[Congressional Record Volume 145, Number 164 (Thursday, November 18, 1999)]
[Senate]
[Pages S14811-S14812]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. HARKIN:
  S. 1959. A bill to provide for the fiscal responsibility of the 
Federal Government; to the Committee on Finance.


                     the fiscal responsibility act

  Mr. HARKIN. Mr. President, today as we are debating how to protect 
Social Security and Medicare while making necessary investments in our 
nation's future, I am introducing legislation designed to provide some 
options for reducing spending. In an effort to promote greater fiscal 
responsibility within the federal government, ``The Fiscal 
Responsibility Act'' would eliminate special interest tax loopholes, 
reduce corporate welfare, eliminate unnecessary government programs, 
reduce wasteful spending, enhance government efficiency and require 
greater accountability.
  The reforms contained in this bill would result in savings of up to 
$20 billion this year and up to $140 billion over the next five years. 
These savings could be used to pay down the federal debt, shore up 
Social Security and Medicare, provide middle-class tax relief, and/or 
pay for needed investment in education, health care and other 
priorities.
  While I recognize that everyone won't agree on each of the provisions 
of this measure, I believe it is important for us to put forward 
options to be considered. I hope that we can work together on a 
bipartisan basis to produce a set of reforms such as these to lay a 
path of fiscal responsibility as we move into the next century.
  The following is a summary of the bill's major provisions:
  Elimination of Unnecessary Government Programs.

[[Page S14812]]

  A number of outdated or unnecessary programs would be eliminated, 
including Radio Marti, TV Marti and certain nuclear energy research 
initiatives. These changes would save over $150 million this year.
  Reduction of Wasteful Spending and Government Efficiency 
Improvements.
  $13 billion a year is lost to Medicare waste and abuse. This would be 
substantially reduced through a series of comprehensive reforms. In 
addition, taxpayer support for the cost of certain nuclear energy 
lobbying activities would be eliminated.
  A number of common sense steps would be implemented to improve the 
efficiency of government activities.
  Spending by government agencies on travel, printing, supplies and 
other items would be frozen at 1998 levels. This change would save $2.8 
billion this year and about $12 billion over 5 years.

  Pentagon spending would be tied to the rate of inflation. This would 
force the Pentagon to reduce duplication and other inefficiencies 
identified by government auditors and outside experts. This change 
would save taxpayers $9.2 billion this year and approximately $69 
billion over the next 5 years.
  Enhancing the government's ability to collect student loan defaults 
would save taxpayers $892 million this year and $1 billion over five 
years.
  Eliminating Special Interest Tax Loopholes and Give-Aways.
  Tobacco use causes 400,000 deaths a year and costs taxpayers billions 
in preventable health care costs. And, yet, taxpayers are forced to 
cough up about $2 billion a year to subsidize the advertising and 
marketing of this deadly product. The tax deductibility of tobacco 
promotion would be ended and these funds would be saved.
  A loophole that allows estates valued above $10 million to elude 
taxation would be closed.
  The federal government allows mining companies to extract minerals 
from federally-owned lands at an actual cost of pennies on the dollar. 
This special interest giveaway would be ended, saving taxpayers $750 
million over the next five years.
  American citizens temporarily working in foreign countries can earn 
up to $70,000 without paying any U.S. taxes. This unfair provision 
would be eliminated, bringing in an estimated $15.7 billion over the 
next 5 years.
  A foreign tax credit that allows big oil and gas companies to escape 
paying their fair share for royalties would be limited. This common 
sense change would generate $3.1 billion over 5 years to reduce the 
debt our kids and grandkids will inherit.
  Increased Accountability.
  Tobacco companies hook 3,000 children a day on their deadly products. 
One in three of these kids will be sentenced to an early death. Tobacco 
companies should be held accountable. Accordingly, a goal of reducing 
teen smoking by at least 15 percent each year would be set. If tobacco 
companies fail to meet this goal, they would have to pay a penalty. 
Such a system would generate approximately $6 billion this year and $20 
billion over the next 5 years. It would also significantly reduce the 
number of young children who become addicted to tobacco.
  Mr. President, I urge my colleagues to review the provisions in this 
bill and look forward to moving forward next year on a fiscally 
responsible budget plan.
                                 ______