[Congressional Record Volume 145, Number 111 (Monday, August 2, 1999)]
[Senate]
[Page S9995]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      TAXPAYER REFORM ACT OF 1999

  Mrs. LINCOLN. Mr. President, I wish to express my support for the 
Bingaman amendment to recommit S. 1429 to the Senate Finance Committee 
which would have enabled us to clarify that debt reduction is a top 
priority for this government in spending any budget surplus.
  As we say in my home state of Arkansas, the best time to fix the roof 
is when the sun is still shining.
  Now is the time for us to take steps to reduce our enormous federal 
debt. I believe we have an unprecedented opportunity before us. We've 
been making tough decisions--living within our means, so to speak.
  We have a surplus that's bigger than we thought it would be and a 
chance to save Social Security for future generations, protect for 
Medicare and help older people afford prescription drugs.
  So, now we have a shot at reducing our nation's debt, which in turn 
will lower interest rates and put more money back in the pockets of 
more Americans.
  Using a major portion of any surplus accumulated in these times of 
prosperity to improve the financial integrity of the federal 
government. Reducing the national debt is a smart long-term strategy 
for the U.S. economy and it must be our priority in this bill.
  Reducing our national debt will provide a tax cut for millions of 
Americans because it will restrain interest rates, saving them money on 
variable mortgages, new mortgages, auto loans, credit card payments, 
etc. Each percentage point decrease in interest rates would save 
American families hundreds of dollars every year.
  By reducing the national debt we will protect future generations from 
increasing tax burdens. Currently, more than 25 percent of individual 
income taxes go to paying interest on our national debt. Every dollar 
of lower debt saves more than one dollar for future generations, a 
savings that can be used for tax cuts, or for covering the baby boomers 
retirement without tax increases.
  Reducing the national debt will also make it easier for the 
government to deal with the future costs of Social Security and 
Medicare and repay the Social Security trust fund when the Social 
Security system faces annual shortfalls.
  In addition, reducing the national debt will reduce our reliance on 
foreign investors. More than $1.2 trillion of the national debt--
roughly one third of the publicly held debt--is held by foreign 
investors. In 1998, the U.S. government paid $91 billion in interest 
payments to foreign investors.
  It was not the American way to live beyond one's means. Our parents 
taught us to work hard so that we can pay our bills, clothe our 
children and save for the future.
  Accumulating debt and simply letting it grow and grow is not--and 
should not be--an option for most families around this country. It 
should no longer be the practice of this government.
  Federal Reserve Board Chairman Alan Greenspan has repeatedly advised 
Congress that the most important action we could take to maintain a 
strong and growing economy is to pay down the national debt. I, for 
one, believe he is on the right track.
  Clarifying our intent to prioritize debt reduction is the right thing 
to do.

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