[Congressional Record: April 17, 2007 (Senate)]
[Page S4559-S4562]



          INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2007

  The PRESIDENT pro tempore. Under the previous order, the Senate will
resume consideration of S. 372, which the clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 372) to authorize appropriations for fiscal year
     2007 for the intelligence and intelligence-related activities
     of the United States Government, the Intelligence Community
     Management Account, and the Central Intelligence Agency
     Retirement and Disability System, and for other purposes.

  Pending:

       Rockefeller/Bond amendment No. 843, in the nature of a
     substitute.
       Collins amendment No. 847 (to amendment No. 843), to
     reaffirm the constitutional and statutory protections
     accorded sealed domestic mail.

  The PRESIDING OFFICER (Mr. Casey). The Senator from West Virginia.
  Mr. ROCKEFELLER. Mr. President, the Republican manager, Senator Bond,
and I and our staffs have been working together to clear some
amendments, and we have in fact cleared already 10 amendments. I now
ask unanimous consent that it be in order for the Senate to consider en
bloc the following amendments, that they be agreed to en bloc, and that
the motions to reconsider be laid upon the table en bloc. These were
agreed to by both sides and have been cleared by all parties. The
numbers of the amendments are 845, 846, 856, 858, 859, 860, 861, 862,
863, and 872.
  The PRESIDING OFFICER. Is there objection to the several requests?
  Mr. COBURN. Mr. President, I object.
  The PRESIDING OFFICER. Objection is heard.
  The Senator from Missouri.
  Mr. BOND. Mr. President, it is very important that we move forward
with this bill. We have given time for our colleagues to debate and
raise other questions. We would ask that we be able to proceed in a
reasonable timeframe to take up amendments which have been introduced
by the chairman and the vice chairman together and reflect bipartisan
agreement. As vice chairman, I am firmly committed to passage of
intelligence reauthorization. I would say further it remains my
intention to reduce the partisanship and politicization of intelligence
matters.
  Events on the Senate floor yesterday, including direct personal
attacks on me, indicate this remains a tall order. This bill makes
getting a bill harder, and it is already hard enough. Given the kitchen
sink provided in the administration's Statement of Administration
Policy indicating a possible veto, the chairman and I are trying in
good faith, as the chairman indicated, to work through 9, 10, or a
dozen amendments to correct the major objections that the
administration has.
  The administration must know that as we try to weigh their key
priorities, they must respect our priorities and our fundamental
oversight responsibility which I and the Members of this body should
take seriously, as any Senator will.
  As for yesterday's events, Senator McConnell manages the floor for
the minority. He did not want to end the debate prematurely and the
opportunity to offer amendments by the minority, especially with 18
Members absent from the Senate due to bad weather. I supported him
because it is the responsibility of our two leaders to manage the floor
debate and to protect the rights of minorities and absent Senators.
While the attacks on me were inappropriate and offensive, I will
continue to work for passage of this intelligence reform measure, which
is one of the most important bills we can pass in this session. The
measure is too important to be derailed by personal and political
attacks.
  My friends on the other side of the aisle want more oversight of
intelligence. I agree. We got into problems prior to 9/11 because we
didn't have good oversight. We have found that there are holes that
need to be plugged in oversight. We need to move forward. But forcing
an end to the debate with 18 Members absent was not the way to do so. I
am hoping that we can show progress by adopting amendments and moving
this bill forward to exercise our oversight to provide the intelligence
community the direction they need. Our desire is to move forward in the
regular order, work our way through amendments, work out a time
agreement, dispose of amendments, and hopefully conclude with a bill
that most, if not the overwhelming majority, of Members can support so
we can get to conference and continue the process.
  I will continue to work with the chairman under the difficult
circumstances that he and I both face. I am not for delay or any
effort, real or imagined, to kill this bill, but I have honest
concerns, as others, that there should be an opportunity to address
through the regular order in a reasonable timeframe. If there are
unreasonable delays, then we will pursue other options which are
necessary sometimes to move a bill.
  Because of the difficult division present in recent years over these
issues, we have been unable to get an authorization bill passed. I find
that unacceptable, and I am committed to finding a bill, but it can't
be just any bill. It must be the product of give and take and mutual
respect and compromise between both parties and both bodies and one the
administration can sign.
  Mr. ROCKEFELLER. Will the vice chairman yield?
  Mr. BOND. Yes.
  Mr. ROCKEFELLER. Mr. President, the Senator from Oklahoma has
indicated to me that he will not object to the managers' amendment
going forward, if he would be allowed to finish what he was talking
about, which I assume would happen within the next 5 or 8 minutes. If
that is the case, then we will have made progress.
  Mr. BOND. Mr. President, I didn't mean to cut the Senator off. For
the movement of this bill, we had hoped to

[[Page S4560]]

be able to clear some amendments so we could show progress, but the
Senator from Oklahoma is seeking recognition. I am sure he has some
important things to say. I hope we will finish in time to allow us to
pass the cleared amendments prior to 12:30. I apologize to the Senator
from Oklahoma and thank the Chair.
  The PRESIDING OFFICER. The Senator from Oklahoma.
  Mr. COBURN. I ask unanimous consent to speak as in morning business
for the next 10 minutes.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                                Earmarks

  Mr. COBURN. Mr. President, it is very important we not leave the
debate on earmarks. What we saw was an issue about the integrity of
Congress which Senator DeMint and myself have been championing. There
are only 4 Members of the Senate who don't offer earmarks, 4 out of 100
who don't play the game of earmarks. It is important that the American
people know that if we are going to have earmarks, it ought to be
clearly identified. We ought to know who is benefiting, who is getting
the money, who is sponsoring the money, and what the outcome will be.
It is great that the Appropriations Committee has just stated that they
are going to voluntarily accede to the rules we passed 98 to 0, except
there is one small problem with that; the fact is, there is no
enforcement of the rules available to Senators when they violate that
very point, which means they may follow that, but if, in fact, they do
not, we have no course of action with which to raise a point of order
when they do not.

  I wish to go back to something the esteemed Senator from Illinois
said, which is, we have gotten what we want. No, we have not. We have
not gotten it until the American people get the transparency they need
about how the Congress operates. If you eliminate earmarks in
appropriations but do not eliminate earmarks in authorizations, what is
authorized as an earmark will come to the appropriation as not an
earmark because it is then authorized, so we will play the same game
but one step further back.
  I am disappointed at the leadership, that they would block what the
American people so fully want. And the idea we have to conference what
should be a Senate rule, when the House has already passed a rule--they
operate under the very same thing Senator DeMint has asked for--all we
have to do is agree we will, in fact, abide by those rules by accepting
that as a rule of the Senate. Anything less than that is political
Washington doublespeak which the American people are tired of.
  There should not be one earmark, one special favor, one indication of
anything done at any level--authorization or appropriations--the
American people are not fully aware of as to who has the vetted
interest and who will be the benefactor and what the motivations might
be in association with that.
  So the fact the majority objects to incorporating what we obviously,
supposedly, all agreed to--or was it the fact that people voted for it
because the people wanted us to and now we will not carry it out? What
it does, by not adopting this rule, Senator DeMint's rule, is we
undermine again the integrity of this body.
  The American people deserve transparency. The American people should
have transparency. The only way we can truly be held accountable by the
American people is if they can see everything that is going on.
  To deny this rule, to deny the fact we are going to operate in the
open, to deny the fact we are going to be held accountable is exactly
what the American people are sick of.
  I remind my colleagues we do not have a higher favorability rating
than the President at this time, whom we are so quick to impugn, and
the reason we do not is the very reason we saw in the objection placed
on this rule, this resolution. To me, it is a sad day in the Senate
because we are playing games again with the American people. I said,
after we passed the ethics bill, it will be a long time until we see
anything. It will be a long time. It has already been a long time. Why
hasn't it been conferenced? There have been 80 days to conference an
ethics bill. There has not been the first step. There has not been the
naming of conferees. There has not been the first step to move forward
toward that.
  The American people should surmise--and correctly--the Congress still
wants to work in the shadows, they still do not want to have
transparency; therefore, they still do not want to be held accountable
by the American people.
  I thank you for the time and yield back, and I will offer no
objection to the request of the Senator from West Virginia to accept
amendments on the Intelligence authorization bill.
  I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. CORNYN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. CORNYN. Mr. President, I ask unanimous consent to set aside the
pending amendment so I may call up amendments Nos. 848, 849, 850, 851,
852, and 853, en bloc.
  The PRESIDING OFFICER. Is there objection?
  Mr. ROCKEFELLER. Objection.
  The PRESIDING OFFICER. Objection is heard.
  Mr. ROCKEFELLER. Mr. President, as I indicated before, the
distinguished Republican manager, Senator Bond, and I and our staffs
have been working together to clear some amendments. We have cleared
10. I now ask unanimous consent that it be in order for the Senate to
consider en bloc the following amendments, that they be agreed to en
bloc, and the motions to reconsider be laid upon the table, en bloc.
The amendment numbers are 845, 846, 856, 858, 859, 860, 861, 862, 863,
and 872.
  The PRESIDING OFFICER. Is there objection?
  Mr. CORNYN. I object.
  The PRESIDING OFFICER. Objection is heard.
  Mr. ROCKEFELLER. Would the Senator yield?
  Mr. CORNYN. Mr. President, I believe the Senator from West Virginia
has the floor. I don't.
  The PRESIDING OFFICER. The Senator from West Virginia is recognized.
  Mr. ROCKEFELLER. The Senator from West Virginia would be interested
as to why it is the distinguished Senator from Texas objects.
  Mr. CORNYN. Mr. President, let me suggest the absence of a quorum.
  The PRESIDING OFFICER. The Senator from West Virginia has the floor.
  Mr. ROCKEFELLER. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. CORNYN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                 Amendment No. 849 to Amendment No. 843

  (Purpose: To amend chapter 113B of title 18, United States Code, to
  prohibit the recruitment of persons to participate in terrorism, to
     provide remedies for immigration litigation, and to amend the
 Immigration and Nationality Act to modify the requirements related to
   judicial review of visa revocation and to modify the requirements
      related to detention and removal of aliens ordered removed)

  Mr. CORNYN. Mr. President, I ask unanimous consent to set aside the
pending amendment and call up Amendment No. 849.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  The clerk will report.
  The assistant legislative clerk read as follows:

       The Senator from Texas [Mr. Cornyn] proposes an amendment
     numbered 849 to amendment No. 843.

  (The amendment is printed in the Record of Monday, April 16, 2007,
under ``Text of Amendments.'')
  Mr. CORNYN. Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from West Virginia is recognized.


Amendments Nos. 846, as modified; 856, 858, 859, 860, as modified; 861,
as modified; 862, 863, and 872, as modified, en bloc, to amendment No.
                                  843

  Mr. ROCKEFELLER. Mr. President, I resume my request which I will make
in full, and that is that the Republican

[[Page S4561]]

manager, Senator Bond, and this Senator from West Virginia and our
staffs have been working together to clear some amendments. We have
cleared 10 amendments--9 amendments. I ask unanimous consent that it be
in order for the Senate to consider en bloc the following amendments,
that they be agreed to en bloc, and the motions to reconsider be laid
upon the table en bloc. Those amendment numbers are 846, 856, 858, 859,
860, 861, 862, 863, and 872.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  The amendments were agreed to, as follows:


                     amendment no. 846, as modified

       On page 37, between lines 19 and 20, insert the following:
       ``(7) develop 15-year projections and assessments of the
     needs of the intelligence community to ensure a robust
     federal scientific and engineering workforce and the means to
     recruit such a workforce through integrated scholarships
     across the intelligence community, including research grants
     and cooperative work-study programs;


                           amendment no. 856

 (Purpose: To strike the requirement for a study on the disclosure of
                  additional intelligence information)

       Beginning on page 11, strike line 18 and all that follows
     through page 12, line 20.


                           amendment no. 858

      (Purpose: To improve the notification of Congress regarding
        intelligence activities of the United States Government)

       Strike section 304 and insert the following:

     SEC. 304. IMPROVEMENT OF NOTIFICATION OF CONGRESS REGARDING
                   INTELLIGENCE ACTIVITIES OF THE UNITED STATES
                   GOVERNMENT.

       (a) Clarification of Definition of Congressional
     Intelligence Committees to Include All Members of
     Committees.--Section 3(7) of the National Security Act of
     1947 (50 U.S.C. 401a(7)) is amended--
       (1) in subparagraph (A), by inserting ``, and includes each
     member of the Select Committee'' before the semicolon; and
       (2) in subparagraph (B), by inserting ``, and includes each
     member of the Permanent Select Committee'' before the period.
       (b) Notice on Information Not Disclosed.--
       (1) In general.--Section 502 of such Act (50 U.S.C. 413a)
     is amended--
       (A) by redesignating subsections (b) and (c) as subsections
     (c) and (d), respectively; and
       (B) by inserting after subsection (a) the following new
     subsection (b):
       ``(b) Notice on Information Not Disclosed.--(1) If the
     Director of National Intelligence or the head of a
     department, agency, or other entity of the United States
     Government does not provide information required by
     subsection (a) in full or to all the members of the
     congressional intelligence committees, and requests that such
     information not be so provided, the Director shall, in a
     timely fashion, notify such committees of the determination
     not to provide such information in full or to all members of
     such committees. Such notice shall be submitted in writing in
     a classified form, include a statement of the reasons for
     such determination and a description that provides the main
     features of the intelligence activities covered by such
     determination, and contain no restriction on access to this
     notice by all members of the committee.
       ``(2) Nothing in this subsection shall be construed as
     authorizing less than full and current disclosure to all the
     members of the Select Committee on Intelligence of the Senate
     and the Permanent Select Committee on Intelligence of the
     House of Representatives of any information necessary to keep
     all the members of such committees fully and currently
     informed on all intelligence activities covered by this
     section.''.
       (2) Conforming amendment.--Subsection (d) of such section,
     as redesignated by paragraph (1)(A) of this subsection, is
     amended by striking ``subsection (b)'' and inserting
     ``subsections (b) and (c)''.
       (c) Reports and Notice on Covert Actions.--
       (1) Form and content of certain reports.--Subsection (b) of
     section 503 of such Act (50 U.S.C. 413b) is amended--
       (A) by redesignating paragraphs (1) and (2) as
     subparagraphs (A) and (B), respectively;
       (B) by inserting ``(1)'' after ``(b)''; and
       (C) by adding at the end the following new paragraph:
       ``(2) Any report relating to a covert action that is
     submitted to the congressional intelligence committees for
     the purposes of paragraph (1) shall be in writing, and shall
     contain the following:
       ``(A) A concise statement of any facts pertinent to such
     report.
       ``(B) An explanation of the significance of the covert
     action covered by such report.''.
       (2) Notice on information not disclosed.--Subsection (c) of
     such section is amended by adding at the end the following
     new paragraph:
       ``(5) If the Director of National Intelligence or the head
     of a department, agency, or other entity of the United States
     Government does not provide information required by
     subsection (b) in full or to all the members of the
     congressional intelligence committees, and requests that such
     information not be so provided, the Director shall, in a
     timely fashion, notify such committees of the determination
     not to provide such information in full or to all members of
     such committees. Such notice shall be submitted in writing in
     a classified form, include a statement of the reasons for
     such determination and a description that provides the main
     features of the covert action covered by such determination,
     and contain no restriction on access to this notice by all
     members of the committee.''.
       (3) Modification of nature of change of covert action
     triggering notice requirements.--Subsection (d) of such
     section is amended by striking ``significant'' the first
     place it appears.


                           amendment no. 859

 (Purpose: To strike the pilot program on disclosure of records under
      the Privacy Act relating to certain intelligence activities)

       Strike section 310.


                     amendment no. 860, as modified

       Beginning on page 29, strike line 24 and all that follows
     through page 31, line 15, and insert the following:
       (1) Report required.--Not later than 60 days after the date
     of the enactment of this Act, the Director of National
     Intelligence shall provide to the members of the Select
     Committee on Intelligence of the Senate and the Permanent
     Select Committee on Intelligence of the House of
     Representatives a report on any clandestine prison or
     detention facility currently or formerly operated by the
     United States Government for individuals captured in the
     global war on terrorism.
       (2) Elements.--The report required by paragraph (1) shall
     include the following:
       (A) The date each prison or facility became operational,
     and if applicable, the date on which each prison or facility
     ceased its operations.
       (B) The total number of prisoners or detainees held at each
     prison or facility during its operation.
       (C) The current number of prisoners or detainees held at
     each operational prison or facility.
       (D) The total and average annual costs of each prison or
     facility during its operation.
       (E) A description of the interrogation procedures used or
     formerly used on detainees at each prison or facility,
     including whether a determination has been made that such
     procedures are or were in compliance with the United States
     obligations under the Geneva Conventions and the Convention
     Against Torture.


                     amendment no. 861, as modified

       Beginning on page 96, strike line 24 and all that follows
     through page 97, line 6, and insert the following:
       ``(2)(A) As directed by the Director of National
     Intelligence, the National Geospatial-Intelligence Agency
     shall also develop a system to facilitate the analysis,
     dissemination, and incorporation of likenesses, videos, or
     presentations produced by ground-based platforms, including
     handheld or clandestine photography taken by or on behalf of
     human intelligence collection organizations or available as
     open source information into the National System for
     Geospatial-Intelligence.


                           amendment no. 862

(Purpose: To change the name of the National Space Intelligence Center
               to the National Space Intelligence Office)

       Strike section 410 and insert the following:

     SEC. 410. NATIONAL SPACE INTELLIGENCE OFFICE.

       (a) Establishment.--
       (1) In general.--Title I of the National Security Act of
     1947 (50 U.S.C. 401 et seq.) is amended by adding after
     section 119B the following new section:


                  ``NATIONAL SPACE INTELLIGENCE OFFICE

       ``Sec. 119C.  (a) Establishment.--There is established
     within the Office of the Director of National Intelligence a
     National Space Intelligence Office.
       ``(b) Director of National Space Intelligence Office.--The
     National Intelligence Officer for Science and Technology, or
     a successor position designated by the Director of National
     Intelligence, shall act as the Director of the National Space
     Intelligence Office.
       ``(c) Missions.--The National Space Intelligence Office
     shall have the following missions:
       ``(1) To coordinate and provide policy direction for the
     management of space-related intelligence assets.
       ``(2) To prioritize collection activities consistent with
     the National Intelligence Collection Priorities framework, or
     a successor framework or other document designated by the
     Director of National Intelligence.
       ``(3) To provide policy direction for programs designed to
     ensure a sufficient cadre of government and nongovernment
     personnel in fields relating to space intelligence, including
     programs to support education, recruitment, hiring, training,
     and retention of qualified personnel.
       ``(4) To evaluate independent analytic assessments of
     threats to classified United States space intelligence
     systems throughout all phases of the development,
     acquisition, and operation of such systems.
       ``(d) Access to Information.--The Director of National
     Intelligence shall ensure that the National Space
     Intelligence Office has access to all national intelligence
     information (as appropriate), and such other information (as
     appropriate and practical), necessary for the Office to carry
     out the missions of the Office under subsection (c).

[[Page S4562]]

       ``(e) Separate Budget Account.--The Director of National
     Intelligence shall include in the National Intelligence
     Program budget a separate line item for the National Space
     Intelligence Office.''.
       (2) Clerical amendment.--The table of contents for that Act
     is amended by inserting after the item relating to section
     119B the following new item:

``Sec. 119C. National Space Intelligence Office.''.

       (b) Report on Organization of Office.--
       (1) Report required.--Not later than 180 days after the
     date of the enactment of this Act, the Director of the
     National Space Intelligence Office shall submit to the Select
     Committee on Intelligence of the Senate and the Permanent
     Select Committee on Intelligence of the House of
     Representatives a report on the organizational structure of
     the National Space Intelligence Office established by section
     119C of the National Security Act of 1947 (as added by
     subsection (a)).
       (2) Elements.--The report required by paragraph (1) shall
     include the following:
       (A) The proposed organizational structure of the National
     Space Intelligence Office.
       (B) An identification of key participants in the Office.
       (C) A strategic plan for the Office during the five-year
     period beginning on the date of the report.


                            amendment no. 86

(Purpose: To modify the requirements related to the Director and Deputy
              Director of the Central Intelligence Agency)

       Strike section 421 and insert the following:

     SEC. 421. DIRECTOR AND DEPUTY DIRECTOR OF THE CENTRAL
                   INTELLIGENCE AGENCY.

       (a) Establishment of Position of Deputy Director of Central
     Intelligence Agency.--Subsection (a) of section 104A of the
     National Security Act of 1947 (50 U.S.C. 403-4a) is amended--
       (1) by redesignating subsections (b), (c), (d), (e), (f),
     and (g) as subsections (d), (e), (f), (g), (h), and (i)
     respectively; and
       (2) by inserting after subsection (a) the following new
     subsections (b) and (c):
       ``(b) Deputy Director of Central Intelligence Agency.--(1)
     There is a Deputy Director of the Central Intelligence Agency
     who shall be appointed by the President, by and with the
     advice and consent of the Senate.
       ``(2) The Deputy Director of the Central Intelligence
     Agency shall assist the Director of the Central Intelligence
     Agency in carrying out the duties and responsibilities of the
     Director.
       ``(3) The Deputy Director of the Central Intelligence
     Agency shall act for, and exercise the powers of, the
     Director of the Central Intelligence Agency during the
     absence or disability of the Director of the Central
     Intelligence Agency or during a vacancy in the position of
     Director of the Central Intelligence Agency.
       ``(c) Military Status of Director of the Central
     Intelligence Agency and Deputy Director of Central
     Intelligence Agency.--(1) Not more than one of the
     individuals serving in the positions specified in subsection
     (a) and (b) may be a commissioned officer of the Armed Forces
     in active status.
       ``(2) A commissioned officer of the Armed Forces who is
     serving as the Director or Deputy Director of the Central
     Intelligence Agency or is engaged in administrative
     performance of the duties of Director or Deputy Director of
     the Central Intelligence Agency shall not, while continuing
     in such service, or in the administrative performance of such
     duties--
       ``(A) be subject to supervision or control by the Secretary
     of Defense or by any officer or employee of the Department of
     Defense; or
       ``(B) exercise, by reason of the officer's status as a
     commissioned officer, any supervision or control with respect
     to any of the military or civilian personnel of the
     Department of Defense except as otherwise authorized by law.
       ``(3) Except as provided in subparagraph (A) or (B) of
     paragraph (2), the service, or the administrative performance
     of duties, described in that paragraph by an officer
     described in that paragraph shall not affect the status,
     position, rank, or grade of such officer in the Armed Forces,
     or any emolument, perquisite, right, privilege, or benefit
     incident to or arising out of such status, position, rank, or
     grade.
       ``(4) A commissioned officer described in paragraph (2),
     while serving, or continuing in the administrative
     performance of duties, as described in that paragraph and
     while remaining on active duty, shall continue to receive
     military pay and allowances. Funds from which such pay and
     allowances are paid shall be reimbursed from funds available
     to the Director of the Central Intelligence Agency.''.
       (b) Conforming Amendment.--Paragraph (2) of subsection (e)
     of such section, as redesignated by subsection (a)(1) of this
     section, is further amended by striking ``subsection (d)''
     and inserting ``subsection (f)''.
       (c) Executive Schedule Level III.--Section 5314 of title 5,
     United States Code, is amended by adding at the end the
     following new item:
       ``Deputy Director of the Central Intelligence Agency.''.
       (d) Role of DNI in Appointment.--Section 106(b)(2) of the
     National Security Act of 1947 (50 U.S.C. 403-6(b)(2)) is
     amended by adding at the end the fallowing new subparagraph:
       ``(J) The Deputy Director of the Central Intelligence
     Agency.''.
       (e) Effective Date and Applicability.--The amendments made
     by this section shall take effect on the date of the
     enactment of this Act and shall apply upon the earlier of--
       (1) the date of the nomination by the President of an
     individual to serve as Deputy Director of the Central
     Intelligence Agency, except that the individual
     administratively performing the duties of the Deputy Director
     of the Central Intelligence Agency as of the date of the
     enactment of this Act may continue to perform such duties
     after such date of nomination and until the individual
     appointed to the position of Deputy Director of the Central
     Intelligence Agency, by and with the advice and consent of
     the Senate, assumes the duties of such position; or
       (2) the date of the cessation of the performance of the
     duties of Deputy Director of the Central Intelligence Agency
     by the individual administratively performing such duties as
     of the date of the enactment of this Act.


                     amendment no. 872, as modified

       On page 28, line 19, strike ``legal opinions'' and insert
     ``legal justifications''.

  Mr. BOND. Mr. President, I move to reconsider the vote.
  Mr. ROCKEFELLER. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  Mr. ROCKEFELLER. Mr. President, I also ask unanimous consent that it
be in order for any of the cleared amendments to be modified to comport
to the substitute.
  The PRESIDING OFFICER. Is there objection?
  Without objection, it is so ordered.
  Mr. BOND. Mr. President, I thank the Chairman. We are moving forward
now on the bill. As indicated, we have some drafting problems we are
working out, but we also have high hopes of being able to adopt a
number of the amendments that have been filed on both sides. Some of
them may require modification.
  Mr. President, as we get ready to go to our policy lunches, I once
again ask that Members with amendments come forward and let us know
what the amendments are. We ask that they be germane, because
nongermane amendments, even if they are passed, will not survive
conference. We want to keep the proceedings moving forward, so we ask
that amendments be germane. We ask Members to work with us so we can
accept them or offer a compromise to make them acceptable. We want to
do that. Otherwise, when votes are needed, and I am sure they will be,
we ask that a reasonable time period be agreed on by both sides, the
proponent of the amendment and the opponent, so we may get some orderly
procedure so our colleagues will know how we are moving forward and we
can show progress.
  I thank the Chair and I yield the floor.

                          ____________________




[Congressional Record: April 17, 2007 (Senate)]
[Page S4562-S4587]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr17ap07-177]




     INTELLIGENCE AUTHORIZATION ACT FOR FISCAL YEAR 2007--Continued

  The PRESIDING OFFICER. The pending business is the Cornyn amendment.
Who seeks recognition?
  The Senator from Tennessee is recognized.
  Mr. ALEXANDER. Mr. President, I ask unanimous consent to speak as in
morning business for 5 minutes.
  Mr. KYL. Mr. President, I wonder if my colleague will first allow me
to lay down an amendment but not speak to it.
  Mr. ALEXANDER. Yes.
  The PRESIDING OFFICER. The Senator from Arizona is recognized.
  Mr. KYL. Mr. President, is there a pending amendment?
  The PRESIDING OFFICER. Yes, it is the Cornyn amendment.
  Mr. KYL. Mr. President, I ask unanimous consent to lay aside the
pending amendment.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                 Amendment No. 866 to Amendment No. 849

  Mr. KYL. Mr. President, I simply ask unanimous consent to call up as
a second-degree amendment to the pending amendment my amendment No.
866.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:


[[Page S4563]]


       The Senator from Arizona [Mr. Kyl] proposes an amendment
     numbered 866 to amendment No. 849.

  Mr. KYL. Mr. President, I ask unanimous consent that reading of the
amendment be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment is as follows:

              (Purpose: To protect classified information)

       At the end, add the following:

     SEC. ___. UNLAWFUL DISCLOSURE OF CLASSIFIED REPORTS BY
                   ENTRUSTED PERSONS.

       (a) In General.--It shall be unlawful for any person who is
     an employee or member of the Senate or House of
     Representatives, or who is entrusted with or has lawful
     possession of, access to, or control over any classified
     information contained in a report submitted to Congress under
     this Act, the USA PATRIOT Improvement and Reauthorization Act
     of 2005 (Public Law 109-177; 120 Stat. 192), the Intelligence
     Reform and Terrorism Prevention Act of 2004 (Public Law 108-
     458; 118 Stat. 3638), or an amendment made by any such Act
     to--
       (1) knowingly and willfully communicate, furnish, transmit,
     or otherwise makes available such information to an
     unauthorized person;
       (2) publish such information; or
       (3) use such information in any manner prejudicial to the
     safety or interest of the United States or for the benefit of
     any foreign government to the detriment of the United States.
       (b) Penalty.--Any person who violates subsection (a) shall
     be fined under title 18, United States Code, imprisoned not
     more than 10 years, or both.
       (c) Information to Congress.--Nothing in this section shall
     prohibit the furnishing, upon lawful demand, of information
     to any regularly constituted committee of the Senate or House
     of Representatives, or joint committee thereof.
       (d) Definitions.--As used in this section--
       (1) the term ``classified information'' means information
     which, at the time of a violation of this section, is
     determined to be Confidential, Secret, or Top Secret pursuant
     to Executive Order 12958, or any successor thereto; and
       (2) the term ``unauthorized person'' means any person who
     does not have authority or permission to have access to the
     classified information under the provisions of a statute,
     Executive Order, regulation, or directive of the head of any
     department or agency who is empowered to classify
     information.

  The PRESIDING OFFICER. The Senator from Tennessee is now recognized.


                   USCIS Naturalization Test Redesign

  Mr. ALEXANDER. Mr. President, I thank my colleagues for giving me 5
minutes.
  As my late friend Alex Haley, the author of ``Roots,'' said, ``Find
the good and praise it.'' We talk an awful lot about illegal
immigration here in the Senate. The majority and minority leaders have
both said that before Memorial Day, we will bring up immigration reform
in a comprehensive manner. I hope very much that we do that. That is
our responsibility. It is too big a problem for one party to solve, and
we should work on it in a bipartisan way.
  Today, I want to talk about legal immigration as opposed to illegal
immigration. About 650,000 individuals become U.S. citizens every year.
Each of us has attended ceremonies where this happens. This is at the
very heart of our Nation. This is why we call the United States of
America the Nation of immigrants. What is so important about them is
that no one becomes an American based upon his or her race or where
their grandparents came from. In fact, that is constitutionally
impermissible. One becomes an American by a remarkable oath of
allegiance to this country as opposed to some other country, and then
demonstrating good character, being here for 5 years, and showing that
you know our common language, English, and an understanding of the U.S.
history.
  The importance of that was brought home to me last week when I was
visiting in Nashville. About 30 percent of all of the students in
Tennessee who have limited English proficiency happen to be in the
Nashville School District, and Pedro Garcia, the superintendent of
schools, was telling me that many of those students who are not now
American citizens want to make sure they learn enough U.S. history in
middle school and high school so they can pass the citizenship test and
become Americans when they graduate.
  Today, the U.S. Citizenship and Immigration Services, USCIS, is
formally releasing the Citizen's Almanac. I call it to the attention of
our colleagues. It is a collection of American symbols of freedom and
liberty to be given to every newly sworn citizen, and that would be
650,000 this year. It is built upon action that was taken earlier this
year by the USCIS to create a new and better citizenship test.
  At the conclusion of my remarks, I ask unanimous consent that a fact
sheet about the naturalization test redesign be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  (See exhibit 1.)
  Mr. ALEXANDER. Mr. President, the purpose of that test is to simply
give new meaning to what it means to be an American. That oath of
allegiance which these 650,000 new citizens will take is basically the
same oath that George Washington and his officers took at Valley Forge
in 1778. It has a great deal of meaning. Other countries in the world
have not had the experience we have had helping people from around the
world become Americans. The English, the French, the Japanese, and the
Germans are struggling with that right now, as people move in who are
not Japanese, German, English, or French. It is hard for them to become
part of that national identity. We have not had that problem. We
welcome everyone based upon their understanding of the symbols and
documents represented in the Citizen's Almanac. So if we don't teach
about these things in our schools or immigrants don't learn it in the
naturalization process, then we are not a united country.
  As I have said many times on this floor, diversity is a great
strength of the United States of America, but it is not our greatest
strength. Our greatest strength is that we have been able to take all
of this diversity and mold it into one country, not because of race or
ethnicity but because of a belief in a few principles and our common
language. We are able to say we are proud of where we came from, but we
are prouder to be Americans.
  I salute the U.S. Citizenship and Immigration Services for this
document, and the National Endowment for the Humanities for its hard
work on it. The Citizen's Almanac includes the patriotic anthems and
symbols of the United States, Presidential and historical speeches from
Presidents Lincoln, Washington, Roosevelt, Kennedy and Reagan, and
Martin Luther King, Jr., and landmark decisions of the Supreme Court.
It ought to be in every Senate office. It will be in every home of
every new citizen. It will be a good document to be in every school in
America.
  I yield the floor.

                               Exhibit 1

 [From the U.S. Department of Homeland Security, U.S. Citizenship and
                  Immigration Services, Jan. 22, 2007]

                   USCIS Naturalization Test Redesign

       U.S. Citizenship and Immigration Services (USCIS) is
     revising the naturalization test to create a test and testing
     process that is standardized, fair and meaningful. A
     standardized and fair naturalization test will include
     uniform testing protocols and procedures nationwide to ensure
     that there is no variation between offices. A meaningful test
     will encourage civic learning and patriotism among
     prospective citizens. A revised test, with an emphasis on the
     fundamental concepts of American democracy and the rights and
     responsibilities of citizenship, will help to encourage
     citizenship applicants to learn and identify with the basic
     values that we all share as Americans.


                               BACKGROUND

       During the past 10 years, the standardization and
     meaningfulness of the naturalization test have come under
     scrutiny. Various studies found that the exam lacked
     standardized content, instruments, protocols or scoring
     system. Inconsistencies were reported in the way the exams
     were administered nationwide, and there was no assessment of
     whether applicants had a meaningful understanding of U.S.
     history and government.
       To address these concerns, Immigration and Naturalization
     Services (INS) launched a test redesign project in 2000 that
     has included technical assistance from several test
     development contractors, the National Academy of Sciences, a
     panel of history and U.S. government scholars, and a panel of
     English as a Second Language (ESL) experts. In addition,
     USCIS has sought input from a variety of stakeholders,
     including immigrant advocacy groups, citizenship instructors,
     ESL teachers, and USCIS District Adjudications Officers.

                   Changes to the naturalization test

       The reading and writing portions of the pilot
     naturalization exam is similar to the current test except
     that the new exam contains more civics-based vocabulary.
     Applicants will still have up to three chances to read and
     write a sentence correctly in English. In the writing section
     of the test, the testing officer will dictate a sentence and
     ask the applicant to write everything the officer reads.
     During the reading portion

[[Page S4564]]

     of the test, the test officer will ask the applicant to read
     each word out loud in that sentence.
       The proposed format for the new civics exam will still
     require applicants to correctly answer six out of 10
     questions chosen from a master list of 100 civics questions
     and answers. The difference is that the new sentences will
     now focus on civics and history topics, rather than the
     general range of topics on the current test. USCIS has placed
     these questions and answers, along with a study guide on the
     Internet and elsewhere in the public domain to help
     applicants prepare.
       Q. What are the new civics questions and English vocabulary
     list items?
       A. USCIS posted has made the English vocabulary lists
     available at: www.uscis.gov/natzpilot.
       Q. How were the questions developed?
       A. English Items. A panel of English as a Second Language
     (ESL) and other test development experts chosen by the
     association of Teachers of English to Speakers of Other
     Languages (TESOL) developed the English items. The TESOL
     panel established an English language level for the test
     consistent with Department of Education reporting levels for
     adult basic education.
       Civics Items. The TESOL panel also assisted in drafting and
     reviewing civics questions using a content framework
     identified by the Office of Citizenship from a review of
     government authorized civics and citizenship texts, the U.S.
     Department of Education's National Standards for Civics and
     Government, the current naturalization test, and the study
     guide developed by a panel of experts assembled by USCIS in
     2004.
       Q. How are the new questions an improvement over the old
     questions?
       A. By weighing the questions on the new civics and U.S.
     history test we will ensure that all test forms are at the
     same cognitive and language level. By creating test forms at
     the same level of difficulty, we are ensuring that an
     applicant who goes for an interview in one city of the
     country has the same chance of passing the test as in any
     other city. The English vocabulary on the new test is also
     fairer because it is targeted at a language level consistent
     with the Department of Education reporting standards for the
     level required by Section 312 of the Immigration and
     Nationality Act. District Adjudication Officers are being
     trained to administer and score the naturalization tests in
     the same way nationwide to ensure uniform administration of
     the test.
       Applicants will receive a study guide on the new civics and
     U.S. history questions so they can deepen their knowledge and
     understanding of our Nation as they prepare for the exam. The
     new items will focus less on redundant and trivial questions
     based on rote memorization and will focus on concepts, such
     as the rights and responsibilities of citizenship. Some items
     on the current test fit those needs and required little
     content change, so several items from the current test will
     appear on the revised test. The range of acceptable answers
     to each question will also increase so that applicants can
     learn more about a topic and select from a wider range of
     acceptable answers. And finally, the reading and writing test
     will provide a tool for civic learning because the vocabulary
     list is civics-based.
       Q. How will the interview process change for applicants?
       A. The interview process will not change.


                             PILOT PROGRAM

       As part of the test redesign, USCIS will conduct a pilot
     program in ten cities beginning in February 2007 to ensure
     the agency has all the information necessary before the new
     test is fully implemented nationwide in 2008. During this
     pilot, USCIS will carefully analyze the new test questions to
     make certain that the questions are fair and work as they
     were intended. USCIS will also collect information about
     testing procedures, to include feedback from DAOs, to help
     refine the testing procedures and facilitate the smooth
     transition to the new naturalization exam.
       Q. What will USCIS pilot?
       A. USCIS plans to pilot 142 U.S. history and government
     questions and approximately 36 reading and 36 writing items.
     The topic areas include principals of American democracy,
     system of government, rule of law, rights and
     responsibilities, American History, and geography. About half
     of the questions include rephrased versions of questions on
     the current test. All citizenship applicants in the 10 pilot
     areas who are scheduled for their naturalization test during
     the pilot will receive advance copies of the civics questions
     and the two lists of vocabulary for self-study. USCIS has
     also posted these study materials on the web at: http://
     www.uscis.gov/natzpilot. The actual test will become
     available to the public.
       Q. How were the questions selected?
       A. The TESOL panel assisted USCIS in drafting and reviewing
     civics questions using best practices and conventional sample
     techniques, such as regression analysis, currently used in
     private industry.
       Q. Where are the test sites?
       A. The pilot program will run in 10 cities that were
     randomly selected based on citizenship application volume.
     The ten pilot sites are: Albany, NY, Boston, MA; Charleston,
     S.C.; Denver; EL Paso, Texas; Kansas City, Mo.; Miami; San
     Antonio, Texas; Tucson, Ariz.; and Yakima, Wash.
       Q. How were the 10 pilot cities selected?
       A. To capture the diversity of USCIS offices and
     applicants, USCIS randomly selected a representative sample
     of 10 districts by geographic region and the volume of
     applications that were processed in each office to conduct
     the pilot. This method will help insure that the final
     results can be made with equal accuracy and statistical
     weight.
       Q. What is the purpose of the pilot?
       A. A pilot is a crucial component of any test design
     process. A pilot ensures that the draft test items, scoring
     rubrics, and administration processes are appropriate, not
     too difficult, and elicit the responses we expect.
       Q. How will USCIS conduct the pilot?
       A. USCIS must administer about 6,000 tests to achieve a
     representative and significant study.
       Pilots will begin in February 2007 and will last between
     two to four months.
       USCIS trained the test administrators on the new exam
     process.
       USCIS will mail a notification to all applicants scheduled
     for an interview at the pilot sites during the pilot period
     informing them that they have the opportunity to participate
     in the national pilot program.
       Applicants will also receive a letter explaining the pilot
     and study questions.
       Applicants who take the pilot but do not pass one or more
     parts will have the opportunity to take the current test or
     part of the current test immediately during the interview,
     thus giving them an additional opportunity to pass the
     naturalization test.
       Many of the questions on the pilot test and the current
     test cover the same subjects, so additional preparation is
     expected to be minimal.
       Once pilot results have been analyzed, piloted items will
     be revised accordingly.
       Q. Must applicants participate in the pilot?
       A. No. Applicants will have the choice to decline
     participation in the pilot test. For those who decline, they
     will be given the current test.
       USCIS will continue to meet with local immigrant service
     providers, advocates, and ESL teachers in pilot sites to gain
     their support so that they can encourage immigrants to
     participate in their government and make this a successful
     pilot.

  The PRESIDING OFFICER. The Senator from California is recognized.
  Mrs. FEINSTEIN. Mr. President, I ask unanimous consent that Senator
Feingold and I be permitted to speak for up to 10 minutes as in morning
business.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                 Senate Campaign Disclosure Parity Act

  Mrs. FEINSTEIN. Mr. President, I rise in my capacity as chairman of
the Rules Committee to speak about a bill that the Committee heard and
passed out unanimously a short time ago. That bill is entitled the
``Senate Campaign Disclosure Parity Act.'' It is sponsored by Senators
Feingold, Cochran, and 32 other Senators. It would require that Senate
campaign finance reports be filed electronically rather than in paper
format. That is all the bill does.
  Currently, House candidates, Presidential candidates, political
action committees, and party committees are all required to file
electronically, and they do. But Senators, Senate candidates,
authorized campaign committees, and the Democratic and Republican
Senate campaign committees are exempt. As a result, we have a very
cumbersome system in which paper copies of disclosure reports are filed
with the Senate Office of Public Records, which then scans them, makes
an electronic copy of them, and sends that copy to the FEC on a
dedicated communications line. The FEC then prints the report and sends
it to a vendor in Fredericksburg, VA, where the information is keyed in
by hand and transferred back to the FEC database. All of this costs
about $250,000, and it is a waste of money, a waste of staff, and a
waste of time.
  At our hearing on February 14 on this bill--and this bill is just on
this point--it was clear that there was no public opposition to this
proposal, only public support. The bill has been hotlined. It has
cleared on the Democratic side. It has not cleared on the Republican
side.
  Now, again, this bill says we will just allow us to electronically
file our quarterly reports. I just electronically filed my quarterly
reports. I then gave a paper copy to the Secretary of the Senate. This
is exactly the type of good-government law the Senate can adopt as a
stand-alone measure.
  I hope we move this legislation today, without burdening it with
other items. It is really long past time to bring the Senate into the
modern era. So I hope my colleagues on both sides of the aisle will
join me in ensuring timely access and disclosure of Senate finance
campaign activities and bring that information before the public.
  I will now yield to the author of the legislation, the distinguished
Senator from Wisconsin.

[[Page S4565]]

  The PRESIDING OFFICER. The Senator from Wisconsin is recognized.
  Mr. FEINGOLD. Mr. President, I thank the Senator from California. I
am very pleased to be here with her today. I sincerely thank the
Senator from California for moving the Senate Campaign Disclosure
Parity Act through the Rules Committee so that we are now in a position
to finally pass this legislation. As the Senator from California
indicated, at last count, we now have 35 cosponsors for S. 223, 20
Democrats and 15 Republicans, and no known opposition.
  The bill fixes the anomaly in the election laws that makes it nearly
impossible for the public to get timely access to Senate campaign
finance reports, even though most other reports are available on the
Internet within 24 hours of their filing with the Federal Election
Commission, FEC. This bill will finally bring Senate campaigns into the
21st century by amending the section of the election laws dealing with
electronic filing to require reports filed with the Secretary of the
Senate to be filed electronically and forwarded to the FEC within 24
hours.
  This step is long overdue. There is no excuse for keeping our own
campaign finance information inaccessible to the public when the
information filed by House and Presidential candidates, PACs, parties,
and even 527 organizations is readily available almost immediately. The
Washington Post has called the outmoded Senate campaign reporting
system ``obviously unjustified,'' and Roll Call has called it
``indefensible.'' I couldn't agree more.
  The current system means that the FEC's detailed coding, which allows
the press and the public to do more sophisticated searches and
analysis, is completed over a week later for Senate reports than for
House reports. It means that the final disclosure reports covering the
first 2 weeks of October are often not available for detailed scrutiny
until after the election. That is scandalous and there is no good
reason for it.
  Let me just say that I know that the election laws have a big impact
on campaigns and all Senators have a strong personal stake in vetting
changes to those laws. I am very familiar with controversial and
contested campaign finance legislation. This isn't that kind of bill.
This bill is as close to a no-brainer as you can get in this area.
  In addition to bipartisan support here in the Senate, major media
outlets have endorsed it, as have bloggers on the left and the right.
No one that I know of opposes it. And yet, it has now been nearly 3 and
a half years since I first introduced it. That is nearly half as long
as it took us to pass McCain-Feingold. I know McCain-Feingold. You
might say McCain-Feingold is a friend of mine. This bill is no McCain-
Feingold.
  As I understand it, this bill has cleared the Democratic side. Given
the strong support for it from across the political spectrum, and
cosponsorship from many Republican Senators, and I especially thank
Senator Cochran for being the main author along with me. I sincerely
hope there won't be an objection on the Republican side. It would be
wrong to hold this bill up as some kind of bargaining chip. It is time
for the Senate to pass this bill, and I hope that can be done today.
  Once again, I thank the Senator from California, and I yield the
floor.
  Mrs. FEINSTEIN. Mr. President, if I may, I will ask a question of the
Senator from Wisconsin. First, I thank him for his leadership on this
issue.
  If I can ask the Senator, is there any item in this bill other than
electronic filing?
  Mr. FEINGOLD. No, there is not.
  Mrs. FEINSTEIN. Doesn't this bill simply enable Members of the
Senate, just as every other political office does, to file directly
electronically their finance reports?
  Mr. FEINGOLD. That is all it does.
  Mrs. FEINSTEIN. I thank the Senator.
  Mr. President, this is such a simple, direct bill with respect to
transparency. It is an idea whose time has long come. It happens
everywhere else except for the Senate, Senate committees, and the
Senate campaign committees. The time is long overdue to pass this bill.
It is such a simple, good-government issue. It is very hard for me to
understand who could oppose this and what their reason for opposing it
could be. I hope that if there is opposition in this Senate, the Member
would be willing to come down to the floor and express why they would
oppose this bill.
  We have the solid support of the entire Rules Committee. This bill
was easy to pass out of committee. It was easy to hotline on the
Democratic side, and it should be easy to pass by unanimous consent.
  Mr. President, I ask unanimous consent that the Senate proceed to the
immediate consideration of Calendar No. 96, S. 223, a bill to require
Senate candidates to file designations, statements, and reports in
electronic forms; that the committee-reported amendment be considered
and agreed to; that the bill, as amended, be read three times, passed;
and that the motion to reconsider be laid upon the table, with no
intervening action.
  The PRESIDING OFFICER. Is there objection?
  Mr. ALEXANDER. Mr. President, on behalf of a Republican Senator, I
object.
  The PRESIDING OFFICER. Objection is heard.
  Mrs. FEINSTEIN. I yield the floor.
  Mr. ROCKEFELLER. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. ROCKEFELLER. Mr. President, I ask unanimous consent that the
order for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.


             Action on Amendments Nos. 856 and 859 Vitiated

  Mr. ROCKEFELLER. Mr. President, I ask unanimous consent that the
previous action on amendments Nos. 856 and 859 be vitiated.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ROCKEFELLER. I yield the floor, and I suggest the absence of a
quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  The PRESIDING OFFICER (Mr. Brown). The Senator from West Virginia is
recognized.
  Mr. ROCKEFELLER. Mr. President, I ask unanimous consent that the
order for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ROCKEFELLER. Mr. President, I ask unanimous consent that at 5:45
p.m. today, the motion to proceed to the motion to reconsider be agreed
to, the motion to reconsider be agreed to, and without further
interning action, the Senate proceed to vote on the motion to invoke
cloture on S. 372, the Intelligence authorization bill; further, that
Members have until 4:45 p.m. to file any second-degree amendments.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ROCKEFELLER. Mr. President, I should say this has been cleared on
both sides.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  The PRESIDING OFFICER. The Senator from Iowa is recognized.
  Mr. GRASSLEY. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GRASSLEY. Mr. President, I ask to speak as in morning business
for half an hour, although I probably will not speak that long.
  The PRESIDING OFFICER. Without objection, it is so ordered.


                                Medicare

  Mr. GRASSLEY. Mr. President, earlier this year I gave a series of
statements on this floor on the Medicare prescription drug benefit.
Back then, I said I was informing my colleagues because in the near
future Congress would consider some fundamental changes in how the
benefit works.
  Well, for the entire Senate, the future is now. Last week the Senate
Finance Committee marked up legislation on the so-called prohibition on
Government negotiations under the Medicare prescription drug benefit.
When I gave these four statements during February, I said it was
important for the public and also for Medicare

[[Page S4566]]

beneficiaries to understand the proposed changes, and that it was
equally important to explore the effects these changes would have.
  Those reasons still hold true this very day. They are even more
important now as the Senate gears up for action on that ill-advised
legislation. I will inform my colleagues on this topic today, tomorrow,
and the rest of the week, if I need to, because I want to make sure
everyone understands the consequences of this legislation that is going
to change the Medicare Program and hurt the Medicare Program, a program
that is working; that if it ain't broke, don't fix it. I am willing to
talk about this issue until I am blue in the face.
  First, everyone should recognize that political opponents of the drug
benefit that we call Part D of Medicare have tried for 4 years to tear
this benefit apart since day one. Day one dates back to December 2003,
when the President signed the bill. These naysayers feel Government can
always manage better. They want a Government-run benefit program of
drugs in Medicare, and they want the Federal Government dictating drug
prices, as if the Federal Government can dictate drug prices.
  Thankfully, the naysayers lost when that legislation was being
considered. But that has not stopped them from constantly whining and
carping about the drug benefit that is now law. The naysayers said
there would be no prescription drug plans. Then when there were plenty
of prescription drug plans coming into the system, approved by the
Secretary of HHS to administer to the seniors of America, they said
there were too many plans.
  The naysayers said it was too confusing, that the seniors would not
be able to choose plans, even arguing that there would be a small
number of seniors signing up.
  But the seniors have enrolled. In fact, 92 percent of the seniors in
America are covered by a prescription drug plan. And what about their
satisfaction? Interviews show a great deal of satisfaction on the part
of seniors with the plans.
  Then the naysayers suggested plans could change their prices and the
drugs they cover at the drop of a hat, which has not happened. So the
naysayers were wrong again. They did all they could to taint
beneficiaries' views of the benefits before it even got off the ground.
But the naysayers' biggest criticism of the drug benefit is that,
according to them, the Government does not negotiate with drugmakers
for lower prices.
  Now I will show you how silly that is and how wrong that is and, more
importantly, how misleading that is. I say according to ``them,''
meaning according to the naysayers, because they have gone to great
lengths to make it sound as though nobody is negotiating with drug
companies. If you believe the naysayers out there, you would think that
drug companies name their price and Medicare is forced to pay it. That
is so wrong that it truly boggles the mind. It seems to me, as I see
these arguments, there is no embarrassment on the part of the
naysayers' part.

  Now, it is correct, of course, that the Secretary of Health and Human
Services himself does not negotiate with drug companies, but it is
absolutely not correct to say there are no negotiations. That is
complete and utter nonsense. It is embarrassingly wrong. Under the
Medicare drug benefit, multiple drug plans compete against each other
for the membership of seniors and disabled people covered by Medicare.
These plans compete to get the lowest prices from manufacturers, for
you as a member, because they want to keep you as a member.
  In fact, these plans want to be the best negotiators and to offer
beneficiaries the best possible drug plan with low premiums, low cost
sharing, and even with additional benefits. They compete to be the plan
that beneficiaries want to join.
  Now, is this something new? No, it is nothing new. This is the same
approach used for health care benefits for every Member of Congress,
and 3 million Federal employees, under what we call the Federal
Employee Health Benefit Program. If beneficiaries do not like the job
their plan is doing, you can fire your plan. You can leave it, join
another plan. You can choose a better plan. Yet, you see, it is
actually very simple how this works; very simple. Harnessing the power
of competition among plans gives the Medicare Program beneficiaries and
the taxpayers access to better negotiation than anything the Government
could do on its own.
  In fact, there are five negotiators out there that are negotiating in
a bigger way than even the Federal Government can. Can you imagine
that, there are five negotiators that are bigger than the Federal
Government that were negotiating this? Competition, then, is the
mainstay of our free market economy. Businesses compete every day in
almost every sector of our economy to produce the products consumers
most want at a price that consumers pay, which is probably what
consumers can afford.
  But the naysayers of the drug benefit somehow do not like that. They
are uncomfortable with the free market. They want the Government to run
everything. They want the Government itself doing the negotiation. They
find it hard to believe anyone could do a better job negotiating than
big Government.
  Of course, along the lines, they are ignoring the simple fact that
competition is working. They are ignoring that competition has led to
lower premiums, $22 this year instead of $23 last year, instead of $37
when we wrote the legislation.
  They are ignoring that competition is bringing choices to
beneficiaries, those who said we would never have choice, that you
could not use plans because plans would not work. You know what. Those
very Members of Congress are wrong, because in my State there are 43
plans. Will there always be 43 plans? No, I imagine there are some that
are small, will weed themselves out, will be bought. These people are
ignoring that the Government is not actually very good at figuring out
what it should pay for drugs. They are ignoring the fact to carry on
with the political scam that they committed against beneficiaries and
against the public.
  I have a chart I used a month ago that I want to show again. On it is
a quote from the Washington Post, recognizing as well, when it wrote
the following in an editorial, that this is a political scam and that
governments don't do a very good job of negotiating:

       Governments are notoriously bad at setting prices, and the
     U.S. Government is notoriously bad at setting prices in the
     medical realm.

  We knew this because of the Government's experience paying for drugs
covered by Medicare Part B. There are not very many drugs covered by
Medicare Part B, but there have been a few and over a long period of
time. What did we learn from that experience of Part B Medicare? These
happen to be the drugs that are given during a physician's office visit
or other drugs such as oral cancer drugs. Medicare payments for these
drugs were based on what is called the average wholesale price, AWP. It
is similar to a sticker price for a car. No one actually pays that
price on the sticker of a car. The joke was that average wholesale
price or AWP actually stood for ``ain't what's paid.'' Over the past
decade, reports issued by the inspector general, by the Department of
Justice, and by the Government Accountability Office found that by
relying on average wholesale price, Medicare was vastly overpaying for
these drugs. Recommendations were made to change payments so they
reflected actual market cost. The Clinton administration tried to make
some of these changes but after pushback from providers, it backed off.
  Congress took another run at this issue in 2003 in the Medicare
Modernization Act and was successful. Congress reformed how Medicare
pays these drugs under Part B, not Part D. Medicare now bases its
payment for many of these drugs on a market-based price, a real price,
not the average wholesale price, not the ``ain't what's paid'' price
because it wasn't paid. This change, believe it or not, is saving the
taxpayers and beneficiaries, but it took years to get that fixed. In
all that time, Medicare and taxpayers paid too many dollars for drugs,
wasted money, billions and billions of dollars wasted. So using the
Part B tradition, we don't want to make the same mistake. We don't want
to repeat that experience under the new Part D of drugs for Medicare.
  We also knew Medicare overpays for a lot of other services and
equipment.

[[Page S4567]]

The bookshelves are full of other reports from the General Accounting
Office, from the inspector general, from the Medicare Payment Advisory
Commission, from the Congressional Budget Office, and others, about how
Medicare is paying too much in too many areas. For example, Medicare
overpaid for durable medical equipment for years until the Republican-
led Congress made changes in the 2005 Deficit Reduction Act. In
addition, each year the Office of Inspector General issues what is
called the Red Book, which presents cost savings recommendations. The
books are usually 50 or more pages long, and the recommendations span
all aspects of Medicare--hospitals, physicians, home health care plans,
and others. This is more evidence of the many areas where Medicare
doesn't get the best deal.
  Congress has even created the Medicare Payment Advisory Commission,
called MedPAC, to provide advice to Congress on payments for services.
Every year, Congress hears recommendations from MedPAC to address
Medicare overpayments, but many times it takes years for the Secretary
of Health and Human Services or for the entire Congress to act to save
the taxpayers money. In making recommendations, MedPAC looks at profit
margins, for example. One type of provider had been found to have
margins of 17 percent off of Medicare payments. The Congress has been
able to act on many MedPAC recommendations, but it can be very hard to
accomplish these changes. I remember when I was chairman of the Senate
Finance Committee over the last 4 years. I received letters from
Members saying something like: Please don't cut payments for this
provider group or that provider group.
  In fact, on the Senate floor just before recess, I fought to prevent
this very Senate from freezing a Center for Medicare Services' rule
that would have prevented wasteful spending in the program we call
Medicaid. Is the rule a good thing or a bad thing? We didn't bother to
hold the first hearing on the subject. The only thing that mattered was
that a group of providers complained. Like the Clinton administration
found, letters and complaints such as that can make it difficult, in
the very short order, to do anything about a problem, despite the
compelling evidence of overpayments, despite the high profit margins,
despite the fact that a proposed change could save taxpayers billions
of dollars.
  Those of us who wrote the Part D Medicare drug plan passed 4 years
ago--and that was mostly Senator Baucus for the Democrats and me for
the Republicans--were concerned that this same kind of dynamic might
happen with this Part D program. Political pressures on Medicare drug
benefits would tie the hands of the Secretary of Health and Human
Services. If that happens, the programs would be unmanageable and costs
would skyrocket. Instead, Congress put competing private plans in
charge of negotiating. These plans and their negotiators have years of
experience in this arena. This is what they do for a living. Health and
Human Services has had very little experience and a very dismal track
record.
  On this chart, these plans and their negotiators and managers have
powerful bargaining clout in the market. They manage the drug coverage
for tens of millions of people. There are plans that cover upwards of
50 million people--75 million, in one case--far more than the 41
million Medicare beneficiaries. Clearly, Medicare beneficiaries account
for a large number of all prescriptions filled each year, so some might
argue that 41 million beneficiaries have more clout than 75 million
nonbeneficiaries, but numbers alone do not necessarily translate into
lower costs.
  As evidence of that, we had all sorts of experts come before the
Finance Committee in January on this very topic. In response to
questions I asked, particularly of Professor Scott Morton of Yale
University, he said it doesn't matter whether you negotiate on behalf
of 1 million or 43 million people; what matters is what leverage you
have and how you use that leverage.
  I think I ought to emphasize that. It is how you use the leverage. So
it is what is done to leverage those numbers, then, that leads to lower
costs. That leverage comes from the plan being able to say to a drug
company something such as: I can get a better deal on drug A from a
different manufacturer that has the same clinical effect as your drug
B. If you can't match it or do better, then I am going to leave the
table.

  Some plans will get a better deal on drug A and put it in their
formulary. Some plans will get a better deal on drug B. But many
experts agree--and experience suggests--that it would be difficult for
the Government itself, our Government, to walk away from the table.
There would be enormous pressure to cover everything. If it did, the
negotiating power lies not with the Government but with the
manufacturers.
  Here is what Professor Scott Morton said would happen if someone
negotiating drug prices couldn't have a formulary:

       Each manufacturer would know that, fundamentally, Medicare
     must purchase all products. The Medicare ``negotiator'' would
     have no bargaining leverage, and therefore, simply allowing
     bargaining on its own would not lead to substantially lower
     prices.

  At the same hearing, we had another witness. That witness was Mr.
Edward Haislmaier, of the Heritage Institute. I would like to quote him
from his written testimony:

       [that] volume purchasing encourages manufacturer
     discounting, it is not, in and of itself, sufficient to
     extract large discounts. Manufacturers will only offer
     substantial discounts if the buyer combines the ``carrot'' of
     volume with the ``stick'' of being able to substitute one
     supplier's goods with those of another.

  In drug negotiations, that stick is called a formulary. Plans
participating in drug benefits can use that stick. Expert after expert
agrees it would be difficult, if not impossible, for the Government,
however, to use that stick under Medicare. In fact, in a November 2
Wall Street Journal opinion piece, Dr. Allen Enthoven, an economist at
Stanford University, wrote:

       When the government negotiates, its hands are tied because
     there are few drugs it can exclude without facing political
     backlash from doctors and the Medicare population, a very
     influential group of voters.

  Let's be honest with each other. What do you think would happen in
the Senate if the Center for Medicare Services, CMS, tried to cut a
large drug company headquartered in New Jersey or North Carolina, for
example, completely out of Part D because they wouldn't meet the
Government's price demands? Would Senators from those States say
something such as: Oh, well, that is just too bad? Would any of you say
that if it was in your State that a manufacturer was being cut out?
Again, let's be honest with each other.
  What are we left with then? At the January Senate Finance Committee
hearing, Professor Scott Morton said that without a formulary--the
``stick,'' as I refer to it--the Secretary would have about as much
negotiating power as you would get by calling a drug maker and saying
something such as: I would like you to offer a lower price. Their
answer might be: Why should I? You have to buy my drug, so why would I
offer you a lower price? About all you have left after that is: Please,
won't you give me a lower price? That is not going to get you very far.
  If my friends on the other side of the aisle think this bill is going
to achieve real savings for consumers or the Federal Government, they
must have some ideas in mind. I can't believe my friends would come to
the Senate floor with a bill that is truly as ``do nothing'' as CBO
describes it.
  Here is what the Congressional Budget Office said about S. 3. It
would have ``a negligible effect on federal spending.'' Another quote:

       Without the authority to establish a formulary, we believe
     that the Secretary would not be able to encourage the use of
     particular drugs by Part D beneficiaries, and as a result
     would lack the leverage to obtain significant discounts in
     his negotiations with drug manufacturers.

  So let me repeat that other quote: It would have ``a negligible
effect on federal spending.''
  The bill we are considering and voting on tomorrow cannot possibly be
as innocuous or inconsequential as what the Congressional Budget Office
said. Certainly, there must be creative ideas out there to find savings
we have not considered.
  Since the Finance Committee's markup of S. 3 the other night, I have
been considering how a Secretary

[[Page S4568]]

might use his imagination to find savings. One of the first places we
looked at was H.R. 4, the bill that passed the Senate.
  H.R. 4 struck the language in the statute that prevents the Secretary
from instituting a price structure for reimbursement of covered drugs.
Did the House strike the ban because they want an imaginative Secretary
to use price controls as part of negotiations? Because all we have
heard is they do not want price controls.
  Last Thursday night, we offered an amendment to S. 3 to prevent the
Secretary from using a preferred drug list, or PDLs as they are called.
A preferred drug list is just a formulary under a different name. It is
essentially a Government-controlled list of drugs that you can or
cannot have.
  While I do not think there is a difference between formularies and
preferred drug lists, we have seen the courts rule that a State can use
one in Medicaid even though Medicaid bans the use of formularies.
  So Thursday night, we had an amendment to prevent the Secretary from
using preferred drug lists. After all, we do not want the Secretary
coming up with a list of drugs you can or cannot take, do we?
  To my surprise, the Democrats on the committee rejected my amendment.
So what is going on? Perhaps they think that having the Government
establish a preferred drug list is one of the imaginative ideas a
Secretary will be able to use to save money.
  I think this bill is a Trojan Horse. It is dressed up as a do-nothing
message bill. But before the week is out, we are going to look inside
that horse and see all the bad that could be waiting to hurt
beneficiaries. We will see what is bad in this bill that will hurt
access and choices beneficiaries currently have in this Medicare drug
benefit program.
  Maintaining access and choice--access and choice--is critical because
beneficiaries have different drug needs. The way the benefit is
structured now is that plans can have different formularies. Some might
get a good price on one drug; another might get a better price on
another drug. They can have different formularies, and beneficiaries
can have choices that meet their needs.
  When Congress finished work on the new drug benefit in 2003, we knew
it was an experiment. Nothing like this had ever been tried. Here is
what we learned: Private competition works. It has been successful at
keeping costs down. The 25 most used drugs by seniors cost 35 percent
less. Plan bids have come in lower than expected. This year, they were
down 10 percent from last year's bids.
  Premiums are lower than they were estimated to be. Before 2006,
Medicare's chief actuary estimated the average monthly premium would be
$37, but it was actually $23 in 2006. That is 38 percent lower than
expected. Because of the strong competition between plans, the average
premiums for beneficiaries is expected to be about $22 in 2007, not the
$39 that had been estimated.
  Why? Private competition works.
  The net cost to the Federal Government is also lower than expected.
In January, the official Medicare actuary announced that the net 10-
year cost of Part D has dropped by $189 billion over the original
budget window used when the Medicare Modernization Act was enacted.
That is 2004 to 2013. That is a 30-percent drop in the actual cost
compared to the projection.
  Why? Because private competition works.
  The savings are unheard of for a Government program of any kind.
Where else have you ever heard of a cost underrun in a Federal program?
  The PRESIDING OFFICER. The Senator's time has expired.
  Mr. GRASSLEY. Mr. President, could I please have 4 more minutes? I
ask unanimous consent for that additional time.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. GRASSLEY. I wish to emphasize: We have a cost underrun in a
Federal program. When have you ever heard of that?
  You could not get those lower prices and lower costs unless the
prescription drug plans are being strong negotiators with the drug
makers. States are also saving money in lower contributions, better
known as ``clawback'' payments. State clawback payments are now
projected to be $37 billion less over a 10-year period. That is 27
percent lower. Just in 2006, States saved $700 million.
  Why? Because private competition is working.
  The plans are negotiating lower prices for drugs. I have said so many
times, for the top 25 drugs used by seniors, the Medicare prescription
drug plans have been able to negotiate prices that on average are 35
percent lower than the average cash price at retail pharmacies--35
percent lower.
  Why? Because private competition is working.
  Here are some examples: Lipitor is 15 percent lower, Atenolol is 63
percent lower, while Fosamax is 30 percent lower. I could go on down
the list.
  Now, when the drug benefit was signed into law, we believed it would
work and hold down costs. That is certainly happening today even more
than we expected because private competition works.
  We also said that if it did not work--if the negotiating model used
for the drug benefit did not hold down costs--then Congress would need
to reexamine things. If costs grew too fast, then the whole idea would
have to be revisited.
  Maybe we would have to restrict access to drugs. Maybe we would have
to rely more on mail order pharmacies instead of liberal access to
local retail pharmacies. Maybe more drastic cost-cutting measures would
be needed.
  But that is not the position we are in today. Why? Because private
competition works.
  I hate to sound like a broken record, but I think the naysayers out
there need a little repetition therapy. Everyone has heard the old
saying that ``if it ain't broke, don't fix it.'' It certainly applies
here, and the evidence shows it.
  I would like to be the first one to say that the Medicare drug
benefit is not perfect. There are improvements that can be made.
Congress should look at ways to make it easier for low-income
beneficiaries to get the additional assistance they need by reexamining
the low-income subsidy asset test.
  We need to look at payments to pharmacies and make some reforms in
that area. We need to look at ways we can simplify the enrollment
process. And there are other areas where we can make improvements.
  But one area that is working very well is the negotiating power of
Medicare drug plans. They have shown their ability to hold down costs.
It is working.
  The pleas from the naysayers to put the Government in charge of
negotiating are about politics, not policy. These voices have not given
up in their misguided quest to score political points with the drug
benefit. It saddens me the Democratically controlled Congress has
devoted so much time to this issue rather than looking at some of the
improvements we can make in Part D that I mentioned.
  Why they have put politics ahead of constructive changes is beyond
me.
  In January, I had hoped we could put politics aside and focus on some
of the real improvements we could be making with the drug benefit. But,
sadly, that is not the case, and that is why I am here today.
  Under the drug benefit today, with the plans negotiating with drug
makers and competing with each other, we have lower drug prices for
beneficiaries, lower program costs for the Government--saving the
taxpayers money--and prescription drug choices for beneficiaries.
  Private competition works.
  Mr. President, I urge my colleagues to oppose S. 3. It is a big
government takeover of the private market that is working for the
Medicare benefit.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Massachusetts is recognized.
  Mr. KERRY. Mr. President, I ask unanimous consent I be permitted to
proceed as in morning business for such time as I may consume.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. KERRY. I thank the Chair.
  Mr. President, let me just comment. I did not come to the floor to
speak about the bill specifically. I wish to speak about the
alternative minimum tax in a moment. But I cannot help, since I am a
member of the committee--listening to the ranking member talk about
Medicare and what the

[[Page S4569]]

impact of allowing Medicare the possibility of being able to negotiate
might or might not be--but speak to that for a moment, if I can.
  I think most Americans understand, as a matter of common sense, that
when an entity that represents their tax dollars has the ability to go
out into the marketplace and negotiate for a price, the probability
they are going to have saved tax dollars is pretty real, if there is a
good and decent negotiation.
  The resistance of the Senator from Iowa and others is interesting
because it is a resistance that represents the power of big companies
in the country--the drug companies--to sort of say: Hey, we kind of
like the system the way it is--which we understand because the profits
are enormous. But our job is to represent the taxpayers' dollars. Our
job is also to use the marketplace thoughtfully.
  I do not know what it is that suggests, on the one hand, it is
legitimate for the Veterans' Administration to go out as a Government
entity and negotiate a lower price for the drugs it purchases to
distribute to veterans--which we do--but it is not OK for Medicare--
which is another Government program that costs the taxpayers a lot of
money--to be able to go out and negotiate a lower price for seniors. It
is illogical.
  What they do is come in and try to scare people and say: Well, we
have given this special privilege to the Veterans' Administration, but
if all of a sudden we allow somebody else to negotiate it, then the
veterans are not going to get as good a deal.
  Well, nobody knows that until you go out into the marketplace. The
Veterans' Administration and Medicare together still do not represent
the entire market. You are going to have an incredible number of
private citizens still purchasing through private health care plans or
their HMOs or other plans--private as they are--also.
  The marketplace is still going to have its capacity to work. This is
not such a large block that it represents a complete and total
eradication of a marketplace, No. 1. No. 2, there are other countries
where you have this kind of negotiated fee for the service being
provided which has worked very effectively.
  I think the bottom line is that people have to remember that this
legislation we are talking about does not order the Secretary to do
this. It is pretty obvious under this administration it is not going to
happen because they do not believe in it. All we are doing is lifting
the prohibition against the Secretary doing it. So if all the negative
things the Senator talks about are true, a smart Secretary is not going
to do them because they are negative.
  But why would you put in place a prohibition? Why do you specifically
say: No, the Secretary can't go out and negotiate the price. You are
stuck with the status quo. You are stuck with the current system. The
reason is very simple: because it is a lot of money out of the pockets
of taxpayers into the pockets of the big companies. That is it, and
they are here protecting that.
  This is a question of whether we are simply going to lift the
prohibition, let the Secretary make the judgment. Can you go out into
the market? Can you do this without hurting veterans? Can you do it
without upsetting the marketplace? Can you do it and still have the
kind of resources you want put into the research of new drugs and other
things? I am confident a Secretary is going to make a smart decision.

  It is interesting to see the people who usually spend the most time
arguing in this country ``don't let the government interfere'' are the
ones who are standing up to let the Government--excuse me, not let the
Government, force the Government, in effect, to interfere with the
marketplace. Actually, what they really are doing is putting in place a
prohibition against the Secretary actually letting the marketplace work
or testing whether the marketplace could work more effectively. In
effect, we leave it in a state where the companies are dictating
effectively what the price is going to be and the citizen, as a result,
winds up paying an unfair burden.
  We are not doing the best job possible as Government trustees of
taxpayer money in taking care of that money and in representing the
interests of our taxpayers. That is what is at stake here. Are you
prepared to trust the discretion of the Secretary to analyze this, to
look at what is best for the country, best for the delivery system, and
make that judgment? All we are doing is lifting an unfair special
interest prohibition to allow a full analysis of what the better
alternative might be.


                        Alternative Minimum Tax

  Mr. President, as Americans prepared their taxes this year, millions
of families in Massachusetts and across the country found a very
unpleasant surprise. Beyond their regular income taxes, families found
another hidden income tax, which is the alternative minimum tax. It
costs those families many thousands of dollars. Most taxpayers are
accustomed to computing their income tax liability in the usual way:
adding up their income, making whatever deductions they are entitled
to, subtracting exemptions for their dependents, and then checking
their tax bracket to find out how much they owe. But this year, many of
those same taxpayers discovered another tax that ate up any exemptions
and deductions they might have claimed. It is a hidden income tax, and
it affects the wrong people. It affects people we never intended to
affect, and each year that we don't address it, it grows worse.
  This alternative minimum tax is a tax that made sense once upon a
time. When it was first enacted in 1969, it had a rationale, but since
then, it has become bloated and illogical. The tax was first put in
place when Treasury Secretary Joseph Barr, during his 1 month as the
shortest tenured Treasury Secretary in history, told Congress about 155
wealthy Americans who had paid no income tax in 1966. Congress was
overwhelmed with mail expressing outrage that these 155 rich Americans
weren't pulling their weight. In response, Congress passed the first
version of the AMT. So the AMT was put in place to address Americans'
concerns with 155 of the richest Americans at a time when 155
represented a large block of those who were among the wealthiest
Americans. Urging tax reform, Secretary Barr coined the phrase
``taxpayers' revolt'' and that is exactly what we are likely to see
unless we get this right now.
  In 1970, 20,000 taxpayers were affected by the alternative minimum
tax. This year, about 4 million Americans will pay it, and next year
that number could rise to 23 million Americans. What was originally a
small fix at the edge of our Tax Code has now ballooned into a massive
inconvenience and unfairness at the center of our Tax Code. Instead of
serving its original purpose, the tax cuts we saw passed into law a few
years ago, illogical and deceptive as they were, are winding up
targeting the very people we are supposed to be helping. The very
people we hear most of the rhetoric about--those who need help in
America and the middle class being unfairly taxed--are the very people
who are being unfairly taxed by this hidden tax people don't want to
talk about. The fact is the middle class has seen an enormous shift in
the burden away from the wealthiest Americans onto the middle class,
the very people the AMT was designed to protect.
  The AMT is now poised to make a dramatic shift from the wealthy to
the middle class. In 2006, taxpayers earning more than half a million
dollars will pay 47 percent of the tax. By 2010, that number will drop
to 16 percent. We are going to go from 47 percent of the people who
earn more than half a million dollars who are supposed to be the
targets of the alternative minimum tax--that will drop to 16 percent--
and the people who are going to pick up the difference are going to be
Americans in the middle class who are struggling with increasing
tuition costs, increasing energy costs, increasing health care costs,
and wages that are either frozen or going down. Meanwhile, investment
income will not be impacted by the alternative minimum tax, and the top
alternative minimum tax rate is lower than the top marginal tax rate,
which is what people pay on their income.
  So a tax designed to cover or apply to the wealthiest Americans has
become a solidly middle-class tax.
  This tax also punishes certain States in our country more than other
States, and particularly a State such as mine--Massachusetts--but other
States in the Northeast and large industrial States.

[[Page S4570]]

In 2007, 24 percent of Massachusetts taxpayers, up from about 5 percent
last year, will be hit by the alternative minimum tax, so that
Massachusetts will be No. 4 in the rankings of all the States in the
country. I don't think we ought to be putting an undue burden on the
middle class, and we certainly shouldn't be putting one unfairly on
certain States while other States are exempt.
  Worse still, the tax penalizes families with children because it
eliminates any dependent exemptions. So here we are talking about
family values, but the family values are stripped away for those
middle-class families because they lose their exemptions for their
dependents.
  In 2007, the alternative minimum tax will impact a family with four
children and an income of $57,000. Married couples will be more than 12
times as likely as singles to face the alternative minimum tax in 2010.
So those of us who argued strongly about the marriage penalty need to
note that the marriage penalty is, in fact, growing larger as a
consequence of the alternative minimum tax. We wrote the exemptions
that we had specifically to help families to get away from that
problem, and my question is, do we now want to burden them with this
additional tax.
  President Bush has acknowledged, at least rhetorically, this is a
failed policy. There is room for bipartisanship here. Congress and the
President need to work together to address what has become a major
structural problem in our Tax Code. I commend my colleague from
Massachusetts, Congressman Neal, who is working in the House on this
issue and showing important leadership in order to try to address it,
and I look forward to seeing his proposal.

  In fixing this tax, there are two major pitfalls we have to avoid.
The first is: Don't simply repeal the tax without paying for it. We
can't afford to do that, and it is clearly not fiscally responsible.
Finally, it doesn't solve the problem. Second, we need to find a
permanent solution. The alternative minimum tax itself was originally a
small fix for a different tax issue. It is the accumulation over time
of stopgap measures that has brought us to the current problem. So I
don't believe it serves us well at all to push this issue down the
road, as has been the practice of the Congress in these last years.
  We also need to make the tax policy of our country simpler and more
straightforward and fill it with a little more common sense and a
little less special interests. Our tax problem as a nation was, in
fact, made significantly worse by the Bush tax cuts, and the
alternative minimum tax has been used quietly, more and more, to ask
middle-class families to pay the burden of the wealthiest Americans'
tax cut.
  We can all agree the main reason this tax has grown out of proportion
is that it wasn't indexed to inflation. The same money we talk about
today went an awful lot farther in 1970. The movies back then cost
$1.65. The fact is we haven't adjusted the tax brackets to rise with
inflation.
  Another major problem has been the alternative minimum tax
interaction with the Bush tax cuts. This administration and the
Republican Congress purposefully allowed the tax system to become
unbalanced. This was done in order to hide the true cost of the tax
cuts. Normally, sound tax policy involves changing the alternative
minimum tax to reflect changes in regular tax cuts. For example, in
1993, we raised rates for both taxes simultaneously. But under this
President, in 2001 and in 2003 and in 2004, we cut the regular income
tax rate without making corresponding significant changes in the AMT.
Instead of paying upfront through the regular income tax, this
administration used the AMT to finance tax cuts for the very people the
AMT was designed to tax. The AMT quietly takes back a portion of the
Bush tax cuts by 2010, about 29 percent, transferring the tax burden
from the top tax brackets to largely middle-class tax families.
  If we had a vote on the floor of the Senate which specifically said:
Are you going to tax middle-class families in order to pay for a
wealthy tax cut and shift the burden by about 29 percent, almost
everybody here would vote no. So it is the hidden tax cut that has the
impact. Before the Bush tax cuts, 17 million taxpayers would have been
affected by the alternative minimum tax in 2010, but with the Bush tax
cuts, that number almost doubles to 31 million. If we let the Bush tax
cuts expire in 2011, at least the number of AMT taxpayers would drop
dramatically. I am confident that will be an important debate down the
road here. In 2007, a family with 2 children and an income of $80,000
will see 59 percent of their tax cut taken back by the alternative
minimum tax. Tom Waits, the 1970s singer and songwriter, once said the
large print giveth and the small print taketh away. Well, the small
print, my friends, is the alternative minimum tax, and it is taking
away America's families' tax savings.
  We need to be honest about the cost of our tax cuts. Back in 2001, I
tried to offer an amendment that exempted all taxpayers with incomes
under $100,000 from the AMT. At that time I warned that the AMT is
encroaching on middle-class taxpayers and that the tax cuts would only
make things worse. The fix for the AMT problem at that time was
estimated to cost $110 billion over 10 years, money that instead is now
being paid by middle-class families. The amendment at that time was
revenue neutral. It offset the cost by delaying some of the Bush tax
cuts. It cut the 39.6 rate down to 37 percent, instead of 35, but
unfortunately, the amendment failed.
  I don't believe we can continue to put this problem off. Unless we
reform our tax system for the sake of middle-class families--and we
simply can't afford not to reform it--we are going to pay one way or
the other, with the debt that is passed on to our children or with
taxes passed on from the wealthiest to an ever-growing part of the
middle class. We need a bipartisan, fiscally responsible, permanent
approach, not one that masks the costs of irresponsible cuts or becomes
a burden for the middle class, and not one that gives more and more
families an unpleasant surprise on tax day.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER (Mr. Whitehouse). The distinguished Senator
from West Virginia is recognized.
  Mr. BYRD. Mr. President, I wish to propound a parliamentary inquiry.
  The PRESIDING OFFICER. The Senator will inquire.
  Mr. BYRD. Mr. President, what is the parliamentary situation?
  The PRESIDING OFFICER. The Senate is considering S. 372.
  Mr. BYRD. Mr. President, I have a parliamentary inquiry further.
  The PRESIDING OFFICER. The Senator will state it.
  Mr. BYRD. Mr. President, what is the parliamentary situation--I may
not have the floor. May I ask the Chair, please tell me what the
parliamentary situation is.
  The PRESIDING OFFICER. The Senator from West Virginia has been
recognized by the Chair and now has the floor.
  Mr. BYRD. Mr. President, if that were not the case, what would be the
case?
  The PRESIDING OFFICER. There is no current time agreement. The Senate
is considering S. 372 under no time agreement.
  Mr. BYRD. Very well. Mr. President, I am not going to speak just now.
I want to respect the wishes of another Senator who is on the floor at
the moment. In a few minutes, I will want to speak a bit. As of now, I
am going to take my seat. I will ask the Senator, does he wish to speak
at this time?
  Mr. WYDEN. Mr. President, I thank the distinguished Senator from West
Virginia for his courtesy. If it would not be too great an imposition,
I will speak for a few minutes on the Intelligence bill. That would be
very much appreciated.
  Mr. BYRD. Mr. President, I thank the distinguished Senator. I am
going to sit down and listen. May I ask the Senator this question: How
long will he likely speak?
  Mr. WYDEN. Again, I thank the Senator from West Virginia for his
courtesy. I will speak less than 10 minutes. I so appreciate the
thoughtfulness of the Senator from West Virginia.
  Mr. BYRD. Mr. President, I thank the distinguished Senator. After he
yields the floor, I will seek recognition. I understand the rules of
the Senate. I am just stating at this point what I intend to do.
  The PRESIDING OFFICER. The Senator from Oregon is recognized.

[[Page S4571]]

  Mr. WYDEN. Before he leaves, Senator Byrd has always been so kind to
this Senator. I appreciate it.
  I wish to take a few moments to talk about the critically important
Intelligence authorization bill that is before the Senate now. I am
disappointed that this legislation has not yet passed because it seems
to me that Chairman Rockefeller and Vice Chairman Bond have done an
awful lot of very good work in terms of negotiating on this legislation
and doing it in a bipartisan fashion. A number of us have felt that it
was critically important that intelligence, in the days ahead, at a
time of great threat to our country, be an area that is pursued in a
bipartisan way. My view is that Chairman Rockefeller and Vice Chairman
Bond have really kept that kind of bipartisan lodestar in mind as we
have conducted our work throughout this session. That is one of the
reasons I have so wanted this legislation to move forward.
  I wish to take a minute to highlight just one of the provisions that
seems to be objectionable to the executive branch and try to show how,
in my view, that should not be the case and how the Senate ought to
come together around it and move forward on this bipartisan piece of
legislation.
  There is a provision in the bill the Senate is now considering--a
provision that I offered--which would make public the total size of our
national intelligence budget. This provision would not make public how
much the country spends on any particular collection method; it would
simply state the U.S. Government spends X amount of money on national
intelligence programs.
  This has long received bipartisan support. The bipartisan 9/11
Commission was for it. The former Director of the CIA, Stansfield
Turner, is for it. I would like to note that our current Secretary of
Defense, Secretary Gates, when he was before the U.S. Senate
Intelligence Committee--and I will quote here--said:

       From my personal perspective, I don't have any problem with
     releasing the top line of the intelligence community budget.

  I am of the view that Secretary Gates was right when he said that a
number of years ago, and he is right at this time as well. In my view,
to suggest that disclosing the total size of our national intelligence
budget would cause any harm whatsoever to national security is
ridiculous. It is absolutely absurd to think that Osama bin Laden is
off in a cave somewhere contemplating what the overall national
intelligence budget is. It is absurd to suggest that Kim Jong Il is
somehow sitting in his office wondering and worrying, for example,
whether the Wyden amendment to the intelligence authorization is going
to pass. It is absurd to believe that any terrorist or dictator or any
other enemy of the United States will gain any sort of advantage
whatever from the public disclosure of the top line of the national
intelligence budget.
  But there are people who will gain an advantage; that is, the
American people. Making the total size of our intelligence public is
going to increase public accountability and will allow for a more
informed debate about national security. If the national intelligence
budget's overall number is made public, there will be a more informed
discussion about whether money should be spent on aircraft carriers or
submarines or on intelligence gathering. This debate will only ensure
that taxpayer dollars are used more wisely and that America will be
safer.

  Senator Byrd has been very gracious to give me this time this
afternoon. There are other provisions that I feel strongly about in
this legislation. The increased penalties, for example, for outing a
covert agent is something I feel strongly about. After the Dubai Ports
debate, it is clear that there should be additional resources devoted
to looking at the intelligence ramifications of those particular
issues.
  But my bottom line is, at a time when Americans are questioning our
intelligence agencies' ability to keep them safe, the Congress has a
responsibility to provide support. At a time when the intelligence
community is undergoing major reorganization, the Congress has a
responsibility to provide guidance. At a time when our allies and our
citizens are raising serious questions about detention issues, Congress
has a responsibility to conduct oversight. At a time when Americans
continue to open their morning papers and read about aggressive new
forms of Government surveillance and, in particular, the now-disclosed
abuse of the national security letters, Congress has a responsibility
to demand accountability.
  Chairman Rockefeller and Vice Chairman Bond have done a lot of good
work on this legislation. The distinguished occupant of the chair has
been involved in those debates, and we are pleased that he is part of
the committee. I hope the Senate will move expeditiously to move
forward on this legislation. It is an important bill, at a critical
time for the security of the American people.
  Again, I express my appreciation to the distinguished Senator from
West Virginia for giving me the opportunity to speak this afternoon.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from West Virginia is recognized.
  Mr. BYRD. Mr. President, I wish to thank the distinguished Senator
from Oregon, Mr. Wyden, for his courtesy, and I also want to say that
he is one of the immortal 23 Senators who said, in kind words and
respectful words and in senatorial terms, we won't go--meaning, we were
going to be Senators. We know what the Constitution says about Members
of the Senate and the House, we were going to be Senators, we were
going to be respectful, but we were going to vote our way. We were
respectful of the President, but we knew we were Senators and that
there were three branches of Government, and we know and knew then that
this is the legislative branch--the first branch of Government that is
mentioned under the Constitution, and it is sometimes called ``the
people's branch.'' That is for good reason.
  Now, what is the floor situation?
  The PRESIDING OFFICER. S. 372 is the pending question, and the
Senator from West Virginia has the floor with no present time
restriction.
  Mr. BYRD. Further parliamentary question: Is time controlled at this
moment?
  The PRESIDING OFFICER. It is not.
  Mr. BYRD. I thank the Chair. Mr. President, I ask unanimous consent
that I may speak as in morning business--in other words, out of order--
for not to exceed 20 minutes. I don't expect to take that much time.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BYRD. I thank the Chair.


                              Veto Threats

  Mr. President, the 110th Congress will consider legislation this
session that raises passions and excites partisan fervor. It is likely
that much of what the Congress considers this year and next will be
subject to Presidential veto threats because the President's political
party no longer controls the Congress.
  I was quite surprised recently to hear some Senators take the
position that this body is wasting its time in drafting and passing
legislation which the President threatens to veto.
  Let me respectfully remind all who listen that the Congress
legislates for the people and has a constitutional obligation--in other
words, duty--to act independently from--I say this again, I say it
respectfully--from the White House. There are three branches, as
everybody knows, of Government. This is a separate but equal branch. I
want Senators to listen. This is a separate branch, but it is equal.
  I will repeat myself. As Senators already know, there are three
separate but equal branches of Government. The Constitution's Framers
never considered a President to be the final arbiter of the public
good. Whether the question relates to military, foreign, or domestic
affairs, a Presidential veto threat is not the last word in what should
become the law of our land. Those decisions are left to the
representatives of the people, along with the power over the purse--
along with the power over the purse--and other constitutionally
enumerated congressional powers.
  We hear almost daily a Presidential scolding of the Congress
concerning the supplemental appropriations bill, which is shortly
headed for a House-Senate conference. Continued Presidential veto
threats on the funding for the Iraq war represent a stubborn
unwillingness to concede that the American people have over time and
with considerable debate come to see that the Iraq war was a mistake.

[[Page S4572]]

  In the case of Iraq, it is likely that the people of the United
States would have come to these opinions much earlier had they not had
information withheld from them or, in some instances, presented to them
falsely. Of course, I knew this.
  Of course, also, it remains the constitutional prerogative of the
President to exercise the veto. I respect that. But it also remains the
prerogative of the Congress--the other body across the way and this
body--it also remains the prerogative of the Congress to challenge that
veto and to assert and defend the will of the people.
  A President's power to veto is not and should not be absolute. Let me
repeat that. A President's power to veto is not and should not be
absolute. If the President vetoes a measure under our Constitution, the
Congress can override that veto with a two-thirds vote of both Houses.
All Senators know that. I am not telling Senators anything they don't
know.
  A Presidential veto does not necessarily end the legislative process.
When the President vetoes legislation under article I, section 7 of the
Constitution, the President's objections are submitted to the House of
Congress--Congress being of two bodies--submitted to the House of
Congress in which the measure originated so that the measure and the
President's objections can be reconsidered. All Senators know that. Any
schoolboy who has studied the Constitution knows that. But I am stating
for the record, again, for all who run to read.
  A new vote can be scheduled on the same piece of legislation and a
veto can be overturned if the people's representatives--if the people's
elected representatives--in Congress demand it.
  There is nothing earthshaking about overturning a Presidential veto.
Since 1969, the Congress has overridden almost 20 percent of the
Presidential vetoes. President Franklin Roosevelt had nine vetoes
overridden by Democratic Congresses. I repeat: President Franklin
Roosevelt had nine vetoes overridden by Democratic Congresses.
President Ronald Reagan had six vetoes overridden by a Democratic House
and a Republican Senate.
  The veto override provision in the Constitution is a protection for
the people whom the Congress represents. Members of Congress are
elected by the people to make laws based on sound public policy, not to
capitulate or surrender to any--Republican or Democrat--to any
Presidential threats. The Senate must never--hear me now, the Senate
must never--become a rubberstamp for any President, Republican or
Democrat or Independent or otherwise.
  Certainly, the Congress should carefully consider the announced
reasons for a Presidential veto, but the Congress has a duty, if the
President's reasons are not credible or do not reflect the will of the
people, to overturn Presidential vetoes, if the Congress wishes to do
so.
  The veto on the override is a healthy public opportunity for Members
of Congress--both Houses--to consider the reasons offered by the
President for his veto. Just as the President is held accountable for
his veto, we Senators are held accountable for our votes on bills that
are sent to the President and, if applicable, a subsequent veto
override vote.
  Members of the Senate and the people understand that when the
President submits a bill to Congress and then asks that it be passed
without any amendments or conditions--the President has a right to do
that, but we all know that the President is treating the Congress like
a subordinate branch capable of only saying yes or no and never
expected to alter a Presidential proposal in any way.
  The President knows what the Constitution says, and he knows that the
Congress has a right to listen, to study, and then to act as it seeks
to act. So this is an argument that contradicts the most basic
constitutional principles on which our Republic is founded.
  The Congress was envisioned as a check on an overzealous or unwise
President, and that is no reflection on either party--that the
President can be a Democrat, a Republican, or otherwise--and we do our
duty to the Constitution when we vigorously utilize our enumerated
powers.

  So let us hear no more about measures that the President has
threatened to veto being not worthy of the Senate's consideration. Let
the President issue his veto threats as he wishes, but also let the
Congress dutifully represent the will of the people.
  On the matter of Iraq--and I say this most respectfully--I have been
chagrined of late to hear the falsehoods and scare tactics emanating
from the Oval Office. President Bush has repeatedly intimated that
there is a connection between the attacks of 9/11 and the Iraq war when
no such link exists. President Bush has suggested--he is my President
and yours, Senators--that the supplemental appropriations bill as now
written would cause death and destruction in America, which is patently
false. I speak now as the chairman--of course, everybody knows it--I
speak as the chairman of the Appropriations Committee.
  Mr. President, I make a parliamentary inquiry: Are we under limited
time, I ask the Chair?
  The PRESIDING OFFICER. The Senator has 1 minute 30 seconds remaining
of the 20 minutes he requested.
  Mr. BYRD. Mr. President, I am not going to belabor Senators. I have
seven more pages to read. I know what is in here, and so I ask
unanimous consent that I may use whatever time I consume, and I assure
Senators I will not consume more than 10 minutes, if that much.
  The PRESIDING OFFICER. Is there objection?
  Hearing no objection, it is so ordered.
  Mr. BYRD. President Bush has said the bill does not fund the troops,
which is false. The Senate bill provides $2 billion more than the
President requested for the troops and provides $1.8 billion more for
veterans health care. I regret this continual barrage of misinformation
coming from the White House just as I regret the intransigence--the
intransigence--of a President who will not cool off--and I say this
respectfully--of a President who will not cool off and stop
fearmongering long enough to negotiate a resolution to the differences
in the bill's language. He--the President--has been invited to do so in
good faith and yet still the almost daily castigation from the White
House continues.
  I wonder about the effect on the morale of our brave fighting men and
women when the President--any President--repeats inaccuracies like the
Congress has failed to fully fund the troops. It seems to me that it is
not a prudent thing to say. Congress and the American people support
our troops, and the supplemental bill that we shall shortly take to
conference robustly funds their needs in the field and cares for their
needs after they return home.
  For the President to assert otherwise is a disservice--and I say this
with the utmost respect. I will say it again. For the President to
assert otherwise is a disservice. Honorable men and women may disagree,
but Members of Congress and officials of the executive branch have a
duty to try to find common ground, especially when the issue is a
violent and controversial war, with our troops in harm's way every day.
I shall hope for a more reasonable and more realistic tone from our
President--and I say it with the utmost respect, but this is an equal
branch with the executive branch and the judicial branch--in the coming
days. May I say further that more light and less heat on this matter
would truly be in the best interests of our troops and of our sorely
divided country.
  Now, Mr. President, I have been here a long time. I know how to
speak, when to speak, and when not to speak, but I am a U.S. Senator,
and I am asserting this Senate's constitutional duty. My Republican
friends and my Democratic friends know this, and I know they have a
right to do the same, but that is my speech for today, God willing.
  Mr. President, I thank the Chair, I thank all Senators, and I yield
the floor.
  Ms. STABENOW. Mr. President, first, I thank my distinguished
colleague from West Virginia for his insight, as always, and wisdom on
so many issues. He epitomizes what it means to be a Senator, and we are
honored and appreciative of his leadership.


                           Prescription Drugs

  Mr. President, I do want to speak today as it relates to prescription
drugs and the very important vote we will be having tomorrow, but I
also first want to speak to what is happening as it relates to
Blacksburg, VA,

[[Page S4573]]

and Virginia Tech University, just to indicate that we know there was a
memorial service today; that all of us, even as we carry on the normal
business of the Senate, are very mindful and aware of what has occurred
in the massacre at Virginia Tech University. My thoughts and prayers go
out to everyone who has been affected throughout the university, most
particularly the families.
  Certainly, I think I can speak for the people of my great State of
Michigan when I say that we are deeply, deeply sorrowful, and our
prayers go out to each and every one of the people who have been
affected.
  Mr. President, we have a very important vote tomorrow, which is
whether to proceed to legislation that would begin the process of
allowing the Secretary of Health and Human Services to be able to
negotiate the very best price for our seniors under Medicare. I want to
take this opportunity to commend our majority leader for getting us to
this point, Senator Reid, and the Finance Committee for getting us to
this point, for bringing the issue of Medicare drug pricing to the
Senate floor. I hope tomorrow we are going to see a strong bipartisan
vote to proceed with the bill.

  Frankly, it is very unfortunate we are having to vote on whether to
proceed to this bill, but since that vote is occurring, I hope we will
have a resounding yes tomorrow for something that is so clear to the
American people. The direction we will hopefully take tomorrow is the
direction that the voters asked us to take. Their message last November
was crystal clear: that they want to make sure we are making health
care decisions in the best interests of people--the best interests of
seniors, of children, of families--and not the special interests that
make money off the system. Tomorrow is going to be a vote on that.
  Tomorrow will be the first step in the process. We are removing the
provision that prohibits Medicare from using its negotiating clout.
What we are going to be voting on tomorrow is whether we will proceed.
And why are we doing that? Well, first of all, this Medicare bill that
was put in place a few years ago actually prohibited the Secretary from
negotiating to get the best price for seniors, amazingly. People to
this day ask: How in the world did that happen? Well, it happened
because, unfortunately, there were too many provisions in that bill
that were put in on behalf of the special interests rather than our
seniors.
  The step we take tomorrow is good for our seniors, it is good for
families, and it is good for taxpayers. It is good for taxpayers to get
the best deal so that our dollars can go as far as possible under
Medicare. So tomorrow is an important day.
  I have been fighting for this provision ever since the Medicare
prescription drug program was passed in late 2003. I wish I could have
supported that bill. I did not, in part because of the prohibition that
was put into place. That bill was written and designed with a huge gap
in coverage--it has often been called the doughnut hole--that, frankly,
wouldn't be there if we were able to get the very best pricing and
stretch those Medicare dollars as far as they should go.
  In fact, I joined a group of Senators to introduce legislation on
December 12, 2003, to repeal the prohibition on negotiation, which is
what we are talking about now, because we knew then what we know today.
If the Secretary of Health and Human Services negotiates Medicare
prescription drug prices, seniors will pay the lowest possible price.
That should be what we are all focused on as it relates to Medicare
prescription drugs. More than 3 years later, we are taking the first
step toward getting this done. It is about time. I think that is what
the American people are saying to us.
  The best way to get the lowest possible prices on prescription drugs
is to use the negotiating clout of 43 million seniors and people with
disability who are under Medicare. That negotiating clout needs to be
used. We are considering this bill right now because the American
people want it. According to a poll conducted by the AARP, 87 percent
of all Americans said they want Medicare to negotiate prescription drug
prices--87 percent. That is a pretty big number. Eighty-seven percent
of the seniors, according to AARP, when asked, have said: Yes, of
course, we want the Federal Government to negotiate to get the very
best price.
  Why do consumers want Medicare to negotiate for lower drug prices?
Because they know what everybody knows: large purchasers are getting
deep discounts for prescription drugs, and they want the same from
Medicare.
  This bill does not do the same thing as the VA, but the VA is a good
example of what can be done when there is negotiation, when the Federal
Government brings its clout as it does for our veterans. It gives us
some idea of the kinds of discounts that can be achieved.
  For example, we know that on average, the VA health system gets
prescription drugs for approximately 58 percent less than their retail
prices--58 percent--and on some medicines, it is up to a 1,000-percent
difference. Now, I would say, if the VA can do this and get 58 percent,
we can get a better deal if we negotiate, knowing again that this bill
does not reflect what the VA does, but it gives you a sense of what can
be done when we have that kind of clout.
  Let's be clear about what we are doing right now with this bill. We
are opening the door to lower drug prices so Medicare beneficiaries can
afford the medicines they need and we can save taxpayers money. We all
know how many times we have heard the stories--I hear them all the
time--of folks trying to juggle between keeping the lights on, buying
food, and getting their medicine. Our top goal should be, as a Medicare
Program, to make sure people can get the medicine they need at the very
best price. This bill moves us in that direction.
  Let's be clear also about what we are not doing. This legislation
does not create a national drug formulary, nor does it establish price
controls. Seniors will have access to all of the drugs they do today,
and possibly more. The prescription drug industry will continue to
thrive, and R&D will not be affected. The change we will see is a
change we have been asking for for the last 3 years, that seniors and
families have been asking for for the last 3 years.
  It is also important to note because we will hear from our friends on
the other side of the aisle that somehow, if Medicare is going to have
the opportunity to negotiate or if the Secretary can negotiate at
appropriate times for lower prices, we are going to see the prices of
the VA go up. Well, I asked the Congressional Budget Office to submit
to me in writing if that were, in fact, true under this bill. They, in
fact, said: No, under this bill, that is not the case. We are not going
to see veterans or any other group see their prescription drug prices
go up under this legislation. So that is one good thing we need to make
clear and debunk as we begin this debate.
  Now, what we do know is we have a very interesting thing going on. We
have two kinds of debate going on right now in opposition from those
who are major beneficiaries of the current system, the special interest
groups that have the benefit right now of seeing huge profit increases
as a result of this prescription drug bill. On the one hand, we are
seeing ads that say: This legislation will do nothing. Do not pass it;
it will not do anything. Then, on the other hand, the very same people
are saying: But it will cause seniors to not be able to get the choice
of medicines they want, it will cause veterans to see their medicine
costs go up, it will cost R&D and we won't be able to do research and
development into new prescription drugs anymore. I find it so
interesting that the same people are arguing both sides: It will not do
anything, and it will have all of these devastating effects.
  At the same time, we are seeing huge amounts of money, millions and
millions of dollars--for months, I have seen ads on TV and radio,
newspaper ads telling us these people do not want negotiation or that
it will not do anything, all paid for by the same people who benefit by
the current system. I might just say that just today, a full-page,
single-color ad running in the Washington Post on page A5 today, costs
about $135,000--this is today, this is yesterday. We have ad after ad
after ad being run and paid for by people who tell us this bill will
not do anything. It will not do anything, but yet they have spent
millions of dollars on TV, millions of dollars on the radio, in ads we

[[Page S4574]]

have seen, ads for our benefit, ads telling us people do not want
negotiation.
  I might add that in this ad which is running right now, where they
say people really do not want Medicare to negotiate, what they say in
the fine print is that, in fact, 89 percent oppose Government
negotiation if it could limit access to new prescription medicine--if
it could limit access to new prescription medicine. This bill does not
limit access to new prescription medicine--or old prescription
medicine, for that matter. That is not what we are talking about.
  In fact, what I find interesting, and the subtle part of this is, if
we negotiate for a better deal, they won't be able to do research
anymore. We know that right now the drug industry spends 2\1/2\ times
more on marketing and advertising than they do on research.
  I would suggest we can negotiate to get a little better price. And I
wonder how much $135,000 would buy in medicine for somebody today
instead of one ad? Let's cut down a little bit on the marketing and
advertising, and we won't have to worry about whether Medicare can
negotiate for the very best price.
  So I hope that tomorrow we are going to have a vote to proceed to
this very important public policy issue, this very important bill. I
hope we are going to, in fact, do what 87 percent of voters are saying
they want us to do--negotiate the very best price for prescription
drugs.
  I would ask my colleagues to vote to allow us to proceed to the bill.
We can continue to work together on exactly what the language should
look like, but the idea that you would stop it before we can even have
the debate would be extremely disturbing. People in this country do not
understand why it is that decisions are made too often for those who
happen to have the lobbyists here or the ads on TV or in the newspaper
and not enough for the folks who are working hard every day or are
retired on a fixed income trying to make ends meet.
  Tomorrow is a chance for us to show that those folks are not making
the decisions, that we are going to move forward on a bill which is
positive for seniors, which is going to give us an opportunity to open
the door to negotiating good prices and make a real difference for
people, a real difference for people whom the system is supposed to
help, the Medicare prescription drug benefit for our seniors, for
people on Medicare. They deserve the best price. Tomorrow, we will have
a chance to vote to go to that debate and work together to get a bill
that will do that. I hope we are going to vote to do that.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Alabama is recognized.


                                Tax Day

  Mr. SHELBY. Once again, today, tax time is upon us. It is April 17.
We know April 15 is the magic day, but it has been extended because of
when it fell. Today is the day everybody in America knows that the
Federal Government income taxes are due. If you are like me, you spent
way too much time completing your taxes this year.

  Our Tax Code and its accompanying regulations total tens of thousands
of pages which are complicated, confusing, and costly to comply with.
In fact, since we last had major reform in 1986 there have been more
than 14,000 changes to the Tax Code. Average taxpayers should not have
to pour over tax regulations for hours on end or pay a tax professional
to complete their tax documents.
  In the IRS' own estimation, the average time burden for all taxpayers
filing a 1040 is 30 hours. Unfortunately, what this means is that for
most people is that in addition to paying the Government every year,
they need to pay someone or buy software to tell them exactly how much
to pay their Government.
  Americans need a simple, common-sense solution. This is why I have
introduced S. 1040, the Tax Simplification Act.
  The Tax Simplification Act establishes a flat income tax of 17
percent on all income and places real spending limits on the Federal
Government. First, my proposal would replace our current
incomprehensible Tax Code with a flat rate of 17 percent on all
individuals' income beyond an exemption for the individual and any
dependents. To prevent the double-taxation of income, earnings from
savings would not be included as taxable income, resulting in a tax cut
for virtually all taxpayers and providing a strong incentive for people
to save. Increasing the savings rate in this country should be a
priority of this Congress and this bill will do that.
  As complicated as the individual tax system has proven, it pales in
comparison to the hoops U.S. businesses are required to jump through.
In preparation for 2005 taxes, businesses and nonprofits spent an
estimated 6.4 billion hours complying with the Federal Income Tax Code,
with an estimated compliance cost of over $265 billion. Without action,
that number is expected to grow to over $482 billion by 2015.
  What this means is that for every $5 the Government collects right
now, businesses are forced to spend another $1 to comply with the
countless rules and regulations that we, the Government, have created.
These additional costs are then passed on to the consumers, investors,
and employees. We need to overcome this notion that our corporate
income tax simply applies to some faceless boardroom. Corporations do
not pay taxes. People pay taxes. Corporations do not comply with our
tax laws. People do.
  Under my legislation, companies would pay the flat tax of 17 percent
rate on their income, simplifying the complicated calculations
businesses currently go through to determine their taxable income. S.
1040 simply defines income as the positive difference between revenue
and expenses. As the legislation is implemented, the rate of taxation
would be 19 percent in the first 2 years and then lowered to the
desired rate of 17 percent in the third year.
  Finally, this legislation would require a three-fifths majority in
Congress for any tax increase. This ensures that only in times of the
most need would the Government be able to take any more money out of
the hands of hard-working Americans. By enacting this legislation we
would institute a strong backstop against those that would seek to
continue the out-of-control growth of the Federal Government. And we
would open a new chapter of responsibility and accountability in our
revenue collection.
  Yes, the flat tax would revolutionize the way our Government
operates. Today, if a flat tax were in place, taxpayers would file a
return the size of a postcard. Rather than spending hours deciphering
convoluted IRS forms or resorting to professional tax assistance, the
flat tax would allow taxpayers to complete their taxes quickly and
easily.
  The time for significant reform of our Tax Code is now. The flat tax
would revolutionize the way our Government operates. The complexities
and inequities of the current tax system would end. They would be
replaced by a system that treats every taxpayer equally and represents
a massive reduction in the tax burden carried by hard-working
Americans.
  Only by treating every taxpayer equally can our Tax Code ever achieve
true fairness. Only when the shackles of our burdensome Tax Codes are
removed will we truly see what our great economy is capable of doing.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from Michigan is recognized.
  Mr. LEVIN. Mr. President, Mr. Isakson has a very brief statement,
perhaps 2 minutes. I wonder if he can be recognized for 2 minutes and
then Senator Nelson for 2 minutes and then I be recognized for 5
minutes. I ask unanimous consent.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The Senator from Georgia is recognized.


                          Honoring Ryan Clark

  Mr. ISAKSON. Mr. President, I ask to address the Senate as if in
morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. ISAKSON. Mr. President, I rise today to express my sympathy and I
know the sympathy of all of the Members of the Senate and the people of
the United States of America on the tragic losses yesterday at Virginia
Tech.
  I learned this morning that one of those first tragic losses was a
young gentleman by the name of Ryan Clark,

[[Page S4575]]

and I, from the floor of the Senate, send to Martinez, GA, my sympathy,
that of Senator Chambliss, and that of all Members of the Senate on the
tragic loss of Ryan.
  None of us can understand what happened yesterday, but all of us must
understand the profound tragedy and the loss of youth in its prime.
  Ryan Clark, 22 years old, a double major in English and biology, was
about to walk across the stage and graduate and then pursue a masters
and a Ph.D. in psychology. Ryan is survived not only by his mother
Letitie but by his brother Bryan. Bryan told us that his brother was
known best by his nickname on the campus, ``Stack.'' Stack, if you go
to the Web site of the Virginia Tech band, can be seen volunteering his
time in a food drive for the needy. In fact, just last December, in the
Georgia Dome at the Peach Bowl of 2006, one of the last times that Ryan
went back to Georgia, he performed with the Virginia Tech band at
halftime of that bowl game.
  This young man was a residential adviser, a member of the band, an
outstanding student, a proud son, and a proud brother. I am very proud
as a Georgian to have known of his accomplishments, and I send his
mother Letitie my prayers and my hopes that she will accept our
sympathy and endure the tragedy of the loss of her son Ryan.
  To the families of all of those professors, employees, and students
who were hurt yesterday in Blacksburg, VA, I extend my sympathy and my
deepest prayers that we will find reconciliations out of tragedy.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Florida is recognized.
  Mr. NELSON of Florida. Mr. President, our hearts go out to the
citizens of Virginia, to the university community, and to the families
and the loved ones of those in this tragedy. It goes without saying
that we will get to the bottom of this and then find out what is going
wrong in this country that our sense of morality has gone askew so that
a senseless set of murders such as this would occur.
  I am here to speak on behalf of this intelligence legislation on
which we are about to have a vote, cutting off debate so we can proceed
to finalize the bill. It is necessary that we do that. I had the
privilege of serving on the Intelligence Committee along with my
colleague, the Senator from Michigan, on his committee, the Armed
Services Committee, as well as the Senate Foreign Relations Committee.
There is so much going on that is at stake for this country that we
cannot in any way delay this Intelligence bill; it needs to be
considered; it needs to be amended, if that is the will of this body;
it needs to be passed, and we need to then get reconciled with the
House and get it to the President for his signature. There are too many
things that are super important to this country for us to do anything
other than protect the interests of this country through our
intelligence activities.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Michigan is recognized.
  Mr. LEVIN. Mr. President, the release of the 9/11 Commission Report
in July of 2004 fueled a debate about how our intelligence community
should be restructured to better respond to the post-9/11 threat.
  In response to problems identified by the 9/11 Commission, Congress
passed and the President signed into law the Intelligence Reform and
Terrorism Prevention Act of 2004. Most notably, that bill created the
Director of National Intelligence, empowering the DNI with budget power
and control over personnel in the intelligence community.
  The bill also created the National Counterterrorism Center, or NCTC,
with the authority to conduct strategic counterterrorism planning and
to assign roles and responsibilities for counterterrorism activities.
Passage of intelligence reform was a watershed moment in the drive to
better organize our Government to deal with the threat of terrorism.
  On December 8, 2004, the same day the Senate passed the Intelligence
reform bill, it passed the Intelligence Authorization Act for fiscal
year 2005. It is troubling that that day, December 8, 2004, was the
last day this body passed an Intelligence authorization bill, and it
underscores the importance of the Senate passing the bill before us.
Since passage of the Intelligence reform bill in 2004, we learned a
good deal about what additional changes to law might be needed to
improve our intelligence community functions. In addition, as we have
learned about such activities as the NSA's warrantless wiretapping
program, we have come to better appreciate the need for strong
congressional oversight of the intelligence community.
  As a matter of fact, the 9/11 Commission said the following in its
very lengthy and thoughtful report, ``Strengthen Congressional
Oversight of Intelligence and Homeland Security.'' That is the heading
of the section, and this is the one pungent sentence from that report
which I hope will cause a lot of people to rethink their opposition to
cloture on this bill:

       Of all of our recommendations, strengthening congressional
     oversight may be among the most difficult and important.

  Those words should have an impact on the vote that is coming up in
about 40 minutes.
  More than 30 years ago, the Senate passed S. Res. 400, establishing
the Select Committee on Intelligence, and charging that committee with
providing ``vigilant legislative oversight over the intelligence
activities of the United States to assure that such activities are in
conformity with the Constitution and laws of the United States.''
  The legislation before us today takes significant steps toward
reinvigorating our oversight responsibility. For example, effective
oversight depends on Members of Congress having timely access to
intelligence information. Unfortunately, too often that is not the
case, as requests from Congress for intelligence information are
stonewalled and slow walked. Section 108 of the bill before us requires
the intelligence community to provide, upon request from the chairman
or vice chairman of the Senate Intelligence Committee or chairman or
ranking member of the House Intelligence Committee, timely access to
existing intelligence assessments, reports, estimates, legal opinions,
or other intelligence information.
  The bill before us also advances Congress's oversight of particular
matters. For example, section 313 requires the Director of National
Intelligence to submit a classified report on any clandestine detention
facilities operated by the U.S. Government. This public law requirement
reflects the Intelligence Committee's determination to undertake
serious oversight of any intelligence community detention and
interrogation practices. The bill before us also establishes within the
Office of the Director of National Intelligence an inspector general of
the intelligence community. That is a major reform. It is highly
important, and it is long overdue. The creation of an inspector general
of the intelligence community will strengthen accountability by
permitting independent examinations of problems, abuses, or
deficiencies.
  We should not let another year go by without an Intelligence
authorization bill. We cannot defeat the threats this Nation faces
without the strongest and most effective intelligence community which,
in turn, requires strong oversight.
  I yield the floor and suggest the absence of quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. DORGAN. Mr. President, I ask unanimous consent that the order for
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Salazar). Without objection, it is so
ordered.


                                 Trade

  Mr. DORGAN. Mr. President, later this week there will be a group of
us in the Senate holding a meeting on trade issues and talking about
what our response will be to the request by President Bush to extend
what they call trade promotion authority. Trade promotion authority is
a slogan that was used to replace fast track because fast track
apparently became some sort of a pejorative term, at least in the minds
of some. So they came up with the term ``trade promotion authority.''
It is like labeling things healthy forests or clear skies, trade
promotion authority. What it means is fast track. The Congress, by
Constitution, has the

[[Page S4576]]

right to be engaged in foreign commerce. That is where it is described,
in the Constitution. It is not described as part of executive branch
responsibilities. It is described as part of the responsibilities of
Congress to be involved in the issue of trade and foreign commerce.
  What has happened over some years is the Congress has given the
President authority to negotiate trade agreements in secret behind
closed doors, bring the trade agreements to this Congress, and we agree
we will put on a straitjacket and not be allowed to offer any
amendments, and it will be considered as a trade agreement that we have
negotiated with some other country under expedited procedures. The
Congress itself has decided to put itself in a straitjacket with
something called fast track or trade promotion authority. I did not
support that. I didn't support it for President Clinton. I don't
support it for President Bush. President Bush has had fast track trade
promotion authority now for some while. It is about to expire on June
30. He is asking that it be extended. As for me, I will not support
extending it. I hope to be involved with a group of Senators who
similarly will describe the danger to this country's economic future
that would be entailed by supporting the extension of fast track or
trade promotion authority.
  Let me describe what the danger is. Some wish to ignore all the
evidence that exists with respect to trade. The fact is, in the past
year our trade deficit in 1 year was $830 billion. What does that
number mean? It probably doesn't mean much to most people. It means
every single day we purchase from foreign countries $2 billion more
than we are able to sell to foreign countries. Every single day we put
$2 billion worth of IOUs in the hands of another country. A substantial
portion of those IOUs is now possessed by China, Japan, and others.
About $1 billion is owed from the citizens of this country to China and
Japan.
  In addition to the imbalance of $2 billion a day importing more than
we export or consume--saying it another way, about 6 percent more than
we produce--we are seeing American jobs being shipped overseas. We have
actually some cheerleaders for that proposition. We have some people in
this country who say isn't that great. Isn't that a wonderful situation
where we can actually move American jobs abroad. None of those people
will ever lose their jobs. They will write books and make laws, but
they will never lose their jobs. It is the folks who shower after work
who lose their jobs; the people who go to the plant, the people on the
assembly line; the people who find their job is going elsewhere because
there is someone else in the world, a billion to a billion and a half
people willing to work for 20 or 30 cents an hour. They will work with
no health care benefits and no retirement benefits and in some cases
for 20 cents an hour. If they decide they are being cheated out of
wages and try to organize workers, they will be sent to prison.
  That is the new economy? That is the new circumstance of the global
economy? That is free trade? That is good for our country? I don't
think so.
  I have spoken at length about this issue. I am for trade and plenty
of it. Sign me up. I support trade. I like trade. I insist that it be
fair to this country. I am flat out tired, through fast track, of
having trade agreements being negotiated in secret overseas someplace
behind closed doors by U.S. negotiators who forget who they are working
for. They bring them to this Chamber under expedited authority called
fast track and there is the prohibition of any amendment being offered
to change what is obviously wrong with the agreement. Then it runs
through here like a hot knife through butter. We have had NAFTA and
CAFTA and U.S.-Canada. We have had all these trade agreements, at the
end of which we have the largest trade deficit in the history of
humankind. It is not even close. Every time we pass a new trade
agreement, we have a larger deficit.
  The people who come up with these concoctions called free trade say:
Isn't this wonderful? No, it is not. Would they say it was wonderful if
they were losing their jobs? They wouldn't. But they are not the ones
losing their jobs.
  Alan Blinder, a mainstream economist, former vice chairman of the
Federal Reserve, said this about the outsourcing of American jobs:
There are 40 million American jobs subject to outsourcing. Not all of
them will leave this country, but even those that remain will have
downward pressure on their income because there is someone else
somewhere else in the world willing to work for pennies.
  So is that the new global economy? Is that the flat world? Mr.
Friedman wrote the book ``The World is Flat.'' I know better than that;
so does he. The world is not flat. In the chapter where he looks at
Bangalore, India and says, isn't this wonderful, all these jobs in
India, no, it is not wonderful.
  Is this the kind of new economy we signed up for? Have we forgotten
the lessons, have we forgotten what it took to get to this kind of
standard of living?
  James Fyler was shot 54 times. It was said once he died of lead
poisoning. I guess when you are shot 54 times--he was actually killed
in Ludlow, CO, nearly 90 years ago. He was killed because he thought
people who went into the coal mines to mine for coal had a right to a
fair wage and a right to work in a safe workplace.
  Move forward a century from James Fyler, from people who gave their
lives to lift the standards in this country, to expand the middle
class, to provide for good jobs, demand a fair wage, demand decent
benefits, and then ask yourself if, after a century, when we expanded
the middle class in this country--with good jobs that pay well--have we
now decided there is a new strategy, a bankrupt strategy, which is so-
called free trade, which is unfair to the American worker, because it
is a race to the bottom, saying to companies: If you can find somebody
who will work for 20 cents an hour, have them make the Huffy bicycles,
have them make the Radio Flyer little red wagons, have them make the
Fig Newtons, have them make the Hanes underwear, and have them make the
Levi's. They are all gone because they went in search of cheap labor.
All those American jobs are gone. Now, I ask you, is that a road to a
better future for American workers?
  We, actually, in this Chamber, mind you--not me but a majority--have
supported one of the most pernicious provisions I have ever seen, a
provision that says: Do you know what, if you want to close your
manufacturing plant and fire your workers and move the jobs to China,
we intend to give you a big fat tax break for doing it. That is
unbelievable. I have tried four times to change that in the Senate and
have come up short in the vote four straight times. But I guarantee you
this: One day, there will be enough clear thinking in this Congress to
decide we ought to stop subsidizing the export of American jobs.
  So I started by saying we have an $830 billion trade deficit. That
relates to the export of jobs and the purchase every day of $2 billion
more than we are able to ship abroad. We are going to have to repay
that someday. You can make a case on the budget deficit that is money
which we owe to ourselves. You cannot make that case with the trade
deficit. That will be repaid someday with a lower standard of living in
this country.
  That is why we ought to, as a country, begin worrying about and
thinking about this new strategy. I am for a fair trade strategy. I am
for trade, and plenty of it, but it must be fair to this country. I am
sick and tired of seeing trade agreements that pull the rug out from
under our workers and pull the rug out from under our standards. I want
to lift people up, not press people down. I do not believe in a future
in which 40 million to 50 million additional workers are subject to
outsourcing. But if they are not outsourced, they, nonetheless, can
come home and say: Honey, I didn't lose my job today, but they are
going to pay me less.
  One final point. I spoke here about a week ago about Circuit City. I
do not know much about that company. I do know this: They announced
they were going to fire 3,400 people. Because they were bad workers?
Not a bit. No. They said: We are going to fire them because we want to
rehire other workers to whom we can pay less money. They were making, I
think, slightly above $11 an hour. They wanted to fire 3,400 workers so
they could hire cheaper workers, less expensive workers.

[[Page S4577]]

  I do not know. If you go into a store and ask somebody where the
camera counter is, are you going to find a worker who knows? Maybe you
have a worker you could pay less money to, but do these companies
forget that their company is their workers, the company is represented
by their workforce, that is their brand?
  We are headed in the wrong direction. There is no social program in
this country as important as a good job that pays well. Yet the whole
notion here of the companies that want to produce in China and ship
here and run their income through the Cayman Islands to avoid paying
taxes to this country--the whole notion is, this is a new day, it is a
new economy. Don't you understand it? Free trade. That is not fair
trade, where I come from.
  My colleague, Senator Brown, has worked on this issue for a long
while in the U.S. House, and now in the U.S. Senate. I really
appreciate seeing new voices come to the Senate demanding we move
toward fair trade relationships. We can compete, but the competition
has to be fair. That has not been the case with any of these trade
agreements.
  Mr. President, I am happy to yield the floor so my colleague, Senator
Brown, can be recognized.
  The PRESIDING OFFICER. The Senator from Ohio.
  Mr. BROWN. Mr. President, I ask unanimous consent to speak as in
morning business for only 5 minutes or so.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BROWN. Mr. President, I wish to echo much of what Senator Dorgan
has said and thank him for his leadership on trade issues. I came to
the House of Representatives in 1993, elected in 1992. Our trade
deficit was fairly large in those days, we thought: $38 billion. Today,
as the Senator said, depending on whether you count services in
addition to manufactured products, it exceeds $800 billion.
  Interestingly, if you add the aggregate trade deficit from 1992
through 2006--that means the amount of imports we have brought into our
country versus the amount of exports we have going out of our country--
we have had a $4 trillion trade deficit in the aggregate. That is $4
trillion of wealth having gone out of our country.
  To understand what $4 trillion is, because nobody can really
understand that, if you spent $1,000 every second of every minute of
every hour of every day--if you spent $1,000 of every second of every
minute of every hour of every day--to spend $4 trillion, it would take
you 135 years. That is the kind of wealth we have seen go out of our
country. But to understand that in more human terms, let me just share
a story, if I could, for a moment.
  About 7 or 8 years ago, after the North American Free Trade
Agreement, unfortunately, passed the House and Senate--Senator Dorgan
voted against it in the Senate; I voted against it in the House, a
dozen or so years ago--I flew to McAllen, TX, at my own expense and
rented a car and went across the border with a couple of friends and
visited Reynosa, Mexico, to see what NAFTA had brought to the border
areas and to the country of Mexico--at least that part of Mexico.

  I went to the home of two General Electric workers--General Electric,
Mexico. Both made about 90 cents an hour. Both worked pretty much 60
hours a week, 10 hours a day, 6 days a week. They lived in a home maybe
20 feet by 15 feet, with no running water, no electricity. They had
dirt floors. When it rained hard, the floors turned to mud.
  When you went outside their home--these are people who worked 60
hours a week each for an American company, a Mexican subsidiary of an
American company, 3 miles from the United States of America in Reynosa,
Mexico--if you went outside their home, there was a ditch behind their
house, maybe 4 feet wide, with 2 by 4s across the ditch. Children would
be playing in this ditch with human waste, industrial waste--who knows
what was going through it. The American Medical Association said the
Mexican-U.S. border is the most toxic place in the Western Hemisphere.
And these children were playing in whatever this human and industrial
effluent waste was in this neighborhood.
  As you walked through this neighborhood, you could tell where the
workers worked by the construction materials from which their homes
were built--packing materials and cardboard boxes from the companies
for which they worked or from the suppliers to the companies for which
they worked. They used that as roofs and walls to build their shacks.
  Again, these are people who hold full-time jobs for General Electric,
Mexico, 3 miles from the United States of America.
  Then, nearby, within a mile, I visited an auto plant--an auto plant
that looked just like an auto plant in Lordstown, OH, Avon Lake, OH,
with modern technology, even more modern than what we have often in
auto plants in Ohio, unfortunately. They had clean floors and hard-
working workers who were very productive.
  There was one difference between the Mexican auto plant and the auto
plant you would see in Cleveland. The difference was there was no
parking lot in the Mexican auto plant because, simply put, the workers
have not shared in the wealth they produce for their company.
  You could go halfway around the world. You could go to a Motorola
plant in Malaysia, and the workers are not paid enough to buy the
phones they make. You could come back halfway around the world to Costa
Rica to a Disney plant, and the workers do not make enough money to buy
the toys they make for their children. You could go back halfway around
the world to China, and the workers at the Nike plant are not paid
enough to buy the shoes they make. The difference in their economy and
ours, and these trading partners where we have huge trade deficits, is
the workers are not sharing in the wealth they create.
  But that is starting to happen in the United States. In the last 30
years, the wealthiest 20 percent in our country, the wealthiest 5
percent, the wealthiest 1 percent are seeing their wealth go up while
wages are stagnant for the rest of the country. That is why the middle
class is shrinking, because people who are working hard and playing by
the rules simply are not sharing in the wealth they create.
  They are more productive than they have ever been. We are setting
productivity records in this country. Yet wages are stagnant or worse.
Companies are outsourcing, companies are going overseas. Senator Dorgan
said those same companies are getting tax breaks and all kinds of
advantages, as this body and, across the Capitol, the House of
Representatives continue to pass these job-killing trade agreements
that outsource our jobs, that betray our middle class, that mean
layoffs of police and fire and teachers and people who make our
communities healthier, as families are hurt by these layoffs or as
families are hurt by stagnant wages.
  That is why we need a very different trade policy--whether it is with
Japan, whether it is with Mexico--a trade policy that lifts up the
middle class and helps to strengthen the middle class, a trade policy
that will help workers in the developing world instead of this trade
policy that outsources our jobs, betrays our communities, and hurts our
families.
  Mr. DORGAN. Mr. President, will the Senator from Ohio yield for a
question?
  Mr. BROWN. Yes.
  Mr. DORGAN. Mr. President, the Senator from Ohio has described
automobiles as one part of his discussion. I wonder if the Senator from
Ohio knows, for example, with respect to South Korea, we imported about
700,000 automobiles from South Korea in the last year. We were able to
export about 4,000 American cars to South Korea.
  Now, why the imbalance? Mr. President, 99 percent of the cars driven
on the streets of South Korea are made in South Korea. That is the way
they want it. Once in a great while, we have a little burst. The Dodge
Dakota pickup--all of a sudden, it looked like they were going to sell
some Dodge Dakota pickups in South Korea. Just like that, the
Government shut that down. Oh, they do it very subtlely, but they know
what they are doing--just like that.

  China is a good example. We did a trade agreement with China. China
is now creating an automobile export market. They want to be a big
automobile exporter and intend to export to this country. Here is what
we said to China, a country with which we have a giant trade deficit:
When you ship your Chinese cars to the United States, we

[[Page S4578]]

will impose a 2.5-percent tariff on your cars. And we agree that for
any U.S. automobiles we would sell in China, you may impose a 25-
percent tariff. So to a country with which we have a giant trade
deficit--we now have a $230 billion trade deficit with China--we have
said: It is OK for you to impose a tariff that is 10 times higher than
we would impose on your cars.
  That is unbelievably ignorant, in my judgment, ignorant of our own
economic interests.
  If I may make one additional point. In Ohio, they used to make Huffy
bicycles. I have spoken about that at some length on this floor. They
paid people $11 an hour to make Huffy bicycles. Huffy bicycles are 20
percent of the American bicycle market. You can buy them at Wal-Mart,
Kmart, Sears. The people at the plant in Ohio loved their jobs. They
made the Huffy bicycles for over a century. They all got fired. They
all lost their jobs. You can still buy a Huffy bicycle. They are all
made in China.
  But on the last day of work, after they were fired, these Huffy
bicycle workers, as they drove out of the parking lot of the plant, all
left a pair of empty shoes where their car used to sit in the parking
lot. It was their way of saying to this company: You can ship our jobs
overseas, but, by God, you are not going to fill our shoes. It was a
poignant way for workers to say: This job mattered to me. We worked
here for a century making bicycles as American workers. And now it is
gone.
  It is unbelievable, when you hear these stories and see what the
consequences are of American companies that have decided: Do you know
what, the new economy says, let's produce where we can pay people 30
cents an hour. Incidentally, that is how much workers get who are now
producing Huffy bicycles. They are paid 30 cents an hour. They work 7
days a week, 12 to 14 hours a day. That is what the Ohio workers were
told. You cannot compete against that, so you lose.
  In my judgment, our country, this Senate--Senator Brown and I and
others--has to begin standing up for the economic interests of our
country and our workers. If we do not, we will surely see a shrinking
of the middle class and a dramatic impact on the economy and future
growth of this country. That is why this is such an important issue.
  Again, let me just say how impressed I am with not only Senator Brown
but especially Senator Brown and some others who have joined us in the
Senate, who will be very strong voices on behalf of a sane, thoughtful,
sensible protrade policy that is pro-fair trade and stands up for this
country's economic interests.
  I thank the Senator from Ohio for yielding to me.
  Mr. BROWN. Mr. President, I reemphasize what Senator Dorgan says so
often; that is, we want trade--plenty of it--we just want it with
different rules. We want fair trade. Plenty of countries around the
world practice trade, as South Korea does, for their own national
interests. We practice trade according to some economics textbooks some
days, and other days we practice trade according to what is in the
interests of these large corporations that outsource. But these
companies--again I use the word ``betray''--they betray our families,
they betray our communities when they do what Huffy Bicycles did
because those jobs were good-paying union jobs in Shelby County OH, in
western Ohio. As Senator Dorgan said, they have been there for hundreds
of years.

  In the far corner of northwest Ohio there is a company called the
Ohio Art Company. The Ohio Art Company makes something that almost
everyone who grew up in this country knows about: they make the Etch A
Sketch. Some years ago, Wal-Mart went to the Ohio Art Company and said:
We want to sell Etch A Sketch in our stores for under $10, and the Ohio
Art Company couldn't make them for that price, so they pretty much
moved most or all of their production to China.
  It is that kind of betrayal by these corporations, with the
concurrence of our Government, because our Government writes the rules
for these trade agreements--our Government has consistently practiced
trade and allowed our largest companies to practice trade not
according--unlike other countries that don't practice it according to
our national interests, and it is time that we do.
  Mr. DORGAN. Mr. President, I would like to ask the Senator to yield
for one more point. The Governor of Pennsylvania, Governor Rendell,
tried very hard to keep a company in Pennsylvania, Pennsylvania House
Furniture. They make fine furniture with Pennsylvania wood, a very
special kind of Pennsylvania wood. They make top-of-the-line furniture
and did for a long time--I think for over a century as well. They were
purchased by La-Z-Boy, and La-Z-Boy decided that Pennsylvania House
Furniture would be outsourced to China. At that point, Governor Rendell
and folks in Pennsylvania got involved to try to save Pennsylvania
House Furniture, but they couldn't do it. The jobs all went to China.
Incidentally, they now ship the wood from Pennsylvania to China, put
the furniture together, and then ship it back to be sold as
Pennsylvania House Furniture.
  There is somebody in this country who has a piece of furniture that
they don't understand the value of. The last day at work at this plant
where they had made furniture, these craftsmen, who made top-end, top-
of-the-line furniture, these craftsmen, the last day of work, on the
last piece of furniture that came off the assembly line in
Pennsylvania, turned it over and they all signed it. Someone has a
piece of furniture with the signatures of all the craftsmen at that
plant who, on their last day at work, decided they wanted to sign as a
note of pride in the work they had just completed.
  Then the jobs were gone, all gone to China, because the Pennsylvania
workers could not compete with those who would work for 25 cents, 30
cents, 35 cents an hour. But they shouldn't have to. That is the point
of our discussion about fair trade.
  Mr. BROWN. Mr. President, in the next decade our Nation needs to--our
Government needs to come up with a manufacturing policy. If our trade
laws and our tax laws continue to encourage outsourcing, continue to
contribute to this erosion of the middle class, we will be a country
with less and less manufacturing, fewer and fewer manufacturing jobs,
less and less of an ability to protect our national interests. It is a
question of national security, to be able to have a strong
manufacturing component to our economy, and it is a question of
economic security for families in places such as Dayton, in places such
as Steubenville and Painesville and Cleveland, OH, places where people
have built middle-class lifestyles, bought their homes, sent their
children to college, worked for a decent retirement because they have
worked hard and played by the rules and manufactured goods that people
in our country use.
  I think it is important as we move forward with Senator Dorgan and
people like Senator Whitehouse from Rhode Island, who is also very
interested in this, that we move forward on developing this
manufacturing policy on trade, on tax law, and on helping particularly
our small manufacturers compete in this global economy.
  I thank the President, and I yield the floor.
  Mr. WHITEHOUSE. Mr. President, we have seen a considerable number of
the members of the Intelligence Committee come up to this floor this
afternoon, and that is because we have before us S. 372, legislation
authorizing funding for our intelligence and national security
services. But rather than work with Congress to ensure agencies such as
the CIA, FBI, NSA, and many others receive the funding they need to
meet their missions and keep Americans safe, the Bush administration
and some in the Republican minority are stonewalling this legislation.
  As the newest member of the Select Committee on Intelligence, I am
deeply troubled to see this legislation stalled at the expense of the
security of our Nation. My father was a Foreign Service officer, and
through his eyes I have seen the power of American diplomatic and
intelligence efforts to do both great good in the world and great harm.
  In their misuse and in the politicization of America's intelligence
apparatus, President Bush and his administration have done great harm
to America's standing in the world and our security at home. Now we
face the

[[Page S4579]]

bleak prospect that for the third year in a row the Senate may not pass
an intelligence authorization bill. This should give every concerned
American pause.
  This measure will fund our intelligence community agencies, fight
terrorism, strengthen our capabilities to collect, analyze, and act on
intelligence, and, most importantly, expand transparency and oversight
of our intelligence community. It is a reflection of diligent,
thorough, and tenacious work by our committee chairman, Jay
Rockefeller, the distinguished Senator from West Virginia whom I see
with me on the floor this afternoon, along with his Republican
counterpart, Vice Chairman Bond. I was hopeful that at least we could
end the partisan logjam that has crippled the Senate Intelligence
Committee for the last several years. I have been pleased with the
thoughtful and serious tone of the committee's work on both sides of
the aisle. Yet now something has suddenly changed, and the Republican
minority has maneuvered to block this legislation from becoming law.
Now it appears the White House has intervened, has called in chits, and
twisted arms to stop a bill on which Chairman Rockefeller and Vice
Chairman Bond have worked so long and hard.

  We understand this administration does not want congressional
oversight. They don't want oversight on their inept response to
Hurricane Katrina. They don't want oversight on the unprecedented purge
of U.S. attorneys. They don't want oversight on the debacle going on in
Iraq. They don't want oversight on intelligence either. But no
administration in recent memory has more badly needed congressional
oversight, and in no area has that need been more plainly demonstrated
than in the intelligence function of our Government.
  This is the administration that failed to ensure adequate oversight
of national security letters under the PATRIOT Act. This is the
administration that conducted its own secret wiretap program to monitor
conversations, including the conversations of U.S. citizens. This is
the administration that established its own secret prison network
offshore to hold terrorism suspects off the record of this country's
legitimate judicial institutions. This is the administration that
cherry-picked its intelligence to justify the claim of Iraqi weapons of
mass destruction. That abuse of intelligence alone cost our country
thousands of lives, billions of dollars, and damage to our relations
with allies around the world that will linger for many years.
  One can see why this administration would resist congressional
oversight, but Congress is obligated to oversee our country's national
security and intelligence-gathering services. That is our duty under
the Constitution. This duty is particularly important with the covert
intelligence agencies because their work is not subject to public
inquiry. These are not organizations that work in the bright light of
day but in the deep dark of the secrecy they require to be effective.
So meaningful and appropriate congressional oversight is our only
safeguard.
  This administration welcomes oversight less than almost any I can
think of, but no administration in recent memory has needed it more.
Perhaps the Nixon administration, but like the Nixon administration,
this administration's resistance to congressional oversight is a
measure of how badly that oversight is needed. Unfortunately, for too
many years this Congress has conducted oversight by the principle,
``out of sight, out of mind'' or maybe ``see no evil, hear no evil,
speak no evil.'' You don't have to look far to see how badly this
strategy has failed.
  But there is a new team in town and a new leadership of this Congress
that takes these responsibilities seriously. It is an abdication of our
responsibility under the Constitution, and it is irresponsible with
respect to the security of our Nation to let this legislation languish.
  I urge my colleagues in the minority to reconsider their actions, to
return to this floor in good faith, to continue the good work that
Chairman Rockefeller and Vice Chairman Bond have so nobly accomplished,
and to give our intelligence agencies the funding they need to keep us
safe.
  I yield the floor.
  Mr. ROCKEFELLER. Mr. President, first of all, I want to truly
congratulate the Senator from Rhode Island for his statement which was
delivered forcefully, intelligently, accurately, and with great
conviction which comes from his extremely broad experience in life.
  For this Senator's part, my view is this: Unless the Senate invokes
cloture and moves to finish action on the fiscal year 2007
authorization bill, we have failed for the third time, or as Senator
Levin put it, since 2004 when we last passed it, to pass important
national security legislation. Everything that the American people are
worried about, everything that comes out of events like yesterday in
Blacksburg, VA--and by the way, I spent a good deal of time on the
phone talking to students I know down there--everything points to a
massive, tectonic change in the way we are carrying on.
  I speak very proudly of a PBS series which is looking at this whole
subject. Monday, Tuesday, Wednesday, Thursday, and Friday, 12
consecutive hours of looking at what Islam is, what it isn't; what
jihad is, what it isn't; and how we came to this point. It is done from
all points of view, usually without any journalists, just soldiers
talking. It is brilliant, and I recommend it to my colleagues.
  We tried last week to move the Intelligence authorization bill, and
we were prevented from doing so due to objection from some of our
Republican colleagues. When cloture on the motion to proceed was passed
last Thursday, the vote was 94 to 3. That is not just to drop off a
number, that is a significant expression of public will in the Senate.
The Senate was again prevented from moving to the bill for the purpose
of debate and amendment by a continued Republican objection, forced 30
hours to run on the motion to proceed. As a result, we have wasted 2
days.

  As my distinguished and good friend Senator Bond said, we wasted 2
days when we could have considered and disposed of many amendments,
which we were prepared to do.
  Vice Chairman Bond and I have been working together, the two of us,
to clear and pass amendments even this day, and have done so, a goodly
number of very important ones, because we are determined that this
should work. However, many of those 42 amendments filed are extraneous,
and they are nonrelevant. We have to pay attention to those things that
are outside the jurisdiction of the Senate Intelligence Committee and
the purpose of the authorization bill so they don't fall, but we won't
be able to get to those.
  So I would just conclude this way. Oversight of the activities of the
U.S. intelligence community is a necessary and essential duty of this
body. It is a duty which Vice Chairman Bond and I take extremely
seriously. He is very aggressive about it and cares a great deal about
it. I do, too. I think it defines the integrity of the process with
which we protect our Nation and the people who protect our Nation,
covertly, overtly, as the Senator from Rhode Island talked about.
  So it is our constitutional duty. I don't like to be in dereliction
of my constitutional duty at any particular time. I can't think of any
time that is more important to me not to do so than right now.
  In addition, I fear that it sends a disturbing message to the
clandestine collectors and the intelligence analysts of the
intelligence community who actually watch us and pay a lot more
attention to us, particularly here in Washington, and read our tea
leaves and take their signals about where they stand on our priority
list. I want them to stand at the very top. I think the vice chairman
wants them to stand at the very top. If we do not consider them a
legislative priority, then I am saddened by that.
  I call upon my colleagues to set aside politics and vote for cloture
and final passage of this intelligence authorization bill that has
languished in legislative limbo for more years than I am happily
willing to admit.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Missouri is recognized.
  Mr. BOND. Mr. President, I regret we have come to an impasse. The
chairman and I and the members of the committee have worked very hard
to get a bill that is getting much better. I am very sorry that we were
not allowed to

[[Page S4580]]

vote on amendments this afternoon and to continue with our efforts to
move this bill forward. The leaders are responsible on both sides for
running this body, and we are in a position now where it appears to the
minority that amendments will not--could be precluded under that
circumstance. I am afraid there will not be the support for cloture. I
regret that we have worked so long and hard and apparently will not be
able to continue with this bill. I hope to do so at a later time.
  I thank my colleagues and I yield the floor.
  The PRESIDING OFFICER. Under the previous order, the motion to
proceed to the motion to reconsider is agreed to.


                             cloture motion

  The PRESIDING OFFICER. Under the previous order and pursuant to rule
XXII, the clerk will report the motion to invoke cloture.
  The bill clerk read as follows:

                             Cloture Motion

       We, the undersigned Senators, in accordance with the
     provisions of rule XXII of the Standing Rules of the Senate,
     hereby move to bring to a close debate on Calendar No. 20, S.
     372, the Intelligence Authorization bill of 2007.
         Harry Reid, Chuck Schumer, Russell D. Feingold, Jay
           Rockefeller, Evan Bayh, Patty Murray, Dick Durbin, Jeff
           Bingaman, Robert Menendez, B.A. Mikulski, Dianne
           Feinstein, Bill Nelson, E. Benjamin Nelson, S.
           Whitehouse, Byron L. Dorgan, Blanche L. Lincoln, Ron
           Wyden.

  The PRESIDING OFFICER. By unanimous consent, the mandatory quorum
call has been waived.
  The question is, Is it the sense of the Senate that debate on S. 372,
a bill to authorize appropriations through fiscal year 2007 for the
intelligence and intelligence-related activities of the United States
Government, the Intelligence Community Management Account, and the
Central Intelligence Agency Retirement and Disability System, and for
other purposes, shall be brought to a close?
  The yeas and nays are mandatory under the rule.
  The clerk will call the roll.
  The bill clerk called the roll.
  Mr. DURBIN. I announce that the Senator from Delaware (Mr. Biden),
the Senator from South Dakota (Mr. Johnson), and the Senator from
Illinois (Mr. Obama) are necessarily absent.
  Mr. LOTT. The following Senators are necessarily absent: the Senator
from Kansas (Mr. Brownback) and the Senator from Arizona (Mr. McCain).
  The PRESIDING OFFICER. Are there any other Senators in the Chamber
desiring to vote?
  The yeas and nays resulted--yeas 50, nays 45, as follows:

                      [Rollcall Vote No. 131 Leg.]

                                YEAS--50

     Akaka
     Baucus
     Bayh
     Bingaman
     Boxer
     Brown
     Byrd
     Cantwell
     Cardin
     Carper
     Casey
     Clinton
     Conrad
     Dodd
     Dorgan
     Durbin
     Feingold
     Feinstein
     Hagel
     Harkin
     Inouye
     Kennedy
     Kerry
     Klobuchar
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     McCaskill
     Menendez
     Mikulski
     Murray
     Nelson (FL)
     Nelson (NE)
     Pryor
     Reed
     Reid
     Rockefeller
     Salazar
     Sanders
     Schumer
     Snowe
     Stabenow
     Tester
     Webb
     Whitehouse
     Wyden

                                NAYS--45

     Alexander
     Allard
     Bennett
     Bond
     Bunning
     Burr
     Chambliss
     Coburn
     Cochran
     Coleman
     Collins
     Corker
     Cornyn
     Craig
     Crapo
     DeMint
     Dole
     Domenici
     Ensign
     Enzi
     Graham
     Grassley
     Gregg
     Hatch
     Hutchison
     Inhofe
     Isakson
     Kyl
     Lott
     Lugar
     Martinez
     McConnell
     Murkowski
     Roberts
     Sessions
     Shelby
     Smith
     Specter
     Stevens
     Sununu
     Thomas
     Thune
     Vitter
     Voinovich
     Warner

                             NOT VOTING--5

     Biden
     Brownback
     Johnson
     McCain
     Obama
  The PRESIDING OFFICER. On this vote, the yeas are 50, the nays are
45. Three-fifths of the Senators duly chosen and sworn not having voted
in the affirmative, the motion is rejected.
  Mr. FEINGOLD. Mr. President, I am deeply disappointed and concerned
about the continuing Republican filibuster of the fiscal year 2007
Intelligence authorization bill. This bill is critical for our national
security. It supports the intelligence community while ensuring that
Congress can conduct necessary oversight of our intelligence
activities. Failure to pass this legislation would undermine the men
and women of our intelligence community who look to Congress not only
for funding but for policy guidance and legal clarity. It also sends a
terrible signal to the American people, that despite repeated abuses by
this administration from warrantless wiretapping to National Security
Letters, Senate Republicans have chosen to shield the administration
from congressional scrutiny and oversight. Unchecked executive
authority is contrary to our constitutional system. And the American
people understand well what the 9/11 Commission stressed--that strong
congressional oversight is an essential part of defending and
protecting America.
  There are a number of provisions of the bill that I view as
particularly important. Besides authorizing the intelligence programs
that help keep us safe, the bill improves congressional oversight of
the intelligence community and advances the critical work of
intelligence reform. The National Security Act requires that the
congressional intelligence committees be kept fully and currently
informed of all intelligence activities. The administration failed to
comply with this law with regard to its illegal warrantless wiretapping
program. I am pleased, therefore, that this bill limits the ability of
the executive branch to deny information to the full membership of the
Intelligence Committee. I am also pleased that the classified annex to
the bill includes my amendment calling on the administration to work
with the committee to ensure adequate oversight of the program, which
has not yet occurred.
  With regard to intelligence reform, the bill establishes, within the
Office of the Director of National Intelligence, an inspector general
of the intelligence community, which will strengthen accountability
across the community. The bill also requires the declassification of
the aggregate budget for all intelligence activities. This longstanding
intelligence reform goal, which was recommended by the 9/11 Commission,
will allow for basic budget transparency and a level of accountability
without damaging our national security.
  The bill includes an amendment I offered to the classified annex with
Senator Rockefeller calling for more intelligence resources to be
directed toward Africa. The continent presents a wide range of threats,
such as terrorist havens and the transnational movements of terrorist
organizations, while corruption, authoritarianism and poverty allow
these conditions to fester. In order to bolster our national security,
we need greater information and understanding of these threats. Of
particular concern is Somalia, where the committee encouraged the
intelligence community to work with other agencies of the U.S.
Government on a comprehensive strategic plan for stability.
Unfortunately, since the amendment was originally accepted by the
committee in May 2006, the situation in the Horn of Africa has only
deteriorated and the overall U.S. Government strategy for addressing
the crisis remains sorely inadequate.
  Finally, I am pleased that, in response to the concerns of Senator
Wyden and myself, a provision creating a new exemption to the Privacy
Act has been removed. Widespread abuses involving National Security
Letters recently uncovered by the Department of Justice inspector
general only underscore why Congress must conduct vigorous oversight of
how current authorities are being used before providing new ones.
  I again express my disappointment that the bill is being filibustered
and hope that the bill will soon be passed into law.
  Mr. KYL. Mr. President, I rise to talk to my colleagues about my
amendment No. 866 to protect the classified information handled by
Congress.
  Having served on the Intelligence Committee for 8 years, no one needs
to tell me how important it is for Congress to have the information it
needs to perform oversight of the intelligence community.
  However, we must be mindful that much of this information could do
great damage to our national security.

[[Page S4581]]

This bill includes what I believe are misguided provisions related to
clandestine prisons, the Detainee Treatment Act, and the enormous
expansion of access to highly sensitive national security information.
  The bill would declassify information about the intelligence budget,
dramatically expand the number of members and staff with access to the
most sensitive national security information our government holds, and
provide details of the interrogation techniques used by our military
and intelligence community.
  Can anyone imagine what would happen if al-Qaida became privy to the
interrogation techniques our military and intelligence community use?
Does anyone think al-Qaida wouldn't adapt and train its terrorists
accordingly?
  I believe disseminating this information is a mistake. But, if we are
going to disseminate it, we must put in place a mechanism to ensure
this sensitive information does not get into the hands of our enemies.
And we must give pause to those who would use this information to
conduct their own personal foreign policies, as has been seen in the
systematic use of leaks of classified information in recent years.
  My amendment will ensure this information is treated as it should be
by imposing a 10-year criminal penalty on those Members and staff who
leak our national security secrets.
  I urge adoption of the amendment.


                                Medicare

  Mr. CORNYN. Mr. President, I rise today to discuss the Medicare
prescription drug program that Congress passed a little over 3 years
ago with a bipartisan majority. We have all heard the very impressive
statistics associated with the Medicare Part D program. More than 90
percent of seniors eligible for the benefit have drug coverage, and
they will save on average $1,200 per year.
  More importantly, more than 80 percent of enrolled seniors have
expressed their satisfaction with the program. Competition in the
prescription drug benefit has forced down costs far below what was
anticipated. In 2007, the average premium for the benefit was $22 a
month, 40 percent less than projected at the outset.
  The Congressional Budget Office's new budget estimate for the next 10
years shows that net Medicare costs for the prescription drug benefit
will be more than 30 percent, or $256 billion, lower than originally
forecast. Not only are the costs for this prescription drug benefit
lower than expected, but for 2007 more drugs are also being covered by
participating plans than last year. The average plan now covers 4,300
drugs in its formulary versus 3,800 last year, a 13-percent increase.
  The basic point is this: We passed a prescription drug benefit that
uses market competition to provide critical medications to seniors at a
cost much lower than originally projected. The results so far
demonstrate a familiar principle: competition and choice bring lower
prices and, I might add, better service.
  There are some who want to change that successful model, so we have
to ask ourselves: How does their plan improve on this very successful
Government program?
  Since I believe being a zealous guardian of the taxpayers' dollars is
one of the reasons my constituents sent me here, one of the first
questions I ask is: Will the alternative plan of interfering with this
market-based competition actually save taxpayers money while continuing
to provide choice and access to prescription drugs for seniors?
  The simple answer to this question is, no, and you don't have to take
my word for it. The nonpartisan Congressional Budget Office determined
that the proposal that is before us would have a ``negligible effect''
on reducing Government spending.
  The advocates of this particular proposal that is pending before us
cannot point to any Government source that will support their claim
that the Federal Government can negotiate more effectively than the
private market. Specifically, CBO writes that ``CBO estimates that H.R.
4 would have a negligible effect on Federal spending because we
anticipate that the Secretary would be unable to negotiate prices
across the broad range of covered part D drugs that are more favorable
than those obtained by PDPs under current law.'' Secretary Leavitt
describes in practice how having the Government negotiate drug prices
will not lead to lower costs for beneficiaries or taxpayers. He has
written:

       We are seeing large-scale negotiations with drug
     manufacturers, but they are being conducted by private plans,
     not the government. A robust market with a lot of competitors
     has driven down prices. It's the magic of the market. To
     assume that the government, in our genius, could improve on
     this belies the reality of a complex task.

  In fact, public opinion polls back up Secretary Leavitt's comments. A
study by the Tarrance Group found that only 28 percent of seniors
believe that the Government would do a better job in setting drug
prices than a competitive marketplace.
  The Washington Post agrees. It has written, on January 14:

       Governments are notoriously bad at setting prices, and the
     U.S. Government is notoriously bad at setting prices in the
     medical realm.

  As policymakers, it is also our job to ask: What are the potential
consequences of this new legislation that is pending before us? Quite
simply, the consequences are dire. Since Government will decide which
drugs seniors have access to, seniors will be left with fewer choices.
  In terms of analyzing the consequences of this alternative plan, it
is helpful to look at examples in other countries that have tried what
Democrats are now advocating in this model. We don't have to guess
about what the consequences would be because other countries have tried
it. I recently read a piece published in the Washington Post and
written by Alberto Mingardi, president of a think tank in Italy, and I
want to quote from this article because I believe it demonstrates my
point. He writes about the Democrats' plan to require the Government to
set prices, or at least giving the Secretary the authority to do that.
He said:

       It would create a Medicare drug program that looks a lot
     like the system we have in my country, Italy, where drug
     prices are among the lowest in Europe. At first glance, this
     might seem like an enviable model for America to follow. But
     before Pelosi rushes down the road to Italian-style health
     care, let me offer a word of caution. Italy is hardly a
     health care paradise. In fact, it's more like a quagmire of
     red tape.
       For the most part, Italy's lower drug prices are the
     product of government price controls. In Italy, these price
     controls have created a number of problems. The government's
     attempt to force down drug prices has not produced overall
     health-care spending. Rather, it has resulted in a spike in
     demand--which is one reason why Italy's health-care spending
     has skyrocketed, growing nearly 68 percent between 1995 and
     2003.
       As for the quality of Italy's care, that, too, has
     suffered. With demand for drugs rising, the Italian
     government has attempted to save money by adopting
     reimbursement policies that favor certain drugs over others.
     Unfortunately, the most innovative products often aren't
     considered reimbursable by the government precisely because
     they are the most expensive.
       It's a great system if you just need an antibiotic. But if
     you're hoping to avoid open heart surgery through access to a
     miracle drug, it can be a nightmare.

  He concludes.

       The economy is also harmed. Because it's simply not
     profitable for companies to invent cures in Italy, price
     controls have decimated Italy's pharmaceutical industry. So
     by attempting to hold down drug prices, the Italian
     government has deprived its citizens of the best care without
     reducing health-care spending. And it has deprived the
     country of what could be a vibrant sector of the economy. In
     their rush to revamp Medicare, U.S. policy leaders should be
     careful not to make the same mistake.

  Mr. President, I ask unanimous consent that the article be printed in
its entirety in the Record at the conclusion of my comments.
  The PRESIDING OFFICER (Mr. Menendez). Without objection, it is so
ordered.
  (See exhibit 1.)
  Mr. CORNYN. Mr. President, I also want to stress the last sentence
that I read one more time, where he says: It is a great system, if you
need an antibiotic. But if you are hoping to avoid open heart surgery
through access to a miracle drug, it can be a nightmare.
  We don't need to go down this path. We don't have to change course.
Right now, under Medicare Part D, market forces and competition have
created a wildly popular benefit that uses market competition to
provide critical medications to seniors at costs much lower than
projected a few short years ago.
  I have spent a few moments describing my concern with the Democrats'

[[Page S4582]]

plan to ``so-called'' negotiate prices. I would say to ration drugs is
a more accurate description. But by far my biggest concern about this
bill is, of course, another example of their preference for Government
control in health care rather than market-driven, patient-centered
approaches favored by those of us on this side of the aisle.

  I would urge my colleagues to call this debate what it is: It is not
so much about noninterference clauses in Medicare prescription drug
laws. There is a much more importantly and potentially consequential
debate about whom Americans want to be making decisions in our health
care system. Do they want it to be the Government or do they want it to
be patients themselves and their doctors?
  I recently read a quote from a physician in Switzerland that I found
particularly poignant. He reminds us that:

       We all have a single-payer health care system. Citizens
     always wind up paying for health care, either through taxes,
     insurance premiums, or out-of-pocket costs. The real question
     is whether they will have a single-decider system. In many
     European countries, there are single-decider systems in which
     governments and their agents control what medical services
     its citizens will or will not receive.

  Of course, we know all too well how close we are in this country to
having a single-payer health care system. Roughly, 50 cents of every
health care dollar we spend in the United States is spent directly by
the U.S. Government. The health care economy is approximately $2
trillion annually, or one-sixth of the entire U.S. economy. I believe
we have to reform our health care system, emphasizing individual choice
and trusting patients and their families and their doctors to make the
right choices--not lawyers or, yes, even bureaucrats in Washington,
DC,--to make the important health care and treatment decisions.
  So make no mistake about it, this bill is about a much larger issue
than the title of the legislation itself would suggest. We are not
debating some sterile provision called a noninterference clause. We are
debating something far more significant.
  The Washington Post believes this debate is about something much
larger than the noninterference clause as well, and they have written:

       The Democrats' stance is troubling because it suggests an
     excessively governmental-led view of health care reform. The
     better approach is to let each insurer offer its own version
     of the right balance, see whether it attracts customers, and
     then adapt flexibly.

  In my State, the Dallas Morning News has written:

       When congressional Democrats press for this change next
     year, remember they're pushing for much more than lower
     prices. They're seeking to move the line where government
     should stop and the marketplace should start.

  I do agree with the Democrats that this debate is about negotiation,
but the real question is not should we have negotiation but who should
negotiate. The proponents of this legislation believe it should be the
Government, and I couldn't disagree more. The proponents of this
legislation believe the Government is more skilled in making pricing
decisions than the free market, and I have to say, I think that is
wrong.
  We have been presented in this legislation with a remarkably clear
choice: If you believe the way to improve our broken health care system
is to embrace a market-driven approach that lowers costs and does not
reduce choices for seniors, then you will vote to continue the
prescription drug program that we passed a few short years ago. If you
believe, as the advocates of this legislation do, that Government
bureaucrats are better suited than the free market to make pricing
decisions for thousands of prescription drugs, then you will want to
vote for this legislation.
  I will vote for the current market-driven approach that provides
choices for seniors and puts patients and doctors in control rather
than the Government, and I urge my colleagues to join me.

                               Exhibit 1

               [From the Washington Post, Nov. 12, 2006]

                        Drug Price Path To Avoid

                         (By Alberto Mingardi)

       The next speaker of the House, Rep. Nancy Pelosi (D-
     Calif.), has let it be known that within her first 100 hours
     on the job, she will move to allow the government to
     negotiate directly with pharmaceutical companies to obtain
     lower drug prices for Medicare patients.
       Her plan would create a Medicare drug program that looks a
     lot like the system we have in my country, Italy, where drug
     prices are among the lowest in Europe. And that's pretty low,
     considering that drugs in Europe average about 60 percent
     less than in the United States. Even as U.S. prices rose,
     Italian drug prices decreased by 5 percent last year.
       At first glance, this might seem an enviable model for
     America to follow. But before Pelosi rushes down the road to
     Italian-style health care, allow me to offer a word of
     caution. Italy is hardly a health-care paradise. In fact,
     it's more like a quagmire of red tape.
       For the most part. Italy's lower drug prices are the
     product of government price controls. The state purchases
     nearly 60 percent of the nation's prescription drugs. And it
     supposedly negotiates prices directly with pharmaceutical
     companies. But since the Italian government controls such a
     disproportionate share of the market, it in effect dictates
     drug prices. In Italy, these price controls have created a
     number of problems.
       First, they distort the laws of supply and demand. Because
     of the country's artificially low drug prices, demand for
     pharmaceuticals is artificially high--higher than it would be
     under free-market conditions. The point is that the
     Government's attempt to force down drug prices has not
     reduced overall health-care spending. Rather, it has resulted
     in a spike in demand--which is one reason why Italy's health-
     care spending has skyrocketed, growing nearly 68 percent
     between 1995 and 2003.
       As for the quality of Italy's care, that, too, is
     suffering. With demand for drugs rising, the Italian
     government has attempted to save money by adopting
     reimbursement policies that favor certain drugs over others.
     Unfortunately, the most innovative products often aren't
     considered reimbursable by the government precisely because
     they are the most expensive.
       It's a great system if you just need an antibiotic. But if
     you're hoping to avoid open-heart surgery through access to a
     miracle drug, it can be a nightmare. And Italians are lacking
     more than just choice in cutting-edge drugs. They also lack
     information. According to a recent survey, more than 50
     percent of Italy's patients believe that the national health
     service cannot even supply adequate information about
     treatments and drugs.
       The economy is also harmed. Because it's simply not
     profitable for companies to invent cures in Italy, price
     controls have decimated Italy's pharmaceutical industry.
     Today not one of the world's 50 largest drug manufacturers
     has its headquarters in Italy, even though the country is the
     world's seventh-largest economy. Because most drug and
     biotechnology companies are outside Italy's borders, there
     are only 84,000 pharmaceutical workers in Italy's entire drug
     industry. The industry has become a perfect target for
     Italy's politicians, because they can rail against it with
     little political downside. The more we follow this path, the
     less likely it is for Italian companies to develop valuable
     innovations--at great risk for both our economy and our
     health.
       So by attempting to hold down drug prices, the Italian
     government has deprived its citizens of the best care without
     reducing health-care spending. And it has deprived the
     country of what could be a vibrant sector of the economy. In
     their rush to revamp medicare, U.S. Policy leaders should be
     careful not to make the same mistake.

  Mr. CORNYN. Mr. President, I yield the floor.
  Mr. HATCH. Mr. President, I rise to express my deep concerns about S.
3, the Medicare Fair Prescription Drug Price Act of 2007.
  Back in 2003, I helped draft the Medicare Modernization Act. I was
one of the Senate's chief negotiators for the House-Senate conference
on this legislation. We wrote legislation that was approved by both
Chambers of Congress and signed into law by the President in December
2005. And by enacting this legislation, Medicare beneficiaries are now
offered a quality prescription drug benefit at an affordable price. It
is a successful program by any measure.
  I want to take a few minutes to talk about the Medicare Modernization
Act of 2003 and what a difference it has made in the lives of Medicare
beneficiaries.
  Today, there are 38 million Medicare beneficiaries and over 90
percent participate in the Medicare Part D program. Eighty percent of
Medicare Part D beneficiaries are happy with their Medicare
prescription drug plan. And they are happy with their plans, because
they have a choice in coverage--beneficiaries are able to get a plan
that meets their needs. We don't have a one-size-fits-all program
attempting to stretch over 38 million people. The cost savings have
been profound for both beneficiaries and for taxpayers.
  When the Medicare Part D plan first began in January 2006, we thought
that the average premium would be around

[[Page S4583]]

$37 per month. Because of plan competition, the average premium is $22
a month. That has reflected for taxpayers over $113 billion of savings
over what Congress had originally estimated. And the other good news is
that if a beneficiary hits the doughnut hole--the point where the
beneficiary has to pay out of pocket for his or her prescriptions--
there are now plans in every State that will provide coverage through
the doughnut hole period.
  As we all know, back in January, the House of Representatives passed
legislation that would require the prices of prescription drugs
received under the Medicare Part D program to be negotiated by the
Secretary of Health and Human Services. Late last week, the Senate
Finance Committee also approved S. 3, the Medicare Fair Prescription
Drug Price Act of 2007. While this legislation does not mandate that
the Secretary negotiate drug prices for the Medicare Part D benefit, it
gives the Secretary the discretion to do so.
  Any way you look at it, Congress requiring the Secretary to negotiate
prescription drug prices would lead to a one-size-fits-all drug plan
which would result in fewer choices. Beneficiaries would have less
satisfaction with a one-size-fits-all plan. And, in my opinion, drug
prices will not be lower.
  In addition, beneficiaries would have fewer choices. When you
negotiate drug prices, there is really only one way to do it. You limit
the choices available. You say I am going to take your medication off
your drug plan or I am only going to pay X amount for a drug, a price
so low that perhaps the manufacturer cannot participate. If the
Government starts doing that, suddenly you have the Government making
choices about who can get what drug as opposed to beneficiaries and
their doctors making those decisions.
  Currently there are over 4,400 drugs available on Medicare Part D
plans. Beneficiaries may choose a plan that meets their needs. That is
exactly why 80 percent of Medicare Part D beneficiaries are happy. And
for those who aren't, the good news is we can help find a plan that
serves them better. If we had one plan, one formulary, then we would
have a lot more unhappy people.
  And how does the Secretary of Health and Human Services feel about
this new responsibility? I would like to take a minute to read an
editorial that appeared in the Washington Post on January 11, 2007.
This editorial was written by Secretary Mike Leavitt, not only a good
friend of mine but a very thoughtful, knowledgeable, and openminded
Secretary of HHS as far as health care policy is concerned. ``Medicare
And the Market Government Shouldn't Be Negotiating Prescription
Prices,'' by Mike Leavitt, Thursday, January 11, 2007; Page A25:

       We all want people with Medicare to get the prescription
     drugs they need at the lowest possible prices. The issue
     before Congress this week is how best to do that. Should
     consumer choice and private-sector competition determine
     prices--or should government?
       The success of the Medicare prescription drug benefit
     provides strong evidence that competition among private drug
     plans has contributed significantly to lowering costs. The
     average monthly premium has dropped by 42 percent, from an
     estimated $38 to $22--and there is a plan available for less
     than $20 a month in every state. The net Medicare cost of the
     drug program has fallen by close to $200 billion since its
     passage in 2003.
       Seniors and people with disabilities like the benefit.
     Studies consistently show that three-quarters of Medicare
     beneficiaries are satisfied with their coverage. Individuals
     like being able to choose the plan that best fits their
     needs. A single, one-size-fits-all drug plan would have made
     the choice easier, and Congress did create a standard plan.
     But fewer than 15 percent of enrollees have selected that
     standard plan--opting instead for plans with lower premiums,
     no deductibles and enhanced coverage.
       Despite the success of the benefit, some people believe
     government can do a better job of lowering prices than a
     competitive marketplace. Legislation under consideration
     would require the secretary of health and human services to
     negotiate and set the prices of drugs. In effect, one
     government official would set more than 4,400 prices for
     different drugs, making decisions that would be better made
     by millions of individual consumers.
       There is also the danger that government price setting
     would limit drug choices. Medicare provides access to the
     broadest array of prescription drugs, including the newest
     drugs. But price negotiation inevitably results in the
     withholding of access to some drugs to get manufacturers to
     lower prices.
       The Department of Veterans Affairs, often cited as an
     example of how government can negotiate prices, operates an
     excellent program for veterans, but the VA formulary excludes
     a number of new drugs covered by the Medicare prescription
     benefit. Even Lipitor, the world's best-selling drug, isn't
     on the VA formulary. That may be one reason more than a
     million veterans are also getting drug coverage through
     Medicare.
       Some observers point to the massive buying power of the
     federal government as the means to exert clout over drug
     companies, but the federal government has nowhere near the
     market power of the private sector. Private-sector insurance
     plans and pharmacy benefit managers, who negotiate prices
     between drug companies and pharmacies, cover about 241
     million people, or 80 percent of the population. Medicare
     could cover at most 43 million.

  The independent Congressional Budget Office has said that government
price negotiation would have a ``negligible effect on federal
spending.'' And previous experience with Congress and Medicare
regulating drug prices has not been reassuring. Medicare Part B, which
covers physician services, outpatient hospital care and other services,
sets the prices for some medicines--notably a number of cancer drugs.
It has a history of reimbursing at rates substantially greater than
prevailing prices. In 2005, Part B drug spending increased by almost 20
percent.
  If the Federal Government begins picking drugs and setting prices for
all Medicare beneficiaries, administrative costs would add a new burden
to taxpayers. The Department of Health and Human Services would have to
hire hundreds of new employees. Legions of lobbyists would follow, each
seeking higher Medicare payments for the drug companies they represent.
As a Post editorial noted in November, ``having the government set drug
prices is a sure way of flooding the political system with yet more
pharmaceutical lobbyists and campaign spending.''
  There is a proper role for government in setting standards and
monitoring those who provide the benefit. We should ensure that
beneficiaries have access to medically necessary treatments. But
government should not be in the business of setting drug prices or
controlling access to drugs. That is a first step toward the type of
government-run health care that the American people have always
rejected.
  There are many ways the administration and Congress can work together
to make health care more affordable and accessible. But undermining the
Medicare prescription drug benefit, which has improved the lives and
health of millions of seniors and people with disabilities, is not one
of them.
  Secretary Leavitt is correct--providing flexible prescription drug
plans to beneficiaries should be one of our top goals. Getting Medicare
beneficiaries the best price possible for their prescription drugs
should be one of our top goals. And offering Medicare beneficiaries
high quality prescription drug plans should be one of our top goals. In
my reading of this legislation, passage will result in none of these
goals being achieved and, in fact could result in the Medicare
prescription drug benefit becoming a national formulary which could
result in higher prices for drugs and limited choices for Medicare
beneficiaries.
  When we were drafting this bill, we took great care to provide
protections to Medicare beneficiaries who decided to participate in the
Medicare Prescription Drug Plan. We wanted to provide beneficiaries
with a drug benefit that would not cost them an arm and a leg, and that
would allow access to a wide range of prescription drug choices.
  In order to preserve those choices, the Medicare Modernization Act
prohibits the Secretary from establishing a formulary. If the Secretary
cannot lower prices without a formulary and if it is prohibited by law
for the Secretary to establish a formulary then I ask you--what is the
purpose of this bill?
  I believe that, should this bill become law, it will be no time
before its supporters decide that now they want the Secretary to
establish a formulary. I think this bill is a Trojan horse with a
Medicare formulary hidden inside.
  Mr. President, I urge my colleagues to think carefully about this
issue. I urge them to talk to their Medicare beneficiaries in their
states and ask them whether or not they are happy with their
prescription drug plans. I believe that they will find that almost
everyone is happy with their current

[[Page S4584]]

benefit and changing this benefit is a terrible mistake on our part.


                   federal income tax filing deadline

  Mr. HATCH. Mr. President, today the tax man cometh.
  Americans have April 17 circled on their calendars, and not with a
smiley face.
  This year, roughly 135 million Americans sat down to complete their
tax returns. Many have made the unfortunate discovery that they owe
additional money to the IRS.
  Others are shocked to learn that they owe something called the
alternative minimum tax.
  I would like to emphasize one point today, a point that many of my
constituents have learned the hard way: their tax burden is already too
high.
  For middle-class Americans, tax day has become an aggravation at
best, and an outrage at worst.
  Many Utahns, as well as distraught taxpayers throughout the Nation,
know the look of tax overload. They see it when they look in the
mirror, and they see it when they look at their spouse.
  There is the kitchen table. A late night. Some scattered papers and
receipts. An elbow on the table. And a hand on the forehead in
disbelief. This is the look of overtaxed Americans. It is the look of
misery and confusion. It does not need to be this way.
  There are economic burdens as well, and that burden is only going to
grow if the Democrats get their way.
  Many of us pay too much in taxes already. But the policies of the
congressional majority are a blueprint for even higher taxes. Neither
our citizens nor our economy can bear much more.
  Middle-class Americans are overtaxed.
  According to the Tax Foundation, this year Americans will work 120
days to pay their total tax burden.
  Let's put this in perspective. They will work 62 days to pay for
their house and home. They will work 52 days for health and medical
care. They will work 30 days for food. But they will work 120 days to
pay their taxes.
  If you told my parents' generation that their tax burden would be
that high, they would have thought we lost a war to France.
  But the Democrats are not satisfied. They want the so-called rich to
pay more of their so-called fair share.
  Let me translate. By ``rich'' they mean anyone with a job.
  And by ``fair share,'' they mean empty your wallet.
  According to recent data from the IRS, persons making more than
$30,122, or the top 50 percent of all income earners, paid 97 percent
of all income taxes in 2004, the latest year there were data available.
  Those who made more than $60,041 in 2004, the top 25 percent, paid 85
percent of all income taxes.
  These people are not rich.
  As one of my Democratic colleagues noted earlier this year, a mother
and a father making $90,000 a year in a place like Virginia or New York
or California or New Jersey are not rich. They are doing the best they
can to provide for their families. And once you factor in taxes,
housing, clothing, medical care, and college savings, those paychecks
do not go that far.
  The middle class is already paying out much more in taxes than is
spent by the Government on its behalf.
  According to the Tax Foundation, an individual making over $65,000 a
year pays $7,217 more in taxes every year than is spent for him or her.
  But for some Members of this body, our system is still not
progressive enough.
  I know that there are some policy wonks and political strategists who
think the days of tax revolt are over.
  Apparently we are at some postpartisan, end of history, where
Americans just accept big government and big bites out of their
paychecks.
  I for one am not buying it.
  It seems some things never change in this country.
  One of those things is the commitment of Americans to their rights of
life, liberty, and property.
  Americans remain very jealous of their liberties, and rightly so.
Chief among our liberties is the freedom to use the money you earn
through your hard work and initiative, to build your business, buy a
home, and take care of your family.
  Working hard to fund some new Government bureaucracy is not at the
top of the list. If taxes go up significantly, the party responsible is
going to be in for a rude awakening. They are going to be reminded,
with grave electoral consequences, that the Government can take only so
much.
  Along with many of my colleagues on this side of the aisle, I think
our tax burden is still too high. Many Americans still pay too much.
The estate tax still destroys family businesses. Too many startup
businesses are killed off by taxes before they have begun. We need to
be providing tax incentives so people can responsibly save for their
retirement and health care. We need to be coming up with innovative tax
policies and entitlement reforms.
  Instead, the Democrats are keeping mum as Medicare and Social
Security take on water, keeping to themselves their foolproof plan to
bail us out: Raise taxes.
  The combined unfunded liability for Social Security and Medicare is
$84 trillion. That is ``trillion'' dollars. Where is that money coming
from? They are having a hard time coming up with money today for a $50
billion 1-year fix for the AMT, the alternative minimum tax. Where are
they going to get $84 trillion?
  Do not worry, they tell us; they are going to fix Social Security and
Medicare. But fixing it their way will break the backs of middle-class
taxpayers. Mark my words, they will raise taxes on the middle class,
taking away or limiting savings vehicles for health and retirement.
They will raise taxes on individuals, hiking rates and hurting
families. And they will raise taxes on businesses, killing industry and
choking initiative.
  Conservatives are fond of saying that ideas have consequences. They
certainly do. There are important differences between the parties. In
their guts, Democrats distrust markets, believe that more Government
intervention and Government programs are the answer, and are willing to
hike taxes to achieve their goals.
  Those of us on this side of the aisle believe in personal
responsibility, low taxes, and encouraging the freedom,
entrepreneurialism, and dynamism of the American people.
  Ideas have consequences. One leads to economic prosperity; the other
leads to national stagnation. I want my constituents to know that on
these debates to come, I stand with the taxpayers. We need to be
encouraging industry. We need to be growing our economy. We need to be
lowering and simplifying our tax burden.
  Today's Democratic majority promised real change. Instead, we are
getting the same tired song. They are not taking our Nation's fiscal
woes seriously. They are hoping Americans will not object when their
taxes are hiked to pay for our coming entitlement train wreck.
  They should think twice before going down this road. Middle-class
Americans, such as my constituents in Utah, are trying to get their
taxes done by midnight tonight. They want their tax burden lowered, and
so do I. There are lots of promises made by our friends on the other
side to get rid of the AMT. They have had at least three chances to
vote to get rid of the AMT for the vast majority in the middle class
and they have refused do so.
  If left unchecked, the AMT is going to, within the next 10 years, be
assessed on over 35 million Americans. Remember, it started out because
there were about 159 people who did not pay their taxes, people who
were immensely rich. Now we are talking up to 25 million Americans as
we stand here today, and up to 35 million Americans within the next ten
years. I am calling on my colleagues on the other side to live up to
their campaign promises and let us get rid of AMT. It is very unfair to
the middle class, and frankly, for most Americans.
  I promise to do all I can to see we do that.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Georgia is recognized.
  Mr. CHAMBLISS. Mr. President, I ask unanimous consent to speak as if
in morning business.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. CHAMBLISS. Mr. President, I rise today to oppose S. 372, the
fiscal year 2007 Intelligence authorization bill, in its current form.
I believe, without amendment, this legislation will

[[Page S4585]]

deteriorate the existing working relationship and trust the
intelligence community has with Congress.
  I voted against this legislation in both the Intelligence Committee
and the Armed Services Committee because I believed significant
alterations needed to be made before I could offer my support. As a
member of the Intelligence Committee, I am fully cognizant of the
importance of passing an authorization bill to guide our intelligence
community as well as to advise the Senate appropriations process.
Passing an authorization bill reasserts much needed Congressional
oversight of the intelligence community, and it ensures that the Senate
is relevant on national security issues that are critically important.
  At this time, I question whether the Senate is serious about the need
to examine all possible improvements to the bill or is willing to
devote the time necessary to discuss and debate all amendments. Given
the natural and conflicting interests involved, it is prudent that
Congress act carefully and work with the executive branch to ensure
that its needs are met, rather than hastily making demands through
legislation that many provisions of this bill attempt to do. This will
only create further friction between the two branches. I believe there
are other ways to ensure effective oversight.

  Some sections of this bill, particularly sections 304 and 107, are
problematic to me, and I believe they will not further meaningful
Congressional oversight. Therefore, I have offered amendments to strike
these sections and urge my colleagues to support my amendments.
  Let me detail my concerns with these two sections. First, section 304
requires the intelligence community to notify all of the members of the
Senate and House Intelligence Committees whenever the House and Senate
leadership and committee leaders are briefed on highly sensitive
intelligence or covert actions. It requires that the notification
include a statement of the reasons why only the leadership was
informed, as well as a description of the main features of the matter.
  There is a history of compromise and cooperation between the
executive and legislative branches regarding the sharing of sensitive
intelligence with Congress. The President has the duty to protect
intelligence sources and methods. One such way is to limit the number
of people who are privy to the information. Congress recognized this
duty in the National Security Act, which states that information be
shared:

       with due regard for the protection from unauthorized
     disclosure of classified information relating to sensitive
     intelligence sources or methods or other exceptionally
     sensitive matters.

  The reporting requirement in section 304 may disclose the very
sensitive information the President has determined only the leadership
has a need to know. As a member of the Intelligence Committee, I
recognize there are some highly sensitive matters I do not have a need
to know, and I support having limited notification when absolutely
necessary to protect the information.
  Frequently the Congressional leadership will be informed of tightly
controlled classified operations in which limiting knowledge of them is
appropriate. Many of us do not have a need to know about various
sensitive operations which, if leaked, could result in lives being lost
as well as the termination of Congressional access to information.
  Additionally, I have confidence in the chairman and vice chairman of
the Intelligence Committee. I count on the leaders of the committee to
be responsible for determining when additional access to information is
warranted and for requesting that additional members be briefed as
necessary. Section 304 seeks to abandon these practices which have been
refined over three decades of aggressive Congressional oversight.
  Next, section 107 requires the public disclosure of the National
Intelligence Program budget requests and Congressional authorizations
and appropriations for the intelligence community. Disclosing these
figures to the public also discloses them to our enemies who will be
watching for fluctuations in these figures, which may damage
intelligence sources and methods over time.
  Additionally, declassifying the overall budget for the intelligence
community may lead others to demand that each agency declassify their
budget. No doubt this would have grave effects on the capabilities of
our intelligence agencies. For those reasons I oppose S. 372 in its
current form and the managers' amendment to it. I urge my colleagues to
support my amendments to strengthen this bill.


                              Fair Tax Act

  Mr. President, today is the deadline for all taxes to be filed. As
many millions of Americans rush to file their taxes, I rise to bring
attention to our horribly broken, overly complex, and unfair American
tax system. I have and will continue to support significant reform of
the Tax Code in this country, as I have consistently done during my
service in Congress.
  Accordingly, I have recently introduced the Fair Tax Act of 2007 on
behalf of myself, my colleague from Georgia, Senator Isakson, Senator
Coburn, and Senator Cornyn, because we are in desperate need of tax
reform.
  Imagine the economic freedom and purchasing power provided by a tax
system that would allow us to retain 100 percent of our earnings while
maintaining the benefits of Government-sponsored programs, and allowing
them to flourish. Such would be the case under the system proposed in
the Fair Tax Act.
  The Fair Tax Act would create a national sales tax as the primary
source of Federal revenue, would eliminate our current archaic and
inefficient Tax Code, and would replace it with a simpler, fairer means
of collecting revenue. Specifically, the Fair Tax Act would repeal the
individual income tax, the corporate income tax, capital gains tax, all
payroll taxes, self-employment tax, and the estate and gift taxes in
lieu of a 23-percent tax on the final sale of all goods and services.
  Elimination of these inefficient taxing mechanisms would bring about
equality and simplicity to our overly complex tax system. Moreover, the
Fair Tax Act would abrogate any double taxation that occurs under our
current tax system because it would provide tax relief for business-to-
business transactions. These transactions, including used-product
transactions that have already been taxed, are not subject to the sales
tax.
  More importantly, under the Fair Tax Act, the Federal Government's
revenue would go unchanged. Social Security and Medicare benefits would
remain untouched under the Fair Tax bill, and there would be no
financial reductions to either one of these vital programs. Instead,
the source of the trust fund revenue for these two programs would be
replaced simply by consumption tax revenue instead of payroll tax
revenue.
  Finally, under the Fair Tax Act, every American would receive a
monthly rebate check equal to spending, up to the Federal poverty level
according to the Department of Health and Human Services guidelines.
This rebate would ensure that no American pays taxes on the purchase of
necessities. This is a critical component.


                         Invest in America Act

  Mr. President, I also rise today as an original cosponsor of the
Invest in America Act. While I firmly believe significant overhaul of
the Tax Code is the best way to achieve absolute fairness and
transparency in our tax system, until we actually get to that point, we
simply cannot allow the current rate reductions and other provisions of
the 2001-2003 tax relief packages to expire, which is what the
Democrats have proposed in their budget for the 2008 fiscal year. This
would be a drastic blow to the economy and a misguided step in the
wrong direction. The Invest in America Act would make the individual
tax rates permanent. The lower rates have been essential to our
continued economic growth over the past several years, and have
encouraged Americans to work harder, be more productive, and retain
more of their hard-earned money.
  Additionally, this bill corrects current wrongs in our tax codes,
such as the death tax and the AMT. It would make the repeal of the
death tax permanent, and would save more than 130,000 families each
year from confronting a loss of the family farms, ranches, or family-
owned businesses. It would permanently repeal the AMT which, while
designed to ensure every American pays some minimum tax, is

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in fact now hitting more and more middle-income families, and this it
was not designed to do.
  Most significant to the growth of our economy, this bill would also
make the current reduced capital gains and dividend rates permanent.
Since the reduction of these investment rates in 2003, it has become
easier for new businesses, and existing ones, to attract the capital
they need to start, succeed, and expand.
  Moreover, with greater than half of all Americans owning stock,
middle-class families, seniors, and other Americans are greatly
benefitting from these lower rates, including the 5-percent rate, which
drops to zero percent in 2008.
  The proposals in this bill would also help American families by
making permanent the increased child tax credit, the marriage penalty
relief, the adoption tax credit, the tuition deduction, and the teacher
deduction. These provisions, along with other proposals in the Invest
in America Act, make permanent the R&D tax credit and the increased
small business expensing rates, enabling both the taxpayer and the
American economy to grow.
  Most importantly, the Invest in America Act sets forth a tax system
that would gave back to those who invest in the strengthening of the
American economy. We need to overhaul our tax system, impose fairness,
and implement policies that encourage economic growth rather than
stifle it. That is what Georgians want and deserve, and that is what
Americans want and deserve.


                         Virginia Tech Tragedy

  I rise today with a very heavy heart to extend my condolences to the
families who lost loved ones as a result of yesterday's tragic
shootings on the Virginia Tech campus. One of those victims includes a
young man, 22-year-old Ryan Clark of Martinez, GA, who served as a
resident adviser at West Ambler Johnston dormitory where the first
shooting occurred. Ryan was set to graduate this spring with a degree
in biology and English, and he hoped to pursue a Ph.D., a pretty
amazing young man from an academic standpoint. In his spare time, he
also helped out the disadvantaged children in the area, as well as
disabled children. On this particular day, he came to the rescue of the
first victim and, as a result, became a victim himself.
  I wish to convey my extreme sorrow to his family as they try to grasp
the reality and gain a better understanding of what has happened. While
he was still in his very young years, it is clear that he had already
impacted so many lives and in so many different ways. While I know that
words may be of little comfort at this time, the Clark family and all
of the families involved and the Virginia Tech community will remain in
my prayers as we try to find peace in the coming days.
  It is difficult to fathom how something like this could happen. Words
can't fully describe the grief we all feel as the weight of this
tragedy settles over our Nation. My prayer is that through faith and
resolve, our country will emerge from this disaster in unity and
strength as together we find healing. While I know that we are still
learning the facts surrounding these despicable acts, it is my hope
that we can all work together and renew our commitment to ensure that
our communities and schools are safe from similar future events.
  I join my colleagues in the Senate who have spoken so eloquently on
this matter and our entire Nation in mourning the 32 lives lost
yesterday, and I pray for the strength of our country during this time
of grief and sorrow.
  Mr. CRAIG. Mr. President, news of yesterday's tragic killings at
Virginia Tech reached me piecemeal as I was traveling back to
Washington.
  We are still far from final answers and explanations. Even today,
facts are still being confirmed, evidence is still being collected, and
the impact of the tragedy is still reverberating.
  Last night, the Senate formally reacted to these terrible events
through a resolution of sympathy.
  I rise today to personally express my sorrow and condolences to the
family and friends of the victims, to the survivors, and to the
Virginia Tech community at large. The magnitude of this tragedy is
unimaginable. You are in my thoughts and prayers, and I hope you know
that the hearts of millions of Americans go out to you in your time of
grief.
  As we come to understand more about the events that unfolded so
tragically yesterday, there will be plenty of time for us to argue
about policy and politics and how to distribute blame. Today we should
be mourning the loss of these lives, and doing what we can to help the
wounded and comfort the bereaved.
  I yield the floor.
  The PRESIDING OFFICER. The majority leader is recognized.
  Mr. REID. Mr. President, I don't need to remind my colleagues that
our country is at war. We face tremendous challenges in keeping America
safe. On the other side of the aisle, in the last couple of days we
have heard some talk about the Intelligence authorization bill which
the Republican majority failed to pass in 2 separate years, the first
time in 27 years this bill has not been passed, but it wasn't passed
the last 2 years.
  This year I thought it would be good if we passed an Intelligence
authorization bill. We have 16 agencies that deal with the espionage,
the security, the intelligence of our Nation. A bipartisan bill came
out of the Intelligence Committee, the committee agreeing that
something should be done. But it gets over here and word comes from the
White House: Don't let that bill go. Like lemmings off a cliff, the
Republicans do not allow this bill to go forward. The excuses, a fourth
grade student could see through, maybe a second grade student.
  They say: Democrats wouldn't allow us to offer amendments. That is
absolutely false, untrue. From the very beginning, when they refused to
let us proceed to the bill initially and we had to file cloture,
cloture was invoked because it gave them 30 hours to stall doing
nothing. I said that during that 30-hour period amendments could be
offered. Not a single amendment was proffered.
  So then we come to cloture on the bill itself. Even the vice chairman
of the committee did not vote to go forward with this legislation.
Again, I said: OK, cloture wasn't invoked. Let's go ahead and offer
some amendments. They did. Guess what the first amendment was to show
how serious they are about the intelligence operations of this country.
An amendment was offered by a Republican 34 pages long dealing with
immigration which shows how they want to solve the immigration problems
of this country and the intelligence problems. This is no place for
immigration. We are going to debate immigration the last 2 weeks of
this work period.
  It is beyond my ability to comprehend how Senators on this side of
the aisle, looking over there, could vote this way, people whom I have
always believed to be patriots. Why would they not vote on this? I will
tell you why they didn't. Vice President Cheney wants to be the czar of
intelligence of this country, as he has been for 6 years. He can rest
well tonight because he is going to be able to continue, without this
bill setting certain standards for interrogation with our intelligence
agencies and other things that on a bipartisan basis were said to be
important to improve the intelligence apparatus of our country.
  The amendments offered this afternoon were not in good faith. A 34-
page immigration amendment on an Intelligence authorization bill? They
were nothing more than an effort to make the White House happy. It is
no secret. Senators have told Senators on this side that is why they
voted against cloture: they were told to do so by the White House.
  Maybe my friends on the other side of the aisle think it is not
important, that they can pull this one off and get away with it. We
have a war on terror going on, and we have intelligence agencies--16 in
number--that are working every day trying to keep ahead of the bad
guys. The bipartisan bill that has been before the Senate for the last
several days was drafted based upon what the intelligence agencies
thought they needed to improve their ability to collect information. I
don't think it is going to work. The credibility of the Vice President
is not very high in this country. For reasons like this, it is apparent
why that is.
  The White House talks about the war on terror; let's work together to
do

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something about it. Step back a minute. Is it political posturing to
think that the intelligence agencies of this country that should have
legislation that should be passed every year not be passed for 3 years?
  I am very disappointed. I say this not in a mean or argumentative
way. I am terribly disappointed. If the Presiding Officer, other
Senators on this floor, if I ever as the leader came to one of you and
said: We are not going to let the intelligence bill go forward this
year, I think my caucus would tell me what to do with my suggestion.
But apparently the White House has more sway than the American people
to this group across the aisle. That is really too bad.
  The PRESIDING OFFICER. The Senator from Ohio.

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