[Congressional Record Volume 143, Number 156 (Saturday, November 8, 1997)]
[Extensions of Remarks]
[Page E2225]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        THE NATIONAL DIVIDEND PLAN--AN IDEA WHOSE TIME HAS COME

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                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                        Friday, November 7, 1997

  Mr. CRANE. Mr. Speaker, this body has spent a good deal of time in 
recent years trying to come up with ways to balance the budget--much of 
it to no avail. The good news is that the Treasury Department announced 
that the end of the 1997 fiscal year brought the smallest budget 
deficit in ages--$22.6 billion. The bad news is that Washington can 
claim little credit for this deficit reduction. The credit should go to 
American taxpayers prospering in a strong and dynamic U.S. economy and 
pumping more revenue into the Treasury than many Washington policy 
wonks predicted. Nevertheless, a balanced budget is finally in sight 
for the first time since 1969.
  Now that Washington may soon see a budget surplus, a number of bills 
have been introduced in Congress in an effort to contribute to the 
debate on how that surplus should be spent. The leading bills propose 
to use part of the surplus to pay down the enormous Federal debt while 
using the rest to provide tax relief. I have cosponsored one of these 
bills and believe very strongly that we must protect the budget surplus 
from Washington's big spenders.
  It is in this context that I would encourage Members to look at a 
bill I introduced earlier this year, H.R. 2329, the National Dividend 
Act of 1997. The proposal upon which this bill has been crafted has 
been around for some time, and the concept has been favorably received 
by President Ronald Reagan, the National Commission on Economic Growth 
and Tax Reform--the Kemp Commission--and various congressional 
committees. The dividend plan has, over the years, enjoyed the support 
of a bipartisan and ideologically diverse group of Members. At one 
time, it was introduced by our former colleague Guy Vander Jagt and, 
most recently, our colleague Billy Tauzin introduced the plan. I was a 
cosponsor of these bills and now Mr. Tauzin has joined me as a 
cosponsor of H.R. 2329.
  The National Dividend Act of 1997 is the latest incarnation of a plan 
developed by John H. Perry, Jr., a businessman and philanthropist. Mr. 
Perry's idea was to give Americans an incentive to be involved in the 
Federal budget process by giving voters a National Dividend once the 
Federal budget is in balance. Much like a profitable business shares 
its economic successes with its shareholders in the form of dividends, 
the National Dividend will share the economic prosperity of a balanced 
budget and fiscal restraint with those Americans who participated in 
the democratic process which led to the balanced budget.
  To accomplish this goal, the bill first establishes a cap on Federal 
spending at the current level for 5 years or until a surplus is finally 
achieved. Based on the current budget estimates, Congress could bring 
about a surplus as early as next year.
  Next, the bill creates a National Dividend Trust Fund by setting 
aside tax dollars from the general fund of the Treasury eventually 
equal to the revenue raised by the corporate income tax as well as 
selected other excise and tariff revenues. Once the fund reaches 100 
percent of the specified revenue, disbursements will be given in equal 
amounts to all registered voters in years in which the Federal budget 
is in surplus. If the budget is not balanced, revenues in the fund can 
be used to eliminate the deficit.
  The bill also not only eliminates the tax on corporate dividends, but 
also the National Dividend. To keep a future Congress from abusing this 
program, safeguards have been built into the plan. First, the corporate 
tax rate will be frozen at its current level. Second, a two-thirds 
majority vote of both Houses will be necessary to increase taxes. Short 
of a declared war, a future tax and spend Congress will be restrained 
from raising taxes simply to finance the National Dividend Trust Fund.
  I commend the National Dividend Act of 1997 to the attention of my 
colleagues and urge them to support the bill as we work to put the 
Nation's fiscal house in order.

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