[Congressional Record Volume 145, Number 32 (Tuesday, March 2, 1999)]
[House]
[Pages H885-H886]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             INTRODUCING H.R. 948, THE DEBT DOWNPAYMENT ACT

  The SPEAKER pro tempore (Mr. Bilbray). Under the Speaker's announced 
policy of January 6, 1999, the gentleman from Kansas (Mr. Moran) is 
recognized for 60 minutes.
  Mr. MORAN of Kansas. Mr. Speaker, I would like to bring to the 
attention of my colleagues in Congress a letter I received today. It is 
a letter from Mr. and Mrs. Alan Paul of Ellsworth, Kansas. The Pauls 
write to suggest that Congress use its good sense and to do what is 
best for the country.
  Mr. Paul specifically writes, ``Comes now a budget surplus. You know 
and I know that the `surplus' can be what we want it to be depending on 
how we cook the books. Fact is, without Social Security, there is no 
surplus. Suddenly, Democrats see new programs we cannot get along 
without, Republicans get those tax cut dollar signs in their eyes, and 
our collective brains get all mushy. I have a revolutionary idea,'' Mr. 
Paul writes. ``Let's do nothing. No new programs, no tax cuts, nothing. 
Let the surplus reduce the debt, thereby reducing the annual interest 
payments out of the budget and thereby bolstering Social Security.''
  Mr. Paul is right. Mr. Speaker, today I introduced the Debt 
Downpayment Act, legislation that will establish a plan for paying down 
our national debt. While many in Washington celebrate the idea that we 
have balanced the books, Americans, and especially Kansans, have not 
forgotten that our national debt stands at $5.6 trillion. That is over 
$20,000 for every American. Twenty thousand dollars per person is not 
balanced, and using the Social Security Trust Fund to mask the true 
extent of the debt is not balanced either.
  Debt is certainly not a glamorous issue in Washington. It is much 
more exciting to talk about new programs that our surpluses could fund. 
In each of our districts there are great needs. In Kansas, all of our 
major industries face record low prices. Wheat, oil, hogs and cattle 
prices are wiping out family farmers, ranchers and small oil producers.

                              {time}  1930

  Our hospitals are struggling to meet the needs of an aging and rural 
population. I rise this evening not to suggest that we should ignore 
the pressing needs of the American people but to remind Members of 
Congress that as we meet these needs we must continue to make the 
difficult choices that can help us reduce our national debt.
  Mr. Speaker, despite the claims, we do not have surpluses as far as 
the eye can see. In fact, we have a very short window of time where 
demographics and a strong national economy will allow us to pay down a 
portion of our national debt.

[[Page H886]]

  The Congressional Budget Office, the General Accounting Office, the 
chairman of the Federal Reserve Board, Dr. Greenspan, have all warned 
us repeatedly that the good times will not last forever. Assuming we 
continue with our current economic growth, deficits are still expected 
to return in the near future.
  Mr. Speaker, the chart shows where we are today in 1998, and we are 
headed on the right path but, lo and behold, doing nothing still sends 
us back and in 2040 the projected debt levels are two times our gross 
national product.
  Those are not good signs. This is the window of opportunity for us to 
do something right, and we cannot afford to let this chance pass us by.
  The legislation I have introduced is simple. If Congress does nothing 
to botch this opportunity, the amount of our publicly-held debt is 
expected to be reduced by $2.4 trillion by 2009. This bill simply locks 
in today's once in a lifetime opportunity to pay down the debt by 
establishing gradually reduced debt limits each year. Doing so provides 
an average annual down payment on the debt of $240 billion each year 
for the next 10 years and requires no new spending cuts.
  I urge all my colleagues to consider the benefits of paying down the 
debt. Today, nearly 15 percent of the Federal budget goes to make 
interest payments on the national debt.
  Mr. Speaker, 15 percent of our budget goes to pay interest on the 
national debt. That is almost as much as national defense, almost as 
much as Social Security, and more than income security or Medicare. It 
is a huge portion of the problem we face each year.
  The budget today looks too much like bad credit card spending. We pay 
only the minimum amount each month. We spend a hefty sum on interest 
and we never establish a plan to pay down the principal.
  My bill would save an estimated $730 billion in interest payments 
over the next 10 years. That is good for the Federal budget and it is 
good for the economy. We can lower interest rates for America's car 
loans, our mortgages, our student loans and our farm debt and free up 
11 percent of the budget for tax cuts or other important priorities.
  Foremost, reducing our debt strengthens our ability to meet our 
obligations for Social Security. In 2013, just 14 years from now, as 
the baby-boomers retire, payroll taxes are expected to be insufficient 
to meet the promised Social Security benefits. Congress will either 
need to raise taxes or tap into general revenue. By reducing the debt, 
we can do something today that makes it much easier to meet the needs 
of the next generation's retirement.
  This legislation also removes Social Security trust fund revenues 
from all calculations of the surplus. We must be honest with ourselves 
and with the American people.
  H.R. 948 offers a simple, straightforward plan for paying down our 
national debt. With the right decisions today, we can strengthen 
economic growth into the next generation, but if we fail we could see 
an expansion of the size and scope of government and a debt burden that 
lowers the standard of living for every American. I urge each of us to 
make the necessary commitment and seize this historic opportunity to do 
the right thing for ourselves, our children and our grandchildren.
  Mr. Paul's letter concludes, ``And maybe, Jerry, just maybe, if you 
pull off this miraculous feat, God will forgive us all for the terrible 
sins we have committed against our future generations.''

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