[Congressional Record Volume 144, Number 130 (Friday, September 25, 1998)]
[House]
[Pages H8722-H8732]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROVIDING FOR CONSIDERATION OF H.R. 4578, PROTECT SOCIAL SECURITY
ACCOUNT, AND H.R. 4579, TAXPAYER RELIEF ACT OF 1998
Mr. SOLOMON. Mr. Speaker, by direction of the Committee on Rules, I
call up House Resolution 552 and ask for its immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 552
Resolved, That upon the adoption of this resolution it
shall be in order without intervention of any point of order
to consider in the House the bill (H.R. 4578) to amend the
Social Security Act to establish the Protect Social Security
Account into which the Secretary of the Treasury shall
deposit budget surpluses until a reform measure is enacted to
ensure the long-term solvency of the OASDI trust funds. The
bill shall be considered as read for amendment. The amendment
recommended by the Committee on Ways and Means now printed in
the bill shall be considered as adopted. The previous
question shall be considered as ordered on the bill, as
amended, and on any further amendment thereto to final
passage without intervening motion except: (1) one hour of
debate on the bill, as amended, equally divided and
controlled by the chairman and ranking minority member of the
Committee on Ways and Means; (2) a further amendment printed
in the Congressional Record and numbered 1 pursuant to clause
6 of rule XXIII, if offered by Representative Rangel of New
York or his designee, which shall be in order without
intervention of any point of order, shall be considered as
read, and shall be separately debatable for one hour equally
divided and controlled by the proponent and an opponent; and
(3) one motion to recommit with or without instructions.
Sec. 2. After disposition of the bill (H.R. 4578), it shall
be in order without intervention of any point of order to
consider in the House the bill (H.R. 4579) to provide tax
relief for individuals, families, and farming and other small
businesses, to provide tax incentives for education, to
extend certain expiring provisions, and for other purposes.
The bill shall be considered as read for amendment. The
amendment recommended by the Committee on Ways and Means now
printed in the bill, modified by the amendment printed in the
report of the Committee on Rules accompanying this
resolution, shall be considered as adopted. The previous
question shall be considered as ordered on the bill, as
amended, and on any further amendment thereto to final
passage without intervening motion except: (1) one hour of
debate
[[Page H8723]]
on the bill, as amended, equally divided and controlled by
the chairman and ranking minority member of the Committee on
Ways and Means; (2) a further amendment printed in the
Congressional Record and numbered 1 pursuant to clause 6 of
rule XXIII, if offered by Representative Rangel of New York
or his designee, which shall be in order without intervention
of any point of order, shall be considered as read, and shall
be separately debatable for one hour equally divided and
controlled by the proponent and an opponent; and (3) one
motion to recommit with or without instructions.
Sec. 3. (a) In the engrossment of H.R. 4579, the Clerk
shall--
(1) add the text of H.R. 4578, as passed by the House, as
new matter at the end of H.R. 4579;
(2) conform the title of H.R. 4579 to reflect the addition
of the text of H.R. 4578 to the engrossment;
(3) assign appropriate designations to provisions, and
conform cross references, within the engrossment; and
(4) conform provisions for short titles within the
engrossment.
(b) Upon the addition of the text of H.R. 4578 to the
engrossment of H.R. 4579, H.R. 4578 shall be laid on the
table.
{time} 0930
The SPEAKER pro tempore (Mr. Kolbe). The gentleman from New York (Mr.
Solomon) is recognized for 1 hour.
Mr. SOLOMON. Mr. Speaker, for purposes of debate only, I yield the
customary 30 minutes to the gentlewoman from Rochester, New York (Ms.
Slaughter), pending which I yield myself such time as I may consume.
During consideration of this resolution, all time yielded is for the
purpose of debate only.
Mr. Speaker, the resolution before us is a structured rule providing
for consideration of two bills, H.R. 4578, the Protect Social Security
Account, and H.R. 4579, the Taxpayer Relief Act of 1998. These are two
extremely important measures for the American people.
First, the rule provides for consideration of H.R. 4578 in the House
without intervention and point of order. The bill is considered as read
and the Committee on Ways and Means amendment in the nature of a
substitute now printed in the bill is considered as adopted.
The rule further provides for one hour of debate, equally divided and
controlled by the chairman and the ranking minority member of the
Committee on Ways and Means, the committee of jurisdiction.
The rule provides for consideration, without intervention of any
point of order, of an amendment printed in the Congressional Record and
numbered 1, if offered by the gentleman from New York (Mr. Rangel) or
his designee, which shall be considered as read and shall be debatable
for 1 hour, equally divided and controlled by the proponent and an
opponent.
Finally, the rule provides one motion to recommit with or without
instructions.
Secondly, Mr. Speaker, after the disposition of H.R. 4578, the rule
then provides for consideration of another bill, which is H.R. 4579,
again, without intervention of any point of order. The bill will be
considered as read, and the Committee on Ways and Means amendment in
the nature of a substitute now printed in the bill, as modified by the
amendment printed in the Committee on Rules report accompanying this
rule, is considered as adopted.
The rule further provides for one hour of debate equally divided and
controlled by the chairman and ranking minority member of the Committee
on Ways and Means.
The rule further provides for consideration, without intervention of
any point of order, of an amendment printed in the Congressional Record
and again numbered 1, if offered by the gentleman from New York (Mr.
Rangel), which shall be considered as read and shall be debatable for 1
hour, equally divided and controlled by, again, the proponent and the
opponent.
The rule also provides one motion to recommit with or without
instructions.
Finally, the rule provides that in the engrossment of H.R. 4579, the
Clerk shall add the text of H.R. 4578, as passed by the House, and that
upon the addition of the text, H.R. 4578, shall be laid on the table.
Mr. Speaker, the rule and the two bills before us demonstrate that we
can achieve two very, very important goals: We can save Social
Security, and we can cut taxes.
The package before this House today, and Members ought to look at
this, because the American people are looking at it the taxpayers of
this Nation are looking at it the package before the House today sets
aside 90 percent of the projected budget surplus over the next 10
years. We are very, very fortunate today that based on the philosophy
of Ronald Reagan and Reaganomics, we have had this surging economy now
for all these years, very unusual in the history of this Nation. But it
has happened because of major, major tax cuts that were implemented way
back in 1981. That pumped money back into the pockets of people so that
they could either spend it on things they wanted to spend it on,
whether it was on buying a house, buying a car, educating their
children, or saving it so that they would have monies available to them
later on when they got around to retiring.
So let me just repeat one more time, this package before the House
today sets aside 90 percent of all of that new projected surplus that
is rolling into the coffers of this Nation, and that is about $1.4
trillion over the next 10 years. That money is set aside to help
replace the monies that have been legitimately and legally stolen out
of the Social Security trust funds.
Now, the remaining 10 percent of that surplus, which is only $80
billion of the $1.4 trillion, $80 billion is used to provide tax relief
to families, to farmers, to small businesses across this Nation.
Mr. Speaker, the issue before the House today is really quite simple.
Do we believe that the American people, both families and businesses,
deserve lower taxes? It is as simple as that. Of course, we know what
the answer is. It is unequivocally yes.
As the chairman of the Committee on Ways and Means said so eloquently
during debate in my Committee on Rules meeting yesterday, when
testifying before our committee, he said the tax burden on American
families is higher today than at any previous point in our peacetime
history.
That means we are taking more money out of the pockets of people than
ever in peacetime before. This vibrant domestic economy, driven by the
hard work of both main street and Wall Street, Mr. Speaker, deserves a
break. A tax cut now will provide taxpayers with more flexibility in
establishing important consumer and investment priorities for families.
For instance, let me give Members an example, the Taxpayer Relief Act
of 1998 will provide marriage tax relief for over 48 million married
taxpayers. How many? Forty-eight million married taxpayers will receive
an average tax cut of $243 per tax return.
You may not think that is much, Mr. Speaker, but I had five children.
And my wife and I were struggling for a long time. And lo and behold, I
came to this Congress about 20 years ago, I do not know what the salary
was in those days, about $37,000 or something, but we struggled to
educate those kids. I will tell you, do you know what $247 extra means?
It means an awful lot. It means an awful lot to my family. It would
have meant a lot to us.
Six million married taxpayers who currently itemize deductions on
their returns will no longer need to do so. That means you do not have
to go out and hire an accountant. Do you know what it costs the average
family, a young couple, because of the complicated tax system? They are
going to go out and spend 2-, 3-, 4-, 5-, $600, maybe even $1,000, if
they happen to be a small businessman or family running a small
business. And in this bill, these 6 million married taxpayers who
currently itemize deductions on their returns will no longer need to do
so. This represents tremendous simplification.
Many of the provisions of this bill simplify the tax code and result
in the elimination of several tax forms that taxpayers currently are
required to file.
Again, if you are a small businessman, like I was, you find the cost
of doing business is so great because of all of the Federal and State
and county, town, city, village, and local mandates. Aything we can do
to relieve that is going to help make these businesses and these
families prosper. That is what this bill does.
In addition, 68 million taxpayers are provided tax relief by
excluding from taxation a portion of the interest and
[[Page H8724]]
dividend income received. Let me repeat that. Sixty-eight million
taxpayers are provided tax relief by excluding from taxation a portion
of that interest and dividend income received.
This will provide very visible tax relief for families by allowing
them to keep portions of interest income that they now have to pay
taxes on, even from small savings accounts. You have a small savings
account with maybe $1,000 or $2,000, right now you have to pay 100
percent tax on that. This is going to give relief to these families,
tax free, and simplify their tax filing.
And I think this is more important, because we have heard a lot of
rhetoric, every morning we have one-minutes in this House, where
Members can come down. And the Democrats line up over here and the
Republicans over here, and we hear all this rhetoric. I hope that we
will follow my infinite wisdom and do away with those things or put
them at the end of the day and not have it stir things up in the
morning. We have heard a lot of rhetoric about Social Security.
Let me tell you what this bill does for Social Security, this tax cut
bill. This bill increases the Social Security earnings limit, thereby
increasing the amount of money seniors can earn without losing Social
Security benefits, something I have been trying to accomplish in this
body for years.
My wife is drawing a Social Security check. She worked all of her
life, and now she is in a part-time business. She sells real estate.
And now she has earned more than the $14,500 limit, and she has had to
pay back the meager I think it is about $4,000 that she had gotten she
has to pay all that back. Yet that was from a forced savings account.
She was forced to put aside, in Social Security all these years, her
own money. Now the government is taking it away from her.
Well, this year that limit is $14,500. And now, under this bill, next
year we are raising it up to $17,000. That means my wife, your wife,
all the people out there on Social Security now can earn $17,000 and
not pay that two-for-one penalty that should not be there at all. Then
the following year, 2 years later, the limit is going to be raised to
$18,500.
Do you not think that is going to make a difference to people who are
living on a fixed income? Then 3 years later, in other words, in the
total of a three-year period, we are raising that to $26,000. That
means that a man and wife can go out and they can earn a little bit of
extra money, and yet they will not have to pay a penny of their Social
Security back if they earn less than $26,000. That is what this bill
does.
Now, another major tax relief is the 100 percent health insurance
deduction for the self-employed and farmers. It is accelerated to take
full effect on January 1, 1999, providing 3.3 million taxpayers an
average tax benefit of $382 in 1999, $382 into the pockets, again, of a
couple who own a small business or a farmer who is trying to live on
about $25,000 in income.
Credit under the estate tax, or what is otherwise called the death
tax, is accelerated to take full effect on January 1, 1999. Again, I do
not know about all the rest of my colleagues, but I represent the
Hudson Valley in upstate New York. It has the Catskills on one end, the
Adirondacks on the other. In between are very, very small dairy farms,
50 head each. It is the 20th largest dairy producing district in
America. One would not think that in New York, would they, from
Arkansas over there? And we have apple orchards. But these people have
trouble keeping the new generation on the farm because it is so
difficult, first of all, even to make a living. And secondly, they
cannot even inherit the farm because of the inheritance tax.
What this does is move the credit under the estate tax up to make it
fully effective January 1, 1999. And it means that those farms now are
going to be turned over to the children. And we are going to be able to
keep them operating.
This, combined with other small business and agriculture provisions,
will provide needed and immediate tax relief to many family-owned small
business and family farms, many.
Mr. Speaker, key tax relief is also provided this is something that
is very close to me to military personnel by making it easier for our
Nation's men and women in uniform to qualify for the capital gains tax
relief on the sale of a home due to the fact that their duties often
require them to be away from home for long periods of time. They lose
the capital gains benefit that the ordinary citizen would have when
they sell their home. Civilian homeowners can take advantage of it. Our
military personnel cannot do that. So that is a glitch in the law, and
we are making a correction.
The Taxpayer Relief Act also will extend various expiring tax
incentives necessary to grow the economy, such as research and
experimentation tax credits, very, very important.
It also extends the work opportunity tax credit and the welfare to
work credit, which is extremely important.
Finally, the bill before us today includes landmark language which
authorizes the creation of 20 renewal communities designed to help
fight poverty.
{time} 0945
This is extremely important to Members on both sides of the aisle.
Patterned after the work of the gentleman from Oklahoma (Mr. Watts),
the gentleman from Missouri (Mr. Talent) and the gentleman from
Illinois (Mr. Davis), these communities would be eligible for capital
gains tax relief, increased expensing for small businesses, wage
credits for workers, deductions for cleaning up brownfields--very, very
important--a commercial revitalization tax credit, and tax incentives
for Family Development Accounts. This is an historic initiative aimed
at addressing the travesty in impoverished rural and urban areas
throughout our country.
Mr. Speaker, in closing let me just address those of my colleagues
who claim that the surplus tax revenue generated by hard-working men
and women of this country should be kept here in Washington and not
used for tax cuts. This is something that just gets under my skin.
First, let us remember that the tax revenue that pours into this city
from all over this country does not belong to us, it does not belong to
the government. Rather, it belongs to those who sent it here, the
taxpayers of this Nation. When the taxpayers send the government more
money than is necessary to run it, the government is duty bound to
return that excess.
Second, everybody knows, and, believe me, all Members know it we are
going through it right now everybody knows that any dollar not nailed
down to a Federal program in Washington, D.C. is a spent dollar. We
know the Congress is going to spend those dollars. In order to prevent
the frivolous spending of taxpayer dollars the government does not
need, we must cut taxes and give them back to the American people. That
is exactly what this bill does.
Cut taxes and save Social Security by voting for this rule and for
these two bills. It is the responsible thing to do. My grandson told me
that this morning. He said, ``Granddad, it's the right thing to do.''
Ladies and gentlemen, it is the right thing to do. Come over here and
vote for this rule.
Mr. Speaker, I reserve the balance of my time.
Ms. SLAUGHTER. Mr. Speaker, I thank the gentleman from New York for
yielding me the customary 30 minutes and I yield myself such time as I
may consume.
(Ms. SLAUGHTER asked and was given permission to revise and extend
her remarks.)
Ms. SLAUGHTER. Mr. Speaker, I rise in strong opposition to this rule.
The rule sets the stage for Congress to take up a destructive,
irresponsible set of proposals that will simultaneously raid the Social
Security trust fund and explode the deficit. This package threatens to
destroy our hard-won budgetary discipline and send us, like Alice in
Wonderland, through the looking glass into a place where long-standing
budget rules do not apply and a budget deficit is called a surplus.
This rule will allow Congress to consider H.R. 4578 and H.R. 4579,
the Tweedledum and Tweedledee of budget politics. The first bill, H.R.
4578, would set aside a portion of the Social Security surplus in a
mythical special reserve account where it would supposedly be saved.
The second bill, H.R. 4579, would use the remainder of the Social
Security surplus to pay for tax cuts. It is bad enough that these
proposals are irresponsible and shortsighted. To make
[[Page H8725]]
matters worse, we are being denied a full and open debate on them. The
modified closed rule does a disservice to the American people by
barring the gentleman from Texas (Mr. Stenholm) from offering his
alternative. The Stenholm proposal would cut taxes without raiding
Social Security or threatening to increase the deficit. Unfortunately
this fiscally responsible bill was banned from the House floor in favor
of the majority's reckless plan to raid future retirees' savings. In
addition, constructive proposals sponsored by the gentlewoman from
California (Ms. Sanchez) and the gentleman from Connecticut (Mr.
Maloney) were denied the opportunity for floor consideration.
Mr. Speaker, H.R. 4578 and H.R. 4579 illustrate how the majority is
indulging in creative accounting to invent a surplus that they can use
to justify tax cuts. Over the next five years our Nation is projected
to have a Social Security surplus of $657 billion and a budget deficit
of $137 billion. The majority is using the Social Security surplus to
cancel out that budget deficit and declare a total budget surplus of
$520 billion free for the taking.
But as my colleagues can see, the surplus is not a real surplus. It
is a mirage. It is a surplus of Social Security taxes which we need to
hold in reserve for that approaching day when Social Security begins to
have financial problems. The Federal budget will remain in deficit or
just barely in balance until at least the year 2005 even assuming the
economy remains as robust as it is now. Federal Reserve Chairman Alan
Greenspan has warned repeatedly that our economy could take a downturn
which could wipe out the surplus and multiply the cost of the proposed
tax cut.
H.R. 4578 places 90 percent of the Social Security surplus in a
reserve account in the U.S. Treasury. This account is nothing but a
budget gimmick. There is nothing to prevent Congress from spending
these funds in the future. If the majority is spending the surplus on
tax cuts now, what will stop them in the future for using it for other
purposes? The majority is referring to their proposal as the 90-10
plan. I would suggest that that means if you live to be 90 you might
get 10 percent of the Social Security benefits you are due.
Democrats are committed to reserving all, 100 percent, of the surplus
for Social Security. Our alternative will place the entire surplus in a
special account in the New York Federal Reserve Bank where Congress is
completely unable to reach it. This is the only proposal that
guarantees the surplus will be used solely to save Social Security and
not for politically irresistible goodies.
Democrats support tax cuts. Most of the proposals in the majority's
package were originally Democrat bills. But we will not cut taxes
without paying for them. The Democratic alternative includes all the
same tax cuts but provides they will not take effect until Congress has
enacted legislation to preserve Social Security. Social Security is a
Democrat program, and we have always kept our promises to the Nation's
seniors. We will again before we start making new promises to
Americans. The Democratic alternative enacts tax relief and saves
Social Security.
I would like to note that the majority's misguided proposal has no
chance of becoming law. The President has vowed to veto any proposal
that raids the Social Security surplus to pay for tax cuts. Americans
should recognize this tax bill for the cynical election-year ploy that
it is. Democrats will protect Social Security while Republicans protect
their majority.
We should save Social Security first. This bill is an unwelcome
flashback to the Reagan era of deficit spending. The majority's
proposal places in jeopardy the Social Security benefits of over 44
million older Americans, many of whom rely on their benefits as their
sole source of income. While we would all like to cut taxes, we cannot
do so at the expense of the balanced budget and the Social Security
trust fund. We owe our senior citizens and all Americans better than
that.
Mr. Speaker, I yield 2 minutes to the gentleman from Maryland (Mr.
Wynn).
Mr. WYNN. Mr. Speaker, I thank the gentlewoman for yielding time. If
it is an election year, it must be time for a tax cut. At least that is
what the Republicans think. And they do not really care how they
finance it. We on the Democratic side like tax cuts, too. In fact, we
voted for tax cuts last year because they were paid for within the
budget. They were paid for in the context of a balanced budget. This
year, though, the Republicans are not worried about that. They are
going to raid the Social Security trust fund to pay for tax cuts. That
is not right.
The fact of the matter is we do not even have a surplus yet and if we
get one, we do not know how much it is going to be. So we ought to at
least let the ink dry on the surplus before we start giving it away.
More importantly, if the surplus is not as great as we think it will be
or if there is a downturn in the economy, we will not have those
revenues but we will have shortchanged the Social Security trust fund.
Americans believe that Congress ought to deal with the big issues.
The big issue facing our society is how we will deal with Social
Security when the baby boom generation moves into its senior years.
We on the Democratic side have a simple proposition. Any revenue we
get, any and all of that surplus ought to be set aside for that rainy
day. The Republicans are saying, ``Well, let's shave a little bit off
and give it away.'' The problem is, that will raid the Social Security
trust fund and will not maximize the security we ought to provide for
our seniors.
Now, they will come down and tell you, ``We've got this terrible tax
burden and that's what we're really fighting against.'' The fact of the
matter is the economy is doing very well. Unemployment is down,
employment is up, interest rates are down. They say, ``Well, there's a
burden on the average family.'' Let me tell you this: The tax rates on
the average American family are at its lowest point since 1978. We want
to give tax breaks when we can pay for them, but if we cannot pay for
them, we do not believe we ought to jeopardize the Social Security
trust fund. We ought to put all the surplus back into the trust fund to
protect long-term national interests.
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
West Virginia (Mr. Wise).
Mr. WISE. Mr. Speaker, I rise to oppose this rule. We hear a lot
about there being a surplus but the reality is it is in Social
Security. I have the greatest respect and friendship for the
distinguished chairman of the Committee on Rules. He is irrepressible
when it comes to the Reagan years, and certainly President Reagan was a
strong President in many ways. He was also strong because he left us
the strongest deficit in history. We went from $70 billion to $200
billion and deficits as long and far as the eye can see according to a
former Reagan aide.
So what does this bill do? It continues the same pattern, because you
cut taxes, that was part of the Reagan formula, and yet you do not do
anything really about the spending. I do not support election-year tax
cuts that come from Social Security.
Now, they say they are going to put 90 percent of it in a lock box.
But my question is, if you are going to save 90 percent of Social
Security, why not save 100 percent? What happened to that radical idea,
100 percent of Social Security? I support tax cuts but not until Social
Security is preserved.
The irony to this is the American worker pays into Social Security,
you are going to tell them that you are giving them a tax cut and yet
the tax cut is going to come at the price of what they have been paying
into for many years for their retirement.
I look at this, a lot of us, whether we are parents or grandparents
or whatever take our children to McDonald's. And so what this does is,
you drive in, you give them a Happy Meal today, then you take the
hamburger and the fries and what the worker is left with is a plastic
googol toy that after the first five minutes ends up as election-year
junk in the back of the car.
Mr. Speaker, this is simply taking for election-year purposes, giving
a tax cut at the expense of Social Security. What my constituents,
300,000 senior citizens in West Virginia, hundreds of thousands of more
getting ready to retire, what they say is save Social Security first,
then look at the tax situation.
[[Page H8726]]
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
New York (Mr. Rangel).
(Mr. RANGEL asked and was given permission to revise and extend his
remarks.)
Mr. RANGEL. Mr. Speaker, if I could have a statement today on this
rule which I oppose, it would be to my dear friend and fellow New
Yorker (Mr. Solomon). Because the gentleman from New York is leaving
this great body, but he leaves with a great reputation as a feisty
fighter for all of the things that he has believed in all of his life
as a true American and a true Marine. I feel awkward, because having
moved to be the senior member of the Committee on Ways and Means, some
of the ways I used to think have now been replaced by having the
responsibility of not being able to express my liberal ways the way I
used to enjoy them before.
I would believe that if a surplus was there, spend the darn thing.
Put it in education, build some houses, let America's quality of life
be a little better. As far as Social Security is concerned, what the
devil. If we do not have money for the check, the country is not there,
anyway, so forget it.
But that is not the way Americans have been thinking. The Republicans
have been so good at telling us if you do not have the money, you do
not spend it. They have been so good in saying you pay as you go. They
have been so good in saying that we have got budget rules, that you
cannot even do it without violating the very principles of the House.
Yet this rule today would allow us just to waive all of the disciplines
that we have learned to work together in a bipartisan way to respect.
The whole idea of having a tax cut that you cannot pay for is
repugnant to everything I thought Republicans stood for. For those
reasons and others, I oppose the rule.
{time} 1000
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
New Jersey (Mr. Pallone).
Mr. PALLONE. Mr. Speaker, I want to tell my colleagues what my
constituents are saying about this bill and why they want me to oppose
this Republican tax plan.
What they are saying is that a few years ago; I think it was in the
1970s; this Congress passed a tax increase in order to provide more
money for the Social Security Trust Fund through the payroll tax
essentially because there was a recognition that in a few years there
would be a lot more baby boomers who turned 65 and we would need more
money in the Social Security Trust Fund to pay benefits for that baby
boom generation. But that money now is being borrowed by the general
revenue, by the budget in general, used for purposes other than Social
Security, and now we are being told that even though that surplus is
there in the Social Security Trust Fund to be paying benefits in the
future, we are going to take even more of it and spend it on a tax cut
that primarily, I would say, goes to wealthy individuals.
Well, my constituents are saying that that is not fair, it is not
fair to raise taxes on the average guy, on his earnings, on his payroll
tax and then take it away in a tax cut when that money is supposed to
be saved for the future when it has to be paid out in benefits. And my
constituents are saying what Congress is telling me is that the money
is not going to be there to pay out the benefits when I get to be 65
even though I have been paying more to make sure that it is there. And
then they are saying we know what is going to happen in the future. We
are going to have to raise taxes because we have taken the money away
that supposedly we were saving.
So the consequence of this Republican action is that 5-10 years down
the road we are going to have to raise taxes more, most likely, on that
wage earner, on the payroll taxes, to make sure money is there for
Social Security or, alternatively, that there will be pressure to cut
back on Social Security benefits, to cut back on the COLA, to raise the
age before one can get Social Security or to even suggest other kind of
crazy ways to deal with retirement because there is no money in Social
Security.
This is wrong, and that is why we have to vote against this rule and
vote against the Republican tax cuts.
Ms. SLAUGHTER. Mr. Speaker, I yield 1\1/2\ minutes to the gentleman
from Arkansas (Mr. Berry).
Mr. BERRY. Mr. Speaker, I rise today in support of a tax cut but not
to raid the Social Security Trust Fund.
My esteemed colleague from the 17th District of Texas (Mr. Stenholm)
yesterday introduced a rule before the Committee on Rules that would
provide for a tax cut but not to rob the Social Security Trust Fund,
and that is what we should do.
This rule waives the budget rules that got us to the balanced budget;
it throws it out the window. It says what we have been doing is the
wrong thing to do. This is how we get to a $5 trillion debt. We owe the
American people more than this. We owe them more than to rob Peter to
pay Paul.
Yesterday in the Committee on Rules the point was made that was quite
outstanding that said we have got to spend this money before someone
else does. I cannot think of a more ridiculous idea or a less
responsible idea than this.
These folks have a heart as big as a washtub, as they say where I
come from. We are going to rob Social Security on one hand and leave
our constituents in poverty at age 65, but we are going to give them a
small tax cut before we do that.
Let me urge my colleagues to vote against this rule and vote for
responsible fiscal management.
Mr. SOLOMON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I do not think I heard right. The gentleman from
Arkansas said he heard something upstairs that Republicans want to
spend this money before somebody else does.
We want to cut taxes and put the money back into the pockets of
people.
Mr. Speaker, I yield 3 minutes to the gentleman from Michigan (Mr.
Smith), one of the most fiscally responsible Members of this body.
Mr. SMITH of Michigan. Mr. Speaker, first of all, I invite the
gentleman from New York (Mr. Rangel) to come over and join the
Republican party. We still believe in that philosophy that he is
starting to think.
Mr. Speaker, I am disappointed that there is so much rhetoric, and we
are shy on some upright honesty on what is happening in Social
Security.
First of all, let me suggest that with a unified budget deficit last
year of over $20 billion, this year, in that same way that we figure
surplus and deficit, we are going to have a surplus of $70 billion. And
let me also suggest that almost every Democrat on that side of the
aisle last year voted for the tax cuts even though we had a much larger
deficit than we do this year. And what happened? Because of the fact
that there is some way to treat taxes to make it more fair to stimulate
the economy we have ended up bringing in more tax revenue this year,
and it has been a stimulus to a stronger economy in this country. That
is part of the solution, long term, to any Social Security solution.
Let me additionally suggest, Mr. Speaker, to whoever might be
listening to our debate, that neither approach, the Rangel amendments,
nor this rule, move in the direction of saving Social Security. All we
are saying is, let us start paying down the public debt a little bit,
and that is good. That is going to help a little bit. But what we are
really going to have to do to save Social Security is to increase the
return on the investment that working men and women in this country are
putting into their Social Security tax.
Right now, Mr. Speaker, the Tax Foundation says that, on average,
they are going to have a negative return on that money that they pay
into Social Security. A negative return; the estimate is between a
negative \1/2\ and a negative 1\1/2\. What we have got to do to save
Social Security is have a better return on that investment. We cannot
continue as a pay-as-you-go program for Social Security. So, all of
this pretense that we are setting the money aside is just that, it is
pretense.
I went to the Committee on Rules, and my amendment in the Committee
on Rules, and that is my disappointment, Mr. Speaker, with the
Committee on Rules; my amendment incorporated my House Bill 4033 that
says from now on when the government borrows money from Social Security
it should be marketable, negotiable
[[Page H8727]]
Treasury bills. It is not that today. They are just blank IOUs, as will
this new account be. It also said that from now on OMB and CBO, the
administration and Congress' budget people, will not consider the
surplus coming into the Social Security Trust Fund as revenue in terms
of defining a deficit or a surplus.
I think the important thing as we start solving Social Security, that
we be up front, that we be honest with the American people.
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
Oregon (Mr. DeFazio).
Mr. DeFAZIO. Mr. Speaker, there is going to be a lot of talk today on
the floor of the House about a surplus. Let us get one thing straight.
There is no surplus. The so-called surplus, 100 percent of it is the
Social Security Trust Fund. We are overcollecting today in Social
Security taxes. Seventy-three percent of Americans pay more in Social
Security taxes to the United States Government than they do income
taxes, with the idea that that money will be available tomorrow and the
day after to pay future Social Security benefits.
But guess what? The Republicans want to spend that money today. They
want to over collect from 73 percent of the American public with the
false promise of Social Security being there in the future, and they
want to spend that money tomorrow in a new tax cut. That is the worst
of bait and switch. At least they could have the guts to do both bills
on the same day and say to the American people, ``Yes, we are spending
your Social Security and tax cuts that will flow to a different group
of people than paying the tax, but we think that's good policy. And
don't worry, we'll somehow honor your benefits 10 and 15 years hence.''
This is bad legislation. The Republicans know it is bad. They want to
give tax cuts. Yes, actually they are not bad tax cuts for the
Republicans, probably the best tax cuts the Republicans have ever
proposed because they are trying to hang Democrats out to dry. But we
are not going to be hung out on the line here. It is the Republicans
that are being hung out because they are spending the Social Security
Trust Funds. They are not protecting the Social Security Trust Funds.
What a magnanimous gesture. They will only spend 10 percent of them,
and they will put the other 90 percent in a phony account in the
Treasury that will be immediately borrowed and spent on other things.
Mr. Speaker, this provides zero protection for Social Security. What
is worse, it spends the Social Security Trust Fund of tomorrow on tax
cuts today.
Ms. SLAUGHTER. Mr. Speaker, I yield 2 minutes to the gentleman from
New Jersey (Mr. Menendez).
(Mr. MENENDEZ asked and was given permission to revise and extend his
remarks.)
Mr. MENENDEZ. Mr. Speaker, I rise against the Republican rule in the
bill because it does not put Social Security first, it does not put
senior citizens in this country first who work to build communities,
families and to protect the country, it does not protect working
families who are paying the FICA taxes for both their future security
and their present security of their parents and grandparents and
because it is fiscally irresponsible.
On the tax bill this rule that we are considering would automatically
adopt a provision to waive the budget law, and what does that law say?
It requires that all tax cuts be fully paid for. The provision is
intended to keep the country, the reason that law exists, is to keep
the country from returning to the days of creating huge tax breaks at
the expense of the deficit in terms of going back to that credit card
mentality.
Instead of following the path of fiscal responsibility, Mr. Speaker,
Republicans have irresponsibly decided to dip into the Social Security
Trust Fund for tens of billions of dollars to pay for the costs of
these tax cuts even before any action has been taken to deal with
Social Security's long-term solvency.
Now where are my friends from the CATs, the conservative action
teams? As my colleagues know, we are constantly talking about being
fiscally responsible. How is it that my colleagues can begin to spend
money, how is it possible to begin to spend money before the ink even
dries on a projected surplus? That is clearly not fiscally responsible.
And this question about a separate account; the separate account has
no lock, has no guarantee, has no provisions to preserve Social
Security. It is fiscally irresponsible, it does not put our seniors
first, it does not put our country first, and it does not continue us
on the path of fiscal stability.
The fact of the matter is, if we want to put our seniors first and
working families, we should reject the rule, reject the bill and adopt
the Democrat proposal.
Ms. SLAUGHTER. Mr. Speaker, I yield 4 minutes to the gentleman from
Texas (Mr. Stenholm).
(Mr. STENHOLM asked and was given permission to revise and extend his
remarks.)
Mr. STENHOLM. Mr. Speaker, I rise in strong opposition to this rule.
All Members who care about fiscal discipline, all Members who care
about the Social Security system, all Members who care about the legacy
we leave for future generations should vote against this fiscally
irresponsible rule.
I was sincerely disappointed that the Committee on Rules choose to
report a rule which did not allow for consideration of the bipartisan
Stenholm-Berry-Neumann amendment which would require that tax cuts be
paid for out of general revenues and prohibits funding a tax cut out of
the Social Security surplus. Once again the Committee on Rules denied a
free and open debate on an issue of which some of us on both sides of
the aisle feel are very important. That is the reason why everyone
should oppose this rule, Mr. Speaker.
The Stenholm-Neumann amendment would establish the common-sense
position that we should wait until a true budget surplus materializes
before tax cuts which are not paid for take effect.
The rule does make in order a Rangel substitute that delays
implementation of the tax cuts until the Social Security trust fund is
restored to actuarial balance. I will support the Rangel substitute
because it would make the underlying bill more responsible and add
meaningful protections for the Social Security trust fund. However, the
Stenholm-Neumann amendment would have set a significantly tougher
standard by requiring us to balance the budget without using the Social
Security trust fund surplus. The vote on the rule will be the only
opportunity Members will have to express support for the principle set
forth in the Stenholm-Neumann amendment that we should not be funding a
tax cut from the Social Security trust fund.
Let me be clear. I, too, support tax cuts, but not if they are paid
for with Social Security Trust Funds. We should not talk about budget
surpluses so long as we are counting Social Security Trust Fund. Under
current projections there is no surplus available to use for tax cuts
unless we are willing to use Social Security Trust Funds.
The substitute amendment that Mr. Neumann and I proposed contained
all of the tax cuts in the package reported by the Ways and Means
Committee, but would add a requirement that any tax cuts which are not
paid for be delayed until we have an on-budget surplus large enough to
pay for the tax cut without relying on the Social Security trust fund
surplus. This amendment would have ensured that the tax cut is not
funded out of the Social Security surplus, and establishes the position
that we should wait until the surplus materializes before tax cuts
which are not paid for take effect.
We should not talk about budget surpluses so long as we are counting
the Social Security trust fund surplus. Under current projections,
there is no surplus available to use for tax cuts unless you are
willing to use the Social Security trust fund surplus.
Over the next 5 years, CBO estimates the surplus of Social Security
Trust Funds will be $520 billion, of which 657 of that 520 is Social
Security Trust Fund. Over the next 10 years, it takes 10 years before
we find $31 billion that are not Social Security Trust Fund.
Enacting a permanent tax cut that is not paid for would result in
continued deficits into the future as far as the eye can see.
In a letter sent our earlier this week, the Concord Coalition warned
us that ``the election year temptation to use Social Security surpluses
for other purposes will lead to a dangerous breakdown in fiscal
discipline.'' We should maintain the discipline that has put us on a
path to a truly balanced budget that puts Social Security off budget
once and for all by 2002.
The West Texas tractor seat common sense I hear when I go home also
reminds me that we should not count our
[[Page H8728]]
chickens before they are hatched. The surplus exists only in
projections, not reality. According to CBO, a recession similar to the
1990-1991 recession would turn the projected surplus into a deficit.
Even a modest slowdown in economic growth could reduce revenues and
increase spending by tens of billions of dollars, quickly turning a
projected surplus into a deficit. Lawrence Lindsey, a Republican
economist and former Federal Reserve Governor, warned that the surge in
income taxes that has contributed to the surplus in the unified budget
may not continue, arguing that ``The prudent thing to do when you enjoy
a windfall from some good luck is to save it, you might need the
cushion in bad times.''
{time} 1015
I cannot believe my friends on the other side of the aisle are not
taking a conservative approach to the economy today, when everyone is
saying that is what we should be doing. People out in West Texas know
that when we get a little extra money, our first priority should be to
pay off our debts, particularly if we have a debt.
We should use the opportunity presented by the strong economy and
improved budget projections to reduce the $5.4 trillion national debt,
instead of leaving that burden for future generations. The current
projections of a budget surplus follow years of deficit spending that
has resulted in a national debt of $5.4 trillion. Federal Reserve
Chairman Alan Greenspan, former CBO Director Rudy Penner and countless
other economists have told us that the best course of action for the
economy is for Congress to use the surplus to reduce the debt. Reducing
the national debt will help maintain a strong economy by reducing
interest rates and increasing the amount of savings available to the
private sector to invest in the most effective way possible.
The senior representative in my State in the other body the other day
echoed the view that I share when he said, ``I think I know the people
I represent would agree we ought to save social security. I do not have
to see a poll to know that.''
We have a tremendous opportunity to prepare for the retirement of the
baby boom generation by reducing the debt and reforming entitlement
programs.
I have worked extremely hard over the last 3 years in a bipartisan
effort with the chairman, the gentleman from Arizona (Mr. Kolbe), the
gentleman from South Carolina (Mr. Mark Sanford), the gentleman from
Michigan (Mr. Nick Smith), and other Members on both sides of the aisle
to bring us to a point where we are seriously discussing the long-term
reforms necessary of the social security system. The task of enacting
meaningful social security reform will be even harder if we use the
projected budget surplus for a short-term, politically attractive tax
cut.
Members know that. I know that. Anyone that is serious knows there
are going to be transition costs. We should not spend it today.
I also strongly oppose this rule because it includes several major
waivers of the Budget Act discipline. This legislation represents one
of the largest violations of the budget enforcement rules since the
enactment of the Budget Enforcement Act.
At the same time that the Committee on the Budget is considering
legislation that would take a positive step towards making it harder to
waive the Budget Act, we are being asked to vote for a rule that makes
at least four major waivers of the Budget Act. These are not routine
waivers of technical violations of the Budget Act, but are major,
substantive waivers of budget discipline.
I hope that my colleagues who have joined me over the years in
complaining about waiving the Budget Act would join me in opposing now
the blatant violation of budget discipline in this rule.
The gentleman from New York (Mr. Solomon) and I have joined in this
fight so many times over the years, when the gentleman was in the
minority and I was in the majority, and I was differing with my party.
The gentleman and I stood on this floor and said, we should not do
this. Today, Mr. Speaker, the gentleman is bringing a rule that does
it, and he is waiving it. I cannot believe it that the gentleman is
doing that.
Mr. Speaker, the exemption from the PAYGO rules that allows the bill
to be funded out of the Social Security surplus instead of being offset
by spending cuts or revenue increases is a dangerous step toward
weakening existing budget enforcement rules. The pay-as-you go budget
rules have put us on a path to a balanced budget. Now is not the time
to be waiving, suspending or otherwise violating our budget discipline
rules. The recent volatility of world financial markets makes it even
more critical that we reaffirm our commitment to maintaining the
discipline that has produced a dramatic improvement in the federal
budget and a strong economy.
The conservative thing to do with the budget surplus is to be
conservative. It is extremely important that we follow the path of
fiscal responsibility and take advantage of this opportunity to
preserve the Social Security system for future generations. The bill
before us, for all its merit, would undermine fiscal discipline and
jeopardize our ability to preserve Social Security. I strongly
encourage all members who are committed to maintaining fiscal
discipline and maintaining the integrity of the Social Security trust
fund to vote against this rule so that the House may consider a tax cut
that is not funded out of the Social Security trust fund.
Vote down this rule and let us do what the country needs.
Mr. SOLOMON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I would just say that I respect every Member of this
body. I love all of them. The gentleman from Texas is one of my best
friends. However, sometimes we have to ask whose ox is being gored
here?
I heard the gentleman stand up here and say that he is for tax cuts,
but he is not going to vote to cut taxes if it is going to have
anything to do with Social Security. Yet, I am looking at a bill here
that just passed the House September 15. It was a bill that spent
billions of surplus funds on the agriculture emergency bill. It is the
same surpluses. Then it was okay to spend it, but no, it is not okay to
cut taxes with it now.
Mr. Speaker, I am just looking at the whole list of all my good
friends on that side of the aisle. Every one of them--I just drew the
line here--every one voted for that surplus bill. Spend those
surpluses, take it out of that Social Security. Yet, when we start
talking about 48 million Americans that are married taxpayers, we
cannot spend some of the surplus on them. We cannot give them a tax
break. We cannot give 6 million other Americans an exemption on their
itemizations. We cannot give 68 more million Americans a tax exemption
on their interest on their income.
Mr. Speaker, I yield 2 minutes to the gentleman from Morris, the
south suburbs of Chicago, Illinois (Mr. Weller).
(Mr. WELLER asked and was given permission to revise and extend his
remarks.)
Mr. WELLER. Mr. Speaker, I thank the gentleman for yielding me the
time.
We can tell this is an election year, with the political rhetoric we
are hearing. People are talking about the social security trust fund,
and of course politicians say a lot of things in an election year,
particularly 6 weeks before the election.
As a member of the Subcommittee on Social Security, I thought I would
share with everyone here, the Social Security Administration says that
the tax cuts we are going to vote on tomorrow eliminate the marriage
tax penalty for a majority of those who suffer. It will have no impact
on the social security trust funds.
In fact, in response to a question by the gentleman from Texas
(Chairman Archer), ``As a result of the tax bill being considered by
the committee today, will there be any impact on the monies in the
social security trust fund,'' the chairman asked Judy Chesser, deputy
commissioner of the Social Security Administration, she had a very
simple answer: ``No.''
So if we want to be honest about this, this legislation has
absolutely no impact. The tax cuts have absolutely no impact on the
social security trust fund. Let us be honest today. The Social Security
Administration is honest. All politicians should try and be honest once
in a while.
Mr. Speaker, this is an exciting day. Let us think about it. As a
result of last year's balanced budget, we now have projected a $1.6
trillion surplus. Today we are going to vote to set aside $1.4 trillion
to save social security. What a victory. 2 years ago we had massive
deficits. Today we have that opportunity to save social security,
setting aside $1.4 billion.
I was one of those who stood up and applauded in January of this year
when
[[Page H8729]]
the President said, let us take the surplus from the budget and use it
to save social security. I applauded. In fact, I stood up like everyone
else in this room, and said, good idea. At that time the surplus was
projected to be $600 billion. Today we are going to vote to set aside
more than twice what the President asked for, $1.4 trillion.
I have heard a lot of messages in the forums and town meetings I have
had on social security in the south suburbs and south side of Chicago:
Keep politics out of it, use most of the surplus to save social
security, and let us eliminate the marriage tax penalty.
Ms. SLAUGHTER. Mr. Speaker I yield 2 minutes to the gentleman from
Maryland (Mr. Cardin).
(Mr. CARDIN asked and was given permission to revise and extend his
remarks.)
Mr. CARDIN. Mr. Speaker, I thank the gentlewoman for yielding me the
time.
I oppose this rule, Mr. Speaker, and I am very disappointed that the
Republican leadership is bringing this forward. We have worked very
hard for the past 6 years to bring in a balanced budget, including the
1993 economic program on deficit reduction, that we passed without a
single vote from the Republican side of the aisle. But we did come
together, Democrats and Republicans, on budget discipline.
The pay-go rules were put in for a reason. The pay-go rules say very
simply that we cannot spend money unless we have a way to pay for it.
We cannot cut taxes unless we have a way to pay for it. It is very
simple.
Yes, we have voted for tax cuts, we did last year, but we paid for
them. We did not take it out of the surplus. We paid for it. Yes, we
can fund true emergencies through the budget rules without waiving the
budget rules, because that is the rules we are operating under. But we
cannot cut taxes, we cannot raise spending, unless we pay for it under
the pay-go rules.
What do the Republicans do? They bring out a rule that waives the
pay-go rules. It says that ``We waive pay-go requirements with respect
to a bill making the revenue loss not covered under pay-go,'' the
height of hypocrisy. If they did not do that, they would have a
Medicare cut next year of $6.7 billion under sequestration; the year
after that, $8 billion. They did not want that to happen, but they did
not want to pay for it.
That is wrong. There is no surplus, but for the fact that social
security is running a cash surplus. We do not have any surplus to
spend. It is very possible that we are going to enact permanent tax
cuts, and then what happens two or three years from now, if we do not
have the money they are talking about, it is not going to be 10 percent
of the projected surplus that comes about as a result of social
security, but it could be 20 percent, 30 percent, or 40 percent. That
is wrong. That is why we worked together, Democrats and Republicans,
for budget discipline rules.
I urge my colleagues to reject the rule.
Ms. SLAUGHTER. Mr. Speaker, I yield 4 minutes to the gentleman from
South Carolina (Mr. Spratt).
(Mr. SPRATT asked and was given permission to revise and extend his
remarks.)
Mr. SPRATT. Mr. Speaker, I thank the gentlewoman for yielding time to
me.
Mr. Speaker, in a week, just a week, the government will declare a
budget surplus for the first time in 30 years. This is a landmark
achievement, and in large measure it is the result of rigorous budget
rules that Congress enacted in 1990, in 1993, and in 1997, which were
followed consistently. Now, on the verge of the first surplus in 30
years, the House is about to throw budget discipline to the wind and
dissipate the surplus before we have even declared it, even put it in
our pockets and realized it.
When we did the budget summit agreement with President Bush in 1990,
we adopted something we call colloquially the pay-as-you-go rule.
Congress extended that rule in 1993, we extended it again in 1997,
because it has worked. It has been the foundation of our fiscal
discipline, and it has been a major factor in bringing the budget to
balance.
Under that statutory rule, increases in entitlement spending or
decreases in taxes have to be fully offset. If not offset, the
initiatives have to be paid for. They are entered on a pay-go
scorecard, and money is sequestered at the end of the fiscal year which
otherwise would go to the farm program or Medicare or Medicaid, certain
selected entitlement programs.
We all know there is a unified budget surplus over the next 5 years,
but we also know that when the surpluses in the social security trust
funds are backed out, the budget is in deficit by $137 billion.
If this rule is enacted and if H.R. 4579 is enacted, we will raise
that deficit from $137 billion to $217 billion, and postpone the date
when we are truly in surplus well beyond the year 2008. This is
backpeddling. This is the first step down the slippery slope. When we
are finally at the point of success, we are about to blow it.
I support tax cuts. I find a lot of the provisions in this tax bill
very appealing. But I think it is a mistake to dispense with our budget
rules and the budget discipline that has brought us this far in order
to pass this bill.
The rule for H.R. 4579, everybody should note this, everybody should
know it when they vote for it, has to bust the budget rules, has to
break the budget rules and the discipline that we have established in
four different ways for this bill to come to the floor.
First of all, it has to amend the tax bill to provide the pay-as-you-
go requirements, to override these pay-as-you-go requirements which are
present, which this Congress reaffirmed and extended just last year. We
have to override them altogether.
It is buried here. It is the last paragraph in this thing. It says,
``Upon the enactment of this Act, the director of the Office of
Management and Budget shall not make any estimates of the changes and
receipts under section 252 of the Balanced Budget and Emergency Deficit
Control Act of '85 resulting from the enactment of this Act.'' In other
words, disregard fiscal reality.
Secondly, we have to violate section 306 of the Budget Act, which
says that only the Committee on the Budget, not the Committee on Rules,
can change statutory budget rules like the pay-go rule.
Thirdly, this rule waives section 311 of the Congressional Budget
Act, in effect because the tax bill cuts go well beyond the tax cuts
that we explicitly agreed to in last year's budget agreement and
implemented in the Tax Relief Act of 1997.
Fourth, the rule must waive section 303 of the Congressional Budget
Act, because it amends the revenue law before Congress has agreed to a
budget resolution for this year. We do not have a budget resolution. We
passed one in the House, the Senate passed one. We never even had a
conference. The rules say that we cannot do this until we have adopted
a budget resolution.
This is a long list of violations which we will waive. They are
serious, not trivial violations. I urge that we stick with the fiscal
discipline that has brought us to this day on the verge of a surplus,
and not throw budget discipline to the winds. Let us vote against this
rule.
Mr. SOLOMON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I am just surprised to hear the gentleman, whom I have
great respect for. He was a member of the Committee on the Budget in
1993, along with the gentleman from Minnesota (Mr. Sabo). They asked
for the same kind of waivers, but for spending, not for tax cuts. In
1997, the same thing happened, for spending, not for tax cuts.
By the way, if there is an attempt to defeat the previous question
and to make in order the Stenholm substitute, it, just like the Rangel
substitute, requires the same kind of budget waivers. Let us get that
straight, so Members, when they come over here, know what they are
voting for.
Mr. Speaker, I yield 2 minutes to the very distinguished gentleman
from Staten Island, New York (Mr. Vito Fossella).
(Mr. FOSSELLA asked and was given permission to revise and extend his
remarks.)
Mr. FOSSELLA. Mr. Speaker, I thank my good friend, the gentleman from
upstate New York, for yielding time to me.
Mr. Speaker, I am very happy that we are having this discussion, this
debate, and indeed the opportunity to
[[Page H8730]]
vote on this rule, because really, what we have is providing the
American people, people on Staten Island and Brooklyn, the opportunity
to determine what side here is for providing more tax relief for the
American people, more tax relief for married couples, better
opportunities for small business owners, and what side just wants to
keep all our hard-earned money here in Washington for more big
government, more spending, more bureaucracy.
{time} 1030
I think the issue is clear. Frankly, I believe the American people
are taxed too much. I think they work hard every single day. When their
paycheck comes every couple of weeks or every month, or when they are
filing their taxes, they recognize that they pay too much in taxes.
The reality is, we want to send that money back to the people,
whether it is in Staten Island or Brooklyn or San Diego or anywhere
across this country.
Last year, there was a debate about cutting taxes on hard-working
Americans to stimulate our economy and allowing people to keep more of
what they earned. We were told that there was a budget deficit and that
we could not afford to cut taxes.
Now we are told that there is a budget surplus and we cannot afford
to cut taxes. This is the logic that defies ordinary Americans. If we
have a deficit and a surplus and we cannot afford to cut taxes in
either case, then when can we?
The reality is that we have a great opportunity today to support a
rule and underlying legislation that brings tax relief to hard-working
married couples, to small business owners across America. Let us get
the money out of Washington back to Staten Island and Brooklyn and
across this great country where it belongs. Where people who work hard
every single day who created the surplus, not the people here in
Washington, the Americans, let us give them the tax relief they need.
Mr. SOLOMON. Mr. Speaker, I yield 2 minutes to the gentleman from
Oklahoma (Mr. Watkins), an outstanding Member.
(Mr. WATKINS asked and was given permission to revise and extend his
remarks.)
Mr. WATKINS. Mr. Speaker, I stand in support of the bill. I think we
all need to be grateful from the standpoint of being able to balance
the budget. One of the reasons why I returned to Congress, was to do
anything I could do to balance the budget, and also to try to provide
some tax relief for a lot of the working families in this country.
We can also be very proud of the fact that we are setting aside 90
percent of the projected surplus to help protect and secure Social
Security. A 90 percent set-aside or $1.4 trillion is more than any
other time in the history of our country. An historic record breaking
amount of dollars that we are willing to set aside to protect Social
Security.
Also, as one of the previous speakers said, President Clinton,
proposed a set-aside in January, of approximately $600 billion. We are
setting aside over twice as much; $1.4 trillion is over twice the
amount that President Clinton proposed in January.
So, I think we can be very thankful with what we have done to protect
Social Security. The 10 percent will help save our farmers and our
ranchers. Let me share with you what that 10 percent does.
One, it allows us to provide income averaging with a 5-year carryback
to farmers and ranchers. And let me tell my colleagues, my farmers and
ranchers who are hurting with low prices and the worst crisis since the
Great Depression. They feel that the 5-year carryback is one of the
best provisions they could possibly have to help them survive through
this time.
It also allows 100 percent deductibility on health insurance for the
self-employed. We are not only talking about farmers and ranchers being
able to have health insurance, but also the small business on Main
Street. Most of them are self-employed and they do not have the
opportunity to have health insurance today, or they are not allowed to
have 100 percent deducted.
A lot of ministers are under this provision of being self-employed.
This is something that they have been wanting for a number of years.
The elimination of the marriage penalty which affects millions of
people across this country. This is a good working family middle-class
tax cut and our senior citizens will receive 90% or $1.4 trillion to
help protect Social Security well past the year 2030.
Ms. SLAUGHTER. Mr. Speaker, I want to urge my colleagues to join me
in opposing the rule. Vote ``no'' on the previous question.
Mr. Speaker, I ask unanimous consent to insert the text of the
amendment that will be offered if the previous question is not ordered
at this point in the Record.
The SPEAKER pro tempore (Mr. Kolbe). Is there objection to the
request of the gentlewoman from New York?
There was no objection.
On page 4, line 1, strike ``and (3)'' and after the
semicolon, add the following:
``(3) a further amendment printed in the Congressional
Record and numbered 2 pursuant to clause 6 of rule XXIII, if
offered by Representative Stenholm or his designee, which
shall be in order without intervention of any point of order,
which shall be considered as read, and shall be separately
debatable for one hour equally divided and controlled by the
proponent and an opponent; and (4)''.
Ms. SLAUGHTER. Mr. Speaker, I yield the balance of my time to the
gentleman from Texas (Mr. Green).
The SPEAKER pro tempore. The gentleman from Texas (Mr. Green) is
recognized for 30 seconds.
Mr. GREEN. Mr. Speaker, I rise in opposition to the rule, the bill,
and in support of the Democratic substitute.
For too long this Congress has had the habit of using the Social
Security trust funds to hide the true amount of our deficit. Now
Republicans want to use the Social Security trust fund to inflate the
value of the budget surplus.
This money should not only be saved, but it needs to be saved to
ensure the solvency of the Social Security program. Let us be honest
about the budget. It is only in balance because of Social Security. If
we remove Social Security trust funds from our budget calculation, we
would still have a deficit.
This bill to supposedly save 90 percent of the surplus for Social
Security is a sham. By supporting this bill, the Republicans are doing
nothing more than taking from America's seniors to pay for a tax cut.
Democrats want to save 100 percent of the surplus to pay for a
program that has worked well for seniors and their families but is in
need of repair--Social Security.
By voting for the Republican fig-leaf bill and against the Democratic
substitute, Republicans are voting to cut the money available for
strengthening Social Security.
Mr. SOLOMON. Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I want my colleagues to read this sign here. It says:
Social Security Administration says the tax cut plan has no impact on
Social Security trust funds. Quote, ``As a result of the tax bill being
considered by the committee today, will there be any impact on the
monies in the Social Security trust fund? No.''
Now, who said that? It is Mrs. Judy Chesser, Deputy Commissioner,
Office of Legislative and Congressional Affairs, Social Security
Administration of the Clinton administration.
Is that clear?
Later on this year, before we adjourn in the next couple of weeks, we
are going to be voting on some very critical things where we have to
come up with emergency monies. One of them is Bosnia. Ever hear of it?
We have to pay for it. Y2K, billions of dollars. We have to pay for it.
Disaster aid in New York and California and all across this country. We
have got to pay for it. National security, we have to pay for it.
As I pointed out before, 178 Democrats did not hesitate for a minute
to come on this floor 2 weeks ago and vote to spend billions of dollars
of these surpluses--spending it, not cutting taxes. Now today we want
to put aside 90 percent of these funds, 90 percent of over $1.5
trillion and save that for Social Security. But we want to take 10
percent of it and we want to give 87 million Americans a tax break in
this country, all middle-income, low-income Americans that need the
help.
Mr. Speaker, what is this all about? I urge Members to come over here
and vote for the rule and let us vote for the Social Security bill and
then let us vote for the tax cut bill.
Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise to speak against this
rule, which governs the debate on two separate bills that gravely
affect our Social Security and tax systems.
[[Page H8731]]
This rule prohibits the free and open debate of the social security
system. It only allows for one amendment to be made on each of these
important bills, that effect the lives and livelihoods of millions of
Americans around the country.
Social Security is an extremely important program. For many
Americans, it provides their only source of retirement. Their only
source for sustenance after they retire from work. Both of these bills
threaten the stability of their accounts. They take part of the money,
that should entirely be set aside on their behalf, as was contracted
the moment that funds were garnered from their paychecks, and put it
towards election-year tax cuts. Such important legislation should not
be unreasonably limited in debate, or in deliberation, as they are here
today.
H.R. 4578 purports to save Social Security, but any elementary school
teacher would be quick to stamp it ``incomplete''. It puts aside only a
portion of the hard-earned money of the American people. The
Republicans admit it is a 90-10 plan. They acknowledge that 10% of the
Social Security Fund is left unprotected. I say that 10% is 10% too
much.
The Democratic substitute for this bill sets aside every penny of
Social Security and places it into the New York Federal Reserve for
safekeeping, away from lawmakers looking to earn quick votes. I intend
to vote for the substitute, and hope that its passage signals to the
Republicans that their efforts to bring about tax cuts do not have to
come at the expense of the people around the country.
Now, this resolution does allow for one Democratic amendment to H.R.
4579, which takes funds out of the Social Security surplus and uses it
for tax cuts. Tax cuts that are intended to benefit the middle class.
However, to truly ensure that the middle class will receive the
benefits, those cuts must be carefully targeted. Targeting requires
careful debate and deliberation. Under this rule, we are afforded
neither. We get only one substitute.
Furthermore, under this rule, H.R. 4579 ``self-executes'', meaning
that a portion of the Budget Act is waived automatically! The Budget
Act requires that all tax cuts be fully paid for before being enacted.
Why is that waived in this case? Because the Republicans know that
there is no surplus to spend. It is prima facie evidence that this bill
takes money away from the Social Security Trust Fund.
I urge all of you to vote against this rule, and for the workers of
this great nation.
Mr. SOLOMON. Mr. Speaker, I yield back the balance of my time, and I
move the previous question on the resolution.
The SPEAKER pro tempore. The question is on ordering the previous
question.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Ms. SLAUGHTER. Mr. Speaker, I object to the vote on the ground that a
quorum is not present and make the point of order that a quorum is not
present.
The SPEAKER pro tempore. Evidently a quorum is not present.
The Sergeant at Arms will notify absent Members.
Pursuant to clause 5 of rule XV, the Chair will reduce to a minimum
of 5 minutes the period of time within which a vote by electronic
device, if ordered, will be taken on the question of agreeing to the
resolution.
The vote was taken by electronic device, and there were--yeas 219,
nays 202, not voting 13, as follows:
[Roll No. 461]
YEAS--219
Aderholt
Archer
Armey
Bachus
Baker
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Brady (TX)
Bryant
Bunning
Burr
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Castle
Chabot
Chambliss
Chenoweth
Christensen
Coble
Coburn
Collins
Combest
Cook
Cooksey
Cox
Crane
Crapo
Cunningham
Davis (VA)
Deal
DeLay
Diaz-Balart
Dickey
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Foley
Forbes
Fossella
Fowler
Fox
Franks (NJ)
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goodlatte
Goodling
Graham
Granger
Greenwood
Gutknecht
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jenkins
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King (NY)
Kingston
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
LoBiondo
Lucas
Manzullo
McCarthy (NY)
McCollum
McCrery
McHugh
McInnis
McIntosh
McKeon
Metcalf
Mica
Miller (FL)
Moran (KS)
Morella
Myrick
Nethercutt
Neumann
Ney
Northup
Nussle
Oxley
Packard
Pappas
Parker
Paxon
Pease
Peterson (PA)
Petri
Pickering
Pitts
Pombo
Porter
Portman
Quinn
Radanovich
Ramstad
Redmond
Regula
Riggs
Riley
Rogan
Rohrabacher
Ros-Lehtinen
Roukema
Royce
Ryun
Salmon
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Shimkus
Shuster
Skeen
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Linda
Snowbarger
Solomon
Souder
Spence
Stearns
Stump
Sununu
Talent
Tauzin
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Traficant
Upton
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
NAYS--202
Abercrombie
Ackerman
Allen
Andrews
Baesler
Baldacci
Barcia
Barrett (WI)
Becerra
Bentsen
Berman
Berry
Bishop
Blagojevich
Blumenauer
Bonior
Borski
Boswell
Boucher
Boyd
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Capps
Cardin
Carson
Clay
Clayton
Clement
Clyburn
Condit
Conyers
Costello
Coyne
Cramer
Cummings
Danner
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Dicks
Dingell
Dixon
Doggett
Dooley
Doyle
Edwards
Eshoo
Etheridge
Evans
Farr
Fattah
Fazio
Filner
Ford
Frank (MA)
Frost
Furse
Gejdenson
Gephardt
Gonzalez
Goode
Gordon
Green
Gutierrez
Hall (OH)
Hall (TX)
Hamilton
Harman
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Holden
Hooley
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson (WI)
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kildee
Kilpatrick
Kind (WI)
Kleczka
Klink
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lewis (GA)
Lipinski
Lofgren
Lowey
Luther
Maloney (CT)
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McDermott
McGovern
McHale
McIntyre
McKinney
McNulty
Meehan
Meek (FL)
Menendez
Millender-McDonald
Miller (CA)
Minge
Mink
Mollohan
Moran (VA)
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Pickett
Pomeroy
Poshard
Price (NC)
Rahall
Rangel
Reyes
Rivers
Rodriguez
Roemer
Rothman
Roybal-Allard
Rush
Sabo
Sanchez
Sanders
Sandlin
Sanford
Sawyer
Schumer
Scott
Serrano
Sherman
Sisisky
Skaggs
Skelton
Slaughter
Smith, Adam
Snyder
Spratt
Stabenow
Stark
Stenholm
Stokes
Strickland
Stupak
Tanner
Tauscher
Taylor (MS)
Thompson
Thurman
Tierney
Torres
Towns
Turner
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Weygand
Wise
Woolsey
Wynn
Yates
NOT VOTING--13
Burton
Cubin
Engel
Goss
Kennelly
Livingston
McDade
Meeks (NY)
Moakley
Norwood
Paul
Pryce (OH)
Rogers
{time} 1056
The Clerk announced the following pairs:
On this vote:
Mr. BURTON of Indiana for, with Mr. MOAKLEY against.
Mrs. LOWEY and Mr. ACKERMAN changed their vote from ``yea'' to
``nay.''
So the previous question was ordered.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore (Mr. Quinn). The question is on the
resolution.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.
Ms. SLAUGHTER. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. This is a 5-minute vote.
The vote was taken by electronic device, and there were--yeas 215,
nays 208, not voting 11, as follows:
[[Page H8732]]
[Roll No. 462]
YEAS--215
Aderholt
Archer
Armey
Bachus
Baker
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Bilbray
Bilirakis
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Brady (TX)
Bryant
Bunning
Burr
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Castle
Chabot
Chambliss
Chenoweth
Christensen
Coble
Collins
Combest
Cook
Cooksey
Cox
Crane
Crapo
Cunningham
Davis (VA)
Deal
DeLay
Diaz-Balart
Dickey
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Foley
Forbes
Fossella
Fowler
Fox
Franks (NJ)
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goodlatte
Goodling
Graham
Granger
Greenwood
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jenkins
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kim
King (NY)
Kingston
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Livingston
LoBiondo
Lucas
Manzullo
McCarthy (NY)
McCollum
McCrery
McHugh
McInnis
McKeon
Metcalf
Mica
Miller (FL)
Moran (KS)
Myrick
Nethercutt
Ney
Northup
Nussle
Oxley
Packard
Pappas
Parker
Paxon
Pease
Peterson (PA)
Petri
Pickering
Pitts
Pombo
Porter
Portman
Quinn
Radanovich
Ramstad
Redmond
Regula
Riggs
Riley
Roemer
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Roukema
Royce
Ryun
Salmon
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Shimkus
Shuster
Skeen
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Snowbarger
Solomon
Souder
Spence
Stearns
Stump
Sununu
Talent
Tauzin
Taylor (NC)
Thomas
Thune
Tiahrt
Traficant
Upton
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wilson
Wolf
Young (AK)
Young (FL)
NAYS--208
Abercrombie
Ackerman
Allen
Andrews
Baesler
Baldacci
Barcia
Barrett (WI)
Becerra
Bentsen
Berman
Berry
Bishop
Blagojevich
Blumenauer
Bonior
Borski
Boswell
Boucher
Boyd
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Capps
Cardin
Carson
Clay
Clayton
Clement
Clyburn
Coburn
Condit
Conyers
Costello
Coyne
Cramer
Cummings
Danner
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Dicks
Dingell
Dixon
Doggett
Dooley
Doyle
Edwards
Engel
Eshoo
Etheridge
Evans
Farr
Fattah
Fazio
Filner
Ford
Frank (MA)
Frost
Furse
Gejdenson
Gephardt
Gonzalez
Goode
Gordon
Green
Gutierrez
Gutknecht
Hall (OH)
Hall (TX)
Hamilton
Harman
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Holden
Hooley
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson (WI)
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kildee
Kilpatrick
Kind (WI)
Kleczka
Klink
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lewis (GA)
Lipinski
Lofgren
Lowey
Luther
Maloney (CT)
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McDermott
McGovern
McHale
McIntosh
McIntyre
McKinney
McNulty
Meehan
Meek (FL)
Menendez
Millender-McDonald
Miller (CA)
Minge
Mink
Mollohan
Moran (VA)
Morella
Murtha
Nadler
Neal
Neumann
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Pickett
Pomeroy
Poshard
Price (NC)
Rahall
Rangel
Reyes
Rivers
Rodriguez
Rothman
Roybal-Allard
Rush
Sabo
Sanchez
Sanders
Sandlin
Sanford
Sawyer
Schumer
Scott
Serrano
Sherman
Sisisky
Skaggs
Skelton
Slaughter
Smith, Adam
Smith, Linda
Snyder
Spratt
Stabenow
Stark
Stenholm
Stokes
Strickland
Stupak
Tanner
Tauscher
Taylor (MS)
Thompson
Thurman
Tierney
Torres
Towns
Turner
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Weygand
Wise
Woolsey
Wynn
Yates
NOT VOTING--11
Burton
Cubin
Goss
Kennelly
McDade
Meeks (NY)
Moakley
Norwood
Paul
Pryce (OH)
Thornberry
{time} 1106
So the resolution was agreed to.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.
____________________