[Congressional Record Volume 146, Number 92 (Monday, July 17, 2000)]
[Senate]
[Pages S6999-S7002]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                         THE DEBT AND TAX CUTS

  Mr. HOLLINGS. Mr. President, in response to my amendment relative to 
eliminating the tax cut, I ask unanimous consent that my comments of

[[Page S7000]]

February 10, this year, in the Congressional Record, be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 Fraud

       Mr. Hollings. Mr. President, if people back home only knew. 
     This whole town is engaged in the biggest fraud. Tom Brokaw 
     has written that the greatest generation suffered the 
     Depression, won the war, and then came back to lead. They not 
     only won the war but were conscientious about paying for that 
     war and Korea and Vietnam. Lyndon Johnson balanced the budget 
     in 1969.
       I ask unanimous consent to print in the Record the record 
     of all the Presidents, since President Truman down through 
     President Clinton, of the deficit and debt, the national 
     debt, and interest costs.
       There being no objection, the material was ordered to be 
     printed in the Record, as follows:

                                           HOLLING'S BUDGET REALITIES
----------------------------------------------------------------------------------------------------------------
                                                                                                        Annual
                                    U.S. budget                 Unified       Actual                  increases
                                     (outlays)     Borrowed     deficit      deficit      National   in spending
        President and year              (In      trust funds   with trust    without        debt         for
                                     billions)    (billions)     funds     trust funds   (billions)    interest
                                                               (billions)   (billions)                (billions)
----------------------------------------------------------------------------------------------------------------
Truman:
    1946..........................         55.2         -5.0        -15.9        -10.9        271.0  ...........
    1947..........................         34.5         -9.9          4.0        +13.9        257.1  ...........
    1948..........................         29.8          6.7         11.8         +5.1        252.0  ...........
    1949..........................         38.8          1.2          0.6         -0.6        252.6  ...........
    1950..........................         42.6          1.2         -3.1         -4.3        256.9  ...........
    1951..........................         45.5          4.5          6.1         +1.6        255.3  ...........
    1952..........................         67.7          2.3         -1.5         -3.8        259.1  ...........
    1953..........................         76.1          0.4         -6.5         -6.9        266.0  ...........
    1954..........................         70.9          3.6         -1.2         -4.8        270.8  ...........
Eisenhower:
    1955..........................         68.4          0.6         -3.0         -3.6        274.4  ...........
    1956..........................         70.6          2.2          3.9         +1.7        272.7  ...........
    1957..........................         76.6          3.0          3.4         +0.4        272.3  ...........
    1958..........................         82.4          4.6         -2.8         -7.4        279.7  ...........
    1959..........................         92.1         -5.0        -12.8         -7.8        287.5  ...........
    1960..........................         92.2          3.3          0.3         -3.0        290.5  ...........
    1961..........................         97.7         -1.2         -3.3         -2.1        292.6  ...........
    1962..........................        106.8          3.2         -7.1        -10.3        302.9          9.1
Kennedy:
    1963..........................        111.3          2.6         -4.8         -7.4        310.3          9.9
    1964..........................        118.5         -0.1         -5.9         -5.8        316.1         10.7
Johnson:
    1965..........................        118.2          4.8         -1.4         -6.2        322.3         11.3
    1966..........................        134.5          2.5         -3.7         -6.2        328.5         12.0
    1967..........................        157.5          3.3         -8.6        -11.9        340.4         13.4
    1968..........................        178.1          3.1        -25.2        -28.3        368.7         14.6
    1969..........................        183.6          0.3          3.2         +2.9        365.8         16.6
    1970..........................        195.6         12.3         -2.8        -15.1        380.9         19.3
Nixon:
    1971..........................        210.2          4.3        -23.0        -27.3        408.2         21.0
    1972..........................        230.7          4.3        -23.4        -27.7        435.9         21.8
    1973..........................        245.7         15.5        -14.9        -30.4        466.3         24.2
    1974..........................        269.4         11.5         -6.1        -17.6        483.9         29.3
    1975..........................        332.3          4.8        -53.2        -58.0        541.9         32.7
Ford:
    1976..........................        371.8         13.4        -73.7        -87.1        629.0         37.1
    1977..........................        409.2         23.7        -53.7        -77.4        706.4         41.9
Carter:
    1978..........................        458.7         11.0        -59.2        -70.2        776.6         48.7
    1979..........................        503.5         12.2        -40.7        -52.9        829.5         59.9
    1980..........................        590.9          5.8        -73.8        -79.6        909.1         74.8
    1981..........................        678.2          6.7        -79.0        -85.7        994.8         95.5
Reagan:
    1982..........................        745.8         14.5       -128.0       -142.5      1,137.3        117.2
    1983..........................        808.4         26.6       -207.8       -234.4      1,371.7        128.7
    1984..........................        851.8          7.6       -185.4       -193.0      1,564.7        153.9
    1985..........................        946.4         40.5       -212.3       -252.8      1,817.5        178.9
    1986..........................        990.3         81.9       -221.2       -303.1      2,120.6        190.3
    1987..........................      1,003.9         75.7       -149.8       -225.5      2,346.1        195.3
    1988..........................      1,064.1        100.0       -155.2       -255.2      2,601.3        214.1
    1989..........................      1,143.2        114.2       -152.5       -266.7      2,868.3        240.9
Bush:
    1990..........................      1,252.7        117.4       -221.2       -338.6      3,206.6        264.7
    1991..........................      1,323.8        122.5       -269.4       -391.9      3,598.5        285.5
    1992..........................      1,380.9        113.2       -290.4       -403.6      4,002.1        292.3
    1993..........................      1,408.2         94.3       -255.0       -349.3      4,351.4        292.5
Clinton:
    1994..........................      1,460.6         89.2       -203.1       -292.3      4,643.7        296.3
    1995..........................      1,514.6        113.4       -163.9       -277.3      4,921.0        332.4
    1996..........................      1,453.1        153.5       -107.4       -260.9      5,181.9        344.0
    1997..........................      1,601.2        165.9        -21.9       -187.8      5,369.7        355.8
    1998..........................      1,651.4        179.0         70.0       -109.0      5,478.7        363.8
    1999..........................      1,704.5        250.5        122.7       -127.8      5,606.5        353.5
    2000..........................      1,769.0        234.5        176.0        -58.5      5,665.0        362.0
    2001..........................      1,839.0        262.0        177.0        -85.0      5,750.0        371.0
----------------------------------------------------------------------------------------------------------------
* Historical Tables, Budget of the US Government FY 1998; Beginning in 1962 CBO'S 2001 Economic and Budget
  Outlook.

       Mr. Hollings. Mr. President, Lyndon Johnson balanced the 
     budget in 1969. At that time, the national debt was $365 
     billion with an interest cost of only $16 billion. Now, under 
     a new generation without the cost of a war, the debt has 
     soared to $5.6 trillion with annual interest costs of $365 
     billion. That is right. We spend $1 billion a day for 
     nothing. It does not buy any defense, any education, any 
     health care, or highways. Astoundingly, since President 
     Johnson balanced the budget, we have increased spending $349 
     billion for nothing.
       Early each morning, the Federal Government goes down to the 
     bank and borrows $1 billion and adds it to the national debt. 
     We have not had a surplus for 30 years. Senator Trent Lott, 
     commenting on President Clinton's State of the Union Address, 
     said the talk cost $1 billion a minute. For an hour-and-a-
     half talk, that would be $90 billion a year. Governor George 
     W. Bush's tax cut costs $90 billion a year. Together, that is 
     $180 billion. Just think, we can pay for both the Democratic 
     and Republican programs with the money we are spending on 
     interest and still have $185 billion to pay down the national 
     debt. Instead, the debt increases, interest costs increase, 
     while all in town, all in the Congress, shout: Surplus, 
     surplus, surplus.
       Understand the game. Ever since President Johnson's 
     balanced budget, the Government has spent more each year than 
     it has taken in--a deficit. The average deficit for the past 
     30 years was $175 billion a year. This is with both 
     Democratic and Republican Presidents and Democratic and 
     Republican Congresses. Somebody wants to know why the economy 
     is good? If you infuse $175 billion a year for some 30 years 
     and do not pay for it, it ought to be good.
       The trick to calling a deficit a surplus is to have the 
     Government borrow from itself. The Federal Government, like 
     an insurance company, has various funds held in reserve to 
     pay benefits of the program--Social Security, Medicare, 
     military retirement, civilian retirement, unemployment 
     compensation,

[[Page S7001]]

     highway funds, airport funds, railroad retirement funds.
       Mr. President, I ask unanimous consent to print in the 
     Record a list of trust funds looted to balance this budget.
       There being no objection, the material was ordered to be 
     printed in the Record, as follows:

 
------------------------------------------------------------------------
                                            1998       1999       2000
------------------------------------------------------------------------
Social Security........................        730        855      1,009
Medicare:
    HI.................................        118        154        176
    SMI................................         40         27         34
Military Retirement....................        134        141        149
Civilian Retirement....................        461        492        522
Unemployment...........................         71         77         85
Highway................................         18         28         31
Airport................................          9         12         13
Railroad Retirement....................         22         24         25
Other..................................         53         59         62
                                        --------------------------------
      Total............................      1,656      1,869      2,106
------------------------------------------------------------------------

       Mr. Hollings. Mr. President, these funds are held in trust 
     for the specific purpose for which the taxes are collected.
       Under corporate law, it is a felony to pay off the company 
     debt with the pension fund. But in Washington we pay down the 
     public debt with trust funds, call it a surplus, and they 
     give us the ``Good Government'' award.
       To make it sound correct, we divide the debt in two: The 
     public debt and the private debt. Of course, our Government 
     is public, and the law treats the debt as public without 
     separation. The separation allows Washington politicians to 
     say: We have paid down the public debt and have a surplus. 
     There is no mention, of course, that the Government debt is 
     increased by the same amount that the public debt is 
     decreased. It is like paying off your MasterCard with your 
     Visa card and saying you do not owe anything. Dr. Dan 
     Crippen, the Director of the Congressional Budget Office, 
     describes this as ``taking from one pocket and putting it in 
     the other.''
       For years we have been using the trust funds to report a 
     unified budget and a unified deficit. This has led people to 
     believe the Government was reporting net figures. It sounded 
     authentic. But as the unified deficit appeared less and less, 
     the national debt continued to increase. While the unified 
     deficit in 1997 was $21.9 billion, the actual deficit was 
     $187.8 billion. In 1998 the unified budget reported a surplus 
     of $70 billion, but actually there was a deficit of $109 
     billion. In 1999 the ``unified surplus'' was $124 billion, 
     but the actual deficit was $127.8 billion.
       Now comes the Presidential campaign. Social Security is a 
     hot topic. Both parties are shouting: Save Social Security. 
     Social Security lockbox. The economy is humming, booming. 
     With high employment, the Social Security revenues have 
     increased. It appears that, separate from Social Security, 
     there will be enough trust fund money to compute a surplus. 
     We have reached the millennium--Utopia--enough money to 
     report a surplus without spending Social Security.
       Washington jargon now changes. Instead of a ``unified 
     budget,'' the Government now reports an ``on-budget'' and an 
     ``off-budget.'' This is so we can all call it an on-budget 
     surplus, meaning without Social Security. But to call it an 
     on-budget surplus, the Government spends $96 billion from the 
     other trust funds.
       We ended last year with a deficit of $128 billion--not a 
     surplus. The President's budget just submitted shows an 
     actual deficit each year for the next 5 years. Instead of 
     paying down the debt, the President shows, on page 420 of his 
     budget, the debt increasing from the year 2000 to the year 
     2013--$5.686 trillion to $6.815 trillion, an increase of 
     $1.129 trillion.
       They are all talking about paying off the debt by 2013, and 
     the actual document they submit shows the debt increasing 
     each year, and over that period an increase of over $1 
     trillion.
       Each year, Congress spends more than the President's 
     budgets. There is no chance of a surplus with both sides 
     proposing to reduce revenues with a tax cut. But we have a 
     sweetheart deal: The Republicans will call a deficit a 
     surplus, so they can buy the vote with tax cuts; the 
     Democrats will call the deficit a surplus, so they can buy 
     the vote with increased spending. The worst abuse of campaign 
     finance is using the Federal budget to buy votes.
       Alan Greenspan could stop this. He could call a deficit a 
     deficit. Instead, appearing before Congress in his 
     confirmation hearing, Greenspan, talking of the Federal 
     budget, stated: ``I would fear very much that these huge 
     surpluses . . .'' and on and on. We are in real trouble when 
     Greenspan calls huge deficits ``huge surpluses.'' Greenspan 
     thinks his sole role is to protect the financial markets. He 
     does not want the U.S. Government coming into the market 
     borrowing billions to pay its deficit, crowding out private 
     capital, and running up interest costs.
       But Congress' job is to not only protect the financial 
     markets but the overall economy. Our job, as the board of 
     directors for the Federal Government, is to make sure the 
     Government pays its bills. In short, our responsibility is to 
     eliminate waste.
       The biggest waste of all is to continue to run up the debt 
     with devastating interest costs for nothing. In good times, 
     the least we can do is put this Government on a pay-as-you-go 
     basis. Greenspan's limp admonition to ``pay down the debt'' 
     is just to cover his backside. He knows better. He should 
     issue a clarion call to stop increasing the debt. While he is 
     raising interest rates to cool the economy, he should 
     categorically oppose tax cuts to stimulate it.
       Our only hope is the free press. In the earliest days, 
     Thomas Jefferson observed, given a choice between a free 
     government and a free press, he would choose the latter. 
     Jefferson believed strongly that with the press reporting the 
     truth to the American people, the Government would stay free.
       Our problem is that the press and media have joined the 
     conspiracy to defraud. They complain lamely that the Federal 
     budget process is too complicated, so they report 
     ``surplus.'' Complicated it is. But as to being a deficit or 
     a surplus is clear cut; it is not complicated at all. All you 
     need to do is go to the Department of the Treasury's report 
     on public debt. They report the growth in the national debt 
     every day, every minute, on the Internet at 
     ``www.publicdebt.treas.gov.''
       In fact, there is a big illuminated billboard on Sixth 
     Avenue in New York that reports the increase in the debt by 
     the minute. At present, it shows that we are increasing the 
     debt every minute by $894,000. Think of that--$894,000 a 
     minute. Of course, increase the debt, and interest costs 
     rise. Already, interest costs exceed the defense budget. 
     Interest costs, like taxes, must be paid. Worse, while 
     regular taxes support defense, and other programs, interest 
     taxes support waste. Running a deficit of over $100 billion 
     today, any tax cut amounts to an interest tax increase--an 
     increase in waste.
       If the American people realized what was going on, they 
     would run us all out of town.

  Mr. HOLLINGS. I ask unanimous consent the Public Debt to the Penny, 
issued by the Secretary of the Treasury, dated as of last Friday, July 
14, be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                      THE PUBLIC DEBT TO THE PENNY
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Current:
  07/14/2000..................................     $5,666,749,557,909.16
                                               =========================
Current month:                                           Amount
  07/13/2000..................................     $5,666,740,403,750.26
  07/12/2000..................................      5,664,141,886,637.91
  07/11/2000..................................      5,665,065,032,353.04
  07/10/2000..................................      5,662,949,608,628.38
  07/07/2000..................................      5,664,950,120,488.65
  07/06/2000..................................      5,665,885,115,450.41
  07/05/2000..................................      5,663,895,163,292.22
  07/03/2000..................................      5,656,715,920,235.71
Prior months:
  06/30/2000..................................      5,685,938,087,296.66
  05/31/2000..................................      5,647,169,888,532.25
  04/28/2000..................................      5,685,108,228,594.76
  03/31/2000..................................      5,773,391,634,682.91
  02/29/2000..................................      5,735,333,348,132.58
  01/31/2000..................................      5,711,285,168,951.46
  12/31/1999..................................      5,776,091,314,225.33
  11/30/1999..................................      5,693,600,157,029.08
  10/29/1999..................................      5,679,726,662,904.06
Prior fiscal years:
  09/30/1999..................................      5,656,270,901,615.43
  09/30/1998..................................      5,526,193,008,897.62
  09/30/1997..................................      5,413,146,011,397.34
  09/30/1996..................................      5,224,810,939,135.73
  09/29/1995..................................      4,973,982,900,709.39
  09/30/1994..................................      4,692,749,910,013.32
  09/30/1993..................................      4,411,488,883,139.38
  09/30/1992..................................      4,064,620,655,521.66
  09/30/1991..................................      3,665,303,351,697.03
  09/28/1990..................................      3,233,313,451,777.25
  09/29/1989..................................      2,857,430,960,187.32
  09/30/1988..................................      2,602,337,712,041.16
  09/30/1987..................................      2,350,276,890,953.00
------------------------------------------------------------------------
Source: Bureau of the Public Debt.

  Mr. HOLLINGS. I also ask unanimous consent that the public Interest 
Expense on the Public Debt Outstanding, issued by the Secretary of the 
Treasury, be printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

            Interest Expense on the Public Debt Outstanding

       The monthly Interest Expense represents the interest 
     expense on the Public Debt Outstanding as of each month end. 
     The interest expense on the Public Debt includes interest for 
     Treasury notes and bonds; foreign and domestic series 
     certificates of indebtedness, notes and bonds; Savings Bonds; 
     as well as Government Account Series (GAS), State and Local 
     Government series (SLGs), and other special purpose 
     securities. Amortized discount or premium on bills, notes and 
     bonds is also included in interest expense.
       The fiscal year Interest Expense represents the total 
     interest expense on the Public Debt Outstanding for a given 
     fiscal year. This includes the months of October through 
     September.

Fiscal year 2000:                                     Interest expense
    June..........................................    $75,884,057,388.85
    May...........................................     26,802,350,934.54
    April.........................................     19,878,902,328.72
    March.........................................     20,889,017,596.95
    February......................................     20,778,646,308.19
    January.......................................     19,689,955,250.71
    December......................................     73,267,794,917.58
    November......................................     25,690,033,589.51
    October.......................................     19,373,192,333.69
                                                   ---------------------
      Fiscal year total...........................    302,253,950,648.74
                                                   =====================
Available historical data--fiscal year end:
    1999..........................................    353,511,471,722.87
    1998..........................................    363,823,722,920.26
    1997..........................................    355,795,834,214.66
    1996..........................................    343,955,076,695.15

[[Page S7002]]

 
    1995..........................................    332,413,555,030.62
    1994..........................................    296,277,764,246.26
    1993..........................................    292,502,219,484.25
    1992..........................................    292,361,073,070.74
    1991..........................................    286,021,921,181.04
    1990..........................................    264,852,544,615.90
    1989..........................................    240,863,231,535.71
    1988..........................................    214,145,028,847.73
 
E-mail your questions and comments about this page.

  Mr. HOLLINGS. I ask unanimous consent that table 23 of the midsession 
review by the President of the United States, dated June 26, be printed 
in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                                        TABLE 23.--FEDERAL GOVERNMENT FINANCING AND DEBT
                                                                                    [In billions of dollars]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  2000      2001      2002      2003      2004      2005      2006      2007      2008      2009      2010      2011      2012
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Financing:
  Unified surplus or deficit (-)..............................       211       228       224       236       255       268       286       304       332       364       416       500       547
    Off-budget surplus:
      Social Security solvency lock-box:
        Social Security solvency transfers....................  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........       123       147
        Other Social Security surplus (including Postal)......       148       160       176       191       204       226       239       256       273       288       306       316       335
      Medicare HI solvency lock-box:
        Medicare solvency transfers...........................  ........        31        14  ........  ........  ........  ........  ........         9        21        40         2         4
        Other Medicare HI surplus.............................        24        29        33        39        40        41        47        46        48        51        57        58        60
    On-budget surplus.........................................        39         9         1         6        10         1         1         1         2         4        14         1         1
  Means of financing other than borrowing from the public:
    Premiums paid (-) on buybacks of Treasury securities......        -5        -2  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........
      Changes in:
        Treasury operating cash balance.......................         6        10  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........
        Checks outstanding, deposit funds, etc................        -4  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........
      Seigniorage on coins....................................         2         2         2         2         2         2         2         2         2         2         2         2         2
      Less: Equity purchases by Social Security trust fund....  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........  ........       -63       -82
      Less: Net financing disbursements:
        Direct loan financing accounts........................       -27       -14       -18       -17       -16       -15       -15       -15       -15       -15       -15       -15       -15
        Guaranteed loan financing accounts....................  ........         1         1         1         2         2         2         2         2         2         2         3         3
                                                               ---------------------------------------------------------------------------------------------------------------------------------
          Total, means of financing other than borrowing from        -27        -3       -14       -14       -12       -11       -12       -11       -11       -11       -11       -74       -93
           the public.........................................
            Total, repayment of debt held by the public.......       185       225       210       222       243       257       274       293       321       353       406       426       454
  Change in debt held by the public...........................      -184      -225      -210      -222      -243      -257      -274      -293      -321      -353      -406      -426      -454
Debt Subject to Statutory Limitation, End of Year:
  Debt issued by Treasury.....................................     5,529     5,683     5,748     5,809     5,861     5,921     5,982     6,040     6,094     6,146     6,189     6,240     6,525
  Adjustment for Treasury debt not subject to limitation and         -15       -15       -15       -15       -15       -15       -15       -15       -15       -15       -15       -15       -15
   agency debt subject to limitation..........................
  Adjustment for discount and premium.........................         5         5         5         5         4         4         4         4         3         3         2         2         2
                                                               ---------------------------------------------------------------------------------------------------------------------------------
      Total, debt subject to statutory limitation.............     5,519     5,673     5,737     5,798     5,850     5,910     5,971     6,028     6,082     6,134     6,176     6,227     6,511
Debt Outstanding, End of Year:
  Gross Federal debt:
    Debt issued by Treasury...................................     5,529     5,683     5,748     5,809     5,861     5,921     5,982     6,040     6,094     6,146     6,189     6,240     6,525
    Debt issued by other agencies.............................        28        28        27        26        24        22        21        19        19        19        18        18        18
                                                               ---------------------------------------------------------------------------------------------------------------------------------
      Total, gross Federal debt...............................     5,557     5,711     5,774     5,834     5,885     5,943     6,003     6,060     6,113     6,165     6,208     6,259     6,543
  Held by:
    Debt securities held as assets by Government accounts.....     2,108     2,487     2,760     3,042     3,335     3,651     3,985     4,334     4,708     5,113     5,561     6,038     6,543
      Social Security.........................................     1,005     1,165     1,341     1,532     1,737     1,963     2,201     2,457     2,729     3,014     3,318     3,692     4,090
      Federal employee retirement.............................       681       718       756       792       828       864       899       932       965       997     1,027     1,056     1,085
      Other...................................................       422       604       663       718       770       823       885       944     1,014     1,102     1,216     1,290     1,368
    Debt securities held as assets by the public..............     3,449     3,224     3,014     2,792     2,550     2,293     2,018     1,726     1,405     1,052       646       220  ........
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

  Mr. HOLLINGS. Mr. President, right to the point. Surplus, surplus, 
everywhere man cries surplus--paraphrasing Patrick Henry. But there is 
no surplus.
  I know not, of course, what others may say, but as for me, I want to 
pay down the debt rather than engage in this shabby charade. As a 
result, the only way to do that and pay down the debt is stop this 
sweetheart deal of giving a little on spending increases and giving a 
little again, of course, on tax cuts. We do not have a surplus to 
divide. That is the point of my particular amendment.
  I appreciate the distinguished Senator from Colorado giving me these 
few moments, and I yield the floor.
  The PRESIDING OFFICER (Mr. Bunning). The Senator from Colorado.

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