Security and Accountability for Every Port Act

SECURITY AND ACCOUNTABILITY FOR EVERY PORT ACT -- (Senate - September 14, 2006)

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Mrs. LINCOLN. Mr. President, I compliment and applaud the leadership of Senator Baucus in working to get the retired tax incentives renewed.

Did I hear the Senator correctly, the welfare-to-work and work opportunity tax credits expired at the end of 2005? Is it true that these credits have expired and we in Washington have yet to renew them, and 20,000 businesses have not been able to use this important tool?

We are here to provide tools to businesses to grow the economy, to grow the jobs. I know the good Senator from Montana traveled his State, as I did in Arkansas, in August. People are concerned about the economy. They are concerned about their jobs.

We are talking 20,000 businesses? Did I hear the Senator correctly?

Mr. BAUCUS. The Senator is correct. That is the number that use this work opportunity tax credit. We are trying to employ people. People are trying to get to work.

Mrs. LINCOLN. That is amazing. The objective is to get people off welfare, get them independent and into the jobs.

I think I heard the Senator correctly, as well, because we failed to renew the teacher expense deductions, more than 3 million schoolteachers nationwide--and there are a tremendous amount of Arkansas schoolteachers who give out of their own pockets to bring those supplies in their classrooms--those teachers are going to be paying higher taxes this year if we don't act now?

Mr. BAUCUS. If we do not enact this legislation and make it retroactive this year.

Mrs. LINCOLN. Mr. President, we have had numerous opportunities to renew important tax incentives. Earlier this year we had an opportunity in the tax reconciliation. The priority was to deal with tax cuts that had not even expired or were not going to expire--the dividend deduction and the capital gains.

With tax cuts that have expired, businesses are not going to be able to take advantage of work opportunity tax credits, in research and development. We know we are falling behind in stem cell research. We have businesses that want to make those investments in research and development and be the best they can be in the global marketplace.

These businesses have not been able, is that correct, to realize that tool and use that tax deduction for at least the first three quarters of this year?

Mr. BAUCUS. That is right, at a time when other countries give very generous assistance to their companies in developing research and development so those countries can compete in the global economy.

Mrs. LINCOLN. Once again, I applaud Senator Baucus's leadership and his tenacity to come out and say we have a limited amount of time left.

We have businesses out there that want to grow, that need the tools to grow. Yet these issues, things that we do every year to put into the toolboxes of our business, corporate America, our teachers, and others to be able to do the incredible things that make America great. Yet we are just sitting here. We are not doing it. They are being held hostage because we want to put all these eggs into one basket.

I have been very outspoken about my support for the estate tax reform, but there is no reason these extenders should be held hostage to all of these other things that people want to crowd into one basket.

The bottom line is, by failing to renew these incentives, as Senator Baucus has said, for responsible behavior such as savings and getting a college education, we are raising the taxes on many of our hard-working American families this year.

I applaud the Senator and I appreciate and am grateful for the leadership.

Mr. BAUCUS. And the answer to the Senator's implied question is, yes, all of that will occur if we do not get this passed. That is correct.

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