[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.