[Congressional Record Volume 146, Number 25 (Wednesday, March 8, 2000)]
[Senate]
[Pages S1324-S1325]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLARD:
  S. 2220. A bill to protect Social Security and provide for repayment 
of the Federal debt; to the Committee on the Budget and the Committee 
on Governmental Affairs, jointly, pursuant to the order of August 4, 
1977.


     THE AMERICAN SOCIAL SECURITY PROTECTION AND DEBT REPAYMENT ACT

  Mr. ALLARD. Mr. President, I rise today to join my colleagues in this 
important discussion about the federal budget, the budget surplus, and 
the American government's economic future. When I first came to 
Congress in 1992 the discussion was radically different. The concept of 
a budget surplus, let alone long term projections for a surplus, was 
foreign. The notion that a national debt measured in trillions could 
ever be paid off was practically science fiction. While 1992 was only 
eight years ago, we stand on the floor of the Senate today a million 
miles away from the bleak fiscal outlook of those times. But we must be 
careful. While our present fiscal condition may be rose colored, fiscal 
irresponsibility and a refusal to wisely use the budget surplus can not 
only lead us back to our deficit spending ways of the past, but it will 
threaten the fiscal health of our nation for yet another generation of 
Americans. I am here today to urge my colleagues to address the 
responsibility that comes with a five-point-seven trillion dollar debt.
  During the 105th Congress I introduced the American Debt Repayment 
Act. This legislation provided an amortization schedule for the 
repayment of the national debt. The largest purchase an average 
American family will ever make is the purchase of a home. This 
expenditure is made possible through the use of a mortgage, a set 
schedule of payment. When I was crafting the American Debt Repayment 
Act I studied this traditional form of payment and applied it to the 
enormous federal debt. Two short years later the outlook has somewhat 
changed as the federal government has run, and is estimated to continue 
to run, an on-budget surplus. During the previous two budget cycles we 
have witnessed an eagerness to spend more and more money. On-budget 
surplus dollars have become lumped in to the appropriations process to 
allow for increased spending. We have seen the results yielded by our 
time of prosperity as surplus money has been used to raise the 
discretionary spending level, allowing Congress to shy away from making 
some hard choices. The willingness to spend surplus dollars is so 
strong, in fact, that when Congress adjourned last fall there was no 
real certainty as to whether we spent all of the on-budget surplus and 
then dipped into Social Security Trust Fund dollars. This, quite 
simply, is no way to run any enterprise. Flowing surplus money back 
into discretionary spending to the extent that Social Security money 
would be jeopardized is bad policy.
  Today I rise to offer legislation that offers not only an opportunity 
to control the impulse to spend surplus dollars, but would eliminate 
the entire three-point-six trillion dollar debt owed to the public, 
save over three trillion dollars in interest, and protect the Social 
Security program from annual discretionary appropriations raids. It is 
simple legislation in the model of the American Debt Repayment act, 
providing dedicated debt repayment over a twenty year period.
  Beginning with the fiscal year 2001 and for every year thereafter my 
legislation requires that the federal government maintain a balanced 
budget. As most families and business owners know, you must live within 
your means. It is fair and equitable that the federal government live 
under the same parameters. I believe that this is the first and most 
essential step in federal budget accountability and debt repayment.
  My legislation further provides that Congress must budget for a 
surplus that will be dedicated to the repayment of the publicly held 
portion of the debt. Specifically, in fiscal year 2001 Congress must 
use fifteen billion dollars of on-budget surplus receipts to pay down 
the debt. Every succeeding year the amount of debt payment must 
increase by fifteen billion dollars, so the amount Congress must budget 
for and pay toward the debt in fiscal year 2002 will be thirty billion 
dollars, forty-five billion in fiscal year 2004, and so on. If Congress 
can remain within the framework of a spending freeze at fiscal year 
2000 levels the entire amount of annual payment will fit within the 
projected amount of federal on-budget surplus.

  If this system is adopted, by the year 2021 the entire debt owed to 
the public will be zero.
  We must have a plan to repay the debt. When we have a plan and a 
repayment schedule, just like you have on your home mortgage, we will 
have the ability to cut taxes. A plan provides certainty and structure. 
I believe that anyone concerned with the national debt or tax cuts will 
understand the need for a responsible repayment schedule.
  In addition to the on-budget surplus payment required by this 
legislation, I have added language to require that until such time as 
serious Social Security reform is implemented Social Security surplus 
dollars must also be dedicated to the repayment of debt owed to the 
public. Every Member of this body is aware of the enormous obligation 
this country has made to present and future Social Security recipients. 
Policy makers must address the future solvency of Social Security. I am 
not here today, and my legislation is not drafted, to address this 
vital issue. What my legislation will do, however, is dedicate surplus 
Social Security dollars to debt repayment until the Congress can 
generate an appropriate, long term fix to the obstacles that stand in 
the way of this program.
  In recent weeks the distinguished Speaker of the House and the 
President have talked a great deal publicly about seizing the 
unprecedented opportunity that lies before us--to pay down this 
nation's debt. Testifying before the Senate Banking Committee in 
January, Federal Reserve Chairman Alan Greenspan strongly urged 
Congress to use surplus dollars to pay down the debt. Chairman 
Greenspan stated that his, quote, first priority would be to allow as 
much of the surplus to flow through into a reduction in debt to the 
public, unquote. This dialogue has been tremendously helpful in further 
drawing the attention of the public and elected officials to the 
importance of debt repayment. As many of my colleagues can attest, and 
as I have experienced in my numerous town meetings around my home state 
of Colorado, this is an issue the public understands. It is an issue 
basis common sense, equity and responsibility.
  This legislation is a call to action and accountability. It demands 
that this country and this Congress recognize the debt it has created. 
It structures a disciplined, fiscally responsible schedule for the 
repayment of our debt. In the process it is my hope that this 
legislation will serve to generate greater fiscal responsibility with 
every appropriations cycle, prevent future deficit spending, and save 
the taxpayer more than three trillion dollars in interest payments. 
That is three trillion dollars that would be far better spent on 
necessary expenditures, the strengthening of Social Security, and tax 
cuts.
  Mr. President, I ask unanimous consent that the text of the bill, the 
American Social Security Protection and

[[Page S1325]]

Debt Repayment Act, be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2220

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``American Social Security 
     Protection and Debt Repayment Act''.

     SEC. 2. BALANCED BUDGET REQUIREMENT.

       Beginning with fiscal year 2001 and for every fiscal year 
     thereafter, budgeted outlays shall not exceed budgeted 
     revenues.

     SEC. 3. REDUCTION OF NATIONAL DEBT.

       (a) In General.--Beginning with fiscal year 2001 and for 
     every fiscal year thereafter, actual revenues shall exceed 
     actual outlays in order to provide for the reduction of the 
     Federal debt held by the public as provided in subsections 
     (b) and (c).
       (b) Amount.--The on budget surplus shall be large enough so 
     that debt held by the public will be reduced each year 
     beginning in fiscal year 2001. The amount of reduction 
     required by this subsection shall be $15,000,000,000 in 
     fiscal year 2001 and shall increase by an additional 
     $15,000,000,000 every fiscal year until the entire debt owed 
     to the public has been paid.
       (c) Social Security Surplus and Debt Repayment.--
       (1) In general.--Until such time as Congress enacts major 
     social security reform legislation, the surplus funds each 
     year in the Federal Old Age and Survivors Insurance Trust 
     Fund and the Federal Disability Insurance Trust Fund shall be 
     used to reduce the debt owed to the public. This section 
     shall not apply beginning on the fiscal year after social 
     security reform legislation is enacted by Congress.
       (2) Definition.--In this subsection, the term ``social 
     security reform legislation'' means legislation that--
       (A) insures the long-term financial solvency of the social 
     security system; and
       (B) includes an option for private investment of social 
     security funds by beneficiaries.

     SEC. 4. POINT OF ORDER AND WAIVER.

       (a) Point of Order.--It shall not be in order to consider 
     any concurrent resolution on the budget that does not comply 
     with this Act.
       (b) Waiver.--Congress may waive the provisions of this Act 
     for any fiscal year in which a declaration of war is in 
     effect.

     SEC. 5. MAJORITY REQUIREMENT FOR REVENUE INCREASE.

       No bill to increase revenues shall be deemed to have passed 
     the House of Representatives or the Senate unless approved by 
     a majority of the total membership of each House of Congress 
     by a rollcall vote.

     SEC. 6. REVIEW OF REVENUES.

       Congress shall review actual revenues on a quarterly basis 
     and adjust outlays to assure compliance with this Act.

     SEC. 7. DEFINITIONS.

       In this Act:
       (1) Outlays.--The term ``outlays'' shall include all 
     outlays of the United States excluding repayment of debt 
     principal.
       (2) Revenues.--The term ``revenues'' shall include all 
     revenues of the United States excluding borrowing.
                                 ______