[Congressional Record Volume 143, Number 70 (Friday, May 23, 1997)]
[Senate]
[Page S5100]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   FISCAL YEAR 1998 BUDGET RESOLUTION

  Mr. McCAIN. Mr. President, today I voted with the majority of my 
colleagues in supporting the bipartisan budget agreement embodied in 
the Fiscal Year 1998 Budget Resolution. While I have serious concerns 
about several aspects of this agreement, I am hopeful that time will 
prove me wrong and the American people will actually reap the benefits 
of permanent tax relief and deficit reduction that are promised in this 
agreement.
  First, I want to thank my colleague, Senator Domenici, for his hard 
work and excellent management of this difficult bill. In particular, I 
am grateful for his cooperation and support for my amendment regarding 
concerns about overly optimistic estimates of revenue from the future 
auction of broadcast spectrum. I am committed to enacting legislation 
to mandate these auctions over the next 5 years, but I am very 
concerned that this budget assumes much greater revenues from spectrum 
sales than can reasonably be anticipated at this time.
  Both Senator Domenici and I agree that spectrum auctions will raise a 
considerable amount of revenue for the Treasury. However, we also share 
the common concern that auctions depend on supply and demand, and 
therefore, the revenue received will undoubtedly fluctuate from today's 
estimates.
  The amendment that Senator Hollings and I offered simply states, that 
if the revenue from future sales falls short of the estimates in the 
resolution, deficit reduction targets will not be met. In that event, 
my amendment would require the Senate to find other savings or revenue 
to ensure that we stay on track in eliminating annual budget deficits 
by 2002. Senator Domenici's support for this amendment was critical to 
its adoption by a vote of 84 to 15. I am counting on him to work with 
Senator Hollings and me to identify spending cuts in the event spectrum 
sales fall short of the revenue estimates in the resolution.
  Mr. President, I have listened carefully to my colleagues who have 
discussed problems with the economic estimates underlying this plan. I, 
too, was disturbed when the Congressional Budget Office released a new 
estimate of future tax revenue just hours before the President and the 
Congressional negotiators on this balanced budget deal announced a 
final deal. While time may validate CBO's more optimistic estimates, 
the sudden announcement of an additional $225 billion in taxes was 
disconcerting, to say the least. While our economy's performance in 
recent months could very well justify a near-term revenue increase, I 
am concerned that the high rates of economic growth forecast into the 
next century might be too optimistic. More importantly, this tax 
windfall could hamper efforts in the near term to reduce both 
discretionary and mandatory Federal spending.

  Mr. President, under the plan in this resolution, we will continue to 
carry an annual deficit for the next 4 years. Our Nation's burden of 
debt will increase to $6.5 trillion by the year 2002. Annual 
appropriations spending will continue to increase under the plan in 
this resolution. I hope the Congress will resist the temptation to 
spend up to the limits in this resolution, and will instead work to 
advance the date when our budget is in balance and we begin to whittle 
away at the national debt.
  The most important and promising aspect of this resolution is its 
promise of permanent tax relief for Americans. The resolution sets up a 
procedure for swift enactment of a bill to provide tax relief that will 
create jobs and provide the fuel for even greater economic growth in 
our Nation.
  The $500-per-child tax credit will give immediate and much-needed 
relief to middle- and low-income families. Capital gains and estate tax 
relief will spur investment in new enterprises and reinvestment in 
family and small businesses. Until this agreement, the President had 
been implacably opposed to these profamily and pro-small-business tax 
reforms. Early enactment of these tax relief measures should be the 
first order of business for the Congress under this agreement.
  Mr. President, in the 15 years I have spent in the Congress, I have 
seen many plans and proposals to balance the budget. Yet, today, our 
Nation bears the financial burden of a $5.3 trillion debt. Yet, I voted 
for this plan because I remain hopeful that the Congress and the 
President are committed to both the letter and the spirit of the 
agreement reached just a few weeks ago. I look forward to working with 
my colleagues to enact the much-needed tax reform envisioned in this 
resolution and to ensure we carry out the terms of this agreement to 
achieve a balanced budget by the year 2002.

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