[Congressional Record (Bound Edition), Volume 147 (2001), Part 1]
[Senate]
[Pages 1096-1098]
[From the U.S. Government Publishing Office, www.gpo.gov]



                        AMERICA NEEDS A TAX CUT

  Mr. BROWNBACK. Mr. President, I rise today to speak on a different 
issue, one of great importance and one I think we are going to see take 
place, and that is overdue tax relief for the American people.
  The Congressional Budget Office has just announced the 10-year budget 
surplus projection has increased to $5.6 trillion. When I came to the 
House of Representatives in 1994, it would have been hard to fathom 
numbers of this nature, but through fiscal restraint, a plan put in 
place to limit the amount of spending over a period of years, and a 
healthy, growing economy, we are now to the point where we are 
projecting and experiencing budget surpluses. It is wonderful that we 
have this opportunity.
  I also point out to the American public, in case you are worried the 
Republicans in Congress are taking their eyes off the ball of fiscal 
discipline and paying down the debt, we are paying down the debt, and 
we will continue to pay down the debt.
  Over the past 3 years, we paid down over $360 billion of public 
debt--$360 billion over 3 years. We will continue at that pace, if not 
greater, of reducing the Federal debt. We are going to continue to do 
that. But it also is possible, and I suggest necessary, for us to do 
the needed tax cuts and tax relief the American public deserves. 
America's taxpayers are overpaying the bill for their Government. More 
specifically, it is a tax on their success. It is, in fact, a tax on 
the robust economic growth we have experienced and which now seems to 
be slowing.
  Of the $5.6 trillion, we have already committed to save $2.7 trillion 
for Social Security, and we should do that. That still leaves almost $3 
trillion. This is separate and distinct from the Social Security trust 
fund. We have put that in a lockbox. The Republican Congress said we 
are building a lockbox; we are going to put the Social Security surplus 
in it. That is the $2.7 trillion of Social Security income, leaving $3 
trillion over the next 10 years for tax cuts and debt reduction. We can 
do both. We must do both.

[[Page 1097]]

  With the announcement by the Congressional Budget Office last week, 
along with Federal Reserve Chairman Greenspan's comments, there is no 
longer any credible excuse not to cut taxes for the American people. 
There is more than enough money to cut taxes, protect Social Security, 
and continue on our path of debt reduction--the $360 billion paydown we 
have done over the past 3 years. Americans demand fiscal 
responsibility, and they deserve a tax cut.
  I am hopeful we will be able to pass meaningful tax relief this 
session, sooner rather than later. I think that is important for the 
economy, I think it is important for the American people, and it is 
necessary. We have worked in a bipartisan fashion to balance the 
budget, to pay down the debt, and protect Social Security. Now we must 
work in the same fashion to give the American people a tax cut they 
deserve.
  As virtually everyone in the free world knows, our economy is 
slowing. Some are even concerned we are teetering on the brink of a 
recession. Recent reports indicate consumer confidence has now dipped 
to its lowest level since December of 1996, which could have the effect 
of fueling further fears of a slow downturn into a recession.
  The last month and a half has shown the accuracy of President Bush's 
remarks about the state of the economy as he was in the midst of 
handling his transition. We now await further action by Chairman Alan 
Greenspan. It is worthy of note that several of my colleagues on the 
other side of the aisle have urged the Chairman not to increase 
interest rates. I think that was correct. However, now it is clear the 
Fed is changing its direction. In fact, according to many economists, 
the markets are already assuming a half basis point reduction to be 
announced at the conclusion of the meeting that began yesterday.
  The Federal Reserve is doing its job to strengthen this economy and 
prevent it from going into a recession. It is now time for Congress to 
do its job, which is to cut taxes. In fact, I think as a body we need 
to worry less about the job Mr. Greenspan is doing down the street and 
more about the job we need to do on Capitol Hill.
  Both monetary and fiscal policy needs to be used to keep this economy 
from going into recession but lift it up. Our part in doing this, as 
virtually all economists will note, is to cut taxes to help stimulate 
the economy. We need to pursue a fiscal policy that reflects the needs 
of Americans and of our economy.
  Based on the surplus projections of the Congressional Budget Office, 
we have the resources available to not only realize our commitment to 
sound fiscal policy, protecting Social Security, and paying down the 
debt, but to significantly--and I want to add the point, 
significantly--reduce the tax burden faced by Americans.
  We must cut taxes now for America's working families. In fact, we 
need to pursue broader and deeper tax cuts than those proposed last 
week by my colleagues from Texas and Georgia. It is a bipartisan tax 
cut bill that was put in last week by Senators Gramm and Miller.
  We must cut taxes for two primary reasons. First, tax cuts are in 
effect an insurance policy for further economic growth because of the 
stimulating effect they would have on the economy. Second, tax cuts are 
good policy not only because they return hard-earned dollars back to 
the American people--the people who earned the dollars in the first 
place--but also because they help limit the growth of Government.
  If we do not send the surplus back to the American people in the form 
of tax cuts, Washington's big spenders will use the money to grow the 
size of Government. It is almost an iron rule of Government; if there 
is a dollar left on the table around here, it is going to get spent. It 
needs to go back to the American people because they have overpaid. And 
it will help stimulate our economy, which is one of the keys of how we 
have been able to balance the budget and pay down the debt and have a 
strong economy. If that economy weakens, we are not going to have the 
tax receipts to be able to pay down the debt or do the things that 
people would like to do as well. If the markets are any indication, we 
need to use our fiscal policy now to grow the economy, not to grow the 
Government.
  Today, we are collecting more from hard-working Americans than we 
have at any point since the conclusion of World War II. Artificially 
high tax rates used to fund our bloated Federal Government is one 
reason we are collecting so much revenue from the American people; the 
growth in the stock market and an increase in entrepreneurial activity 
is the other.
  The American people should not be taxed on success, but that is 
exactly what we are doing when we impose high rates of taxation, 
particularly on capital gains. We punish people for innovation, thrift, 
and hard work, and we penalize them for being successful. We need 
another reduction in capital gains tax rates to follow on the 1997 
reductions.
  I want to go to a particular point at this time, and that is the 
marriage penalty tax that has been in place now for a number of years. 
Twice in Congress we have passed a bill to repeal it. Now is the time 
for us to repeal it and get it signed into law by a President who 
agrees that we should repeal the marriage penalty tax.
  We have been taxing people for being married. It is a ridiculous 
policy. We have discussed it a number of times on the floor. An average 
American couple, in a two-wage-earner family, pays about $1,500 extra 
in taxes just for the privilege of being married. It is ridiculous.
  Recently, my colleague, Senator Kay Bailey Hutchison, and I 
introduced a bill to eliminate the marriage penalty. It is now clearly 
within our grasp to rid the Tax Code of this onerous, ridiculous 
penalty. I believe we must eliminate this penalty immediately.
  Unfortunately, some of the proposals being considered to reduce taxes 
fail to adequately address the marriage penalty. We need real marriage 
penalty reduction, not more gimmicks in our Tax Code. We need to double 
the standard deduction immediately. In fact, I prefer to make it 
retroactive to January 1 of this year. We also need to double the 
income subject to the marginal rate brackets for married couples to 
twice the amount it is for individuals. This accomplishes real marriage 
penalty relief.
  As we move to consideration of a reconciliation bill later this year, 
I will be pushing for broad-based marriage penalty relief. I am hopeful 
this Congress, with an enormous on-budget surplus, will be able to 
accomplish real tax cuts for American families.
  The proposal by my colleagues is a good way to start the debate on 
tax cuts, but I am hopeful we can do more than the $1.6 trillion tax 
cut. We have $3 trillion that is available, and $2.7 trillion of the 
Social Security surplus is set aside. We have $3 trillion to pay down 
debt and to be able to cut taxes. I think we can do better than the 
$1.6 trillion. I think it will be necessary for us to do that to help 
to stimulate this economy.
  Finally, I believe tax cuts work in part because they do stimulate 
economic growth and also because they help insure against an economic 
downturn. We need that insurance policy before the economic situation 
deteriorates even more.
  I would add that there is a positive psychological effect that takes 
place; when the Federal Reserve reduces the rate it charges by half 
basis points, there is a psychological point that, OK, the Fed is 
stepping in and taking action to make sure this economy does not go in 
recession. Therefore, more people say: Good, that is a positive sign. I 
am going to watch, and I am going to be maybe a little more positive.
  If the Congress would do that similarly with tax cuts, the American 
people, as well, would say: OK, they are concerned about this economy, 
but they are taking action. I can see there is light at the end of the 
tunnel.
  We should do that for its economic and stimulative effect on people's 
positive thinking of what can take place for this economy.

[[Page 1098]]

  I am hopeful that Congress will pass meaningful tax cuts earlier in 
this year rather than later. Americans deserve some tax relief. They 
have waited long enough.
  Mr. President, thank you very much for your time. I yield the floor 
and yield back any time allotted to me.
  The ACTING PRESIDENT pro tempore. By the previous order, the Senator 
from Illinois, Mr. Durbin, is recognized for 15 minutes.
  Mr. DURBIN. Thank you, Mr. President.

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