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For Immediate Release

Wednesday, November 14, 2001

Republican Leaders Stalling Needed Recovery Aid for Nation So Corporations and Wealthy Can Benefit, AFSCME Charges

The American Federation of State, County and Municipal Employees, AFL-CIO, accused Republican leaders in Congress today of holding up a much-needed economic stimulus package so that they can dole out massive new tax breaks to wealthy special interests.

"Some members of Congress just don't understand how September 11 and the economic downturn have profoundly affected Americans of every stripe," said AFSCME President Gerald W. McEntee. "At a time when folks are rallying to help the country recover, they're pushing for outrageous new tax breaks for those who least need them — big corporations and the wealthy."

Texas Republican Sen. Phil Gramm raised a "point of order" today that prevents a simple majority vote over an economic recovery package offered by the Senate Democratic leadership, thus further delaying passage of legislation. The package offers $66 billion in short-term assistance mostly to millions of laid-off workers in need of temporary unemployment and health care coverage, as well as an additional $15 billion to pay for better public safety, public health, and other immediate priorities.

Last month Republican leaders narrowly moved a bill through the House last month that hands out over $200 billion in new tax breaks to wealthy corporations and individuals over three years. Rather than provide an immediate boost to the economy, the proposal allows many large corporations to hide more profits offshore and to pay less in taxes than they did in 1986.

With states suffering a $50 billion shortfall because of a weak economy and spiraling health care costs, AFSCME is also very concerned about their continued ability to provide vital public services to residents. If the Republican plan is adopted, states and localities will lose additional billions of dollars their residents desperately need, and average families will not be guaranteed any immediate help.

"We call on the Bush administration to step in right now and convince its Republican allies to negotiate a package that will keep our economy and safety net strong, not open up the federal treasury to a feeding frenzy by greedy special interests," Mr. McEntee added.