The Congressional Connector:
The Week of April 18 – 22, 2005
House Energy Bill Showers Tax Breaks on Energy Industry
On April 21, a divided House of Representatives approved a controversial energy bill on a vote of 249 - 183. Speaking in opposition to the bill, Rep. Levin said, "The Leadership of the House has brought a bill to the Floor that will do little or nothing to rein in energy prices.... Instead of bringing us a comprehensive energy bill that brings down gas prices and encourages greater U.S. energy independence, the bill before the House is little more than a grab-bag of special interest giveaways. For example, the tax title of this legislation contains just over $8 billion worth of tax incentives. Only about 6 percent of these go to energy efficiency, renewable energy or conservation. Nearly all of the $8 billion goes to the oil, gas and nuclear industries, as well as electric utilities." To read Rep. Levin’s complete statement, click here.
Privatization Would Leave Retirees Vulnerable to Market Downturns
With all three major stock indexes down significantly this year, Rep. Levin issued a statement on the impact of stock market under performance on Social Security privatization. Market performance is an essential component to President Bush’s Social Security privatization proposals to divert trillions of dollars from the Social Security trust fund to private investment accounts. “President Bush’s privatization proposals undermine the basic principle of Social Security, replacing a guaranteed benefit with private accounts reliant on the performance of our financial markets,” said Rep. Levin. “Social Security was created to give retirees a bedrock financial security that would not falter in times of economic decline. Yes, the market will rebound, but these fluctuations would have a drastic impact on private accounts. If a worker happens to retire during an economic downturn, the loss from their account would equal a further reduction in their monthly income for the duration of their retirement.”
Consumer Inflation Jumps
On April 20, the Labor Department reported that the Consumer Price Index rose by a higher-than-expected 0.6% in March, following a 0.4% increase in February. Consumer inflation has risen 3.1% in the past year — and is running at a 4.3% annual pace in 2005. The news means higher prices for consumers and also increases the likelihood that the Federal Reserve will continue to set higher interest rates. Many adjustable mortgages and lines of credit are tied to changes in short-term interest rates controlled by the Federal Reserve.
Slow Progress in Closing the Wage Gap
This past Tuesday, the nation observed Equal Pay Day. It falls on a
Tuesday because Tuesday is symbolic of the point into the week that women
must work in order to earn the wages paid to a man in the previous week.
That is, a woman must work seven days to earn what a man with the same
education, job duties and experience makes in five. Women make up nearly
half of the workforce, yet still fall behind when it comes to compensation
for equal work. The issue of equal pay for women was highlighted when
President John Kennedy signed the Equal Pay Act in 1963. At that time, women
who worked full-time, year-round made 59 cents on average for every dollar
earned by men. In 2004, women earned 77 cents to the dollar. While the wage
gap has narrowed, there is still more work to do. For more information,
click here.
