[Congressional Record Volume 143, Number 18 (Wednesday, February 12, 1997)]
[Senate]
[Page S1254]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               BALANCE THE BUDGET FOR AMERICA'S FAMILIES

  Mr. KYL. Mr. President, during the next few months, millions of 
Americans will confront the annual task of filing their income-tax 
returns. What people would be startled to learn is that about 53 cents 
of every dollar of individual income tax they send in to the IRS this 
year will be required just to pay the interest on the national debt.
  That is 53 cents out of every dollar that will not be available to 
spend on health care for children, for education, for the environment, 
for aid to victims of domestic violence, for law enforcement, for 
national defense, or for any of the other important programs that serve 
the American people. It is 53 cents of every dollar just to pay 
interest on the bills that Congress and the President have racked up in 
years past.
  That 53 cents of every dollar does not even begin to pay down the 
national debt, which is increasing at a rate of $4,500 per second--a 
debt that threatens our children's very future. It now totals more than 
$5.3 trillion, or about $20,000 for every man, woman, and child in the 
country.
  Some people say that a balanced budget would mean drastic cuts in 
important programs. But it is really the deficit--the debt--that is 
savaging our ability to respond to the Nation's needs. How much more 
could we do for the American people if we did not have to set aside 53 
cents of every income-tax dollar just to pay interest? How much more 
could people do for themselves if their tax bills were cut in half and 
they had that 53 cents to spend on their own needs?
  It is really a balanced budget--not more deficits--that offers the 
greatest protection for the important programs our Government provides. 
A balanced budget will ensure that we have the money, for example, to 
take care of our obligations to seniors and those in need, to make 
streets safe for law-abiding citizens, and to make our country secure. 
It is, after all, those programs--those programs that are priorities 
for the American people--that will be funded first under a balanced 
budget.
  Of course, setting priorities would be something new for the Federal 
Government. We are used to operating with a national checkbook that has 
had an unlimited balance. That has allowed Congress to spend as much as 
it wants for whatever it wants. And when you have an unlimited balance 
to draw from, every program is as important as the next.
  But as any family knows, when you have to live within your means, you 
cannot have everything. The basics come first. In the context of a 
balanced Federal budget, that means things like Social Security, 
Medicare, and national security move to the front of the line.
  That is what it means to prioritize. It is just plain common sense.
  Most economists predict that a balanced budget would facilitate a 
reduction in long-term interest rates of between one and two percent. 
That means that more Americans will have the chance to live the 
American dream--to own their own homes. A 2-percent reduction on a 
typical 30-year mortgage in Arizona would save homeowners over $220 a 
month. That is $2,655 a year.
  A 2-percent reduction in interest rates on a typical $15,000 car loan 
would save buyers $676. The savings would also accrue on student loans, 
and credit cards, and loans to businesses that want to expand and 
create new jobs. Reducing interest rates is probably one of the most 
important things we can do to help people across this country. It is 
money in the pocket of every American.
  Mr. President, we need to balance the budget. The American people 
want us to balance the budget. But the only way to ensure that we 
really get there is to pass the balanced budget amendment.
  The PRESIDING OFFICER. The Senator has spoken for 2 minutes.
  The Senator from Vermont is recognized.

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