[Congressional Record Volume 144, Number 10 (Wednesday, February 11, 1998)]
[Extensions of Remarks]
[Pages E149-E150]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                     TAXPAYER REPAYMENT ACT OF 1998

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                          HON. ASA HUTCHINSON

                              of arkansas

                             HON. ROY BLUNT

                              of missouri

                    in the house of representatives

                      Wednesday, February 11, 1998

  Mr. HUTCHINSON. Mr. Speaker, my colleague, Mr. Blunt, and I, would 
like to point out that over a year and a half ago, an historic 
agreement was reached under which lawsuits brought by forty states 
against the tobacco industry would be settled, the tobacco industry and 
regulation thereon would be restructured, and underage smoking would be 
targeted for reduction and eventual elimination. Today we are 
introducing legislation that guarantees that the estimated $386.5 
billion to be paid by the tobacco industry under this settlement will, 
indeed, compensate states and individuals for smoking-related health 
costs and reduce rates of teen smoking, rather then perpetuate the 
cancerous growth of big government.
  The Taxpayer Repayment Act of 1998 mandates that money collected by 
the federal government from any tobacco settlement be used to fund only 
those programs specifically authorized in federal legislation 
implementing provisions of the national settlement. Any revenue 
collected beyond what is spent on those specifically-authorized 
programs--programs that include, but are not limited to youth anti-
smoking campaigns, Medicaid reimbursement, FDA regulatory reform, 
public health programs, compensation to growers, and litigant 
reimbursement--will be used to pay down the national debt and provide 
tax relief to all Americans.
  Mr. Speaker, the American people have been footing the bill for 
tobacco-related health costs for far too long. It is only fair that we 
ensure that this settlement will provide a guarantee that they will be 
reimbursed for their troubles and not burdened with bigger government. 
The Taxpayer Repayment Act will do this. It will help protect our 
nation's children from the ravages of smoking, but it will also protect 
American citizens against the equally insidious cancer of bigger 
government and heavier taxation. Mr. Speaker, this is a reasonable and 
equitable bill, and we would urge our colleagues to support it.

            Hutchinson-Blunt Taxpayer Repayment Act--Summary

       The Taxpayer Repayment Act guarantees that if a global 
     tobacco settlement is enacted into law, health care, youth 
     smoking cessation, and other programs authorized by the 
     implementing legislation may be fully funded. At the same 
     time, it ensures that extra revenue is used to reimburse 
     Americans for their expenditures on tobacco-related health 
     care costs and not burden them with bigger government and 
     higher taxes.

[[Page E150]]




                 section 1--restriction of new programs

       Prohibits money received by the federal government from a 
     global tobacco settlement or from any state settlement from 
     being used to create or maintain any new federal programs 
     unless they are specifically authorized by federal 
     legislation implementing the settlement.
       Prohibits tobacco settlement money from being used to 
     expand currently-existing programs unless such expansion is 
     specifically authorized in the terms of the federal 
     legislation implementing the settlement.


                   section 2--use of excess revenues

       Directs revenues in excess of those used for programs 
     specifically authorized in the terms of legislation 
     implementing any portion of a global tobacco settlement 
     toward tax relief (1/3) and debt repayment (2/3).
       Creates a ``Tax Cut Offset Trust Fund'' into which the 1/3 
     slated for tax relief will be placed for use as Congress, by 
     law, directs.


                 section 3--specifics of debt reduction

       Exchanges marketable government securities for unmarketable 
     securities currently in the Social Security and other Trust 
     Funds, thereby repaying these trust funds and reducing the 
     national debt.
       Requires that after all Trust Fund accounts are 
     replenished, excess revenues be used for direct payments on 
     the national debt.


             section 4--prohibition on use of excess funds

       Prohibits excess revenues from being counted as new budget 
     authority, outlays, receipts, deficit or surplus, for budget 
     estimates.
       Requires that when funds are expended from any trust fund 
     into which tobacco settlement money is placed, a 
     corresponding amount of marketable securities in those funds 
     be sold, and the trust fund balance reduced accordingly.

     

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