Don Nickles

Mr. NICKLES

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is necessarily absent.

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is necessarily absent.

Mr. NICKLES. Mr. President, since taking control of Congress in the 1994 elections, the Republican majority has delivered on their promise to balance the federal budget. The Congressional Budget Office says that this year the unified federal budget will have a surplus of $111 billion. Over the next 5 years, these surpluses will total nearly $912 billion. Of the total surplus, $768 billion is attributable to Social Security, and $144 billion in attributable to the rest of the government. The Republican majority has also delivered the tax relief we promised. In 1997, we passed the largest tax cut in 16 years, which is bringing significant relief to taxpayers this year, including a $400 per child tax credit (rising to $500 next year), a 20% capital gains rate, expanded IRAs, and tax credits and savings incentives for education. We also enacted a landmark IRS reform bill, eliminated President's Clinton's 18-month holding period on capital gains, and passed an expansion of Education Savings Accounts. The fiscal year 2000 budget we are now considering will build upon these successes. Our budget is based on three principles: 1. Devote the entire Social Security surplus ($768 billion over 5 years) to debt reduction, thus saving it for Social Security reform, 2. Maintain the fiscal discipline of the 1997 Bipartisan Balanced Budget Agreement by sticking to the discretionary spending caps, and 3. Return the ``rest of government'' surplus ($144 billion over 5 years) to working Americans in tax cuts. Mr. President, our budget is radically different from the one proposed last month by President Clinton. In his 1998 State of the Union address, the President said, ``Tonight I propose that we reserve 100 percent of the surplus, that is every penny of any surplus, until we have taken all the necessary measures to strengthen the Social Security system for the 21st century.'' However, according to CBO, the President's budget spends $58 billion of the Social Security surplus this year, and $253 billion over the next five years. Even if you ``credit'' the President's proposal to purchase equities for the Social Security trust fund, he still spends $40 billion of the Social Security surplus this year, and $158 billion over the next five years. President Clinton's proposal to save Social Security by ``devoting'' 62 percent of the budget surplus to it is a scam. The President would deposit $446 billion in IOU's into the Social Security trust fund, on top of the $768 billion that would be deposited there anyway. White House officials admit the President's plan does not extend by one day the year (2013) when Social Security benefits will begin to exceed payroll taxes. Additionally, the President's budget includes a Medicare scam based on the same faulty logic as the Social Security scam. The President would transfer $123 billion of the surplus to the Medicare trust fund over the next five years. Again, the practical effect of this transfer is nothing more than more IOU's in the trust fund. And the Medicare prescription drug benefit, a huge applause line in the State of the Union, is nowhere to be found in the budget. Other new programs touted in the President's State of the Union address, such as the promise for Universal Savings Accounts, are also nowhere to be found in his budget. The Secretary of the Treasury has said that the USA accounts are a tax cut, but it is becoming clear that the program will involve a progressive, refundable income tax credit totaling $96 billion over 5 years, $272 billion over 10 years. This massive welfare expansion will nearly double what we will already spend on the EIC program, $139 billion over 5 years, and $293 billion over 10 years. Secretary Rubin has also hinted that USA accounts will likely be limited to persons without employer-provided pension programs, and that anyone making over $100,000 will not be able to participate. Further, despite claims of ``enormous debt reduction'', CBO says the debt held by the public will be $432 billion higher under the Clinton plan after five years than under current law. Gross public debt will be $973 billion higher. The President's budget also breaks the discretionary spending caps by $33 billion in fiscal year 2000, and $434 billion over five years. Finally, despite an estimated $20 trillion in tax revenues over the next 10 years, the President's budget contains no tax cut. In fact, the President's budget includes a gross tax increase of $165 billion over ten years, and a net tax increase of $89 billion. I would like to include for the Record a couple of tables and a chart which compares the Republican budget with President Clinton's budget. Mr. President, I congratulate the Chairman of the Senate Budget Committee, Senator Domenici, and his staff for their fine work in developing this budget. I think it sets us on the right path to reduce the debt, cut taxes, and reform Social Security and Medicare. COMPARING BUDGETS--GOP `vs' CLINTON ---------------------------------------------------------------------------------------------------------------- Issue GOP Clinton Bottom line ---------------------------------------------------------------------------------------------------------------- Social Security............ The GOP budget dedicates The Clinton budget spends Neither the GOP budget, the entire $1.8 trillion $58 billion of the Social nor the Clinton budget, Social Security surplus to Security surplus this change the fact that debt reduction, saving it year, and $253 billion Social Security benefits for our nation's elderly. over the next five years. exceed taxes in the year Even if the Social 2013. Security trust fund is However, the GOP budget ``credited'' for proposed saves more of the Social equity purchases, the Security surplus so it Clinton budget still will be available for spends $40 billion of the real reform. Social Security surplus this year, and $158 billion over the next five years. Medicare................... The GOP budget assumes no The Clinton budget Neither the GOP budget, reductions in Medicare includes $20.2 billion in nor the Clinton budget, spending. provider cuts over ten change the fact that The GOP budget establishes years. Medicare is currently a procedure for The Clinton budget does running a cash deficit considering a prescription not provide for a which will bankrupt the drug benefit for seniors prescription drug program by 2008. if it is part of a REAL benefit. However, the GOP budget Medicare reform package. would allow real, bipartisan Medicare reform to be considered. Taxes...................... The GOP budget cuts taxes The Clinton budget Despite $20 trillion in by $142 billion over five increases taxes by $49 tax revenues and $2.6 years, $778 billion over billion over five years, trillion in budget ten years. $89 billion over ten surpluses over the next years. ten years, the Clinton budget RAISES taxes. Public Debt................ The GOP budget reduces the The Clinton budget reduces The GOP budget reduces debt held by the public by debt held by the public debt held by the public $1.767 trillion over ten by $1.305 trillion over $463 billion more than years. ten years. the Clinton budget. Education.................. The GOP budget increases The Clinton budget Over the next five years, Elementary & Secondary increases Elementary & the GOP budget provides Education by $7.3 billion Secondary Education by $4 $27.5 billion more for over last year. billion over last year, education than Clinton The GOP budget provides $3.3 billion less than and gives local schools this increased funding the GOP budget. the flexibility to under the assumption that The Clinton budget determine where they want ESEA reauthorization will requires increased to spend the money. provide greater funding to be spent on flexibility to state & federally-mandated local governments. priorities like 100,000 federal teachers. Defense.................... The GOP budget increases The Clinton budget The GOP budget provides defense by $18.1 billion increases defense by $9.8 $8.3 billion more for over last year, excluding billion over last year, defense than the Clinton FY99 emergencies. excluding FY99 budget. Compared to FY 99 funding emergencies. levels including Compared to FY99 funding emergencies, the GOP levels including budget provides a $9.9 emergencies, the Clinton billion increase. budget provides a $1.6 billion increase. Spending Caps.............. The GOP budget complies The Clinton budget exceeds In 1997, every Senator with the discretionary the discretionary except for Wellstone & spending caps for FY 2000, spending caps by $22 Bumpers voted for the 2001, and 2002. billion in budget discretionary spending authority and $30 billion caps. in outlays in FY 2000. If the President's appropriations proposals were enacted, they would result in an 8% sequester of all appropriations accounts. Total Spending............. The GOP budget spends The Clinton budget spends The Clinton budget uses $9.165 trillion over the $9.533 trillion over the the Social Security next five years, $19.918 next five years, $20.99 surplus and a tax hike to trillion over the next ten trillion over the next grow government. years, with an average ten years, with an growth rate of 3%. average growth rate of 3.8% ----------------------------------------------------------------------------------------------------------------

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) and the Senator from Wyoming (Mr. Thomas) are necessarily absent.

Mr. NICKLES. I announce the Senator from Arizona Mr. McCain and the Senator from Wyoming Mr. Thomas are necessarily absent.

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) and the Senator from Wyoming (Mr. Thomas) are necessarily absent.

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) and the Senator from Wyoming (Mr. Thomas), are necessarily absent.

Mr. NICKLES. I announce that the Senator from Arkansas (Mr. Hutchinson), the Senator from Arizona (Mr. McCain), and the Senator from Alabama (Mr. Sessions), are necessarily absent.

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is necessarily absent.

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is necessarily absent.

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is necessarily absent.

Mr. NICKLES. I announce that the Senator from Arizona [Mr. McCain] is necessarily absent.

Mr. NICKLES. I announce that Senator from Arizona (Mr. McCain), is necessarily absent. The yeas an nays resulted--yeas 49, nays 50, as follows: [Rollcall Vote No. 69 Leg.]

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain), was necessarily absent. I further announce that the Senator from Indiana (Mr. Lugar), was absent because of a death in the family.

Mr. NICKLES

Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is necessarily absent. I also announce that the Senator from Indiana (Mr. Lugar) is absent because of a death in the family.

Mr. NICKLES

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar), is absent because of a death in the family.

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar) is absent because of a death in the family.

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar), is absent because of a death in family.

Mr. NICKLES

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar) is absent because of a death in the family.

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar), is absent because of a death in the family.

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar) is absent because of a death in the family.

Mr. NICKLES

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar), is absent because of a death in the family.

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar) is absent because of a death in the family.

Mr. NICKLES. I announce that the Senator from Indiana (Mr. Lugar) is absent because of a death in the family.

Mr. NICKLES

Mr. NICKLES. I announce that the Senator from Mississippi (Mr. Cochran) is absent because of a death in the family.