    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book I)]
    [March 29, 1996]
    [Page 525]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 525]]

    Statement on Signing the Contract With America Advancement Act of 1996
    March 29, 1996

        Today I have signed into law H.R. 3136, a bill providing for an
    increase in the public debt limit, an increase of the Social Security
    earnings limit, and increased flexibility for small businesses to comply
    with regulations.
        I applaud yesterday's bipartisan congressional vote to maintain the
    Nation's creditworthiness and financial integrity. With the signing of
    this bill, millions of Americans will, once again, be secure that this
    great Nation will stand behind its obligations to pay not only
    beneficiaries of Federal programs but bondholders as well.
        Over 8 months ago, Secretary of the Treasury Rubin wrote to the
    leaders of the Congress, urging them to pass an increase in the debt
    limit sufficient to extend through the current political season.
    Secretary Rubin pointed out that attempting to use the prospect of a
    Federal Government default to achieve leverage in a budget debate was
    not in the best interests of the American people. Now that we no longer
    need to focus our efforts on avoiding a default, we can turn our full
    attention to continuing to bring down the budget deficit as we have
    successfully done for the last 3 years.
        When I took office, the deficit was $290 billion--and rising. By the
    end of fiscal 1995, the deficit was $164 billion. As a share of the
    economy, we have cut the deficit by more than half. And just yesterday,
    the Congressional Budget Office announced its estimate that the deficit
    for the current fiscal year will fall to $140 billion--thus cutting the
    deficit that I inherited in half and fulfilling my commitment to do so
    in my first term.
        We should now continue this progress--and limit future increases in
    the public debt--by reaching an agreement to balance the budget by 2002.
    Over the last several months, I have worked closely with congressional
    leaders to reach agreement on balancing the budget. In fact, we have
    about $700 billion in common savings, enough to balance the budget and
    provide a modest, targeted tax cut. Let me reiterate: I am committed to
    reaching an agreement with the Congress to balance the budget--and to
    reaching that agreement this year.
        I also am pleased that this legislation increases the Social
    Security earnings limit. Currently, retired workers ages 65 through 69
    who earn wages above a certain amount have their Social Security
    benefits reduced by $1 for every $3 in earnings. Over 900,000 Social
    Security beneficiaries lose some or all of their benefits. This
    reduction in benefits discourages work by senior citizens who are able
    and willing to do so. Raising the earnings test will increase the
    standard of living of the elderly and help the Nation's economy.
        This legislation also responds to the legitimate concerns of small
    businesses regarding regulatory burdens. The bill includes several
    recommendations of the White House Conference on Small Business that I
    have supported. In addition, it codifies a number of my reinvention
    initiatives that will help small businesses comply with Federal
    regulations and, just as important, enable them to become meaningful
    partners in the regulatory process.
        Finally, this legislation increases congressional accountability for
    regulations, providing expedited procedures for the Congress to review
    those regulations. I have long supported this concept, and my
    Administration endorsed the Senate's efforts of last year in this
    regard. I am, however, concerned about changes that the House made to
    this bill, which will unduly complicate and extend this congressional
    review process. We will work with the Congress to resolve these
    concerns.

                                                          William J. Clinton

    The White House,

    March 29, 1996.

    Note: H.R. 3136, approved March 29, was assigned Public Law No. 104-121.