[Congressional Record Volume 141, Number 169 (Monday, October 30, 1995)]
[Extensions of Remarks]
[Pages E2065-E2066]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         THE 7-YEAR BALANCED BUDGET RECONCILIATION ACT OF 1995

                                 ______


                               speech of

                         HON. MICHAEL G. OXLEY

                                of ohio

                    in the house of representatives

                       Thursday, October 26, 1995

       The House in Committee of the Whole House on the State of 
     the Union had under consideration the bill (H.R. 2491) to 
     provide for reconciliation pursuant to section 105 of the 
     concurrent resolution on the budget for fiscal year 1996:

  Mr. OXLEY. Mr. Chairman, I rise today in strong support of the Seven-
Year Balanced Budget Reconciliation Act of 1995. As the name implies, 
this package of reforms outlines a clear path to a balanced budget in 
the year 2002. We promised the American people that 

[[Page E 2066]]
we would bring the budget to balance in 7 years, and today we plan to 
deliver on that promise.
  While balancing the budget in itself is an admirable and worthwhile 
goal, our bill does much more. These provisions, taken as a whole, mark 
a clear shift in power from Federal bureaucrats to families, States, 
and communities, who know what works best for them. I had the 
opportunity myself to vote in Committee on many of the provisions 
included in the bill, and I commend my colleagues for their fine work 
in constructing the other reforms included in this bill.
  I would like to outline some of the major items included in our bill.
  As many already know, the Medicare trustees reported last April that 
unless Congress takes ``prompt, effective and decisive action,'' 
Medicare will go bankrupt in 2002. Consequently, House Republicans have 
passed the Medicare Preservation Act of 1995, which has been included 
in this bill. This legislation will bring Medicare back onto solid 
financial ground by infusing it with the innovation and efficiency 
found in many private health plans. By giving seniors a wide choice of 
options, while maintaining traditional Medicare as one option, and by 
cracking down on waste, fraud, and abuse, we can ensure a strong 
Medicare Program well into the future.
  Another major highlight of this legislation is the $245 billion tax 
cut for American families. As included in the Contract With America, 
our bill includes a $500 per-child tax credit, a reduction in the 
capital gains tax, and a repeal of President Clinton's 1993 tax on 
Social Security benefits. While President Clinton promised tax relief 
for the middle-class, and subsequently delivered the largest tax 
increase in American history, our bill delivers on our promise of 
needed tax cuts.
  This package also incorporates the Personal Responsibility Act of 
1995, as passed by the House earlier this year. Simply stated, welfare 
has become a way of life for far too many recipients. By making it 
easier to collect a handout than to work, the current system has 
destroyed individual initiative and actually perpetuated poverty. A 
Contract With America priority, this pro-work, pro-family bill will 
reform our welfare system by providing a helping hand, not a handout, 
to the millions of Americans caught in this dead-end trap.
  As some may know, the cost of Medicaid has been growing at the 
uncontrollable rate of nearly 10 percent a year, and eating up one-
fifth of State budgets. Our bill includes Medicaid reform that will 
provide more money, fewer bureaucrats, and greater protections against 
fraud and abuse. With the help of our Nation's Governors, Republicans 
have developed a plan to block grant Medicaid funds to States in the 
form of new MediGrants. Given this new flexibility States will be able 
to design innovative, cost-effective programs targeted toward their 
specific needs and populations.
  In our continuing effort to make Government both smaller and more 
efficient our bill includes language, which I personally shepherded 
through the Commerce Committee, to abolish the Department of Commerce. 
While our bill will maintain the Department's legitimate functions, 
such as the census and statistical recordkeeping functions, we 
eliminate the unnecessary and duplicative functions for an estimated $7 
billion in savings.
  Another issue that I was personally involved with was the spectrum 
auction. Our bill will expand the auction to raise an additional $15.3 
billion over 7 years. Having been an early proponent of the spectrum 
auction, I am pleased that revenue raised by auctioning radio spectrum, 
which was previously given away for free, will now be used to balance 
the budget.
  Other meaningful reforms included in our bill include: The creation 
of tax deductible personal medical savings accounts, the closing of 
corporate tax loopholes, public housing reforms to eliminate 
duplicative programs, terminating the overly bureaucratic and costly 
Direct Student Loan Program, and the adoption of a taxpayers' bill of 
rights.
  I believe that it is time for these reforms, because the American 
people deserve more than higher taxes and a bigger, more bureaucratic 
Federal Government. This bill represents much more than your average 
yearly spending reconciliation plan, it represents a blueprint for the 
future. Under our plan Americans will have more in the family budget, 
greater control over the workings of their Government, and the peace of 
mind that their children and grandchildren will live in a debt-free 
America full of opportunity.

                          ____________________