For nearly two years, Collins has been leading the fight in the Senate to provide fiscal relief to cash-strapped states. In an overwhelming vote of 95 to 3 Thursday, the Senate approved Collins's amendment to provide $20 billion in aid to the states and communities. Ten billion dollars of the funds will be allocated through the Medicaid program to avert cuts to the program that could leave more than 1.7 million Americans without health insurance coverage.
"Fiscal aid to the states is an essential part of an economic growth package. My amendment will help states cope with the worst budget shortfalls in 50 years, and I am delighted that the Senate approved it overwhelmingly,"said Senator Collins.
"At least 1.7 million people are at risk of losing their health care coverage because of state cuts to Medicaid that have already taken effect or are looming on the horizon. These are some of our most vulnerable citizens and they need our help. That is why I am particularly pleased that our proposal to provide a $10 billion increase in Medicaid funding was approved to help these low-income families."
Collins also voiced approval of the package's inclusion of a provision in her bill, S. 557, that corrects a loophole in the tax law that forces successful plaintiffs in sexual harassment and other discrimination lawsuits to pay taxes on awards for lawyers fees as though they were income. In some cases, the victims's tax bill totals more than the damages awarded.
"The story of Cynthia Spina, a Chicago police officer, who suffered years of sexual harassment at work - lewd comments, hang-up calls, and even slashed tires - inspired me to write legislation that corrects a basic unfairness in our tax code," said Senator Collins. "I'm delighted that this tax package takes steps to correct this glitch by eliminating the double tax paid on awards to plaintiffs for their lawyers fees." In addition, Collins, a longtime small business champion, also praised the bill's small business expensing provisions, which allow businesses to immediately deduct significantly more of their investments in equipment and property. This provision was modeled after legislation Senator Collins first authored in 2001 to help stimulate the economy.
"The importance of small businesses to our economy can hardly be overstated. When times are good, we expect small businesses to create vast numbers of new jobs for American workers. And when times are tough, we count on small businesses to resuscitate our sluggish economy. Time and again, small businesses lead the nation down avenues of new economic opportunity, and our expectations rise with each remarkable success story. But if we expect so much from small businesses, we owe it to them to create a climate that nurtures and rewards entrepreneurship. This tax package does that, and I am hopeful that this help will soon be on its way to our nation's small businesses."