[Congressional Record (Bound Edition), Volume 145 (1999), Part 2]
[House]
[Page 1662]
[From the U.S. Government Publishing Office, www.gpo.gov]




                      KEEPING THE BUDGET BALANCED

  The SPEAKER pro tempore (Mr. Shimkus). Under a previous order of the 
House, the gentleman from Michigan (Mr. Smith) is recognized for 5 
minutes.
  Mr. SMITH of Michigan. Mr. Speaker, the Committee on the Budget has 
been hearing testimony from Jacob Lew, the Office of Management and 
Budget Director. I think there are some portions of the President's 
budget that America should be very aware of.
  Number one, the budget substantially increases spending and the size 
of government, and, therefore, the opportunity to control more of our 
individual lives. The President's budget breaks the budget caps that 
the budget and this Congress agreed to two years ago this coming 
spring. In the year ending in 2000, there is a $17 billion expenditure 
in excess of those discretionary caps that we imposed during the 
balanced budget resolution.
  I am concerned because the discipline of reaching the goal of 
balancing the budget of the Federal Government and the discipline that 
that has allowed us, encouraging us individually and collectively to do 
what was necessary in slowing down the growth of government, has 
resulted in very strong, good rewards.
  We now have a surplus. In 1995, when the majority control changed 
hands in this body, we were looking at $200 billion deficits every year 
for the foreseeable future. Last year we had a surplus of about $70 
billion. This year we are looking at a surplus that could be $10 
billion higher, maybe more.
  But, again, we need to remind ourselves that this surplus comes from 
the extra taxes that workers are paying for Social Security. In other 
words, we are taking that surplus that is being sent in to support 
Social Security and using some of that money, some of that surplus, for 
other spending, but, even so, we still have an overall unified budget 
surplus.
  I think it is interesting that just last week the Congressional 
Budget Office came out with their economic projections. In their 
economic projections, they said if we stay with the current caps on 
spending that we imposed on the balanced budget resolution about two 
years ago, we would not have to increase the national debt of this 
country, the debt limit for the national debt of this country.
  Let me say that again: Currently the debt that somehow our kids and 
our grandkids are going to have to pay back, the national debt of this 
country, is $5.5 trillion. The debt limit, and Congress is responsible 
to decide how deep we should be going in debt, the current debt limit 
legislation allows us to go in debt up to $5.95 trillion. I would hope 
that we do not exceed that. I would hope that we do not obligate our 
kids and grandkids.
  I am also concerned about the President's proposal because it 
increases taxes $108 billion over five years. Do you remember last 
year, this side of the aisle, the Republicans, suggested that we have a 
$10 billion tax cut. There was great anxiety on the part of many, 
saying that was too much of a tax cut.
  But, again, this budget that the President has just sent us increases 
taxes by $108 billion. I include fee increases as part of that tax 
increase, because really fees are in effect real taxes. There is $82 
billion technically in taxes and $26 billion in fees.
  I am concerned that the budget reduces money for research. Look, the 
rest of the world is gaining on us. They are trying to learn how to 
produce as efficiently as we are. We have got strong challenges for the 
future. It means not only should we be frugal in not allowing 
government to grow, reducing our debt, the overall debt of this 
country, so interest rates will stay low, so that we can encourage 
economic development and the strength of our economy, but it also means 
we have to be on the cutting edge of research. I hope as we move ahead 
on this budget resolution, we will continue to be frugal in cutting out 
waste in the Federal Government and also we will be looking at 
prioritizing existing spending to maximize the chance that we can stay 
ahead of the rest of the world in terms of productivity and 
competitiveness and ultimately maintain our standard of living.

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