June 9, 1986 CONGRESSIONAL RECORD-SENATE 12983 SENATE-Monday, June 9, 1986 The Senate met at 12 noon and was offer an amendment or ask for a roll simple without strangling our econo called to order by the President pro call, but not after 6 p.m. We shall keep my. The present unfair, complicated tempore [Mr. THURMOND]. the 6 o'clock curfew in that no rollcall income tax is terrible, wasteful, expen votes begin after 6 p.m. If one starts sive, and cannot be described ade PRAYER before 6, we will obviously conclude it. quately using good language." The Chaplain, the Reverend Rich That decision will be made by Senator A woman from Eureka, KS, is no less ard C. Halverson, D.D., offered the fol PACKWOOD and Senator LONG. outraged. "We recently went to a semi lowing prayer: I assume it will take all week to dis nar," she writes, "And the investment Let us pray. pose of the tax reform bill. Hopefully, speculator giving it bragged about not As the heart panteth after the water we can dispose of it this week. We paying any taxes because of the loop brooks, so panteth my soul after thee 0 have a very crowded calendar before holes in the tax laws. It made me furi ~ct;-My-sottl-thi'FSteth for God, tor the the June 27 recess begins. So it is my ous. Why has Congress made this pos living God: when shall I come and hope that we might complete action sible?" appear before God?-Psalm 42:1-2. on the measure, say, Thursday night. I And finally, there is the Wichita Like the psalmist Father God, our assume Senator PACKWOOD would like woman who signs herself a "Con hearts cry out for You-for the living to push on. I am not certain at this cerned and upset citizen:" God-but we ignore the cry and our point how many amendments have hearts languish for the most basic re been filed. I am advised only one as of Once again, I have had my taxes figured, Friday. If that would continue, we and feel that I and everyone else that is not ality in life, the exquisite touch of rich are paying too much in Federal taxes. God. We starve our souls while we sa might set a new record here. I doubt If you're rich, you can afford an accountant tiate our bodies. We immerse ourselves that will hold. that knows all the loopholes. If you have in the temporal, and deprive our spir It seems to me that many people lots of money you can afford to pay a bro its of the eternal. We who are made to have had an opportunity to study the kers' commission and buy tax-exempt bonds live forever deprive ourselves of the tax bill, and I assume there will prob and such. breath of God and suffocate our souls ably be additional amendments. I Mr. President, it is no wonder the in the smog of the transitory. Quicken agree with the distinguished minority American people are ready for real tax us to our need of You, 0 Lord, and leader, this is a legislative body, and reform. We are talking about the aver make us wise to respond for the sake we have a right to offer amendments. age American man and woman who of our spiritual health and our moral We cannot flat out say there will be no amendments adopted. There might be are out there every day working and strength. In His name who is virtue in trying to pay their tax bill and trying carnate. Amen. some accepted. I think what Senator PACKWOOD is attempting to underscore to figure why somebody else down the is as far as major amendments, that is street or in the next town who can RECOGNITION OF THE where he will try to draw the line. I afford tax shelters will pay less than MAJORITY LEADER hope that will be met by bipartisan people who work every day. The PRESIDENT pro tempore. The support. They work 2 hours and 39 minutes able majority leader, Senator DoLE, is e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 12984 CONGRESSIONAL RECORD-SENATE June 9, 1986 logic that will defeat any such amend RECOGNITION OF THE able to have a much better under ment. MINORITY LEADER standing of the important step that is The PRESIDING OFFICER. Under being taken here toward reforming the 0 1210 the previous order, the Democratic tax system. The American people We also have those who would like leader is recognized. kn'ow that the Tax Code is complex, to restore full sales tax deductibility they know it is unfair in some ways, but again I urge my colleagues that and they want reform. The tax bill FAIR TAX REFORM FOR THE will probably be the most important both of these matters can also be ad MIDDLE CLASS piece of legislation that will come out dressed in the conference, where they Mr. BYRD. Mr. President, I join of the 99th Congress. I do not find keep the IRA's as is in the House bill with the distinguished majority leader fault with the distinguished majority and you have full deductibility of the in not only predicting that this will be leader's continued beseeching that we sales tax. a vote of 100 to nothing, if every Sena pass this bill and pass it quickly, but I It would be my hope that we can tor is in attendance, but in also work am constrained to find some minor dis make those choices if necessary or ing for that kind of outcome. I want to agreement at least in the idea that we make certain modifications, and I be see a vote of 100 to zero. I will certain need to do it by Thursday of this lieve some should be made in the ly do ~vrrything I can to that end. week. More so do I find myself in some IRA's. But I believe they can be made I thmk we have to keep our eye on lack of accord on the idea that we in a conference setting without depriv the middle class as we debate this bill. ought to pass it as quickly as possible ing anyone in this legislative body of Six million taxpayers have been taken here, get it down to the conference, having their rights impaired, depriving off the tax rolls in the Finance Com and let the conferees resolve all the anybody of the right to offer the mittee. That is at the lower income issues. levels. There will be a House bill in confer amendments, debate the amendments, Now, the wealthy will get some re whatever. ence. There will be a Senate bill in ductions. But it is my understanding conference. But I do not subscribe to In the first spring I ever spent in that the take-home pay of the middle the idea, never have I subscribed to this city I heard John Kennedy de class will be proportionately less than the idea, nor will I ever subscribe to clare that "To govern is to choose." is accorded to the very high-income the idea, that the Senate ought to Now we, too, must choose. We must levels-! am talking about the wealthy simply roll over and play dead, make a choose between satisfying a wealth of in particular-in this bill. few good speeches and just leave it up special interests or serving the public Now, if that is the case, then we ought not to just give this bill a lick to the conferees to rewrite a bill and interest, between genuine reform and do our work for us. some half-hearted tinkering with a and a promise and say let the confer ence ·handle it. I am not on the Fi Of course, I agree that the conferees system universally regarded ·as too nance Committee, but I do believe will write the final product. That is costly, too complex, and too much the that the middle class in this country what I call the third House. captive of sharp operators like those has borne the tax burden in the heat We have the House of Representa complained about in my constituent of the day and over the years: The tives, which some of us like to refer to letters. middle class sends its own kids to col as the lower House. I suppose that ref In both statute and spirit, we claim lege; the middle class helps the lower erence may come out of history and to embody democratic values. The income people to send their children out of the fact that when Congress time has come for us to practice some to college; the middle class pays the first met in 1789, the other body was economic democracy as well. That bills for rental programs; welfare pro on a lower level. The Senate was on means everyone paying a fair share, grams, health programs, food stamps. the second floor and was referred to as The great middle class is the backbone the upper body. no more, no less. It means a system But there are the two Houses. And simplified and a government ordered of the Nation, and it has shouldered the main individual tax burden. then the third house is when the con to live within its own means. That is ferees from both Houses meet to re what the people want and that is what This bill is a good bill. It is a tax reform bill. It is real reform, if I may solve the differences in the two bills, we should deliver, not only in our dis underline the word "real" as I use it in because those differences have to be cussions but in the final product of a descriptive sense. But we must just resolved so that the product that is the tax reform bill, the final product be doubly sure that the middle class sent to the President is agreed on be on the budget resolution and anything gets the fair shake which it deserves in tween the two Houses precisely in else we seek to accomplish in the U.S. this bill. If the middle class, indeed, is every word, comma, semicolon and Senate. not getting its share, if it is, indeed, dash, every punctuation mark, that on As I indicated earlier, sometimes taking home a disproportionate share, every jot and title both Houses are in there are partisan differences, some if its take-home pay is disproportion full agreement. That is done in the times there cannot be bipartisan sup ate to that of the very wealthy, then if conference committee. Of course, port for certain legislation, but I will that is the case, let us do what we can there will also be big issues resolved accept marginal bipartisan support. It to fix it. there. seems there are some people who do I think we ought to examine the bill. But to say that 100 Senators should not care a hoot about politics, but we I do not feel that if the bill is not just gloss over this bill, let us roll it have a rare opportunity to speak with passed by Thursday or Friday of this on, let us get through by Thursday one voice in the Senate, one strong bi · week anybody has suffered a defeat. I and possibly be out on Friday, let the partisan voice. In my view that is all presently have no amendment th~t I conferees handle the w,ork at the going to happen. We are going ·to intend to offer, I do not say, I will not other end, that is not my idea of legis offer one, but I have no intention at lative responsibility. finish this bill, finish the conference the moment because I have not heard I will not be a conferee. Normally, a report, and have it on the President's enough of the debate. whole committee is not chosen by the desk by Labor Day as he expressed we I feel that it is our duty to take a Senate to act as conferees on the part might have in his radio message on good look at the bill. I want to hear of the Senate. But the Senate makes Saturday. If we can accomplish that the debate on the bill. The debate will that decision by order of the Senate and a few other things this year, we be enlightening. I hope-now that we and ·should the Senate in its wisdom will have a good year in this second have televised coverage of Senate de decide that all members of the Fi session. bates-the American people will be nance ColllJD.ittee should act as confer- June 9, 1986 CONGRESSIONAL RECORD-SENATE 12985 ees on the part of the Senate, fine, would suppose. But it is surely not in a summit late this year by all this talk that might be a good idea. That is not our interest militarily at this point to about ditching the SALT II accords. for me to say. In the event that were see those ceilings broken because the Mr. President, I thank the Chair to happen, however, there would only Soviet's production lines are geared and, of course, all of us will have more be 20 Members of the Senate in con- up; they are ready to go. ·about these matters later. terence. In other words, one out of Our production lines are not geared every five Senators would be in confer- up; we are not ready to go. And if· we · ence with the other body. are just going to summarily throw 0 1230 Now so much fbr that. I am for a these SALT II accords into the trash RECOGNITION OF SENATOR 100-to-nothing vote on this bill. It is basket and say, "We will have no more THURMOND bipartisan. It came out of the Finance to do with it; we are all done with Committee by a vote of 20 to nothing. this·," why, then, I think we are being . The PRESIDING OFFICER. Under That is like Lindbergh's flight over very unwise from a number of stand the previous order, the Senator from New York City in 1927 when he was on points because the Soviets can break South Carolina, the distinguished his way across the Atlantic, the Spirit out quickly from the central systems. I President pro tempore, is recognized of St. Louis came across New York am talking about the intercontinental for 5 minutes. City, according to the newspapers, "at ballistic missiles, . the submarine- the terrific speed of 100 miles per launched missiles, and land-based mis- TEXTILE EMPLOYMENT AND hour." · siles. I am talking about all these Well, this bill came out of the Fi- things, because all of them are in the IMPORT FIGURES nance Committee at about that speed, ceilings. Once the Soviets break out Mr: ·THURMOND. Mr. President, 100 miles per hour, and I say let us from under the accords whereas they the bad news for the American textile pass it. are allowed to put only 10 warheads and· apparel industry continues to I do not envision any amendment, on a single missile, they could then · pour in as foreign imports continue to Mr. President, as being a "killer" put 30 on their SS-18's. The ceilings flood our country. The latest figures amendment on this bill. Whether an also apply to launchers. It is certainly released by the Department of Com amendment is "major" or "minor" not in our interest, because over the merce show that imports of textiles does not make any. difference. It is next 3 or 4 or 5 years, the Soviets' pro- and apparel were up 28.3 percent this what the content of the amendment duction lines are geared up now .and Aptil over April of 1985. For the first 4 is. ~f it is "major" and the content is ready to go. For us to say at this time, months of 1986, imports of these prod such that the Senate should adopt the "Let us abolish the ceilings; let us ucts are up an astonishing 26.4 percent amendment, it should do it. If it is forget about the accords; we are not · over the first 4 months of the record "minor," and the Senate should adopt going to live U.P to the limits," would setting year of 1985. Unfortunately, it the amendment, that is fine. It is up to just be cutting our nose off and not looks like the 1986 imports will break the will of the Senate. helping the looks of our face because all previous import records. My main interest in this bill is to see the Soviets are ready to break out im- Mr. President, these figures are con- what happens to the middle-class citi- mediately. As long as they are living vincing evidence that imports are run zens in West Virginia, for example, the within the ceilings, it would not be in ning wild. For. months we have been smoke stack industries in West Virgin- our interest to make such an unwise hearing that steps were being taken to ia. How do those people come out? and hasty decision. bring the situation under control. Yet, It is the middle-class Americans who · Second, and finally, I would say that · the figures speak for themselves-for are the people who are entitled and it is very symbolic for the positive at- eign co.mpanies and foreign workers who deserve some tax relief at this mosphere which developed in the first steadily increase · the flow of textile time, and I believe they are going to summit to continue. · I th.ink the products into our Nation, apparently get it under this bill. summit at Geneva was good. I believe without fear that we will enforce our Mr. President, do I have any tilne re- that the President did himself well. I rights to stop them. maining? think that it was good for· our side, Mr. ·President, these unrestrained The PRESIDING OFFICER. The good for the other side, and I woQld imports are shattering the hopes and distinguished Democratic leader has 2 hope that we would I)Ot just cast cold dreams of many American families. minutes remaining. water, as it were, on the possibility of Throughout the country, hard work- Mr. BYRD. I thank the Chair. I will another summit later this year. ing. people are losing t,heir jobs be- use these last 2 minutes to make refer- After all, if we are going to have a cause of the influx of foreign goods. It ence to a very important matter that I summit, what are we · talking about almost seems as if jobs have become think needs some attention. from the standpoint of benchmarks? ·our largest export item. A recent arti- If we are going to lower the ceilings in cle in the Charleston Evening Post re another summit, we lower the ceilings ported the latest Labor Department THE SALT II ACCORDS from what? We are talking about the textile employment figures. They Mr. BYRD. Mr. President, President SALT II accords. If we have another show that in seven southeastern Reagan announced on May 26 that summit, we would hope to be able to States employment in the textile in there would be no undercutting of the lower those SALT II ceilings. We dustry has declined by 9,300 jobs in SALT II accords. I think the President would lower the future ceilings in any the past year. My home State of made the right decision at this time, future accord or in any future treaty South Carolina alone showed a drop of because as to the central systems that from those ceilings that are set forth 4,400 jobs from the first quarter of are included in the SALT II accords, if in the SALT II accords. We have to 1985 to the first quarter of 1986. The we are going to undercut the limits on have a benchmark and that is the only April.figures reflect a loss of 600 more those central systems, and the Soviet benchmark of which I know. If we are textile jobs in South Carolina. These Union, from everything I can hear, is going to just go helter skelter at this losses have placed textile employment living up to the limits, then it is in our point and say the accords are off, all in the·State at a record low since rec interest from a national security bets are off, and engage in an arms ordkeeping on textile jobs began after standpoint that we not undercut those race, what is the benchmark if we Worlci War II. accords, certainly at this time. I would have a summit later? Let us hope for a During the past 5 years over 25,000 hope we do not even talk about under second summit and let us hope that South Carolina textile workers have cutting the accords before a summit, the Soviets will stop waffling and lost their jobs. lt does not take a hopefully, which will occur in this agree to a summit date. Let us hope genius to figure out the reason for country subsequent to the elections, I that we will not poison the chances for these job losses. Without a doubt, the 12986 CONGRESSIONAL RECORD-SENATE June 9, 1986 culprit is the unimpeded growth of im Mr. HUMPHREY. Mr. President, I tax· roles. And one of the best things ports. ask unanimous consent that I might they did was not increasing excise Mr. President, the textile and appar be recognized following Senator CRAN taxes on consumers. el industry has been ranked by the De STON. Mr. President, I yield the floor. fense Department as second only to The PRESIDING OFFICER. With Mr. President, I suggest the absence steel in importance to national de out objection, it is so ordered. of a quorum. fense. One out of every 10 manufac The PRESIDING OFFICER. The turing jobs in America is in this indus RECOGNITION OF SENATOR clerk will call the roll. try. We cannot and will not stand idly CRANSTON The assistant legislative clerk pro by and watch the demise of one of our ceeded to call the roll. Nation's most important industries. The PRESIDING OFFICER. The Mr. HUMPHREY. Mr. President, I Last month 70 Senators and 302 House Senator from California is recognized ask unanimous consent that the order Members signed a letter to President for not to exceed 5 minutes, after for tne quorum call be rescinded. Reagan supporting a stronger Multi which the Senator from New Hamp The PRESIDING OFFICER. With fiber arrangement to deal with the shire will be recognized. out objection, it is so ordered. past 5 record years of textile and ap Mr. CRANSTON. I thank the Sena parel imports. Swift, decisive action is tor from New Hampshire for his gra necessary to stop the flow of unfair ciousness. RECOGNITION OF SENATOR imports and preserve American jobs. HUMPHREY Two million Americans still employed NO INCREASE IN FEDERAL The PRESIDING OFFICER. Under in this industry are depending on it. EXCISE TAX Mr. President, I ask unanimous con the previous order, the Senator from sent that an article from the Evening Mr. CRANSTON. Mr. President, the New Hampshire is now recognized for Post of Charleston, SC, dated June 2, best kind of tax is a tax that never a period not to exceed 5 minutes. 1986, entitled "South Carolina Leads gets imposed. One tax that fortunate Region in Textile Decline" be printed ly never was imposed is a 54-percent in the RECORD. increase in Federal excise taxes on a AMENDMENT TO ELIMINATE There being no objection, the article host of commonly consumed products. TAX EXEMPTION FOR ABOR was ordered to be printed in the The Senate Finance Committee actu TION CLINICS RECORD, as follows: ally had seriously considered such a Mr. HUMPHREY. Mr. President, SOUTH CAROLINA LEAns REGION IN TEXTILE proposal during its deliberations over during the debate on the tax bill DECLINE tax reform. which will soon commence, Senators ATLANTA 71-059 0 - 87- 37 (Pt. 9) 12988 CONGRESSIONAL RECORD-SENATE June 9, 1986 creased strategic power for the Sovi The Dairy Price Support Program support of the Senate and the Ameri ets. When the SALT II Treaty was provides a market stability which has can people. signed the Soviets had 608 MIRV' d enabled U.S. dairy farmers to make ICBM's. They continued to add to continuous gains in productivity. Since their total until they reached the 1950, dairy farmer productivity-as RECOGNITION OF SENATOR SALT II limit and stopped. Sartori measured by man-hours required to KASTEN concludes: produce 100 pounds of milk-has in The PRESIDING OFFICER. Under There is no reason to believe that absent creased-not doubled, not tripled-but the previous order, the Senator from the commitment to SALT II, the Soviets twelve-fold. Wisconsin [Mr. KASTEN] is recognized would have stopped at just 818. Prices for dairy products have for a period not to exceed 5 minutes. They did. Sartori also concludes that stayed consistently below increases in Mr. KASTEN. Mr. President, I absent SALT II the Soviets could and the overall Consumer Price Index. In thank the Chair. would have pushed the deployment of the 1982-1985 time period, for exam MIRV'd-submarine launched ballistic ple, the CPI increased by 11.4 percent, THE TAX BILL missiled significantly above their cur compared to a 4.5-percent increase for rent level. dairy products. Mr. KASTEN. Mr. President, the bill And here was the most significant The average national retail price for before us today is truly revolutionary. restraint SALT II has imposed on the a half-gallon of milk was less than a It takes power away from Washington, U.S.S.R. Without the limitation of penny higher in 1985 than in 1982. and gives it back to the American SALT II, the Soviets could and prob And, as I said, it actually takes less people. The tax policy will no longer ably would have increased by several than half the time today-as com be used to dictate the economic life of thousand the number of nuclear war pared to 1950-for the typical Ameri our country. heads on their strategic missiles. It can worker to earn the money needed 0 1250 would be a cheaper and more efficient to make purchases like a half-gallon of Mr. President, this legislation allows way of deploying their nuclear arsenal milk, a pound of butter, and a half every American to keep more than 70 than building more launchers. The So gallon of ice cream. percent of every dollar eamed. Only 6 viets without their SALT II agreement Americans spend about 15 percent of years ago, Uncle Sam claimed up to 70 could have increased the rate of pro their disposable income on food. This percent for himself. duction of their backfire bombers. As is the lowest percentage of any major It reaches the goals of simplicity and Sartori concludes: nation in the world. About 12 percent fairness we set out when some of us From the beginning, the burden of adher of that figure goes for dairy products. embarked on this path, embarked ing to the treaty has fallen almost exclu The successful operation of the upon this direction, more than 2 years sively on the Soviet side. Dairy Price Support Program over the ago. Now this is real tax reform! On Friday this Senator called to the years means that American shoppers I listened to the Democratic leader attention of the Senate a meticulous can walk into their grocery stores earlier speaking in favor of tax reform. analysis of the alleged violations by every day in every city across the I listened to the words of the Senator the Soviets of SALT II in an article country and find the shelves stocked from Louisiana, Senator LoNG, the written in the New York Times by with fresh milk and dairy products. ranking Democrat on the tax-writing Charles Mohr. The article convincing Mr. President, it is very important to committee, last week, saying that he ly demonstrated that any Soviet viola note, too, that dairy farmers them believed it was possible we could have tions of this treaty are of no real mili selves take responsibility for helping near unanimous support. tary significance. to pay for the Dairy Price Support Mr. President, I believe today it is It is easy to see why only 1 of the 5 Program when there is a serious im possible to predict that this tax bill Joint Chiefs of Staff has been report balance between milk supply and may pass the Senate with the unani ed to hold the view that dropping all demand. Recent examples include the mous vote of the Senate. This would, restraints of the SALT II Treaty Milk Diversion and Dairy Termination indeed, be historic. would be militarily advantageous to Programs, where dairy farmers fi This bill embraces many of the prin the United States. Mr. President from nanced substantial portions of the ciples of the "fair and simple tax" a strictly military standpoint as well as costs of these programs designed to plan that Congressman KEMP and I in for the future of arms control and help bring supply more evenly in line troduced earlier in this Congress. world peace, we should not permit with consumption. Like Kemp-Kasten, this bill recog SALT II to die. We should revive it. Dairy price support cuts have been nizes the need to reduce tax rates dra We should ratify it. We should extend shown not to serve a useful purpose. matically and the beneficial effect it. Faced with two 50-cents-per-hundred such a bold move will have on our weight price support reductions in economy. 1985, dairy farmers were forced to Like Kemp-Kasten, this bill removes MYTH OF THE DAY: DAIRY produce more in an effort to maintain thousands of low-income Americans PRICE SUPPORT PROGRAM IS their cash flow and preserve their from the tax rolls, and gives them a A FAILURE farms. From October 1980 through boost up to reach that first rung of Mr. PROXMIRE. Mr. President, the 1985, there were three price support the ladder of economic progress and myth of the day is that the Dairy cuts totaling $1.50 per hundredweight. success. Price Support Program is a failure. During this time, farm milk prices Like Kemp-Kasten, this bill elimi Since June is Dairy Month, I think dropped 7 percent, while farmers' nates hundreds of tax loopholes in the now is an especailly appropriate time costs increased 15 percent. And what current Tax Code, ensuring that every to lay this myth to rest. about the average retail price of whole corporation and every individual pays The Dairy Price Support Program milk? It increased 8 percent. their fair share. was established in 1949 to help ensure Taxpayers, consumers, and farmers This proposal is good for families, it that American consumers enjoy de alike benefit from keeping a viable is good for working people, and it is pendable supplies of dairy products Dairy Price Support Program intact. good for our Nation. throughout the year at reasonable To say that this program has been a Yet, it is not perfect, and I believe it prices. failure is truly a myth. The data I can be improved here on the Senate Does the Dairy Price Support Pro have cited portray the reality of the floor. I am concemed about the gram work to achieve these goals? You Dairy Price Support Program, which impact of the IRA changes on savings, bet it does. Let us look at the facts. richly deserves the continuing strong the loss of the deductibility of charita- June 9, 1986 CONGRESSIONAL RECORD-SENATE 12989 ble contributions for nonitemizers, and First of all, everybody in the Senate, an intrusion on their constitutional re the change in the treatment of capital and the American public, knows full sponsibility to try to ratify treaties. gains. well that this treaty was never ratified An additional concern that I have But I commend the chairman of the by the Senate. The treaty was not rati about our continuing to adhere to Senate Finance Committee for getting fied by the Senate because it did not SALT is that we know full well that such a historic tax package out of have the support of the Senate. The the Soviet Union has failed to comply committee. reason it did not have the support of with the basic requirements of this The chairman is a true believer and the Senate was because by and large treaty. The Soviets have violated a real leader on tax reform, and the this treaty gave a clear advantage to SALT time and time again. Yet, for American people are the ones who will the Soviet Union. It gave a clear ad some strange reason, many people gain. vantage to the Soviet Union in first want to have unilateral compliance Now the Senate has a chance to strike, hard target kill weapons. They with this treaty. In other words, the complete the revolution. I urge my col have that advantage now. The treaty United' States of America would have leagues to join me in supporting this insures that advantage. to comply with this treaty but the package and fighting any attempt to It is also disadvantageous to the Soviet Union would be operating increase the tax rates. United States because we are trying to under whatever interpretation they I believe we · will prove ourselves move toward second-strike missiles, want to give to it and they would be equal to the task and maybe even like the cruise missiles carried on our able to continue to violate the treaty achieve a unanimous vote on tax bomber force. We are limited to 120 to establish a double standard. reform in the U.S. Senate. long-range cruise missile-carrying Where would our credibility be in Mr. President, I suggest the absence bombers under SALT II. That is a po negotiating treaties, not only with the of a quorum. sition that the President will not Soviet Union but with any country, The PRESIDING OFFICER. The comply with later on this year. were we to come down and say, well, clerk will call the roll. Many people in this Senate have we are going to live up to the obliga The assistant legislative clerk pro argued that we ought to get away tions and concerns of a treaty, but you ceeded to call the roll. from first-strike destabilizing weapons do not have to? Mr. QUAYLE. Mr. President, I ask like the MX and go to destabilizing That would be utter nonsense. Yet unanimous consent that the order for missiles like the cruise missile. I have many are advocating just this when the quorum call be rescinded. heard the merits of cruise missile de they call for compliance for the The PRESIDING OFFICER. With bated for a long time. I am a strong United States to SALT without the out objection, it is so ordered. proponent of both deploying and im Soviet Union having to comply. Basic proving such weapons. But now, no, we contract law tells us that if you are can only have approximately 130 going to have a contract, if you are RECOGNITION OF SENATOR cruise missile-carrying bombers. Even going to have an agreement, if you are QUAYLE conventional cruise missiles that could going to have a treaty, then you had The PRESIDING OFFICER. Under be substituted for nuclear weapons are better have compliance .. and it had the previous order, the Senator from severely restricted under SALT II, Mr. better be a two-way street. Indiana [Mr. QuAYLE] is recognized for President, as the Presiding Officer But focusing on our behavior rather not to exceed 5 minutes. knows full well, being the head of our than the Soviets' is not unusual. For delegation to Geneva. You cannot tell some strange reason, it seems that we the difference between a nuclear are always in the wrong. Blame us SALT II tipped and a conventional tipped first; we are the ones that are some Mr. QUAYLE. Mr. President, I cruise missile. Therefore, they are how responsible for the problems in would like to discuss the President's counted the same. the breakdown in the arms control decision last week to not extend the SALT II also is a disadvantage to the processes. Yet, we are the ones who SALT II Treaty. United States because, under SALT, have been pushing for a genuine arms Last week there was a barrage of we cannot have a sound mixture of of reduction proposal. The Soviet Union criticism of the President. That criti fensive capability and defensive capa is the one that has been the obstruc cism will be studied and debated. It is bility in our forces. SALT in fact, is tionist in that process. They are the being debated in the House of Repre premised on MAD, and MAD on there opes who have, in fact, put sand in the sentatives. It is being debated around being no missile defenses. gears to prevent a genuine arms con the country. If people are really serious about trol proposal by this administration Many have said that this decision, in continuing SALT II, though, I suggest from going forward. effect, kills the arms control process that perhaps at some time, the majori Mr. President, it also has been or has set it back considerably. I dis ty leader might just want to bring it argued that somehow, the SALT agree. In fact, if we really want to up for discussion, for debate, and see Treaty will restraint the Soviet Union have a genuine arms control process where the votes are. If two-thirds of and if we take the SALT limits off, the and see an arms control agreement the Senate vote for the SALT Treaty, Soviet Union will just go like gangbus reached, we simply are going to have then obviously, the United States has ters in the development of ICBM's to begin with a new arms control foun to be bound by that. But if two-thirds MIRV'ed warheads, SLBM's fighter dation. do not vote for it, obviously, the treaty planes, you name it; that strategically, I believe that that foundation is the fails for insufficient support. I think it they will just go forward and there is one that the President has put for is a rather disingenuous argument no way in the world the United States ward over these years to see a reduc that has been going around this Cap could even come close to catching up. I tion rather than an increase of nuclear itol for the last few days that, some think that is not a valid argument for weapons that we'ver seen under SALT. how, we are going to impose SALT II a number of reasons. That is the direction that the Presi requirements not by the constitutional One, we will do what is in our best dent wants to take this country route of treaty ratification, but by a interest. Two, the Soviets do not need toward real reductions and I strongly 51-percent vote in the House and a 51- any more first-strike hard-target weap support it. percent vote in the Senate that will ons to target our fixed assets. They al Let us look at some of the specific deny the President this opportunity ready have thousands of these weap considerations that are going to be de and this flexibility. I believe that ons that put all of our fixed assets at bated on the continuation of the would be a serious mistake, and I risk. If they want to go ahead and SALT II Treaty. assume that Senators would see this as spend more and more, fine, let them. 12990 CONGRESSIONAL RECORD-SENATE June 9, 1986 It is not going to do any good. They al So, it is time, Mr. President, to estab There being no objection, the article ready have such capability to put at lish a new foundation for arms con was ordered to be printed in the risk our fixed targets with their first trol. We cannot rely upon an unrati RECORD, as follows: strike hard-target killer weapons. We fied and violated treaty. We must have EXILES FIGHT FOR CULTURAL SURVIVAL do not have that capability; they do. a new beginning that will focus on re In fact, Mr. President under the duction of these weapons, a beginning ing that rational of economic stand SDI1 which the administration is get no numbers worthy of consideration. ards will be applied before any defense ting under way elsewhere. Except perhaps for some of the esti is actually deployed. There is, to begin with, the NASA mates now beginning to emerge as to In theory, cost effectiveness is a Program for development of a TAV, the type and number of satellite battle method for estimating whether it transatmospheric vehicle. Granted, stations, monitoring systems, ground would be more expensive for us to sus that this program is being presented based interceptors, and the like, tain a strategic defense against Soviet as the Orient Express-the next great needed to realize one or another de countermeasures than it would be for leap in passenger transportation. But fense architecture, as it is called. the Soviets to pay for the counter the fact is that 80 percent of its fund The architectures themselves are measures themselves. What this tech ing comes from the military, because still classified, and in any event, one nique allows us to do is watch out for a this project is a fundamental necessity can only make guesses as to cost, situation in which the Soviet Union for SDI. Why? Because at existing based on the costs of such things as in could undermine a vast United States costs per pound of placing objects in telligence collection systems-again, a investment in SDI for a relatively orbit, there is no possible way the classified number. But former Secre small investment of their own in coun United States can afford even the tary of Defense Harold Brown has said termeasures. transportation costs for emplacing the that a grand total on the order of $1 Typically, the administration has equipment and fuels required for SDI. trillion might well be what we find at yet to decide what cost effectiveness The estimated cost to devise a test ve the bottom of the bill. And I do not would mean in practice when applied hicle is $3 billion. think he is exaggerating for effect: He to SDI, and is already looking for an Then there is the air defense initia is estimating with some care. easy out. The name of that easy out is tive, whose precepts are still being What can one conclude from all "affordability," which in plain lan worked out. ADI, as it is called, will this? First, that the costs for this kind guage means that we should be pre- have much the same relationship to of research will likely impoverish 12994 CONGRESSIONAL RECORD-SENATE June 9, 1986 other aspects of our defense work. the Supreme Court. We then passed a As a matter of fact, we started Second, that vitally needed investment constitutional amendment which al adding other deductions. in conventional forces will be drained lowed an income tax to be levied. Most What happened over the years is away. Third, that the scale of these people are really unaware that up that people eventually got hooked. costs will ultimately threaten the sub until almost World War I the bulk of They began to think that they could stance of this Nation. the Federal revenues in this country not live without the deductions: Char Mr. President, I yield the floor. were raised from either excise taxes or ities could not exist unless people tariffs. We managed to run the whole could deduct the charitable contribu CONCLUSION OF MORNING Federal Government on those two tion from their tax; venture capital BUSINESS sources of money. No income tax, no would not invest in risky ventures nationwide sales tax, other than a few unless they had a capital gains differ The PRESIDING OFFICER. Morn of these excises, no real property tax ential. ing business is closed. at the national level, no personal prop Each group has their own special tax erty tax at the national level, no interests, and they are perfectly well TAX REFORM ACT OF 1986 income tax, corporate or individual. meaning groups-when you go Then in 1913, we passed a corporate The PRESIDING OFFICER SENATE RESOLUTION 422-COM- SENATE CONCURRENT RESOLU MENDING THE BOSTON CELT- SENATE RESOLUTION 424-WEL TION 146-RELATING TO THE ICS COMING COL. RICARDO MON ESSENTIAL AIR SERVICE PRO TERO DUQUE TO THE UNITED GRAM Mr. KENNEDY (for himself, Mr. STATES KERRY, and Mr. MITCHELL) submitted Mr. ABDNOR (for himself, Mrs. Mrs. HAWKINS submitted the fol KASSEBAUM, Mr. ANDREWS, Mr. PRES the following resolution; which was considered and agreed to. lowing resolution; which was referred SLER, and Mr. ExoN) submitted the fol to the Committee on the Judiciary: lowing concurrent resolution; which S. RES. 422 was referred to the Committee on Whereas on June 8, 1986 the Boston Celt S. RES. 424 Commerce, Science, and Transporta ics won the National Basketball Association Whereas Colonel Ricardo Montero Duque, Championship for 1986; after spending twenty-five years in a Cuban tion: Whereas since 1946, under the leadership prison, was released on June 8, 1986; S. CoN. RES. 146 of Red Auerback the Boston Celtics have Whereas Colonel Montero was one of only Resolved by the Senate fthe House of Rep won sixteen world championships, three two remaining prisoners in Cuba who was a resentatives concurring), That the Essential times as many as any other team in the his member of the Brigade 2506, which conduct Air Service 71-059 0-87-38 of Offer to Japan and tyranny are equally vulnerable to the underlying cause. for defense articles and services estimated attack. In short, the choice that is within our to cost $55 million. Shortly after this letter SDI is now sustained against a wide array power to make is a good deal simpler: it is is delivered to your office, we plan to notify of opponents by the president's prestige and not whether to stop technology, but wheth the news media. public relations abil.ities. It is a fact of poli er to permit the Soviets to gain decisive Sincerely, tics that any agreement to curtail SDI will technological advantages. What we confront PHILIP C. GAST, Director. not simply limit but destroy it. Those like is not a symmetrical decision between arms [Transmittal No. 86-361 Schelling who believe in mutual vulnerabil control and the Strategic Defense Initia ity for its own sake would mount a cam tive-though Soviet propaganda, and some NOTICE OF PROPOSED ISSUANCE OF LETTER OF paign to finish what the treaty had begun. domestic critics of SDI, try to make it seem OFFER PuRSUANT TO SECTION 36(b)(l) OF THE ARMS EXPORT CONTROL AcT It is hard to see how a world with strate that way. If we hold on to SDI, we can gic defenses will be more dangerous than almost certainly keep both SDI and arms (i) Prospective purchaser: Japan. the present one. But that is not the choice control. Agreements should be possible on a
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