[Congressional Record (Bound Edition), Volume 147 (2001), Part 2]
[Senate]
[Pages 2452-2454]
[From the U.S. Government Publishing Office, www.gpo.gov]



          PRESIDENT BUSH'S ADDRESS TO CONGRESS AND HIS BUDGET

  Mr. FRIST. Mr. President, I rise, just for a few minutes, to comment 
on the President's address last night and the budget that he has sent 
to the Congress. It, indeed, represents a new beginning, a new start, a 
cause for hope, a cause for optimism that is reflected in the benefits 
and the advantages for every family in Tennessee, as well as across the 
United States of America.
  The budget does set a roadmap, a blueprint, as we look to the future, 
as we look to next year, the next 5 years, and the next 10 years. Very 
clearly, the President's budget does three things: No. 1, it funds 
America's priorities, as we have debated in campaigns over the last 6 
to 8 months and debated on the floor of the Senate over the past couple 
years. It funds the largest debt reduction in not just the history of 
the United States but the history of the world. And it provides fair 
and responsible tax relief.
  First and foremost, I believe it pays off historic amounts of debt. 
It provides absolutely the fastest and largest debt reduction ever seen 
in history--$2 trillion over a 10-year period.
  Secondly, it funds many programs that we are currently discussing and 
debating, and programs that we are putting together, investing in 
individual families, in children, in youth, in health care, and in 
education. It strengthens education. It allows the opportunity to 
modernize education. And as has been pointed out on the floor, it 
offers the largest spending increase of any Federal department--over 11 
percent. It triples funding for children's reading programs.
  In the field of health care--and the President mentioned it last 
night in his address--he looks in the direction of the uninsured. There 
are about 42, 43 million people uninsured. He addresses the uninsured 
by, on the one hand, saying, yes, we need to further invest in the 
National Institutes of Health, and continues that doubling, but he also 
mentioned 1,200 new community health centers that will be there 
tomorrow for people who are uninsured, who depend on those community 
health centers for their health care. That makes health care more 
accessible for all.
  He talked about refundable tax credits, again, to lower that barrier 
which stands between many people, and having the appropriate access to 
an insurance policy that will be there for acute care and chronic care 
and preventive care.
  Thirdly, the President spoke loudly and clearly when he said now is 
the time we can take advantage of a surplus that has been generated by 
hard-working men and women and families out there, a surplus that 
reflects their dollars, their hard work.
  Now is the time for responsible tax relief--using roughly one-fourth 
of the budget surplus--to provide the typical family of four paying 
income taxes as much as $1,600 of tax relief, a 50-percent tax cut for 
that typical family of four making $50,000.
  I thought last night was a time when we had the opportunity to talk 
about the hopes and dreams in an optimistic way, with a new beginning 
for every family. I do want to underscore the privilege and opportunity 
I have of working on the Budget Committee of the Senate, where we will 
go into further detail over the next several days as this budget is 
laid out before us. It is a new beginning with the President of the 
United States.
  Mr. President, I yield the floor.
  The PRESIDING OFFICER. The Senator from Texas.
  Mrs. HUTCHISON. Mr. President, I thank the Senator from Tennessee for 
talking about the President's budget plan. I, too, am very pleased that 
President Bush is keeping the promises he made to the American people 
when he was elected President of the United States. Congress is going 
to work with the President to make sure we have the balanced and 
responsible approach he has requested of Congress to work with him.
  Let's talk about the balance that is in this plan. We have a $5.6 
trillion surplus. The first and foremost responsibility we have with 
this surplus is to protect Social Security. That is exactly what we do. 
We will protect Social Security by keeping all of the Social Security 
part of the surplus in the Social Security fund.
  Secondly, we are going to spend more money for high-priority items. 
The President has outlined the high-priority items he considers are No. 
1 issues facing America today--No. 1, No. 2, and No. 3: Public 
education, national defense, and prescription drug benefits for our 
senior citizens.
  There is no question that many people believe they cannot afford the 
drugs they have to take to stay healthy. That is not a choice people 
should have to make. We want to make sure they do have the fundamental 
prescription drugs they need at a price they can afford. So we will 
have to spend more money in that area.
  National security is the major responsibility of the U.S. Government. 
States and individuals cannot protect themselves from wars or from an 
incoming ballistic missile. We must do that with all of the States 
contributing to our country and our Federal Army, Navy, Air Force, and 
Marines.
  So we have to make sure our men and women in the military have the 
health care, the educational benefits for themselves and their 
children, and the pay they deserve. These are the people on the front 
line. These are the people stepping up to the plate to protect our 
freedom--our freedom to talk on the floor today, our freedom to go to a 
playground and have safety on that playground. These are the people on 
the front line doing it. We are going to treat them well.
  Of course, we must have a public education system that allows every 
child to reach his or her full potential with a public education. We 
want no child in our country to be left behind. If we can get the 
resources to these children at the earliest levels, where they have 
basic reading skills in the third grade, where they have the ability to 
do simple basic math in the fourth grade, then we will give them the 
tools they need to be able to learn algebra and calculus and the more 
complicated math and science and reading opportunities they must be 
able to address. So we are going to fund those priorities at a higher 
level.
  We are going to pay down the debt at the greatest rate we can. We 
cannot pay down the debt fully because people would not be able to 
invest in Treasurys. We want that very safe investment for our people. 
And we want to invest for the United States. We want our Government 
money to earn interest. We don't want it to sit there. We will have 
some debt, but all of the outside-owned debt is going to be paid down, 
$2 trillion over the next 10 years.
  Last, but certainly not least, we are going to give tax relief to 
every American. Every American who is working

[[Page 2453]]

will get tax relief under the plan put forward last night by President 
Bush. We are going to simplify the tax system. We have a five-rate 
structure today: a 15-percent bracket, a 28-percent bracket, a 31-
percent bracket, a 36-percent bracket, and a 39.6-percent bracket. We 
want to lower all of those rates and only have four: a 10, 15, 25, and 
a 33.
  I thought the President said it very well last night. He thinks 
anyone in the 15-percent bracket should pay no more than 10 percent of 
his or her income to the Federal Government. As well, we don't think 
any American should pay more than one-third of what they make to the 
Federal Government, so the top bracket would be 33 percent.
  What does that mean in real terms? It means that one in five 
taxpaying families with children will no longer pay any income tax at 
all. It will completely remove 6 million American families from the tax 
rolls. A family of four making $35,000 would get a 100-percent Federal 
income tax cut--off the rolls. A family of four that makes $50,000 
would receive a 50-percent tax cut, receiving approximately $1,600 in 
relief. A family of four making $75,000 will receive a 25-percent tax 
cut. We are going to give real relief to every working American.
  We are also going to increase the earned-income tax credit to make 
sure people who are coming off welfare know that it is better to work 
and there is a reward for working rather than being on welfare. These 
are the effects that tax relief can make for every American.
  We will also double the child tax credit to make sure every family 
with children will have a $1,000-per-child tax credit rather than the 
$500-per-child tax credit they now have. We want to make sure that you 
can deduct your charitable contributions, even if you don't itemize 
deductions. We want to eliminate the death tax because we don't think 
someone in America should have to sell their family-owned business or 
their farm just to pay taxes to the Federal Government. This is not 
money that has never been taxed. It is money that was taxed when it was 
earned and taxed when it was invested. There is no need to tax it 
again. We have a projected $5.6 trillion surplus, and we do not think 
people should have to pay taxes and sell a small business and take away 
all the jobs in that small business just to pay taxes to the Federal 
Government.
  We do want to lower the Federal tax burden on the families of our 
country at the same time that we are paying down the debt so it will be 
the very minimum amount of debt required to have Government securities. 
We do want to prioritize spending so we are covering the costs that we 
know are a priority--public education, a strong national defense, 
prescription drug options under Medicare. These are the things where we 
will increase money, and we will flat line expenses that we don't need 
to increase.
  Some people say: You mean you are actually going to not spend more in 
a Government program? Well, doesn't every family budget that way? Does 
a family spend the same amount every year on the same items? No. Maybe 
your children need more in clothes this year or maybe they don't need 
more in clothes. Maybe they are OK on clothes, and so you can buy the 
new computer. You make choices in a family. That is what we need to do 
in the Federal Government as well.
  It is time we had a balanced approach. Every time I hear somebody 
criticizing the tax cut plan, it is because they want to spend more 
money. We are making Social Security secure. We are going to give more 
benefits under Medicare. My goodness, why would we want to spend more 
and more money when we have a surplus and when we are prioritizing the 
needs of the Government and when the taxpayer dollars don't belong to 
Government.
  That is the real difference. A lot of people around here think tax 
dollars belong to them. Tax dollars belong to the people who earn it, 
and they should have the choices to spend it the way they see fit for 
their families. This is not money I worked to earn, and I shouldn't 
make the decisions on how to spend it except for the overall national 
good. The overall national good should not take more than 33 percent of 
anyone's salary, and it should take the lowest amount that is 
absolutely necessary because this is money people work very hard to 
bring home for their families.
  I applaud the President for a balanced approach, for giving tax 
relief to every American who is working, for paying down the debt at 
the greatest rate that we have ever seen, for prioritizing our spending 
to increase national defense, public education, and Medicare 
prescription drug benefits, and to make sure all of our programs are 
sound and solid. We can do these things if we are responsible stewards 
of the taxpayer dollars and if we remember that the taxpayer dollars do 
not belong to the Federal Government except to the extent absolutely 
necessary. They belong to the people who earned them.
  We are going to make sure we are responsible stewards of those 
dollars that people have worked so hard to support their family.
  I will work with the President of the United States to be a 
responsible leader with the very important duty we have to the people 
who elected us to the Senate.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Wyoming.
  Mr. THOMAS. Mr. President, we have a few minutes remaining on the 
time allocated for us in morning business. I thank my friend from 
Texas. I certainly agree with her analysis of where these surplus 
dollars belong. That is the bottom line.
  Obviously, we have a responsibility to fund the programs that are 
there, programs that are important, the programs that genuinely belong 
as a responsibility of the Federal Government. We have a responsibility 
to ensure that Medicare and Social Security are there for people when 
they need it. We have a responsibility to pay down the debt. Those of 
us in my generation have spent the money, and we are going to let the 
younger generation pick up the bill. That is not what we want to do. We 
clearly have that responsibility.
  Not everyone agrees, of course, on how to do that. That is the 
purpose of this body, to debate the various options. Generally, the 
debate centers on the amount of expenditures in the Federal Government, 
the size of the Federal Government.
  There are those who believe the Federal Government has a 
responsibility to do most everything for everybody, to be the 
governance of the whole country. Others believe there is a 
constitutional limit on the kinds of things the Federal Government 
should involve itself in, that in fact the real issue ought to be to 
support local and State governments, the governments closest to the 
people, to do most of those things.
  So that debate goes on and will, I suppose, go on for a very long 
time. I was very impressed with the President's talk last night. 
Apparently, most people in the country were, according to the kinds of 
polling and questions that were asked in terms of his command of the 
issues. I think everyone was impressed with that. I don't think there 
is any question but that the President has strengthened his 
presentations as opposed to when he was a candidate. Somebody wrote 
that when he stepped into the Oval Office, he kind of transformed. That 
may be so.
  More important, of course, was the message that was sent, the things 
the President put out as priorities. Again, I was impressed that he is 
now seeking to implement those things he talked about and ran on in the 
election. That is neat. That is what you are supposed to do--put out 
the issues you are going to be for, and when you are elected, you do 
it. I think that is excellent.
  I also believe one of the refreshing things about this speech last 
evening was that it was a little different direction from what we have 
been talking about over the last 8 years--a little different direction 
in putting some priorities on things and funding things even more than 
perhaps they have been

[[Page 2454]]

funded. At the same time, we are seeking to control the size of 
Government and put a 4-percent growth rate on discretionary spending. 
It was as high as 8 percent last year, and it was 16 percent in some 
agencies. That is too high. Again, that depends on your point of view.
  I was very impressed with the President's presentation. Obviously, it 
will be debated and discussed. We have already had a good deal of 
discussion about the size of it. That seems kind of interesting. We 
will talk about it some more.
  The size of the Bush tax cut is fairly modest, as a matter of fact, 
by historical standards. Going back to President Kennedy, he 
recommended a tax reduction that was 2 percent of the gross national 
product. President Reagan had a tax reduction that chose 3.3 percent of 
the gross national product. President Bush's proposal is 1.2 percent. 
That is less than either of the others in terms of the gross national 
product. All this stuff we hear about it being so out of size--
apparently, comparatively it is not.
  Also, I think it is kind of interesting to look at the next 10-year 
projection of total income, which is about $28 trillion. The tax relief 
over that same 10-year period is about $1.6 trillion. I never thought I 
would say $1.6 trillion isn't a lot because it is; but compared to the 
total, it is a small, or relatively small, percentage. I think that is 
something to keep in mind.
  Also, as you look at what happened in terms of having surpluses, in 
relation to spending here, there is a substantial difference. Average 
discretionary spending, during the time when we were without a surplus, 
was about 2 percent over the last couple years. With the surplus, it 
has been 6 to 8 percent.
  Now I don't argue the fact that some of the spending is the kind of 
spending we want to make. I am persuaded--and I have seen this in my 
own State legislature and here certainly--when there is a surplus, the 
growth of government goes up substantially. It goes up almost 
uncontrollably. So I think the idea of doing the three or four basic 
things the President set out last night is substantially right. One is 
to provide the money for those things that are key priorities in our 
Government activities. Two is to pay off the national debt under the 
proposition that it would be paid off in 10 years--all that can be paid 
off under the economic circumstances. And then we will have a tax 
return to the people who have paid the dollars.
  We are all interested, of course, in those issues, in those 
activities that are out there, such as education. I was home this 
weekend, and we talked a little about how we see our State, our 
communities, our public lands, and our families in Wyoming in 10, 15 
years. Interestingly enough, the most common thing, actually, was 
education and the economy--jobs. Of course, we all want our kids to 
have the best education but there is quite a little interest in having 
job training and education. Everywhere you go, education is always 
there.
  This proposal has the Education Department at an 11.5-percent 
increase--which is the most in a very long time--to go for young people 
in preschool and reading and those things.
  Of course, Social Security is to be protected; $1.6 trillion out of 
the surplus would be preserved there.
  Medicare, of course, comes out of the 2.5 percent on top of the 
Social Security. It would be there for a priority for doing some 
things. Pharmaceuticals: That is going to be a difficult thing, but it 
is something we are all dedicated to doing.
  Strengthening defense, of course. It is interesting. I have had a 
couple opportunities to go on bases. One is in my home State. It is a 
missile base, Warren Air Force Base. I asked: What are your highest 
priorities? First was housing, particularly enlisted and NCO housing. 
Some of it had been there 30, 40 years. I went down to Quantico, VA, 
where I served in the Marine Corps. The first priority was base 
housing.
  In this budget is a substantial amount of money for pay and housing 
for the military and also for health care. Then we will properly take a 
look at the military in general, the strategic aspects of it and 
weapons aspects of it. Times have changed, and the whole challenge of 
the military has changed. We used to go in with five divisions and 
tanks and artillery. Now we are more likely to have to move about a 
group by air and ship, and they have to sustain themselves for weeks. 
It is a totally different kind of thing.
  I think we have a great opportunity here to meet our obligations as 
the Federal Government, to meet our fairness obligations with the 
taxpayers and return the surplus to them, and to meet our obligations 
to young people by paying off the debt we have incurred.
  I am excited about the opportunities. If you want to look down the 
road, what do you see? How do you see the Federal Government? How do 
you see our country in 15 years? These are the kinds of things that 
will be important to us--to strengthen the economy with an energy 
policy and do these kinds of things.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The assistant legislative clerk proceeded to call the roll.
  Mr. BURNS. Madam President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER (Mrs. Carnahan). Without objection, it is so 
ordered.

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