[Congressional Record (Bound Edition), Volume 147 (2001), Part 11]
[Senate]
[Pages 16265-16266]
[From the U.S. Government Publishing Office, www.gpo.gov]



                             BUDGET SURPLUS

  Mr. DURBIN. Mr. President, most of us are returning today for the 
first time since the August recess. It was a period of time when we had 
a chance to spend a little vacation time with our families, and I was 
happy to be part of that process and to be reunited with my extended 
family and have a great time. It was also a time to be back in our 
States to travel around, to listen and to hear what is on the minds of 
the people we represent, and for a few of us a chance to perhaps take a 
few days to go overseas and to be part of the global dialog which comes 
with this job as much as our dialog with the people we represent.
  In these past 4 weeks, we have been busy and most of us have enjoyed 
it, but now we are back to work. We come back to work with additional 
information and more views on the issues that we are about to debate. 
What a difference a month has made. Many of us did not believe in this 
short period of time there could be such a turn of fortune as we have 
seen occur with the recent report on the status of surpluses in our 
Federal budget.
  It was not that long ago we were deep in red ink in Washington with 
deficits in every direction. We saw ourselves building up a national 
debt to $5.7 trillion, a national mortgage which we still shoulder, a 
burden which we carry, and our children and grandchildren are likely to 
carry as well.
  The good news, of course, starting in 1993 we began to turn the 
corner on that debt with an expanding positive economy, with the 
creation of jobs and new businesses, profits to build up retirement 
accounts. People were making more money and paying taxes, providing 
more revenue to the Government. We found ourselves in a surplus 
situation. We were exalting after so many years and years of deficits 
under President Reagan, President George Bush, and then for the first 
few years the Clinton administration. We finally came out of that dark 
veil and now we are in a position to enjoy the surplus.
  The President who was elected last November, President George Bush, 
said the surpluses give an opportunity to enact a massive tax cut, one 
of the largest tax cuts in our history. Many members of his party, as 
well as a few on this side of the aisle, joined with the President to 
enact this tax cut, believing that the surpluses were virtually as far 
as the eye could see. Why not take this extra money in Washington and 
give it back to the people of the United States? The logic was simple. 
It seemed so clear.
  Some Members believed that caution was the guide to which we should 
turn. Instead of spending a possible surplus, we should wait to see if 
the American economy would recover strongly, and how quickly, and 
whether it would generate a surplus, and before we committed the 
possible future surplus, we ought to take care, lest we find ourselves 
in a deficit situation.
  We return in the first few days of September of the year 2001 to find 
President Bush's tax cut, in addition to the state of the American 
economy, has cost the projected surplus which the President said we 
would have. We find ourselves knocking on the door, without that 
surplus, going back into, if not a deficit, the situation where we have 
to go to trust funds in order to pay for the ordinary expenses of 
Government. Which trust funds? The largest--Medicare and Social 
Security. In a short period of time--just a few months--with this new 
President we have gone from the euphoria of surpluses to now worrying 
over whether or not we are going to endanger the Social Security trust 
fund. It tells you we have come very far very fast.
  The tax rebates that many people have received in the last few weeks 
of $300 and $600 are welcome to many families who need to buy supplies 
for kids to go back to school this week, or clothing, or to pay off 
some of the debts they might have. It does not appear at this moment it 
will show any great impact on the economy. A general tax cut that helps 
lower and middle-income families is one I have supported. I believe, as 
many do, that we should be very careful in how much of this projected 
surplus we dedicate to that tax cut until we are certain we have it in 
hand.
  During the campaign, President Bush and many Members of Congress said 
that when we reached the tough times in the future, one area would be 
sacred: We would not reach into the Social Security trust fund to fund 
the ordinary expenses of Government. President Bush, much like his 
father, who said, ``Read my lips, no new taxes,'' pronounced during the 
course of his campaign that as President he would not raid the Social 
Security nor the Medicare trust fund. Now we find ourselves

[[Page 16266]]

perilously close to that situation after just a few months into the new 
Presidency.
  Many of the conservative Republican writers are saying: Why are you 
worried about a Social Security trust fund? It is not that important. I 
think we know better. Those who notice every time we receive a paycheck 
there is more and more money taken out for Social Security have asked 
some hard questions. What is this all about? It is to shore up a 
surplus in Social Security to protect the future, the need for Social 
Security benefits for baby boomers and others. If we reach into that 
Social Security trust fund to take that money out now, it could 
endanger the liquidity and solvency of Social Security in years to 
come. That is irresponsible. It is wrong. We shouldn't be in this 
predicament.
  Many of the conservative writers who say not to worry about 
protecting the Social Security trust fund do not have much passion for 
Social Security anyway. These are people who have criticized it in 
years gone by as a big government scheme taking too much money, one 
that we ought to change so people could invest in the stock market 
without much concern about the impact on those who are relying on it. 
Some 40 million Americans rely on Social Security. It is a major source 
of income for many. We should not take it lightly.
  We are faced with a predicament as we return: How will we meet the 
obligations of Government and the requirements for new spending and do 
it without raiding Social Security and the Medicare trust fund? The 
President has said through his spokesman, Mitch Daniels of the Office 
of Management and Budget, that we have the second largest surplus in 
the history of the United States. He said this publicly, and they have 
said it many times. It is part of the George W. Bush administration's 
``don't worry, be happy'' refrain.
  I think Americans ought to think twice. The second largest surplus in 
our history is the Social Security trust fund surplus. It is money 
dedicated to Social Security. It is not the general revenue of this 
country to be spent on everything that we might like. It should be 
protected. The Republicans come back and say: Wait a minute. In the 
deep dark days of the deficits, even Democratic Congresses spent the 
Social Security trust fund.
  They are correct. And I can say we did some very desperate things in 
those years when we were seeing multibillion-dollar deficits, things we 
vowed we would never do again when we got into the era of the surplus. 
We came together on a bipartisan basis with over 400 votes in the 
House, a substantial majority in the Senate, and vowed we would never 
touch the Social Security trust fund once we had surpluses again.
  Here we are, just a few months into the new administration, facing 
that kind of pressure. How do we take care of our national needs, 
whether it is the Department of Defense saying they need more modern 
weaponry to protect the United States or whether it is the needs of 
public education? The President said he would be an education 
President; he would find a bipartisan way to deal with it. And now we 
have a bill languishing in the conference committee because we have not 
come up with the funds to pay for education.
  If you believe, as I do, that education is critical to the future of 
this country, we certainly should invest in it. But President Bush's 
decisions on tax cuts and other budget priorities have pushed us in a 
corner where precious few funds are available for the high priorities.
  The same is true on prescription drugs under Medicare. Most promised 
we would work for a prescription drug benefit under Medicare--
universal, voluntary--to help seniors pay for prescriptions, and now we 
find because of the Bush budget and the Bush tax cut that we have very 
few dollars available to even dedicate to a bipartisan national 
priority.
  The same thing is true on energy policy. Just a few months ago, 
President Bush sent a message which said we ought to do something about 
our dependence on foreign energy sources, so let's invest more money in 
research to find alternative fuels, sustainable energy, ways to use 
coal in States such as Illinois in an environmentally responsible way. 
That takes money. We now turn to find that President Bush's budget and 
his tax policy have taken those funds off the table.
  The same thing is true when it comes to the new farm bill. We hoped 
to have a new farm bill this fall. I hope we can. I have seen in 
Illinois and across my State what has happened to the farm economy over 
the last 4 or 5 years. If we are to have a new farm bill and dedicate 
resources to it, the obvious question is: Where will they come from?
  When we look at the state of the economy in America today, people are 
rightfully concerned. The President went to speak to members of labor 
unions yesterday to tell them he felt their pain, their worry, and 
their anguish over the state of our economy. But what we need is real 
leadership from the President and from Congress on a bipartisan basis 
to come up with a roadmap and guidelines, so we can return to the era 
of economic growth and prosperity.
  Over a period of 9 years, we saw a dramatic buildup in the American 
economy: Over 200 million new jobs, new businesses, more home ownership 
than any time in our history. Now, of course, we see this correction in 
our economy. We have lost a half-million jobs this year.
  In closing, we have an opportunity in the weeks ahead to come 
together and concede the obvious. The Bush budget and the Bush tax 
policy were things that, frankly, should have been put off until we 
were certain of the surpluses we would have. Now we know those 
surpluses do not exist.
  It is time for us to come together on a bipartisan basis to rewrite 
this budget to meet our Nation's priorities and protect the Social 
Security and Medicare trust funds.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Nevada.
  Mr. REID. Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. SARBANES. Mr. President, I ask unanimous consent the order for 
the quorum call be dispensed with.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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