[Congressional Record Volume 141, Number 171 (Wednesday, November 1, 1995)]
[Senate]
[Page S16465]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 THE RECONCILIATION BILL AND THE BUDGET

  Mr. GORTON. Mr. President, I have heard many of the comments of my 
eloquent and thoughtful Republican colleagues about the reconciliation 
bill and the budget which has just been passed, their thoughtfulness 
with respect to the way we have caused the Medicare system to be 
preserved, protected, and strengthened, the fact that in doing so the 
percentage of the premium which individuals will pay for their Medicare 
part B coverage will not be increased, except for those who are wealthy 
enough to be able to afford and who, for that matter, ought to pay for 
a greater portion of the cost of their health care rather than passing 
that cost onto the backs of working Americans.
  I have heard, particularly, the references of my colleagues to the 
long-sought and most welcomed reductions in the tax burdens on the 
American people. But, Mr. President, I want to emphasize one aspect of 
those tax reductions which have frequently before been overlooked. 
While there is in total almost $250 billion in tax relief for the 
American people in the reconciliation bill this body passed early last 
Saturday morning, the overwhelming bulk of those tax reductions, 80 
percent of them, in fact, comes from two sources: The closing of 
certain corporate and business tax loopholes amounting to about 10 
percent of the gross tax reductions and a $170 billion dividend which 
the Congressional Budget Office has told us will be the benefit to the 
Federal Treasury of passing a budget which clearly will be balanced by 
the year 2002.
  Mr. President, I think that is a vitally important concept. The 
tangible dividend to the American people of our balancing the budget 
will be $170 billion in lower interest payments on the Federal debt and 
an increased tax collection under the present system because of greater 
prosperity, more opportunity, more employment, a better lifestyle that 
a balanced budget will give to the people of the United States.
  Mr. President, that is the overwhelming source of the tax reductions 
that are included in this bill. We, as Republicans, believe that if we 
balance the budget, that dividend ought to go to the American people, 
not to further or for additional spending programs. And that profoundly 
differentiates ourselves from our opponents in this battle who 
consistently have demanded more spending on the part of the Federal 
Government.
  Now, Mr. President, perhaps the most remarkable illustration of the 
differences between two of the three sides of this battle is the fact 
that the President of the United States claims that he has presented a 
balanced budget when, in fact, he has not done so but has simply 
estimated the deficit out of existence.
  The Congressional Budget Office, the agreed upon arbiter of the 
fiscal direction in which this country is proceeding, has offered us no 
dividend in connection with President Clinton's budget proposals. Not 
$170 billion, not $150 billion, not $10 billion have they offered us 
should we pass the President's budget. Why? Because, of course, under 
Congressional Budget Office figures, it does not balance in the year 
2002. In fact, it barely gets below $200 billion at any time between 
now and that year. That is perhaps the greatest single illustration of 
the proposition that the White House offers us stones for bread, that 
it gives us nothing that will ever lead us to a balanced budget and 
does nothing in the way of a fiscal dividend to the American people and 
thus no source for tax relief for the people of the United States.
  That $170 billion dividend, I wish to emphasize, is only the dividend 
that a balanced budget provides for the Treasury of the United States. 
It is perhaps one-quarter to one-third of the overall benefit to the 
American people. If we pass a law which will cause the budget to be 
balanced, in addition to that $170 billion in a return of lower taxes, 
the American people will benefit to the tune of $300, $400, $500 
billion in higher wages, in greater income, in broader opportunities, 
in economic growth in the country as a whole.
  So, what we have done, Mr. President, is that we have passed a set of 
proposals which will improve the condition of the American economy and 
the American people by close to $1 trillion between now and the year 
2002. If only we can get the White House to agree to it or to agree to 
a budget which has the same impact.
  That is a magnificent triumph, Mr. President. I believe it is 
unprecedented at any time in the last two or three decades. And in 
addition to all of the other dividenda that come from a smaller 
Government, less control and influence on the part of the Government 
over our lives, a reform of the welfare system, the preservation of 
Medicare, in addition to all of these other dividends, is this 
potential for a better and a more prosperous America. And that, Mr. 
President, is the justification for what we propose to do, and what we 
passed in this body late last Friday night or early last Saturday 
morning.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. DOLE. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER (Mr. Ashcroft). Without objection, it is so 
ordered.
  Mr. DOLE. Mr. President, was leader time reserved?
  The PRESIDING OFFICER. The Senator is correct.
  Mr. DOLE. I thank the Chair.
  (The remarks of Mr. Lugar, Mr. Dole, and Mr. Craig pertaining to the 
introduction of S. 1373 are located in today's Record under 
``Statements on Introduced Bills and Joint Resolutions.'')

                          ____________________