[Congressional Record Volume 146, Number 81 (Friday, June 23, 2000)]
[Extensions of Remarks]
[Page E1098]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               DEBT REDUCTION RECONCILIATION ACT OF 2000

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                               speech of

                          HON. GARY G. MILLER

                             of california

                    in the house of representatives

                         Tuesday, June 20, 2000

  Mr. GARY MILLER of California. Mr. Speaker, I rise in support of H.R. 
4601 the ``Debt Reduction Reconciliation Act of 2000.'' It is time for 
the U.S. Congress and the President to start living the way American 
families do.
  When a family owes money on a credit card, loan, or car, they pay a 
price to borrow that money--an interest rate. Interest rates make the 
purchase made by that credit card or loan or the car more expensive; 
hence, there is a financial incentive to pay the debt off as quickly as 
possibly. Unfortunately, it seems that too many members of Congress and 
this President have forgotten what interest rates and debt really mean.
  Our refusal to be mindful of simple accounting methods has resulted 
in the rapid accumulation of surplus revenues in the U.S. Treasury 
Department's operating cash accounts. At the same time, we have a 
public debt of $3.54 trillion. However, we currently lack the mechanism 
needed to apply these surplus funds to the debt quickly. At this time, 
the Treasury may only issue less debt, reverse auctions, or purchase 
debt instruments. While these tools are useful, specific economic 
conditions influence which method can be employed at what exact time, 
limiting the options of the Treasury Department.
  A more flexible solution is needed, and we have one in H.R. 4601. The 
``Debt Reduction Reconciliation Act of 2000'' would protect the on-
budget surplus revenues collected during the remainder of fiscal year 
2000 and appropriate them for debt reduction by depositing them in a 
designated ``off budget Public Debt Reduction Account.'' By moving the 
surplus out of the Treasury's operating cash accounts, appropriators 
would not be tempted to spend money they do not really have.
  The ``Public Debt Reduction Account'' would give the Treasury 
flexibility to use its existing debt reduction tools in the most 
effective manner. Surplus revenues deposited in this account would 
remain available until utilized for debt reduction. Most importantly, 
the Treasury would be able to schedule reverse auctions at the most 
advantageous times, make funds available to brokers buying back debt on 
the open markets, or decrease the size of new debt issues--depending on 
which mechanism, or combination of tools, proves most cost effective.
  It is also important to note that H.R. 4601 applies only to the 
surpluses for this current fiscal year. The ``Public Debt Reduction 
Account'' is not intended to become an automatic allocation as other 
accounts are, and in no way would this bill tie the hands of 
appropriators in the future.
  Too often, we state that policy goals are worthy of implementation--
some time in the not so near future. Right now, our economy is robust 
and healthy. In fact, Federal Reserve Chairman Greenspan's biggest 
concern is that our economy is growing too quickly. It is this rapid 
economic growth that has helped to create the surpluses we are 
discussing, and we should address this issue now.
  We must also consider what we have to gain by focusing on debt 
reduction: an improved credit rating; no more interest payments, and 
most importantly, the renewed faith of the American people who will 
finally be able to see that their government lives by the same set of 
standards.
  Do not to believe the hyperbole that you will hear from the other 
side of the aisle. Without H.R. 4601, we will continue to spend and 
spend. Never in the history of the modern Presidency and Congress has 
there been an on-budget surplus that wasn't spent. In addition, without 
this bill the Treasury will continue to lack the financial mechanisms 
to apply surplus funds to the debt in a manner that is expedient and 
efficient.
  Over the last few months, many of us have written about the need to 
reduce the debt. We've spoken about it in committees and here on the 
floor. In fact, many of you supported the goal of debt reduction by 
voting for the budget resolution. It is time for us to support a 
tangible, realistic solution.
  This Administration has tried to argue that no solution exists. Not 
only is that statement incorrect, it is also grossly misleading. What 
the President really wants is the ability to spend every penny that 
comes into the Treasury.
  I feel that we owe the taxpayers of this nation a lot more. After 
all, the surplus is the result of their hard work and willingness to 
pay taxes. We need to ask ourselves, ``what would the families in my 
district do if they were suddenly able to pay off money they owe?'' For 
me, that answer is simple. I urge support of H.R. 4106.

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