsible. While the economy needs a boost today, that boost should not come at the expense of our ability to meet our needs tomorrow. And finally, the stimulus package must be equitable. It must be fair. It should touch all Americans, not just a select few.

    Today, along with my colleague Senator CORZINE, I am introducing one idea for economic stimulus that meets all of these principles. We propose that all working Americans receive tax relief equivalent to the amount of payroll taxes paid on the first $10,000 of earnings—a total of $765. The rebate would be made in two installments. The first would come within 2 months of passage of the bill and the second would come by December 1st of this year. Employers would also receive an equivalent tax credit for their employees.

    This plan meets the principles I have outlined. It is a short-term plan that will put spending money in the hands of working Americans. It will be simple to administer—rebate checks were a part of the tax cut we passed in 2001. The plan is fiscally responsible: the rebate checks will be paid out of general revenues and not from the Social Security trust fund. Finally, this plan is fair. Every working American will benefit.

    Mr. President, I hope the Congress will act quickly to revive our economy. Today, Senator CORZINE and I are putting one idea forward. My colleagues have a variety of other ideas that they will put forward. The Senate should look at each and put together a final package that is simple, immediate, fair, and fiscally responsible.