[Congressional Record Volume 144, Number 2 (Wednesday, January 28, 1998)]
[Extensions of Remarks]
[Pages E45-E46]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           THE 105TH CONGRESS

                                 ______
                                 

                          HON. LEE H. HAMILTON

                               of indiana

                    in the house of representatives

                      Wednesday, January 28, 1998

  Mr. HAMILTON. Mr. Speaker, I would like to insert my Washington 
Report for Wednesday, November 26, 1997 into the Congressional Record.

                The First Session of the 105th Congress

       The first session of the 105th Congress ended on November 
     13, one of the earliest adjournments in decades. There is a 
     strong feeling in Congress that the more we stay at work the 
     less the public likes us, and that may be reflected in the 
     early adjournment date. The first half of the year was 
     productive, but in the second half Congress was increasingly 
     deadlocked and partisan. The session was marked by one major 
     legislative accomplishment, a few more modest ones, and much 
     unfinished business left over for next year.
       Balanced Budget Agreement: The most important achievement 
     of this session of Congress was the deal to balance the 
     federal budget. A balanced budget agreement has long eluded 
     policymakers, and for the past several years deficit politics 
     has dominated the congressional agenda. The 1993 deficit 
     reduction package, which I supported, has helped reduce the 
     deficit from a record $290 billion in 1992 to $23 billion for 
     1997. The balanced budget package approved in July would 
     finish the task and produce a balanced budget by 2002, if not 
     sooner. If the government has to borrow less to finance 
     deficits, then pressure on interest rates will lessen, and 
     many things--from home mortgages to care loans--will be made 
     cheaper. This budget deal made history and both parties 
     deserve some credit for it.
       The budget package also included provisions that fulfilled 
     the objectives of some politicians who wanted middle-class 
     and capital gains tax cuts, and other politicians who wanted 
     increased aid for education and health insurance for poor 
     children. Although the package did contain major budget 
     savings from trimming payments to Medicare

[[Page E46]]

     providers and reining in discretionary spending, the 
     agreement was basically made possible by the sudden discovery 
     of $225 billion in new revenue from the strong growth of the 
     U.S. economy.
       Many taxpayers will benefit from the tax breaks in the 
     budget package. A new individual retirement account, the Roth 
     IRA, was established and regular IRAs were expanded. Most 
     families with children under 17 got a $400 per child tax cut 
     rising to $500 in 1999. Eleven new educational tax cuts will 
     become available. Capital gains taxes will be lower and the 
     amount of inheritance exempted from estate taxes will rise 
     for family farms and small businesses to $1.3 million.
       Although the budget package was disappointing in pushing 
     off the whole question of decisive entitlement reform, it did 
     improve the short-term outlook for Medicare--keeping it 
     healthy for the next decade. Medicare beneficiaries will have 
     the option of enrolling in a managed care plan, will receive 
     expanded preventive care benefits, and face somewhat higher 
     premiums for doctor services. In addition, the budget package 
     provides $24 billion to states to expand their health 
     coverage to low-income uninsured children.
       Other Measures Passed: The 105th Congress started with an 
     explosion of activity on ethics. Speaker Gingrich was 
     reprimanded and fined--the strongest punishment ever given by 
     the House to its presiding officer. The House simply did not 
     look good in the way it handled the investigation.
       The Senate approved a treaty to ban the production and use 
     of chemical weapons, and the House rejected an attempt to 
     punish China by ending its normal trade status. Some of the 
     welfare benefits that were cut to illegal immigrants were 
     restored, and Congress avoided deportation of Central 
     American refugees who fled during civil strife.
       Congress passed legislation to overhaul Amtrak, clearing 
     the way for the release of $2.3 billion in subsidies. It also 
     approved legislation to speed adoption of children in foster 
     care and to speed up Food and Drug Administration approval of 
     new drugs and medical devices. It also passed a ban on 
     ``partial-birth'' abortions, which the President vetoed. It 
     took on some of the cost burdens of the District of Columbia 
     while reducing local powers, and it approved a new gold-
     colored dollar coin and 50 new quarters commemorating each 
     state. The President and Congress struck a compromise on the 
     2000 census, allowing the Administration to experiment with 
     statistical sampling while giving opponents opportunity to 
     challenge it in court. This session Congress did manage to 
     process and negotiate all of its fiscal year 1998 
     appropriation bills without vetoes or threatened government 
     shutdowns.
       Unfinished Business: Further action is needed on a bill 
     passed by both houses to loosen federal controls over public 
     housing. The House approved a bill to create an outside 
     management board for the IRS and to strengthen taxpayer 
     protections, but the Senate has not yet taken it up. Congress 
     delayed field testing of President Clinton's proposal for 
     national math and reading tests while alternatives are 
     considered.
       As usual, the first session of Congress left a long list of 
     bills not acted upon. In a stunning defeat to the President, 
     Congress shelved fast-track trade negotiating authority in 
     the face of likely defeat by the House. Neither house passed 
     campaign finance reform or legislation to implement and 
     possibly broaden the proposed deal reforming the tobacco 
     industry. Both houses put off until next year a six-year 
     reauthorization of transportation policy.
       Congress did not pay overdue U.S. dues to the United 
     Nations, provide new credit for the International Monetary 
     Fund, or reorganize the U.S. foreign policy agencies. Other 
     measures awaiting action are Superfund reform, Social 
     Security privatization, tax reform, product liability, clean 
     air, nuclear waste, endangered species, education savings 
     accounts, NATO expansion, and troops in Bosnia.
       Conclusion: With the huge to-do list awaiting Congress when 
     it returns in January, any grade after the first session has 
     to be ``incomplete.'' The actual accomplishments of the 
     session are modest, perhaps even below average. Even the 
     budget agreement does less than proponents claim. The large 
     tax cut was mainly for better-off taxpayers. And to balance 
     the budget, Congress mainly coasted on a very strong economy 
     and postponed many of the specific spending cuts for another 
     day. That's always the easy way to cut the budget.
       The closing weeks of the session saw a return to sharp 
     partisanship, as the extreme elements of each party got fed 
     up with the cooperation that marked the first half of the 
     year. As we begin the second session of the 105th Congress, 
     that partisanship might well continue, making action on the 
     important issues facing Congress all the more difficult.

     

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