E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, FIRST SESSION

Vol. 143 WASHINGTON, TUESDAY, APRIL 15, 1997 No. 44 House of Representatives The House met at 10:30 a.m. gress in 1909, ratified in 1913, and 480 can do anything. The original Tax f upheld by the Supreme Court in 1916. It Code, by the way, only had 11,000-plus has been 81 years since the Supreme words in it. Today it has 7 million plus. MORNING HOUR DEBATES Court’s approval and Congress, in all It does not reduce bureaucracy. The The SPEAKER. Pursuant to the its wisdom, has developed a tax system IRS staff is over 100,000, about 110,000, order of the House of January 21, 1997, that has become the most economi- one of the most out-of-control big gov- the Chair will now recognize Members cally destructive and possibly complex, ernment staffs that we have, more peo- from lists submitted by the majority overly intrusive, unprincipled, dishon- ple in the IRS getting into our pockets and minority leaders for morning hour est, unfair, and inefficient system in than there are immigration and cus- debates. The Chair will alternate rec- this Nation’s history. I do not think toms agents on our borders. ognition between the parties, with each anybody can disagree with that. The current system discourages sav- party limited to not to exceed 30 min- The current Tax Code has become an ings and investment by taxing income utes, and each Member except the ma- uncontrollable and rampant institution when we earn it, taxes it when we save jority and minority leader limited to with no regard for what has made this it, taxes us when we invest it, and not to exceed 5 minutes. country great, individual freedom. taxes us again when we die. The Chair recognizes the gentleman Mr. Speaker, there is a bill on the It is not efficient. Complying with, I from Texas, Mr. SAM JOHNSON, for 5 floor that we will consider today that think, the Federal Tax Code costs tax- minutes. illustrates the problems we face. The payers more than $600 billion a year. f bill makes browsing or snooping Replacing this system will cause in- through taxpayer files a crime, subject- terest rates to go down, by every testi- REPEAL OF THE 16TH ing offenders to criminal penalties of mony that we have had, and savings AMENDMENT up to $100,000 and/or 1 year in jail. To and capital investment to increase. Mr. SAM JOHNSON of Texas. Mr. me this is a serious violation of pri- Finally, we have stifled opportunity Speaker, believe it or not, today is tax vacy, and I am greatly disturbed that by designing a system that picks win- day. It is on this day that every hard- has been allowed to occur within the ners and losers, one in which Washing- working American sends more money IRS. ton decides what is best for the people than is necessary to the Federal Gov- Mr. Speaker, this is just one more instead of letting the people decide ernment, a day that most people prob- reason why the IRS should be abol- what is best for America. ably would like to forget. ished. It is time for us to stop tinker- As recently as 1982, Americans paid Most Americans are tired of big gov- ing around the edges, time for us to get only 19.9 percent of their income in ernment, high taxes, the complexity of serious and abolish the IRS and replace taxes. New data reveals that in 1995 the current Tax Code and, guess what, the current system. Americans paid 31.3 percent of their in- the IRS. Well, I am too, and I plan on The tax freedom bill is the first step come in taxes, the highest level in his- doing something about it. to do that. I believe it will encourage tory, and that does not count local and Last week I introduced a bill that ev- an open, honest, and constructive de- State. If we add those in, we are paying eryone can support and rally behind. It bate about why our current tax struc- nearly 50 percent, 51, I guess. will unite Members and the public be- ture has failed and what we should ex- Mr. Speaker, those that say the sys- hind a common goal, eliminating the pect. By embracing the principles of tem can be fixed are crazy, in my view. IRS and developing a new tax system. freedom, we can create a system that is It has undergone 31 major revisions and I think that is something every one un- fair and simple, that reduces the bu- 400 minor ones in the past 40 years. I derstands and is energized about. reaucracy, that encourages savings, believe any new system must be based My bill is called the tax freedom bill that is efficient, that drives the econ- on a vision of America that places the and would repeal the 16th amendment omy, that creates opportunity for all individual, not the Government, in to the Constitution. That is the amend- and finally puts more money in our charge. ment that authorizes the income tax. pockets. f The tax freedom bill is designed to re- The current system fails to meet verse one of the most destructive these commonsense criteria. It is not THE AMERICAN DREAM TAX amendments, in my view, to the U.S. fair or simple. FAIRNESS EQUITY ACT OF 1997 Constitution. The current system has 480 different The SPEAKER pro tempore (Mr. As most of my colleagues know, the forms plus 280 more to say how to fill SNOWBARGER). Under the Speaker’s an- 16th amendment was passed by Con- out the 480. Explain to me how the first nounced policy of January 21, 1997, the

b This symbol represents the time of day during the House proceedings, e.g., b 1407 is 2:07 p.m. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

H1457 H1458 CONGRESSIONAL RECORD — HOUSE April 15, 1997 gentleman from Montana [Mr. HILL] is most complicated areas of our Tax You should. Nor am I suggesting that recognized during morning hour de- Code. the Government should not collect bates for 5 minutes. According to the IRS, families aver- taxes. It should. Mr. HILL. Mr. Speaker, I am plan- age 167 hours complying with the maze However, Mr. Speaker, I am suggest- ning to introduce a bill to reduce the of estate tax law. Further, even after ing that average American families high rate of capital gains and elimi- the best tax planning, the IRS under- should not have to pay 40 percent of nate the current estate tax burden that takes tax audits in nearly 40 percent of their income to the Government. That falls disproportionately on farmers and the estate returns compared to a mere is way too much freedom for any one small business owners. 1.7 percent on normal income tax re- family to give up. Let us reduce taxes My legislation will restore the Amer- turns. on saving and investment. Bring tax ican dream to hard-working citizens After all the money and effort spent relief to families and pass the tax limi- who choose to invest in or expand a on compliance, the estate tax contrib- tation amendment. business. It will give hope to those who utes only 1 percent of our national rev- f wish to pass along their life’s work to enues. The inefficiencies of the estate NO TAXATION WITHOUT their children and grandchildren with- tax are further demonstrated in recent RESPIRATION out fear that more than half of their economic studies that indicate compli- estate will go to the Government. ance and enforcement costs 65 cents of The SPEAKER pro tempore. Under Reducing the high rate of capital every dollar collected. Every IRS field the Speaker’s announced policy of Jan- gains is vital to our ability to compete office has separate estate and gift tax uary 21, 1997 the gentleman from Colo- in the global marketplace and to ex- units to handle the more than 80 pages rado, Mr. BOB SCHAFFER, is recognized pand our work force here at home. My of the Tax Code and almost 300 pages of during morning hour debates for 1 bill will reduce the capital gains rate rules in the Federal Register that are minute. to a new, lower 15 percent rate on in- devoted to enforcing this tax. The Fed- Mr. BOB SCHAFFER of Colorado. vestments held 3 years or more. Taking eral courts are now clogged by 10,000 Mr. Speaker, it is April 15, tax day, and this action would create a strong in- estate tax cases. I rise to speak about a grave matter. centive to help establish a vibrant and Mr. Speaker, the bill I will soon in- The American farmer, the owners of growing economy. And a strong, grow- troduce reduces the capital gains tax small businesses, the freedom-loving ing economy will help us achieve a bal- rate, replaces the estate tax with a Americans across the land want to anced budget. simpler, fairer tax on capital gains. It abolish one of the most offensive taxes Mr. Speaker, reducing the burden- will revitalize the American economy of all. That is right, I am talking about some estate tax has long been a goal of and restore the American dream to the inheritance tax or the death tax as mine. My bill will entirely replace the hard working citizens who choose to it has come to be known. estate tax. At the time of death, the es- pass their assets onto their children Mr. Speaker, let me be clear about tate would pay a 15-percent capital and grandchildren instead of pouring what our policy ought to be. No tax- gains tax rate on investments held 3 them into the Government’s tax grind- ation without respiration. The injus- years or more in excess of the $600,000 er. tice of this tax, a tax that strikes at unified exemption credit and in excess The American Dream Tax Fairness the hearts of the bond between genera- of the tax basis. The gains on assets Equity Act of 1997 will help level the tions, cannot be denied. It is offensive held less than 3 years would be taxed at playing field between estate tax, trusts to the American ideal. This tax is a the current 28 percent rate. Any assets and gifting. It will stimulate the econ- scandal among thousands in our Tax without gains would be passed without omy, expand investment incentives and Code and, an outrage against the living tax. reinvigorate the American tradition of and a crime against the departed. By replacing the current estate tax individual enterprise and risk taking. b 1045 with a lower capital gains tax, children Unlike most tax proposals, it will pay Mr. Speaker, what kind of sinister of farmers and small business owners for itself. motives lie behind this tax? Who could would not be forced to break up their I urge my colleagues to join me in conceive of such a scheme that assures inheritance to pay estate taxes. Unlike doing the right thing. Let us restore that the Federal Government has more most other tax proposals, my legisla- the American dream with an equitable of a claim on our life’s work than the tion will pay for itself. It would sim- estate tax policy and provide America family we have left behind? plify the tax law by establishing the the capital gains incentive she needs I say death to the death tax. The tax same treatment for the taxation of for competition in tomorrow’s market- man cometh already once, may the tax trusts. A trust would pay a 15-percent place. man cometh no more. capital gains tax and follow the same f f tax treatment as the estate tax on all capital assets. TAX DAY TAX LIMITATION AMENDMENT My bill would create an even playing The SPEAKER pro tempore. Under The SPEAKER pro tempore (Mr. field between trusts, estates, and prior the Speaker’s announced policy of Jan- SNOWBARGER). Under the Speaker’s an- gifting. Life insurance proceeds would uary 21, 1997, the gentleman from nounced policy of January 21, 1997 the not be taxed and there would be no tax South Dakota [Mr. THUNE] is recog- gentleman from Washington [Mr. on cash transfers. nized during morning hour debates for METCALF] is recognized during morning When the estate tax began in 1913, it 1 minute. hour debates for 5 minutes. was limited to 10 percent of one’s in- Mr. THUNE. Mr. Speaker, when most Mr. METCALF. Mr. Speaker, we are heritance. Today the tax has become folks think about April 15, they think all very much aware that today is exorbitant and punitive. With the high- about somehow coming up with enough April 15: Tax day. Millions of Ameri- est marginal rate of 55 percent, more money to fend off the tax man. How- cans are feverishly working to com- than half of an estate can go directly ever, if the truth be told, April 15 is plete and mail their tax returns by to the Government. It hinders passage really about people subjecting them- midnight tonight. of many family owned farms and small selves to government. In other words, With that in mind, it is very appro- businesses to the next generation. it is about giving up your God-given priate that today we will vote on the In addition, if the estate must be sold freedom. tax limitation amendment. I have to pay the tax, application of current By forking over your hard-earned joined with 118 colleagues from both capital gains tax can further diminish dollars, you are empowering the Gov- parties to sponsor this amendment to the inheritance. Many observers right- ernment to decide how your money the Constitution. It would require a ly see this as double taxation of income should be spent to help you, instead of two-thirds congressional appropriation from capital assets. And it does not end you deciding how you should spend for any new or higher taxes. there. Families must often pay lawyers your own money to help yourself. Mr. Speaker, in 1950 about 3 percent and accountants and planners for es- I am not suggesting for a moment of the average American family’s in- tate tax planning purposes, one of the that you should not pay your taxes. come went to taxes. Three percent in April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1459

1950. Now, over 40 percent of the fami- taxes, including my own home State of Mr. DEFAZIO led the Pledge of Alle- ly’s income goes for local, State, and Washington. giance as follows: Federal taxes. And, for what? Intrusive In addition, Mr. Speaker, the tax lim- I pledge allegiance to the Flag of the Unit- regulation on small business, tobacco itation amendment will help check ed States of America, and to the Republic for subsidies, snooping into tax records by runaway Federal spending because it is which it stands, one nation under God, indi- Internal Revenue Service agents, dupli- tougher to pass taxes. Congress and the visible, with liberty and justice for all. cation in the Federal bureaucracy, and President will need to make the tough f an ever increasing agency bureaucracy choices necessary to slow the growth of WORKING AMERICANS WAGE that hinders rather than helps our the bloated Federal bureaucracy. RESTORATION ACT local schools teach our kids. Under our current system it is not easy According to a 1994 study by the Na- to cut spending. Every line item ex- (Mr. NETHERCUTT asked and was tional Taxpayer Union Foundation, the penditure has a constituency or inter- given permission to address the House coming explosion in Federal entitle- est group fighting to keep their pet for 1 minute.) ment spending could cause after-tax in- program in place. Mr. NETHERCUTT. Mr. Speaker, comes to fall by as much as 59 percent History has shown us that tax in- today taxpayers throughout America over the next 45 years. We cannot stand creases do not reduce the deficit, they will do their civic duty by paying their a 59-percent increase. make it worse by fueling more Federal Federal income taxes. The typical The study shows that funding bene- spending. Example: In 1982, Congress American family will pay more in all fits and other Government services will passed $217 billion in higher taxes with taxes than it spends on food, clothing require taxes of between 57 to 69 per- the promise they would match every and shelter combined. cent of our income. Mr. Speaker, the dollar in new taxes with $2 in spending Our colleague in the Senate, Senator American family simply cannot sur- cuts. In fact, spending skyrocketed and JOHN ASHCROFT, and I believe this is vive and pay those kinds of taxes. At 40 the national debt went through the too much, that working Americans percent we are close to the breaking roof. know better how to spend their money point. Mr. Speaker, we must pass the tax than the Government does. So I am For 124 years the U.S. Constitution limitation amendment today. pleased today, with Senator ASHCROFT in the Senate, to introduce the Work- protected the American people against f the expansion of the Federal Govern- ing Americans Wage Restoration Act. ment and against unlimited taxes. It RECESS This bill will allow American work- ers to deduct their share of Federal prohibited the income tax, and con- The SPEAKER pro tempore. Pursu- payroll taxes. These payroll taxes are stitutional scholars stressed that Con- ant to clause 12 of rule I, the House inherently unfair because workers are gress had only 18 powers that were stands in recess until 12 noon. taxed twice in the same income. They granted specifically in the Constitu- Accordingly (at 10 o’clock and 51 are taxed once as a portion of gross in- tion. minutes a.m.), the House stood in re- come for Federal income purposes and Ratification of the 16th amendment cess until 12 noon. in 1913 authorized an income tax with for a second time for the contribution no limitation. The result: With con- f to the Social Security trust fund. stitutional limits on taxes stripped b 1200 By allowing workers to deduct on away, Federal tax collections have their income taxes their share of So- climbed more than 175,000 percent since AFTER RECESS cial Security contributions, the Work- 1913. Now, let us go over that again. My The recess having expired, the House ing Americans Wage Restoration Act colleagues heard me right. It has in- was called to order by the Speaker pro will eliminate this double taxation and creased 175,000 percent since 1913. tempore (Mr. GOODLATTE) at 12 noon. allow workers to keep more of the It is time we restored constitutional money they earn. f limits on taxation. The tax limitation So I urge my colleagues to join with amendment is in the spirit of the Bill PRAYER us in this bill in giving fair tax relief to the American workers. of Rights, which limits Government to The Chaplain, Rev. James David preserving individual freedom. We Ford, D.D., offered the following pray- f must protect the people from excessive er: LINE ITEM VETO ACT HELD UN- taxes. Let us pray. We know, O God, that we The fact is, Mr. Speaker, it is just CONSTITUTIONAL BY FEDERAL need the power of the spirit to walk the too easy to increase taxes on the Amer- DISTRICT COURT paths of life and to do the work of jus- ican people. During the past 30 years, (Mr. SKAGGS asked and was given tice. And so we ask Your guidance as of 16 votes to increase taxes, only 8 permission to address the House for 1 we seek that way that honors our own would have passed if the two-thirds minute.) creation and shows us the way of serv- supermajority requirement had been in Mr. SKAGGS. Mr. Speaker, I am join- ice to other people. Grant us strength place. In the 1980’s and 1990’s, more ing with three other colleagues in in- for the task, wisdom for our minds, than $660 billion in new taxes was troducing a bill to give the President love for our hearts, and enthusiasm for passed by the slimmest of majorities. and Congress new, effective and, very our spirits that we will be the people That is $660 billion that taxpayers importantly, constitutional powers to You would have us be. Bless us this day would not have had to pay if the tax weed out wasteful Government spend- and every day, we pray. Amen. limitation amendment had been in ef- ing. fect. f As my colleagues know, the Federal District Court last week held unconsti- President Clinton’s 1993 tax increase, THE JOURNAL the largest in our Nation’s history, at tutional, as it should have, the Line $275 billion in one shot, passed by only The SPEAKER pro tempore. The Item Veto Act that was passed by Con- one vote in the House. That hammered Chair has examined the Journal of the gress last year and became effective small businesses, millions of people on last day’s proceedings and announces the first of this year. Social Security and anyone who drives to the House his approval thereof. The bipartisan approach that I am a car. Pursuant to clause 1, rule I, the Jour- taking today with colleagues is the in- Opponents say that passage of the nal stands approved. troduction of the Expedited Rescissions Tax Limitation Amendment would be f Act of 1997, it will provide an effective fiscal disaster for our country. The tool for getting at those items of facts just do not support that argu- PLEDGE OF ALLEGIANCE wasteful spending that sometimes get ment. Already 28 States have some The SPEAKER pro tempore. Will the buried in appropriations bills, but form of limitation on taxes or govern- gentleman from Oregon [Mr. DEFAZIO] doing so in a way that honors the con- ment spending, and 13 of those States come forward and lead the House in the stitutional principle of separation of require supermajorities to increase Pledge of Allegiance. powers that was central to the court’s H1460 CONGRESSIONAL RECORD — HOUSE April 15, 1997 holding of unconstitutionality of the Jackie Robinson, continues to inspire AMERICANS NEED A TAX CUT line item veto last week. men and women, young and old, to (Mr. WELDON of Florida asked and This bill is similar to one that passed strive to do their best. was given permission to address the the House but was not taken up by the Today, Mr. Speaker, we salute, we House for 1 minute and to revise and Senate in 1993. It will provide a very pay tribute, to a great American: Jack- extend his remarks.) useful tool for getting at wasteful ie Robinson. items in appropriations bills, and I f Mr. WELDON of Florida. Mr. Speak- urge my colleagues to consider cospon- er, I want to increase the take-home IT IS TIME TO SLASH THE sorship. pay of American workers. What could OPPRESSIVE TAX CODE f be done? We could cut the tax on job (Mr. HEFLEY asked and was given creation that would improve economic STOP THE TAX RIP-OFFS permission to address the House for 1 growth, create new jobs and more op- (Mr. CHABOT asked and was given minute and to revise and extend his re- portunities, or we could reform the Tax permission to address the House for 1 marks.) Code in a way that will give businesses minute and to revise and extend his re- Mr. HEFLEY. Mr. Speaker, it is time a greater incentive to invest in new marks.) to take a cue from Lorena Bobbitt. It machinery and equipment that would Mr. CHABOT. Mr. Speaker, it is a sad is time to slash. We need to slash away improve productivity and raise wages. fact that simply to mention today’s at the crushing tax burden that is hold- Or we could encourage greater invest- date is to utter a phrase that most ing back the American economy, dash- ment in education and training, so Americans find repugnant: April 15, tax ing the hopes and dreams of middle workers could have more skills, be day. The words just sort of lie there, class families, and robbing millions of more productive, and earn higher cold and hard and ugly. We take a per- new college graduates of opportunities. wages. fectly good month like April and we We can adopt the audacious strategy But the best way to increase the spoil it with this tax ritual, because of boldness and with one stroke we can take-home pay is to do so directly. the amount of money that the Federal slash tax rates across the board, giving This is not rocket science. Raise take- Government takes away from working tax relief to all working Americans. Or home pay by allowing workers to keep families is a scandal, the amount of we can adopt a more calculated strat- more of their money that they earn. money that the Federal Government egy, and with systematic thrusts we Mr. Speaker, millions of workers live spends and wastes is a scandal, and the can slash first the death tax, then slash paycheck to paycheck. A tax cut would arrogant, bureaucratic system by the tax on capital gains, and then, just allow that paycheck to go a little bit which the Federal Government takes to be sure, slash the rates on personal further, especially for those just get- that money is a scandal, too. income to complete the task. ting by. It is time to give American We have to change the system, Mr. Today, on April 15, is a reminder, it workers a break. They need a tax cut. Speaker. We have to get back to the is the season to slash and cut. We must idea that the bureaucrats work for the get to work now and slay the giant job- f taxpayer, not vice versa. The presump- killer, an oppressive Tax Code that tion ought to be in favor of the tax- threatens us all. NO EXTENSION FOR BUDGET COM- payer, not in favor of the Government. f The presumption ought to be against MITTEE ON BUDGET RESOLU- PROPOSED CONSTITUTIONAL Government boondoggles, like the Na- TION DAY AMENDMENT WOULD PROTECT tional Sheep Industry Improvement CORPORATE AND SPECIAL IN- (Mrs. TAUSCHER asked and was Council. Not a single sheep is being im- TEREST TAX LOOPHOLES given permission to address the House proved but the taxpayer is being for 1 minute and to revise and extend fleeced. (Mr. DEFAZIO asked and was given his remarks.) permission to address the House for 1 We need to end corporate welfare, we Mrs. TAUSCHER. Mr. Speaker, today minute and to revise and extend his re- need to stop the government rip-offs, is tax day, the deadline for all Ameri- marks.) and we need to give the American peo- cans to submit their Federal income Mr. DEFAZIO. Mr. Speaker, as we de- ple tax relief. Let us cut taxes now. tax returns. But there is another dead- bate today, millions of Americans f line today. April 15 is the day by which across the country are still laboring the House is statutorily required to TRIBUTE TO JACKIE ROBINSON over their taxes. No one can argue that have approved a budget resolution. The (Mr. LEWIS of Georgia asked and was the current system is simple or fair. IRS generously allows taxpayers to file given permission to address the House But today, under the guise of offering an extension if they cannot complete for 1 minute and to revise and extend relief to average taxpaying hard- taxes by today. The House should not his remarks.) working wage-earning Americans, this be so kind to the Committee on the Mr. LEWIS of Georgia. Mr. Speaker, Congress is going to consider a con- Budget. I rise today to pay tribute to Jackie stitutional amendment that would Robinson, Jackie Robinson, the man, make it impossible to close the loop- The American people sent us here the native Georgian. On this day 50 holes and make other needed changes with a mission to restore fiscal sanity years ago this son of America, this citi- in the Internal Revenue Service and to the Federal budget. Today only the zen of the world, broke the color line in the Tax Code. Blue Dog Coalition has prepared a bal- professional baseball. It would be more properly titled anced budget proposal. Unfortunately, He was a good athlete. He succeeded ‘‘The Corporate and Special Interest the Committee on the Budget has re- on the field and he was superb off the Loophole Protection Amendment.’’ It fused to tell the American people what field. He was able to catch and hit. He would not allow us, except with a two- steps it would take to eliminate the was able to steal bases. He was able to thirds vote, to close the loophole that deficit by 2002. run. But his greatest contribution was allows 71 percent of the profitable for- In the absence of a budget resolution, not baseball, his greatest contribution eign corporations in America to pay the House has been brought to a grind- was to the cause of social justice. not a penny of tax in this country, and ing halt. Important legislation cannot Through his actions he inspired hun- 31 percent of the largest, most profit- move forward without knowing how dreds to walk in dignity, to march for able U.S. multinationals to pay not a much money is available. Decisions on pride, to stand up for America by sit- penny of tax in this country. priorities ranging from education to ting in places where African-Americans Foreign firms filed claims on our pre- transportation have been put on hold. had never been able or allowed to sit cious minerals last year. A foreign The Committee on the Budget does before. company got $13 billion of gold for not warrant an extension on Budget For his action on the field, he opened $13,000. We would not be able to charge Resolution Day. Show us your plan and doors that had been closed for genera- them anymore without a two-thirds let us decide if it makes sense for the tions. This one man, this one man, vote under this ridiculous amendment. American people. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1461 THE TRUTH ABOUT THE BENEFITS One such partnership is in my dis- We need to pass the two-thirds tax OF H.R. 400 trict, at the Wabash Valley Commu- limitation constitutional amendment (Mr. COBLE asked and was given per- nity Foundation in Terre Haute, IN. on the floor of the House of Represent- mission to address the House for 1 The Youth Grant Committee involves atives this afternoon to put back into minute and to revise and extend his re- young people in evaluating projects for the Constitution not an absolute prohi- marks.) awards to other young people and in bition against leveling income taxes Mr. COBLE. Mr. Speaker, several the process allows them to take re- but at least a supermajority require- weeks ago I received a call from a man sponsibility for their future. ment that will take two-thirds of the who identified himself as a frustrated f House and the Senate before we raise small inventor. He then proceeded to taxes. INVITATION TO CONFERENCE ON f give me a tongue-lashing about the ISSUES IMPORTANT TO UNITED patent bill, H.R. 400, claiming that it STATES-MEXICO BORDER TAX BURDEN ON SENIORS MUST would put the little guy out of busi- (Mr. REYES asked and was given per- BE LIFTED ness. mission to address the House for 1 (Mr. STEARNS asked and was given I asked him what was his source of minute and to revise and extend his re- permission to address the House for 1 information. He referred to a talk show marks.) minute and to revise and extend his re- featuring a Congressman who said Mr. REYES. Mr. Speaker, I rise marks.) that. I asked the caller if he had read today to talk about an important event Mr. STEARNS. Mr. Speaker, today is the bill. No. I asked him if he wanted being held in Washington this week tax day. I think most of us would agree to read the bill. Yes. I mailed a copy of and to invite all my colleagues to at- that we are taxed too much. But do we the bill to him, and then about 10 days tend. The United States-Mexico Cham- really need to tax seniors like we do? I later he called me and apologized. He ber of Commerce and the University of do not think so. said, this is a good bill, not at all like Texas at El Paso are sponsoring a con- Sadly, that is precisely what hap- I was told on the talk radio show. ference this week in Washington about pened with the Clinton 1993 budget Yesterday, Mr. Speaker, a woman issues that are important along the package. Some might try to argue that came to me, a Member of this body who United States-Mexico border. that was a good package. They were was scheduled to speak on behalf of the The border between our countries is wrong. They are still wrong. These bill later this week. She said, I cannot almost 2,000 miles long. We have a com- folks in the administration have long do it. I said, why? Because I have re- mon border, and we have common chal- pursued a tax and spend policy. Try ceived mail that says H.R. 400 is bad lenges to meet. telling seniors that their taxes on So- for the little guy. I said, were there This conference will be held Wednes- cial Security are fair and necessary. I have introduced legislation to roll any details spelled out? No, she said. day and Thursday. It will address such back this additional tax burden that This is how she bases her opinion. issues as the economics of the border, was placed on seniors by the Clinton This is how the caller based his opin- environmental concerns of the border, administration in 1993. It also includes ion. Scare tactics are very effective. transportation and infrastructure indexation of capital gains and Amer- Scare tactics make a formidable oppo- needs of the border, cultural aspects of ican dream savings accounts for young nent. the border and a status report on the people who are trying to purchase their f impact of NAFTA on the United first home. I urge my colleagues who States-Mexico border. NEIGHBOR HELPING NEIGHBOR believe in tax relief, true tax relief for I invite all my colleagues to a con- all Americans, to sponsor my bill (Mr. PEASE asked and was given per- gressional reception from 6 to 8 p.m. on which is budget neutral. It is H.R. 1266. mission to address the House for 1 Wednesday, April 16 in B–369 Rayburn. It is entitled the Budget Neutral Amer- minute and to revise and extend his re- I also invite all my colleagues to at- ican Tax Relief Act. marks.) tend all the conference or parts of the Mr. PEASE. Mr. Speaker, April 15 is conference. I also ask my colleagues to f the day notorious among Americans. look for my Dear Colleague letter this MESSAGE FROM THE PRESIDENT We dread the tax deadline, despair over afternoon. A message in writing from the Presi- the amount of money we turn over to f dent of the United States was commu- the Government and wonder how much nicated to the House by Mr. Sherman benefit it will reap. Many citizens as- IN SUPPORT OF THE TWO-THIRDS Williams, one of his secretaries. sume that, once they pay their taxes, TAX LIMITATION AMENDMENT the Government will take care of ev- (Mr. BARTON of Texas asked and f erything. History has proven this un- was given permission to address the ANNOUNCEMENT BY THE SPEAKER true. House for 1 minute and to revise and PRO TEMPORE What history proves is that this Na- extend his remarks.) The SPEAKER pro tempore (Mr. tion is great because of a tradition of Mr. BARTON of Texas. Mr. Speaker, PEASE). Pursuant to the provisions of neighbor helping anybody or and com- I hold in my right hand a copy of the clause 5, rule I, the Chair announces munity and faith-based institutions as- Constitution of the United States of that he will postpone further proceed- sisting others when they need help. America. When this document was rati- ings today on each motion to suspend This tradition allows people to take re- fied by the Original Thirteen Colonies the rules on which a recorded vote or sponsibility for themselves and their in 1787, in article I, section 9, I want to the yeas and nays are ordered, or on neighbors rather than abdicating this read the following sentence: No capita- which the vote is objected to under responsibility to the government. tion, or other direct, tax shall be laid, clause 4 of rule XV. I join the hundreds of thousands of unless in proportion to the census or Such rollcall votes, if postponed, will others today in celebrating National enumeration herein before directed to be taken after debate has concluded on Youth Service Day and the 10th anni- be taken. all motions to suspend the rules, but versary of Youth as Resources. Gather- What that meant was there could be not before 4 p.m. today. ing today in Indiana is a group of no income tax in the original Constitu- f unique young people. The Coalition of tion, but on February 3, 1913, the 16th Community Foundations for Youth has amendment was passed to the Con- TAXPAYER BROWSING gathered teenagers from all walks of stitution that overrode that sentence PROTECTION ACT life and all ages, from the poorest to that I just read. The 16th amendment Mr. ARCHER. Mr. Speaker, I move to the wealthiest, who actively partici- says: The Congress shall have the suspend the rules and pass the bill pate in community service and allows power to lay and collect taxes on in- (H.R. 1226) to amend the Internal Reve- them to exchange ideas and discuss comes, from whatever source derived, nue Code of 1986 to prevent the unau- models for improving the quality of life without apportionment among the sev- thorized inspection of tax returns or in their own neighborhoods. eral States. tax return information, as amended. H1462 CONGRESSIONAL RECORD — HOUSE April 15, 1997 The Clerk read as follows: ‘‘(e) NOTIFICATION OF UNLAWFUL INSPECTION and mailed in, you would think tax- H.R. 1226 AND DISCLOSURE.—If any person is criminally payers could then look forward to a re- charged by indictment or information with fund or, for some unfortunate souls, an Be it enacted by the Senate and House of Rep- inspection or disclosure of a taxpayer’s re- resentatives of the United States of America in audit. turn or return information in violation of— But we have now learned that tax- Congress assembled, ‘‘(1) paragraph (1) or (2) of section 7213(a), SECTION 1. SHORT TITLE. ‘‘(2) section 7213A(a), or payers have something else to fear: IRS This Act may be cited as the ‘‘Taxpayer ‘‘(3) subparagraph (B) of section 1030(a)(2) agents, who snoop through people’s Browsing Protection Act’’. of title 18, United States Code, personal, confidential tax records. SEC. 2. PENALTY FOR UNAUTHORIZED INSPEC- the Secretary shall notify such taxpayer as Mr. Speaker, this is a copy of form TION OF TAX RETURNS OR TAX RE- soon as practicable of such inspection or dis- 1040. Taxpayer records are among soci- TURN INFORMATION. closure.’’ ety’s most confidential and sensitive (a) IN GENERAL.—Part I of subchapter A of (c) NO DAMAGES FOR INSPECTION REQUESTED documents. They often describe how chapter 75 of the Internal Revenue Code of BY TAXPAYER.—Subsection (b) of section 7431 much alimony people pay, how much 1986 (relating to crimes, other offenses, and of such Code is amended to read as follows: forfeitures) is amended by adding after sec- they spend on health care, and, of ‘‘(b) EXCEPTIONS.—No liability shall arise tion 7213 the following new section: course, how much money they make. under this section with respect to any in- This information belongs to the tax- ‘‘SEC. 7213A. UNAUTHORIZED INSPECTION OF RE- spection or disclosure— TURNS OR RETURN INFORMATION. ‘‘(1) which results from a good faith, but payers, not the Government. And tax- ‘‘(a) PROHIBITIONS.— erroneous, interpretation of section 6103, or payers who suffer enough already ‘‘(1) FEDERAL EMPLOYEES AND OTHER PER- ‘‘(2) which is requested by the taxpayer.’’ should not have to worry about snoop- SONS.—It shall be unlawful for— (d) CONFORMING AMENDMENTS.— ing Toms at the IRS who abuse their ‘‘(A) any officer or employee of the United (1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) trust by looking up private tax infor- States, or of section 7431 of such Code are each amend- mation. ‘‘(B) any person described in section 6103(n) ed by inserting ‘‘inspection or’’ before ‘‘dis- Yet the General Accounting Office or an officer or employee of any such person, closure’’. tells us that there are more than 1,000 willfully to inspect, except as authorized in (2) Clause (ii) of section 7431(c)(1)(B) of incidents that they know of in which this title, any return or return information. such Code is amended by striking ‘‘willful IRS agents snooped into someone’s ‘‘(2) STATE AND OTHER EMPLOYEES.—It shall disclosure or a disclosure’’ and inserting be unlawful for any person (not described in ‘‘willful inspection or disclosure or an in- files. That is why I am pleased that the paragraph (1)) willfully to inspect, except as spection or disclosure’’. House today, as a part of taxpayer pro- authorized in this title, any return or return (3) Subsection (f) of section 7431 of such tection week, will pass this bill that information acquired by such person or an- Code, as redesignated by subsection (b), is makes it a crime to snoop into tax- other person under a provision of section 6103 amended to read as follows: payer records. referred to in section 7213(a)(2). ‘‘(f) DEFINITIONS.—For purposes of this sec- This bill also adds an important pri- ‘‘(b) PENALTY.— tion, the terms ‘inspect’, ‘inspection’, ‘re- vacy shield for taxpayers by requiring ‘‘(1) IN GENERAL.—Any violation of sub- turn’, and ‘return information’ have the re- the IRS to notify taxpayers when section (a) shall be punishable upon convic- spective meanings given such terms by sec- criminal browsing activity is indi- tion by a fine in any amount not exceeding tion 6103(b).’’ $1,000, or imprisonment of not more than 1 (4) The section heading for section 7431 of cated. If someone’s privacy has been year, or both, together with the costs of such Code is amended by inserting ‘‘INSPEC- violated by the Government, they have prosecution. TION OR’’ before ‘‘DISCLOSURE’’. a right to know it, and they should be ‘‘(2) FEDERAL OFFICERS OR EMPLOYEES.—An (5) The Table of sections for subchapter B outraged. officer or employee of the United States who of chapter 76 of such Code is amended by in- I believe these two provisions will is convicted of any violation of subsection serting ‘‘inspection or’’ before ‘‘disclosure’’ serve as a twin deterrent to protect the (a) shall, in addition to any other punish- in the item relating to section 7431. privacy of taxpayer information. ment, be dismissed from office or discharged (6) Paragraph (2) of section 7431(g) of such Mr. Speaker, I look forward to the from employment. Code, as redesignated by subsection (b), is time when we can protect taxpayers ‘‘(c) DEFINITIONS.—For purposes of this sec- amended by striking ‘‘any use’’ and inserting not only from the IRS but also from tion, the terms ‘inspect’, ‘return’, and ‘re- ‘‘any inspection or use’’. the current Tax Code which, after all, turn information’ have the respective mean- (e) EFFECTIVE DATE.—The amendments ings given such terms by section 6103(b).’’ made by this section shall apply to inspec- is the root cause of these problems. (b) TECHNICAL AMENDMENTS.— tions and disclosures occurring on and after The current code is unfair, excessively (1) Paragraph (2) of section 7213(a) of such the date of the enactment of this Act. complicated, overly intrusive, and Code is amended by inserting ‘‘(5),’’ after The SPEAKER pro tempore. Pursu- antigrowth. ‘‘(m)(2), (4),’’. I believe we must pull the income tax (2) The table of sections of part I of sub- ant to the rule, the gentleman from Texas [Mr. ARCHER] and the gentleman out by its roots and throw it away so chapter A of chapter 75 of such Code is that it can never grow back. When we amended by inserting after the item relating from Pennsylvania [Mr. COYNE], each to section 7213 the following new item: will control 20 minutes. do, we will have made the tax system fairer, simpler, created more economic ‘‘Sec. 7213A. Unauthorized inspection of re- The Chair recognizes the gentleman turns or return information.’’ from Texas [Mr. ARCHER]. growth, and we will have gotten the IRS completely and totally out of the (c) EFFECTIVE DATE.—The amendments GENERAL LEAVE made by this section shall apply to viola- lives of every individual American. Mr. ARCHER. Mr. Speaker, I ask Until that great day comes, we must tions occurring on and after the date of the unanimous consent that all Members enactment of this Act. do everything in our power to protect may have 5 legislative days in which to the rights of taxpayers. When it comes SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED IN- revise and extend their remarks and in- SPECTION OF RETURNS AND RE- to fighting those who browse and snoop TURN INFORMATION; NOTIFICATION clude extraneous matter on the bill, into personal taxpayer records, there OF UNLAWFUL INSPECTION OR DIS- H.R. 1226. ought to be a law, and now there will CLOSURE. The SPEAKER pro tempore. Is there (a) CIVIL DAMAGES FOR UNAUTHORIZED IN- be. objection to the request of the gen- Mr. Speaker, I reserve the balance of SPECTION.—Subsection (a) of section 7431 of tleman from Texas? the Internal Revenue Code of 1986 is amend- my time. ed— There was no objection. Mr. COYNE. Mr. Speaker, I yield my- (1) by striking ‘‘DISCLOSURE’’ in the head- Mr. ARCHER. Mr. Speaker, I yield self such time as I may consume. ings for paragraphs (1) and (2) and inserting myself such time as I may consume. Mr. Speaker, I rise in support of H.R. ‘‘INSPECTION OR DISCLOSURE’’, and Mr. Speaker, today is tax day. As 1226, the Taxpayer Browsing Protection (2) by striking ‘‘discloses’’ in paragraphs most of the country knows by now, I Act. This bill was introduced on a bi- (1) and (2) and inserting ‘‘inspects or dis- continue to do my own taxes. Like mil- partisan basis in April 1997, and I want closes’’. lions of other Americans who struggle to thank my Democratic and Repub- (b) NOTIFICATION OF UNLAWFUL INSPECTION to fill out their forms before tonight’s lican colleagues on the Committee on OR DISCLOSURE.—Section 7431 of such Code is amended by redesignating subsections (e) midnight deadline, I keenly know how Ways and Means for their support of and (f) as subsections (f) and (g), respec- difficult, time-consuming and trou- H.R. 1226 and their very quick action. tively, and by inserting after subsection (d) bling it is to comply with our Tax As expected, H.R. 1226 was approved the following new subsection: Code. But once the forms are complete unanimously by the committee with April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1463 one amendment on April 9, 1997. The H.R. 1226 should not be construed as The honest American family works too bill before us today is a good example an attack on the IRS. While there are long and too hard to have to deal with of the Committee on Ways and Means a small number of IRS employees in- an unfair and, on occasion, overly in- working together to improve and sup- tent on violating the law, the vast ma- trusive IRS and agents who trample on port the Internal Revenue Service. jority of IRS employees are hard- their rights. Also H.R. 1226 has the strong support of working and committed public serv- The IRS deserves closer scrutiny when cer- the IRS and the Treasury Department. ants. IRS employees nationwide will tain agents go beyond acceptable enforce- Enactment of this bill will provide benefit from this legislation, knowing ment procedures and commit outright intimida- needed statutory support for the IRS that any browsers identified by the IRS tion or when it is unable to use common Commissioner’s current zero tolerance will be fired from their jobs and pros- sense as a yardstick. policy for browsing. I should mention ecuted criminally. This bill, the one we are considering that earlier this year IRS Commis- Mr. Speaker, I urge passage of this on the floor today, will ensure that the sioner Richardson contacted members important legislation and I reserve the powerful government agency, the IRS, of the Committee on House Oversight balance of my time. will no longer scoff at the rights of to renew her request for criminal sanc- Mr. ARCHER. Mr. Speaker, I yield well-intentioned and law-abiding tax- tions in the tax code to deal with unau- 21⁄2 minutes to the gentlewoman from payers. thorized inspection of an individual’s the State of Washington, [Ms. DUNN] Mr. Speaker, I thank the chairman tax information. who has contributed a great deal to- for his proposal of this legislation, and Legislation similar to H.R. 1226 had ward the development of this bill I urge my colleagues to support the been introduced by Senator GLENN dur- today. In fact, an amendment that she adoption of this measure. ing the 104th Congress but was never offered in committee is included in the Mr. ARCHER. Mr. Speaker, I yield 2 acted upon at that time. I want to bill, and I congratulate her for all of minutes to the gentlewoman from Con- commend the gentlewoman from Con- her very, very good work. necticut, [Mrs. JOHNSON] another mem- necticut [Mrs. JOHNSON] for her leader- Ms. DUNN. Mr. Speaker, I want to ber of our committee, highly respected, ship on H.R. 1226 and the gentleman commend Chairman ARCHER for his and chairman of the Subcommittee on from Texas [Mr. ARCHER] and the com- leadership in bringing this timely issue Oversight. mittee ranking member, the gentleman of taxpayer privacy to the floor of the Mrs. JOHNSON of Connecticut. Mr. from New York [Mr. RANGEL] for their House today. Speaker, I thank the chairman for support for this legislation. It is time Throughout my tenure in the Con- yielding me this time and commend that something be done. The public has gress I have heard from thousands of him for his leadership on this matter, the right to expect that its tax records constituents who have described to me bringing forth a bill that is truly bipar- will only be reviewed by those author- a myriad of problems they see within tisan and addresses a very significant ized to do so. Browsing is unacceptable, our system of taxation. problem at the IRS. period. It must and it will stop. Granted, our Nation suffers under an The American public’s willingness to In summary, H.R. 1226 would clarify unfair and incomprehensible Tax Code provide the Federal Government with in the Tax Code the criminal sanctions that takes too much of what we earn. sensitive personal information on their for unauthorized inspection of tax in- Worse, some rogue members of the IRS, tax returns each year depends on the formation and application of civil dam- the organization responsible for the en- confidence that the people have that ages. First, violators would be subject forcement of the Tax Code, have a this information will be held in the to significant criminal sanctions and record of seeking to intimidate and to strictest confidence. That is why it is dismissal from the IRS in their em- frighten honest hard working tax- vitally important to have strong meas- ployment. The offense that would be payers. They damage the reputation of ures in place to ensure the security of committed would be a misdemeanor, a huge majority of the honest people tax return information. with a fine of up to $1,000 and a prison working at the agency. We must not Public confidence in the IRS has been term of up to 1 year, plus the cost of tolerate a Tax Code that punishes fam- again shaken by new reports that the prosecution. ilies just as we should not tolerate an IRS personnel continue to snoop into Second, the criminal sanctions would IRS agent who is eager to bully, har- taxpayer files. Last year the IRS con- apply to IRS employees, IRS contrac- ass, or snoop on a taxpayer. firmed almost 800 cases in which IRS tors, and other Federal and State em- An important element of the IRS Ac- employees looked through taxpayer ployees having access to Federal tax countability Act that I have offered files without authorization. That has information. and of the bill on the floor today is the just got to stop. Third, tax information retained by protection of taxpayer privacy. It is As an original cosponsor of the Tax- the IRS on paper and electronically as well-documented that certain agents payer Browsing Protection Act, I be- well would be protected from unauthor- have been able to snoop through con- lieve this legislation will give the IRS ized browsing. fidential taxpayer information with no the tool it needs to enforce its zero tol- And finally, the availability of civil regard for individual rights of the hon- erance policy against unauthorized damages for unauthorized inspection or est and the law-abiding taxpayers. browsing into taxpayer records by disclosure would be expanded. The tax- Furthermore, recent reports shed additional making it a crime punishable by up to payer would be notified when there has light on the need for this legislation and the a year in jail. been a criminal indictment for illegal adoption of my amendment. According to the Today we are telling IRS employees browsing or disclosure, and the tax- GAO, for fiscal year 1994 and 1995, over that if they go into other people’s pri- payer would be able to sue for civil 1,500 instances occurred where IRS employ- vate files, they will be heavily penal- damages in the same manner as under ees were accused of unlawful browsing. After ized and they may go to jail. As Ameri- current law for an unauthorized disclo- accounting for firings, for disciplinary action, cans file their tax returns today, they sure, the greater of $1,000 or actual pu- and for counseling, 33 percent of these cases can be confident that their tax return nitive damages, plus costs. were closed without action. information is theirs alone and their I am glad the Committee on Ways privacy rights will be protected by law b 1230 and Means adopted my amendment to by this Congress. It is important to note that the IRS require that the taxpayer be notified Mr. ARCHER. Mr. Speaker, I yield 2 employee would not be subject to when an IRS agent is indicted or other- minutes to the gentleman from Texas, criminal sanctions in the bill unless wise charged with unauthorized inspec- Mr. SAM JOHNSON, another respected the unauthorized inspection was willful tion. member of the Committee on Ways and inspection. The bottom line is that this provision ad- Means. Also, the bill would not provide civil dresses what I believe to be a matter of com- Mr. SAM JOHNSON of Texas. Mr. damages in the case of an accidental or mon decency. Speaker, from 1982 to 1993, the Demo- inadvertent inspection, such as making My amendment also provides tax- crats in Congress voted to increase the an error in typing into the computer a payers a civil remedy in such unau- taxes of hardworking Americans by taxpayer’s identification number. thorized inspection or browsing cases. $666 billion. This new revenue was not H1464 CONGRESSIONAL RECORD — HOUSE April 15, 1997 put toward the debt or used to elimi- Meanwhile, we in the Congress must to potential misuse. Employees are dis- nate the deficit. Instead it was used to continue our work and, as the gen- ciplined according to a Guide for Penalty De- increase the size and scope of Govern- tleman from Texas, [Mr. ARCHER] is so terminations that includes dismissal. In the Czubinski opinion, for court noted that ‘‘the ment. fond of saying, tearing our present Tax IRS rules plainly stated that employees with History has shown us that every time Code out by the roots and putting in its passwords and access codes were not per- Congress increases taxes, they also in- place a fairer and simpler tax system mitted to access files on IDRS [the database] crease spending. I believe that it is one with less room for such fraud and outside of the course of their official duties.’’ more reason why the American people abuse. In addition to the internal actions, the IRS should demand that Congress abolish Mr. COYNE. Mr. Speaker, I yield my- has recommended and supported legislative the IRS. I think the agency is out of self such time as I may consume just to efforts to amend the Internal Revenue Code and Title 18 to clarify the criminal sanctions control. submit for the RECORD a letter that for unauthorized computer access to tax- What the tax limitation amendment was written to me by Commissioner payer information. A recent amendment to will do is provide a safeguard for tax- Richardson of the IRS on March 10, cit- 18 USC § 1030(a)(2)(B) by the Economic Espio- payers and no longer be simple and ing the need for the legislation that we nage Act of 1996, Pub. L. No. 104–294, 110 Stat. easy for Congress to increase taxes. It are debating here today and insert that 3488 (1996), provides criminal misdemeanor is a win-win for the American tax- in the RECORD; also, a memo from Com- penalties for anyone who intentionally ac- payer. Not only will they get a smaller, missioner Richardson in October 1993 cesses a computer without authorization or more efficient government, but protec- to all employees of the IRS stating her who exceeds authorized access and thereby tion from higher taxes. policy of zero tolerance for any type of obtains information, including tax informa- tion from any department or agency of the I think the Speaker agrees with me browsing within the agency. United States. I have been advised by coun- that something must be done. I think DEPARTMENT OF THE TREASURY, sel that had this amendment been in effect that of the browsing that has been INTERNAL REVENUE SERVICE, and applicable to the Czubinski and Patterson going on, the Speaker probably does Washington, DC, March 10, 1997. cases, the government very likely would not not know that 1,500 IRS agents were Hon. WILLIAM J. COYNE, have lost those cases. caught browsing from fiscal year 1994 Subcommittee on Oversight, Committee on Ways Although the recent amendment to 18 USC to 1995, and only 23 of them were tried. and Means, House of Representatives, § 1030(a)(2)(B) will hopefully serve as a sig- Washington, DC. The rest were either given a slap on the nificant deterrent to unauthorized computer DEAR MR. COYNE: I wanted to let you know access of taxpayer information, this statute wrist or counseled. What does counsel- about a case that was recently decided by only applies to unauthorized access of com- ing mean? I do not know. the United States Court of Appeals for the puter records. It does not apply to unauthor- We ought to demand accountability First Circuit, United States v. Czubinski, No. ized access or inspection of paper tax returns not only from the IRS, but from the 96–1317, 1997 U.S. App. LEXIS 3077 (1st Cir. and related tax information. Legislation judges in Boston who ruled it was OK February 21, 1977) and to request your sup- such as S. 670, introduced in the 104th Con- as long as they did not use it mali- port for legislation to clarify the criminal gress, would achieve that result. By clarify- ciously. sanctions in the Internal Revenue Code for ing the criminal sanctions for unauthorized the unauthorized access of taxpayers’ ac- Mr. Speaker, I strongly urge my col- access or inspection of tax information in counts by Internal Revenue Service employ- section 7213 of the Internal Revenue Code, leagues to vote with us today. Give ees. whether that information is in computer or Americans the assurance of trust they Since becoming Commissioner, I have re- paper format, the entire confidentiality deserve from their Government. peatedly stated that the IRS will not toler- scheme respecting tax information and relat- Mr. ARCHER. Mr. Speaker, I yield 2 ate violations by employees of the rules ed enforcement mechanisms would be appro- minutes to the gentleman from Michi- against unauthorized access. The Service’s priately found in the Internal Revenue Code. gan [Mr. CAMP] another respected ‘‘zero tolerance’’ policy prohibits any em- An amendment to section 7213 such as was member of the committee. ployee access to (and use of) tax information, proposed in the 104th Congress would serve Mr. CAMP. Mr. Speaker, I thank the except to the extent necessary for an em- important tax administration objectives. (Of ployee to perform assigned duties. course, as is currently the case under section chairman for yielding me this time, In the Czubinski case, the First Circuit re- 7213 for convictions resulting from the dis- and I rise in support of this versed the conviction of a former IRS em- closure of tax information to unauthorized protaxpayer bill. ployee for improperly accessing taxpayer in- third parties, a conviction of federal officers For years the American people have formation in the IRS database. That person and employees for the unauthorized access or told us that our Tax Code needs re- had been indicted and convicted of several inspection of tax information would, in addi- form. Seventy-five percent of Ameri- counts of violating 18 USC §§ 1343 and 1346 tion to imprisonment and fine, continue to cans believe we need a fundamental (wire fraud) and 18 USC § 1030(a)(4) (computer result in dismissal from office or discharge fraud). In reversing the conviction, the court overhaul of our tax law. We in the from employment.) stated that ‘‘unauthorized browsing of tax- We would like to work with you and your Committee on Ways and Means are payer files, although certainly inappropriate staff to assure that improper access can be continuing a series of hearings today conduct, cannot, without more, sustain [a] dealt with appropriately. on doing just that. federal felony conviction [under 18 USC Sincerely, Incidents like those reported re- §§ 1343, 1346 and 1030(a)(4)].’’ MARGARET MILNER RICHARDSON. cently, IRS employees browsing This decision and a 1996 acquittal, by a through tax records of neighbors, rel- Memphis, Tennessee jury of another former DEPARTMENT OF THE TREASURY, atives, friends, and with friends like IRS employee who had been indicted for im- INTERNAL REVENUE SERVICE, proper access of taxpayer accounts under 26 that who needs enemies, IRS employ- Washington, DC October 20, 1993. USC § 7213 (Unlawful Disclosure of Tax Re- Memorandum for all employees. ees even browsing the records of celeb- turn Information), United States v. Patterson, From: Margaret Milner Richardson, Commis- rities like Tom Cruise, all this shows Cr. No. 96–20002 (W.D. Tenn. April 10, 1996), sioner, Internal Revenue Service. how badly reform is needed. are very troubling and make it more difficult Subject: Taxpayer privacy and security. With 108,000 IRS employees, twice as for the Service to appropriately discipline One of the most important issues facing many as DEA, CIA, and FBI combined, employees who violate our policy against un- the IRS today is the privacy and security of there is plenty of time, apparently, to authorized access. taxpayer account information. Many of the fool around. In only 2 years, over 1,500 In the past several years, the IRS has changes we are experiencing right now, as taken a number of steps to ensure that unau- well as the ones we hope to make, depend on cases of unauthorized browsing have thorized access of taxpayer information by our ability to protect private tax informa- occurred. Clearly, these IRS employees IRS employees does not occur. For example, tion. are doing the wrong things. Do these each time an employee logs onto the tax- In our daily work, we must continue to people have no sense of respect for the payer account database, a statement warns perform our duties in a manner that recog- privacy of the customers they serve? of possible prosecution for unauthorized use nizes and enhances individuals’ rights of pri- We and they work for the U.S. tax- of the system. All new users receive training vacy and ensures that our activities are con- payer, and now IRS employees are ar- on privacy and security of tax information sistent with laws, regulations, and good ad- rogantly snooping wherever they before they are entitled to access the Inte- ministrative practice. The Privacy Advo- grated Data Retrieval System (IDRS). The cate, recently established under the Chief In- choose. Service has also installed automated detec- formation Officer to oversee the privacy con- Let us pass this bill today. Then we tion programs that monitor employees’ ac- cerns of the IRS and American taxpayers, will be able to take appropriate action tions and accesses to taxpayers’ accounts, has developed a Privacy Policy Statement. I against those who violate our trust. identify patterns of use, and alert managers fully endorse the attached statement, which April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1465 gives a clear message about the importance observe privacy principles, to secure sen- tax data will not be compromised. The im- of protecting taxpayers and employees from sitive data, and to guard against improper plementation of the IRS Information Secu- unnecessary intrusion into their tax records. disclosures. Clearly, most Service employees rity policy is an important step in fulfilling Any access of taxpayer information with are conscientious and respect the taxpayer’s this pledge. no legitimate business reason to do so is un- right to expect that the information they Attachment. authorized and improper and will not be tol- provide will be safeguarded. However, any IRS INFORMATION SECURITY POLICY erated. I made a pledge to Congress and I one breach by any one of us seriously under- P1. It is the policy of the IRS to establish make it to you; taxpayer privacy and the se- mines public confidence and trust in the and enforce a comprehensive and appropriate curity of tax data will not be compromised. Service. security program that assures IRS informa- We will discipline those who abuse taxpayer Improper access to, or misuse of, taxpayer tion resources are protected commensurate trust up to and including removal or pros- information violates law, rule, and regula- with the risk and magnitude of the harm ecution. tion and is contrary to our ethical values that would result from the loss, misuse, or The fundamental basis of our tax system, and principles of public trust. In October unauthorized access to or modification of voluntary compliance, is directly affected by 1993, the Service issued a Privacy Policy such resources. the level of trust taxpayers have in our abil- Statement. The policy emphasizes com- P2. It is the policy of the IRS to collect, ity to protect their information. The vast prehensive privacy, security, and disclosure use, maintain, and disseminate only that in- majority of IRS employees are dedicated and requirements. It also represents an applica- formation required for a necessary and law- trustworthy. We must depend on each other’s tion of Service ethical values and principles ful purpose. integrity and commitment to this agency of public trust in our day-to-day operations. P3. It is the policy of the IRS to ensure and to keeping our tax system the best in This year, we began to strengthen our com- that its information collection, use, storage, the world. mitment to the protection of taxpayer pri- dissemination, and derivation processes Attachment. vacy through the Declaration of Privacy Principles and the issuance of the Guide for maintain the accuracy of the information TAXPAYER PRIVACY RIGHTS Penalty Determinations. Each of you re- relative to its intended use. The IRS is fully committed to protecting ceived a copy of these documents and we P4. It is the policy of the IRS to ensure the privacy rights of all taxpayers. Many of urge you to become familiar with their con- that all information and resources required these rights are stated in law. However, the tents. by an authorized individual to perform an as- Service recognizes that compliance with Our efforts to maintain taxpayer privacy signed function are complete and available legal requirements alone is not enough. The also includes continually improving Service when required. Service also recognizes its social responsibil- ability to identify any employee who fails to P5. It is the policy of the IRS to collect, ity which is implicit in the ethical relation- safeguard taxpayer information and, where use, maintain, and disseminate information ship between the Service and the taxpayer. appropriate, taking disciplinary action, up with appropriate timeliness to ensure suc- The components of this ethical relationship to and including removal. This effort is not cessful completion of IRS business functions. are honesty, integrity, fairness, and respect. intended to impose an additional burden on P6. It is the policy of the IRS to limit ac- Among the most basic of a taxpayer’s pri- conscientious employees in their use of tax cess to IRS information and resources to au- vacy rights is an expectation that the Serv- systems. It is, however, intended as a con- thorized individuals who have a right to the ice will keep personal and financial informa- certed effort to maintain a work environ- information or resource or a demonstrable tion confidential. Taxpayers also have the ment that reflects the highest standard for need for the information or resource to per- right to expect that the Service will collect, the protection of sensitive taxpayer informa- form official duties. maintain, use, and disseminate personally tion. P7. It is the policy of the IRS to disclose identifiable information and data only as au- Privacy, security and disclosure issues will information to organizations or individuals thorized by law and as necessary to carry our continue to be a major consideration and top outside of the IRS only when such disclosure agency responsibilities. priority for you as our Compliance 2000 and is consistent with public law and other gov- The Service will safeguard the integrity Tax Systems Modernization efforts lead to erning regulations. and availability of taxpayers’ personal and the identification of innovative approaches P8. It is the policy of the IRS to ensure financial data and maintain fair information to the protection of taxpayer privacy. Each that only functions required for a necessary and recordkeeping practices to ensure equi- of us must continually examine how we ac- and lawful purpose be performed on IRS in- table treatment of all taxpayers. IRS em- complish our duties and be ever vigilant in formation or resources. ployees will perform their duties in a manner safeguarding taxpayer privacy. P9. It is the policy of the IRS to prevent, that will recognize and enhance individuals’ or to detect and counter, fraud. rights of privacy and will ensure that their DEPARTMENT OF THE TREASURY, P10. It is the policy of the IRS to ensure activities are consistent with law, regula- INTERNAL REVENUE SERVICE, the continuity of operation of activities that tions, and good administrative practice. In Washington, DC, January 3, 1995. support official agency functions. our recordkeeping practices, the Service will Memorandum for all employees. P11. It is the policy of the IRS to establish respect the individual’s exercise of his/her From: Margaret Milner Richardson, Commis- and enforce security procedures for persons First Amendment rights in accordance with sioner of Internal Revenue. involved in the design, development, oper- law. Subject: IRS information security policy. ation, or maintenance activities that affect As an advocate for privacy rights, the Privacy, security and disclosure issues are the protection of IRS information and re- Service takes very seriously its social re- key elements for the success of our Compli- sources. sponsibility to taxpayers to limit and con- ance 2000 and Tax Systems Modernization ef- P12. It is the policy of the IRS to ensure trol information usage as well as to protect forts. The success of the Service in address- that its work force has the technical and ing privacy, security and disclosure issues public and official access. In light of this re- awareness training, appropriate to level of also has a critical impact on voluntary com- sponsibility, the Service is equally con- responsibility and authority, to implement pliance, the fundamental basis of our tax cerned with the ethical treatment of tax- and adhere to an IRS security program. system. Therefore, it is mandatory for each payers as well as their legal and administra- Mr. Speaker, I reserve the balance of tive rights. of us to secure sensitive data and guard Approved: Margaret M. Richardson, Com- against improper disclosures. my time. In October 1993, the Service issued a Pri- missioner. Mr. ARCHER. Mr. Speaker, I yield 2 vacy Policy Statement developed by the Pri- Date: October 15, 1993. minutes to the gentleman from Ari- vacy Advocate. A related document, the IRS zona, [Mr. HAYWORTH], another re- Information Security Policy, has been devel- DEPARTMENT OF THE TREASURY, oped by the System Architect’s Office under spected member of the Committee on INTERNAL REVENUE SERVICE, the direction of the Chief Information Offi- Ways and Means. Washington, DC, November 16, 1994. cer. The intent of this policy, which is at- Mr. HAYWORTH. Mr. Speaker, I Memorandum for all employees. tached, is threefold: thank the gentleman for yielding me From: Margaret Milner Richardson, Commis- Ensure that the Service complies with the sioner of Internal Revenue. this time. I apologize, but I was visit- applicable guidance from public laws, regula- ing with constituents from the great Robert M. Tobias, President, National Treas- tions, and directives. ury Employees Union. Ensure that taxpayer and other sensitive State of Arizona, so I hope I can be for- Subject: Privacy and Security of Taxpayer information is protected commensurate with given my tardiness. Information. the risk and magnitude of the harm that Mr. Speaker, I rise in strong support Safeguarding public confidence in the in- would result from inappropriate use. of this measure. Indeed, the only criti- tegrity and competence of the Service is a Ensure that taxpayer and other sensitive cism I would have would be with its top priority for all employees. Each of us information is used only for necessary and name, Taxpayer Browsing, because I must take seriously any perceived or real lawful purposes. believe that is far too mild a term for breach in public confidence and trust in our I fully endorse the attached policy state- ability to administer tax laws. The availabil- ments. what has transpired. ity of taxpayer information, or any other I made a pledge to Congress and I make it As Americans, if we truly champion protected data, dictates a responsibility to to you: taxpayer privacy and the security of the notion of privacy, then we should H1466 CONGRESSIONAL RECORD — HOUSE April 15, 1997 react as we are reacting today, in a bi- subject to significant criminal sanc- and looking at private tax information partisan fashion, to put an end to this tions and dismissal from IRS employ- purely out of curiosity or, in some obscenity, this voyeurism in the vault ment. Criminal sanctions would apply cases, potentially in order to blackmail that allows bureaucrats to take a look to IRS employees, IRS contractors, and people. at the most sensitive financial infor- other Federal and State employees This step of beginning to curb IRS mation supplied by any citizen. having access to Federal tax informa- abuses is only the first step in what I What we will do today, Mr. Speaker, tion. Tax information on paper and in think will be a real landmark Congress is to rise collectively, as a body, to end computer data bases would be pro- in bringing the Internal Revenue Serv- this obscenity, for it is totally at odds tected from browsing. ice under control. The fact is, with with our notion of a right to privacy. It Some of the browsing which has oc- 110,000 employees, the Internal Reve- is totally at odds with the notion of curred at the IRS entailed the unau- nue Service is too big, too complex, fairness and, indeed, I champion the thorized viewing of celebrities’ tax re- and too arrogant. fact that this legislation now pre- turns. We need to send a strong mes- For the average citizen, let me just scribes exact penalties so that those sage to IRS employees that they say 110,000 IRS employees compares voyeurs of people’s records will be pun- should respect the rights of all citizens with 5,500 working for the Border Pa- ished when they are caught and that and taxpayers. IRS employees should trol or 7,400 working for the Drug En- taxpayers, whose records have been not act on impulses based upon curios- forcement Administration. So there violated, will be notified of such viola- ity. It may be tempting to look at the are almost 10 IRS agents for every per- tion. tax files of such famous individuals as son protecting us from drugs and ille- gal immigration. I think that is clearly b 1245 Lucille Ball, but everyone should have their expectation of privacy met. too many. One of our goals is to change Mr. Speaker, the late Supreme Court This legislation will provide a deter- the IRS as we know it, to shrink it, to Justice Potter Stewart when talking rent against IRS employees taking a go through tax simplification, to make about obscenity said, ‘‘I can’t define it. quick look at tax returns for purposes sure that we have a much simpler and I know what it is when I see it.’’ not related to work. I commend the much fairer tax system. Mr. Speaker, what has occurred in IRS for identifying this problem and The need for a simpler tax system the past has been an obscenity the taking corrective action immediately. was made clear when the IRS spent $4 American people can do without. Pun- Commissioner Richardson also should billion, not million, $4 billion trying to ishment will be swift and sure. This is be noted for her work on this legisla- build a computer that could under- a positive action we take together on a tion, and today we will pass it in a bi- stand the Tax Code. The fact is that bipartisan basis to say let us rein in partisan manner. This legislation is that computer could not understand those who would abuse our rights to something positive that we can do for the Tax Code because the Code is prob- privacy. all taxpayers. We can ensure their ably incomprehensible. Every year re- Mr. COYNE. Mr. Speaker, I yield basic right to privacy. porters call five or six different IRS of- such time as he may consume to the While I urge an affirmative vote on fices and get five or six different an- distinguished gentleman from Massa- the Taxpayer Browsing Protection Act, swers, because it is impossible for any chusetts [Mr. NEAL]. I also would point out to my colleagues human to fully understand the com- Mr. NEAL of Massachusetts. I thank in this institution and to members of plexity. the gentleman from Pittsburgh for the media as well that one of the most I want to commend the gentleman yielding me this time and for his good fundamental rights in this society is from Texas [Mr. ARCHER], the chair- work. the basic notion of privacy. It is also man, for a joint editorial that he and Mr. Speaker, today is a day that we the cornerstone of liberty. the gentleman from Texas [Mr. all dread, and we know that it comes Mr. COYNE. Mr. Speaker, I have no ARMEY], the majority leader, had in every year. As the old expression goes, further requests for time, and I yield this morning’s Washington Times ‘‘You can be certain about death and back the balance of my time. where they both begin to outline the taxes.’’ But there is another thing that Mr. ARCHER. Mr. Speaker, I yield case for dramatic, bold tax simplifica- you should be certain about, and that the balance of my time to the gen- tion. They happen to go at it in slight- is your privacy. tleman from Georgia [Mr. GINGRICH], ly different ways. The gentleman from As technology continues to advance the respected Speaker of the House of Texas [Mr. ARCHER], the chairman, and more of us surf the net, privacy be- Representatives. would replace the entire income tax comes more difficult to protect. Infor- Mr. GINGRICH. I thank my friend, with a sales tax. The gentleman from mation that individuals report on their the chairman, for yielding me this Texas [Mr. ARMEY] would have a very tax returns should be kept confiden- time. flat income tax that one could fill out tial. Individuals have every right to ex- Mr. Speaker, let me say first of all I on a single page. But both of them have pect that this information will remain want to commend both sides of the the right direction. confidential and that liberty should Committee on Ways and Means, both The debate over the next 2 or 3 years not be violated. the Republicans and the Democrats, for between a flat tax or replacing the in- Senator GLENN has worked diligently bringing this timely bill out in a very come tax with a sales tax will be one of to correct browsing at the Internal responsive way. the most important debates in Amer- Revenue Service. Browsing is unau- We were surprised, I think, all of us, ican history, and one of the con- thorized opportunities to peek at tax to discover how frequently Internal sequences of that debate will be the returns. In 1993, the IRS commissioner Revenue Service agents look at, I adoption of a system which is dramati- established a zero tolerance for such would use the word ‘‘snoop’’ rather cally simpler, with a much smaller conduct. than ‘‘browse,’’ the private files of indi- IRS, with much less impact on your The IRS is working toward fair and vidual citizens. There were apparently lives. private tax administration, and this is in the last year over 800 cases of dif- Let me give a couple of examples of but another example. Commissioner ferent employees illegally looking at how complicated this gets and how bad Richardson has requested this legisla- tax returns without authorization. the need is, how desperate the need is, tion today, and we hope that it will Ninety of them were fired. The rest for change. Let me start with, one of eliminate browsing. I have been a co- were either reprimanded or received a my staff brought in his daughter’s pa- sponsor of this legislation, and I cer- slap on the wrist, yet supposedly the perwork. She has a small amount of tainly believe that the IRS is correct Internal Revenue Service has a zero money she has been saving. Her par- in attempting to implement a zero tol- tolerance policy for these abuses. ents and grandparents have tried to erance policy. I commend the Committee on Ways help her save money for college. She is The purpose of this legislation is to and Means on this bipartisan effort to 10 years old. They put it in a little fund clarify in the Tax Code criminal sanc- change the law to make clear that the for her. tions for the unauthorized inspection Congress will not accept Internal Reve- Last year, the stock market went up of tax information. Violators would be nue agents stepping over their bounds too much. She had not paid quarterly, April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1467 so at 10 years of age she found she had answer one out of every five times. The Taxpayers are entitled to privacy of their a $6 penalty. It took nine pages of tax IRS workers answered only 78 percent records and we must assure that the informa- forms to get to that point. of our questions accurately, got 12 per- tion they provide the IRS will be protected. I note from some material that the cent wrong, and promised to call back Protection of privacy rights of taxpayers is crit- gentleman from Ohio [Mr. BOEHNER], with the correct answer but then failed ical for a voluntary tax system. chairman of the House Republican Con- to do so 10 percent of the time. IRS employees also deserve to have their ference, has shared that in 1992 the In- These are the IRS folks who, instead ranks purged of those whose unlawful acts ternal Revenue Service seized $26 from of learning the Tax Code and helping bring shame on Federal workers. the bank account of a 6 year old to help the citizen, have been snooping into As a cosponsor of H.R. 1226, I am pleased pay her parents’ overdue tax bill. Now the privacy files of citizens without to see that the House is responding to the ad- surely at 6 years of age one hardly right. ministration's request for action on this legisla- needs to encounter the IRS. This bill is a first step toward chang- tion. We had in my own district a couple ing the IRS as we know it. It sets the The SPEAKER pro tempore (Mr. that had taken over a small firm. This right standard. I commend again both GOODLATTE). The question is on the was a little company called Pro Tackle the Democrats and the Republicans on motion offered by the gentleman from in Duluth, GA. When they took over the committee. This is the perfect day Texas [Mr. ARCHER] that the House sus- the firm, they found out that the to be offering this bill. I just want to pend the rules and pass the bill, H.R. former chief executive at a previous take one final moment to encourage 1226, as amended. time under the previous corporation the chairman, who I know hardly needs The question was taken. had embezzled the excise tax funds. encouragement, but what he is doing in Mr. ARCHER. Mr. Speaker, on that I The IRS pursued the new couple and launching this dialog on whether we demand the yeas and nays. the new firm and basically put them should replace the income tax with a The yeas and nays were ordered. out of business through a mistake. sales tax or go to a flat tax, what he The SPEAKER pro tempore. Pursu- They did not understand that the legal- and Majority Leader ARMEY are doing ant to clause 5 of rule I and the Chair’s ities had changed, that in fact they did is truly historic, and I want to take prior announcement, further proceed- not owe the money, and between the this moment on April 15 to thank him ings on this motion will be postponed. cost of the attorney and the cost of for the leadership he is offering and f fines and penalties, Mr. Mitchell, my urge everyone to vote yes on this bill. constituent, was forced out of the bait Mr. KLECZKA. Mr. Speaker, I rise today in SENSE OF HOUSE ON FAMILY TAX and tackle business. Finally, years support of a bipartisan bill to protect tax- RELIEF later, the IRS came back and said they payers, H.R. 1226, the Taxpayer Browsing Mr. ARCHER. Mr. Speaker, I move to goofed. Protection Act. suspend the rules and agree to the reso- Similarly, there are other examples, In February of this year, the First Circuit lution (H. Res. 109) expressing the sense and some of these, frankly, are almost Court of Appeals overturned the conviction of of the House of Representatives that impossible to believe, but let me give Richard W. Czubinski, a former Internal Reve- American families deserve tax relief. some examples. The Heritage Founda- nue Service employee who had snooped The Clerk read as follows: tion issued a report that a day care through the tax records of several taxpayers. H. RES. 109 center which allegedly owed the IRS The court claimed that although there was a Whereas American families currently pay $14,000 was raided by armed agents who law against unauthorized disclosure of con- too much of their hard-earned money in then refused to release the children fidential tax information, there was no law taxes; until parents pledged to give the Gov- against unauthorized browsing of those private Whereas every American will work for at ernment money. tax records. least 120 days in 1997 to pay his or her share One taxpayer in 1993, this again is The public correctly expects that their tax of taxes; from the Heritage Foundation, was Whereas Americans should be allowed to records will only be inspected by those author- keep more of their money to invest in their fined $46,806 for an alleged underpay- ized to do so for legitimate purposes: Brows- childrens’ futures, purchase homes, or start ment of 10 cents. Another taxpayer was ing is unacceptable, and it must stop. businesses; and fined $10,000 for using a 12-pitch type- This bill will prohibit unauthorized review or Whereas the American family will be writer, that is a kind of type, to fill out browsing of Federal tax information which the strengthened by providing tax relief: Now, his tax form instead of a 10-pitch type- IRS possesses. It will improve current law by therefore, be it writer. Again, that is from the Herit- putting criminal sanctions in the Tax Code and Resolved, That the House of Representa- age Foundation. by protecting tax information in both electronic tives urges that the Congress and the Presi- Going through case after case, one dent work together to enact permanent tax and paper forms. Those who break the law relief for our Nation’s families. discovers that the IRS is out of touch, would be dismissed by the IRS, could be sen- it is arrogant, it does not understand tenced up to a year in jail, and additionally The SPEAKER pro tempore. Pursu- the average American, and I am not could be forced to pay up to $100,000 in fines. ant to the rule, the gentleman from quite sure how they train their new Also upon the filing of a criminal action against Texas [Mr. ARCHER] and the gentleman employees, but again and again they a browser, the IRS would notify affected tax- from California [Mr. MATSUI] each will seem to have difficulties. payers who could then sue the violator for civil control 20 minutes. Money magazine sent reporters pos- damages. The Chair recognizes the gentleman ing as ordinary citizens to 10 different Mr. Speaker, taxpayers expect and deserve from Texas [Mr. ARCHER]. IRS district offices around the country that the Federal Government will protect the GENERAL LEAVE and had them call the IRS help line privacy of their personal financial information. Mr. ARCHER. Mr. Speaker, I ask and ask 10 common questions. This is As an original cosponsor of this measure, I unanimous consent that all Members according to Money magazine. Quote: urge Members to join me in voting ``yes'' today may have 5 legislative days in which to It took an extraordinary effort to get a on H.R. 1226, the Taxpayer Browsing Protec- revise and extend their remarks and in- staffer on the line. A full 30 percent of tion Act. clude extraneous matter on House Res- the time, no one who could answer Mr. STARK. Mr. Speaker, I rise in support of olution 109. questions picked up the phone. Most of H.R. 1226, the Taxpayer Browsing Protection The SPEAKER pro tempore. Is there the time, we either got busy signals or Act. objection to the request of the gen- recorded messages or were discon- This bill bolsters the administration's posi- tleman from Texas? nected. Furthermore, well over half the tion of zero tolerance for unauthorized brows- There was no objection. callers who got through, 60 percent, ing of taxpayer information. Current law fo- Mr. ARCHER. Mr. Speaker, I ask waited 5 minutes or more, including cuses more on unauthorized disclosure of tax- unanimous consent to yield the bal- one in four who had to hold for more payer information. This bill addressesÐand ance of my time to be managed by the than 20 minutes. makes a crimeÐIRS employees looking at a gentleman from Pennsylvania [Mr. Money magazine went on to say, and taxpayers records when they have no justifi- PITTS] and I further ask unanimous I quote, and when we finally got able reason to do so, even if no disclosure of consent that he be able to further yield through, we did not receive the right the information to others takes place. blocks of time. H1468 CONGRESSIONAL RECORD — HOUSE April 15, 1997 The SPEAKER pro tempore. Is there lution 109 is the starting point. It will that, but I just wanted to take the last objection to the request of the gen- begin the much needed bipartisan dis- 10 years, since Democrats have been in tleman from Texas? cussion on not if, but how to provide control for 7 of those years, and Repub- There was no objection. tax breaks for the American family. licans in control 3 of those years. But Mr. PITTS. Mr. Speaker, I yield my- Surely everyone in this room must in the last 10 years the Committee on self such time as I may consume. agree that the American family needs the Budget has had a budget resolution (Mr. PITTS asked and was given per- permanent tax relief, not just tem- out. This is the first time not only we mission to revise and extend his re- porary relief. House Resolution 109 do not have a bill on the floor, on the marks.) places us on this common ground. floor of the Senate, on the floor of the Mr. PITTS. Mr. Speaker, I rise today Let us start asking the tough ques- House, but the committees of the in strong support of House Resolution tion of how we get America’s families a House and Senate have not come up 109, a resolution calling upon the Con- tax break. I support a repeal of the with a budget resolution. gress and the President to work to- Federal estate tax, a $500 per child tax The reason that is important, the gether to give American families credit, capital gains tax relief, but reason that is important is because for much-needed tax relief. there are other methods of providing the gentleman’s wish, the maker of As all Americans are painfully aware, American families the relief they de- this resolution, those that will support today is the dreaded tax day. As I serve, and we should start that dialog. it, for our wish to come true; that is for speak, families across America are I urge every Member of this House to tax relief for the average American rushing to deliver their latest payment deliver good news to American families family, one has to have a budget reso- to Uncle Sam. Americans will work living in their districts, that they will lution because we all agree, we have all into the month of May just to pay fight for permanent tax relief in the agreed that by the year 2002 we want a these taxes. Post offices will stay open coming months. I urge passage of balanced Federal budget. That is not a late tonight to accommodate millions House Resolution 109. goal, that is a demand by both the of hard-working Americans, Americans Mr. Speaker, I reserve the balance of House, the Senate, and the President. who need all the time they can get to my time. We want a balanced Federal budget. understand the complicated and cum- Mr. MATSUI. Mr. Speaker, I yield But in order to do that, one has to bersome IRS Code. myself such time as I may consume. get the revenues of the Government, Mr. Speaker, there is no one that b 1300 the expenditures of the Government could really oppose this resolution, and and has to factor in our tax laws. And Whether a person fills out the EZ, I thank the gentleman on tax day for in order to come up with the tax provi- the EITC, or the capital gains tax re- bringing it up. Resolution 109 is one in sions we have to figure out how we are turn or any of the other of 480 different which bipartisan support will occur. going to balance the Federal budget. forms that we have in this country, the Basically it says expressing the sense And so this resolution is great, it is struggle to pay taxes is a burden on ev- of the House of Representatives that wonderful, but the fact of the matter is eryone. The paperwork required by the the American family deserves tax re- it is like taking a gun and shooting IRS is staggering. In fact, the IRS lief, the American family currently blanks; and the gentleman talked sends out enough paper every year to pays too much of their hard-earned about, well, let us start the debate as circle the Earth 28 times. Many folks taxes whereas every American works to how we are going to get tax relief. labor just to figure out how they are 120 days, in 1997, to pay for his or her We have been debating this for quite going to come up with the money they share of taxes. We need to keep more some time. Why do we not just now need to pay off the Federal Govern- money to invest in our children’s fu- have the Committee on the Budget of ment for 1 more year. ture, purchase homes, or start a busi- the House and the Senate come up with Mr. Speaker, American families are ness. Now we are asking for tax relief a resolution, bring it to the floor of the simply paying too much to the Federal that the President and Congress House so we can vote on it because Government; 45 years ago families paid worked together on. that determines the priorities, that de- only 5 percent of their income in Fed- I might just also point out, however, termines the priorities of each and eral taxes. Not anymore. In 1990 the in this discussion that April 15 is an- every Member of this institution and Federal tax burdens averaged about 24 other day. Not only do over 100 million each and every Member of the other percent. When combined with other Americans pay their taxes by filing body. taxes today, families lose nearly 40 per- their tax returns, but also this Con- Let me conclude by making one fur- cent of their income to the Govern- gress, this institution, has a respon- ther observation. The gentleman said ment. sibility as well, one that I think we he wanted tax relief for middle-income As this chart shows, American fami- will not talk too much about today; families; that is a child credit. The lies pay more into Government coffers maybe on the floor of the House in this gentleman says that he wants to elimi- then they spend on their family’s food, moment may be the only time we talk nate the estate taxes. And the gen- clothing, transportation, and housing about it, but on April 15, according to tleman says he wants capital gains re- combined. As we can see, the total tax the law, this is a law that was passed lief. I am assuming that means elimi- load for the average American family on July 12 signed by the President, nating the capital gains tax. is $21,883 compared to a total of $19,605 President Nixon incidentally, on July I add that all up, tax relief for chil- for basic necessities and $8,600 for hous- 12, 1974. It says on or before April 15 of dren, if we want to do a $300 per child ing, $5,200 for food, $3,600 for transpor- each year the Committee on the Budg- credit or $500 per child credit. The esti- tation, $2,100 for clothing. et of each House; that is the House and mate is that a revenue loss will occur On this difficult day they can tell the Senate, shall report to the House of $109 billion over the next 6 years. If what permanent tax relief would pro- the first concurrent resolution on the we want to eliminate the estate and vide. It would provide them with addi- budget. It should do a comparison of gift tax, that is a loss of $136 billion tional money to spend on their kids’ revenues and expenditures and a com- over 6 years, and if we eliminate the education, it could go into an account parison of the appropriate levels of the capital gains tax, that is a loss of $334 for a child’s college tuition, it could be total budget outlays and total new billion over 6 years; and that means es- invested for a family’s future, and it budget authority. And so essentially sentially those three tax credits or tax could be used to buy a home or start a what this law says; this is the law of deductions that the gentleman favors small family business. In fact the the land, that on the 15th of April we will result in a loss of $569 billion over American family’s ability to use their have a budget resolution. the next 6 years. own money wisely is limited only by Now we do not have a budget resolu- Now what we really should be talking the government’s confiscation of it. tion. In fact this is the first time in 10 about, we should show the courage, We must begin today to take steps years, in 10 years, that we have not how are we going to come up with that this session toward letting the Amer- even had the Committee on the Budget kind of tax relief? Are we going to cut ican creativity thrive by letting Amer- come out with a budget resolution. I Social Security, are we going to cut icans keep what they earn. House Reso- think it even goes further back than Medicare, are we going to significantly April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1469 reduce the CPI; that is, almost elimi- Meanwhile, the average American Mr. Speaker, the gentleman on the nate the cost-of-living adjustment? will spend more time working to pay other side has stated that this is about These are the issues we should be dis- taxes than working to pay for housing, tax relief for corporations. This resolu- cussing. That is what we are being paid food, and clothing combined. Congress tion is about American families, not here for. That is what the American must pass tax relief so Americans are corporations. We could not do anything public sent us last November to make a able to keep more of what they earn really more worthy on the day that we decision on, not really to pass resolu- and simplify the tax code to ensure pay taxes in the people’s House than to tions that no one opposes. fairness. discuss tax relief for American fami- The real debate in America should be Mr. MATSUI. Mr. Speaker, I yield lies. about priorities. It should be about such time as the he may consume to Mr. Speaker, I yield 4 minutes to the what we stand for, what our values are, the gentleman from California [Mr. gentleman from Missouri [Mr. what we want to do with our country STARK]. HULSHOF]. in the next 10, 20 years. And tax relief Mr. STARK. Mr. Speaker, it would be Mr. HULSHOF. Mr. Speaker, for should be a component of it, but also difficult today to suggest that Amer- most Americans, the point of least fa- taking care of our children, taking care ican families in general do not deserve vorable contact between them and of educational needs, certainly taking tax relief, and those who pay taxes, Washington occurs today, in fact to- care of senior citizens; that should all mostly the middle and lower income night, and probably up until the mid- be part of the component, and the only working people, certainly feel that it is night deadline when Americans will be way to do that is by having a budget. a burden and they are going to feel it delivering their tax returns to the local I would just like to see my colleagues as they run around trying to find the Post Office. It is during this period of find a way to have a budget resolution money today to pay their taxes. time that Americans are painfully re- brought to the floor this week, if not It is a fact that our taxes are lower, minded that they work too hard for this week next week, but I bet any- our Federal income tax, than any other Washington to take so much of their thing we will not have a budget resolu- developed nation in the world. It is also money away. tion to the floor of the House even in a fact that it is probably more unfairly The struggle to not only pay, but to the month, the entire month, of April; distributed, with the very wealthy in file our taxes is a burden, and not only and the reason for it is because many this country paying nowhere near their are our taxes too high, but our tax sys- Members do not want to make the fair share of the burden of supporting tem is too complex. tough decisions, the tough decisions on this country, which goes, interestingly I am happy to serve with the two dis- how to apportion tax relief and spend- enough, disproportionately to benefit tinguished gentlemen from California ing provisions and spending cuts. the rich, who pay the least. on the Committee on Ways and Means. These are the decisions we should be Now, if in fact there is some relief, I am one of the few on the tax-writing making. We are not being paid to pass perhaps what it ought to be is relief committee that actually muddles resolutions that have no meaning. We from the unfair structure which has al- through my tax forms every year with- are being paid to make the tough deci- lowed corporations to escape paying out the benefit or assistance of ac- sions of America. much, if any, tax, which has allowed countants and tax lawyers. We have to Mr. Speaker, I reserve the balance of the very rich in this country to escape do better than the current bureau- my time. from paying much, if any, tax, and the cratic nightmare of 480 IRS tax forms Mr. PITTS. Mr. Speaker, I yield 30 taxes go into a system which now and 17,000 pages of IRS laws and regula- seconds to myself. leaves us with 10 million uninsured tions. Mr. Speaker, my friend on the other children, 43 million uninsured Ameri- Mr. Speaker, I have a copy of the side of the aisle has the gall to criticize cans without health care insurance. Gettysburg Address, 267 words in this Republicans for not having a balanced We are the only developed nation in document. The Declaration of Inde- budget yet. I would like to ask them the world that treats our people in the pendence talked about the principle of where is their balanced budget. health care system so poorly. Yet we no taxation without representation, have a low tax system, and it is dis- The President knows how difficult it 1,322 words in this document. And then proportionately the low-income people is to produce a balanced budget. In fact we come, Mr. Speaker, to our Tax who are uninsured and whose children he could not do it. There are no tough Code. Nearly 1 million words in this are uninsured. So relief is in the eye of decisions in President Clinton’s pro- Tax Code, not counting the forms that the beholder. posal, and in fact he inflates the debt tell us how to deal with this very com- by $1.2 trillion by 2002. His spending While I think we will all be voting ‘‘yes’’ to provide tax relief to the plex code. cuts would not occur until he leaves of- Although it is difficult to believe, I Americans, I think the Americans fice, his tax cuts are temporary. The think the gentleman from Pennsylva- watching our actions will have dif- Republican Congress has been trying to nia [Mr. PITTS] pointed out very accu- ferent reactions. Those who do not pay negotiate a real balanced budget, and rately that a recent study shows that any tax and are very rich would like we will do that. relief from the fear that we might the average American family does pay Mr. Speaker, I yield 1 minute to the make them do the right thing. Those more on taxes than they spend on food, gentleman from Utah [Mr. COOK]. who are very poor and do not have clothing, and shelter combined. Mr. COOK. Mr. Speaker, I rise in When we turn on a light, we pay a health insurance for their children or strong support of House Resolution 109 tax. If we pursue the American dream do not have a decent place to live or do sponsored by my friend and colleague and we are able to own a home, we pay not have the prospect of being able to from Pennsylvania. Although Ameri- property tax. When we drive our child send their children to college might cans feel the sting of their tax burden hope that we will do the right thing to school, we pay a gas tax. When we each and every day, today, April 15, tax and let the tax code be a vehicle for buy groceries at the market, we pay a day, we realize just how much the Gov- sharing some of the largesse in this Na- sales tax. Perhaps the cruelest tax of ernment takes from our hard-earned tion. all is that when we die and pass on our paychecks. So as we think about tax day, I hope legacy to descendents, our family pays As a taxpayer, I understand the frus- we will think about the fairness of the a death tax, and that of course not tration with Government taking so code, how it could strengthen our coun- counting the payroll tax and income much of our hard-earned money. How- try by allowing everyone in this coun- taxes that we are saddled with. ever, the real tragedy is how our com- try to share in its munificence and in- It used to be that the largest invest- plicated tax system is dragging down deed support tax relief, but define it a ment that most families made was in the American economy. bit more broadly and define it so that their home. Now it is paying the tax Our tax system punishes those who every American can participate and bill. Back in the 1950’s, taxes took just work, save and invest, yet benefits the enjoy the bounties of this country. a fraction of our family incomes. wealthy and special interests who have Today, almost half of what we earn the legal and lobbying power to manip- b 1315 goes to the Government in some form ulate the tax code for their own self-in- Mr. PITTS. Mr. Speaker, I yield my- or another, one-half. In too many fami- terest. self 15 seconds. lies, one parent is working to put food H1470 CONGRESSIONAL RECORD — HOUSE April 15, 1997 on the table, while the other is work- against it, because it is noncontrover- Mr. PITTS. Mr. Speaker, I yield 21⁄2 ing to pay for the Washington bureauc- sial, it is kind of harmless. minutes to the gentleman from New racy, and Mr. Speaker, I believe this Mr. Speaker, I reserve the balance of Jersey [Mr. PAPPAS]. has to stop. my time. Mr. PAPPAS. Mr. Speaker, I want to I believe we need to demand relief Mr. PITTS. Mr. Speaker, I yield my- thank my friend and colleague from from an unfair tax burden. That is why self such time as I may consume. Pennsylvania for the chance to speak I support my colleague from Penn- Mr. Speaker, again the minority sim- on this very timely resolution. sylvania, [Mr. PITTS], in supporting the ply does not understand the intent of It is important that today, a day in tax freedom resolution, which calls House Resolution 109. Since I have been which many Americans are rushing to upon this body and the President to a Member of the House of Representa- finish the complex and burdensome tax enact permanent tax relief for Amer- tives, the Democrats have not had an forms of the IRS, that we, the 105th ican families. opportunity to go on record officially Congress, reaffirm our commitment to Mr. Speaker, here in Washington in a vote and support tax relief. We provide the American people with tax many politicians forget that the taxes have had this debate going on for a relief. that we impose have to be paid by real couple of months. They have endorsed Is there a Member of Congress who people who struggle to pay their bills a budget that is out of balance, that can honestly say the people in his or and to make ends meet. My friend from has raised taxes, that would raise her district do not think that they pay California talks about the revenue loss. taxes, that would increase welfare enough in taxes? I know that the peo- Well, Washington’s loss is American spending. ple of central New Jersey tell me every families’ gain. It is my goal to end this Mr. Speaker, this resolution speaks week when I am home that they pay tax trap. It is my goal to help Ameri- in a clear, unequivocal voice: We will too much in taxes. cans earn more of their money and have tax relief this year. It will be per- Week in and week out, Members of keep more of what they earn so they manent, not temporary. It will be part this body introduce legislation that is can do more for themselves, for their of our budget. It will be for the Amer- aimed at improving the quality of life for the American people, but what families and for their communities. ican family. Mr. MATSUI. Mr. Speaker, I yield Mr. Speaker, I yield 2 minutes to the could be more basic than tax relief? After all, it is not our money, it is myself such time as I may consume. gentleman from Mississippi [Mr. PICK- their money. It is money that they Mr. Speaker, the gentleman from ERING]. Missouri has the copy of the code Mr. PICKERING. Mr. Speaker, today, could use to put toward their children’s there, and I will not ask, because I do I rise in support of this resolution for education, to buy dinner for their fam- not want to get involved in a rhetorical my family, which for most of my life ily, to buy a new car, to take a vaca- debate, but I would only point out to operated a dairy farm. tion. We are constantly discussing is- him that this resolution does not There is a Greek proverb which has sues that are aimed at helping fami- change one word, it does not eliminate special meaning to me. It says, ‘‘Milk lies, but the single greatest thing that one page in that document. That is just the cow, but do not pull off the udder.’’ they could possibly do is to let them what we are trying to bring up today. On this day, April 15, which for most keep more of what is rightfully theirs. Families in America are struggling. We are not trying to say people are not people is the day of infamy, they feel Mothers and fathers are sometimes entitled to tax relief. they have been pulled and stretched for working two jobs just to pay their tax We are all going to be voting for the too long, way too long. bills. How can we expect American prior bill that is antibrowsing legisla- Let me give my colleagues two exam- families, parents to spend more time tion. I was the originator, along with ples in my district of individuals and together, more time with their kids to the gentlewoman from Connecticut families that are affected by the cur- monitor what they are watching on TV [Mrs. JOHNSON], last year on the Tax- rent tax burden. Chester Thigpen, 85 or looking at what they are viewing on payers’ Bill of Rights, which gave sig- years old. He has four children. On his the Internet when they must work nificant protections to taxpayers, and first day of labor, in 1918, he earned 35 harder and longer just to pay the Fed- cents. From that first day of work he we intend to do it again this year or eral Government. The time that is 1998. So we want to make substantive built up a tree farm, for which he is spent paying the tax bill and filling out changes and actually do some of the proud. He is the first African-American the tax forms is time that could be bet- things the gentleman suggested. How- to earn the honor of Mississippi and ter spent. ever, this resolution does not do any- the National Tree Farmer of the Year In our country, virtually everything thing to that big Tax Code there, nor Award. that we do, buy, produce, or interact does it reduce it one word nor one page. He wants to leave that legacy, that with is taxed. Today, the average I might just finally conclude by mak- farm, to his four children, but our Gov- American family pays 19 percent of its ing another observation. The reason I ernment wants to confiscate it. Now, is annual income in Federal taxes. It was raised those numbers, $579 billion, was that fair? Is that not double taxation just reported yesterday that Americans not to suggest that it should not go after a lifetime of earning and paying will work until May 9 of this year just back to the American public. It is just taxes? From his grave they will tax to pay their taxes, and if we look at that if we want to balance the budget, him. Is that not taxation without rep- this chart, it very graphically points we have to come up with other spend- resentation? We need to act now to out over 4 months of the year is spent ing cuts or revenue offsets in order to provide reform so that families can paying Uncle Sam. That means that make up the difference, and then we leave their legacy and their small people will spend more time on their have to ask ourselves, should it be So- farms and businesses to their children. taxes than they will for housing, food, cial Security? In other words, should Another example: Bobby and June and clothing combined. we cut Social Security from seniors? Pickle. They have two small children If we in this Congress on both sides of Should we cut Medicare from senior in Pearl, MS. After the birth of their the aisle are really committed to im- citizens? Shall we cut Medicaid again first child, June Pickle wanted to stay proving the quality of lives of the peo- and again and take money away from home with her children, but they soon ple in our country, then let us pass children? These are the issues we have discovered that the tax bill was too meaningful tax relief and demonstrate to discuss. high and that she must go back to that by supporting this resolution. The reason we raise these numbers is work. Does she have the freedom to Mr. MATSUI. Mr. Speaker, I yield not to create problems, but it is merely stay at home with her children? Is that myself such time as I may consume. to point out that we have to make the fair? I might just point out again, this res- tough decisions, and a paper like this Mr. Speaker, we must act now to give olution is one we should all support, does not do it. This is really a matter families a tax credit, $500 per child, since it is really harmless. But it basi- for a special order; it should not be that can give people and families back cally says that the House of Represent- part of a legislative process. I do not some of the freedom that they have atives should urge ourselves to work know why we even raise this issue lost and some of their hard-earned for permanent tax relief for the Amer- today. As I said, no one is going to vote wages. ican public. I have no objections to April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1471 urging ourselves to work for perma- So I just urge my colleagues to join Mr. Speaker, I rise in support of H.R. nent tax relief for the American public. with me and send the President a mes- 1001. It is the bill to extend the term of Mr. Speaker, I yield back the balance sage, the American family deserves a appointment of certain members of the of my time. tax break. Prospective Payment Assessment Com- Mr. PITTS. Mr. Speaker, I yield 3 Mr. PITTS. Mr. Speaker, I yield back mission and the Physician Payment minutes to the gentleman from Texas the balance of my time. Review Commission. This is a non- [Mr. DELAY], the distinguished major- The SPEAKER pro tempore. The controversial bill; nevertheless, it is a ity leader. question is on the motion offered by necessary one because it is needed to Mr. DELAY. Mr. Speaker, I rise in the gentleman from Texas [Mr. AR- ensure the continued operation of these support of this resolution that ex- CHER] that the House suspend the rules two commissions. presses the sense of Congress that and agree to the resolution, House Res- H.R. 1001 was introduced by myself American families deserve tax relief, olution 109. and the chairman of the Subcommittee and I think it is very important to The question was taken. on Health and the Environment of the have such a resolution as this on this Mr. PITTS. Mr. Speaker, on that I Committee on Commerce, the gen- particular day. demand the yeas and nays. tleman from Florida [Mr. BILIRAKIS]. I want to congratulate my colleague, The yeas and nays were ordered. The bill was reported by both the Ways the gentleman from Pennsylvania [Mr. The SPEAKER pro tempore. Pursu- and Means Health Subcommittee and PITTS], for his efforts in bringing this ant to clause 5 of rule I and the Chair’s the full Committee on Ways and Means resolution to the floor and highlighting prior announcement, further proceed- by a voice vote without amendment. an issue that is very near and dear to ings on this motion will be postponed. Under current law the appointment my heart. f of, we call it the PROPAC and b 1330 REMOVAL OF NAME AND ADDI- PHYSPRC, the Prospective Payment Assessment Commission and the Physi- And we are very fortunate to have a TION OF NAME OF MEMBER AS COSPONSOR OF H.R. 1200 cian Payment Review Commission, man like the gentleman from Penn- membership is made by the Director of sylvania, Mr. JOE PITTS, here in this Mr. MCDERMOTT. Mr. Speaker, I ask the Office of Technology Assessment. House coming from a long history in unanimous consent to remove the gen- However, because Congress has closed Pennsylvania of doing what is right for tleman from Oklahoma, Mr. J.C. the OTA, there is no one to make these working families in Pennsylvania. Now WATTS, as a cosponsor of H.R. 1200 and appointments. This bill would extend he is working on what to do right for to add the name of the gentleman from the members’ terms which expire this American families. North Carolina, Mr. MEL WATT, to the year. It will provide the committees of Today working families across this bill. I inadvertently got the wrong jurisdiction time to consider the future Nation are getting ready to pay their name. structure of the two commissions in taxes after spending hours upon hours The SPEAKER pro tempore. Is there order to develop legislation that would figuring out our complicated tax sys- objection to the request of the gen- first, reauthorize their activities, and tem. Many do this chore with the tleman from Washington? second, put in place a structure for de- knowledge that taxes are an inevitable There was no objection. termining a membership appointment. part of the process, like death. f Mr. Speaker, this measure received, While taxes may be a necessary evil, EXTENDING TERM OF APPOINT- as I said, the unanimous support of the the current tax system is a national MENT OF CERTAIN MEMBERS OF Subcommittee on Health and the Envi- disgrace. In fact, the Government PROSPECTIVE PAYMENT AS- ronment and the full committee. I urge takes more than 50 percent of the aver- SESSMENT COMMISSION AND my colleagues to join me in support of age working family’s paycheck through PHYSICIAN PAYMENT REVIEW this noncontroversial but much-needed costs of taxes and regulations. COMMISSION piece of legislation. That means that 50 cents out of every Mr. STARK. Mr. Speaker, I yield my- hard-earned dollar that the American Mr. THOMAS. Mr. Speaker, I move to self such time as I may consume. family makes today goes to the Gov- suspend the rules and pass the bill, Mr. Speaker, the gentleman from ernment. No wonder it takes one par- H.R. 1001, to extend the term of ap- California has described the bill well ent to work for the Government while pointment of certain members of the and accurately. There is no con- the other parent works for the family. Prospective Payment Assessment Com- troversy, or, that I know of, any oppo- It also means that a single parent mission and the Physician Payment sition to it. It is supported on our side. must work twice as hard to support the Review Commission. I urge its adoption. Government and his or her children. The Clerk read as follows: Mr. Speaker, I yield back the balance Now, when mothers and fathers work H.R. 1001 of my time. more to support their government than Be it enacted by the Senate and House of Rep- GENERAL LEAVE they do to support their children, I say resentatives of the United States of America in Mr. THOMAS. Mr. Speaker, I ask Congress assembled, that this system has gone awry. unanimous consent that all Members We want to change the system to SECTION 1. EXTENSION OF TERM OF APPOINT- MENT OF CERTAIN MEMBERS OF may have 5 legislative days within allow families to keep more of what THE PROSPECTIVE PAYMENT AS- which to revise and extend their re- they earn to support their children. SESSMENT COMMISSION AND THE marks and include extraneous material Now, some say that it takes a village PHYSICIAN PAYMENT REVIEW COM- on H.R. 1001. MISSION. to raise a child, while I say that it The SPEAKER pro tempore. Is there takes a village idiot to raise taxes on In the case of an individual who is ap- pointed as a member of the Prospective Pay- objection to the request of the gen- working families. ment Assessment Commission or of the Phy- tleman from California? Mr. Speaker, we need to cut taxes for sician Payment Review Commission and There was no objection. working families but we are running whose term of appointment would otherwise Mr. THOMAS. Mr. Speaker, I yield into opposition, and he resides at the expire during 1997, such terms of appoint- back the balance of my time. other end of Pennsylvania Avenue. ment is hereby extended to expire as of May The SPEAKER pro tempore. The President Clinton talks a good game 1, 1998. question is on the motion offered by but his actions prove that he is against The SPEAKER pro tempore. Pursu- the gentleman from California [Mr. family tax relief. ant to the rule, the gentleman from THOMAS] that the House suspend the Last year he introduced other legis- California [Mr. THOMAS] and the gen- rules and pass the bill, H.R. 1001. lation that would have given working tleman from California [Mr. STARK] The question was taken; and (two- families immediate tax relief; and this each will control 20 minutes. thirds having voted in favor thereof) year he wants to increase taxes, in- The Chair recognizes the gentleman the rules were suspended and the bill crease taxes by $80 billion to pay for from California [Mr. THOMAS]. was passed. more wasteful Washington spending. Mr. THOMAS. Mr. Speaker, I yield A motion to reconsider was laid on Are families not taxed enough already? myself such time as I may consume. the table. H1472 CONGRESSIONAL RECORD — HOUSE April 15, 1997 TECHNICAL CORRECTION RELAT- For that reason, I believe it is impor- Unfortunately, an error was made when that ING TO JURISDICTION FOR LAW- tant that we act expeditiously on this legislation was drafted. The legislation we con- SUITS AGAINST TERRORIST technical correction. The staff has con- sider here today does nothing more than cor- STATES sulted with both the Justice Depart- rect that error. Mr. HYDE. Mr. Speaker I move to ment and the State Department, and I As written, the law allows suit only if the suspend the rules and pass the bill understand they do not have any objec- claimant and the survivor are both American (H.R. 1225) to make a technical correc- tion to the correction. citizens. But if the victim of the terrorist act tion to title 28, United States Code, re- Mr. Speaker, I am pleased that the was not an American citizen, that victim's lating to jurisdiction for lawsuits distinguished ranking member, the American spouse cannot sue. This bill fixes against terrorist states. gentleman from Michigan [Mr. CON- the provision to allow suit if either the victim or The Clerk read as follows: YERS], the chairman of the subcommit- the claimant is an American citizen. H.R. 1225 tee, the gentleman from Florida [Mr. Because this correction will allow several Be it enacted by the Senate and House of Rep- MCCOLLUM], and the ranking member families to continue with their lawsuits against resentatives of the United States of America in of the subcommittee, the gentleman Libya over the bombing of Pan Am flight 103 Congress assembled, That, effective with re- from New York [Mr. SCHUMER], joined as well as apply to any future cases in which spect to any cause of action arising, before, me in cosponsoring this legislation. American families are victimized by state- on, or after the date of the enactment of this In addition, the other members of the sponsored terrorism, I urge my colleagues to Act, section 1605(a)(7)(B)(ii) of title 28, Unit- committee from Mr. Smith’s home support this legislation. ed States Code, is amended by striking ‘‘the Mr. HYDE. Mr. Speaker, I thank the claimant or victim was not’’ and inserting State, the gentlemen from Florida, Mr. ‘‘neither the claimant nor the victim was’’. CANADY and Mr. WEXLER, Mr. Smith’s gentlewoman from Texas. I have no further requests for time, and I yield The SPEAKER pro tempore. Pursu- own Congressman, Mr. MICA, and the back the balance of my time. ant to the rule, the gentleman from Il- gentleman from New York, Mr. MCNUL- TY, who also has an affected constitu- The SPEAKER pro tempore. The linois [Mr. HYDE] and the gentlewoman ent, have joined me in cosponsoring question is on the motion offered by from Texas [Ms. JACKSON-LEE] each this legislation. the gentleman from Illinois [Mr. HYDE] will control 20 minutes. that the House suspend the rules and The Chair recognizes the gentleman I want to thank Senator HATCH, Sen- pass the bill, H.R. 1225. from Illinois [Mr. HYDE]. ator LEAHY, Senator MACK, and Sen- ENNEDY The question was taken; and (two- GENERAL LEAVE ator K , who are working to get H.R. 1225 passed quickly by the Senate. thirds having voted in favor thereof) Mr. HYDE. Mr. Speaker, I ask unani- the rules were suspended and the bill mous consent that all Members may Mr. Speaker, I reserve the balance of my time. was passed. have 5 legislative days within which to A motion to reconsider was laid on revise and extend their remarks on the Ms. JACKSON-LEE of Texas. Mr. Speaker, I yield myself such time as I the table. bill under consideration. f The SPEAKER pro tempore. Is there may consume. objection to the request of the gen- Mr. Speaker, I am pleased to join the NOTICE OF WITHDRAWAL OF BEN- tleman from Illinois? chairman, the gentleman from Illinois EFITS ON ARGENTINIAN EX- There was no objection. [Mr. HYDE], in supporting this legisla- PORTS UNDER GENERALIZED Mr. HYDE. Mr. Speaker, I yield my- tion, H.R. 1225. In the antiterrorism SYSTEM OF PREFERENCES—MES- self such time as I may consume. bill passed into law last Congress, we SAGE FROM THE PRESIDENT OF Mr. Speaker, H.R. 1225 corrects a amended the Foreign Sovereign Immu- THE UNITED STATES (H. DOC. drafting error in the foreign sovereign nities Act to allow American citizens NO. 105–66) immunity provisions of last year’s to sue for money damages in American The Speaker pro tempore laid before antiterrorism bill. We enacted these courts for acts of terrorism that occur the House the following message from provisions to allow victims of state- abroad. the President of the United States; sponsored terrorism, like the Pan Unfortunately, an error was made which was read and, together with the American 103 tragedy, to sue the coun- when that legislation was drafted. The accompanying papers, without objec- tries who sponsored the terrorist act in legislation we consider here does noth- tion, referred to the Committee on American courts. ing more than correct that error. As Our intent was that families should written, the law allows suit only if the Ways and Means and ordered to be have the benefit of these provisions so claimant and the survivor are both printed. long as either the victim or the survi- American citizens. But if the victim of To the Congress of the United States: vor was an American citizen. Unfortu- the terrorist act was not an American The Generalized System of Pref- nately, and due to an inadvertent citizen, that victim’s American spouse erences (GSP) program offers duty-free error, the current language can be read cannot sue. treatment to specified products that to allow the benefit only to those fami- This bill fixes the provision to allow are imported from designated develop- lies in which both the victim and the suit if either the victim or the claim- ing countries. The program is author- survivor are American citizens. ant is an American citizen. Because ized by title V of the Trade Act of 1974, H.R. 1225 corrects this error and re- this correction will allow several fami- as amended. stores the law to our original intent, lies to continue their lawsuits against Pursuant to title V, I have deter- that the affected person should get all Libya over the bombing of Pan Am mined that Argentina fails to provide of the benefits of section 221 of last flight 103, as well as apply to any fu- adequate and effective means under its year’s antiterrorism bill, including the ture cases in which American families laws for foreign nationals to secure, to statute of limitations. are victimized by state-sponsored ter- exercise, and to enforce exclusive I understand this problem affects sev- rorism, it is our responsibility, Mr. rights in intellectual property. As a re- eral of the Pan American 103 families, Speaker, to protect Americans, and to sult, I have determined to withdraw including Mr. Bruce Smith, who has protect Americans against terrorism. I benefits for 50 percent (approximately been one of the leaders of those fami- think this correction goes one step fur- $260 million) of Argentina’s exports lies. Mr. Smith, who is an American ther to ensuring that Americans and under the GSP program. The products citizen, lost his wife, who was a British America and this Government stands subject to removal include chemicals, citizen, in the Pan American 103 trag- up against terrorism. I urge my col- certain metals and metal products, a edy. He now stands to lose his claim leagues to support this legislation. variety of manufactured products, and against Libya if this correction bill is Mr. Speaker, I am pleased to join Chairman several agricultural items (raw cane not passed. The case is currently before HYDE in supporting this legislation, H.R. 1225. sugar, garlic, fish, milk protein con- the Supreme Court on a petition for In the antiterrorism bill passed into law last centrates, and anchovies). certiorari. The Court may act on the Congress, we amended the Foreign Sovereign This notice is submitted in accord- petition as soon as this month. If that Immunities Act to allow American citizens to ance with the requirements of title V case is concluded before we act, those sue for money damages in American courts of the Trade Act of 1974. affected families may lose their claims. for acts of terrorism that occur abroad. WILLIAM J. CLINTON. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1473

THE WHITE HOUSE, April 11, 1997. GENERAL LEAVE 40 years or so, the size, scope, and tax f Ms. PRYCE of Ohio. Mr. Speaker, I burden imposed by the Federal Govern- ask unanimous consent that all Mem- ment has grown year in and year out. POSTPONING FURTHER CONSIDER- bers may have 5 legislative days in In 1980, the average tax burden was ATION OF HOUSE JOINT RESOLU- which to revise and extend their re- $2,286 per person. By 1995, that figure TION 62 UNTIL AFTER VOTES marks on this resolution. had more than doubled to $4,996. Fed- UNDER SUSPENSION OF THE The SPEAKER pro tempore. Is there eral, State, and local taxes take more RULES objection to the request of the gentle- than 38 cents out of every dollar the Ms. PRYCE of Ohio. Mr. Speaker, I woman from Ohio? American family earns, and that esti- ask unanimous consent that during There was no objection. mation is almost as high as 50 cents in consideration of House Joint Resolu- Ms. PRYCE of Ohio. Mr. Speaker, some quarters. tion 62, pursuant to House Resolution House Resolution 113 is a straight- The Federal tax burden alone is now 113, notwithstanding the order of the forward rule providing for consider- nearing a record one-fifth of family in- previous question, it may be in order at ation in the House of House Joint Res- come. American families deserve better any time for the Chair to postpone fur- olution 62, the tax limitation constitu- and they should be able to keep more ther consideration of the joint resolu- tional amendment. of their hard-earned money to spend on tion until a time designated by the The rule provides for 3 hours of de- things they need like food, clothing, Speaker after disposition of any mo- bate, equally divided between the shelter, perhaps a college education or tions to suspend the rules on which chairman and ranking minority mem- even sometimes a family vacation. proceedings were proposed earlier in ber of the Committee on the Judiciary. They do not need to send more of their the day. The amendment in the nature of a sub- tax dollars to Washington to be spent The SPEAKER pro tempore. Is there stitute recommended by the Commit- on a larger and larger Federal bureauc- objection to the request of the gentle- tee on the Judiciary, modified by the racy. woman from Ohio? amendment specified in the report, will Regrettably, the power to lay and There was no objection. be considered as the base text for the collect taxes, which was granted to f purpose of amendment. Congress by the Founding Fathers, has been terribly abused. As ratified, the b 1345 What that means is that the rule en- acts a very important amendment Constitution did not allow the direct PROVIDING FOR CONSIDERATION sponsored by the gentleman from Flor- taxation of the income of American OF HOUSE JOINT RESOLUTION 62, ida [Mr. MCCOLLUM], a senior member citizens. For three-quarters of our his- TAX LIMITATION CONSTITU- of the Committee on the Judiciary, tory, three-quarters of our history the TIONAL AMENDMENT which would simply ensure that the power of the U.S. Government to tax Ms. PRYCE of Ohio. Mr. Speaker, by tax limitation amendment would not was carefully constrained by explicit direction of the Committee on Rules, I have the unintended consequences of constitutional restraints. For many call up House Resolution 113 and ask making it harder to reduce taxes in the decades the Federal Government was for its immediate consolidation. future, a very important consideration able to function without a permanent The Clerk read the resolution, as fol- as we move toward the dynamic scor- income tax, and it was not until 1913 lows: ing of major tax relief and economic when the 16th amendment to the Con- H. RES. 113 growth legislation. stitution was ratified that Congress Resolved, That upon the adoption of this The rule also provides for the consid- was given specific authority to collect resolution it shall be in order to consider in eration of an amendment if offered by income taxes, and the Constitution’s the House the joint resolution (H.J. Res. 62) the minority leader or his designee. careful balance with respect to taxes proposing an amendment to the Constitution The amendment shall be considered as was swept away. of the United States with respect to tax limi- As recently as 1940, Federal taxes read and shall be debatable for 1 hour tations. An amendment in the nature of a were only 6.7 percent of the gross do- equally divided and controlled by a substitute consisting of the text rec- mestic product. Since the late 1960’s, proponent and an opponent. ommended by the Committee on the Judici- Federal taxes have approached 20 per- ary now printed in the joint resolution, Finally, the rule provides for one mo- cent of GDP. Under our current sys- modified by the amendment specified in the tion to recommit with or without in- tem, it is simply too easy to add to the report of the Committee on Rules accom- structions. So under the rule, Mr. already onerous tax burden that Con- panying this resolution, shall be considered Speaker, our friends in the minority gress has placed on the American peo- as adopted. The previous question shall be will have two different opportunities to considered as ordered on the joint resolution, ple. as amended, and on any further amendment amend the legislation in any way they Mr. Speaker, while many worthwhile thereto to final passage without intervening see fit, consistent with the normal arguments have been made against this motion except: (1) three hours of debate on rules of the House. constitutional amendment, the time the joint resolution, as amended, which shall Mr. Speaker, it is no coincidence that has now come when we must return be equally divided and controlled by the the House takes up the consideration some fiscal discipline to the Federal chairman and ranking minority member of of a constitutional tax limitation the Committee on the Judiciary; (2) one mo- Government where much of the dis- amendment today, April 15, as millions cipline imposed by the Founding Fa- tion to amend, if offered by the minority of taxpayers file their Federal income leader or his designee, which shall be consid- thers in the Constitution no longer ex- ered as read and shall be separately debat- taxes. This is the day in which millions ists. able for one hour equally divided and con- of hard-working Americans and their That is exactly what this legislation trolled by the proponent and an opponent; families are all too sharply reminded seeks to do, to make it more difficult and (3) one motion to recommit with or that high taxes have become a cruel for Congresses in the future to raise without instructions. and harsh fact of life in the United taxes. The amendment will force Con- The SPEAKER pro tempore [Mr. States of America. gress to focus on options other than GOODLATTE]. The gentlewoman from What many Americans are experienc- raising taxes as a means of balancing Ohio [Ms. PRYCE] is recognized for 1 ing today is middle class tax anxiety as the Federal budget. It does not mean, hour. they feel that they are working harder as some opponents have claimed, that Ms. PRYCE of Ohio. Mr. Speaker, for than ever but falling further behind. taxes cannot be raised at all some- the purpose of debate only, I yield the That is why so many constituents tell where down the road. It merely re- customary 30 minutes to the gen- me that they fear the next generation quires a broader political consensus to tleman from Massachusetts [Mr. MOAK- will not be as fortunate or as pros- achieve that goal. And the requirement LEY], distinguished ranking member of perous as their generation, and why can be waived temporarily, whenever a the Committee on Rules, pending they believe their children and grand- declaration of war is in effect or when which I yield myself such time as I children will be worse off financially the United States faces an imminent may consume. During consideration of than they are. serious threat to its national security. this resolution all time yielded is for It is no wonder that so many families While we try to make it harder to the purpose of debate only. feel this way. The truth is for the past raise taxes at the Federal level, several H1474 CONGRESSIONAL RECORD — HOUSE April 15, 1997 States have already taken a step to in- It should never be used as a political tax loopholes or to enact tax reform corporate this fiscal discipline in their tool, as I fear it is being used today. measures. own constitutions. For example, 14 Our Nation’s Founding Fathers care- So I urge my colleagues on both sides States already require a supermajority fully designed and drafted our Con- of the aisle to reject this closed rule to raise taxes in one form or another, stitution not to meet their own per- and this ill-advised constitutional including high-growth States like Cali- sonal and political agenda but to en- amendment. We do not need any gim- fornia and Florida. dure and meet the needs of this great micks to solve the financial concerns Mr. Speaker, the need for this Nation for centuries to come. of our Nation. If we really want to ad- amendment is clear. By raising the bar Mr. Speaker, I also find it ironic that dress the needs of this country, let us on tax increases, we put the focus my colleagues on the Republican side get to work on responsible legislation where it should be, on cutting spending of the aisle are contemplating imposi- that truly accomplishes something. first. Unlike the many special interests tion of a two-thirds supermajority re- Mr. Speaker, I would hope that they that benefit from Federal spending, the quirement in this proposed amend- would vote down this rule. American taxpayers do not have a paid ment. As we may recall, in the begin- Mr. Speaker, I reserve the balance of voice looking out for their interests ning of the 104th Congress, the Repub- my time. when appropriation season comes lican Party changed the House rules to b 1400 along. It is time for Congress to play require a three-fifths vote for any tax that role more effectively, and passing increases. Mr. Speaker, guess what Ms. PRYCE of Ohio. Mr. Speaker, I this tax limitation amendment will do happened? Whenever a bill containing a yield such time as he may consume to a lot to give the American people the tax increase came along, they conven- the gentleman from New York [Mr. voice they deserve in the fight to con- iently used the Committee on Rules to SOLOMON], the distinguished chairman trol spending and to protect family in- waive the three-fifths requirement. of the Committee on Rules. comes. They waived this rule for Contract Mr. SOLOMON. Mr. Speaker, ‘‘Well,’’ In closing, Mr. Speaker, I would urge With America, Tax Relief Act; they as Ronald Reagan used to say. my colleagues to support both the rule waived the rule with Medicare Preser- Mr. Speaker, I rise in strongest sup- and the underlying legislation. This is vation Act. They waived the rule on port for this excellent piece of legisla- a balanced rule that will enable the Budget Reconciliation Act. They tion. I really hate to stand up here and House to have a full and fair discussion waived the rule on Health Insurance criticize the previous speaker because of the merits of this constitutional Reform Act; and finally, the welfare re- he is my counterpart. He is the ranking amendment, and I recommend its swift form conference report. member of the Committee on Rules, adoption. Mr. Speaker, they had so many and he sits over there looking like a Mr. Speaker, I reserve the balance of waives we got seasick up there in the cross between Sean Connery and Santa my time. Committee on Rules. Claus, both of whom I deeply admire, Mr. MOAKLEY. Mr. Speaker, I yield In short, Mr. Speaker, during the last as I do him. myself such time as I may consume, Congress, they waived that provision I really am just hesitant to stand up and I thank my distinguished colleague every single time that it applied. In here and say that my good friend from and friend, the gentlewoman from Ohio fact, their rule change was so unwork- Boston, MA, is rated by the National [Ms. PRYCE], for yielding me the cus- able and so unenforceable that they Taxpayers Union, along with all of the tomary half hour. had to fix it in the 105th Congress rules other speakers that will oppose this Mr. Speaker, exactly 1 year ago package. rule and this bill today, they all are today I stood on the House floor in this So if they could not make the provi- rated as the biggest spenders in the very same spot and spoke out against a sion work in the House rules, how can Congress. nearly identical rule and joint resolu- they expect to make a tougher require- Now, think about that for a minute. tion. At that time I said my Repub- ment work in the Constitution? I cer- All the people that are opposed to a lican colleagues should be ashamed of tainly hope my friends on the other supermajority of raising taxes are that rule and that proposed constitu- side of the aisle understand that. We rated as the biggest spenders in this tional amendment. cannot waive or rewrite a constitu- House. And this is not for 1 year or 2 Mr. Speaker, I say it again today. tional amendment just because it is years, this is over 20 years; for at least They should be ashamed of this pro- convenient. Furthermore, Mr. Speaker, as long as I have been here. posed constitutional amendment, and I wonder if they need a lesson in basic So, Mr. Speaker, let me just talk they should be ashamed of sending to civics. Do they not understand that, about this bill. The tax limitation the House floor another closed rule. Of when we require a supermajority vote amendment is designed to make it 11 rules that have been sent to the for passage of a measure, we are effec- more difficult for the Federal Govern- floor so far this Congress, 9 of them tively turning control over to a small ment to take more money out of the have been restrictive. minority who can stop legislation, even pockets of our constituents. It will re- As was the case last year, Mr. Speak- something that the majority supports? quire the Congress to focus on options er, this event today is nothing more James Madison, in The Federalist pa- other than raising taxes to manage the than a political escapade. It is no coin- pers, wisely argued against super- budget. cidence that we are considering this majorities, stating, and I quote: ‘‘the Imagine that. We have to find a dif- bill at this time on this very date. It fundamental principle of free govern- ferent way because it is going to be all has been very carefully orches- ment would be reversed. It would be no very difficult to raise taxes. It will re- trated that we debate the vote just in longer the majority that would rule: quire this Congress to focus on options time for the 6 o’clock news, and of the power would be transferred to the that really mean getting this fiscal course today is tax day. minority.’’ House in order, because we all know So if my colleagues do not believe Mr. Speaker, this proposed constitu- what has happened to the budget over me, just look at the letter that was tional amendment will seriously under- the last 15 years or so; it has just ex- sent to the Committee on Rules by the mine Congress’ ability to pass major ploded. sponsor of this constitutional amend- budgetary initiatives. It will allow a The tax limitation amendment does ment. To my colleagues and to the TV small majority in either House to stop not forelose the possibility of raising audience I say, it is show time. widely supported, meaningful legisla- taxes, however, but it requires a broad Mr. Speaker, our Constitution has tion containing any revenue measure. political consensus to achieve that been amended only 27 times in the 200- It will impede any progress toward a goal. As ratified in the original Con- plus years since our Nation’s inception. balanced budget by removing from the stitution, it allowed no direct taxation And any attempt to amend the Con- table many options for reaching that of incomes of our citizens. stitution is very serious business and goal. Did my colleagues realize that? When should be done only when absolutely It could also lead to cuts in benefits this country was formed, this Republic necessary to the well-being of our in Social Security, in Medicare. It will of States that we have here today, and country and our citizens. sharply limit Congress’ ability to close it is a republic, there was no income April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1475 tax and no provisions to allow for it. all Senators just to end debate. Thank Florida, an earthquake in California, For most of our history, the power of goodness we do not have that over or floods in the Midwest, we are looked the Federal Government to tax was here, though. The Senate budget proce- to in the U.S. Government. carefully constrained by explicit con- dures require that three-fifths of the Something else that is concerning is stitutional limitations. It was not Senate must agree to waive points of that a recent Congressional Budget Of- until early in this century that the order that would violate the budget ap- fice study found that over half of the 16th amendment swept away the Con- proved by the Congress. corporate subsidies the Federal Gov- stitution’s careful balance with respect There are instances in which the ernment provides are delivered through to taxes. That was way back, I think, Constitution currently requires a tax expenditures. Under this legisla- in 1913. supermajority vote. Pick it up and read tion, even measures that raise revenue Initially, the burden grew very slow- it. They are scattered all over the by shutting down opportunities for tax ly. Federal taxes went from 5 percent Chamber here. For example, a two- fraud could require a two-thirds major- of a family’s income in 1934, to 19 per- thirds vote is required in the Senate to ity vote, undermining the ability of cent in 1994, and many, many Ameri- consent to a treaty. And certainly in- this House to operate the day-to-day cans pay a lot more than 19 percent in creasing the burden of taxation on our needs of the United States of America. Federal taxes. own citizens is a more important deci- How ridiculous and frivolous, when However, when we add to that the sion in the life of this Nation than there is tax fraud and moneys being ex- impact of State taxes, especially in my many of these silly treaties that we pended unfairly and illegally, that we State, the highest taxed State in the enter into. would have to have this overmajority, Union, and if we want to look at the Mr. Speaker, the Framers of the Con- supermajority, in order to stop fraud take-home pay of the average young stitution, they understood the need for on the American people. American in my district, there is prac- requiring supermajority votes for cer- Also, this constitutional budget, ac- tically no money there to take home tain fundamental decisions. The adop- cording to the Center on Budget and after all these taxes. tion of a supermajority provision to Policy Priorities, will make it more By some calculations, when we figure raise taxes on the American people difficult to address the long-term fi- in State, county, town, city, and vil- will, I think, help this Congress to give nancing problems of Social Security lage, and local taxes, the American more careful consideration against and Medicare in order to avoid insol- vency. Therefore, in order to avoid in- people are paying over 40 percent of such proposals and would require a solvency with respect to Medicare and their total income in some form of broad consensus in order to do that. Social Security, Congress must be able taxes. If we add in the cost of burden- Asking for a two-thirds vote certainly to use the tax system. It is for these some government regulations, the cost is not too much. reasons that this proposed constitu- goes up substantially, even above that, Mr. Speaker, I urge a ‘‘yes’’ vote on tional amendment squarely goes to un- as high as 60 percent in some areas. the rule and a ‘‘yes’’ vote on the bill it- dermining the responsibility that we Mr. Speaker, the idea of requiring a self. supermajority to raise taxes is not a Mr. MOAKLEY. Mr. Speaker, I yield have. Everything we do in this House brand new idea around here. There are 3 minutes to the gentlewoman from should be borne by the beam of the presently 14 States that require a Texas [Ms. JACKSON-LEE]. sunlight that Alexander Hamilton (Ms. JACKSON-LEE asked and was supermajority to raise taxes, 14 States, spoke of. The Constitution, having given permission to revise and extend according to the Heritage Foundation. been amended only 27 times, is a sacred her remarks.) I would ask all my colleagues to get document. In this book that I hold, it Ms. JACKSON-LEE of Texas. Mr. their report and read it. says that the Declaration of Independ- Speaker, I thank the gentleman for The empirical data from the States ence was the promise, the Constitution yielding me this time. suggests that a supermajority require- is the fulfillment. ment is successful in limiting the It is interesting that I do hold the We have the responsibility to fulfill growth of government, now isn’t that constitution of the United States in our role as representatives of the something, and enabling a more rapid my hand, and one thing that is very American people, firs, to make sure pace of economic growth and job cre- often repeated and certainly noted by that we do not overtax, but, second, ation. Well, is that not what we are the Founding Fathers and Framers of that a minority does not rule with re- here for, to encourage those kind of the Constitution, and stated in the spect to a free government. This two- things? Federalist Papers, is that requiring thirds constitutional amendment is States with supermajority require- more than a majority of a quorum for wrong, wrong-headed, wrong-directed. ments, and listen to this, have lower a decision will result in minority rule, It does not allow us to protect the spending increases, faster economic and the fundamental principle of free American people as we should. growth, they had more jobs, and a government would be reversed. For those States who have the prob- more tightly controlled tax burden Alexander Hamilton said in 1775 that lems of overtaxation, my instruction than States without those require- it is important that the sacred rights to them would be to fix it. We in the ments. of mankind are not to be rummaged, U.S. Government should be able to fix Oh, I wish New York State had this. and therefore they are written as with our responsibilities by being a House If they did, I do not think my five chil- a sunbeam in the whole volume of that responds to all of the people. dren would have had to leave the State. human nature by the hand of the Di- Mr. Speaker, I rise to speak on the rule of Mr. Speaker, at the Federal Govern- vinity itself and can never be erased or House Joint Resolution 62, which would ment level there are numerous prece- obscured by immortal power. amend the Constitution to require that any leg- dents for supermajority requirements. There is a sense of moral righteous- islation raising taxes be subject to a two-thirds Both the House and the Senate rou- ness on the other side about a two- majority vote in the House and Senate. I rise tinely use supermajority voting re- thirds majority for increasing taxes, to speak against the modified closed rule quirements. but it does not respond to the very na- passed by the Rules Committee concerning For over a century and a half, this ture and responsibility of this Govern- this legislation. House has required a two-thirds vote to ment to operate, to balance the budget, I offered two amendments to the Rules suspend the rules and pass legislation, to fairly operate with the funds and Committee that were not passed. One amend- which we are going to be doing here revenue that we secure. ment would have safeguarded the Social Se- today. It requires a two-thirds vote to While there are several supermajor- curity trust fund. It stated that any tax increase take up a rule on the same day that it ity requirements referenced in the Con- that involves Social Security would not require is reported from the Committee on stitution, none pertain to the day-to- a supermajority in the House in order to pass. Rules. The House also requires a three- day operations of the Government or According to the Center on Budget and Policy fifths vote to pass bills on the Correc- the fiscal policy matters. Let it be Priorities, this proposed constitutional amend- tions Calendar. clear that we are the place of last re- ment would make it more difficult to address The other side of this building, the sort for these United States. That the long-term financing problems of Social Se- Senate, requires a three-fifths vote of means when there is a hurricane in curity and Medicare. The center has stated H1476 CONGRESSIONAL RECORD — HOUSE April 15, 1997 that the 1996 report of the Social Security H.R. 1215 shifts the focus away from was accepted was offered by the gen- trustees, projects the Social Security trust fund taxing and spending and toward re- tleman from Florida [Mr. MCCOLLUM], will start running deficits by 2012 and become sponsible management of our re- whose self-executing amendment will insolvent by 2029. In order to avoid this short- sources. With the tax burdens most ensure that a two-thirds majority is fall, Congress must be able to use the tax sys- Americans face these days, we need to not required to reduce capital gains tem, and if not, then the Social Security trust be sure that any future tax increase taxes. fund will remain in grave danger. that Congress is tempted to pass faces b 1415 I also introduced an amendment that would added scrutiny. state that constitutional amendment would not Mr. Speaker, this is an important In response, Mr. Speaker, we should apply to any bill which increases taxes col- measure, and, of course, I intend to have the opportunity to at least vote lected from persons who are not U.S. citizens. support it. I also look forward to con- on an amendment that will ensure that There is absolutely no reason why we would sidering real tax cuts on this floor as a two-thirds requirement is not a re- want to offer foreign multinational corpora- soon as possible. Instead of the illusory quirement to close corporate loopholes. tionsÐwho take thousands of job from this cuts offered in the Presidential cam- We should also have the opportunity to countryÐany special ability to block efforts to paigns that seem to disappear after the clarify language that witnesses at increase tax collections against them. I guar- election, we should work for meaning- hearings called silly, impractical and a antee you that no other country would make it ful, permanent tax relief, and we threat to the Federal Government’s more difficult than is necessary to collect taxes should do it now. budget integrity. We should have the against U.S. corporations. We should cut the capital gains tax, ability to address that concern. I urge my colleague to vote against the rule we should cut the estate tax, we should Mr. Speaker, because the Committee for House Joint Resolution 62. repeal the insidious Clinton tax hike on Rules once again passed a closed Ms. PRYCE. Mr. Speaker, I yield 4 on Social Security, on the benefits of rule, the Members will be deprived of minutes to the gentleman from Florida Social Security, that are being now the opportunity to even consider issues [Mr. GOSS], a valued member of the taxed and are hitting so many of the which their constituents feel are in Committee on Rules. constituents in my district and other their best interests. (Mr. GOSS asked and was given per- districts where there are seniors so Mr. Speaker, another problem pre- mission to revise and extend his re- hard. sented by the rush to hear the bill marks.) We should examine ways to end the today is the fact that the language in Mr. GOSS. Mr. Speaker, I thank the so-called marriage penalty that im- the proposed constitutional amend- gentlewoman from Columbus, OH [Ms. poses a roadblock for young couples ment that we will consider today is dif- PRYCE] for yielding me this time. trying to start their lives together. ferent from the language that was con- I rise in support of this fair, modified April 15 could be an annual reminder sidered by experts at the subcommittee closed rule, which provides for consid- of the responsibility we have as Ameri- hearing. This version provides that a eration of House Joint Resolution 62, cans to relinquish readily some of our two-thirds majority is required for the tax limitation amendment. hard-earned resources to preserve free- changes in internal revenue laws that As most of us are aware, the House dom and the opportunities of this land. increase revenue instead of the pre- traditionally considers constitutional But instead, April 15 is becoming a day vious requirement of a two-thirds ma- amendments under a restrictive rule. I of infamy as we unfairly and recklessly jority for legislation that increases the think it appropriate that we once again overburden productive Americans by internal revenue. This change is monu- are following that precedent, but I taking an ever larger bite of their pay- mental for the very simple fact that no note, especially today, we are provid- check through an incomprehensible one seems to know what constitutes an ing the minority two opportunities to process to feed an ever larger, ever internal revenue law. Is a new fee an offer differing versions. So this is a fair more wasteful, insatiable big brother internal revenue law? If you call the rule. Government right here in Washington. new fee a tax, is it covered? Tonight, millions of Americans will I think it is time to stop that, and I Instead of waiting until we know the spend a few last hours putting their tax am anxious to get to work to provide ramifications of the amendment, we returns together and then rushing relief from those oppressive taxes so are rushing to vote today so that some them to the post office by midnight, that next year, when we stand here, can stand on their pedestals, thump they hope. next year’s tax bite will not be quite so their chests and participate in an April While we all devote a good deal of painful for so many. I urge support for 15 publicity stunt. Changes in this res- time to filling out the tedious and con- this rule, and I urge support for this olution should be made, but instead of fusing forms generated by the IRS, an legislation. making these changes, we are allowing even more discouraging fact is that Mr. MOAKLEY. Mr. Speaker, I yield the processes to fall prey to political this year the average American will 3 minutes to the gentleman from Vir- pageantry. I urge my colleagues to re- spend about 3 hours of every 8-hour ginia [Mr. SCOTT]. ject the rule. work day just to make enough money Mr. SCOTT. Mr. Speaker, I rise to Ms. PRYCE of Ohio. Mr. Speaker, I to pay taxes to the Government to get speak against the rule for the constitu- yield 4 minutes to the gentleman from that money in the mail tonight. tional amendment of the day. Florida [Mr. MCCOLLUM], who authored Something is wrong when we pay Mr. Speaker, we are here on tax day the amendment that is included in the more in total taxes than we do in food, to consider yet another version of the base legislation. clothing, and housing combined. That tax limitation amendment. Unfortu- (Mr. MCCOLLUM asked and was is a fact. Something is wrong, and nately, the timing of press conferences given permission to revise and extend today we are trying to fix it. has taken priority over responsible leg- his remarks.) We have already considered two bills islating. Mr. MCCOLLUM. Mr. Speaker, I dealing with the Tax Code: H.R. 1226, At the Committee on Rules, a num- thank the gentlewoman for yielding me which would make it a crime for IRS ber of very important amendments time, and I rise to support this rule employees to snoop through citizens’ were offered but rejected by the Com- today and the self-executing-amend- tax records, we had debate earlier on mittee on Rules. These amendments ment provision that is in the rule. that. With the passage of H.R. 109, we would have protected Social Security, First, let me say that as one Member will have stated our commitment to they would have maintained our abil- of this body I strongly believe we providing real tax relief for American ity to close corporate loopholes, they should be changing the tax laws of this families. The vote comes later on that. would have clarified language that country. We should go to either a flat- The measure we are about to con- both Republican and Democratic hear- ter rate income tax or we should go to sider, the tax limitation amendment, ing witnesses called problematic, and a sales tax. We need major reform. would require a two-thirds majority would have addressed the issue of judi- That is not what is about this bill and vote for the passage of any legislation cial review. this rule today. resulting in a tax increase. Most people Mr. Speaker, it is extremely unfortu- Personally, I also believe that in the understand that. nate that the only amendment that interim we should not be taxing at all April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1477 capital gains or estate taxes should be and actually increase revenues. So I And then James Madison, who said: eliminated. I think we frankly do not think it is very important what the It has been said that more than a majority need a tax on dividends. A double tax- Committee on Rules has done, and I ought to have been required for a quorum ation on dividends is bad or interest wanted every Member to understand and in particular cases, if not in all, more that is earned, but that is not what that the self-executing provision in than a majority for a decision. In all cases this legislation is about today. What this rule is a significant improvement, where justice or the general good might re- quire new laws to be passed or active meas- we are about today is a rule that will an important improvement albeit a ures to be pursued, the fundamental prin- allow us to vote in a few hours to technical one, to the underlying con- ciple of free government would be reversed. amend the Constitution of the United stitutional amendment proposed. It would be no longer the majority that States to say that in the future there Mr. Speaker, I strongly urge the would rule. The power would be transferred shall be no tax increase, no revenue in- adoption of the rule and the amend- to the minority. crease to the U.S. Treasury without a ment incorporated therein today. I ad- That is what this constitutional two-thirds, supermajority vote of this ditionally of course urge the adoption amendment is about. It does not have body and the other body. of the constitutional amendment that to do with taxes. It has to do with the I think that is entirely appropriate. would require a two-thirds vote of both balance of individuals related to each Fourteen States have adopted such bodies before we could pass any in- other and the power of individual Mem- provisions. We had some discussion in crease in taxes on the American public bers of this House of Representatives the Committee on Rules yesterday in the future. as they relate to each other. about my State of Florida. I want to Mr. MOAKLEY. Mr. Speaker, I yield Why should we give more power to clarify for the gentleman from Massa- myself such time as I may consume. one group of people who support a chusetts, who asked a question about I thank the gentleman who just left proposition than we give to other peo- it, that my State has adopted in 1994 an the microphone for correcting my ple? That is fundamentally out of kil- initiative which applies to all taxes, in- statement at the Committee on Rules, ter with the majority rules concept, cluding the sales tax, the two-thirds re- but I was reading from the majority’s and I submit that while we are engag- quirement. That may not have been ap- report that stated, ‘‘For example, in ing in this pageantry for tax day, we parent in the publications that were Florida, the supermajority require- ought to be engaging in some preserva- before the committee yesterday, but ment only applies to corporate income tion, we ought to be paying attention that in fact is the law now in the State taxes. Exempt from the requirement is to the constitutional framework in of Florida. the sales tax on the purchase of which this proposed constitutional But my concern today particularly is goods.’’ That is in the majority’s re- amendment is playing itself out and making sure that what we are going to port. protecting the concept of majority vote on when we vote on our amend- Mr. MCCOLLUM. If the gentleman rule, which is so near and dear to our ment is correct, is what we want to will yield, he is absolutely right. That constitutional principles in this coun- have. There was a provision, interpre- report is erroneous in that regard. It try. tation at least, of the provisions of the applies to the sales taxes, as I under- Mr. MOAKLEY. Mr. Speaker, I yield underlying amendment that could have stand, in Florida. There are a few tech- 4 minutes to the gentleman from Geor- been confused to state in some way or nical exceptions, but all basic taxes, in- gia [Mr. LEWIS], the deputy minority be interpreted in some way as saying if cluding if we ever had an income tax, whip. we vote for a capital gains tax reduc- which we do not have. I thank the gen- Mr. LEWIS of Georgia. Mr. Speaker, tion, which might increase revenues to tleman for making that point. I want to thank my friend, the gen- the Treasury and in real terms surely Mr. MOAKLEY. Mr. Speaker, I yield tleman from Massachusetts [Mr. MOAK- it would, at least many of us believe it 4 minutes to the gentleman from North LEY], for yielding me this time. would, we would have to have a two- Carolina [Mr. WATT]. Mr. Speaker, once again Republicans thirds vote to do that because the un- Mr. WATT of North Carolina. Mr. are ready to sacrifice our Constitution derlying proposal says you have got to Speaker, I thank the gentleman from at the altar of partisan politics. It have a two-thirds vote of the bodies of Massachusetts for yielding time for the seems that every day the leadership of Congress in order to increase revenues. purposes of debate on the rule for this this body comes up with some new So I proposed, and the Committee on bill. stunt to prove they do not like taxes. Rules has engrafted upon this today Mr. Speaker, the bill is on the floor Today they want to destroy the Con- when we have the rules vote, the lan- today because it is April 15, and there stitution. They want to destroy major- guage that reads as follows: ‘‘For the are some Members of this body who ity rule. Majority rule is central to our purposes of determining any increase want to try to take political advantage Constitution. It is the foundation of in the internal revenue under this sec- of the fact that people are feeling like our democracy. It is our core belief. tion, there shall be excluded any in- they paid too much taxes. That is per- And so it has stood for over 200 years. crease resulting from the lowering of haps a worthy political objective. But This amendment would allow minority an effective rate of any tax.’’ we have to debate whether this bill is a rule. A minority of the Congress would I remember a few years ago we passed reasonable substantive objective. It is decide when we can and cannot raise a luxury tax, an excise tax on yachts. on that point that I rise. taxes. Everybody thought that was going to I would say to the Speaker that I Mr. Speaker, if this amendment were raise some money for the Treasury of would rise here today in opposition to allowed to our Constitution, do my col- the United States. Instead we put a constitutional amendment that re- leagues have so little faith in majority yacht making companies out of busi- quired a two-thirds vote on any issue, rule? It is my hope and my prayer, my ness. It lowered the revenues. Not only whether it was a taxing issue or any sincere hope, that enough Members of did we not have an excise tax, but we other issue that we might be consider- this body would have the courage to do did not have the income taxes from the ing, because it is my position, and I be- what is right and vote against this ill- people who were making those big lieve it is supported by historical fact, conceived, ill-constructed and ill-ad- yachts anymore. Then when we came that a two-thirds vote is counter-demo- vised amendment. along and removed that excise tax, cratic. It is counter the very essence of If we adopt this amendment, our Con- that luxury tax, the revenues of the our democracy, which says that it is stitution will suffer. We will suffer. United States were raised, not because the majority which should rule in this This amendment could force us to cut we had more excise taxes but because country. Medicare, this amendment could force we at least had businesses again selling I want to call my colleagues’ atten- us to cut Social Security, even if a ma- yachts, creating taxable transactions tion to two quotations from our Found- jority of the Members opposed these and yielding income taxes that were ing Fathers. First, Alexander Hamil- cuts, because under this amendment, coming to the U.S. Government. ton, who said, ‘‘The fundamental the majority does not rule. There are any number of possible maxim of a Republican government re- But we are not here because this is a ways where you could reduce the taxes quires that the sense of the majority well-written, well-reasoned amend- on Americans throughout this country shall prevail.’’ ment. This amendment is not even a H1478 CONGRESSIONAL RECORD — HOUSE April 15, 1997 good idea. We are here because today is filing their taxes, Republicans are ig- thirds vote to increase income taxes or tax day. We all know why we are here. noring their responsibility by ignoring any other tax in the Internal Revenue Today is tax day. It is time to score po- their deadline to present a budget, and Code of this country. litical points no matter what the cost. that is why this Congress has been I want to speak briefly about the It is unfortunate that the leadership of dubbed the do-nothing Congress. process which has brought us to this this House can come up with nothing If Republicans are honest about day and then if I have time, talk a lit- better to do than debate this amend- wanting to cut taxes, there is only one tle bit about the policy. ment. way to do that, and that is to present We had this same vote last year on This amendment is a waste of time. a budget. But only the Democrats have tax day, April 15, and we got 243 Mem- Where is the Republican agenda? Where a budget on the table, and in this budg- bers of the House to vote in the affirm- is the Republican budget? Show me the et President Clinton has proposed mid- ative if that was 37 votes short of the budget. dle-class tax relief including tax cuts vote necessary to get the two-thirds Mr. Speaker, today is not only the to pay for college, tax cuts to buy a vote. The Speaker of the House at the day that taxes are due, it is also the first home, and tax deduction for adop- time, Speaker GINGRICH, said that as day the budget is due. The American tion. It is a plan that would help those long as he was Speaker we would have taxpayers have paid their taxes. The who need it most. the same vote every April 15, tax day, returns are in the mail. Where is the But most important, all of these tax until we actually pass the amendment Republican budget? The President has cuts are paid for within a balanced and send it to the Senate. So that is a budget. The Blue Dogs have a budget. budget, and that is the real reason why why we are here today on April 15. It seems that the only people without a Republicans cannot and will not In order to take advantage of the reg- budget are the Republicans. The House produce a budget. The truth of the ular process, we went to the committee leadership has no budget. matter is that the tax cuts they pro- of jurisdiction for constitutional Mr. Speaker, let me make it plain pose cannot be paid for in a balanced amendments, the Committee on the and crystal clear. It is time to stop budget without making deep and dan- Judiciary, and asked them to hold grandstanding and time to get to work. gerous cuts in Medicare and education hearings on this important amend- Nobody, but nobody, likes paying and in the environment, and we all ment. The distinguished subcommittee taxes. I do not like paying taxes. But know that the American people re- chairman of the Subcommittee on the this is not a reason to support a flawed jected that tradeoff in the last Con- Constitution, the gentleman from Flor- constitutional amendment. Instead we gress. ida [Mr. CANADY], did so. We had a should pass a budget and we should Mr. Speaker, that means it is time to hearing on the merits, the pros and the pass it here and now. go back to the drawing board, come up cons of the amendment, and I would Mr. Speaker, I urge my colleagues to with a tax plan that we can pay for and point out that at that hearing Mem- respect our Founding Fathers. Respect produce a balanced budget. The Presi- bers were invited to attend, and not the Constitution. Respect democracy dent has done so. It is time for Repub- one Member of the minority party took and this body. I urge my colleagues to licans to stop waiting for that Hale- advantage of the opportunity to attend vote ‘‘no’’, ‘‘no’’ on this rule and ‘‘no’’ Bopp tax cut, and I can assure my col- and speak in the negative, although we on this amendment. leagues that a tax cut in the balanced did have several Members speak in the Mr. MOAKLEY. Mr. Speaker, I yield budget will not be delivered on the tail affirmative. 3 minutes to the gentlewoman from of a comet. We then went to the full committee Connecticut [Ms. DELAURO]. So roll up those sleeves and get down where again every member of the Com- mittee on the Judiciary had an oppor- b 1430 to work. Then maybe this Congress can be known as the Congress that deliv- tunity to offer amendments, offer sub- Ms. DELAURO. Mr. Speaker, I rise in ered tax relief to American families in- stitutes, offer alternatives. A number strong opposition to this rule and in stead of the do-nothing Congress. were offered. The amendment was strong opposition to amending the Con- Mr. MOAKLEY. Mr. Speaker, I yield slightly modified and reported out on a stitution to eviscerate majority rule back the balance of my time. 18 to 10 vote, which is only one vote and to favor the wealthy and the pow- Ms. PRYCE of Ohio. Mr. Speaker, I short of having a two-thirds vote in the erful over working families. yield myself such time as I may full committee. The gentleman from As my colleagues know, the first bill consume. Florida [Mr. McCollum] offered an I ever introduced as a Member of the Mr. Speaker, with all due respect to amendment on the effective rate issue. Congress was the Middle Class Tax Re- the last few speakers as the hard-work- He offered and withdrew it. We worked lief Act of 1991, so I welcome a debate ing American taxpayers labor about a on that issue until we had it refined to on the best way to cut taxes. But today third of the year just to pay their the point that the Committee on Ways we cannot even have that debate. taxes, they stay up late, rolling up and Means and myself and the other Today we are having a mock debate be- their sleeves, burning the midnight oil cosponsors were very supportive. He cause only one party has tax cuts on over their tax returns, or worse, paying took that amendment to the Commit- the table, the Democrats. accountants and lawyers thousands and tee on Rules, and yesterday the Com- We have heard so much talk from the thousands of dollars for the very privi- mittee on Rules voted to put it into Republicans about cutting, we could lege of paying their taxes, it is our the constitutional amendment. think that they had a tax cut proposal. duty, it is our responsibility, to stop, The rule that is before us makes in The fact is that they do not. In fact, to put on the brakes of this annual order an alternative by the minority, the Republican tax package might be travesty. This is the perfect day to pro- the minority leader, Mr. GEPHARDT of called the Hale-Bopp tax cut because it vide this legislation. Missouri, if he wishes to offer such. It seems that my Republican colleagues Mr. Speaker, with that I yield 5 min- also makes in order a motion to recom- are waiting for the tax cut to drop utes to the gentleman from Texas [Mr. mit with instructions. from the heavens. But tax cuts and Barton], the author of this legislation. So if we want to talk about the proc- budgets do not fall from the sky, they (Mr. BARTON of Texas asked and ess, the process has been imminently take work to produce, and it is time was given permission to revise and ex- fair, reasonable and according to regu- that my colleagues from across the tend his remarks.) lar order. It is a modified closed rule aisle come back to Earth and get down Mr. BARTON of Texas. Mr. Speaker, because it is a constitutional amend- to business. article 5 of the Constitution of the ment. Today, April 15, has dual signifi- United States gives the House of Rep- Now let me talk a little bit about the cance. It is the tax filing deadline for resentatives the right to propose policy. Several Members in the opposi- American families, but it is also the amendments to the Constitution of the tion have spoken about violating the deadline for Republicans to submit United States if two-thirds of the Mem- Constitution, that somehow it is unfair their budget. As Americans all across bers present voting vote in the affirma- to amend the Constitution, that we the country live up to their respon- tive. So we are here today to propose have a two-thirds vote requirement for sibilities and to meet their deadline by such an amendment requiring a two- a tax increase. I would point out that April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1479 in article I, section 9 of the original and I believe is a natural bias in favor The tax limitation amendment also pro- Constitution there is a direct prohibi- of bigger government and higher taxes. vides for this clarity and flexibility with its tion against any direct taxes, zero tol- Let us not miss this opportunity to de minimis exception. erance, and I want to read article I, strike a blow for fairness for hard- DESCRIPTION OF MODIFICATIONS TO CL. 5(c) section 9: ‘‘No Capitation, or other di- working families. AND (d) OF HOUSE RULE 21—RELATING TO rect, Tax shall be laid, unless in Pro- Mr. Speaker, as my colleague from TAX INCREASES MADE BY H. RES. 5—ADOPT- portion to the Census or Enumeration Florida, Mr. GOSS, said moments ago, ING RULES OF THE HOUSE FOR THE 105TH herein before directed to be taken.’’ there is something wrong when the av- CONGRESS ON JANUARY 7, 1997 We had zero, we had 100 percent pro- erage worker spends more time work- Clarifying Definition of Income Tax Rate hibition against income taxes in the ing to pay his total tax bill than to Increase: The section clarifies the definition original Constitution. But on February provide food, clothing, and shelter for of ‘‘income tax rate increases’’ for the pur- 13, 1913, the amendment XVI to the his family, something terribly wrong, poses of clauses 5 (c) and (d) of House Rule Constitution said we could have an in- and this bill is not even asking or seek- XXI which require a three-fifths vote on any come tax. So in 1915 we had an income ing any kind of repeal. That will come amendment or bill containing such an in- crease, and prohibits the consideration of tax for the first time. It was 1 percent, later. We are just making it harder, a any amendment or bill containing a retro- 1 percent of income. Today that 1 per- little harder, to make it any worse on active income tax rate increase, respec- cent has moved up to an average of 19 the hard-working American taxpayer. tively. A ‘‘federal income tax rate increase’’ percent, the marginal rate has moved I urge adoption of this rule and the is any amendment to subsection (a), (b), (c), from 1 percent to 40 percent, so the underlying legislation. (d), or (e) of section 1 (the individual income marginal rate is 4,000 times more than Mr. Speaker, I ask unanimous con- tax rates), to subsection (b) of section 11 (the the marginal rate was in 1915. sent to place extraneous materials in corporate income tax rates), or to subsection (b) of section 55 (the alternative minimum The reason we need a two-thirds vote the RECORD following my remarks on this resolution. tax rates) of the Internal Revenue Code of for a tax increase, for an income tax in- 1986 which (1) imposes a new percentage as a crease, is because the ability to re- The SPEAKER pro tempore [Mr. rate of tax and (2) thereby increases the strain taxes has been abolished by the GOODLATTE]. Is there objection to the amount of tax imposed by any such section. 16th amendment, and I would point out request of the gentlewoman from Ohio? Thus, paragraphs (c) and (d) of Rule XXI again that in the original Constitution There was no objection. clause 5 would apply only to specific amend- there was a direct prohibition against The material referred to is as follows: ments to the explicitly stated income tax any direct tax. That has been repealed TAX LIMITATION CONSTITUTIONAL AMENDMENT rate percentages of Internal Revenue Code sections 1(a), 1(b), 1(c), 1(d), 1(e), 11(b) and so we at least need to raise the bar The Charge: The Democrats may claim 55(b). The rules are not intended to apply to that the 3⁄5 vote requirement for a tax in- above a simple majority vote to the provisions in a bill, joint resolution, amend- crease as a House rule has not worked, has two-thirds. ment, or conference report merely because caused problems, was waived frequently in Now let me speak about this major- those provisions increase revenues or effec- the 104th, and that is a reason why the Tax ity vote if I can very quickly, and tive tax rates. Rather, the rules are intended Limitation Constitutional Amendment (re- again in the original Constitution to be an impediment to attempts to increase quiring a 2⁄3 vote) should be opposed. the existing income tax rates. The rules there is nowhere in here that says This is flatly wrong. The 3⁄5th Tax rule is votes have to be only by majority. In enforceable and has worked. would not apply, for example, to modifica- fact, there are seven specific instances At the beginning of the 104th Congress, tions to tax rate brackets (including those in the Constitution that you have to when the GOP took control of the House, we contained in the specified subsections), filing status, deductions, exclusions, exemptions, adopted a House rule requiring a 3⁄5 vote for have a supermajority, in most cases a credits, or similar aspects of the Federal in- two-thirds supermajority to ratify passage of any income tax rate increase and prohibiting consideration of any retroactive come tax system and mere extensions of an treaties, to expel a Member, to im- tax increase. expiring or expired income tax provision. In peach a Federal judge or to amend the While the rule was waived several times addition, to be subject to the rule, the Constitution. during the 104th Congress, these waivers amendment to Internal Revenue Code sec- So everything we are doing today on were primarily necessary to prevent dilatory tion 1(a), 1(b), 1(c), 1(d), 1(e), 11(b) or 55(b) the floor on this amendment is totally tactics by the Democrats. They consistently must increase the amount of tax imposed by the section. Accordingly, a modification to constitutional, it is totally regular tried to use the 3⁄5th rule to prevent the con- sideration of unrelated legislation. For ex- the income tax rate percentages in those sec- order, and it is totally in the spirit tions that results in a reduction in the that the original Founding Fathers ample, the Democrats tried to claim that the three-fifths rule applied to the Medicare amount of tax imposed would not be subject would have had us. I have no doubt Preservation Act because in some instances to the rule. that if Thomas Jefferson and James Medicare premiums may have been increased Madison were here they would vote for for some individuals. The Parliamentarian TEXT OF CLAUSES 5(C) AND (D) OF HOUSE RULE the constitutional amendment. ruled that this was clearly not the intended 21—TAX INCREASES AS MODIFIED ON JANU- Ms. PRYCE of Ohio. Mr. Speaker, I object of this rule. This clearly is not an in- ARY 1, 1997 BY H. RES. 5—ADOPTING RULES yield myself the balance of the time. come tax rate increase. Three of the six OF THE HOUSE FOR THE 105TH CONGRESS We have heard some very good argu- times the rule was waived in the 104th Con- Cl. 5(c) of House Rule 21—Requiring a 3⁄5 ments on both sides of this issue here gress was to prevent such dilatory motions. Vote on a Federal Income Tax Rate Increase: (c) No bill or joint resolution, amendment, this past hour, and under this fair rule The other three times the rule was waived in the 104th Congress was when Congress was or conference report carrying a Federal in- the House will have ample opportunity trying to close a perceived tax loophole in an come tax rate increase shall be considered as to debate the merits of the tax limita- effort to balance the budget. This also was passed or agreed to unless so determined by tion amendment in much greater never an income tax rate increase. a vote of not less than three-fifths of the depth. Any and all minority amend- Furthermore, Republicans during the 105th Members voting. For purposes of the preced- ments can be in included in the sub- Congress amended this rule to make it crys- ing sentence, the term ‘‘Federal income tax stitute and again in the motion to re- tal clear that it only applies to income tax rate increase’’ means any amendment to sub- commit. rate increases and to limit opportunities for section (a), (b), (c), (d), or (e) of section 1, or I would urge my colleagues to con- this rule to be abused as it was by the Demo- to section 11(b) or 55(b), of the Internal Reve- crats during the 104th Congress. nue Code of 1986, that imposes a new percent- sider the tax limitation is working in The rule now specifically cites the sections age as a rate of tax and thereby increases the the States which have adopted super- of the Internal Revenue Code to which ap- amount of tax imposed by any such section. majority requirements. States have plies, namely subsection (a), (b), (c), (d), or Cl. 5(d) of House Rule 21—Prohibiting Con- grown more slowly, spending has not (e) of section 11(b) or 55(b). These sections sideration of Retroactive Tax Increases: increased as fast, economies have ex- cover tax rates on married individuals, heads (d) It shall not be in order to consider any panded faster, and the job base has of households, unmarried individuals, mar- bill, joint resolution, amendment, or con- grown more quickly. The Federal Gov- ried individuals filing separate returns, es- ference report carrying a retroactive Federal ernment and our national economy tates, trusts, corporations and the tentative income tax rate increase. For purposes of the minimum tax. preceding sentence— could surely use the same benefits. These changes not only clarify the applica- (1) the term ‘‘Federal income tax rate in- We have the opportunity today to tion of the rule but also provide enough crease’’ means any amendment to subsection adopt a fiscal tool that will help flexibility for Congress to cut taxes, close (a), (b), (c), (d), or (e) of section 1, or to sec- counter what many of my colleagues loopholes, and reform the tax code. tion 11(b) or 55(b), of the Internal Revenue H1480 CONGRESSIONAL RECORD — HOUSE April 15, 1997

Code of 1986, that imposes a new percentage H.J. RES. 62 law. Any increase in the internal revenue en- as a rate of tax and thereby increases the Resolved by the Senate and House of Rep- acted under such a waiver shall be effective amount of tax imposed by any such section; resentatives of the United States of America in for not longer than two years. and Congress assembled, (two-thirds of each House ‘‘SECTION 3. Congress shall enforce and im- (2) a Federal income tax rate increase is concurring therein), That the following article plement this article by appropriate legisla- retroactive if it applies to a period beginning is proposed as an amendment to the Con- tion.’’. prior to the enactment of the provision. stitution of the United States, which shall be The SPEAKER pro tempore. The gen- HISTORY OF CONGRESSIONAL CONSIDERATION valid to all intents and purposes as part of tleman from Florida [Mr. CANADY] and OF BUDGET RESOLUTIONS UNDER DEMO- the Constitution when ratified by the legis- the gentleman from Virginia [Mr. CRATIC MAJORITY latures of three-fourths of the several States SCOTT] each will control 90 minutes. Section 301(a) of the Congressional Budget within seven years after the date of its sub- The Chair recognizes the gentleman Act of 1974 provides that Congress shall com- mission for ratification: from Florida [Mr. CANADY]. plete action on a concurrent resolution on ‘‘ARTICLE — the budget on or before April 15 of each year. Mr. CANADY of Florida. Mr. Speak- ‘‘SECTION 1. A bill to increase the internal er, I yield 30 minutes to the gentleman The following table represents the dates of revenue shall require for final adoption in House and final congressional passage of con- each House the concurrence of two-thirds of from Texas [Mr. BARTON] and I ask current resolutions on the budget: the whole number of that House, unless that unanimous consent that he may be per- bill is determined at the time of adoption, in mitted to yield blocks of time to other House Pas- a reasonable manner prescribed by law, not Members. Final Congressional Passage of sage of Budg- Budget Resolution et Resolution to increase the internal revenue by more The SPEAKER pro tempore. Is there than a de minimis amount. objection to the request of the gen- June 29, 1995 ...... May 18, 1995. ‘‘SECTION 2. The Congress may waive the tleman from Texas? May 12, 1994 ...... March 8, requirements of this article when a declara- There was no objection. 1994. tion of war is in effect. The Congress may Mr. CANADY of Florida. Mr. Speak- April 1, 1993 ...... March 15, also waive this article when the United States is engaged in military conflict which er, I yield myself such time as I may 1993. consume. May 21, 1992 ...... March 5, causes an imminent and serious threat to na- tional security and is so declared by a joint Mr. Speaker, House Joint Resolution 1992. 62 introduced by the gentleman from May 22, 1991 ...... April 17, 1991. resolution, adopted by a majority of the October 9, 1990 ...... May 1, 1990. whole number of each House, which becomes Texas [Mr. BARTON] requires a two- May 18, 1989 ...... May 4, 1989. law. Any increase in the internal revenue en- thirds vote for any bill that changes June 6, 1988 ...... March 23, acted under such a waiver shall be effective the internal revenue laws to increase 1988. for not longer than two years. the internal revenue by more than a de ‘‘SECTION 3. Congress shall enforce and im- June 24, 1987 ...... April 9, 1987. plement this article by appropriate legisla- minimis amount. Why is this amend- June 27, 1986 ...... May 15, 1986. tion.’’ ment needed? Simply put, a super- August 1, 1985 ...... May 23, 1985. majority vote makes it more difficult The SPEAKER pro tempore (Mr. SOL- October 1, 1984 ...... April 5, 1984. for Congress to raise taxes. It is a June 23, 1983 ...... March 23, OMON). Pursuant to House Resolution mechanism by which to restrain the 1983. 113, the committee amendment in the June 23, 1982 ...... June 10, 1982. nature of a substitute, modified by the Government’s appetite for reaching May 21, 1981 ...... May 7, 1981. amendment printed in House Report into people’s pockets and taking their June 21, 1980 ...... May 7, 1980. 105–54 is adopted. money. It is a mechanism to protect May 23, 1979 ...... May 14, 1979. The text of the committee amend- the American people from Government May 17, 1978 ...... May 10, 1978. overreaching. May 17, 1977 ...... May 5, 1977. ment in the nature of a substitute, as modified, is as follows: The Federal Government’s insatiable April 29, 1976 ...... April 29, 1976. appetite for raising taxes is borne out H.J. RES. 62 by the facts. In 1934 Federal taxes were Ms. PRYCE of Ohio. Mr. Speaker, I Resolved by the Senate and House of Rep- resentatives of the United States of America in just 5 percent of a family’s income. By yield back the balance of my time, and 1994 this figure had jumped to 19 per- I move the previous question on the Congress assembled, (two-thirds of each House concurring therein), That the following article cent; almost one-fifth of a family’s in- resolution. come went to pay Federal income The previous question was ordered. is proposed as an amendment to the Con- The resolution was agreed to. stitution of the United States, which shall be taxes. A motion to reconsider was laid on valid to all intents and purposes as part of The amendment will require the Con- the Constitution when ratified by the legis- gress to focus on options other than the table. latures of three-fourths of the several States f raising taxes to manage the Federal within seven years after the date of its sub- budget. It will force Congress to care- mission for ratification: REMOVAL OF NAME OF MEMBER fully consider how best to use current ‘‘ARTICLE — AS COSPONSOR OF H.R. 950 resources before demanding that tax- ‘‘SECTION 1. Any bill, resolution, or other payers dig deeper into their hard- Ms. DELAURO. Mr. Speaker, I ask legislative measure changing the internal unanimous consent to have my name revenue laws shall require for final adoption earned wages to pay for increased Fed- withdrawn as a cosponsor of H.R. 950. in each House the concurrence of two-thirds eral spending. The amendment would My name was inadvertently included as of the Members of that House voting and not require a two-thirds vote for every a cosponsor of this bill. present, unless that bill is determined at the tax increase in any bill. For example, a The SPEAKER pro tempore (Mr. SOL- time of adoption, in a reasonable manner bill that both lowered and increased OMON). Is there objection to the request prescribed by law, not to increase the inter- taxes, if it were revenue neutral, would of the gentlewoman from Connecticut? nal revenue by more than a de minimis not be subject to the two-thirds vote. There was no objection. amount. For the purposes of determining any increase in the internal revenue under b 1445 f this section, there shall be excluded any in- In addition, the supermajority re- TAX LIMITATION CONSTITUTIONAL crease resulting from the lowering of an ef- quirement would be waived when a dec- AMENDMENT fective rate of any tax. On any vote for which the concurrence of two-thirds is re- laration of war is in effect or when Mr. CANADY of Florida. Mr. Speak- quired under this article, the yeas and nays both Houses pass a resolution, which er, pursuant to House Resolution 113, I of the members of either House shall be en- becomes law, stating that, ‘‘The United call up the resolution (H.J. Res. 62) tered on the journal of that House. States is engaged in military conflict proposing an amendment to the Con- ‘‘SECTION 2. The Congress may waive the which causes an imminent and serious stitution of the United States with re- requirements of this article when a declara- threat to national security.’’ spect to tax limitations, and ask for its tion of war is in effect. The Congress may The resolution we are considering also waive this article when the United this afternoon also includes a provision immediate consideration in the House. States is engaged in military conflict which The Clerk read the title of the House causes an imminent and serious threat to na- offered by the gentleman from Florida Joint Resolution. tional security and is so declared by a joint [Mr. MCCOLLUM] which amended the The text of House Joint Resolution 62 resolution, adopted by a majority of the committee-reported version with the is as follows: whole number of each House, which becomes adoption of the rule. The McCollum April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1481 amendment addresses a problem which thirds vote if it created no more than a would like to say a few words about my may arise if, at some time in the fu- de minimis increase in revenue or was concern with the priorities of the ture, Congress decides to move to a accompanied by an offsetting tax cut. House. system of dynamic scoring for deter- It is the intention of the sponsors that Mr. Speaker, I remind my colleagues mining the revenue effects of legisla- a bill would be considered to raise a de that we have not yet reached an accord tion. minimis amount of revenue if it in- on the budget. Today is the deadline Under current revenue estimating creased tax revenues by no more than for Congress to have completed action procedures, scoring of a capital gains one-tenth of 1 percent over 5 years. on our budget, and yet we are debating tax cut, for example, would generally The amendment states that a deter- senseless constitutional amendments, result in projected revenue losses and mination must be made at the time of intervening in impending cases, and we thus would not require a two-thirds the adoption of the legislation as to are passing worthless resolutions. In- vote under the amendment. However, if whether it raises the Internal Revenue stead of participating in tax day politi- Congress moved to a system of dy- by more than a de minimis amount. cal pagentry, I would hope that we namic scoring, as some have urged, a The determination shall be made in a would begin to address some of the se- cut in the capital gains tax probably reasonable manner prescribed by law. rious issues facing the American public would result in some increase in reve- In order to implement the article, Con- today. nue. gress will need to adopt legislation de- Mr. Speaker, I have some very seri- The McCollum amendment makes fining terms and fleshing out the nec- ous concerns about the constitutional clear that increases in revenue which essary procedures. amendment of the week, House Joint result from the lowering of the effec- It is up to this or a future Congress Resolution 62, the proposed constitu- tive rate of a tax are not to be taken to design implementing legislation tional amendment with respect to tax into consideration in determining pursuant to the provision of the limitations. My concerns are not objec- whether a piece of legislation is subject amendment requiring the Congress to tions to my colleagues’ attempts to to the two-thirds vote requirement. enforce and implement the amendment limit new taxes. All Members of this During committee consideration, I through legislation. The gentleman Congress should be constantly asking offered a substitute amendment which from Texas [Mr. ARCHER], chairman of themselves whether our tax system is was adopted by the Committee on the the Committee on Ways and Means, fair and appropriate. In fact, our Com- Judiciary making two changes to the which would have jurisdiction over mittee on Ways and Means has the re- underlying text. The substitute amend- such implementing legislation, sug- sponsibility of addressing these com- ment requires that all votes taken pur- gested the following reasonable cri- plex issues in great detail. suant to the amendment be taken by teria in his letter to Chairman HYDE, The end of limiting new taxes, how- the yeas and nays. It also conforms the and I quote again: ‘‘Revenue would be ever, is not the issue here. Rather, it is text of House Joint Resolution 62 to measured over a period consistent with the issue of a means which is imprac- the language voted on by the House in current budget windows. For example, tical and counterproductive, and that 1996 by making clear that the amend- measuring the net change in revenue is what I have concerns about. The terms of the amendment are un- ment applies to any bill, resolution, or over a 5-year period would be appro- believably vague. About the only thing other legislative measure changing the priate. Estimation would be made em- ploying the usual estimating rules. As clear about this amendment is the fact Internal Revenue laws. Any bill chang- that this amendment will cause great ing the Internal Revenue laws would under the Budget Act, a committee of jurisdiction or a conference committee confusion. Both Democratic and Re- require a two-thirds vote, unless it was publican witnesses at the subcommit- determined that the bill’s provisions, would, in consultation with the Con- gressional Budget Office or the Joint tee hearing expressed very serious con- taken together, raise revenue by less Committee on Taxation, determine the cerns about House Joint Resolution 62. than a de minimis amount. Former Office of Management and Generally, the term ‘‘internal reve- revenue effect of a bill.’’ In McCulloch versus Maryland, a case Budget Director Jim Miller, a tax limi- nue laws’’ covers taxes found in the In- that was decided in 1819, long before tation amendment supporter, even ternal Revenue Code: income taxes, es- the advent of the Federal income tax, went so far as to call some of the lan- tate and gift taxes, employment taxes, the U.S. Supreme Court Chief Justice guage silly and unworkable. and excise taxes. John Marshall stated, ‘‘The power to The vagueness issue is further exac- The gentleman from Texas [Mr. AR- tax involves the power to destroy.’’ erbated by a change made to the lan- CHER], chairman of the Committee on This sentiment is no less true today. guage seemingly in response to the Ways and Means, explained the scope of The power to tax is the power to use negative comments made by experts at the amendment in an April 7, 1997, let- the coercive mechanisms of Govern- the hearings. Our subcommittee chair- ter to the gentleman from Illinois [Mr. ment to require citizens to surrender man, the gentleman from Florida [Mr. HYDE], chairman of the Committee on their property to the Government for CANADY] to his credit, has made a val- the Judiciary. He stated, and I quote, its own purposes. This amendment will iant effort to correct some of those ‘‘Internal Revenue laws means the cur- ensure that this enormous power is ex- problems. However, I think the mission rent Internal Revenue Code. That is, ercised in a careful, thoughtful, and was just impossible. the Federal individual and corporate prudent fashion for the sake of our- The language considered by the ex- income tax, estate and gift taxes, em- selves, our Nation, our children, and perts at the hearing required a two- ployment taxes, and excise taxes. It future generations of Americans. thirds majority to, quote, increase the would also include any new tax that The Federal Government seems to Internal Revenue. We marked up a very may be added to the current Internal have forgotten a fundamental fact: The different language in the committee Revenue Code or that is analogous to money we spend belongs to the people. than that which was reviewed by the any tax in the Internal Revenue Code,’’ It is money that they have earned. It is experts. The language we considered in close quote. only fitting that when we increase our the Committee on the Judiciary and The amendment would not apply to demands on those earnings, with all are now considering on the floor re- tariffs, asset sales, user fees, voluntary the coercive effect of law, we do so only quires a two-thirds majority to, quote, payments, or bills that do not change with careful consideration and broad change Internal Revenue laws if they Internal Revenue laws, even if they agreement. Adoption of the tax limita- increase the Internal Revenue by more have revenue implications. tion amendment will bring needed re- than a de minimis amount. Of course, For purposes of determining whether lief to the American people. I urge the no one seems to have a good idea of a bill raises more than a de minimis passage of the resolution. what constitutes a, quote, Internal amount of revenue, only tax provisions Mr. Speaker, I reserve the balance of Revenue law or what exactly may be in the bill would be considered. Legis- my time. considered a de minimis amount. lation that is roughly revenue-neutral Mr. SCOTT. Mr. Speaker, I yield my- My office has contacted a number of would not be subject to a two-thirds self such time as I may consume. tax lawyers, including some of the wit- vote. For example, a bill that closed a Before I begin discussing my con- nesses who testified before the Sub- tax loophole would not require a two- cerns with the specific amendment, I committee on the Constitution. None H1482 CONGRESSIONAL RECORD — HOUSE April 15, 1997 of them has a clear idea as to what will user fees, voluntary Medicare pre- would take a two-thirds majority to or will not be considered a, quote, In- miums, the Part B premium, and bills correct it. For this reason, we should ternal Revenue law. The committee re- that do not change the Internal Reve- be calling this resolution the loophole port further fuels the confusion by nue laws even if they have revenue im- protection act. In addition to being stating that Internal Revenue laws are plications. vague and biased in its protection of laws both within the Internal Revenue On the question of de minimis, de corporate loopholes, this amendment Code and outside the Internal Revenue minimis is one-tenth of 1 percent, would be unworkable. Code. In other words, even the Commit- which, under the current Tax Code, There is a very good reason why tee on the Judiciary that reported the would be about $300 million a year. supermajorities are rare in our Con- bill does not have a clear idea of what Mr. Speaker, I yield back to the dis- stitution. They are rare because the will and will not be considered a, tinguished gentleman from Virginia framers of the Constitution learned quote, Internal Revenue law. [Mr. SCOTT]. from their experiences and the failed Mr. BARTON of Texas. Mr. Speaker, Mr. SCOTT. Mr. Speaker, I would say Continental Congress that excessive that the gentleman has indicated that will the gentleman yield? supermajority requirements are not to increase spending on Superfund Mr. SCOTT. I yield to the gentleman practical in an efficient government. would take a two-thirds majority, so from Texas. Supermajorities are only required for we are attacking the environment. Mr. BARTON of Texas. Mr. Speaker, a precious few actions, such as over- Also, if we label something a fee, it is I thank the gentleman for yielding, and riding a Presidential veto, impeach- not included. If we call it a tax, it is in- I want to tell the gentleman, when I ment or proposing constitutional cluded. am controlling time, I will be happy to In terms of de minimis, the gen- amendments to the States. These are yield. Last year we had a pretty good tleman from Texas [Mr. BARTON] has well-defined circumstances not open to dialog back and forth, and we have suggested that the one-tenth of 1 per- interpretation. enough time that we can do that. cent is de minimis. Our total budget, Unfortunately, there will always be Mr. Speaker, on the gentleman’s Mr. Speaker, is $1.6 trillion. One-tenth numerous interpretations on the ques- question of what will be covered, if the of 1 percent of $1.6 trillion is $1.6 bil- tion of whether or not a bill will ‘‘in- gentleman will continue to yield, I can lion. Jokes have been made about a bil- crease revenue more than a de minimis read exactly what would be covered. lion here and a billion there, but I cer- amount.’’ Mr. SCOTT. Mr. Speaker, I will con- tainly think that most people would The fact that we have not been able tinue to yield if the gentleman will ex- think that $1.6 billion is more than de to adhere to our own tax limitation plain what he is reading off of. minimis. But of course the courts rules should give us a fairly good idea Mr. BARTON of Texas. Mr. Speaker, would have to make that decision, and, of how problematic this constitutional I am actually reading off my own staff as the gentleman from North Carolina amendment will be to the body. briefing paper, but I am the sponsor of has pointed out, a staff memo to the In the 104th Congress, we had a rule the amendment. chief sponsor is not what the Supreme that required a three-fifths vote on Mr. WATT of North Carolina. Mr. Court will consider. bills involving Federal income tax in- Speaker, will the gentleman yield? Mr. Speaker, the confusion created creases. The story of the tax limitation Mr. SCOTT. Mr. Speaker, I will re- by this constitutional amendment will rule’s application in the last Congress gain my time and yield to the gen- create powers in a new bureaucracy, was one of waiver after waiver after tleman from North Carolina [Mr. such as the CBO, or cede Congress’ tax- waiver because many bills included WATT] very briefly. ing power to the court, because some- changes in the tax system that could Mr. WATT of North Carolina. Mr. one has to answer the questions that be classified as tax increases. Speaker, I would inquire of the gen- we have not answered. Some faceless The rule was waived for the 1996 tleman from Texas [Mr. BARTON], does bureaucrat punching numbers will have budget reconciliation report. It was the gentleman profess to be able to tell the power to determine how Congress waived for the Medicare preservation us what a constitutional amendment will consider bills. Will the court over- bill. It was waived for the Health Cov- means himself as opposed to trying to turn entitlement reform or cuts in cor- erage and Availability Act. clarify the language that he professes porate welfare because such initiatives In recent history, no major tax to be able to pull out of his own notes? were passed with less than a two-thirds changes, whether signed by a Demo- I suppose we are going to do this in a vote? We should not be ceding our pow- cratic or Republican president, passed court of law? ers to courts or unelected economists. both houses with a two-thirds majority Mr. BARTON of Texas. Mr. Speaker, Who will be appointed or anointed vote. If we could not function with a the short answer is yes, I do claim to with the power to decide the golden three-fifths requirement that included be a constitutional expert. question: Will a particular bill con- a waiver provision, how possibly could Mr. WATT of North Carolina. Mr. stitute an increase in the revenue more anyone think we could function with a Speaker, I just want to make clear than a de minimis amount? Last March two-thirds requirement that could only that that is what the gentleman is in the subcommittee, we heard one wit- be waived by war or by amending the doing here, because there is no defini- ness saying that this power should be Constitution. tion in this bill, and the problem we vested in one person who would have Mr. Speaker, amending the Constitu- are raising is, the gentleman from the power to control the legislative tion is serious business which should powers of Congress. Texas [Mr. BARTON] is not going to be not be conducted haphazardly. Some In addition, the complex and subjec- around every time this gets litigated in very tough questions have not come tive nature of economics makes it a court of law to be able to explain to even close to being answered; and I, clear that any interpretation will be the court what this constitutional therefore, urge my colleagues to act re- disputed, so who becomes the arbitra- amendment means. sponsibly and reject this tax day pub- tor of such disputes? Mr. SCOTT. Reclaiming my time, Mr. Mr. Speaker, the American public de- licity pageantry and vote ‘‘no’’ on Speaker, I yield to the gentleman from serves answers to these questions be- House Joint Resolution 62. Texas [Mr. BARTON]. fore, and not after, we have made a Mr. BARTON of Texas. Mr. Speaker, Mr. BARTON of Texas. Mr. Speaker, mess that cannot be cleaned up. What I yield 2 minutes to the distinguished revenue increases subject to the super- happens, for example, if we pass a con- gentleman from Tennessee [Mr. DUN- majority requirement include: Income troversial corporate tax loophole that CAN]. taxes, and I think we all know what a we estimated would have cost $500 mil- Mr. DUNCAN. Mr. Speaker, I rise in direct income tax is; estate and gift lion, only to find later that we made a strong support of this resolution; and I taxes; employment taxes, including So- mistake in our estimate and it will ac- thank the gentleman from Texas for cial Security and Medicare; and excise tually cost $5 billion? yielding me time. I am pleased to be taxes, such as Superfund, aviation, gas- one of the original cosponsors of this oline. b 1530 bill. Things that would not be included Although it would have taken a sim- A little over 2 years ago, President under the amendment would be tariffs, ple majority to pass the subsidy, it Clinton’s budget, in a footnote that April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1483 was often mentioned by Ross Perot, listening to this argument also, that in I want to dissuade all of my col- said the young people born that year 1952 corporate income taxes contrib- leagues, Mr. Speaker, and the Amer- would pay average lifetime tax rates of uted 32 percent of the Federal revenue. ican people, that this is not about tax- 82 percent. By 1992, corporate income taxes con- ation. This is about the equal represen- Paul Tsongas a well-respected mem- tributed a total of 9 percent of the tation that all of us fought so hard for ber of the other party who served for 10 total Federal revenue. and that our ancestors fought so hard years in the House and Senate, wrote a During that period of time when cor- to protect, the whole theory of demo- column about this and he called it an porate income taxes were becoming a cratic rule. incredible 82 percent; and he said that smaller and smaller and smaller and My colleagues on the other side are we were in danger of turning the young smaller part of the Federal budget, going to get up and tell us we are try- people into indentured servants for the many, many loopholes were put into ing to protect the American people. Government, and he predicted that in a our tax laws that provide substantial What they are doing is protecting their very few years we would have a war be- corporate tax benefits to corporations. corporate interests. We have seen it tween the generations. Now, if this amendment passes, if this over the last 40 years, a reduction in Already today the average person constitutional amendment passes, the amount corporations contribute to pays almost half of his or her income those loopholes that are currently in support the Government, and what in taxes and in paying the cost of regu- the law will require a two-thirds ma- they are doing is diminishing the right lations. Very few people really realize jority of this House to be removed from of every single individual voter in this how much they are paying. But when the law. country by saying, oh, no, your vote is you add up sales taxes, property taxes, So if there is any individual taxpayer not as important as somebody else’s gas taxes, excise taxes, Social Security in America, any person in America who vote in this body. taxes, it is a tremendous sum; income thinks that this bill is about protect- I have risen on the floor of this House taxes become a small part of the whole ing individual taxpayers, they had bet- to oppose every single constitutional burden. ter think again. What it is really about amendment that they have proposed. Unfortunately, for too many people, is protecting corporate tax interests They keep saying that they are con- too many people believe that if the who have already seen their percentage servatives. What is conservatism but to Government sends them back a small of the Federal revenues decreased over uphold the Constitution of our United refund, it is doing them some kind of a the last 40 years from 32 percent of our States? favor. revenues down to 9 percent. As many people have pointed out, This new conservative majority has Who was it that picked up the burden proposed 118 constitutional amend- today it takes two incomes to do what of that corporate tax reduction? It was one did just a few years ago. Today one ments in the last 2 years. This new individuals. So anybody who is suffer- spouse basically works to support the conservative majority brought four ing under the impression that this is Government, while the other spouse constitutional amendments to the floor for the benefit of individual taxpayers, works to support the family. of the House last year. That is an aver- Mr. Speaker, the people of this coun- dissuade yourself of that notion. It is age of four times more than any Con- try can spend their own money better just simply not the case. gress in the last 10 years. The second point I want to make on than than the bureaucrats can spend it They would have us believe that this this has to do with the constitutional for them. The easiest thing in the is about upholding some constitutional framework in which we operate, the world to do, Mr. Speaker, is to spend conservative principle. Defending the concept of majority rule. Every 10 other people’s money. We need to make Constitution as it is written is the con- years we are required by law to take a it harder for Government to take so servative notion, Mr. Speaker. I think census of the number of people in this much money from the people. we should reject this amendment and The Government at all levels, but country, and by constitutional law, to stand up for the power of individual particularly at the Federal level, is be- redistrict the entire Congress of the citizens in this country. coming increasingly arrogant and coer- United States for election purposes. Mr. CANADY of Florida. Mr. Speak- cive. We need to take this coercive so- The reason for that redistribution, er, I yield 3 minutes to the gentleman ciety that we have created today and and in that process some States that from Ohio [Mr. CHABOT], a member of turn it into a great and free society have gained population gain represent- the Committee on the Judiciary. once again. atives, some States that have lost pop- (Mr. CHABOT asked and was given We can do this if we leave to the peo- ulation over the last 10 years lose rep- permission to revise and extend his re- ple the power, the freedom to have resentatives, but the reason we go marks.) more control over their own money. We through that process is to assure that Mr. CHABOT. Mr. Speaker, I rise in need to require a two-thirds majority every single person in the United strong support of this taxpayer protec- vote to pass a tax increase. Very few States has equal representation in this tion amendment. Early in this century, people in this country think that taxes House of Representatives. Every single Congress passed a constitutional are too low. district in America is supposed to rep- amendment to make it easier for the Those who want to see the 82 percent resent approximately the same number Federal Government to tax people. The tax rate predicted in President Clin- of people. The reason we do that is be- 16th amendment authorizes a direct ton’s budget just 2 years ago should cause we believe in the whole concept Federal income tax. vote against this legislation. Those of majority rule. Now as we near the end of the 21st who want to hold down taxes should Every single Member of this body century we have some significant expe- vote for this resolution. who comes in here representing equal rience with heavy Federal taxation. I Mr. SCOTT. Mr. Speaker, I yield 8 constituencies, on almost every single think one inescapable conclusion we minutes to the gentleman from North item with the exception of four or five must draw from our Nation’s experi- Carolina [Mr. WATT]. things that were delineated in the ence is that the Federal Government Mr. WATT of North Carolina. Mr. original Constitution of the United does not find it difficult to raise taxes. Speaker, I thank my colleague for States, has an equal vote. Rather, it finds it all too easy. We need yielding time to me for the purpose of Mr. Speaker, what these cavalier to pass structural constitutional pro- debating the bill. gentlemen would like to do is to upset tections for the American taxpayers, to Mr. Speaker, we have heard a lot of that balance, to say to the American make it harder to raise taxes. discussion today about the fact or the people that their vote is less important b alleged fact that the supporters of this unless they are in the minority or ma- 1515 bill are trying to do the public tax- jority, depending on which side they Most of what goes on in this town in- payers a favor. I want to take issue happen to be on. Any time we require volves taking and spending other peo- with that. I want to do it in two dif- something other than a majority vote ple’s money. Political power deter- ferent ways. in this House, we are diminishing the mines how much money is taken away First of all, I want to say to my col- value of somebody’s vote out there in from people who earn it, and political leagues, and individuals who may be the public. power determines to whom that money H1484 CONGRESSIONAL RECORD — HOUSE April 15, 1997 is given. People who have to spend they are doing something to save them $52 billion. So that is an average of $88 most of their time earning a living for money or to save the Government. It is billion increase in Federal revenues themselves and to support their fami- again a sham. There is much that we during the Clinton administration. lies do not have very much time or could be doing in this body that is im- If we go back to the Bush administra- very much say over how the taxing and portant, and obviously we are not. tion, the average was $65 billion, the spending goes on in this town. And But it is important to note what high year being, and the low year being they get ripped off time and time might have happened had this kind of a $23 billion. If we go back to the last 10 again. silly constitutional amendment been years, to include the last 2 years of the For example, just look at the so- agreed upon earlier. Social Security Reagan administration, we still have called market access program under would now be bankrupt. It would not an average increase, including the which money is taken away from tax- have been saved in the 1984 legislation Clinton years, the Bush years and the payers and given to corporate trade as- which did not receive a two-thirds last 2 years of President Reagan, $65 sociations to advertise their products vote. As the Republicans have repeat- billion a year. We do not have a prob- overseas. Sure, it is a ripoff, a $100-mil- edly tried to raise the taxes on the sen- lem of Federal revenues going up. We lion-a-year ripoff. But the big corpora- ior citizens for Medicare in their own have a problem limiting the revenues tions that benefit from it have real in- rule which required two-thirds last going up in terms of tax increases and centives to lobby here in Washington year, they had to waive the rule to in- limiting the ability to increase spend- to keep the transfers going and the crease the premiums on Medicare bene- ing. money coming from the taxpayers, and ficiaries. That was a Republican move. I would point out again, in the origi- the taxpayers get hit. The health coverage availability and nal Constitution there was a zero; In recent years to pay for programs affordability bill would have imposed there was zero income tax, 100 percent like this, the Federal Government has additional taxes on withdrawals from prohibition against any direct tax, Ar- raised taxes on the gasoline people buy. medical savings accounts, an equally ticle I, Section 9. The 16th amendment It has raised taxes on working seniors. silly idea, but again the Republicans to the Constitution, 1913, changed that. It has raised taxes on small businesses. had to waive their own rule. The Re- We need to go back, maybe not 100 per- The Government’s share of the average publicans could not operate, they do cent prohibition as the Founding Fa- American family income has gone up, not know how to operate the House thers, but a two-thirds vote require- when it was born, from around 5 per- with a two-thirds rule they have in ment would make it more difficult to cent, now it is 25 percent. That is a 500- here now. If they had to read the Con- raise taxes. I would point out, if we percent increase just during my life- stitution without moving their lips, I would have had a two-thirds require- time. We all know the Federal Govern- suspect they would be in real trouble. ment on the books, 4 of the last 5 ment has not gotten 500 percent better. The House waived or ignored the two- major tax increases totaling $666 bil- The Government taxes people to pay thirds rule each time it would have ap- lion would not have occurred. I would for the entertainment of rich elites in plied. hope that we can talk about the sub- the NEA. The Government taxes people This resolution is far more restric- stance of the amendment and what it to build roads through national forests tive and it is a bad idea through and would do, which would make it more for private lumber companies. The through. It is a gimmick. It is show- difficult to raise taxes. Government taxes people in order to boating. It denigrates the Constitution. Mr. CANADY of Florida. Mr. Speak- subsidize the profits of various utility We were all sent here to make tough er, I would inquire of the Chair con- companies. choices, some unpopular. Occasionally cerning the amount of time remaining Those who argue that we cannot have it is necessary to raise revenues in this on each side. structural protections in the Constitu- country. We would no longer have air- The SPEAKER pro tempore (Mr. SOL- tion requiring a supermajority here ig- port traffic control. Our Nation’s OMON). The gentleman from Florida nore other similar protections: the re- transportation infrastructure would [Mr. CANADY] has 493⁄4 minutes remain- quirement that a bill pass through two disappear. The Medicare Social Secu- ing, the gentleman from Virginia [Mr. different Houses of Congress, for exam- rity Program would no longer be able SCOTT] has 673⁄4 minutes remaining, and ple; the power of the President to veto to be kept viable. All of these would be the gentleman from Texas [Mr. BAR- legislation; it takes two-thirds to over- the outgrowth of this cockamamie idea TON] has 26 minutes remaining. ride a Presidential veto; the constitu- that has come up and would be much Mr. CANADY of Florida. Mr. Speak- tional limitations restricting Federal better if we would just pledge alle- er, I yield 1 minute to the gentleman power to specifically enumerated giance a few more times today in honor from Nevada [Mr. GIBBONS]. areas. All of these are valuable protec- of those good citizens who do pay their Mr. GIBBONS. Mr. Speaker, I thank tions against congressional abuse. taxes, which happens to be mostly the the gentleman for yielding me the Oppressive increases in Federal tax- lower middle income folks, I might time. ation have got to stop. We cannot keep add, and not the rich folks who can Mr. Speaker, I rise here today in sup- increasing the frequency with which take advantage of the many loopholes port of House Joint Resolution 62, the Congress goes back to the well and that we have built into the system. tax limitation amendment. As a pri- raises taxes over and over again. It is I urge my colleagues to ignore this, vate citizen in Nevada, I led an effort too easy for the Government to raise to vote no, to pretend that it did not to amend our State constitution with taxes on hard-working American peo- happen, to go back home and say that this very same language. I am proud to ple. I urge passage of this protection there are important things that this say that after passing overwhelmingly for the American taxpayer. Congress could do but they are not in 2 consecutive elections, and may I Mr. SCOTT. Mr. Speaker, I yield 3 being presented to us by the Repub- say both with over 70 percent support minutes to the gentleman from Califor- lican majority. of the voters, that initiative, the Gib- nia [Mr. STARK]. Mr. BARTON of Texas. Mr. Speaker, bons tax restraint initiative, as it be- Mr. STARK. Mr. Speaker, I thank my I yield myself 2 minutes. came known, has become law in Ne- distinguished colleague for yielding me Mr. Speaker, I want to speak in this vada, a policy that says, we need to put the time. 2-minute period about the tax issue di- a leash on runaway spending and tax Mr. Speaker, I could not begin to rectly. I notice that my distinguished increases. The Federal Government match the eloquence of the previous colleagues on the other side do every- needs to be put on a fat-free diet by speakers on this side who would sug- thing but talk about the direct issue, making it more difficult to raise taxes, gest to the American public that they which is taxes. In the 4 years of the we shift the focus of the balanced budg- are at grave risk of having their Con- Clinton administration, including this et debate to where it needs to be, on stitution damaged by a capricious ma- fiscal year 1997, Federal revenues have the spending. jority who would today—in kind of a gone up an average of $88 billion a Mr. Speaker, the facts speak for television stunt that is hardly worthy year, $88 billion. The high year was $104 themselves. States with similar super- of a second rate talk show host—try billion; the low year, the year that we majority requirements for tax in- and convince the American people that are currently in, it is estimated to be creases experience greater economic April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1485 growth, lower taxes, and reduced notice until we pointed it out to them Code, it says the internal revenue of growth in spending. apparently would have required a two- the United States, small ‘‘i’’ small ‘‘r’’. Mr. SCOTT. Mr. Speaker, I yield 7 thirds vote to cut the capital gains tax. So when the gentleman says this does minutes to the gentleman from Massa- Because under their view, cutting the not affect the Internal Revenue Code, chusetts [Mr. FRANK]. capital gains tax increases revenue, that is wrong. Mr. FRANK of Massachusetts. Mr. and their amendment was worded so we Finally, the CPI does directly affect Speaker, I could not help but notice would have needed a two-thirds vote to the brackets. If we reduce the CPI, the somewhat pained look on the face cut the capital gains tax. then we reduce the indexation of of my friend from Florida, when the We pointed that out to them so we brackets and the result is higher reve- Chair told him he had 49 minutes re- have a new version of the amendment nues. maining. Time goes quickly when you which takes care of that. But there are Mr. BARTON of Texas. Mr. Speaker, are having fun, I would have to say to other problems. will the gentleman yield? the enthusiastic advocate of this con- There are Members who have argued Mr. FRANK of Massachusetts. Mr. stitutional amendment. that one thing we should do to balance Speaker, I will be glad to yield to the Mr. Speaker, we should note that the budget is to cut back on the gentleman from Texas if he wants to today is the day when under the law of Consumer Price Index and what it trig- appeal to the President to get him out the country, the Republican majority gers. I am not in favor of that as a of this one again. Mr. BARTON of Texas. Mr. Speaker, should be giving us their budget. We whole; some Members are. But I under- I would say to the gentleman, that did have no budget. They do not want to stand this: The Consumer Price Index not state my preference. I simply said present the budget, and what we have controls tax brackets. The Consumer what the amendment would cover and today is a diversion, a proposal that is Price Index determines tax bracketing. not taken seriously by all but a hand- would not cover. If we were to reduce the Consumer Mr. FRANK of Massachusetts. Mr. ful on the other side, that no one Price Index, as the Boskin Commission Speaker, reclaiming my time, let me thinks is going to go anywhere, and it recommended, we would be increasing be clear. The gentleman did not mean, is an effort to divert people’s attention tax revenues because we would be and I apologize to the gentleman, I will from the fact that they have failed changing the bracketing in a way that not in the future confuse what he says their legislative responsibility to bring brought in more revenue. So if this with what he believes, if that is what I forward a budget. constitutional amendment were part of am supposed to interpret. It did seem The problem is not for them that it is the Constitution, it would then take to me like he was saying we will let the too easy to raise taxes. It is that for all two-thirds to reduce the CPI. President do that one. of their rhetoric, it is too hard to cut Now, if we had another version of In fact, however, the point is still spending. The gentleman from Texas, this coming up they would probably valid. This amendment does not deal the author of the amendment, said if change it to do that. The problem is, with the Internal Revenue Code, big this amendment had been in effect we we cannot put into the Constitution ‘‘I’’, big ‘‘R’’, big ‘‘C’’. It says the ge- would have $666 billion less in revenue. this sort of procedure. But there is a neric, the internal revenue of the Unit- Well, I assume when those who advo- more profound problem. This bespeaks ed States. And cutting the CPI would cate this amendment would show us a majority that does not trust the increase the internal revenue of the how they could cut $666 billion a year American public. This bespeaks Mem- United States, and it would clearly re- out of spending. But they will not; they bers who do not think they can get a quire a two-thirds vote. will not even try. majority. The point is it should not require a What we have is the emptiest rhet- Mr. BARTON of Texas. Mr. Speaker, two-thirds vote. Democracy should be oric imaginable, all of this breast beat- will the gentleman yield? allowed to function. Today there is not ing about cutting spending but not a Mr. FRANK of Massachusetts. I yield a majority in this country for raising nickel cut. Where is their budget? to the gentleman from Texas. taxes. There might be a majority for If, in fact, they believe that we have Mr. BARTON of Texas. Mr. Speaker, reducing taxes. overtaxed and that the remedy is to re- the CPI is not part of the Internal Rev- Suppose 10 years from now there is a duce spending, why have they failed enue Code so it would not take a two- different majority. Suppose 10 years their statutory responsibility to bring thirds vote. In fact, it would not even from now people have changed their forward a budget? take a vote. We could do that by execu- views? We have had economic growth; What happened was a few years ago, tive order or by regulation of the De- they want to deal more fully with cer- a year and a half ago, 1995, the Repub- partment of Labor. tain things. They, in fact, decide they lican majority found out that there is Mr. FRANK of Massachusetts. Mr. have to get that debt down and they a great inconsistency between their Speaker, it is interesting to have the would be willing to vote a tax increase talk about reducing spending in gen- advocate that says you need a two- dedicated to reducing the national eral and their interest in reelection in thirds vote of the Congress to raise debt. particular. The public did not like it taxes say he wishes it could be done in- That ought to be a decision that the when they shutdown the Government. stead by Executive order, because un- majority of the American people could They are not prepared to live up to the derstand, first of all, that changing the take if they want to, and this is one rhetoric. They are not prepared in fact CPI the way the Boskin Commission more obstacle that we are trying to put to propose those spending reductions. said would increase taxes. in the way, those who support this, in So we sit around here waiting, I b the path of a majority. guess, for heaven-sent spending reduc- 1530 The majority today ought to do what tions. We go pass the time when we are It would increase the rate of taxation it thinks is right. If it wants to reduce supposed to do the budget, and they on people because of what it would do taxes, it should reduce taxes. If it talk about a tax limitation amend- with the brackets. wants to keep them the same, it should ment. The gentleman from Texas, not sur- keep them the same. If it wants to cut There are a couple of problems with prisingly, said I do not want to do that; spending, it should cut spending, al- the amendment on its own terms. In let the President do that by executive though the majority apparently does the first place, with this amendment, order. So on the one hand he wants it not want to do that, because that we have to be very careful because to be a two-thirds vote, and on the would require a budget that requires every time we turn around it is a new other hand he wants the President to tough political discussions, and they form. do it by Executive order. want to avoid those. The fact is, it is very difficult to put He may not have read the most re- But what we should not do is to say, into the Constitution legislation of cent version of his amendment, because because we have a majority today, we this sort. Defining taxes for this pur- it does not say the Internal Revenue will change the basic rules so that 10 pose is difficult. Last week they got Code. It quite specifically, as we were years from now, if a new majority said through the Committee on the Judici- told in the Committee on the Judici- things have been pretty good economi- ary a version of this that they did not ary, does not say the Internal Revenue cally and we could afford a tax increase H1486 CONGRESSIONAL RECORD — HOUSE April 15, 1997 to reduce the deficit, we should not re- House Joint Resolution 62. This pro- about senior citizens. The Senior Coali- quire that to take two-thirds. posal would amend the Constitution so tion, United Seniors Association, U.S. Mr. CANADY of Florida. Mr. Speak- as to require a two-thirds supermajor- Chamber of Commerce, the National er, I yield 2 minutes to the gentleman ity vote in both Chambers of Congress Tax Limitation Committee, and I could from Alabama [Mr. RILEY]. as a prerequisite for passage of any leg- go on and on. People want us to bring Mr. RILEY. Mr. Speaker, I rise today islation which would raise taxes by some discipline to this House and dis- in strong support of the American tax- more than a de minimis amount. cipline to the taxation that takes away payer and in support of the tax limita- This resolution covers income taxes, the money that they work so hard for. tion amendment. estate and gift taxes, payroll taxes, and Mr. Speaker, I thank the gentleman To put it simply, taxes on Americans excise taxes. It does not cover tariffs, from Virginia for yielding me this are too high. The average American user fees, voluntary premiums, and time. taxpayer works until May 7 to earn other items which are not part of the Mr. BARTON of Texas. Mr. Speaker, enough income to pay an entire year’s internal revenue laws. Currently, just I yield 3 minutes to the gentleman tax. When we factor in local and State such a rule is in place in the House to from Texas [Mr. SESSIONS], the distin- taxes, U.S. taxpayers will spend more make certain that we all go on record guished gentleman from the Fifth Dis- time working for the Government than when a tax increase is proposed. How- trict and one of the whips in this effort for their own families. Clearly, taxes ever, this rule does not apply to the to pass the amendment today. are out of control. U.S. Senate; it only applies this term Mr. SESSIONS. Mr. Speaker, I rise Mr. Speaker, the tax limitation to the House. today to support not only the gen- amendment will provide Congress with We are just asking to bring some dis- tleman from Texas, JOE BARTON, but the needed discipline to once and for cipline into the process. We are asking also the previous speaker, the gen- all hold the line on taxes. to make it a little bit harder to tax the tleman from the Fourth District of Today we have heard from the American people. This is a day to make Texas, the Honorable RALPH HALL. naysayers and the doomsdayers who it a little bit harder to tax the Amer- As the Congressman from the Fifth fear that the sky will fall if the tax District of Texas, I can tell my col- limitation amendment is passed. They ican people, the day when they are leagues that these gentlemen under- are rightfully concerned. This is be- parting with their money, 40 percent, stand and know not only what freedom cause so many in Washington still lack upper or lower, depending on their bracket or their area, of all the money is but also how to go about it. the courage to make the tough deci- Mr. Speaker, Republicans and Demo- sions, the tough decisions that today they have made all of last year. crats across the country ran on the will create a better America for tomor- The many good people in my district, promise to lower taxes for all Ameri- row. the 4th Congressional District, have The tax limitation amendment will been unified and very clear in commu- cans. The tax limitation amendment is indeed make it tougher for Congress to nicating to me their desire to see Con- important because it protects the raise taxes, and that is exactly why I gress balance the budget. The tax limi- American people from excessive taxes. support it. tation amendment would simply chal- It restores accountability to elected of- Mr. SCOTT. Mr. Speaker, I yield 5 lenge Congress to balance the budget ficials and forces Congress to prioritize minutes to the gentleman from Texas without gouging hard-working individ- how they spend the American people’s [Mr. HALL]. uals with regular tax increases. money. (Mr. HALL of Texas asked and was Contrary to some arguments made by Future generations deserve lower given permission to revise and extend pro-spending opponents of this resolu- taxes. Responsible leaders in the Fed- his remarks.) tion, the tax limitation amendment eral Government that only spends Mr. HALL of Texas. Mr. Speaker, I does not hamper efforts to close so- money on those things that are within rise in support of House Joint Resolu- called loopholes, because tax increases its constitutional mandate are critical tion 62, the tax limitation amendment. below a small amount are not subject to the success of not only today but Today is a day that a lot of hard- to the two-thirds requirement. our future. working Americans, honest and decent Those of us who are working toward If we believe that all Americans de- people, have come to view with a sense fundamental tax reform will not be im- serve to keep more of their hard-earned of despair, hopelessness, and some even peded either, because so long as the end dollars while paying less in taxes, then fear. It is not a sense of selfishness but result does not increase the tax burden, the tax limitation amendment is a rather a sense of disenfranchisement tax reform bills will not be subjected to positive change. If we want to promote with the process which causes so many the supermajority requirement. prudent financial responsibility and a millions of Americans to believe that The tax limitation amendment stronger, healthier economy by cutting Government spending and taxes are out makes good sense. It restores discipline off the supply of taxpayer dollars to of control. on a system which has spun out of con- Washington’s spending machine, then If we had had this amendment back 3 trol. Our constituents are overbur- the tax limitation amendment is the years ago, we would not have had the dened now by a system which has for right thing to do. largest tax increase in the history of years left the doors wide open for tax If we also believe that the Federal this country. If we had had this in 1986, increases to be slipped in as riders to Government should have more power when we had Chairman Rostenkowski all kinds of legislation. We have to re- and control over people’s lives and re- and President Reagan pushing for a tax verse our course and restore a sound sources, then the tax limitation bill, for a new tax reform act, we would business approach to the Government amendment makes our life more dif- not have had this. That is the worst by passing the tax limitation amend- ficult. If we believe that the American thing, in my opinion, that has hit this ment, thereby committing ourselves to people deserve more government inter- Congress since I have been up here. going on record so that our constitu- ference while they continue to pay Today we have an obligation to our ents can see us vote either yes or no close to 40 percent of their earnings to constituents to let them know that we when their pocketbooks are at stake. the Federal Government, then the tax are listening to what they say and that I am proud to be the lead Democrat limitation amendment is not a wel- we are willing to take some respon- on this bill, along with the gentleman come change. Tax increases are not the sibility by endorsing a very concrete from Mississippi, GENE TAYLOR, and I answer to any problem. A balanced step toward slowing the rate of growth urge all my colleagues to deliver some budget, a trimmed-back Federal Gov- in spending and moving closer always relief to the overtaxed and ernment, a healthy economy, and toward the goal of what we have all disenfranchised constituents today by meaningful tax reform are important. been seeking, what the President says voting the passage of the tax limita- Seventy percent of taxpayers support he wants, what the House and Senate tion amendment. a supermajority requirement for Con- say they want, and that is a balanced Mr. Speaker, we have people from all gress to raise taxes. I think it is time budget. walks of life who support this. We have that we as Republicans and Democrats Today we are asked to vote for or the American Conservative Union, the listen to America, listen to the tax- against the tax limitation amendment, Americans For Tax Reform. We talk payer, and listen to those who put us in April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1487 office. Let us do the right thing. I am Mr. NEAL of Massachusetts. Mr. this proposal is about the next elec- in support of the tax limitation amend- Speaker, today is a day that is dreaded tion. It is not about balancing the ment. by all Americans for one reason or an- budget. This proposal is how we once Mr. CANADY of Florida. Mr. Speak- other. Today, April 15, is commonly again can speak to the concerns and er, I yield 3 minutes to the gentleman known as tax day but in deference to qualms of wealthy Americans at the from North Carolina [Mr. COBLE], a val- my friend who just spoke a moment expense of middle and lower income ued member of the Committee on the ago, as he said, happy tax day, I think people. Time and again we have had op- Judiciary. a more appropriate description of this portunities to address this balanced Mr. COBLE. Mr. Speaker, I thank the initiative would be happy gimmick budget necessity, but instead we come gentleman for yielding me this time. day. All that is missing would be to up with superfluous issues like the one I had not planned on coming over have that individual who used to stand that is proposed today. here, because I am working on another in the well of the House with a TV The Founding Fathers examined matter known well to the Speaker, but Guide in his hand and an ice bucket on what majority rule meant. Why should I felt obliged to be here. one-third of the Members of this insti- Let us first admit what has gotten us his arm talking about term limits after having served for 18 years, that 12 is tution determine the fate of an initia- into this mess: Excessive spending for tive that is as important to the future the past 25 to 30 years. If more pru- good enough for the rest of us, and then we ought to talk about the balanced of this country as this one? Why should dence had been practiced in those days, one-third of the Members of this insti- folks, we would not be here talking budget amendment, how everybody on that side was thankful that it was de- tution be allowed to veto the long-term about this. That cow, however, is out of interests of this Nation? the barn, so now we have to play the feated. And then we talked about the line-item veto and they are once again I hear Members come to this well on hand that is dealt us. that side and talk about the conserv- I am not one in favor of rushing to in good shape because a Federal judge turned down that initiative. ative virtues that made this Nation the Constitution each time the whim strong. And in the same breath, we strikes me, but we live in an era today, This is about another gimmick, Mr. Speaker. That is what this initiative is have a constitutional amendment pro- Mr. Speaker, when activities occur reg- posed here to address every political ularly that would astound our Found- proposed for today. It is to call atten- tion to the failure of the majority to concern that they have. ing Fathers. Our time would be better served I was talking to one of my constitu- administer the House. We should be today speaking to balancing the budg- ents about 3 weeks ago, and she told speaking about balancing the budget et. Jefferson’s most prized student, me how much taxes she must pay on or today, and that is where our time James Madison, reviewed the question before today. This woman is not impov- should be more appropriately spent. of what constituted a majority in a leg- erished, but she is by no measuring We went through this exercise ex- islative body. They concluded, based stick wealthy. She would be lower mid- actly 1 year ago today, because, thank upon the bad experience of the Articles dle. The amount she told me almost goodness, rational minds prevailed and of Confederation where 9 votes were re- knocked me off my chair. the resolution fell 37 votes short of the quired of the 13 to raise revenue, that As imperfect as it is, my friends, majority required to change the Con- there is no doubt that the United it was a bad idea. stitution. Every time we do not like This proposal is about demagoguery, States of America is the greatest coun- something around this institution dur- try in the world, but oftentimes I won- it is about dividing this Congress, but ing the last 4 or 6 years, we suggest it goes to the main issue, the core der if other countries impose such that we ought to alter the Constitution hardships upon savings, upon invest- issue, of any legislative body, and that for short-term political gain. is the right of the majority, the simple ing, upon hard work as America does. Instead of holding this publicity Capital gains and estate tax. Let us majority, to set responsibilities every stunt today, Mr. Speaker, we ought to single day. And by any objective stand- call the estate tax what it is, the death be working on balancing the budget. tax. They are probably the two most ard, this proposal fails that measure- This resolution is not going to help in- ment. We should be spending our time lucid illustrations I could offer. The es- dividual taxpayers. But a balanced tate tax ought to be abolished. Forget today focusing on balancing the budget budget would help all of us today. If we and not upon these kind of superficial about reducing it or increasing the want to help taxpayers, we should be threshold, it should be abolished. It initiatives. enacting legislation like an expanded Mr. BARTON of Texas. Mr. Speaker, generates relatively little revenue individual retirement account. But in- when compared to total tax collec- I yield myself 4 minutes. stead we are debating an amendment Mr. Speaker, we have heard quite a tions. to the Constitution. It ought to be bit of dissemination about what the Tax day and the IRS are synony- done with these discussions in a serious mous. I look across this great hall and amendment may or may not cover. Let manner. me actually read the relevant part of see my friend from Ohio, who is prob- This proposal that we are offering ably the most outspoken critic of the the amendment, section 1. Any bill, today would offer a change in revenue resolution or other legislative measure IRS. And I am not saying that all IRS if it is determined at the time of adop- agents and employees are no good; I am changing the internal revenue laws, tion in a reasonable manner prescribed and I want to emphasize, changing the not saying that at all. I am certain by law, not to increase internal reve- there are many who are good Federal internal revenue laws, shall require for nue by more than a de minimis final adoption in each House the con- employees. But I am equally certain, amount. This resolution does nothing Mr. Speaker, that there is much heavy- currence of two-thirds of the Members but compound our current budget handed activity, there is much yanking of that House present and voting unless stalemate and debate. taxpayers around, there is much in- that bill is determined at the time of Twenty years ago I was standing in a adoption and in a reasonable manner timidation that flows from the IRS to classroom teaching American history taxpayers who are then placed in vul- prescribed by law not to increase the to high school students and to college internal revenue by more than a de nerable positions. Such activity is in- students. I value the Constitution. I tolerable and inexcusable and should minimis amount. For purposes of de- tried to pass that on to my students. not be allowed to be practiced. termining any increase in the internal The Constitution requires a two-thirds revenue under this section, there shall b 1545 majority vote in the House in only be excluded any increase resulting Finally, the more difficult we can three instances: overriding a Presi- from the lowering of an effective rate make it to increase taxes, the better dent’s veto, submission of a constitu- of any tax. On any vote for which the all America will be served. tional amendment to the States, and concurrence of two-thirds is required In conclusion, Mr. Speaker, I say, expelling a Member from the House. under this article, the yeas and nays of happy tax day, America. These instances differ substantially the Members of either House shall be Mr. SCOTT. Mr. Speaker, I yield 5 from the issue before us today. entered on the journal of that House. minutes to the gentleman from Massa- Mr. Speaker, I have to tell my col- So in plain English, it takes a two- chusetts [Mr. NEAL]. leagues today as we begin this debate, thirds vote to raise Federal income H1488 CONGRESSIONAL RECORD — HOUSE April 15, 1997 taxes. Right now there is $5.7 trillion of Mr. CANADY of Florida. Mr. Speak- is the taxpayer. I think they just have personal income in this country, of er, I yield 4 minutes to the gentleman a train coming at them, they are on which about $2.6 trillion is considered from Ohio [Mr. TRAFICANT]. the track and they are looking not just to be taxable. If we came to the floor of (Mr. TRAFICANT asked and was for some relief, they are looking for the House and tried to raise the Fed- given permission to revise and extend some justice. eral income tax rate 1 percent, that his remarks.) I support this constitutional amend- would be between $26 billion and $57 Mr. TRAFICANT. Mr. Speaker, we ment. I applaud the efforts of the gen- billion a year. It would take a two- have withholding taxes, income taxes, tleman from Texas [Mr. BARTON] and thirds vote to do that, in plain simple sales taxes, excise taxes, liquor taxes, those who have brought it forward. I English, a two-thirds vote to raise per- ticket taxes. We even created a surtax doubt if it will become law. You know sonal income taxes even 1 percent. So once. We taxed tax years ago. We that and I know that. But if we make let there be no mistake. That is what coined recently a retroactive tax. We some common sense here, we would re- we are trying to do, make it more dif- taxed before the tax really would start ward work. The American people are ficult to raise income taxes. so the tax did not look as bad as when taxed off and rightfully so. Members do not have to take some it started. Mr. SCOTT. Mr. Speaker, I yield 4 Congressman’s word for this that it Mr. Speaker, how many ways can minutes to the gentleman from Massa- might work. They do not have to take Congress raise taxes? I would say if chusetts [Mr. DELAHUNT]. Congress was as creative in creating a professor’s word that it might work. b 1600 We have 14 States that have this in jobs, we would not have any problem with taxes and any problem with reve- Mr. DELAHUNT. Mr. Speaker, I rise their State constitution or in their in opposition to the bill. State laws. There are 4 States that nue. We would have no deficit. The truth of the matter is today is The Framers of the Constitution have passed it since last year, Mis- tax day. The American people are were very practical people, and most souri, Nevada, Oregon, and South Da- taxed off. We are not talking about the held profound beliefs about democracy, kota have passed a supermajority re- old taxes, and the possible new taxes. but their goal was above all to design a quirement, in most cases a two-thirds What about the hidden taxes that seem system of government that would supermajority requirement, since last to creep up on us? But I just take a work. They recognized that certain key year, and the total is 14 States, includ- look at the whole scheme. Here is the questions such as treaty ratification, ing the largest State, the great State way it is in America. conviction and impeachment trials or of California, which has had this on the If you work hard, you get hit on the expulsion of a Member of Congress de- books since 1978. In those States that head and you pay a lot of taxes. If you mand more than the customary major- have it, in these 14 States, there are do not work, the Government sends ity. But with respect to the normal op- certain facts that are true in every you a check. Beam me up. Congress de- eration of government, they provided State. bates today corporation taxes, and in all cases for a simple majority vote. What are those facts? In States that more corporation taxes. My God, they They made no exception for taxation. have a supermajority for a tax in- can move to Mexico and pay no taxes. Pause and reflect for a moment: They crease, taxes go up. We are not saying Why stay here the way it is? made no exception even for declara- you would not prohibit any tax in- We should be incentivizing and tions of war. Mr. Speaker, what they crease, but they go up more slowly: 102 strategizing with the Tax Code, a Tax rightly feared was that a supermajor- percent in tax limitation States versus Code that is so cumbersome you need ity requirement would give minorities 112 percent in States that do not have three accountants and two attorneys a veto over the political process. any kind of tax limitations. That is a and, by God, if you get audited they As Madison wrote in The Federalist 10 percent difference. Ten percent at will all run for the hills and say they papers, ‘‘It would be no longer the ma- the Federal level would be over $100 did not tell you those things. You know jority that would rule; the power would billion a year. it and I know it. Our Tax Code kills be transferred to the minority. An in- In the States that have tax limita- jobs; kills, in fact, investment; rewards terested minority might take advan- tion, consequently State spending goes dependence; penalizes achievement, tage of it to screen themselves from eq- up slower, 132 percent versus 141 per- and in many cases treats the taxpayer uitable sacrifices to the common cent. That is a 9 percent difference. like a second-class citizen. In fact, in a wheel, or, in particular emergencies, to And because the State spending is civil tax court, and the Republicans extort unreasonable indulgences.’’ going up more slowly, the State econo- should have dealt with the issue, a tax- Madison could have been describing mies, the private sector economies, payer carries the burden of proof this the very amendment before us today. It grow faster, 43 percent versus 35 per- day against an accusation made by the would give a veto over revenue bills to cent. And because the economies are Government, if you want to talk about a minority of Members of either House. growing faster in those States, employ- Constitution. It would enable Members of Congress ment is growing faster, 26 percent ver- I think if the American people had a representing one-third of the popu- sus 21 percent, or a 5 percent dif- voice in this debate, you know what lation or Senators chosen by one-tenth ference. they would say? Tax this, Congress. of the population to block revenue Again, in plain English, tax limita- They are fed up. I think this is a simple measures supported by the vast major- tion works. Supermajority require- measure. It deals with income. I am ity of Americans. It would give these ments for tax limitation actually not one to vote for constitutional minorities enormous leverage in an works. If it works in these States, Ari- amendments. But quite frankly, how emergency to extract concessions in zona, Arkansas, California, Colorado, many ways can we tax people? And the exchange for their support. Delaware, Florida, Louisiana, Mis- American people are sitting back wait- The proposed amendment pays lip sissippi, Missouri, Nevada, Oklahoma, ing for someone in the Congress to do service to this concern by allowing the Oregon, South Dakota, and Washing- something. two-thirds requirement to be waived in ton, it will also work in Washington, I want to give credit to the Repub- the event of war, yet it would probably DC, at the Federal level. licans. They are trying. But let me say be easier to obtain a two-thirds vote to Again, we are not trying to make it this. There is an awful lot more that raise taxes during wartime than in my impossible to raise income taxes; we could be done. I suggest changing our other perilous circumstances. The bill are just trying to make it more dif- Tax Code, rewarding work, not makes no provision at all for hurri- ficult. When the time comes to vote on nonwork, giving people more of their canes, floods, terrorist attacks or other this, just keep in mind a 1 percent in- income, by cutting income taxes and localized disasters, let alone a severe crease in personal income tax is going creating a consumption tax, get every- economic crisis or a breakdown in the to result in $26 billion to $57 billion a body in America participating, even financial system itself. Furthermore, it year increase in Federal revenue, and those deadbeats that avoid the pay- would make it virtually impossible to as I pointed out earlier, Federal reve- ment of income taxes, folks. eliminate corporate subsidies and other nues have gone up an average of $88 bil- But I think there is one element that loopholes in the tax system. Corporate lion a year the last 4 years. is left out of this debate, and I think it welfare would be difficult to reform. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1489 The proponents of this amendment The gentleman from Massachusetts This constitutional amendment can seem willing to accept these con- used the term extortion when he talked add to the deficit. Normally, when rev- sequences, for they rejected a series of about minorities. No, Mr. Speaker, the enue raisers and spending provisions amendments in committee which extortion has taken place when this are matched to ensure that a piece of would have addressed at least some of Government has stuck its hands into legislation is paid for when it is passed, these concerns. They also seem deter- the collective wallets of hard-working they do not match exactly, and they mined to repeat past mistakes. American taxpayers and always, al- rather yield some slight differences I was not a Member of this House ways, and again always ratcheted up and are used to reduce the deficit. when the current majority took con- their taxes, taking more and more to Reading this legislation, it seems to trol in 1995, but I know the House the point now where the average Amer- me that this could no longer happen. adopted a rule at that time requiring a ican family spends more in taxes than So this amendment precludes a peo- three-fifths majority to raise taxes. on food, shelter, and clothing com- ple or authors of the bills that they Unfortunately, having created this bined, when the average American fam- want to adjust their spending upward rule, the majority found it impossible ily who in 1948 sent only 3 percent of so to avoid that they will adjust their to govern in accordance with it, and it its income in taxes to the Federal Gov- spending upward to avoid a majority, a was repeatedly waived or ignored. ernment, at a time last year sent al- supermajority requirement. Obviously Today the majority invites us to most one-quarter of its income. this makes no sense. graft this failed rule with two-thirds No, the wisdom is found in article V This amendment, and what I am try- vote onto the Constitution of the Unit- of the Constitution, which gives us the ing to say is this amendment would re- ed States where it cannot be waived right, indeed the responsibility, to quire a supermajority to close down and it cannot be ignored, and this is an move against those procedures in gov- egregious tax shelters, to take cor- invitation that we should and must de- ernment which have proved trouble- porate subsidies that are antiquated, cline. some, to say the least, more than both- not used anymore or are abused, and Mr. CANADY of Florida. Mr. Speak- ersome, which had proven to be real take those and say, ‘‘You can’t elimi- er, I yield 4 minutes to the gentleman problems for real Americans. That is nate these, you can’t eliminate tax from Arizona [Mr. HAYWORTH]. shelters unless in fact you were doing Mr. HAYWORTH. Mr. Speaker, I the wisdom of our Founders found in article V and in the wake of the 16th that to pay for somebody else’s tax thank my colleague from Florida for shelter, not to reduce the deficit.’’ This the time, and I welcome the gentleman amendment to the Constitution, which allowed for the direct taxation of in- absolutely once again makes no sense. from Massachusetts to this body. In Let us go into another everyday kind come, which allowed for Washington to the spirit of bipartisanship, I think it of housekeeping type of thing that we reach into pockets of average hard- is great for us to be able to debate do around this Congress, and that is working Americans. these issues and to take a look at some authorization. We have reauthorization We must find a counterbalance, and different perspectives. bills before us this year that we cer- the wisdom is found in this amendment I appreciated the citation of a tainly hope we can pass, Superfund, that would require a supermajority, as quotation from James Madison, who very important to the environment. occurs now in my home State of Ari- perhaps more than any one individual Let us do the Superfund legislation; as zona, to restrain the rate of growth of is responsible for the Constitution of I read this legislation, would take a government because, as history has the United States. I would also try to supermajority. put at ease the mind of my good friend shown us, the easiest thing in the ISTEA. We finally have something to from Ohio who rose in support of this world to do is raise taxes. The toughest be happy about. We are going to ad- amendment who said he was not that thing in the world to do is to teach this dress the whole situation of transpor- fond of voting for constitutional Government to live within its limits to tation in this country. We look at this, amendments. He was somewhat reluc- allow the American people to hold onto and if my colleagues read the legisla- tant. Certainly our friends in opposi- more of their hard-earned money and tion as I am reading it, it looks to me tion to this amendment will readily send less of it to Washington. like we would have to have a super- note the veracity of article V of the So, Mr. Speaker, it is in that spirit majority do, reauthorize, the ISTEA Constitution, which gives us as the that I wholeheartedly endorse this bill. people of the United States the ability amendment to the Constitution, and I This whole situation says to me we from time to time to amend this Con- rise in strong support, and I fervently are in an area that is controversial stitution. hope for its adoption in this body enough, but let us not kill good legisla- Indeed I would only take issue with today. tion before we even write it. And while one observation of the gentleman from Mr. SCOTT. Mr. Speaker, I yield 4 we are talking about every day and Massachusetts when he quoted James minutes to the gentlewoman from Con- rules of the House, let us talk about Madison, and that would be this: that necticut [Mrs. KENNELLY]. rules that were passed in the last Con- when James Madison penned those Mrs. KENNELLY of Connecticut. Mr. gress that in fact said we had to have words at the outset of this Nation, he Speaker, I rise in opposition to this a supermajority to do this very thing did not have to deal with the 16th constitutional amendment. Everything as a rule of the House. What happened? amendment to the Constitution that is in the eyes of the beholder, but it is The majority could not abide by it. led to the direct taxation of personal very hard for me to understand how They had to waive it time after time income. Indeed those who would wrap one looks at a very serious situation after time. themselves in the Constitution and like this and then sets a rule of de- So I am saying it is OK if my col- talk glowingly about preserving the in- mand, two-thirds vote to do something leagues want to waive a rule; they are tegrity of this document have to deal on this floor about taxes in a democ- in the majority. On the other hand, if with that essential fact. For if it were racy that is usually the majority rules, we pass a constitutional amendment such a great and good idea, if it were and it has kept us pretty well in good that demands a supermajority, we can- the intent of the founders to directly shape for the last 200 years. not waive a constitutional amendment. tax income, then they would have in- But I would like to say a few words. So I stand here fully understanding cluded that in the body of the Con- I noticed the gentleman from Ohio, one that this is tax day and that we have to stitution or in those first few amend- of the strongest advocates of this con- address these issues. ments known as the Bill of Rights. stitutional amendment still said it In 1986 we reformed the Tax Code. We No, Mr. Speaker, the wisdom of our would not pass. He knew why. Exactly did some good things. We took 6 mil- Founders comes from the fact that a year ago today we had this same con- lion people off the Tax Code. We made they realized from time to time be- stitutional amendment before us, and it simpler. We reduced the margin. We cause governments are constituted of we have done nothing about it until did some bad things. We authored a men who attempt to make laws that this year when it is rolled out again as minimum tax. Oh, my heavens, to there would be abuse, there would be another public relations type situation. wrestle with that was impossible. Pas- abuse of the electorate, there would be But there are some serious things sive loss rules; they were much too abuse of the citizenry. that are involved in this amendment. complicated. H1490 CONGRESSIONAL RECORD — HOUSE April 15, 1997 It is time that we do tax reform Combest Hinojosa Morella Stearns Thune Watts (OK) Condit Hobson Murtha Stenholm Thurman Waxman again. We should do tax reform, we Cook Hoekstra Myrick Stokes Tiahrt Weldon (FL) should not attack those working for Cooksey Holden Nadler Strickland Tierney Weldon (PA) the IRS. Today they are working the Cox Hooley Neal Stump Torres Weller last couple of weeks, and they will con- Coyne Horn Nethercutt Stupak Traficant Weygand Cramer Hostettler Neumann Sununu Turner White tinue to work for us to collect our Crane Houghton Ney Talent Upton Whitfield taxes to run this country. We need tax Crapo Hoyer Northup Tanner Velazquez Wicker reform, we need simplification, but let Cubin Hulshof Norwood Tauscher Vento Wise us do it in the right way. These ploys Cummings Hunter Nussle Tauzin Visclosky Wolf Cunningham Hutchinson Oberstar Taylor (MS) Walsh Woolsey are overused, overdone, and we should Davis (FL) Hyde Obey Taylor (NC) Wamp Wynn absolutely not pass this amendment. Davis (IL) Jackson (IL) Olver Thomas Waters Yates The SPEAKER pro tempore (Mr. SOL- Davis (VA) Jackson-Lee Ortiz Thompson Watkins Young (AK) Deal (TX) Oxley Thornberry Watt (NC) Young (FL) OMON). Pursuant to the order of the DeFazio Jefferson Packard NOT VOTING—20 House of today, further consideration DeGette Jenkins Pallone of House Joint Resolution 62 will be Delahunt John Pappas Bilbray Inglis Rangel postponed until after disposition of the DeLauro Johnson (CT) Parker Carson Istook Sawyer DeLay Johnson (WI) Pascrell Conyers Kilpatrick Schiff two motions to suspend the rules on Dellums Johnson, E. B. Pastor Costello King (NY) Souder which proceedings were postponed ear- Deutsch Johnson, Sam Paul Danner Lowey Towns lier today. Diaz-Balart Jones Paxon Flake Manton Wexler Dickey Kanjorski Payne Hilleary Owens f Dicks Kaptur Pease Dingell Kasich Pelosi b 1632 ANNOUNCEMENT BY THE SPEAKER Dixon Kelly Peterson (MN) So (two-thirds having voted in favor PRO TEMPORE Doggett Kennedy (MA) Peterson (PA) Dooley Kennedy (RI) Petri thereof) the rules were suspended and The SPEAKER pro tempore. Pursu- Doolittle Kennelly Pickering the bill, as amended, was passed. ant to clause 5, rule I, the Chair will Doyle Kildee Pickett The result of the vote was announced Dreier Kim Pitts as above recorded. now put the question on each motion Duncan Kind (WI) Pombo to suspend the rules on which further Dunn Kingston Pomeroy A motion to reconsider was laid on proceedings were postponed earlier Edwards Kleczka Porter the table. today in the order in which that mo- Ehlers Klink Portman Ehrlich Klug Poshard f tion was entertained. Emerson Knollenberg Price (NC) Votes will be taken in the following Engel Kolbe Pryce (OH) PERSONAL EXPLANATION order: H.R. 1226, by the yeas and nays; English Kucinich Quinn Mr. HILLEARY. Mr. Speaker, on rollcall vote Ensign LaFalce Radanovich and House Resolution 109, by the yeas Eshoo LaHood Rahall 76 I was unavoidably detained from the House and nays. Etheridge Lampson Ramstad Chamber. Had I been present I would have The Chair will reduce to 5 minutes Evans Lantos Regula cast my vote as a ``yea.'' the time for the second electronic vote Everett Largent Reyes Ewing Latham Riggs f after the first vote in this series. Farr LaTourette Riley f Fattah Lazio Rivers SENSE OF HOUSE ON FAMILY TAX Fawell Leach Roemer RELIEF Fazio Levin Rogan TAXPAYER BROWSING Filner Lewis (CA) Rogers The SPEAKER pro tempore (Mr. SOL- PROTECTION ACT Foglietta Lewis (GA) Rohrabacher OMON). The pending business is the Foley Lewis (KY) Ros-Lehtinen question of suspending the rules and The SPEAKER pro tempore. The Forbes Linder Rothman pending business is the question of sus- Ford Lipinski Roukema agreeing to the resolution, House Reso- pending the rules and passing the bill, Fowler Livingston Roybal-Allard lution 109. Fox LoBiondo Royce The Clerk read the title of the resolu- H.R. 1226, as amended. Frank (MA) Lofgren Rush The Clerk read the title of the bill. Franks (NJ) Lucas Ryun tion. The SPEAKER pro tempore. The Frelinghuysen Luther Sabo The SPEAKER pro tempore. The question is on the motion offered by Frost Maloney (CT) Salmon question is on the motion offered by Furse Maloney (NY) Sanchez the gentleman from Texas [Mr. AR- the gentleman from Texas [Mr. AR- Gallegly Manzullo Sanders CHER] that the House suspend the rules Ganske Markey Sandlin CHER] that the House suspend the rules and pass the bill, H.R. 1226, as amend- Gejdenson Martinez Sanford and agree to the resolution, House Res- Gekas Mascara Saxton olution 109, on which the yeas and nays ed, on which the yeas and nays are or- Gephardt Matsui Scarborough dered. Gibbons McCarthy (MO) Schaefer, Dan are ordered. The vote was taken by electronic de- Gilchrest McCarthy (NY) Schaffer, Bob The vote was taken by electronic de- vice, and there were—yeas 412, nays 0, Gillmor McCollum Schumer vice, and there were—yeas 412, nays 0, Gilman McCrery Scott not voting 20, as follows: not voting 20, as follows: Gonzalez McDade Sensenbrenner [Roll No. 76] Goode McDermott Serrano [Roll No. 77] Goodlatte McGovern Sessions YEAS—412 YEAS—412 Goodling McHale Shadegg Abercrombie Berman Burr Gordon McHugh Shaw Abercrombie Berman Burr Ackerman Berry Burton Goss McInnis Shays Ackerman Berry Burton Aderholt Bilirakis Buyer Graham McIntosh Sherman Aderholt Bilirakis Buyer Allen Bishop Callahan Granger McIntyre Shimkus Allen Bishop Callahan Andrews Blagojevich Calvert Green McKeon Shuster Andrews Blagojevich Calvert Archer Bliley Camp Greenwood McKinney Sisisky Archer Bliley Camp Armey Blumenauer Campbell Gutierrez McNulty Skaggs Armey Blumenauer Campbell Bachus Blunt Canady Gutknecht Meehan Skeen Bachus Blunt Canady Baesler Boehlert Cannon Hall (OH) Meek Skelton Baesler Boehlert Cannon Baker Boehner Capps Hall (TX) Menendez Slaughter Baker Boehner Capps Baldacci Bonilla Cardin Hamilton Metcalf Smith (MI) Baldacci Bonilla Cardin Ballenger Bonior Castle Hansen Mica Smith (NJ) Ballenger Bonior Castle Barcia Bono Chabot Harman Millender- Smith (OR) Barcia Bono Chabot Barr Borski Chambliss Hastert McDonald Smith (TX) Barr Borski Chambliss Barrett (NE) Boswell Chenoweth Hastings (FL) Miller (CA) Smith, Adam Barrett (NE) Boswell Chenoweth Barrett (WI) Boucher Christensen Hastings (WA) Miller (FL) Smith, Linda Barrett (WI) Boucher Christensen Bartlett Boyd Clay Hayworth Minge Snowbarger Bartlett Boyd Clay Barton Brady Clayton Hefley Mink Snyder Barton Brady Clayton Bass Brown (CA) Clement Hefner Moakley Solomon Bass Brown (CA) Clement Bateman Brown (FL) Clyburn Herger Molinari Spence Bateman Brown (FL) Clyburn Becerra Brown (OH) Coble Hill Mollohan Spratt Becerra Brown (OH) Coble Bentsen Bryant Coburn Hilliard Moran (KS) Stabenow Bentsen Bryant Coburn Bereuter Bunning Collins Hinchey Moran (VA) Stark Bereuter Bunning Collins April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1491 Combest Hinchey Moran (KS) Stenholm Thurman Waxman Mr. STEARNS. Mr. Speaker, I rise Condit Hinojosa Moran (VA) Stokes Tiahrt Weldon (FL) Conyers Hobson Morella Strickland Tierney Weldon (PA) today to express my strong support for Cook Hoekstra Murtha Stump Torres Weller the tax limitation amendment. What Cooksey Holden Myrick Stupak Traficant Wexler could I say in this short amount of Cox Hooley Nadler Sununu Turner Weygand time that would change many Members Coyne Horn Neal Talent Upton White Cramer Hostettler Nethercutt Tanner Velazquez Whitfield on that side of the aisle? I thought Crane Houghton Neumann Tauscher Vento Wicker carefully about it. Did all of my col- Crapo Hoyer Ney Tauzin Visclosky Wise leagues know, perhaps they heard this Cubin Hulshof Northup Taylor (MS) Walsh Wolf before, that the Constitution has been Cummings Hunter Norwood Taylor (NC) Wamp Woolsey Cunningham Hutchinson Nussle Thomas Waters Wynn amended 27 times? Perhaps they did Davis (FL) Hyde Oberstar Thompson Watkins Yates not know in the first 4 years of this Davis (IL) Inglis Obey Thornberry Watt (NC) Young (AK) country’s history they amended the Thune Watts (OK) Young (FL) Davis (VA) Jackson (IL) Olver Constitution 10 times. Perhaps they did Deal Jackson-Lee Ortiz NOT VOTING—20 DeFazio (TX) Oxley not know this, but at that point they DeGette Jefferson Packard Bilbray Kilpatrick Sawyer prohibited any taxes at all. DeLauro Jenkins Pallone Carson King (NY) Schiff Mr. Speaker, the Founding Fathers DeLay John Pappas Costello Lowey Skeen did not want to have any taxes. They Dellums Johnson (CT) Parker Danner Manton Smith (TX) Deutsch Johnson (WI) Pascrell Delahunt Owens Souder were interested in perhaps real estate Diaz-Balart Johnson, E. B. Pastor Flake Rangel Towns taxes or a sales tax, but they did not Dickey Johnson, Sam Paul Istook Sandlin honestly believe in taxing up to 39.5 Dicks Jones Paxon Dingell Kanjorski Payne b 1642 percent, almost 40 percent. When you add State income tax and local taxes, Dixon Kaptur Pease So (two-thirds having voted in favor Doggett Kasich Pelosi you are talking about for people, some thereof) the rules were suspended and Dooley Kelly Peterson (MN) people are paying 55 percent. the resolution was agreed to. Doolittle Kennedy (MA) Peterson (PA) Our Founding Fathers 220 years ago, Doyle Kennedy (RI) Petri The result of the vote was announced of course, had the foresight to use Dreier Kennelly Pickering as above recorded. Duncan Kildee Pickett supermajority for certain things. Im- A motion to reconsider was laid on Dunn Kim Pitts peachment, talking about expelling a Edwards Kind (WI) Pombo the table. Member of Congress, overriding the Ehlers Kingston Pomeroy f Ehrlich Kleczka Porter veto, they foresaw the need for a super- Emerson Klink Portman PERSONAL EXPLANATION majority. They understood firsthand Engel Klug Poshard what could happen with corruption and English Knollenberg Price (NC) Mr. BILBRAY. Mr. Speaker, I was regret- Ensign Kolbe Pryce (OH) power. The power to tax is what we are Eshoo Kucinich Quinn tably and unavoidably detained on my way to talking about today, the ruination of Etheridge LaFalce Radanovich the House floor this afternoon, and as a result overtaxation. The gentleman from Evans LaHood Rahall was not present for rollcall votes No. 76 and Texas is simply offering an amendment Everett Lampson Ramstad No. 77ÐH.R. 1226, the Taxpayer Browsing Ewing Lantos Regula to slow this process down. Farr Largent Reyes Relief Act, and House Resolution 109, a Quite simply, our forefathers fought Fattah Latham Riggs sense of Congress on family tax relief. a war to ensure freedom from un- Fawell LaTourette Riley Had I been present, I would have certainly checked oppression. They fought a war Fazio Lazio Rivers voted ``yea'' on both measures. Filner Leach Roemer basically to prevent ruination of tax- Foglietta Levin Rogan f ation, which we have today. So the Foley Lewis (CA) Rogers gentleman from Texas is simply trying Forbes Lewis (GA) Rohrabacher PERSONAL EXPLANATION Ford Lewis (KY) Ros-Lehtinen to stop this by saying let us have a Fowler Linder Rothman Ms. KILPATRICK. Mr. Speaker, because I two-thirds majority. Fox Lipinski Roukema was unavoidably detained in the 15th Con- The American people do not like and Frank (MA) Livingston Roybal-Allard gressional District of Michigan, I was not trust their Government. They have Franks (NJ) LoBiondo Royce Frelinghuysen Lofgren Rush present at rollcall vote No. 76 and rollcall vote said that over and over again. It is 1997, Frost Lucas Ryun No. 77. Had I been present for these votes, I and the Government needs to be put in Furse Luther Sabo would have voted ``yea'' for rollcall vote No. 76 check just like the modern-day King Gallegly Maloney (CT) Salmon and ``yea'' for rollcall vote No. 77. George III which we are trying to do Ganske Maloney (NY) Sanchez Gejdenson Manzullo Sanders f today what our forefathers tried to do Gekas Markey Sanford when they started this country. Over Gephardt Martinez Saxton TAX LIMITATION CONSTITUTIONAL the past 40 years, Congress has contin- Gibbons Mascara Scarborough AMENDMENT Gilchrest Matsui Schaefer, Dan ually increased taxes. Since 1981, there Gillmor McCarthy (MO) Schaffer, Bob The SPEAKER pro tempore. The have been 19 separate tax increases, in Gilman McCarthy (NY) Schumer pending business is the further consid- 1993, the largest tax increase in his- Gonzalez McCollum Scott eration of the joint resolution (H.J. tory. It is obvious to anybody who has Goode McCrery Sensenbrenner Goodlatte McDade Serrano Res. 62) proposing an amendment to studied the political landscape, if we do Goodling McDermott Sessions the Constitution of the United States not have this amendment, we will have Gordon McGovern Shadegg with respect to tax limitations. increased taxes. Mr. Speaker, we in- Goss McHale Shaw Graham McHugh Shays The Clerk read the title of the joint creased taxes on airline tickets, and I Granger McInnis Sherman resolution. am ashamed that we passed that vote Green McIntosh Shimkus without a counterbalancing amend- b 1645 Greenwood McIntyre Shuster ment to make it budget neutral. Gutierrez McKeon Sisisky Gutknecht McKinney Skaggs The SPEAKER pro tempore (Mr. SOL- In 1775, the rallying cry was no tax- Hall (OH) McNulty Skelton OMON). The gentleman from Florida ation without representation. Here we Hall (TX) Meehan Slaughter [Mr. CANADY] has 361⁄2 minutes remain- are, over 200 years later, and it has not Hamilton Meek Smith (MI) ing, the gentleman from Texas [Mr. changed. The American taxpayers are Hansen Menendez Smith (NJ) 1 Harman Metcalf Smith (OR) BARTON] has 19 ⁄2 minutes remaining, fed up. They are looking at bloated bu- Hastert Mica Smith, Adam and the gentleman from Virginia [Mr. reaucracy and they want a change. Hastings (FL) Millender- Smith, Linda SCOTT] has 431⁄2 minutes remaining. Daniel Webster once said, the power Hastings (WA) McDonald Snowbarger Hayworth Miller (CA) Snyder Mr. CANADY of Florida. Mr. Speak- to tax is the power to destroy. This Hefley Miller (FL) Solomon er, I yield 31⁄2 minutes to the gentleman afternoon, these words ring with reso- Hefner Minge Spence from Florida [Mr. STEARNS]. nance on April 15. What we want to do Herger Mink Spratt (Mr. STEARNS asked and was given here is very, very simple. We only want Hill Moakley Stabenow Hilleary Molinari Stark permission to revise and extend his re- to make it harder to raise taxes, to Hilliard Mollohan Stearns marks.) make it just a little bit more difficult H1492 CONGRESSIONAL RECORD — HOUSE April 15, 1997 for this Congress to prevent someone constitutional amendment would be I would say to my colleagues that, from succeeding in the American detrimental to the budget process. Ac- whatever we do in the House, the sun- dream, to make sure that the power to cordingly, the Concord Coalition of beam should shine on it. Whatever we tax is not abused. Simply put, we want Citizens councils has selected this issue do on behalf of the American people, to put the power back where it belongs, as a 1997 key vote for purposes of its bringing down the deficit, operating back where the Founding Fathers put tough choices deficit reduction score- this Government, the sunbeam should it, in the hands of the people. card. shine. This is an undercover amend- I urge my colleagues to put partisan- What we need to be doing is bringing ment. This is bad law, a bad amend- ship aside and to cast their vote for the down the deficit. We do not need a con- ment to the Constitution. We should taxpayers of this Nation. Remember, stitutional amendment to bring down not support it. our Founding Fathers amended the the deficit. In considering how to bal- Mr. Speaker, I rise to speak in opposition to Constitution 10 times in 4 years, and it ance the Federal budget and keep it this resolution to House Joint Resolution 62, has been amended 27 times since this balanced over the long term, all op- which would amend the Constitution to require Republic has been founded. This is a tions for reducing spending or raising that any legislation raising taxes be subject to very simple step forward, on a sym- revenues must be on the table. No area a two-thirds majority vote in the House and bolic day of April 15, to bring this Con- of the budget on either of the spending the Senate. If this amendment is added to the gress under control. or the revenue side should receive pref- Constitution, Congress will not have the flexi- Mr. SCOTT. Mr. Speaker, I yield 5 erential treatment such as requiring a bility that is necessary to meet the important minutes to the gentlewoman from supermajority. fiscal priorities of our Nation. Texas [Ms. JACKSON-LEE]. This is bad legislation. More impor- Let me also point out that one of our Found- (Ms. JACKSON-LEE of Texas asked tant, do we know what it prevents us ing Fathers and Framers of the Constitution and was given permission to revise and from doing? It prevents us from elimi- James Madison, stated in his Federalist Pa- extend her remarks.) nating tax fraud. In order to eliminate pers, that requiring more than majority of a Ms. JACKSON-LEE of Texas. Mr. tax fraud, we will have to get a two- quorum for a decision, will result in minority Speaker, for the record for the Amer- thirds supermajority. What American rule and the fundamental principle of free gov- ican people, we have already spoken on citizen would tell us they enjoy the tax ernment would be reversed. While there are the issue of responding to the desire to fraud that others are perpetrating on several supermajority voting requirements ref- have real tax relief. I voted for the this Nation? erenced in the Constitution, none pertain to Taxpayers Protection Act. We voted The other aspect is, I offered an the day-to-day operations of the Government just now to prevent browsing in per- amendment to protect Social Security or fiscal policy matters. What is particularly sonal files of taxpayers. and Medicare. This legislation will not troubling this Member of Congress is the fact I support giving families in America allow us to protect the citizens of the that the Center on Budget and Policy Prior- the right to have tax relief such as a 21st century, baby boomers who are ities, the proposed constitutional amendment, tax credit for children. We can do this coming into their own in need of Social would make it more difficult to address the in a manner that allows us to uphold Security and Medicare. long-term financing problems of Social Secu- the Constitution. My colleagues who When the baby boomers again begin rity and Medicare. The Center has stated that have been citing the Constitution need to retire not that many years from the 1996 report of the Social Security trustees, to just read the responsibilities of this now, the country will be in an era of projects the Social Security trust fund will start U.S. Congress, for section 8 says that constant fiscal strain. To avoid de- running deficits by 2012 and exhaust all of its the Congress shall have power to pro- structive deficits, there will be a need reservesÐthat is, become insolventÐby 2029. vide for the common defense and the to respond operationally, either by tax In order to avoid this shortfall or insolvency, welfare of this Nation. increases or spending cuts. This Congress must be able to use the tax system, This particular resolution does not in amendment does not allow us to save and if not, then the Social Security trust fund any way allow us to protect you by Social Security, Medicare, and any will remain in grave danger. That is why I of- having a strong defense. This two- other manner of operating this Govern- fered an amendment both in full committee thirds resolution quickly undermines ment. and before the Committee on Rules which the majority rule that the Constitution It is interesting that the majority as would have preserved the solvency of the So- wants us to have. As the Vice President well has waived such supermajority cial Security trust fund. Both of these efforts traveled this weekend to the Midwest, legislation when it has been for their failed. he never saw such devastation. This benefit; five times in fact over the last Let me also point out Mr. Speaker that Re- two-thirds amendment clearly says 2 years. One in particular, on October publicans have frequently waived House rules that, when there are floods or freeze, 19, 1995, they waived in consideration of requiring a three-fifths majority vote to in- hurricanes or earthquakes, this coun- the Medicare preservation bill. crease taxes. Last Congress, the majority try will be crippled and not able to do That is what I am trying to say to waived this three-fifths requirements for tax in- the business of the people. my colleagues, but the Medicare pres- creases on four separate occasions. On April It is clear that this majority process, ervation bill would have imposed addi- 5, 1995, during the consideration of H.R. overlooking the majority process by re- tional taxes on withdrawals of Medi- 1215, the Contract With America Tax Relief quiring two-thirds, clearly undermines care savings accounts. When it is to Act, there was a parliamentary ruling that the the ability of this Congress to operate the advantage of the majority that has new House rule did not apply to the bill even this Government. The supporters of offered this legislation, they will waive through the bill would have repealed the cur- this legislation support the fact or such votes on tax increases. rent 50-percent exclusion for capital gains mention the fact that there are super- I am saying to the American public from sales of certain small business stock. On majority requirements pertaining to that what we have is a responsibility October 26, 1995, the House rule was waived other aspects of our business. Yes, they to balance the budget. We must do it. for the consideration of fiscal year 1996, the do; treaties as well as the impeachment We have a responsibility to bring down budget reconciliation bill, which contained sev- trial. But it does not impact on day-to- the deficit. We must do it. But the Con- eral tax increases. On October 19, 1995, the day operations of keeping this Govern- stitution says we have a responsibility House rule was waived for the consideration ment running. When an American citi- to provide for defense and welfare. To of the Medicare preservation bill, which would zen is strained and oppressed by an do that, we must be able to operate have imposed additional taxes on withdrawals earthquake, a flood, a hurricane, they this House, this Nation in a manner form Medicare savings account. On March 28, want this Government to act. This leg- that says, we the people. 1996, the Republicans waived the house rule islation does not allow them to act. Let me just finish by saying that Al- for consideration of the health coverage avail- Interestingly enough, let me read to exander Hamilton noted that the sa- ability and affordability bill, which imposed ad- my colleagues from the Concord Coali- cred rights of mankind are not to be ditional taxes on withdrawals from Medicare tion, a bipartisan coalition that be- rummaged for among old parchments savings accounts. lieves in bringing down the deficit, or musty records. They are written as Mr. Speaker, it is imperative that this House Sam Nunn, former Senator, Warren with a sunbeam on the whole volume of vote this proposed constitutional amendment Rudman, cochairs: Enactment of this human nature. down and let us preserve the intent that the April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1493 Founding Fathers had in mind when they de- b 1700 It is really appropriate we are here cided that votes in the Congress should be Mr. CANADY of Florida. Mr. Speak- on April 15, when people are feverishly decided by a simple majority. er, I yield 3 minutes to the gentleman trying to scrape together their hard- Mr. CANADY of Florida. Mr. Speak- from Indiana [Mr. MCINTOSH]. earned incomes so that they can keep er, I yield 2 minutes to the gentleman Mr. McINTOSH. Mr. Speaker, I rise this wonderful Federal Government from Ohio [Mr. PORTMAN]. in support of this constitutional going. Mr. PORTMAN. Mr. Speaker, let me amendment to require a supermajority It is interesting. I listened to the say at the outset, Members are talking in order for Congress to raise taxes. I other side, those people that oppose a lot about the Founders. In the Con- want to commend the subcommittee making it tougher to raise taxes, and it stitution, of course, article I section 9 and the full committee for working on is those same people that say we do not actually prohibits the kind of income this, and in particular commend my need a constitutional amendment to tax that we currently have in this colleague, the gentleman from Texas balance the budget, we simply have the country, and that is why in 1913, Con- [Mr. BARTON], for championing this willpower here in Congress. gress passed the 16th amendment. So if issue. I only wish we could make sure Somehow they believe that the we are going to look back at the it was part of our balanced budget American people are going to wake up Founders, I think there is not a good amendment as well. and say Congress is going to be dif- argument for not changing the way we Everywhere I go in Indiana, I talk to ferent from the last 40 years; things are do business here. people at factory gates, at the shopping going to be completely different now Let me just say that for the last mall, at restaurants, and I ask them if into the future, because suddenly they year, as cochairman of the National they have any message for Washington. have this resolve; they do not need to Commission on Restructuring the IRS, have their feet kept to the fire. I have been spending a lot of time delv- And time and time again, I hear from those people: Yes, cut our taxes; I am Frankly, I think the American people ing into the tax system generally, and are on to us. Once again those opposed the IRS in particular. We are going to working two jobs, working overtime, and the Government seems to take all to any limits on Federal spending have issue our final recommendations in come out of the woodwork to proclaim June. The gentleman from Pennsylva- of that in taxes. My wife and I are both working, and we cannot make ends that a constitutional amendment lim- nia [Mr. COYNE] on the other side of the iting Congress’ ability to spend other aisle is on that Commission. I cochair meet. We have to cut taxes in this country, people’s money is dangerous and, in- with Senator BOB KERREY. It is biparti- but we would not have to do that if we deed, unnecessary. They claim that san, the administration is represented willpower alone can limit taxes and and it has a lot of good private sector had had this amendment in the last 40 years to put a check on all of the tax spending. expertise. I will not doubt the commitment of Our goal, really, with this Commis- increases. the U.S. Congress to cut spending and sion is nothing short of having Ameri- A young man named Garth Rector, balance the budget. Just look at the cans in the future associate April 15 who works as a grounds keeper at a great job Congress has done in the less with the frustration and anxiety local college today, came to one of my past. Nor will I question the resolve of and headaches connected with their tax town meetings about a year ago and this President, who boldly declared last system and more with pleasant things, said, ‘‘You know, I figured it out. I like the beautiful spring day we are en- have two kids. And if you guys pass year in his State of the Union Address joying here in Washington today. Now, that $500 tax credit, that is about 20 that the era of big government is over. that is a tall order and it is difficult to bucks a week that I will get more in Although he has vetoed two balanced get there. my paycheck, and that will go a long budgets and has yet to produce a bal- But, we think there are three ways way to buying gas and food for the anced budget that really balances, we we can do it. First, we have to restruc- kids. So I hope you get that done.’’ can all sleep like angels, knowing this ture the IRS. We have to change the It has gotten to a point in this coun- time he truly means it. IRS from top to bottom so there is real try where the average family no longer Mr. Speaker, it is time to end this accountability in terms of its manage- pays 5, 6, 10 percent of their income, charade. For decades the politicians in ment. Second, the IRS has to be more but 23 percent of their income, to the Washington have promised to rein in taxpayer friendly. A 21st century IRS Federal Government in taxes. When we Federal spending, yet every year the has to be a customer-driven organiza- add State and local taxes, it is almost tax burden shouldered by the American tion. 40 percent. It is no wonder that work- people continues to rise. Only by mak- Third, and I think most importantly, ing families in this country have a dif- ing it harder to raise taxes can we give we have determined, after looking at ficult time seeing their standard of liv- the American people a reason to be- the IRS from every angle over the last ing increase. We have to cut taxes, we lieve that things are going to be a lit- year, that we have to stop Congress have to eliminate the death tax, we tle different here in Washington, DC. from passing new, complex tax legisla- have to cut the tax on investment. Mr. SCOTT. Mr. Speaker, I yield 6 tion. We have to give people a break In my State, we have seen a lot of minutes to the gentleman from Colo- from taxes. jobs that have been sent down to Mex- rado [Mr. SKAGGS]. This relates to what we are talking ico and overseas, but if we cut in half Mr. SKAGGS. Mr. Speaker, I thank about today. That is why I like so the tax on investment, there would be the gentleman for yielding me this much what the gentleman from Texas $2.5 billion of investment money avail- time. [Mr. BARTON] has been promoting, be- able that did not go to the Federal Mr. Speaker, we are here this evening cause it will force Congress to be more Government but could stay in Indiana engaged in a great rite of spring politi- deliberative as we do tax legislation in and create new, good jobs. cal theater. I am impressed with the this body. It will force Congress to ana- Mr. Speaker, I rise in support of this acting ability of many on the other lyze the impact of increasing taxes, amendment today because, as I said, if side and those in support of this be- which we clearly have not done over we had only had this amendment over cause they are pretending to be en- the years. And it will keep Congress the last 40 years, I am convinced that gaged in serious constitutional law- from continuously changing the code, today the average American family making. sometimes in a rather haphazard man- would keep much more of its hard- This is constitutional gibberish. It is ner, because we will have this new re- earned dollars and not send it to Wash- constitutional mush. It is an insult to quirement in place. ington, where it sees it being wasted on the Constitution to be considering this So I want to commend the gentleman one program after another. proposal. It is bad policy. It is bad law. from Texas [Mr. BARTON] and others for Mr. BARTON of Texas. Mr. Speaker, Second only perhaps to a declaration pushing this issue and frankly for shed- I yield 11⁄2 minutes to the gentleman of war, an amendment to the Constitu- ding light on the reality that Congress from Arizona [MR. SALMON]. tion ought to be the occasion for the does not act as deliberately and Mr. SALMON. Mr. Speaker, I thank most serious and deliberate application thoughtfully with regard to taxes as it the gentleman for yielding me this of the talents of this body to the im- should. time. portant responsibilities we bear to the H1494 CONGRESSIONAL RECORD — HOUSE April 15, 1997 Nation. And anyone who attempts to tively paralyzing the ability of future ernment. We should be extremely wary of any suggest that the language in this Congresses to deal with one of the most further exceptions, especially if it would com- amendment could be implemented logi- nuanced, subtle areas of public policy: plicate the essential responsibilities and com- cally, coherently, without the regular revenue and taxes. petency of the Government. interference of the courts is simply Now, recent national campaigns and We have to be mindful that the logical cor- kidding themselves. debates have surfaced a number of very ollary of supermajority rule is minority control. This amendment, among many of its intriguing ideas about the way we And under this proposed amendment, 34 Sen- failings, violates the fundamental prin- should change the Federal tax system. ators representing less that 10 percent of the ciple of this representative democracy, If this amendment were now in the American people would have the power to the fundamental principle of free gov- Constitution, however, we would be es- control the Government's revenue and tax pol- ernment; as Madison put it, the prin- sentially forestalled from taking any icy. ciple of majority rule. of those up, because it is highly un- I also oppose this proposed amendment be- There are a few exceptions to that in likely that any of them would gather a cause of its almost absurdly impractical con- the Constitution, I will grant my col- two-thirds vote in both Houses, and all sequencesÐintended and unintended. leagues, but none, none, none goes to of them involve some increases in One such consequence would be for all the day-to-day fundamental respon- taxes, some provision designed to in- practical purposes to lock into law the Tax sibilities of operating this Government. crease some taxes over others, whether Code as it would exist at the time of this The logical corollary of supermajor- it is consumption taxes or any number amendment's ratification. If you like the tax ity rule is minority control. And under of other variations. system the way it is now, or if you have su- this amendment, Mr. Speaker, 34 Sen- Mr. Speaker, I will close by recalling preme confidence that some future Congress ators, representing under 10 percent of for the body the experience that we will have gotten it fixed just right before ratifi- the population of this country, would have had recently in dealing with our cation, you ought to live this proposal. be in a position to control the Govern- own three-fifths rule, not a two-thirds Another related consequence of this pro- ment’s revenue and tax policy. rule but a three-fifths rule under House posal would be to complicate efforts to bal- Aside from that absurdity, think of procedures. ance the budget, particularly as they entail re- the many, many impractical con- It has been waived during consider- ducing the growth of entitlement programs. sequences, both intended and unin- ation of the majority party’s 1996 budg- Finally, I'm opposed to this proposed tended. One would be that, for all prac- et reconciliation, the majority’s Medi- amendment because, like the current House tical purposes, this amendment, if it care bill, the Kennedy-Kassebaum three-fifths rule, it is vague and will generate were to become law, would lock into health care bill, the Small Business confusion and litigation. the Tax Code its provisions as it ex- Protection Act, the Personal Respon- I know the authors of this proposal have isted at the time of ratification. strong feelings about taxes. But simply having If we like the tax system the way it sibility and Work Opportunity Rec- strong feelings isn't good reason to cede is, or if we are supremely confident onciliation Act of 1995. All of these power over all future changes to an important that between now and ratification we waivers have been accompanied by dis- will have gotten it just right, then we pute and confusion as to the meaning area of national law to a small minority. Mem- may support this amendment with of that rule. bers of Congress also have very strong feel- good conscience. Otherwise, I think we This constitutional amendment is re- ings on civil rights, trade, and the deployment should have great, great pause and res- plete with even more profound ambigu- of U.S. troops abroad. But that doesn't mean ervations. ities and invitations to litigation and that we should let a minority in Congress Another related consequence would confusion. We do our constituents no block any changes in the laws on civil rights, be to make it infinitely more difficult service, we certainly do the Framers of trade, or the deployment of troops. In none of for us to achieve what many on both the Constitution no service, we do our these areas does it serve the long-term na- sides of the aisle hold forth as our prin- future colleagues in this body no serv- tional interest to undermine the principle of cipal responsibility right now, and that ice by entertaining this silly idea any majority rule. is balancing the budget, especially as further. Wiser lawmakers than we have considered that effort relates to gaining control of Mr. Speaker, I oppose this proposed the question of whether to require a super- the growth of entitlement programs. amendment to the Constitution to require the majority for passage of certain kinds of legisla- And a final and, I think, very, very vote of two-thirds of both Houses of Congress tion. At the Constitutional Convention, the persuasive reason to have second, to approve any bill changing the internal reve- Framers of the Constitution specifically consid- third, fourth, and fifth thoughts about nue laws in a way that would increase the rev- eredÐand rejectedÐproposals to require a this piece of constitutional stuff is the enue collected by the Government. supermajority to pass legislation concerning experience that this body has had now This proposed amendment is a bad idea particular subjects such as navigation and for over 2 years with our House rule and bad constitutional law. commerce. They rejected various legislative having purported to cause us to require Second only, perhaps, to a declaration of supermajority proposals largely because of a three-fifths vote whenever we deal war, an amendment to the Constitution ought their experience under the Articles of Confed- with tax increases. to command the most serious and deliberate eration and the paralysis caused by the Arti- We already are aware of the confu- sort of legislative review, examination, and cles' requirement of a supermajority to raise sion that has been generated by the analysis we are capable of. It deserves better and spend money. In other words, we have a ambiguities in that provision. treatment than a legislative rush job to have a Constitution because it was impossible for the Compound that, if you will, by what symbolic vote on the deadline day for paying country to function under a constitutional law would be the result if this similar pro- income taxes. The Constitution shouldn't be such as is being proposed here. vision were put in the Constitution. used as a vehicle for a political bumper stick- The Framers' judgment on this matter, in- Wiser men than we considered and re- er. cluding whether to retain the Articles' super- jected at the time of the founding of I would, however, like to commend the majority to raise revenues, should give us all this great Republic similar constraints sponsors of this bill on one point. They recog- cause to reflect on the wisdom of the propos- on majority rule. They rejected them nize that a change in the U.S. Constitution is als before the House today. because of their then recent experience necessary in order to require a supermajority In those cases in which the Framers did im- with the impossibility of governing a to pass legislation on this subject. In effect, pose supermajority requirements, none deals much smaller and less complicated Na- they concede that the attempt by the House in with topics of regular legislative business tion in those days under the super- January 1995 to simply pass a rule requiring central to the ongoing operation and manage- majority requirements of the Articles a supermajority is not the proper procedure. ment of the Federal Government, such as of Confederation. In other words, we I oppose this proposed constitutional taxes and revenues. have a Constitution today, in large amendment on a number of grounds. It vio- In those cases in which the Framers did im- part, because it was impossible to gov- lates what Madison called the fundamental pose supermajority requirements, only two re- ern this Nation under supermajority principle of free government, the principle of quire action by both bodies, namely, the over- provisions after the Revolution. majority rule. The Constitution makes very few ride of a Presidential veto and the referral of This provision would go far beyond exceptions to the principle, none having to do a proposed amendment to the States. Both any constitutional precedent in effec- with the core, on going responsibilities of Gov- are extraordinary matters. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1495 In sum, this proposal would go far beyond some later time, or quite conceivably, at each One thing we can be sure of. We don't any existing constitutional precedent. It would time a revenue bill is considered, inviting an know the future. Why would we wish to de- effectively paralyze the ability of future Con- exercise in manipulative definition whenever prive our successors in Congress of the tools gresses to deal with one of the most nuanced the prospect of winning two-thirds approval and ability to deal with the problems they will of all legislative issuesÐrevenues and taxes, was dim. face? To our successors we are in effect say- allowing a small minority to control national On the other hand, it's arguable that this ing, ``We don't care what the particular cir- policy. proposal would not necessarily require ap- cumstances may be in 10 or 50 years; we Recent national campaigns and debate proval of two-thirds for a tax rate increase. don't trust you, and you're stuck with our ex- have brought forward a number of innovative Some tax rate increases can actually reduce pectations of your incompetence.'' What arro- ideas regarding and Federal tax system. Were or, at least, not increase revenues. For exam- gance. it now in the Constitution, this new amend- ple, the luxury tax on certain boats that was I urge the Members from both sides of the ment would likely serve to thwart these ideas repealed in 1993 is said to have actually re- aisle to take a close look at this proposed con- or other reforms. This proposed amendment duced sales so dramatically that associated stitutional amendment in the light of the wis- would likely require a two-thirds vote on legis- revenues actually declined. Some even argue dom and experience of the Framers, its stifling lation implementing the consumption tax or that most tax increases on business activity and absurd effects, and the history of the Value Added Tax [VAT] proposed by some, actually reduce Federal revenues by depress- House of Representatives' three-fifths rule. which again proponents believe would in- ing economic growth. What economic theory, Treat it for what it is, a political statementÐ crease economic activity and Federal reve- interpreted by which expert, will therefore de- and one better made on the floor of the House nues. There's been a lot of talk on both sides termine the application and effect of this than put into the U.S. Constitution. of the aisle about getting rid of corporate wel- amendment if it were adopted? Mr. BARTON of Texas. Mr. Speaker, fare. Many want to end corporate welfare by So, once you consider how this amendment I yield myself 4 minutes. closing tax loopholesÐand that, of course, might be interpreted, many absurd con- (Mr. BARTON of Texas asked and would likely bring in additional tax revenue sequences come to mind. was given permission to revise and ex- from affected corporations and so would re- In the context of deficit reduction, we should tend his remarks.) quire a two-thirds vote under this proposal. also consider the fairness and equity implica- Mr. BARTON of Texas. Mr. Speaker, But let's say we tried one of these ideas out tions of this amendment. Most Federal bene- I did not go to Hershey, PA, at the bi- before the amendment took effect. Is anyone fits to lower and middle-income Americans partisan retreat, but if I had and would certain enough that one of them is the correct come from programs that depend on direct ex- have come on the floor for this debate solution to the tax reform problem that you penditures. The benefits of upper income this evening, I do not believe I would wish to make repeal or revision next to impos- Americans and corporations often come have used words like ‘‘absurd,’’ sible? through various kinds of tax breaks. Since this ‘‘mush,’’ things of that sort. I do not And if this proposed amendment were part amendment would require a simple majority to think they help us. of the Constitution, it would probably make it cut programs benefiting lower and middle-in- Mr. SKAGGS. Mr. Speaker, will the more difficult to reduce taxes. If at some point come Americans, but a supermajority to re- gentleman yield? in the future, Congress judges the budget and duce tax benefits to wealthy Americans and Mr. BARTON of Texas. I yield to the economy healthy enough to reduce taxes, how corporations, it would unfairly bias deficit re- gentleman from Colorado. likely is it that a responsible Congress would duction and create a path of least resistance Mr. SKAGGS. Mr. Speaker, I say to go ahead and do so knowing that it would be that would disproportionately hurt middle- and the gentleman that the purpose of the almost impossible to raise rates again in the lower income citizens. retreat and of our efforts to restore ci- event circumstance required it? In evaluating this proposed amendment, it's vility is to debate ideas, which I was If now in the Constitution, this proposed also helpful to examine some recent experi- attempting to do. If I said anything amendment would certainly make the current ence in the House. In the 104th Congress, the that is personal to the gentleman, I efforts to balance the budget a lot more dif- House pretended to operate under a new rule apologize. I was characterizing the ficult. Whether adjusting the Consumer Price requiring a three-fifths vote to pass any in- ideas that are in debate. We all recog- Index [CIP], or reducing business and tax sub- crease in a Federal income tax rate. Obvi- nize the importance of a full and sidies, or narrowing the EITC, or means test- ously, the amendment before the House today hearty debate about policy and ideas. ing Medicare part B premiums, or limiting the would go much further. Mr. BARTON of Texas. Mr. Speaker, amount of profits companies can shift to over- The short history accumulated on the appli- reclaiming my time, my good friend seas subsidiariesÐall would have to be cation of the new House rule is instructive from Colorado meant nothing personal passed by two-thirds. about the problems that would likely arise toward me, nor did I take it as such. So It is important to realize that the proposal under this proposed constitutional amendment. I want to be perfectly clear on that. being considered here today is not really a tax Since the three-fifths rule has been in effect, I will say, if we are going to engage amendment at all. The word ``tax'' does not it has been waived during consideration of the in an idea and a robust debate, that we appear in the text, nor does ``income tax,'' ``tax majority party's fiscal year 1996 budget rec- should do so on the merits of the issue, rate,'' or ``new tax.'' It is a revenue amend- onciliation bill, the majority's Medicare bill, the and the issue at hand is whether we ment. The only legislation requiring a two- Kennedy-Kassebaum health care bill, the should amend the Constitution of the thirds vote under this proposal is that which Small Business Protection Act, and the Per- United States to require a two-thirds amends the internal revenue laws with the sonal Responsibility and Work Opportunity vote to raise taxes as they are defined predicted effect of increasing internal revenue Reconciliation Act of 1995. These waivers in the internal revenue laws of this by more than a de minimis amount. have been accompanied by dispute and con- land. There is no technical definition of internal fusion as to the meaning of the rule. In addi- I would point out that in article I, revenue except perhaps as distinguished from tion, there is now general agreement that the section 9 of the Constitution that the revenues from external sources, such as im- rule should have been applied to the Contract Founding Fathers of the United States port duties. All other sources of Federal reve- With America Tax Relief Act, and that a waiv- of America adopted, direct taxes were nue are presumably included under the lan- er would have been necessary to pass that prohibited. Prohibited. There could guage of this proposed amendment. So any legislation. have been a 100 percent unanimous legislation to increase any Federal fee or The amendment we are considering is for vote and not had an income tax. The charge or fine would arguably be subject to a more problematic because the Constitution 16th amendment to the Constitution, two-thirds vote if it results in more than a de can't be waived for convenience sake when which was passed on February 3, 1913, minimis increase in revenues. The only way questions arise. And you can be certain that said we could levy direct taxes. the proposal's supporters try to get around this similar questions about the meaning of this I would further point out that in the problem is by having the legislative history de- amendment will arise in great number. Almost Constitution, as adopted by our Found- fine internal revenue laws creatively. I wonder every future tax bill that were to pass by less ing Fathers, nowhere in there, unless it what would happen if the courts were to de- than two-thirds under some claimed exemption says specifically that there is a two- cline to accept the creative definitions con- from this amendment would likely be subject thirds or some sort of a supermajority tained in the legislative history. to protracted litigation, creating an outcome vote required, does it say in the pre- And according to the proposed amendment, we ought to avoid in tax lawÐuncertainty and sentment clause that we have to have de minimis is to be defined by Congress at confusion. simple majorities. In fact, this body H1496 CONGRESSIONAL RECORD — HOUSE April 15, 1997 routinely passes many measures by a share, and, yes, under those conditions spend money on anything and it will voice vote. middle income wage earning folks require a two-thirds vote to pay for it. So I think it is entirely appropriate could pay a lower part of their salary That sounds again, as I said earlier, to look at the tax burden that is cur- in taxes, and we could have that again like a recipe for disaster. rently on the American taxpayer, today. But I fear under this amend- It is time to be honest with the which averages 19 percent, which was ment that the last thing this Congress American people. The honest thing is, before the adoption of the 16th amend- is going to do with a two-thirds vote there has been a massive shift onto ment, and before the adoption of the requirement is raise taxes on the middle income and working families in first Federal income tax in 1913 it was wealthiest one-half of 1 percent of the this country and that is going to be zero, and say it is time to raise the bar people in this country who are doing perpetuated today if we pass this two- a little higher. quite well, thank you very much, or thirds requirement. When the Amer- Now, I would further point out that raise taxes on those corporations who ican people finally wake up and they all we have to do is look at the States in fact are paying no taxes. say, ‘‘Let’s close some of those loop- as our laboratory to see if supermajori- Seventy-one percent of the profitable holes, let’s raise some money, let’s pay ties for tax limitation work. There are foreign corporations operating in the for some things I want, like college 14 States that have it. It works in United States of America pay zero in- loans for my kid to go to college,’’ they those 14 States. Four States have come taxes, and the rest pay at a mar- are not going to be able to get it be- added it since the debate last year. ginal rate of less than 1 percent of cause it will only take one-third of this I asked my staff to go to the States their gross. And 30 percent of the larg- body to block any increases in reve- that have had it in effect for any est profitable U.S. multinational cor- nues, any closing of loopholes, any ask- length of time and find out if there are porations pay zero income taxes in this ing the wealthy and the biggest cor- any States where it is not working, or country. Some of them pay, Intel com- porations to pay their fair share. is there any State that wants to repeal pany, something called a nowhere tax. Mr. Speaker, I urge my colleagues to it, and the answer that we got back That means their income is created no- reject this special interest amendment was ‘‘no.’’ The States that have it are where, they do not pay taxes in Japan, and move on toward fiscal sanity in happy with it. More States are adding they do not pay taxes in the United this Congress and give real tax relief to to it, 40 percent in the last year, and States. They pay taxes nowhere. middle income families. there are another 5 to 10 States that This amendment would lock that sys- Mr. CANADY of Florida. Mr. Speak- have it. tem into place. Is that fair? No. Is that er, I yield 3 minutes to the gentleman Finally, Mr. Speaker, I would point what our colleagues on the other side from California [Mr. COX]. out that if we had had a two-thirds of the aisle want? I think not. One Mr. COX of California. Mr. Speaker, I vote requirement for a Federal income challenged us saying, well, those people thank the gentleman for yielding me tax increase the last 10 years in this over there do not support a balanced this time. We have just heard an im- Congress, we would have saved $666 bil- budget amendment. I do. I have been a passioned defense of the unfettered lion in tax increases, because four of cosponsor, I have supported it for a ability of Congress to raise taxes and the last five major tax increases would long time. Are we going to get to bal- my colleague from Oregon has pointed not have passed. ancing a budget by saying it will re- out a number of people whose taxes he Now, I do not know about other quire a two-thirds vote to raise taxes would like to raise. He apparently be- Members, but where I come from, the and close loopholes on those wealthy lieves that the tax limitation amend- idea of a tax limitation is not absurd, corporations and the people at the top ment would inhibit his ability to raise it is not silly, it is not mush, it is com- who are getting away with murder now taxes on the rich, on mining compa- mon sense. It is doing what should and it only takes a 50 percent vote plus nies, on the long list that he just gave have been done a long time ago. And I 1 to spend more money? That sounds us, but that would be true only if he would hope when the time comes, that like a recipe for disaster. Come on. were not willing to give the middle we pass this with the supermajority re- Give us a break here. Fifty percent to class a break at the same time. quired in the Constitution, two-thirds, spend more money which people around The truth is that it is only if you to send it to the Senate for ratifica- here love to do and a two-thirds vote to want to raise everybody’s taxes that tion. balance that off with revenues. I think this tax limitation amendment would I know who is going to win under that get in your way. But if what you want b 1715 formula. to do is ease the burden on the middle Mr. SCOTT. Mr. Speaker, I yield 5 Let us talk about large mining com- class by closing loopholes somewhere, minutes to the gentleman from Oregon panies. We gave away a $13 billion gold this amendment would not affect you [Mr. DEFAZIO]. claim to a Canadian mining company at all. Mr. DEFAZIO. Mr. Speaker, it is tax last year for $10,000. If we got a royalty The question before us is in the ag- day. I am certainly not going to stand fee which I got in a mining reform a gregate, is it too easy for Congress to up and defend the existing system as few years ago, that would be considered raise taxes? Should it be more difficult either comprehensible to mere mortals a tax. We should not have asked that for Congress to raise taxes? I think it or for being fair. It is extraordinarily poor Canadian corporation that is oper- is fair to say that the position of most unfair, the current tax system, in this ating here in America and not paying of the Members who have been speak- country. We have heaped a massive income tax here to pay a royalty for ing on the Democratic side is it is not burden on middle income wage earning the minerals they might extract from too difficult to raise taxes and, the cor- families in this country. public lands. I mean $10,000 is more ollary, taxes presently are not too Earlier one of my colleagues from than fair for a $13 billion gold claim. high. We should not make a constitu- the other side of the aisle stood up and To assess them a small royalty, the tional amendment, moreover, they say, carried on at great length about the same that private landowners do, State even if taxes were too high, because tax system of 40 years ago. The gen- landowners do, every other foreign na- tinkering with the Constitution does tleman was correct. The tax system 40 tion on Earth does, Indian tribes do, violence to the memory of our Found- years ago was much more fair. The top no, the U.S. Government will not have ing Fathers. rate was twice what it is today. The a royalty and under this amendment First on this question of whether or wealthiest Americans paid twice as we will never have a royalty and we not it is too easy. If it were not too much percentagewise as they pay will never get a fair share. My col- easy and not too hard, then the history today, corporations carried twice as leagues want to talk about operating of tax increases and tax reductions much of the total tax burden in this Government as a business, let us oper- would be on parity, we would have country as they do today, and they ate it as a business and stop giving about as many increases as decreases. were doing quite well in the days of things away. But that has not been the history. Dwight David Eisenhower. This amendment quite simply is Taxes have moved up and down, but So corporations were paying a larger going to again open up the cash draw- over time they have gone up and up share, the wealthy were paying a larger er. One-half of this body can vote to and up and up. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1497 When the tax was first introduced, tion. They said that this national gov- allowed the income tax. But there is no only 2 percent of the American people ernment should operate through a ma- restriction on the majority vote that is paid it. The top rate was 7 percent. In jority rule. There are special times needed to adopt new taxes. Since then, the 1950’s, the average family paid Fed- when we have a supermajority, and the we have been overtaxed. And so I be- eral income taxes at a rate of 4.9 per- gentlemen and gentlewomen from both lieve Congress needs to have the dis- cent. Today that is 25 percent. In 1993, sides of the aisle have talked about cipline to prevent it from raising taxes we had the largest tax increase in what those times are. But just raising so frequently and from providing for an American history, and since 1993, just taxes, I do not think, was intended to ever-expanding Federal Government. since 1993, in the 3 years subsequent, be one of them. This amendment makes it more dif- individual income taxes in America Finally, I really think that there is a ficult to vote for tax increases, and it have gone up over 25 percent. In the lot of gall bringing this amendment to puts a restraint on spending. last year, 1996 individual income taxes the floor today. Not only did our I believe, also, that it works well in went up 11 percent, even though the friends in the majority waive this piece the States. We consider the States the economy grew only 2 percent. We can- of the House rules several times when laboratory of democracy, where experi- not keep growing Federal taxes and the it was convenient during the last Con- ments are done. In Arkansas, there is a Government at a rate so far in excess gress, which I thought brought hypoc- tax limitation proposal. It makes it of the economy which supports it. risy to new heights, now they are ig- more difficult to raise taxes. It puts a This second argument, that we can- noring another April 15 deadline. You supermajority requirement on raising not amend the Constitution even if it see, today is not only tax day in this the income tax. It has worked well in is too easy because the Founding Fa- Nation, it is a day when by law, April Arkansas, it has worked well in other thers, after all, had a different idea in 15, Congress is to have approved a States, and so I believe that it is appro- mind, would be all fine except as has budget. priate. been pointed out, article 1, section 9 My question is, where is the Repub- Mr. Speaker, we need this amend- prohibited a tax of this kind, income lican budget? It has been nowhere in ment to restore confidence to the com- tax, at all. So even a unanimous Con- sight. We have meandered all over the mon man in America. They have lost gress, unanimous, would not be enough place, we have been a rudderless ship confidence because promises have been to impose income taxes at any level. It here in the House of Representatives in made and promises have not been kept. was the 16th amendment to the Con- this 105th Congress. Yet we are at- This will make it more difficult to stitution, not adopted until the 20th tempting again for the third time in raise taxes. It is needed to restore faith century, that gave us this problem, and the 105th Congress to rewrite the Con- in our democracy, in our institutions. it is perfectly appropriate for us to fix stitution of the United States. For that reason, I support the resolu- it with a constitutional amendment. Mr. CANADY of Florida. Mr. Speak- tion. In short, raising taxes should no er, I yield 3 minutes to the gentleman b 1730 longer be Washington’s first resort. from Arkansas [Mr. HUTCHINSON]. Government should not continue grow- Mr. HUTCHINSON. Mr. Speaker, I Mr. CANADY of Florida. Mr. Speak- ing so much faster than the economy thank the gentleman from Florida for er, I yield 4 minutes to the gentleman which supports it, and this tax limita- yielding me this time. I appreciate this from Illinois [Mr. MANZULLO]. tion amendment should be adopted. opportunity, Mr. Speaker, to address a (Mr. MANZULLO asked and was Mr. SCOTT. Mr. Speaker, I yield 3 very important issue that faces our given permission to revise and extend minutes to the gentleman from Penn- country today. his remarks.) sylvania [Mr. KLINK]. Mr. Speaker, I rise in support of the Mr. MANZULLO. Mr. Speaker, there Mr. KLINK. Mr. Speaker, I thank the tax limitation amendment. I do be- is a person who has been forgotten gentleman for yielding me this time. lieve, as some of my Democrat col- about in this entire debate over our Mr. Speaker, my problem is not that leagues have suggested, that you constitutional amendment to curb the we are attempting to amend the Con- should be careful about amending the powers of the U.S. Congress to raise stitution. My problem is that we are Constitution. I do not believe that it taxes. It is the person who gets up always, it seems, attempting to amend should be a knee-jerk reaction. I do not every day at the crack of dawn, packs the Constitution. This is twice in this believe it should be at the drop of a hat the kids’ lunch, gets the kids off to young legislative year that this House or something that should be simple to school, and he walks out the door with has attempted to amend the Constitu- do. It should be reserved for times of his lunch bucket, and oftentimes his tion of the United States, and the Sen- national difficulty, in areas in which wife will go to work also, and they ate has attempted to amend the Con- the framing document of our country work long hours, and they come back stitution once themselves. That was a needs to be reworked. I believe that we home, help the kids with the home- balanced budget amendment that the have such a national problem today work, and sit down on a Friday night, other body had taken up. that justifies the tax limitation begin to write some checks and realize It would appear to me that this amendment. I offer three points for that they are working harder than ever amendment is anathema to a balanced consideration. in their entire lives and taking home budget amendment. It requires a super- First, I do believe that we are over- less money. majority to raise taxes, but it does not taxed in our country. I think that is The reason for that is government is require a supermajority to spend the underlying issue that we face as we too big, it is too pervasive. The Federal money. So we go back really to policies address this proposed amendment. In Government has over 10,000 programs, of the 1980’s that took this country Arkansas, the average taxpayer pays and according to a chapter called from about a $1 trillion debt to over a $7,000 in taxes. This might not be much generational forecasts that appears in $4 trillion debt. It is OK that we con- money in Washington, DC, but in Ar- most of our annual budgets, by the tinue to spend, but we are not going to kansas it is almost one-third of a per- time their child who was born after raise the taxes to pay for it. son’s paycheck. I believe they need re- 1993 goes into the work force, that The other problem that I have is we lief, I believe that they are overtaxed. child will pay in State, local, and Fed- have this debate on the floor of the The Tax Freedom Foundation says eral taxes between 84 and 94 percent of House and across this country that my that we work until May 9 to pay our his or her income in taxes. friends who are amending the Constitu- taxes. I believe that is long enough and We have a crisis on our hands before, tion call themselves conservatives, say yet it goes longer each year. I believe and that is that some morning when that these are conservative principles. there is a point that you can reach in these Americans get up to go to work I do not think that rewriting the Con- society at which government takes too they are going to turn on the television stitution of the United States every much and confiscates too much of your set and find out that the dollar has time that there is a problem is truly work, and I believe we are at this been so devaluated that their pension something that is conservative. Our point. plans are worthless, that the economy Founding Fathers did adopt a very sim- In 1913, the people adopted the is going to collapse because of the tre- ple principle. They wrote the Constitu- amendment to the Constitution that mendous effect of the debt that $5.3 H1498 CONGRESSIONAL RECORD — HOUSE April 15, 1997 trillion has on this Nation. They are So in considering how to balance the do not think we should obfuscate that the ones who have been left out of this Federal budget and keep it balanced difference by amending the Constitu- debate. over the long term, all options for re- tion or pretending to attempt to do The man who wrote my office earn- ducing spending or raising revenues that. ing $1,000 a month, not married, no must be kept on the table. No area of And then there is the problem of children, paid over close to $900 a year the budget on either the spending or Medicare, is there not? Medicare would in Federal income taxes. He is paying revenue side should receive pref- have to be cut if they revealed your too much money because the U.S. Con- erential treatment such as requiring budget. And guess what? The Contract gress— it is too easy here in this body supermajority votes. with America is kind of under a very to raise taxes and to strap the Amer- Now do my colleagues understand heated examination right now. The ican people with the onerous debt that that? And if they do, what is their ar- scrutiny is intense; is it not? And as we are passing along to this generation gument against it? much as we have heard, and I think al- and to the one coming after it. Mr. Rudman goes on: most every day that we have been in That is why we need, we need the In the current drive to balance the budget session one of my distinguished con- shackles of a constitutional amend- by the year 2002 the prevailing consensus is servative Members of the body has ar- ment, as Jefferson said. This body has that the deficit should be eliminated by re- ticulated that Medicare will never be to be restrained in the incredible ducing spending. There is no sentiment for touched. But if they reveal their budg- spending that is going on and how easy raising taxes as there was in 1993. Thus the et, and when they do, Medicare I think it is to save one more tax, one more 4.3 proposed amendment seems to be fighting will be touched, and maybe that is a the last battle rather than focusing on the reason that we are dealing with a con- cents tax per gallon of gasoline to fuel task at hand and taking a long view into the one more program, one more invest- future. stitutional amendment that will kick in in the next millennium rather than ment, and I ask this U.S. Congress to And so I want to bring that to the at- take into consideration those people what you should be doing and should tention of my conservative friends, have been doing in the calendar year who are making this country, those that they are shooting themselves in who get up at the crack of dawn, those 1997. the foot in their zeal to accomplish who every day go to work and those Have a heart. Stop kidding the Amer- their goal in that they have friends who see their money wasted in so many ican people. They can take it. They can trying to do this on this side of the programs, and they are saying to the take it on the chin. If you got to cut aisle as well. So let us proceed in a ra- U.S. Congress today, on tax day, today programs, and you think it is in the tional manner. Why put this off into when they have to write their checks, national interest, that is what you are the Constitution, allowing judges to do ‘‘We are demanding you to be respon- here for. We make the laws. The law is our work? what we say it is, the Supreme Court sible so that you can pass on to our I presume everyone is serious and generation a legacy other than $5.3 permitting. sober when they say they want to bal- trillion in debt.’’ But let us be honest about it. Are you ance the budget. So why do we not Mr. SCOTT. Mr. Speaker, I yield 10 punting this afternoon? I mean, let us minutes to the gentleman from Michi- start balancing the budget? The one go through the constitutional process. way to start balancing the budget is to gan [Mr. CONYERS]. How many States, how many years, (Mr. CONYERS asked and was given produce a budget for this fiscal year, who will be here even if it were to be- permission to revise and extend his re- and that has not been done. come actual? Well, the answer is most marks.) I noticed the Speaker has not given of the self-imposed term limiters will Mr. CONYERS. Mr. Speaker, I assure any explanation for why the budget is not be here. A few more will have met the gentleman from New York [Mr. not being offered. As my colleagues their fate at the hands of their con- RANGEL] I will not use 10 minutes, but know, the President , and this is ele- stituency when they really understand to my distinguished colleague about to mentary, but I want to say it any way: that the contract was on them and not leave the floor that just was the pre- The President does not initiate the with them. vious speaker: I am one of those guys budget, the Congress does; and not just So I just ask for as much candor as that get up at the crack of dawn and somebody in the Congress, the House; we can muster in our debate on this work hard for a living, and on behalf of and not somebody in the House, the very crucial subject, and I would urge a lot of them I want to tell my col- Committee on the Budget chair, ap- anybody that is not yet settled in their league that as bad as we want to bal- pointed by the Speaker. And yet today, mind what they are going to do on this ance the budget, we would like it to be as the rhetoric escalates into the heav- resolution, vote against it. Mr. Speaker, thank the gentleman done with the majority of the 435 Mem- ens about the need to balance the budg- from Virginia [Mr. SCOTT] who has bers from the several States making et, we go into this fiscal year without done a magnificent job of leading the the decision as to how we do it as op- a budget at all and none in sight. debate on our side. posed to a supermajority. That poses, I Now it would be appropriate to all of us, and especially me, is that I get Mr. CANADY of Florida. Mr. Speak- think to ordinary Americans, a very er, I yield 1 minute to the gentleman serious problem because it does a ju- some explanation, if not from the Speaker himself, but from the leader- from Ohio [Mr. BOEHNER]. jitsu on the democratic process and al- Mr. BOEHNER. Mr. Speaker, there is ship of this body, the Republican lead- lows a minority to control the major- no mystery why we pay taxes in the ership, what is going on here? They ity. spring and we vote in the fall, and it is So on behalf of those Americans who would balance the budget, a process because Washington wants to give the do work, who do get up at the crack of that would take years, and yet their American people as long as possible to dawn, but still want majority rule, I job of producing a budget by April 15 forget how high their taxes are before would respectfully disagree with my goes by without hardly a murmur. Can they vote. It is because Washington colleague. somebody tell me what is going on does not want to have to explain to Now I would also like to bring to my here? I mean what does this mean? people why it takes so much of their colleague’s attention the statement of So I have to propose my own solu- income and gives so little. It is because Warren Rudman; my colleagues know tions as best I can, and I offer to stand Washington does not want to be held who he is; Sam Nunn, and they have all to be corrected. The budget for this fis- accountable for its big wasteful bu- pointed out, and these are the biparti- cal year due today is not being offered reaucracies, its bloated programs and san national balanced budgeters of the because some of the Members on their never ending growth, and it is because Nation, the Concord Coalition Commit- side want as much as a 30-percent tax Washington does not want people to tee. They ask us not to do what it is cut. notice that their taxes keep going up they are trying to do. They want to I remember the distinguished gen- to pay for this bureaucracy and to keep balance the budget, but they say in the tleman from Kansas, Mr. Dole, the late paying for this waste. first sentence: ‘‘We urge you to vote and present Mr. Dole; he said he want- against this resolution, a constitu- ed a 30-percent tax cut, and I think b 1745 tional amendment, because it would be that may create a little difference in Mr. Speaker, we are going to do detrimental to the budget process.’’ the ranks as to how we proceed, but I something about that today. We are April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1499 going to vote on a constitutional Another tax that is not talked about Hopefully, today we are going to take amendment to make it harder for much around here, but I consider it a a big step toward making that joke ob- Washington to raise taxes on the very important tax, and that is the in- solete by passing House Joint Resolu- American people. flation tax. If we in the Congress spend tion 62. Just within the last 7 years, a Demo- too much, we do not have enough reve- The evidence is already there that crat-controlled Congress hit working nues, we can send the bill to the Fed- making it harder to raise taxes actu- Americans with two of the biggest tax eral Reserve. The Federal Reserve cre- ally benefits government as well as in- increases in our country’s history. ates credit, and therefore diluting the dividuals. In States that have adopted Today we say, no more. value of our money, and the people suf- provisions similar to the amendment The typical family today currently fer because their cost of living goes up. we are voting on today, taxes have in- pays in taxes about as much as it cost So that indeed is a tax. creased more slowly, spending has them for clothing, food, and housing all We do not have a whole lot of choices grown more slowly, economies have ex- put together. And the typical worker on how we accommodate our spending panded faster, and employment has today gives everything they earn from habits here. First, we can tax people; grown more quickly. New Year’s to May 9 just to pay taxes. second, we can borrow; and the other Mr. Speaker, we are already working That is too much, and it has to stop. is, we can inflate. All of these are det- to balance the budget, decrease the size Today we ought to vote for this con- rimental. The important issue is to and scope of the Federal Government, stitutional amendment to require a limit government spending. and reduce spending. Let us also follow two-thirds vote in this House. We will not solve any of our problems the good example of the States by pass- Mr. CANADY of Florida. Mr. Speak- here until we address the serious sub- ing this amendment. er, I yield 4 minutes to the gentleman ject of what should the role of govern- Mr. CANADY of Florida. Mr. Speak- from Texas [Mr. PAUL]. ment be. If we continue to believe that er, I yield 3 minutes to the gentleman Mr. PAUL. Mr. Speaker, I thank the the role of government should be to from Florida [Mr. SHAW]. gentleman for yielding me this time. perpetuate a bankrupt welfare state Mr. SHAW. Mr. Speaker, on this day, Mr. Speaker, I would like to first and to police the world and tell people April 15, I am most reluctant to get up compliment the gentleman from Texas how to live their personal lives, quite and speak against an amendment [Mr. BARTON] for having brought this frankly, we are not going to get any- which, on its face, appears to be some- to the House floor. I think it is a won- where in solving our problems. We can- thing that we all should support. How- derful opportunity for us to discuss a not patch this together. ever, I think it is an amendment that very important issue and also to make Collecting more revenues would be we should not be putting into the Con- a proposal to do some good around detrimental. Collecting less revenues stitution of the United States. here. would put more pressure on us to spend The bill before us today does not in Limiting taxes happens to be an issue less money. But then again, it is not any way give the American people any that is dear to my heart and something going to deal with the subject of inter- tax relief. What it simply would do is I want to talk about. I have a philoso- est rates. to institutionalize into the U.S. Con- phy about taxes. One is that taxes real- What happens if this year the inter- stitution a provision, an antidemocrat est rates go up 1 percent? Which they ly hurt us twice, once when we take provision, and I do not mean Democrat may, because interest rates are rising the money from the people, then when party, I mean one having to do with de- once again. And if interest rates go up we go and spend it. So rarely do we mocracy; a provision that would say 1 percent, it adds $50 billion to our in- spend the money wisely, but the people that the minority can run this House. terest payment on our national debt. always seem to be hurt. Think about it for a moment. Under That is out of our direct control here I have yet in my many years experi- this constitutional amendment, 7 per- in the House or in the Senate. We can- ence in political life had anybody come cent of the population, through a vote not take care of that just by passing up to me and say, go to Washington in the Senate, could run the business of another law or raising taxes. and raise taxes. Everybody feels that Also, we do not have control of the the legislative body of this great coun- they are overtaxed. Anything that we business cycle. We should have much try of ours. could do to limit taxes I think would better control, because we understand When this came to the floor last be beneficial. and should understand the business time, I voted for it. Since then, I have Whether or not this amendment will cycle and we should prevent the been giving it a great deal of thought, solve all of our problems is another downturns. But sure enough, there will and that thought has been somewhat issue. Quite frankly, it is not going to be another recession, entitlement pay- around my support of the constitu- solve all of our problems. We have seen ments will automatically go up, put tional amendment that would require a proposal floating around for several more pressure on us with the deficit, us to balance our budget. years about balancing the budget. I am and also put more pressure on those Mr. Speaker, we should think for a not enthusiastic about the balanced who would like to say, well, if the moment when we have a situation budget amendment precisely because spending is going up, we have to take where we are putting into the Con- that amendment, in itself, does not care of the people, and what we need to stitution a provision where 7 percent of preclude what this amendment does, do is raise taxes. The easier, the better. the population of this great country and that is raising taxes in order to A very, very dangerous situation when can stop legislation. We will have put balance the budget. That would be it is easy to raise taxes. The Founders into position in the Constitution a con- very, very detrimental. of this country in no way intended that stitutional amendment that requires The important issue that we have to taxes on income should ever occur, let the Federal Government to balance its deal with is the level of government ex- alone be done easily. budget, and then we try to put a tax penditures. If we have a balanced budg- So this is a small effort in the right bill on the floor when funds may be et at $2 trillion a year, that is very det- direction. I ask for a yea vote on this desperately needed, not in a time of rimental. If we have an unbalanced amendment. hostility, but perhaps just needed in budget at $1 trillion a year, at least the Mr. CANADY of Florida. Mr. Speak- order to build up our own forces to American people would have more of er, I yield 1 minute to the gentlewoman compete with a force that is poten- their own money to spend. from Florida [Mrs. FOWLER]. tially hostile elsewhere in this world. This is an effort to move in the direc- (Mrs. FOWLER asked and was given As a leader of the free world and as a tion of limiting taxes, and I think this permission to revise and extend her re- leader of this entire world, this coun- is very, very important. There are a lot marks.) try could be brought to its knees by 7 of things, though, that are out of our Mrs. FOWLER. Mr. Speaker, there is percent of the population. That is abso- control. For instance, a small tax in- an old joke that asks the question: lutely unthinkable to me. crease is not going to be included here. What is the difference between death As much as I hate to vote against If we change the Tax Code and change and taxes? And the answer to that this amendment, and as much respect indexing, taxes will go up, and this will question: Death does not get worse as I have for the proponents of this not be included. every time Congress comes to town. amendment and what they are trying H1500 CONGRESSIONAL RECORD — HOUSE April 15, 1997 to do, and as much as I support them in amendment is practically a guarantee of legis- grams and to also duplicate local pro- the efforts of what they are trying to lative paralysis with the potential for devastat- grams as an intelligent way to spend do, this is not the responsible way for ing damage to our economy. money. Tax limitations work in the this great body to go. Mr. Speaker, Americans know that the fu- States; Eleven States have now adopt- It is time that we as Republicans get ture of their children and their grandchildren is ed tax limitations. In tax limitation away from the minority mentality that threatened by a growing mountain of debt. But States, taxes have grown more slowly, we seem to be carrying with us in this our problem is not taxing. Our problem is spending has grown more slowly, House. We control this House. We are spending. economies have expanded faster, and the party of lower taxes, and as long as What we are doing here this afternoon is the job base, Mr. Speaker, has also we can control this House, we will re- trying to legislate political courage. Unfortu- grown more quickly. The Federal Gov- main the party of lower taxes, and we nately, a host of legislative measures over the ernment and the national economy will not increase the taxes on the years designed to reduce our dangerous could get the same kind of benefits American people. budget deficit have failed. We now spend 25 with the adoption of the Barton legis- Let us have faith in ourselves; let us cents of every $1 just to pay interest on the lation. have faith in our own party; let us have national debt. Under these circumstances, it is The success of tax limitation has also faith in our willingness and our resolve no wonder we are losing our edge in a very encouraged new States to put limits in not to raise taxes on the American peo- competitive global economy. their State constitutions. Americans ple. That is where the vote should be. Once again, as was the case with the line- clearly want Federal tax limitation That is where the limitation should be, item veto, we have properly identified the too. Recent surveys show that 70 per- at the ballot box, where the American problem, but have developed the wrong solu- cent feel that way, and I would ask people elect their representatives to tion. This two-thirds tax amendment is wrong. that the body please, by an overwhelm- What we should be doing today is voting to send to this Congress. ing majority, support the Barton legis- cut spending, downsize Government, and pro- Mr. CANADY of Florida. Mr. Speak- lation for tax limitation. mote a save and invest in America tax pro- er, I yield such time as she may Mr. SCOTT. Mr. Speaker, I yield 51⁄2 gram that will allow us to create good jobs at consume to the gentlewoman from New minutes to the gentleman from Vir- good wages. Jersey [Mrs. ROUKEMA]. ginia [Mr. MORAN]. We must reform our spending and tax poli- (Mrs. ROUKEMA asked and was Mr. MORAN of Virginia. Mr. Speak- cies for sure. However, violating the fun- given permission to revise and extend er, I rise in opposition to this resolu- damental foundations of our democracy is not her remarks.) tion to amend the United States Con- salvation. It is apostacy and a serious erosion Mrs. ROUKEMA. Mr. Speaker, I rise stitution to require a two-thirds vote of our democracyÐof the people, by the peo- in opposition to this amendment and I to raise Federal taxes. I think The would like to associate myself with the ple, for the people. Let's not violate majority rule, the foundation Washington Post characterized it accu- remarks of the gentleman from Florida of our noble democracy. rately today with their editorial enti- [Mr. SHAW]. Mr. CANADY of Florida. Mr. Speak- tled, ‘‘A Show Vote On Tax Day.’’ But Mr. Speaker, Representative SHAW is right. er, I yield 2 minutes to the gentleman the Constitution deserves better than In search of a sure-fire method to address from Pennsylvania [Mr. FOX]. to be used as a political proper. the grim fiscal realities of high taxes and defi- Mr. FOX of Pennsylvania. Mr. Speak- It is a simple idea, but I think voting cit spending in America in 1997, we have er, I first want to take this opportunity for it, while it may give my colleagues come up with House Joint Resolution 62, the to thank the gentleman from Texas some brownie points with some of the so-called tax limitation amendment. However, [Mr. BARTON] for having the leadership antigovernment tax groups, it invites once again, we are threatening to approve an to bring this legislation to the House dangerous consequences for the future amendment to our Constitution that would floor today and for his steadfast efforts of our economy and our democracy. shred the very constitutional fabric of our rep- of making sure that the House has an b 1800 resentational form of government. opportunity to move forward with this The House leadership sought to avoid We have before us a proposed constitu- positive legislation. tional amendment that would require a two- The tax limitation amendment is a discussion of the serious con- thirds vote of the House and the Senate to in- modeled after State constitutions sequences that this could effect by by- crease net Government revenues by more which require a supermajority, Mr. passing the regular committee process than a de minimis amount. Ignoring the obvi- Speaker, a vote of their legislatures in with hearings and the kind of extensive ous ambiguity of this language, this proposed order to pass increases, a House amend- public debate that it merited. The reso- amendment raises the specter of the tyranny ment that would require a two-thirds lution fails to define what the term ‘‘de of the minorityÐthat one-third of either Cham- majority in both the House and the minimis’’ means in this legislation. ber can, in effect, hold the vast majority hos- Senate to raise taxes. This is a biparti- Quickly, sure, the gentleman is going tage. san measure which has wide support in to tell me that there was some com- I, too, am former history and government both Chambers. mittee discussion of it. teacher and I have a healthy respect for the Mr. Speaker, I would point out that Mr. BARTON of Texas. Mr. Speaker, principle of majority rule. The Framers of the four of the last five major tax increases will the gentleman yield? Constitution debated this issue at length be- were passed by less than a two-thirds Mr. MORAN of Virginia. I yield to fore enshrining majority rule as its foundation. majority. Those bills raised taxes on the gentleman from Texas. Since then, our Constitution, the model for Americans by $666 billion. Mr. BARTON of Texas. Mr. Speaker, emerging democracies around the globe, has From 1980 to 1987, taxpayers in States we followed absolute regular order this served us very well. I cannot believe that our with tax limitations in their State law year. We did not bypass the sub- current wisdom exceeds that of the Founding enjoyed a 2-percent decrease in per- committee, we did not bypass the full Fathers. sonal income paid in taxes. committee, we did not bypass the Com- Let us be clear. This amendment institu- Consider these facts also, Mr. Speak- mittee on Rules. We allowed any Mem- tionalizes minority rule in the area of tax law. er: Families paid just 5 percent of in- ber who wanted to to testify, and when It means that Representatives elected by one- come in Federal taxes in 1950, and yet it was before the subcommittee, those third of the U.S. population, or Senators rep- today the average Federal taxpaying in opposition, at least the Members in resenting less than 10 percent of the U.S. family pays 24 percent of its annual in- opposition, chose not to appear and population, could block tax policy that may be come in taxes. testify. supported by a vast majority of the American What could they do with that extra Mr. MORAN of Virginia. I understand people. money for education? What could they that. The American people are justifiably sick and do with that extra money to take care Mr. Speaker, I think the gentleman tired of what they see as political gamesman- of their mortgage? What could they do would agree that, relative to other ship, bickering, and gridlock in Washington. with that extra money in their pockets votes of consequence, there was a mini- My colleagues, if the American people are to take care of health care needs? mal amount of debate within the com- frustrated now, they should just wait to meas- I do not believe in money sent to mittee itself. Normally you go for sev- ure the effects of this amendment. This Washington to duplicate State pro- eral weeks, bringing in all the interest April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1501 groups that are involved in this and Speaker, five times when we have had cent more in Federal income taxes. I have given it study. But that is not my tax bills before this body we violated would suggest that they check their main point anyway. I do not want to the three-fifths requirement. There had accountants, and not blame it on the debate the gentleman at length. I ap- to be a waiver of the rule. tax system. It just is not real. It is not preciate the gentleman’s point of view Now, at the beginning of this Con- happening. on it. gress, we made it easier to completely Mr. Speaker, I ask the American pub- Mr. Speaker, I think that with ratifi- avoid that three-fifths requirement. lic, pull out your income taxes. If you cation of this amendment, anyone who What are we doing now, saying that we have had the same number of children, objects to any tax policy change could are going to have a constitutional lived in the same home, and have had have their day in court. Any changes amendment that requires two-thirds? basically the same salary, see if you that broaden the tax base, that close We know it will not work. It did not got a 25-percent increase in Federal in- corporate loopholes, that overhaul our work with the last Congress. I think we come taxes over the last 4 years. You tax system, be it the majority leader’s are playing with the Constitution and can go and check. You should have the call for a new flat tax, the chairman of we are doing a disservice to the Amer- records, because the IRS does require the Committee on Ways and Means’ in- ican people. I urge a no vote. us to keep them for the last 7 years. terest in the national sales tax, but Mr. BARTON of Texas. Mr. Speaker, That is point No. 1. even something far less radical like a I yield 2 minutes to the distinguished Point No. 2, but we see the dema- capital gains tax cut, could be con- gentleman from Texas [Mr. DELAY], goguery in many of these issues, be- tested in court. the majority whip. cause today is tax day. I just want to The resolution will prove unwork- Mr. DELAY. Mr. Speaker, I rise in talk about a few people who not only able. As the House leadership has al- support of this constitutional amend- play by the rules but pay by the rules. ready found with their once-celebrated ment to make it more difficult to in- Much has been said. A recent CRS tenet of the Contract With America, a crease taxes on the American people. I study says that 85 percent of those that meaningless rule change that required want to thank the gentleman from are not citizens of the United States a three-fifths vote for tax legislation Texas, Mr. JOE BARTON, and everybody but are here legally in this country, had to be waived by the Committee on else who has worked on this bill for guess what they did today, 85 percent Rules each time we took up any kind of their tireless efforts to protect the tax- of them? They filed Federal income tax bill before this body. It violates the payers of this country. taxes and paid them today. Moreover, spirit of majority rule and will take us People might laugh when the Con- you say, oh, but what about those who back to the very problems our Found- gress says stop us before we tax again. were born in this country? They are ing Fathers experienced under the Ar- But I assure the Members, this is no definitely more true blue and pay more ticles of Confederation. laughing matter. The American family Federal income taxes than those immi- I hope some of my colleagues will lis- is taxed too much by a government grants that came? Wrong, by 1 percent; ten to this, because our Founding Fa- that does too much to limit the free- 1 percent higher, those who were born thers did in fact require that 9 out of dom and responsibilities of the people. in the United States to those who come the 13 States ascertain the sums and This is not only about keeping a lid here as immigrants, in terms of those expenses necessary for the States to on the taxes that the American people who will file Federal income tax re- raise revenue. In other words, they had pay. It is about shrinking the size and turns today. That is the CRS study this requirement originally in the Arti- the power of the Federal Government. that was just issued. No. 3, what was interesting was those cles of Confederation. It did not work. Freedom works. Freedom sells. Free- today who filed a Federal income tax They found that this supermajority dom creates opportunities and provides return, on average, if you have in your was too much, that there were not two- all of us with a better quality of life. family somebody that was born not in thirds of the Members who had the But our freedom is threatened when we the United States of America but be- courage to do what they felt was nec- spend our children’s inheritances as we came a naturalized citizen of the Unit- essary to make this country survive. tax the estates of those who die. ed States of America, he reported, on So in 1787, at the Constitutional Con- The Federal Government can do bet- average, guess what, $5,000 more in vention, our Founding Fathers recog- ter if it does less. The American people earnings than the person that was born nized this defect. They established a will do better if they are allowed to do in the United States of America, on av- national government that would im- more. This amendment to the Con- erage, without an immigrant. It sounds pose and enforce laws and collect reve- stitution will lead to both results. I to me like pretty good politics, to have nues through a simple majority rule. urge my colleagues to vote for this somebody who comes to this country, There is a lot of debate on this. I amendment. contributes and works, and becomes an would like to also stress how unwork- Mr. SCOTT. Mr. Speaker, I yield 3 American citizen, to talk about immi- able the resolution will prove based minutes to the gentleman from Illinois grants being this drain on the econ- upon the experience we had in the last [Mr. GUTIERREZ]. omy. Congress, where we required a three- Mr. GUTIERREZ. Mr. Speaker, I Last, I would like to suggest to ev- fifths vote of approval for any tax in- have listened to some interesting dis- erybody, the same study, guess what: crease that we passed. In one of the cussion and debate here this afternoon Immigrants to the United States of first actions at the beginning of the about the justice of the tax system. I America, that is, those that are here 104th Congress, the Congress modified even heard one comment from the ma- legally, under color of law, pay $70 bil- clause 5(c) of rule XXI. It said that no jority side that suggested that Federal lion. Yes, that is right, they pay $70 bill or joint resolution, in other words, income taxes have risen 25 percent over billion in taxes. Yet, they use $13 bil- any action that carries a Federal in- the last 4 years. lion in that terrible, nasty welfare sys- come tax increase, will be considered I do not know who is doing the Mem- tem. Sounds like a real good deal to as passed unless it gets three-fifths of bers’ taxes on that side of the aisle, but me. the Members voting. I assure them that it is not 25 percent. Let us stop the demagoguery. Let us Compliance with that rule lasted no As Members of Congress, I think we get on with the truth. longer than 3 months, the time it took should be serious about our discussion Mr. CANADY of Florida. Mr. Speak- to bring the Contract With America and our debate and not try to inflate er, I yield 3 minutes to the gentleman Tax Relief Act of 1995 to the floor of figures or make up figures as we have from California [Mr. ROYCE]. the House for a vote. It did not work. a debate here. Mr. ROYCE. Mr. Speaker, if we went On April 5 of that year I came to this We have each earned the same salary back two generations ago, we would well and raised a point of order on a for the last 4 years, or we have re- find that American families paid 5 per- provision in that act that repealed sec- ported that same salary for the last 4 cent of their income in income taxes; tion 1(h) affecting the maximum rate years. It has been $133,000. If Members and if we went back one generation for long-term capital gains. It was a have had the same children and the ago, we would find it was 10 percent. tax increase. In fact, subsequently, the same home and the same exemptions, I And now we find today that it is about Parliamentarian agreed with me. Mr. do not see how Members paid 25 per- 20 percent. And that is just income tax. H1502 CONGRESSIONAL RECORD — HOUSE April 15, 1997 If we add on the State taxes, if we body to take on more responsibility, it economy and our work force and all of add on all the indirect taxes, we find became necessary to find more funding the things to go with it. that more is being spent on these taxes to do that. And with each additional One of my good friends just a few than if we add up clothing and food and percentage that we asked the American minutes ago talked about 7 percent of housing combined. people to send here, they lost part of the people of the country, and I am not If we look at the States that have their economic freedom. quite sure how that works out, but 7 tried to put tax limitation to work, 14 Imagine going from a brand new percent of the people making decisions States have done it, it works there. country with no taxes, no domestic for the rest of us or keeping us from Taxes grow more slowly, spending taxes, to a country today where Gov- doing the things that we might, 93 per- grows more slowly in those States, the ernment consumes very close to 40 per- cent of us presumably want to do. I economies expand faster. cent of our GDP. Forty percent of what would suggest this amendment goes in That is what is important to me, the the American people earn is sent to just the opposite direction because all economies expand faster when they are Washington, DC, and the State govern- it does, Mr. Speaker, is to set the stage limited as to taxation, the job base ments and the local governments for a national debate that will take grows more quickly. The Federal Gov- around the country. place in the States. All 50 States have ernment and the National economy, I So today they have only 60 percent of the opportunity to debate what our argue, should get the same benefits. their income to dispose of, where the rules here should be by which we enact Now, the House of Representatives is freedom that they had in terms of the economic freedom legislation or the already on record for tax limitation. economies of families and how they lack thereof. The House rules here require a super- spent their money, the freedom they Mr. BARTON of Texas. Mr. Speaker, majority vote for income tax increases, had was 100 percent. Today, the Amer- may I inquire as to how much time re- but this rule only covers this House, it ican people have a diminished eco- mains on each side? does not cover the next Congress. nomic freedom that amounts to 60 per- The SPEAKER pro tempore (Mr. SOL- If we go back to that vote that put cent on average of what they earn. OMON). The gentleman from Texas [Mr. those rules on this House, it was 279 to BARTON] has 131⁄2 minutes remaining, b 1815 152. Now, that is just 9 votes short in the gentleman from Florida [Mr. the 104th Congress of what we would Freedom is very important to us. CANADY] has 1 minute remaining, and need for a supermajority. Economic freedom is very important to the gentleman from Virginia [Mr. Tax limitation is necessary because us. I think, to Members of both sides of SCOTT] has 7 minutes remaining. of the current bias in the Federal Gov- the aisle, we all agree on that. Yet in Mr. BARTON of Texas. Mr. Speaker, ernment toward tax increases. Most 1990 we voted for a big tax increase; I I yield 11⁄2 minutes to the distinguished Government benefits benefit distinct did not, but the majority here did. In gentleman from Illinois [Mr. SHIMKUS]. special interests. These groups have 1993, Mr. Speaker, we voted for another (Mr. SHIMKUS asked and was given strong economic interest in banding to- big tax increase, and in both cases we permission to revise and extend his re- gether to lobby for additional increases eroded the economic freedom of the marks.) in spending. American people. Mr. SHIMKUS. Mr. Speaker, as a Taxpayers, however, are spread even- I happen to be an active member, in former U.S. history teacher, I taught ly throughout the country and find it fact the chairman of the Joint Eco- that the U.S. Constitution was a living difficult and uneconomical to band to- nomic Committee. Our function, as my document, let it live. This debate is gether to lobby to stop any particular colleagues know, is not to handle legis- about the Federal Government’s abil- tax increase. The inherent bias toward lation but to study what we do here to ity to raise taxes. It should be very tax increases can be balanced by this see what kind of an effect it has on the hard to do and it should not be easy. As amendment requiring a two-thirds pro- American economy and the American a new Member, one of my great privi- vision of this House to increase taxes. family and the American people and leges is to run on an issue, be able to And I will close by pointing out that the freedom they have in an economic cosponsor an issue, work for its pas- the Tax Limitation Amendment would sense to progress and work hard and to sage and eventually vote on its pas- have stopped the 1993 Clinton increase, have their families get ahead. sage. The people in my district want which was the largest tax in U.S. his- One of the studies we did shows clear- this amendment to make it harder to tory. The $275 billion in new taxes ly that, once the Federal Government raise taxes. It is time to match politi- passed by only one vote in both the begins to consume more than about 18 cal will with political strength. Let us House and by one vote in the Senate. percent of GDP, it begins to act as a pass this amendment. If a supermajority requirement for wet blanket on the economy generally. Mr. SCOTT. Mr. Speaker, I yield my- tax increases had been in effect then, So there are fewer jobs, pay scales get self 1 minute. the tax increases would have been stagnated as they are today when Mr. Speaker, this constitutional much smaller or never passed at all. wages are not going up, and so once amendment diverts attention from the Mr. CANADY of Florida. Mr. Speak- again we find that we lose the eco- fact that today with the deadline for er, I yield 4 minutes to the gentleman nomic freedom when the Government congressional action on the budget, from New Jersey [Mr. SAXTON]. gets too big and too expensive, when and there was no budget, we have (Mr. SAXTON asked and was given today we consume a full 23 percent of talked about debt; this amendment is a permission to revise and extend his re- gross domestic product, instead of the recipe for disaster. We can continue to marks.) 18 percent which many of us think is spend with a simple majority but a Mr. SAXTON. Mr. Speaker, there has about the optimum level, a full 5 per- two-thirds vote to pay for it. That is a been a lot said here today, but when centage points above what we ought to. recipe for more debt. the gentleman from Texas [Mr. Now, what this amendment to the Finally, Mr. Speaker, if we passed a DELAY], came to the well and spoke Constitution is about is to preserve the loophole for corporations that we about freedom, it really did ring a bell economic freedom that the American thought was going to be $500 million that I think rings very true. people deserve and expect and work and it was a mistake and was actually Our country was founded 220 years hard to achieve. Yes, we can make a a $5 billion loophole, we would have to ago, and it was the anticipation of the decision here collectively about how to take a two-thirds majority to close Founding Fathers that we would have spend their money. But they would that loophole or, if we cannot get the a relatively small and inexpensive Gov- much rather make decisions within two-thirds and we are trying to balance ernment that was initially funded by their family structures or as individ- the budget, we would have to cut edu- tariffs. And as a matter of fact, there uals about how they spend their cation, Social Security, Medicaid, Med- was not an income tax until I believe it money, how we spend our money back icare to pay for that mistake, because was 1922 or right thereabouts. home. that loophole is protected. And so, over the years, as it became So I think it is incumbent upon us to Mr. Speaker, we ought to call this necessary in the judgment of Members recognize these basic, very basic ele- the loophole protection act rather than that served in this House and the other ments of freedom as they apply to our something else. This constitutional April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1503 amendment is not fair and it should be can we not get along? Can the majority tleman from Florida [Mr. CANADY] has rejected. kind of tell us, what is it that they the right to close and has 1 minute re- Mr. Speaker, I yield the balance of want that they cannot get with the maining. my time to the gentleman from New majority of the vote? Why give up and The Chair recognizes the gentleman York [Mr. RANGEL], ranking member of throw up our hands and say, we have from Texas [Mr. BARTON]. the Committee on Ways and Means. got to make it impossible for us to be Mr. BARTON of Texas. Mr. Speaker, The SPEAKER pro tempore. The gen- able to raise taxes because we need I yield 6 minutes and 30 seconds to the tleman from New York [Mr. RANGEL] is two-thirds. We cannot get a majority gentleman from Arizona [Mr. recognized for 6 minutes. on anything. SHADEGG], who led the fight in the (Mr. RANGEL asked and was given So if we just want to take away the great State of Arizona to pass it at the permission to revise and extend his re- House’s ability and constitutional State level. marks.) right to assume this responsibility, (Mr. SHADEGG asked and was given Mr. RANGEL. Mr. Speaker, I took why do we not at least try the other permission to revise and extend his re- advantage of the opportunity to go to side? They have got bills over there marks.) the Hershey retreat in an effort to see now. They say they are going, they do Mr. SHADEGG. Mr. Speaker, as the whether or not we could get along bet- not have the constitutional right to distinguished gentleman from Texas ter than we have since the majority get it over here, I mean to enact it over indicated, I did push this measure as an was gained by the Republicans. I there, but it still has to come here. initiative in the State of Arizona, and thought it was very useful. In that Why do they not tell us with the 450 it passed with the support of 72 percent light, I view this constitutional amend- billion cuts, how are we going to pay of the voters. And like the other States ment, one that should have really been for it? which have adopted a measure of this brought to the floor on April 1 rather We all started out with the Repub- nature, Arizona’s economy has gotten than April 15, I assume that this is a lican leadership in reducing the budget. dramatically stronger since we passed jocular type of thing that is being done I really think that the President went this measure. to allow the American people to be- along with everything when he indi- I rise in strong support of it, and be- lieve that the majority is not every- cated that he would do it in 7 years be- fore I get into my remarks, let me ad- thing that they think it should be. cause it seemed like a great figure to dress one point raised on the other It seems to me, if there was any sen- me, so the Speaker said he thought it side. It was argued that this is a loop- sitivity about reducing taxes and cut- was a nice number. So he adopted the hole protection act. Nothing could be ting spending, that after I reviewed the nice number. further from the truth. This measure is Now how are we going to get the $450 Contract With America, it said that simple and straightforward. billion tax cut that the other side, at the rules of the House are not changed, Anyone identifying what they believe least they have a bill, unless we know that majority ruled. This was a point to be a loophole in our law, a corporate how we are going to pay for it? Have we that my dear friend, the gentleman loophole favoring some taxpayer, can given up on deficit reductions? Or is from Florida [Mr. SHAW], was making with a simple majority close that loop- who serves on the tax writing commit- this something that really comes up every April 15 where we can tell the hole provided that we return those tee. taxes that were being extracted to the It may be interesting to note that American people that we are going to reduce taxes? voters rather than keep them here in some of us that have been assigned to Washington. this committee, which is the constitu- If I was partisan, and since the re- treat I am not, I would think that the Mr. Speaker, this is a simple measure tional committee to raise the revenue designed to make it slightly harder for for the United States of America, not American people would think there is some kind of hoodwinking going on the Federal Government and this U.S. the other body, have refrained from here. How year after year after year Congress to raise your taxes yet one speaking on the floor in favor of this you are saying we are paying too much more time. type of thing because we respect the taxes and it should be reduced by half Let us begin by looking at the tax in- membership to do what the voters a trillion dollars and you cannot get a creases we have faced in this Nation want. bill together to reduce it by $1. You and the tax burden today. This chart To me it would make a lot of sense if cannot come together with anything. on my left shows us that in 1950, the we had a Contract With America and That is a challenge that comes from Federal tax bite required that an aver- we said we were reducing taxes by $300 our side of the aisle. age family with children send $1 to billion, the first thing we would do is The way this system is supposed to Washington for every $50 that it count the amount of votes that we work is the President proposes we dis- earned, $1 for every $50. have. And there sure are more Repub- pose. So we are in a minority. We do By 1996, the chart demonstrates a licans than there are Democrats. It not have a bill yet. We are waiting for dramatic change. That figure is not $1 seems to me that, when the Speaker of the majority to come up with some- in $50 sent to Washington, it is now $1 the majority of this House says that he thing to tell the President, we do not out of $4; earn $4, send 1 of them to wants to eliminate inheritance taxes like what you have done. We have got Washington, DC. That is a dramatic in- for the wealthy and just eliminate all a plan. crease in the Federal tax bite. of capital gains taxes, the staff esti- The last plan you had, the Contract Indeed, Mr. Speaker, just since 1980, mates it costs $450 billion. But I am a With America, was very politically the tax bite, as this chart shows, has minority, my colleagues are the major- successful, and that is to adopt Presi- more than doubled on the average ity. I am on the committee. I do not dent Clinton’s proposal that you re- American taxpayer. In 1980, they paid see any bill to reduce taxes by $450 bil- jected. And ever since then you have slightly over $2,000 in taxes. By 1995, lion. I have not seen a bill coming from said that you can enjoy bipartisanship that figure was almost $5,000, a dra- the majority since I have been on the since you lost your candidate on the matic increase in the tax bite in just 15 committee. way to the polls. years. I remember when the candidate for But that is behind us. Now is the Mr. Speaker, a famous Supreme President, he upped the ante $500 bil- time for us to work together to see Court Justice in the case of McCulloch lion. But in my committee, what we what can we do in the House of Rep- versus Maryland, John Marshall, once were doing is having hearings on rip- resentatives. If what you are saying is wrote that the power to tax involves ping up the entire tax system. So if the that having won the majority, having the power to destroy. chairman of my committee is having taken your contract to the people, that b hearings on pulling the tax system up we now have to have a constitutional 1830 by its roots and the candidate for amendment and turn it over to the And indeed, Mr. Speaker, it does. It President is interested in using the courts, you missed April fool’s day by 2 is close to destroying the economy of same system but decreasing taxes for weeks. this Nation. $500 billion, for God’s sake, before we The SPEAKER pro tempore. The That raises the question that some ask the courts to decide our tax policy, Chair would point out that the gen- argue that what we need to do is raise H1504 CONGRESSIONAL RECORD — HOUSE April 15, 1997 taxes to deal with the deficit facing with the power to tax equalling the Representatives this afternoon, or this this Nation. Let me point out that that power to destroy, it is time indeed to evening, to make it more difficult to is a false premise and that those who say that before we raise taxes on hard- raise their taxes. argue this measure will keep us from working American families and busi- Now, we have pointed out earlier in dealing with the deficit are absolutely nesses yet one more time, we say let us this debate that in the Constitution, as wrong. have a broad consensus, let us have adopted, there was a direct prohibition The Joint Economic Committee did a two-thirds of this body agree that it against any direct tax, a 100-percent study in April 1996, and it dem- needs to be done, and that is what we prohibition. We could not have an in- onstrated that when we look at the tax have done in each of these other in- come tax. The 16th amendment, passed increases this Congress has enacted in stances. It is appropriate that we do in 1913, said we could have incomes recent years, for every $1 in additional that. taxes, and since that time the average taxes imposed on the American public, Now, many people have come to the tax rate on the American people has we did not lower the deficit, we did not floor and spoken against this measure gone from zero income taxes to an av- lower it by a dollar, we did not lower it today and have articulated their views. erage of 19 percent. by 50 cents; indeed, we raised the defi- I think the issue was well summed up Taxable income is $2.6 trillion out of cit. For each dollar in tax increase, we by John Randolph. John Randolph $5.7 trillion personal income. American raised the deficit by $1.59, because we served as a Member of this House of taxpayers will be sending to Uncle Sam spent even more than we increased Representatives and later as a Member tonight $520 billion, half a trillion dol- taxes. of the U.S. Senate, and he said a quote lars in Federal income taxes. As a result of that situation, Mr. which I hope every American thinks We know that tax limitation works because we have 14 States that have Speaker, along comes a reasonable pro- about and I hope every one of our col- passed some form of tax limitation. posal. And we have heard today that leagues reflects upon, Mr. Speaker, and Four of those States have passed it in this is some sort of a radical motion, that is, he said, that it is not worthy of debate, that It has been said that one of the most deli- the last year, since this debate on the this is show or stage, or that this is not cious of all privileges is that of spending floor of the House last year. In those a substantive proposal. Mr. Speaker, other people’s money. States, as has been pointed out repeat- let me point out, that is again false. Mr. Speaker, this debate is about the edly, taxes go up more slowly; State Talk to the 80 million Americans, 80 right to spend other people’s money. spending goes up more slowly; the million Americans who live in States Let me just conclude by saying this economies grow faster; therefore, pri- that have already passed tax limita- is the fundamental issue right here on vate jobs are created more quickly. How would the supermajority re- tions. There are 14 States, as shown on the floor, the delicious privilege of quirement work if it were to become this chart, that have already enacted spending other people’s money, and the law of the land? It would say that tax limitations in their constitutions. that is what we enjoy when we impose an income tax increase, an estate and They are listed here, Arizona at the top tax increases on the American people. gift tax increase, an employment such and Washington at the bottom. That Should we not say that that requires as Social Security or Medicare tax in- covers almost a third of all Americans a broad consensus? Should we not say that given the other restrictions in the crease, or an excise tax increase, such living in States which have chosen to as the aviation tax, the gasoline tax, pass a measure virtually identical to Constitution, which have been weak- ened over time, that now is the time to would require a two-thirds supermajor- what we are trying to pass today. ity vote. Those are all taxes that are in As we have heard this afternoon, the say that before we raise taxes on the the Internal Revenue Code of this economies of those States are growing American people one more time, before country. faster than the economies of States we do as we are doing tonight all across America and reaching into their If we wanted to do something with which do not have a supermajority re- tariffs, user fees, voluntary part B wallets and taking more money out, quirement. I would point out that four Medicare premiums, or bills that do that we have a supermajority to do of those States have enacted these tax not change the Internal Revenue laws, that? I believe we should. I urge its limitation constitutional amendments we could do that without a supermajor- adoption. within the last year. That is, since this ity vote. If we wanted to substitute a Mr. BARTON of Texas. Mr. Speaker, last issue was debated on this floor 1 flat tax or a national sales tax for the I yield myself the balance of my time. year ago, in April 1996, four more Federal income tax, we could do that (Mr. BARTON of Texas asked and States have chosen to pass a measure with a simple majority, so long as the was given permission to revise and ex- of this type. amount of revenue intended to be tend his remarks.) Now, some argue we should not have raised was not greater than the current Mr. BARTON of Texas. Mr. Speaker, a supermajority requirement in the revenue of the Internal Revenue Code. Constitution, that somehow that is first, I want to thank the gentleman We know it will work. We know we thought to be antidemocratic. I sug- from Virginia [Mr. SCOTT], and the gen- need it. We know the Federal Govern- gest that it is not and that, indeed, as tleman from Florida [Mr. CANADY] for ment is spending too much money. The this chart indicates, in the original their floor management of this time. gentleman from Arizona [Mr. SHADEGG] Constitution there were seven such They have both been gentlemen, and I pointed out that every time we raise a supermajority requirements. think we have had a good debate. dollar of taxes, historically, spending Seven times the Founding Fathers We need to get down to brass tacks goes up $1.59. It is time to act. said this issue is extraordinary enough now. In plain common language, what Now, in my final summary I want to that we ought to require a supermajor- we are trying to do with this constitu- say once again that if we limit the ity. Three of those require votes here tional amendment is to make it more ability to raise taxes over time, we on the floor: For expulsion of a Mem- difficult to raise taxes. limit the ability to spend. If we limit ber, for override of a Presidential veto, I have listened to the opponents very the ability to spend, over time we force or for proposing a constitutional carefully this afternoon. I have yet to ourselves to focus on spending reduc- amendment. have any of the opponents say that the tion, not tax increases. Three additional amendments have amendment would not accomplish its I have not heard anybody say this been added to the Constitution which intended purpose; that is, if passed and amendment would not work. We know have also put in a supermajority re- put into the Constitution, it would it works in the States that have it. I quirement, each of them saying that make it more difficult to raise taxes. have not heard anybody stand up pri- for certain issues it is vitally impor- As Americans are scurrying around marily on the Democratic side and say tant that we not have a simple major- as we speak, trying to get their taxes they want to raise taxes. So my as- ity but that we have a broad consensus done or that extension form filled out sumption is that we can all vote in a of support. so they have the magic postmark of bipartisan fashion to make it more dif- I would argue that today in America, midnight, April 15, on their tax return, ficult to raise taxes. with the tax bite having been increased I think we owe it to them to do some- Let us vote for the Barton constitu- to the degree it has been increased, thing substantively in the House of tional amendment. Let us require a April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1505 two-thirds vote to raise taxes in the fu- In summary, I urge my colleagues to reject quirement including income taxes, estate and ture on the American taxpayer. this measure and move forward to agree on a gift taxes, payroll taxes, and excise taxes. The Mr. Speaker, I yield back the balance plan to enact tax relief for working families amendment would not cover tariffs, user fees, of my time. while balancing the budget by 2002. voluntary payments, or bills, having secondary GENERAL LEAVE Mr. GILCHREST. Mr. Speaker, in the land- revenue implications, if they do not change the Mr. CANADY of Florida. Mr. Speak- mark case of McCulloch versus Maryland, Internal Revenue laws. er, I ask unanimous consent that all America's first judicial giant, John Marshall, Accordingly, I urge my colleagues to support Members may have 5 legislative days wrote that the power to tax is the power to de- this necessary, commonsense amendment to within which to revise and extend their stroy. To be sure, in that instance Justice Mar- limit increase taxes. remarks on House Joint Resolution 62. shall was seeking to prevent my home State Mr. PACKARD. Mr. Speaker, I rise today in The SPEAKER pro tempore (Mr. SOL- of Maryland from taxing a Federal bank, but full support of the tax limitation amendment OMON). Is there objection to the request the principle remains. The fact is that taxation, this House will soon consider. This week, I am of the gentleman from Florida? taken to the extreme, can render meaningless reminded of the many hardworking families in There was no objection. the right to property, freedom of contract, or southern California and across the country Mr. CANADY of Florida. Mr. Speak- virtually any other freedom. For example, we who foot the bill year after year for Washing- er, I yield myself the balance of my can all agree that a high enough tax on news- ton's tax and spend mentality. time. paper profits would make freedom of the press The pockets of hardworking Americans The issue before the House today is moot. Excessive or capricious tax policy can should never be mistaken for the special inter- very clear: Should it be more difficult similarly erode nearly every other freedom we est cookie jar. For far too long, Washington for Congress to raise taxes? Should we enjoy in one way or another. has abused its power at the expense of Amer- put in place a requirement that will This amendment simply clarifies that Con- ica's families. In the last half century alone, help protect the American taxpayer gress' use of that potentially destructive the percentage of family income taken back from an overreaching Federal Govern- powerÐthe power of taxationÐshould be sub- for Federal taxes has jumped from 5 percent ment? to 24 percent. When you add in other taxes, This amendment is not, as some of ject to a higher approval standard than that of its opponents contend, a trivial pro- Congress' other powers as defined under arti- the average family loses 40 percent of their in- posal. It is a proposal that deals with cle I, section 8 of the Constitution. This come to government. That is simply unaccept- the fundamental issue concerning the amendment would make it subject to the same able. The 1993 Clinton tax increase of $275 bil- relationship between Government and super-majority requirements used for constitu- lion passed by only 1 vote. The fact that the the people. It is an amendment that tional amendment, veto override, or treaty rati- seeks to restrain Government and to fication. largest tax increase in the history of the world increase freedom. It is a proposal that It is true that the founders did not intend for came down to just one person's decision should be approved by this House and taxation to be subject to the same require- should disturb every American. If a super- sent to the State for their ratification. ments. But it is also true that their standards majority requirement for tax increases had I urge the Members of the House to were adopted prior to the ratification, indeed been in effect then, this tax increase would vote yes. the proposal, of the 16th amendment. Prior to have never passed. Mr. POMEROY. Mr. Speaker, I rise in oppo- the 16th amendment, the power of taxation Its not Washington's moneyÐand it is only sition to House Joint Resolution 62, a pro- meant tariffs and excise taxes. But the 16th right that we protect those who have worked posed constitutional amendment to require a amendment created the income tax which re- for itÐby enabling them to keep it. The sad two-thirds majority vote to approve bills that in- focused taxation on the livelihoods of individ- fact is, Americans are finding it harder and crease internal revenue by more than a de uals. When the rights of individuals to earn a harder just to keep food on the table, let alone minimis amount. living face potential threats from Government save for a child's tuition or pay for braces. This amendment, which its supporters freely power, there should be a higher legislative This legislation is a huge step in the right di- acknowledge will fail in the House and will not standard for Government to use that power. rection. We should protect American families likely even be considered by the Senate, The amendment before us creates such a from being pick-pocketed by Uncle Sam each serves only to postpone consideration of a standard. time our leaders fund a new program or refuse balanced budget plan that includes actual tax Mr. Chairman, today many people feel the to eliminate waste. Its tough love for big gov- relief for American working families. I would strain attendant to tax rates which have risen ernment bureaucracy and it is long overdue. I remind my colleagues that April 15 is not only continually over decades. On this day more encourage my colleagues to support the tax tax day but is also the day by which Congress than any other, our constituents are aware of limitation amendment. is required by law to have passed a budget the potentially destructive power of federal tax- Mr. BEREUTER. Mr. Speaker, this Member resolution. Unfortunately, because the majority ation. I am supporting this amendment to pro- rises in reluctant opposition to House Joint waited 2 months after the President submitted vide my constituents a reasonable level of pro- Resolution 62, the so-called tax limitation his budget on February 6 before engaging the tection against that. I urge my colleagues to amendment. Certainly it would be more politi- White House in serious negotiations, the do the same. cally expedient to simply go along and vote in House is today engaging in empty political Mr. GILMAN. Mr. Speaker, I rise in support support of a constitutional amendment requir- gestures rather than enacting a balanced of House Joint Resolution 62 to provide for a ing two-thirds approval by Congress for any budget plan with real tax relief. constitutional amendment requiring a two- tax increases. However, as a matter of con- Besides being a diversion from the impor- thirds vote for any bill that increases taxes. It science, this Member cannot do that. tant task of balancing the budget, House Joint is imperative, and appropriate on the day that As this Member stated when a similar Resolution 62 also violates the democratic all Americans must file their tax returns, that amendment was considered by the House 1 principle of majority rule. Congress approve a tax limitation amendment year ago, there is a great burden of proof to The Constitution specified just three in- making it more difficult for future Congresses deviate from the basic principle of our democ- stances in which a supermajority vote is re- to raise taxes. racyÐthe principle of majority rule. Unfortu- quired for approval by CongressÐoverriding This year, Tax Freedom Day comes on May nately, this Member does not believe the pro- the President's veto, submission of a constitu- 9, the 129th day of the year. This means that ponents of this amendment have met this bur- tional amendment to the States, and expelling the average working American will work 128 den. a Member from the House. With these three days, 1 day later than last year, to pay off There should be no question of this Mem- limited exceptions, the Founding Fathers ad- their tax bill. This is why I support tax relief for ber's continued and enthusiastic support for a hered closely to the fundamental principle of working Americans and why I support this balanced budget and a constitutional amend- majority rule. It is important to note that none amendment. ment requiring such. Tax increases should not of the exceptions relate to public policy issues As my colleagues know, during the 104th be employed to achieve a balanced budget. but rather to protecting the Constitution and Congress we voted twice on a constitutional That is why this Member supported the inclu- establishing the balance of powers between supermajority requirement to raise taxes. I sion of a supermajority requirement in the the executive and legislative branches of the was pleased to support this amendment then rules of the House which were adopted at the Federal Government. House Joint Resolution and plan on doing so today. beginning of the 104th and 105th Congresses. 62, on the other hand, would give a minority This amendment would only apply to However, to go beyond that and amend the of members the authority to control a fun- changes to the Internal Revenue laws. Reve- Constitution is, in this Member's opinion, un- damental component of fiscal policy. nue increases subject to the supermajority re- reasonable and it is the reason for why this H1506 CONGRESSIONAL RECORD — HOUSE April 15, 1997 Member will vote against House Joint Resolu- Nussle Ros-Lehtinen Souder b 1901 Oxley Royce Spence tion 62. Packard Ryun Stearns Mr. MENENDEZ, Ms. HOOLEY of Or- Mr. CANADY of Florida. Mr. Speak- Pallone Salmon Stump egon, Mr. WYNN, and Mr. VISCLOSKY er, I yield back the balance of my time. Pappas Sanchez Sununu changed their vote from ‘‘yea’’ to The SPEAKER pro tempore. All time Parker Sandlin Talent Paul Sanford Tauzin ‘‘nay.’’ for debate has expired. Paxon Saxton Taylor (MS) So (two-thirds not having voted in The Chair has been advised that the Pease Scarborough Taylor (NC) favor thereof) the joint resolution was gentleman from Missouri [Mr. GEP- Peterson (MN) Schaefer, Dan Thomas Thornberry not passed. HARDT] will not be offering an amend- Peterson (PA) Schaffer, Bob Petri Sensenbrenner Thune The result of the vote was announced ment. Pickering Sessions Tiahrt as above recorded. Pursuant to House Resolution 113, Pitts Shadegg Traficant A motion to reconsider was laid on Pombo Shays Upton the previous question is ordered on the Wamp the table. joint resolution, as amended. Portman Sherman Pryce (OH) Shimkus Watkins f The question is on the engrossment Quinn Shuster Watts (OK) and third reading of the joint resolu- Radanovich Skeen Weldon (FL) RESIGNATION AS MEMBER OF Ramstad Skelton Weldon (PA) COMMITTEE ON SMALL BUSINESS tion. Weller Regula Smith (MI) White The joint resolution was ordered to Riggs Smith (NJ) The SPEAKER pro tempore (Mr. Whitfield be engrossed and read a third time, and Riley Smith (OR) LUCAS of Oklahoma) laid before the Wicker Roemer Smith (TX) was read the third time. Wolf House the following resignation as a Rogan Smith, Linda The SPEAKER pro tempore. The Young (AK) Rogers Snowbarger member of the Committee on Small question is on passage of the joint reso- Rohrabacher Solomon Business: lution. CONGRESS OF THE UNITED STATES, The question was taken. NAYS—190 HOUSE OF REPRESENTATIVES, Mr. CONYERS. Mr. Speaker, I object Abercrombie Gonzalez Murtha Washington, DC, April 14, 1997. to the vote on the ground that a Ackerman Gutierrez Nadler Hon. NEWT GINGRICH, Allen Hall (OH) Neal Speaker of the House of Representatives, quorum is not present and make the Baesler Hamilton Oberstar The Capitol, Washington, DC. point of order that a quorum is not Baldacci Hastings (FL) Obey DEAR MR. SPEAKER: I hereby resign as a present. Barrett (WI) Hefner Olver member of the House Committee on Small The SPEAKER pro tempore. Evi- Bateman Hill Ortiz Business. Becerra Hilliard Owens dently a quorum is not present. Bentsen Hinchey Pascrell Sincerely, The Sergeant at Arms will notify ab- Bereuter Hinojosa Pastor WALTER B. JONES, sent Members. Berman Holden Pelosi Member of Congress. Bishop Hooley Pickett The vote was taken by electronic de- Blagojevich Hostettler Pomeroy The SPEAKER pro tempore. Without vice, and there were—yeas 233, nays Blumenauer Houghton Porter objection, the resignation is accepted. 190, not voting 9, as follows: Boehlert Hoyer Poshard There was no objection. Bonior Jackson (IL) Price (NC) f [Roll No. 78] Borski Jackson-Lee Rahall YEAS—233 Boswell (TX) Rangel b 1215 Boucher Jefferson Reyes Aderholt Davis (VA) Hulshof Boyd Johnson (CT) Rivers INDEPENDENT COUNSEL STATUTE Andrews Deal Hunter Brown (CA) Johnson (WI) Rothman Archer DeLay Hutchinson Brown (FL) Johnson, E. B. Roukema (Ms. JACKSON-LEE of Texas asked Armey Diaz-Balart Hyde Brown (OH) Kanjorski Roybal-Allard and was given permission to address Bachus Dickey Inglis Campbell Kaptur Rush Baker Doolittle Istook Capps Kennedy (MA) Sabo the House for 1 minute, revise and ex- Ballenger Dreier Jenkins Cardin Kennedy (RI) Sanders tend her remarks and include therein Barcia Duncan John Carson Kennelly Sawyer Barr Dunn Johnson, Sam extraneous material. Clay Kildee Schumer Ms. JACKSON-LEE of Texas. Mr. Barrett (NE) Ehlers Jones Clayton Kilpatrick Scott Bartlett Ehrlich Kasich Clement Kind (WI) Serrano Speaker, I too rise today to salute the Barton Emerson Kelly Clyburn Kleczka Shaw great American Jackie Robinson and Bass English Kim Conyers Klink Sisisky hope that we all will recognize the Berry Ensign King (NY) Coyne Kucinich Skaggs Bilbray Etheridge Kingston Cummings LaFalce Slaughter great step he made for all of us. Bilirakis Everett Klug Davis (FL) Lampson Smith, Adam It is because of that reason that I Bliley Ewing Knollenberg Davis (IL) Lantos Snyder Blunt Fawell Kolbe also rise to speak to the decision made DeFazio Levin Spratt by the of the United States of America, Boehner Foley LaHood DeGette Lewis (GA) Stabenow Bonilla Forbes Largent Delahunt Lipinski Stark Janet Reno. She made that under cover Bono Fowler Latham DeLauro Lofgren Stenholm of law and under the respect of the Brady Fox LaTourette Dellums Luther Stokes Independent Counsel Act, which first of Bryant Franks (NJ) Lazio Deutsch Maloney (NY) Strickland Bunning Frelinghuysen Leach Dicks Markey Stupak all says that, only if there are suffi- Burr Gallegly Lewis (KY) Dingell Martinez Tanner cient allegations of criminal activity Burton Ganske Linder Dixon Mascara Tauscher Buyer Gekas Livingston by a public person such as President, Doggett Matsui Thompson Vice President, Cabinet member or Callahan Gibbons LoBiondo Dooley McCarthy (MO) Thurman Calvert Gilman Lucas Doyle McDermott Tierney others, should there be an independent Camp Goode Maloney (CT) Edwards McGovern Torres counsel appointed. And second, if there Canady Goodlatte Manzullo Engel McHale Turner is sufficient evidence of criminal activ- Cannon Goodling McCarthy (NY) Eshoo McKinney Velazquez Castle Gordon McCollum Evans McNulty Vento ity by those covered persons and there Chabot Goss McCrery Farr Meehan Visclosky is an apparent conflict in the Justice Chambliss Graham McDade Fattah Meek Walsh Chenoweth Granger McHugh Department, should the Justice De- Fazio Menendez Waters partment not be the one to investigate. Christensen Green McInnis Filner Millender- Watt (NC) Coble Greenwood McIntosh Foglietta McDonald Waxman Clearly, Mr. Speaker, there has been Coburn Gutknecht McIntyre Ford Miller (CA) Wexler no evidence of intentional criminal ac- Collins Hall (TX) McKeon Frank (MA) Minge Weygand tivity or criminal activity of any kind Combest Hansen Metcalf Frost Mink Wise Condit Harman Mica Furse Moakley Woolsey by a Cabinet member, President or Cook Hastert Miller (FL) Gejdenson Mollohan Wynn Vice President of the United States Cooksey Hastings (WA) Molinari Gephardt Moran (VA) Yates with respect to campaign fundraising. Cox Hayworth Moran (KS) Gillmor Morella Young (FL) Cramer Hefley Myrick There is also no question that Janet Crane Herger Nethercutt NOT VOTING—9 Reno and the Justice Department have Crapo Hilleary Neumann the integrity to investigate. Stop this Cubin Hobson Ney Costello Lewis (CA) Payne Cunningham Hoekstra Northup Flake Lowey Schiff frivolity, stop following around and let Danner Horn Norwood Gilchrest Manton Towns us go on with the people’s business. Let April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1507 the Justice Department investigate as progress we need cooperation instead of me, Mr. Speaker, in supporting this they have been doing. confrontation. It is time to find a mid- bill. Mr. Speaker, I rise to speak on the request dle ground on which everyone can f of the majority party's request for the Attorney agree on and everyone can win. The SPEAKER pro tempore. Under a General to appoint an independent counsel to This commonsense approach is miti- previous order of the House, the gen- investigate possible fundraising violations in gation banking. tleman from Michigan [Mr. SMITH] is connection with the 1996 Presidential cam- Mitigation banking is a concept em- recognized for 5 minutes. paign. The Independent Counsel Act sets forth braced by regulators, developers and [Mr. SMITH of Michigan addressed very clear circumstances in which an inde- the environmental community. It is a the House. His remarks will appear pendent counsel may be appointed. balanced approach to improving the hereafter in the Extensions of Re- First, if there are sufficient allegations of wetland mitigation process. Mitigation marks.] criminal activity of a covered person and if banking recognizes the need to protect f there are sufficient allegations of criminal ac- our wetlands resources while balancing The SPEAKER pro tempore. Under a tivity by a person other than a covered person, the rights of property owners to have previous order of the House, the gen- and then an investigation or prosecution of reasonable use of their properties. tleman from Pennsylvania [Mr. GEKAS] that person by the Department of Justice may Wetlands mitigation banking allows private property owners to pay wet- is recognized for 5 minutes. result in a conflict of interest, and independent [Mr. GEKAS addressed the House. His counsel may be appointed. There must be lands experts to mitigate the impact their development has on wetlands. remarks will appear hereafter in the specific and credible evidence. I urge my col- Extensions of Remarks.] leagues to read the statute which makes this Those experts working with regulators f quite clear. The Attorney General has already do the mitigation in banks of lands convened a task force that will investigate which are set aside and restored to The SPEAKER pro tempore. Under a Democratic campaign fundraising. This does wetlands status. previous order of the House, the gen- not call for an appointment of an independent Years ago the Federal Government tleman from Wisconsin [Mr. NEUMANN] counsel and the Attorney General's decision adopted a no-net-loss wetlands policy. is recognized for 5 minutes. should be respected on this matter by all Due to the belief at the time that a [Mr. NEUMANN addressed the House. Members of Congress. majority of the Nation’s wetlands had His remarks will appear hereafter in the Extensions of Remarks.] f been destroyed, a whole system of reg- ulations were designed to stop further f SPECIAL ORDERS destruction of our wetlands, one part LINE-ITEM VETO IS The SPEAKER pro tempore. Under being the requirement of a landowner UNCONSTITUTIONAL the Speaker’s announced policy of Jan- to mitigate his or her wetland damage. The SPEAKER pro tempore. Under a uary 7, 1997, and under a previous order Quite frankly, traditional mitigation previous order of the House, the gen- of the House, the following Members is not working. It is too expensive, tleman from Texas [Mr. PAUL] is recog- will be recognized for 5 minutes each. time consuming and ineffective. Ap- proximately 90 percent of onsite miti- nized for 5 minutes. f gation is unsuccessful. Mr. PAUL. Mr. Speaker, I appre- The SPEAKER pro tempore. Under a Mr. Speaker, unlike other mitigation ciated very much the remarks made by previous order of the House, the gentle- projects, mitigation banks are com- the previous speaker regarding Jackie woman from Georgia [Ms. MCKINNEY] is plete ecosystems. Regulators usually Robinson. I think it would be interest- recognized for 5 minutes. require that more wetlands be restored ing to note that the great achievement [Ms. MCKINNEY addressed the in a bank than are destroyed in a of Jackie Robinson all occurred prior House. Her remarks will appear here- project. So instead of only trying to to affirmative action, and I think that after in the Extensions of Remarks.] protect remaining wetlands, with miti- should be noted. f gation banking we are actually in- Today, though, I would like to spend creasing wetland acreage. a few minutes talking about the WETLANDS RESTORATION AND What is more, because the mitigation courts. I have been a strong critic of IMPROVEMENT banks give economic value to wetlands, the courts, especially the Federal The SPEAKER pro tempore. Under a potentially billions of private sector courts, because so often the Federal previous order of the House, the gen- dollars could flow into restoring wet- courts seem to be unconcerned about tleman from North Carolina [Mr. lands and sensitive watersheds. the Constitution, and so often they do JONES] is recognized for 5 minutes. However, Federal legislation is need- a lot more legislation than they Mr. JONES. Mr. Speaker, I rise today ed. Mr. Speaker, mitigation banking should. to announce the introduction of H.R. has been occurring but is very limited Last week there was a court ruling 1290, the Wetlands Restoration and Im- because regulators have no statutory that I was very pleased with, and I be- provement Act. This legislation builds guidance. Also, investors are hesitant lieve they deserve a compliment. There upon the mitigation banking bill I in- to invest the money needed to restore was a Federal court judge by the name troduced last year and also the Federal wetlands without legal certainty. of Thomas Jackson last week in the guidance which was issued in 1995. The Wetlands Restoration and Im- district court who ruled that the line- My eastern North Carolina district provement Act will give wetlands miti- item veto was unconstitutional. Sim- includes a majority of the coast and gation banking the statutory authority ply put, he said, it was unconstitu- four major river basins; specifically, 65 it needs to flourish, and it will begin tional because it delegated too much percent of the land can be classified as restoring the wetlands that many powers to the President. It was clear in wetlands. The citizens are directly af- thought were lost forever. the Constitution that the powers to fected by wetlands and the numerous Specifically, the legislation requires legislate are given to the Congress. So regulations that protect the wetlands. the banks to meet rigorous financial I am very pleased to see this ruling and I have been contacted by farmers, busi- and legal standards to ensure that the to compliment him on this. ness owners and State and local offi- wetlands are restored and preserved To me, it was an astounding event cials, landowners and even the military over a long time, provides for ample really to see so many a few years back for advice and guidance in hopes of opportunity for meaningful public par- pass the legislation that gave us the reaching a balance between protecting ticipation, and, third, the bank itself line-item veto, and so often the pro- these valuable wetlands and improving has a credible long-term operation and ponents of the line-item veto was made water quality but also allowing for eco- maintenance plan. by individuals who claimed they were safe development. This legislation can and should be a for limited government. But this item, Quite frankly, these different opin- bipartisan effort to ensure that in the the line-item veto really delegates way ions have led to years of confrontation next century we will do what we have too much power to the President, is un- instead of reaching common sense solu- to do in order to protect valuable wet- constitutional, and if we believe in lim- tions. I believe that in order to make lands. I hope my colleagues will join ited government, we ought to believe H1508 CONGRESSIONAL RECORD — HOUSE April 15, 1997 in maintaining this power in the House NOMINATION OF ALEXIS HERMAN I have no illusions, Mr. Speaker. I of Representatives and in the Senate. AS SECRETARY OF DEPARTMENT know she will be overwhelmingly con- The court ruled that it just is not OF LABOR firmed, but the Senate should not con- constitutional for a President to be The SPEAKER pro tempore. Under a firm someone who has gotten rich for able to rescind an appropriation or spe- previous order of the House, the gen- very little work or investment at great cific tax or a specific tax benefit, or for tleman from Tennessee [Mr. DUNCAN] is expense to the taxpayer. No one should even that matter, a regulation. This is recognized for 5 minutes. be put in charge of a major department far and beyond anything intended by Mr. DUNCAN. Mr. Speaker, very soon of the Federal Government who has the writers of the Constitution. I am the other body will vote to confirm such a cavalier disregard for the tax- convinced the founders of this country, Alexis Herman as Secretary of Labor. I payer. the writers of our Constitution, would am sure that the Senators will vote al- At the very least, Mr. Speaker, I cer- have been proud of this ruling. most unanimously for her because no tainly hope that when she is confirmed one has been asking the tough ques- The line-item veto gives too much that she stops all of this cronyism and tions that need to be asked about this power to the President. It gives the political and financial wheeling and nomination, yet the liberal magazine, President political power. It gives him dealing while she is in office. Also, I The New Republic, has a scorching ar- the chance to lobby for his particular hope the national news media will stay ticle about Ms. Herman in its current piece of legislation with the threat on guard and closely question every issue. that if you do not vote for what I want, single contract the Department of The New Republic would ordinarily Labor enters into under her leadership. I can line-item veto that special thing be one of the strongest supporters for that you like for your district. Is she going to give all the contracts to someone like Ms. Herman, but listen to her friends and pals and political bud- Having been in the Congress prior to what The New Republic has to say dies? this term for several years, I had been about her. ‘‘It would not be quite accu- lobbied on a few occasions by conserv- rate to say that Herman’s political ca- I close, Mr. Speaker, by repeating the ative Presidents, and the only time reer has been tainted by cronyism. Her words from The New Republic, not my they ever called was for me to vote for political career is cronyism. For Her- words, but theirs. ‘‘It would not be more spending, never less spending. So man, it seems government has meant quite accurate to say that Herman’s I see the line-item veto as something a little more than a way to enrich herself political career has been tainted by President can use actually to enhance and her friends.’’ cronyism. Her political career is crony- or increase spending, not to reduce The President should reconsider this ism. For Herman, it seems government spending, which is the intent. nomination in light of all of the re- has meant little more than a way to enrich herself and her friends.’’ Not my The line-item veto will still be ruled ports in The New Republic, The Wash- ington Times, and other publications words, Mr. Speaker, but those of The on again in the Supreme Court. I am New Republic. Surely we can do better sure it will be appealed. I will be anx- concerning questionable financial deal- ings. It appears that Ms. Herman has for one of the highest offices in our iously awaiting to find out exactly land. what occurs there, but already in the spent her career doing political wheel- corridors I hear a fair amount of grum- ing and dealing at great expense to the [From The New Republic, April 28, 1997] American taxpayer. Let me mention bling among our fellow Members, Mem- DISHONEST LABOR bers who are saying, I wonder what the just two examples. (By Jonathan Chait) President is going to do. Is he going to Ms. Herman was paid $600,000 simply take his veto pen out and line-item out for advising on hiring minority firms Richard Shelby has distinguished himself a special project. I think that is a jus- for construction of the Federal Tri- in the United States Senate mainly by his tifiable concern. angle project in Washington, DC. Six passionate and oft-professed hatred for the hundred thousand dollars is an unbe- Clinton administration. Indeed, he has made I think it is important that we con- lievably exorbitant fee for this type of a career out of Clinton-hating, once pro- cern ourselves about these issues be- work. Then the project was criticized claiming gleefully that his animosity for the president formed the basis of his popularity cause the main goal that we ought to for its very poor job in hiring minority have is to follow our oath of office, in his home state of Alabama. In February firms, the very thing for which Ms. 1993, before other Democrats had even pol- which is to obey the Constitution, and Herman was being paid. The Senate we should not be passing legislation ished off the leftover champagne from Clin- should have subpoenaed Ms. Herman ton’s inauguration, Shelby attacked the that disregards the Constitution. and her records and questioned her in White House for raising taxes. Clinton retali- When the judge ruled, he had a state- great detail about exactly what she did ated by moving ninety NASA jobs out of Ala- ment that was somewhat out of the or- to get all of this money. This project, bama. The relationship went downhill from dinary, but to me rather profound. He with interest, financing and all of the there. Just after the 1994 elections, Shelby said that it is critical that we maintain shed his last Democratic vestiges and joined sweetheart deals, is going to cost $2 the Republican Party. Like Strom Thur- the separations of powers in order to billion, according to the GAO, and be mond and other Dixiecrat-turned-Repub- preserve liberty. That is the purpose of the most expensive Federal building licans, Shelby took to the GOP faith with the separation of powers. It is to pre- project in history. more fervor than most lifetime believers. As serve liberties. It was designed delib- Then there is the Market Square a reward, his new party handed him the erately, specifically, and we must cher- project, also in Washington, DC. Ac- chairmanship of the Intelligence Committee, ish it. cording to The Washington Times, Ms. from which Shelby resumed his antipathetic ways: over the last two months he almost I have to compliment those individ- Herman was reportedly given a 1-per- cent ownership primarily because of single-handedly harangued Anthony Lake uals from the other side of the aisle into forsaking his nomination for CIA direc- who brought suit, took it to court, and her connections to Washington, DC tor. Mayor Marion Barry. This 1-percent in- insisted that this be ruled on with the On March 19, still basking in the afterglow sincere belief that it is unconstitu- terest may now be worth as much as of Lake’s demise, Shelby spoke before the tional to have a line-item veto. I appre- $500,000, which she got to be a minority Senate Labor and Human Resources Com- ciate that very much. partner, even though she never in- mittee, which had gathered to decide the vested any of her own money. fate of another controversial Clinton nomi- f There are other examples, Mr. Speak- nee, Labor Secretary-designate Alexis Her- er, and every Member of the other body man. On this occasion, however, Shelby The SPEAKER pro tempore. Under a should read this article in the current came to praise, not bury, a Clinton nominee. previous order of the House, the gen- issue of The New Republic before they In proud, almost pious tones, he introduced tleman from Indiana [Mr. MCINTOSH] is vote to confirm Ms. Herman. The title Herman as if she were a conservative con- recognized for 5 minutes. vert. ‘‘She’s worked in the vineyards,’’ he de- of the article is ‘‘Dishonest Labor.’’ I clared. ‘‘She’s worked in the Democratic [Mr. McINTOSH addressed the House. will be sending every Member of the Party. She’s worked in the White House. She His remarks will appear hereafter in other body a copy of this article tomor- has earned her way the hard way: by hard the Extensions of Remarks.] row. work.’’ Shelby wasn’t the only senator April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1509 cooing. Other, normally belligerent Repub- relationship with Washington Mayor Marion questions posed by the Senate Labor Com- licans burbled equal goodwill. Their few for- Barry, who held considerable sway over mittee. When asked if she had ‘‘extend[ed] ays into the known areas of controversy re- which firms received building contracts in any courtesy or provide[d] any benefit’’ to garding Herman were so polite as to be al- the district. Mendelsohn later insisted that Weaver before or after the selling of A.H. most apologetic. The four-and-a-half-hour Herman’s clout played no part in his deci- Herman & Associates, Herman replied that love-in ended in smiles and mutual praise, sion. she had not. Lockhart, questions, argued the prelude to an expected overwhelming In 1989, Herman became chief of staff at that it didn’t matter if Herman had mis- confirmation by the Senate. the Democratic National Committee, work- stated the truth to the Senate. ‘‘If you con- How striking is the contrast between Her- ing directly under another mentor, Ron tract someone and they do the work,’’ he man’s cruise to confirmation and the experi- Brown, then party chair, later secretary of said, ‘‘I don’t see how that’s a benefit.’’ Her- ences of other Clinton appointees. Nomina- Commerce. Her firm, now A.H. Herman & As- man declined, through Lockhart, to be inter- tion struggles have plagued Clinton from the sociates (Green had gone into investment viewed prior to confirmation. beginning, Lake’s ordeal providing only the banking), remained under her control. The Herman won the nomination for secretary most recent example. To be sure, the Senate next year Mendelsohn hired her firm to help of Labor from Clinton at least in part for the has given a bye to a few Clinton nominees. him win an even bigger contract. For same reason she got her first big deal from But those exceptions, like Madeleine $600,000, A.H. Herman designed Mendelsohn’s Mendelssohn: the president needed to fill a Albright or William Cohen, arrived with im- affirmative action plan. Mendelsohn won the quota. Ron Brown’s unexpected death in pressive re´sume´s, untainted by scandal. Her- fiercely contested contract, although his April 1996, and the departure of Hazel man, by marked contrast, is perhaps the company had been underbid by hundreds of O’Leary and Mike Espy, had left the Clinton least qualified—and certainly the most scan- millions of dollars and had given what one Cabinet with just one African American, and dal-plagued—nominee that Clinton has put knowledgeable insider described as a vastly no black women. But, as in her building deal, forth over the course of his presidency. Her inferior proposal. Mendelsohn claims that Herman and more than her sex and race harmonious confirmation is not merely curi- Herman’s post at the DNC played no role in going for her. She benefited, once against, ous, but perverse: the intellectual and ethi- either his decision to hire her or the govern- from political cronyism. In this instance, her cal debasements that ought to have disquali- ment’s decision to award the contract to old friend and consulting ally Jesse Jackson fied Herman are the very things that have Mendelsohn. lobbied Clinton to pick her. saved her. Later, the Mendelsohn-Herman building Herman’s nomination represents a marked It would not be quite accurate to say that deal came under fire in Congress—because, ideological shit in the administration’s eco- Herman’s political career has been tainted ironically, some congressmen thought its af- nomic thinking. During the first term, Labor by cronyism. Her political career is crony- firmative action program was not aggressive Secretary Robert Reich’s liberalism ism. For Herman, it seems, government has enough. According to numerous press ac- counterbalanced the moderate Wall Street meant little more than a way to enrich her- counts at the time, Herman took her DNC impulses of Treasury Secretary Robert self and her friends. Herman’s Washington clout to the Hill to lobby for continued fund- Rubin. Reich’s influence stemmed from both career dates back to the Carter administra- ing, a move widely criticized as a conflict of his academic heft and from his long-standing tion, where she headed the Women’s Bureau interest. Herman recently wrote to the Sen- relationship with Clinton. Herman, with nei- of the Department of Labor. There she ate Labor Committee that she has ‘‘no recol- ther, could not dream of challenging Rubin. linked up with Little Rock civil rights pio- lection of lobbying either Members of Con- ‘‘It’s like the New York Yankees against neer and Clinton friend Ernest Green, who gress or their staffs.’’ Her spokesman, Joe ‘Farm Team To Be Determined.’ ’’ laughs an ran the department’s Employment and Lockhart, has denied outright that she lob- administration official. Training Administration (and who is cur- bied for Mendelsohn. But, according to a 1990 Its seat at the table sacrificed for the sake rently playing a supporting role in the Clin- article in The Washington Business Journal, of diversity, organized labor went through ton fundraising scandals). Following the 1980 ‘‘sources at the House Government Oper- the classic stages of grievous loss. First, de- presidential election, the department fran- ations Committee’’ maintained that Herman nial. Labor leaders, refusing to accept the fi- tically shoveled millions of dollars in grant ‘‘did not hesitate to appear at meetings be- nality of Clinton’s choice, preferred former money out the door before the Reagan ad- tween legislative aides and the Delta Team Pennsylvania Senator Harris Wofford as an ministration could take over. The largest [Mendelsohn’s group].’’ The article reported alternative. When Wofford didn’t fly, labor grants went to two sources: a training pro- that Mendelsohn had ‘‘said he had asked Her- threw its support, in quick succession, be- gram that employed Green and Herman be- man to go to the Hill to address concerns hind Esteban Edward Torres and Alan fore their Labor tenure, and a youth training about minority participation in the project Wheat, both minorities with pro-union program run by Jesse Jackson, a close Her- because she had written the plan.’’ records in Congress. These progressively man friend. In 1981, Green and Herman Mendelsohn now denies having asked Her- more humiliating failures hastened the sec- formed a diversity consulting firm, Green- man to lobby and insists the 1990 article ‘‘got ond stage: anger. ‘‘The not-for-attribution Herman & Associates Inc., which got a quick a lot of things wrong.’’ comments of labor leaders I talked to the boost from Jackson. In those years, the rev- Despite the alleged conflict of interest, day of Herman’s appointment ranged from erend frequently threatened boycotts of com- Herman’s political stock continued to rise. rage to—well, rage,’’ wrote liberal columnist panies he deemed insufficiently diverse. With Ron Brown devoting much of his time Harold Meyerson in The Sacramento Bee. When Jackson’s targets sued for peace, ac- to fund-raising, Herman ran the day-to-day The third stage: bargaining. AFL–CIO Presi- cording to media accounts, he recommended operations of the 1992 convention. It was not dent John Sweeney met with Jackson and that they hire Green-Herman & Associates. unrewarded labor. A U.S. News & World Re- Clinton. Though none could confirm it, sev- The diversity consulting business proved port story the following year reported that eral labor officials privately expressed a be- lucrative for Green & Herman. Corporations she enjoyed frequent limousine service—over lief that the administration had granted hire diversity consultants mainly to avoid $6,000 worth during one two-week stretch Sweeney more say in staffing lower-level lawsuits. Thus, the two enjoyed a particular alone—and $3,500-per-month rent, all on the jobs at Labor. This led, at last, to: accept- advantage: as consultants, they could sell party’s dime. ance. ‘‘Once it became clear that the admin- advice on complying with the affirmative ac- In late 1993, after becoming White House istration chose Herman, there was no point tion laws that, as government officials, they director of public liaison, Herman sold her in opposing her,’’ sighs one labor official. had enforced. firm to longtime friend Vanessa Weaver. AFL–CIO officials now maintain, somewhat One way to comply with those laws, it Then, while working at the Office of Public ahistorically, that their support for Wofford turned out, was to give Alexis Herman a Liaison, Herman recommended—as she later are based on a big misunderstanding: they great deal of money. Bob Mendelsohn, a real- admitted in a written response to the Senate would have picked Herman first if only they estate developer who had met Herman while Labor Committee—that both Weaver and had known she wanted the job. he was working for the Interior Department Weaver’s sister be included on a trade mis- With the Democratic coalition in line, Her- under Carter, quickly figured this out. In sion to Mexico. The sisters were so included, man’s fate now rested with the Senate. 1986, he gave her a 3.34 percent stake in his and later donated $25,000 apiece to the DNC. Nominally, her key hurdle was the Senate venture to build a complex of offices and But the business relationship between Her- Labor Committee, chaired by Jim Jeffords of condominiums in downtown Washington. man and the Weaver sisters apparently goes Vermont. In reality, it was up to Majority Herman sold part of her holding and recently back even further. According to payroll doc- Leader Trent Lott, who initially resisted valued the rest at somewhere between uments, the DNC paid Weaver $15,000 in con- granting the chairmanship to the moderate $500,000 and $1 million, a strong return for an sulting fees during the 1992 convention run Jeffords. Jeffords won the chair, which he investment of zero dollars. Mendelsohn hand- by Herman. Neither several former conven- had earned by seniority, only by agreeing to ed out similar deals to two other limited tion staffers nor Lockhart were able to say, defer to the leadership’s wishes on any im- partners, bringing the minority ownership to when asked, what precisely Weaver did to portant matters. In February, Lott bottled 10 percent, in order to comply with federal earn her money. According to the 1992 DNC up Herman’s nomination in order to force affirmative action guidelines. Mendelsohn Employee Handbook, Herman had respon- Democrats to allow a vote on a ‘‘comp time’’ could have bestowed this windfall upon any sibility for reviewing all contracts, meaning bill that would permit employers to sub- number of more needy black Washing- that, at minimum, she approved hiring Wea- stitute extra vacations for overtime pay. tonians. But Herman had something that es- ver. Why does this matter? Because it ap- Seeking a pretext for delaying Herman’s caped her less fortunate cohabitants: a tight pears to contradict her written responses to hearings, Lott ruminated publicly over her H1510 CONGRESSIONAL RECORD — HOUSE April 15, 1997 role in organizing White House coffee ses- and 111,000 IRS employees who do not having to pay the taxes twice, but she sions with potential donors. Many of those know which forms are correct and did have to pay a penalty. The IRS donors were black. When a reporter ques- which forms are not. brought the whole matter up. She was tioned McCurry about this, he pounced: ‘‘I Another study showed that last year fine. can’t believe the majority leader would sug- gest she’s disqualified from serving as sec- on questions to IRS agents, over 8 mil- Again, Mr. Speaker, it is just a mat- retary of Labor because she attempted to en- lion of the questioners were given ter of the system is too chaotic, too courage African Americans to participate in wrong answers. It is time to change our confused for IRS agents to fairly ad- the political life of this nation.’’ Lott, who tax system. minister it themselves. So the time to had suggested nothing of the sort, fumed. We have, I think, a lot of good em- debate a flat tax, and the Armey flat But the White House had Lott where it want- ployees at the IRS, and yet in the same tax proposal is that you pay 20 percent, ed him. The Herman nomination became a hand we have a system that is impos- basically, of what you earn. The only civil rights issue. They had thrust Lott into sible for them to work with, a system deduction, I believe, that the gen- his nightmare role of George Wallace, block- ing the doorway of the Labor Department. that cannot be audited. Congress has tleman from Texas [Mr. ARMEY] is pro- African American and feminist organizations sent in auditors to the IRS, and their posing is for dependents, but no other rushed to the White House to attack Repub- books are not in good enough order for deductions. You can fill out your tax lican delays. Even the AFL–CIO chimed in, us to audit. form on a postcard. How many Ameri- demanding ‘‘immediate hearings on the nom- Now, what would happen to the busi- cans sitting at home tonight wished ination of this African American woman.’’ nesses back home if the IRS agents they had that option? Republicans, it turns out, were all too came to their door and said, ‘‘We want The other proposal I understand is happy to oblige. And here lies the true per- to see your books,’’ and they would for a consumption tax. It is a tax sys- versity of Herman’s nomination: Congress, in the position of helping to select its foe, say, ‘‘Well, we cannot be audited, our tem that rewards savings and it taxes wants a pathetic Labor secretary. The pre- books are in too much disarray’’? consumers when they spend money. I vious one, Reich, helped Clinton push b 1930 believe both these proposals are good. I through a higher minimum wage, which believe both should vigorously be de- most Republicans consider the low point of Yet that is the standard that the IRS bated. I look forward to the debates. As their last Congress. Reich’s successor will be has. We have spent $4 billion on a tax far as I am concerned, the time has charged with fighting Republican efforts to automation system for the IRS, and come. Let us get it done. pass legislation limiting unions’ powers to they are no more automated now than f negotiate in the workplace and organize po- they were 10 years ago when we start- litically. Therefore, the worse the secretary, ed. THE INTERNAL REVENUE SERVICE the more scandal-plagued and the less pol- Mr. Speaker, I believe that the time icy-focused, the better. Herman’s lack of The SPEAKER pro tempore (Mr. qualifications became, ironically, her strong- is right for us to vigorously engage in LUCAS). Under a previous order of the est qualification. ‘‘She will be an ineffective a debate on tax simplification or in a House, the gentlewoman from Washing- Labor secretary,’’ explains a conservative ac- debate on a consumption tax. It is time ton, [Mrs. LINDA SMITH] is recognized tivist who works closely with Senate Repub- for us to say that the current tax sys- for 5 minutes. licans. ‘‘There’s just a general view that tem is impossible, it is counter- Mrs. LINDA SMITH of Washington. ‘What damage can she do us? If we put some- productive. Businesses and individuals Mr. Speaker, sometimes we come to body else in there who’s effective, it’ll be a are spending too much time trying to the end of the day and we just talk much bigger headache.’ ’’ Indeed, Republicans are happy to support avoid tax considerations, rather than about the things that went wrong, the Herman’s sort of liberalism because it re- just doing their daily chores. votes that were lost, or we decry the stricts government largesse to ever fewer, For example, if we have a widget votes that did not go the way we want. ever less-deserving beneficiaries. It costs company, the business of a widget com- But today, the American people can much less to enrich a tiny coterie of well- pany is to manufacture, produce, and feel good. This morning while they connected African Americans than to im- sell widgets. It is not to avoid taxes were at work, or while they were busy prove ordinary black lives. Clinton’s relega- and try to figure out IRS compliance. with their children, there was a vote tion of Reich’s chair to a quota slot is itself Yet that seems to be the custom these that is really significant, that Ameri- an act of Hermanism. The Labor Department won’t do much for the working poor, but it days. cans need to watch in the Senate. will at least do well by Alexis Herman. I had one constituent call me, Mr. Over my life, my past job was work- f Speaker. She had gotten a letter from ing with the Internal Revenue Service, the IRS saying that she had overpaid not as an agent but helping people with TIME TO TAKE THE TERROR OUT her taxes one year and was entitled to their problems. They would come to me OF TAX TIME a $1,000 return. But in order to get the if they were in trouble with the IRS or The SPEAKER pro tempore. Under a $1,000 return, she needed to send an ad- with the taxes, or ask me to help them previous order of the House, the gen- ditional copy of her tax return for that keep out of trouble. Over the years tleman from Georgia [Mr. KINGSTON] is year. No big deal. what I found, though, was a significant recognized for 5 minutes. Now, in this particular case, the uneasiness within me, that I felt Inter- Mr. KINGSTON. Mr. Speaker, today, woman did her tax form herself. She nal Revenue often knew more about April 15, brings terror across the land did not use an accountant. She did not my clients than they really should to all kinds of Americans who have have a Xerox machine at home. All she know. I could not prove it, but I felt spent hours and hours filling out their did was filled out her original form they were into areas they should not be tax forms, Americans who want to pay with ink, and then a copy of the origi- in. Again, I could not prove it, but that their fair share, Americans who know nal with pencil. So the only thing she uneasiness persisted. April 15 is coming on, and yet, at the had was a penciled copy of her tax Today, this morning, we rectified a same time, are very frustrated by the form. But the IRS letter was pretty ex- problem that has been going on. Just a fact that they cannot figure out what plicit. Just send in your old tax form few years ago there was a report from their tax forms are. and we will send you the $1,000 that the Internal Revenue Service that said A study showed that businesses have you have overpaid in the past. that agents were browsing through spent on an average each year 3.6 bil- She sent that in. Lo and behold, her computer files, private files on citi- lion manhours a year filling out and next letter from the IRS, instead of zens, and often in areas they had no complying with tax forms. American saying here is your $1,000, the next let- right to be in. The IRS said, we will individuals spend 1.8 billion hours fill- ter from the IRS says, you are just now never do that again. We will have a pol- ing out tax forms. paying your taxes from 2 years ago, icy of no tolerance. But this last week So in total, Mr. Speaker, we have ap- and inasmuch as you are, you owe a we got another report from Internal proximately 3 million Americans work- penalty plus all the taxes due that Revenue. They had 1,515 documented ing 40 hours a week, 12 months a year, year. cases of what we would consider viola- just to comply with the IRS. Today the I got involved in it. We fought in a tions of our personal liberties and free- IRS has 200 tax forms, 400 forms that tug of war for a long time. Finally she dom of privacy. In this country that is tell you how to fill out the 200 forms, ended up not getting the $1,000, not really important. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1511 So right away a lot of us just decided tleman from North Carolina [Mr. This procedure is a tool of self-serv- that it was time to make a change. The COBLE] is recognized for 5 minutes. ing predators who purposely delay IRS had promised to clean up their act, Mr. COBLE. Mr. Speaker, there have their applications and keep them hid- but the privacy of citizens was not pro- been many accusations about H.R. 400, den under the water until someone else tected, so a bill passed this morning popularly known as the patent bill, with no way to know of the hidden ap- that said not only is it wrong, but IRS which will be on the floor this coming plications invests in the research and agents would be subject to the same Thursday, allowing the Japanese and development to produce a new penalties you and I would be subject to other foreign entities to steal our tech- consumer product, only to have the if we violated the privacy of another nology. The problem is that those mak- submarine rise above the surface and individual by wiretapping or getting ing these accusations are disseminat- sue them for their innovation. into their personal affairs illegally. ing misinformation, or inaccurate in- One recent suit earned a submariner It says, simply, that they will have formation to be more specific. $450 million at the expense of consum- civil, that means monetary, damages This bill does not discriminate ers. Submariners do not hire workers, personally against them, and that they against American applicants. On the do not invest in the economy, and they can go to jail, because we hold this contrary, it levels the playing field so do not advance technology. They only right of privacy very, very closely in that Americans will stop being treated live to sue others who do invest and America. There has been a double unfairly in our own country. It is the contribute. standard, that agencies have not pro- current system that protects what the The gentleman from California, [Mr. tected that privacy as we would de- gentleman from California [Mr. ROHRABACHER] will tell you that there mand and we have a right to expect. ROHRABACHER] calls Japanese or Chi- are hardly any submariners out there Later this day, though, we had an- nese interests. and that they constitute a minuscule other vote. It was a good vote. It was a Under the abuses employed by for- amount. Of course, we all know that if majority vote for the taxpayer. Two eign applicants today, which continue you make your living suing American hundred and thirty-three Members of to be allowed under the bill of the gen- innovators, you sue as many as pos- Congress had the courage to stand up tleman from California, foreign appli- sible and hope to settle for nuisance and say it is time that it be harder to cants are laughing all the way to the value. raise your taxes than it is to raise bank. That is why many cases initiated by spending, so we have to raise your Get this: A foreign applicant can file submariners are not recorded. I urge taxes again, as has been going on for a patent application in his own coun- everyone to take a look at the front many years. try, or anywhere other than the United page story of the Wall Street Journal My mom and dad’s income tax to the States, while delaying his application about the problem which appeared on Federal Government would be less than in the United States; a practice, by the April 9. It is a great problem which my 4 percent, when they were raising me. way, which H.R. 400 prevents. Con- bill prevents. And it is these submarin- Today, my children, who are raising sequently, the foreign applicant’s pat- ers, Mr. Speaker, who probably stand my grandchildren, their tax is nearly a ent issues quickly overseas and not in to benefit more than any other group if quarter, and will be nearly a half, when the United States until much later. our bill is defeated. we count all taxes on these young fam- Under the Rohrabacher system, as Some folks are confused about what ilies. We have to expect that to grow the foreign-issued patent is about to this bill does and does not do in view of on my grandchildren. expire, the foreign company may then my previous illustrations. There have Mr. Speaker, we took that vote. It abandon its delay tactics in the United been some concerns that have arisen did not win, even though we had a ma- States and allow its U.S. patent to which have involved great discussion jority, because it takes a supermajor- issue, ensuring years of monopoly pro- and significant negotiation. Those will ity for that type of vote. But it was a tection in our country. So the foreign form the basis of a floor manager’s good vote for the American people, to applicant initially prevents American amendment which I will offer to this show them that at least a majority of companies from selling competing body on Thursday. Congress now care about the American products abroad, and to make matters Inventors have complained that the people, the family that is paying that worse, when the foreign patent expires, office has not been able to spend its tax, and that 40, 50, or even 25 percent the foreign applicant receives a U.S. valuable resources on the most impor- is more than we should be taking from patent, which then prevents American tant function of the office, that is the the working family who would rather companies from selling competing Patent and Trademark Office. spend that time with their family; a products here. Mr. Speaker, I appreciate the support very good day for the taxpayer. This encourages, by the way, Mr. of my colleagues on Thursday. But the American people have to un- Speaker, American companies to move Mr. Speaker, I want to take 5 minutes to ad- derstand that they have to stay dili- overseas taking with them American dress some of the scare tactics being em- gent, because until a few years ago jobs. ployed by critics to a very important patent law when I was written in for Congress, and Here is another example: Right now a reform bill coming to the floor and explain the I did not run, I was written in, I was foreign applicant can come into the contents of an important floor manager's not paying attention to Congress. But United States, take a product which is amendment which will be offered to H.R. 400 when I got here I found that it was being held as a trade secret by an on Thursday. After much negotiation with all very hard to say no to the groups that American company, patent it, and interests involved with this bill, the Judiciary came to you and wanted something, make the American inventor pay roy- Committee will put forth a comprehensive but very easy to say yes to them, and alty fees for its own invention. This ac- amendment containing many improvements then, a cumulative giving the tax in- tually occurs. and alleviating many concerns, especially of crease, or the burden to the next gen- Small businesses represented who the independent inventor and small business eration in a debt. testified in front of our subcommittee communities. This is a very good time, but only if have shared their personal stories There have been many accusations about the American people address this time about this. The gentleman from Cali- H.R. 400 allowing the Japanese, or other for- and weigh in. Again, this has been a fornia, Mr. ROHRABACHER’S bill allows eign entities, to steal our technology. The good day for the American people, but this to continue. H.R. 400 allows the problem is that those making the accusations they need to contact their Senators original American inventor to continue don't understand the bill. This bill does not dis- and encourage them to also pass the using his invention in the same way he criminate against American applicants, on the tax snooping bill to stop the IRS from was using it before he was sued by the contrary, it levels the playing field so that invading privacy. foreign patent holder. Americans will stop being treated unfairly in f Here is another abuse, committed by our own country. foreign and American applicants which It is the current system that protects what H.R. 400 LEVELS THE PLAYING the gentleman from California, [Mr. Mr. ROHRABACHER calls Japanese or Chinese FIELD FOR AMERICAN INVENTORS ROHRABACHER] allows and which our interests. Under the abuses employed by for- The SPEAKER pro tempore. Under a bill, H.R. 400, stops; it is called sub- eign applicants today, which continue to be al- previous order of the House, the gen- marine patenting. lowed under Mr. ROHRABACHER's bill, foreign H1512 CONGRESSIONAL RECORD — HOUSE April 15, 1997 applicants are laughing all the way to the possible. The manager's amendment sepa- change in patent term in 1995 to receive a fur- bank. rates completely policy functions from oper- ther limited examination to avoid losing term. Get this: a foreign applicant can file a patent ational functions. Policy functions are left to Small businesses and independent inven- application in his own country, or anywhere the Department of Commerce, while manage- tors have been concerned that the new PTO other than the United States, while delaying ment and operational functions are vested may not recognize the longstanding reduction his application in the United StatesÐa practice completely in the PTO. This will allow the PTO in fees applicable to these constituencies. The which H.R. 400 prevents. Consequently, the to be led by a Director who will have only one manager's amendment requires that the agen- foreign applicant's patent issues quickly over- mission: to process and adjudicate efficiently cy continue to provide that small businesses seas, and not in the United States until much and fairly the important Government functions and independent inventors pay half-price for later. Under the Rohrabacher system, as the of granting patents and issuing trademarks. their patent applications. foreign-issued patent is about to expire, the Independent inventors and small businesses Independent inventors have claimed that the foreign company may then abandon its delay have expressed concern over the publication reexamination provisions contained in H.R. tactics in the United States and allow its U.S. requirement contained in the bill. While publi- 400 are too broad, even though they simply patent to issue, ensuring years of monopoly cation has many benefits for both of these offer an alternative to expensive Federal court protection in our country. So the foreign appli- groups, the manager's amendment will give litigation that occurs today at the expense of cant initially prevents American companies them a choice over whether or not they wish and sometimes leading to the bankruptcy of from selling competing products abroad, and to be published. It will effectively exempt inde- small businesses and independent inventors. to make matters worse, when the foreign pat- pendent inventors and small businesses from To make reexamination an even more attrac- tive and cheaper alternative, the manager's ent expires, the foreign applicant receives a publication by deferring it until 3 months after amendment will require all multiple requests U.S. patent which then prevents American they have received at least two determinations for reexamination to be consolidated into a companies from selling competing products on the merits of each invention claimed on single proceeding. here. This encourages American companies to whether or not their patent will issue. At this Importantly, reexamination is also limited to move overseas, taking American jobs with stage, the applicant knows whether or not his prior patents and publications and will not be them. patent will issue, in which case it would be expanded at all from the process as it is done Here's another example: right now a foreign published anyway under today's law. If it will today. applicant can come into the United States, not be granted, the applicant can withdraw its As you can see, Mr. Speaker, the commit- take a product which is being held as a trade application and avoid publication and protect tee has been constructively engaged with the secret by an American company, patent it, and the invention by another means. small business and independent inventor com- make the American inventory pay royalty fees Critics have been concerned about the lan- munity for over 2 years. These final safe- for its own invention. This really happens. guage in the bill, taken from current applicable guards for those constituencies will be added Small businesses who testified in front of our law, that allows the PTO to continue its cur- to the numerous safeguards already contained subcommittee have shared their personal sto- rent practice of accepting gifts in order to in the bill, including special provisions for the ries about this. Mr. ROHRABACHER's bill allows allow examiners to visit research sites to help university and research communities. this to continue. H.R. 400 allows the original them to a better job. In order to alleviate any f American inventor to continue using his inven- concerns, founded or unfounded, the man- tion in the same way he was using it before ager's amendment will explicitly subject the SUBMARINE PATENTING he was sued by the foreign patent holder. acceptance of any gifts to the provisions of the The SPEAKER pro tempore. Under a Here's another abuse, committed by foreign criminal code and require that written rules be previous order of the House, the gen- and American applicants, which Mr. promulgated to specifically ensure that the ac- tleman from California [Mr. ROHRABACHER allows and H.R. 400 stops. It's ceptance of any gifts are not only legal, but ROHRABACHER] is recognized for 5 min- called submarine patenting. This procedure is avoid any appearance of impropriety. utes. a tool of self-serving predators who purposely The manager's amendment will also adopt Mr. Speaker, the gentleman from delay their applications and keep them ``hid- two measures included in a bill introduced by North Carolina, [Mr. COBLE] and I, who den under the water'' until someone else, with my colleague, Mr. HUNTER of California, which have disagreement, have great great no way to know of the hidden application, in- provide for an incentive program to better train respect for one another; and I am very vests in the research and development to examiners, and require publication for public happy to have the gentleman from produce a new consumer product, only to inspection all solicitations made by the PTO North Carolina as an admired adver- have the submarine rise above the surface for contracts. These are good ideas that make sary on this particular bill. Although and sue them for their innovation. One recent H.R. 400 an even better bill, and I thank the we agree on 90 percent of everything suit earned a submariner $450 million at the gentlemen for his contribution to this important else, we strongly disagree on this par- expense of consumers. Submariners do not debate. ticular bill. And I am very pleased that hire workers, invest in the economy, or ad- While the current bill ensures that the Advi- we can do this in the spirit of friend- vance technology. They only live to sue others sory Board for the new PTO should be com- ship. I thank the gentleman. Just a couple thoughts about the bat- who do invest and contribute. Mr. prised of diverse users of the Office in order tle that will take place here on the to help Congress conduct more effective over- ROHRABACHER will tell you that there are hard- floor of the House of Representatives sight, the manager's amendment will explicitly ly any submariners out there and that they on Thursday. It is a battle between two constitute a minuscule amount. Of course, we require that inventors be included as mem- different distinct points of view as to all know that if you make your living suing bers. While this was always the intent of the what direction our country should go American innovators, you sue as many as provision, it will be clarified. in terms of patents. possible and hope to settle for nuisance value. The Appropriations Committee has ex- There are several issues at stake. One That's why many cases brought by submarin- pressed concern over the borrowing authority of the issues is not submarine patent- ers are not recorded. I urge everyone to take in the bill, and critics, although many mis- ing. The submarine patenting which is a look at the front page story of the Wall understand how the authority works under the being used as an excuse to pass all Street Journal about this problem which ap- control of Congress, have made much ado kinds of other things within a bill is peared on April 9. It is a great problem which about a procedure which would offer a small not a factor in this debate. my bill prevents. possibility for the new PTO to borrow money The Congressional Research Service So you see, Mr. Speaker, some folks are instead of having to raise fees on inventors to has found that my substitute, the confused about what this bill does and what it pay for any high technology future projects. Rohrabacher substitute, as well as the doesn't do. There have been some concerns Accordingly, the manager's amendment will bill of the gentleman from North Caro- that have come up on which there has been strike the borrowing authority provisions from lina, [Mr. COBLE] bill, H.R. 400, will end great discussion and significant negotiation. the bill. the practice of submarine patenting. Those will form the basis of a floor manager's In further guaranteeing an inventor at least This was found by an independent amendment which I will offer on Thursday. 17 years of patent term from the time of issu- body that examined both of our pieces Inventors have complained that the Office ance, the manager's amendment will allow in- of legislation and came to the conclu- has not been able to spend its valuable re- ventors adequate time to respond to inquiries sion that the practice of submarine sources on the most important function of the from the PTO regarding their applications. The patenting, which was of limited impor- OfficeÐgranting patents and issuing trade- manager's amendment will also allow inven- tance to begin with, will be put to an marks with quality review in the shortest time tors who were adversely affected by the end forever in both of our bills. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1513 b 1945 of the government as a government ilies should not have to be in a position So both of our bills handled the prob- agency and make it a semiprivate, of constantly worrying about whether lem, as described by an independent semigovernment corporation. Does their child will get hurt at the play- analysis. Obviously there are other is- that make any difference? We do not ground or catch the cold or a flu that sues at stake. Many of the things that know what difference it will make. is going around at the school. the gentleman from North Carolina This corporate entity will have the In other words, what we have is [Mr. COBLE] has described tonight I right to take gifts from foreign cor- working parents who basically have to agree with. And I, in fact, agreed to put porations and domestic corporations. It make choices about whether they are almost every one of those things into will have the right to accept money going to take their child to a doctor or my substitute bill or agreed to support and gifts and in-kind services. And un- not as opposed to paying the rent or his legislation, if those things were like other government agencies, there doing something else. continued to be in the bill except for will be no rules. The rules are waived I just wanted to say that, and I think the three major differences between us. against this new corporate entity, the we have said it over and over again on There are three differences between the Patent Office, in controlling where the House floor, Democrats have for a Rohrabacher substitute and H.R. 400, those gifts are spent. long time been committed to helping what I call the Steal American Tech- This is dangerous. I ask my col- families provide health care for the nologies Act. leagues to join me in opposing H.R. 400, children. It was last June, it will be al- Those differences being, H.R. 400, the Steal American Technologies Act, most a year now, that the Democrats which will be coming to a vote here, and supporting the Rohrabacher sub- rolled out their families first agenda. which was originally called the Patent stitute. And one of the priorities was to ensure Publication Act, its No. 1 goal is man- f adequate coverage for the Nation’s dating that American patents, whether children. HEALTH CARE COVERAGE FOR We also started at the beginning of or not they have been issued, a patent CHILDREN application, will be published after 18 this session a Democratic health care months so that every thief in the The SPEAKER pro tempore (Mr. task force, once again, with its major world, every person who wants to bring LUCAS of Oklahoma). Under the Speak- priority being to try to address the down our standard of living, every one er’s announced policy of January 7, problem of children without health in- of our economic adversaries will know 1997, the gentleman from New Jersey surance. So Democrats have been there all of our new technological ideas and [Mr. PALLONE] is recognized for 30 min- concerned about this issue. What we secrets even before the patent is issued. utes as the designee of the minority need to have is the Republicans who This problem is handled by H.R. 400 leader. are in the majority join us. by saying, OK, if the Chinese or the Mr. PALLONE. Mr. Speaker, I am There was some progress in this re- Japanese or other thieves around the pleased to say I will be joined tonight gard in the last few weeks, I have to world steal the patent from the Amer- by the gentleman from New York [Mr. say. The gentleman from California ican inventor after 18 months, once SERRANO]. We are here, once again, to [Mr. THOMAS] of the Subcommittee on that patent is issued, let us say 5 years talk about the lack of health insurance Health of the Committee on Ways and later, that inventor now will have the for children throughout this Nation. Means did have a hearing on the issue right to sue the Japanese corporation The figure of 10 million children who of kids health care. I want to applaud or the Chinese corporation. The Peo- are uninsured has been put forward on him for taking the initiative and at ple’s Liberation Army is stealing a lot this House floor many times, and it least recognizing the problem. But ac- of intellectual property rights. Imagine really is a scandal and, in my opinion, tion has to follow. an American inventor trying to sue the completely unacceptable. My concern is that, even though People’s Liberation Army. The number of children without there was one hearing in the Commit- This is a joke. This is not protection health insurance is growing and it is tee on Ways and Means, that there was for the American people. This is a give- increasingly children in working fami- not any indication as a result of that away of American technology, and lies who are without the coverage. hearing that any bill is going to come even the most unsophisticated person Just in my own State alone we esti- to the floor or any effort is going to be can see we do not give away our secrets mate that over 200,000 children are made to mark up a bill and take some until that patent is issued. That has without health care coverage. In one of action on this issue. been our right, and this bill H.R. 400 the dailies in my district, the Home Several Democrats, including myself, will take it away. News, just a few weeks ago in April, sent a letter to the Republican leader- The second thing that will be in the they did an editorial saying how inad- ship in the last couple weeks urging bill that we have disagreed on, the equate coverage for children was in my them to move forward by marking up other things we do agree on, we can home State. And they specifically men- legislation and bringing a bill to the correct those, is reexamination. This tioned that the Families USA organiza- House floor by Mother’s Day and Fa- bill opens the door to actually making tion here in Washington estimates ther’s Day respectively, and that, we all kinds of new challenges against ex- there are 553,000 children in New Jersey are saying, is mark up a bill that ad- isting patents so Americans who own receiving inadequate or no health cov- dresses the issue of lack of health in- patents who now had very little, there erage. So whether it is 200- or 500,000 in surance for children, mark it up in is very little opportunity to challenge New Jersey alone, it clearly is simply committee by Mother’s Day, bring it to their ownership of current patents, will unacceptable. the floor for a vote on the House floor, find that they are vulnerable to chal- What this really means is that many on this floor by Father’s Day. lenges from large corporations, foreign children simply do not get any care un- And it is our hope that we can create and domestic. less they get very sick and end up in an such a ground swell of support behind Our little guys, those small compa- emergency room, and that procedure making children’s health care a reality nies, are going to be tied up for years makes no sense. It makes no sense to that House Republicans will be forced with litigation by people who are chal- not have a child be able to go to a doc- eventually into action. lenging their patent rights of a patent tor, get very sick, and end up in an I wanted to say, before I introduce they already supposedly own. emergency room. It costs a lot more to my colleague from New York, that the Finally, the patent office has been treat an ailment once it has gotten to Democratic health care task force at part of the U.S. Government since the a very critical stage as opposed to pre- this point is not necessarily saying founding of our country. It is written venting it when it first starts to occur, that we have to have any particular so- into our Constitution. There has never and it is also very harmful to a child’s lution in terms of legislation. Some of been a scandal dealing with the patent future health. us are in favor of expanding Medicaid. examiners because they have been in- Obviously we do not want children to Others have talked about block grants sulated from all outside influences. be sick and be impacted in terms of to the States along the lines of the This bill would corporatize the Amer- their adult life. And I think a problem Kennedy-Hatch bill, which is gaining ican patent office. It would take it out clearly exists here where working fam- momentum now in the Senate. Some of H1514 CONGRESSIONAL RECORD — HOUSE April 15, 1997 us have actually introduced the Ken- health care for their children, they are b 2000 nedy-Hatch bill here in the House, my- not. The problem we have is that it is This is not what Americans are self included, but we want to see some a burden, in my opinion, that we place about. We are about taking care of our movement on this issue. on these American families that they neighbor and making sure that chil- But whether it is tax credits, vouch- should not have. dren are taken care of. ers, Medicaid expansion, or block Again, I repeat, we are not talking So I will do tonight what I have done grants to the States, we want to see ac- about American families demanding a every other night that we have spoken tion, and we want to see a deadline set new road in front of their house. We on this issue, and that is to reach out when we are going to address this issue are not talking about American fami- to those parents who tonight are help- of 10 million American children who do lies looking for a handout. We are not ing their children with their home- not have health insurance. talking about a gift that Government work. Perhaps they are taking a little Mr. Speaker, I yield to the gentleman will give to people. time off to watch the Met-Dodger game We are talking about a basic human from New York [Mr. SERRANO], who has and discussing with the children the right, the right to decent health care. been on the floor with me and others celebration of the Jackie Robinson leg- The country has the mechanism to de- many times over the last few months, acy and what that means to this coun- liver that health care, but in its lack of trying to bring attention to this issue. try and to the future of this country. wisdom in this area, has allowed for 10 Mr. SERRANO. Mr. Speaker, I want Perhaps they are tucking their chil- million children to fall by the wayside. to thank the gentleman from New Jer- dren in bed and kissing them good sey [Mr. PALLONE] for having the vision Now, when I say over and over again that we do not have to reinvent the night, knowing that they are secure to bring this issue to the floor and to within, not rich, not overflowing with discuss it as many times as we have wheel, I believe that. I believe that we have in this country the mechanisms gifts, but secure. and I know as many times as we will in I hope that they will take some time which allow us to cover these 10 mil- the future. and write to Members of Congress and The gentleman well says it when he lion children. And we are not, as the gentleman well has stated, saying to say: Let us get this done. I do not says that our families first agenda think it is right that when I put my speaks to this issue. And certainly our colleagues across the aisle that they must do it our way. child to bed, I know that everything is when we look at the issue, I think what OK in terms of health care with him, all Americans who are watching to- What we are saying is, let us come together and let us do it. Let us cele- that it is provided for him, that we are night have to ask themselves is, Are we covered, and that there are 10 million talking about reinventing the wheel brate as a nation the fact that we will cover 10 million children. In fact, if it children somewhere else in this coun- here? Are we talking about creating a try that do not have this coverage. new Government program? What are was up to us, we would cover every American that is not covered right I would implore these American par- we really talking about? ents do that tonight, to take that little It is very simple. I spend some time now. Now, interestingly enough, and I go time and write to those of us who have every day thinking about how lucky we back to my usual argument, there are not seen the light tonight on behalf of are to live in this country and, at the countries that we criticize on a daily those children, because what happens same time, to compare what goes on in basis where this would not be a discus- is, if the parents of those children do this country with what happens in sion. They have other problems, but the only writing, then people will say, other parts of the world. And we know this is not a discussion. Everyone, from well, of course it is the ones who need that we are fortunate to be in a society the time they are born to the time the program, need the assistance, who that has been able to accomplish they die, is covered by health care. And are calling us; we need to hear from things other societies have not. so what we are doing here tonight is other people. Therefore, this issue becomes very calling on our colleagues to say, listen, I think that this is something that important and very sad as we discuss there are some issues that are political we can all be very proud of. If we ac- it, because health care is not a discus- issues. There are some issues that we complish this, if we, one of these eve- sion about throwing money away. have to argue back and forth about. nings, ourselves, go to bed knowing Health care is about a basic right. Chil- There are some issues that the public that there is not a child in this country dren, therefore, become the neediest in expects us to disagree on. But covering who is in need of basic health care, I society if they cannot attain basic and providing health care for 10 million think then we can be proud of the work health care. American children who are in need of we are doing in this House. What we are saying here is that in this health care, to take this worry Mr. PALLONE. I appreciate what the our country, if you were not listening away from families, to take this di- gentleman said and also the fact that to the beginning of this discussion and lemma away from working families, he makes the point of reaching out and just listened to the middle part and we this is something we can do. If we set having the average person thinking discuss 10 million children without our minds to do it, we can do it. about their own situation and how they health care, someone could say that we Now, what really amazes me about may have coverage for their children are in another Parliament or another this issue is that I do not know why and have that security but so many legislative body somewhere in the they do not want to do it. I do not other American parents do not. world discussing a situation which fits know, I cannot figure that out, because That is really the crucial issue here, into the conditions that they find we are talking about something that that so many people lack that security, themselves in. But we are not. We are the American public is in favor of. basically live the day and night know- in the U.S. House of Representatives in Interestingly enough, let us use some ing that if something happens to their the U.S. Congress saying that 10 mil- labels, if you go to your most fiscally children, they are not covered by lion children do not have health care conservative middle-class American health insurance. available to them. and say, here is what we are going to I just wanted to say that our Demo- And as the gentleman so well has do, we are going to expand current pro- cratic task force last week had a hear- pointed out, the part that makes this grams and make some changes to cover ing, and we will probably have more really difficult to even understand is 10 million children who do not have hearings, but the basic purpose of this that most of these children are in fami- health care; do you have a problem hearing was to get factual material lies where both parents or at least one with that? about the nature of the problem. In the parent is working. So we are not talk- I am taking a political chance here. I future, we will probably have hearings ing now about many of the conversa- am saying they do not have a problem on specific legislation. tions we have on the floor on a daily with that. What mother, father, who Families USA at that time had just basis or on a weekly basis. tonight knows her children has health put out a report, and it was really in- We are talking about children that care coverage, is going to be upset that teresting in terms of what the gen- are within those families that sup- another parent somewhere else who tleman just mentioned about how this posedly are doing better in this soci- does not may begin to have it next primarily affects kids who have work- ety, but when it comes to providing month or the month after that? ing parents. It is not very long, and I April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1515 wanted to make reference to some of This would appear this was some sort proper. It is not a good investment for their key findings in that regard. of school clinic that detected the prob- the future of our country, and it is not They were talking about their data lem and, as a consequence, started the fair to these children. that provides information about chil- rehabilitation that eventually led to One last point. It cannot be said dren without health insurance during a her having a hearing aid. But this is enough. It cannot be said enough that 2-year period, and the data showed the what we are talking about. We are we are now talking about children who following: talking about lack of care, not being have one, possibly two parents working That almost half of uninsured chil- able to see a doctor, which leads to per- one, possibly more jobs. We have to dren, 47 percent, had uninsured spells manent damage. continue to repeat this, not because we of 12 months or longer; that one out of Ultimately, this child, although she want to listen to ourselves talk, but seven, 15 percent, lacked health insur- now has a hearing aid, probably will because people in some places in this ance for the full 2-year period. never be able to fully hear and, with a country get the wrong impression, that Then they went on to say that the small amount of money and a couple of uninsured child population, this popu- visits to the doctor at the initial stage, we are talking about people who may lation we are talking about, was com- before this started, probably would not want to help themselves or who prised primarily of children whose par- have had no problem at all. may not be looking for that service. ents worked. Of the children who So we need to think about the psy- This is not available, and it is not lacked insurance for 1 or more months, chological and the physical con- available to people who can pay certain 9 out of 10, 89 percent, lived in house- sequences, and think about the costs, bills but cannot pick up a full visit at holds where the head of household because how much more will it cost for a doctor or hospital stay, because that worked during all or part of the 24- the hearing aid and apparatus down the is not the way it works in this country. month period. road as she becomes an adult as op- It costs so much money to do that. Then it said that uninsured children posed to just a simple doctor visit in So once again I thank the gentleman are two times more likely, 69 percent the beginning? for bringing this subject up again, and Mr. SERRANO. Mr. Speaker, if the versus 31 percent, I know these statis- we will continue to discuss it at length gentleman would continue to yield tics get a little difficult, the uninsured until we get the action that we think children are two times more likely to briefly, as the gentleman mentioned, the children need. live with a married rather than a sin- also this brings up another thought, gle parent. Children uninsured for the and that is, on a daily basis we put a Mr. PALLONE. Mr. Speaker, I want entire 24-month period are four times heavy demand on our school system. to thank the gentleman. more likely to live with a married par- And we complain, we all do in this I really believe that we are starting ent. And of the children who were unin- country, about the conditions of the to be heard. We know that, for exam- sured throughout the 24-month period, schools if they are not what we want ple, on the Senate side there is a move- over one out of three had a head of them to be in certain neighborhoods ment on a bipartisan basis to try to ad- household who was employed full-time and the quality of the teaching if it is dress this issue, and I just noticed dur- throughout that 24-month period. not what we want it to be in certain ing the Easter time, when we were out So, again, we are talking about chil- neighborhoods. of session for 2 weeks, there was a lot dren where both parents are working. But at the same time, we do not real- of attention in the news media about Some of them are working two jobs. It ize that there are other factors that it. So I believe that the more we talk is amazing, the statistics about the na- impact on that situation. What the about it, the more we will see some ac- ture of this population. gentleman just mentioned is a prime tion on it. The other thing that I just wanted to example. If children are attending say again that comes from this Fami- school who are suffering an ailment or I wanted to say, if I could, before our lies USA report is that we are really a condition that may have an impact time is up, that there was some really good information provided by the Gen- talking about prevention. What the on their ability to learn, we then have eral Accounting Office that talked gentleman and I want to do here is pro- placed a teacher and the school admin- about why children are uninsured, the vide a mechanism for kids to have pre- istration in a situation that they categories, whom we are dealing with. ventive care. That is what really this is should not be placed in. They now have They basically talked about three cat- all about. to cope with that and try to figure out egories: Most of the time, not all the time, what the problem is. but most of the time, if a kid gets real- So here we have a situation where we First, children who are eligible for ly sick, they can go to an emergency have a school-based clinic, which is a Medicaid but not enrolled. According room. I am not saying that is always rarity in this society, but a school- to the General Accounting Office, an true, but usually it is. But the problem based clinic may have picked up this estimated 3 million uninsured children is, when they get to that stage, it is al- situation of these ear infections which are eligible but not enrolled in Medic- most too late. Oftentimes there is per- may leave this child permanently dam- aid. So that is the first category. manent damage. aged for the rest of her life. Now, if We might say, why is that the case? Families USA at our Democratic that child had regular visits, the way There are a lot of socioeconomic rea- task force hearing used the case of a most children in this country do, sons. As we mentioned before, most of young girl, this was not her real name, chances are that could have been these kids have parents who work, but they used the name, Maria. It is a picked up. sometimes two or three jobs. It is very real case, and they called her Maria. It So again, where is the investment? Is difficult a lot of times for them to even said that when Maria entered a new it about what it might cost now, which get involved with the bureaucracy school as a third-grader, her teacher we do not think we are talking about where they would go to Medicaid and believed she was performing below her costs here, we are talking about ex- sign up and fill out a lot of papers in potential. A health examination ar- panding existing programs, or the in- order to enroll their children. ranged by the school’s Healthy Start vestment that we are making in the Program revealed that Maria had suf- health of that child and, therefore, the There is also a sense of pride, that fered multiple ear infections, probably education of that child? Medicaid, probably wrongly, is in many over a period of several years. So I really think this one is an easy cases now associated with welfare. So Maria’s father ran a small nursery one. I know when we present some- there is a stigma attached to it, and a business and could not afford health in- thing and we support it, we always try lot of working parents, even if their surance. Without insurance to pay for to make it sound like it can be done. children are eligible, simply will not her care, Maria’s ear infections were But this is an easy one; this can be enroll their children. not treated. As a result, scar tissue done. This is the country that can do The second category are parents who built up within her ears. Maria became it; this is the society that can do it; earn too much for Medicaid but too lit- deaf in one ear and lost hearing in the this is the Congress that can do it. All tle for private coverage. Again, as the other, and it took a year and a half to we need is the OK to say we will get to- number of employers simply do not equip Maria with hearing aids after gether and do it. It is an outrage. It provide insurance, if there is no group they had discovered this. should not be. It is inhumane. It is im- policy and they have to go out and pay H1516 CONGRESSIONAL RECORD — HOUSE April 15, 1997 for an individual policy, as the gen- broke this color barrier, and he opened to Jackie, because he could feel Jack- tleman also knows, that is almost im- up the doors that had long been closed ie’s problems as he tried to show the possible for the average working fam- to talented African-Americans, not world that it was not all about just ily. only in baseball but in other activities being a good baseball player, but being The third is parents who change jobs. throughout our country. a gentleman. Nearly half of all children who lose This may have been an opening Jackie Robinson was no ordinary health insurance do so because their through a sporting event, but it opened man. He was a college graduate and parents lose or change jobs. So, again, up many, many doors of opportunity to one who had come from the State of if we look at this over the 2 years that African-Americans throughout this California, his parents having moved Families USA is looking at it, we can country. from the South, and he brought a cer- see there are times when kids are cov- b 2015 tain dignity that should have been ered and not covered, that there are a brought. He was sort of a multi-dimen- lot of gaps because of the fact people Jackie Robinson was a respected ath- sional person. He was not a one-dimen- are changing jobs. lete, a respected gentleman, a re- sional person. You could not say that And a lot of people in the lower in- spected family man. Therefore, Mr. Jackie Robinson was just a good base- come categories but who are working Branch Rickey chose him because he ball player. He internalized much of have temporary jobs and are subject to represented to Mr. Rickey someone the fears and much of the hate and tremendous fluctuations in their job. who could take the taunts of the pub- much of the venom which was thrown They may change every 6 months or lic, someone who could be yelled at, after him. It takes an extraordinary whatever because it is not a job nec- someone who could be thrown at, some- man to do that and Jackie Robinson essarily that has a lot of permanence. one who could be talked about and still did it. He knew what he had to do. He So it is a real problem that we have keep his dignity and still show his ath- knew what it was all about was much to look at the various aspects of it. letic prowess on the field of baseball. more than baseball. And I am not saying there is an easy He was the first black to play major Mr. Rickey knew that as well. That solution. All the gentleman and I are league baseball. He overcame these in- is why he chose Jackie Robinson. He saying is that we want this addressed. sults and threats. He overcame them knew he had to open doors which had We want the Congress and the House of with talent and dignity, and he won long been closed to talented African- Representatives to take it up. recognition as a great baseball player Americans, not only in sports but in I appreciate the gentleman’s partici- and great human being. many other activities. I think Jackie pating, again, and all the gentleman That is what is so important about Robinson also knew that becoming a has done to speak out on this issue. Jackie Robinson. He was not just a great baseball player was not his major Mr. Speaker, I yield back the balance baseball player. He was not just an ath- motive as well, because he knew he was of my time. lete. He was not just someone with ath- great. He had played with the Kansas f letic prowess, but he was also a great City Monarchs and he knew that he human being. He established an endur- could play baseball. He also knew that TRIBUTE TO THE MEMORY OF ing model throughout sports, and he there were several other blacks out JACKIE ROOSEVELT ROBINSON proved to all America that character there who could play perhaps even bet- The SPEAKER pro tempore. Under and ability are keys to success, not the ter than he could, but they did not get the Speaker’s announced policy of Jan- color of one’s skin or not one’s athletic the opportunity. So he knew he had to uary 7, 1997, the gentlewoman from prowess. The color of one’s skin or ath- represent them. He knew he had to rep- Florida [Mrs. MEEK] is recognized for 30 letic prowess is not nearly as impor- resent all of these small African-Amer- minutes as the designee of the minor- tant as character and ability. Because ican children who would never get a ity leader. if Jackie had not had all of that, he chance for the kind of opportunity he Mrs. MEEK of Florida. Mr. Speaker, I could not have done what he did in the was getting. want to help this Congress and Amer- baseball world in this country. No one, He carried the burden, I tell the ica understand the dignity and the not even other blacks who soon fol- Speaker, for the entire race, to show grace and the illumination which Jack- lowed Jackie into the major leagues, all America that blacks could compete ie Robinson, Jackie Roosevelt Robin- could know what Jackie Robinson en- not only on American playing fields, son, brought to our wonderful country, dured in 1947 when he entered major but also in its classrooms and cor- the United States of America. I am de- league baseball. porate boardrooms. lighted to have this opportunity to I had the pleasure of meeting Jackie Mr. Robinson’s interest in baseball host this special order, and it is going Robinson in 1947 because he came to a set a new tone for the country. I lis- to honor one of the true greats in small college in Daytona where I tened to Jackie Robinson’s lovely wife American history, and that is Jackie. worked, called Bethune Cookman Col- on television as the entire country is Why is it relevant to the Congress to lege, one of the primary good colleges paying tribute to Jackie Robinson, and even talk about Jackie Robinson or to in America today. Jackie Robinson they asked her did she think that address a special order to the memory came to Bethune Cookman College, Jackie would have done this even if it of Jackie Robinson? First of all, it is so and it was said at that time that that were not for baseball, would he have very important, No. 1, so that the was the only place in Daytona where done it anyway, and she said, yes, and young people in this country will un- Jackie could get living quarters or liv- they also asked her how did he take derstand that we have heroes in this ing accommodations. The team was on the kind of poor treatment he got from country, and they are heroes because Daytona Beach, but Jackie Robinson the fans who were following the game, they worked very hard to bring glory had to live at Bethune Cookman, a and she said that Jackie knew that he not only to their athletic teams but to small black college. I say to the Speak- had a challenge and that he had to do the glory of this country and to show er that that is an honor to Bethune this because it would help others and the dominance which great athletic Cookman College that Jackie Robinson he had to prove this to others. So my prowess can bring when it is used for slept there because of what he has done summary of that is Jackie did this not the good of others. and what he has brought to this coun- for himself but for others. That is why it is so significant that try. The national sport of baseball and from this well we address many of our So, then, he took a lot of abuse, occa- Jackie’s interest in it made it much heroes, and tonight I am addressing sional physical abuse as well as mental easier for football to continue in its in- Jackie Roosevelt Robinson. abuse, but he absorbed this abuse. Nor tegration, and it set a model for bas- Fifty years ago, that has been quite a was it the early hostile attitude of ketball as well. The glory of Jim long time, Jackie Robinson broke some of his own teammates that was Brown and Bill Russell are directly major league baseball’s color line. He shown. I understand a little guy by the connected to Jackie Robinson’s sac- broke the color line. That meant that name of Pee Wee Reese was very help- rifice and efforts. before Jackie there were no African- ful to Jackie Robinson, to help him I say to the young athletes who come Americans in major league baseball. He bridge this gap and that he reached out around today, I wonder if you know April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1517 that you are standing on the shoulders were already there. Step by step, new a leader. He was aggressive, and the of Jackie Roosevelt Robinson, and models emerged and resistance weak- Brooklyn Dodgers followed Jackie Rob- many of them do not understand it. So ened to equal opportunity. So he was inson. He fought back, not only against it is good that we help America under- Mr. Equal Opportunity and he should opposition base runners but against old stand that if it were not for the strong be recognized 50 years after the time patterns of racial segregation in hotels, shoulders of Jackie Robinson, they when this happened. restaurants, and stadium facilities. At would not be able to do the things they I have heard the story of a baseball the deepest level of significance, base- are doing today. That is none of them, executive who believed that the hiring ball’s modern movement began with with no exception, because Jackie Rob- of Robinson would sink the Brooklyn Jackie Robinson’s assertion of himself, inson handled this task at hand, Mr. Dodgers, and I remember how Mr. not only as a participating player but Speaker, and it meant much more than Rickey explained it to Jackie, as the as an aggressive player on field and off. simply holding his tongue and fists in type of person he would need to do this. He could not have done it on field check on the baseball diamond that Of course Jackie, being a very educated alone, it had to be off. first year, it meant more than not and a very articulate man, was able to He not only changed baseball, Mr. being able to stay in the same hotel, it converse with Mr. Rickey as to what Speaker, he changed America. Just try meant more than that. Jackie could his fears were, the fact that he had the imagining baseball today without ath- have walked away by saying, ‘‘I can’t kind of courage and behavior to do letes of color. They help to make up stay in the same hotel as the white this. Soon after, Mr. Rickey agreed this sport which is so, I would think, players. Therefore, I’m going to walk that Robinson would work out fine. He indigenous of our great country. Think away.’’ Or ‘‘I can’t say what I want to went to the other leaders in the Brook- of baseball without Henry Aaron, with- say. Therefore, I’m going to walk lyn Dodgers. But three black Dodgers out Mo Vaughn, the current Boston away.’’ ‘‘I can’t throw back the threats people felt at that time would sink the Red Sox player who wears Jackie Rob- which they are giving to me. Therefore, Dodger franchise, and they thought inson’s No. 42 as a tribute. That is say- I’m going to walk away.’’ that if three would sink the Brooklyn ing something for Mo Vaughn, to wear Jackie knew, even though he could Dodgers, five would destroy the Na- Jackie Robinson’s No. 42. It is a very not eat in the same restaurant as his tional League and eight would demol- large shirt to fill. teammates, he knew that there was a ish the entire sport of baseball. In conclusion, Mr. Speaker, this spe- greater prize that would come because Now you say, ‘‘Well, Carrie, that’s ri- cial order has been one in which I have of his persistence in playing baseball diculous, how could anyone think that tried to help America understand the and opening the doors for others. He African-Americans would sink a sport significance of Jackie Roosevelt Robin- was a part of a historic task of sweep- that was so greatly attuned in the son, particularly black Americans, par- ing a whole lot of mental cobwebs from American system as baseball’’? But ticularly young black Americans who the minds of millions of white Ameri- people did think that at that day and may not have heard of Jackie Roo- cans and many black Americans who at that time. sevelt Robinson, and how he broke the did not realize that this could happen. By the end of 1947, the Dodgers had bounds of color in 1947. It is said that Many of them were probably unaware signed 16 black players. America under- extraordinary lives often reveal ex- of their own bigotry and racism, and it stands that at that time there was a traordinary traits. Jackie Robinson was not until Jackie came along and black league of baseball where very had extraordinary traits. He was born they could see and hear the taunts that good players were there playing base- in 1919 in Cairo, GA, the heart of the he was receiving and they could see ball, and they had a very good organi- segregated South. His family migrated how he received it with the calmness zation, and the major leagues were be- to California when he was 4 years old. and sincerity of a man who is a true ginning to look at these black leagues This whole legacy of Jackie Robinson gentleman. His discipline and restraint and think of it, why not integrate some is one that we can all take a lesson were as crucial to the larger cause of of them into major league baseball be- from. He crammed a whole lot into his black advancement in that first season cause they had the ability to play. So 53 years, and he left a legacy of accom- as his aggressive assertion of his rights this opened up some of these players in plishment. He left a legacy of perfec- was to black respect in later years. the black leagues, and history is re- tion and accuracy, of acclaim, con- I do not want anyone to think that plete with stories about what happened troversy and influence that has been Jackie was just a doormat or a carpet. in the black league and how good these matched by very few Americans. He was not that kind of a man. Quite players were also. Mr. Speaker, I declare that Jackie naturally his success was on the base- So then the farm teams began to Robinson performed an historic break- ball diamond, but that success also look at baseball, and began to look at through which has helped every Amer- reached out into the world and helped the black leagues and they began to ican, black Americans included, to other people have opportunities to bring people up. In the American really come into what America is all enter things that African-Americans League, the Cleveland Indians brought about, and that is equal opportunity could not before. By Jackie playing up Larry Doby, who was an outstand- for all. and taking those kicks and taking ing outfielder at that time. He became Mr. TAUZIN. Mr. Speaker, will the those taunts, he encouraged the Brook- the league’s first black player, another gentlewoman yield? lyn Dodgers to employ other black opening brought on by Jackie Robin- Mrs. MEEK of Florida. I yield to the players. I remember how we used to son. gentleman from Louisiana. just run to the radio, when many of us By 1949, 56 black players had been Mr. TAUZIN. I want to thank the did not have televisions during those signed by big league organizations. And gentlewoman for yielding, and I want days, just to see Jackie Robinson run, by 1950, 5 major league teams had been to congratulate her for this special and to see him run the baselines, Mr. integrated, to just show you the dom- order and associate myself with her Speaker, was beauty in motion, and it ino effect of a man like Jackie Robin- wonderful comments tonight. was the kind of physical endurance and son opening the doors 50 years ago. b the kind of physical prowess that so By 1953, 7 teams were integrated. And 2030 few people have and how he could by 1959, every major league baseball You spoke of the extraordinary per- dance off third base and make them team had been integrated. Think of it. son that Jackie Robinson was and what throw the ball and he ran beautifully This was all because of the efforts, and an extraordinary contribution he made into home plate. all because of the persistence and all to our country and to the more open In turn, the success of the Dodgers because of the respect that Jackie Roo- society that we enjoy today. That leg- encouraged competing organizations to sevelt Robinson had. acy continues, as you know, in the reevaluate their color lines. And when He was liberated from passivity. Rob- beautiful performance just this week- I say Jackie Robinson opened up these inson assumed a very aggressive role. end of a young man named Tiger color lines, not only for baseball and He was not there just to be a body or Woods. The Masters is another great for major league sports but he opened just some kind of baseball symbol but example of breakthroughs in our soci- it up for other kinds of color lines that he was there to do his very best, to be ety. That young man took a moment H1518 CONGRESSIONAL RECORD — HOUSE April 15, 1997 to think about those who preceded him the new day which would dawn the first society, for without Jackie Robinson and opened doors for him and the grace time a Negro player joined a profes- there may not have been a Tiger and skill that he exhibited at the Mas- sional, formerly all-white team. Woods. Jackie Robinson, we appreciate ters Tournament I think is also a part I would like to congratulate the and thank you for your efforts on all of of that legacy you talked about to- Houston Astros today, on April 15, for our behalf. night. they will honor and commemorate with I heard one commentator who said I just want to congratulate you be- the entire community in Houston that Tiger Woods was on capability cause an extraordinary tribute to an Jackie Robinson Day. I am told that, what Jackie Robinson was on politics. extraordinary man was delivered to- as I speak, throngs and throngs of Both of them were on capability, both night by an extraordinary woman, and inner-city young people will be going of them stand as great Americans. I I think this House is grateful for your to the Astrodome to recognize Jackie pay tribute to Jackie Robinson because special order tonight. Robinson and as well to understand he first opened the door to make Amer- Mrs. MEEK of Florida. I thank you that baseball can be more than a sport, ica great. for your comments, and we are so in- it can take and be an opportunity to Mr. Speaker, with joy and thanksgiving, I debted to you as well. Thank you very bring all together. rise to speak on this special order offered in much, so very much. Unfortunately, they were all right recognition of the contributions of a great ath- Mr. Speaker, I yield to the gentle- that time when they spoke about this lete, diplomat, and gentlemanÐMr. Jackie woman from Texas [Ms. JACKSON-LEE]. whole tragedy of segregation. The first Robinson. And I would like to thank Congress- Ms. JACKSON-LEE of Texas. Mr. game that Jackie Robinson played pro- woman CARRIE MEEK for organizing this spe- Speaker, it is with great joy and fessionally at Ebbets Field after his cial order. thanksgiving that I rise to pay tribute name was called and he joined the The American psyche has been filled with and recognize the contributions of a other players on the field, the fans did the achievements of Tiger Woods, as the first great athlete, diplomat, and gen- boo him. His new friend, Pee Wee African-American to win the Masters Golf tleman, Jackie Robinson. Reese, captain of the Dodger team, Championship at the ripe old age of 21. The American psyche has been filled went over to Jackie and placed his arm Over the last few days, I have seen smiles with the achievements of Tiger Woods around his shoulder. Spontaneously, it on peoples faces of all ethnicities and races as the first African-American to win seemed, the rest of the team followed who may not share anything else, not even an the Masters golf championship at the suit by huddling around Robinson and equal appreciation for the sport of golf, but ripe old age of 21. Over the last few making it clear to all that he was a they can love a winnerÐno matter what his or days I have seen smiles on people’s Dodger today, yesterday, and tomor- her race. faces of all ethnicities and races who row through and through. That is the Few sports fans in America today can imag- may not share anything else, not even spirit that will be in the Astrodome to- ine a world of segregated athletics. Where an equal appreciation for the sport of night with all of the young people from barriers prevent people of different races from golf, but they love a winner, a young our inner-city and the 18th Congres- playing together on the field of competition. winner no matter what his race; and sional District with our owner as well, This was not a policy limited to professional Tiger certainly gave us that. Drayton McLane, celebrating, com- sports, it was the norm of the whole American Few sports fans in America today can memorating the first person who broke society. SegregatedÐand isolated from the joy imagine a world of segregated athletics the color line in baseball. that all of us have felt over the last few days where barriers prevent people of dif- Jackie Robinson was on the field as at seeing a fresh faced 21-year-old All Amer- ferent races from playing together on the first statement on affirmative ac- ican kid made good. the field of competition. This was not a tion, 27 years before it became a public It is the American dream that our society policy limited to professional sports. It policy goal. It was good then, it is good was robbed of, people bared themselves from was the norm of the entire American now. fully experiencing the pleasure of untempered segregated society, segregated, isolated The pitchers did not throw slower excellence on the field of competition. from the joy that all of us have felt fast balls or straighter curve balls White-only signs littered the landscape an- over the last few days at seeing a fresh when Jackie Robinson went to bat. He nouncing to all who moved through our society faced 21-year-old American kid make earned every one of his runs to home that there was a line that should notÐand good. base. Most of all, Jackie Robinson was must not be crossed. It is the American dream that our so- a gentleman. He was someone who be- However, a colossal event on April 10, ciety was robbed of. People barred lieved that he could show better by his 1947, the sport of baseball helped to change themselves from fully experiencing the actions than he could by using con- the way America thought about the issue of pleasure of untempered excellence on trary and adverse actions to rebut race. The instrument of change for that day to the field of competition. those who would be racists. this was Mr. Jackie Robinson by becoming the White-only signs littered the land- On June 24, 1947, Jackie Robinson first black player to sign a major league con- scapes announcing to all who moved stole home base against the Pittsburgh tract. throughout society that there was a Pirates, helping the Brooklyn Dodgers Mr. Jackie Robinson was invited across the line that should not and must not be to win 4 to 2. On October 6, 1949, Jackie color line by Mr. Branch Rickey, the Brooklyn crossed. However, a colossal event on Robinson scored the only run in the Dodgers general manager. April 10, 1947 occurred. The sport of Dodgers’ 1 to 0 victory over the New ``The Boys of Summer,'' as Roger Kahn's baseball helped to change the way York Yankees in game 2 of the World book refers to the Dodgers, made a very ma- America thought about the issue of Series. And on April 23, 1954, Jackie ture decision in inviting Jackie Robinson to race. The instrument of change for Robinson stole home on the front end join them, that decision is one that would af- that day to this was Mr. Jackie Robin- of a rare triple seal, helping the Dodg- fect the whole American society. son by becoming the first black player ers to a 6 to 5 win over the Pittsburgh They all knew that history was in the making to sign a major league contract. Pirates. and that some in their society may not be Jackie Robinson was invited across b ready for the new day which would dawnÐthe the color line by Mr. Branch Ricky, the 1915 first time a Negro player joined a professional Brooklyn Dodgers’ general manager. Jackie Robinson, with his talent, formerly all white team. Together they made history. The Boys communication skills, and grit, spiced Unfortunately they were all right. The first of Summer, as Roger Kahn’s book re- with determination, proved that indeed game that Jackie Robinson played profes- fers to the Dodgers, made a very ma- an African-American man had the in- sionally at Ebbets Field after his name was ture decision in inviting Jackie Robin- tellectual capacity, physical capabil- called and he joined the other players on the son to join them. That decision is one ity, and spiritual fortitude to meet all field, the fans booed him. that will affect the whole American so- challenges put before him on the field His new friend Pee Wee Reese, captain of ciety. of competition. I believe that Tiger the Dodger team, went over to Jackie and Mr. Speaker, they all knew that his- Woods, as he should have, has paid placed his arm around his shouldersÐsponta- tory was in the making and that some homage to the great Jackie Robinson neously, it seemed, the rest of the team fol- in their society may not be ready for for making that first step of American lowed suit by huddling around Robinson and April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1519 making it clear to all that he was a Dodger District in New York; we will continue to cele- that everyone else takes for granted, we need through and through. brate his life by breaking racial barriers and make no apologies for being especially inter- Jackie Robinson was on that field as the settling our own records of achievement. ested in catching up on civil rights. first statement on affirmative actionÐ27 years Mr. CONYERS. Mr. Speaker, 50 years ago So as we reflect on the 50th anniversary of before it became a public policy goal. today, Jackie Robinson played first base for Jackie Robinson's debut in major league The pitchers did not throw slower fastballs, the Brooklyn Dodgers. It was the first time that baseball, let us also reflect on what Robinson or straighter curve balls when Mr. Robinson a black baseball player took the field with a fought for off the field. African-Americans still went to bat. He earned every one of his runs major league baseball team in the modern are under represented in many segments of to home base. era. Although he did not get a hit in four trips our society, from the front offices of major On June 24, 1947, Jackie Robinson stole to the plate, he did score the game's winning league baseball to corporate boardrooms to home base against the Pittsburgh Pirates, run. But most importantly, Jackie Robinson the U.S. Senate. Black babies still are more helping the Brooklyn Dodgers to a 4 to 2 win. paved the way for thousands of athletes to fol- likely to die than their white counterparts and On October 6, 1949, Mr. Robinson scored the low and gave dignity to millions of African- black motorists still are more likely to be only run in the Dodger's 1 to 0 victory over the Americans as they struggled in a society stopped by the police. New York Yankees in game 2 of the World where segregation was institutionalized in its And let's not be patient in our fight for jus- Series; and on April 23, 1954 Jackie Robinson laws and customs. tice and equality. Robinson realized that offi- stole home on the front end of a rare triple Robinson did more than just break the color cial calls for patience were really calls for inac- steal, helping the Dodgers to a 6 to 5 win over barrier in major league baseball. He excelled tion. After President Eisenhower, addressing the Pittsburgh Pirates. at, and helped redefine, the sport. He was an audience at the summit meeting of negro Jackie Robinson with his talent, communica- named Rookie of the Year in 1947 and had a leaders, urged patience, Robinson wrote tions skills, and grit spiced with determination lifetime batting average of .311. Although he President Eisenhower, saying: provided that indeed an African-American man played only 10 seasons, he hit 137 home I respectfully remind you sir, that we have had the intellectual capacity, physical capacity, been the most patient of all people. When and spiritual fortitude to meet all challenges runs, drove in 734 runs, and stole 197 bases. In 1949, he was named the league's Most Val- you said we must have self-respect, I won- put before him on the field of competition. dered how we could have self-respect and re- I believe that Tiger Woods, as he should uable Player, and beginning in 1949, he was main patient considering the treatment ac- have, has paid homage to the great Jackie elected to six consecutive all star teams. corded us through the years. 17 million Ne- Robinson, for making that first step for the And what makes Jackie Robinson's baseball groes cannot do as you suggest and wait for American society. accomplishments all the more remarkable is the hearts of men to change. We want to For without a Jackie Robinson there would the fact that many inside and outside of base- enjoy now the rights that we feel we are en- not be a Tiger Woods. ball tried their best to ensure Robinson's fail- titled to as Americans. This we cannot do Jackie Robinson we appreciate and thank ure. Pitchers threw at him, runners spiked him, unless we pursue aggressively goals which all other Americans achieved over 150 years ago. you for your efforts on all of our behalf. and opposing teams shouted racial taunts at Baseball player Ed Charles wrote a poem him. Crowds booed him and sportswriters There is much still to be done in the civil about Jackie Robinson: vilified him. But all of this only strengthened rights struggle. So let us follow Robinson's ad- He ripped at the sod along the base path, Robinson's resolve to prove himself on the vice and be vigilant and aggressive in our As he ran advance of a base. On his feet playing field. And prove himself he did. fight. were your hopes and mine. For a victory for But I don't want to focus solely on what Mr. GILMAN. Mr. Speaker, I rise today to the black man's case. And the world is grate- Jackie Robinson did on the baseball diamond, pay special tribute to the legacy of Jackie ful for the legacy, which he left for all human- because his off-field activities and accomplish- Robinson, whose monumental breaking of the ity. Thanks, Jackie, wherever you are. You will ments are what made Jackie Robinson a truly color barrier in Major League Baseball 50 always be our first superstar. remarkable individual. Given the racial abuse years ago we are celebrating this spring. I Mr. TOWNS. Mr. Speaker, today I am proud Robinson endured as a player, it would have would like to thank the distingusihed gentle- to rise and pay tribute to a great man who not been perfectly understandable for him to not woman from Florida, Congresswoman CARRIE only contributed to the sport of baseball, but get personally involved in the civil rights strug- MEEK, for sponsoring this special order. one who contributed to all of humanity. In both gle of this country. He could have viewed his As many of us will recognize today, Jackie instances, the late great Jackie Robinson pre- breaking the color barriers as his contribution Robinson's imprint on this Nation has been vailed and taught the world an important les- to the African-American struggle. But as Rob- far-reaching, not only as a prominent African- son; if given the opportunity any man can inson said in 1964, ``Life is not a spectator American but also as a man who deeply cared excel to the greatest heights. sport. * * * If you're going to spend your whole about the importance of integration and im- Jackie Robinson was many things to many life in the grandstand just watching what goes proved race relations in this Nation. people. As father, husband, writer, political ac- on, in my opinion you're escaping your life.'' Jackie Robinson was a man of great cour- tivist, military man, and of course, baseball So after he left baseball, Robinson contin- age and character, two traits which he showed player; Jackie did it all with ease, dignity, and ued to fight for the rights of all Americans. He when he received the call from Brooklyn respect. Jackie not only challenged the gentle- preached the message that racial integration Dodger President Branch Rickey and made man's agreement of segregated baseball, but and equality would not just improve the lives his debut for the Dodgers in 1947. Despite he also won a court-martial case for refusing of African-Americans, it would enrich the Na- withstanding the taunts and ill-will of many to sit in the colored section of an army bus tion. ``Negroes aren't seeking anything which fans and players alike, Jackie proved his met- when he was transferred to Camp is not good for the Nation as well as our- tle and earned the Rookie of the Year Award. Breckenridge in Kentucky where he later re- selves,'' Robinson once said. ``In order for Over the course of 10 seasons in the big ceived an honorary discharge. America to be 100 percent strongÐeconomi- leagues, Jackie amassed a lifetime batting av- The love of his country kept Jackie deter- cally, defensively, and morallyÐwe cannot af- erage of .311, and led his league in batting in mined to be the best that he could be. In ford the waste of having second-and-third 1949 and won the National League's Most 1947, he signed for $5,000 to play for the class citizens.'' Valuable Player Award in 1949. In 1962, he Brooklyn Dodgers baseball team where he led Every American President who held office was inducted into the Baseball Hall of Fame in the National League with 20 stolen bases. between 1956 and 1972 received letters from Cooperstown, NY, becoming a member of As we celebrate this great man, I personally Robinson expressing his concerns about their baseball's most distinguished fraternity. had the opportunity to witness the unveiling of failure to advance the cause of civil rights as While Jackie Robinson will forever be re- a roadside sign renaming the Interborough forcefully as possible. He made no regard to membered as a Hall of Fame ballplayer, his Parkway in my congressional district, the party affiliationÐDemocrats were just as likely strongly held convictions and advocacy of civil Jackie Robinson Parkway in honor of the 50th as Republicans to hear from Robinson. Robin- rights and improved economic opportunities anniversary of his first major league game. son was unapologetic about his political ef- for African-Americans sets him apart as one of This tribute is well deserved for a man who in forts: our Nation's outstanding citizens of all time. his 10 years with the Brooklyn Dodgers helped Mr. SCHUMER. Mr. Speaker, today all of Civil rights is not by any means the only them to win six pennants, to finish second issue that concerns me—nor, I think any my colleagues from Brooklyn joined me to in- three times, and to never finish worse than other Negro. As Americans, we have as much troduce legislation awarding a Congressional third. at stake in this country as anyone else. But Gold Medal to Jack Roosevelt Robinson. Jackie Robinson rests at the Cypress Hill since effective participation in a democracy The legislation cites Jackie Robinson's ``en- National Cemetery, in the 10th Congressional is based upon enjoyment of basic freedoms during contributions to racial equality, athletics, H1520 CONGRESSIONAL RECORD — HOUSE April 15, 1997 business, and charitable causes'' as the ample He faced taunts and stony silence, brush- Mr. Speaker, I am a baseball fan. Whether justification for this honor. But he would de- back pitches and spikings, segregated hotels it's amateur or professionalÐand particularly serve 10 gold medals just for his most famous and even death threats. But none of it ever when it's CongressionalÐI have loved the act. stopped him. game of baseball my whole life. On April 15, 1947, Jack Roosevelt Robinson In his first season, he was hit by pitches Jackie Robinson was one of my earliest changed America forever. All he did was walk nine times. But Jackie Robinson never baseball heroes, and I was a Brooklyn Dodg- out onto the grass of Ebbetts Field to play a charged the mound. ers fan because of him. When I was a boy, I game for a few hours. But those few steps Instead, he just kept playing great baseball, remember running home from school to listen were as important in our history as the moon- and he became a hero. to the Mutual radio baseball game of the walk. These are the sorts of challenges and hos- Like the moonwalk, Americans old enough tility that few of us can imagine. It took unbe- week, especially for Jackie Robinson and a to remember know just what they were doing lievable toughness to withstand the pressure. Brooklyn Dodgers game broadcast. that day. But Jackie Robinson had it, and Brooklyn As a boy, I admired Jackie Robinson as a And the courage he showed was just as loved him for it. Whenever you feel like you're great baseball player. His achievements in 10 great as the courage of those astronauts. up against the entire worldÐand Brooklynites seasons with the Brooklyn Dodgers are still From the moment Jackie Robinson inte- feel that way a lotÐyou can get through it if amazing to consider: 1947 National League grated baseball, he began to integrate Amer- you summon up half of his toughness. Rookie of the Year, 1949 National League bat- ica too. The next year, the Armed Forces were That steely determination was matched by ting champion and Most Valuable Player, a desegregated. The Nation's schools followed a another Brooklyn specialtyÐJackie Robinson .311 lifetime batting average, 197 stolen few years later. had guts. bases, and a 1962 Hall of Fame inductee. For The last time Jackie Robinson stepped to On the field, his audacious baserunning baseball fans, these statistics are a marvel. the plate in 1956, America was a very different made every pitcher nervous and revolutionized But, Jackie Robinson's legacy is so much placeÐand it was on its way to even greater the game. more significant than great baseball. changes in the near future. No matter how swift you are, it takes lots of The path was never easy, but finally our Na- chutzpah to steal home 19 times, as he did. Today, I admire Jackie Robinson as a great tion was forced to confront the legacy of rac- And it took incredible guts to step forward man. He bore the full brunt of racial prejudice ism and the challenges of creating a truly unit- as baseball's racial pioneer. during a shameful period in our Nation's his- ed country. He knew the challenges when he signed tory. Robinson was vilified for being the first For Brooklyn, that day in 1947 is an espe- with the Dodgers. Many other players would African-American to play and excel in white cially treasured moment. We are bursting with have backed away from such a task. But by major league baseball. pride that Jackie Robinson made history right all accounts, Jackie Robinson accepted the While Robinson's terrific baseball skills soon here. assignment with hardly any reservations. quieted his racist critics, the experience of But in a lot of ways it makes sense that he Finally, Brooklyn is also one of the most di- being the first African-American to integrate took that moonwalk there, because for the 10 verse places in America. What better place for major league baseball was not easy for him. years that he wore number 42 for our Dodg- Jackie Robinson to be a champion of diversity He suffered snubs and insults from players ers, he was Brooklyn's hero. than right here? and fans, and endured more than his fair And the reason is simple enough: Jackie The borough is almost 40 percent African- share of runners' spikes and brush-back Robinson captured Brooklyn's heart, because American and 20 percent Hispanic. Three out pitches. But he withstood every test. And, he captured the spirit of Brooklyn. If you are of ten Brooklynites were born in another coun- slowly, but surely, more and more baseball a typical Brooklynite, Jackie Robinson rep- try, and 4 out of 10 Brooklyn households fans began to see past the color of his skin resents your dreams, and your vision of how speak a primary language other than English. and respect Jackie Robinson for the truly you wish you could be. There have been some infamous, horrible great baseball player he was. There's so much trite talk today about how times when that diversity has divided our com- modern athletes should try to be better role munity in ugly incidents. But much more often, Jackie Robinson had a sixth sense about models for our kids. But Jackie Robinson it is a point of pride for Brooklyn. running the bases. He would dance off a never seemed to try. He seemed to effort- Jackie Robinson showed us the way to tear base, challenge pitchers and taunt catchersÐ lessly represent all the values that Brooklyn down the barriers that divide us, and then to daring them to do something about it. aspires to: steadiness and success, toughness draw on that unity as a source of strength. ``Daring,'' he once said. ``That's half my and tolerance, chutzpah and grace. He did it before he played ballÐas an army game.'' lieutenantÐwhen he faced a court martial for First of all, Jackie Robinson was an all-time Jackie Robinson's daring smashed racial refusing to move to the back of a military bus. great baseball player. He richly deserved in- myths of the day and made him a baseball He did it after he played ball, when he duction into the Hall of Fame, regardless of legend in the process. He changed the game marched with Martin Luther King. his role as a racial barrier-breaker. of baseball and American society foreverÐ Jackie Robinson was no tokenÐhe earned Ellen Roney Hughes, who is organizing this leading the way for other African-Americans his status every day where it counted: on the year's special Jackie Robinson exhibit at the who wanted to play. But, more importantly, he field. Smithsonian, points out how ``his technique of In that first game, on April 15, 1947, he peacefully breaking down the system became defied racial prejudice in America with grace scored the winning run. a civil rights technique.'' and courage. In his first season, Robinson won Rookie of And she's absolutely right. Mr. Speaker, Jackie Robinson was a true the Year, led the league in base stealing, and Jackie Robinson's greatest legacy to all of American hero. We celebrate his baseball tal- batted .297. usÐwhether we're from Brooklyn, New York ents, but his strength of character and commit- And he kept up that level of skill for a dec- or Brooklyn Park, MNÐmight be the talent, ment to social justice are what we most proud- ade with remarkable consistency. the toughness, and the guts he showed in ly remember him for today. He has a special Most fans know that his lifetime batting av- challenging bigotry with deeds rather than place in our Nation's historyÐand in my heart. erage was an impressive .311. words. But some don't realize how consistent he He put it best himself, when he said: ``a life GENERAL LEAVE was. If you look at his career averages against is not important, except in the impact it has on Mrs. MEEK of Florida. Mr. Speaker, I lefties or righties, in day games or night other lives.'' ask unanimous consent that all Mem- games, at home or on the roadÐall these In that case, I'm sure you'd agree that Jack- bers may have 5 legislative days within numbers vary from one another by only 16 ie Robinson's life was among the most impor- which to revise and extend their re- points. tant America has ever known. marks on the subject of my special That kind of steady skill is something the I urge all of my colleagues to join me as a order today, a tribute to Jackie Roo- typical Brooklynite always aspires to. We want cosponsor of this proposal, and thus appro- sevelt Robinson. to be good at what we do, day in and day priately honor this incredible life with the Con- The SPEAKER pro tempore (Mr. outÐreliable, consistent, accomplished. gressional Gold Medal. If you ask most people around the country, Mr. SABO. Mr. Speaker, I rise today to pay LUCAS). Is there objection to the re- they also think of Brooklynites as toughÐand tribute to Jackie Roosevelt Robinson, who 50 quest of the gentlewoman from Flor- they're right. That's another quality that Jackie years ago today broke the color barrier in ida? Robinson shared in abundance. major league baseball. There was no objection. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1521 CITIZEN PROTEST OF THE tossed the tea into the harbor in an us. He went the night before, he was so INTERNAL REVENUE SERVICE event that clearly led to Lexington, excited to be a part of this event, the The SPEAKER pro tempore. Under clearly led to Concord, clearly led to honorable Congressman from the great the Speaker’s announced policy of Jan- American independence, clearly began State of Georgia, CHARLIE NORWOOD. uary 7, 1997, the gentleman from Lou- the process by which this great Nation Mr. NORWOOD. I thank the gen- isiana [Mr. TAUZIN] is recognized for 60 was founded, founded on those prin- tleman from Louisiana [Mr. TAUZIN] minutes as the designee of the major- ciples of liberty and freedom and the and I am delighted to be here tonight ity leader. fact that citizens of this country were with the gentleman from Colorado [Mr. Mr. TAUZIN. Mr. Speaker, tonight indeed masters of their fate, that gov- SCHAEFER] and the gentleman from we gather in a special order on a spe- ernment would always be their servant. Louisiana [Mr. TAUZIN], and in fact I cial day. Today is of course April 15, And so today we gathered in Boston have been delighted to be with you all the day the tax man cometh, and as I Harbor, new sons and daughters of lib- day. It has been one of those exciting speak Americans across this land are erty, gathered there with citizens from and exhilarating days, and I agree with scrambling to reach the post office by across America to declare that on this both of you. It was a little part of his- midnight tonight, scrambling to fill day we begin the process of debating tory today. out those last forms and read those here in this country, here in this Con- As a school boy I always fantasized last instructions and those complicated gress, whether it is time indeed to take being one of those Indians that dumped booklets, trying to fulfill their duty as on the taxing power of this Govern- the tea into Boston Harbor originally, an American and to file their income ment and declare our personal freedom and I have to tell you that I thoroughly taxes as required by law. again. enjoyed myself today as we made a Tonight I am joined in this special Today we dumped the U.S. Tax Code statement across the country saying order by my dear friend and colleague in a tea box into Boston Harbor in a de- that the present tax system will not do from Colorado DAN SCHAEFER. DAN liberate protest announcing our deci- any longer; the American people have SCHAEFER and I just came back from sion today to file the Schaefer-Tauzin had enough of it, it is unfair, it is too Boston, MA earlier today. We traveled bill which is the first bill filed along complex, too complicated, and we need to Boston, MA, the site of this Nation’s with the one we filed last year to re- to take a step like we took today in an birth of freedom for a very special rea- peal the income tax of America, to effort to do the wonderful things we son on this April 15. Today in Boston abolish the IRS, to repeal in fact all in- are doing. Harbor DAN SCHAEFER and I were come taxes in this country, including I mean, how can you not be for any- joined by three of our colleagues who gift and inheritance taxes, and replace thing that will repeal the corporate in- came to Boston and have joined us in them all with simple, straightforward come tax, the personal income tax, the support of a very important idea that national retail consumption tax. inheritance tax, capital gains, gift tax? we wanted the Nation to begin think- I am pleased to yield to my friend, I mean, how can you not be for that, ing about and to begin debating this the principal sponsor of the legislation, knowing that we are going to very year. who joined me and our colleagues in nicely fund the country on a 15-cent We journeyed to Boston, to Boston Boston Harbor for this demonstration sales tax, and I hope tonight we will Harbor, in commemoration of an event of citizen protest against the U.S. tax talk about this a little bit and help ex- that occurred on December 16, 1773 in system and its taxing agency, Con- plain to the American people more de- that very same harbor, and we gath- gressman DAN SCHAEFER. tails in your fine bill. ered at the site at Boston Harbor where Mr. SCHAEFER of Colorado. I thank Mr. TAUZIN. I thank the gentleman, in fact the birth of liberty, the birth of the gentleman for yielding, and this and let me first announce that what we freedom, the idea of America first truly was an eventful moment, I feel, started today was most importantly a came to reality. and four other Members also feel what debate on the current tax system. Most In that harbor in Boston, Congress- happened. importantly what we did today was to man DAN SCHAEFER and our colleagues Some people have called this a radi- say to all Americans that you ought to literally reenacted that event of De- cal move. I call it revolutionary, and if seriously consider and not trivialize, cember 16, 1773. We got aboard the brig, we started the revolution today, I am seriously consider whether or not the the Beaver, which is a replica of the proud of it. It is going to take people income tax system that we in this Con- original brig, the Beaver, that was all across this country joining us in gress vote on yearly and change every there along with two other ships, the this endeavor to get this Tax Code out other Congress, the income tax system Dartmouth and the Endeavor, both of of our hair once and for all and go to a which is the basic funding mechanism which were there to—I am sorry, the very sensible tax that we now will for this government in Washington is a Eleanor, the Dartmouth and the Elea- allow the American people to decide on good system for this country or wheth- nor, both of which were there docked how they are going to pay their taxes, er it is a bad one; and if it is a bad one, at the harbor along with the brig, the not the IRS and not Congress anymore. to seriously consider with us a national Beaver, filled in tea shipped in by com- And I think when we start talking grassroots effort to educate America panies in Great Britain under a monop- about this from coast to coast, north to and, more importantly, the Members of oly arrangement and subject to a tax south, people are beginning to come this Congress and the Senate who are on tea that the colonists found great aboard. going to make the difference if they fault with. A year ago the debate had already vote correctly to one day consider As you know, on that fateful evening begun, and since then we have been on abolishing this system in favor of a about 50 colonists, led in part by young talk shows, radio, TV, all of us have, better one. That is the first decision we Sam Adams and many other patriots and it is starting to gel, just the people have to talk about: Is the current in- including John Hancock and the likes who were there today that were hold- come tax system good for this country of Paul Revere, gathered together as ing up the placards were from Califor- or is it bad for this country? sons and daughters of liberty meeting nia and from Texas and from Oregon So I suggest we do that first. Let us at the Green Dragon there in Boston and Florida and Arizona and every- have a discussion, if you will, about Harbor and determined to resist this where, and they made a long trip. why the current income tax system is foreign taxing power and determined to There was an 88-year-old gentleman a bad tax system for a country in this assert their rights as citizens of this who came in from Houston into Vir- century, about to enter a new century country, citizens of colonial America ginia, drove 8 hours to get up to Bos- in an increasingly globally free trade then to determine their own destiny ton. economy. Is this a good tax system for apart from this power in Great Britain Now that is dedication. citizens who are filling out those forms that was determined to tax them with- Mr. TAUZIN. Mr. Speaker, I thank tonight? Is it a good tax system for out representation. my friend. workers who are out there struggling On that fateful evening, dressed as Also joining us tonight for this spe- to feed their families, educate their Mohawk Indians, they docked those cial order is another gentleman who kids and leave something for their ships, boarded those ships rather, and joined us in Boston. In fact he preceded grandchildren and others to enjoy H1522 CONGRESSIONAL RECORD — HOUSE April 15, 1997 when they pass away? Is this a good cording to editorial IRS, the problem is that 1986 bill. We have over 8,000 pages system or is this a bad one? power of Investors Business Daily, now of codifications, rules, regulations, I yield to my friend from Colorado. April 11, 1997. The IRS contains now in and everything else stuck in there, and Mr. DAN SCHAEFER of Colorado. I its code and regulations 5.5 million I do not know how anybody can figure thank the gentleman for yielding very words, 17,000 pages. It was a pretty anything out of what we have. much, and I think when we all do town hefty chest we throw over into Boston So that is what is bad with it. It is meetings out there we talk about a lot Harbor today. It is so complex that it too complicated. It is just too com- of different things, but I do tell you is a wonder anybody understands it. plicated. That is what we want to do, is one thing. The issue that gets every- In fact in 1986, if you recall, Ronald simplify it. body going very, very quickly and Reagan offered us a plan called sim- Mr. TAUZIN. Mr. Speaker, I will give very, very favorably is talking about plified income taxes, and that plan was my friend a better reason why the In- this tax system. passed. It reduced the rates of taxation come Tax Code that we run this Gov- Now they know that when they go from 14 down to about 2. Well, guess ernment with is lousy for every work- and make out those taxes and mail what has happened since 1986 again? ing American. them in today that they should sprin- Since 1986 this Congress made 4,000 in- The Income Tax Code that we run kle holy water on it before they mail it dividual changes in that income tax this Government with, that only taxes because who knows what is going to code of 1986. It is now up to five rates your income, it taxes your spending, it happen? There have been a number of and growing daily, and today we are taxes your saving, it taxes your invest- polls out. You take your taxes to a told that Americans have to work on ments. It taxes your gifts to your chil- CPA. He figures them out. He figures average until May 9 just to pay taxes dren, whether you are alive, or if you them out, or she figures them out; then in America—if they can figure them are trying to give it to them when you you take them to 15 other CPA’s, and out and file their forms correctly. die through inheritance. It taxes you they will all figure them out different. on the same money over and over and b 2045 So who is wrong and who is right? And over again. the IRS will tell you it is a different And if the tax, if the tax forms are Now, why does it tax you more than figure altogether. filed, and the IRS decides that you did once? Let me explain that. It taxes you There is one thing right there, and, something wrong, guess what happens more than once because once you paid my colleagues, when you get on these in America? Unlike a Federal court, your taxes, once they have been with- talk shows, and the one thing that I where you might be indicted and yet held from your paycheck and you go continually say is how would you like presumed innocent until a jury finds out into the marketplace and try to to take all of that money that was you guilty, with the IRS we created, buy something in this society, if you withheld from you in your last check you are guilty until you prove yourself dare to buy anything made in America, and put it in your pocket, and you innocent. It is the most un-American if you can find anything made in Amer- could decide whether you want to system I think we could ever devise in ica on the shelves of the store in your spend it or save it or whatever you a country that was founded on the town, you are going to pay an IRS pre- want to do? It is yours. If you consume principles of liberty and freedom, as mium on that purchase. it, if you buy a television set or if you our forefathers who gathered in Boston How much? Economists tell us that buy a piece of furniture or a suit of Harbor thought about a country all the cost of the IRS system, the cost of clothes, sure you are going to pay a 15 those years back to 1773. all of this filing of all of this paper, all percent tax. But everything else is In short, what we are saying is that of these manhours, all the taxes that gone, and I just say that the American the Income Tax Code is not only in- are paid by the farmer, the miner, the people are the ones who are pushing comprehensible to most of us and to forester, the manufacturer, the ship- this one and we have to be the catalyst experts, it has become a burden on our per, the wholesaler, the retailer, by the to make it grow. society. In fact, in America, we spend time that box of cereal reaches you at Mr. TAUZIN. I yield to my friend nearly 300 billion of manhours prepar- home, so much taxes and cost to the from Georgia. ing those tax forms. IRS have been applied to the manufac- Mr. NORWOOD. Mr. Speaker, I would In the Kemp Commission report filed turer of that product that you paid 10 also like to point out: Is this a good just recently, last year I think it was, percent to 15 percent more as a hidden system? I note that I certainly do not the Kemp Commission reported that IRS cost in everything made in Amer- understand the Tax Code or the sys- the small businesses in America, they ica. tem, and I am not sure that my taxes will spend $4 for every $1 they send the Now, here is the real tragedy. If you were right today. I have what I con- Government tonight, just doing the pa- buy something made foreign, if you sider one of the best CPA’s in Georgia, perwork, just doing the records and the buy an imported product, you do not and he readily tells me, ‘‘Well, I don’t procedures that lead to the filing of pay that tax. So guess why we buy so understand this tax code, I’m not sure that tax form. many foreign products in America? if I have it right. I can call on the IRS In short, we have a system that is Those foreign products coming in in a and ask them if they know what the out of control; we have an agency that free trade GATT society come into system is all about, and they say, is un-American. It is time to seriously America without having to pay the in- ‘Well, I’ll give you an answer, but I’m consider replacing it with a better sys- come tax load, because the countries not sure if we have it right.’ ’’ tem. where they are shipped exempt them The IRS tried to correct that and I yield to my friend from Colorado. from the VAT taxes they impose at purchased a $4 billion computer and Mr. DAN SCHAEFER of Colorado. home. Those taxes come in untaxed to after trashing a $4 billion computer Mr. Speaker, I thank the gentleman for America and compete on the shelf with they say, ‘‘Well, the computer doesn’t yielding. a product made by American labor that understand if we have it right,’’ and I I took the liberty of going back and bears a 10 to 15 percent hidden IRS tax am struck by the quote from Albert pulling up the 1913 tax forms. Now, this on it. Einstein: The hardest thing in the was a surprise. There were 14 pages of We wonder why so many jobs are world to understand is our income tax explanations. Now, only 14, my friend leaving America. We wonder why so system. from Louisiana, and the forms that you many Americans are buying foreign Now if Mr. Albert Einstein cannot fill out were withholding, deductions, products, why so many retailers are understand our system—and I do not and what you had to pay, three forms. reaching out across the globe to find think we have a lot of Mr. Einsteins Now, I do not know how many are in products to bring into this country in- over at the IRS—how do we expect the that Tax Code, but it was very, very stead of manufacturing them here. We average person in the 10th District of heavy when we lifted them in that one wonder why Pat Buchanan stirred up Georgia to have submitted their taxes single tea box with that chain around America, the peasants with pitchforks, today without considerable fear? it today. to complain about the GATT Treaty. It Mr. TAUZIN. I thank my friend. Let So what has happened, and the gen- was not the treaty that was at fault, it me point out that the IRS tax code, ac- tleman is exactly right, we go back to was our Tax Code that said in America April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1523 we are only going to tax American under our bill. He plants his seeds and in England then that is shipped to our labor, we are only going to tax Amer- produces the wheat. He pays no tax. He country for sale? ican products, we will not tax foreign ships the wheat to a miller. From the Mr. TAUZIN. If it is produced in Eng- products coming in. miller it goes to a baker, and from a land and shipped to America, the How do we change that? We cannot baker it goes to the retail outlet. All value-added taxes that would be im- change that with an Income Tax Code the way along the line now, there has posed in England are exempted. They under the GATT Treaty. We can only been no tax under our bill. Is that a are actually rebated back to the pro- change it if we get rid of the income correct statement? ducer, and that box of cereal enters tax and impose a common tax on the Mr. TAUZIN. Mr. Speaker, the gen- America without the value-added tax purchase of goods made in America and tleman from Georgia is accurate. So on it, and it sits on the shelf right next goods brought in, imported into this what the gentleman from Georgia is to the box of cereal that was produced country. explaining is the alternative to the in- in America with all of those income How serious is it? For every $1 billion come tax, what we describe in the taxes on it. So one has a 14- to 15-per- that we lose in export trade, 19,000 Schaefer-Tauzin bill as a national re- cent disadvantage. Which one is it? The American jobs are lost; 19,000 Ameri- tail consumption tax. American product. cans are out of work, because our In- The gentleman is correct. Under our The same thing is true when we send come Tax Code, for every $1 billion of concept, there is no tax on the income that box of cereal to England. It car- foreign trade that we lose. earned by the individual or by the busi- ries that 14 and 15 percent IRS tax on How many of those billions could we ness. There is no tax on any of the its back, and it gets the English value- attract back to home if we suddenly processes that produce a product in added tax on it, and it sits on the shelf ended this 10 to 15 percent IRS cost on America. The only time there is a tax next to the English product that only the products we make in America? How is when the product is eventually sold has a value-added tax. Guess who suf- many families could have a job again? for consumption, and it does not mat- fers a disadvantage? The American How many people could be productive ter whether that product is made in product again. again in this society? How many manu- America or imported into this country So when Pat Buchanan was running facturers could be hiring people instead from foreign lands. When it is bought around complaining about how free of laying people off if we simply had a for consumption in America, our bill trade was damaging American workers Tax Code that treated people fairly in would provide a 15-percent retail con- and sending jobs overseas, he was America? sumption tax in the place of all those right, but the real culprit is not the In short, we are talking about an In- other taxes that currently burden us so GATT Treaty, the real culprit is our come Tax Code that taxes us when we badly. tax laws which penalize every worker earn money; it punishes us when we Mr. NORWOOD. Mr. Speaker, is the in this country, every American prod- save money, because it taxes our inter- gentleman saying our consumption tax uct, whether it is sold domestically or est earnings; it punishes us when we in- bill will increase jobs, so if we do the in foreign lands. vest, because it taxes our investment same scenario with a tire, and we get Mr. NORWOOD. Mr. Speaker, the earnings and our capital gains; it pun- to the point where we are ready to ex- gentleman from Louisiana makes the ishes us if we buy America; and it re- port that tire, that tire then does not point here then that if we go to the wards us only if we buy something im- have that 15 cents’ worth of taxes on it, consumption tax, we have almost a 30- ported into this country, manufactured does it? percent spread in products that will be in some foreign country. Mr. TAUZIN. Mr. Speaker, the gen- produced in this country going our What a lousy Tax Code. Who would tleman is exactly right. The gentleman way. That is what you mean by, it will want to keep such a Tax Code? Who in is exactly right. increase jobs in this country, because this body, given a choice to substitute Under the current Income Tax Code, we are better able to compete; there- that Tax Code for one that treated when we manufacture any product, let fore, we will have more jobs in this American labor and American products us take that box of cereal, all the way country. fairly, that taxed both the import and from the farmer all the way to the re- Mr. TAUZIN. Mr. Speaker, the gen- the domestic product equally, like tailer, when that product is sold in for- tleman is right. We do not have to pe- most other countries do, and that send eign commerce today, it bears all the nalize ourselves in a free trade global our exports into the world without the costs of the IRS in its price. environment. What we ought to do is cost of the IRS on their back? Who, That is why it fails to compete when treat ourselves as well as we treat any given that choice, would not vote for it it gets overseas, because guess what foreign product, but we do not. We pe- tonight, today? happens if you ship it to England? In nalize ourselves at home, and then we Well, the truth is, we have a lot of England they put another tax on it, so penalize our products when we sell educating to do. We have a big job, it is taxed in England and it is taxed in them abroad, and the penalty is 20- to starting this day, starting in that Bos- America. When England sends a box of 30-percent. ton Harbor to educate Americans about cereal to America, they exempt that Now, I would ask my colleague to tell just how lousy this Income Tax Code box of cereal from their value-added me how, with a 20 or 30 percent pen- is, how depressing it is to the U.S. tax. We do not tax it when it gets here, alty, America cannot see its jobs con- economy, how it damages American so it comes in tax-free. tinue to fly overseas and why, if we workers, how it literally discriminates In short, our products are at a great could get rid of that penalty, those jobs against American products, not only in disadvantage with our Income Tax would come back home. our own market, but all over the world. Code, and, in short, if we changed it to I yield to my friend from Colorado. A Tax Code like that deserves to get what the gentleman from Colorado, Mr. DAN SCHAEFER of Colorado. ripped out by its roots, it deserves to [Mr. DAN SCHAEFER] and I have rec- Mr. Speaker, the gentleman mentions get dumped in Boston Harbor, and it ommended, that box of cereal would in a couple of cases with this box of ce- deserves to get abolished by this Cham- enter the market in Great Britain, let real, and I think it is very, very impor- ber. us say, without a single IRS tax on its tant that the American people under- I yield to my friend from Georgia. back. It would get the VAT tax when it stand, this is not a value-added tax. A Mr. NORWOOD. Mr. Speaker, if the got there, but it would compete fairly value-added tax is a terrible way of gentleman would yield for a question, against the English box of cereal that taxation. All along, every time a prod- because I think he made a very good also had a VAT tax on it. In short, we uct changes hands, there is a new tax point, but if he will walk me through it would equalize our products in the added on it. This is not a value-added a little bit where I can perhaps under- marketplace, establish a fair playing tax. stand it a little better. field in exports, and we would create The second thing that is wrong with What we are saying is an end-use American jobs the likes of which we this system that we have is this lousy consumption tax. That means, for ex- have not seen in decades. inheritance tax that is out there. Peo- ample, the farmer goes out and buys a Mr. NORWOOD. Mr. Speaker, what ple work all their lives to build a farm tractor and seeds, and he pays no tax happens to the box of cereal produced or a business or whatever it is, and H1524 CONGRESSIONAL RECORD — HOUSE April 15, 1997 they want to finally give it to their scribed, where as patriots, new sons taxes your spending on American prod- children. The IRS steps in, takes 50, 60 and daughters of liberty, we do in this ucts again, because it includes that 20 percent of that hard-earned money Chamber what we illustrated could be percent tax on American manufactur- that people have labored over. done in Boston Harbor, we dump this ing and business. It is not a tax that is Mr. TAUZIN. The gentleman forgot a income tax system and replace it with equally applied to foreign imported step. It is hard-earned money that they a much better, simpler, flatter rate products. So it again discriminates have already paid taxes on. system that Americans can live under against the American workers and the Mr. DAN SCHAEFER of Colorado. with dignity and pride and a full exer- American product. So while it is an im- That is exactly right. cise of the freedoms that those patriots provement over the current tax and the I want to make one other point, and so dearly fought for way back when our current income tax structure, it is not the gentleman from Louisiana already country was first thought of. yet the best answer. has, and this is bringing jobs in. Mr. Speaker, I yield to my friend, the So what is the best answer? I am not sure what the best answer is yet, but I b 2100 gentleman from Georgia [Mr. NOR- WOOD]. will tell the Members what the best an- If we look at the people in this world, Mr. NORWOOD. Mr. Speaker, just a swer we have come up with so far, in and we have talked to them, who are couple of thoughts, and what we might my opinion, is: It is the Schaefer-Tau- international marketeers, they say, do discuss. If we find this consumption tax zin bill. you realize what would happen if you bill is law and people are able to save What we have proposed in this bill is passed a piece of legislation like this? once again, they are not penalized for the complete elimination of the income Manufacturers in foreign countries doing so. In other words, their tax, both on individuals and on busi- would say, we can come over here, compounding of their money is not nesses; the complete elimination of in- build a factory, create jobs, turn taxed, and they would have great in- come taxes on savings accounts; the around and export, no taxes. But, the centives to save. If our saving dollars complete elimination of income taxes important thing is that we are creating increased in this, I think it is pretty on capital gains and other investments; a lot of jobs, and that is all good for reasonable to suspect that interest the complete elimination of taxes on the American economy. rates come down. gifts to our children, to charities, to Mr. TAUZIN. Mr. Speaker, I think we The other part of this bill that I anything; the complete elimination of have concluded and we should all con- think is so important that will prepare taxes on inheritance, the kind of gifts clude that the American income tax us for the 21st century is that people we make to our children when we even- system is far more complicated than will have an incentive to invest in tually pass away and want to leave we could understand. Even Albert Ein- plants and factories and stores, because them something which we have tried to stein could not understand it. But it if they should happen to make a profit, build for them during our lifetime; and, has reached a point in this historical they get to keep the profit, not send it finally, it is a tax that will apply to setting where it has been amended and all to Washington, at least until it is both domestic and foreign products. How do we do it? We do it by sub- tinkered with so many times that it consumed. That, to me, is the answer stituting all of those taxes that we re- gets more complicated every time we for the 21st century as we compete peal with a simple 15-percent tax on see it; that it has become so incompre- with China and Asia and different parts the final purchase for consumption in hensible that Americans tonight, I am of this globe, is give our own people in- America of products and services. sure, are struggling to fill out all those centives to build and invest, so we forms, as we struggle every year; that How does that work, and why did we build our own plants and factories. come up with 15? We came up with 15 April 15 has become a day of tyranny in Is that not what the gentleman’s con- this country, a day in which we indeed percent because, according to the Na- sumption bill is trying to do? tional Taxpayers Union, 12.9 percent on wanted to celebrate the birth of our Mr. TAUZIN. Mr. Speaker, the gen- goods and services consumed in Amer- Nation’s freedom in Boston Harbor by tleman is abundantly correct. Let us ica produces the same amount of declaring that today we begin the proc- talk about this alternative now. Let us money that the current income tax ess of educating Americans and the talk about several alternatives that code produces, along with gift and in- Members of this body on why the in- people have talked about to the United come tax is terrible for this country, heritance taxes and a host of excise States Income Tax Code. taxes, which we also repeal. and why we ought to seriously consider We have heard a lot about the flat At 12.9 percent, in other words, we repealing it, removing it, and sub- tax. It was proposed, of course, in the could make this Government whole. It stituting an alternative in its place. Presidential campaign by Mr. FORBES, would be revenue-neutral. A 12.9-per- We are not alone. We are not alone. and our colleague, the gentleman from cent retail consumption tax would There are many others who are joining Texas [Mr. ARMEY] has a flat tax pro- produce the same amount of money in as cosponsors. Let me tell the Mem- posal before this body. The flat tax is that the current taxes that I have de- bers the wonderful truth. The wonder- simply a flattening of all the IRS rates, scribed produce as a group. ful truth is that the person in this the five rates we currently have, into a Why have we chosen 15 percent? We House most responsible for writing tax single flat rate. It also imposes a single chose 15 percent because we thought it policy, the chairman of the Committee flat rate on all businesses. I think it is was important in a national retail con- on Ways and Means, the honorable gen- a 17 percent, in that bill, on individ- sumption tax to do several things tleman from Texas, [Mr. BILL ARCHER] uals, a 20 percent on businesses. So it is which were critical to our society. is a supporter of this concept. He is a a vast improvement upon the current First, we wanted to make sure that driving force behind all of our efforts complex code. no one who earned income below the to talk about repealing the United Is there a problem with that alter- poverty line would be adversely af- States Income Tax Code and the IRS native? Yes; the problem with that al- fected by a retail sales tax. So at 15 and replacing it with a better model, ternative is that the 17-percent rate percent, we have enough money col- one that works better for America and has to go up considerably when we lected so we can reduce FICA taxes for for every worker in this country, every start providing the necessary deduc- all citizens on their earnings up to and family, every income earner. tions for the home mortgage interest, including the poverty line for their The gentleman from Texas, the perhaps for medicine and other things. family. chairman of the Committee on Ways The bottom line is that the real prob- In short, we have taken the and Means, today has started that lem with the flat rate proposal is that regressivity argument away. We have process of examination. We hope that it is still an income tax, and an income taken away the argument that this over time, as more and more Members tax is an income tax is an income tax. sales tax proposal will adversely affect become knowledgeable about how rot- It can become a fat, complicated tax those who earn below the poverty line. ten this system is, and how there are after a few congressional sessions. In fact, we hold people below the pov- better alternatives out there, then per- Most importantly, it is still a double erty line, in fact, all the earners, com- haps one day we can have a vote in this taxation system. It taxes personal in- pletely harmless from the effect of the Chamber, the kind of vote I earlier de- come once when you earn it, and it tax on poverty-earned income. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1525 Second, the 15 percent helps us to to eliminate 30 cents of that dollar erate as competition weeds out this ex- fund two important features of the bill. that is in the process of getting to the cess profit and as consumers take ad- One is a continuation of the exemption loaf of bread that is in taxes that com- vantage of prices and competitors in a of the home mortgage interest deduc- panies and farmers and retailers and marketplace where costs are coming tion, critical to a society that favors millers normally pay, as well as the down instead of going up. the purchasing and ownership of compliance part. Mr. NORWOOD. Mr. Speaker, today homes, in a society where family life What, I would ask the gentleman being tax day, everybody has at least a and families are critical. from Louisiana [Mr. TAUZIN] is going copy of their returns in their hand. We have also continued in this bill to happen to the cost of bread when Perhaps they still have their returns. the exemption for moneys spent to pur- you eliminate that 30 cents out of the But today might be a good day to look chase an education, for training and dollar? at what happened in last year’s tax bill education, because we consider this And I just use one example here. It is and compare it to what might happen just as we would consider purchases true in gasoline and many other prod- under our consumption tax bill. made to produce products, as part of ucts. But what is going to really hap- I mean, would you not take your in- the cost of being productive in our so- pen to us now with that cost of bread come, and then from that income you ciety. when you take out 30 percent of the would deduct any state or local taxes So at 15 percent we take care of the cost? that you paid, you would be able to de- educational expenses of being a produc- What do we think that the American duct from that income the amount up tive society, we take care of the home citizen would end up paying then for to the poverty level because that is ex- mortgage interest deduction, and we that same loaf of bread that previously empt, I think it is $15 or $16 thousand, protect income below the poverty line, they had to earn $1.28? any money that you might set aside Mr. TAUZIN. Well, let us start out and yet we still produce, with the re- out of that income for savings that with the notion, CHARLIE, that every tail consumption tax, the same amount would be deducted; and you simply citizen that buys that loaf of bread of money that the current income tax multiply 15 percent times what is left. suddenly has more money to buy it system produces to run this govern- And I think it would be a neat exer- with. ment, along with all the other taxes I I want you to look at your tax state- cise for every American in this country mentioned: taxes on gifts and taxes on ment or look at your pay stub this today to look at their tax bill today inheritance, taxes on capital gains and week. Look at how much money is and see what the difference would corporations in America. taken out in withholding taxes from mean to them and their families if we In short, we provide in this bill, your pay stub. I would like everyone in were doing a consumption tax in this which will become, very soon, H.R. the chamber to do that. Look at the country as opposed to income tax. 2001, we provide the complete elimi- amount of money that you finally got Did I leave anything out? nation of this income tax which so bur- as your salary. Look at how much Mr. TAUZIN. Mr. Speaker, the gen- dens America tonight, the abolishment money the Government took before tleman left one thing out, the thing we of the IRS, and a simple, flat retail you even saw your salary in the form just talked about, the fact that not consumption tax that is fair to all of withholdings, and imagine tonight only will that tax bill come down, Americans and that will increase the that instead of the Government with- every American at every income level productivity of this country, and cre- holding that money from you, imagine does better under this plan, but the ate for the first time parity, equal it all came to you, that you had all fact that the cost of American products treatment, for American jobs, Amer- those withholding taxes now to spend also come down simultaneously. ican labor, and American products in to buy that loaf of bread. You would Mr. NORWOOD. I think we can show this import-export free market world. have a lot more disposable income in a difference even if you say the cost Is that a better alternative? I suggest your pocket as a family to buy that will not come down, but we all know it it definitely is, but if Members have a loaf of bread. will. better one, if they have an alternative Second, the gentleman is right, when Mr. TAUZIN. Even if the cost did not that is even better than this one, we we repeal the income tax effect on come down, Americans would come out are anxious to hear it. products produced in America, we re- better. What we wanted to do in Boston Har- duce that cost significantly. And if the I am often asked, what about Ameri- bor today, CHARLIE, was to begin this cost of the income tax system is 15 or cans who are not earning an income? debate; to get Americans to focus to- 30 percent of that loaf of bread, in a What about Americans who are re- night, on this awful day the tax man competitive marketplace, what quickly tired? cometh, on whether or not we, as sons happens is that bread competitors, all First of all, most retired Americans and daughters who have inherited this of whom want you to buy their bread, are earning an income. They are col- enormous land of liberty and freedom, start competing against one another; lecting money that taxes were delayed are willing, indeed, to tackle the dif- and because they have a big margin upon and later on taxes are collected ficult job of dumping this American in- now with profit to work with, they upon, pension incomes, what have you. come tax system and replacing it with tend to lower their prices to attract All those taxes on that income are re- one that is fairer and better for our customers away from one another. pealed under our bill. country and better for our economy. So, in the normal course of events in b 2115 Is that worthwhile? Is that worth the competitive marketplace, prices doing? I suggest to the Members that it begin to fall, prices of American prod- So that seniors who have taxes due is. I suggest that this alternative, the ucts begin to come down in our society. on money that have not paid taxes yet, Schaefer-Tauzin retail consumption And as those prices come down, you that are scheduled to pay taxes later, tax for America, is a much better alter- have more money to buy those prod- those taxes are repealed under our bill. native than any one you will hear ucts with and you pay that 15 percent The Social Security tax, the tax on about, any one you will read about, sales tax when you consume it, you are Social Security earnings is repealed that I know of. If there is a better one much better off than in this current under our bill. The taxes earned in out there, I am anxious to find it. system where you are paying taxes on money markets or investments made Mr. Speaker, I yield to the gentleman your incomes paying for much higher by seniors for their later years are re- from Georgia. products in the marketplace, and then pealed under this bill. Most impor- Mr. NORWOOD. Mr. Speaker, I want also having to pay taxes on the inter- tantly, most seniors who are under So- to talk about the price of goods that est earnings or the gifts or inheritance cial Security or other subsidy pro- could occur under the consumption taxes that may come from whatever grams, pensions, have COLA adjust- tax. money you have left after you get ments to protect them against any im- Presently, if a loaf of bread is a dol- through saving what little you can pacts this tax may have upon the price lar, we have to generally earn $1.28 to save in this society. of anything. We think prices are going go buy that loaf of bread. Now, under In short, prices under our bill are to go down but if they do not, CPI ad- the consumption tax bill, we are going likely to come down, are likely to mod- justments take care of that. H1526 CONGRESSIONAL RECORD — HOUSE April 15, 1997 In short, we think every income cat- Do you know what you do then? You ing more of their hard-earned money egory from those who retire all the start creating three and four and five than they really wish to pay for Con- way to those who are earning in our so- workers for every retired American. gress. Yet tonight we sit here and we ciety at full levels are going to be bet- And do you know what you do then? talk about a great opportunity to ter off under this bill. And I invite You stabilize Social Security and Med- change our tax system and go to a very Americans to do the exercise you icare. You protect seniors in the future simple system that will increase and talked about, look at what taxes you in a way that we cannot even think improve jobs in this country. paid this year. Look at what taxes you about protecting them today as we It is going to let every American paid under this income tax system. squabble over trying to balance the have more money in their own pocket, And look at what happens under this budget and save Medicare from bank- not because they are not having to pay bill. If you need a copy of the bill, call ruptcy. so much up here, but because prices in our office or contact us here, we will In short, changing the Tax Code is this country can come down. And think make sure you get a copy. Examine it the best prescription for putting this how wonderful it is to think that April to see whether or not you are not bet- country back on a growth economy 15 could be just as fine a day as July 15. ter off under this bill. where workers are protecting their sen- I mean that alone is worth a great deal My idea is that you are going to find iors with contributions to pension of effort. out you are not only better off, you are funds and Social Security systems and What about the growth that you are talking about in our country and the much better off. You do not have to Medicare trust funds. investment that is going to occur when keep forms anymore. You do not have In short, this is the best medicine I we quit penalizing capitalists. That is to keep records anymore. You do not know for America. On April 15, when what we are, are we not, we are a cap- have to worry about the IRS audits we are all suffering because of this in- italist country where people invest anymore. You do not have to worry come tax system, when we are all suf- their dollars and hope to make a profit. about April 15 anymore. You do not fering through having to meet these And they do not want to make the have to file any forms. deadlines, this is the best prescription profit for the Federal Government or You decide how much taxes you pay to make us well again. This is the best either the banks. And we are talking by deciding how much spending you do prescription to make this country about lowering the interest rate so peo- above poverty for things you want. You strong again, to grow it again, to cre- ple can keep more of their money. decide how much taxes you will not ate the jobs every day we are sending Then maybe more than anything else, pay by deciding to save or invest in- overseas and to bring them back to we are talking about personal free- stead that money. You are masters of America where this country can be doms, and this bill gives us an oppor- your own fate. strong. Is this worth debating? You tunity to control our own lives without This Government, this Congress is no betcha. Are we serious? You betcha. Do 535 people in Washington telling us longer telling you how to live, what to not dare not take us seriously. what to do from the minute we get up save, how to spend. It is not saying who We are finally in this Chamber debat- to the minute we go to bed, not to is going to get a tax break and who will ing the real question of whether or not speak of the 125,000 IRS agents out not. From now on under this proposal we are going to keep this income Tax there that are constantly observing to there is a simple rate. You decide how Code or repeal it. What a wonderful make sure that we do all the things much you want to pay by deciding how day. What a wonderful start in Boston that they want us to do. much you want to spend instead of sav- Harbor. What a wonderful night it will I hope the American people will take ing or investing above that poverty be when we stand in this Chamber one this very seriously. And if they believe line. day and we get a chance to put our in what we are doing or if they want If you live below the poverty line, the cards into those voting machines and more information or if they need to bill protects you from the effects of actually vote on repealing the IRS and talk to their Congressman or Congress- this tax. You get all the benefits of abolishing the income Tax Code for woman or their Senator, just send lower prices and no income tax and you America and giving us a Tax Code that them a tea bag. Just send them a sim- are protected from the effects of the works for us instead of against us. ple little tea bag saying, yes, I want to sales tax. You are much better off if Mr. Speaker, I yield to the gentleman change the tax code as we know it you are retired, as explained. I think from Georgia (Mr. NORWOOD). today. They do not even have to write you are better off, too. Mr. NORWOOD. Mr. Speaker, our them a note. They are going to know Let me tell you why America is bet- time is coming to an end. I agree with what they mean. They are going to ter off. We are down to three people the gentleman. It has been a wonderful know that they want an alternative working in this country for every two and exciting day. I have been so taxing system to the present unfair people who are retired under Social Se- pleased and honored to participate in system. curity. You wonder why Social Secu- that project. It has been a great pleasure and a rity is looking like it is going to be in But in summary, I would simply say great honor to be with the gentleman trouble as we turn the century? You that our present tax system, and all from Louisiana [Mr. TAUZIN] today. wonder why Medicare is going bank- Americans would agree, is simply too Mr. TAUZIN. Mr. Speaker, I thank rupt in this society? complex. It is too difficult. In addition the gentleman. I want to thank him for We have got fewer and fewer workers to that, we spend way too many non- accompanying me and our colleagues supporting an aging population. That productive hours in this country trying to Boston and for being such a great is a prescription for problems. That is to prepare for taxes, trying to avoid voice on this issue tonight and, I am a prescription for disaster. How do you taxes, just being caught up in the sure, as we go into future debates on it. change that? You change that by hav- whole taxing system that this Congress I think you have really set the tone ing more workers in your society, by for years has used to slowly but surely for us to conclude this special order be- encouraging jobs back into your coun- take away individual freedoms. cause you talked about personal free- try. I know, and I have not been here doms and liberty. That is what Boston How do you do it with an income Tax long, but I know my life often is driven Harbor was all about, and that is what Code that breaks the back of anyone by the Tax Code and what is done here this debate is all about. who wants to make anything in this in Congress to try to get me to do this Congress is not going to repeal the country, that penalizes you at 10 or 15 or go that way, and to me it simply is income Tax Code easily. The income percent against any product imported taking away freedoms. Tax Code is where the power in this into this country? You change it by re- In addition to that, the system is place exists. It is where we reward our pealing that Tax Code and by sub- simply unfair. We have thousands and friends, punish our enemies, play the stituting in its place a Tax Code that thousands of dollars tied up in a cash class warfare games. Give a tax credit gives American products not a dis- economy, not to speak of the money to this group and take it away from advantage but a real advantage in our that the drug dealers do not pay at all this group. Reward you today; take it marketplace and every export market- in any kinds of taxes. Most Americans away from you tomorrow, 4,000 changes place. say today that they feel they are pay- since 1986 alone. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1527 Congress is not going to give up this cred gift of freedom and liberty handed chance to speak for those patriots and power easily. What we are talking down to us? for every American patriot who be- about is giving power back to the Can we do less than urge Americans lieves that it is time for us to end this American people by abandoning this to join with us in a new revolutionary awful and oppressive tax system. system where Government in Washing- spirit to become new sons and daugh- f ton tells us how to live and where you ters of liberty in this great society and TAX RELIEF FOR ALL AMERICANS instead would make the decisions in to demand that this Government in your own life by deciding how much Washington stop its burdensome tax The SPEAKER pro tempore. Under taxes you pay dependent on how much practices that hurt so many American the Speaker’s announced policy of Jan- you spend as opposed to how much you workers and so many American fami- uary 7, 1997, the gentleman from Mis- save and invest. lies and abolish an income tax system souri [Mr. HULSHOF] is recognized for 60 And I think it is important, as we that is not right for this country, that minutes. think about that notion of freedom and is abundantly wrong for us, and to sub- Mr. HULSHOF. Mr. Speaker, last liberty, to again remember the con- stitute in its place a simple, fair, flat week the newly elected Members on tributions of those early patriots. Paul rate that Americans can live with and the other side of the aisle held a press Revere met the night before the Boston that we can grow with and that we can event, with the minority leader in tow, Tea Party at the Green Dragon with expand our personal freedoms and lib- to complain about the legislative pace his friends. He met knowing that what erties rather than seeing them con- of this Congress. As the Speaker knows, on this side of he was going to do the next day would stantly contracted by constant revi- the aisle, newly elected Members have, be considered treason by the British. sions and adaptations of that awful since back in February, taken to the I want to tell you what that meant code? floor of this House each week that we for these men. For treason a man could Tonight on this tax day, we call upon have been in session to talk about solu- be hanged and then revived, this is this body to begin the deliberation, to tions instead of pointing out problems. awful, have his guts drawn from him begin the discussion and to take on the We have been accentuating the posi- like a chicken’s and be cut into four task of preserving and enlarging those tive, success stories that are alive and quarters to be hung in the drying wind liberties and freedoms that those men thriving in each of our congressional and sun. This is awful but I quote it and women in Boston Harbor put on districts across this great Nation. only because that is the risk those pa- the line for the rest of us who have fol- We have spoken passionately about triots took in Boston Harbor, Decem- lowed them. ways to renew our communities, how ber 16, 1773. They risked their lives, Earlier tonight we heard a special government can be a partner rather their liberty, their personal fortunes to order about Jackie Robinson and the than as a parent. We have promoted ef- make a statement that this place, enormous contributions he made to forts to talk about our pro-family which eventually became America, was opening up this country. It is fitting agenda and ways to enact regulatory a very special place on earth where that we always look back at those who relief. people counted first, where they were sacrificed for the rest of us. For every Tonight, it is no secret, Mr. Speaker, the masters and government was the American tonight suffering under this that with millions of Americans we servant, where a taxing authority had income tax system that is oppressing train the white hot glare of the spot- to answer to them, where their family this Nation and oppressing every job light of this House onto the Tax Code. and their futures were more important and every worker in this country and I have spoken to several constituents than the wishes and whims of a govern- every family who is struggling to sur- by telephone who have been supportive ment authority somewhere far away. vive as jobs continue to leave our soci- and yet have been very angry as they So they entered those ships that next ety to go to foreign shores, for every have made their way to the post offices day and dumped that tea into the har- one of us, we look back upon those pa- across the Ninth Congressional District bor, covered with paint and war paint, triots with admiration. And we look of Missouri. And even as some may be dressed like Mohawk Indians. They did upon their efforts as in some way urg- tuned in with pencils worn down and it to protect themselves from discov- ing ourselves to begin to emulate erasers worn thin and piles of tax ery. We found out later who many of them, thinking of how we can perfect forms and instruction booklets scat- them were. those liberties and those freedoms. tered about, Mr. Speaker, our message Today, as we met in Boston Harbor, I suggest to you tonight the most im- tonight should be one of hope, because we did not have to put on war paint portant contribution we can make to today on the floor of this House, in this and dress up like Mohawk Indians. We the continued success of this country hall, we have a couple of victories to went as citizens of this country, some and to the enlargement of those free- pass along to the American people, two of us Members of this Congress. We doms and liberties would be to do in victories and a minor setback. And, went as citizens in front of the cam- legal terms what we did physically again, we hope to focus on the positive. eras, proud to show who we were in a today. We would dump that Tax Code One of those was the House Resolu- country where our freedoms and lib- into Boston Harbor. Yes, we had to re- tion that was actually introduced by erty have already been protected for us trieve it back because to leave it down another freshman GOP member, a by so many who have given their lives there would be awful pollution of that friend and colleague, the gentleman for us to have that chance today to harbor. We had to pick it back up. But from Pennsylvania [Mr. PITTS], ex- stand in Boston Harbor and to dem- we dumped it symbolically in that har- pressing a sense of Congress that onstrate against this Tax Code. bor today as we asked Congress to con- American families deserve some much And today I think it only fitting that sider to begin the debate on realisti- needed tax relief. we remember them, that we were able cally passing a bill to dump the U.S. I see that my friend from New Jersey to stand in that harbor and stand on income Tax Code and the IRS in favor is in the well of the House. I know the that boat and throw the U.S. income of something that is fairer and better gentleman spoke very eloquently ear- Tax Code into the Boston Harbor in our for our country. lier today about this resolution, and I protest today without having to be would yield to my colleague from New b covered with war paint because we 2130 Jersey. have inherited a country of freedoms We start this debate on tax day, but Mr. PAPPAS. Mr. Speaker, I thank and liberty. this is not the last my colleagues have the gentleman for yielding, and I thank If we are true stewards of that won- heard of us. Americans are going to him once again for providing the lead- derful inheritance, if we are true sons rally across this country, I predict. ership as president of the freshman Re- and daughters of freedom in this coun- There will be tea parties across Amer- publican class, for giving us each the try, do we dare less than enter this de- ica before we finish, and there will be opportunity to come to the floor and to bate with the same kind of fervor and citizens organized as sons and daugh- talk to each other, but also to the commitment that those early patriots ters of liberty in this modern age who American people that are watching, gave to the effort? Do we do less than will assist us, and eventually we will about what we hope to accomplish here preserve for every American that sa- have that vote. We will have that as Members of Congress. H1528 CONGRESSIONAL RECORD — HOUSE April 15, 1997 Today, I say to the gentleman, is an gentleman. I know, as a member of the that this is a red flag. She was told important day for all Americans, and it Committee on Ways and Means, the that taking a deduction for home office is an important day for a good friend of gentleman is intimately involved in re- expenses, a percentage of the home mine, Jim Flannery, an accountant, viewing reforms to lower taxes for that is dedicated to business as well as who is also celebrating his birthday American families. other expenses, that this is like waving today. It is particularly unique to have A couple of other things that I want- a red flag in front of an IRS agent. someone in that line of work who has ed to mention, and maybe we could So there were many, I believe, who today as his birthday. talk about those a bit, are the number testified that day who had qualified de- Our tax system, our Tax Code, is of tax reform measures that many of us ductions but chose not to take those complex, and I am told, although I have introduced in this Congress. I in- deductions due to fear of an ultimate have not counted, that there are 17,000 troduced two myself, the first one on audit. pages of IRS laws and regulations, ap- the first day I served, and we were The gentleman talked about a couple proximately 480 IRS forms, and even sworn into office on January 7, that of facts, that it seemed there were a lot the instructions to the 1040 EZ are 28 would reduce the capital gains tax by of papers and publications on this day, pages long. I know the gentleman from 50 percent and then seek to eliminate and he talked about all the pages and Missouri had earlier today held that it, phase it out 1 percent a year for the numbers of words. book, that was probably about that next 14 years, significantly lower the I took note of a survey that was re- thick, of the IRS regulations. corporate capital gains tax, and to cently conducted as to those who The IRS spent $4 billion on a com- raise the estate tax to a million dollars would prefer having root canal surgery puter system recently that was re- to help many family-owned businesses in the dentist office or an IRS audit. ferred to as the tax system’s mod- and farms to be passed from one gen- Forty-seven percent said they favored ernization computer program, $4 bil- eration to the next. root canal work, and 40 percent said an lion, and I am told that it does not More recently, just a few weeks ago, IRS audit. I guess the others were torn work. I introduced H.R. 955, which deals with between those two attractive alter- The average American family pays the home office deduction and would, I natives. I applaud the gentleman for promot- approximately 19 percent of their in- think, correct what has been an inap- ing a measure and introducing that come in Federal taxes, which is signifi- propriate interpretation by the IRS of cantly higher than the single-digit per- measure in this House. the home office deduction applicability Mr. PAPPAS. I appreciate that, and I centages just a few decades ago. to allow those that have legitimate The gentleman is absolutely correct, wish the gentleman would not mention home-based businesses, that may not the resolution that the House passed root canal, because I have to have some see their customers or their patients or today was, while it was a sense of the wisdom teeth removed and he has just their clients within their homes, to Congress, I think it was very, very im- reminded me about that. take that deduction. portant to demonstrate to the Amer- But getting back to the discussion we I am very pleased there have been a ican people that we are serious about are having on home-based businesses, I number of other Members that have providing for real significant across- have heard of a statistic that there are joined as cosponsors and would encour- the-board tax relief for the American over 14 million home-based businesses age those that are here that may not people. in our country today. Of those that are I am disappointed that the tax limi- have joined as cosponsors to consider starting, those people that are starting tation amendment, the constitutional doing so. businesses, new businesses, over 70 per- amendment, failed today, but I am Mr. HULSHOF. If the gentleman cent of them are women. hopeful that, again, we can continue to would allow me to reclaim my time on There are many families, whether speak about that and that kind of a that, during the Easter recess, when we they are single-parent families or two- measure. I believe, as most State legis- had the opportunity to go back to our parent families, that would find a home latures in our Nation have adopted districts, the gentleman from the Sec- office deduction being helpful to them that, that that would be something ond Congressional District of Missouri to assist them in raising their children, that at some point in the not too dis- [Mr. TALENT], who is the chairman of saving the expense, or not having to tant future this Congress could address the Committee on Small Business, held have the expense of day care, which and approve to send to the States for a field hearing and invited me to at- would again give them greater flexibil- their ratification. tend and to participate. I found it ex- ity. I think all of those things are criti- The tax resolution that we passed tremely interesting. cally important. was, as I recall, passed by a 412 to zero One of the things he talked about and I look forward to working with the vote, and the Taxpayer Protection Act that we had testimony about was just gentleman and the other members on was also passed today by the same what the gentleman just mentioned, his committee to move legislation such margin, which makes it a crime for and that is the home office deduction. as this, but I think it is absolutely IRS employees to snoop in people’s We had some women who testified critical for our country to have perma- files. that they were trying to juggle family nent, across-the-board tax relief, cap- A member of my staff said they saw responsibilities and, at the same time, ital gains tax reduction, not estate tax in a newspaper article that the actor wished to join the work force. Several but it is really a death tax. Tom Cruise had his file snooped in as of them had children that were in their There are so many family-owned well. And people, whether it is Mr. teenage years, and some who had actu- farms in my district and small busi- Cruise or anyone else, certainly de- ally gone on to college, and they had nesses where there are people, men and serve the privacy that that Taxpayer wanted to start their own businesses women, who have worked their lives to Protection Act would afford. and do it from their home. be able to pass that business or that Tax Freedom Day is one that we will Of course, with modern technology, farm on to their children and just face be celebrating, which, if I am not mis- when we have fax lines and we have the the likelihood that that will not take taken, is May 9 this year, 2 days later copying machines and being able to do place because of the tax bill that their in the year than it was last year. so many things over the Internet and kids would see. I view it as a family- Earlier, when we debated the resolu- on the computer systems, they wanted friendly measure. I view it as an envi- tion, I had a chart here that showed to establish their own businesses in ronmental measure. the calendar for 1997 and reflected Jan- their homes so that they could still There was a rather large farm in the uary 1 to May 9 circled in red, each of juggle their responsibilities with their central part of my district. Fortu- those days, and that is the amount of families, yet they were fearful to do so nately, we have a farm preservation time that the average American spends because, as one of them told us in this program in our State, which has joined working to go pay their taxes, whether field hearing back in St. Peters, MO, with the counties, and the development it is Federal taxes or taxes at lower she was fearful of an audit by the IRS; rights were purchased by the State and levels of government. that she had been told by a tax ac- the counties to pay to the heir of the People are fed up. And I certainly am countant, and probably some very con- farmer, and we were able to see that looking forward to working with the servative advice passed along to her, farm preserved. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1529 She did not want to see that farm their Member of Congress or their order to move forward and not decrease sold for development, nor would her Member of the Senate, and if they spending. parents have wanted to see that take agree with you and with me and with I believe that there should be, if place, but she faced the estate tax bill so many other people that are here to there is a fair approach to it. Some- which had to be paid, and she had two talk about this very important issue, I times when you have a budget problem, options: She had the option of selling it might encourage people to enact the sometimes you raise revenues, some- for development, which she did not kind of tax reform measures that we times you decrease spending. We do want to do; and, fortunately, we have have been speaking about. that in our family budgets all the time. the option of selling the development Mr. HULSHOF. I think, Mr. Speaker, But the history of Congress is that we rights, or her selling the development certainly tax burdens for working fam- have never reduced spending. We have rights, so that farm is now preserved. ilies have reached new heights in re- never slowed the growth of govern- But there are many other people who cent history. As my friend pointed out, ment. Instead, we have always decided are not in that position. I certainly the first 120 days of our calendar year that we need to raise the revenues. So want to work with the gentleman in we toil and labor simply to pay the tax Congress has historically taxed more doing what I can to see that people like bill. Certainly we need to provide some and spent more, and I believe this is a that and families like that are given relief, even in the immediate future. serious national problem. greater options and are not penalized But I know there was one measure that In Arkansas, the average Arkansan for working hard and trying to better we did bring up on the floor today that pays $7,000 per worker in taxes to the themselves, the opportunities for would have provided, I think, a more government. This might not be much themselves and their families. forward vision, Mr. Speaker, as far as in Washington, D.C., but in Arkansas it b 2145 future lawmakers who gather in this is a lot of money. It is one-third of the body, to make it more difficult for average paycheck. Mr. HULSHOF. I appreciate the gen- them to raise taxes on the American And so I think it is a serious prob- tleman’s efforts. I know that in a spe- people. I know that there are many cial order speech just prior to ours that lem, as the gentleman pointed out, States that have a tax limitation con- that the Tax Foundation has indicated our more seasoned colleagues took to stitutional amendment. the floor and began the debate, or fa- that we work until May 9 just to pay In fact, if I am not mistaken, the our tax bill, and it is the latest tax cilitated the debate about having State of Arkansas has such a tax limi- major reform, whether that means freedom day ever. If you compare this tation amendment. I know my friend in history, in 1902, tax freedom day going to a consumption-based tax or to from Arkansas also spoke very force- a flat income tax, and certainly that is came on January 31. This year it is not fully this afternoon during that debate. 31 days into the year, but it is 128 days a debate that we need to bring the I would be happy to yield to him for American people into with us, to hear into the year. It is because we have not what comments he would like to make. been able to control taxes. their ideas and concerns. But I also be- Mr. HUTCHINSON. I commend the lieve in the short term that we need to gentleman from Missouri for the excel- There have been a number of argu- provide some meaningful tax relief. lent leadership he has provided, not ments that have been proposed that You talk about the home office de- just the freshman Republican class but say we should not have this tax limita- duction. I think that is a very realistic also a broader range than that, of tion amendment. One of them is that, way, for those that are still perhaps Members of Congress on this tax issue well, our Founding Fathers never im- tuning in, Mr. Speaker, gnawing on and tax limitation. posed a supermajority requirement. their pencils, wondering about trying I did want to talk for a moment Well, that is true that they did not in to squeeze out those last few deduc- about the tax limitation amendment reference to the income taxes, because tions before the clock strikes midnight that received 233 votes in this body our Founding Fathers did not have the and they get their forms down to the today. I was disappointed that it did income tax. They simply restrained the post office. not receive the two-thirds vote nec- Federal Government and said it does Another I think that has been talked essary in order to refer this constitu- not have that power, and so it was a about in this House is a 100 percent de- tional amendment to the people of this power that did not even exist when our duction for those individuals who are great country. But it did receive 233 Founding Fathers wrote the Constitu- self-employed who purchase health in- votes of the Members of this body. I tion of the United States. It was in surance. As it is right now, those that think that it is important that we con- 1913, in which the people of America are employers, that have a company tinue to educate the American public, adopted the 16th Amendment that did that purchase health insurance for that we continue to talk about this tax give the power to Congress to impose their employees, and certainly we en- limitation amendment, because I be- the income tax. Yet we have seen it in- courage making health care accessible lieve that it is something that is nec- crease consistently and consistently, to those working men and women, but essary to ward off additional tax in- never going down for a long period of the fact is that those bosses get to de- creases, to make it more difficult to time. That is why this two-thirds vote duct as a business deduction the full pass tax increases in the United States. is necessary. cost of the premiums that they pay to The tax limitation amendment is very I think that that amendment was cover their employees. Such is not the simple, that it requires a two-thirds good. I am disappointed that it did not case for those that are self-employed, vote of the House and the Senate in get the two-thirds vote. I hope that and those that are truly seeking the order to raise taxes. Congress will readdress it in the future. American dream do not have the oppor- I want to say quite frankly that I was Let me just conclude on what I be- tunity to take a similar deduction for reluctant. I think too often we go to lieve is very, very important, and that their own health insurance, and I think constitutional amendments to solve is restoring faith to the American this is a way to craft some relief in the our problems. I think they should be worker, to the American people. We short term that can really make a reserved for serious national problems have had broken promise after broken meaningful difference in the lives of in which we have a framework dif- promise when it comes to taxes. With those Americans. ficulty with our founding document every broken promise, this Govern- Mr. PAPPAS. Just one concluding that we need to adjust. I believe that ment loses the faith of common Ameri- point because I know there are other such is the case with the tax limitation cans. Increasingly they see Washing- Members here who want to participate amendment. I believe we have a serious ton, DC, as a hollow city, built upon in this discussion. There hopefully are national problem today that should be hollow promises. Shall we in Congress many people around the country that addressed, and that is why this amend- lead for a change and accept respon- are watching this debate as we take ment is necessary. sibility for this loss of faith? Or will part in it. I would encourage them if Whenever Congress has had the we, like hollow men, offer excuses and they have not completed their tax re- choice of either raising revenues or then return to the campaign trail in turns, that when they do, if they may slowing the growth of spending, they another year to yet again promise take a moment and just write a note to have always had to raise revenues in great things? H1530 CONGRESSIONAL RECORD — HOUSE April 15, 1997 I know that because of the leadership legislation. We do this routinely. To- leave this hanging up here. I hope peo- of people like the gentleman from Mis- morrow I believe we have 4 or 5 votes ple do not confuse this with our Amer- souri and the other good Members of under the suspension calendar which ican flag, but let me tell the gentleman this body, that we will not do that. Let will require a two-thirds vote, and we why recalling the Sons of Liberty and us be committed to tax reduction, tax are going to do it. We are going to this banner are so important today and relief in the form of capital gains tax reach that level. why I hope that more and more Ameri- reduction, reducing the inheritance And so I am confident that this Con- cans begin to identify with the theory tax, $500 per child tax credit, and we gress, working together, if there was behind this, the theme behind the flag can start to restore the faith of the av- exigent circumstances that we had to of liberty, the spirit of the revolution erage American. That is what I believe increase the revenues of our country and what caused it to initiate. Because is important on this tax day. for a multitude of purposes, that we I have to tell the gentleman that we as I thank the gentleman for allowing could do it in a bipartisan fashion and Americans tolerate far more than what me this opportunity to address this get the job done. the colonists tolerated back 220 years issue. Mr. HULSHOF. In fact, if memory ago. The terms which launched the Mr. HULSHOF. I thank the gen- serves me, that earlier because of such Revolution against the British was the tleman. A couple of points that I would an emergency situation regarding the Stamp Act, the intolerable acts, these like to make, and even ask a question safety of airports and the fact there acts which, yes, resulted in excessive of the gentleman. Does the State of Ar- was a shortfall in the airport trust fund taxation and taxation without rep- kansas have such an amendment? or the safe harbor rule, that there was resentation, but nowhere near the ex- Mr. HUTCHINSON. We do. Whenever an extension of the airline fee that was tent of confiscation that our tax policy we imposed the income tax in Arkan- extended for another year. If memory represents today. sas, we required a supermajority in serves, that passed by a two-thirds ma- They were in larger colonial cities, order to increase it, a supermajority of jority vote. they sprang up in American commu- both houses of the general assembly, Mr. HUTCHINSON. That is exactly nities, they largely opposed the Stamp and so with that we have not turned to correct. That passed by two-thirds. It Act of 1765. They circulated patriotic increasing the income tax. It is very was done then, and it can be done. And petitions, they harassed British tax of- difficult to do. It is not impossible to so the argument that a two-thirds ma- ficials, they denounced British tyranny do it. Because it takes a bipartisan ef- jority requirement, a supermajority re- and organized mass protests against in- fort to do it. You have to have a broad quirement for raising taxes puts an im- creasing British control of the colo- base of support to do it. So it is not a possible burden on this Congress to nies. New York and Boston had the hurdle that cannot be risen over but it raise taxes is really fallacious. I do not largest and most active Sons of Liberty is something that slows down tax in- think it has merit. I think it is really chapters. They celebrated the opposi- creases. It has worked well in Arkan- a question of whether you believe that tion to the Stamp Act, August 14, 1773, sas. It has served our State well. the American people are overtaxed or they flew this flag over the tent where Mr. HULSHOF. I know that at var- not. I believe, as I know the gentleman they were meeting. It consisted of 13 ious town hall meetings back in Mis- does, that they are overtaxed. We need stripes, alternating red and white, the souri during the district work period to turn back the tide. flag’s popular design, of course, before that we had some discussions about the Mr. HULSHOF. I appreciate the gen- and after the Revolution. In fact, as upcoming vote that we had today on tleman’s comments. my colleagues can see, this largely re- the tax limitation amendment. There I see that our friend from Colorado, sembles with the addition of the stars were some questions about exigent cir- our patriot, has joined us. I would be to represent those colonies and eventu- cumstances or what about at times of happy to yield to my friend from Colo- ally States, represents our U.S. flag emergency or times of war, and that rado. today. safety feature was in this constitu- Mr. BOB SCHAFFER of Colorado. b tional amendment had it passed, for ex- Good evening. I thank the gentleman 2000 igent circumstances such as war or from Missouri for yielding. Again I keep this in my office, I keep military conflict or situations that I am curious if the gentleman recog- this plaque next to it, and I invite peo- would require an immediate access to nizes this. Before people get too con- ple to stop by and take a look at that substantial Federal revenues, that that fused, this is the red and white stripes and recall what it is that unites us could be done by a simple majority without the stars. I am curious wheth- today. You know the clock is running. vote. Yet again, I also note with inter- er the gentleman recognizes this. Many It is 10 o’clock here in Washington, DC, est, as the gentleman pointed out, that people do. I assure the gentleman that in the eastern time zone; 2 hours left on this vote, on the tax limitation around the founding days of our coun- for tax filers who have not made it to amendment, while it did pass by a sim- try, the British understood full well the post office yet to file their tax ple majority of 233, earlier in the day what this banner was. This is the flag forms. In the central time zone they when we had the sense of Congress ex- of liberty. This is the flag that the have got 3 hours. In the Rocky Moun- pressing a strong desire that American Sons of Liberty had flown and had or- tain time zone, where my constituents families deserved tax relief, I think ganized under. The Sons of Liberty, of live, they have 4 hours left. And so the that passed unanimously, with well course, being the ones who initiated clock is ticking, and it reminds me, over 400 votes. So if we deduct, then, the Boston Tea Party. I keep this flag since we talked about early Americans, the 400 votes of those Members who be- in my office as a constant reminder, as I want to spend a little bit of time on lieved that the American people de- well as several other things that I will a personal level speaking about some serve tax relief and yet only 233, there be happy to share with the gentleman of the early Americans of my family. are about 170 or so that were not will- and others today, reminders that I A couple of the other things I keep in ing to step up to the plate, if you will, keep in my office in the Fourth Con- my office are pictures of my grand- on this issue that would have had a gressional District office of Colorado, parents. Now this is a picture of my very forward vision for the future of across the street, to remind me and my Grandma Bednar. She is the little one our country. staff and all those who enter that office here. She is just a few months old. This Mr. HUTCHINSON. If the gentleman every day what our job here is and is a picture taken in her hut that she would yield for just a moment, I will what the challenges are for the country was born in up in Canada. She was elaborate on that. One, we can reach and for the people that we represent, Ukrainian and immigrated to the Unit- this consensus in Congress on areas not just in Colorado or Missouri but ed States several years later with this that there is great unanimity on, on throughout the country as well. man here who ended up being her hus- which there is a great national interest The Sons of Liberty have been men- band. on. In fact, tomorrow we have what we tioned several times today. In fact, Now when they came here to the call suspension votes in this Congress, some of our colleagues went up to Bos- United States the Federal Government in which you have to have a two-thirds ton and dumped the entire Tax Code taxed their family at 3 percent of total vote to suspend the rules and pass the into the Boston Harbor. I am going to income. Now 3 percent, when you think April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1531 about that, and this is in fact one of going to see tonight when they are of liberty who flew it proudly, risked the reasons they came here, for the lined up at the post office to make the their lives, as a matter of fact, and, search of liberty and the search of free- Government-imposed deadline to get again I submit, for far less than what dom and the opportunity for honest their taxes filed in time to avoid any we are willing to tolerate as Americans hard work and self-determination and penalties of their Government, 40 per- today. self-sufficiency, and they achieved cent of their family income. And let We need a rebellion of sorts. We need that, I have to say. I am very proud of me just put that into real numbers as to use the occasion of April 15, tax day, these beginnings, and they have an those are people perhaps keeping one to launch small rebellions in every awful lot to do with, I think, why I am eye on their Government tonight and community. Politically I am speaking. here and what I think about when I the other eye on their tax forms. Amer- I am not suggesting people get up in think about America. And I think icans this year will spend in excess of arms again or risk their lives directly. often about how hard they worked, 5.4 billion hours complying with their We do not need to do that today thanks what they created for our country. tax forms, 5.4 billion hours, and along to those grandparents that I mentioned These are the people who are much with that that 5.4 billion hours compels before and others like them, but to re- like your parents, grandparents or any- $200 billion every year in compliance solve tonight that they will no longer body else in America. They are the costs. vote for politicians who go to raise ones who built the roads, who built the Now these are not dollars that go to taxes in Washington, will no longer schools, who largely put the face on Uncle Sam, come here to Washington. vote for elected officials who will go to America as a place where we really do These are dollars that go to tax prepar- Washington or their State legislature look within for internal greatness. In ers and accountants and attorneys of or county commissioners or city coun- fact they are the reason the rest of the all sorts to help people understand just cils to increase spending and waste and world still looks to us today for leader- what these tax rules say. so on and to make it a personal point ship and guidance because of what we We are still smarting, frankly, from to get politically involved personally, represent. the last two tax increases of the Bush not just to vote, but to be angry cus- Now I can contrast what they came administration and in the Clinton ad- tomers of their Government, to be de- to America for, opportunity and lib- ministration as well in 1990 and 1993, manding customers, and, when all else erty, taxed at 3 percent of their income that latter one being the largest in the fails, to run for office themselves. I in order to pay and fund for the Fed- history of the United States. It raised hope that that is what we are able to eral Government which they deeply be- $285 billion, and we are paying for that inspire here today along with the very lieved in and were firmly committed not just in our taxes today, but we pay clear and decisive message that this to, and I contrast that with this crew for that in, as I mentioned, compliance tax system is undeniably broken and it here. These are three of my children; I costs. We are also paying that in lost needs to be fixed, and I think we are have one more at home. And my fam- jobs, forfeited income, lower living just the people to do it. ily, as most American families, as op- standards, anemic economic security, Mr. HULSHOF. I appreciate the gen- posed to the 3 percent that Americans good farmland that is taken out of pro- tleman’s historical and personal per- paid, in family, of their income that duction, on, and on, and on. spective and I think put it very well es- they paid in taxes back in the early We just cannot afford it anymore, pecially the contrast with your grand- forties, my family pays 40 percent of and for anybody who believes that we parents and then the future of this our total family budget to taxes, and I cannot talk about balancing the budget country as evidenced by your young say that as an average American. That in this Congress and at this point in children. is what most Americans who have 2 time without a discussion of—without The gentleman mentioned that the hours left in the eastern time zone pay also engaging in a discussion of tax clock is ticking, and I think symboli- their taxes, that is what they pay. cuts, they are just wrong. cally the clock is ticking. It is not that I also am reminded in that same In fact I would suggest that we, as Americans are not taxed enough, be- Ukrainian heritage; I keep in close Americans, look back to the Kennedy cause clearly they are overtaxed. The contact with lots of people who come administration, the Reagan adminis- fact is that Washington spends too from Ukraine and have immigrated to tration, two Presidents of different much and should spend less, which the United States; there is a man parties, different viewpoints politically those discussions we will get to have in named Ivan Stebelski who lives out in who proved that, when you cut taxes the weeks and months ahead, and I ap- Colorado, a very good friend of mine. and implement pro-growth economic preciate my friend from Colorado. And one day we were speaking about policies, that you in fact earn more And I also see that another son of lib- the revolution here in the United revenue, generate more revenue erty, if you will, from the State of States and contrasting that with what through economic productivity to the Texas [Mr. SESSIONS] joins us in this occurs throughout the rest of the Federal Government to allow us to put Chamber, and I would be happy to yield world, why he left Ukraine to come to toward the task of balancing the budg- to Mr. SESSIONS. the United States, and we talked about et. Mr. SESSIONS. Mr. Speaker, I thank tax policy obviously. He mentioned So we do need spending cuts cer- my freshman friend from the State of that, and I asked. I said, ‘‘Well, why tainly; there is no denying that, and we Missouri, Mr. HULSHOF. don’t the people in these oppressed need to focus on that. But at the same It is great to be here. I would like to countries just revolt?’’ This is prior to time, and I say simultaneously, we continue this discussion that we are the revolution in those countries. need to focus on tax relief as well in an having, and my colleague talked about ‘‘Why don’t they just revolt and stand effort not just to provide relief but also that we spend too much money. It is up against the tyranny of their govern- to stimulate economic growth. not just the tax system but that our ment and oppressive taxation and so Our deficit, $5.5 trillion, and I would Government in this Congress does not on?’’ submit a challenge to anybody here to- have the discipline in order to rein it- He said something that I remember night to show that our deficit was self in. especially this evening. He said that caused by not taxing enough. This pol- Our message is plain and simple the strategy of the Communists and icy we have of confiscatory tax policy today, April 15. Our tax system is too the Soviets was to keep their citizens sapping 40 percent of the average fami- complex, and taxes are too high, and, occupied by standing in line for grocer- ly’s income tonight, this very night, is as we speak tonight, there are those in ies, for food, to comply with the rules the final step in that effort, is just un- our country that are struggling tonight and regulations to pay taxes. He said conscionable. It needs a change. I know to try and finish out that IRS tax form people who are spending their time it is something that people in Colorado to comply with the law. standing in line have no time to make care very deeply about, and it is the And before I begin some formal re- revolution. primary mission they sent me to ac- marks that I have, I would like to talk And so I think of that vision, and I complish, was to remember the value about this complex Tax Code, and I think of that image and how similar that went behind this flag and what it think that Americans that are out that vision is to what most people are stands for, the flag of liberty, the sons there tonight struggling with filling H1532 CONGRESSIONAL RECORD — HOUSE April 15, 1997 out their taxes to comply should know sional Budget Office recently an- aware that we have a unique historic that we in Washington, at least fresh- nounced that the President’s budget opportunity to achieve full develop- man Republicans, are trying to do our will leave a $69 billion deficit in the ment in a free market of political free- best to hear them and do something year 2002. Mr. Speaker, the President’s dom. We value our achievement, but we about it. budget also utilizes gimmicks, ac- give equal attention to the challenges Those people who fill out their tax counting gimmicks, that I believe he that are ahead of us. forms tonight are not by themselves. should be ashamed of. Our President, President Clinton, I In 1993 the IRS gave out 8.5 million The bottom line is it is going to re- do not believe has that same belief in wrong answers to taxpayers who were quire serious and tough decisions on the American people. I do not believe seeking help with their taxes. In other spending priorities to balance the that he believes we have the same for- words, someone who was struggling budget. The responsible thing would be titude as the people of Chile. He does like tonight in those final few hours in to parcel out spending cuts over a pe- not believe that the American people order to comply, picking up the phone riod of time that it will take to balance have the patience to put our fiscal and calling the IRS, or perhaps earlier the budget. Instead, the President’s house in order, but I do. I think the today, the IRS gave out 8.5 million budget makes all the serious cuts in American people will rise to this occa- wrong answers to people who are try- services to the American people long sion as they always have, and I can tell ing to comply. after he is gone. my colleagues that as we stand on tax There are 17,000 pages of IRS laws That is right. The President is not day 1997, talking about freedom, talk- and regulations, there are 480 separate going to suffer with us, but he is going ing about opportunity, talking about IRS tax forms, it requires 136,000 em- to leave the pain for that person that is our families and talking about freedom ployees at the IRS and elsewhere in the in the White House while he is back in that can be enjoyed for generations, I Government to administer our tax Arkansas. I do not think that this is believe that we can look to a model, laws, and it costs $13.7 billion by the leadership. another model that is in this world, IRS and other governmental agencies This country has a great history of and that is the Chilean government. simply to enforce and oversee our tax standing up to whatever challenges Free people make great decisions. laws. That should tell us that there is God has sent our way. When we were Mr. Speaker, I want to fight for free- a problem. oppressed, we fought for independence dom, because I think it is the thing to As a member of the Committee on against overwhelming odds. When tyr- do. Mr. HULSHOF. Mr. Speaker, I appre- Government Reform and Oversight, we anny threatened our neighbors, we ciate the gentleman and his comments. have had testimony from the IRS stood up against it and conquered it I also note with interest, as he pointed where they talked about spending $4 twice. When poverty sapped our Na- billion, upwards to 6, but $4 billion is out, the Internal Revenue Service say- tion’s energy, we rose from it to retain ing the difficulties they have had re- what they have told us of spending to our place as the greatest Nation in the try and put together a computer sys- garding the expenditure of our tax world. Today we face similar chal- money for the tax system’s moderniza- tem, the big IRS computer system in lenges. tion effort, and the gentleman men- the sky. The bottom line is that they I would like to, if I could, take us tioned his committee. I too was serving could not do it. The reason why, the back to just a few weeks ago when his on the Subcommittee on Oversight of Tax Code is too complex. If you cannot excellency President Eduardo Frei of our committee, the Committee on put something and flow chart it and Chile spoke to this august body, and he Ways and Means, and we were examin- put it in a computer, then you cannot spoke to this joint session of Congress, ing on that occasion a couple of weeks make it work. and he gave us a good bit of advice ago the budget that the IRS was want- Mr. Speaker, what we are dealing about how Chile is handling their prob- ing us to consider. with is a tax code that is too complex lems and their future. He began by say- I noted with interest that they made and taxes are too high. ing: a request for an additional $1 billion I would now like to, if I could, enter I want to share with you why we over the next 2 fiscal years for addi- into some formal remarks that I have Chileans are ever more satisfied with tional capital expenditures. Yet, as we that I believe will once again bring the dividends of freedom, why we do talked about, the monies that we have back the point about what we are talk- not look back, why we wish we had spent, and certainly as the clock is ing about when we talk about taxes or been a part in the new history, the his- ticking and people are actually writing tax system, balancing the budget and tory of mine kind of is now beginning checks out tonight to put into an enve- certainly our appetite to spend money to be written. In other words, what he lope to send to the Internal Revenue in this country. said is we look ahead, we do not have Service, my question is perhaps we I believe that the budget, balancing to look behind, and I am going to tell should look to simplify the Tax Code the budget, is all about discipline, the you why. Chile was in a period of stag- rather than to invest additional of our discipline to do the right thing, the dis- nation and suffered many of the budg- tax monies into computer technology. cipline to tell the American people the etary perils that exist in the United Certainly computer technology is truth. With annual revenues of the States today. needed, but at the same time I think United States of over $1.45 trillion, the b 2215 we need to look at paring down this Government spends more than $1.6 tril- very complex and complicated and lion each year. That means that our But Chile got the discipline and rose massive Tax Code in an effort to pro- Government spent $4.3 billion every above that. Chile has sustained 14 vide some relief. I thank the gen- day, $178 million every hour, and $3 years of growth, averaging 7 percent tleman. million each minute. But more impor- annually. Real annual wages have risen Mr. SESSIONS. Mr. Speaker, the tantly, it means that the President and over 4 percent each year. Per capita in- gentleman has hit upon the key to the Congress cannot do what American come has doubled in Chile in the last entire debate and that is, our Tax Code families do every single day, and that decade. Chile’s savings rate is now is too complex. We cannot expect the is only spend what they have. close to 25 percent. IRS to make something pretty of it This year the President, as is re- All of this has been achieved not in when it is simply ugly. We must have quired by law, sent his budget to us spite of, but as a direct result of, and the determination, people who got here in Congress. When he delivered his continuing with, 5 consecutive years of elected to Congress and who gave our budget, he told the American people balanced budgets and fiscal surpluses. word to the American people that we and us here in Congress that his budget I listened to President Frei and I was were going to go to Washington and do would be balanced by the year 2002. But impressed by how he described the something that would be good for the that is not the truth. We have now character of the Chilean people and its taxpayer. learned that the President wants to leaders. He said, we have learned to be The Tax Code of the United States is send us and will send us a budget that patient. Chile does not begin anew with the problem. Let us tell the truth will not be in balance until well after each election, but rather, we build on about it, let us tell the American peo- the year 2002. In fact, the Congres- creativity and our work. We are well ple. They know they are dealing with it April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1533 here. Let us not be afraid to tell the taxes. There are particular taxes that are many areas where we could block truth. It is a problem and we can do are very unpopular in this country. grant this money to States and local better. A flat tax or a consumption tax As Congress has moved into its third governments and have more effective is far better, and that is the direction year under the direction of this leader- programs that better address the prob- that we are headed. I hope the Amer- ship, there seems to be some frustra- lems, because we believe there are ob- ican people hear us tonight. tion and some concerns that we have solete programs, because we believe Mr. HULSHOF. Mr. Speaker, I thank not addressed the issue yet. So tonight there are overlapping programs that the gentleman, and I see that my col- I would like to take this opportunity could be combined, because we believe league, the gentlewoman from Ken- to make some suggestions about how there is waste that is costing all of our tucky [Mrs. NORTHUP] is here. we might go about in a government of people money, let us go back to the While she is making her way to the bipartisan control, of bipartisan work, budget with the idea in our minds that microphone, there was, Mr. Speaker, as to resolve the impasse of tax cuts and we are going to eliminate every exces- you know, some additional good news government spending so that we can sive program, every program that can that we had today. Yes, the tax limita- truly address the questions and the be eliminated, not because we are look- tion amendment did not pass, but yes, concerns that so many of our constitu- ing towards tax cuts, but because the we did pass overwhelmingly the sense ents have. American people and we believe gov- of Congress to provide tax relief. First of all, public policy and dealing ernment is too big and that we need to In addition, Mr. Speaker, we passed with public policy is a very imperfect make it smaller, make it more stream- today the Taxpayer Browsing Protec- world. I think most of us, when we lined, make it more effective. Let us tion Act, which I think is certainly were elected, we came to Washington put those ideas before the American necessary in light of the conversations and if we had a perfect world we would people. Let us write them up in a budg- we have had about this investment in wrap up in one tight package a spend- et, let us send them to the Senate and the computer technology and equip- ing bill that would substantially re- to the President and let us see if he ment for the Internal Revenue Service. duce spending, and we would also re- will sign a bill that reflects what we We did pass today by a two-thirds ma- duce taxes for the American people. We are all talking about: smaller govern- jority vote a measure that would pro- would put it together in one package, ment. tect the individual taxpayers, that we would send it to the President, and Let us deal with programs that are would make it a crime in the Internal it would be passed. insolvent and make them solvent. Peo- Revenue Code for an IRS agent or em- I think that we could look into the ple believe Medicare should be solvent. ployee to inspect tax return informa- last 2 years of history and know that People believe Social Security should tion without authorization. that is a very difficult thing to be solvent. Let us deal with those prob- In addition, this bill mandates that achieve. In fact, bill after bill was ve- lems, separate from tax cuts, and make employees that are convicted of brows- toed. There never was any agreement, those programs solvent, all of those ing or, as some have said, snooping or and the issue is so big, when we pack- things, because they are the right intruding upon our confidential infor- age it all in an omnibus bill, that it is thing to do. The American people are mation that those employees be dis- very difficult to discuss with the Amer- clamoring for it. missed from office or discharged from ican people all of the ways that we are At the same time on a parallel track, employment. trying to comply with their wishes. let us start talking about each and The reason that we had this discus- So maybe we ought to go about, as every tax cut that have been men- sion last week, the General Accounting has been discussed recently, separating tioned to the American people, what Office gave us information that over the issues of the budget and the tax they are talking about and asking us 1,500 cases of unauthorized inspections cuts, not because we do not believe in for. of taxpayer records occurred between both of them and not because we be- Let us talk about the $500 tax credit 1994 and 1995. Even though the agency lieve that one should foreshadow the for families with children. That is the had implemented a zero tolerance pol- other, but because we believe both of most pinched group of people in our so- icy, it has largely been ineffective and, them on their own merit have the sup- ciety today. They have young children. therefore, this bill hopefully will solve port of the American people. They have not had a time in their life that problem. That was a silver lining First of all, let us look at the budget where they could save money and build to this very dark day of tax day 1997. and the budget that we need to pass. It a nest egg. They drive their car all the I see my colleague and friend from is our responsibility to pass a budget time to get their children to school, to Kentucky is here, and I would be happy and to decrease spending. Most people get to work, to get their children to to yield to her. that have run for Congress in the last the doctors, all of the things, the de- Mrs. NORTHUP. Mr. Speaker, I couple of years have said that the Gov- mands that are on young families. thank my honorable friend from Mis- ernment spends too much money. Then They are the people that go to work, souri, Mr. HULSHOF, for the oppor- let us scour every agency. they pay their taxes, and they wait to tunity to share with my freshman ma- Sitting on the Committee on Appro- buy tennis shoes for their children jority party colleagues that are talking priations, I can look at the agencies until they have the money in the bank. about taxes and the tax burden that so that come before me and see the ter- Those are the families that are most many of our constituents have told us rible waste, the millions, the billions of concerned about how they are going to that they have become very angry dollars that are wasted. Mr. Speaker, make it. They are the most frustrated about. sometimes we keep spending that about the fact that they get up every The truth is, if I had to describe the money because there is the idea that day and they go to work and they do one issue that is the most uniting issue somehow it is there. It reminds me as all of the responsible things, they pay in my district it has become taxes. I a mother of six children what it would for day care for their children, they really think that that is unique to this be like to give each one of my children pay their taxes, and they do not know year. I think that there have been a $10 bill to go into a candy store. whether there will be the money to questions about taxes, complaints There would be no limit. They would take their family on a camping trip about taxes as long as people have been not stop buying until every last cent this year. paying them. were spent. b Over the years there have been a va- That is what we are doing in govern- 2230 riety of concerns, but somewhere over ment today, but the money is just not Let us give them that $500 tax relief. the last 4 or 5 years the American pub- there. Somebody is sacrificing and pay- Then let us move to capital gains. Let lic began to believe that truly Congress ing and writing that check to the Fed- us send that to the President, in every was going to direct their attention to eral Government. form. We can start with the perfect the tax burden that we pay and that we So because we agree the Government form. If that is not what he wants, then were going to address that issue, re- is too big, because we believe there is let us move to a phase-in, let us move solve that issue, and find a way to too much bureaucracy that is a part of to the different kinds of capital gains lower their taxes, a variety of their our programs, because we believe there tax, and let us move to every form that H1534 CONGRESSIONAL RECORD — HOUSE April 15, 1997 hopefully the President will eventually Cosco is a Communist-owned, Com- Long Beach Naval Shipyard closed as sign. munist Chinese-owned company. Its a result, as I said, of the additional Mr. Speaker, I believe that if we put purpose is ship containers in and out of base closures and lots of jobs were lost. both of these issues separately before major ports all over the world. Re- We have a long way to protect those. I the American people that there will be cently, California has been devastated would also like to point out that dur- strong support for both of them, and by the President’s defense cuts. We ing the bid to reclaim Long Beach that we can describe them and commu- have lost over 1 million jobs. The addi- Naval Shipyard, the marines lost a bid nicate with the American people in a tional BRACC cuts in base closings and for the site to a China Cosco firm, and way that will build the consensus we so realignments have cost thousands to I quote from the Washington Times: badly need. millions of jobs in the State of Califor- Several officers in the Marine Corps have Mr. HULSHOF. Mr. Speaker, I thank nia. The people of Long Beach have raised questions about why the Clinton ad- my friend, the gentlewoman from Ken- lost thousands of those jobs, as we did ministration favored turning over a military tucky. I see our time is about to ex- at Kelly Air Force Base, as we did at El base in Long Beach, CA to the Chinese ocean pire. shipping company, Cosco, over the protest of Toro and Miramar, and the shifting of marine reserve battalion made homeless by Just to conclude very briefly, once different assets. again, those of us on the GOP side, the 1994 Northridge earthquake. Briefings on In that process, the people of Long the firm fail to convince many of its mem- newly elected Members, it is our goal Beach are looking for help. They have bers. The CIA, the Office of Naval Intel- to end this tax trap. It is our goal to mouths to feed just like anyone else. ligence, and the Coast Guard reinforced the help the American people, as we have They have children to send to college. view that Cosco’s strong link with the Chi- heard here tonight, earn more money, They have been devastated from these nese Government is a fatal flaw in its pro- to be able to keep more money so they cuts in national security in base re- posal to deliver the base to a company. can do more for their families and com- alignment and closures. Mr. Speaker, there is a current re- munities. What I plan to show tonight is a di- port, an updated report from the FBI, Earlier today a friend of mine on the rect link between the White House that states that Cosco is currently ac- other side of the aisle said, what about fundraising with China and assets that tively involved in placing intelligence the loss of revenue? Mr. Speaker, have gone in favor of Communist China officers, spies, in all of their ports of Washington’s loss is the American fam- that could pose as a national security call. That is a national security inter- ily’s gain. We stand committed and threat to the United States. I have in- est. ready to achieve that measure. telligence reports that state so. I have Cosco has enjoyed a 15-year access to f facts that also state so, and I would Long Beach Naval Shipyard. I have no problems with that. My problem comes COSCO: A COMMUNIST CHINESE- like to make that case this evening. with Cosco taking over complete con- OWNED COMPANY First, Mr. Speaker, let us look at Long Beach perspective. Again, people trol of the 145 acres in which they will The SPEAKER pro tempore (Mr. control access of every ship there. TAYLOR of North Carolina). Under the have been devastated. They are with- out jobs, and they need help. Every cargo container that comes off Speaker’s announced policy of January there, they will place it. They will have 7, 1997, the gentleman from California Mr. Speaker, I would say that all of my colleagues on both sides of the aisle control of who sees where that cargo [Mr. CUNNINGHAM] is recognized for 60 that are opposed to a Chinese Com- goes, where it is stored, what time of minutes. night it goes out, and who receives it. Mr. CUNNINGHAM. Mr. Speaker, I munist company taking over Long Beach Naval Air Station would be more Mr. Speaker, if we give China that do not plan to take the whole time. My opportunity, we are going to see an in- than willing to do everything we can to colleagues just spoke on the issue of crease of illegal aliens in which two help Long Beach recover those jobs, our generation and future generations Cosco ships forced, in the last Con- but not to a Communist-controlled na- on taxation, and as important as it is, gress, two ships owned by Cosco tion of the Chinese Republic. I feel it is very important that we shipped in illegal aliens, the Chinese, it bring up another subject. That is the Cosco’s ships fly flags of the People’s Republic of China. The port lease with was in the newspapers, along with the subjugation of the United States by a AK–47’s. At the same time, you remem- Cosco will provide Cosco with its own Communist-owned company, and con- ber it was a Cosco ship that plowed terminal. Major imports from China to trol of. into the port recently and nearly dev- Long Beach include toys, sporting What I would like to do tonight is astated the port in another U.S. facil- goods, footwear, apparel, electrical talk on the facts. Those facts are based ity. on when I served in the U.S. Navy, I parts, and machinery. We cannot discuss the actual details But Mr. Speaker, that is not all. Last served on 7th Fleet staff and was re- of that intelligence briefing as it would year, it was Cosco that delivered to the sponsible for all Southeast Asia coun- not be prudent and it was a classified tries, the defense of, not only in the State of California 2,000 AK–47’s. The briefing. But I want to mention that training exercises, but in the real company that builds the AK–47’s, the two of the representatives that rep- world threat. company that negotiates the trade of resent, and I understand their needs, For example, in Team Spirit in AK–47’s around the world, the company they represent the people that are Korea, we ran exercises involving our Cosco, all set up by the PRC, the Peo- looking for jobs, one of those individ- allies in the defense of Korea. That in- ple’s Republic of China, owns. They do uals stated that, and I quote, ‘‘All in- volved our reserves, that involved all of not report to department heads. Their telligence agencies that briefed us have our friendly assets that we had to bear CEO is Communist China, all owned assured us that Cosco represents no if North Korea came across a line. But and coordinated and controlled by threat to our national security.’’ at the same time, I had access to some Communist China. Yet, they delivered I want to tell you, Mr. Speaker, it is 13 linguists that monitored North Ko- over 2,000 AK–47’s into our country, an untruth, the fact that the same in- rea’s frequencies to give us an idea of with the intent of selling these arms to telligence briefers, the CIA, the Na- real threats. our inner cities to disrupt, to disrupt tional Security, the Coast Guard, have For example, my last year there, the our inner cities, and disrupt our politi- all stated that no such comment was two Mig 21’s came over across the line cal environment within the United ever made and ever intended. And as a and defected, and we were responsible States of America. matter of fact, they were very, very for that as well. While at Navy Fighter At the same time, the Clinton White upset at the dear colleague press re- Weapons School my job was to plan House accepted both Cosco and the lease. and coordinate not only offensive but gunrunners themselves in a White Why? Because they stated that this is defensive impacts and invasions of House coffee. I will later show the di- a policy issue for them to discuss, and Southeast Asian countries, so I come rect tie between the $366,000 that was they would never say that there is a tonight with experience and fact. I conducted to the DNC by the White national security interest, nor would would like to give those tonight to the House recipients and Chinese investors they say that there is not. Speaker to make his decision, as I hope to allow Cosco to gain this favored sta- So I would submit that is not the the American people do. tus. case and that after careful deliberation April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1535 of experience that there is a national According to the New York Times, On the campaign trail last year and security interest. Chinese officials had conveyed an omi- in a White House meeting in 1995, Let me go through some of the facts. nous message to Anthony Lake, Presi- President Clinton endorsed the pro- The national security of the United dent Clinton’s national security ad- posal to transfer land of the Long States is a responsibility of Congress viser, just weeks earlier: ‘‘The possibil- Beach Naval shipyard to COSCO, but it and the President, not the city of Long ity that American interference in was this March, 1995, the White House Beach. Beijing efforts to bring Taipei to heel radio address that had critics talking. Cosco has been attendant at Long could result in devastating attack on A COSCO advisor was among the Chi- Beach since 1991. The proposed lease Los Angeles.’’ nese businessmen invited to hear the agreement would turn over 145 acres of b 2245 President in the oval office just two port property and grant Cosco a much days after a California businessman, San Diego Union Tribune, March 31, more significant presence at that port, Johnny Chung, made a $50,000 donation 1996. which I have discussed. to the DNC and hand-delivered it to Cosco ship, Empress Phoenix, had at- Panama Canal, one of the most stra- tegic locations on the globe, has been Mrs. Clinton’s chief of staff Margaret tempted to smuggle in some 2,000 AK– Williams, CBS Evening News, March 11, 47’s fully automatic assault weapons, brought under COSCO’s web. Hutchin- son Port Holdings Incorporated, a Hong 1997. the same kinds of weapons, Mr. Speak- Shortly after the Long Beach Naval Kong operated, controlled, again by a er, that were used in the bank holdup shipyard land transfer was arranged, in Los Angeles that placed our law en- corporation, by Chinese Communists with direct ties to the Pacific and At- the Clinton administration helped ar- forcement agents in great jeopardy, the range, listen to this, Mr. Speaker, in same companies in port at which we re- lantic entrances to the Panama Canal and global, syndicated columnist, the President’s budget that he submit- cently found down off the border, M–2 ted, he gave free, no strings, gave to fully automatic weapons going to Mex- Georgie Anne Geyer, Universal Press Syndicate, March 26, 1997. Communist China $50 million to burn a ico to disrupt their elections which are coal burning plant, after these meet- going to take place over the next 90 At the same time, Mr. Speaker, we lost the Panama Canal, both ends of it, ings and after these DNC fund-raisers days and cause anti-American, from the Chinese. He can cut impact antireform legislators and affect the to Communist China owned companies. aid for education, but he can also give elections in Mexico City. That the Chi- We had an American company from $50 million to Communist China in the nese regime is not steadily a U.S. ally. Alabama that bid on those same sites. On January 24, 1996, the New York They won the contracts for both of name of trade and just give it. That is Times reported warnings by the former those sites. It was selected by Panama. not fair trade. He also gave a multimillion dollar Ambassador, Charles Freling, quoting a After selection, after announcement, loan to build 5 Communist Chinese Chinese official that China would in- the Chinese government went in with ships, COSCO ships, in a nonrecourse timidate Taiwan because U.S. leaders sacks of cash, much like they did with loan. What that means, Mr. Speaker, would care more about Los Angeles our government here in the United this is a loan of some $137 million, than they would Taiwan. States, and said, here is $25,000 for you, When the U.S. fleet started to go here is another $25,000 for you. And which may not be much to many Mem- through the straits, when communist guess what? That decision was reversed bers around this body, but you ask the China started shelling Taiwan and mis- and it went to Chinese Communists in- American people, $137 million of their sile attacks, the Chinese responded as stead of a U.S. based firm. Johnny taxpayers’ dollars back up a non- we started to enter our fleet that ei- Chung, a Chinese American business- recourse loan to Communist China, a ther we withdraw or the threat of nu- man from California, gave $366,000 to state-controlled company by Com- clear warfare on the city of Los Ange- the Democrats, the DNC, that was later munist China, and if they forfeit, who les. returned on suspicion it illegally came is left holding the bag? The United Now, let’s take a look at a Com- from foreign sources. Chung brought 6 States taxpayers. Our own ship build- munist-owned and controlled facility Chinese officials to the White House ers do not have access to this type of in Long Beach Naval Shipyard. Hutch- last year to watch President Clinton loan, Mr. Speaker. Incredible. But yet inson Group, also owned by Communist make his weekly radio address. One of the administration gives Communist China, recently purchased both ends of the 6 was the advisor from COSCO who China. the Panama Canal. This would give the was later given by the President access Over the past year a COSCO ship Chinese control of the Panama Canal, to Long Beach shipyard and also the plowed into New Orleans boardwalk in- it would give them control of Long actual gun runners that were there in juring 116 people and 6 COSCO ships Beach Naval Shipyard, and all of the the White House gave money to the were denied or detailed for violating access to and from and who sees what DNC. international safety regulations by our and where it goes. We feel that this The chairman of one of these two Coast Guard. This is since January, would be a major national security Chinese arms companies implicated in COSCO has violated by the Coast threat. the scheme to smuggle the 2,000 illegal Guard and had 6 violations since Janu- Mr. Speaker, let us take a look at Chinese-made weapons into Oakland ary and declared as an unsafe company, why economically China would want to aboard COSCO’s ship had coffee in the not only for plowing into the pier at do this. There is a study coming out by White House in an affair associated New Orleans and devastating that pier, the military. China’s number one im- with D.C. fundraising. Officials of the causing millions of dollars in injuries, port from the United States is wheat. weapons company were indicted for but for the other violations as well. Why, Mr. Speaker, does not China or shipping those arms. COSCO was fined for paying kick- other cargo-containing vessels go I would reiterate, Mr. Speaker, the backs to shippers instead of abiding by around the horn instead of using the company that shipped it, the company tariffs. This is, again, a Chinese-oper- Panama Canal? Primarily, it has af- that made the rifles, the company that ated company that was cited for giving fected seagoers for centuries, the were the arms dealers are all owned by kickbacks, payoffs for access. weather is bad and the threat of lost a CEO called Communist China. So We want to make it clear that we do ships. what if we turn over a port to COSCO, not mean any ill will toward the people If they own both ends of the Panama complete control of a Communist Chi- of Long Beach. As a matter of fact, we Canal, the major export of wheat out of nese operated state. We will have ille- will do everything we can to restore the United States to China is con- gal immigrants come into the United the jobs that they lost in the BRACC trolled through Long Beach Naval States. We will have an increase of closures and defense cuts. My col- Shipyard, they could control economi- drugs come into the United States. We leagues on both sides of the aisle that cally price fixing of all of our exports will have an increase of Chinese intel- are opposed to COSCO taking over this going out of our major port at Long ligence officers within the United port will do that and do so vigorously. Beach. And we feel that this is also an States on our borders, and it could COSCO’s track record, if they were a economy threat as well as a military prove a devastating national security company owned by some of our great- security threat. issue. est allies, Great Britain or others, I H1536 CONGRESSIONAL RECORD — HOUSE April 15, 1997 would not want them in my backyard sas in the 1980’s and there came to under the control of the CIA. And for the violations. But I would say this, know then Governor Bill Clinton. The again there was no security clearance if they want to stay as a tenant of Riady family has an unusually big whatsoever, although they were Long Beach and not have total control stake in maintaining most-favored-na- warned, the administration, that this and access of a former national secu- tion status for China since Lippo main- man had ties to Communist China. rity base, most of us would support tains enormous investments in Hong Senior White House aides learned that, Mr. Speaker. Kong, which is also the company that that Commerce Department officials Our problem, again, is giving them Mr. McDougal worked at. had concerns about John Huang in total access to a security base that The China connection. A Justice De- mid-1995, several months before the controls entry of illegals, of drugs, of partment investigation into improper White House helped place him in a sen- illegal arms and intelligence officers political fundraising activities has un- sitive fund-raising job in the DNC, the and could pose an economic and na- covered evidence that representatives Democratic National Committee. Peo- tional security threat. of the People’s Republic of China ple at the Commerce Department itself Mr. Speaker, President Clinton took sought direct contributions from for- described Mr. Huang as ‘‘bad news.’’ a personal role in promoting the inter- eign sources to the DNC, the Demo- According to several people familiar ests of COSCO. At the same time he cratic National Committee, before the with the matter, officials at the De- was cutting over 100 warships from the 1996 Presidential election. partment were worried that Mr. U.S. fleet, drawn up by the Bush ad- Mr. Speaker, our intelligence—the Huang’s government work posed a con- ministration, a 23 percent cut. The FBI and CIA—warned Janet Reno di- flict with his past employment with symbolism could not be anymore stark. rectly that China was attempting to Lippo and direct ties with Communist Richard Fisher, senior policy analyst influence the White House in policy de- China. with the Asian Studies Center of the cisions through campaign finance re- In his second week on the job at the Heritage Foundation, noted the real se- ports, much like they did in the port Commerce Department, Mr. Huang and curity concerns of Long Beach Steel in that we just talked about, by giving Webster Hubbell, who has recently a Washington Times column on April cash donations. been in the news and who was then em- 13. His main point is given below. The Justice Department task force ployed by Lippo, met for lunch in If it so desires, the Chinese leader- has discovered that in early 1995, Chi- Washington. At the time, according to the internal White House documents, ship can direct that COSCO assets be nese representatives developed a plan administration officials were monitor- put at the disposal of the People’s Lib- to spend nearly $2 million to buy influ- ing Mr. Hubbell’s cooperation with the eration Army, the PLA, or the main es- ence in Congress, this body, and the Whitewater independent counsel. That pionage organ, the Ministry of State Clinton administration, and investiga- evening, Mr. Huang joined Mr. Riady Security, the MSS. Do we really want tors are apparently trying to deter- and Mr. Clinton at the President’s a subsidiary of the People’s Republic of mine if any of that money was received China, a future superpower, to have birthday party. by John Huang, Charlie Trie, among It is no secret that these were some such large presence at a port on our others. So the FBI has given us warn- of the individuals that gave Mr. Hub- own coast, one of the only two West ing and the CIA that the Chinese are bell over $500,000, quote, as a friend. Coast ports with a dry dock large trying to influence our Government to John Huang received 37 CIA-docu- enough to repair our aircraft carriers? make decisions in their favor. And then mented intelligence briefings at the Mr. Speaker, I would say that we do the Clinton administration gives them Commerce Department, saw more than not. It is one of the reasons that the a $50 million coal burning plant, gives two dozen intelligence reports, and gentleman from California [Mr. DUN- them a $127 to $137 million loan to made over 70 phone calls to a Lippo- CAN HUNTER] and I offered a bill to stop build Chinese Communist ships. Then controlled bank in Los Angeles, his this takeover by a Communist power of they give them access to Long Beach former employer. U.S. territory. Naval Shipyard and complete control Mr. Huang’s message slips from the The Clinton administration, and I of it. We think that there is a direct Commerce Department also showed would like to go through this step by problem. calls from one Chinese Embassy offi- step, it is not enough that there is a John Huang, the Commerce Depart- cial in February 1995 and three calls national security interest, but the ment and Lippo. John Huang, with no from the Embassy’s commercial min- Clinton administration and the China background check, with no background ister in June and August of that year. connection is very complicated. Unless check, received top-level security Mr. Huang’s desk calendar entries you go step by step through it on how clearance for work at the Commerce had three meetings scheduled with Chi- the various pieces seem to fit together, Department while still working for nese Government officials. He attended it is difficult to draw any special direc- Lippo. This, despite Mr. Huang’s ties to policy breakfasts at the Chinese Em- tion. a Lippo bank that was ordered to cease bassy in October 1995 and visited the Webster Hubbell, John Huang, John- and desist money laundering and de- Indonesian Embassy on October 11, ny Chung, Charles Yah Lin Trie will be spite Lippo commercial ties to China 1995. discussed. The other incidences of and its intelligence services, was grant- In March, President Clinton, after Roger Tamraz, a felon, Susan ed access to top level intelligence serv- this meeting in Indonesia by Mr. McDougal, White House and DNC Im- ices within the White House. Huang, in March 1996, President Clin- migration and Naturalization Service, President Clinton attended a Sep- ton reversed a key administrative pol- Arapaho Indian Tribe, Oklahoma fund- tember 13, 1995, White House meeting icy on immigration following a $1.1 raising—all of these I will not discuss, with John Huang, James Riady of million Asian fund-raising dinner, the Mr. Speaker, because they do not have Lippo Bank, Bruce Lindsey, and C. Jo- most successful Asian-American politi- a direct tie, although indirectly, to the seph Giroir, the lawyer who hired then- cal fund-raiser in United States his- Chinese taking over a shipyard in Long Governor Clinton’s wife, Hillary Clin- tory. Held the previous month and or- Beach. I would like to go through and ton, to the Rose Law Firm and who is ganized by, who else? John Huang, a show how devastating the empirical in- now doing Riady business in China. former employee of Lippo. dictment of a conflict of interest be- President Clinton had previously op- b tween the White House and Long Beach 2300 posed the practice of allowing foreign- Naval Shipyard. It was at that meeting that the born siblings of naturalized U.S. citi- Let me first start with a family transfer of Huang from the Department zens to come to the United States, called the Riady family. The Riady of Commerce to the DNC was arranged. based on recommendations of a com- family is based in Indonesia, controls a A January 13, 1997, letter from the mission he appointed himself, and af- $12 billion financial empire operating Commerce Secretary Mickey Kantor firmed his desire to halt immigration under the umbrella of the Lippo Group. says that Mr. Huang got a weekly in- in an early 1996 letter to the Speaker of The family patriarch, one son, Stephen telligence briefing centered on the Peo- the House. Riady has served as Lippo chairman ple’s Republic of China and the mate- But in March 1996, President Clinton since 1991. James Riady lived in Arkan- rials related to those briefings were made a last-minute about-face, after April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1537 the Indonesian meeting with Mr. as a central figure of the Justice De- some of the money came from sequen- Huang and after the fund-raising of $1.1 partment and congressional investiga- tially numbered money orders, sup- million, and reversed his position and tions into Democratic fund-raising. Mr. posedly from different people in dif- put top priority recommendations Chung made a $50,000 donation to ferent cities, and apparently signed in made in a strongly worded John Huang Democrats the same week as he es- the same handwriting. And guess what? memorandum to Bill Clinton. And corted COSCO and also the gun runners It was done by Mr. Trie and Mr. Huang then, and now former, Senator Alan that were there at the White House, a again. Simpson said: I never in 18 years in $50,000 donation to the DNC from these According to a defense fund trustee, Congress, and I quote, saw an issue groups. Harold Ickes and Hillary Clinton had that shifted so fast and so hard. After that visit, President Clinton knowledge of the corrupt money and After receiving $1.1 million from In- told his aides that he was not sure we did nothing to stop the flow of it until donesia, Mr. Huang began aggressively want photos of him made with these newspaper columns and stories trig- arguing for U.S. trade policy toward people circulating around, end quote. gered Ickes’ tip-off to the DNC that Vietnam only 1 day after joining the Mr. Chung told Mrs. Williams earlier maybe Trie’s fundraising would be Commerce Department, and again with in the administration that he wanted linked to John Huang and James Riady no security clearances whatsoever or to give money to the Clintons person- and, yes, Mr. McDougal. background check, in July 1994, and ally, sought to exploit his contribu- A Justice Department FBI task force pushed the idea for the next 17 months tions to excess commercial gain. Asso- investigating allegations that China when Lippo Group sought to expand its ciates of Mr. Chung have said that he may have directed contributions to the investment empire into Vietnam itself. used his political access to submit DNC, charges that the Chinese Govern- He also attended interagency meetings business deals with investors from ment denies, is focusing on a series of of an Indonesian working group. The China, Taiwan and Hong Kong, bring- substantial wire transfers in 1995–96 next month, a United States trade mis- ing them to the White House events for from a bank operated by the Chinese sion to China resulted in a $1 billion fund-raisers. Government. The transfer, made from power plant that Lippo would finance National security warnings ignored: the New York office of the Bank of and benefit from. This is at the same Robert L. Suetting, a Chinese special- China, and usually made in increments time when the President agreed to give ist on National Security Council, of $50,000 and $100,000, came at a time Communist China $50 million for a Chi- warned that Mr. Chung was quote a when Mr. Trie was directing large do- nese coal-burning plant. hustler who appeared to be involved in nations, again to the DNC. In 1992, Candidate Clinton described setting up some kind of consulting op- The Democratic National Committee as unconscionable Indonesia’s treat- eration that will thrive by bringing has returned $187,000 that Mr. Trie per- ment of the East Timorese, 200,000 of Chinese entrepreneurs into the town sonally contributed and plans to return whom had perished since Indonesia had for exposure to high level United another $458,000 he helped raise from annexed East Timor 20 years ago. The States officials, that is, COSCO. others. The DNC said the donations ap- administration even supported the Three months later Mr. Suetting ex- pear to have foreign sources, which United Nations resolution criticizing pressed concern to Anthony Lake, who would make them illegal, and they re- Indonesia’s East Timor policy. Around was at the time President Clinton’s na- turned them. tional security adviser, after the White the same time, Mark Grobymer, an Ar- Some of the donors invited to the House learned that Mr. Chung was kansas lawyer who golfs with Mr. Clin- White House who participated in leaving for China and planned to get ton, joined Mr. Huang and Mr. Riady events with the President include: Mr. involved in the sensitive case of im- on a trip to East Timor. In April the Russ Barakat, a south Florida Demo- prisoned Chinese dissident Harry Wu. three men visited Mr. Clinton, and, crat party official who, 5 days after at- Mr. Chung visited the White House 51 guess what? The President reversed his tending a White House coffee session in times, records show. Twenty-one of position. Human rights activists April 1995, was indicted on criminal these times he was cleared for entry by claimed the administration’s concern charges and ultimately convicted of the office of the First Lady. Mr. Chung for Timor would be looked into. tax evasion. John Huang helped raise $425,000 made 17 visits to the White House after from an Indonesian couple whose pri- the April 1995 Committee on National A Florida newspaper was full of the mary bread earner was as a landscaper. Security memorandums identify him stories about Mr. Barakat’s problems When it was looked into, and that as a hustler and urged caution, and 8 with the law before the executive man- checks were made concurrently by the visits after the second warning memo- sion get-together. same source and it was brought up to randum was sent to the NSC, Director Mr. Wang Jun a Chinese businessman the press, the DNC returned the Anthony Lake, in July 1995. and the head of a military-owned arms money. In March 1997, in her first extensive company, while a part of the United John H. K. Lee, of Cheong Am Amer- public remarks about the DNC fund- States Government, was out inves- ica, United States subsidiary of a raising controversy, the First Lady tigating Wang Jun for allegedly smug- South Korea company, gave $250,000 in said she did not know why Johnny gling in arms to this country, that is, illegal contributions to the DNC fol- Chung had as much access and was 2,000 AK–47’s. He was with Mr. Clinton lowing a private meeting with Presi- spending so much time around her staff at a White House coffee courtesy of dent Clinton, and arranged by guess offices in the executive office building, Charlie Trie. who? John Huang. The money was re- but yet 21 of the 51 times it was the I will not speak about Eric Wynn be- turned following a press story. First Lady’s office that granted direct cause there is no tie. Mr. Speaker, what I am trying to access to Mr. Chung. Chong Lo, convicted of tax evasion in show is that there was a direct link be- In March 1996, Charlie Trie, a Little 1980 under the name of Esther Chu, who tween fund-raising of foreign powers Rock restaurateur and long-time friend was another visitor at the coffee of the and the takeover of a national security of President Clinton, presented Mi- White House Clintons, has since been base, Long Beach Naval Shipyard, by chael H. Cardozo, executive director of arrested again on 14 charges of falsify- the Communist Chinese. And that if we the Presidential Legal Expense Trust, ing mortgage applications, to which allow this to happen, that in the inter- a defense fund set up for President she had pleaded not guilty at the time. est of national security and economic Clinton and Mrs. Clinton to help pay In March 1997, Mr. Speaker, former security, that this administration has their legal bills, with two manila enve- White House Chief of Staff Leon Pa- sold itself out to fund-raising interests lopes containing checks and money or- netta acknowledged that the 1996 Clin- from overseas. ders for more than $450,000. ton reelection committee played a role On March 9, 1995, Margaret Williams, The fund returned about 70,000 imme- in the spending of some $35 million to Chief of Staff to Hillary Clinton, ac- diately but deposited $378,300. Two $40 million in soft money contributions cepted a $50,000 donation to the Demo- months later, after the fund ordered an on campaign commercials. Mr. Panet- cratic party from Johnny Chung, a investigation, the rest of the money is ta’s comments marked the first time California businessman who emerged returned. The investigation found that that a member of Mr. Clinton’s inner H1538 CONGRESSIONAL RECORD — HOUSE April 15, 1997 circle publicly stated that the Presi- have control and access to our port? I Mr. MCINTOSH, for 5 minutes each dent’s reelection campaign helped di- say no, Mr. Speaker. day, on today and April 16. rect the spending of these funds. I believe in China, and I believe in Mr. GUTKNECHT, for 5 minutes, on b 2315 trade, that it is hard to change a 10,000- April 16. year-old dog, and I think we need to Mr. COBLE, for 5 minutes, today. When asked if it was illegal for the get involved in investment with China. Mr. UPTON, for 5 minutes, on April 17. Clinton campaign to use soft money, But currently we have one of the larg- Mr. DUNCAN, for 5 minutes, today. Mr. Panetta replied it was not because est deficits, trading deficits with any Mr. JONES, for 5 minutes, on April 17. the money was spent as a part of over- other Nation with China. When we talk Mr. KINGSTON, for 5 minutes each all Democratic strategy in confronting about trade, we need to talk about fair day, on today and April 16. the Republican Congress. trade. We do not want access of Chi- f The key witnesses in the Democratic nese-controlled government, we do not EXTENSION OF REMARKS fundraising probe, Webster Hubbell, want them to slap us in the face with John Huang, and former White House the threat of Taiwan. I think under Re- By unanimous consent, permission to aide Mark Middleton have reportedly publican and Democratic administra- revise and extend remarks was granted invoked their fifth amendment rights tions, Mr. Speaker, that our weak link to: (The following Members (at the re- and refused to turn over subpoenaed is our State Department. I think our quest of Mr. PALLONE) and to include papers to the White House Government new successor in that department is extraneous matter:) Reform and Oversight Committee, al- probably the absolute best person we Mr. ROEMER. though in recent developments in the could have. She is tough, she is tough Mr. PASCRELL. news, Mr. Hubbell has been forthcom- on negotiations, and I think she will Mr. KUCINICH. ing. stand up for our workers’ rights over The Democratic National Committee Mr. OBEY. trade with China. But it has not hap- Mr. POMEROY. has said it will return $3 million in ille- pened in the past. And Madeleine gal, improper or suspicious donations Mrs. MEEK of Florida. Albright, I think if anybody can do it Mr. VISCLOSKY. including $1.6 million raised by Mr. in the administration, she can, and I Mr. SCHUMER. Huang, $645,000 raised by Charlie Trie support that, because she is tough and Mr. FRANK of Massachusetts. and $366,000 raised by Johnny Chung. that is what we need for a change in Mr. TOWNS. What I would say, Mr. Speaker, is we our trade negotiations. I supported Mr. MCGOVERN. need to take a look. Is there a conflict NAFTA and I supported GATT, but yet Mr. SABO. of interest between payments to the our administration now and under Re- Mrs. KENNELLY of Connecticut. DNC, to the White House, and to the publican administrations in many of Ms. NORTON. takeover of a Communist-controlled my colleagues’ opinion has not stood Ms. KILPATRICK. COSCO in Long Beach Naval Shipyard, up for our workers. Yes, we do need to Mr. MENENDEZ. a company again that shipped in AK– trade with China. We do need to trade (The following Members (at the re- 47’s, a company that is owned by Com- with other countries. But not when quest of Mr. DUNCAN) and to include ex- munist China. Another company that they keep slapping us in the face, and traneous matter:) actually made the arms, owned by currently and in the future pose a na- Mr. SOLOMON. Communist China. Another company tional security threat to this country. Mr. CAMP. that directs the sales of those and de- Mr. Speaker, all these facts are docu- Mr. GALLEGLY. livery of those arms owned by Com- mented in newspaper articles. Mr. GOODLING. Mr. DOOLITTLE. munist China. All three corporations, f their CEO is Communist China. And Mr. MCINTOSH. what future developments could we LEAVE OF ABSENCE Mr. ARCHER. have by Communist China completely By unanimous consent, leave of ab- Mr. DIAZ-BALART. controlling and having access to Long sence was granted to: Mr. GEKAS. UNNINGHAM Beach Naval Shipyard? Mr. SCHIFF (at the request of Mr. Mr. C . Mr. SPENCE in two instances. Again if they want to have a right to ARMEY), for today and the balance of port there like they have over the 15 the week, on account of medical rea- Mr. GILMAN in two instances. (The following Member (at the re- years, we have no problem with that. sons. quest of Mr. CUNNINGHAM) and to in- Our problem is it gives them complete Mr. COSTELLO (at the request of Mr. clude extraneous matter:) control of the 145 acres and access, and GEPHARDT), for today, on account of his Mr. DIXON. where things go. mother’s illness. f Mr. Speaker, we are opposed to the Mr. MANTON (at the request of Mr. takeover of Long Beach Shipyard by a GEPHARDT), for today, on account of of- ENROLLED BILL SIGNED Communist Chinese power. Recently ficial business in the district. Mr. THOMAS, from the Committee Communist China has increased its Ms. DANNER (at the request of Mr. on House Oversight, reported that that military spending by over 30 percent in GEPHARDT), until 5 p.m. today, on ac- committee had examined and found one year. They recently purchased 250 count of an illness. truly enrolled a bill of the House of the SU–27’s which outclass, nonparity, our f following title, which was thereupon F–15 Strike Eagles and our F–14–D’s. signed by the Speaker: Their AA–10, AA–11 and 12 missiles that SPECIAL ORDERS GRANTED they bought from Russia outclass our By unanimous consent, permission to H.R. 785. An act to designate the J. Phil Campbell, Senior, Natural Resource Con- AMRAAM to where we do not have par- address the House, following the legis- servation Center. ity, even with those fighters. lative program and any special orders f Russia has currently a follow-on to hereto entered, was granted to: that, the SU–35. Communist China and (The following Member (at the re- BILL PRESENTED TO THE COSCO have illegally shipped nuclear quest of Mr. PALLONE) to revise and ex- PRESIDENT weapons to all of our former enemies, tend her remarks and include extra- Mr. THOMAS, from the Committee including Iraq, Iran, and Syria. They neous material:) on House Oversight reported that that have been cited for shipping chemical Ms. MCKINNEY, for 5 minutes today. committee did on the following date and biological weapons to Iran, Iraq, (The following Members (at the re- present to the President, for his ap- and Syria. That, with the threat to the quest of Mr. DUNCAN) to revise and ex- proval, a bill of the House of the fol- United States that if we got involved tend their remarks and include extra- lowing title: with one of their holdings, Taiwan, neous material:) On April 15, 1997: that they would threaten us with nu- Mr. PAUL, for 5 minutes, today. H.R. 785. An act to designate the J. Phil clear retaliation on the city of Los An- Mrs. LINDA SMITH of Washington, for Campbell, Senior, Natural Resource Con- geles, is that a country that we want to 5 minutes, today. servation Center. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1539 ADJOURNMENT tions [OPP–300466; FRL–5597–9] (RIN: 2070– 2784. A letter from the Director, Office of AC78) received April 11, 1997, pursuant to 5 Regulatory Management and Information, Mr. CUNNINGHAM. Mr. Speaker, I U.S.C. 801(a)(1)(A); to the Committee on Ag- Environmental Protection Agency, transmit- move that the House do now adjourn. riculture. ting the Agency’s final rule—Limited Ap- The motion was agreed to; accord- 2775. A letter from the Director, Office of proval and Limited Disapproval of Imple- ingly (at 11 o’clock and 20 minutes Regulatory Management and Information, mentation Plans; Rhode Island [RI–6972a; p.m.), the House adjourned until to- Environmental Protection Agency, transmit- FRL–5711–1] received April 11, 1997, pursuant morrow, Wednesday, April 16, 1997, at ting the Agency’s final rule—Propiconazole; to 5 U.S.C. 801(a)(1)(A); to the Committee on 11 a.m. Pesticide Tolerances for Emergency Exemp- Commerce. tions [OPP–300474; FRL–5600–5] (RIN: 2070– 2785. A letter from the Director, Office of f AB78) received April 11, 1997, pursuant to 5 Regulatory Management and Information, EXECUTIVE COMMUNICATIONS, U.S.C. 801(a)(1)(A); to the Committee on Ag- Environmental Protection Agency, transmit- ETC. riculture. ting the Agency’s final rule—Approval and 2776. A letter from the Director, Office of Promulgation of Implementation Plans; In- Under clause 2 of rule XXIV, execu- Regulatory Management and Information, diana [IN45–3a; FRL–5698–5] received April 11, tive communications were taken from Environmental Protection Agency, transmit- 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the the Speaker’s table and referred as fol- ting the Agency’s final rule— Committee on Commerce. lows: Phosphinothricin Acetyltransferase and the 2786. A letter from the Director, Office of Genetic Material Necessary for Its Produc- Regulatory Management and Information, 2767. A letter from the Administrator, Ag- tion in All Plants; Exemption From the Re- Environmental Protection Agency, transmit- ricultural Marketing Service, transmitting quirement of a Tolerance On All Raw Agri- ting the Agency’s final rule—Approval and the Service’s final rule—Raisins Produced cultural Commodities [OPP–300463; FRL– Promulgation of Implementation Plans; From Grapes Grown In California; Final Free 5597–3] (RIN: 2070–AB78) received April 11, Minnesota [MN48–01–7268a; FRL–5699–1] re- and Reserve Percentages for the 1996–97 Crop 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the ceived April 11, 1997, pursuant to 5 U.S.C. Year for Natural (Sun-Dried) Seedless Rai- Committee on Agriculture. 801(a)(1)(A); to the Committee on Commerce. sins [FV97–989–1IFR] (7 CFR Part 989) re- 2777. A letter from the Director, Office of 2787. A letter from the Director, Office of ceived April 14, 1997, pursuant to 5 U.S.C. Regulatory Management and Information, Regulatory Management and Information, 801(a)(1)(A); to the Committee on Agri- Environmental Protection Agency, transmit- Environmental Protection Agency, transmit- culture. ting the Agency’s final rule—Bacillus ting the Agency’s final rule—Clean Air Act 2768. A letter from the Administrator, Ag- Thuringiensis Subspecies Kurstaki Cryla(c) Approval and Promulgation of PM10 Imple- ricultural Marketing Service, transmitting and the Genetic Material Necessary for Its mentation Plan for Denver, Colorado [CO– the Service’s final rule—Hazelnuts Grown in Production in All Plants; Exemption From 001–0016; FRL–5802–6] received April 11, 1997, Oregon and Washington; Establishment of the Requirement of a Tolerance on All Raw pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- Interim and Final Free and Restricted Per- Agricultural Commodities [OPP–300462; mittee on Commerce. centages for the 1996–97 Marketing Year FRL–5596–7] (RIN: 2070–AB78) received April 2788. A letter from the Director, Office of [Docket No. FV96–982–2 FIR] (7 CFR Part 982) 11, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to Regulatory Management and Information, received April 14, 1997, pursuant to 5 U.S.C. the Committee on Agriculture. Environmental Protection Agency, transmit- 2778. A letter from the Director, Office of 801(a)(1)(A); to the Committee on Agri- ting the Agency’s final rule—Approval and Regulatory Management and Information, culture. Promulgation of Air Quality Implementa- Environmental Protection Agency, transmit- 2769. A letter from the Administrator, Ag- tion Plans; Pennsylvania; Approval of ting the Agency’s final rule—Clopyralid; Pes- ricultural Marketing Service, transmitting Source-Specific VOC and NO RACT Deter- ticide Tolerance [OPP–300473; FRL–5600–2] X the Service’s final rule—Irish Potatoes minations [PA–4055a; FRL–5809–9] received (RIN: 2070–AB78) received April 11, 1997, pur- Grown in Washington; Amended Assessment April 14, 1997, pursuant to 5 U.S.C. suant to 5 U.S.C. 801(a)(1)(A); to the Commit- Rate [Docket No. FV97–946–1 IFR] (7 CFR 801(a)(1)(A); to the Committee on Commerce. tee on Agriculture. Part 946) received April 14, 1997, pursuant to 2789. A letter from the Director, Office of 2779. A letter from the Acting President 5 U.S.C. 801(a)(1)(A); to the Committee on Regulatory Management and Information, Agriculture. and Chairman, Export-Import Bank of the United States, transmitting a report involv- Environmental Protection Agency, transmit- 2770. A letter from the Administrator, Ag- ting the Agency’s final rule—Approval and ricultural Marketing Service, transmitting ing United States exports to Mexico, pursu- ant to 12 U.S.C. 635(b)(3)(i); to the Committee Promulgation of State Implementation the Service’s final rule—Sweet Onions Grown Plans; California State Implementation Plan in the Walla Walla Valley of Southeast on Banking and Financial Services. 2780. A letter from the Deputy Executive Revision; Bay Area Air Quality Management Washington and Northeast Oregon; Estab- Director and Chief Operating Officer, Pen- District [CA 179–0029a; FRL–5697–1] received lishment of Container Marking Require- sion Benefit Guaranty Corporation, trans- April 14, 1997, pursuant to 5 U.S.C. ments and Special Purpose Shipment Ex- mitting the Corporation’s final rule—Alloca- 801(a)(1)(A); to the Committee on Commerce. emptions [FV96–956–3 FR] (7 CFR Part 956) tion of Assets in Single-Employer Plans; In- 2790. A letter from the Director, Office of received April 14, 1997, pursuant to 5 U.S.C. terest Assumptions for Valuing Benefits (29 Regulatory Management and Information, 801(a)(1)(A); to the Committee on Agri- CFR Part 4044) received April 9, 1997, pursu- Environmental Protection Agency, transmit- culture. ant to 5 U.S.C. 801(a)(1)(A); to the Committee ting the Agency’s final rule—Approval and 2771. A letter from the Administrator, Ag- on Education and the Workforce. Promulgation of Air Quality Implementa- ricultural Marketing Service, transmitting 2781. A letter from the Director, Office of tion Plans; Pennsylvania; Approval of the Service’s final rule—Fresh Cut Flowers Regulatory Management and Information, Source-Specific VOC and NOX RACT Deter- and Fresh Cut Greens Promotion and Infor- Environmental Protection Agency, transmit- minations [PA–4056a; FRL–5809–7] received mation Order; Referendum Procedures [FV– ting the Agency’s final rule—Clean Air Pro- April 14, 1997, pursuant to 5 U.S.C. 97–701FR] (7 CFR Part 1208) received April 14, mulgation of Extension of Attainment Date 801(a)(1)(A); to the Committee on Commerce. 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the for the Portland, Maine Moderate Ozone 2791. A letter from the Deputy Director, Committee on Agriculture. Nonattainment Area [FRL–5809–5] received Defense Security Assistance Agency, trans- 2772. A letter from the Director, Office of April 11, 1997, pursuant to 5 U.S.C. mitting a copy of Transmittal No. 04–97 for Regulatory Management and Information, 801(a)(1)(A); to the Committee on Commerce. United States involvement in the United Environmental Protection Agency, transmit- 2782. A letter from the Director, Office of Kingdom’s Fast Jet Missile Approach and ting the Agency’s final rule—Sethoxydim; Regulatory Management and Information, Warning System Technology Assessment Extension of Time-Limited Pesticide Toler- Environmental Protection Agency, transmit- Program [FJMAWS TAP], pursuant to 22 ance [OPP–300467; FRL–5598–7] (RIN: 2070– ting the Agency’s final rule—Ambient Air U.S.C. 2767(f); to the Committee on Inter- AB78) received April 11, 1997, pursuant to 5 Quality Surveillance; Connecticut/Maine/ national Relations. U.S.C. 801(a)(1)(A); to the Committee on Ag- Massachusetts/New Hampshire/Rhode Island/ 2792. A letter from the Chair, Christopher riculture. Vermont; Modification of the Ozone Mon- Columbus Fellowship Foundation, transmit- 2773. A letter from the Director, Office of itoring Season [001–7201a; FRL–5808–7] re- ting the fiscal year 1996 annual report under Regulatory Management and Information, ceived April 11, 1997, pursuant to 5 U.S.C. the Federal Managers’ Financial Integrity Environmental Protection Agency, transmit- 801(a)(1)(A); to the Committee on Commerce. Act [FMFIA] of 1982, pursuant to 31 U.S.C. ting the Agency’s final rule—Norflurazon; 2783. A letter from the Director, Office of 3512(c)(3); to the Committee on Government Pesticide Tolerance for Emergency Exemp- Regulatory Management and Information, Reform and Oversight. tions [OPP–300470; FRL–5598–2] received April Environmental Protection Agency, transmit- 2793. A letter from the Director, Office of 11, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to ting the Agency’s final rule—Approval and Personnel Management, transmitting the Of- the Committee on Agriculture. Promulgation of Air Quality Implementa- fice’s final rule—Excepted Service—Schedule 2774. A letter from the Director, Office of tion Plans; Commonwealth of Pennsylvania; A Authority for Temporary Organizations [5 Regulatory Management and Information, Approval of Source-Specific RACT [PA069– CFR Part 213] (RIN: 3206–AH67) received Environmental Protection Agency, transmit- 4053, PA096–4053; FRL–5808–9] received April April 15, 1997, pursuant to 5 U.S.C. ting the Agency’s final rule—Myclobutanil; 11, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to 801(a)(1)(A); to the Committee on Govern- Pesticide Tolerances for Emergency Exemp- the Committee on Commerce. ment Reform and Oversight. H1540 CONGRESSIONAL RECORD — HOUSE April 15, 1997 2794. A letter from the Secretary of Hous- the Department’s final rule—Standard In- 2814. A letter from the General Counsel, ing and Urban Development, transmitting strument Approach Procedures; Miscellane- Department of Transportation, transmitting the Federal Housing Administration’s [FHA] ous Amendments (Federal Aviation Adminis- the Department’s final rule—Establishment annual management report for the fiscal tration) [Docket No. 28882; Amdt. No. 1792] of Temporary Restricted Area R–3203D; Or- year 1995, pursuant to 31 U.S.C. 9106; to the (RIN: 2120–AA65) received April 14, 1997, pur- chard, ID (Federal Aviation Administration) Committee on Government Reform and suant to 5 U.S.C. 801(a)(1)(A); to the Commit- [Airspace Docket No. 96–ANM–21] (RIN: 2120– Oversight. tee on Transportation and Infrastructure. AA66) received April 14, 1997, pursuant to 5 2795. A letter from the Chief Justice, the 2805. A letter from the General Counsel, U.S.C. 801(a)(1)(A); to the Committee on Supreme Court of the United States, trans- Department of Transportation, transmitting Transportation and Infrastructure. mitting amendments to the Federal Rules of the Department’s final rule—Standard In- 2815. A letter from the General Counsel, Civil Procedure that have been adopted by strument Approach Procedures; Miscellane- Department of Transportation, transmitting the Court, pursuant to 28 U.S.C. 2074 (H. Doc. ous Amendments (Federal Aviation Adminis- the Department’s final rule—Establishment No. 105–67); to the Committee on the Judici- tration) [Docket No. 28883; Amdt. No. 1793] of Class E Airspace; Craig, CO (Federal Avia- ary and ordered to be printed. (RIN: 2120–AA65) received April 14, 1997, pur- tion Administration) [Airspace Docket No. 2796. A letter from the Chief Justice, the suant to 5 U.S.C. 801(a)(1)(A); to the Commit- 96–ANM–030] received April 14, 1997, pursuant Supreme Court of the United States, trans- tee on Transportation and Infrastructure. to 5 U.S.C. 801(a)(1)(A); to the Committee on mitting amendments to the Federal Rules of 2806. A letter from the General Counsel, Transportation and Infrastructure. Criminal Procedure that have been adopted Department of Transportation, transmitting 2816. A letter from the General Counsel, by the Court, pursuant to 28 U.S.C. 2074 (H. the Department’s final rule—Standard In- Department of Transportation, transmitting Doc. No. 105–68); to the Committee on the Ju- strument Approach Procedures; Miscellane- the Department’s final rule—Amendment of diciary and ordered to be printed. ous Amendments (Federal Aviation Adminis- Class E Airspace; Battle Mountain, NV (Fed- 2797. A letter from the Chief Justice, the tration) [Docket No. 28863; Amdt. No. 1789] eral Aviation Administration) [Airspace Supreme Court of the United States, trans- (RIN: 2120–AA65) received April 14, 1997, pur- Docket No. 96–AWP–32] (RIN: 2120–AA66) re- mitting amendments to the Federal Rules of suant to 5 U.S.C. 801(a)(1)(A); to the Commit- ceived April 14, 1997, pursuant to 5 U.S.C. Bankruptcy Procedure that have been adopt- tee on Transportation and Infrastructure. 801(a)(1)(A); to the Committee on Transpor- ed by the Court, pursuant to 28 U.S.C. 2075 2807. A letter from the General Counsel, tation and Infrastructure. (H. Doc. No. 105–70); to the Committee on the Department of Transportation, transmitting 2817. A letter from the General Counsel, Judiciary and ordered to be printed. the Department’s final rule—Standard In- Department of Transportation, transmitting 2798. A letter from the Chief Justice, the strument Approach Procedures; Miscellane- the Department’s final rule—Amendment of Supreme Court of the United States, trans- ous Amendments (Federal Aviation Adminis- Class E2 Airspace; Brunswick Malcolm- mitting amendments to the Federal Rules of tration) [Docket No. 28865; Amdt. No. 1791] Mckinnon Airport, GA (Federal Aviation Ad- Evidence that have been adopted by the (RIN: 2120–AA65) received April 14, 1997, pur- ministration) [Airspace Docket No. 97–ASO– Court, pursuant to 28 U.S.C. 2074 (H. Doc. No. suant to 5 U.S.C. 801(a)(1)(A); to the Commit- 6] (RIN: 2120–AA66) received April 14, 1997, 105–69); to the Committee on the Judiciary tee on Transportation and Infrastructure. pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- and ordered to be printed. 2808. A letter from the General Counsel, 2799. A letter from the General Counsel, mittee on Transportation and Infrastruc- Department of Transportation, transmitting Department of Transportation, transmitting ture. the Department’s final rule—Standard In- 2818. A letter from the General Counsel, the Department’s final rule—Airworthiness Directives; McDonnell Douglas Model MD–11 strument Approach Procedures; Miscellane- Department of Transportation, transmitting and DC–10 Series Airplanes, and KC–10A ous Amendments (Federal Aviation Adminis- the Department’s final rule—Modification of (Military) Airplanes (Federal Aviation Ad- tration) [Docket No. 28864; Amdt. No. 1790] Class E Airspace; St. Cloud, MN, St. Cloud ministration) [Docket No. 95–NM–234–AD; (RIN: 2120–AA65) received April 14, 1997, pur- Regional Airport (Federal Aviation Adminis- Amdt. 39–9986; AD 97–07–12] (RIN: 2120–AA64) suant to 5 U.S.C. 801(a)(1)(A); to the Commit- tration) [Airspace Docket No. 96–AGL–33] received April 14, 1997, pursuant to 5 U.S.C. tee on Transportation and Infrastructure. (RIN: 2120–AA66) received April 14, 1997, pur- 2809. A letter from the General Counsel, 801(a)(1)(A); to the Committee on Transpor- suant to 5 U.S.C. 801(a)(1)(A); to the Commit- tation and Infrastructure. Department of Transportation, transmitting tee on Transportation and Infrastructure. 2800. A letter from the General Counsel, the Department’s final rule—Reduced Verti- 2819. A letter from the General Counsel, Department of Transportation, transmitting cal Separation Minimum Operations (Fed- Department of Transportation, transmitting the Department’s final rule—Airworthiness eral Aviation Administration) [Docket No. the Department’s final rule—Establishment Directives; Rolls-Royce plc RB.211–524 Series 28870; Amdt. No. 91–254] (RIN: 2120–AE51) re- of Class E Airspace; Hillsboro, ND, Hillsboro Turbofan Engines (Federal Aviation Admin- ceived April 14, 1997, pursuant to 5 U.S.C. Municipal Airport (Federal Aviation Admin- istration) [Docket No. 95–ANE–56; Amdt. 39– 801(a)(1)(A); to the Committee on Transpor- istration) [Airspace Docket No. 96–AGL–32] 9978; AD 97–07–04] (RIN: 2120–AA64) received tation and Infrastructure. (RIN: 2120–AA66) received April 14, 1997, pur- April 14, 1997, pursuant to 5 U.S.C. 2810. A letter from the General Counsel, suant to 5 U.S.C. 801(a)(1)(A); to the Commit- 801(a)(1)(A); to the Committee on Transpor- Department of Transportation, transmitting tee on Transportation and Infrastructure. tation and Infrastructure. the Department’s final rule—Establishment 2820. A letter from the General Counsel, 2801. A letter from the General Counsel, of Class E Airspace; Truckee, CA (Federal Department of Transportation, transmitting Department of Transportation, transmitting Aviation Administration) [Airspace Docket the Department’s final rule—Establishment the Department’s final rule—Airworthiness No. 96–AWP–21] (RIN: 2120–AA66) received of Class E Airspace; St. Cloud, MN, St. Cloud Directives; Textron Lycoming and Superior April 14, 1997, pursuant to 5 U.S.C. Regional Airport (Federal Aviation Adminis- Air Parts, Inc. (Federal Aviation Adminis- 801(a)(1)(A); to the Committee on Transpor- tration) [Airspace Docket No. 96–AGL–34] tration) [Docket No. 96–ANE–43; Amdt. 39– tation and Infrastructure. (RIN: 2120–AA66) received April 14, 1997, pur- 9977; AD 97–01–04] (RIN: 2120–AA64) received 2811. A letter from the General Counsel, suant to 5 U.S.C. 801(a)(1)(A); to the Commit- April 14, 1997, pursuant to 5 U.S.C. Department of Transportation, transmitting tee on Transportation and Infrastructure. 801(a)(1)(A); to the Committee on Transpor- the Department’s final rule—Revision of 2821. A letter from the General Counsel, tation and Infrastructure. Class E Airspace; San Francisco, CA (Federal Department of Transportation, transmitting 2802. A letter from the General Counsel, Aviation Administration) [Airspace Docket the Department’s final rule—Modification of Department of Transportation, transmitting No. 97–AWP–5] (RIN: 2120–AA66) received Class E Airspace; Mackinac Island, MI, the Department’s final rule—Airworthiness April 14, 1997, pursuant to 5 U.S.C. Mackinac Island Airport (Federal Aviation Directives; Airbus Model A320 Series Air- 801(a)(1)(A); to the Committee on Transpor- Administration) [Airspace Docket No. 96– planes (Federal Aviation Administration) tation and Infrastructure. AGL–35] (RIN: 2120–AA66) received April 14, [Docket No. 96–NM–105–AD; Amdt. 39–9988; 2812. A letter from the General Counsel, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the AD 97–07–14] (RIN: 2120–AA64) received April Department of Transportation, transmitting Committee on Transportation and Infra- 14, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the Department’s final rule—Amendment of structure. the Committee on Transportation and Infra- Class E Airspace; Willcox, AZ (Federal Avia- 2822. A letter from the General Counsel, structure. tion Administration) [Airspace Docket No. Department of Transportation, transmitting 2803. A letter from the General Counsel, 97–AWP–8] (RIN: 2120–AA66) received April the Department’s final rule—Modification of Department of Transportation, transmitting 14, 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to Class E Airspace; Mineral Point, WI, Iowa the Department’s final rule—Airworthiness the Committee on Transportation and Infra- County Airport (Federal Aviation Adminis- Directives; Construcciones Aeronauticas, structure. tration) [Airspace Docket No. 96–AGL–38] S.A. (CASA) Model CN–235 Series Airplanes 2813. A letter from the General Counsel, (RIN: 2120–AA66) received April 14, 1997, pur- (Federal Aviation Administration) [Docket Department of Transportation, transmitting suant to 5 U.S.C. 801(a)(1)(A); to the Commit- No. 96–NM–127–AD; Amdt. 39–9987; AD 97–07– the Department’s final rule—Amendment to tee on Transportation and Infrastructure. 13] (RIN: 2120–AA64) received April 14, 1997, Class E Airspace; Hudson, NY; correction 2823. A letter from the General Counsel, pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- (Federal Aviation Administration) [Airspace Department of Transportation, transmitting mittee on Transportation and Infrastruc- Docket No. 96–AEA–12] (RIN: 2120–AA66) re- the Department’s final rule—Modification of ture. ceived April 14, 1997, pursuant to 5 U.S.C. Class E Airspace; Detroit, MI, Romeo Air- 2804. A letter from the General Counsel, 801(a)(1)(A); to the Committee on Transpor- port (Federal Aviation Administration) [Air- Department of Transportation, transmitting tation and Infrastructure. space Docket No. 97–AGL–5] (RIN: 2120–AA66) April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1541 received April 14, 1997, pursuant to 5 U.S.C. By Mr. MCHALE (for himself, Mr. HAN- made accessible to the public; to the Com- 801(a)(1)(A); to the Committee on Transpor- SEN, Mr. MEEHAN, Mr. OBERSTAR, Mr. mittee on Ways and Means. tation and Infrastructure. YATES, Mr. HINCHEY, Ms. RIVERS, Mr. By Mrs. MALONEY of New York (for 2824. A letter from the General Counsel, ACKERMAN, Mr. MILLER of California, herself, Mr. CONYERS, Mrs. MINK of Department of Transportation, transmitting Mr. LIPINSKI, Mr. GEJDENSON, Ms. Hawaii, and Ms. CHRISTIAN-GREEN): the Department’s final rule—Modification of FURSE, Mr. DELLUMS, Mr. EVANS, Ms. H.R. 1332 A bill to protect the civil rights Class E Airspace; Phillips, WI, Price County NORTON, and Ms. DELAURO): of victims of gender-motivated violence and Airport (Federal Aviation Administration) H.R. 1323. A bill to amend the Internal Rev- to promote public safety, health, and regu- [Airspace Docket No. 97–AGL–4] (RIN: 2120– enue Code of 1986 to disallow deductions for late activities affecting interstate commerce AA66) received April 14, 1997, pursuant to 5 advertising expenses for tobacco products; to by creating employer liability for negligent U.S.C. 801(a)(1)(A); to the Committee on the Committee on Ways and Means. conduct that results in an individual’s com- Transportation and Infrastructure. By Mr. MARKEY (for himself, Mr. DIN- mitting a gender-motivated crime of vio- 2825. A letter from the General Counsel, GELL, Mr. KLINK, and Mr. SAWYER): lence against another individual on premises Department of Transportation, transmitting H.R. 1324. A bill to amend the Communica- controlled by the employer; to the Commit- the Department’s final rule—Establishment tions Act of 1934 to clarify the authority of tee on Education and the Workforce, and in of Class E Airspace; Pine Ridge, SD, Pine the Federal Communications Commission to addition to the Committee on the Judiciary, Ridge Airport (Federal Aviation Administra- authorize foreign investment in U.S. broad- for a period to be subsequently determined tion) [Airspace Docket No. 96–AGL–7] (RIN: cast and common carrier radio licenses; to by the Speaker, in each case for consider- 2120–AA66) received April 14, 1997, pursuant the Committee on Commerce. ation of such provisions as fall within the ju- to 5 U.S.C. 801(a)(1)(A); to the Committee on By Mr. DAN SCHAEFER of Colorado risdiction of the committee concerned. Transportation and Infrastructure. (for himself, Mr. TAUZIN, Mr. BONO, By Mr. NETHERCUTT (for himself, Ms. 2826. A letter from the General Counsel, Mr. HALL of Texas, Mr. HEFLEY, Mr. DUNN of Washington, Mr. MCINTOSH, Department of Transportation, transmitting LINDER, Mrs. MYRICK, Mr. NORWOOD, Mr. HOSTETTLER, Mr. CALVERT, Mr. the Department’s final rule—Amendment of Mr. PACKARD, Mr. STUMP, and Mr. CHABOT, and Mr. HEFLEY): Class E Airspace; Monte Vista, CO (Federal WICKER): H.R. 1333. A bill to amend the Internal Rev- Aviation Administration) [Airspace Docket H.R. 1325. A bill to promote freedom, fair- enue Code of 1986 to allow a deduction for the No. 95–ANM–31] received April 14, 1997, pursu- ness, and economic opportunity for families old-age, survivors, and disability insurance ant to 5 U.S.C. 801(a)(1)(A); to the Committee by repealing the income tax, abolishing the taxes paid by employees and self-employed on Transportation and Infrastructure. Internal Revenue Service, and enacting a na- individuals, and for other purposes; to the 2827. A letter from the General Counsel, tional retail sales tax to be administered pri- Committee on Ways and Means. Department of Transportation, transmitting marily by the States; to the Committee on By Ms. NORTON: the Department’s final rule—Amendment of Ways and Means. H.R. 1334. A bill to amend the Federal tort Class E Airspace; Burlington, CO (Federal By Mr. BUNNING of Kentucky (for claims provisions of title 28, United States Aviation Administration) [Airspace Docket himself and Mr. THORNBERRY): Code, to repeal the exception for claims aris- No. 95–ANM–27] received April 14, 1997, pursu- H.R. 1326. A bill to amend title 31, United ing outside the United States, and for other ant to 5 U.S.C. 801(a)(1)(A); to the Committee States Code, to provide for continuing appro- purposes; to the Committee on the Judici- on Transportation and Infrastructure. priations in the absence of regular appropria- ary. 2828. A letter from the Director, Office of tions; to the Committee on Appropriations. By Mr. SCHUMER (for himself, Mr. Regulations Management, Department of By Mr. CAMP: OWENS, Mr. TOWNS, Ms. MOLINARI, H.R. 1327. A bill to amend the Internal Rev- Veterans Affairs, transmitting the Depart- Mr. NADLER, Mrs. MALONEY of New enue Code of 1986 to provide for a child tax ment’s final rule—Removal of Certain Limi- York, and Ms. VELAZQUEZ): credit; to the Committee on Ways and H.R. 1335. A bill to award a congressional tations on Cost Comparisons Related to Con- Means. gold medal to honor Jack Roosevelt Robin- tracting Out of Activities at VA Health-Care By Mr. FRANK of Massachusetts: son; to the Committee on Banking and Fi- Facilities (RIN: 2900–AI61) received April 14, H.R. 1328. A bill to prohibit the importa- nancial Services. 1997, pursuant to 5 U.S.C. 801(a)(1)(A); to the tion of goods and produced abroad with child By Mr. SMITH of Texas (for himself, Committee on Veterans’ Affairs. labor, and for other purposes; to the Com- Mr. ROEMER, Mrs. ROUKEMA, and Mr. 2829. A letter from the General Counsel, mittee on International Relations, and in ad- WATT of North Carolina): Department of Defense, transmitting pro- dition to the Committee on Ways and Means, H.R. 1336. A bill to amend the Adult Edu- posed items of legislation that address per- for a period to be subsequently determine by cation Act to authorize the Secretary of sonnel, procurement, policy, and environ- the Speaker, in each case for consideration Education to make grants to States to pro- mental concerns of the Department of De- of such provisions as fall within the jurisdic- vide support services to participants in adult fense; jointly, to the Committees on Na- tion of the committee concerned. education programs; to the Committee on tional Security, Ways and Means, the Judici- By Mr. GREENWOOD: Education and the Workforce. ary, Government Reform and Oversight, and H.R. 1329. A bill to amend title XVIII of the By Mr. SNOWBARGER (for himself, Transportation and Infrastructure. Social Security Act to provide for coverage Mr. MORAN of Kansas, Mr. TIAHRT, f under part B of the Medicare Program of and Mr. RYUN): drugs approved by the Food and Drug Ad- H.R. 1337. A bill to enhance the administra- PUBLIC BILLS AND RESOLUTIONS ministration for the treatment of individuals tive authority of the respective presidents of Under clause 5 of rule X and clause 4 with multiple sclerosis; to the Committee on Haskell Indian Nations University and the of rule XXII, public bills and resolu- Commerce, and in addition to the Committee Southwest Indian Polytechnic Institute, and tions were introduced and severally re- on Ways and Means, for a period to be subse- for other purposes; to the Committee on quently determined by the Speaker, in each Education and the Workforce, and in addi- ferred as follows: case for consideration of such provisions as tion to the Committee on Government Re- By Mr. SKAGGS (for himself, Mrs. fall within the jurisdiction of the committee form and Oversight, for a period to be subse- ROUKEMA, Mr. SPRATT, and Mr. STEN- concerned. quently determined by the Speaker, in each HOLM): By Mr. KANJORSKI (for himself, Mr. case for consideration of such provisions as H.R. 1321. A bill to amend the Congres- TOWNS, Mr. BORSKI, Mr. Underwood, fall within the jurisdiction of the committee sional Budget and Impoundment Control Act Mr. MASCARA, and Ms. NORTON): concerned. of 1974 to provide for the expedited consider- H.R. 1330. A bill to prohibit Federal officers By Mr. SOUDER (for himself, Mrs. ation of certain proposed rescissions of budg- and employees from providing access to So- MYRICK, Mr. LARGENT, Mr. MCINTOSH, et authority; to the Committee on the Budg- cial Security Account statement informa- Mr. WELLER, Mr. SHADEGG, Mr. et, and in addition to the Committee on tion, personal earnings and benefits estimate WATTS of Oklahoma, Mr. COBURN, Rules, for a period to be subsequently deter- statement information, or tax return infor- Mrs. KELLY, Mr. ENGLISH of Penn- mined by the Speaker, in each case for con- mation of an individual through the Internet sylvania, Mrs. CHENOWETH, Mr. DUN- sideration of such provisions as fall within or without the written consent of the indi- CAN, Mr. KOLBE, Mr. BARTLETT of the jurisdiction of the committee concerned. vidual, and to establish a commission to in- Maryland, Mr. WELDON of Florida, By Mr. HYDE (for himself, Ms. PRYCE vestigate the protection and privacy afforded Mr. GRAHAM, Mr. SENSENBRENNER, of Ohio, Mr. BARCIA of Michigan, Mr. to certain Government records; to the Com- Mr. COX of California, Mr. CHABOT, ROYCE, Mr. STUMP, Mr. BONO, Mr. mittee on Government Reform and Over- Mr. PAUL, Mrs. EMERSON, and Mr. MORAN of Virginia, Mr. HORN, Mr. sight. CALVERT): BRADY, Mr. FOLEY, Mr. STEARNS, Mr. By Mrs. KENNELLY of Connecticut: H.R. 1338. A bill to amend the Internal Rev- GALLEGLY, Ms. ROS-LEHTINEN, and H.R. 1331. A bill to require the Commis- enue Code of 1986 to increase the amount of Mr. LOBIONDO): sioner of Social Security to assemble a panel the charitable contribution deduction, to H.R. 1322. A bill to implement the Victims’ of experts to assist the Commissioner in de- allow such deduction to individuals who do Rights Constitutional Amendment and pro- veloping appropriate mechanisms and safe- not itemize other deductions, and for other tect the rights of crime victims; to the Com- guards to ensure confidentiality and integ- purposes; to the Committee on Ways and mittee on the Judiciary. rity of personal Social Security records Means. H1542 CONGRESSIONAL RECORD — HOUSE April 15, 1997

By Mr. UNDERWOOD: H.R. 158: Mr. GILLMOR, Mr. MICA, Mr. TURNER, Mr. HALL of Texas, Mr. BOEHNER, H.R. 1339. A bill to amend title 10, United CRANE, Mr. DREIER, Mr. CUNNINGHAM, Mr. Mr. MCCOLLUM, and Mr. BAKER. States Code, to impose certain notification BONILLA, Mr. WALSH, Mr. SESSIONS, Mr. H.R. 902: Mr. CRAMER, Mr. HASTERT, and requirements on the Secretary of Defense as WHITFIELD, Mr. GRAHAM, Mr. CALVERT, Mr. Mr. MCINNIS. a precondition on the establishment of De- BARCIA of Michigan, Mr. BAKER, and Mr. H.R. 910: Mrs. MORELLA and Mr. FARR of partment of Defense domestic dependent ele- BONO. California. mentary and secondary schools; to the Com- H.R. 159: Mr. GRAHAM. H.R. 911: Mr. WYNN, Mr. CARDIN, Mr. PACK- mittee on National Security. H.R. 161: Mr. KOLBE. ARD, Mr. DAVIS of Illinois, Mr. TALENT, and By Mr. VISCLOSKY: H.R. 163: Mrs. EMERSON. Mr. FORD. H.R. 1340. A bill to reduce corporate wel- H.R. 166: Mr. BROWN of California. H.R. 915: Ms. PELOSI, Mrs. MEEK of Florida, fare and promote corporate responsibility; to H.R. 198: Mr. CRANE and Mr. GALLEGLY. Mr. KENNEDY of Rhode Island, Mr. LIPINSKI, the Committee on Ways and Means, and in H.R. 228: Mr. ENGLISH of Pennsylvania. Mr. DEFAZIO, Mr. TRAFICANT, Ms. BROWN of addition to the Committees on Resources, H.R. 303: Mr. GALLEGLY, Mr. JONES, Mr. Florida, Ms. DANNER, Mr. BARRETT of Wis- Agriculture, Science, Banking and Financial SHAW, Mrs. EMERSON, and Mr. SAM JOHNSON. consin, Mr. OLVER, Mr. EHLERS, Mr. MCNUL- Services, the Budget, and Transportation H.R. 312: Mr. PACKARD and Mr. BILIRAKIS. TY, and Mr. RUSH. and Infrastructure, for a period to be subse- H.R. 335: Mr. ANDREWS. H.R. 916: Mr. ENGLISH of Pennsylvania, Mr. quently determined by the Speaker, in each H.R. 347: Mrs. EMERSON. KLECZKA, Mr. HILLIARD, Mr. DEUTSCH, Mr. LI- H.R. 408: Mr. WEXLER and Mr. DICKS. case for consideration of such provisions as PINSKI, Mr. EDWARDS, Ms. CHRISTIAN-GREEN, H.R. 423: Mr. LUTHER and Ms. PRYCE of fall within the jurisdiction of the committee and Mr. YOUNG of Florida. Ohio. concerned. H.R. 919: Mrs. MINK of Hawaii. H.R. 424: Mr. EHRLICH and Mr. PETRI. By Mr. HYDE (for himself, Ms. PRYCE H.R. 939: Mr. SKEEN and Mr. SUNUNU. H.R. 437: Mr. WELDON of Florida. of Ohio, Mr. BARCIA of Michigan, Mr. H.R. 947: Mr. BENTSEN, Mr. KUCINICH, and H.R. 446: Mr. FATTAH, Mr. BOB SCHAFFER, ROYCE, Mr. STUMP, Mr. BONO, Mr. Mr. CAPPS. and Mr. FILNER. MORAN of Virginia, Mr. HORN, Mr. H.R. 953: Ms. NORTON. H.R. 450: Mr. CAMP, Mr. LEWIS of Georgia, BRADY, Mr. FOLEY, Mr. STEARNS, Mr. H.R. 955: Mr. LARGENT, Mrs. CUBIN, Mr. Mr. CALVERT, and Mr. BARR of Georgia. GALLEGLY, Ms. ROS-LEHTINEN, and KNOLLENBERG, Mr. BACHUS, Ms. PRYCE of H.R. 465: Mr. CLYBURN, Mr. BACHUS, Mr. Mr. LOBIONDO): Ohio, Mr. SHIMKUS, and Mr. WYNN. FLAKE, Mr. CALVERT, and Mr. WEYGAND. H.J. Res. 71. Joint resolution proposing an H.R. 964: Ms. MOLINARI, Mr. JONES, Mr. H.R. 475: Mr. DELAHUNT, Mr. PETERSON of amendment to the Constitution of the Unit- MCINTYRE, Mr. MCINTOSH, Mr. KNOLLENBERG, Pennsylvania, Mrs. MYRICK, and Mr. SHU- ed States to protect the rights of crime vic- Ms. PRYCE of Ohio, and Mr. BALLENGER. STER. tims; to the Committee on the Judiciary. H.R. 965: Mr. DREIER. H.R. 482: Mr. POMBO. H.R. 977: Mr. BARRETT of Nebraska. By Mr. WATTS of Oklahoma (for him- H.R. 493: Mr. SANFORD. H.R. 978: Mr. BILIRAKIS, Mr. JONES, and Mr. self, Mr. LARGENT, and Mr. BUNNING H.R. 533: Mr. PAUL, Mr. TRAFICANT, and Mr. BARR of Georgia. of Kentucky): LEWIS of Georgia. H.R. 979: Mr. HILLIARD, Mr. MORAN of Vir- H. Con. Res. 61. Concurrent resolution hon- H.R. 566: Mr. FLAKE, Mr. TOWNS, Mr. ginia, and Mr. LEWIS of Georgia. oring the lifetime achievements of Jackie WEXLER, Mr. DAVIS of Illinois, and Mr. LEWIS H.R. 983: Mr. LEWIS of Georgia and Mr. Robinson; to the Committee on Government of Georgia. FILNER. Reform and Oversight. H.R. 586: Mr. CARDIN, Mr. MCHALE, Mr. H.R. 984: Mr. SENSENBRENNER, Mr. ENGLISH By Mr. HASTINGS of Florida: PETRI, and Mr. WOLF. of Pennsylvania, and Mr. GRAHAM. H. Con. Res. 62. Concurrent resolution di- H.R. 589: Mr. SNOWBARGER and Mrs. CUBIN. H.R. 986: Mr. BOB SCHAFFER, Mr. recting the Joint Committee on the Library H.R. 614: Mr. SALMON, Mr. SENSENBRENNER, CHRISTENSEN, Mr. BAKER, and Mr. RAMSTAD. to procure a bust or statue of Sojourner and Mr. NEUMANN. H.R. 991: Ms. EDDIE BERNICE JOHNSON of Truth for placement in the Capitol; to the H.R. 622: Mr. PETERSON of Pennsylvania. RAMER Committee on House Oversight. H.R. 630: Mr. GALLEGLY and Mr. ROGAN. Texas and Mr. C . f H.R. 659: Mr. HILL, Mr. GUTKNECHT, Mr. H.R. 1031: Mr. PAYNE, Mr. DELAY, Mr. HASTINGS of Washington, Mr. BOB SCHAFFER, FROST, Mr. BOEHNER, Mrs. CLAYTON, Mr. PRIVATE BILLS AND and Mr. BERRY. MCINTOSH, Mr. JEFFERSON, Mrs. MYRICK, Mr. RESOLUTIONS H.R. 667: Ms. SLAUGHTER, Mrs. MINK of Ha- SENSENBRENNER, Mr. HILL, Mr. PICKERING, Mr. ENGLISH of Pennsylvania, Mr. TRAFI- Under clause 1 of rule XXII. waii, Mr. MANTON, Mr. BERMAN, Ms. CHRIS- CANT, Mr. HULSHOF, Mr. WAMP, Mr. Mr. HAYWORTH introduced a bill (H.R. TIAN-GREEN, Mr. LEWIS of Georgia, and Mr. KNOLLENBERG, Mr. SOUDER, Ms. CHRISTIAN- 1341) for the relief of Comdr. Carl D. Swan- HINOJOSA. GREEN, Mr. THORNBERRY, Mr. RIGGS, Mr. son; which was referred to the Committee on H.R. 722: Mr. YOUNG of Alaska, Mr. KLUG, COBURN, Mr. NORWOOD, Mr. BARTLETT of the Judiciary. Mr. HEFLEY, Mr. BOYD, Mr. WATTS of Okla- homa, and Mr. RYUN. Maryland, Mrs. EMERSON, Mr. KUCINICH, Mr. f H.R. 723: Mr. BAESLER, Mr. BUNNING of Ken- HAYWORTH, Mr. CHABOT, Mr. KING of New ADDITIONAL SPONSORS tucky, Mrs. CHENOWETH, Mr. DOOLITTLE, Mr. York, Mr. TOWNS, Mr. WELDON of Florida, PETERSON of Minnesota, Mr. PICKERING, and Mr. WATKINS, Mr. NEUMANN, Mr. SOLOMON, Under clause 4 of rule XXII, sponsors Mr. WATKINS. Mr. PETERSON of Pennsylvania, Mr. LEWIS of were added to public bills and resolu- H.R. 758: Mr. GOODLING, Mr. WATTS of Okla- Kentucky, Mr. PITTS, Mr. LARGENT, Mr. MIL- tions as follows: homa, Mr. UPTON, Mr. COBLE, Mr. PICKERING, LER of Florida, Mr. DAVIS of Virginia, and H.R. 14: Mr. HASTERT, Mr. RIGGS, Mr. Mr. BURTON of Indiana, Mrs. NORTHUP, Mr. Mr. ENSIGN. SANDLIN, Mr. CALVERT, Mr. NORWOOD, Mr. JONES, Mr. GOSS, Mr. BLILEY, Mr. BACHUS, H.R. 1035: Mr. FATTAH. FOX of Pennsylvania, and Mr. BOB SCHAFFER. Mr. GOODLATTE, Mr. LEWIS of Kentucky, Mr. H.R. 1043: Mr. JEFFERSON, Mr. BARCIA of H.R. 27: Mr. BRADY, Mr. HERGER, Mr. MICA, Mr. KIM, Mr. SHADEGG, Mrs. MYRICK, Michigan, Mr. VENTO, Mr. WISE, Mr. ABER- HOSTETTLER, Mr. DUNCAN, Mr. BACHUS, and and Ms. PRYCE of Ohio. CROMBIE, Mr. BALDACCI, Mr. ACKERMAN, Mr. Mr. COMBEST. H.R. 789: Mr. SHADEGG, Mr. CHABOT, Mr. KIND of Wisconsin, and Ms. FURSE. H.R. 38: Mr. GALLEGLY, Mr. DEUTSCH, Mr. BERRY, and Mrs. ROUKEMA. H.R. 1049: Mr. MARTINEZ. LAMPSON, and Mr. HEFNER. H.R. 793: Mr. MANTON, Mr. GUTIERREZ, Mr. H.R. 1050: Mr. RUSH. H.R. 44: Mr. ANDREWS and Mr. FILNER. LEWIS of Georgia, and Mrs. MINK of Hawaii. H.R. 1054: Ms. LOFGREN, Mr. MILLER of H.R. 47: Mr. COOKSEY. H.R. 794: Ms. LOFGREN. California, Mr. DREIER, Mr. CUNNINGHAM, Mr. H.R. 65: Mr. GALLEGLY, Mr. JONES, Mrs. H.R. 812: Mr. LIPINSKI. ENGLISH of Pennsylvania, Mr. HERGER, and EMERSON, Mr. ANDREWS, Mr. BACHUS, and Mr. H.R. 814: Ms. FURSE, Mr. ROTHMAN, and Mr. Mr. ROYCE. SAM JOHNSON. LEWIS of Georgia. H.R. 1060: Mr. BRYANT, Mrs. LINDA SMITH of H.R. 96: Mr. FATTAH, Ms. DANNER, Mrs. H.R. 816: Mr. WELLER. Washington, Mr. GANSKE, Mr. WAMP, Mr. MALONEY of New York, Mr. GREENWOOD, Mr. H.R. 841: Mr. HINCHEY. SOLOMON, Mr. ALLEN, Mr. TURNER, and Mr. SCHUMER, and Mr. MCNULTY. H.R. 861: Mr. LUCAS of Oklahoma, Mr. WELDON of Florida. H.R. 107: Mr. GIBBONS, Mr. FORBES, Mr. BARRETT of Nebraska, Mr. BOB SCHAFFER, H.R. 1114: Mr. FALEOMAVAEGA, Mr. GON- DEUTSCH, Mr. ANDREWS, Mr. LEWIS of Geor- and Mr. THUNE. ZALEZ, Mrs. MORELLA, Mr. KUCINICH, Mr. gia, Mr. TALENT, and Mr. LANTOS. H.R. 862: Mr. FROST. FOGLIETTA, Mr. HINOJOSA, and Ms. SLAUGH- H.R. 124: Mr. BARTLETT of Maryland and H.R. 875: Mr. KING of New York, Mr. TER. Mr. HOSTETTLER. GANSKE, Ms. LOFGREN, Mr. DIAZ-BALART, Mr. H.R. 1125: Ms. DELAURO, Mr. DOYLE, Mr. H.R. 125: Mr. CALVERT. MANTON, Mr. DIXON, Mr. COYNE, and Mr. KANJORSKI, Mr. HINCHEY, and Mrs. LOWEY. H.R. 127: Mr. OWENS, Mr. NEY, Mrs. FILNER. H.R. 1126: Mr. LANTOS. THURMAN, and Mr. LANTOS. H.R. 880: Mr. PICKETT, Mr. LUCAS of Okla- H.R. 1129: Mr. SHAW, Mr. FATTAH, Mr. H.R. 145: Mr. RUSH, Ms. EDDIE BERNICE homa, Mr. BARRETT of Nebraska, Ms. OBERSTAR, Ms. SLAUGHTER, Mr. FARR of Cali- JOHNSON of Texas, Ms. MCCARTHY of Mis- STABENOW, Mr. BAKER, and Mr. STEARNS. fornia, and Mr. MATSUI. souri, Mr. WALSH, Mr. WELLER, and Mrs. H.R. 901: Mr. LATHAM, Mr. NEUMANN, Mr. H.R. 1130: Mr. DAVIS of Illinois, Mr. ROTH- CLAYTON. HASTERT, Mr. WELLER, Mr. SOUDER, Mr. MAN, and Ms. PELOSI. April 15, 1997 CONGRESSIONAL RECORD — HOUSE H1543

H.R. 1140: Mr. BUNNING of Kentucky and FOWLER, Mr. HYDE, Mr. GILLMOR, Mr. CAL- ida, Mr. HILLIARD, Mr. DAVIS of Illinois, Mr. Mr. DEAL of Georgia. VERT, and Mr. SAM JOHNSON. HINOJOSA, and Mr. YOUNG of Florida. H.R. 1169: Mr. BOEHLERT, Mr. MCGOVERN, H.R. 1299: Mr. TAYLOR of North Carolina, H. Con. Res. 23: Mr. CLAY. Mr. HAYWORTH, Mr. GALLEGLY, Mr. GREEN- Mr. CRAMER, Mr. COOKSEY, Mr. BAKER, and H. Con. Res. 32: Mrs. KENNELLY of Con- WOOD, Mr. RADANOVICH, Mr. SANDLIN, Mr. PE- Mr. GOODE. necticut and Mr. DELLUMS. TERSON of Minnesota, and Mr. PITTS. H.R. 1301: Mr. LEWIS of Georgia, Mr. H. Con. Res. 38: Ms. DELAURO, Mr. FATTAH, H.R. 1178: Mr. NADLER. DEFAZIO, Mr. RANGEL, Mr. YATES, Mr. and Mr. LAFALCE. H.R. 1215: Mr. FROST, Mr. BILBRAY, Mr. PAYNE, Mr. SPRATT, Mr. GEJDENSON, Mr. H. Con. Res. 43: Mr. EVANS and Mrs. BERMAN, Ms. PELOSI, Mr. BONIOR, and Mr. SAWYER, and Mr. BLUMENAUER. MCCARTHY of New York. EVANS. H.R. 1302: Ms. KILPATRICK, Ms. LOFGREN, H. Con. Res. 53: Mr. LANTOS. H.R. 1224: Mr. CALVERT. Mr. KILDEE, Ms. JACKSON-LEE, Mr. WEYGAND, H. Res. 37: Mr. FLAKE and Ms. DUNN of H.R. 1231: Mr. SANDERS and Mr. BORSKI. Mr. MORAN of Virginia, and Mrs. MEEK of Washington. H.R. 1245: Ms. CHRISTIAN-GREEN, Mr. Florida. H. Res. 39: Mrs. MALONEY of New York and EVANS, Mr. FROST, and Ms. LOFGREN. H.J. Res. 37: Mrs. CHENOWETH. Mr. GUTIERREZ. H.R. 1246: Ms. CHRISTIAN-GREEN, Mr. H.J. Res. 54: Mr. BERRY, Mr. KLUG, and Mr. H. Res. 109: Mr. RADANOVICH, Mr. PAXON, FROST, Mrs. MEEK of Florida, and Mr. WATTS Mr. ROYCE, Mr. PAPPAS, and Mr. ADERHOLT. of Oklahoma. THOMPSON. H.R. 1247: Mr. DEAL of Georgia, Mr. H.J. Res. 56: Mr. SESSIONS. f LAHOOD, Mr. CALVERT, Mr. TALENT, Mrs. H.J. Res. 62: Mr. GANSKE, Mr. GILMAN, Mr. LINDA SMITH of Washington, and Mr. MILLER KIM, Mr. KINGSTON, Mr. RADANOVICH, and Mr. DELETIONS OF SPONSORS FROM of Florida. DAN SCHAEFER of Colorado. PUBLIC BILLS AND RESOLUTIONS H.J. Res. 65: Mrs. MEEK of Florida, Mrs. H.R. 1248: Mr. PICKERING. Under clause 4 of rule XXII, sponsors H.R. 1263: Mr. MCGOVERN, Mr. WEXLER, Mr. MALONEY of New York, and Mr. FROST. were deleted from public bills and reso- OLVER, and Mr. MCHALE. H. Con. Res. 8: Mr. ORTIZ. H.R. 1270: Ms. DUNN of Washington, Mr. H. Con. Res. 13: Mr. LEWIS of Georgia, Mr. lutions as follows: FOX of Pennsylvania, Mrs. THURMAN, Mr. WATT of North Carolina, Mr. PAYNE, Mr. H.R. 950: Ms. DELAURO. CONYERS, Mr. LATOURETTE, Mr. KLUG, Mrs. BILIRAKIS, Mr. GILLMOR, Mr. WELDON of Flor- H.R. 1200: Mr. WATTS of Oklahoma. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, FIRST SESSION

Vol. 143 WASHINGTON, TUESDAY, APRIL 15, 1997 No. 44 Senate The Senate met at 9 a.m., and was sume consideration of S. 104, the Nu- Bingaman amendment No. 31 (to amend- called to order by the President pro clear Policy Act. Under the order, fol- ment No. 26) to provide for the case in which tempore [Mr. THURMOND]. lowing 3 minutes for debate, there will the Yucca Mountain site proves to be unsuit- be a series of rollcall votes on or in re- able or cannot be licensed and to strike the automatic default to a site in Nevada. PRAYER lationship to the pending amendments. Mr. BRYAN addressed the Chair. The Chaplain, Dr. Lloyd John The last vote in that series will be final The PRESIDING OFFICER. The Sen- Ogilvie, offered the following prayer: passage of the Nuclear Policy Act. ator from Nevada. Almighty God, we thank You for this Following disposition of S. 104, there moment of quiet in which we can reaf- Mr. BRYAN. Mr. President, I ask will be a period of morning business unanimous consent that privileges of firm who we are, whose we are, and until the hour of 12:30 p.m. The Senate why we are here. Once again, we com- the floor be extended to a staff member will recess at 12:30 p.m. until the hour of mine, Brent Heberlee, throughout mit ourselves to You as sovereign Lord of 2:15 to allow for the weekly policy of our lives and our Nation. Our ulti- consideration of S. 104 and amend- conferences to meet. When the Senate ments thereto. mate goal is to please and serve You. reconvenes after the luncheons, it is You have called us to be servant lead- The PRESIDING OFFICER. Without hoped that we will be able to begin dis- objection, it is so ordered. ers who glorify You in seeking to know cussions on legislation regarding the and to do Your will in the unfolding of AMENDMENT NO. 31 IRS’s unauthorized access to tax The PRESIDING OFFICER. There Your vision for America. records. Therefore, Senators can expect We spread out before You the specific will now be 3 minutes debate prior to additional votes today following the the vote on the Bingaman amendment decisions that must be made today. We policy luncheons. claim Your presence in all that we do No. 31. f this day. Guide our thinking and our Mr. MURKOWSKI. Mr. President, let speaking. May our convictions be based RESERVATION OF LEADER TIME me very briefly address the Bingaman on undeniable truth which has been re- amendment which I feel introduces The PRESIDING OFFICER (Mr. some serious loopholes in S. 104’s iron- fined by You. HUTCHINSON). Under the previous order, Bless the women and men of this clad process toward a safe, central in- the leadership time is reserved. terim storage facility. Senate as they work together to find f the best solutions for the problems be- The loopholes will be used, as they fore our Nation. Help them to draw on NUCLEAR WASTE POLICY ACT have in the past, to keep the nuclear the supernatural resources of Your AMENDMENTS waste where it is at 80 sites in 41 States, near schools and residential spirit. Give them divine wisdom, pene- The PRESIDING OFFICER. Under trating discernment, and indomitable neighborhoods—right where it is today. the previous order, the Senate will now The history of the nuclear waste courage. resume consideration of S. 104 which When this day draws to a close, may issue has taught us some simple les- the clerk will report. sons we must heed: Any decision re- our deepest joy be that we received The bill clerk read as follows: Your best for us and worked together garding nuclear waste that can be de- A bill (S. 104) to amend the Nuclear Waste layed will be delayed; any decision that for what is best for our Nation. In the Policy Act of 1982. name of our Lord and Saviour. Amen. can be ignored will be ignored. That is The Senate resumed consideration of f why we have spent $6 billion over 15 the bill. years, and the Federal Government is RECOGNITION OF THE ACTING Pending: still unable to meet its legal and moral MAJORITY LEADER Murkowski amendment No. 26, in the na- obligation to take the waste in 1998. The PRESIDENT pro tempore. The ture of a substitute. I implore my colleagues: Let us not able Senator from Alaska is recog- Lott (for Domenici) amendment No. 42 (to be fooled again. S. 104 is designed to nized. amendment No. 26) to provide that no points make sure there are no trap doors. The Mr. MURKOWSKI. Mr. President, I of order, which require 60 votes in order to chart that I explained to my colleagues wish the Senate a good morning and a adopt a motion to waive such point of order, yesterday attempts to make a decision, shall be considered to be waived during the force a decision now, not leave us with good day. consideration of a joint resolution under sec- f tion 401 of this act. a way out or a copout. I suggest to you that the Bingaman SCHEDULE Lott (for Murkowski) amendment No. 43 (to amendment No. 42) to establish the level amendment as it is structured opens a Mr. MURKOWSKI. On behalf of the of annual fee for each civilian nuclear power loophole. It opens the process to politi- leader, this morning the Senate will re- reactor. cal pressure. It invites indecision. It

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor.

S3135 S3136 CONGRESSIONAL RECORD — SENATE April 15, 1997 continues the legacy of failure that the Mr. FORD. I announce that the Sen- tects the ratepayer by making it clear Department of Energy’s nuclear waste ator from West Virginia [Mr. ROCKE- that the user fee cannot exceed 1 mill program is noted for. FELLER] is necessarily absent. without congressional authorization. It would be my intention, Mr. Presi- The result was announced—yeas, 59, DOE’s own budget projections show dent, to move to table the Bingaman nays, 39, as follows: that a 1 mill fee is sufficient. amendment. [Rollcall Vote No. 40 Leg.] Mr. President, I ask for the yeas and Mr. BINGAMAN addressed the Chair. YEAS—59 nays. The PRESIDING OFFICER. The Sen- Abraham Grams McConnell The PRESIDING OFFICER. Is there a ator from New Mexico. sufficient second? Mr. BINGAMAN. Mr. President, first, Allard Grassley Moseley-Braun Ashcroft Gregg Murkowski There appears to be a sufficient sec- I ask unanimous consent that Anne Bennett Hagel Murray ond. Marie Murphy, who is a Congressional Bond Hatch Nickles The yeas and nays were ordered. Fellow on Senator DURBIN’s staff, be Brownback Helms Roberts Burns Hollings Roth Mr. BUMPERS addressed the Chair. granted privileges of the floor today, Cochran Hutchinson Santorum The PRESIDING OFFICER. The Sen- April 15. Collins Hutchison Sessions The PRESIDING OFFICER. Without Coverdell Inhofe Shelby ator from Arkansas. objection, it is so ordered. Craig Jeffords Smith (NH) Mr. BUMPERS. Mr. President, in Mr. BINGAMAN. Mr. President, the D’Amato Johnson Smith (OR) 1982, when this body adopted the Nu- DeWine Kempthorne Snowe clear Waste Policy Act, we set, as the amendment I have offered goes to the Domenici Kohl Specter heart of a flaw in S. 104. Without the Enzi Kyl Stevens distinguished chairman of the commit- amendment that I am offering, S. 104 Faircloth Leahy Thomas tee has said, the amount the utilities Frist Lott Thompson would pay to build a permanent reposi- will send nuclear waste to the site Gorton Lugar Thurmond right next to Yucca Mountain even if Graham Mack Warner tory at 1 mill per kilowatt hour. In 14 Yucca Mountain fails as the geologic Gramm McCain years, we have collected $8 billion. The repository. We will then have a perma- NAYS—39 total cost of the program is $34 billion. The utilities’ share of that cost is $27 nent aboveground repository rather Akaka Daschle Landrieu than a geologic repository and will be Baucus Dodd Lautenberg billion. So we are looking for the 1 mill able to shuffle off the responsibility for Biden Dorgan Levin fee to produce $27 billion. The defense dealing with nuclear waste to our chil- Bingaman Durbin Lieberman program’s share is $7 billion. The inter- Boxer Feingold Mikulski dren and grandchildren. Breaux Feinstein Moynihan est on the excess that sits in the Treas- There is an attempt in the bill to dis- Bryan Ford Reed ury is expected to make up the bal- guise this unfair policy with a provi- Bumpers Glenn Reid ance. sion that allows the President to send Byrd Harkin Robb In 14 years, the Secretary of Energy Campbell Inouye Sarbanes waste somewhere else if we pass a law Chafee Kennedy Torricelli has had the discretion, which we gave to that effect within 24 months. But we Cleland Kerrey Wellstone the Secretary, to raise this 1 mill fee to are not going to pass a new nuclear Conrad Kerry Wyden whatever it would take to pay the util- waste law in 24 months especially if the NOT VOTING—2 ities’ share of the program’s cost. In 14 reward for not doing so is to keep send- Coats Rockefeller years, he or she has never seen fit to ing all the waste to Nevada where we raise it. There is no point in tinkering The motion to lay on the table the can forget about it. with it now because it is working fine. amendment (No. 31) was agreed to. My amendment stops construction If there ever was a case where we are Mr. MURKOWSKI. The Senate is not and operation of an interim storage trying to fix a problem that does not in order, Mr. President. site in Nevada if Yucca Mountain fails exist, this is it. Leave the law as it is. The PRESIDING OFFICER. The Sen- as a candidate repository at any time We are adding $2 billion to the $27 bil- ate will be in order. There will now be before it opens. If Yucca Mountain is lion cost now with the Murkowski bill. 3 minutes for debate prior to the not suitable as a repository, then it is That is going to up the ante $2 billion. vote—— not the right place for interim storage. One mill is fine for now. The utilities Mr. MURKOWSKI. Mr. President, I We must have certainty that our ulti- are happy with it. It is producing the did not hear the vote count, and I won- mate solution for nuclear waste is amount of money we want. There is ab- der if my other colleagues did. I wonder based on having a geologic repository solutely no reason for this amendment. if the President will repeat it. and that any action on an interim stor- I do not think we will have to raise it, age facility rises or falls with the fate The PRESIDING OFFICER. On the motion to table, Senators voting in the but we might. of a permanent facility. Mr. President, I yield back such time I urge my colleagues to support the affirmative 59, voting in the negative 39. The motion to table is agreed to. as I have. amendment. The PRESIDING OFFICER. If all The PRESIDING OFFICER. The time Mr. MURKOWSKI. Mr. President, I time is yielded back, the question is on of the Senator has expired. move to reconsider the vote by which The question is on agreeing to the the motion was agreed to. agreeing to the amendment. The yeas amendment. Mr. CRAIG. I move to lay that mo- and nays have been ordered. The clerk Mr. MURKOWSKI addressed the tion on the table. will call the roll. Chair. The motion to lay on the table was The bill clerk called the roll. The PRESIDING OFFICER. The Sen- agreed to. Mr. NICKLES. I announce that the Senator from Indiana [Mr. COATS] is ator from Alaska. AMENDMENT NO. 43 Mr. MURKOWSKI. I move to table necessarily absent. The PRESIDING OFFICER. There the Bingaman amendment and ask for Mr. FORD. I announce that the Sen- will now be 3 minutes of debate prior to the yeas and nays. ator from West Virginia [Mr. ROCKE- the vote on the Murkowski amendment The PRESIDING OFFICER. Is there a FELLER] is necessarily absent. sufficient second? There is a sufficient No. 43. The result was announced—yeas 66, second. The Senator from Alaska is recog- nays 32, as follows: nized. The yeas and nays were ordered. [Rollcall Vote No. 41 Leg.] The PRESIDING OFFICER. The Mr. MURKOWSKI. I thank the Chair. YEAS—66 question is on agreeing to the motion Mr. President, the purpose of this amendment is to protect the taxpayer Abraham Collins Gorton to table the amendment. The yeas and Allard Coverdell Graham nays have been ordered. The clerk will by making it clear that nuclear waste Bennett Craig Gramm call the roll. user fees cannot exceed 1 mill per kilo- Bond D’Amato Grams The assistant legislative clerk pro- watt hour without specified congres- Breaux DeWine Grassley sional authorization. The spent fuel Brownback Dodd Gregg ceeded to call the roll. Burns Domenici Hagel Mr. NICKLES. I announce that the disposal program is paid for with a fee Campbell Enzi Hatch Senator from Indiana [Mr. COATS] is that is currently set to 1 mill per kilo- Chafee Faircloth Helms necessarily absent. watt hour. My amendment simply pro- Cochran Frist Hollings April 15, 1997 CONGRESSIONAL RECORD — SENATE S3137 Hutchinson Lott Sarbanes be no further amendment to be pro- as a site for an interim storage facility Hutchison Lugar Sessions Inhofe Mack Shelby posed, the question is on agreeing to before the viability assessment of Inouye McCain Smith (NH) the Murkowski amendment in the na- Yucca Mountain as a permanent repos- Jeffords McConnell Smith (OR) ture of a substitute, as amended. itory is completed. Well, they have not Johnson Mikulski Snowe The amendment (No. 26), as amended, read the bill, Mr. President. S. 104 does Kempthorne Murkowski Specter Kohl Nickles Stevens was agreed to. not choose a site for interim storage Kyl Robb Thomas The PRESIDING OFFICER. The before the viability assessment of Leahy Roberts Thompson question is on the engrossment and Yucca Mountain is completed. If the vi- Levin Roth Thurmond third reading of the bill. ability assessment is positive, the bill Lieberman Santorum Warner The bill was ordered to be engrossed provides that the interim storage facil- NAYS—32 for a third reading and was read the ity will be constructed at the Nevada Akaka Daschle Landrieu third time. test site. If the viability assessment is Ashcroft Dorgan Lautenberg The PRESIDING OFFICER. There negative, the bill provides that the Baucus Durbin Moseley-Braun are 2 minutes for debate evenly divided Biden Feingold Moynihan President has 18 months and Congress Bingaman Feinstein Murray at this time. has 2 years to choose another interim Boxer Ford Reed Mr. MURKOWSKI. Mr. President, the storage site. Bryan Glenn Reid question before the body now is wheth- This bill, Senate 104, protects the Bumpers Harkin Torricelli er we want to leave the waste where it Byrd Kennedy Wellstone public health, environment, and ex- Cleland Kerrey Wyden is, 41 States in 80 sites, or do some- tends the schedule for siting and li- Conrad Kerry thing about the waste. Do we want the censing. It requires environmental im- waste to move out again because of an NOT VOTING—2 pact statements. It provides the in- inability to reach a decision? Where Coats Rockefeller terim facility will be licensed. It short- would it move? Nobody wants it in any ens the license term of the interim fa- The amendment (No. 43) was agreed of the 50 States. It would move out to cility to 40 years; it balance State and to. the Pacific. God knows where it would Federal laws, preempting only those Mr. MURKOWSKI. Mr. President, I move. Today we must make an impor- State laws that are inconsistent with move to reconsider the vote. tant environmental decision which will the act; it provides that the Environ- Mr. STEVENS. Mr. President, I move lead to a safer future for all Americans. mental Protection Agency will set to lay it on the table. Currently, Mr. President, as I have standards for a permanent repository, The motion to lay on the table was noted, we have the waste stored in 80 based upon the National Academy of agreed to. sites in 41 States. This is in addition to Science recommendation. AMENDMENT NO. 42 waste stored at DOE facilities, and it is So we have reached a crossroad, Mr. The PRESIDING OFFICER. There in our backyards across the land. Do President. The job of fixing this pro- will now be 3 minutes for debate prior we want that waste to stay there, or do gram is ours. The time for fixing the to the vote on the Domenici amend- we want to move it? That is the ques- program is now. Much progress has ment No. 42. tion. been made at Yucca Mountain. The 5- Mr. MURKOWSKI. I ask unanimous Every year that goes by our ability mile exploratory tunnel will soon be consent the yeas and nays be vitiated to continue to store nuclear waste at complete. If Yucca is found on unsuit- on the substitute amendment. I under- each of these sites in a safe and envi- able or is not licensed, it will be vital stand the underlying Domenici amend- ronmentally responsible way dimin- that we have a centralized interim site. ment is acceptable. ishes. Our temporary storage facilities I have a simple bottom line. We must Mr. DOMENICI. Mr. President, my were designed for just that—temporary chart a safe, predictable, and sure amendment is, in effect, a technical storage. We have struggled with this course to interim and permanent waste amendment which ensures that any nuclear waste issue for more than a storage. There can be no trapdoors, Mr. joint resolution addressing a change to decade. We have collected $13 billion President. I don’t want to have to the fee set out in this bill does not from the taxpayers, but some are un- stand here next year or the year after automatically escape Budget Act scru- prepared to meet the Government’s doing this again. We have to ask our- tiny. promise to take the waste by 1998, next selves, do we want to move the waste The underlying bill provides fast- year. or simply leave it where it is? track procedures for enacting the joint The administration’s position would We can choose now whether the Na- resolution. The procedures provide that suggest that we are undermining the tion needs 80 interim storage sites, or all points of order are waived. My permanent repository program. They just one. The arid, remote Nevada test amendment provides that Budget Act have not read the bill. The reality is site, where we have exploded scores of points of order are not waived: It would that it is the only way to save the per- nuclear bombs during the cold war, is a be a bad precedent to waive Budget Act manent repository program. safe and remote location for a mon- points of order when we don’t have the Mr. BYRD. Mr. President, may we itored interim site. The time is now. I measure before us for review. have order? think S. 104 is the answer. So ask your- The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. If there self, do you want to leave the waste ator is correct. Order in the Chamber. where it is, in 40 States at 80 sites? Or is no future debate, the question is on Mr. BYRD. Let’s get order in the agreeing to the Domenici amendment. do you want to move the waste from Senate. The rule requires that the your State to one location, and that is The amendment (No. 42) was agreed Chair secure and maintain order in the to. the Nevada test site? Senate and in the galleries without a I reserve the remainder of my time Mr. DOMENICI. I move to reconsider point of order being made from the the vote. for the Senator from Idaho, Senator floor. CRAIG. Mr. CRAIG. I move to lay that mo- I hope the Chair will insist on it, and tion on the table. Mr. REID. Mr. President, how much I hope that Senators will respect the time do the opponents of the legisla- The motion to lay on the table was Chair. agreed to. tion have? Mr. MURKOWSKI. Let me remind The PRESIDING OFFICER (Mr. Mr. MURKOWSKI. I now ask for the you that the U.S. court of appeals has FRIST). Five minutes. yeas and nays on the passage of Senate ruled that the Department of Energy Mr. REID. The proponents have how bill 104. has an obligation to take possession of much time? The PRESIDING OFFICER. Is there a the nuclear waste in 1998, whether or The PRESIDING OFFICER. They sufficient second? There is a sufficient not a repository is ready. Damages for have 33 seconds. second. The yeas and nays were or- the Department of Energy’s failure to Mr. REID. I ask the Chair to advise dered. perform are going to cost the American the Senator when I have used 2 min- AMENDMENT NO. 26 taxpayer tens of billions of dollars. utes. The PRESIDING OFFICER. The bill Now, the administration says that S. Members of the Senate, you have is open to further amendment. If there 104 would effectively establish Nevada seen bad legislation in your day, but S3138 CONGRESSIONAL RECORD — SENATE April 15, 1997 this is the worst. S. 104, as written, was ready to do that. This legislation re- we need to have the utmost confidence bad. S. 104 in the substitute form is jects that standard and proposes a lim- in the way we choose to dispose of just as bad. People like Senator BINGA- itation on the ability of the National spent fuel. MAN have tried to improve this legisla- Academy of Sciences and the EPA to When we began to consider the Nu- tion. Senator BINGAMAN worked very develop the standard that would pro- clear Waste Policy Act of 1997, I was hard. They tinkered with the edges. vide minimal protections for health optimistic about our ability to work The proponents tried to pacify Senator and safety. toward the common goal of providing BINGAMAN and others, and the legisla- The third point that needs to be guidance on this issue. Supporters of tion was not improved upon with their made is that the Nevada test site is fre- the bill made an extremely credible tinkering. quently referenced. That is the pro- case to me that something needs to be This legislation is bad in its sub- posed site for the alternative storage, done. The Nuclear Waste Act of 1982 set stitute form and in its amended form. the interim storage. No study has ever up a trust fund to help pay for the cost They have failed to deal with the been made that would indicate that the of a permanent geologic repository. As transportation system at all. They Nevada test site is either desirable or part of the deal, the Department of En- haven’t dealt with it. In Germany, in suitable as an interim storage facility. ergy was directed to contract with util- recent months, they tried to move six The fourth point I make is that this ities to accept spent fuel at a perma- casks. They called out 30,000 police to legislation, in fact, preempts laws in nent repository by 1998, but now it can- take care of that—30,000. There were my own State, unlike it does any other not. The Nation’s nuclear reactors 170 people injured and 500 arrested. It State in America. The environmental have begun to run out of space for cost $150 million to move it less than protection laws are essentially dele- spent fuel in pools at reactor sites. 300 miles. The German parliament is gated to the States with their ability Soon, more and more utilities will have reconsidering the program. There is to enforce. This legislation would pre- to build above ground storage casks. I nothing in this legislation to allow it empt that ability. So in Nevada we am sympathetic to the frustrations ex- to be carried through your State safe- could not enforce clean air, clean pressed by State governments and util- ly. Every environmental group in water, safe drinking, RCRA, and other ities over this breach. I am sure many America opposes this legislation. provisions. of my colleagues agree with me. The terrorism possibilities with this The fifth point is that the National Another issue that demands atten- legislation are replete, as we laid out Environmental Policy Act is gutted by tion is the Nuclear Waste Fund. Con- on the floor yesterday. The Washington the provisions. It is bad legislation. I gress has established 172 trust funds fi- Post is only one newspaper that said urge my colleagues to reject it, and I nanced by taxpayers for specific pur- ‘‘don’t do it.’’ Many newspapers reserve the remainder of my time. poses. Few have maintained their in- throughout the country have said Mr. CRAIG addressed the Chair. tegrity in the spending process. The ‘‘don’t do it.’’ The PRESIDING OFFICER. The Sen- Nuclear Waste Fund is one of the few The President is going to veto this ator from Idaho. where the Government entered into an because it is bad legislation, as agreed Mr. CRAIG. Mr. President, the sky is actual contract to perform a duty—to upon by his Secretary of Energy, head not falling. The National Academy of take on spent nuclear fuel by a time of the EPA, and by the Council of Envi- Science adopts standards and EPA uses certain. Considering the history of this ronmental Quality. We picked a sci- them. That is in the bill. Save $25 to issue, I am opposed to the idea that entific group to give us insight and $30 billion. Honor our commitment ratepayers, who have already contrib- oversight of this legislation. They have since 1982 to abide by the law and the uted over $12 billion to the Nuclear told us that this legislation is bad. We, contracts of our Government and the Waste Fund for the construction of a the Congress chartered these sci- Federal court and find a single, safe re- permanent repository, should also have entists. They are not from Nevada. pository for nuclear waste. This is the the cost of on-site storage passed on to They are bipartisan scientists, and number one environmental bill this them. Louisianians have paid over $140 they said the legislation is bad. year, if you are concerned about 80 The United Transportation Union sites spread across this country. The million into this fund since 1982, with doesn’t like the legislation. Doctors op- issue is good policy. S. 104 is good law. no results. This is unacceptable. The pose this legislation. Churches, like the The Senate ought to support it unani- public should be getting its money’s Lutheran Church and the Baptist min- mously. worth. Otherwise, the money should istry oppose this legislation. A group of The PRESIDING OFFICER. The op- not be spent. environmentalists who deal with Na- ponents have 24 seconds. Conversely, and most importantly, I tive Americans in this country oppose Mr. BRYAN. Mr. President, let me am hesitant to commit to the con- this legislation. take 12 seconds. It is late in the game. struction of an interim storage facility This is bad legislation. If you want to Any Senator who believes we do not if there are uncertainties associated cast a good vote, vote against this. It is eviscerate and emasculate the stand- with the designated permanent reposi- a bad bill. ards set by the National Academy of tory site. So much rests on a decision I reserve the remainder of my time. Science, look at page 37, my friends. to place an interim site near Yucca The PRESIDING OFFICER. Who That is why no environmental organi- Mountain. Will we transport the waste yields time? Time will be charged zation in America supports it; they all more than once if Yucca Mountain is equally against both sides. oppose it. unsuitable? How wise is it to ignore Mr. BRYAN. Mr. President, what the Ms. LANDRIEU. Mr. President, as we this possible outcome? This body sev- Senate is asked to do this morning is a have engaged in this debate on the na- eral years ago requested a study from total repudiation and rejection of good tion’s strategy to deal with temporary the Nuclear Waste Technical Review science. S. 104 is opposed by the Nu- storage of high-level nuclear waste, I Board. Their findings were illustrative clear Waste Technical Review Board, a have come to several conclusions. Cer- of the complexity of this effort. It body of eminent scientists, created tainly storage is a troublesome issue seems that a particular element was pursuant to an act of Congress. They that has remained unresolved for the found in the exploratory tunnel at reviewed it last year in 1996 and last past 16 years. As time has gone by, it Yucca Mountain. This element is gen- year. They say two things. First, it is has become clearer and clearer that the erally present when there is fast flow- unnecessary. Second, it interferes with Nation needs a more comprehensive ing water in a location. No one ex- the citing process, which is currently strategy, not a piecemeal strategy, to pected this finding. Nor did anyone ex- taking place. We dismantle the envi- handle all the issues associated with pect the Board to determine that utili- ronmental laws in America if we enact long-term storage of nuclear waste. ties could go on safely storing nuclear this legislation. Furthermore, given the vehemently waste at reactor sites for another dec- In 1992, the Energy Efficiency Act di- strong opinions expressed by citizens, ade. Both these findings show that cer- rected the National Academy of administrators, State and local offi- tainties are hard to come by, even Sciences in conjunction with EPA to cials, and others who would be affected when from all indications, a clear out- develop a standard. They are about by a centralized storage plan, I believe come is expected. Mr. President, we April 15, 1997 CONGRESSIONAL RECORD — SENATE S3139 should not create a nuclear waste pol- age. There aren’t a lot of options when The bill, as passed, did not resolve all icy based on incomplete information. it comes to disposing of nuclear waste. of my concerns, but it did resolve most This issue is just too important. Either it stays on site, or it goes to a of them. For these reasons, I am unable at centralized storage facility. I support Mr. DODD. Mr. President, I would this time to support S. 104. I believe centralized storage of nuclear waste; like to say a few words about the Nu- that the rationale for a comprehensive however, I believe that the effects of clear Waste Policy Act of 1997. My approach to waste storage is evident. designating a central site must be con- State of Connecticut is heavily depend- The working process I have witnessed sidered before such a critical decision ent on nuclear power. I have long sup- over the last few weeks between the is reached. ported this energy source, and long leaders on this issue, if continued, The Department of Energy is com- been concerned about how to safely dis- could result in a measure that address- mitted to completing a viability study pose of its waste. es all of the concerns raised by indus- of Yucca Mountain as the permanent I support the need for a national, per- try, State and local administrators in- repository by the end of next year. manent, geological repository for nu- cluding tribes, and the administration. Until that study is completed, I feel clear waste, but I cannot support the I have felt for some time that a com- strongly that there is no reason to go bill before us today. The Nuclear Waste promise on the provisions of S. 104 ex- forward with an interim facility at the Policy Act mandates construction of ists. In fact, a compromise was nearly nearby test site in Nevada. Under last an above-ground, interim storage facil- achieved. year’s bill, as well as the bill reported ity even before the scientific findings Mr. President, it is said that a rolling by the committee, the viability study on the permanent repository at Yucca stone gathers no moss. I submit that was disregarded. Site preparation and Mountain are completed. The Depart- we cannot afford to let moss grow. We construction would begin upon enact- ment of Energy has said that the via- need to adopt a clear policy sooner ment of the legislation. Senator BINGA- bility studies for Yucca Mountain rather than later on this question. I am MAN worked closely with Senator MUR- should be completed in 1998. disappointed that compromise could KOWSKI and the Energy Committee to I remain concerned that construction not be found at this time, but I urge address this issue. The committee sub- of an interim facility would effectively my colleagues to continue to work on stitute amendment specifically pre- stifle efforts to establish a permanent, finding solutions so that we can have a cludes any work, beyond generic de- geological repository. It is a costly and sensible nuclear waste policy for this sign, from going forward at the interim risky diversion from what should be Nation. site, before the viability study of our primary goal in this area: finding a In closing I will say that permanent Yucca Mountain is completed. I also safe, permanent place to store our na- storage of nuclear waste is something supported Senator BINGAMAN’s amend- tion’s nuclear waste. We have already that we need to do—we need to do it ment, which would have ensured that spent almost $5 billion on the perma- once and only once. It is of paramount the interim storage facility would not nent facility and it is not even fin- importance that it be done correctly become a de facto permanent reposi- ished. It is estimated that the interim and to the satisfaction of all. tory if Yucca Mountain were deemed to facility would cost an additional $2 bil- Mr. CHAFEE. Mr. President, I would be unsuitable. Regrettably, that lion. like to make a few remarks about S. amendment failed. While I was dis- Let me remind you that the interim 104, the Nuclear Waste Policy Act of appointed with the failure of this facility is above ground. If for any rea- 1997. amendment, it was not enough to cause Last year, I voted against S. 1936, the son the scientific assessments for me to vote against the bill. Simply put, Yucca Mountain are negative, either Nuclear Waste Policy Act of 1996 for I believe it is highly unlikely that the several reasons. I felt that the measure the interim facility would become the viability study will be negative. de facto permanent repository without rushed to build the interim site before The substitute also strengthens the the viability of the permanent site was establishing its suitability as such, or role of NEPA. Site preparation, con- the waste would have to be moved considered. Also, under last year’s bill, struction, and the use of the interim NEPA, the National Environmental again. Either alternative is unaccept- facility are no longer exempt from able. Policy Act, would not have applied NEPA. In fact, no construction at the until quite late in the game, after One of the main reasons that I can- interim site could proceed before an not support this bill, is my fear of what great time and resources had been ex- environmental impact statement is pended. It only would have applied to could happen if we must move the nu- completed by the Nuclear Regulatory clear waste multiple times. Let us not the licensing of the facility. It Commission. This is an enormous im- wouldn’t have applied to construction forget that transporting nuclear waste provement over last year’s bill, which is inherently risky and any accident or of the facility at all. Finally, the radi- disregarded NEPA at every step prior act of terrorism could prove disastrous. ation standards provided in S. 1936 to the licensing of the facility. were too lax, and EPA was virtually The process for setting standards to I do not want our communities in Con- shut out of the process of setting such protect the public from radiation at necticut and around the Nation to be standards. Last year’s bill was a take- the Yucca Mountain site also is a at risk because we acted imprudently. it-or-leave-it proposal, and I chose to marked improvement over previous The supporters of this bill have tried leave it. measures. Rather than setting an arbi- to assure us that transporting nuclear When S. 104 was reported by the En- trary statutory standard, the sub- waste is safe, and that environmental ergy Committee earlier this year, I had stitute incorporates recent rec- safeguards would be in place. I am con- every intention of opposing the Nu- ommendations made by the National vinced that this bill does not ade- clear Waste Policy Act, S. 104, again. Academy of Sciences in setting an quately protect public health and safe- But this year, the Energy Committee overall radiation standard for the re- ty and that too many environmental has worked hard to address the con- pository. laws are weakened. cerns that were raised about last year’s Let me close by saying that the argu- In fact, this bill restricts the Envi- proposal. After reviewing the changes ments on both sides of this issue have ronmental Protection Agency’s [EPA] made in the Murkowski substitute been persuasive. I want to recognize ability to set a drinking water stand- amendment, I have decided to vote in the undaunted persistence of Senators ard at the nuclear waste repository. favor of the bill before us. While it is BRYAN and REID in articulating the po- Let me remind you that last Congress not perfect, the substitute is a signifi- tential implications of the bill and in the Senate passed the Safe Drinking cant improvement over last year’s bill arguing relentlessly for the interests of Water amendments by a resounding and this year’s bill as reported by the Nevada. I also want to commend Sen- vote of 98–0. Clearly, upholding Federal Energy Committee. Is it a perfect bill? ator MURKOWSKI for his hard work and drinking water standards should be a Not at all, but it is a far more reason- determination. Senator MURKOWSKI priority in Nevada no less than in Con- able solution to a terribly difficult sit- ably managed this very complex meas- necticut. EPA is further restricted in uation than we have ever had before. ure and was willing to accept sugges- its ability to adequately protect the Years ago, Congress rejected reproc- tions and changes from other Senators population from radiation emissions. essing as an alternative to waste stor- that vastly improved the bill. Granted, EPA can continue to set the S3140 CONGRESSIONAL RECORD — SENATE April 15, 1997 annual acceptable dose limit for radi- waste throughout Connecticut and our The clerk will call the roll. ation exposure, but the bill remains country. The legislative clerk called the roll. vague on any further action that EPA There being no objection, the edi- Mr. FORD. I announce that the Sen- could take to protect the public health torial was ordered to be printed in the ator from West Virginia [Mr. ROCKE- and safety from dangerous emission RECORD, as follows: FELLER] is necessarily absent. levels. Furthermore, language in the NAGGING NUCLEAR-WASTE PROBLEM I further announce that, if present bill is so vague that it is unclear America’s difficulty in finding a solution and voting, the Senator from West Vir- whether compliance with the Clean to permanent storage for nuclear waste isn’t ginia [Mr. ROCKEFELLER] would vote Water Act or the Clean Air Act would confined to these shores. Europe is in an up- ‘‘nay.’’ be required. roar about the same issue. A salt mine in the The PRESIDING OFFICER. Are there It seems to me that threatening pub- German town of Gorleben has been chosen as any other Senators in the Chamber de- an interim storage disposal facility for Ger- lic health and safety is the price of ex- man nuclear waste. The decision sparked siring to vote? pediency. State laws that could slow widespread protests. The result was announced—yeas 65, the process of interim storage are sim- Adding outrage to the protests was the de- nays 34, as follows: ply preempted. The National Environ- railment of a train carrying casks holding [Rollcall Vote No. 42 Leg.] mental Policy Act [NEPA], passed by radioactive material bound for the site. The YEAS—65 Congress in 1969, establishes an envi- casks weren’t harmed. But the accident il- lustrated the point of opponents, which is Abraham Grams McConnell ronmental impact process for major Allard Grassley Moseley-Braun Federal projects, like Yucca Mountain. that radiation shouldn’t be shipped all over Ashcroft Gregg Murkowski Europe. The goal of the environmental impact Bennett Hagel Murray The Senate Energy Committee is set to Bond Harkin Nickles process is to look at all alternatives to vote on a similar interim-storage facility for Brownback Hatch Robb ensure that the most environmentally America, designating Yucca Mountain, Nev., Burns Helms Roberts sound alternative is chosen. This bill for that distinction. The president has Chafee Hollings Roth severely restricts the NEPA decision- threatened to veto such a bill if it reaches Cleland Hutchinson Santorum his desk. Cochran Hutchison Sessions making process regarding transpor- Collins Inhofe Shelby tation and the design of either reposi- WAITING MAKES SENSE Coverdell Jeffords Smith (NH) tory. In effect, the public has no role in President Bill Clinton is right. Although Craig Johnson Smith (OR) D’Amato Kempthorne Snowe the decision-making process. the country needs a site for nuclear waste, and an interim storage facility is appealing, DeWine Kohl Specter Now, I would like to clarify a few Domenici Kyl Stevens it probably makes more sense to wait until a statements that have been made during Enzi Leahy Thomas permanent facility is approved. Faircloth Levin Thompson this debate regarding the State of Con- Many safety advocates believe that waste Frist Lott Thurmond necticut. should not be sent to Yucca Mountain unless Gorton Lugar Warner I recognize the importance of safely the facility is designated as suitable to hold Graham Mack Wyden storing nuclear waste and the impact the material long-term. Otherwise, oppo- Gramm McCain this has on my State. It has been said nents say, if the site is ultimately found to NAYS—34 that the situation in Connecticut is ur- be unsuitable, waste will have to be shipped out again. It doesn’t make any sense to have Akaka Daschle Landrieu gent. However, it is my understanding Baucus Dodd Lautenberg nuclear waste from 109 plants shipped all that there is sufficient capacity. The Biden Dorgan Lieberman over the country unless it can be shipped Bingaman Durbin Mikulski fuel pool at one of the facilities in my once, stored * * *. Boxer Feingold Moynihan State should be able to accommodate So far, though, the political process has Breaux Feinstein Reed waste from the other reactors until the been maddeningly inadequate to handle this Bryan Ford Reid end of their licenses and well into the touchy subject. Congress for years has forced Bumpers Glenn Sarbanes the nuclear industry to pay billions to help Byrd Inouye Torricelli next century. Decisions concerning the Campbell Kennedy Wellstone build a storage facility that was supposed to fourth facility, Connecticut Yankee, Coats Kerrey be up and running by the end of this century. Conrad Kerry await a final decommissioning plan. Instead, that facility won’t open for at least Last week, my colleague from Alas- a decade. In the meantime, all over the coun- NOT VOTING—1 ka, Mr. MURKOWSKI, mentioned a Hart- try nuclear plants’ 40-foot-deep, spent-fuel Rockefeller ford Courant editorial that, I might pools are filling up with spent nuclear waste. The bill (S. 104), as amended, was say, only marginally supported the The pools were never designed for long-term passed, as follows: bill. In fact, I believe the editorial was storage. entitled, ‘‘The Lesser of Two Evils’’— It might make more sense to rebate to the S. 104 hardly a rousing endorsement. industry some of the many millions it has Be it enacted by the Senate and House of Rep- Mr. President, I ask unanimous con- sent to the government to spend on other resentatives of the United States of America in things while Congress and the Energy De- sent that there be printed in the Congress assembled, That the Nuclear Waste partment delayed building a waste facility. Policy Act of 1982 is amended to read as fol- RECORD another Connecticut editorial. With the money, the nuclear plants can put lows: This one is from the New London Day, their spent fuel rods in dry-cask storage, ‘‘SECTION 1. SHORT TITLE AND TABLE OF CON- a newspaper located in the southeast- considered an expensive but extremely safe TENTS. ern part of Connecticut, just down the method of storing nuclear fuel. ‘‘(a) SHORT TITLE.—This Act may be cited road from three of our nuclear reac- The typical ‘‘cask’’ for such a task is 18 as the ‘Nuclear Waste Policy Act of 1997’. 1 tors. The editorial, entitled, ‘‘Nagging feet long, 8 ⁄2 feet in diameter and made of ‘‘(b) TABLE OF CONTENTS.— concrete. It weighs 90 tons fully loaded and Nuclear Waste Problem,’’ states that ‘‘Sec. 1. Short title and table of contents. holds anywhere from nine to 25 fuel rods. ‘‘Sec. 2. Definitions. ‘‘Many safety advocates believe that This type of storage is considered safer than waste should not be sent to Yucca spent-fuel pools, because the pools have been ‘‘TITLE I—OBLIGATIONS Mountain unless the facility is des- known to leak occasionally, risking exposure ‘‘Sec. 101. Obligations of the Secretary of ignated as suitable to hold the mate- of the fuel. Energy. rial long-term.’’ The editorial goes on The best of all possible worlds would be for ‘‘TITLE II—INTEGRATED MANAGEMENT to say that, ‘‘Otherwise, opponents say, our political system to prove adequate to SYSTEM if the site is ultimately found to be un- such thorny problems as nuclear waste. So ‘‘Sec. 201. Intermodal transfer. far, such has not been the case. So the safest ‘‘Sec. 202. Transportation planning. suitable, waste will have to be shipped interim solution must be sought. With 109 out again. It doesn’t make any sense to ‘‘Sec. 203. Transportation requirements. plants around the country, shipping waste to ‘‘Sec. 204. Viability assessment and Presi- have nuclear waste from 109 plants a temporary facility seems short-sighted. dential determination shipped all over the country unless it Better to choose the safest temporary solu- ‘‘Sec. 205. Interim storage facility. can be shipped once.’’ tion, and work for a permanent answer. ‘‘Sec. 206. Permanent repository. Mr. President, I concur with the ra- The PRESIDING OFFICER. All time ‘‘Sec. 207. Compliance with the National En- tionale of the New London Day. We has expired. The yeas and nays have vironmental Policy Act. should wait for scientific verification been ordered. ‘‘Sec. 208. Land withdrawal. of Yucca Mountain as a permanent The question occurs on final passage ‘‘TITLE III—LOCAL RELATIONS storage site, before shipping nuclear of S. 104, as amended. ‘‘Sec. 301. Financial assistance. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3141 ‘‘Sec. 302. On-Site Representative. ‘‘(E) Defense nuclear waste and materials cluding any Alaska Native village, as defined ‘‘Sec. 303. Acceptance of benefits. byproducts management. in section 3(c) of the Alaska Native Claims ‘‘Sec. 304. Restrictions on use of funds. ‘‘(F) Defense nuclear materials security Settlement Act (43 U.S.C. 1602(c)). ‘‘Sec. 305. Land conveyances. and safeguards and security investigations. ‘‘(17) INTEGRATED MANAGEMENT SYSTEM.— ‘‘TITLE IV—FUNDING AND ‘‘(G) Defense research and development. The term ‘integrated management system’ ORGANIZATION ‘‘(5) CIVILIAN NUCLEAR POWER REACTOR.— means the system developed by the Sec- The term ‘civilian nuclear power reactor’ retary for the acceptance, transportation, ‘‘Sec. 401. Program funding. means a civilian nuclear power plant re- storage, and disposal of spent nuclear fuel ‘‘Sec. 402. Office of Civilian Radioactive quired to be licensed under section 103 or 104 and high-level radioactive waste under title Waste Management. b. of the Atomic Energy Act of 1954 (42 U.S.C. II of this Act. ‘‘Sec. 403. Federal contribution. 2133, 2134(b)). ‘‘(18) INTERIM STORAGE FACILITY.—The term ‘‘TITLE V—GENERAL AND ‘‘(6) COMMISSION.—The term ‘Commission’ ‘interim storage facility’ means a facility de- MISCELLANEOUS PROVISIONS means the Nuclear Regulatory Commission. signed and constructed for the receipt, han- ‘‘Sec. 501. Compliance with other laws. ‘‘(7) CONTRACTS.—The term ‘contracts’ dling, possession, safeguarding, and storage ‘‘Sec. 502. Judicial review of agency actions. means the contracts, executed prior to the of spent nuclear fuel and high-level radio- ‘‘Sec. 503. Licensing of facility expansions date of enactment of the Nuclear Waste Pol- active waste in accordance with title II of and transshipments. icy Act of 1997, under section 302(a) of the this Act. ‘‘Sec. 504. Siting a second repository. Nuclear Waste Policy Act of 1982, by the Sec- ‘‘(19) INTERIM STORAGE FACILITY SITE.—The ‘‘Sec. 505. Financial arrangements for low- retary and any person who generates or term ‘interim storage facility site’ means level radioactive waste site clo- holds title to spent nuclear fuel or high-level the specific site within Area 25 of the Nevada sure. radioactive waste of domestic origin for ac- Test Site that is designated by the Secretary ‘‘Sec. 506. Nuclear Regulatory Commission ceptance of such waste or fuel by the Sec- and withdrawn and reserved in accordance training authority. retary and the payment of fees to offset the with this Act for the location of the interim ‘‘Sec. 507. Emplacement schedule. Secretary’s expenditures, and any subse- storage facility. ‘‘Sec. 508. Transfer of title. quent contracts executed by the Secretary ‘‘(20) LOW-LEVEL RADIOACTIVE WASTE.—The ‘‘Sec. 509. Decommissioning Pilot Program. pursuant to section 401(a) of this Act. term ‘low-level radioactive waste’ means ra- ‘‘Sec. 510. Water rights. ‘‘(8) CONTRACT HOLDERS.—The term ‘con- dioactive material that— ‘‘TITLE VI—NUCLEAR WASTE TECHNICAL tract holders’ means parties (other than the ‘‘(A) is not spent nuclear fuel, high-level REVIEW BOARD Secretary) to contracts. radioactive waste, transuranic waste, or by- ‘‘(9) DEPARTMENT.—The term ‘Department’ product material as defined in section 11 e.(2) ‘‘Sec. 601. Definitions. means the Department of Energy. of the Atomic Energy Act of 1954 (42 U.S.C. ‘‘Sec. 602. Nuclear Waste Technical Review ‘‘(10) DISPOSAL.—The term ‘disposal’ means 2014(e)(2)); and Board. the emplacement in a repository of spent nu- ‘‘(B) the Commission, consistent with ex- ‘‘Sec. 603. Functions. clear fuel, high-level radioactive waste, or isting law, classifies as low-level radioactive ‘‘Sec. 604. Investigatory powers. other highly radioactive material with no waste. ‘‘Sec. 605. Compensation of members. foreseeable intent of recovery, whether or ‘‘(21) METRIC TONS URANIUM.—The terms ‘‘Sec. 606. Staff. not such emplacement permits recovery of ‘metric tons uranium’ and ‘MTU’ means the ‘‘Sec. 607. Support services. such material for any future purpose. amount of uranium in the original ‘‘Sec. 608. Report. ‘‘(11) DISPOSAL SYSTEM.—The term ‘dis- unirradiated fuel element whether or not the ‘‘Sec. 609. Authorization of appropriations. posal system’ means all natural barriers and spent nuclear fuel has been reprocessed. ‘‘Sec. 610. Termination of the board. engineered barriers, and engineered systems ‘‘(22) NUCLEAR WASTE FUND.—The terms ‘‘TITLE VII—MANAGEMENT REFORM and components, that prevent the release of ‘Nuclear Waste Fund’ and ‘waste fund’ mean ‘‘Sec. 701. Management reform initiatives. radionuclides from the repository. the nuclear waste fund established in the ‘‘Sec. 702. Reporting. ‘‘(12) EMPLACEMENT SCHEDULE.—The term United States Treasury prior to the date of ‘‘TITLE VIII—MISCELLANEOUS ‘emplacement schedule’ means the schedule enactment of this Act under section 302(c) of established by the Secretary in accordance the Nuclear Waste Policy Act of 1982. ‘‘Sec. 801. Sense of the Senate. with section 507(a) for emplacement of spent ‘‘(23) OFFICE.—The term ‘Office’ means the ‘‘Sec. 802. Effective date. nuclear fuel and high-level radioactive waste Office of Civilian Radioactive Waste Manage- ‘‘SEC. 2. DEFINITIONS. at the interim storage facility. ment established within the Department ‘‘For purposes of this Act: ‘‘(13) ENGINEERED BARRIERS AND ENGI- prior to the date of enactment of this Act ‘‘(1) ACCEPT, ACCEPTANCE.—The terms ‘ac- NEERED SYSTEMS AND COMPONENTS.—The under the provisions of the Nuclear Waste cept’ and ‘acceptance’ mean the Secretary’s terms ‘engineered barriers’ and ‘engineered Policy Act of 1982. act of taking possession of spent nuclear fuel systems and components’, mean man-made ‘‘(24) PROGRAM APPROACH.—The term ‘pro- or high-level radioactive waste. components of a disposal system. These gram approach’ means the Civilian Radio- ‘‘(2) AFFECTED INDIAN TRIBE.—The term ‘af- terms include the spent nuclear fuel or high- active Waste Management Program Plan, fected Indian tribe’ means any Indian tribe— level radioactive waste form, spent nuclear dated May 6, 1996, as modified by this Act, ‘‘(A) whose reservation is surrounded by or fuel package or high-level radioactive waste and as amended from time to time by the borders an affected unit of local government, package, and other materials placed over and Secretary in accordance with this Act. or around such packages. ‘‘(25) REPOSITORY.—The term ‘repository’ ‘‘(B) whose federally defined possessory or ‘‘(14) HIGH-LEVEL RADIOACTIVE WASTE.—The means a system designed and constructed usage rights to other lands outside of the term ‘high-level radioactive waste’ means— under title II of this Act for the geologic dis- reservation’s boundaries arising out of con- ‘‘(A) the highly radioactive material re- posal of spent nuclear fuel and high-level ra- gressionally ratified treaties may be sub- sulting from the reprocessing of spent nu- dioactive waste, including both surface and stantially and adversely affected by the lo- clear fuel, including liquid waste produced subsurface areas at which spent nuclear fuel cating of an interim storage facility or a re- directly in reprocessing and any solid mate- and high-level radioactive waste receipt, pository if the Secretary of the Interior rial derived from such liquid waste that con- handling, possession, safeguarding, and stor- finds, upon the petition of the appropriate tains fission products in sufficient con- age are conducted. governmental officials of the tribe, that such centrations; and ‘‘(26) SECRETARY.—The term ‘Secretary’ effects are both substantial and adverse to ‘‘(B) other highly radioactive material that means the Secretary of Energy. the tribe. the Commission, consistent with existing ‘‘(27) SITE CHARACTERIZATION.—The term ‘‘(3) AFFECTED UNIT OF LOCAL GOVERN- law, determines by rule requires permanent ‘site characterization’ means activities, MENT.—The term ‘affected unit of local gov- isolation, which includes any low-level ra- whether in a laboratory or in the field, un- ernment’ means the unit of local government dioactive waste with concentrations of radio- dertaken to establish the geologic condition with jurisdiction over the site of a repository nuclides that exceed the limits established and the ranges of the parameters of a can- or interim storage facility. Such term may, by the Commission for class C radioactive didate site relevant to the location of a re- at the discretion of the Secretary, include waste, as defined by section 61.55 of title 10, pository, including borings, surface exca- other units of local government that are con- Code of Federal Regulations, as in effect on vations, excavations of exploratory facili- tiguous with such unit. January 26, 1983. ties, limited subsurface lateral excavations ‘‘(4) ATOMIC ENERGY DEFENSE ACTIVITY.— ‘‘(15) FEDERAL AGENCY.—The term ‘Federal and borings, and in situ testing needed to The term ‘atomic energy defense activity’ agency’ means any Executive agency, as de- evaluate the licensability of a candidate site means any activity of the Secretary per- fined in section 105 of title 5, United States for the location of a repository, but not in- formed in whole or in part in carrying out Code. cluding preliminary borings and geophysical any of the following functions: ‘‘(16) INDIAN TRIBE.—The term ‘Indian testing needed to assess whether site charac- ‘‘(A) Naval reactors development. tribe’ means any Indian tribe, band, nation, terization should be undertaken. ‘‘(B) Weapons activities including defense or other organized group or community of ‘‘(28) SPENT NUCLEAR FUEL.—The term inertial confinement fusion. Indians recognized as eligible for the services ‘spent nuclear fuel’ means fuel that has been ‘‘(C) Verification and control technology. provided to Indians by the Secretary of the withdrawn from a nuclear reactor following ‘‘(D) Defense nuclear materials production. Interior because of their status as Indians in- irradiation, the constituent elements of S3142 CONGRESSIONAL RECORD — SENATE April 15, 1997 which have not been separated by reprocess- development of each component of the inte- sites and rights-of-way to be acquired under ing. grated management system, and in so doing this subsection; and ‘‘(29) STORAGE.—The term ‘storage’ means shall seek to utilize effective private sector ‘‘(2) file copies of a map of such sites and retention of spent nuclear fuel or high-level management and contracting practices. rights-of-way with the Congress, the Sec- radioactive waste with the intent to recover ‘‘(e) PRIVATE SECTOR PARTICIPATION.—In retary of the Interior, the State of Nevada, such waste or fuel for subsequent use, proc- administering the Integrated Management the Archivist of the United States, the Board essing, or disposal. System, the Secretary shall, to the maxi- of Lincoln County Commissioners, the Board ‘‘(30) WITHDRAWAL.—The term ‘withdrawal’ mum extent possible, utilize, employ, pro- of Nye County Commissioners, and the has the same definition as that set forth in cure and contract with, the private sector to Caliente City Council. section 103(j) of the Federal Land Policy and fulfill the Secretary’s obligations and re- Management Act of 1976 (43 U.S.C. 1702(j)). quirements under this Act. Such map and legal description shall have the same force and effect as if they were in- ‘‘(31) YUCCA MOUNTAIN SITE.—The term ‘‘(f) PRE-EXISTING RIGHTS.—Nothing in this ‘Yucca Mountain site’ means the area in the Act is intended to or shall be construed to cluded in this Act. The Secretary may cor- State of Nevada that is withdrawn and re- modify— rect clerical and typographical errors and served in accordance with this Act for the lo- ‘‘(1) any right of a contract holder under legal descriptions and make minor adjust- cation of a repository. section 302(a) of the Nuclear Waste Policy ments in the boundaries. ‘‘(32) ADMINISTRATOR.—The term ‘Adminis- Act of 1982, or under a contract executed ‘‘(f) IMPROVEMENTS.—The Secretary shall trator’ means the Administrator of the Envi- prior to the date of enactment of this Act make improvements to existing roadways se- ronmental Protection Agency. under that section; or lected for heavy-haul truck transport be- ‘‘(33) SUITABLE.—The term ‘suitable’ means ‘‘(2) obligations imposed upon the Federal tween Caliente, Nevada, and the interim that there is reasonable assurance that the Government by the United States District storage facility site as necessary to facili- site features of a repository and the engi- Court of Idaho in an order entered on Octo- tate year-round safe transport of spent nu- neered barriers contained therein will allow ber 17, 1995 in United States v. Batt (No. 91– clear fuel and high-level radioactive waste. the repository, as an overall system, to pro- 0054–S–EJL). IABILITY.—Subject to subsection (f), ‘‘(g) LOCAL GOVERNMENT INVOLVEMENT.— vide containment and isolation of radio- ‘‘(g) L nothing in this Act shall be construed to The Commission shall enter into a Memoran- nuclides sufficient to meet applicable stand- subject the United States to financial liabil- dum of Understanding with the City of ards for protection of public health and safe- ity for the Secretary’s failure to meet any Caliente and Lincoln County, Nevada, to pro- ty. deadline for the acceptance or emplacement vide advice to the Commission regarding ‘‘TITLE I—OBLIGATIONS of spent nuclear fuel or high-level radio- intermodal transfer and to facilitate on-site ‘‘SEC. 101. OBLIGATIONS OF THE SECRETARY OF active waste for storage or disposal under representation. Reasonable expenses of such ENERGY. this Act. representation shall be paid by the Sec- ‘‘(a) DISPOSAL.—The Secretary shall de- ‘‘TITLE II—INTEGRATED MANAGEMENT retary. velop and operate an integrated management SYSTEM ‘‘(h) BENEFITS AGREEMENT.— system for the storage and permanent dis- ‘‘SEC. 201. INTERMODAL TRANSFER. ‘‘(1) IN GENERAL.—The Secretary shall offer posal of spent nuclear fuel and high-level ra- ‘‘(a) ACCESS.—The Secretary shall utilize to enter into an agreement with the City of dioactive waste. heavy-haul truck transport to move spent Caliente and Lincoln County, Nevada con- ‘‘(b) INTERIM STORAGE.—The Secretary nuclear fuel and high-level radioactive waste cerning the integrated management system. shall store spent nuclear fuel and high-level from the mainline rail line at Caliente, Ne- ‘‘(2) AGREEMENT CONTENT.—Any agreement radioactive waste from facilities designated vada, to the interim storage facility site. shall contain such terms and conditions, in- by contract holders at an interim storage fa- ‘‘(b) CAPABILITY DATE.—The Secretary cluding such financial and institutional ar- cility pursuant to section 205 in accordance shall develop the capability to commence rangements, as the Secretary and agreement with the emplacement schedule, beginning rail to truck intermodal transfer at Caliente, entity determine to be reasonable and appro- no later than 18 months after issuance of a Nevada, no later than 18 months after issu- priate and shall contain such provisions as license for an interim storage facility under ance of a license under section 205(g) for an are necessary to preserve any right to par- section 205(g). interim storage facility designated under ticipation or compensation of the City of ‘‘(c) TRANSPORTATION.—The Secretary shall section 204(c)(1). Intermodal transfer and re- provide for the transportation of spent nu- Caliente and Lincoln County, Nevada. lated activities are incidental to the inter- MENDMENT.—An agreement entered clear fuel and high-level radioactive waste ‘‘(3) A state transportation of spent nuclear fuel into under this subsection may be amended accepted by the Secretary. The Secretary and high-level radioactive waste. only with the mutual consent of the parties shall procure all systems and components ‘‘(c) ACQUISITIONS.—The Secretary shall ac- to the amendment and terminated only in necessary to transport spent nuclear fuel and quire lands and rights-of-way necessary to accordance with paragraph (4). high-level radioactive waste from facilities commence intermodal transfer at Caliente, ‘‘(4) TERMINATION.—The Secretary shall designated by contract holders to and among Nevada. terminate the agreement under this sub- facilities comprising the Integrated Manage- ‘‘(d) REPLACEMENTS.—The Secretary shall section if any major element of the inte- ment System. Consistent with the Buy acquire and develop on behalf of, and dedi- grated management system may not be com- American Act (41 U.S.C. 10a–10c), unless the cate to, the City of Caliente, Nevada, parcels pleted. Secretary shall determine it to be inconsist- of land and right-of-way within Lincoln ‘‘(5) LIMITATION.—Only 1 agreement may be ent with the public interest, or the cost to be County, Nevada, as required to facilitate re- in effect at any one time. unreasonable, all such systems and compo- placement of land and city wastewater dis- ‘‘(6) JUDICIAL REVIEW.—Decisions of the nents procured by the Secretary shall be posal facilities necessary to commence inter- Secretary under this section are not subject manufactured in the United States, with the modal transfer pursuant to this Act. Re- to judicial review. exception of any transportable storage sys- placement of land and city wastewater dis- tems purchased by contract holders prior to posal activities shall occur no later than 2 ‘‘(i) CONTENT OF AGREEMENT.— the effective date of the Nuclear Waste Pol- years after the effective date of this section. ‘‘(1) SCHEDULE.—In addition to the benefits icy Act of 1997 and procured by the Secretary ‘‘(e) NOTICE AND MAP.—No later than 6 to which the City of Caliente and Lincoln from such contract holders for use in the in- months after the effective date of this sec- County is entitled to under this title, the tegrated management system. tion, the Secretary shall— Secretary shall make payments under the ‘‘(d) INTEGRATED MANAGEMENT SYSTEM.— ‘‘(1) publish in the Federal Register a no- benefits agreement in accordance with the The Secretary shall expeditiously pursue the tice containing a legal description of the following schedule: BENEFITS SCHEDULE (amounts in millions)

Event Payment

(A) Annual payments prior to first receipt of spent fuel ...... $2.5 (B) Annual payments beginning upon first spent fuel receipt ...... $5 (C) Payment upon closure of the intermodal transfer facility ...... $5 April 15, 1997 CONGRESSIONAL RECORD — SENATE S3143

‘‘(2) DEFINITIONS.—For purposes of this sec- ‘‘(3) CONSTRUCTION.—The maps and legal (d) (unless the Secretary certifies in the plan tion, the term— descriptions of special conveyances referred that the State or tribal government has ‘‘(A) ‘spent fuel’ means high-level radio- to in paragraph (2) shall have the same force failed to cooperate in fully integrating the active waste or spent nuclear fuel; and and effect as if they were included in this shipping campaign transportation plan with ‘‘(B) ‘first spent fuel receipt’ does not in- Act. The Secretary may correct clerical and the applicable State or tribal government clude receipt of spent fuel or high-level ra- typographical errors in the maps and legal plans); and dioactive waste for purposes of testing or descriptions and make minor adjustments in ‘‘(B) be consistent with the principles and operational demonstration. the boundaries of the sites. procedures developed for the safe transpor- ‘‘(3) ANNUAL PAYMENTS.—Annual payments ‘‘(4) EVIDENCE OF TITLE TRANSFER.—Upon tation of transuranic waste to the Waste Iso- prior to first spent fuel receipt under para- the request of the County of Lincoln, Ne- lation Pilot Plant (unless the Secretary cer- graph (1)(A) shall be made on the date of exe- vada, the Secretary of the Interior shall pro- tifies in the plan that a specific principle or cution of the benefits agreement and there- vide evidence of title transfer. procedure is inconsistent with a provision of after on the anniversary date of such execu- ‘‘(k) This section shall become effective on this Act). tion. Annual payments after the first spent the date on which the Secretary submits a li- ‘‘(d) SAFE SHIPPING ROUTES AND MODES.— fuel receipt until closure of the facility cense application under section 205 for an in- ‘‘(1) IN GENERAL.—The Secretary shall under paragraph (1)(C) shall be made on the terim storage facility at a site designated evaluate the relative safety of the proposed anniversary date of such first spent fuel re- under section 204(c)(1). shipping routes and shipping modes from ceipt. ‘‘SEC. 202. TRANSPORTATION PLANNING. each shipping origin to the interim storage ‘‘(4) REDUCTION.—If the first spent fuel pay- ‘‘(a) TRANSPORTATION READINESS.—The facility or repository compared with the ment under paragraph (1)(B) is made within Secretary— safety of alternative modes and routes. 6 months after the last annual payment prior ‘‘(1) shall take such actions as are nec- ‘‘(2) CONSIDERATIONS.—The evaluation to the receipt of spent fuel under paragraph essary and appropriate to ensure that the under paragraph (1) shall be conducted in a (1)(A), such first spent fuel payment under Secretary is able to transport safely spent manner consistent with regulations promul- paragraph (1)(B) shall be reduced by an nuclear fuel and high-level radioactive waste gated by the Secretary of Transportation amount equal to 1/12 of such annual payment from sites designated by the contract holders under authority of chapter 51 of title 49, under paragraph (1)(A) for each full month to mainline transportation facilities and United States Code, and the Nuclear Regu- less than 6 that has not elapsed since the last from the mainline transportation facilities latory Commission under authority of the annual payment under paragraph (1)(A). to the interim storage facility or repository, Atomic Energy Act of 1954 (42 U.S.C. 2011 et ‘‘(5) RESTRICTIONS.—The Secretary may using routes that minimize, to the maximum seq.), as applicable. not restrict the purposes for which the pay- practicable extent consistent with Federal ‘‘(3) DESIGNATION OF PREFERRED SHIPPING ments under this section may be used. requirements governing transportation of ROUTE AND MODE.—Following the evaluation ‘‘(6) DISPUTE.—In the event of a dispute hazardous materials, transportation of spent under paragraph (1), the Secretary shall des- concerning such agreement, the Secretary nuclear fuel and high-level radioactive waste ignate preferred shipping routes and modes shall resolve such dispute, consistent with through populated areas; and from each civilian nuclear power reactor and this Act and applicable State law. ‘‘(2) not later than 24 months after the Sec- Department of Energy facility that stores ‘‘(7) CONSTRUCTION.—The signature of the retary submits a license application under spent nuclear fuel or other high-level defense Secretary on a valid benefits agreement section 205 for an interim storage facility waste. under this section shall constitute a commit- shall, in consultation with the Secretary of ‘‘(4) SELECTION OF PRIMARY SHIPPING ment by the United States to make pay- Transportation and affected States and ROUTE.—If the Secretary designates more ments in accordance with such agreement tribes, and after an opportunity for public than 1 preferred route under paragraph (3), under section 401(c)(2). comment, develop and implement a com- the Secretary shall select a primary route ‘‘(j) INITIAL LAND CONVEYANCES.— prehensive management plan that ensures after considering, at a minimum, historical ‘‘(1) CONVEYANCES OF PUBLIC LANDS.—One safe transportation of spent nuclear fuel and accident rates, population, significant haz- hundred and twenty days after enactment of high-level radioactive waste from the sites ards, shipping time, shipping distance, and this Act, all right, title and interest of the designated by the contract holders to the in- mitigating measures such as limits on the United States in the property described in terim storage facility site. speed of shipments. paragraph (2), and improvements thereon, to- ‘‘(b) TRANSPORTATION PLANNING.— ‘‘(5) USE OF PRIMARY SHIPPING ROUTE AND gether with all necessary easements for util- ‘‘(1) IN GENERAL.—In conjunction with the MODE.—Except in cases of emergency, for all ities and ingress and egress to such property, development of the logistical plan in accord- shipments conducted under this Act, the including, but not limited to, the right to ance with subsection (a), the Secretary shall Secretary shall cause the primary shipping improve those easements, are conveyed by update and modify, as necessary, the Sec- route and mode or State-designated alter- operation of law to the County of Lincoln, retary’s transportation institutional plans native route under chapter 51 of title 49, Nevada, unless the county notifies the Sec- to ensure that institutional issues are ad- United States Code, to be used. If a route is retary of the Interior or the head of such dressed and resolved on a schedule to support designated as a primary route for any reac- other appropriate agency in writing within the commencement of transportation of tor or Department of Energy facility, the 60 days of such date of enactment that it spent nuclear fuel and high-level radioactive Secretary may use that route to transport elects not to take title to all or any part of waste to the interim storage facility. spent nuclear fuel or high-level radioactive the property, except that any lands conveyed ‘‘(2) MATTERS TO BE ADDRESSED.—Among waste from any other reactor or Department to the County of Lincoln under this sub- other things, planning under paragraph (1) of Energy facility. section that are subject to a Federal grazing shall provide a schedule and process for ad- ‘‘(6) TRAINING AND TECHNICAL ASSISTANCE.— permit or lease or a similar federally granted dressing and implementing, as necessary— Following selection of the primary shipping permit or lease shall be conveyed between 60 ‘‘(A) transportation routing plans; routes, or State-designated alternative and 120 days of the earliest time the Federal ‘‘(B) transportation contracting plans; routes, the Secretary shall focus training agency administering or granting the permit ‘‘(C) transportation training in accordance and technical assistance under section 203(c) or lease would be able to legally terminate with section 203; on those routes. such right under the statutes and regula- ‘‘(D) public education regarding transpor- ‘‘(7) PREFERRED RAIL ROUTES.— tions existing at the date of enactment of tation of spent nuclear fuel and high-level ‘‘(A) REGULATION.—Not later than 1 year this Act, unless Lincoln County and the af- radioactive waste; and after the date of enactment of the Nuclear fected holder of the permit or lease negotiate ‘‘(E) transportation tracking programs. Waste Policy Act of 1997, the Secretary of an agreement that allows for an earlier con- ‘‘(c) SHIPPING CAMPAIGN TRANSPORTATION Transportation, pursuant to authority under veyance. PLANS.— other provisions of law, shall promulgate a ‘‘(2) SPECIAL CONVEYANCES.—Notwithstand- ‘‘(1) IN GENERAL.—The Secretary shall de- regulation establishing procedures for the se- ing any other law, the following public lands velop a transportation plan for the imple- lection of preferred routes for the transpor- depicted on the maps and legal descriptions mentation of each shipping campaign (as tation of spent nuclear fuel and nuclear dated October 11, 1995, shall be conveyed that term is defined by the Secretary) from waste by rail. under paragraph (1) to the County of Lin- each site at which high-level nuclear waste ‘‘(B) INTERIM PROVISION.—During the period coln, Nevada: is stored, consistent with the principles and beginning on the date of enactment of the Map 10: Lincoln County, Parcel M, Indus- procedures stated in Department of Energy Nuclear Waste Policy Act of 1997 and ending trial Park Site Order No. 460.2 and the Program Manager’s on the date of issuance of a final regulation Map 11: Lincoln County, Parcel F, Mixed Guide. under subparagraph (A), rail transportation Use Industrial Site ‘‘(2) REQUIREMENTS.—A shipping campaign of spent nuclear fuel and high-level radio- Map 13: Lincoln County, Parcel J, Mixed transportation plan shall— active waste shall be conducted in accord- Use, Alamo Community Expansion Area ‘‘(A) be fully integrated with State and ance with regulatory requirements in effect Map 14: Lincoln County, Parcel E, Mixed tribal government notification, inspection, on that date and with this section. Use, Pioche Community Expansion Area and emergency response plans along the pre- ‘‘SEC. 203. TRANSPORTATION REQUIREMENTS. Map 15: Lincoln County, Parcel B, Landfill ferred shipping route or State-designated al- ‘‘(a) PACKAGE CERTIFICATION.—No spent nu- Expansion Site. ternative route identified under subsection clear fuel or high-level radioactive waste S3144 CONGRESSIONAL RECORD — SENATE April 15, 1997 may be transported by or for the Secretary cause of an accident, or (ii) the refusal to ac- operated by a private entity or by the De- under this Act except in packages that have cept technical assistance by a State or In- partment of Energy. been certified for such purposes by the Com- dian tribe, or (iii) fraudulent actions which ‘‘(d) PUBLIC EDUCATION.—The Secretary mission. violate Federal law governing the expendi- shall conduct a program to educate the pub- ‘‘(b) STATE NOTIFICATION.—The Secretary ture of Federal funds. lic regarding the transportation of spent nu- shall abide by regulations of the Commission ‘‘(B) In the event the Secretary is required clear fuel and high-level radioactive waste, regarding advance notification of State and to transport spent fuel or high-level radio- with an emphasis upon those States, units of tribal governments prior to transportation active waste through a jurisdiction prior to local government, and Indian tribes through of spent nuclear fuel or high-level radio- 3 years after the provision of technical as- whose jurisdiction the Secretary plans to active waste under this Act. sistance or funds to such jurisdiction, the transport substantial amounts of spent nu- ‘‘(c) TECHNICAL ASSISTANCE.— Secretary shall, prior to such shipment, hold clear fuel or high-level radioactive waste. ‘‘(1) IN GENERAL.— ‘‘(e) COMPLIANCE WITH TRANSPORTATION meetings in each State and Indian reserva- ‘‘(A) STATES AND INDIAN TRIBES.—As pro- REGULATIONS.—Any person that transports tion through which the shipping route passes vided in paragraph (3), the Secretary shall spent nuclear fuel or high-level radioactive in order to present initial shipment plans provide technical assistance and funds to waste under the Nuclear Waste Policy Act of and receive comments. Department of En- States and Indian tribes for training of pub- 1997, pursuant to a contract with the Sec- ergy personnel trained in emergency re- lic safety officials of appropriate units of retary, shall comply with all requirements sponse shall escort each shipment. Funds State, local, and tribal government. A State governing such transportation issued by the shall allocate to local governments within and all Department of Energy training re- Federal, State and local governments, and the State a portion of any funds that the sources shall be made available to States and Indian tribes, in the same way and to the Secretary provides to the State for technical Indian tribes along the shipping route no same extent that any person engaging in assistance and funding. later than three months prior to the com- that transportation that is in or affects ‘‘(B) EMPLOYEE ORGANIZATIONS.—The Sec- mencement of shipments: Provided, however, interstate commerce must comply with such retary shall provide technical assistance and That in no event shall such shipments exceed requirements, as required by section 5126 of funds for training directly to nonprofit em- 1,000 metric tons per year: Provided further, title 49, United States Code. ployee organizations and joint labor-man- That no such shipments shall be conducted ‘‘(f) EMPLOYEE PROTECTION.—Any person agement organizations that demonstrate ex- more than four years after the effective date engaged in the interstate commerce of spent perience in implementing and operating of the Nuclear Waste Policy Act of 1997. nuclear fuel or high-level radioactive waste worker health and safety training and edu- ‘‘(3) GRANTS.— under contract to the Secretary pursuant to cation programs and demonstrate the ability ‘‘(A) IN GENERAL.—To implement this sec- this Act shall be subject to and comply fully to reach and involve in training programs tion, grants shall be made under section with the employee protection provisions of target populations of workers who are or will 401(c)(2). section 20109 of title 49, United States Code be directly engaged in the transportation of ‘‘(B) GRANTS FOR DEVELOPMENT OF PLANS.— (in the case of employees of railroad car- spent nuclear fuel and high-level radioactive ‘‘(i) IN GENERAL.—The Secretary shall riers) and section 31105 of title 49, United waste, or emergency response or post-emer- make a grant of at least $150,000 to each States Code (in the case of employees operat- gency response with respect to such trans- State through the jurisdiction of which and ing commercial motor vehicles), or the Com- portation. each federally recognized Indian tribe mission (in the case of all other employees). ‘‘(C) TRAINING.—Training under this sec- through the reservation lands of which a ‘‘(g) TRAINING STANDARD.—(1) No later than tion— shipment of spent nuclear fuel or high-level 12 months after the date of enactment of the ‘‘(i) shall cover procedures required for safe radioactive waste will be made under this Nuclear Waste Policy Act of 1997, the Sec- routine transportation of materials and pro- Act for the purpose of developing a plan to retary of Transportation, pursuant to au- cedures for dealing with emergency response prepare for such shipments. thority under other provisions of law, in con- situations; ‘‘(ii) LIMITATION.—A grant shall be made sultation with the Secretary of Labor and ‘‘(ii) shall be consistent with any training under clause (i) only to a State or a federally the Commission, shall promulgate a regula- standards established by the Secretary of recognized Indian tribe that has the author- tion establishing training standards applica- Transportation under subsection (g); and ity to respond to incidents involving ship- ble to workers directly involved in the re- ‘‘(iii) shall include— ments of hazardous material. moval and transportation of spent nuclear ‘‘(I) a training program applicable to per- ‘‘(C) GRANTS FOR IMPLEMENTATION OF fuel and high-level radioactive waste. The sons responsible for responding to emergency PLANS.— regulation shall specify minimum training situations occurring during the removal and ‘‘(i) IN GENERAL.—Annual implementation standards applicable to workers, including transportation of spent nuclear fuel and grants shall be made to States and Indian managerial personnel. The regulation shall high-level radioactive waste; tribes that have developed a plan to prepare require that the employer possess evidence ‘‘(II) instruction of public safety officers in for shipments under this Act under subpara- of satisfaction of the applicable training procedures for the command and control of graph (B). The Secretary, in submitting the standard before any individual may be em- the response to any incident involving the annual departmental budget to Congress for ployed in the removal and transportation of waste; and funding of implementation grants under this spent nuclear fuel and high-level radioactive ‘‘(III) instruction of radiological protection section, shall be guided by the State and waste. and emergency medical personnel in proce- tribal plans developed under subparagraph ‘‘(2) If the Secretary of Transportation de- dures for responding to an incident involving (B). As part of the Department of Energy’s termines, in promulgating the regulation re- spent nuclear fuel or high-level radioactive annual budget request, the Secretary shall quired by subparagraph (1), that regulations waste being transported. report to Congress on— promulgated by the Commission establish ‘‘(2) NO SHIPMENTS IF NO TRAINING.—(A) ‘‘(I) the funds requested by States and fed- adequate training standards for workers, There will be no shipments of spent nuclear erally recognized Indian tribes to implement then the Secretary of Transportation can re- fuel and high-level radioactive waste this subsection; frain from promulgating additional regula- through the jurisdiction of any State or the ‘‘(II) the amount requested by the Presi- tions with respect to worker training in such reservation lands of any Indian tribe eligible dent for implementation; and activities. The Secretary of Transportation for grants under paragraph (3)(B) until the ‘‘(III) the rationale for any discrepancies and the Commission shall work through Secretary has made a determination that between the amounts requested by States their Memorandum of Understanding to en- personnel in all State, local, and tribal juris- and federally recognized Indian tribes and sure coordination of worker training stand- dictions on primary and alternative shipping the amounts requested by the President. ards and to avoid duplicative regulation. routes have met acceptable standards of ‘‘(ii) ALLOCATION.—Of funds available for ‘‘(3) The training standards required to be training for emergency responses to acci- grants under this subparagraph for any fiscal promulgated under subparagraph (1) shall, dents involving spent nuclear fuel and high- year— among other things deemed necessary and level nuclear waste, as established by the ‘‘(I) 25 percent shall be allocated by the appropriate by the Secretary of Transpor- Secretary, and unless technical assistance Secretary to ensure minimum funding and tation, include the following provisions— and funds to implement procedures for the program capability levels in all States and ‘‘(A) a specified minimum number of hours safe routine transportation and for dealing Indian tribes based on plans developed under of initial off site instruction and actual field with emergency response situations under subparagraph (B); and experience under the direct supervision of a paragraph (1)(A) have been available to a ‘‘(II) 75 percent shall be allocated to States trained, experienced supervisor; State or Indian tribe for at least 3 years and Indian tribes in proportion to the num- ‘‘(B) a requirement that onsite managerial prior to any shipment: Provided, however, ber of shipment miles that are projected to personnel receive the same training as work- That the Secretary may ship spent nuclear be made in total shipments under this Act ers, and a minimum number of additional fuel and high-level radioactive waste if tech- through each jurisdiction. hours of specialized training pertinent to nical assistance or funds have not been made ‘‘(4) AVAILABILITY OF FUNDS FOR SHIP- their managerial responsibilities; and available due to (i) an emergency, including MENTS.—Funds under paragraph (1) shall be ‘‘(C) a training program applicable to per- the sudden and unforeseen closure of a high- provided for shipments to an interim storage sons responsible for responding to and clean- way or rail line or the sudden and unforeseen facility or repository, regardless of whether ing up emergency situations occurring dur- need to remove spent fuel from a reactor be- the interim storage facility or repository is ing the removal and transportation of spent April 15, 1997 CONGRESSIONAL RECORD — SENATE S3145 nuclear fuel and high-level radioactive age facility site as defined in section 2(19) of the quantity that would be emplaced under waste. this Act is designated as the interim storage section 507 prior to the date that the Sec- ‘‘(4) There is authorized to be appropriated facility site for purposes of section 205. The retary estimates, in the license application, to the Secretary of Transportation, from interim storage facility site shall be deemed to be the date on which the Secretary will general revenues, such sums as may be nec- to be approved by law for purposes of this receive and store spent nuclear fuel and essary to perform his duties under this sub- paragraph. high-level radioactive waste at the perma- section. ‘‘SEC. 205. INTERIM STORAGE FACILITY. nent repository. ‘‘SEC. 204. VIABILITY ASSESSMENT AND PRESI- ‘‘(a) NON-SITE-SPECIFIC ACTIVITIES.—As ‘‘(e) DESIGN.— DENTIAL DETERMINATION. soon as practicable after the date of enact- ‘‘(1) The design for the interim storage fa- ‘‘(a) VIABILITY ASSESSMENT.—No later than ment of the Nuclear Waste Policy Act of cility shall provide for the use of storage December 1, 1998, the Secretary shall provide 1997, the Secretary shall submit to the Com- technologies which are licensed, approved, or to the President and to the Congress a via- mission a topical safety analysis report con- certified by the Commission, to ensure com- bility assessment of the Yucca Mountain taining a generic design for an interim stor- patibility between the interim storage facil- site. The viability assessment shall include— age facility. If the Secretary has submitted ity and contract holders’ spent nuclear fuel ‘‘(1) the preliminary design concept for the such a report prior to such date of enact- and facilities, and to facilitate the Sec- critical elements of the repository and waste ment, the report shall be deemed to have sat- retary’s ability to meet the Secretary’s obli- package; isfied the requirement in the preceding sen- gations under this Act. ‘‘(2) a total system performance assess- tence. No later than December 31, 1998, the ‘‘(2) The Secretary shall consent to an ment, based upon the preliminary design Commission shall issue a safety evaluation amendment to the contracts to provide for concept in paragraph (1) of this subsection report approving or disapproving the generic reimbursement to contract holders for trans- and the scientific data and analysis available design submitted by the Secretary. portable storage systems purchased by con- on June 30, 1998, describing the probable be- ‘‘(b) SITE-SPECIFIC AUTHORIZATION.—The tract holders if the Secretary determines havior of the repository relative to the over- Secretary shall design, construct, and oper- that it is cost effective to use such trans- all system performance standard under sec- ate a facility for the interim storage of spent portable storage systems as part of the inte- tion 206(f) of this Act or, if the standard nuclear fuel and high-level radioactive waste grated management system: Provided, That under section 206(f) has not been promul- at the interim storage facility site des- the Secretary shall not be required to expend gated, relative to an estimate by the Sec- ignated under section 204 and licensed by the any funds to modify contract holders’ stor- retary of an overall system performance Commission under this section. The Commis- age or transport systems or to seek addi- standard that is consistent with section sion shall license the interim storage facility tional regulatory approvals in order to use 206(f); in accordance with the Commission’s regula- such systems. ‘‘(3) a plan and cost estimate for the re- tions governing the licensing of independent ‘‘(f) LICENSE AMENDMENTS.— maining work required to complete the li- storage of spent nuclear fuel and high-level ‘‘(1) The Secretary may seek such amend- cense application under section 206(c) of this radioactive waste (10 CFR part 72). Such reg- ments to the license for the interim storage Act, and ulations shall be amended by the Commis- facility as the Secretary may deem appro- ‘‘(4) an estimate of the costs to construct sion as necessary to implement the provi- priate, including amendments to use new and operate the repository in accordance sions of this Act. The Commission may storage technologies licensed by the Com- with the preliminary design concept in para- amend part 72 of title 10, Code of Federal mission or to respond to changes in Commis- graph (1) of this subsection. Regulations with regard to facilities not cov- sion regulations. ‘‘(b) PRESIDENTIAL DETERMINATION.—No ered by this Act as deemed appropriate by later than March 1, 1999, the President, in his the Commission. ‘‘(2) After receiving a license from the sole and unreviewable discretion, may make ‘‘(c) LIMITATIONS AND CONDITIONS.— Commission to receive and store spent nu- a determination disqualifying the Yucca ‘‘(1) The Secretary shall not commence clear fuel and high-level radioactive waste in Mountain site as a repository, based on the construction of an interim storage facility the permanent repository, the Secretary President’s views that the preponderance of (which shall mean taking actions within the shall seek such amendments to the license information available at such time indicates meaning of the term ‘commencement of con- for the interim storage facility as will per- that the Yucca Mountain site is not suitable struction’ contained in the Commission’s mit the optimal use of such facility as an in- for development of a repository of useful regulations in section 72.3 of title 10, Code of tegral part of a single system with the repos- size. If the President makes a determination Federal Regulations) before the Commission, itory. under this subsection— or an appropriate officer or Board of the ‘‘(g) COMMISSION ACTIONS.— ‘‘(1) the Secretary shall cease all activities Commission, makes the finding under sec- ‘‘(1) The issuance of a license to construct (except necessary termination activities) at tion 72.40(b) of title 10, Code of Federal Regu- and operate an interim storage facility shall the Yucca Mountain site and section 206 of lations. be considered a major Federal action signifi- this Act shall cease to be in effect; and ‘‘(2) After the Secretary makes the pre- cantly affecting the quality of the human en- ‘‘(2) no later than 6 months after such de- liminary designation of an interim storage vironment for purposes of the National Envi- termination, the Secretary shall report to site under section 204, the Secretary may ronmental Policy Act of 1969 (42 U.S.C. 4321 Congress on the need for additional legisla- commence site data acquisition activities et seq.). Prior to issuing a license under this tion relating to the permanent disposal of and design activities necessary to complete section, the Commission shall prepare a final nuclear waste. license application and environmental report environmental impact statement in accord- ‘‘(c) PRELIMINARY SECRETARIAL DESIGNA- under subsection (d) of this section. ance with the National Environmental Pol- TION OF INTERIM STORAGE FACILITY SITES.— ‘‘(3) Notwithstanding any other applicable icy Act of 1969, the Commission’s regula- ‘‘(1) If the President does not make a deter- licensing requirement, the Secretary may tions, and section 207 of this Act. The Com- mination under subsection (b) of this sec- utilize facilities owned by the Federal Gov- mission shall ensure that this environmental tion, no later than March 31, 1999, the Sec- ernment on the date of enactment of the Nu- impact statement is consistent with the retary shall make a preliminary designation clear Waste Policy Act of 1997 and located scope of the licensing action and shall ana- of a specific site within Area 25 of the Ne- within the boundaries of the interim storage lyze the impacts of transportation of spent vada Test Site for planning and construction site, in connection with addressing any im- nuclear fuel and high-level radioactive waste of an interim storage facility under section minent and substantial endangerment to to the interim storage facility in a generic 205. public health and safety at the interim stor- manner. ‘‘(2) Within 18 months of a determination age facility site, prior to receiving a license ‘‘(2) The Commission shall issue a final de- by the President that the Yucca Mountain from the Commission for the interim storage cision granting or denying a license for an site is unsuitable for development as a repos- facility, for purposes of fulfilling require- interim storage facility not later than 32 itory under subsection (b), the President ments for retrievability during the first five months after the date of submittal of the ap- shall designate a site for the construction of years of operation of the interim storage fa- plication for such license. an interim storage facility. The President cility. ‘‘(3) No later than 32 months following the shall not designate the Hanford Nuclear Res- ‘‘(d) LICENSE APPLICATION.—No later than date of enactment of the Nuclear Waste Pol- ervation in the State of Washington, and the 30 days after the date on which the Secretary icy Act of 1997, the Commission shall make Savannah River Site and Barnwell County in makes a preliminary designation of an in- any amendments necessary to the definition the State of South Carolina, or the Oak terim storage facility site under section 204, of ‘spent nuclear fuel’ in section 72.4 of title Ridge Reservation in the State of Tennessee, the Secretary shall submit a license applica- 10, Code of Federal Regulations, to allow an as a site for construction of an interim stor- tion and an environmental report in accord- interim storage facility to accept (subject to age facility. If the President does not des- ance with applicable regulations (subpart B such conditions as the Commission may re- ignate a site for the construction of an in- of part 72 of title 10, Code of Federal Regula- quire in a subsequent license)— terim storage facility, or the construction of tions, and subpart A of part 51 of title 10, ‘‘(A) spent nuclear fuel from research reac- an interim storage facility at the designated Code of Federal Regulations, respectively). tors; site is not approved by law within 24 months The license application— ‘‘(B) spent nuclear fuel from naval reac- of the President’s determination that the ‘‘(1) shall be for a term of 40 years; and tors; Yucca Mountain site is not suitable for de- ‘‘(2) shall be for a quantity of spent nuclear ‘‘(C) high-level radioactive waste of domes- velopment as a repository, the interim stor- fuel or high-level radioactive waste equal to tic origin from civilian nuclear reactors that S3146 CONGRESSIONAL RECORD — SENATE April 15, 1997

have permanently ceased operation before ‘‘(d) REPOSITORY LICENSING.—The Commis- ‘‘(e) MODIFICATION OF THE COMMISSION’S RE- such date of enactment; and sion shall license the repository according to POSITORY LICENSING REGULATIONS.—The ‘‘(D) spent nuclear fuel and high-level ra- the following procedures: Commission shall amend its regulations gov- dioactive waste from atomic energy defense ‘‘(1) CONSTRUCTION AUTHORIZATION.—The erning the disposal of spent nuclear fuel and activities. Commission shall grant the Secretary a con- high-level radioactive waste (10 CFR part 60), Following any such amendments, the Sec- struction authorization for the repository, as necessary, to be consistent with the provi- retary shall seek authority, as necessary, to subject to such requirements or limitations sions of this Act. The Commission’s regula- store such fuel and waste at the interim as the Commission may incorporate pursu- tions shall provide for the modification of the repository licensing procedure in sub- storage facility. None of the activities car- ant to its regulations, upon determining that section (d) of this section, as appropriate, in ried out pursuant to this paragraph shall there is reasonable assurance that spent nu- the event that the Secretary seeks a license delay, or otherwise affect, the development, clear fuel and high-level radioactive waste to permit the emplacement in the reposi- licensing, construction, or operation of the can be disposed of in the repository— interim storage facility. tory, on a retrievable basis, of spent nuclear ‘‘(A) in conformity with the Secretary’s fuel or high-level radioactive waste as is nec- ‘‘SEC. 206. PERMANENT REPOSITORY. application, the provisions of this Act, and essary to provide the Secretary with suffi- the regulations of the Commission; ‘‘(a) REPOSITORY CHARACTERIZATION.— cient confirmatory data on repository per- ‘‘(B) without unreasonable risk to the ‘‘(1) CHARACTERIZATION OF THE YUCCA MOUN- formance to reasonably confirm the basis for health and safety of the public; and TAIN SITE.—The Secretary shall carry out repository closure consistent with applicable ‘‘(C) consistent with the common defense site characterization activities at the Yucca regulations. and security. Mountain site in accordance with the Sec- ‘‘(f) REPOSITORY LICENSING STANDARDS AND ‘‘(2) LICENSE.—Following the filing by the retary’s program approach to site character- ADDITIONAL PROCEDURES.—In complying with Secretary of any additional information ization. Such activities shall be limited to the requirements of section 801 of the Energy needed by the Commission to issue a license only those activities which the Secretary Policy Act of 1992 (42 U.S.C. 10141 note), the to receive and possess source, special nu- considers necessary to provide the data re- Administrator shall achieve consistency clear, or byproduct material at a geologic re- quired for evaluation of the suitability of with the findings and recommendations of pository operations area the Commission the National Academy of Sciences, and the such site for an application to be submitted shall issue a license to dispose of spent nu- Commission shall amend its regulations with to the Commission for a construction au- clear fuel and high-level radioactive waste in respect to licensing standards for the reposi- thorization for a repository at such site, and the repository, subject to such requirements tory, as follows: for compliance with the National Environ- or limitations as the Commission may incor- ‘‘(1) ESTABLISHMENT OF OVERALL SYSTEM mental Policy Act of 1969 (42 U.S.C. 4321 et porate pursuant to its regulations, if the PERFORMANCE STANDARD.— seq.). Commission determines that the repository ‘‘(A) RISK STANDARD.—The standard for ‘‘(2) GUIDELINES.—The Secretary shall has been constructed and will operate— protection of the public from releases of ra- amend the guidelines in part 960 of title 10, ‘‘(A) in conformity with the Secretary’s dioactive material or radioactivity from the Code of Federal Regulations, to base any application, the provisions of this Act, and repository shall limit the lifetime risk, to conclusions regarding whether a repository the regulations of the Commission; the average member of the critical group, of site is suitable on, to the extent practicable, ‘‘(B) without unreasonable risk to the premature death from cancer due to such re- an assessment of total system performance health and safety of the public; and leases to approximately, but not greater of the repository. ‘‘(C) consistent with the common defense than, 1 in 1000. The comparison to this stand- ‘‘(b) ENVIRONMENTAL IMPACT STATEMENT.— and security. ard shall use the upper bound of the 95-per- ‘‘(1) PREPARATION OF ENVIRONMENTAL IM- ‘‘(3) CLOSURE.—After emplacing spent nu- cent confidence interval for the expected PACT STATEMENT.—Construction and oper- clear fuel and high-level radioactive waste in value of lifetime risk to the average member ation of the repository shall be considered a the repository and collecting sufficient con- of the critical group. major Federal action significantly affecting firmatory data on repository performance to ‘‘(B) FORM OF STANDARD.—The standard the quality of the human environment for reasonably confirm the basis for repository promulgated by the Administrator under purposes of the National Environmental Pol- closure consistent with the Commission’s section 801 of the Energy Policy Act of 1992 icy Act of 1969 (42 U.S.C. 4321 et seq.). The regulations applicable to the licensing of a (42 U.S.C. 10141 note) shall be an overall sys- Secretary shall prepare an environmental repository, as modified in accordance with tem performance standard. The Adminis- impact statement on the construction and this Act, the Secretary shall apply to the trator shall not promulgate a standard for operation of the repository and shall submit Commission to amend the license to permit the repository in the form of release limits such statement to the Commission with the permanent closure of the repository. The or contaminant levels for individual radio- license application. The Secretary shall sup- Commission shall grant such license amend- nuclides discharged from the repository. plement such environmental impact state- ment, subject to such requirements or limi- ‘‘(C) ASSUMPTIONS USED IN FORMULATING ment as appropriate. tations as the Commission may incorporate AND APPLYING THE STANDARD.—In promulgat- ‘‘(2) SCHEDULE.— pursuant to its regulations, upon finding ing the standard under section 801 of the En- ‘‘(A) No later than September 30, 2000, the that there is reasonable assurance that the ergy Policy Act of 1992 (42 U.S.C. 10141 note), Secretary shall publish the final environ- repository can be permanently closed— the Administrator shall consult with the mental impact statement under paragraph ‘‘(A) in conformity with the Secretary’s Secretary of Energy and the Commission. (1) of this subsection. application, the provisions of this Act, and The Commission, after consultation with the ‘‘(B) No later than October 31, 2000, the the regulations of the Commission; Secretary, shall specify, by rule, values for Secretary shall publish a record of decision ‘‘(B) without unreasonable risk to the all of the assumptions considered necessary on applying for a license to construct and op- health and safety of the public; and by the Commission to apply the standard in erate a repository at the Yucca Mountain ‘‘(C) consistent with the common defense a licensing proceeding for the repository be- site. and security. fore the Commission, including the reference ‘‘(c) LICENSE APPLICATION.— ‘‘(4) POST-CLOSURE.—The Secretary shall biosphere and size and characteristics of the ‘‘(1) SCHEDULE.—No later than October 31, take those actions necessary and appropriate critical group. 2001, the Secretary shall apply to the Com- at the Yucca Mountain site to prevent any ‘‘(D) DEFINITION.—As used in this sub- mission for authorization to construct a re- activity at the site subsequent to repository section, the term ‘critical group’ means a pository at the Yucca Mountain site. closure that poses an unreasonable risk of— small group of people that is— ‘‘(2) MAXIMIZING CAPACITY.—In developing ‘‘(A) breaching the repository’s engineered ‘‘(i) representative of individuals expected an application for authorization to construct or geologic barriers; or to be at highest risk of premature death the repository, the Secretary shall seek to ‘‘(B) increasing the risk of the repository from cancer as a result of discharges of maximize the capacity of the repository, in beyond the standard established in sub- radionuclides from the permanent reposi- the most cost-effective manner, consistent section (f)(1). tory; with the need for disposal capacity. ‘‘(5) APPLICATION OF HEALTH AND SAFETY ‘‘(ii) relatively homogeneous with respect ‘‘(3) DECISION NOT TO APPLY FOR A LICENSE STANDARDS.—The licensing determination of to expected radiation dose, which shall mean FOR THE YUCCA MOUNTAIN SITE.—If, at any the Commission with respect to risk to the that there shall be no more than a factor of time prior to October 31, 2001, the Secretary health and safety of the public under para- ten in variation in individual dose among determines that the Yucca Mountain site is graphs (1), (2), or (3) of this subsection shall members of the group; and not suitable or cannot satisfy the Commis- be based solely on a finding whether the re- ‘‘(iii) selected using reasonable assump- sion’s regulations applicable to the licensing pository can be operated in conformance tions—concerning lifestyle, occupation, diet of a geological repository, the Secretary with the overall performance standard in and eating and drinking habits, techno- shall— subsection (f)(1) of this section, applied in logical sophistication, or other relevant so- ‘‘(A) notify the Congress and the State of accordance with the provisions of subsection cial and behavioral factors—that are based Nevada of the Secretary’s determinations (f)(2) of this section and the standards estab- on reasonably available information, when and the reasons therefor; and lished by the Administrator under section the group is defined, on current inhabitants ‘‘(B) promptly take the actions described 801 of the Energy Policy Act of 1992 (42 U.S.C. and conditions in the area of 50-mile radius in paragraphs (1) and (2) of section 204(b). 10141 note). surrounding Yucca Mountain contained April 15, 1997 CONGRESSIONAL RECORD — SENATE S3147 within a line drawn 50 miles beyond each of 102(2)(C) of the National Environmental Pol- and the Yucca Mountain site managed by the the boundaries of the Yucca Moutain site. icy Act of 1969 (42 U.S.C. 4332(2)(C)) or any Secretary of the Interior or any other Fed- ‘‘(2) APPLICATION OF OVERALL SYSTEM PER- environmental review under subparagraph eral officer is transferred to the Secretary. FORMANCE STANDARD.—The Commission shall (E) or (F) of section 102(2) of such Act (42 ‘‘(3) RESERVATION.—The interim storage fa- issue the construction authorization, license, U.S.C. 4332(2)(E) or (F)). cility site and the Yucca Mountain site are or license amendment, as applicable, if it ‘‘(b) STANDARDS AND CRITERIA.—The pro- reserved for the use of the Secretary for the finds reasonable assurance that for the first mulgation of standards or criteria in accord- construction and operation, respectively, of 10,000 years following the closure of the re- ance with the provisions of this title, or the interim storage facility and the reposi- pository, the overall system performance under section 801 of the Energy Policy Act of tory and activities associated with the pur- standard will be met based on a probabilistic 1992 (42 U.S.C. 10141 note), shall not require poses of this title. evaluation, as appropriate, of compliance the preparation of an environmental impact ‘‘(b) LAND DESCRIPTION.— with the overall system performance stand- statement under section 102(2)(C) of the Na- ‘‘(1) BOUNDARIES.—The boundaries depicted ard in paragraph (1). tional Environmental Policy Act of 1969 (42 on the map entitled ‘Interim Storage Facil- ‘‘(3) FACTORS.—For purposes of establish- U.S.C. 4332(2)(C)) or any environmental re- ity Site Withdrawal Map’, dated March 13, ing the overall system performance standard view under subparagraph (E) or (F) of section 1996, and on file with the Secretary, are es- in paragraph (1) and making the finding in 102(2) of such Act (42 U.S.C. 4332(2)(E) or (F)). tablished as the boundaries of the Interim paragraph (2)— ‘‘(c) REQUIREMENTS RELATING TO ENVIRON- Storage Facility site. ‘‘(A) the Administrator and the Commis- MENTAL IMPACT STATEMENTS.— ‘‘(2) BOUNDARIES.—The boundaries depicted sion shall not consider climate regimes that ‘‘(1) With respect to the requirements im- on the map entitled ‘Yucca Mountain Site are substantially different from those that posed by the National Environmental Policy Withdrawal Map’, dated July 9, 1996, and on have occurred during the previous 100,000 Act of 1969 (42 U.S.C. 4321 et seq.)— file with the Secretary, are established as years at the Yucca Mountain site; ‘‘(A) in any final environmental impact the boundaries of the Yucca Mountain site. ‘‘(B) the Administrator and the Commis- statement under section 205 or 206, the Sec- ‘‘(3) NOTICE AND MAPS.—Concurrent with sion shall not consider catastrophic events retary or the Commission, as applicable, the Secretary’s designation of an interim where the health consequences of individual shall not be required to consider the need for storage facility site under section 204(c)(1), events themselves to the critical group can a repository or an interim storage facility; the Secretary shall— be reasonably assumed to exceed the health the time of initial availability of a reposi- ‘‘(A) publish in the Federal Register a no- consequences due to impact of the events on tory or interim storage facility; the alter- tice containing a legal description of the in- repository performance; and natives to geological disposal or centralized terim storage facility site; and ‘‘(C) the Administrator and the Commis- interim storage; or alternative sites to the ‘‘(B) file copies of the maps described in sion shall not base the standard in paragraph Yucca Mountain site or the interim storage paragraph (1), and the legal description of (1) or the finding in paragraph (2) on sce- facility site designated under section the interim storage facility site with the narios involving human intrusion into the 204(c)(1); and Congress, the Secretary of the Interior, the repository following repository closure. ‘‘(B) compliance with the procedures and Governor of Nevada, and the Archivist of the ‘‘(4) CONGRESSIONAL REVIEW.— requirements of this title shall be deemed United States. ‘‘(A) Any standard promulgated by the Ad- adequate consideration of the need for cen- ‘‘(4) NOTICE AND MAPS.—Concurrent with ministrator under section 801 of the Energy tralized interim storage or a repository; the the Secretary’s application to the Commis- Policy Act of 1992 (42 U.S.C. 10141 note) shall time of initial availability of centralized in- sion for authority to construct the reposi- be deemed a major rule within the meaning terim storage or the repository or central- tory, the Secretary shall— of section 804(2) of title 5, United States ized interim storage; and all alternatives to ‘‘(A) publish in the Federal Register a no- Code, and shall be subject to the require- centralized interim storage and permanent tice containing a legal description of the ments and procedures pertaining to a major isolation of high-level radioactive waste and Yucca Mountain site; and rule in chapter 8 of such title. spent nuclear fuel in an interim storage fa- ‘‘(B) file copies of the maps described in ‘‘(B) The effective date of the construction cility or a repository, respectively. paragraph (2), and the legal description of authorization for the repository shall be 90 ‘‘(2) The final environmental impact state- the Yucca Mountain site with the Congress, days after the issuance of such authorization ment for the repository prepared by the Sec- the Secretary of the Interior, the Governor of Nevada, and the Archivist of the United by the Commission, unless Congress is stand- retary and submitted with the license appli- States. ing in adjournment for a period of more than cation for a repository under section 206(c) ‘‘(5) CONSTRUCTION.—The maps and legal one week on the date of issuance, in which shall, to the extent practicable, be adopted descriptions of the interim storage facility case the effective date shall be 90 days after by the Commission in connection with the site and the Yucca Mountain site referred to the date on which Congress is expected to re- issuance by the Commission of a construc- in this subsection shall have the same force convene after such adjournment. tion authorization and license for such re- and effect as if they were included in this ‘‘(5) REPORT TO CONGRESS.—At the time pository. To the extent such statement is Act. The Secretary may correct clerical and that the Commission issues a construction adopted by the Commission, such adoption typographical errors in the maps and legal authorization for the repository, the Com- shall be deemed to satisfy the responsibil- descriptions and make minor adjustments in mission shall submit a report to Congress— ities of the Commission under the National the boundaries of the sites. ‘‘(A) analyzing the overall system perform- Environmental Policy Act of 1969 and no fur- ance of the repository through the use of ther consideration shall be required, except ‘‘TITLE III—LOCAL RELATIONS probabilistic evaluations that use best esti- that nothing in this subsection shall affect ‘‘SEC. 301. FINANCIAL ASSISTANCE. mate assumptions, data, and methods for the any independent responsibilities of the Com- ‘‘(a) GRANTS.—The Secretary is authorized period commencing after the first 10,000 mission to protect the public health and to make grants to any affected Indian tribe years after repository closure and including safety under the Atomic Energy Act of 1954 or affected unit of local government for pur- the time after repository closure of maxi- (42 U.S.C. 2011 et seq.). poses of enabling the affected Indian tribe or mum risk to the critical group of premature ‘‘(c) CONSTRUCTION WITH OTHER LAWS.— affected unit of local government— death from cancer due to repository releases; Nothing in this Act shall be construed to ‘‘(1) to review activities taken with respect ‘‘(B) analyzing the consequences of a single amend or otherwise detract from the licens- to the Yucca Mountain site for purposes of instance of human intrusion into the reposi- ing requirements of the Nuclear Regulatory determining any potential economic, social, tory, during the first 1,000 years after reposi- Commission established in title II of the En- public health and safety, and environmental tory closure, on the ability of the repository ergy Reorganization Act of 1974 (42 U.S.C. impacts of the integrated management sys- to perform its intended function. 5841 et seq.). tem on the affected Indian tribe or the af- ‘‘(d) JUDICIAL REVIEW.—Judicial review ‘‘(g) ADDITIONAL ACTIONS BY THE COMMIS- fected unit of local government and its resi- under section 502 of this Act of any environ- SION.—The Commission shall take final ac- dents; tion on the Secretary’s application for con- mental impact statement prepared or adopt- ‘‘(2) to develop a request for impact assist- struction authorization for the repository no ed by the Commission shall be consolidated ance under subsection (c); later than 40 months after submission of the with the judicial review of the licensing deci- ‘‘(3) to engage in any monitoring, testing, application. sion to which it relates. or evaluation activities with regard to such ‘‘SEC. 207. COMPLIANCE WITH THE NATIONAL EN- SEC. 208. LAND WITHDRAWAL. site; VIRONMENTAL POLICY ACT. ‘‘(a) WITHDRAWAL AND RESERVATION.— ‘‘(4) to provide information to residents re- ‘‘(a) PRELIMINARY ACTIVITIES.—Each activ- ‘‘(1) WITHDRAWAL.—Subject to valid exist- garding any activities of the Secretary, or ity of the Secretary under sections 203, 204, ing rights, the interim storage facility site the Commission with respect to such site; 205(a), 205(c), 205(d), and 206(a) shall be con- and the Yucca Mountain site, as described in and sidered a preliminary decision making activ- subsection (b), are withdrawn from all forms ‘‘(5) to request information from, and make ity. No such activity shall be considered of entry, appropriation, and disposal under comments and recommendations to, the Sec- final agency action for purposes of judicial the public land laws, including the mineral retary regarding any activities taken with review. No activity of the Secretary or the leasing laws, the geothermal leasing laws, respect to such site. President under sections 203, 204, 205, or the material sale laws, and the mining laws. ‘‘(b) SALARY AND TRAVEL EXPENSES.—Any 206(a) shall require the preparation of an en- ‘‘(2) JURISDICTION.—Jurisdiction of any salary or travel expense that would ordi- vironmental impact statement under section land within the interim storage facility site narily be incurred by any affected Indian S3148 CONGRESSIONAL RECORD — SENATE April 15, 1997 tribe or affected unit of local government mised upon or related to the acceptance or under this Act, the Secretary is authorized may not be considered eligible for funding use of benefits under this title. to enter into contracts with any person who under this section. ‘‘(c) LIABILITY.—No liability of any nature generates or holds title to spent nuclear fuel ‘‘(c) FINANCIAL AND TECHNICAL ASSIST- shall accrue to be asserted against any offi- or high-level radioactive waste of domestic ANCE.— cial of any governmental unit of Nevada pre- origin for the acceptance of title and posses- ‘‘(1) ASSISTANCE REQUESTS.—The Secretary mised solely upon the acceptance or use of sion, transportation, interim storage, and is authorized to offer to provide financial benefits under this title. disposal of such waste or spent fuel. Such and technical assistance to any affected In- ‘‘SEC. 304. RESTRICTIONS ON USE OF FUNDS. contracts shall provide for payment of fees dian tribe or affected unit of local govern- ‘‘None of the funding provided under this to the Secretary in the amounts set under ment requesting such assistance. Such as- title may be used— paragraphs (2), (3), and (4), sufficient to off- sistance shall be designed to mitigate the ‘‘(1) directly or indirectly to influence leg- set expenditures described in subsection impact on the affected Indian tribe or af- islative action on any matter pending before (c)(2). Subsequent to the enactment of the fected unit of local government of the devel- Congress or a State legislature or for any Nuclear Waste Policy Act of 1997, the con- opment of the integrated management sys- lobbying activity as provided in section 1913 tracts executed under section 302(a) of the tem. of title 18, United States Code; Nuclear Waste Policy Act of 1982 shall con- ‘‘(2) REPORT.—Any affected Indian tribe or ‘‘(2) for litigation purposes; and tinue in effect under this Act: Provided, That affected unit of local government may re- ‘‘(3) to support multistate efforts or other the Secretary shall consent to an amend- quest assistance under this section by pre- coalition-building activities inconsistent ment to such contracts as necessary to im- paring and submitting to the Secretary a re- with the purposes of this Act. plement the provisions of this Act. port on the economic, social, public health ‘‘SEC. 305. LAND CONVEYANCES. ‘‘(2) NUCLEAR WASTE OFFSETTING COLLEC- and safety, and environmental impacts that ‘‘(a) CONVEYANCES OF PUBLIC LANDS.—One TION.— are likely to result from activities of the in- hundred and twenty days after the effective ‘‘(A) For electricity generated by civilian tegrated management system. date of the construction authorization issued nuclear power reactors and sold during an ‘‘(d) OTHER ASSISTANCE.— by the Commission for the repository under offsetting collection period, the Secretary ‘‘(1) TAXABLE AMOUNTS.—In addition to fi- section 206(g), all right, title and interest of shall collect an aggregate amount of fees nancial assistance provided under this sub- the United States in the property described under this paragraph equal to the annual section, the Secretary is authorized to grant in subsection (b), and improvements thereon, to any affected Indian tribe or affected unit together with all necessary easements for level of appropriations for expenditures on of local government an amount each fiscal utilities and ingress and egress to such prop- those activities consistent with subsection year equal to the amount such affected In- erty, including, but not limited to, the right (d) for each fiscal year in the offsetting col- dian tribe or affected unit of local govern- to improve those easements, are conveyed by lection period, minus the percentage of such ment, respectively, would receive if author- operation of law to the County of Nye, Ne- appropriation required to be funded by the ized to tax integrated management system vada, unless the county notifies the Sec- Federal Government pursuant to section 403. activities, as such affected Indian tribe or af- retary of the Interior or the head of such ‘‘(B) The Secretary shall determine the fected unit of local government taxes the other appropriate agency in writing within level of the annual fee for each civilian nu- non-Federal real property and industrial ac- 60 days of such date that it elects not to take clear power reactor based on the amount of tivities occurring within such affected unit title to all or any part of the property, ex- electricity generated and sold. of local government. cept that any lands conveyed to the County ‘‘(C) For purposes of this paragraph, the ‘‘(2) TERMINATION.—Such grants shall con- of Nye under this subsection that are subject term ‘offsetting collection period’ means— tinue until such time as all such activities, to a Federal grazing permit or lease or a ‘‘(i) the period beginning on October 1, 1998 development, and operations are terminated similar federally granted permit or lease and ending on September 30, 2001; and at such site. shall be conveyed between 60 and 120 days of ‘‘(ii) the period on and after October 1, 2006. ‘‘(3) ASSISTANCE TO INDIAN TRIBES AND the earliest time the Federal agency admin- ‘‘(3) NUCLEAR WASTE MANDATORY FEE.— UNITS OF LOCAL GOVERNMENT.— istering or granting the permit or lease ‘‘(A) Except as provided in subparagraph ‘‘(A) PERIOD.—Any affected Indian tribe or would be able to legally terminate such right (C) of this paragraph, for electricity gen- affected unit of local government may not under the statutes and regulations existing erated by civilian nuclear power reactors and receive any grant under paragraph (1) after at the date of enactment of this Act, unless sold on or after January 7, 1983, the fee paid the expiration of the 1-year period following Nye County and the affected holder of the to the Secretary under this paragraph shall the date on which the Secretary notifies the permit or lease negotiate an agreement that be equal to— affected Indian tribe or affected unit of local allows for an earlier conveyance. ‘‘(i) 1.0 mill per kilowatt-hour generated government of the termination of the oper- ‘‘(b) SPECIAL CONVEYANCES.—Notwith- and sold, minus ation of the integrated management system. standing any other law, the following public ‘‘(ii) the amount per kilowatt-hour gen- ‘‘(B) ACTIVITIES.—Any affected Indian tribe lands depicted on the maps and legal descrip- erated and sold paid under paragraph (2): or affected unit of local government may not tions dated October 11, 1995, and on file with Provided, That if the amount under clause receive any further assistance under this sec- the Secretary shall be conveyed under sub- tion if the integrated management system section (a) to the County of Nye, Nevada: (ii) is greater than the amount under clause activities at such site are terminated by the Map 1: Proposed Pahrump Industrial Park (i) the fee under this paragraph shall be Secretary or if such activities are perma- Site equal to zero. nently enjoined by any court. Map 2: Proposed Lathrop Wells (Gate 510) ‘‘(B) No later than 30 days after the begin- ‘‘SEC. 302. ON-SITE REPRESENTATIVE. Industrial Park Site ning of each fiscal year, the Secretary shall ‘‘The Secretary shall offer to the unit of Map 3: Pahrump Landfill Sites determine whether insufficient or excess rev- local government within whose jurisdiction a Map 4: Amargosa Valley Regional Landfill enues are being collected under this sub- site for an interim storage facility or reposi- Site section, in order to recover the costs in- tory is located under this Act an opportunity Map 5: Amargosa Valley Municipal Land- curred by the Federal Government that are to designate a representative to conduct on- fill Site specified in subsection (c)(2). In making this site oversight activities at such site. The Map 6: Beatty Landfill/Transfer Station determination the Secretary shall— Secretary is authorized to pay the reason- Site ‘‘(i) rely on the ‘Analysis of the Total Sys- able expenses of such representative. Map 7: Round Mountain Landfill Site tem Life Cycle Cost of the Civilian Radio- ‘‘SEC. 303. ACCEPTANCE OF BENEFITS. Map 8: Tonopah Landfill Site active Waste Management Program’, dated ‘‘(a) CONSENT.—The acceptance or use of Map 9: Gabbs Landfill Site. September 1995, or on a total system life- any of the benefits provided under this title ‘‘(c) CONSTRUCTION.—The maps and legal cycle cost analysis published by the Sec- by any affected Indian tribe or affected unit descriptions of special conveyances referred retary (after notice and opportunity for pub- of local government shall not be deemed to to in subsection (b) shall have the same force lic comment) after the date of enactment of be an expression of consent, express, or im- and effect as if they were included in this the Nuclear Waste Policy Act of 1997, in plied, either under the Constitution of the Act. The Secretary may correct clerical and making any estimate of the costs to be in- State or any law thereof, to the siting of an typographical errors in the maps and legal curred by the Government under subsection interim storage facility or repository in the descriptions and make minor adjustments in (c)(2); State of Nevada, any provision of such Con- the boundaries of the sites. ‘‘(ii) rely on projections from the Energy stitution or laws to the contrary notwith- ‘‘(d) EVIDENCE OF TITLE TRANSFER.—Upon Information Administration, consistent with standing. the request of the County of Nye, Nevada, the projections contained in the reference the Secretary of the Interior shall provide ‘‘(b) ARGUMENTS.—Neither the United case in the most recent ‘Annual Energy Out- States nor any other entity may assert any evidence of title transfer. look’ published by such Administration, in argument based on legal or equitable estop- ‘‘TITLE IV—FUNDING AND ORGANIZATION making any estimate of future nuclear power pel, or acquiescence, or waiver, or consensual ‘‘SEC. 401. PROGRAM FUNDING. generation; and involvement, in response to any decision by ‘‘(a) CONTRACTS.— ‘‘(iii) take into account projected balances the State to oppose the siting in Nevada of ‘‘(1) AUTHORITY OF THE SECRETARY.—In the in, and expenditures from, the Nuclear Waste an interim storage facility or repository pre- performance of the Secretary’s functions Fund. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3149 ‘‘(C) If the Secretary determines under sub- ation of such joint resolution upon a petition sioning, and post-decommissioning mainte- paragraph (B) that either insufficient or ex- supported in writing by 30 Members of the nance and monitoring of the integrated man- cess revenues are being collected, the Sec- Senate, and such joint resolution shall be agement system or parts thereof; retary shall, at the time of the determina- placed on the calendar. ‘‘(B) the administrative cost of the inte- tion, transmit to Congress a proposal to ad- ‘‘(D) In the Senate, the procedure under grated management system, including the just the amount in subparagraph (A)(i) to en- section 802(d) of title 5, United States Code, Office of Civilian Radioactive Waste Manage- sure full cost recovery. The amount in sub- shall apply to a joint resolution described ment under section 402, the Nuclear Waste paragraph (A)(i) shall be adjusted, by oper- under subparagraph (A). Technical Review Board under section 602, ation of law, immediately upon enactment of ‘‘(7) POINTS OF ORDER.—Notwithstanding and those offices under the Commission in- a joint resolution of approval under para- any other provision of this Act, no points of volved in regulation of the integrated man- graph (5) of this subsection. order, which require 60 votes in order to agement system or parts thereof; and ‘‘(D) The Secretary shall, by rule, establish adopt a motion to waive such point of order, ‘‘(C) the provision of assistance and bene- procedures necessary to implement this shall be considered to be waived during the fits to States, units of general local govern- paragraph. consideration of a joint resolution under sec- ment, nonprofit organizations, joint labor- ‘‘(4) ONE-TIME FEE.—For spent nuclear fuel tion 401 of this Act. management organizations, and Indian or solidified high-level radioactive waste de- ‘‘(8) LEVEL OF ANNUAL FEE.—Notwithstand- tribes under title II of this Act. rived from spent nuclear fuel, which fuel was ing any other provision of this Act, except as ‘‘(3) ADMINISTRATION OF NUCLEAR WASTE used to generate electricity in a civilian nu- provided in paragraph (3)(C), the level of an- FUND.— clear power reactor prior to January 7, 1983, nual fee for each civilian nuclear power reac- ‘‘(A) IN GENERAL.—The Secretary of the the fee shall be in an amount equivalent to tor shall not exceed 1.0 mill per kilowatt- Treasury shall hold the Nuclear Waste Fund an average charge of 1.0 mill per kilowatt- hour of electricity generated and sold. and, after consultation with the Secretary, hour for electricity generated by such spent ‘‘(b) ADVANCE CONTRACTING REQUIRE- annually report to the Congress on the finan- nuclear fuel, or such solidified high-level MENT.— cial condition and operations of the Nuclear waste derived therefrom. Payment of such ‘‘(1) IN GENERAL.— Waste Fund during the preceding fiscal year. ‘‘(A) LICENSE ISSUANCE AND RENEWAL.—The one-time fee prior to the date of enactment ‘‘(B) AMOUNTS IN EXCESS OF CURRENT Commission shall not issue or renew a li- of the Nuclear Waste Policy Act of 1997 shall NEEDS.—If the Secretary determines that the satisfy the obligation imposed under this cense to any person to use a utilization or Nuclear Waste Fund contains at any time production facility under the authority of paragraph. Any one-time fee paid and col- amounts in excess of current needs, the Sec- section 103 or 104 of the Atomic Energy Act lected subsequent to the date of enactment retary may request the Secretary of the of 1954 (42 U.S.C. 2133, 2134) unless— of the Nuclear Waste Policy Act of 1997 pur- Treasury to invest such amounts, or any por- ‘‘(i) such person has entered into a con- suant to the contracts, including any inter- tion of such amounts as the Secretary deter- tract under subsection (a) with the Sec- est due pursuant to the contracts, shall be mines to be appropriate, in obligations of the retary; or paid to the Nuclear Waste Fund no later United States— ‘‘(ii) the Secretary affirms in writing that than September 30, 2001. The Commission ‘‘(i) having maturities determined by the such person is actively and in good faith ne- shall suspend the license of any licensee who Secretary of the Treasury to be appropriate gotiating with the Secretary for a contract fails or refuses to pay the full amount of the to the needs of the Nuclear Waste Fund; fees assessed under this subsection, on or be- under this section. ‘‘(ii) bearing interest at rates determined fore the date on which such fees are due, and ‘‘(B) PRECONDITION.—The Commission, as it to be appropriate by the Secretary of the the license shall remain suspended until the deems necessary or appropriate, may require Treasury, taking into consideration the cur- full amount of the fees assessed under this as a precondition to the issuance or renewal rent average market yield on outstanding subsection is paid. The person paying the fee of a license under section 103 or 104 of the marketable obligations of the United States under this paragraph to the Secretary shall Atomic Energy Act of 1954 (42 U.S.C. 2133, with remaining periods to maturity com- have no further financial obligation to the 2134) that the applicant for such license shall parable to the maturities of such invest- Federal Government for the long-term stor- have entered into an agreement with the ments, except that the interest rate on such age and permanent disposal of spent fuel or Secretary for the disposal of spent nuclear investments shall not exceed the average in- high-level radioactive waste derived from fuel and high-level radioactive waste that spent nuclear fuel used to generate elec- may result from the use of such license. terest rate applicable to existing borrowings; and tricity in a civilian power reactor prior to ‘‘(2) DISPOSAL IN REPOSITORY.—Except as January 7, 1983. provided in paragraph (1), no spent nuclear ‘‘(iii) interest earned on these obligations shall be credited to the Nuclear Waste Fund. ‘‘(5) EXPENDITURES IF SHORTFALL.—If, dur- fuel or high-level radioactive waste gen- ing any fiscal year on or after October 1, erated or owned by any person (other than a ‘‘(C) EXEMPTION.—Receipts, proceeds, and 1997, the aggregate amount of fees assessed department of the United States referred to recoveries realized by the Secretary under under this subsection is less than the annual in section 101 or 102 of title 5, United States this section, and expenditures of amounts level of appropriations for expenditures on Code) may be disposed of by the Secretary in from the Nuclear Waste Fund, shall be ex- those activities specified in subsection (d) the repository unless the generator or owner empt from annual apportionment under the for that fiscal year, minus the percentage of of such spent fuel or waste has entered into provisions of subchapter II of chapter 15 of such appropriations required to be funded by a contract under subsection (a) with the Sec- title 31, United States Code. ‘‘(d) BUDGET.—The Secretary shall submit the Federal Government pursuant to section retary by not later than the date on which the budget for implementation of the Sec- 403, the Secretary may make expenditures such generator or owner commences genera- retary’s responsibilities under this Act to from the Nuclear Waste Fund up to the level tion of, or takes title to, such spent fuel or the Office of Management and Budget annu- equal to the difference between the amount waste. ally along with the budget of the Depart- appropriated and the amount of fees assessed SSIGNMENT.—The rights and duties of ‘‘(3) A ment of Energy submitted at such time in under this subsection. contract holders are assignable. accordance with chapter 11 of title 31, United ‘‘(6) EXPEDITED PROCEDURES FOR APPROVAL ‘‘(c) NUCLEAR WASTE FUND.— States Code. The budget shall consist of the OF CHANGES TO THE NUCLEAR WASTE MANDA- ‘‘(1) IN GENERAL.—The Nuclear Waste Fund estimates made by the Secretary of expendi- TORY FEE.— established in the Treasury of the United tures under this Act and other relevant fi- ‘‘(A) At any time after the Secretary States under section 302(c) of the Nuclear nancial matters for the succeeding 3 fiscal transmits a proposal for a fee adjustment Waste Policy Act of 1982 shall continue in ef- years, and shall be included in the budget of under paragraph (3)(C) of this subsection, a fect under this Act and shall consist of— the United States Government. joint resolution may be introduced in either ‘‘(A) the existing balance in the Nuclear ‘‘(e) APPROPRIATIONS.—The Secretary may House of Congress, the matter after the re- Waste Fund on the date of enactment of the make expenditures from the Nuclear Waste solving clause of which is as follows: ‘That Nuclear Waste Policy Act of 1997; and Fund and the Nuclear Waste Offsetting Col- Congress approves the adjustment to the ‘‘(B) all receipts, proceeds, and recoveries lection, subject to appropriations, which basis for the nuclear waste mandatory fee, realized under subsections (a)(3), (a)(4), and shall remain available until expended. llll submitted by the Secretary on ’. (The (c)(3) subsequent to the date of enactment of ‘‘SEC. 402. OFFICE OF CIVILIAN RADIOACTIVE blank space being appropriately filled in the Nuclear Waste Policy Act of 1997, which WASTE MANAGEMENT. with a date.) shall be deposited in the Nuclear Waste Fund ‘‘(a) ESTABLISHMENT.—There hereby is es- ‘‘(B) A joint resolution described in sub- immediately upon their realization. tablished within the Department of Energy paragraph (A) shall be referred to the com- ‘‘(2) PURPOSES OF THE NUCLEAR WASTE FUND an Office of Civilian Radioactive Waste Man- mittees in each House of Congress with juris- AND THE NUCLEAR WASTE OFFSETTING COLLEC- agement. The Office shall be headed by a Di- diction. TION.—Subject to subsections (d) and (e) of rector, who shall be appointed by the Presi- ‘‘(C) In the Senate, if the committee to this section, the Secretary may make ex- dent, by and with the advice and consent of which is referred a joint resolution described penditures from the Nuclear Waste Fund or the Senate, and who shall be compensated at in subparagraph (A) has not reported such the Nuclear Waste Offsetting Collection in the rate payable for level IV of the Executive joint resolution (or an identical joint resolu- section 401(a)(2) only for— Schedule under section 5315 of title 5, United tion) at the end of 20 calendar days after the ‘‘(A) identification, development, design, States Code. date on which it is introduced, such commit- licensing, construction, acquisition, oper- ‘‘(b) FUNCTIONS OF DIRECTOR.—The Director tee may be discharged from further consider- ation, modification, replacement, decommis- of the Office shall be responsible for carrying S3150 CONGRESSIONAL RECORD — SENATE April 15, 1997 out the functions of the Secretary under this ‘‘(1) The designation, description, and clas- another civilian nuclear power reactor with- Act, subject to the general supervision of the sification of spent fuel or high-level radio- in the same utility system, the construction Secretary. The Director of the Office shall be active waste. of additional spent nuclear fuel pool capac- directly responsible to the Secretary. ‘‘(2) The packing, repacking, handling, la- ity or dry storage capacity, or by other ‘‘SEC. 403. FEDERAL CONTRIBUTION. beling, marking, and placarding of spent nu- means, the Commission shall, at the request ‘‘(a) ALLOCATION.—No later than one year clear fuel or high-level radioactive waste. of any party, provide an opportunity for oral from the date of enactment of the Nuclear ‘‘(3) The siting, design, or licensing of— argument with respect to any matter which Waste Policy Act of 1997, acting pursuant to ‘‘(A) an interim storage facility; the Commission determines to be in con- section 553 of title 5, United States Code, the ‘‘(B) a repository; troversy among the parties. The oral argu- Secretary shall issue a final rule establish- ‘‘(C) the capability to conduct intermodal ment shall be preceded by such discovery ing the appropriate portion of the costs of transfer of spent nuclear fuel under section procedures as the rules of the Commission managing spent nuclear fuel and high-level 201. shall provide. The Commission shall require radioactive waste under this Act allocable to ‘‘(4) The withdrawal or transfer of the in- each party, including the Commission staff, the interim storage or permanent disposal of terim storage facility site, the intermodal to submit in written form, at the time of the oral argument, a summary of the facts, data, spent nuclear fuel and high-level radioactive transfer site, or the repository site to the and arguments upon which such party pro- waste from atomic energy defense activities Secretary of Energy. poses to rely that are known at such time to and spent nuclear fuel from foreign research ‘‘(5) The design, manufacturing, fabrica- such party. Only facts and data in the form reactors. The share of costs allocable to the tion, marking, maintenance, reconditioning, of sworn testimony or written submission repairing, or testing of packaging or a con- management of spent nuclear fuel and high- may be relied upon by the parties during oral tainer represented, marked, certified, or sold level radioactive waste from atomic energy argument. Of the materials that may be sub- as qualified for use in transporting or storing defense activities and spent nuclear fuel mitted by the parties during oral argument, spent nuclear fuel or high-level radioactive from foreign research reactors shall in- the Commission shall only consider those clude— waste. facts and data that are submitted in the ‘‘(1) an appropriate portion of the costs as- ‘‘SEC. 502. JUDICIAL REVIEW OF AGENCY AC- form of sworn testimony or written submis- sociated with research and development ac- TIONS. sion. tivities with respect to development of an in- ‘‘(a) JURISDICTION OF THE UNITED STATES ‘‘(b) ADJUDICATORY HEARING.— terim storage facility and repository; and COURTS OF APPEALS.— ‘‘(1) DESIGNATION.—At the conclusion of ‘‘(2) as appropriate, interest on the prin- ‘‘(1) ORIGINAL AND EXCLUSIVE JURISDIC- any oral argument under subsection (a), the cipal amounts due calculated by reference to TION.—Except for review in the Supreme Commission shall designate any disputed the appropriate Treasury bill rate as if the Court of the United States, and except as question of fact, together with any remain- payments were made at a point in time con- otherwise provided in this Act, the United ing questions of law, for resolution in an ad- sistent with the payment dates for spent nu- States courts of appeals shall have original judicatory hearing only if it determines clear fuel and high-level radioactive waste and exclusive jurisdiction over any civil ac- that— under the contracts. tion— ‘‘(A) there is a genuine and substantial dis- ‘‘(b) APPROPRIATION REQUEST.—In addition ‘‘(A) for review of any final decision or ac- pute of fact which can only be resolved with to any request for an appropriation from the tion of the Secretary, the President, or the sufficient accuracy by the introduction of Nuclear Waste Fund, the Secretary shall re- Commission under this Act; evidence in an adjudicatory hearing; and quest annual appropriations from general ‘‘(B) alleging the failure of the Secretary, ‘‘(B) the decision of the Commission is revenues in amounts sufficient to pay the the President, or the Commission to make likely to depend in whole or in part on the costs of the management of spent nuclear any decision, or take any action, required resolution of such dispute. fuel and high-level radioactive waste from under this Act; ‘‘(2) DETERMINATION.—In making a deter- atomic energy defense activities and spent ‘‘(C) challenging the constitutionality of mination under this subsection, the Commis- nuclear fuel from foreign research reactors, any decision made, or action taken, under sion— as established under subsection (a). any provision of this Act; or ‘‘(A) shall designate in writing the specific ‘‘(c) REPORT.—In conjunction with the an- ‘‘(D) for review of any environmental im- facts that are in genuine and substantial dis- nual report submitted to Congress under sec- pact statement prepared or environmental pute, the reason why the decision of the tion 702, the Secretary shall advise the Con- assessment pursuant to the National Envi- agency is likely to depend on the resolution gress annually of the amount of spent nu- ronmental Policy Act of 1969 (42 U.S.C. 4321 of such facts, and the reason why an adju- clear fuel and high-level radioactive waste et seq.) with respect to any action under this dicatory hearing is likely to resolve the dis- from atomic energy defense activities and Act or alleging a failure to prepare such pute; and spent nuclear fuel from foreign research re- statement with respect to any such action. ‘‘(B) shall not consider— actors, requiring management in the inte- ‘‘(2) VENUE.—The venue of any proceeding ‘‘(i) any issue relating to the design, con- grated management system. under this section shall be in the judicial cir- struction, or operation of any civilian nu- ‘‘(d) AUTHORIZATION.—There is authorized cuit in which the petitioner involved resides clear power reactor already licensed to oper- to be appropriated to the Secretary, from or has its principal office, or in the United ate at such site, or any civilian nuclear general revenues, for carrying out the pur- States Court of Appeals for the District of power reactor to which a construction per- poses of this Act, such sums as may be nec- Columbia Circuit. mit has been granted at such site, unless the essary to pay the costs of the management of ‘‘(b) DEADLINE FOR COMMENCING ACTION.—A Commission determines that any such issue spent nuclear fuel and high-level radioactive civil action for judicial review described substantially affects the design, construc- waste from atomic energy defense activities under subsection (a)(1) may be brought no tion, or operation of the facility or activity and spent nuclear fuel from foreign research later than 180 days after the date of the deci- for which such license application, author- reactors, as established under subsection (a). sion or action or failure to act involved, as ization, or amendment is being considered; ‘‘TITLE V—GENERAL AND the case may be, except that if a party shows or MISCELLANEOUS PROVISIONS that he did not know of the decision or ac- ‘‘(ii) any siting or design issue fully consid- ‘‘SEC. 501. COMPLIANCE WITH OTHER LAWS. tion complained of (or of the failure to act), ered and decided by the Commission in con- ‘‘(a) CONFLICTING REQUIREMENTS.—Except and that a reasonable person acting under nection with the issuance of a construction as provided in subsection (b) of this section, the circumstances would not have known, permit or operating license for a civilian nu- a requirement of a State, political subdivi- such party may bring a civil action no later clear power reactor at such site, unless— sion of a State, or Indian tribe is preempted than 180 days after the date such party ac- ‘‘(I) such issue results from any revision of if— quired actual or constructive knowledge or siting or design criteria by the Commission ‘‘(1) complying with a requirement of the such decision, action, or failure to act. following such decision; and State, political subdivision, or tribe and a re- ‘‘(c) APPLICATION OF OTHER LAW.—The pro- ‘‘(II) the Commission determines that such quirement of this Act or a regulation pre- visions of this section relating to any matter issue substantially affects the design, con- scribed under this Act is not possible; or shall apply in lieu of the provisions of any struction, or operation of the facility or ac- ‘‘(2) the requirement of the State, political other Act relating to the same matter. tivity for which such license application, au- subdivision, or tribe, as applied or enforced, ‘‘SEC. 503. LICENSING OF FACILITY EXPANSIONS thorization, or amendment is being consid- is an obstacle to accomplishing and carrying AND TRANSSHIPMENTS. ered. out this Act or a regulation prescribed under ‘‘(a) ORAL ARGUMENT.—In any Commission ‘‘(3) APPLICATION.—The provisions of para- this Act. hearing under section 189 of the Atomic En- graph (2)(B) shall apply only with respect to ‘‘(b) SUBJECTS EXPRESSLY PREEMPTED.— ergy Act of 1954 (42 U.S.C. 2239) on an appli- licenses, authorizations, or amendments to Except as otherwise provided in this Act, a cation for a license, or for an amendment to licenses or authorizations, applied for under law, regulation, order, or other requirement an existing license, filed after January 7, the Atomic Energy Act of 1954 (42 U.S.C. 2011 of a State, political subdivision of a State, or 1983, to expand the spent nuclear fuel storage et seq.) before December 31, 2005. Indian tribe about any of the following sub- capacity at the site of a civilian nuclear ‘‘(4) CONSTRUCTION.—The provisions of this jects, that is not substantively the same as a power reactor, through the use of high-den- section shall not apply to the first applica- provision of this Act or a regulation pre- sity fuel storage racks, fuel rod compaction, tion for a license or license amendment re- scribed under this Act, is preempted: the transshipment of spent nuclear fuel to ceived by the Commission to expand onsite April 15, 1997 CONGRESSIONAL RECORD — SENATE S3151 spent fuel storage capacity by the use of a ‘‘(B) such title and custody will be trans- fied in subsection (a), or if the cumulative new technology not previously approved for ferred to the Secretary without cost to the amount emplaced in any year thereafter is use at any nuclear power plant by the Com- Federal Government; and less than that which would have been accept- mission. ‘‘(C) Federal ownership and management of ed under the emplacement rate specified in ‘‘(c) JUDICIAL REVIEW.—No court shall hold such site is necessary or desirable in order to subsection (a), the Secretary shall, as a miti- unlawful or set aside a decision of the Com- protect the public health and safety, and the gation measure, adjust the emplacement mission in any proceeding described in sub- environment. schedule upward such that within 5 years of section (a) because of a failure by the Com- ‘‘(2) PROTECTION.—If the Secretary assumes the start of emplacement by the Secretary— mission to use a particular procedure pursu- title and custody of any such waste and land ‘‘(1) the total quantity accepted by the ant to this section unless— under this subsection, the Secretary shall Secretary is consistent with the total quan- ‘‘(1) an objection to the procedure used was maintain such waste and land in a manner tity that the Secretary would have accepted presented to the Commission in a timely that will protect the public health and safe- if the Secretary had began emplacement in fashion or there are extraordinary cir- ty, and the environment. fiscal year 2003, and cumstances that excuse the failure to ‘‘(c) SPECIAL SITES.—If the low-level radio- ‘‘(2) thereafter the emplacement rate is present a timely objection; and active waste involved is the result of a li- equivalent to the rate that would be in place ‘‘(2) the court finds that such failure has censed activity to recover zirconium, haf- pursuant to subsection (a) above if the Sec- precluded a fair consideration and informed nium, and rare earths from source material, retary had commenced emplacement in fis- resolution of a significant issue of the pro- the Secretary, upon request of the owner of cal year 2003. ceeding taken as a whole. the site involved, shall assume title and cus- ‘‘SEC. 508. TRANSFER OF TITLE. tody of such waste and the land on which it ‘‘SEC. 504. SITING A SECOND REPOSITORY. ‘‘(a) Acceptance by the Secretary of any ‘‘(a) CONGRESSIONAL ACTION REQUIRED.— is disposed when such site has been decon- spent nuclear fuel or high-level radioactive The Secretary may not conduct site-specific taminated and stabilized in accordance with waste shall constitute a transfer of title to activities with respect to a second repository the requirements established by the Com- the Secretary. unless Congress has specifically authorized mission and when such owner has made ade- and appropriated funds for such activities. quate financial arrangements approved by ‘‘(b) No later than 6 months following the ‘‘(b) REPORT.—The Secretary shall report the Commission for the long-term mainte- date of enactment of the Nuclear Waste Pol- to the President and to Congress on or after nance and monitoring of such site. icy Act of 1997, the Secretary is authorized January 1, 2007, but not later than January 1, ‘‘SEC. 506. NUCLEAR REGULATORY COMMISSION to accept all spent nuclear fuel withdrawn 2010, on the need for a second repository. TRAINING AUTHORIZATION. from Dairyland Power Cooperative’s La ‘‘SEC. 505. FINANCIAL ARRANGEMENTS FOR LOW- ‘‘The Commission is authorized and di- Crosse Reactor and, upon acceptance, shall LEVEL RADIOACTIVE WASTE SITE rected to promulgate regulations, or other provide Dairyland Power Cooperative with CLOSURE. appropriate regulatory guidance, for the evidence of the title transfer. Immediately ‘‘(a) FINANCIAL ARRANGEMENTS.— training and qualifications of civilian nu- upon the Secretary’s acceptance of such ‘‘(1) STANDARDS AND INSTRUCTIONS.—The clear power plant operators, supervisors, spent nuclear fuel, the Secretary shall as- Commission shall establish by rule, regula- technicians, and other appropriate operating sume all responsibility and liability for the tion, or order, after public notice, and in ac- personnel. Such regulations or guidance interim storage and permanent disposal cordance with section 181 of the Atomic En- shall establish simulator training require- thereof and is authorized to compensate ergy Act of 1954 (42 U.S.C. 2231), such stand- ments for applicants for civilian nuclear Dairyland Power Cooperative for any costs ards and instructions as the Commission power plant operator licenses and for opera- related to operating and maintaining facili- may deem necessary or desirable to ensure in tor requalification programs; requirements ties necessary for such storage from the date the case of each license for the disposal of governing Commission administration of re- of acceptance until the Secretary removes low-level radioactive waste that an adequate qualification examinations; requirements for the spent nuclear fuel from the La Crosse bond, surety, or other financial arrangement operating tests at civilian nuclear power Reactor site. (as determined by the Commission) will be plant simulators, and instructional require- ‘‘SEC. 509. DECOMMISSIONING PILOT PROGRAM. provided by a licensee to permit completion ments for civilian nuclear power plant li- ‘‘(a) AUTHORIZATION.—The Secretary is au- of all requirements established by the Com- censee personnel training programs. thorized to establish a Decommissioning mission for the decontamination, decommis- ‘‘SEC. 507. EMPLACEMENT SCHEDULE. Pilot Program to decommission and decon- sioning, site closure, and reclamation of ‘‘(a) The emplacement schedule shall be taminate the sodium-cooled fast breeder ex- sites, structures, and equipment used in con- implemented in accordance with the follow- perimental test-site reactor located in junction with such low-level radioactive ing: northwest Arkansas. waste. Such financial arrangements shall be ‘‘(1) Emplacement priority ranking shall ‘‘(b) FUNDING.—No funds from the Nuclear provided and approved by the Commission, be determined by the Department’s annual Waste Fund may be used for the Decommis- or, in the case of sites within the boundaries ‘Acceptance Priority Ranking’ report. sioning Pilot Program. of any agreement State under section 274 of ‘‘(2) Subject to the conditions contained in ‘‘SEC. 510. WATER RIGHTS. the Atomic Energy Act of 1954 (42 U.S.C. the license for the interim storage facility, 2021), by the appropriate State or State en- the Secretary’s spent fuel and high-level ra- ‘‘(a) NO FEDERAL RESERVATION.—Nothing tity, prior to issuance of licenses for low- dioactive waste emplacement rate shall be in this Act or any other Act of Congress level radioactive waste disposal or, in the no less than the following: 1,200 MTU in fis- shall constitute or be construed to con- case of licenses in effect on January 7, 1983, cal year 2003 and 1,200 MTU in fiscal year stitute either an express or implied Federal prior to termination of such licenses. 2004; 2,000 MTU in fiscal year 2005 and 2000 reservation of water or water rights for any purpose arising under this Act. ‘‘(2) BONDING, SURETY, OR OTHER FINANCIAL MTU in fiscal year 2006; 2,700 MTU in fiscal ‘‘(b) ACQUISITION AND EXERCISE OF WATER ARRANGEMENTS.—If the Commission deter- year 2007; and 3,000 MTU annually thereafter. mines that any long-term maintenance or ‘‘(3) Subject to the conditions contained in RIGHTS UNDER NEVADA LAW.—The United monitoring, or both, will be necessary at a the license for the interim storage facility, States may acquire and exercise such water site described in paragraph (1), the Commis- of the amounts provided for in paragraph (2) rights as it deems necessary to carry out its sion shall ensure before termination of the for each year, not less than one-sixth shall responsibilities under this Act pursuant to license involved that the licensee has made be— the substantive and procedural requirements available such bonding, surety, or other fi- ‘‘(A) spent nuclear fuel or high-level radio- of the State of Nevada. Nothing in this Act nancial arrangements as may be necessary active waste of domestic origin from civilian shall be construed to authorize the use of to ensure that any necessary long-term nuclear power reactors that have perma- eminent domain by the United States to ac- maintenance or monitoring needed for such nently ceased operation on or before the date quire water rights for such lands. site will be carried out by the person having of enactment of the Nuclear Waste Policy ‘‘(c) EXERCISE OF WATER RIGHTS GEN- title and custody for such site following li- Act of 1997. ERALLY UNDER NEVADA LAWS.—Nothing in cense termination. ‘‘(B) spent nuclear fuel from foreign re- this Act shall be construed to limit the exer- ‘‘(b) TITLE AND CUSTODY.— search reactors, as necessary to promote cise of water rights as provided under Ne- ‘‘(1) AUTHORITY OF SECRETARY.—The Sec- nonproliferation activities; and vada State laws. retary shall have authority to assume title ‘‘(C) spent nuclear fuel, including spent nu- ‘‘SEC. 511. DRY STORAGE TECHNOLOGY. and custody of low-level radioactive waste clear fuel from naval reactors, and high-level ‘‘The Commission is authorized to estab- and the land on which such waste is disposed radioactive waste from research or atomic lish, by rule, procedures for the licensing of of, upon request of the owner of such waste energy defense activities: Provided, however, any technology for the dry storage of spent and land and following termination of the li- That the Secretary shall accept not less than nuclear fuel by rule and without, to the max- cense issued by the Commission for such dis- five percent of the total quantity of fuel and imum extent possible, the need for site-spe- posal, if the Commission determines that— high-level radioactive waste accepted in any cific approvals by the Commission. Nothing ‘‘(A) the requirements of the Commission year from the categories of radioactive ma- in this Act shall affect any such procedures, for site closure, decommissioning, and de- terials described in subparagraphs (B) and or any licenses or approvals issued pursuant contamination have been met by the licensee (C). to such procedures in effect on the date of involved and that such licensee is in compli- ‘‘(b) If the Secretary is unable to begin em- enactment of the Nuclear Waste Policy Act ance with the provisions of subsection (a); placement by June 30, 2003 at the rates speci- of 1997. S3152 CONGRESSIONAL RECORD — SENATE April 15, 1997

‘‘TITLE VI—NUCLEAR WASTE TECHNICAL ‘‘SEC. 604. INVESTIGATORY POWERS. ‘‘(c) ADDITIONAL SUPPORT.—Upon the re- REVIEW BOARD ‘‘(a) HEARINGS.—Upon request of the Chair- quest of the Chairman, the Board may secure ‘‘SEC. 601. DEFINITIONS. man or a majority of the members of the directly from the head of any department or ‘‘For purposes of this title— Board, the Board may hold such hearings, sit agency of the United States information nec- ‘‘(1) CHAIRMAN.—The term ‘Chairman’ and act at such times and places, take such essary to enable it to carry out this title. means the Chairman of the Nuclear Waste testimony, and receive such evidence, as the ‘‘(d) MAILS.—The Board may use the Unit- Technical Review Board. Board considers appropriate. Any member of ed States mails in the same manner and ‘‘(2) BOARD.—The term ‘Board’ means the the Board may administer oaths or affirma- under the same conditions as other depart- Nuclear Waste Technical Review Board con- tions to witnesses appearing before the ments and agencies of the United States. tinued under section 602. Board. ‘‘(e) EXPERTS AND CONSULTANTS.—Subject ‘‘(b) PRODUCTION OF DOCUMENTS.— ‘‘SEC. 602. NUCLEAR WASTE TECHNICAL REVIEW to such rules as may be prescribed by the BOARD. ‘‘(1) RESPONSE TO INQUIRIES.—Upon the re- Board, the Chairman may procure temporary ‘‘(a) CONTINUATION OF THE NUCLEAR WASTE quest of the Chairman or a majority of the and intermittent services under section TECHNICAL REVIEW BOARD.—The Nuclear members of the Board, and subject to exist- 3109(b) of title 5 of the United States Code, Waste Technical Review Board, established ing law, the Secretary (or any contractor of but at rates for individuals not to exceed the under section 502(a) of the Nuclear Waste the Secretary) shall provide the Board with daily equivalent of the maximum annual Policy Act of 1982 as constituted prior to the such records, files, papers, data, or informa- rate of basic pay payable for GS–18 of the date of enactment of the Nuclear Waste Pol- tion as may be necessary to respond to any General Schedule. inquiry of the Board under this title. icy Act of 1997, shall continue in effect subse- ‘‘SEC. 608. REPORT. ‘‘(2) AVAILABILITY OF DRAFTS.—Subject to quent to the date of enactment of the Nu- ‘‘The Board shall report not less than 2 existing law, information obtainable under clear Waste Policy Act of 1997. times per year to Congress and the Secretary ‘‘(b) MEMBERS.— paragraph (1) shall not be limited to final its findings, conclusions, and recommenda- ‘‘(1) NUMBER.—The Board shall consist of 11 work products of the Secretary, but shall in- tions. members who shall be appointed by the clude drafts of such products and documenta- President not later than 90 days after De- tion of work in progress. ‘‘SEC. 609. AUTHORIZATION OF APPROPRIATIONS. cember 22, 1987, from among persons nomi- ‘‘SEC. 605. COMPENSATION OF MEMBERS. ‘‘Nothwithstanding section 401(d), and sub- nated by the National Academy of Sciences ‘‘(a) IN GENERAL.—Each member of the ject to section 401(e), there are authorized to in accordance with paragraph (3). Board shall be paid at the rate of pay pay- be appropriated for expenditures from ‘‘(2) CHAIR.—The President shall designate able for level III of the Executive Schedule amounts in the Nuclear Waste Fund under a member of the Board to serve as Chairman. for each day (including travel time) such section 401(c) such sums as may be necessary ‘‘(3) NATIONAL ACADEMY OF SCIENCES.— member is engaged in the work of the Board. to carry out the provisions of this title. ‘‘(A) NOMINATIONS.—The National Academy ‘‘(b) TRAVEL EXPENSES.—Each member of ‘‘SEC. 610. TERMINATION OF THE BOARD. of Sciences shall, not later than 90 days after the Board may receive travel expenses, in- ‘‘The Board shall cease to exist not later December 22, 1987, nominate not less than 22 cluding per diem in lieu of subsistence, in than one year after the date on which the persons for appointment to the Board from the same manner as is permitted under sec- Secretary begins disposal of spent nuclear among persons who meet the qualifications tions 5702 and 5703 of title 5, United States fuel or high-level radioactive waste in the re- described in subparagraph (C). Code. pository. ‘‘(B) VACANCIES.—The National Academy of ‘‘SEC. 606. STAFF. ‘‘TITLE VII—MANAGEMENT REFORM Sciences shall nominate not less than 2 per- ‘‘(a) CLERICAL STAFF.— ‘‘SEC. 701. MANAGEMENT REFORM INITIATIVES. sons to fill any vacancy on the Board from ‘‘(1) AUTHORITY OF CHAIRMAN.—Subject to among persons who meet the qualifications paragraph (2), the Chairman may appoint ‘‘(a) IN GENERAL.—The Secretary is di- described in subparagraph (C). and fix the compensation of such clerical rected to take actions as necessary to im- ‘‘(C) NOMINEES.— staff as may be necessary to discharge the prove the management of the civilian radio- ‘‘(i) Each person nominated for appoint- responsibilities of the Board. active waste management program to ensure ment to the Board shall be— ‘‘(2) PROVISIONS OF TITLE 5.—Clerical staff that the program is operated, to the maxi- ‘‘(I) eminent in a field of science or engi- shall be appointed subject to the provisions mum extent practicable, in like manner as a neering, including environmental sciences; of title 5, United States Code, governing ap- private business. and pointments in the competitive service, and ‘‘(b) AUDITS.— ‘‘(II) selected solely on the basis of estab- shall be paid in accordance with the provi- ‘‘(1) STANDARD.—The Office of Civilian Ra- lished records of distinguished service. sions of chapter 51 and subchapter III of dioactive Waste Management, its contrac- ‘‘(ii) The membership of the Board shall be chapter 3 of such title relating to classifica- tors, and subcontractors at all tiers, shall representatives of the broad range of sci- tion and General Schedule pay rates. conduct, or have conducted, audits and ex- entific and engineering disciplines related to ‘‘(b) PROFESSIONAL STAFF.— aminations of their operations in accordance activities under this title. ‘‘(1) AUTHORITY OF CHAIRMAN.—Subject to with the usual and customary practices of ‘‘(iii) No person shall be nominated for ap- paragraphs (2) and (3), the Chairman may ap- private corporations engaged in large nu- pointment to the Board who is an employee point and fix the compensation of such pro- clear construction projects consistent with of— fessional staff as may be necessary to dis- its role in the program. ‘‘(I) the Department of Energy; charge the responsibilities of the Board. ‘‘(2) TIME.—The management practices and ‘‘(II) a national laboratory under contract ‘‘(2) NUMBER.—Not more than 10 profes- performances of the Office of Civilian Radio- with the Department of Energy; or sional staff members may be appointed active Waste Management shall be audited ‘‘(III) an entity performing spent nuclear under this subsection. every 5 years by an independent manage- fuel or high-level radioactive waste activi- ‘‘(3) TITLE 5.—Professional staff members ment consulting firm with significant expe- ties under contract with the Department of may be appointed without regard to the pro- rience in similar audits of private corpora- Energy. visions of title 5, United States Code, govern- tions engaged in large nuclear construction ‘‘(4) VACANCIES.—Any vacancy on the ing appointments in the competitive service, projects. The first such audit shall be con- Board shall be filled by the nomination and and may be paid without regard to the provi- ducted 5 years after the enactment of the appointment process described in paragraphs sions of chapter 51 and subchapter III of Nuclear Waste Policy Act of 1997. (1) and (3). chapter 53 of such title relating to classifica- ‘‘(3) TIME.—No audit contemplated by this ‘‘(5) TERMS.—Members of the Board shall tion and General Schedule pay rates, except subsection shall take longer than 30 days to be appointed for terms of 4 years, each such that no individual so appointed may receive conduct. An audit report shall be issued in term to commence 120 days after December pay in excess of the annual rate of basic pay final form no longer than 60 days after the 22, 1987, except that of the 11 members first payable for GS–18 of the General Schedule. audit is commenced. appointed to the Board, 5 shall serve for 2 ‘‘SEC. 607. SUPPORT SERVICES. ‘‘(4) PUBLIC DOCUMENTS.—All audit reports years and 6 shall serve for 4 years, to be des- ‘‘(a) GENERAL SERVICES.—To the extent shall be public documents and available to ignated by the President at the time of ap- permitted by law and requested by the Chair- any individual upon request. pointment, except that a member of the man, the Administrator of General Services ‘‘(c) VALUE ENGINEERING.—The Secretary Board whose term has expired may continue shall provide the Board with necessary ad- shall create a value engineering function to serve as a member of the Board until such ministrative services, facilities, and support within the Office of Civilian Radioactive member’s successor has taken office. on a reimbursable basis. Waste Management that reports directly to ‘‘SEC. 603. FUNCTIONS. ‘‘(b) ACCOUNTING, RESEARCH, AND TECH- the Director, which shall carry out value en- ‘‘The Board shall evaluate the technical NOLOGY ASSESSMENT SERVICES.—The Comp- gineering functions in accordance with the and scientific validity of activities under- troller General and the Librarian of Congress usual and customary practices of private taken by the Secretary after December 22, shall, to the extent permitted by law and corporations engaged in large nuclear con- 1987, including— subject to the availability of funds, provide struction projects. ‘‘(1) site characterization activities; and the Board with such facilities, support, funds ‘‘(d) SITE CHARACTERIZATION.—The Sec- ‘‘(2) activities relating to the packaging or and services, including staff, as may be nec- retary shall employ, on an on-going basis, in- transportation of high-level radioactive essary for the effective performance of the tegrated performance modeling to identify waste or spent nuclear fuel. functions of the Board. appropriate parameters for the remaining April 15, 1997 CONGRESSIONAL RECORD — SENATE S3153 site characterization effort and to eliminate eral others, as well as my colleagues on ter. We appreciate his support, and he studies of parameters that are shown not to the other side, professional staff, and reaffirmed his support to us in a mes- affect long-term repository performance. the two Senators from Nevada. It has sage earlier today. Several of my col- ‘‘SEC. 702. REPORTING. been a good debate, and I think we send leagues indicated they would be with ‘‘(a) INITIAL REPORT.—Within 180 days of a message to the administration rel- enactment of this section, the Secretary us to support us on the veto override if shall report to Congress on its planned ac- ative to the reality of whether we are it reaches that point. So I think what tions for implementing the provisions of this going to leave the waste on 80 sites in we have done is to allow science and Act, including the development of the Inte- 41 States or do something about it. So logic to proceed in the development of grated Waste Management System. Such re- we will look forward to the House ac- what is a responsible nuclear waste port shall include— tion. policy rather than to respond to the ‘‘(1) an analysis of the Secretary’s progress Again, I thank all my colleagues who emotions of the occasion. I appreciate in meeting its statutory and contractual ob- participated. ligation to accept title to, possession of, and very much my colleagues who stayed Mr. REID addressed the Chair. with us on this important issue and the delivery of spent nuclear fuel and high-level The PRESIDING OFFICER. The Sen- radioactive waste in accordance with the em- floor leader and the chairman for his placement schedule under section 507; ator from Nevada. courtesies in permitting us to proceed Mr. REID. I extend my appreciation ‘‘(2) a detailed schedule and timeline show- in an orderly fashion. ing each action that the Secretary intends to to the manager of the bill, the Senator take to meet the Secretary’s obligations from Alaska, who has been a gen- I yield the floor. under this Act and the contracts; tleman during these deliberations Mr. LOTT addressed the Chair. ‘‘(3) a detailed description of the Sec- these past 9 days. It is a hotly con- The PRESIDING OFFICER. The ma- retary’s contingency plans in the event that tested issue. We hope there is the abil- the Secretary is unable to meet the planned ity to use reason in this issue, to go jority leader. schedule and timeline; and Mr. LOTT. I do not want to prolong ‘‘(4) an analysis by the Secretary of its ahead and site the permanent reposi- funding needs for the five fiscal years begin- tory wherever it should be and use this any further, but I must also join in ning after the fiscal year in which the date good science to judge. But I do extend congratulating the chairman of the En- of enactment of the Nuclear Waste Policy my appreciation to Senator MURKOW- ergy and Natural Resources Commit- Act of 1997 occurs. SKI and his staff for the courtesies they tee, the Senator from Alaska. He has ‘‘(b) ANNUAL REPORTS.—On each anniver- have extended to the Senators from Ne- done a great job. He spent a lot of time sary of the submittal of the report required vada and look forward to working with on this bill, both this year and last by subsection (a), the Secretary shall make him in the future on matters of impor- annual reports to the Congress for the pur- year. He has been patient. He has done pose of updating the information contained tance. a magnificent job. Mr. CRAIG addressed the Chair. in such report. The annual reports shall be I also commend the Senator from brief and shall notify the Congress of— The PRESIDING OFFICER. The Sen- Idaho [Mr. CRAIG] for his work, and ‘‘(1) any modifications to the Secretary’s ator from Idaho. schedule and timeline for meeting its obliga- Mr. CRAIG. Mr. President, I extend also again express my appreciation to tions under this Act; my thanks to the chairman of the En- the Senators from Nevada. I know it is ‘‘(2) the reasons for such modifications, ergy and Natural Resources Committee a very difficult issue for them. They and the status of the implementation of any for the tremendous work he has done, have been vigorous in their position on of the Secretary’s contingency plans; and very successful work on S. 104. We have behalf of the people in their State to ‘‘(3) the Secretary’s analysis of its funding picked up votes. Today we had the oppose this legislation but have also needs for the ensuing 5 fiscal years. been gentlemen about it, and I extend ‘‘TITLE VIII—MISCELLANEOUS votes in the Senate to override a Presi- dential veto, and we saw that action my appreciation to them. ‘‘SEC. 801. SENSE OF THE SENATE. ‘‘It is the sense of the Senate that the Sec- going on right here in the well. Mr. DASCHLE addressed the Chair. retary and the petitioners in Northern I appreciate the work my colleagues The PRESIDING OFFICER. The from Nevada have done. They have cer- States Power (Minnesota), v. Department of Democratic leader. Energy, pending before the United States tainly maintained my respect for them Court of Appeals for the District of Columbia and I hope likewise. But clearly this Mr. DASCHLE. Mr. President, I also Circuit (No. 97–1064), should enter into a set- Nation needs a permanent repository, rise to commend my colleagues on both tlement agreement to resolve the issues and S. 104 moves us in that direction. sides of the aisle who have participated pending before the court in that case prior to We will now move to the House. I think in the debate that has just now been the date of enactment of the Nuclear Waste completed. This is really the way it Policy Act of 1997. the value is that the administration now needs to clearly recognize that the ought to be. This was a very difficult, ‘‘SEC. 802. EFFECTIVE DATE. emotional, contentious issue, an issue ‘‘Except as otherwise provided in this Act, Congress of the United States in a this Act shall become effective one day after strong bipartisan way wants to resolve that involved Republicans and Demo- enactment.’’. this issue and tell the American people crats on both sides of the aisle on ei- SEC. 2. SENSE OF THE SENATE REGARDING AS- it will honor its commitments and its ther side of the issue. It is appropriate SISTANCE FOR ELDERLY AND DIS- contracts to resolve this major envi- that at times like this we commend ABLED LEGAL IMMIGRANTS. ronmental issue. both sides, both leaders for their civil- It is the sense of the Senate that elderly Mr. BRYAN addressed the Chair. ity and for the way in which this issue and disabled legal immigrants who are un- able to work should receive assistance essen- The PRESIDING OFFICER. The Sen- was presented to this body. It was a tial to their well-being, and that the Presi- ator from Nevada. good debate, a debate in my view that dent, Congress, the States, and faith-based Mr. BRYAN. I thank the Chair. brought out the very complex nature of and other organizations should continue to Mr. President, I say to the chairman, this legislation. work together toward that end. the floor manager, we have had a spir- So on behalf of all of my colleagues ited and prolonged debate. That is in Mr. MURKOWSKI. Mr. President, I on this side of the aisle, I commend the best tradition of the Senate. I move to reconsider the vote. Senator MURKOWSKI and the senior thank him for his personal courtesies Mr. DASCHLE. I move to lay that Senator from Idaho [Mr. CRAIG], and in terms of procedure in the Chamber motion on the table. especially our colleagues from Nevada, The motion to lay on the table was so that we were given an opportunity Mr. REID and Mr. BRYAN. They all rep- to fully express and develop our views. agreed to. resented themselves well. They did the Mr. MURKOWSKI addressed the Let me say to my colleagues who debate proud. I think it portends well Chair. voted against this bill, I know that for for future debates on just as complex The PRESIDING OFFICER. The Sen- a number of them it was particularly ator from Alaska. difficult. That vote was in the interest and controversial issues. I commend Mr. MURKOWSKI. Mr. President, I of good science. I appreciate their cour- our Senators and appreciate very much take this opportunity to thank those age. I appreciate their support. Senator the manner with which they conducted who have worked so hard on this piece ROCKEFELLER could not be here this themselves in the last week. of legislation, Karen and Gary and sev- morning because he has another mat- I yield the floor. S3154 CONGRESSIONAL RECORD — SENATE April 15, 1997 REGARDING FLOOR PRIVILEGES Rules and Administration has the op- as a real debate on a budget resolution. FOR DISABLED PERSONS RE- portunity to properly consider the The President sent his version to Cap- QUIRING SUPPORTING SERVICES matter. itol Hill. I disagreed with some parts of Mr. LOTT. Mr. President, I have been The PRESIDING OFFICER. Is there it. But everyone had to concede that working this morning with all Sen- objection? Without objection, it is so his approach to balancing the budget ators, including the distinguished ordered. would in fact balance the budget. He Democratic leader, to resolve a matter Mr. LOTT. Mr. President, I now send met his obligation. He started the proc- that emerged yesterday with regard to a resolution the desk dealing with the ess. Of course, when it comes to Con- permitting access to the Senate floor same subject and ask that it be appro- gress, that is not under the President’s of guide dogs and other equipment priately referred. control, nor should it be. That is the needed by disabled individuals. The The PRESIDING OFFICER. The reso- control of the Republican leadership in resolution I am about to offer will lution will be received and appro- the House and the Senate. The ball is allow the Sergeant at Arms to work priately referred. on their side of the net. It is their time immediately with staffers who have Mr. LOTT. Mr. President, I yield the to put together a budget resolution and the need for guide dogs to be able to ac- floor. to spell out for the American people in cess the floor on a case-by-case basis. f very specific terms how can we reach a balanced budget. The resolution also calls for the Com- MORNING BUSINESS mittee on Rules and Administration to Just a few weeks ago we spent 2 consider a formal change in the Senate Mr. DORGAN addressed the Chair. weeks, maybe 3, perhaps 4 weeks, in rules to address the situation. A per- The PRESIDING OFFICER. The Sen- the Chamber here debating an amend- manent resolution is expected to be ator from North Dakota. ment to the Constitution of the United brought out of the committee before Mr. DORGAN. Mr. President, it is my States, an amendment which said Con- the full Senate so that we can have a understanding there is to be a 1-hour gress has no choice; it must balance formal rule on how matters of this na- morning business segment under the the budget. I voted against it. ture will be handled. control of the minority leader; is that I did not think we needed to put into Again, I thank all Senators involved correct? our Constitution an obligation which for their thoughtfulness in addressing The PRESIDING OFFICER. Under we all know we must accept. So many the matter immediately. I think it is the previous order, there will now be a people on the other side, my friends on the right thing to do, and I am pleased period for the transaction of morning the Republican side, and a few Demo- that with today’s action, assuming we business not to extend beyond the hour crats stood up and said, ‘‘No, no, no, we can get this agreed to, the Senate will of 12:30 p.m. with Senators permitted need to have a constitutional impera- address an inequity that has been to speak for 5 minutes each. tive to force us to act.’’ Little did I brought before us and we will remove Mr. DORGAN. Mr. President, I ask know that just a few weeks later they roadblocks in the way of individuals unanimous consent we begin the 1 hour would prove themselves true. The Re- helping us to serve the American peo- reserved for the minority leader. publican leadership has been unable or ple in the Senate. The PRESIDING OFFICER. Without unwilling to come forward with their The chairman of the Rules Commit- objection, it is so ordered. offering about balancing the budget. tee has been involved in this discus- Mr. DORGAN. Mr. President, I yield The other night at the radio/TV cor- sion, the ranking member. I believe we as much time as he may need to the respondents’ dinner the President had have touched bases on both sides, and I Senator from Illinois, Mr. DURBIN. an interesting observation about how believe this is an appropriate resolu- The PRESIDING OFFICER. The Sen- slow the pace is on Capitol Hill and, tion to an immediate problem but also ator is recognized. frankly, how boring it becomes as we one that can be addressed by the appro- Mr. DURBIN. I thank the Senator. go in, week in and week out, in the priate committee so that the rules will f House and Senate, without addressing the real issues. The President said that be a little clearer as to how this type of BUDGET RESOLUTION DEADLINE situation will be addressed in the fu- the pace on Capitol Hill is so slow that ture. Mr. DURBIN. April 15, we all know C-SPAN, the television network which Before I ask unanimous consent, I that date; 40 percent of the American covers our hearings, has decided to wonder; I see the Democratic leader, if taxpayers file their returns within the play reruns from the previous Congress he wanted to comment. Would the Sen- last 48 hours as the closing day comes so people will keep up their interest on ator like me to yield for comment be- for filing personal income tax returns. Capitol Hill. fore we get unanimous consent? This year, for about the third year in It is an amusing observation. I do not Mr. DASCHLE. Mr. President, I com- succession, I did my own tax return. I believe it is necessarily true, but it mend the majority leader for his expe- do not know how many of my col- does reflect on the fact that for some ditious handling of this matter. This leagues in the Senate and House do reason we cannot get started up here has only recently been presented as a that. But I think it is a good edu- this year. For some reason, Republican problem to the body, and I think the cational experience. Perhaps we should leadership has been unable to come for- manner in which the majority leader is pass a law that every Member of Con- ward with their offering for a budget handling it represents sensitivity to gress should complete their own in- resolution. Why would that be? Why the issue and a recognition for the need come tax returns. It might urge us on would a party that is so dedicated to a for some practical application of our to reform the system and make it sim- constitutional amendment to force a current rules. And so I am very sup- pler so that families across America balanced budget have such a difficult portive of the effort that he and his will have a little easier time of it in time meeting its statutory obligation colleagues are making in this regard, paying their taxes and meeting their to produce that budget resolution on and I hope that we can see this matter responsibility to this Nation. the floor? resolved successfully today. When it comes to responsibility, The answer is fairly obvious: Because Mr. LOTT. Mr. President, I ask unan- there is also a responsibility in this they have set up certain conditions for imous consent then that an individual Senate Chamber. April 15 is another a balanced budget which they them- with a disability who has or is granted deadline. April 15 is a deadline for pass- selves cannot meet. They have sug- the privilege of the Senate floor may ing a budget resolution. By this time gested we should include tax cuts in bring those supporting services, includ- we are required by law to have passed any kind of balanced budget scenario. ing service dogs, wheelchairs, and in- a budget resolution and started the ap- Coming out for tax cuts on April 15 terpreters, on the Senate floor, which propriations process. may be the most popular thing a politi- the Senate Sergeant at Arms deter- I have been on Capitol Hill, I guess cian can do. But let’s be very honest mines are necessary and appropriate to this is my 15th year, and I do not think about it, as Senator Dole learned in the assist the disabled individual in dis- I have ever seen happen what has hap- last campaign, just promising a tax cut charging the official duties of his or pened this year because now April 15 is not enough. The American people her position until the Committee on will come and go without even so much have to understand it is attainable, it April 15, 1997 CONGRESSIONAL RECORD — SENATE S3155 is reasonable, it will not in fact blow before. The Senator talked about the comment —is we have never seen a sit- up our efforts to balance the budget. I no budget no pay legislation. While he uation where the majority party was so think that is the problem that the ma- was fighting for that in the House, I afraid to offer a budget; we have never jority, the Republicans, face here—how was here in the Senate fighting for seen a situation where they did not to meet the obligation of satisfying all that as well; and some of us over here have the courage to lay down their pri- of their rhetoric about tax cuts and gave our pay to charity during that pe- orities. I wonder if my friend agrees, if still meet their obligation to balance riod. this is really an unprecedented situa- the budget. Unfortunately, it does not I know that my colleagues on the tion? work. other side of the aisle do not want to Mr. DURBIN. I thank my colleague They found 2 years ago when they have another Government shutdown. from California. She and I served to- were pushing a tax cut package even As a matter of fact, some of them are gether on the House Budget Commit- smaller than this one, they had going to introduce legislation to pass a tee, and I agree with her. In 15 years, I reached such a crisis stage that we permanent continuing resolution and have never seen anything like this. For shut down the Government. We shut avoid such a shutdown. Frankly, I am some reason, the Budget Committee is down the Government for the longest glad they are thinking along the lines on vacation when it is supposed to be period of time in our Nation’s history. of avoiding a shutdown. But that really on the job. The statute says get mov- That worries me, because I am afraid begs the question of the day. That is ing by April 15, give us a budget resolu- we may be on that same road again. the cowardly way out. If we cannot get tion. We have an appropriations proc- I have the Durbin plan for dealing our act together, we admit it now, we ess to get started in the House, to with Government shutdowns. There are are introducing legislation to just keep move forward on in the Senate, and it two parts to it. The first part is a piece the Government going at the old rate cannot get started until we figure out of legislation which says, ‘‘No dessert even though, by the way, things are what our priorities in spending are until you clean your plate.’’ Remember changing and we need to react to what going to be. That is a very difficult when Mom and Dad used to say that? I the people want. But they will con- thing to do with the high-flying rhet- think we ought to say that when it tinue it going to avoid the heat of a oric. The Republicans ran for the comes to the business of Congress. Here Government shutdown. House and Senate saying, ‘‘Let us is what I am driving at. I do not believe The fact is, where is the budget? To- lead.’’ And these steely-eyed, styptic- that we should consider the appropria- night, late at night, there will be a hearted conservatives said, ‘‘We know tion to keep Congress running on Cap- rush at mailboxes all across this coun- how to balance a budget. Out of the itol Hill until every other appropria- try of people mailing in their tax re- way, bleeding-heart liberals. Give us a tion bill is passed. So, if there is going turns. They have to get an extension if chance. We’ll get rid of all this red ink. to be a Government shutdown of any they do not meet the deadline. Where We’ll get you on the straight and nar- agency, it will necessarily also shut is this extension? I have yet to see a row.’’ Where is the budget? I don’t see it. down Congress. I think that will focus budget. What do we have to do? As the Senator our attention on the fact that we can- In my closing remarks to the Senator suggested earlier this morning, do we not abide by a Government shutdown from Illinois, I say to him, does he re- have to send out dogs to sniff out this or impose on innocent Federal employ- member anything quite like this? I budget? Where is it? Where on the ees that sort of scenario. know some deadlines have been missed floor? Is it in one of the committee Second, the last time there was a in the past, but in my memory, that meeting rooms on Capitol Hill? In one shutdown under the leadership of the does go back a ways. At least we had a of the think tanks? Does the Heritage 104th Congress, three of us, I believe, in budget out there. We may not have Foundation have a budget they want to the House of Representatives said as dotted all the i’s, crossed all the t’s, send up here for us to take up? What long as the Government is shutting and come to a conclusion by this time, are we waiting for? The American peo- down, we are not going to take a pay- but we always had that budget docu- ple met their obligation today. Some of check, and we did not. If every other ment out there. Where we stand today is the Presi- them are sitting down right now say- Member of the House and Senate would ing, ‘‘Oh, my goodness, I have to finish dent has a budget document out there. hew to the same standard, I will guar- this 1040 form. I have a legal respon- It balances by the year 2002, according antee you will never see another Gov- sibility to do it. My family is going to to the Congressional Budget Office. ernment shutdown. meet its legal responsibility.’’ When is But, now, where are we? Where are The Republicans do not like that budg- this Congress going to meet its legal the Republicans headed? What is their et. Fair enough. That is why they are responsibility to find and prepare a Republicans. They have different val- plan for balancing the budget? Will budget resolution which keeps up with ues. They do not want to see the in- they stick with this massive tax cut the rhetoric which we have heard now creases in education. They do not want package they cannot pay for? Will they time and again in this Chamber and to see the increases for the environ- turn around and try to cut Medicare across the Nation? again, as deeply as they did last time? ment. They want to give tax breaks to I thank the Senator for her leader- Will they make cuts in educational the very wealthy while the President is ship. I think the President has at least programs like college student loans? targeting those tax breaks to middle- given us a starting document. Now, to Will they cut environmental protection class people who need help sending my friends in the majority, on the Re- efforts, like toxic waste cleanup? I their kids to college, and so on. So that publican side, it is certainly your turn. hope they are not on that course. But is fair game. Mr. DORGAN. I wonder if the Sen- I do hope they are on the course of But now I want to see their budget. ator will yield? meeting their statutory obligation to That is what they have to do. That is Mr. DURBIN. I will be happy to yield. produce a budget resolution, as they their responsibility. They keep saying Mr. DORGAN. One of the reasons we were required to under the law, today, they want a balanced budget amend- do not have a budget brought to the April 15, tax day. ment, as my friend said. That did not Senate on time—and today is the date Mrs. BOXER. Will the Senator yield? do anything to balance the budget. It it is supposed to be here—is because, Mr. DURBIN. I am happy to yield to was just a lot of rhetoric, and some of frankly, the proposal they would offer my colleague from California. us said that at the time. Where is your does not add up, and they know it. Mrs. BOXER. I will be brief. But I plan? The fact is, without one Repub- They are proposing very substantial just wanted to thank the Senator from lican vote we have seen this deficit go tax cuts, the majority of which will go Illinois for, in his very direct way, put- down from $290 billion to what is it to the upper-income folks in this coun- ting this issue before the American now projected to be, $91 billion? That is try, and you cannot balance the budget people. The Senator and I served on the an extraordinary record of accomplish- with the kind of tax cuts they propose, Budget Committee in the House of Rep- ment. especially the kind of tax cuts that will resentatives for many years. And I So all we are saying here in our own go to upper-income folks. serve here on the Budget Committee. I way, it seems to me, and what the Sen- This morning, on NPR, a Republican have never seen a situation like this ator is saying—and I would ask for his commentator said something. I would S3156 CONGRESSIONAL RECORD — SENATE April 15, 1997 like to read it to my friend from Illi- campaign contributions would be the politi- vote to reduce the budget deficit. It has nois and my friend from California, be- cal equivalent of bribery. Blocking that pork been reduced well over 60 percent. Now cause I think it is important. He is feast, by contrast, would send an important we need to do the rest of the job. talking specifically about the capital message: a message that reform of campaign Today is the day by which the budget finance is already underway. gains tax cut, and the Citizens For Tax is supposed to come to the Senate to do Justice provide a chart to show who Again, this is a Republican com- the rest of the job. Why is it not here? gets what from the tax cuts offered by mentator. Incidentally, his last sugges- It is not here because the majority the majority party. The top 20 percent tion is one that I authored as a piece of party cannot bring a budget to the get nearly 80 percent of the tax cuts, legislation. I said, let us take, for every floor of the Senate that adds up that the bottom 60 percent get about 8 per- American—every American—let us give reaches balance. Why can they not do cent of the tax cuts. them an opportunity for a $250,000 cap- that? Because they are proposing very But here is what Kevin Phillips had ital gains income, if they have held the large tax cuts that go, in most cases, to say this morning. He said: asset for 10 years, to be taken with zero to the largest income earners in this It’s time to put [this issue] on the table— tax liability; a quarter of a million dol- country. the argument that because Congressmen and lars during one’s lifetime, zero tax li- The Washington Times had a piece Senators want capital gains tax cuts as a ability if you hold the asset 10 years. the other day from which I want to payoff to their big contributors, that’s a But let’s not go back to the full-blown read a couple of paragraphs: good reason to block it as a powerful begin- capital gains approach, where you hold ning for reforming campaign finance. Major donors told the national committee a share of stock for 6 months and 1 day chairman, Jim Nicholson, they are fed up This is a Republican, Kevin Phillips, and sell it and pay half the tax some- with the party’s congressional leadership who says this morning: one who works all day pays. It’s the and the party can forget about more money Think about it. The experts say that two- same old approach by those in this from them unless the GOP lawmakers enact thirds of the benefit from the Senate Repub- Congress, and there are plenty of them, tax cuts. lican leadership’s cap-gain cut proposal who say: Let us have a tax system that Shorthand for that: Give us our tax would go to the top 1% of Americans income- deals with different groups in different breaks, and we will give you more wise. That’s exactly the same crowd that gives big [campaign] contributions. Anybody ways. Let us decide that those who in- money. This comes from something who believes that linkage is a coincidence vest shall pay no tax and those who called ‘‘Eagles,’’ corporate eagles who probably believes in the tooth fairy, too. work shall pay a significant tax. In give $20,000 a year and individual eagles It is not me speaking. This is Kevin other words, let us have a tax on work who give $15,000 a year. What they are Phillips, a Republic commentator. Let but not a tax on investment. saying is, ‘‘Give us our tax cuts, we’ll me continue. What kind of sense does that make? give you some money. Withhold the tax Let me stipulate. The deficit-cutter case Let us tax work but not tax invest- cuts, we’ll withhold the political con- against the cap-gain cut is overwhelming, ment? There are a lot of streams of in- tributions.’’ too, because it’s such a huge boondoggle. come in this country. Guess who has It is kind of an interesting and dis- Over the next ten years, the Senate’s pro- most of the investment income? Most maying piece, it seems to me. But the posed reduction would cost the government of the folks at the upper level, the fact is, a budget cannot be put together some somewhere between 133 billion dollars same folks who are giving the cam- that proposes the kind of tax cuts the and 237 billion dollars [in lost income]. The paign contributions. majority wants and, at the same time, 133 billion dollar estimate comes from the That is why these plans that say, shows that we are balancing the budg- conservative-run Joint Congressional Com- mittee on Taxation and the 237 billion dollar ‘‘Let’s go ahead and tax work and we et. That is the dilemma. estimate comes from the liberal-run Citizens will exempt investment,’’ and when Job one in this country, in my judg- For Tax Justice. The truth is probably some- they exempt the tax on investment, ment, is to balance the budget. I do not where in the middle, which would be about what they do is propose plans that give happen to think one side is all right 185 billion dollars over ten years, which the bulk of the tax benefits to a very and the other side is all wrong; they would have to be paid for—literally—with small group of upper income taxpayers, have no answers, we have all the an- massive cuts in programs for ordinary Amer- and the result of that is, of course, the swers. That is not the case at all. But icans or with deficit spending. budgets do not add up. we spent a month and a half in this Again, Kevin Phillips, a Republican If the budget does not add up to a Chamber talking about amending the commentator, says this morning on balanced budget, then you cannot meet Constitution of the United States to NPR: the budget deadline of April 15 and require a balanced budget. I pointed Worse still, it’s not a worthy outlay. It’s bring a budget to the floor that com- out then if the Constitution were al- just pork for fat-cat political donors. The pletes what you said you were going to tered 1 minute from now, 2 minutes rate reduction [from capital gains] obviously do, and that is balance the Federal from now there would be no difference isn’t needed to encourage more investment. The last six or eight years have seen enor- budget. The only people in the Senate in the Federal deficit, because chang- mous amounts of money invested under the who have done what is necessary to ing the Constitution does not change present tax rate. And experts have scoffed at take this country on a road to a bal- the deficit. The only way you change claims in which hired economists say the anced budget are those who, in 1993, the deficit and reach a balanced budget cuts are badly needed for capital formation. stood up here in the face of opposition is the individual taxing-and-spending Even Herbert Stein, a former Republican and in the face of criticism and said, decisions. That is why asking the ma- Chairman of the President’s Council of Eco- ‘‘Count me in, this is a deficit reduc- jority party who controls Congress and nomic Advisers, argues that only economic tion package. I am willing to vote for controls our agenda to bring a balanced activity that could be counted on from a cap gains cut would be more activity by account- it and it is tough medicine because it budget to the floor today on April 15, ants and lawyers in converting other income cuts spending and does increase some which is the deadline in law for them into capital gains. revenue, but count me in, because I am to do so, is an important and right Again, Kevin Phillips continuing. He for reducing the budget deficit.’’ thing for them to do. says: I was one of those who voted for that. Mr. President, I yield to my col- Cutting the capital gains rate across the The easiest vote by far would have league, Senator CONRAD, who has com- board, for every kind of quick-buck tax ploy, been to say, ‘‘I’m AWOL, I’m out of ments on this same subject. I yield him isn’t policy, it’s pandering. It isn’t serious here, don’t count on me for a vote. All as much time as he may consume. legislation, and Congress knows that; it’s a I want to do is talk about balancing The PRESIDING OFFICER (Mr. AL- payback to big contributors. Relief for small the budget, and when it is time to do LARD). The Senator from North Da- businessmen, like for homeowners, may jus- something about it, I am gone.’’ kota. tify giving every household a one or two I did not do that, nor did the major- Mr. CONRAD. Mr. President, today is hundred thousand dollar lifetime capital ity of my colleagues. We passed that an important day for Americans. April gains exemption. But tens of billions of dol- lars worth of cap gains cuts for the people bill by one vote. We did not get one 15 is the deadline for all Americans to who’ve just flooded the Republican and vote from the other side of the aisle. file and pay their individual taxes. I Democratic parties with hundreds of mil- Those who talked the loudest about know that, I was signing my returns lions of dollars worth of record-level 1995–96 balancing the budget did not offer one yesterday to make sure they were sent April 15, 1997 CONGRESSIONAL RECORD — SENATE S3157 off. I had to write a check—not as big The unified deficit for that year was the economic future of the country. a check as last year, I was glad for $79 billion. It promptly shot up to over This chart shows our children’s eco- that, but, nonetheless, had to pay some $200 billion and largely stayed that way nomic position in the year 2035 in additional tax in addition to what was through the Reagan administration. terms of the gross national product of withheld. All across America, people Then the Bush administration came the United States. This is on a per per- are engaged in that last moment of into office and started with a unified son basis. frantic scrambling to make sure they deficit of $153 billion. By the time the Very recently, the Congressional file their taxes. Bush administration was finished, they Budget Office issued a report and told Today is another deadline as well. had a deficit of $290 billion. us this: If we fail to act, the per capita Today is the deadline for the Congress Then President Clinton came into of- size of our economy will be $33,200 in of the United States to pass the budget fice, and the first year, the unified defi- the year 2035. But if we would balance for the year. And that gives rise to the cit was $255 billion, and each and every the budget on a unified basis—and I do question that I put on this chart: year, the deficit went down: $203 billion not consider a unified balance a true Where is the budget? We are not going the second year of the Clinton adminis- balancing of the budget, but at least it to pass a budget for the next year here tration, $164 billion the third year, and is a step in the right direction—then today. There is not even one before the this chart shows $116 billion, but it ac- the per capita size of our economy U.S. Senate. But it is even worse than tually wound up somewhat better than would be $40,900 in the year 2035. We that, because the Budget Committee that. The deficit came in at $107 bil- would have much more income per per- had a deadline of April 1, and we have lion. son in this country if we moved toward not even considered a budget in the All of that occurred because we put balancing the budget. That is the mes- Budget Committee. in place a budget plan in 1993 to cut sage of this chart. I am a member of the Budget Com- spending and, yes, raise revenue on the Why is that the case? It is the case mittee and have been a member for 10 wealthiest among us. The wealthiest 1 because if we are not deficit spending, years. There is no budget that the Re- percent of this country were asked to we are not eating into the societal sav- publicans—who control the U.S. Senate pay somewhat more, and we cut spend- ings account. The more savings you and the U.S. House, and, as a result, ing about $250 billion over a 5-year pe- have, the more investment that is pos- they control the budget committees— riod. Over 10 years, that deficit reduc- sible. The more investment you have, have put before us. We have the budget tion package reduced the deficit $2.5 the stronger the economic growth. from the President which they have trillion. That is an extraordinary That is the key to the future of Ameri- criticized, but we have no budget from record of deficit reduction. In fact, now ca’s economy, and it is why it is criti- them. Mr. President, it is time for we are told that the unified deficit this cally important to actually balance the those on the other side of the aisle to year, the year that will end on Septem- budget. It is not just some abstract come forward with their budget pro- ber 30, will come in at about $91 billion. idea. It is critically important to the posal. That will be 5 years in a row of deficit economic future and health of Amer- What we have heard from them is reduction. ica. endless proposals for tax cuts aimed at I just think if we are going to have a Mr. President, we hear some on the the wealthiest among us. We have serious debate here over who has done other side saying they are going to cut heard the Speaker even assert that we what, then we ought to look at the this tax, that tax, we are going to cut can eliminate capital gains taxes and facts, and we ought to talk about who, all taxes. On our side, we say we ought eliminate estate taxes and have a in fact, did have the courage to stand to have targeted tax relief. Middle- major tax cut for children, but he does up and vote for that 1993 budget pack- class families need tax relief. We are in not put forward a plan that shows us age, which the other side said would favor of that. When we start talking how this would all add up. crater the economy. They said it would about reducing taxes that primarily Where would the cuts be to not only increase the deficit. They said it would are paid by the wealthiest among us, it eliminate the deficit, but to pay for the increase unemployment. They said it really does not make sense to do that tax cuts? There is no plan. It is easy to would reduce economic growth. talk about things we would all like to They were wrong on every single and jeopardize balancing the budget. have if you do not ever have to make it score. It reduced the deficit every sin- Why not? Because the biggest help that add up. The difficult part of the budget gle year. It reduced unemployment. We we can be to this economy is to balance process is to try to come up with a plan have had nearly 12 million jobs created that budget. that will balance the budget. All of us in the United States since we put that Let me just indicate that when peo- know that requires spending cuts. plan in place, and we have had a large ple start talking about what will help Spending cuts are painful. We also economic expansion in this country. promote growth in this economy, they know that there is a need for tax re- That is the record. Those are the facts. look closely at the benefits of bal- duction in the country. If we are going to finally achieve clo- ancing the budget. Balancing the uni- I have supported a plan. We had the sure of this and actually balance the fied budget is expected to reduce inter- centrist coalition last year, 10 Demo- budget, then it is going to take both est rates by about 1 percent. In an crats, 10 Republicans, that worked to- sides working together, because the economy with $14.5 trillion in non- gether for hundreds of hours and put Republicans control the Congress, the financial sector debt, a 1-percent re- together a plan that was a consensus of Democrats control the White House, duction in interest rates means an $145 our group on a bipartisan basis. We and nothing is going to happen unless billion boost to the economy in 1 year. brought that plan to the floor of the we work together. That dwarfs any of the tax cuts that Senate, and we received 46 votes, about Last year, those of us who partici- are being talked about in terms of pro- evenly divided between Democrats and pated in the centrist coalition that in- viding a lift to the economy. Republicans. Frankly, that is what it volved Democrats and Republicans on So the truth of the matter is the best is going to take again this year. But an equal basis found the effort one of tax cut that we can give, the best tax when I hear our friends on the other the most rewarding we have engaged in cut, the most effective tax cut, is one side of the aisle assert that it is this while we have been privileged to be that leads to a balanced budget. The side of the aisle that is responsible for part of this body, because we did work only way we do that, obviously, is to budget deficits, I think we then have to together. Nobody was running out and cut spending that has contributed to talk about the record and talk about holding press conferences attacking the budget deficit, and have a revenue the facts. the other side. Nobody was trying to stream that balances with the spend- Here is the record and here are the get over on the other side. There were ing. That is how you balance a budget. facts. If we look at the last three ad- no raised voices. There was calm rea- It is not just spending. It is the com- ministrations and look at the record on soning to try to achieve a result that bination of spending and revenue that the deficit, it is very clear who has per- we all understood was important for has to be in balance. formed and who has talked. our country. So those who talk about massive tax This is the record during the Reagan Why is it important for the country? cuts will have to come down here at administration. He took office in 1981. Mr. President, what is at stake here is some point with a plan that shows how S3158 CONGRESSIONAL RECORD — SENATE April 15, 1997 it adds up. They have not done it. They together to get a plan that does bal- ble the defense budget—that was the did not do it by April 1 in the Budget ance. That will be the best thing we Reagan recipe, double the defense Committee which was their respon- can do for American taxpayers and the budget—cut taxes, and you end up with sibility. They have not done it by American economy. It will mean great- very large deficits. That does not come today, which is by law their respon- er economic growth. It will mean a from me. That comes from David sibility. So we are waiting. We are ask- stronger economy. As I indicated, a 1- Stockman, who did it, who wrote a ing the question, where is the budget? percent reduction in interest rates, book afterward and said what a terrible When they come with a budget plan, it which is what the economists tell us thing to have done, and then we bear needs to add up. That is in the long- we will get if we balance the budget, the results of that. term interests of the United States. will save those who have debt—cor- But those of us who in 1993 cast Mr. President, I will yield the floor. porations, individuals, families—$145 tough votes for a plan that said do Mr. DORGAN. Mr. President, let me billion in a year. That will provide what is necessary to march down the ask the Senator from North Dakota a more lift to the economy. That is the road to really balance the budget, we question. Senator CONRAD is on the best lift we can give this economy of have taken tough steps to do this. We Senate Budget Committee and, as he anything that we could do. have marched in the right direction, indicated, the legal date for the com- We favor targeted tax relief to mid- but we are not there. We get there pletion of work on a budget by Con- dle-income folks that, in fact, are when we have balanced the budget. gress is April 15. In fact, a couple of under a lot of economic pressure. That Senator CONRAD is talking about the years ago, we heard some folks here on makes sense. Some of these tax requirement to do that. the floor of the Senate and in the schemes the people have floated that I personally would like to see us es- House say, ‘‘The President is irrele- give the overwhelming weight of the sentially say, balance the budget first, vant. We control the Congress. We will tax reduction to the wealthiest among and then talk about the Tax Code. write a budget and we will ram this us, and then do not permit you to have There is plenty wrong in the Tax Code thing home. It does not matter what a plan that adds up, does not make any to the extent the upper income folks do the President thinks.’’ sense. It is not the right course for the not pay what they should or to the ex- Now we hear the story, ‘‘What the country. I think that is why they real- tent $30 billion that corporations ought President thinks matters to us. We will ly have not come up with a plan. They to be paying, they are not. That means not do a budget unless the President have not begun to come up with a plan working people are paying higher taxes comes to the table.’’ The President because most of those who have tried than they should. We ought to relieve submitted a budget, but my under- to get these numbers to add up know them of that burden. standing is that the Budget Committee that they do not. What I would like to do is balance in both the House and Senate have not Mr. DORGAN. I ask the Senator, did the budget and then turn to the Tax moved forward to say, ‘‘Here is what the Senator hear my reading of the Code and make the right decisions we in Congress think ought to com- Washington Times story in which the about the Tax Code. The right decision prise a budget.’’ Eagles from the Republican Party said is not to say those who invest shall be Again, my notion is that it was not to the party chairman, look, we are not tax-exempt and those who work shall done because there is not any way to going to contribute more money if you be taxed. In effect, saying as they do add this up. If you want to give giant do not give us some of these tax every day, tax work and exempt inves- tax reductions, most of which will go breaks. We are tired of contributing tors. Gee, that sounds pretty good for to the upper income folks, and say that money and getting nothing for it. That those folks, because guess who sup- is what we promised, but we also prom- is not quite the way they said it, but it ports them? The investors. They are ised a balanced budget, the best way to is how it reads. saying exempt the folks who support avoid the conflict of a budget that does It reminds me of the movie ‘‘Jerry not add up is to not submit one, do not McGuire,’’ toward the end of the movie us, and tax all the working folks. What show your hand. the fellow is knocked out of the end about exempting workers? Capital Is that what is happening in the zone, laying there holding the football, gains cut—what about a workers’ gains Budget Committee? and gets up and rushes around the sta- cut? Is there not a workers’ gain when Mr. CONRAD. I am afraid it is. The dium. If you remember his chant dur- you have a circumstance where you law says: ‘‘Before April 15 of each year, ing the entire movie ‘‘Show me the have an increase in productivity but the Congress shall complete action on money, show me the money.’’ That is you have inflation that devalues some a concurrent resolution on the budget what that message was in the Washing- of their earnings? What about a work- for the fiscal year beginning on Octo- ton Times report from the Eagles, ers’ gains cut? Why is it always cap- ber 1.’’ ‘‘Show us the money.’’ ital? They say no, tax work and exempt We are not just supposed to have The dilemma here is you cannot cut investors. What a wrongheaded ap- completed the budget in this Chamber. $500 billion or $550 billion in taxes and proach. Yes, help investors, but you do The entire Congress is to have com- promise everything to everybody and not help investors by saying, ‘‘By the pleted the budget plan by today. We then come to the floor of the Senate way, you are a privileged group of peo- have not even started. We have not and say, ‘‘By the way, here is our plan ple. You get to be tax-exempt,’’ be- even started in the Senate Budget to balance the budget.’’ Cut your reve- cause they are so intending to do that Committee to consider a plan. I fear nue by half a trillion dollars and then in such a significant way there is not the reason is that our colleagues on the balance the budget? No, what you do is any way to add this up. other side and all over America in the create a giant hole and increase the There is only one arithmetic book, last campaign promised they would cut Federal deficit. and you start when you are young. this tax, that tax, and every tax, and We had a fellow named Laffer who Adding is simple. One plus one equals when they came back here to try to see constructed the Laffer curve, used in two, two plus two equals four, and I how it would add up, they find, wait a the early 1980’s. It turns out to be a can go further than that because I went minute, it does not add up. In fact, the ‘‘laugher.’’ He said, ‘‘You can cut the to a pretty good school, but it does not only way you can get it to add up is to taxes, especially for those at the top, add up. have cuts that are even deeper than the because we believe in trickle down, Today is April 15. The budget is sup- ones they proposed last year in Medi- where you pour in at the top and it all posed to be here by law. Tonight, every care, education, and environmental trickles down to help everybody else.’’ newscast will show there is a traffic protection. Some of us believe in the ‘‘percolate jam at the post office because people So our friends on the other side have up,’’ give something to the bottom and are pushing to file their return for a real problem. The problem is their it percolates up. Nonetheless, the April 15, but the deadline to bring a rhetoric does not match reality. The Laffer curve would have substantial budget to this floor of the Senate is not problem is they do not have a plan that cuts, and somehow you balance the going to be met. adds up. It does not balance. budget. Guess what? The folks that run this As I said in my statement, what is What happened was the largest defi- place will be sleeping at midnight. critically important is that we work cits in the history of this country. Dou- They will not be in the post office or April 15, 1997 CONGRESSIONAL RECORD — SENATE S3159 driving around looking for a mail drop. change the Senator,’’ and the Amer- roof. In fact, right now, interest costs They will be sleeping. Why? Because ican people said ‘‘fine, that is what we are estimated at $360 billion for 1997. their plan does not add up. will do.’’ But instead of getting change, That was the CBO figure before the in- Mr. CONRAD. Maybe they ought to instead of getting a proposed budget crease in interest rates. So the figure is have to file for an extension. where we pay up here for the Govern- now around $1 billion a day—$365 bil- Mr. DORGAN. Maybe we should ask ment we are giving, we get into this lion, or even more. before the 12 o’clock postmark is nec- big folderol about leadership and ev- Mr. President, today is April 15. essary, maybe at least they ought to erything else. Today, everyone is required to pay file for an extension today. Under the Constitution, the Congress their income tax. I just got this table Mr. CONRAD. If I could just add, I legislates, the President executes. It is from CBO which says the total amount think one of the things that gets lost is our responsibility to legislate. In fact, paid in individual income tax is esti- why balancing the budget has so much the concurrent resolution for a budget mated to be $676 billion. We are already merit. If we balance the budget and the is not even signed by the President. 61⁄2 months into our fiscal year. There- economists are correct that that would Yet, this weekend I had to listen to the fore, when I say a billion dollars a day reduce interest rates by 1 percent, that distinguished chairman of the Budget in interest costs, what I am saying is would mean on a typical mortgage, a Committee on the House side, Mr. KA- that the people of America worked savings of $900 a year. Over 5 years it SICH, say, ‘‘If the President could only from October of last year up until would be over $4,500 in savings for a show leadership and step up to the today, income tax day, April 15, for homeowner. On a car loan, that would plate.’’ They have all the jargon and what? To pay for the wasteful interest be savings of $400, and approximately litany—‘‘if he can only show some re- costs in Government, and this charade $1,000 a year in savings to the typical sponsibility,’’ and ‘‘if he only had the that continues. Half of our Nation’s in- North Dakota farmer because of inter- courage.’’ Well, he has put up a budget. come taxes go to pay for interest costs est savings. He maintains that his budget is bal- on the national debt. Even if we get a I think we have to keep our eye on anced by the year 2002. There is a seri- little bit of savings from the CPI, a lit- the ball here. The first and most im- ous question about that, obviously. But tle bit from Medicare, we are still way portant step we can take is to balance at least he put up a budget. Now, from off. I will be joining with the Blue this budget. That will reduce interest January to June, we are still hearing Dogs; we are working out the figures expenses on nonfinancial sector debt by the chairmen of the Budget Commit- right now for a budget freeze—no in- $145 billion. That will provide enor- tees on both sides of the Capitol asking crease in taxes, no cut in taxes, no mous lift to this economy. That is real- for leadership and courage and every- back-end loading. And even then, with- ly the single best thing we could do for thing else, when that is what they out the borrowings, it is going to take the country. asked the American people for and re- you 5 more years, until 2007 rather I yield the floor. ceived. We have a Republican Congress; than 2002, for a true balanced budget. Mr. DORGAN. Mr. President, how where is the Republican budget? It is The American people should under- much time is remaining? just totally out of whole cloth around stand that we are playing a game up The PRESIDING OFFICER. The time here; we can’t get the truth about here to buy the vote, so we can all get controlled by the minority will expire where we are. reelected again next year. We have at 11:30, so you have 2 or 3 minutes. Now, going right to the point about been doing that for the past 16 years You can extend that by unanimous- their being derelict as to their respon- with this silly Reaganomics and the consent request. sibility. All of us have been derelict as litany of growth, growth. One fellow, Mr. DORGAN. I had asked unanimous to the reality of the deficit. All you Stevie Forbes, wrote ‘‘hope, growth, consent at 10:45 when we began to need do is the simple arithmetic to find and opportunity.’’ You turn on all the begin the hour allotted to the majority out how much the debt increases each programs, and the discussions are all leader, and that was my intention in year and to determine your deficit, not about inheritance taxes and the capital the unanimous-consent request. this unified Mickey Mouse thing which gains tax. ‘‘Just do away with the IRS The PRESIDING OFFICER. The Sen- uses borrowed funds. The unified defi- and the income tax,’’ they say. We are ator is correct. The Chair apologizes. cit is the one that was used all of last talking out of whole cloth. We act like Mr. DORGAN. I yield the remaining year during the campaign, and it was that is reality. We cannot afford tax time to the Senator from South Caro- used the day before yesterday on the cuts. Look at the figures. The domestic lina, Senator HOLLINGS. Sunday morning talk shows. David budget is $266 billion. The defense f Broder used it in his column, and all budget is $267 billion. Look on page 36 the responsible writers use it. The of your budget book. Entitlement TRUTH IN BUDGETING number they use is $107 billion. Totally spending is $859 billion. That comes, Mr. HOLLINGS. Mr. President, I rise false. Totally false. Mr. President, to $1.382 trillion. Then this morning to discuss truth in budg- To get the actual deficit, you just you add interest costs of $360 billion, eting. Let me emphasize ‘‘truth in subtract the increase from one year to and that is $1.742 trillion. To get down budgeting.’’ We do not appreciate, Mr. the next, and you can find that the ac- to CBO’s projected revenues of $1.632 President, the reality. The reality is tual deficit was $261 billion. How do trillion, we have to cut $110 billion. that we are giving billions and billions they get to the $107 billion? Well, Mr. Now, that’s the job that we have at more in Government than we are will- President, they borrow $154 billion. hand—not capital gains, not inherit- ing to pay for. You borrow $154 billion from Social Se- ance taxes, not getting rid of the IRS In fact, Mr. President, from the year curity, from Medicare, from the civil and income taxes. Yes, taxes are too 1945 when President Truman was in of- service retirement, from military re- much. Why are they too much? Be- fice until 1980, when President Reagan tirement, and you go right on down the cause of the interest costs on the na- came in, the deficits were an average of list until you get to $107 billion. Why tional debt. If you go back to 1980, it $20 billion. Whereas for the last 16 not borrow that $107 billion and say the was $74.8 billion. We have literally years, the average has been $277 billion. budget is balanced? added just about $300 billion in interest So for the last 16 years everybody is What kind of gamesmanship are we costs on the national debt that must be running around and pointing fingers as playing? When are we going to get the paid up first. It is just like taxes. You to the blame, while we have been giv- truth out of the free press in America might call them an increase in taxes ing $277 billion more in Government and quit quoting a silly figure that each day of $1 billion. We are running than we are willing to pay for. doesn’t reflect the reality. The reality, around here cutting taxes while we are Now, a couple of years ago, my dis- Mr. President, is when that deficit increasing their taxes $1 billion a day. tinguished colleagues on the other side grows to $261 billion this year, and you But if you had that $300 billion, Mr. of the aisle kept saying, ‘‘If you want add that amount to the debt and the President, we could balance the budget, to change the Congress you have to existing interest costs, this conduct, we could get improve technology, we change the Congressman. If you want along with Mr. Greenspan’s, causes could pave the highways, repair the to change the Senate, you have to your interest costs to go through the bridges, give more student loans, and S3160 CONGRESSIONAL RECORD — SENATE April 15, 1997 we could have double the research at TAX DAY 1997 tlemen, you finally start working for NIH. We could do all these things. Mr. BROWNBACK. Mr. President, I yourself instead of the Government. Up Taxes are too high. But why are they appreciate very much the opportunity until May 9, you are effectively work- high? For the silly charade. There is no to be able to address the American peo- ing for the Government, paying your better word for this off-Broadway show ple on a very difficult day. I would like taxes to carry this huge, large Federal that goes on out here, without the re- to recognize a couple of things that Government that is too big. ality, without the truth in budgeting. have been said by previous speakers, to The issue is not that we should raise These people act as if we have the lux- start off with. taxes to balance the budget; the issue ury of cutting taxes because they are I congratulate the President on the is, we should cut taxes and cut the size, too high. reduction of the overall deficit that has the scope, and the intrusiveness of the You have to cut the interest costs on taken place during the past 4 years, be- Federal Government to liberate the the debt. You have to start paying for cause the deficit has gone down. But American people. Today, a family of four must send the Government we have. They have what I also want to point out to the both parents into the workplace to pro- been meeting since January to decide American people is there are a couple vide for the same standard of living how can we get both sides to go along of ways of doing this. In the first 2 that was once provided by only one with a fraud; one grand fraud is what years of President Clinton’s time in of- parent. Is that a way to support the this is. You know it, and I know it. We fice, with a Democratic Congress, they family across America, that we have to will get my budget realities chart up did it by raising taxes. In the second 2 have both parents going out and work- here later on, and I will be glad to give years, with a Republican Congress, we ing just to support the family? Is that people copies of it. lowered the deficit by cutting spend- ing. Now, you can go either way on a way to have strong families across There is no question in my mind that this; you can raise taxes or cut spend- the country? I don’t think it is. this fraud has to be exposed because ing. I happen to believe that, in the Unfortunately, even with both par- these interest costs, which are really long term, when you raise taxes, you ents working, our families are still taxes, are eating us alive. By cutting are going to cut your revenues and it is often unable to get ahead. Living pay- taxes, we are really saying ‘‘let’s in- going to make things worse. The point check to paycheck has been the norm crease the deficit, the debt, and inter- of it is, on tax day, we should be talk- for American families for as long as est costs.’’ If the people don’t under- ing about the level of taxes; they are our Federal Government has grown as stand that, every one of these writers too high in this country. The way to large as it as, consuming more and should tell you that. It is not com- reduce the deficit is by cutting spend- more. plicated at all. All you have to do is go ing. That is not the way it was done in Taxes hurt America’s families. They from year to year. And we are still the first 2 years—by raising taxes. punish good investment, they stifle en- going to borrow from the Social Secu- The second thing I would like to re- trepreneurial activity, and they ham- rity, which is illegal. We passed a law spond to that has been raised by the per true economic growth. That is why of the Budget Act, section 13301, that other side of the aisle is capital gains I support a tax limitation amendment said thou shalt not use Social Security taxes. That certainly needs to be cut, and insist that any budget deal must trust funds in order to lower the deficit along with some others, and along with provide for meaningful tax relief. or in reporting it. Yet they violate it. a $500 per child tax credit for working Balancing the budget and cutting They are running around wanting to and struggling families. taxes are not mutually exclusive goals, know who slept in the Lincoln bedroom I find it interesting that, as we look as some would have you believe. In or who flew on the Air Force One forward to working with the issue of fact, balancing America’s budget vir- plane. Come on, when are we going to Washington, DC, the District of Colum- tually requires that we cut taxes. In get to work on the real problem? That bia, and rejuvenating the District of the long run, it will be more difficult is why the American people have no Columbia, a metro area that has great to balance the budget if we do not confidence in this institution up here. difficulties in this country, one that we shrink the size of our Federal Govern- We don’t tell the truth. I remember my have had a lot of problems with which ment with significant tax cuts. And friend, Bill Proxmire, who got up here are well known to this Nation—do you what we are doing today is happening every day on a certain treaty. Finally, know what the other side of the aisle is across this country. We have a good after about 6 or 7 years, he got some at- proposing to rejuvenate Washington, economy that is growing strong. We tention. I don’t know whether people DC? What ELEANOR HOLMES NORTON, are having an economy that is produc- would give me that much time, but I along with Jack Kemp, is supporting to ing more revenues coming into the am going to have to start taking time rejuvenate Washington, DC? They are Federal Government. We need that to every morning hour to show the reality proposing a zero capital gains tax rate continue to take place if we are going of what we are doing. No, you can’t on real property. Both the left and the to be able to balance the budget. You balance the budget and pay for the progrowth ring on the right in this need to have growth taking place in Government this next year, but you Congress are proposing zero capital the economy. That is the critical na- can put us on a truth course. If you saw gains for Washington, DC. Why would ture of cutting taxes. It continues to that chart my distinguished colleague they do that? If this is such a bad thing stimulate growth so we can have those Mr. CONRAD had, you will find that the to do, why are we doing it to Washing- revenues coming in and balance the deficit went way down in 1985 and 1986. ton, DC? Because they know it will budget, and it is not enough to just In 1985 and 1986 was during Gramm– stimulate growth, hope, and oppor- balance the budget. Rudman-Hollings, and this was when tunity. That is being put forth by EL- As my good colleague from South we really cut the deficit. EANOR HOLMES NORTON and Jack Kemp. Carolina has pointed out, we need to These are things that I think people start paying the debt down so that in- I appreciate the indulgence of the have to realize. When you make those terest levels can go down. Chair. I yield the floor. sorts of cuts, it stimulates the growth The tax limitation amendment is a The PRESIDING OFFICER. We are overall taking place in the economy. simple amendment requiring a super- now into the time reserved by the Sen- Now, the month of April—particularly majority in both Houses in order to ator from Wyoming. April 15—I think serves as a powerful raise taxes; in other words, more than The Senator from Kansas [Mr. reminder of the size and scope of the a majority. You have to have a super- Federal Government. Even though majority. And we should do that so BROWNBACK] is recognized. America will pay its taxes today, that we don’t just shift this Govern- Mr. BROWNBACK. Mr. President, I Americans will not be freed from tax- ment from being debt financed to being ask for 5 minutes of the time reserved ation. They will not experience tax tax financed. We need to be able to, by the Senator from Wyoming to speak freedom day until May 9. Last year, it overall, force the Government to be on the issue of taxes. was May 7. This year, it goes up 2 more smaller and to live within its means in- The PRESIDING OFFICER. The Sen- days, and it won’t be until May 9. In stead of taking more of those means ator has that right. other words, on May 9, ladies and gen- from hard-working American families. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3161 Later today the House will vote on but the code is so intrusive anymore Mr. DOMENICI. Mr. President, I ask the tax limitation amendment. I be- that it is more about trying to cause unanimous consent that the order for lieve this vote will send a strong mes- you to do something or your business the quorum call be rescinded. sage to the American people that the not to do something rather than being The PRESIDING OFFICER. Without Republicans in the House are commit- about raising revenue for the Federal objection, it is so ordered. ted to truly reducing the tax burden in Government. The Tax Code is about so- Mr. DOMENICI. Mr. President, par- America. The Senate had an oppor- cial engineering out of Washington in- liamentary inquiry? Is there an order tunity to unify with the House and stead of about what it raises for the for people to speak at this point? show their support for this amendment Federal Government. You can see that, The PRESIDING OFFICER. The ma- but balked at the opportunity late last just by the sheer number of words and jority controls the next 46 minutes. week. I think that is an unfortunate the volume of words that are involved Mr. DOMENICI. I see Senator KYL. reality that too many people lack the in the Tax Code. Did he plan to speak next? wherewithal to stand up to the tax- Mr. President, April 15 is a tough day Mr. KYL. I am ready. and-spending regimes of this Govern- for a lot of Americans, and people Mr. DOMENICI. I have not spoken ment and say no—just say no—to fu- aren’t to happy about it. They should yet. How long would he speak? ture tax increases. not be, because their level of taxes are Mr. KYL. Five minutes. Because Congress has lacked the will too high. Mr. DOMENICI. Could I yield the in the past on both sides of the aisle to I have had people call in on radio floor, the Senator from Arizona speaks stand up to a flawed Keynesian eco- call-in shows. I had one in Saline, KS, for 5 minutes, and then I could be rec- nomic principle that our Government that was so memorable to me. A gen- ognized for about 7 minutes? has used in its fiscal policy, that has tleman called in and he said, ‘‘You The PRESIDING OFFICER. Without hurt economic growth and that has know, Mr. BROWNBACK, I believe in objection, it is so ordered. hurt our families. serving my country. I have done every- The Senator from Arizona. I think what we have to do clearly in thing I could to serve my country. I Mr. KYL. Thank you. the future is we just have to stand up served in the military. I am married. I Mr. President, first let me thank the and say no to more big Government have two children. I am doing every- distinguished chairman of the Budget programs, to put policies in place that thing I can to work hard. But let me Committee. I am glad I don’t have to reduce that tax burden, that release tell you, you guys are just taxing me follow his remarks. So I am pleased to the American people, their opportuni- out of my family’s existence. I can’t speak before he does. ties, their entrepreneurial spirit, and continue to support my family off of Mr. President, T.S. Eliot once wrote their families to grow and to prosper. what you are taking for taxes. I believe that ‘‘April is the cruelest month.’’ Of Government must be cut. Taxes must in America and I believe in this coun- course, he was referring to the change be cut. try. But I just can’t keep carrying this of seasons—of ‘‘mixing memory with Mr. President, I want to quote the burden. It is too heavy. It is too much. desire.’’ Millions of Americans would President of the United States who, a Can you lift it off of me?’’ probably agree with Eliot about April If we will help that man in Saline, couple of years ago, made a very clear being the cruelest month, but for a far KS, he will not only start working statement to the American people. It different reason. It is, of course, on harder and earning more and taking was resonating very clearly, which the April 15 that income taxes are due. care of that family better, which is at American people wanted to believe. By midnight tonight, millions of the core of the cultural renewal that But they know it is just not true yet. Americans will have finally completed we need to take place in the family, And it may end up being the signature their income tax returns. According to but he is going to be even more of a pa- statement of this President. ‘‘The era estimates by the Internal Revenue triot if we just release him a little bit of big Government is over.’’ Well, the Service, Americans will have spent 5.4 instead of requiring him to work until billion hours on tax-related paperwork. era of big Government unfortunately is May 9 just to pay his taxes. Let’s let only over in rhetoric. In practice, it re- The Tax Foundation estimates that the him work a little bit more to raise his cost of compliance will approach $200 mains, and more is even being proposed family. by the President. billion. This day should focus on tax policies, If that is not evidence that our Tax To end the era of big Government, we on the failings of tax policies across Code is one of the most inefficient and must end the era of big taxes and a big the United States, on what its impact wasteful ever created, I do not know Tax Code. I want to point out to you, is, and on the theory that if you tax what is. Money and effort that could Mr. President, and others about the something, you get less of it, and if you have been put to productive use solving size of the Tax Code. This is something subsidize something, you get more of problems in our communities, putting that Steve Forbes has made us familiar it. with. But I think it is pretty good on a We have too much tax which is hurt- Americans to work, putting food on the graphic. ing too many people. It is hurting us in table, or investing in the Nation’s fu- Just look at the words that govern growth. It is hurting families. It is ture are instead devoted to tax prepa- our lives and the important documents hurting us in the opportunity to create ration. And that is a waste. that have taken place. You can see an era after era of big Government. It is no wonder that the American that they do not necessarily have to be And an era after the era of big Govern- people are frustrated and angry, and documents with a lot of words to have ment, I think, is one of an unlimited that they are demanding real change in a great deal of meaning. The Declara- America. But it is one in which we the way their Government taxes and tion of Independence—1,300 words— have to reduce the tax monster to be spends. which declared our independence and able to get to that. Mr. President, the House of Rep- more vision of a National Government. I am happy to be able to speak about resentatives is today considering a pro- The Holy Bible—773,000 words are in the issue of tax freedom which is not posed constitutional amendment that this document that so many people with us yet. But it is a day I hope peo- represents the first step in the direc- read and go to with reverence. ple will recognize the importance of— tion of the kind of fundamental tax re- The U.S. Tax Code—this is just the of what tax policy has done, how much form the American people have been code; this is not the regulations that needs to be changed, and how we need demanding—it would require a two- underpin the code that direct all of our to limit taxation taking place in this thirds majority vote of the House and lives. But the Tax Code itself is 2.8 mil- Nation. Senate to approve tax increases. Why lion words. If you add the regulations I yield the floor. do I say that it is the kind of reform to it that go forward with setting out Mr. President, I suggest the absence the people are demanding? Because a what this code actually means and in- of a quorum. third of the Nation’s population has terpreting it, we are up to 10 million The PRESIDING OFFICER (Mr. now imposed such limits on their State words governing our lives. ENZI). The clerk will call the roll. governments, and voters have approved The truth of the matter is, on the The assistant legislative clerk pro- tax limits by wide margins. In Arizona, Tax Code, not only are taxes too high, ceeded to call the roll. for example, tax limitation passed with S3162 CONGRESSIONAL RECORD — SENATE April 15, 1997 72 percent of the vote. In Florida, it taxes than it does on food, clothing, agree without equivocation that some- passed with 69.2 percent of the vote; in and shelter combined. According to the thing has really gone awry. Nevada, with 70 percent. Tax Foundation, Federal taxes amount On October 13, 1913, President Wood- The tax limitation amendment, to about 27 percent of the family’s row Wilson signed the bill enacting the which I introduced in January, now has budget, and State and local taxes income tax law under the authority of 22 Senate cosponsors. It is something consume another 12 percent—for a the 16th amendment to the Constitu- that was recommended by the National total of almost 39 percent. But spend- tion of the United States—October 13, Commission on Economic Growth and ing on food, clothing, and shelter totals 1913. The entire law was 14 pages long. Tax Reform. The commission, chaired only about 28 percent of the family Slightly more than 1 percent of the by former HUD Secretary Jack Kemp, budget. And families still have to find population had incomes large enough advocated a supermajority require- a way to pay for everything else they to be subject to the new tax. ment in its report on how to achieve a need—for example, medical care, trans- The New York Herald predicted that simpler, single-rate tax to replace the portation, education, and an occasional many new taxpayers would proudly dis- existing maze of tax rates, deductions, vacation or dinner out—out of the mea- play their income tax receipts as evi- exemptions, and credits that makes up ger amount that is left after taxes. dence of the fact ‘‘that their value and the Federal income tax as we know it So what the tax limitation amend- standing in the commercial world was today. ment says is that Government already worthwhile.’’ So people were pleased to Here are the words of the Commis- takes far too much from hard-working pay their taxes and held up their re- sion: Americans and should at the very least ceipts to indicate that they had accom- The roller-coaster ride of tax policy in the take no more, unless there is a very plished something meaningful in the past few decades has fed citizens’ cynicism broad and bipartisan consensus in Con- United States, they had gotten some- about the possibility of real, long-term re- where. form, while fueling frustration with Wash- gress and around the country. A second point. There is no small According to the Treasury Historical ington. The initial optimism inspired by the Association, when the first income tax low rates of the 1986 Tax Reform Act soured irony in the fact that it would have into disillusionment and anger when taxes taken a two-thirds majority vote of the was due—listen to this—throngs of new subsequently were hiked two times in less House and Senate to overcome Presi- taxpayers crowded the IRS offices to than seven years. The commission believes dent Clinton’s veto and enact the 1995 pay and some of them were glad to be that a two-thirds super-majority vote of Balanced Budget Act with its tax relief there. There are throngs at the post of- Congress will earn Americans’ confidence in provisions. By contrast, the President’s fice today mailing in their tax forms. I the longevity, predictability, and stability of daresay few are glad to be there. record-setting tax increase in 1993 was any new tax system. At the time of the enactment, Rep- enacted with only a simple majority— Mr. President, tax reform cannot suc- resentative Cordell Hull, the chairman ceed without a supermajority require- and not even a majority of elected Sen- of the Ways and Means Committee, la- ment for raising taxes. In the decade ators, at that. Vice President GORE beled the income tax ‘‘the fairest, most since the last attempt at comprehen- broke a tie vote of 50 to 50 to secure equitable system of taxation that has sive tax reform, Congress and the passage of the tax-increase bill in the been devised.’’ President have made more than 4,000 Senate. Amazingly, most Americans actually amendments to the Tax Code. Four The tax limitation amendment is agreed and welcomed the tax. Perhaps thousand amendments. The constant based upon a simple premise—that it those statements were true in 1913, I changes have left taxpayers perplexed, ought to be at least as hard to raise say to our new Senator from Arkansas unsure how to comply today, let alone people’s taxes as it is to cut them. in the Chamber, but in 1997 they no how to prepare financially for the fu- What the tax limitation amendment longer reflect reality. ture. Without the protection of the tax seeks to do is force members of Con- The current code is neither fair, equi- limitation amendment, taxpayers will gress to think of tax increases, not as table, efficient, nor loved. It adds one- be vulnerable to further tax-rate in- a first resort, but as a last resort. third to the cost of capital. Capital creases, particularly if tax reform— Mr. President, I hope the House will which makes a modern economy grow which we all hope will occur within the pass the tax limitation amendment and prosper is encumbered by the next few years—eliminates many of the today. And if it does, I hope the Senate antigrowth ingredients of this Tax tax deductions, exemptions, and credits will take it up promptly and give the Code such that capital has had added in which they find refuge today. States an opportunity to consider its to its cost one-third—in other words, Let me make a few other points ratification. While there is much dis- one-third is wasted because of the na- about this amendment. First, the tax agreement about whether to cut taxes ture of our tax laws. It is hostile to- limitation amendment itself cuts no and how, we should at least be able to ward savings. It is tilted toward debt. taxes. It does not preclude Congress agree that we should not raise taxes Thus, it slows economic growth, pre- from raising taxes in the future. It any further. I urge support for the tax vents jobs from being created, and only raises the bar on future tax in- limitation amendment. makes us less competitive in world creases. I hope we will be able to pass that markets. Many people, myself included, be- amendment, and I hope we will have an The Tax Foundation estimates that lieve that taxes are already far too opportunity thereby to ensure that complying with the Federal tax system high, and that we ought to cut taxes. more money is left in the pockets of of the United States will cost the This amendment does not do that. All hard-working American families rather American people—I am not talking it says, in effect, is ‘‘enough is than being sent to the Federal Govern- about paying the tax. The cost, the enough.’’ It makes Congress find a way ment here in Washington. waste, the money, the energy—$225 bil- to meet its obligations without taking Mr. DOMENICI addressed the Chair. lion in 1996. even more from the pockets of the The PRESIDING OFFICER. Under Based on historical data from the American people. the previous order, the Senator from IRS and the OMB—that is the Office of Mr. President, here are some aston- New Mexico is recognized for up to 10 Management and Budget—taxpayers ishing statistics from Americans for minutes. will spend 5.3 billion hours complying Tax Reform. According to the organi- Mr. DOMENICI. Mr. President, I com- with the Federal tax laws. zation’s calculations, about 31 percent pliment the distinguished Senator from Since 1954, the number of sections of the cost of a loaf of bread is attrib- Arizona, Senator KYL, for his devotion dealing with this have increased dra- utable to taxes. About 54 percent of the and dedication to doing something matically. Determination of tax liabil- cost of a gallon of gas goes to taxes. about the tax mess in America. I look ity has grown 1,000 percent; deferred About 40 percent of the cost of an air- forward to supporting many of his compensation, 1,400 percent; computa- line ticket is attributable to taxes, as ideas here on the floor. tion of taxable income, 1,500 percent. is 43 percent of the cost of a hotel Mr. President, I thought today I Since 1954, there have been 31 major room. would speak just a few moments about tax bills enacted, more than 400 public Understand that on an aggregate the history of the income tax law in laws that have amended the Internal basis, the average family pays more in this Nation, and see if we can’t all Revenue Code. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3163 Two-thirds of the compliance burden The USA tax proposal includes a fam- the tax burden on families so high? Be- is borne by the business sector. Be- ily living allowance, in addition, to the cause Uncle Sam spends too much. It is cause of the marriage penalty built dependent deduction. It does not phase that simple. Congress has not balanced throughout this code—speak of some- out when a child reaches 13. It goes on the budget since 1969. The cumulative thing that is antifamily. I would as- until the child reaches adulthood. effect of all that deficit spending is a sume if you have a policy that is Taken together, these two USA tax tax burden for most families that ex- antimarriage it cannot be, by defini- provisions provide relief equivalent to ceeds what they pay for food, clothing, tion, very profamily—most working what the dependent deduction would housing and automobile costs com- spouses work primarily to pay taxes have been if it kept up with inflation bined. We need to fix that. We are try- rather than to improve the standard of since the time it was first enacted. ing to balance the budget so we can re- living of the family. So let me suggest that while we are duce the tax burden for families with Congress will be dealing with tax all talking about tax cuts, and I hope I children, small and home-based cuts if we arrive at a budget agree- have given a bit of the history that businessowners, family farmers, and ment, and that is good because it is ob- should shock us into understanding frankly, everybody else who is taking vious the tax take for the United that something basically is very part in the economy. States, the amount of revenue we are wrong. The first step in bringing tax relief to getting from taxes, continues to rise. Our current Tax Code is sapping the middle-class America, however, is to But I believe ultimately the country is strength of this country, it is sapping bring Government spending under con- not going to be as well off as it should the entrepreneurial spirit of people. trol. A balanced budget means a be until we do a comprehensive tax re- This country will be great when the en- healthier economy, more Government form. We have put together, Senator trepreneurial spirit, when innovation revenue and less need for taxes. As you Nunn and I and many Senators and and risk taking is maximized. Unfortu- fill in the amount of tax paid line on many people helping, an entire new tax nately, we have a code that does the your 1040 form this year or as you write plan. When time comes for reform, it opposite, obviously, and we ought to out your check to the IRS, think about will be on the table. This Congress Sen- get rid of it. ways you could use even a portion of ator DODD has agreed to carry on the For now, we are scheduled this year that tax money and remember who is work of Sentator Nunn. for some tax cuts. I have outlined them trying to balance the budget and who We call it the USA Tax Plan—Unlim- heretofore, and the Finance Committee is not because balancing the budget ited Savings Allowance. For those who chairman and others have announced and getting spending under control is think IRA’s are great investment vehi- them, and the President has his set of the first step toward tax relief. cles we ought to be using, I agree, but proposals. But I do not think we should I thank the Chair and yield the floor. this is an unlimited IRA tax plan be- let today go by without saying that Mr. THOMPSON addressed the Chair. cause essentially people will pay taxes tinckering is not enough. The PRESIDING OFFICER. The only on income they spend. Amounts What we must do is throw out what Chair recognizes the senior Senator they save or invest will not be taxed we have and do a new one for the from Tennessee. until they take it from the savings American people, for growth, prosper- Mr. THOMPSON. I thank the Chair. pool of the Nation, an investment pool ity, and peace of mind for the Amer- Mr. President, it seems at this time of the Nation, and spend it. The tax ican people. of year every year we tend to go out of would be deferred, in other words, until I yield the floor. our way to criticize the Internal Reve- it is consumed and has become income The PRESIDING OFFICER. The nue Service, but I think part of the that is being spent. Chair recognizes the Senator from Mis- reason for that is that sometimes it There is talk about tax credits and souri. seems to take so much to get their at- deductions for education purposes. This Mr. BOND. Mr. President, let me tention. As the Presiding Officer USA tax recognizes those needs and thank the Senator from Tennessee, knows, the General Accounting Office takes care of that. It provides a tax who is next in line and allowed me to has a list of high-risk agencies which credit not for some taxpayers but for go first. they set forth as agencies that are all, all families facing higher education I commend my distinguished col- more prone to fraud, waste and abuse, expenses. This plan recognizes invest- league from New Mexico for his great and mismanagement. ment in capital should be expensed by leadership on this issue. He has within The IRS has been on that list now for the business community. It provides a his hands the needed mechanism to get 6 years in a row, and we had hearings deduction from taxable income in the to tax relief, and that is what I want to last week in order to find out what year that the investment is made in- address very briefly here today. they intended to do about it because stead of requiring installment deduc- I follow up his point about the cost of not only do they have the normal prob- tions called depreciation, which I as- the complexity of today’s Tax Code by lems that we all hear about and com- sume is the major argument between saying we in the Small Business Com- plain about every year, it seems now the business community, business peo- mittee have figures indicating that that in their attempt to modernize ple, and the IRS. computing taxes, figuring out taxes, their computer system, which is to- This plan which I am speaking of takes 5 percent of the revenues of small tally outdated; they are working on today, with its unlimited deferral, re- business. That is not paying the taxes. 1960’s technology, but in an attempt to sults in a capital gains tax rate of zero That is just figuring out how much do something about that they have so long as the proceeds remain in- they are. spent billions of dollars and canceled vested. When they are no longer in- Mr. President, each year the Amer- one program after another and are not vested and they are being spent, they ican Tax Foundation computes what making substantial progress into get- are listed as income and subject to they call ‘‘Tax Freedom Day,’’ the day ting into the 20th century much less taxes. of the year when the average American the 21st century. The President and Republicans want can quit working to pay Federal, State, We also found out that the Internal to provide a $500 tax credit for chil- and local taxes and start working for Revenue Service cannot stand an audit. dren, recognizing that family budgets herself or himself. Last year it was They do not really know how much are stretched most when there are chil- May 7. This year it will be May 9. This they have spent on this computer mod- dren in the family. I should say the means each day you have worked since ernization system and they really do President wants to do this, although the new year has been simply to pay not know how much money they col- with less money. And the age that this your tax bill for the new year and you lect in terms of various categories of stops vesting is lower in the Presi- still have 3 weeks to go. If that does collection. dent’s proposal. Nonetheless, they both not make you happy, I do not know In addition to that, we have learned recognize that families, income tax what will. more about the security problems. We payers are most stretched when there The American people take too much know that we are all concerned about are members of the family under this of their hard earned income to pay for the browsing problem we have had code. Uncle Sam’s spending habits. Why is some discussions about recently, but S3164 CONGRESSIONAL RECORD — SENATE April 15, 1997 now we learn of the tremendous phys- cause of financial reasons. Many fami- These are the people who are going to ical security problems, so much so that lies are calling on their parents to help raise the next generation who will lead they had to classify the report when them with the finances and burdens it this country. The families today are they sent it over here to us because takes to raise their children. We need raising that next generation that will they did not want to provide a blue- to help those families. take care of us and we need to give print, understandably, for people who I was recently in a committee meet- them some relief. We need to give fami- might wish them ill. It is that bad. ing in which a very wise Senator said: lies some income so that they can do Congress has responded with the We look at numbers and we study sta- their job of raising their children. We power of the purse. And last year we tistics and we do all these kinds of need to give them the kind of commit- cut them back some, but that is not things. But, when it comes right down ment that our families gave to us. the total answer because they are to it, we need to use our judgment One thing I must say. The President going to need revenues in order to take about what we believe are the most im- says he is for a tax credit. But you care of some of these problems. So we portant problems facing America. In have to look at the small print, as we had the hearings. We brought the IRS my judgment, no matter what numbers so often have to do. His $500 deduction in. We brought the Treasury in, which show—and numbers back me up on would only go up to age 13. I have had the IRS, of course, is a part of. Perhaps this—in my judgment, working fami- children under age 13. I have had chil- if there is any good news in this it lies are struggling. In terms of income, dren over age 13. Anyone who has had looks as if for the first time we do have the numbers have declined in the last 6 children in that age group knows it a blueprint to work our way out of years in relative terms, considering in- costs more to raise a teenager than it this. flation. It is more expensive than ever does a younger child. Congress in the past few years has to raise children today. That is totally unacceptable. The passed some legislation which requires I want to show a chart that illus- President says he is for a tax credit. these agencies to come in and report on trates a shocking statistic. In 1950, due Let’s do it. Let us support the teen- what kind of progress they are making to the personal exemption for children agers, too. Let families have the kind in solving some of these problems. We and family members, which allows you of money so they can raise their teen- have not always had this, but now we to exempt your income from taxes, 70 agers in the way they should. I feel this have some accountability—what are percent of the average working fami- is a very important issue for our coun- they trying to achieve, and every year ly’s income was exempt from taxes. try. I think it is important that this come back and tell us and show us in They did not have to pay taxes on 70 body recognize that we have penalized some detail what they are doing to percent of their income. Today only 30 working families. It is time to give work out of these things. percent of working families’ income is families some relief and restore them Treasury now says they are going to exempt from taxes. They must pay to the position they were in a number take a greater oversight responsibility, taxes on 70 percent of their income and of years ago. It is time to restore and which they clearly should have done they are paying at a much higher rate strengthen family values in America. long before. There are timetables than they paid in 1970. Is there any rea- I yield the floor. which they are going to be held ac- son to wonder that working families The PRESIDING OFFICER. The countable to. We are going to make are falling further behind? In 1950, they Chair recognizes the Senator from Col- sure they report back in solving these paid 2 cents of every dollar to the Fed- orado. problems when they are supposed to be eral Government. Today, every work- Mr. ALLARD. Mr. President, I rise reporting back. So perhaps we are ing family pays 25 percent of every dol- today to make a few remarks concern- going to be making some progress for lar to the Government. That is unac- ing April 15. That is today. As all the first time. But this is the reason ceptable. No wonder families are strug- Americans are no doubt aware, today is why we talk about the IRS. It is not gling to raise and educate their chil- tax day. Millions of Americans spent just the fact that people do not like to dren, who will take care of us in the fu- this past weekend finalizing their re- pay taxes. It is just they have the right ture. turns. Today those returns are due. to have the IRS and all these other The Republicans have proposed a However, while the returns and taxes agencies at least reach the minimal bold plan to give a $500-per-child tax are due today, the tax burden contin- compliance levels they expect out of credit to every working family in ues. According to the Tax Foundation, the American taxpayer because, ulti- America. I support that proposal and the average American family now must mately, our national security and our campaigned for it very aggressively. work until May 9 in order to pay local, prosperity depend upon our faith in Just a few months ago the President State, and Federal taxes. April 15 may these institutions and certainly the said he believed in the per-child tax be tax return day, but May 9 is tax IRS. credit and that he would support such freedom day. So with that, I thank the Chair and a plan because it is needed to bring The Tax Foundation also reports will relinquish the remainder of any working families’ incomes up to the that Federal, State, and local taxes time I might have. level that they need to be. I ask Amer- now cost a typical two-earner family The PRESIDING OFFICER. The ican families today to think about this. more than that family spends on food, Chair recognizes the Senator from Ala- What would you do if there were two clothing, transportation, and housing bama. children in the family and you had a combined. It is no wonder that most Mr. SESSIONS. Mr. President, I $1,000 tax credit? That means $1,000 families require more than one income. would just like to take a few minutes extra income to the family, in which As families work through their tax re- on this important day in our Nation’s there would be no income tax or health turns, many were no doubt struck by history, this day that comes up every care taken out—nearly $100 a month, the complexity of the tax system. Ear- year, when we are responsible for pay- $90 a month extra income that you lier this year, Money magazine re- ing our taxes, to discuss the problems could spend for your family. vealed the results of its annual report of working families and what they are It would be available to buy shoes, on tax complexity. The magazine com- facing in America. clothes and for field trips for school. missioned 45 tax professionals, many of Two years ago, I traveled all over the Maybe the car breaks down—you could them CPA’s, to complete the tax re- State of Alabama, campaigning for At- repair the transmission. Maybe you turn of a hypothetical and prosperous torney General. I talked to all kinds of need a set of tires for the vehicle or American family. While this hypo- people. This past year I campaigned just grocery money. These are the thetical family certainly had more tax throughout the State of Alabama and kinds of things that families struggle issues to deal with than the typical talked to hundreds and hundreds of with every day. This tax credit would family, the issues raised were not young families who are struggling put real money into their hands and unique and should have been very fa- throughout our State. They are strug- drive their incomes up in an immediate miliar to tax professionals. gling all over America. People who are way. It would put an immediate source The results reported in the Money ar- doing their very best to live the Amer- of income into the pockets of the peo- ticle were astounding. No two prepar- ican dream are not able to do so be- ple who are making America great. ers came up with the same result, and April 15, 1997 CONGRESSIONAL RECORD — SENATE S3165 the fluctuation in the level of the taxes sion of Government-run health care. and no longer exists.’’ And he was soon was striking. There were literally tens Americans want health care choice and convinced. As we look at that per child of thousands of dollars of differences competition, not more bureaucracy. dependent exemption, that would be between the calculations of some of the I invite all my Senate colleagues to over $8,500 had it been indexed for in- preparers. cosponsor this MSA extension legisla- flation. Nearly $14 billion is spent by the In- tion. The 1997 tax season has been fraught ternal Revenue Service and other Fed- I yield the floor. with reports of abusive practices and eral agencies to enforce the tax laws The PRESIDING OFFICER. The sloppy management with the IRS—re- each year. There are 136,000 employees Chair recognizes the Senator from Ar- ports of taxpayer money being used to of the Internal Revenue Service. There kansas. provide tax refunds to prison inmates are 17,000 pages of Internal Revenue Mr. HUTCHINSON. Mr. President, at the nearby Lorton prison facility, of Service laws. There are 480 tax forms every year like clockwork, with the ap- IRS agents improperly accessing tax- published by the Internal Revenue proach of April 15, tax day, millions of payers’ returns, and of other coercive Service, and there are an estimated 8 Americans are out scrambling to find tactics employed by IRS agents to col- billion pages of forms and instructions out how much they owe the Federal lect taxes. sent out by the Internal Revenue Serv- Government in taxes and how much Americans already suffer under an ice every year. they have overpaid the Federal Govern- unfair and incomprehensible Tax Code. I think these statistics make the ment in taxes. The IRS requires us to As they struggle to be honest, tax- case for tax reform. There are certainly fill out complicated tax forms and, paying citizens, they should not have a number of reforms that need to be after plugging in numbers to formulas to worry about being harassed by an made at the Internal Revenue Service. and performing various mathematical agency that, according to the General However, Congress is the principal en- calculations, we come up with the Accounting Office, cannot accurately tity responsible for the Tax Code. Con- magic number of what we owe the Fed- account for its own $7 billion annual gress should scrap the current tax sys- eral Government or sometimes, rarely, budget. tem and start fresh with a simple and what the Federal Government owes to I think millions of Americans feel as fair system. us. To complete these tax forms is so- I do today, as we look at the Internal I support taking this action now. bering. Sometimes it is a frightening Revenue Service. We would say, ‘‘Phy- However, if our leadership determines experience, especially when you look sician, heal thyself.’’ we cannot reach agreement with the at the block on your W–2 form that I yield the floor. President on comprehensive tax re- shows the amount of your income that Mr. FRIST addressed the Chair. form, then we should at a minimum re- has been consumed for tax purposes. The PRESIDING OFFICER. The duce taxes this year. This should be The truth be told, the typical worker Chair recognizes the Senator from Ten- done by a reduction in the capital toils nearly 3 hours in a typical 8-hour nessee. gains tax by at least half the current workday just to pay taxes. Many fami- Mr. FRIST. Mr. President, I under- rate for all individuals, eliminate the lies with two working parents find that stand morning business was to end at estate taxes, and a reduction in the one of those working parents is work- 12:30. Was there a unanimous consent family tax burden. This action should ing full time just to pay Uncle Sam. obtained to extend that? be done as a part of the budget and Put another way, May 9 is tax freedom The PRESIDING OFFICER. The Sen- should not be delayed. day. In theory, this is the day when an ator is correct, but there has not been. Before I close, I would like to men- individual who has been working since Mr. FRIST. Mr. President, I ask tion a necessary tax change in health January 1 will be able to take home his unanimous consent that morning busi- care. This concerns medical savings ac- or her first paycheck. Every penny of ness be continued for 30 minutes, or counts. Last year, Congress made the the income they earn during that first until such time that speakers on the tax changes necessary to make medical 5 months of the year has gone to pay floor are allowed to make their presen- savings accounts available for up to their annual income taxes. tation. 750,000 individuals. Medical savings ac- Our Nation’s total tax burden is at an Mrs. HUTCHISON. Mr. President, can counts allow companies to give the alltime high. Federal, State and local I make an inquiry? funds currently set aside for health receipts remain at a record 31.7 percent The PRESIDING OFFICER. The Sen- benefits directly to their employees. of the gross domestic product. That is ator from Texas. These employees are then empowered one-third of our Nation’s total output Mrs. HUTCHISON. The time was ex- to purchase their own health plans and now consumed in taxes. tended for the Democratic side by 10 set aside funds for future medical ex- Even more demonstrative of the mag- minutes. Up until 12:40 is still the Re- penses. nitude of the American tax burden is publican time; is that correct? MSA’s, or medical savings accounts, the fact that the average American The PRESIDING OFFICER. The Sen- are an important counterweight to family pays more in taxes, as we have ator is correct. Government and health care bureauc- heard over and over again, than it Mrs. HUTCHISON. Thank you, Mr. racies. They put greater power in the spends on food, clothing, and shelter President. hands of individuals and families. The combined. This, I think, is proof posi- The PRESIDING OFFICER. The changes made last year have proven tive that American families are over- Chair recognizes the Senator from Ten- popular and demand for medical sav- burdened and in need of tax relief. nessee. ings accounts is high. But even before That is why I introduced, with Sen- Mr. FRIST. Mr. President, I ask Congress provided the full deductibil- ator GRAMS of Minnesota, who is on the unanimous consent that the time be ity for MSA’s, many employers offered floor this afternoon, the $500-per-child extended up until 1 o’clock, or until them successfully for years. tax credit for all working families, re- Senators are allowed to complete. Last year, I opposed the artificial cap gardless of income. Everyone talks The PRESIDING OFFICER. Without on medical savings accounts, and today about the importance of family values. objection, it is so ordered. I am introducing legislation that would It is time that we act to preserve Mr. FRIST. President, I rise today to make medical savings accounts avail- American families by passing that $500- speak out for Americans on tax day— able to all taxpayers. This will foster per-child tax credit. April 15. On this day more than any the type of empowerment and competi- I talked to a person in Pine Bluff, other, every American is reminded how tion that we need in health care. It will AR. He said, ‘‘My children are grown. much government costs—not just in also increase health care coverage for What do you have for me? I don’t need actual dollars but in time and energy the self-employed and, thus, those in that $500-per-child tax credit.’’ I said, spent filling out forms. transition from one job to another. ‘‘Sir, if you would just compute the Today, many of my colleagues have Medical savings accounts are the ulti- benefit that you had as you had reared described the tax burden in many in- mate form of health care portability. your children—they are now grown— sightful and illustrative analogies. For Medical savings accounts provide a you would see that the benefit that you example, we know that the average superior alternative to a further expan- had has been eroded through inflation American will work until May 9—tax S3166 CONGRESSIONAL RECORD — SENATE April 15, 1997 freedom day—just to pay his or her time to a total debt of $5.4 trillion— IRS; 8 billion—8 billion—is the number taxes. We know that the typical Amer- that’s nearly $20,000 for every man, of pages of forms and instructions sent ican family pays 38 percent of their in- woman, and child in America. We can- out by the IRS every year; 293,760 is the come in Federal, State, and local not continue to shackle our children number of trees that must be cut down taxes—a one-third increase over the and grandchildren with this debt bur- each year to supply the 8 billion pages past four decades. I commend my col- den. That is why balancing the budget of paper needed for filing the country’s leagues for bringing clarity and focus is so critical for our future. A balanced taxes. to an extremely complex debate. budget is the first step toward break- Mr. President, these are just a few of Today, I want to add to their com- ing those shackles. the statistics that point out the com- ments. Putting statistics and anec- HOW ARE WE SPENDING IT? plexity and the burden that our Tax dotes aside, every lawmaker should be The third and final question law- Code puts on the American family and asking three questions about tax reve- makers must ask themselves on tax the Nation itself. The typical American nue—not just on Tax Day but every day is ‘‘How are we spending the tax- family pays more in taxes than it day: Whose money is it? How much of payers’ money?’’ spends on food, clothing, and shelter it are we spending? and How are we The simple answer is, ‘‘We are spend- combined. That is more than 38 percent spending it? ing it at an unsustainable rate.’’ In for total taxes versus 28 percent for WHOSE MONEY IS IT? 1965, entitlement spending and interest food, clothing, and housing. Whenever we debate tax policy in on the debt consumed 30 percent of the This year, the Republican Congress this body, we must begin with a simple Federal budget. Discretionary spend- wants to do something unusual for the principle that should govern all our de- ing—which includes the basic functions taxpayers of our country: Give their cisionmaking: There is no such thing of Government like defense, highways, money back to them. We want to stop as government money, there is only education, medical research, and na- penalizing young couples for getting the people’s money. Every dollar that tional parks—consumed 70 percent. married. Republicans want to increase comes into Washington belongs to Today, entitlements and interest the standard deduction for married some individual, family, or business— consume 70 percent of the budget, couples filing jointly. In 1993, 40 per- not the other way around. For far too while discretionary programs consume cent of families paid higher taxes be- long, the Federal Government has 30 percent. By 2012, just 15 years from cause they got married. A couple with- treated the income of the American now, entitlements and interest on our out children who earns $20,000 a year people as it own—as an entitlement it growing debt will consume all Federal pays an additional $188 in taxes. When deserves—and this practice must stop. revenues—leaving nothing for roads, they have children, the number soars As newspaper columnist James education, national parks, medical re- to $3,717 per year. In Texas, a mother of Glassman describes it, search, defense. two children on welfare is penalized Tax dollars begin life as personal dollars. We have all heard from Members who $5,862 a year for marrying a man who They’re yours, not Washington’s. You do say that the current tax rate is puni- earns $20,000. Our Tax Code is biased agree, through the political process, to turn tive, burdensome, and a threat to the against marriage, and that is just flat over some of your income—but that deal is survival of our competitive, capitalis- wrong. transitory and renewable, and it depends on tic economy. If that’s true today— We want to provide a $500-per-child Washington providing good value for your when our tax rate hovers at 38 percent tax credit for the American family to money. per family—consider the effects on our give them help in the struggles of rais- That agreement is based on public economy in the future if we do nothing ing a family. This would mean 3.5 mil- trust. to change this. If we fail to act and act lion families in America would not When we Senators meet with con- soon, a child born today will pay a life- have to pay taxes anymore. We want to stituents in our home States, we must time tax rate of 84 percent on his or cut capital gains taxes to encourage remember: It’s their money. Every her earnings to pay for the cost of Gov- and reward investment to create new time we pass a spending bill on the ernment overspending. Such a burden business, to create new jobs. floor of the U.S. Senate, we must be would be at the very least unfair and A low capital gains tax rate is impor- able to look our constituents in the eye irresponsible. tant to our future, because we should and say, ‘‘Here is how we spent your As the tax debate rages on, I urge my be able to take our money and put it money.’’ If we can’t—look them in the colleagues to remember that we are where we need it at the time. But eye—then we have betrayed their pub- trustees of the American Treasury. many people cannot sell their assets lic trust and we have failed as rep- Building and maintaining that trust is because of the huge capital gains tax resentatives. one of our most important duties as that has accrued over the years. So we HOW MUCH OF IT ARE WE SPENDING? representatives of the people. If we al- need to encourage investment to create Too often over the last half century, ways remember whose money we are the new jobs and the new industries lawmakers seem to have forgotten or spending, how much we are spending, that will get our economy on a safer ignored whose money they were man- and how we are spending it, I believe track. aging. Once we remind ourselves that we can be more responsible trustees We want to cut estate taxes so that we are dealing with the taxpayer’s and we can leave our children a future years of hard work and success will not hard-earned dollars, we must ask, worth working toward. be wiped out in a generation. I have ‘‘How much of it are we spending?’’ I yield the floor. known people who have had to sell land This year, the Federal Government Mrs. HUTCHISON addressed the that they inherited because they could will spend about $1.6 trillion. Grasping Chair. not pay the inheritance taxes on that the concept of a trillion dollars is dif- The PRESIDING OFFICER. The land. Mr. President, that is wrong. It ficult, but let me try. If you started a Chair recognizes the Senator from walks away from the American dream. business 2,000 years ago and that busi- Texas. The American dream is if you work ness lost $1 million a day each day Mrs. HUTCHISON. Mr. President, harder in this country, you can do bet- from then until now, you still would today is tax day, and for millions of ter and you can create a little nest egg not have lost your first trillion dollars. Americans, this is the day that they that will make it easier for your chil- Yet our 200-year-old Government al- end their painful ritual of fiscal fealty dren to have a better life. Why in the ready owes $5.5 trillion. to the Federal Government. So I world would we take dollars that are Why? Because the Federal Govern- thought it would be appropriate to cite taxed first when you earn them, again ment consistently spends more than it a few statistics that make tax day pos- when you invest them, then when you takes in, running up massive debts and sible: 136,000 is the number of employ- die? It does not make sense, and it es- threatening our economic future. This ees of the IRS responsible for admin- pecially hurts the small family farm, year alone, the Federal Government istering the tax laws; $13.7 billion, that ranch, or business. will spend about $107 billion more than is the amount that it costs to admin- We are trying to cut the burden of it receives from the taxpayers. These ister and enforce the Tax Code; 480 is taxes on the American family. What annual deficits have added up over the number of forms printed by the better day than today to talk about April 15, 1997 CONGRESSIONAL RECORD — SENATE S3167 this burden and to talk about the dif- above average in the tax burden my her guide dog is necessary and appro- ferences between the President and constituents are forced to bear. In 1997, priate to the performance of her duties. Congress and our priorities. Tax Freedom Day will not arrive in PRIVILEGE OF THE FLOOR Thank you, Mr. President. I yield the Minnesota until 4 days later, until May Mr. WYDEN. Given this development, floor. 13. Only five other States and the Dis- Mr. President, I ask unanimous con- Mr. GRAMS addressed the Chair. trict of Columbia mark Tax Freedom sent that my staffer, Ms. Moira Shea, The PRESIDING OFFICER. Time has Day as late or later than we do. be granted access to the floor of the expired. Under the current order, we There has never been a time in our United States. are in morning business. history when the need for tax relief The PRESIDING OFFICER. Without Mr. GRAMS. Mr. President, I ask was so obvious and so great. Let us objection, it is so ordered. unanimous consent to speak for up to 5 make 1997 the year we enact the $500 f minutes. per-child tax credit. Let us make 1997 The PRESIDING OFFICER. Without EQUAL ACCESS AND OPPORTUNITY the year we kill off the death tax. Let objection, it is so ordered. us make 1997 the year we promote sav- Mr. WYDEN. Mr. President, and col- Mr. GRAMS. Mr. President, there are leagues, watching Ms. Shea enter the 365 days in each calendar year, but I ings and investment by cutting capital gains. Let us not let another Tax Day Chamber today makes me feel very can think of no other date that the proud. It is a good day for the Senate American people await with such uni- go by before we deliver on our promise of substantial relief for the American because ensuring equal access to oppor- versal dread as April 15, tax day. tunity is what the U.S. Senate is all However, there is one other date taxpayers. Mr. President, it is not a normal about. Ms. Shea has been assisting my working Americans should look upon office in a number of matters, particu- with equal disdain, and that is the date practice of mine to quote poetry on the Senate floor. I prefer to leave the larly nuclear waste legislation and leg- that says a great deal about the Fed- islation with respect to the rights of eral, State, and local tax burden work- rhymes to those Senators who possess a more poetic nature than I. But be- the disabled. ing families are expected to bear. That Yesterday, I attempted to bring Ms. date is May 9, this year’s tax freedom cause this is Tax Day, I would like to share the closing lines of a poem by Shea on to the Senate floor to assist day. me in debate on the nuclear waste bill. As it does every year, the Tax Foun- Ogden Nash and then follow it up with a final comment. Ms. Shea is a respected economist and dation has calculated the date the av- energy policy expert who has worked erage American stops working just to ‘‘Abracadabra, thus we learn for the Federal Government for more The more you create, the less you earn. pay their share of the tax burden and than 20 years. She was denied access to begins working for themselves. This The less you earn, the more you’re given, The less you lead, the more you’re driven, the Senate floor yesterday because she year, tax freedom day falls on May 9. The more destroyed, the more they feed, requires the use of a guide dog as a re- And while the use of the word ‘‘free- The more you pay, the more they need, sult of a genetic condition which sig- dom’’ in tax freedom day implies some- The more you earn, the less you keep, nificantly impairs her vision. thing to celebrate, working Americans And now I lay me down to sleep. Today, Mr. President and colleagues, have absolutely nothing to celebrate I pray the Lord my soul to take I thank the majority and minority when it comes to their taxes. If the tax-collector hasn’t got it before I leaders as well as the chairman and Tax freedom day falls a full day later wake.’’ ranking member of the Rules Commit- this year than it did in 1996, meaning It was 1935 when Mr. Nash first pub- tee for moving so expeditiously to en- taxpayers must work 128 days before lished his poem warning of the dangers sure that this body extend equal oppor- they can count a single penny of their of a tax system run amuck. At that tunity to citizens who are visually im- salary as their own. time in our history, the Federal tax paired. Of those days, 44 will be spent paying rate was less than four percent. Today, a resolution was offered by personal income taxes; 38 days will be Now, I cannot imagine what kind of the majority and minority leaders and spent paying payroll taxes; sales and poem Mr. Nash would write today, at a referred to the Senate Rules Commit- excise taxes, 18 days; property taxes, 12 time when Washington demands an av- tee that seeks to permanently address days; corporate income taxes, 13 days; erage 28 percent of our income in taxes. this issue so that an individual with a also 3 days will be spent paying mis- And even if I could imagine what Mr. visual impairment will not need to cellaneous taxes. Nash would write I am not sure I would seek case-by-case approval just to use When you total all that up, that is be allowed to read it on the floor of the their talents on this Senate floor. I in- 128 days, Mr. President, 128 days in Senate. tend to work with Members on both which the American people spend im- Mr. WYDEN. Mr. President, I ask sides of the aisle and with Ms. Shea to prisoned by their own tax system. If unanimous consent to speak for 15 min- make certain that the U.S. Senate pro- the cost of complying with the tax sys- utes as in morning business. vides appropriate access to those citi- tem itself were included in the calcula- The PRESIDING OFFICER. Without zens with disabilities and that the ac- tions, tax freedom day would be pushed objection, it is so ordered. cess complies with the spirit of the forward another 13 days. f Americans with Disabilities Act. The tax burden on middle-class It seems to me, Mr. President, that APPRECIATION TO SENATE Americans is rising rapidly. Taxpayers what the Senate is saying today is that LEADERSHIP are now working an entire week longer a double standard will not be allowed to pay off their taxes than they were Mr. WYDEN. Mr. President, I rise here. In the private sector, for exam- when President Clinton first took of- today to express my appreciation to ple, Federal law is very clear. In the fice in 1993. That sounds like Govern- the bipartisan leadership for respond- private sector where you have an indi- ment getting larger and more expen- ing so quickly to an issue that cries vidual with Ms. Shea’s talents and sive, not the ‘‘era of big Government is out for justice. With strong and respon- abilities, and if a guide dog or a white over.’’ If you calculate the tax load in sive action from the leadership today, cane is needed to carry out those du- hours and minutes, instead of days, the U.S. Senate said that those who ties in the private sector, Ms. Shea Americans spend fully 2 hours and 49 have a visual impairment will be able would have a legal right to have that minutes of each 8-hour workday labor- to fully utilize their talents on this guide dog with her. ing to pay their taxes. Senate floor. Now, I close by thanking several of That is a great deal more than the 1 A resolution was accepted today in our colleagues for their help in rectify- hour, 40 minutes it takes to pay for the Senate which allows persons re- ing this situation. I particularly thank their family’s food, clothing, and shel- quiring a guide dog, a wheelchair, or a Senator REID of Nevada, the lead co- ter. cane to be considered on a case-by-case sponsor of my resolution, as well as May 9 marks the arrival of Tax Free- basis for entry to the floor. Pursuant chairman FRANK MURKOWSKI for his dom Day for the average State. to this resolution, the Sergeant at support yesterday. In addition, Sen- Unfortunately for taxpayers in my Arms has determined that for Ms. ators WELLSTONE and BRYAN and, in home State, Minnesota ranks well Moira Shea, a staffer in my office, that fact, all Members of the Senate who S3168 CONGRESSIONAL RECORD — SENATE April 15, 1997 were on the floor yesterday during dis- and ROTH, no other motions or amend- insurance, even though they purchased cussion of this issue moved to be co- ments be in order, and further, total flood insurance and are now flooded sponsors of this legislation. I thank debate on the amendment and the bill out and lost their homes, their farms, Senator FORD who also, for years, has be limited to 1 hour 35 minutes, divided and their businesses. Just last week, worked for the rights of the disabled. equally between Senator COVERDELL or when many of us were home, we Finally, I thank our Sergeant at Arms, his designee and Senator GLENN or his pledged immediate response in an ef- Mr. Greg Casey. He has been extraor- designee. I further ask consent that fort to resolve the problem that they dinarily patient and conscientious in following the expiration or yielding have as quickly as possible. I simply working with myself and our staff. I back of time, the Senate proceed to cannot pass up the opportunity, legis- thank him for helping to bring justice vote on the Coverdell amendment, the latively, to attempt to find a way to to the floor of the Senate. bill then be read the third time, and reconcile that pledge with my respon- Mr. President, the U.S. Senate has there then be 10 minutes for debate, to sibilities here on the Senate floor. done the right thing today by standing be equally divided, to be followed by So it is in keeping with that effort up for full legal rights and equal oppor- the final vote on passage of S. 522, as that I ask unanimous consent that as tunity for those like Ms. Shea who amended, if amended. part of the Coverdell amendment, we have a visual impairment. The Senate Mr. DASCHLE. Mr. President, I sup- allow this small change, which the ad- is sending a message across this coun- port the Coverdell-Glenn substitute ministration is completely in support try that we are not going to leave our amendment to establish criminal pen- of. There is very, very minimal budg- citizens behind. I am very proud that alties for unauthorized inspection of etary exposure involved, and it would the Senate has taken this action. I tax returns and tax information. Pen- be an extraordinary measure of assist- yield the floor. alties already exist for unauthorized ance to many people who, today, are Mr. HATCH. Mr. President, I com- disclosure of these documents. It is not only without insurance coverage, pliment the distinguished Senator from only fair and reasonable that these be but are also without homes. So I sim- Oregon and Ms. Shea for doing this his- extended to unauthorized inspection as ply ask unanimous consent that this toric and unprecedented resolution. well, particularly in light of the recent small change in the flood insurance law This is a beautiful dog, Ms. Shea, and revelations involving misbehavior by be accommodated in the Coverdell we are proud to have you on the floor some IRS employees. Tax filings are amendment. Then I will have no objec- of the U.S. Senate and proud to have privileged, private information. Tax- tion. your dog here as well. payers have a right to know that the Mr. LOTT. Mr. President, reserving Mr. LEVIN. Will the Senator yield? information they provide the IRS will the right to object to that additional Mr. HATCH. I yield. be seen only by those who process it in unanimous-consent request. I might Mr. LEVIN. I want to join Senator the normal course of Government busi- say that I am from a State that has HATCH in congratulating and thanking ness. been disaster prone, and I know that the Senator from Oregon for his per- I would like to salute Senator GLENN, Senator DASCHLE’s area has had all sistence. in particular, for his steadfast advo- kinds of problems this year—drought, Ms. Shea, we are delighted you are on cacy of this legislation over the years. flooding, freezing flooding, the works. the Senate floor with your dog. It is a The distinguished Senator from Ohio We have had similar problems in my historic day for the Senate. Senator was ahead of his time when, years ago, State, from droughts to floods, torna- HATCH has made the point and I join, he proposed the changes incorporated does, hurricanes, freezing rain, which and I think all of our colleagues join, into the legislation before the Senate have caused terrible devastation. So I in expressing appreciation to the Sen- today. On behalf of the taxpayers of my am sympathetic to the problem. ator from Oregon who has done an im- State, I would like to thank him for his However, this is asking for a change portant service for the Senate for mak- leadership on this important issue. in the law that has been in place since ing it possible for this to happen. I also want to thank Senator 1968. Clearly, my constituents and the Mr. WYDEN. I thank my colleague. COVERDELL and others who have been constituents all over America that f involved in this effort. I don’t know have had to deal with disasters have that there is much opposition at all to complied with and have dealt with this UNANIMOUS-CONSENT REQUESTS— their mutually effective work in ad- 30-day requirement of the insurance S. 522 dressing the problem that needs to be coverage versus 15 days. Regardless of Mr. LOTT. Mr. President, today is addressed at the earliest possible date. that, I think it is something we should April 15, tax day. There has been a Unfortunately, as anyone who watch- consider. But we have just recently good effort underway between Senator es the news knows, we have a set of cir- been aware of the language of the Sen- COVERDELL and Senator GLENN and cumstances in the upper Midwest that ator from South Dakota in this area. Senator ROTH and others to bring be- also requires immediate action. Severe We need to assess whether there is ob- fore the Senate very important legisla- flooding, brought on by the most se- jection to it. Will there be a budget im- tion, S. 522, regarding the unauthorized vere winter in the history of the re- pact? What does it mean for people access of tax returns. They have come gion, has devastated hundreds of com- that had to deal with it in the past or to a bipartisan agreement. I think on munities throughout the States of Min- will in the future? We are checking this day it is very important that we nesota and South and North Dakota. In with the chairmen of the Budget Com- have this legislation come before the my home State of South Dakota, there mittee, the Banking Committee, and Senate to be debated and voted on. The have been only 2 days this year in the Finance Committee. I think we American people certainly feel that which a Presidential Disaster Declara- should not leap to do it until we know should be done. I think they will feel tion has not been in effect for the en- for sure exactly what the impact would comforted by the fact that the Senate tire State. Despite the best efforts of be. stepped up and has addressed these FEMA and the administration to re- Again, I do think we should work concerns. This idea of a snooping spond, State and local governments with each other in a bipartisan way, al- through taxpayers files is very offen- have been financially devastated by the ways, when disasters are involved. But sive to all Americans. So we need to costs associated with these disasters. as good stewards of our constituents, get this done today. The ongoing flooding that is currently we need to make sure we understand Mr. President, I ask unanimous con- occurring is having an even greater fi- the ramifications, too. sent that at 2:15 today, April 15, the nancial effect on families and individ- So I think that within, hopefully, a Senate proceed to the consideration of uals. In Watertown, SD, and other com- relatively short period of time, we will calendar No. 37, S. 522, regarding the munities in the region, thousands of be able to get an assessment of any unauthorized access of tax returns and residents have been evacuated from negative impact that might come from the bill be considered under the follow- their homes due to rising flood waters. this. ing limitations: That there be only 1 Many of these evacuated homeowners I hope we can get started with this amendment in order to the bill, to be have now discovered that they are un- legislation, which is so important with offered by Senators COVERDELL, GLENN, able to obtain benefits from their flood regard to snooping through IRS files. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3169 Everybody understands that it is tion with her refusal to even initiate respect to the first, the mandatory wrong. People are outraged by it. an independent counsel’s appointment. trigger where ‘‘covered individuals’’ There is a bipartisan commitment to I appreciate the fact that the Attor- are at issue, the Attorney General’s re- it. So if we don’t get an agreement to ney General is under enormous pres- port does little but make reference to get started on this now, or shortly, we sure from the White House, the Con- legal ‘‘factors that must be consid- will not be able to get it done today, gress, the media, and the public, and ered,’’ and then repeatedly draws the which is symbolically a very important that she is in a very unenviable posi- summary conclusion that she does not day to do it. So I would not be able to tion. I have respect and admiration for have specific and credible evidence agree to this change in the bill at this the Attorney General, but her refusal that a covered individual may have time, while we are talking it out. to do what the law permits and indeed violated the law. Despite the White I have suggested another alternative requires her to do, frankly, does not House’s characterization of the Attor- to make in order as an amendment. engender respect or admiration in this ney General’s decision as simply ‘‘ap- There are a lot of options. We could ei- instance. plying the law to the facts,’’ there is ther withdraw it, or accept it, or vote The Clinton administration and the virtually no application of the perti- on it later in the day. We will work Department of Justice is trying to cast nent law to the pertinent facts actu- with the Senators that have the juris- her decision as a legal decision when, ally before the public, let alone the diction. We will talk with the Senator in fact, it is a decision within her facts before the Attorney General. from South Dakota to see if we can power, and in my opinion, one which While the statute requires the Attor- work something out on the flood insur- she is ethically obliged to make. ney General to set forth the reasons for her decisions with respect to each mat- ance provision. As chairman of the Senate Judiciary In the meantime, I do object to the Committee, which, pursuant to its ter before her, in my view she has ut- terly failed to do so here. To illustrate addition at this time. I plead with the statutory responsibilities requested 33 just a few examples of the inadequacy Senator to allow us to proceed with days ago that the Attorney General of the Attorney General’s response, let this legislation under our unanimous- apply for the appointment of an inde- me point out that she fails to specifi- consent request while we continue to pendent counsel, I am compelled to re- spond to what can only be character- cally explain why an independent coun- work on this issue. sel is not warranted to further inves- Mr. DASCHLE. Mr. President, I have ized as her inadequate response. In all tigate the abundant evidence that cov- no objection at all to proceeding with candor, the substance of the Attorney ered individuals made extensive and General’s report is vague, ambiguous consideration of the legislation. As I deliberate use of Federal property and at best, and at times, legally disingen- indicated, I think Senators COVERDELL resources for campaign purposes in- uous. Especially in light of the fact and GLENN ought to be complimented cluding, for example, the Lincoln bed- that the committee requested she for their work in trying to address this room, and other areas of the White evaluate and report on ‘‘all of the in- matter. There is a difference between House, Air Force One, and a computer formation before her,’’ not just a few proceeding to the bill and proceeding database costing the taxpayers $1.7 isolated allegations, the Attorney Gen- under the unanimous-consent request, million. as propounded by the majority leader. eral’s report also is incomplete, and in An authority higher than me and I, of course, would object to the unani- a rather selective way at that. more independent than the Attorney mous consent request but would have A judge in a court of law would rec- General needs to determine the scope no objection to proceeding to the bill ognize the Attorney General’s report as of the various laws implicated by this in an effort to begin debate. a defense brief, too clever by a half, conduct and whether any of the laws Mr. LOTT. In view of that, then, Mr. carefully and zealously crafted to serve were violated. The Attorney General’s President, I am prepared to yield the a client’s interest. But the Attorney somewhat evasive approach to this en- floor. I advise Senators that we will General’s client here is not the Presi- tire matter is aptly illustrated by her renew our request again, probably dent of the United States or her politi- argument that the use of the Govern- within an hour or so after we have had cal party, it is the public. And the ment telephone does not constitute a chance to check further into this public’s confidence that this investiga- conversion of Government property. I matter. tion will be fair, as thorough, and as am sure it does not. But as the Attor- Mr. DASCHLE. Mr. President, I ask tough as any other, altogether un- ney General knows all too well, that is unanimous consent that the Senator tainted by political considerations, has beside the point. The allegations of from Illinois, Senator DURBIN, be rec- not been fulfilled. I am afraid this cli- misuse of Government property are not ognized for up to 10 minutes of morning ent, the public, has been disserved. based on phone calls. business following the remarks of Sen- Given the evasiveness of the Attor- Mr. President, the Attorneys Gen- ator HATCH. ney General’s report, together with the eral’s evasive approach to this entire The PRESIDING OFFICER. Without delay in its transmission and the fact matter is aptly illustrated by her argu- objection, it is so ordered. that as the Attorney General herself ment that the use of the Government The Chair recognizes the Senator admits, ‘‘much has been discovered,’’ telephone does not constitute conver- from Utah. since the committee sent its letter, I sion of Government property. I am sure Mr. HATCH. Mr. President, I ask have little choice but to conclude that it does not. But, as the Attorney Gen- unanimous consent I be permitted to much to my disappointment, the At- eral knows all too well, that is beside proceed as in morning business for 20 torney General did not receive our re- the point: The allegations of misuse of minutes. quest with a mind fully open to doing Government property are not based on The PRESIDING OFFICER. Without what is plainly in our Nation’s best in- phone calls, but on the diversion of re- objection, it is so ordered. terests. sources, such as the White House, Air f Before responding to the Attorney Force One, and the White House General’s report in more detail, I feel I database for campaign purposes, while DISAPPOINTMENT WITH THE should briefly review what the inde- phone solicitations were not alleged to ATTORNEY GENERAL pendent statute provides for. An inde- have violated the conversion laws, but Mr. HATCH. Mr. President, I hoped pendent counsel can be triggered in one rather the prohibition on solicitations to come to the floor today to deliver a of two ways: Where there is sufficient from Federal property. The conclusion statement commending the Attorney information to investigate whether any I cannot help but draw here is that, General for her courageous decision to person ‘‘covered’’ by the statute may however involved the Attorney Gen- do the right thing and request the ap- have violated Federal law; or where an eral’s career staff was in preparing this pointment of an independent counsel to investigation of someone else who may letter, in the end, it was her political investigate the fundraising violations have violated the law may result in a advisers who had the last word. in connection with the 1996 Presi- political or other conflict of interest. In short, the Attorneys General’s dential election. Regrettably, I am It is that simple. carefully finessed and, in some cases, here today for a much different reason, Let me talk, No. 1, about the manda- deliberately irrelevant legal argu- to express disappointment and frustra- tory trigger of that legislation. With ments, combined with her summary S3170 CONGRESSIONAL RECORD — SENATE April 15, 1997 conclusions that there is no specific, it recognizes the importance of public con- in exchange for generous donations by credible evidence that a covered indi- fidence in our system of justice, and the de- the Riady family, whose ties to the vidual may have violated the law, structive effect in a free democracy of public Clintons date back to Little Rock in hardly persuades one that an independ- cynicism. the 1980’s. See, for example, the New ent counsel is not mandated under the Attorney General Reno further testi- York Times, October 7, 1996. Recall statute or, for that matter that the fied: that the Lippo Group, Huang’s former question has been given a genuinely It is absolutely essential for the public to employer, is connected to a far-reach- thorough and candid evaluation. have confidence in the system, and you can- ing network of seriously questionable Perhaps more fundamental, though, not do that when there is a conflict or an ap- pearance of conflict in the person who is, in activities, directly implicating not just is the Attorney General’s altogether effect, the chief prosecutor. . .. The Inde- the Riadys and Huang, but the other inadequate explanation as to why she pendent Counsel Act was designed to avoid individuals that figure in this trou- will not request an independent coun- even the appearance of impropriety in the bling scandal, including Charlie Trie, sel pursuant to the second statutory consideration of allegations of misconduct Pauline Kanchanalak, Soraya trigger —to avoid a conflict of interest. by high-level Executive Branch officials and Wiriadinata, C.J. Giroir, Mark Middle- Here the test is quite simple: If the At- to prevent. . . the actual or perceived con- ton, Mark Grobmeyer, Wang Jun, torney General is presented with a con- flicts of interest. The Act thus served as a vehicle to further the public’s perception of Charles DeQueljoe, and even Webster flict of interest in investigating wheth- fairness and thoroughness in such matters Hubbell. Since the Department is al- er any individuals may have violated and to avert even the most subtle influences ready investigating Huang, there plain- the law, she has the discretion to pro- that may appear in an investigation of high- ly are sufficient grounds to investigate ceed with the appointment of an inde- ly placed Executive officials. whether he may have violated federal pendent counsel. Try as the White Now, in her report to the Judiciary law. In declining to invoke the discre- House and the Attorney General might Committee, however, the Attorney tionary conflict of interest trigger, the to cast this as a narrow and technical General adopts a far narrower view of Attorney General’s position, therefore, legal question, it is anything but that; when an independent counsel is called must be that there is no potential con- it is an ethical one requiring sensitive for. Suddenly, the conflict of interest flict of interest in her investigating judgment as to what is necessary to en- provision has become a complicated Huang. sure the public’s confidence that an in- legal threshold which ‘‘should be in- Let’s take a look at some of this. vestigation can be supervised by the voked only in certain narrow cir- This is the ‘‘Lippo Group, an Over- Attorney General and completed in a cumstances.’’ That is on page 3 of the view.’’ thorough and impartial manner. letter to me. Directly contradicting John Huang was a former Lippo exec- In the past, the Attorney General has her own public statements that it is utive in the United States. He had a had a rather broad view of what is nec- impossible for the public to have con- $780,000 severance package before he essary to protect the public’s con- fidence in an investigation where there went to work for the Government. By fidence that an investigation is not is a ‘‘conflict or an appearance of con- the way, before he went to work for the compromised by any perception of a flict in the person who is, in effect, the Government, for 5 months he had a se- conflict of interest. In her Whitewater chief prosecutor,’’ now the Attorney curity clearance given him by this ad- independent counsel request, for exam- General claims that her discretion is ministration. There is a question ple, Attorney General Reno concluded limited only to situations where there whether that was legal; a former Com- that an independent counsel was re- is an actual conflict of interest. Quite merce official, multiple contacts with quired because her investigation would frankly, the Attorney General’s efforts Lippo during that time; former DNC involve an investigation of James to distance herself from her 1993 testi- vice chairman; raised more than $3.4 McDougal and ‘‘other individuals asso- mony require her to render a rather million; $1.6 million is to be returned; ciated with the President and Mrs. creative reading of her own testimony. and, he visited the White House more Clinton’’ would amount to a conflict of Allow me to suggest that, to the ex- than 75 times. interest. It was that simple. In her re- tent an independent counsel was called C.J. Giroir, a Lippo Joint Venture ferral of the Nussbaum perjury allega- for to ensure public confidence in an person, and a former Rose Law Firm tion to the independent counsel, the investigation of Mr. North, Mr. Nuss- attorney, met with James Riady, Attorney General concluded that a baum or Mr. McDougal and his associ- President Clinton, and Lindsey on conflict of interest existed because the ates, one certainly is called for here. If Huang on his move to the DNC. He do- investigation ‘‘will involve an inquiry the Attorney General has adopted a nated $25,000 to the DNC. into statements allegedly made by a new standard for evaluating when an Mark Middleton, former White House former senior member of the White independent counsel is necessary to en- aide from Little Rock, met with James House staff.’’ It was that simple. And, sure the public’s confidence in an in- Riady and President Clinton; has Far testifying before Congress in 1993, Ms. vestigation, she should state as much East business interests; unlimited ac- Reno stated that the Iran-Contra in- and explain the basis for her new posi- cess to the White House after his de- vestigation ‘‘could not have been con- tion. parture. ducted under the supervision of the At- Although the Attorney General does Charlie Trie, Little Rock res- torney General and concluded with any not say as much in her letter, one can taurateur, had a $60,000 loan from public confidence in its thoroughness only surmise that her position is that Lippo; former Lippo executive; ar- or impartiality.’’ It was that simple. First, there is no conflict of interest in ranged with a former Lippo executive Indeed, the Attorney General’s testi- continuing to investigate any of the in- Antonio Pan, a Hong Kong dinner for mony at that time thoroughly ex- dividuals already under investigation, Ron Brown; attempted to give more plained her rather strong view that that is, Huang, Riady, Trie, than $600,000 to the Clinton’s legal ex- even the slightest appearance of a con- Kanchanalak, John H.K. Lee, the pense trust; visited the White House at flict of interest should at all costs be Wiriadinatas, Charles DeQueljoe, Mark least 27 times. avoided by the appointment of an inde- Middleton and Webster Hubbell, and I can go through all of these other pendent counsel. It was that simple. second, that there is no basis for inves- people. She testified: tigating whether other high-ranking Mr. President, I ask unanimous con- There is an inherent conflict of interest officials may have violated the law. sent that the description of each of whenever senior Executive Branch officials Since General Reno fails to explain her them be printed in the RECORD at this are to be investigated by the Department of reasoning, let’s step back for a moment point. Justice and its appointed head, the Attorney and review some of the facts here to de- There being no objection, the mate- General. The Attorney General serves at the termine whether either of these appar- rial was ordered to be printed in the pleasure of the President. Recognition of this conflict does not belittle or demean the ent positions can really be defended. RECORD, as follows: impressive professionalism of the Depart- Take Mr. John Huang, the former THE LIPPO GROUP—AN OVERVIEW ment’s career prosecutors, nor does it ques- Lippo executive whom the Riady’s are John Huang: tion the integrity of the Attorney General widely reported to have bragged was Former top Lippo executive in U.S. and his or her political appointees. Instead, placed in the Clinton Administration $780,000 severance package April 15, 1997 CONGRESSIONAL RECORD — SENATE S3171 Former Commerce Official-multiple con- ings; 30 phone conversations with Mark DNC. You mean these things aren’t tacts w/Lippo Middleton; 9 phone calls from Webster wrong and illegal? You mean there is Former DNC Vice Chairman Hubbell; received at least 9 calls from no conflict of interest here at all? If all Raised more than $3.4 mill. (appx. $1.6 mill. the Chinese Embassy officials. He had you do is look at Huang, you have to returned) Visited White House more than 75 times at least three meetings with Chinese say there is something wrong here. Government officials. He had a 1-year Then there is Mr. Charles Trie. Trie Pauline Kanchanalak: Thai lobbyist who worked w/Huang when top secret clearance after leaving Com- is a former Little Rock restaurateur, he was at Lippo merce after he joined the Democratic and reportedly a longtime friend of Contributed $235,000 to DNC—all returned National Committee. You wonder why President Clinton who now runs an Frequent contacts with Huang national security interests were com- international trading company in Lit- Visited White House at least 26 times promised and why information was tle Rock, AR. Mr. Trie has also as- Charles DeQueljoe given to the DNC. serted the fifth amendment and has President of Lippo Securities in Jakarta Like I say, he had 30-plus phone con- even fled the country, along with these Gave $70,000 to DNC versations with Mark Middleton or his others. Appointed to USTR advisory panel associates. All of them had interests— He is a business partner with Ng Lap Webster Hubbell: at least I understand had interests—in Seng, a Chinese Government official. Former Associate Attorney General the Far East. He received a $60,000 loan from the Received $250,000 ‘‘consulting fee’’ from He had his transfer to the DNC or- Lippo Group. He raised $645,000 in ques- Lippo—won’t say why chestrated at a curious September 13, tionable funds which have been re- Wang Jun: 1995, Oval Office meeting attended by turned by the DNC. He raised $639,000 Lippo joint ventures Chinese arms merchant the President, Bruce Lindsey, James for the Clinton ‘‘Legal Defense Fund,’’ Senior Executive at CITIC & COSTIND Riady, and Lippo joint venture partner which was returned because the source (Chinese gvt. entities) and former Rose law partner, Joseph of the money could not be identified; or Attended White House coffee Giroir; the sources of the moneys could not be C.J. Giroir: Raised over $3.4 million while at the identified. Lippo Joint Ventures DNC—money used to reelect the Presi- He was during this period receiving Former Rose Law Firm attorney dent—retaining his top secret security wire transfers of very large sums from Met with James Riady, Pres. Clinton, & clearance even though he was no longer the Bank of China, owned by the Chi- Lindsey on Huang move to DNC working for the U.S. Government; and nese Government. Donated $25,000 to DNC had $1.6 million of that $3.4 million He visited the White House 37 times. Mark Middleton: used to reelect the President returned He escorted Mr. Wang Jun, a Chinese Former White House aide from Little Rock because of its suspicious sources. arms merchant, to a White House cof- Met with James Riady & President Clinton As we now know, John Huang has fee last year, which, when revealed, Far East business interests Unlimited access to White House after de- taken the fifth amendment, or has as- was described by the President as ‘‘in- parture serted the fifth amendment, while the appropriate.’’ He wrote the President in March 1996 Charlie Trie: Riadys have not only taken the fifth Little Rock restauranteur but they fled the country. Doesn’t an to question his decision to deploy air- $60,000 loan from Lippo investigation of Huang, so close to craft carriers to the Taiwan straits Arranged (w/former Lippo exec. Antonio those who are covered by the statute, when the Chinese test-fired missiles in Pan) Hong Kong dinner for Ron Brown and the Riadys, so close to those who Taiwan’s direction, receiving a per- Attempted to give more than $600,000 to are covered by the statute who, like sonal letter back from the President Clinton legal expense trust the McDougals, are political supporters assuring Trie that the United States Visited White House at least 37 times and ‘‘individuals associated with the only wanted peace in the region; ar- Mark Grobmyer: President,’’—to use the Attorney Gen- ranged a Hong Kong dinner for former Little Rock attorney—close friend of Pres. Commerce Secretary Ron Brown; and, Clinton eral’s language of the past—doesn’t Consultant to Lippo that raise a conflict of interest? finally, was formally appointed to a Far East business interests It isn’t just John Huang. Here are Presidential Commission on Asian Met with James Riady, Huang, & Pres. some examples of illegal funds raised Trade in April 1996. Clinton by Huang: The Wiriadinatas, $450,000. To the extent there was a conflict of Soraya Wiriadinata: They have returned to Indonesia. All interest preventing public confidence Daughter of Hashim Ning, former Lippo funds are supposed to have been re- in the Justice Department’s investiga- exec. turned by the DNC. I am not sure that tion of Oliver North or James Contributed $450,000 to DNC—all returned is true. McDougal, certainly the same conflict Has returned to Indonesia Pauline Kanchanalak gave $253,000. exists with respect to an investigation Mr. HATCH. Mr. President, let’s just She left the country. She is now in of Huang, the Riadys, and Trie, not to take a look at the specific, credible Thailand. Allegedly all of that $250,000 mention the handful of other individ- evidence that has surfaced to date. has been returned by the DNC. I am not uals who have taken or will assert the Huang, who received a severance pack- so sure. fifth amendment, fled the country, or age from Lippo of $788,750 is reported to Mr. Gandhi gave $250,000; testified he done both, including Pauline have: had no assets. How could he give Kanchanalak, Arief and Soraya Received a top secret security clear- $250,000? All of those funds are sup- Wiriadanata, John H.K. Lee, and ance that could have allowed him to re- posed to have been returned by the Charles DeQueljoe. Frankly, there is view classified intelligence documents, DNC. I am not so sure about that ei- even more of a conflict here. for 5 months while still employed by ther. Moreover, it has become clear that the Lippo Group, and before he joined John H.K. Lee. He gave $250,000. He there is specific, credible information the Commerce Department, all after a has disappeared. And those funds were providing sufficient grounds to inves- lax security check that was limited to supposed to be returned by the DNC. I tigate whether various high-ranking his activities in the United States; am not so sure they have done it. members of the administration may Made at least 78 visits to the White Then Hsi Lai Buddhist Temple, have known of, or conspired in, any of House during his 18 months at the $166,750 raised there. The temple resi- these apparent fundraising violations. Commerce Department; dents, many of whom gave part of this Indeed, we now know from the Ickes Received 37 intelligence briefings on money, were people who had taken a files that the decision to transfer issues relating to China, Vietnam, and vow of poverty and had no money to Huang from the Commerce Department other matters of potential interest to give. Is there no illegality there; noth- to his fundraising role in the DNC was Lippo; ing to raise a possibility that some- made at the September 13, 1995, Oval Made more than 70 calls to a Lippo- thing may be wrong here which is what Office meeting which included not just controlled bank; and received at least the statute basically says? Supposedly Huang, James Riady, and Lippo Joint 70 calls; 39 classified, top-secret brief- $74,000 of that was returned by the Venture Partner and former Rose Law S3172 CONGRESSIONAL RECORD — SENATE April 15, 1997 Partner Joseph Giroir, but Bruce Judiciary Committee of its decision I yield the floor. I thank the Chair. Lindsey—who seems to pop up in all of until 6:30 last night, 2 days after this Mr. DURBIN addressed the Chair. these instances—and President Clinton letter was due. Furthermore, the Act- The PRESIDING OFFICER. The himself, and that a participant at this ing Deputy Attorney General’s asser- Chair recognizes the Senator from Illi- Oval Office meeting reportedly rec- tion that the fact that both Judiciary nois. ommended that the President ‘‘reas- Committees have made a formal re- Mr. DURBIN. I ask unanimous con- sign Huang from his Government job to quest would emphatically not have any sent to speak for 10 minutes. a political fund-raising job, where he impact on their decision suggests to The PRESIDING OFFICER. Under a could extract contributions for favors me that the Justice Department is in a previous order, that has already been done and favors yet to come.’’ The New defense mode. granted. York Times, March 5, 1997. Mr. Ickes’ In short, I think there is little doubt Mr. DURBIN. I was seeking recogni- notes expressly indicate that Huang there is at the very least a potential tion on the same subject. Senator had specifically targeted ‘‘overseas conflict of interest in having the Jus- HAGEL, I believe, is on the way up to Chinese.’’ And it has been reported how tice Department investigate these mat- join me for 10 minutes. This is a sepa- this decision to transfer Huang to the ters. The administration should not be rate request. Is it possible to do both? DNC, made at that September 13, 1995, investigating itself, it is just as simple The PRESIDING OFFICER. Without Oval Office meeting, was directly as that, as long as we have an inde- objection, it is so ordered. linked to a plan, agreed to just days pendent counsel statute. Simply claim- Mr. DURBIN. I thank the Chair. earlier by the President, Dick Morris, ing to defer to career Justice Depart- I would like to address the issue that Harold Ickes, and others, to raise funds ment officials will not do. Would the the chairman of the Judiciary Commit- to wage a preemptive television ad public accept a Member of Congress not tee raised, and I am glad he stayed in campaign. See New York Times, April recusing himself or herself from a par- the Chamber. I could not disagree with 14, 1997. In short, isn’t there sufficient ticular matter on which he or she had him more. If this really is a contest information at least to investigate a major conflict of interest because over the professionalism of Attorney whether any of these top-level White staff recommended they not recuse General Janet Reno, I feel very con- House advisers were aware of or in- themselves? Would the public accept a fident to stand by her. On four separate volved in Huang’s and the Riady’s far- judge’s refusal to recuse himself or her- occasions, Attorney General Reno has reaching scheme to launder foreign self in the face of a conflict because a exercised the right to call for an inde- funds into Democratic campaign cof- clerk advised against it? pendent counsel within the Clinton ad- fers? Does the Attorney General expect The fact is that the DNC, the Demo- ministration, three of those counsel in- the public to have confidence that she cratic National Committee, has sim- vestigating members appointed to the can thoroughly and dispassionately in- ply, on the basis of its own audit, al- President’s Cabinet and a fourth inves- vestigate individuals among the Presi- ready identified over $3 million in im- tigating the Whitewater controversy dent’s closest advisers without any proper contributions, violations of law, involving the Clinton family itself. It conflict? if you will. A significant portion of this is very clear to me that Attorney Gen- Similarly, there is now a wealth of illicit money has not even been re- eral Reno is calling these as she sees information documenting the extensive turned yet, only confirming that this them. involvement from the President down $3 million has already been spent, Look at the situation that we now through Mr. Ickes and other White spent to reelect President Clinton. have before us. The Speaker of the House advisers in the plans, discussed We have people calling for campaign House of Representatives, Mr. GING- earlier, to use the Lincoln bedroom, finance reform on this floor. Why don’t RICH, leaders of the Republican Party, the White House, Air Force One, and we enforce the campaign finance laws all come forward and say that if Attor- the White House’s computer database that are already on the books. That is ney General Reno does not ask for an to further campaign purposes, and that what this is all about, in part, I have to independent counsel, they are going do campaign contributions were received tell you. Three million dollars in ille- drag her up to Capitol Hill, put her be- at the White House. The Attorney Gen- gal funds, illicit funds spent to reelect fore the committee, maybe put her eral claims she is ‘‘actively investigat- the President, already spent. I wonder under oath, and demand to know why ing’’ whether laws were violated. how Candidate Dole feels about that. she has not called for an independent Doesn’t this investigation of these The need for an independent counsel counsel. high-level White House advisers, even is not merely a matter of applying the I suggest to my colleagues in the if not covered individuals, present a law to the facts. The chorus we are now Senate the independent counsel statute conflict at least as great as the conflict hearing from the President’s press sec- itself is hanging on by a slender thread that apparently existed with regard to retary and the Democratic apologists if we try to politicize this process and the investigations of Mr. North and Mr. would seem to indicate that that is so pressure the Attorney General into McDougal? when in fact it is not. In my opinion, calling for an investigation where it is How can one say that there is no con- Attorney General Reno was presented not warranted. flict when the FBI and White House are with an ethical question, a question ul- Keep in mind the creation of this publicly squabbling over whether the timately of whether the public can statute came from an era when Presi- White House should receive informa- have confidence in this investigation, dent Nixon fired Archibald Cox as a tion about the investigation, and the whether the public can have confidence special prosecutor, the so-called Satur- Attorney General is smack in the mid- in this Justice Department, and wheth- day Night Massacre. The independent dle of this squabble; when the White er the public can have confidence in counsel statute was created to try to House falsely accuses the FBI of telling the Clinton administration itself. put in place a third party or a dis- the National Security Council staff not Make no mistake about it. Attorney passionate or a detached approach to to pass on information regarding Chi- General Reno’s decision yesterday was investigations. And now, because those nese attempts to illegally influence a significant political event, one in the majority, the Republican Party, United States policymakers? which, much to my regret, will subject are dissatisfied that Attorney General Indeed, the very fact that the FBI, an her to serious and I think justified crit- Reno has not called for an independent agency within the Justice Department, icism. This is not a happy day for the counsel, you hear all sorts of com- refused to produce this information to Department of Justice or for the public ments about we are going to put the the White House on the eve of Sec- confidence in our system of justice. By pressure on her; we are going to bring retary Albright’s visit to China clearly continuing to permit what certainly her up here and put her before a com- suggests that the investigation has al- appears to be a very serious conflict of mittee to answer all these questions. ready reached high up into the White interest, the Attorney General regret- Mr. HATCH. Will the Senator yield? House. It is curious, to say the least, tably has, to use her own words, Mr. DURBIN. I will be happy to yield that the Department of Justice leaked brought upon the Nation ‘‘the destruc- in just a moment. It just may be a fact its decision to the press over the week- tive effect in a free democracy of pub- that there is insufficient evidence to end, but it did not actually notify the lic cynicism.’’ support the charges which the Senator April 15, 1997 CONGRESSIONAL RECORD — SENATE S3173 from Utah and other Republicans be- pointment of an independent counsel, I She had a strong view that even the lieve. Now, this Attorney General has have to say I am sadly disappointed slightest appearance of a conflict of in- been involved in this investigation for that she has not chosen to do that terests should, at all costs, be avoided a long period of time with 50 different under these circumstances. But I do by the independent counsel. She said FBI agents. If the newspaper reports understand my colleague at this hour this: are accurate, she has basically said rising to defend Attorney General . . . there is an inherent conflict of inter- that she will turn to her career pros- Reno. I am not attacking her person- est whenever senior Executive Branch offi- ecutors to make this call. I trust her ally. I am just attacking what has been cials are to be investigated by the Depart- done here, and I think it should have ment of Justice and its appointed head, the judgment. I think we should trust her Attorney General. The Attorney General judgment. Applying political pressure been done before. serves at the pleasure of the President. Rec- at this point on the Attorney General Mr. DURBIN. I thank the Senator ognition of this conflict does not belittle or is not in the best interests of a good in- from Utah. I want to say this much. If demean the impressive professionalism of vestigation that may be necessary and there has been any criticism of Attor- the Department’s career prosecutors, nor may lead to the appointment of an ney General Janet Reno in the last 6 does it question the integrity of the Attor- independent counsel. months, it is that she is too independ- ney General and his or her political ap- I will be happy to yield. ent. There was a question as to wheth- pointees. Instead, it recognizes the impor- Mr. HATCH. I appreciate my col- er this President would even reappoint tance of public confidence in our system of her because of her independence, the justice, and the destructive effect in a free league yielding. democracy of public cynicism. Let us just make it clear to my col- fact she had named four independent league that this chairman of the Judi- counsel. That has been the criticism of She further testified that: It is absolutely essential for the public to ciary Committee and Chairman HYDE Attorney General Reno. She calls them have confidence in the system and you can- over in the House, when many people as she sees them. She is a professional. She has made a decision today which not do that when there is conflict or an ap- were calling for us to send her a letter, pearance of conflict in the person who is, in delayed and delayed, giving the Attor- the Republicans are unhappy with; effect, the chief prosecutor. . . . The Inde- ney General a lot of time, nor have we they wanted an independent counsel pendent Counsel Act as designed to avoid been calling improperly for her to act named in this case. But when she even the appearance of impropriety in the in any way other than properly. But it named four previous independent coun- consideration of allegations of misconduct will be interesting for people to know sel, they cheered—good judgment, good by high-level Executive Branch officials and that we had scheduled our oversight work. Now, when she has decided not to to prevent . . . the actual or perceived con- flicts of interest. The Act thus served as a hearing for May 20 for the Attorney call for one, they want to bring her up to Capitol Hill, put her before the com- vehicle to further the public’s perception of General to come in and to be examined fairness and thoroughness in such matters, by the Judiciary Committee. I think mittee, start asking questions: Why and to avert even the most subtle influences for the information of everybody who won’t you bend to this pressure? I hope that may appear in an investigation of high- is here, she has agreed to come earlier she does not. I hope she calls it based ly-placed Executive officials. than that, within the next 3 weeks, on the evidence. I really believe that the case has probably in the first week of May, and On a show that I was on last night, been made here. And, although I still at that time she will have to justify one of my colleagues on the Republican have very fond feelings toward the At- this decision. side said, ‘‘Hasn’t there been enough torney General, I think she has made a I think it is also safe to point out time here? Shouldn’t she call for an tragic error. And I believe that this is independent counsel?’’ that I have been a very strong sup- not going to end it. In the end, I think This is not about time. This is about porter of the Attorney General and we would have been a lot farther down evidence, credible witnesses. If they do still care for her a great deal. I do not the road had she applied for the ap- like to see her subjected to this, but not come forward with the evidence and with the testimony to justify an pointment of an independent counsel. this is, to my knowledge, the first time Be that as it may, these remarks had independent counsel, I hope Attorney that the letters from thoughtful chair- to be made because they are important. General Reno will not bow to pressure men and all the Republicans on both Either we are going to have a statute here. I hope she will stand up for what sides of the Judiciary Committee have or we are not. As I have said, I have she believes in. And as a Democrat, I been rejected and I think under much never been a strong supporter of this am prepared to accept her decision. I more stringent circumstances than believe she is professional enough that statute. But it is there and it has been independent counsel she has granted in we can stand behind her. But we jeop- used in prior administrations. It has the past. ardize the future of this statute, and I been used in this administration. And So I personally hope she can assert think we ought to think twice about it, this case, it seems to me, is even more why she has not decided to at least by putting this kind of public pressure overwhelming than some of the prior conduct a preliminary investigation on the Attorney General trying to push cases where it has been used. which would have triggered another 90 I yield the floor, and I thank my col- her in one political direction or the days to do this. I suggested to her and other. league. to the Justice Department that she do Mr. HATCH addressed the Chair. Mr. DURBIN. Mr. President, who has that. The PRESIDING OFFICER (Mr. time at this moment? The PRESIDING OFFICER. The Sen- I also do not accept the—I am sorry; HAGEL). Does the Senator from Illinois I will not take much longer. I do not yield? ator from Illinois has the remaining accept her assertion that she is relying Mr. DURBIN. Mr. President, I had time. on professional staff members. asked for an additional 10 minutes on Mr. DURBIN. Mr. President, let me Now, I have a lot of confidence in the another topic with the Senator from just say in closing, on this particular professional staff members down there, Nebraska. issue, before I move to the other with but this involves a lot more than that Mr. HATCH. Will the Senator yield Senator HAGEL, this is a matter of the and, frankly, involves just how this for just 90 seconds? Attorney General’s discretion. Whether statute is going to be applied. Mr. DURBIN. I will be happy to yield that Attorney General is a Democrat When the time comes to reconsider to the Senator from Utah. or a Republican, under this statute the this statute, I will be very interested in Mr. HATCH. I would like to say this Attorney General is to gather the evi- working with the distinguished Sen- in response. I just spent 30 minutes lay- dence, listen to the testimony, and de- ator from Illinois and others to make ing out some of the evidence that I cide whether or not that evidence and sure that, if we are going to have a think clearly shows the grounds for testimony crosses a threshold to sug- statute like this, let us have it so it further investigation. The question is gest that a crime has been committed, works, and, frankly, I have qualms how can the Attorney General continue either by a covered person in the ad- about having it at all. But since we do this investigation within the Depart- ministration or a Member of Congress, have it and since it does have these two ment without a conflict of interest? I or creating a conflict of interest be- main methods of triggering the call for do not think she can. Again, I will cite tween the administration and the in- an independent counsel and the ap- her testimony back in 1993. vestigation. S3174 CONGRESSIONAL RECORD — SENATE April 15, 1997 If I listened and heard correctly, the morning business for no more than 6 to what to do with their income. All the Senator from Utah questions whether 7 minutes. polls that I have seen taken on the at- or not an Attorney General, appointed The PRESIDING OFFICER. Without titudes of Americans tell us that our by a President, can exercise appro- objection, it is so ordered. current system of taxation is in bad priate discretion when there has been a f need of reform. I agree. Giving Mon- suggestion that that President or his tanans and all Americans the oppor- OUR SYSTEM OF TAXATION Cabinet be investigated. tunity to be financially secure should What the Senator from Utah calls Mr. BURNS. Mr. President, this is be the goal. into question is more than the judg- likely the single most frustrating day I might add at this point, the Na- ment of any specific Attorney General. of the year for many Americans. What tion’s tax collection agency also needs He calls into question the very exist- self-respecting member of any legisla- to do something about its own image. ence of the statute. I think there are tive body would not take to the floor That may be a feat that borders on the many deficiencies in this statute. I and talk about his or her favorite sub- impossible, but it should be attempted. think we should address those, and per- ject, taxes? We could all relate to the There are two taxes, in my estimation, haps reauthorize it with some changes. tension of the day and the frustration that are destructive of the majority of Among those changes, I might add, is of working our way through the ‘‘sim- families. They are death taxes—the es- that if an independent counsel is to be plified’’ tax forms, worrying about tate taxes—and capital gains. Mon- appointed, that independent counsel be making an inadvertent mistake. But, tana, my State, is a State made up of truly independent. also, how we are going to do what is ex- family-run farms and ranches and In the history of this statute, 15 inde- pected of us? With April 15 now upon small businesses. With regard to the pendent counsels have been named: 11 us, it is time to reflect on our system death taxes, upon the death of an Republicans, 2 Independents, 2 Demo- of taxation and the burden it places on owner of a small family business or a crats. This process has been loaded to each and every one of us who live in family farmer ranch, the family is re- appoint Republican independent coun- this country. quired to pay more than 55 percent of sels. And how? Because the three I know at times the IRS finds itself the value of the farm or business value judges who make the appointment, as the brunt of many jokes. But to a in excess of $600,000. The only thing the named by the Chief Justice, have cre- lot of folks in Montana, tax day is no survivors want to do is simply continue ated a daisy chain, where they are ap- laughing matter. The fact is, families operating the family business or farm. all across this Nation are forced to pointed for 2 years as the statute calls But in most cases, they are forced to make some tough financial choices for and then reappointed for another 2 sell it in order to pay those death each year around this time. Serious years. They keep coming back, over taxes. No one—no one, Mr. President— questions are being asked. What can we and over and over again, the same peo- should be forced to sell the farm to do as a family to pay our fair share of ple, making the same judgments about save the farm. taxes? By and large, Americans know, the appointment of independent coun- Another equally burdensome tax is sel. and they understand that some taxes are necessary to pay for the essential the capital gains tax, which punishes I think this statute needs to be ad- those who choose to save and invest for dressed. But, if we are going to attack government services: For education, for the infrastructure of transportation their future. This tax affects everybody this Attorney General because she has who saves and invests to ensure they to exercise her discretion, believe me and other services that we enjoy. But the question also surfaces on how to can take care of themselves and their that is what the statute says that she loved ones. Like the estate tax, the must do. She must look at that evi- balance our family needs. All too often, the options given re- capital gains tax is punitive. It is a vol- dence, decide whether it is credible, untary tax. You do not have to pay and decide whether to go forward. As quire sacrifices. And, you know what? They affect children and they affect re- capital gains tax because you do not unhappy as the Republicans may be have to sell. If you do not sell, you with this decision by the Attorney lationships. Most times, it is not fair. And sometimes it is just not right. limit economic opportunity in the fi- General, I trust her judgment. I trust nancial community. her professional judgment. If she says Unfortunately, it seems we are living Like the estate tax, it is a form of at this moment it is not warranted, I in an age when only one wage earner double taxation, moneys taxed once it think she is right. I will stand by it. cannot live financially secure and com- Should she change her mind at some fortable. Nowadays, in order to make is earned as income and again upon the later date, I will accept that decision, ends meet both parents are working, sale of an asset or investment, and too. But to call her up here and put her even though one may prefer to remain Lord knows how many times in be- under pressure because she has made home with their children. Families in tween, making it even more difficult that decision is a serious, serious mis- which one parent chooses to remain at for families to save for the future. take. home often struggle financially, living The capital gains tax has a top rate At this point I believe there has been paycheck to paycheck, while, on the of 28 percent, which is among the high- a unanimous-consent request for 10 other hand, dual-income families find a est in the world. Many of the world’s minutes for Senator HAGEL and myself disproportionate share of the second strongest economic powers, including to address another issue, is that cor- check being melted away with added Germany, Hong Kong and South Korea, rect? expenses of cost of child care, addi- have no capital gains tax at all. These The PRESIDING OFFICER. The Sen- tional transportation needs and so on, countries recognize the importance of ator has 7 minutes remaining of that and still no tax relief on the burden savings. They also recognize the impor- time. that is suffered on the second pay- tance of investments, and they know Mr. DURBIN. I thank the Chair. check. Neither situation leaves fami- what it takes to create jobs, maintain (The remarks of Mr. DURBIN and Mr. lies in a comfortable financial condi- an economic growth and stability and, HAGEL pertaining to the introduction tion. Time and time again we have seen let’s face it, governments cannot take of S. 575 are located in today’s RECORD bad economic conditions lead to the de- all the money and provide a stable fi- under ‘‘Statements on Introduced Bills mise of families and the family struc- nancial future for anybody with the ex- and Joint Resolutions.’’) ture. Who suffers? Our children suffer. ception of those who choose to exploit The PRESIDING OFFICER. The Sen- I believe it is important that we their own government. ator from Montana. begin the process of reform, which will There is no question in my mind, in Mr. BURNS. Mr. President, this Sen- allow our families more options and, in order to strengthen the American fam- ator inquires of the order of business? the end, allow them to keep more of ily, we must make them economically The PRESIDING OFFICER. The Sen- what they earn. Those decisions should secure. No matter what we say or how ate is scheduled to recess absent a be and could be made at home instead good it seems, Government cannot do unanimous-consent request. of some IRS office or, yes, an office that. With juvenile crime at an all- Mr. BURNS. Mr. President, I ask here in Washington, DC. Let families time high, there is no hope for young unanimous consent I may proceed as in decide, make the financial decision of people if they cannot see a future that April 15, 1997 CONGRESSIONAL RECORD — SENATE S3175 allows them to use their God-given tal- General into doing what they wanted. can be dealt with on a nonpartisan ents to ensure economic and political Both Speaker GINGRICH and Majority basis. That hope is being dashed by the freedom. Leader ARMEY said Sunday, in effect, kind of excessive comments that the We must put in place those policies that if the Attorney General did not Speaker of the House and majority that allow us to provide essential Gov- seek an independent counsel, it is be- leader of the House engaged in last ernment services, help those who can- cause she caved in to administration weekend when they engaged in threats not help themselves and build the in- pressure. and coercion, attempting to politically frastructure that provides us with op- I ask unanimous consent that the intimidate the Attorney General of the portunity and promise for the future. April 14 article of the Washington Post, United States. She has not shown a re- We must work to ease the excessive tax entitled ‘‘Republicans Warn Reno on luctance to use the independent coun- burden being shouldered by families. Independent Counsel,’’ be printed in sel statute when the threshold has been It would be a noble work, indeed, in the RECORD following my remarks. met. She is following the law to the this Senate, if we could provide for the The PRESIDING OFFICER. Without best of her conscience and ability. She time when decisions could be made by objection, it is so ordered. has done a professional job. I commend families at the kitchen table with re- (See exhibit 1.) her for following the law and the public gard to their economic and political fu- Mr. LEVIN. Mr. President, those integrity section recommendation in ture, when parents had more options. comments by the Speaker and the ma- her Department, rather than bowing to We must provide them. jority leader of the House constitute an political pressure. I emphasize that she Through reform and reduction of our attempt at political intimidation and has not, and I believe will not, bow to tax burden, this process can begin. The coercion. Their message to the Attor- political pressure from whatever source opportunity exists at this time, and ney General was that if she doesn’t or whatever direction. the time is now. It ensures parents the seek the appointment of an independ- I ask unanimous consent that the At- opportunity to raise their children ent counsel, she would run the risk of torney General’s letter to Senator comfortably and provide for a stable, being brought before a congressional HATCH be printed in the RECORD at this time. financially secure future. Thank you, committee and that she would be in- Mr. President. vestigated, she would be put under There being no objection, the letter I yield the floor. oath, as though she, somehow or other, was ordered to be printed in the f is violating her oath. RECORD, as follows: The statements by the Republican OFFICE OF THE ATTORNEY GENERAL, RECESS leaders in the House fly in the face of Washington, DC, April 14, 1997. The PRESIDING OFFICER. Under the very purpose of our independent Hon. ORRIN G. HATCH, the previous order, the Senate will now counsel law. Now, this is a statute that Chairman, Committee on the Judiciary, we passed, on a bipartisan basis, to U.S. Senate, Washington, DC. stand in recess until the hour 2:15 p.m. DEAR MR. CHAIRMAN: On March 13, 1997, Thereupon, at 2:04 p.m., the Senate take politics out of criminal investiga- you and nine other majority party members recessed until 2:15 p.m.; whereupon, the tions of high-level officials. But the of the Committee on the Judiciary of the Senate reassembled when called to Speaker of the House and the majority United States Senate wrote to me requesting order by the Presiding Officer (Mr. leader of the House worked mighty the appointment of an independent counsel COATS). hard to put politics right back into the to investigate possible fundraising violations The PRESIDING OFFICER. The law. Their threats to the Attorney in connection with the 1996 presidential cam- paign. You made that request pursuant to a Chair, in his capacity as the Senator General—and that is exactly what they provision of the Independent Counsel Act, 28 from Indiana, suggests the absence of a were—to make her do what they want U.S.C. § 592(g)(1), which provides that ‘‘a ma- quorum. were inappropriate, and they jeopardize jority of majority party members [of the The clerk will call the roll. the very law that they are demanding Committee on the Judiciary] * * * may re- The legislative clerk proceeded to she invoke. quest in writing that the Attorney General call the roll. She is required and was required to apply for the appointment of an independent Mr. LEVIN. Mr. President, I ask follow the law, wherever it leads her, counsel.’’ The Act requires me to respond despite the clumsy efforts at political within 30 days, setting forth the reasons for unanimous consent that the order for my decision on each of the matters with re- the quorum call be rescinded. intimidation of the Speaker of the spect to which your request is made. 28 The PRESIDING OFFICER. Without House and the majority leader of the U.S.C. § 592(g)(2). objection, it is so ordered. House. Their comments and their ef- I am writing to inform you that I have not Mr. LEVIN. Mr. President, I thank forts to intimidate and coerce her to initiated a ‘‘preliminary investigations’’ (as the Chair. reach a conclusion that they believe is that term is defined in the Independent Counsel Act) of any of the matters men- (The remarks of Mr. LEVIN pertaining the right conclusion are inappropriate; tioned in your letter. Rather, as you know, to the introduction of S. 576 are located they undermine a very important law, matters relating to campaign financing in in today’s RECORD under ‘‘Statements and they put that law’s usefulness into the 1996 Federal elections have been under on Introduced Bills and Joint Resolu- jeopardy. active investigation since November by a tions.’’) There are thresholds in the independ- task force of career Justice Department Mr. LEVIN. Mr. President, I ask ent counsel law. The Attorney General prosecutors and Federal Bureau of Investiga- unanimous consent that after I speak has gone through, very carefully, in tion (FBI) agents. This task force is pursuing for 4 minutes, the Senator from Illinois her letter to the Congress why it is she the investigation vigorously and diligently, does not at this time seek the appoint- and it will continue to do so. I can assure be recognized at that time. you that I have given your views and your The PRESIDING OFFICER. Without ment of an independent counsel. She arguments careful thought, but at this time, objection, it is so ordered. has gone through the evidence that she I am unable to agree, based on the facts and f has and has indicated why the thresh- the law, that an independent counsel should olds in the statute have not been met. be appointed to handle this investigation. THE ATTORNEY GENERAL’S She has done so carefully and profes- 1. The Independent Counsel Act: INDEPENDENT COUNSEL DECISION sionally. In order to explain my reasons, I would Mr. LEVIN. Mr. President, I want to like to outline briefly the relevant provi- I urge every Member of this body to sions of the Independent Counsel Act. The comment on the independent counsel read the Attorney General’s letter to Act can be invoked in two circumstances decision of the Attorney General. Senator HATCH before they join any that are relevant here: The Attorney General’s obligation is partisan effort to attempt to under- First, if there are sufficient allegations (as to follow the law. It is not to respond mine the purpose of the law and to further described below) of criminal activity to political pressure from whatever partisanize it. by a covered person, defined as the President source. Now, Senator Cohen and I worked and Vice President, cabinet officers, certain other enumerated high Federal officials, or Now, over the last weekend, there mighty hard to reauthorize this law. certain specified officers of the President’s were some extraordinary attempts We did it more than once. We did it be- election campaign (not party officials), see made by a number of House Republican cause it holds out the hope that serious 28 U.S.C. § 591(b), I must seek appointment of leaders to literally scare the Attorney allegations against high-level officials an independent counsel. S3176 CONGRESSIONAL RECORD — SENATE April 15, 1997 Second, if there are sufficient allegations 1982) (statement of Rep. Hall). Moreover, I tions covered by the provisions of the stat- of criminal activity by a person other than a must find that there is the potential for such ute. covered person, and I determine that ‘‘an in- an actual conflict with respect to the inves- Thus, while you express concerns about the vestigation or prosecution of [that] person tigation of a particular person, not merely possibility of ‘‘specific solicitation . . . made by the Department of Justice may result in with respect to the overall matter. Indeed, by federal officials at the numerous White a personal, financial or political conflict of when the Act was reauthorized in 1994, Con- House overnights, coffees, and other similar interest,’’ see 28 U.S.C. § 591(c)(1), I may seek gress considered a proposal for a more flexi- events,’’ we do not at this time have any spe- appointment of an independent counsel. ble standard for invoking the discretionary cific and credible evidence of any such solici- In either case, I must follow a two-step clause, which would have permitted its use tation by any covered person that may con- process to determine whether the allegations to refer any ‘‘matter’’ to an Independent stitute a violation of section 607. are sufficient. First, I must determine Counsel when the purposes of the Act would We do not suggest, of course, that our con- whether the allegations are sufficiently spe- be served. sideration of information concerning fund- cific and credible to constitute grounds to Congress rejected this suggestion, explain- raising on Federal property is limited to investigate whether an individual may have ing that such a standard would ‘‘substan- whether the conduct constituted a violation violated Federal criminal law. 28 U.S.C. tially lower the threshold for use of the gen- only of section 607. However, at this point in § 591(d). If so, the Department commences a eral discretionary provision.’’ H.R. Conf. time, we have no specific and credible evi- ‘‘preliminary investigation’’ for up to 90 days Rep. No. 511, 103rd Cong., 2nd Sess. 9 (1994). dence to suggest that any crime was com- (which can be extended an additional 60 days 2. Covered Persons—The Mandatory Provi- mitted by any covered person in connection upon a showing of good cause). 28 U.S.C. sions of the Act: with these allegations. § 592(a). If, at the conclusion of this ‘‘prelimi- Let me now turn to the specific allegations b. Misuse of Government Resources. You nary investigation,’’ I determine that fur- in your letter. You assert that there are next assert that Government property and ther investigation of the matters is war- ‘‘new questions of possible wrongdoing by employees may have been used illegally to ranted, I must seek an independent counsel. senior White House officials themselves,’’ further campaign interests—conduct which Certain important features of the Act are and you identify a number of particular might, in some circumstances, constitute a critical to my decision in this case: types of conduct in support of this claim. theft or conversion of Government property First, the Act sets forth the only cir- While all of the specific issues you mention in violation of 18 U.S.C. § 651. Again, we are cumstances in which I may seek an inde- are under review or active investigation by actively investigating allegations that such pendent counsel pursuant to its provisions. I the task force, at this time we have no spe- misconduct may have occurred. However, we may not invoke its procedures unless the cific, credible evidence that any covered are unaware at this time of any evidence statutory requirements are met. White House official may have committed a that any covered person participated in any Second, the Act does not permit or require Federal crime in respect of any of these is- such activity, other than use of Government me to commence a preliminary investigation sues. Nevertheless, I will discuss separately property that is permitted under Federal unless there is specific and credible evidence each area that you raise. law, such as the reports that the Vice Presi- that a crime may have been committed. In a. Fundraising on Federal Property. First, dent used a Government telephone, charging your letter, you suggest that it is not the re- you suggest that ‘‘federal officials may have the calls to a nongovernment credit card. sponsibility of the Department of Justice to illegally solicited and/or received contribu- Federal regulations permit such incidental determine whether a particular set of facts tions on federal property.’’ The conduct you use of Government property for otherwise suggests a potential Federal crime, but that describe could be a violation of 18 U.S.C. lawful personal purposes. See, e.g., 5 C.F.R. such legal determinations should be left to § 607. We are aware of a number of allegations § 2635.704; 41 C.F.R. § 201–21.601 (personal long an independent counsel. I do not agree. of this sort; all are being evaluated, and distance telephone calls). Thus, for example, Under the Independent Counsel Act, it is the where appropriate, investigations have been allegations that a Government telephone or Department’s obligation to determine in the commenced. The Department takes allega- telefacsimile machine may have been used first instance whether particular conduct po- tions of political fundraising by Federal em- on a few occasions by a covered person for tentially falls within the scope of a particu- ployees on Federal property seriously, and in personal purposes does not amount to an al- lar criminal statute such that criminal in- appropriate cases would not hesitate to pros- legation of a Federal crime. To the extent vestigation is warranted. If it is our conclu- ecute such matters. Indeed, the Public Integ- that there are allegations warranting inves- sion that the alleged conduct is not criminal, rity Section, which is overseeing the work of tigation that individuals not covered by the then there is no basis for appointment of an the campaign financing task force, recently Independent Counsel Act diverted Govern- independent counsel, because there would be obtained a number of guilty pleas from indi- ment resources, it is my conclusion, as I ex- no specific and credible allegation of a viola- viduals who were soliciting and accepting plain below, that there is at present no con- tion of criminal law. See 28 U.S.C. § 592(a)(1). political contributions within the Depart- flict of interest for the Department of Jus- Third, there is an important difference be- ment of Agriculture. tice to investigate and, if appropriate, pros- tween the mandatory and discretionary pro- The analysis of a potential section 607 vio- ecute those involved in any such activity. visions of the Act. Once I have received spe- lation is a fact-specific inquiry. A number of c. Foreign Efforts to Influence U.S. Policy. cific and credible allegations of criminal different factors must be considered when re- You next cite reports suggesting the possi- conduct by a covered person, I must com- viewing allegations that this law may have bility that foreign contributions may have mence a preliminary investigation and, if been violated: been made in hopes of influencing American further investigation is warranted at the end First, the law specifically applies only to policy decisions. These allegations are under of the preliminary investigation, seek ap- contributions as technically defined by the active investigation by the task force. The pointment of an independent counsel. If, on Federal Election Campaign Act (FECA)— facts known at this time, however, do not in- the other hand, I receive specific and credi- funds commonly referred to as ‘‘hard dicate the criminal involvement of any cov- ble evidence that a person not covered by the money.’’ The statute originally applied ered person in such conduct. mandatory provisions of the Act has com- broadly to any political fundraising, but in It is neither unique nor unprecedented or mitted a crime, and I determine that a con- 1979, over the objection of the Department of the Department to receive information that flict of interest exists with respect to the in- Justice, Congress narrowed the scope of sec- foreign interests might be seeking to infuse vestigation of that person, I may—but need tion 607 to render it applicable only to FECA money into American political campaigns. not—commence a preliminary investigation contributions. Before concluding that sec- That was precisely the scenario that under- pursuant to the provisions of the Act. This tion 607 may have been violated, we must lay the criminal investigations, prosecutions provision gives me the flexibility to decide have evidence that a particular solicitation and congressional hearings during the late whether, overall, the national interest would involved a ‘‘contribution’’ within the defini- 1970s involving allegations that a Korean be best served by appointment of an inde- tion of the FECA. businessman was making illegal campaign pendent counsel in such a case, or whether it Second, there are private areas of the contributions, among other things, to Mem- would be better for the Department of Jus- White House that, as a general rule, fall out- bers of Congress to curry congressional sup- tice to continue a vigorous investigation of side the scope of the statute, because of the port for the Government of South Korea. In the matter. statutory requirement that the particular a more recent example, in 1996 an individual Fourth, even this discretionary provision solicitation occur in an area ‘‘occupied in was prosecuted and convicted for funneling is not available unless I find a conflict of in- the discharge of official duties.’’ 3 Op. Off. Indian Government funds into Federal elec- terest of the sort contemplated by the Act. Legal Counsel 31 (1979). The distinction rec- tions through the cover of a political action The Congress has made it very clear that ognizes that while the Federal Government committee. this provision should be invoked only in cer- provides a residence to the President, simi- Absent specific and credible evidence of tain narrow circumstances. Under the Act, I lar to the housing that it might provide to complicity by a covered person, it has never must conclude that there is a potential for foreign service officers, this residence is still been suggested that the mere allegation that an actual conflict of interest, rather than the personal home of an individual within a foreign government may have been trying merely an appearance of a conflict of inter- which restrictions that might validly apply to provide funds to Federal campaigns est. The Congress expressly adopted this to the Federal workplace should not be im- should warrant appointment of an independ- higher standard to ensure that the provision posed. Before we can conclude that section ent counsel. Nor can it be the case that an would not be invoked unnecessarily. See 128 607 may have been violated, we must have independent counsel is required to inves- Cong. Rec. H 9507 (daily ed. December 13, evidence that fundraising took place in loca- tigate because campaign contributors or April 15, 1997 CONGRESSIONAL RECORD — SENATE S3177 those who donated to political parties be- of interest contemplated by the Act, you tionary clause should be invoked. Until then, lieved their largesse would influence policy rely heavily on my testimony before the however, the mere fact that employees of the or achieve access. The Department of Justice Senate Committee on Government Affairs in White House and the DNC worked closely to- routinely handles such allegations, and be- 1993 in support of reauthorization of the gether in the course of President Clinton’s cause of its experience in reviewing and in- Independent Counsel Act. I stand by those reelection campaign does not warrant ap- vestigating these sensitive matters, embrac- views and continue to support the overall pointment of an independent counsel. As I ing, among other things, issues of national concept underlying the Act. My decisions have stated above, the Department has a security, is particularly well-equipped to do pursuant to the Act have been, I believe, long history of investigating allegations of so. fully consistent with those views. criminal activity by high-ranking Govern- d. Coordination of Campaign Fundraising The remarks you quote from my testimony ment officials without fear or favor, and will and Expenditures. You also suggest that the should be interpreted within the context of do so in this case. ‘‘close coordination by the White House over the statutory language I was discussing. I also do not accept the suggestion that the raising and spending of ‘soft’—and pur- When, for example, I referred to the need for there will be widespread public distrust of portedly independent—DNC funds violated the Act to deal with the inherent conflict of the actions and conclusions of the Depart- Federal election laws, and/or had the legal interest when the Department of Justice in- ment if it continues to investigate this mat- effect of rendering those funds subject to vestigates ‘‘high-level Executive Branch offi- ter, creating a conflict of interest warrant- campaign finance limitations they otherwise cials,’’ I was referring to persons covered ing the appointment of an independent coun- would not be subject to.’’ We believe this under the mandatory provisions of the Act. sel. First, unless I find that the investigation statement misapprehends the law. The FECA With respect to the conflict of interest provi- of a particular person against whom specific does not prohibit the coordination of fund- sion, my testimony expressed the conviction and credible allegations have been made raising or expenditures between a party and that the Act ‘‘would in no way preempt this would pose a conflict, I have no authority to its candidates for office. Indeed, the Federal Department’s authority to investigate public utilize the procedures of the Act. Moreover, Election Commission (FEC), the body corruption,’’ and that the Department was I have confidence that the career profes- charged by Congress with primary respon- clearly capable of ‘‘vigorous investigation of sionals in the Department will investigate sibility for interpreting and enforcing the wrongdoing by public officials, whatever al- this matter in a fashion that will satisfy the FECA, has historically assumed coordination legiance or stripes they may wear. I will vig- American people that justice has been done. between a candidate and his or her political orously defend and continue this tradition.’’ Finally, even were I to determine that a party. While I endorsed the concept of the discre- conflict of interest of the sort contemplated Of course, coordinated expenditures may tionary clause to deal with unforeseeable sit- by the statute exists in this case—and as be unlawful under the FECA if they are made uations, I strongly emphasized that ‘‘it is noted above I do not find such a conflict at with funds from prohibited sources, if they part of the Attorney General’s job to make this time—there would be a number of were misreported, or if they exceed applica- difficult decisions in tough cases. I have no weighty considerations that I would have to ble expenditure limits. However, we pres- intention of abdicating that consider in determining whether to exercise ently lack specific and credible evidence sug- responsibility[.]’’ These principles continue my discretion to seek an independent coun- gesting that any covered person participated to guide my decisionmaking today. sel at this time. Because invocation of the in any such violations, if they occurred. There are times when reliance on the dis- conflict of interest provision is discre- With respect to coordinated media adver- cretionary clause is appropriate, and indeed, tionary, it would still be my responsibility tisements by political parties (an area that as you point out, I have done so myself on a in that circumstance to weigh all the factors has received much attention of late), the few occasions. However, in each of those and determine whether appointment of an proper characterization of a particular ex- cases, I considered the particular factual independent counsel would best serve the na- penditure depends not on the degree of co- context in which the allegations against tional interest. If in the future this inves- ordination, but rather on the content of the those persons arose and the history of the tigation reveals evidence indicating that a message. Indeed, just last year the FEC and matter. Moreover, even after finding the ex- conflict of interest exists, these factors will the Department of Justice took this position istence of a potential conflict, I must con- continue to weigh heavily in my evaluation in a brief filed before the Supreme Court, in sider whether under all the circumstances of whether or not to invoke the discre- a case decided on other grounds. See gen- discretionary appointment of an independent tionary provisions of the Act. erally, Brief for the Respondent, Colorado Re- counsel is appropriate. In each case, there- publican Federal Campaign Committee v. FEC, fore, the final decision has been an exercise * * * * * (S. Ct. No. 95–489) at 2–3, 18 n.15, 23–24. In this of my discretion, as provided for under the I assure you, once again, that allegations connection, the FEC has concluded that Act. of violations of Federal criminal law with re- party media advertisements that focus on I have undertaken the same examination spect to campaign financing in the course of ‘‘national legislative activity’’ and that do here. Based on the facts as we know them the 1996 Federal elections will be thoroughly not contain an ‘‘electioneering message’’ now, I have not concluded that any conflict investigated and, if appropriate, prosecuted. may be financed, in part, using ‘‘soft’’ of interest would ensure from our vigorous At this point it appears to me that that task money, i.e., money that does not comply and thorough investigation of the allega- should be performed by the Department of with FECA’s contribution limits. FEC Advi- tions contained in your letter. Justice and its career investigators and pros- sory Op. 1995–25, 2 Fed. Elec. Camp. Fin. Your letter relies upon press reports, cer- ecutors. I want to emphasize, however, that Guide (CCH) T 6162, at 12,109–12,110 (August 24, tain documents and various public state- the task force continues to receive new in- 1995); FEC Advisory Op. 1985–14, 2 Fed. Elec. ments which you assert demonstrate that formation (much has been discovered even Camp. Fin. Guide (CCH) T 5819, at 11,185–11,186 ‘‘officials at the highest level of the White since I received your letter), and I will con- (May 30, 1985). Moreover, such advertise- House were involved in formulating, coordi- tinue to monitor the investigation closely in ments are not subject to any applicable limi- nating and implementing the [Democratic light of my responsibilities under the Inde- tations on coordinated Expenditures by the National Committee’s (DNC’s)] fundraising pendent Counsel Act. Should future develop- party on behalf of its candidates. AO 1985–14 efforts for the 1996 presidential campaign.’’ ments make it appropriate to invoke the at 11–185–11,186. You suggest that a thorough investigation of procedures of the Act, I will do so without We recognize that there are allegations ‘‘fundraising improprieties’’ will therefore hesitation. that both presidential candidates and both necessarily include an inquiry into the Sincerely, national political parties engaged in a con- ‘‘knowledge and/or complicity of very senior JANET RENO. certed effort to take full advantage of every White House officials,’’ and that the Depart- EXHIBIT 1 ment of Justice would therefore have a con- funding option available to them under the [From the Washington Post, Apr. 14, 1997] law, to craft advertisements that took ad- flict of interest investigating these allega- REPUBLICANS WARN RENO ON INDEPENDENT vantage of the lesser regulation applicable to tions. COUNSEL legislative issue advertising, and to raise To the extent that ‘‘improprieties’’ com- large quantities of soft political funding to prise crimes, they are being thoroughly in- (By John E. Wang) finance these ventures. However, at the vestigated by the agents and prosecutors as- House Speaker Newt Gingrich (R-Ga.) said present time, we lack specific and credible signed to the task force. Should that inves- yesterday Attorney General Janet Reno evidence suggesting that these activities vio- tigation develop at any time specific and should be called before Congress to testify lated the FECA. Moreover, even assuming credible evidence that any covered person under oath if she does not tell Congress that, after a thorough investigation, the may have committed a crime, the Act will be today that she will seek an independent FEC were to conclude that regulatory viola- triggered, and I will fulfill my responsibil- counsel to investigate alleged abuses in tions occurred, we presently lack specific ities under the Act. In addition, should that Democratic Party fund-raising. and credible evidence suggesting that any investigation develop specific and credible Gingrich declared he has no confidence in covered person participated in any such vio- evidence that a crime may have been com- Reno as attorney general and, when asked if lations. mitted by a ‘‘very senior’’ White House offi- she should resign, said: ‘‘We’ll know tomor- 3. Conflict of Interest—The Discretionary cial who is not covered by the Act, I will de- row,’’ the deadline for Reno to respond to a Provisions of the Act: cide whether investigation of that person by request from congressional Republicans that In urging me to conclude that the inves- the Department might result in a conflict of she call for an independent counsel in the tigation poses the type of potential conflict interest, and, if so, whether the discre- matter. S3178 CONGRESSIONAL RECORD — SENATE April 15, 1997 ‘‘The evidence mounts every day of targets in Iran’’ if there is strong evidence the Minor League Most Valuable Play- lawbreaking in this administration,’’ Ging- linking a senior Iranian government official er. In 1947, he was brought up to play in rich said on ‘‘Fox News Sunday.’’ to a group of Shiite Muslims suspected of the major leagues, and was named ‘‘If she can look at the day-after-day rev- bombing a U.S. military compound in Saudi 1947’s Rookie of the Year. Two years elations about this administration and not Arabia last year. later, he was named the league’s Most conclude it’s time for an independent coun- ‘‘We have to take whatever steps are nec- sel, how can any serious citizen have any essary to convince Iran that state-sponsored Valuable Player. In 1962, Jackie Robin- sense of faith in her judgment?’’ terrorism is not acceptable,’’ he said. ‘‘The son became the first African-American Late last week, the indications were that indirect killing of Americans is still an act named to Baseball’s Hall of Fame. Reno would likely not seek a counsel in the of war.’’ Jackie Robinson’s legacy, however, is case, which is already being investigated by The Washington Post reported yesterday not restricted to that of a sports leg- career Justice Department prosecutors, but that intelligence information indicates that end, or even a civil rights pioneer. aides emphasized no final decision had been Brig. Ahmad Sherifi, a senior Iranian intel- Today I want to talk about some of his made. ligence officer and a top official in Iran’s many achievements off the baseball If she decides not to ask a three-judge Revolutionary Guards, met roughly two panel to name an independent counsel, Ging- field. While playing professional base- years before the bombing with a Saudi Shiite ball, Jackie Robinson served as an in- rich said, Reno needs to explain her decision. arrested March 18 in Canada. According to ‘‘She needs to answer in public, she needs to Canadian court records, the man, Hani Abd spiration to many people of the heights answer, I think, under oath,’’ he said. Rahim Sayegh, had fled Saudi Arabia shortly they could achieve. Upon his retire- Senate Judiciary Committee Chairman after the June 25 bombing that killed 19 U.S. ment, he was determined to make a Orrin G. Hatch (R-Utah) said Reno ‘‘becomes servicemen and wounded more than 500 oth- real difference in the quality of the a major issue’’ if she does not call for an ers. lives of others. As founder of the Jack- independent counsel. The PRESIDING OFFICER. The Sen- ie Robinson Development Corp. and the ‘‘The conflict of interest, both apparent and real, it seems to me, would necessitate ator from Illinois is recognized. Freedom National Bank, he was able to her choosing an independent counsel,’’ he f provide access to capital and affordable said on ABC’s ‘‘This Week.’’ ‘‘If she doesn’t, housing to low income families in the then I think there’s going to be a swirl of JACKIE ROBINSON AND PENSIONS underserved community of Harlem. criticism that’s going to be, I think, very FOR FORMER NEGRO LEAGUE/ Even today, his good works continue much justified.’’ MAJOR LEAGUE PLAYERS through his widow, Rachel Robinson, Justice Department spokesman Bert Bran- Ms. MOSELEY-BRAUN. Mr. Presi- who started the Jackie Robinson Foun- denburg dismissed such talk. ‘‘Unfortu- dent, particularly as we are talking dation 1 year after his death. The nately, this has become a battle between law Foundation provides full 4-year college and politics,’’ he said in a telephone inter- about tax day, I think it is important, view. ‘‘The Justice Department will adhere also, to talk about something that, as scholarships for minority and dis- to the law.’’ Americans, we can celebrate together advantaged young people. The recipi- Reno routinely asks the career prosecutors on this day. ents are chosen based on academic looking into the matter whether any devel- Today marks the anniversary of an strength, community service, leader- opment requires the appointment of an inde- important day in American history. ship potential and financial need. pendent counsel, according to Brandenburg. Today is the 50th anniversary of Jackie There have been over 400 Jackie Robin- So far, they have not said that an independ- Robinson’s dismantling of the color son scholars from across the country ent counsel is indicated, he said. barrier in major league baseball. It with a 92 percent graduation rate. The law says the attorney general must In order to celebrate these achieve- ask for an independent counsel if there is might even be said that his actions, in specific, credible information of criminal so doing, were the beginning of the dis- ments, Senator D’AMATO and I led the wrongdoing by top administration officials— mantling of American apartheid and effort to mint a commemorative coin including the president, vice president and the system of Jim Crow segregation in honor of Jackie Robinson. I am de- Cabinet officers—the head of a president’s that kept us apart in this country. I lighted that this legislation passed and election or reelection campaign or anyone know for a fact that I would not be that the Jackie Robinson Foundation else for whom it would be a conflict of inter- will benefit from profits earned by the est for the Justice Department to inves- here in the U.S. Senate today had it not been for the achievement of Jackie coin. Minting will begin later this year. tigate. Jackie Robinson’s extraordinary suc- Robinson. I daresay that the victory of House Judiciary Committee Chairman cesses were the result of phenomenal Henry J. Hyde (R-Ill.) said an independent Tiger Woods in the Masters, which talent and determination. While much counsel was needed to maintain public con- every American celebrated, I think, of the world knows of Jackie Robin- fidence in the investigation. ‘‘In-house inves- would not have happened had it not son’s success, we must not forget the tigations, as honorable as they might well been for Jackie Robinson’s achieve- African-American baseball players who be, don’t sell the public on the fact that they ment. are independent,’’ he said on ABC. played in the Majors and helped inte- While Hyde said he retains his confidence It was 50 years ago that Jackie Rob- grate the game, yet did not receive the in Reno as attorney general, Gingrich was inson became a member of the Brook- recognition for their contribution to sharply critical of her for not telling White lyn Dodgers, making history by open- the game, nor, for that matter, receive House officials the FBI suspected China was ing doors that had previously been a pension for their time in the Majors. planning to make illegal campaign contribu- closed to African American athletes. Last year, I became aware of the tions. Reno has said she telephoned national The year 1997 also marks the year that plight of Sam Jethroe, a former major security adviser Anthony Lake, failed to major league baseball owners agreed to reach him and never called back. league ball player whose career in ‘‘If you’re the top law enforcement officer give pensions to several baseball play- baseball began in the Negro League. of this country . . . wouldn’t you say to the ers who played in the then-segregated Sam Jethroe, born in East St. Louis, White House, ‘Gee, the president and the sec- Negro Leagues. Many of those players IL, on January 20, 1922, began playing retary of state ought to know we think the followed in the path that was blazed by for the Cleveland Buckeyes, a Negro Chinese communists may be trying to buy Jackie Robinson, but they were ineli- League team, at the age of 20. He the American election’?’’ he said. gible for major league pensions. The House Majority Leader Richard K. Armey played for the Buckeyes for seven sea- fact that the owners fixed that this sons, and was one of the recognized (R-Tex.) suggested Reno is victim of the po- year again is reason for us to celebrate. litical pressures within the administration. stars of the Negro League. ‘‘This is a person that would like to be pro- Mr. President, there are few Ameri- A switch-hitting outfielder who fessional and responsible in their job, and cans today who do not know of Jackie threw right-handed, Jethroe was chris- that makes her out of place in this adminis- Robinson, the baseball great whose tal- tened ‘‘Jet’’ for running so fast; oppos- tration,’’ Armey said on CBS’s ‘‘Face the Na- ent and pursuit of excellence enabled ing teams actually worked at strate- tion.’’ ‘‘She is in a hopeless situation. .. . If him to break the color barrier 50 years gies to slow him down. Sam Jethroe I were Janet Reno, I would just say, ‘I can’t ago. Jackie Robinson began his base- was also a good hitter; he batted .300 function with people that stand with these ball career in 1945 as a Negro League standards of conduct and behavior and I’m during his time with the Buckeyes and leaving.’ ’’ player after serving his country in he led the Negro League in hitting in On another topic, Gingrich said the United World War II. The following year he 1942, 1944, and 1945. States should ‘‘consider very seriously’’ mili- joined the minor league operation of Although African-Americans had pre- tary action against ‘‘certain very high-value the Brooklyn Dodgers, and was named viously been banned from the major April 15, 1997 CONGRESSIONAL RECORD — SENATE S3179 leagues, Mr. Jethroe was given a try- major leagues. I would like to com- turns, and the bill be considered under out with the Boston Red Sox in 1945. He mend Jerry Reinsdorf for his help in the following limitations: There be wasn’t signed onto a major league this matter. Sam Jethroe and the other only one amendment in order to the team, however, until 1949, 2 years after Negro League players would not have bill, to be offered by Senators Jackie Robinson’s historic appearance received this long-awaited relief had it COVERDELL, GLENN, ROTH and MOY- in the league. At that time, Mr. not been for him. NIHAN; no other motions or amend- Jethroe became the first African- I also want to commend the owners ments be in order; further, total debate American baseball player on the Bos- for the tremendous good will and pro- on the amendment and the bill be lim- ton—now Atlanta—Braves and debuted priety of their decision. They recog- ited to 35 minutes divided equally be- on their team in 1950. He was their nized an injustice and fixed it. It is fit- tween Senator COVERDELL or his des- starting center fielder. ting that major league baseball recog- ignee and Senator GLENN or his des- In 1950, Sam Jethroe won the base- nize the contributions of these fine ignee. stealing crown, with 35, scored 100 runs, athletes in the year that we recognize I further ask unanimous consent that and batted .273, with 18 homers and 58 and celebrate the 50th anniversary of following the expiration or yielding RBI’s. As a result he was named Na- Jackie Robinson’s historic break- back of time, the Senate proceed to the tional League Rookie of the Year in through in major league baseball. vote on the Coverdell amendment, the 1950, the third African-American to So, Mr. President, in summary, I bill then be read a third time and there capture the honor in 4 years, following would like to say that there is good be 10 minutes for debate at that point Jackie Robinson and pitcher Don news today, the 15th of April. Not only to be equally divided, to be followed at Newcombe. In 1951, Sam Jethroe was did Jackie Robinson 50 years ago help that point by a vote on S. 522, as even better. He repeated his stolen base open up doors in America, but he amended if amendment. title win and batted .280, with 101 runs helped to change hearts. Fifty years That would mean we would have 45 scored, 29 doubles, 10 triples, 18 homers, ago, after the owners of major league minutes of debate and have final pas- and 65 RBI’s. baseball debated whether or not to let sage shortly after 4 o’clock, probably 5 After spending 1953 in the minors, people of color play America’s game, minutes after 4. Mr. Jethroe completed a successful ca- they made a decision that America’s That is my unanimous-consent re- quest. reer in baseball by playing two games game would take care of one of its own. The PRESIDING OFFICER. Is there with the Pittsburgh Pirates. It seems to me to be an essential Amer- objection? At the time that Sam Jethroe played ican story, that in 50 years’ time we Mr. DURBIN. Reserving the right to baseball, a player needed 4 years of have seen enough change in this coun- object, I would like to ask the majority service in the major leagues in order to try, given rise by the sacrifice, the leader if I could have unanimous con- qualify for a pension. As you may commitment, and the excellence pur- sent for 10 minutes to introduce a bill know, players active since 1980 need sued by Jackie Robinson and those like and speak after the vote on the only 1 year in the majors to qualify. him who opened up doors. Now, 50 Coverdell legislation? Because Sam Jethroe fell short of the years later, those doors have been Mr. LOTT. Mr. President, we have a 4-year requirement, he has never re- opened, and the hearts of many Ameri- number of Senators that may be re- ceived a pension. I believe that Mr. cans have, indeed, been changed. questing time to speak after this. I Jethroe would have qualified for a pen- I think that is good news for today think we can accommodate the Sen- sion; that is, he would have played that we can all celebrate. ator, but I would like to get a minute more than 4 years in major league (The remarks of Ms. MOSELEY-BRAUN where maybe we can get all those baseball had it not been for the fact pertaining to the introduction of S. 586 wrapped up and we will get an agree- that he was banned from baseball be- are located in today’s RECORD under ment during the debate. So the Senator cause of the color of his skin. ‘‘Statements on Introduced Bills and will get the 10 minutes shortly after The misfortune of the ban was Joint Resolutions.’’) the vote, if he would defer for now, and compounded by the change of vesting The PRESIDING OFFICER (Mr. I will see what we have to do. We will rules for pension eligibility. Sam KEMPTHORNE). The Senator from Mis- certainly treat the Senator fairly in Jethroe is now 74 years old, and does souri is recognized. that context. not enjoy a secure retirement. Mr. ASHCROFT. I thank the Chair Mr. DURBIN. I withdraw my objec- Pension security goes to the heart of very much for this opportunity to tion. our challenge to treat the end of life as speak in morning business. Mr. DASCHLE. Reserving the right the golden years rather than the dis- I commend the Senator from Illinois to object, I thank my colleagues, espe- posable years. Retirement security has for her excellent remarks regarding cially Senator COVERDELL, for working been likened to a three legged stool. Jackie Robinson, who is an American with us to try to resolve this matter. Social security, private pensions, and leader, an inspiration in terms of an in- The language that we now have incor- personal savings constitute the basis of dividual whose conduct was inspiring porated, or will have incorporated, in an income stream for the later years of not just to people of one race or an- the resolution is certainly acceptable. I life. While Sam Jethroe was eligible for other but to all America. This is the hope we can have a good debate and social security benefits, he had limited day upon which we are encouraged to pass this legislation this afternoon. It savings, and did not receive a pension and would appropriately celebrate his is important we do it today, but it is for his years in major league baseball. vast achievements and his substantial also important this legislation, involv- Sam Jethroe’s compelling story contributions. I thank the Senator ing flood victims, be passed today. This prompted me to contact Jerry from Illinois for her comments in that will accommodate our need in that re- Reinsdorf of the Chicago White Sox to respect. gard. see if anything could be done to help (The remarks of Mr. ASHCROFT per- I thank Senator COVERDELL and the Sam Jethroe and Negro League veter- taining to the introduction of S. 579 are majority leader for their cooperation. I ans suffering from similar cir- located in today’s RECORD under have no objection. cumstances. ‘‘Statements on Introduced Bills and Mr. LOTT. Mr. President, I will send Mr. Reinsdorf took the initiative and Joint Resolutions.’’) an amendment to the desk. I do want raised the issue of pension protection f to note, while this is going to the desk, with other owners for those people who we did work to accommodate the Sen- were excluded from major league base- UNANIMOUS-CONSENT ator and other Senators from the area ball prior to the breaking down of the AGREEMENT—S. 522 where there have been floods. We have barriers by Jackie Robinson. Mr. LOTT. Mr. President, I ask unan- made a change in the time flood insur- In 1997, the owners decided to provide imous consent that beginning imme- ance is required to be covered by—we pensions to the African-Americans who diately, at approximately 3:20 today, limited the times involved, so we could played solely in the Negro leagues be- the Senate proceed to the consider- have time to assess, maybe, the impact fore 1948, as well as those who played ation of Calendar No. 37, S. 522, regard- and whether or not to put it on a per- both in the Negro leagues and in the ing the unauthorized access of tax re- manent basis. But I want the RECORD S3180 CONGRESSIONAL RECORD — SENATE April 15, 1997 to show that we worked to make sure year, or both, together with the costs of (5) The table of sections for subchapter B that Senators’ concerns, which were prosecution. of chapter 76 of such Code is amended by in- certainly understandable, were accom- ‘‘(2) FEDERAL OFFICERS OR EMPLOYEES.—An serting ‘‘inspection or’’ before ‘‘disclosure’’ officer or employee of the United States who modated. in the item relating to section 7431. is convicted of any violation of subsection (6) Paragraph (2) of section 7431(g) of such Was there objection? (a) shall, in addition to any other punish- Code, as redesignated by subsection (b), is The PRESIDING OFFICER. No objec- ment, be dismissed from office or discharged amended by striking ‘‘any use’’ and inserting tion was heard to the majority leader’s from employment. ‘‘any inspection or use’’. request. ‘‘(c) DEFINITIONS.—For purposes of this sec- (e) EFFECTIVE DATE.—The amendments Mr. LOTT. I thank the Chair. tion, the terms ‘inspect’, ‘return’, and ‘re- made by this section shall apply to inspec- turn information’ have the respective mean- f tions and disclosures occurring on and after ings given such terms by section 6103(b).’’ the date of the enactment of this Act. (b) TECHNICAL AMENDMENTS.— TAXPAYER PRIVACY PROTECTION SEC. 4. (1) Paragraph (2) of section 7213(a) of such (a) IN GENERAL.—Section 1306(c)(1) of the ACT Code is amended by inserting ‘‘(5),’’ after National Flood Insurance Act of 1968 (42 The PRESIDING OFFICER. The ‘‘(m)(2), (4),’’. (2) The table of sections for part I of sub- U.S.C. 4013(c)(1)) is amended by striking ‘‘30’’ clerk will report. and inserting ‘‘15’’. The assistant legislative clerk read chapter A of chapter 75 of such Code is amended by inserting after the item relating (b) EFFECTIVE DATE.—The amendment as follows: to section 7213 the following new item: made by subsection (a) shall be construed to have taken effect on January 1, 1997, and A bill (S. 522) to amend the Internal Reve- ‘‘Sec. 7213A. Unauthorized inspection of re- shall expire June 30, 1997. nue Code of 1986 to impose civil and criminal turns or return information.’’ penalties for the unauthorized access of tax (c) EFFECTIVE DATE.—The amendment Mr. COVERDELL. Mr. President, as I returns and tax return information by Fed- made by this section shall apply to viola- understand the situation at the mo- eral employees and other persons, and for tions occurring on and after the date of the ment, we now have until 4:05, when the other purposes. enactment of this Act. unanimous consent called for the vote. The Senate proceeded to consider the SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED IN- Time would be equally divided? bill. SPECTION OF RETURNS AND RE- The PRESIDING OFFICER. The Sen- TURN INFORMATION; NOTIFICATION AMENDMENT NO. 45 OF UNLAWFUL INSPECTION OR DIS- ator from Georgia is correct. (Purpose: To amend the Internal Revenue CLOSURE. Mr. COVERDELL. Is that about 20 Code of 1986 to prevent the unauthorized ‘‘(a) CIVIL DAMAGES FOR UNAUTHORIZED IN- minutes on each side? inspection of tax returns or tax return in- SPECTION.—Subsection (a) of section 7431 of The PRESIDING OFFICER. There formation) the Internal Revenue Code of 1986 is amend- will be 171⁄2 minutes for each side. Mr. LOTT. Mr. President, I send an ed— Mr. COVERDELL. Mr. President, (1) by striking ‘‘DISCLOSURE’’ in the head- amendment to the desk. first, let me thank all the Senators The PRESIDING OFFICER. The ings for paragraphs (1) and (2) and inserting ‘‘INSPECTION OR DISCLOSURE’’, and who have played a significant role in clerk will report. (2) by striking ‘‘discloses’’ in paragraphs this legislation that we are about to The bill clerk read as follows: (1) and (2) and inserting ‘‘inspects or dis- vote on, certainly Senators GLENN of The Senator from Mississippi [Mr. LOTT], closes’’. Ohio and ROTH of Delaware and others, for Mr. COVERDELL, for himself, Mr. GLENN, (b) NOTIFICATION OF UNLAWFUL INSPECTION who have committed themselves to OR DISCLOSURE.—Section 7431 of such Code is Mr. ROTH, and Mr. MOYNIHAN proposes an ending the practice on the part of the amendment numbered 45. amended by redesignating subsections (e) and (f) as subsections (f) and (g), respec- IRS of snooping through the personal Mr. COVERDELL. Mr. President, I tively, and by inserting after subsection (d) tax files of American citizens. ask unanimous consent that reading of the following new subsection: Recently, the GAO issued its report the amendment be dispensed with. ‘‘(e) NOTIFICATION OF UNLAWFUL INSPECTION on IRS system security, on April 8, The PRESIDING OFFICER. Without AND DISCLOSURE.—If any person is criminally which was initiated at the request of objection, it is so ordered. charged by indictment or information with Senator GLENN. The General Account- The amendment is as follows: inspection or disclosure of a taxpayer’s re- ing Office concluded that the IRS has turn or return information in violation of— Strike all after the enacting clause and in- ‘‘(1) paragraph (1) or (2) of section 7213(a), failed to effectively deal with file sert the following: ‘‘(2) section 7213A(a), or snooping. It says: SECTION 1. SHORT TITLE. ‘‘(3) subparagraph (B) of section 1030(a)(2) Further, although the IRS has taken some This Act may be cited as the ‘‘Taxpayer of title 18, United States Code, action to detect browsing— Browsing Protection Act’’. the Secretary shall notify such taxpayer as That word means looking at the per- SEC. 2. PENALTY FOR UNAUTHORIZED INSPEC- soon as practicable of such inspection or dis- TION OF TAX RETURNS OR TAX RE- closure.’’ sonal tax files of American taxpayers. TURN INFORMATION. (c) NO DAMAGES FOR INSPECTION REQUESTED it is still not effectively addressing this area (a) IN GENERAL.—Part I of subchapter A of BY TAXPAYER.—Subsection (b) of section 7431 of continuing concern because (1) it does not Chapter 75 of the Internal Revenue Code of of such Code is amended to read as follows: know the full extent of browsing and (2) it is 1985 (relating to crimes, other offenses, and ‘‘(b) EXCEPTIONS.—No liability shall arise consistently addressing cases of browsing. forfeitures) is amended by adding after sec- under this section with respect to any in- The GAO found that the IRS still tion 7213 the following new section: spection or disclosure— does not know the full extent of file ‘‘(1) which results from a good faith, but ‘‘SEC. 7213A. UNAUTHORIZED INSPECTION OF RE- snooping, it says: TURNS OR RETURN INFORMATION. erroneous, interpretation of section 6103, or ‘‘(a) PROHIBITIONS.— ‘‘(2) which is requested by the taxpayer.’’ Because the IRS does not monitor the ac- (d) CONFORMING AMENDMENTS.— ‘‘(1) FEDERAL EMPLOYEES AND OTHER PER- tivities of all employees authorized to access (1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) SONS.—It shall be unlawful for— taxpayer data . . ., IRS has no assurance of section 7431 of such Code are each amend- ‘‘(A) any officer or employee of the United that employees are not—[snooping, they use ed by inserting ‘‘inspection or’’ before ‘‘dis- States, or the word browsing] taxpayer data, and no an- closure’’. ‘‘(B) any person described in section 6103(n) alytical basis on which to estimate the ex- (2) Clause (ii) of section 7431(c)(1)(B) of or an officer or employee of any such person, tent of the browsing problem or any damage such Code is amended by striking ‘‘willful being done. willfully to inspect, except as authorized in disclosure or a disclosure’’ and inserting this title, any return or return information. ‘‘willful inspection or disclosure or an in- The Internal Revenue Service stated ‘‘(2) STATE AND OTHER EMPLOYEES.—It shall spection or disclosure’’. a zero tolerance policy, with regard to be unlawful for any person (not described in (3) Subsection (f) of section 7431 of such file snooping. In 1993, Commissioner paragraph (1)) willfully to inspect, except as Code, as redesignated by subsection (b), is Margaret Richardson stated: authorized in this title, any return or return amended to read as follows: Any access of taxpayer information with information acquired by such person or an- ‘‘(f) DEFINITIONS.—For purposes of this sec- no legitimate business reason to do so is un- other person under provision of section 6103 tion, the terms ‘inspect’, ‘inspection’, ‘re- authorized and improper and will not be tol- referred to in section 7213(a)(2). turn’, and ‘return information’ have the re- erated. ‘‘(b) PENALTY.— spective meanings given such terms by sec- ‘‘(1) IN GENERAL.—Any violation of sub- tion 6103(b).’’ She said: section (a) shall be punishable upon convic- (4) The section heading for section 7431 of We will discipline those who abuse tax- tion by a fine in any amount not exceeding such Code is amended by inserting ‘‘INSPEC- payer trust up to and including removal or $1,000, or imprisonment of not more than 1 TION OR’’ before ‘‘DISCLOSURE’’. prosecution. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3181 Recent reports have documented up Taxpayers whose files have been 18 of the United States Code to make it to 800, last year alone, files were vio- accessed and are disclosed without a crime to use a computer to snoop in- lated, hundreds of employees have been proper authorization can seek civil ac- formation of any Federal department involved—and there have been 23 sus- tion; such civil action against the or agency, including the IRS. However, pensions. This statement that was United States, when the offender is a last year’s legislation did not apply to made to the American people has not Federal employee, and against the in- unauthorized inspection of paper docu- been fulfilled. That is why this legisla- dividual offender when not a Federal ments. tion is here today. employee. It requires taxpayer notifi- The bill we introduce today will cor- Since the IRS Commissioner made cation if we certify that their files rect that. It will require that tax re- this statement, the IRS has found 1,515 have been improperly accessed or dis- turn information be kept confidential additional confirmed cases of file closed and they would be notified when by the IRS and it’s employees. It will snooping. But, as I said, only 23 re- the offender is charged formally. ensure that IRS employees do not sulted in job termination and only 23 There are several Senators who want snoop confidential taxpayer informa- percent resulted in any disciplinary ac- to speak on this measure. I notice the tion. tion at all. Since 1991, there have been Senator from Ohio has arrived, the co- This bill will create a criminal pen- 3,345 confirmed cases of file snooping author of the proposal. alty in the Internal Revenue Code of up by IRS employees. I am going to yield to the Chairman to 1 year in prison and/or a fine of up to This is reprehensible activity. These of the Finance Committee, Senator $1,000, plus the cost of prosecution for are very, very personal records and are unauthorized willful browsing of con- ROTH, who has done outstanding work expected to be maintained in just that fidential taxpayer information. The on this proposal. way. I think the irony of this is that Mr. President, how much time do we bill will also require the abusing em- whenever you get at odds with IRS, ployee to be fired. have remaining? you get audited. Some would say au- The bill will allow civil damages for The PRESIDING OFFICER. The Sen- dited is a kind word. Some people feel snooping, and, if an IRS employee is in- ator from Georgia has 9 minutes re- they have been bludgeoned. But the dicted for unlawful inspection or dis- maining. IRS has been engaged in activity that closure of a taxpayer’s confidential in- Mr. COVERDELL. I yield 5 minutes is reprehensible and it is time for them formation, the bill will require that the to the chairman of the Finance Com- to be audited. IRS notify the taxpayer. This measure, coauthored by myself, mittee. Mr. President, this bill will provide The PRESIDING OFFICER. The Sen- Senator GLENN, Senator ROTH and oth- additional protections and some peace ers, is the beginning of an audit of IRS. ator from Delaware is recognized for 5 of mind for taxpayers. I want to thank It is symbolic that we pass this legisla- minutes. Senator COVERDELL and Senator GLENN tion today but it is important to note Mr. ROTH. Mr. President, students of for their efforts to protect taxpayers that the IRS Accountability Act comes history may remember Henry Stimson. by making it a crime for IRS employ- right behind this, the IRS Accountabil- He served America as Secretary of War ees to snoop taxpayer data. ity Act, which will deal not only with and Secretary of State in the first half Mr. MOYNIHAN. Mr. President, I rise file snooping, but with random audits, of the 20th century. While in office, as an original cosponsor of this legisla- balancing the ledger between the tax- Stimson tried to close down American tion to associate myself with the re- payer and this agency, and putting IRS counterintelligence sources. His rea- marks of the distinguished chairman of agents under the same laws as the rest son, you may recall, was that ‘‘gentle- the Committee on Finance. Unauthor- of American citizens. men do not read each other’s mail.’’ ized browsing of confidential tax infor- Recently, the Wall Street Journal, on Today, Mr. President, Henry Stimson mation undermines the confidence of April 3, 1997, printed an article about would not only be concerned about taxpayers, and such behavior ought to IRS activities. I will quote it here. Ac- counterintelligence operations but be subject to criminal penalties—which cording to a Federal jury here, this about the Internal Revenue Service as it will be under this bill. gentleman: well. Recent reports disclose that This legislation is a product of the . . . took unauthorized looks at returns of among the abuses and misuses of power bipartisan efforts of the Senator from a political opponent, [this is an IRS em- and access at the IRS is the ability of Ohio, Mr. GLENN, the Senator from ployee] a family adversary, and two associ- IRS employees to snoop in the files of Georgia, Mr. COVERDELL, the chairman ates in the white-supremacist movement unwitting taxpayers. of the Finance Committee, Senator whom, the government says, he suspected of While it’s not the mail that these ROTH, and the Senator from New York, being informers. The jury convicted [this snoops are reading, it is something just among others. I join my chairman in gentleman] in December 1995 on 13 counts of as sensitive. I don’t know of anyone urging its prompt enactment. wire and computer fraud, and he spent 6 The PRESIDING OFFICER. Who months of 1996 in jail. who wants his or her detailed financial yields time? Some IRS browsers apparently are information perused without reason. The millions of Americans who comply Mr. GLENN addressed the Chair. merely nosy. Geoffrey Coughlin, a The PRESIDING OFFICER. The Sen- with the law and file tax returns each Houston account analyst, last year ator from Ohio is recognized. pleaded guilty to looking at more than year, should be able to do so without Mr. GLENN. We each have 17 min- 150 unauthorized files, including those fear or hesitation that someone—for utes, is that correct? of friends and relatives, ex-girlfriends, purposes of curiosity, revenge, or even The PRESIDING OFFICER. Seven- politicians, and sports stars. a more avaricious motive—is snooping teen and one-half minutes. This is another case. Robert M. Pat- through their private information. Mr. GLENN. I yield myself such time terson, an IRS examiner in Memphis, If Government has one responsibility as I shall use. TN, scanned agency computers for tax to these men and women it certainly Mr. President, today is April 15. We records of people named Dolly Parton, must be to ensure their privacy. Cur- do not need to tell everybody that. It is Wynonna Judd, Karen Carpenter, Garth rent law does prohibit the disclosure of tax day for most Americans. On this Brooks, Elizabeth Taylor—well, it is confidential taxpayer information. day, honest hard-working citizens vol- pretty clear, to understand the drift However, the Internal Revenue Code untarily—voluntarily—share their here. does not specifically prohibit IRS em- most personal and sensitive financial This legislation, Coverdell-Glenn- ployees from unauthorized inspection information with their Government. Roth, makes it a Federal misdemeanor, or snooping of confidential taxpayer All Americans should have unbridled $1,000 fine, a year imprisonment under information. faith that their tax returns will remain the Federal sentencing guidelines. A I can think of no better day to call absolutely, unequivocally confidential convicted offender would pay costs of for change that today, April 15, when and zealously safeguarded. That is the prosecution and be dismissed from po- once again those millions of trusting hallmark of our taxpaying system, and sition where applicable. It covers Fed- Americans are rushing their returns off if this trust is breached, it shakes the eral employees and officers, and State to the IRS. whole foundation of our very Govern- and other employees who have access You may remember, Mr. President, ment, because it means our people are to tax records. that last year, Congress amended title losing faith in their Government. S3182 CONGRESSIONAL RECORD — SENATE April 15, 1997 That is why I am proud to be stand- primarily in the Southeast region during the 104th Congress and as S. 523 ing here today as one of the authors, where the investigation was con- for the 105th Congress. one of the sponsors, the Democratic centrated. The goal was simple: to make willful sponsor of legislation to outlaw what I My investigation found that some browsers subject to a criminal mis- have come to term as ‘‘computer IRS employees had been browsing demeanor penalty of up to $1,000 and a voyeurism.’’ That is the unauthorized through the financial records of family year in jail, and if any IRS employees inspection of your tax information by members, ex-spouses, coworkers, neigh- are convicted of such an offense, they those not entitled to see it, not the bors, friends and enemies, and celeb- would be fired immediately. Zero toler- people legitimately working on your rities in particular. ance should mean what it says—abso- tax account. They also had submitted fraudulent lutely, positively no tolerance. In 1993 and 1994, as chairman of the tax returns and then used their com- That legislation was incorporated Governmental Affairs Committee, I puter access to monitor the IRS review into this amendment and was the basis held hearings which first exposed this of those returns. for the bill as is currently being consid- insidious practice. We came across it They used the computer to issue ered in the House. almost by happenstance. fraudulent refunds to family and to We were not able to pass my bill in In 1990, I was pleased to work with friends and, in fact, one employee was the last Congress—we did come close to my distinguished colleague who just reported to have altered about 200 ac- trying to move it in the Senate—the spoke, Senator ROTH, then ranking counts and received kickbacks from in- issue has gotten more exposure now member of the committee, to pass into flated refund checks. due to two recent court cases. law the Chief Financial Officers Act. We, in Congress, at that time were Just last year, in Tennessee, a jury That measure required major Govern- absolutely stunned at these revelations acquitted a former IRS employee who ment agencies to do something for the and did not believe it could happen, but had been charged with 70 counts of im- first time which our own private busi- it did. But it did not light a candle to properly peeking at the tax returns of nesses take for granted. That is, pro- the firestorm across the country from celebrities such as Elizabeth Taylor, Dolly Parton, Wynonna Judd, Michael ducing annual auditable financial outraged—appropriately outraged— Jordan, Lucille Ball, Tom Cruise, statements so we know how much American taxpayers because we got a President Clinton, and Elvis Presley, money is being spent, where it is being wave of indignation. Taxpayers were shocked to know that the most per- just to name some of them. spent, and how it is being spent. More recently, just a few weeks ago, I figured that of all the Government sonal information they voluntarily, a Federal appeals court in Boston re- agencies which should be able to bal- and in good faith, provide to the Gov- versed the conviction of a former em- ance its books and come up with a good ernment could, in effect, become an ployee who had been found guilty of auditable statement, it would be the open book for others’ private enter- several counts of wire and computer tainment. IRS; it should be able to account for all fraud by improperly accessing the IRS Even worse was the pitifully low the revenue taken in, and the IRS taxpayer database. It is reported that number of employees fired for commit- would be the agency we would look at he had browsed through several files, ting these awful actions. It turned out first. In fact, before the CFO Act, we including those of a local politician that no criminal penalties existed for had no idea of the differences between who had beaten him in an election, and these kinds of browsing offenses. what revenues the IRS reported it was a woman he once had dated. The Gov- Mr. President, above the entrance to collecting and what was actually on ernment had alleged that this worker the main IRS building in DC are in- the books. Little did I know then how was a member of a white supremacist scribed the famous words uttered by wrong I really was. group and was collecting data on peo- Oliver Wendell Holmes: For 4 years running now, the IRS has ple he thought could be Government not been able to pass its own audit. Taxes are what we pay for a civilized soci- informers. The General Accounting Office, which ety. In both of these cases, though there we asked to go in and help audit the Unfortunately, what American citi- was unauthorized snooping, because IRS, still cannot even render an opin- zens have been subjected to in this case there was no subsequent disclosure to ion on the reliability of the IRS’s own is downright uncivilized behavior. third parties, no criminal penalties books due, in part, to missing records, At our hearings, the Commissioner of could be meted out. As the First U.S. unsubstantiated amounts, and unreli- Internal Revenue pledged to implement Circuit Court of Appeals held: able information. If we have that situa- a ‘‘zero tolerance’’ policy. Warnings of Unauthorized browsing of taxpayer files, tion in the IRS, you can imagine what possible prosecution for unauthorized although certainly inappropriate conduct, the situation is in some of the other use of the system began appearing cannot, without more, sustain a felony con- agencies of Government. whenever workers logged on to the viction. The IRS, I guess if we put it in our main taxpayer account database. Ex- Sounds ridiculous, but that is what own household terms, it would be plicit memos went out to all employees the court ruled. That was their inter- records in a shoe box under the bed. If warning them against such unauthor- pretation of the fine print of the law. I your return was being audited and you ized activities. doubt these kinds of decisions give could not come up with the documents, Finally, a new automated detection great comfort to honest law-abiding you would be called on the carpet for program, called EARL—electronic citizens. that. You would not get too much sym- audit research log—was installed on I should note that last year, Congress pathy. But all that is another story, the primary computer system to mon- passed the Economic Espionage Act of one of which the Governmental Affairs itor employee use and alert managers 1996. My good friend, Senator LEAHY, Committee has held numerous over- to possible misuse. played a major part in this effort. This sight hearings on. To evaluate the effectiveness of these law does provide title 18 criminal pen- But it was through these initial GAO actions, particularly the new computer alties for anyone intentionally CFO audits we first discovered the detection system, I asked GAO to con- accessing a computer without author- problems IRS was having in preventing duct a review. I also asked the inspec- ization, or exceeding authorized access, and detecting employees who get their tor general at the Department of and obtaining any information from kicks, apparently, out of surfing Treasury to perform an inspection. any Department or agency of the Unit- through other people’s tax returns, In the meantime, we worked with the ed States. This section may be helpful ones they are not supposed to be work- Treasury Department, the Department in prosecuting future cases, since it ing on or looking at. of Justice and the IRS to come up with would apply to tax information stored Our hearings revealed that in the a legislative solution for closing the in computers. years 1989 to 1994, more than 1,300 IRS legal loophole that let browsers off the This provision is not enough in our employees were investigated on sus- hook from criminal punishment. efforts to deter and punish browsing, picion of snooping through private tax- That effort culminated in the legisla- for, according to the IRS, it does not payer files. Those probes resulted in tion, the Taxpayer Browsing Protec- apply to the unauthorized access or in- disciplinary action against 420 workers, tion Act, which I introduced in 1995 spection of paper tax returns, return April 15, 1997 CONGRESSIONAL RECORD — SENATE S3183 information in other forms, such as tent of the browsing problem, the dam- pleased to have the support of col- documents or magnetic media, such as age being done by browsing, or the leagues. I commend the efforts of Sen- tapes. progress being made to deter browsing. ator COVERDELL in this area. He has That is why we, all taxpayers, need Finally, and this is something I am added very significant provisions to the protections originally espoused in having GAO look at further, we do not some of the original language. I think the bill and incorporated in this know to what extent the detection and we have an excellent bill. I want to amendment to specifically fill this gap control systems exist in other IRS congratulate him for taking the initia- and ensure unauthorized browsing or databases, besides ‘‘IDRS,’’ the pri- tive in bringing this up. inspection of any tax information in mary taxpayers’ account system The first of the sections that Senator any form is subject to criminal pen- looked at here. That may be open for COVERDELL brought would require that alties, and that is what this does. It further problems. a taxpayer be notified by the Secretary will also provide those criminal sanc- I was struck by the candor in the of the Treasury when a criminal indict- tions within the Internal Revenue Code IRS’s own internal report on the ment or charge is brought against an so that the confidentiality scheme gov- ‘‘EARL’’ detection system. That report IRS employee for unlawful inspection erning tax information and the related found its progress in management pro- of that taxpayer’s return or return in- law enforcement mechanisms are pre- grams to prevent and detect browsing formation. This is something I remem- served in the same section. ‘‘painfully slow,’’ as they determined. ber Senator Pryor, our former col- While I do feel the recent court deci- Quite distressing to me, the IRS inter- league, bringing up before the Commis- sions have spurred us on, I also believe nal report indicated that some employ- sioner at one of our earlier hearings. the new findings contained in a GAO ees felt IRS management does not ag- The second new section will provide report I released last weekend entitled gressively pursue browsing violations. taxpayers with a civil remedy in such ‘‘IRS Security Systems: Tax Process- Some workers, when confronted about unauthorized inspections as similarly ing Operations and Data Still at Risk their snooping activities, saw nothing provided under current law for unlaw- Due to Serious Weaknesses,’’ have wrong and believed it would be of no ful disclosures. This provision clarifies brought this problem to the forefront. consequence to them even if they were that civil liability will not be a remedy This report is the evaluation I asked caught. Hard to believe. in cases where the inspection is re- GAO to undertake in 1994 in response Mr. President, we have to fix that. quested by the taxpayer or in any in- to the actions implemented by the IRS When you have over 1,500 investiga- stance which results from an acciden- to prevent browsing and enforce its tions of browsing cases since my last tal review of a return or return infor- zero tolerance policy. It was released hearings 2 years ago, and only 23 work- mation. by GAO earlier this year; however, be- ers fired, something just is not right. I want to be clear about that last cause some of the specific details could That does not sound like zero tolerance point in reference to the legislation at potentially jeopardize IRS security, to me. hand. I do not want to compromise IRS the report was designated for ‘‘Limited I have a more detailed summary of employees’ ability to do what they are Official Use’’ with restricted access. the major findings contained in both supposed to be doing, especially in the I have been involved in this impor- the GAO and internal IRS report which areas of return processing, examina- tant issue for a long time and because I ask unanimous consent to have print- tion, and inspection. Under this bill, I believe the public has a right to ed at the end of my statement. IRS employees will continue to be able know, I requested that GAO issue a re- The PRESIDING OFFICER. Without to inspect tax returns or return infor- dacted version of the report suitable objection, it is so ordered. mation as authorized by the Internal for public release. I thank GAO for (See exhibit 1.) Revenue Code or tax administration their hard work in this matter and also Mr. GLENN. I also point out the ef- purposes without penalties. Only inten- the IRS for their cooperation in mak- fectiveness of controls used to safe- tional, willful, unauthorized inspec- ing this possible. guard IRS systems, facilities, and tax- tions will be subject to prosecution, The findings of GAO’s report are dis- payer data. GAO found serious weak- where you knew or should have known turbing. Even more important, their nesses in these efforts, especially in the it was wrong. conclusions are reaffirmed by the IRS areas of physical and logical security. in a comprehensive internal report of For example, the facilities visited by As the report by the House Ways and their own compiled last fall. GAO could not account for over 6,400 Means Committee states: ‘‘Accidental In addition, I should add, they are units of magnetic storage media such or inadvertent inspection that may buttressed to some extent by a review as tapes and cartridges which might occur—such as, for example, by making I asked the Treasury Inspector General contain taxpayer data. Now, IRS re- an error in typing in a TIN [Taxpayer to conduct on IRS computer security sponded last week they have located Identification Number]—would not be controls and the Service’s progress in 5,700 of the units, but that means that subject to damages because it would addressing the shortcomings. That re- 700 are still unaccounted for. That begs not meet this standard.’’ port, too, is ‘‘Limited Official Use.’’ the question: Where are they? Are they These are good provisions and I wel- But I can tell you, while there have deemed lost? And can they be misused? come their inclusion. I also want to been some positive actions taken to Each of the units can store tax infor- thank my distinguished colleague, Sen- proactively confront this problem, we mation on thousands of Americans. We ator ROTH, who sat with us as ranking are nowhere near any satisfactory reso- need to know where they are. More- member of the Governmental Affairs lution. over, GAO only visited selected facili- Committee during our hearings last The bottom line is although the IRS ties. I just wonder if the IRS is able to year during consideration of the Tax- efforts in this area are well-inten- track all of its inventory at the other payer Bill of Rights 2, pledged his com- tioned, unfortunately they have come major sites not visited by GAO. We mitment and support for bringing this too late and fall far short of the com- would like to know what the results legislation to the floor. mitment and determination sorely are there, too. Let me say a word about the men and needed to tackle this problem head on. GAO also found that printouts con- women who work at the IRS. The vast The findings of GAO’s report are dis- taining taxpayer data were left unpro- majority of the people who work at the turbing. Just as important, their con- tected and unattended in open areas of IRS are just as fine a people as there clusions are affirmed by the IRS in a two facilities, where they could be are in this room or anywhere else in comprehensive internal report of their compromised. I do not want to say this country. They are dedicated. They own compiled last fall. much more on this portion of the re- are trying to do a good job. I do not GAO found that serious weaknesses port than I have already said, except want to unduly scare anyone that this in IRS’s information security makes that these matters and the others re- is commonplace or that their privacy taxpayer data vulnerable to authorized ferred to by GAO must be dealt with has been violated. You have a few bad use, to modification, or to destruction. swiftly and effectively. apples over there, but I am sure most According to GAO, the IRS also has no I am glad to have brought this mat- of the people over there want to turn in effective means for measuring the ex- ter to the Senate’s attention and am themselves because most of the people S3184 CONGRESSIONAL RECORD — SENATE April 15, 1997 of the IRS, including the Commis- ciency of our abuse detection research ef- Temporary employees who attempted to sioner, are proud of the work they are forts, or the level of functional management access their own accounts were given letters doing. follow through and discipline. This impedes of reprimand, although historically, IRS ter- minated temporary employees for this type The Commissioner has done a good our ability to respond to critics and congres- sional oversight inquiries about our abuse of infraction. job in many areas. I have been com- detection efforts.’’ One employee who attempted to access his plimentary of her. Her plan to deal own account was given a written warning, IRS PROGRESS IN REDUCING AND DISCIPLINING while other employees in similar situations, with the IRS is a good one. The way of BROWSING CASES IS UNCLEAR from the same division, were not counseled getting it downhill to the centers and IRS’ management information systems do the different regions and having it done at all. not provide sufficient information to de- The IRS’ EARL internal report also dem- there did not occur the way it should scribe known browsing incidents precisely or onstrated widespread deviations on how have, with what I thought was a very to evaluate their severity consistently. browsing penalties were imposed. That re- good plan. I do not want to condemn The systems used by the IRS cannot report port showed that for FY’95, for example, the all the IRS over there. Normally, the on the total number of unauthorized brows- percentage of browsing cases resulting in people look down on the tax man every ing incidents. Nor do they contain sufficient employee counseling ranged from a low of 0 April 15. We know that. It is not popu- information to determine, for each case in- percent at one facility to 77 percent at an- vestigated, how many taxpayer accounts lar to pay taxes. The people working other. Similarly, the report showed that the were inappropriately accessed or how many percentage of cases resulting in removal there are doing a great service for this times each account was accessed. ranged from 0 percent at one facility to 7 country, and we want to weed out Consequently, for known incidents of percent at another. For punishments other those few bad apples that may be over browsing, IRS cannot efficiently determine than counseling or removal (e.g., suspen- there. how many and how often taxpayers’ ac- sion), the range was between 10 percent and I have visited some of the sites and I counts were inappropriately accessed. With- 86 percent. know what some of the IRS employees out such information, IRS cannot measure More incredible to me—and quite distress- are up against. It is not an easy job. whether it is making progress from year to ing—is the extremely low percentage of em- year in reducing browsing. ployees caught browsing each year who are They are, by and large, a dedicated Internal IRS figures show a fluctuation in fired for their offense, according to the IRS’ bunch, committed to their job and la- the number of browsing cases closed in the own figures. Would you believe that, for all boring under difficult conditions with last few years: 521 cases in FY’91; 787 in of the browsing cases detected and closed very outmoded systems. Unfortu- FY’92; 522 in FY’93; 646 in FY’94, and; 869 in each year, the highest number of employees nately, in this day and age, they must FY’95. fired in one year has been 12. Between FY’91– also fear for their own personal safety. More distressing, however, is the fact that FY’95, only 43 employees were fired after However, even just a single incidence in spite of the Commissioner’s announced browsing investigations. That is generally 1% of the total number of cases brought each of this behavior is one too many and ‘‘Zero Tolerance’’ policy, the percentages of cases resulting in discipline has remained year. Even if you include the category of res- cannot be tolerated. constant from year to year. Figures for ignation and retirement, the highest per- The IRS has a moral and legal obliga- FY’91–FY’95 show that the percentage of centage of employees terminated through tion to uphold when Americans provide browsing cases resulting in the IRS’ three separation or resignation/retirement in any the Government with their most per- most severe categories of penalties (discipli- one year has been 6%. sonal and private information. The IRS nary action, separation, resignation/retire- PUNISHMENTS ASSESSED FOR BROWSING NOT must have the complete trust and con- ment) has ranged between 23–32 percent, with CONSISTENTLY PUBLICIZED TO DETER VIOLA- fidence of taxpayers. That means we an average of 29 percent. TIONS cannot tolerate any of this browsing or The IRS’ internal report also confirms GAO found that IRS facilities did not con- this: ‘‘A review of disciplinary actions for mishandling of accounts. The Amer- sistently publicize the penalties assessed in IDRS abuse over the last four years showed browsing cases to deter such behavior. For ican people expect and demand nothing that only 25% of the cases result in some dis- example, one facility never reported discipli- less. cipline.’’ nary actions. By contrast, another facility I thank you, and I reserve the bal- That report also indicated that almost used its monthly newsletter to report dis- ance of my time. one-third of the cases detected were situa- ciplinary actions for browsing, including cit- tions where an employee accessed their own MAJOR FINDINGS FROM GAO REPORT, SUPPLE- ing a management official who had accessed account, which, according to the report, is MENTED WITH EXCERPTS FROM THE IRS’ a relative’s account. ‘‘generally attributable to trainee error.’’ By inconsistently and incompletely report- EARL EXECUTIVE STEERING COMMITTEE RE- ing on penalties assessed for employee PORT INCIDENTS OF BROWSING ARE REVIEWED AND REFERRED INCONSISTENTLY browsing, IRS is missing an opportunity to THE IRS SYSTEM DESIGNED TO DETECT more effectively deter such action. BROWSING (EARL) IS LIMITED IRS processing facilities do not consist- ently review and refer potential browsing Mr. COVERDELL. Mr. President, The main monitoring system, EARL, is cases. They had different policies and proce- how much time remains? supposed to be able to detect patterns of po- dures for identifying potential violations and The PRESIDING OFFICER. The Sen- tential abuse by IRS employees in the IRS’ referring them to the appropriate unit with- ator from Georgia has 4 minutes and 23 primary database (IDRS). GAO found that in IRS for investigation and action. Further, the EARL system is ineffective because it seconds, plus the 5 minutes. IRS management had not developed proce- can’t distinguish between legitimate work Mr. COVERDELL. Mr. President, dures to assure that potential browsing cases activity and illegal browsing. Only through first let me thank my good colleague were consistently reviewed and referred to time-consuming manual reviews, which, ac- from Ohio, Senator GLENN, for the ex- management officials throughout the agen- cording to internal IRS documents can some- tended effort and work, some of which cy. times take up to 40 hours, can actual in- The IRS internal report identifies this as a he outlined in his statement, over a pe- stances, of snooping be positively identified. problem area, too: riod of years to get at this problem. I Moreover, EARL only monitors the main ‘‘Although the EARL system has been appreciate his kind remarks in regard taxpayer database. There are several other under development since 1993, the service has to my efforts. systems used by employees to create, access, not yet maximized its ability to identify Mr. President, the fact that we have or modify data which, apparently, go unsu- IDRS browsing. The process is labor inten- pervised. This is something I have asked the come to a situation where it has been sive and there is little accountability for ef- GAO to look into further. certified by the General Accounting Of- fectively using EARL and handling the cases According to GAO, ‘‘because IRS does not fice and others that employees of the it identifies. There is little consistency in monitor the activities of all employees au- Internal Revenue Service have been re- the detection procedures from one center to thorized to access taxpayer data . . . IRS viewing personal records in an unau- the next or in how discipline is applied on has no assurance that these employees are abuse cases throughout the nation.’’ thorized way must be stopped. The pur- not browsing taxpayer data and no analyt- pose of this legislation is to do just PENALTIES FOR BROWSING ARE INCONSISTENT ical basis on which to estimate the extent of that. the browsing problem or any damage being ACROSS IRS Senator GLENN also complimented done.’’ Despite IRS policy to ensure that browsing the many loyal employees who work at In fact, according, to the IRS’ EARL re- penalties are handled consistently across the port: agency, it appears that there are disparities the Internal Revenue Service, and that ‘‘The current system of reports does not in how similar cases are decided among dif- should be done. We would be remiss not provide accurate and meaningful data about ferent offices, or even sometimes within the to do so. what the abuse detection programs are pro- same office. Examples of inconsistent dis- Mr. President, there is a reason that ducing, the quality of the outputs, the effi- cipline included: half the American people are offended April 15, 1997 CONGRESSIONAL RECORD — SENATE S3185 by this agency. The belligerence, the addresses today. Our legislation will something to do and something to dis- intimidation is well-documented, time get the snoops out of the IRS. Our leg- tract from the fact that it is not doing and time again, and it is time that islation says if you are going to snoop, what it is supposed to do today. aura of having a standard or status you are going to jail. It is that simple. Along with all Americans we have to that is higher than the taxpayer them- If you are going to snoop, you are file our income taxes today, April 15. selves come to an end. going to pay also. You are also going to The Republican leadership of the House As I said, on this Senator’s part, this lose your job. I think browsing angers and Senate, however, is supposed to legislation is but a beginning of the me just like being violated personally, pass a budget by April 15. I suspect kind of accountability that I think almost. Everybody has to feel that way that there are tens of millions of Amer- needs to be put in place with regard to because you trust your Government. icans who are getting their taxes filed the relationship between the Internal We say we are giving this information by today. When they go down to file Revenue Service and the American willingly, honestly, and then they are their taxes, having stayed up late and people. misusing it. They are browsing, and worked it out, they should ask the Somebody said today, in all the flur- the information may not remain con- leadership in the House and Senate if ry of meetings, trying to resolve the fidential. We don’t know what is going that Republican leadership has done differences here, that in no case should to happen to it. The American people what the law requires them to do—to the average American citizen be fright- deserve better than that. have a budget by April 15. Guess what? ened by an arm of their Government in I deplore those who are guilty of en- Has one been passed? No. Has one even the day-to-day function and relation- gaging in IRS-bashing. And it always been debated? No. There is a law that ship between people and their Govern- seems to build to a crescendo on April says that, by April 15, we must pass it, ment. The people should not be intimi- 15. I repeat that most IRS employees but today will come and go and the dated. They should not be fearful of are just as honest as anybody in this Senate will miss its statutory deadline. this relationship. room or anybody in America. They are Now, I ask my friends throughout I will leave the individual unnamed, dedicated workers. They want to clean this country, Republican, Democrat, but not long ago I was in a commercial out this snooping and they want to see and Independent, if you don’t follow establishment and I was visiting with this problem go away just like all the the law that says you have to file and probably a 70-year-old-plus woman in rest of us do, so that more Americans pay your taxes by April 15, what is Atlanta. I was completing the trans- don’t lose faith in our voluntary tax going to happen? Aha, you might sud- action, and she said she wondered if she system. denly become a guest of the State, in a might be in touch with me. I said, ‘‘Of Mr. President, I ask unanimous con- very secure place—bars on the win- course.’’ I was about to leave, so I was sent to add JOHN KERRY of Massachu- dows, bars on the doors. trying to give her my card. I said, setts and Senator KOHL of Wisconsin to What happens to the leadership of ‘‘Here is somebody you can call to give the bill as cosponsors. the House and the Senate if they don’t me the details,’’ and she leaned over The PRESIDING OFFICER. Without obey the law and have a budget passed between her computer and her cash objection, it is so ordered. by April 15? They will be on the floor in register and motioned me to come over Mr. LEAHY. Mr. President, last Con- the House and the Senate with a dis- and began whispering to me about a gress we passed legislation I had writ- traction. problem that involved her and the ten to provide criminal penalties for So while I support the extension of IRS—a 70-year-old woman, a hard unauthorized snooping in computers. I the law we introduced in 1995 and worker for years and years. She was understand that the Republican leader- passed last year in order to cover the scared to death. She was whispering to ship is bringing up an extension of that paper records of the IRS, I remain con- me because she was frightened. That legislation today. I am happy to see cerned that the Senate is not making has left a mark on me. It has happened them bring it up, but I also point out the progress that we need to make on to me more than once. to the American people that we have the Federal budget, on the chemical All too often the citizens that con- already passed some very strong legis- weapons treaty, and on confirming tact me with regard to problems with lation on this. Federal judges. We have confirmed two the IRS are of very modest means and In fact, in terms of privacy protec- Federal judges in 4 months. There are they cannot defend themselves. They tion legislation, we could have passed 100 vacancies. Talk about zero popu- cannot protect themselves. They are additional, strong legislation last year lation growth. At this rate, at the end frightened to death. to provide protection and criminal of the Congress there will 150 vacan- I hope what we jointly, in this bipar- sanctions against misuse of personal cies. tisan effort, are doing is but, as I said, medical information, except that the Then there’s campaign finance re- a first step. We are ending a reprehen- Republican leadership objected to it. form. Remember campaign finance re- sible practice that has occurred on the That medical records confidentiality form? Has anybody heard of it since part of some at the IRS, but there is legislation was we put together in a bi- the handshake in New Hampshire. Ha, much work to be done as we begin a partisan fashion with Senator BENNETT ha and ho, ho. The Republican leader- congressional audit of the Internal of Utah, myself, and others, based on ship could bring up campaign finance Revenue Service. work a number of us have been doing reform this afternoon if they wanted I am prepared to yield back my time for years, but we were blocked when it to. You are not going to see it. and relinquish the floor for final com- was going to pass last year. I hope that I understand that the House plans to ments from the Senator from Ohio. the Republican leadership willingness use the Constitution as a political prop The PRESIDING OFFICER. The Sen- to extend protections against govern- again today. I guess I should at least be ator from Ohio is recognized. ment snooping into private financial grateful that the Senate has avoided Mr. GLENN. I thank my distin- records will signal a new attitude and that temptation—for today. guished colleague from Georgia. I know willingness to address the crisis that is All I suggest, Mr. President, is that we are approaching the time when we looming with respect to the confiden- the American people are required to are supposed to have a vote. tiality of health care information, as follow the law and file their taxes The American people have to have well. today. The U.S. Senate and the House the utmost confidentiality in the IRS. I think we have to ask, why is it sud- of Representatives are required to have We have to have somebody collect the denly so important to take up this IRS a budget by today—and we are waiting. taxes that does everybody in this coun- bill today without consideration by the Privacy is a precious right of every try good, that builds roads, the air- Senate Judiciary Committee or any American. When our own Government ways, does everything, so those who Senate Committee. Aha, what is today? workers abuse their access to personal say we are mad at the IRS and we will April 15. This is, as more and more information and compromise our pri- do away with it, if they will just think things around here are, a staged event vacy, it is doubly wrong. what they are saying, what we need is for partisan political purposes. This is While I was happy that we are taking to have zero tolerance for browsers and tax day, to be sure. But, unfortunately, this matter up today and to support it, misuse of the system. That is what this the Republican majority is looking for I comment briefly on the manner in S3186 CONGRESSIONAL RECORD — SENATE April 15, 1997 which this matter is proceeding. Unfor- about the privacy of such sensitive informa- payments, highway funding, national tunately, the Senate of the United tion. To that end, included as part of [the defense, a safety net in bad times, States is not doing the work that needs NII Protection Act] is an amendment to 18 clean air and water, the National Park to be done to serve the interests of the U.S.C. § 1030(a)(2) that would make it clearly illegal for a government employee to inten- System, and so on. These are impor- American people. We are not confirm- tionally exceed authorized access to a gov- tant to the country and the Govern- ing the Federal judges that we all need, ernment computer and obtain information. ment should provide them. we are not making progress on bal- I have long been concerned with So most folks are willing to pay their ancing the budget, we are not consider- maintaining the privacy of our per- fair share of taxes. Nobody likes it, but ing the chemical weapons treaty, and sonal information. Doing so in this age most of us do it regularly and honestly. we are not considering campaign fi- of computer networks is not always But we do expect the Government to nance reform legislation. easy but is increasingly important. keep it fair, make it as simple as pos- I commend Senator GLENN for his ef- By passing the NII Protection Act we sible, and keep it private. forts in following up on his longstand- have already closed a loophole that had And we’ve recently found that in ing efforts to monitor abuse of access existed in our laws. That loophole re- their zeal to catch the few people who to Internal Revenue returns and infor- sulted in the dismissal of criminal don’t pay their taxes, some tax collec- mation by Government employees. tors forget the most fundamental truth When we file our tax returns today charges earlier this year against an about our tax system. Citizens have and the American people reveal to the IRS employee who went snooping rights that must be protected. Government intimate details about through the tax returns of individuals One of the first bills I introduced their personal finances, we rightfully involved in a Presidential campaign, a when I first came to the Senate was a expect that the Internal Revenue Serv- prosecutor who was investigating a Taxpayers’ Bill of Rights, to protect ice and its employees will treat that family member, a police officer and information with confidentiality, as various social acquaintances. He made taxpayers in disputes with the Internal the law has long contemplated. Reports these unauthorized searches in 1992, be- Revenue Service. And I noted: that IRS employees are snooping fore our new law went into effect. He Oliver Wendell Holmes reasoned that through these files to satisfy their own was able to retrieve on his computer ‘‘Taxes are what we pay for a civilized soci- ety.’’ However, Justice Holmes did not con- voyeuristic urges are unacceptable. Un- screen all the taxpayer information stored in the IRS main data base in sider additional burdens imposed on tax- authorized browsing by IRS employees payers—added costs and delays that result has been a longstanding problem, ac- Martinsburg, WV. Since the IRS em- ployee did not disclose the information from inefficiencies and inconsistencies in the cording to a recent GAO report, and administration of tax law. one that has concerned a number of us to anyone else and did not use it for ne- farious purposes, the wire and com- That was back in 1979. And it took a for years. while, but in 1988 we finally passed a It is one of the principal cir- puter fraud charges against him had to be dismissed. The point is that with comprehensive Taxpayer Bill of Rights. cumstances that motivated me to in- That went a long ways toward defining clude within legislation that I au- President Clinton having signed the NII Protection Act into law last Octo- taxpayer rights and gave some protec- thored last Congress criminal sanc- tion against arbitrary actions by the tions against unauthorized snooping. ber 11, the law has been corrected to make such unauthorized snooping IRS. Back in June 1995, I introduced, with This law made IRS give at least 30 Senators KYL and GRASSLEY, legisla- through individual tax records by days’ notice before levying on a tax- tion making snooping through use of means of computers a Federal crime. payers’ property, so that he or she Government computers a crime. We ob- Employees of the IRS and other Gov- would have time to file an appeal. It tained the views of the Attorney Gen- ernment agencies and departments are exempted more kinds of property from eral, the FBI Director, the Secret Serv- forewarned that under the law and aug- IRS levies, and raised the wage total ice and others. The bill was considered mented by the NII Protection Act last exempt from collection. It allowed tax- and reported twice by the Senate Judi- year, unauthorized browsing through payers to collect costs and attorney’s ciary Committee and passed by the computerized tax filings is criminal fees from the Government if the IRS Senate as part of a legislative package and will be prosecuted. acted without substantial justification. back in October 1996. The National In- I am hopeful that the National Infor- formation Infrastructure Protection mation Infrastructure Protection Act And it let taxpayers sue the Govern- Act, title II of Public Law 104–294, and its privacy protections will help ment for damages if IRS employees made it a Federal crime for Govern- deter illegal browsing by IRS employ- acted recklessly in collecting taxes or ment employees to misuse their com- ees and help restore the confidence of intentionally disregarded any provision puter access to obtain private informa- American taxpayers that the private fi- of the Internal Revenue Code. tion in Government files. Under the nancial information we are obliged to This helped make taxation a little law, Government employees who abuse give the Government will remain pri- more fair and accountable. But it their computer privileges to snoop vate. didn’t solve all the problems. Last through personal information about Our job is not done, however. We year, we did some more with the Tax- Americans, including tax information, need to remain vigilant to protect the payer Bill of Rights II. This created an are subject to criminal penalties. privacy of our intimate personal infor- Office of Taxpayer Advocate within the Part of our purpose in passing that mation in this era of computer net- IRS to help taxpayers resolve their law was to stop the snooping by IRS works. I am particularly concerned problems with the IRS. It gave tax- employees of private taxpayer tax re- that we are doing a woefully inad- payers more power to take the IRS to turns. In 1994, at least 1,300 IRS em- equate job at protecting the privacy of court in order to abate interest and ployees were internally investigated our medical information. For several eased the burden of proof for collecting for using Government computers to years I have worked on legislation to attorney’s fees and costs when you browse through the tax returns of provide privacy protection to our challenge an IRS decision and win. And friends, relatives, and neighbors. At a health care information. I hope that it raised the damages a taxpayer can 1995 oversight hearing of the Depart- this year we will finally enact this collect in the event an IRS agent reck- ment of Justice, I asked the Attorney much-needed and overdue legislation. lessly or intentionally disregards the General whether a criminal statute If we do not, we risk having the com- Internal Revenue Code. making it clear that such snooping is puterized transmissions of health care But as important as these laws are, illegal would send a clear signal that information required by the so-called we need to do a lot more to give tax- we want our private information pro- administrative simplification provi- payers confidence in the system and vided to the Government to remain pri- sions of the law passed last year, with- the people who work in it. vate? Her response focused on the need out the privacy protection that the Today we’re going to go a little fur- for passage of the NII Protection Act. American people expect and deserve. ther. Every once in a while we find Attorney General Reno stated: Mr. BAUCUS. Mr. President, the pub- that some IRS employees are snooping Enactment of a new statute covering such lic expects some essential services around in tax returns that ought to be situations is advisable to send a clear signal from the Government. Social security private. That’s happened twice this April 15, 1997 CONGRESSIONAL RECORD — SENATE S3187 year—first, with the revelation that It became clear in all of the wit- big a problem it has on its hands. ‘‘I don’t President Nixon tried to pressure his nesses’ testimonies this morning that know what kind of new math they are using, IRS Administrator to look through po- currently it is not necessarily illegal but that doesn’t sound like zero tolerance to for IRS employees to browse through me,’’ Glenn said at a news conference, where litical opponents’ returns, and now he released excerpts of IRS documents and a when we hear that some IRS employees taxpayer files. The law, as it exists, General Accounting Office (GAO) report. have browsed in returns for fun. Our makes it difficult for the IRS to take Government employees face criminal pen- bill today will impose criminal pen- effective action against those employ- alties for misuse of computer databases, but alties on anyone who does it. And we’ll ees who are caught browsing taxpayer loopholes have thwarted prosecution of some make sure the taxpayer whose records files. IRS employees who snooped in files but did have been violated in this way can be Those IRS employees who do access not disclose the information to others. Glenn the computerized or paper records of and other lawmakers, including House Ways notified so that they too can take ac- and Means Committee Chairman Bill Archer tion. Without this high level of protec- celebrities, friends, or enemies most (R–Tex.), have proposed legislation this year tion of taxpayer privacy, we undermine often do so just for the fun of it. How- to tighten the laws. our ability to make a system of vol- ever, let me tell you—taxpayers do not David A. Mader, the IRS chief for manage- untary taxation work. find this activity very funny. It is an ment, said ‘‘browsing is not widespread’’ at Once this bill is signed into law, as I invasion of privacy, and unauthorized the 102,000-employee agency, but stressed am confident that it will be, we must browsing should be punishable with that curious employees must understand civil and criminal penalties. During that even one unauthorized peek in tax files not rest on our laurels. There is still undercuts the IRS goal of fair and confiden- much work to be done to fully protect this morning’s hearing, Treasury offi- tial tax administration. The IRS supports ef- the rights of taxpayers. The adminis- cials kept referring to taxpayers as forts to tighten laws, he said. tration proposes simplification and Bill ‘‘customers’’. Well, I would like to clar- ‘‘It is challenging to change the behavior of Rights initiatives that we must re- ify that in my State Coloradans do not of an organization this size,’’ Mader said. view very soon. The Commission on the consider themselves customers. If any- Not every employee deserves to be fired Restructuring of the Internal Revenue thing, they consider themselves vic- when accused of browsing, he said, but ‘‘we ought to start with the assumption we’re Service will also issue a bipartisan re- tims. Unfortunately, taxpayers have going to fire them and then look at the cir- port that will help us address a broad become victims of browsing, and they cumstances. range of problems with the IRS. currently have no assurances that The disclosure of additional IRS employee That should be a top priority. We browsers will be held accountable for snooping comes at a time when privacy advo- need a tax system that brings in the their actions. cates are increasingly worried about the gov- revenue to pay for essential services. With that, Mr. President, I ask unan- ernment’s growing dependence on computers One that balances the budget. But also imous consent to submit a couple of and information technology. The GAO, for items for the record to be printed im- example, has issued more than 30 reports in one that is fair and reasonable, and un- the last four years describing how govern- derstands that most of us are good peo- mediately following my statement. ment systems are vulnerable to ‘‘hackers’’ ple who obey the law and shouldn’t be First, I have an article from the Wash- and even federal employees who want to picked on all the time. It’s that simple. ington Post. In addition, I would also change data, commit fraud or disrupt an Mr. CAMPBELL. Mr. President, I am like to submit a relevant section of the agency’s operations. pleased to be a cosponsor of S. 522, leg- Electronic Audit Research Log’s Exec- The GAO, in reviewing IRS computer secu- islation which would allow civil and utive Steering Committee Report on rity at Glenn’s request, found that five IRS centers could not account for about 6,400 criminal penalties to be imposed for taxpayer privacy. computer tapes and cartridges that might the unauthorized access of tax returns The PRESIDING OFFICER. Without contain taxpayer data. Since the GAO audit, and return information by employees objection, it is so ordered. however, 5,700 of the tapes and cartridges of the Internal Revenue Service or (See exhibit 1.) have been found, Mader said. He said the other Federal employees. It is alto- Mr. CAMPBELL. Finally, I would problem involved inventory controls and gether appropriate that this issue simply like to reiterate my support for that no tapes were lost. should come before both the House and S. 522. I would like to be able to tell my In two centers, computer printouts con- constituents that Congress recognized taining taxpayer data were left unprotected Senate on April 15, and I applaud the and unattended in open areas, the GAO said. efforts of my colleagues, Senators the need to safeguard their personal GAO found some computer problems were COVERDELL and GLENN, to work to- tax records and took action accord- so sensitive that the congressional watchdog gether on this bipartisan piece of legis- ingly by passing this legislation and agency feared public disclosure could jeop- lation. sending it on to the President for sig- ardize IRS security. As a result, Glenn re- Abuse by employees of the IRS has nature. ceived a confidential report on those prob- been of concern to Members of Con- EXHIBIT 1 lems and the GAO-prepared report released yesterday leaves out some matters and does [From the Washington Post, Apr. 9, 1997] gress for many years. Over the years not identify the tax processing centers with numerous Coloradans have written me IRS AUDIT REVEALS MORE TAX BROWSING lax security practices. But the breaches of to express their concerns with this (By Stephen Barr) taxpayer privacy led congressional inves- type of abuse as well. And with the re- The Internal Revenue Service fired 23 em- tigators to conclude that IRS computer sys- cent release of the report by the Gen- ployees, disciplined 349 and counseled 472 tems operate with ‘‘serious weaknesses’’ that eral Accounting Office detailing its other workers after agency audits found that place tax returns and tax files ‘‘at risk to findings on security problems at the government computers were still being used both internal and external threats,’’ GAO to browse through the tax records of friends, said. IRS, in addition to reports on browsing relatives and celebrities, an IRS document The IRS handles more than 200 million tax- by IRS employees through private tax- released yesterday showed. payer returns each year at 10 primary cen- payer files, this issue has once again The document, covering fiscal 1994 and ters. After the returns are processed, the come to the forefront. 1995, listed 1,515 cases where employees were data are electronically transmitted to a This morning, as chairman of the Ap- accused of misusing computers. After ac- central computer site, where master files on propriations Subcommittee on Treas- counting for the firings, the disciplinary ac- each taxpayer are maintained and updated. ury and General Government, I held a tion and the counseling, 33 percent of the To avoid compromising taxpayer informa- tion, the IRS developed a software program hearing to receive testimony on the cases were closed without any action and the remaining 12 percent took retirement or to monitor the electronic trail left by em- issue of browsing. For the record, I were cleared. ployees as they call up tax returns and files would like to state the witnesses in- Yesterday’s disclosure, made by Sen. John on their computer screens. The program, the cluded: Senator JOHN GLENN; Larry Glenn (D–Ohio), marked the second time Electronic Audit Research Log (EARL), also Summers, Deputy Secretary of the U.S. that IRS employees have been faulted for signals managers when an employee’s work Department of the Treasury; Dr. Rona peeking at tax records. A probe in 1993 and pattern or use of command codes appears at B. Stillman, Chief Scientist for Com- 1994 turned up more than 1,300 employees odds with the tasks assigned. The audit trail puters and Telecommunications with suspected of using government computers to covered about 58,000 employees who use the IRS’s main computer system. But the GAO the GAO; Margaret Milner Richardson, browse through tax files. At the time, the IRS promised ‘‘zero tolerance’’ for such found EARL does not monitor IRS employ- Commissioner of the IRS; and Valerie snooping. ees using secondary computer systems and Lau, inspector general of the U.S. De- But the new data indicate the problem has does not effectively distinguish between partment of the Treasury. continued and the agency does not know how browsing and legitimate work. S3188 CONGRESSIONAL RECORD — SENATE April 15, 1997 The IRS internal audit, in a section on dis- He cited a federal appeals court decision in Congress expanded criminal penalties last ciplining employees, said, ‘‘Some employees, February that overturned a guilty verdict year to deter the use of computer data with- when confronted, indicate they browsed be- against a Ku Klux Klansman employed by out proper authorization, but the provision cause they do not believe it is wrong and the IRS in Boston who browsed through tax does not apply to paper tax returns or mag- that their will be little or no consequence to records of suspected white supremacists, a netic tapes. them if they are caught.’’ family adversary and a political opponent. Last year, a former IRS employee was ac- EARL EXECUTIVE STEERING COMMITTEE The IRS document added that agency man- quitted of criminal charges after peeking at REPORT agers ‘‘apply vastly different levels of dis- the records of Elizabeth Taylor, Lucille Ball, Attached are excerpts from a lengthy in- cipline for similar offenses,’’ sending ‘‘an in- Tom Cruise, Elvis Presley and other celeb- ternal IRS audit on the state of taxpayer pri- consistent message to the workforce.’’ Glenn rities. vacy at the agency. Following are high- called for swift passage of his bill to end In both cases, there was little or no testi- lights, including the executive summary of loopholes in the law that allow some federal mony to prove that the IRS workers passed the report. Left out are discussions of com- workers to escape prosecution for browsing information to others or used the informa- puter codes and other primarily technical in- through records. tion in a criminal way. formation. DISPOSITION OF CASES—MISCONDUCT ALLEGATIONS INVOLVING MISUSE OF IDRS [Population approximately 56,500]

FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 Actions Percent Actions Percent Actions Percent Actions Percent Actions Percent

Clearance ...... 5 1 75 10 10 2 50 8 58 7 Closed Without Action ...... 174 33 245 31 146 28 204 32 291 33 Counseling ...... 221 42 202 26 205 39 190 29 282 32 Disciplinary Action ...... 100 19 242 31 140 27 163 25 186 21 Separation ...... 7 1 7 1 6 1 12 2 11 1 Resignation/Retirement ...... 14 3 16 2 15 3 27 4 41 5 Total ...... 521 ...... 787 ...... 522 ...... 646 ...... 869 ...... Disciplinary Action/as a percent of IDRS users ...... 0.21% ...... 0.45% ...... 0.28% ...... 0.35% ...... 0.41% ......

Mr. HAGEL. Mr. President, we are The headlines of our newspapers have colleagues to support this important engaged in an important debate—a de- been littered with accounts of IRS em- measure to stop IRS employees from bate about privacy, liberty, and the ployees reading taxpayers’ confidential electronically browsing through tax- role of Government in our lives. The files without authority and without payer files. American people want less Govern- cause. During fiscal years 1994 and 1995, Mr. President, today is not a day ment, less regulation and less taxes. there were 1,515 cases of IRS employees when most Americans feel much sym- They want less hassle and more respect browsing through confidential tax- pathy for the IRS. For many Ameri- from their Government. payer computer records, according to a cans finishing up their tax returns, the I am proud to be an original cospon- recent General Accounting Office re- last several days have been painful sor of the Taxpayer Privacy Protection port. These employees violated the pri- ones, with families struggling to under- Act, which was introduced by my dis- vacy of hundreds of taxpayers when stand and fill out complex forms, writ- tinguished colleague from Georgia, they snooped through the tax returns ing checks to the IRS and wondering Senator COVERDELL. The Senate will of friends, family member or celeb- where all the money they send to vote on this important legislation later rities without authorization and with- Washington actually goes. today, and I urge all of my colleagues out justification. And it doesn’t help to see recent to support it. Yet, of those 1,515 cases of snooping, news accounts of the $4 billion of the As the April 15 income tax deadline only 844 resulted in employees being taxpayers money has been wasted by approaches each year, Americans rush fired, disciplined, or counseled. the IRS in an effort to modernize its to file their returns while wading Let me emphasize that, Mr. Presi- computer system—without success. through a paper storm of tax forms dent—only 844 of the 1,515 snoops had That’s nearly enough money to pay for that even some tax lawyers have trou- action taken against them. That means our troops in Bosnia, and for continued ble understanding. During tax season, almost 700 known cases of snooping disaster relief to areas of the country went unpunished. animus for the IRS reaches its peak as damaged by floods and storms, includ- This is not acceptable. Unauthorized ing areas of North Carolina still suffer- taxpayers are reminded what an intru- snooping is wrong and intolerable. ing from the effects of Hurricane Fran. sive, overbearing bureaucracy the In- That is why the laws need to be And so, Mr. President, today is not a ternal Revenue Service has become. changed. good day for the American people to be Nobody likes taxes, and nobody likes The Taxpayer Privacy Protection told of yet another outrage at the IRS. tax collectors. They are necessary Act imposes civil and criminal pen- As many as 211 million Americans who evils. But if we must have them, then alties against IRS employees who file tax returns this year will pay over we need to do all we can to ease the snoop through tax returns and related $1.6 trillion in taxes. That is outrage burden they impose on our citizens and information without authority. It puts enough. Quite frankly, the American to make the system user-friendly and real power in the hands of taxpayers people are overtaxed, and I hope that respectful of our people. who are the victims of IRS snooping— we can provide them some tax relief The IRS system today is neither it lets them bring suit against the IRS this year. user-friendly nor respectful. Today we employee who is responsible. Under As complicated and burdensome as have an IRS that is out of control from this legislation, IRS employees can be our Tax Code has become, the vast ma- top management all the way down to fired, fined, and jailed if they are found jority of taxpayers fill out their tax its field offices, and the American tax- guilty of snooping. forms honestly and completely. In fact, payers are paying the price for that This bill is an important step toward our entire system of tax collection de- disarray—a price in inefficiency, incon- protecting Americans from an out of pends on the voluntary compliance of venience, intrusiveness, and even har- control IRS. It is an important step to- the American people. Much of the in- assment. ward holding IRS employees account- formation contained in these tax re- The American people deserve better. able for their actions. It is a small but turns is extremely private and sen- It is bad enough that taxpayers have to important step toward making our tax sitive. Taxpayers have a right to ex- pay for an agency that wastes their system respectful, trustworthy, and pect that this information will be money and time. But it is simply unac- sound. treated with the greatest of care. ceptable that the IRS has tolerated It should become law—now. For that reason, I was deeply trou- some of its employees snooping Mr. FAIRCLOTH. Mr. President, as a bled by the results of the recent inves- through confidential taxpayer informa- cosponsor of S. 522, The Taxpayer tigation of the Internal Revenue Serv- tion. Browsing Protection Act, I urge my ice by the General Accounting Office April 15, 1997 CONGRESSIONAL RECORD — SENATE S3189 which has prompted this hearing. The The PRESIDING OFFICER. The paragraph (1)) willfully to inspect, except as GAO has uncovered at least 1,515 cases question now occurs on passage of the authorized in this title, any return or return where IRS employees have used Gov- bill. information acquired by such person or an- ernment computers to browse through The yeas and nays have been ordered. other person under a provision of section 6103 referred to in section 7213(a)(2). The clerk will call the roll. the private tax files of Americans— ‘‘(b) PENALTY.— without authorization. The legislative clerk called the roll. ‘‘(1) IN GENERAL.—Any violation of sub- According to the GAO, this is not the Mr. NICKLES. I announce that the section (a) shall be punishable upon convic- first time that IRS employees have Senator from North Carolina [Mr. tion by a fine in any amount not exceeding been caught peeking in on private tax FAIRCLOTH] and the Senator from Or- $1,000, or imprisonment of not more than 1 files. In 1993 and 1994, the GAO discov- egon [Mr. GORDON SMITH] are nec- year, or both, together with the costs of ered that more than 1,300 IRS employ- essarily absent. prosecution. ees had used Government computers to Mr. FORD. I announce that the Sen- ‘‘(2) FEDERAL OFFICERS OR EMPLOYEES.—An officer or employee of the United States who ator from West Virginia [Mr. ROCKE- electronically browse through tax is convicted of any violation of subsection records. At that time, the Commis- FELLER] is necessarily absent. (a) shall, in addition to any other punish- sioner of the IRS announced a new zero The PRESIDING OFFICER. Are there ment, be dismissed from office or discharged tolerance policy for such behavior. any other Senators in the Chamber de- from employment. Unfortunately, zero tolerance has siring to vote? ‘‘(c) DEFINITIONS.—For purposes of this sec- been more like zero improvement. Ac- The result was announced—yeas 97, tion, the terms ‘inspect’, ‘return’, and ‘re- cording to the GAO, little has changed nays 0, as follows: turn information’ have the respective mean- ings given such terms by section 6103(b).’’. since this problem was first identified [Rollcall Vote No. 43 Leg.] (b) TECHNICAL AMENDMENTS.— in 1993. IRS employees are still snoop- YEAS—97 (1) Paragraph (2) of section 7213(a) of such ing into tax files without proper au- Abraham Feingold Lott Code is amended by inserting ‘‘(5),’’ after thorization. The system put in place by Akaka Feinstein Lugar ‘‘(m)(2), (4),’’. the IRS to fix the problem and detect Allard Ford Mack (2) The table of sections for part I of sub- Ashcroft Frist McCain chapter A of chapter 75 of such Code is unauthorized browsing—the Electronic Baucus Glenn McConnell Audit Research Log, or EARL—can’t Bennett Gorton Mikulski amended by inserting after the item relating even tell the difference between brows- Biden Graham Moseley-Braun to section 7213 the following new item: ing and legitimate work. Bingaman Gramm Moynihan Bond Grams Murkowski To make matters worse, an IRS in- Boxer Grassley Murray ‘‘Sec. 7213A. Unauthorized inspection of re- ternal audit found that many employ- Breaux Gregg Nickles turns or return information.’’. ees who were caught browsing did not Brownback Hagel Reed (c) EFFECTIVE DATE.—The amendments believe that snooping in taxpayers’ Bryan Harkin Reid made by this section shall apply to viola- Bumpers Hatch Robb files is wrong, and perhaps even more tions occurring on and after the date of the Burns Helms Roberts enactment of this Act. troubling, they thought there would be Byrd Hollings Roth little or no consequence to them if Campbell Hutchinson Santorum SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED IN- Chafee Hutchison Sarbanes SPECTION OF RETURNS AND RE- they were caught. Cleland Inhofe Sessions TURN INFORMATION; NOTIFICATION I am concerned that we can’t count Coats Inouye Shelby OF UNLAWFUL INSPECTION OR DIS- on the senior management of the IRS Cochran Jeffords Smith (NH) CLOSURE. to supervise their employees. In fact, I Collins Johnson Snowe (a) CIVIL DAMAGES FOR UNAUTHORIZED IN- Conrad Kempthorne Specter SPECTION.—Subsection (a) of section 7431 of am concerned about the supervisors Coverdell Kennedy Stevens the Internal Revenue Code of 1986 is amend- themselves, and I wonder who is watch- Craig Kerrey Thomas ed— D’Amato Kerry Thompson ing them. I find news accounts that the ISCLOSURE Daschle Kohl Thurmond (1) by striking ‘‘D ’’ in the head- IRS may be conducting politically mo- DeWine Kyl Torricelli ings for paragraphs (1) and (2) and inserting tivated audits of selected nonprofit or- Dodd Landrieu Warner ‘‘INSPECTION OR DISCLOSURE’’, and ganizations deeply troubling. Domenici Lautenberg Wellstone (2) by striking ‘‘discloses’’ in paragraphs Mr. President, the IRS has dem- Dorgan Leahy Wyden (1) and (2) and inserting ‘‘inspects or dis- Durbin Levin closes’’. onstrated that it cannot adequately su- Enzi Lieberman pervise its own employees to protect (b) NOTIFICATION OF UNLAWFUL INSPECTION OR DISCLOSURE.—Section 7431 of such Code is the privacy of the American people. NOT VOTING—3 Faircloth Rockefeller Smith (OR) amended by redesignating subsections (e) Stronger measures are clearly needed. and (f) as subsections (f) and (g), respec- That is why I am a cosponsor of of S. The bill (S. 522), as amended, was tively, and by inserting after subsection (d) 522, The Taxpayer Browsing Protection passed, as follows the following new subsection: Act offered by my good friend, Senator S. 522 ‘‘(e) NOTIFICATION OF UNLAWFUL INSPECTION AND DISCLOSURE.—If any person is criminally COVERDELL. I join my colleagues in Be it enacted by the Senate and House of Rep- charged by indictment or information with support of the measure. resentatives of the United States of America in inspection or disclosure of a taxpayer’s re- Mr. President, due to a prior family Congress assembled, turn or return information in violation of— commitment, I was unavoidably de- SECTION 1. SHORT TITLE. ‘‘(1) paragraph (1) or (2) of section 7213(a), tained and missed the vote on S. 522. This Act may be cited as the ‘‘Taxpayer ‘‘(2) section 7213A(a), or Had I been present I would have voted Browsing Protection Act’’. ‘‘(3) subparagraph (B) of section 1030(a)(2) ‘‘aye.’’ SEC. 2. PENALTY FOR UNAUTHORIZED INSPEC- of title 18, United States Code, Mr. COVERDELL. Mr. President, I TION OF TAX RETURNS OR TAX RE- the Secretary shall notify such taxpayer as TURN INFORMATION. ask for yeas and nays on final passage. soon as practicable of such inspection or dis- (a) IN GENERAL.—Part I of subchapter A of The PRESIDING OFFICER. Is there a closure.’’. chapter 75 of the Internal Revenue Code of (c) NO DAMAGES FOR INSPECTION REQUESTED sufficient second? 1986 (relating to crimes, other offenses, and There is a sufficient second. BY TAXPAYER.—Subsection (b) of section 7431 forfeitures) is amended by adding after sec- of such Code is amended to read as follows: Mr. COVERDELL. Mr. President, I tion 7213 the following new section: ‘‘(b) EXCEPTIONS.—No liability shall arise urge adoption of the amendment. ‘‘SEC. 7213A. UNAUTHORIZED INSPECTION OF RE- under this section with respect to any in- The PRESIDING OFFICER. The TURNS OR RETURN INFORMATION. spection or disclosure— question is on agreeing to amendment ‘‘(a) PROHIBITIONS.— ‘‘(1) which results from a good faith, but No. 45. ‘‘(1) FEDERAL EMPLOYEES AND OTHER PER- erroneous, interpretation of section 6103, or The amendment (No. 45) was agreed SONS.—It shall be unlawful for— ‘‘(2) which is requested by the taxpayer.’’. ‘‘(A) any officer or employee of the United to. (d) CONFORMING AMENDMENTS.— States, or (1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) The PRESIDING OFFICER. The ‘‘(B) any person described in section 6103(n) question is on the engrossment and of section 7431 of such Code are each amend- or an officer or employee of any such person, ed by inserting ‘‘inspection or’’ before ‘‘dis- third reading of the bill. willfully to inspect, except as authorized in closure’’. The bill was ordered to be engrossed this title, any return or return information. (2) Clause (ii) of section 7431(c)(1)(B) of for a third reading, was read the third ‘‘(2) STATE AND OTHER EMPLOYEES.—It shall such Code is amended by striking ‘‘willful time. be unlawful for any person (not described in disclosure or a disclosure’’ and inserting S3190 CONGRESSIONAL RECORD — SENATE April 15, 1997 ‘‘willful inspection or disclosure or an in- I might take just a moment so that In the resolution that I will ask spection or disclosure’’. there can be a response to that unani- unanimous consent to offer we ask that (3) Subsection (f) of section 7431 of such mous-consent request. This is a sense the majority party take up without Code, as redesignated by subsection (b), is of the Senate which just declares a delay a budget resolution that balances amended to read as follows: need for tax relief for the American ‘‘(f) DEFINITIONS.—For purposes of this sec- the budget by the year 2002 and targets tion, the terms ‘inspect’, ‘inspection’, ‘re- people, and condemns the abuses of its tax relief to working and middle- turn’, and ‘return information’ have the re- power and authority committed by the class families to the same degree as the spective meanings given such terms by sec- Internal Revenue Service. proposal offered by the President and, tion 6103(b).’’. We have discussed this with a num- at the same time, protects important (4) The section heading for section 7431 of ber of Senators. We have provided it to domestic priorities such as Medicare, such Code is amended by inserting ‘‘INSPEC- the other side of the aisle. Medicaid, education, and the environ- TION OR’’ before ‘‘DISCLOSURE’’. So I propound that unanimous-con- ment. (5) The table of sections for subchapter B sent request. I might say there is a difference with of chapter 76 of such Code is amended by in- The PRESIDING OFFICER. Is there serting ‘‘inspection or’’ before ‘‘disclosure’’ respect to our interest in tax relief. objection? There are those who propose tax relief in the item relating to section 7431. Mr. DORGAN. Mr. President, I ob- (6) Paragraph (2) of section 7431(g) of such but do it in a way that says what they ject. Code, as redesignated by subsection (b), is would like to do is especially exempt The PRESIDING OFFICER. Objec- amended by striking ‘‘any use’’ and inserting income from investment, which means ‘‘any inspection or use’’. tion is heard. Mr. DORGAN addressed the Chair. there is more of a burden on income (e) EFFECTIVE DATE.—The amendments from work. It is an approach that says made by this section shall apply to inspec- The PRESIDING OFFICER. The Sen- tions and disclosures occurring on and after ator from North Dakota. let us tax work but let us exempt in- the date of the enactment of this Act. Mr. DORGAN. Mr. President, I ask vestment. Guess who has all the invest- SEC. 4. NATIONAL FLOOD INSURANCE ACT OF unanimous consent that the Senate ment income in the country. The 1968. proceed to—before I propound the upper-income folks. (a) IN GENERAL.—Section 1306(c)(1) of the unanimous-consent request, let me ex- And so you have a proposal that es- National Flood Insurance Act of 1968 (42 plain my objection to the resolution of- sentially says let us exempt the folks U.S.C. 4013(c)(1)) is amended by striking ‘‘30’’ fered by the Senate majority leader at the upper-income scale, and then we and inserting ‘‘15’’. and then indicate that I would intend will shift the burden, and what we will (b) EFFECTIVE DATE.—The amendment to offer a resolution of my own. end up doing is taxing work. made by subsection (a) shall be construed to Some of us think that is the wrong have taken effect on January 1, 1997, and Some of the provisions that are in shall expire June 30, 1997. the resolution offered by the Senator way to offer tax relief, that overbur- from Mississippi, the majority leader, dened working families deserve some Mr. GLENN. Mr. President, I move to are not troublesome, but there are tax relief in this country, and we be- reconsider the vote by which the bill, some provisions and some language lieve a responsible budget that allows as amended, was passed. that are very troublesome to some of for some tax relief to working families Mr. COVERDELL. I move to lay that us in this resolution. but still protects important priorities, motion on the table. It is clearly a partisan resolution and, importantly, balances the budget The motion to lay on the table was written in a manner that suggests that in 2002, is a responsibility of this Con- agreed to. one side is no good, the other side is all gress. And it so happens that today is Mr. LOTT. Mr. President, I suggest bad, and for that reason I object to it. the day by which that is supposed to be the absence of a quorum. In the spirit of discussing the taxes, done. The PRESIDING OFFICER. The tax burden on the American citizens f clerk will call the roll. and the ability to address meaningful The legislative clerk proceeded to tax reform for American families and UNANIMOUS-CONSENT REQUEST— call the roll. to do so in a budget process that has a SENATE RESOLUTION 74 Mr. LOTT. Mr. President, I ask unan- requirement that the Congress bring to Mr. DORGAN. Mr. President, I ask imous consent that the order for the the floor of the Senate and pass a budg- unanimous consent that the Senate quorum call be rescinded. et today on April 15, I would offer a proceed to the immediate consider- The PRESIDING OFFICER. Without unanimous-consent request and will do ation of a resolution I will send to the objection, it is so ordered. so, and the resolution that I will offer desk submitted by myself and on behalf Mr. LOTT. Mr. President, I would is a resolution that talks some about of Senator DASCHLE regarding the like to announce officially—as most the tax burden that we face in this sense of the Senate relating to the Senators know, but in case they missed country and our desire to offer mean- budget deficit reduction and tax relief it—that that was the last recorded vote ingful tax relief to American families for working families. for the day. We are discussing some but to do so in the context of a budget I further ask there be 10 minutes for other issues that we hope to get agree- that reaches balance, and that we do it debate on the resolution equally di- ment on today and tomorrow. We will in a process as described by law in this vided in the usual form, and, following keep the Members informed on that. country, that a budget be brought to that debate, without intervening ac- f the Congress, be passed by April 15. tion, the Senate proceed to vote on the It is unusual that we have not even adoption of the resolution, the pre- UNANIMOUS-CONSENT REQUEST— started a budget process at this point. amble be agreed to, and the motion to SENATE RESOLUTION 73 April 15 is two deadlines. One, people reconsider be laid upon the table. Mr. LOTT. Mr. President, I would will line up at the post office this The PRESIDING OFFICER. Is there like to now propound a unanimous-con- evening in a traffic jam trying to file objection? sent request that the Senate proceed their income tax return and get an Mr. LOTT. Mr. President, reserving immediately to the consideration of a April 15 postmark because people at the right to object. Senate resolution submitted by myself the post office want to meet their obli- The PRESIDING OFFICER. The Sen- regarding the sense of the Senate relat- gation. ate majority leader. ing to tax relief for the American peo- There is a second obligation today, Mr. LOTT. Also, I must say it is re- ple. I further ask unanimous-consent and that is the obligation of the Con- grettable that the objection was heard that there be 10 minutes for debate on gress to pass a budget resolution, by on the earlier unanimous-consent re- the resolution equally divided in the law, on April 15. Obviously, we are far quest for a sense-of-the-Senate resolu- usual form, and following that debate from that position of being able to pass tion in this area. I had hoped the Sen- the Senate proceed to a vote on the a budget resolution. No budget resolu- ate would be able to adopt the resolu- adoption of the resolution to be fol- tion has come from the Budget Com- tion in a timely manner, considering lowed by a vote on the preamble, and mittee. There is not an indication that this is April 15, tax day, the day that the motion to reconsider be laid upon such a budget resolution will be forth- most Americans have the worst feeling the table. coming. about in the entire year. This is a April 15, 1997 CONGRESSIONAL RECORD — SENATE S3191 sense-of-the-Senate resolution, and as dren, and to the capital gains area lower interest rates. And the fact is a matter of fact I would assume that where a lot of people are not selling or this country was put back on track be- we could probably come together on not being able to get the benefit of cause the deficits were being reduced language that would make it clear we their lands or stocks or what they own and we were moving in the right direc- feel that working Americans should because they do not want to have to tion. have and deserve some tax relief and pay the excessive capital gains tax Now, was it controversial to do that? we need to do it today, not May 9, rate. Yes, of course, it was. Why was it con- which is how long the American people But without saying OK, you did it, troversial? Because it lends itself to have to work to pay their taxes for the we did it, they did it, what I am advo- this sort of nonsense, someone coming year. Until May the 9th we all work for cating this afternoon is we get a sense- to the floor of the Senate and saying, the Government, and then after that of-the-Senate resolution in a bipartisan well, gee, look at the Democrats over we get to keep the money we have been way in which we agree that the Amer- on the other side of the aisle. This res- earning because we have paid off the ican people deserve some relief. And olution says, well, the Democrats did tax burden that the American people that is what the title says here—de- it. The Democrats passed the largest are saddled with. clare the need for tax relief for the tax increase in history. I know of examples of young Ameri- American people and condemn the Some of what the majority leader cans who are working making $30,000 a abuses of power and authority commit- said I agree with, and we can draft a bi- partisan resolution that talks about year and their tax burden, when you ted by the Internal Revenue Service. the common interests here. Should we add it all up, is probably 40 percent. We have already done that today. We try to do some tax relief for working Others, like my own young son who is have already said that their snooping families? Of course, we should. Let us a young entrepreneur, creating jobs, around through files is wrong, and we do that in the context of a balanced trying to help people get a job, keep a put some penalties in the law for that. budget. Can we do something that al- job, make a living, get some basic We worked together on that one. lows people to pass businesses and fam- training, move on, are paying over 50 So it seems that while there has been ily farms from one generation to the percent. We now have probably the objection heard on both sides I guess so other without inheriting the business highest tax burden on working Ameri- far this afternoon, I think we ought to and the farm and the estate tax obliga- see if we cannot come to an agreement cans in history. It is very high. It is op- tion? Yes, let us do that. Should we, on something where the American peo- pressive. however, agree to some of the other With regard to the budget itself, as a ple can say, yes, look, they really are proposals on the other side that say matter of fact, Congress has only met committed to doing their job in con- let’s have a zero tax on estates, exempt the April 15 deadline for budget resolu- trolling the rate of growth in the Fed- all estates and have no estate tax, and, tions once in 15 years. That is not to eral Government and giving some tax by the way, let us decide there be a say we should not do it. I had hoped we relief to the American people. So I zero tax for the capital gains that would meet that deadline this year, would be constrained at this point to someone has? and I will work toward that goal in the object to that unanimous-consent re- Kevin Phillips, a Republican com- future. One of the reasons we have not quest. mentator, today on NPR talked about is because we have been working in The PRESIDING OFFICER. Objec- that issue, and I will read it again in good faith with the administration to tion is heard. the Chamber tomorrow. I read it today. see if we could come together on agree- Mr. DORGAN addressed the Chair. It makes no sense to decide we are ment of a package that would take us The PRESIDING OFFICER. The Sen- going to have a tax system, and there to balance by the year 2002 with tax re- ator from North Dakota is recognized. are four streams of income in this lief for working Americans. Mr. DORGAN. Without belaboring country and we decide to treat a couple I remind Senators, as a matter of this at great length, the Senator from streams of income by exempting them fact, that there has been bipartisan Mississippi said we will not go through and the other streams will bear a tax support for tax relief for working ‘‘you said, they said, we said,’’ having burden. So we will create a situation Americans. Senator BREAUX and Sen- already done that. The fact is I would where someone would propose, let’s tax ator LIEBERMAN have supported capital not have objected, nor would other those people who are recipients of in- gains tax rate cuts. I think maybe the Members on this side of the aisle have come from investments and decide Senator from North Dakota was refer- objected to this resolution except this then, all right, we have taxed them at ring to that a moment ago. Senator is not a resolution you bring to the half the rate they used to be taxed. TORRICELLI joined Senators BREAUX, floor and say, by the way, let us be bi- Now we will exempt them altogether. NICKLES, CRAIG, and I in saying the es- partisan. Let us just have a total tax exemption tate tax, the death tax, clearly is one Let me give you an example. This is for people who have their income from of the worst things we have in the Tax a resolution that says page 1, sub 5, investments, but people who get their Code because it undermines the Amer- ‘‘President proposed and Democratic- income by working, let’s go ahead and ican dream of working and saving up controlled Congress enacted a $241 bil- keep taxing those folks. something, producing something and lion tax increase on the American peo- Guess what. It is like squeezing a bal- leaving something to your children but ple in 1993, the largest in history,’’ and loon. When you exempt a class of in- now the tax law takes 44 percent, mini- on and on and on. It was not the larg- come over here from any tax obliga- mum, of a life’s work above certain est in history. The largest in history tion, the people who are over here re- levels, once you get above the exemp- came during the Reagan administra- maining to pay the tax are going to tion, and up to 55 percent under certain tion in 1982, the largest tax increase in pay a higher burden. It is saying let’s conditions. history documented by the Congres- exempt people who are investors and We should raise that exemption for sional Budget Office and Joint Tax we will ask people who work to pay a individuals, for small businesses, farm- Committee, but that is beside the higher tax. ers, and ranchers, in the Senator’s point. Does that make any sense? Tax work State, in the North Dakota area, in my In 1993, a provision that I voted for but exempt investment? Capital gains State and all across America. was a deficit reduction provision, and tax—I proposed a capital gains tax pro- So we should come up with a sense- guess what happened as a result of posal that says if you hold a capital of-the-Senate resolution today, April that? Yes, the deficit was reduced. Con- asset for 10 years, maybe you should be 15, that makes a commitment to reduc- test that? Well, even Alan Greenspan able to take $250,000 with a zero tax ing the burden. As a matter of fact, one says it was reduced as a result of that rate during your lifetime; tax free of the reasons why we need to do it, the action. The deficit was reduced because $250,000 during your lifetime. But Senator will recall we had the largest we had the courage to reduce spending should we go back to the good old days tax increase in history that was passed and increase some revenue. The deficit where you have a tax shelter industry in the first year of the Clinton admin- has been reduced over 60 percent since with tens of thousands of people doing istration, 1993. We need to give back a 1993. We have had economic growth. We nothing but help people convert ordi- little bit of that to families with chil- have had job creation. We have had nary income to capital gains so they S3192 CONGRESSIONAL RECORD — SENATE April 15, 1997 end up paying no tax so the people who that I wish everybody had the oppor- percent of the streams were unfishable go to work every day end up paying a tunity to live through the Depression. and unswimmable. Now 65 percent are certain tax. I do not think so. It does My brother and sister and I were lucky. swimmable and fishable, and nobody not make sense to me. We had something to eat. We also had here wants to do anything but go to 100 If the Senator from Mississippi wants devoted parents and that makes up for percent clean water and air for our to pass a bipartisan resolution and a multitude of problems. However, not children and grandchildren yet to takes these kinds of things, especially, everyone is as fortunate. Some people come. out of it, write a resolution and we will need a helping hand. I could go on with many other things pass it. I have no problem with that. Nobody likes the idea of taxes. I the Government has done to benefit us But you cannot call this bipartisan, coughed up a sizable amount yesterday all. For instance, we have dammed the bringing this to the floor and throwing to the IRS. I did not particularly enjoy rivers that used to flood every spring. out sort of an in-your-face admonition it. But I have never begrudged the My mother and father used to go down about what Democrats did in 1993. Most taxes I paid, even though, as a U.S. to the Arkansas River every April, see of us feel good about what we did in Senator, I see a lot of waste. I see people straggling along the road who 1993. We turned this country around, money misspent. I see priorities mis- had lost their homes and all their pos- and passed a piece of legislation that placed. And sometimes it is kind of a sessions, pick them up, take them substantially reduced the Federal defi- bitter pill to swallow. But I can not ac- home, keep them for a couple of nights cit, substantially reduced the Federal cept the idea that some Senators that until the water receded, and take them budget deficit, helped create new jobs, have propounded today that somehow back to the area they had called their put us on a course to economic growth there is something unholy and evil homes. We dammed the Arkansas and reduced interest rates. That is about paying taxes. As Justice Holmes River. It not only provides navigation what we did, and we did not get one said, taxes are necessary ‘‘to make our but recreation and flood control. And vote to help us. All we got was criti- society a civilized one.’’ To complain people in those same areas of Arbuckle cism then and now, 4 years later, we about the taxes we pay in order to live Island do not have to worry about it slip papers under the doors and over in a civilized society is unfathomable anymore. the transom, to say, ‘‘Here is what to me. And now some in Congress want a they did, here is what they did back in My brother, who is my best friend, constitutional amendment that would 1993.’’ does not like to pay taxes. I keep re- require a two-thirds vote to raise That is not the way to do business. If minding him the thing he and my sis- taxes. You could not even correct a you want to do a resolution, let us do ter and I had that a lot of children did mistake with less than two-thirds of one. Let us just take all this backbit- not have when we were growing up, is the vote. You could not close a tax ing out of it and do a resolution that that we chose our parents well. A lot of loophole with less than two-thirds of reaches the consensus that I think we children do not have that luxury. The the vote. It would favor the wealthy, could reach on some of the things that fact is that the Federal Government who would be assured their taxes would we think should be done with respect has done a tremendous amount of good never go up. And it would be a terrible to our Tax Code. with our tax funds. I think about the disservice to the people who rely on I yield the floor. house we lived in and the fact that the Government services—yes, even wel- f water well was only about 10 steps fare recipients. Like I say, everybody away from the outhouse, and people did not have Bill and Lattie Bumpers MORNING BUSINESS died of typhoid fever in the summer- for parents. Mr. DORGAN addressed the Chair. time and we could not figure out why. We talk about family values. I have Mr. LOTT. Mr. President, if I could, I All of a sudden, Franklin Roosevelt the three greatest children and the have a brief unanimous-consent re- was elected President, the first Presi- greatest family a man could have. I quest that I do not think will be a dent of the United States who began to know all about family values. I put problem. I ask unanimous consent treat the South as a part of the United mine up against those of anybody in there now be a period for morning busi- States and not as a conquered nation. the world. Yet you and I know there ness with Senators to speak for up to 5 So, we began to get paved streets, run- are a lot of children in this country minutes each. ning water, indoor plumbing, elec- who would be better off almost any- The PRESIDING OFFICER. Without tricity, natural gas, housing, medical place than where they are. objection, it is so ordered. help, free shots against typhoid fever So, I believe in helping these chil- Mr. LOTT. For the information of all and smallpox at the schoolhouse, by a dren. We keep on building more prisons Senators, as I noted, there will be no nurse paid for by those insidious taxes and spending $25,000 a year for every further rollcall votes. We are working that we pay. person we incarcerate, and if we had on a time agreement for tomorrow on Mr. President, if I could just list all given that child an education at rough- the assisted suicide legislation that has of the things that have happened since ly half the cost, he would not be in already passed the other body. I would I was 10 years old, that have made us prison. When I was Governor I used to expect that rollcall to occur mid to the great Nation we are, not one single go to the prisons and talk, sit and have late afternoon, and we are still work- Member of the U.S. Senate would take lunch with them, interview them, talk ing on the situation with regard to the any of them back—not one. I am think- to them. I never met one with a college nominee to be Secretary of Labor. So ing about the housing programs we degree, though there probably were a there could be at least one and maybe have, the farm programs we have, the few. I never met one who owned his two votes tomorrow. We will give Sen- medical research that we do, the medi- own home. I didn’t meet very many ators the exact time once we have in- cal help we give people. I think about who did not come from a broken home. formation. the bank insurance fund. If we had not Mr. President, I stand here on April I yield the floor. had the FSLIC fund when the S&L’s 15 and we are still without a budget. The PRESIDING OFFICER (Mr. ROB- were all going broke, you think about Instead, we are wasting the peoples’ ERTS). Who seeks time? what a catastrophe that would have time with a debate between the Demo- f been in this country. That is what hap- crats and Republicans about taxes. So pened during the Depression, the banks far as I am concerned, the whole coun- TAXES went broke. And my mother, who had try loses with that debate. If you really Mr. BUMPERS. Mr. President, I com- carefully saved $1,100 selling cream and want to restore confidence in the pliment my distinguished friend from eggs and chickens on Saturday, lost American political system and you North Dakota on his very prescient re- every nickel of it when the bank went want to stop the alienation of people’s marks, which I think are right on tar- under. And she grieved about it until attitudes toward Congress and what get. I listened to a lot of the debate her dying day. goes on here, do two things: Balance today on the question of taxation, and Who would turn their back on the en- the budget and change the way you fi- I must say I find it puzzling. I do not vironmental improvements we have nance campaigns. Anybody who thinks really mean this, but I say quite often made in this country? Mr. President, 65 a democracy can survive when the laws April 15, 1997 CONGRESSIONAL RECORD — SENATE S3193 we pass and the people we elect are to- ‘‘What on Earth did you do with it?’’ can deduct $2,550. If that had kept pace tally dependent on how much money Why, we cut taxes for the wealthiest with inflation from 1955, it would be we put on it is dreaming. 5 percent of the people in America. worth over $9,000. So over the last 20 or And, if you want to stop alienation That is what we did with it. 30 years, somehow we have found chil- and really cause people to dance in the I will be 6 feet under before you catch dren or families less worthy of tax re- streets, balance the budget. In 1981, me voting for something like that. lief than we do today. FRITZ HOLLINGS, Bill Bradley and DALE I just came over here to say that the We talk about other tax relief, like BUMPERS were the only three Senators citizenry of this country, when you the death tax, the estate tax. In other who voted for Ronald Reagan’s spend- stop and talk to them from the heart, words, you have worked all your life, ing cuts and against his tax cuts. I can if not the head, talk to them from the you have tried to put something away, show you absolute documented proof, if heart and the head, let them know we as you are encouraged to do, to provide everybody had voted that way we are the luckiest people alive. for your family after you are gone, to would have had a balanced budget in Yes, I paid a lot of taxes yesterday, be able to leave your children or your 1985. But, no, the herd instinct swept and I did not like it, but I will tell you spouse some money for the means of across this body and we voted for those what I do like. I enjoy living in a civ- doing better. But yet, when you die, massive tax cuts that guaranteed the ilized society where the crime rate is the Government wants to come in and budget was going to go out of control. down, where the unemployment rate take the majority of it. I think it was And it did. Just as I screamed from has been dramatically reduced, where Paul Harvey who went through this the this very spot in 1981. inflation is under control, where people other day on the radio and talked Here we are, back to the same old have jobs and where some Senators are about if you had a $3 million estate, by stand. It reminds me of trying to trying to figure out a way to educate the time the Government got finished housebreak my little dog. I just could every child in this country who wants taking money away from you through not do it. His memory was just too it. penalties, et cetera, and the estate tax short. And he is not alone. The memo- So, no, I am not voting for any of and everything else, your family would ries of people in this body are awful this nonsense that would require a two- get $400,000, the Government would get short, too. Nobody seems to remember thirds vote to raise taxes. That is not a $2.6 million of that. how we got an additional $3 trillion in democracy. I consider myself just If you had an estate of $1.9 million, debt from 1981 to 1992. about the luckiest man that ever lived, the tax on it would be 85 percent that So, it is nonsense to talk about a No. 1, because of my parents and No. 2, would go to the Government. What two-thirds vote to raise taxes. Even the because I got elected to the U.S. Sen- kind of a message does this send to Articles of Confederation, which start- ate after serving my State as Governor anybody? Does it tell you that you ed out by saying you have to have 9 of for 4 years. Why? It is the greatest should save? ‘‘Why? I’m going to save 13 States agree to raise taxes before place in the world to keep faith with up all my money so that the day I die, you can do it, had to be changed be- humankind, to give other people the the Government can come in and take cause they knew that would not work. same kind of chances you had. 85 percent of it away from my kids.’’ Mr. President, I have tried to make So I am very fortunate to be an We talk about the death tax, and we two points today. As I have said many American, and I did not begrudge the talk about eliminating the estate tax. times before, if it had not been for a taxes I paid yesterday, just as I never You worked all your life, you have al- generous, compassionate, caring Gov- begrudged the taxes I have paid, and I ready paid your taxes on those dollars. ernment, who had taxes to pay for my think most of the Members of the Sen- This is after-tax income, and yet, when education on the GI bill, I would not be ate agree with that when they stop and you die, the Government says, ‘‘That’s standing here right now. I have been really reflect on it. not enough, we want the bulk of what- trying to pay back this great Nation, I yield the floor. ever you have in your savings account the oldest democracy on Earth, with an The PRESIDING OFFICER (Ms. and cap gains tax.’’ organic law which we call the Constitu- SNOWE). The Senator from Minnesota. There is always talk about how it is tion; next to the Holy Bible the most Mr. GRAMS. Madam President, only a tax cut for the wealthy. Grant- sacred to me. And every time we get in thank you. ed, there are people who have money a tough political spot somebody says, f who are going to benefit from this, but it is capital they are going to reinvest. ‘‘Well, let’s amend the Constitution.’’ TAX DAY AND TAX RELIEF When I think about some of the people When we talk about being able to pro- here trying to tinker with what Ben Mr. GRAMS. Madam President, I vide an economy for working families Franklin and James Madison and John would like to talk a little bit about tax in this country, we need to grow, and Adams and Alexander Hamilton did, day and, of course, the arguments that needs investments, it needs cap- crafted the greatest document and de- going on here in the last few minutes ital, no matter where it comes from— livered under that document the great- about taxes and who should pay them, foreign investors, local, domestic. We est Nation, the greatest democracy on how much should be paid. I find it a lit- need those dollars. Earth, and people are constantly try- tle ironic, but perhaps not surprising, Right now, it is estimated that $7.5 ing to destroy it, undo it—I shudder that efforts to get a couple of resolu- trillion is locked up in old investments; when I hear some of my colleagues tions on the floor to approve or have in other words, in companies that wanting to undo what the greatest as- the Senate go on record that the Amer- maybe are not as efficient as new com- semblage of minds ever assembled ican taxpayer, the American family, panies, old products that could be re- under one roof did to bring this all the American working people need tax placed by new, because of penalties of about. relief—we tried to get just a resolution taking your money out of one invest- What do they want to do? Make it approved under a unanimous-consent ment to put into another, and the Gov- impossible to raise taxes because the agreement, but it was denied. ernment is standing there to grab a rich would have to pay. I am not going Many talk about tax relief. The only majority of it. In other words, people to be caught voting to cut Medicare problem is there are many more in this cannot afford to take it out of one in- and welfare and Medicaid and have body who talk against tax relief. I have vestment because the Government is somebody come to me and say, ‘‘Did been a strong supporter of family tax going to confiscate a large part of that. you use it for balancing the budget?’’ relief, and I have been the author and So those investments remain locked No. have supported for the last 4 years an up. What we are saying is cap gains ‘‘Did you use it for education, so that effort to get a $500-per-child tax credit would release a flood of new invest- everybody can have a college edu- across the board. That is not really ments into new jobs, new companies, cation?’’ enough, because when you look at how new products; it would expand the No. we support families and children, if we economy, it would provide new reve- ‘‘Did you put it into housing? The en- kept pace—and a lot of you just looked nues. vironment?’’ at your 1040 forms, 1040EZ forms, and I know my time is going to run out, No. you found out for every dependent you but let me talk quickly about tax cuts. S3194 CONGRESSIONAL RECORD — SENATE April 15, 1997 We always hear these charges of where dollar. Somehow, you are going to hear you have a company, maybe you have a did the deficit go wrong, and they all from this body that we cannot live painting service or lawn service—I used go back and blame it on Ronald Reagan with 99 cents on the dollar, but you, as to have a janitor service when I was in in 1981. He said, ‘‘Let’s have some tax taxpayers, sure can give it all up. college—if you are self-employed, sin- relief for Americans,’’ and he pushed Somehow you can make the sacrifice, gle, and you have taxable income at through a tax relief package. During tighten your belt, spend less on your $25,000, most people would not cat- 1981 to 1990, revenues to the Federal children, education, food, clothing, egorize you as rich. But according to Government nearly doubled. They in- shelter, homes, maybe a night out for Government sources, you must be, be- creased 99.4 percent—99.4 percent—but pizza, but do not let Congress take one cause the Government wants half of ev- that was not enough because this Con- penny on the dollar less than what erything you make. gress spent 112 percent. They spent far they want to spend. By the way, that If a person has a taxable income at exceeding even the growth in the reve- would not even be enough. $25,000, their marginal income tax nues. The support for taxes, I still sup- bracket is 28 percent Federal income They say, and we have seen the port—let’s look at DC and the budget tax. That individual must also pay So- charts this morning, ‘‘Let’s look at in DC. cial Security taxes; if self-employed, he where the blame is; the blame is the The PRESIDING OFFICER. The Sen- pays 15.3 percent. Add that to the 28, Reagan-Bush administrations because ator’s time has expired. and that is 43.3 percent, and that is be- that is when the deficits went up, and Mr. GRAMS. I was going to wrap this fore they pay any State income tax. In let’s give all the credit to President up by saying the District of Columbia my State that is about 7 percent. Clinton because this is where the defi- has problems with their budget, and That means that person, that indi- cit is coming down.’’ what has been the proposed solution? vidual with taxable income of $25,000 Let’s retrace that. During the Give them tax relief. I think the whole pays 28 percent Federal income tax, Reagan-Bush administrations, who country has a serious problem, tax- 15.3 percent FICA tax, unemployment controlled the purse strings? Who was payers have a problem, just like what tax, Social Security, Medicare tax. You in control of Congress? I don’t want to is facing Washington, DC, and I think add the two together and get 43.3, add throw stones, but I think everybody they need tax relief as well. State income tax and, bingo, that per- knows. It was controlled by Democrats. Thank you, Madam President. I yield son is taxed at over 50 percent, and any Who controlled spending? Ronald the floor. additional dollar they make is going to Reagan suggested and was able to get Mr. NICKLES addressed the Chair. Government. through tax relief under the premise The PRESIDING OFFICER. The Sen- I think that is too high. I do not that for every $1 in tax relief, there ator from Oklahoma. think Government is entitled to take would be a $2 reduction in spending. Mr. NICKLES. Madam President, over half of what they make. They are But once the revenues came in, the first, I wish to compliment and con- the ones creating the work. They are eyes got big and people just could not gratulate my colleague from Min- the ones doing the job. They are the resist being the good guy on the block nesota for an outstanding statement on ones putting in the labor, the sweat, and taking your money and spending really the need for tax relief. Today is the equity, the homework, the edu- it. In fact, they spent it so fast they tax day. Today is the day that thou- cation necessary to create the job, cre- even outspent a rapidly growing econ- sands of Americans will be running to ate the service, and Government is omy. the post office trying to make sure coming in saying they want half of it. Who was to blame? It was not Reagan they get their taxes filed on time. If it is a couple and their taxable in- or Bush, it was the democratically con- In my household, it is not a pleasant come is $40,000, they are in the same 50- trolled Congress spending the dollars. time. My wife and I have been married percent tax bracket. Let’s look at the last 4 years. They 28-plus years, and this is always the I think that is too high. I think es- say in the last 4 years, deficits have ac- time where we are scrambling around tate taxes are high. My colleague said tually gone down. From 1993 to 1995, to make sure we find all the charitable that is cutting taxes for the wealthy. they went down because Bill Clinton contributions, make sure we get all the You can have a taxable estate of $1 got through the largest tax increase in 1099’s, make sure we get all the forms million, and Uncle Sam says they want history. Again, who passed it? It was together, and it is not pleasant, it is 39 percent. Why in the world, if a per- Congress who passed it, and that was not easy, it is not something we look son accumulates a couple of res- controlled by the Democrats. So we did forward to. taurants, maybe two or three res- have deficit reduction but, again, be- I heard my friend and colleague from taurants, and they happen to have an cause of tax increases. In fact, this Arkansas say he does not mind one bit estate value of $1.6 million—we have a Congress has raised taxes once on aver- the amount of money he pays in taxes. $600,000 exemption, so he has two or age every 22 months. I will say, as a taxpayer, I mind. I will three restaurants and their value is The last 2 years, under a Republican say a lot of taxes are unfair and a lot worth, say, $2 million, why should controlled Congress, deficits continued of taxes are very counterproductive to Uncle Sam say it wants 40 percent of to go down, but because of reductions individual freedom. As a matter of it? What did Uncle Sam do to generate in spending. fact, a lot of taxes actually suffocate those businesses? Why should it be en- Here we have a difference in philoso- an individual’s ability to expand, to titled to 40 percent? phy. We could balance the budget if we grow, to work for yourself, to take care Or if you have a taxable estate of $3 take 80 percent of everything you of your family. million, Uncle Sam wants 55 percent of make. We can probably balance the I will give you a couple of examples that estate. Again, it could be a farm, budget and still increase spending, but and one of the reasons why this Sen- ranch, machine job, it could be a res- it would come out of somebody’s pock- ator favors very much balancing the taurant, it could be any type of busi- et. I don’t know, it does not seem to budget but also, likewise, cutting taxes ness. Why should the Government make sense. In a recent USA/CNN poll, for families, particularly working fam- come in and say, ‘‘We want over half’’? 70 percent of Americans said they ilies, making some changes in estate What did Government do to create wanted tax relief, meaningful tax re- taxes as outlined by my colleague, Sen- those jobs, that business? I disagree. lief. Not this give-and-take, smoke- ator GRAMS, and making some changes That tax is unfair. It needs to be and-mirrors, a little bit here, little bit in capital gains. Let’s touch on a cou- changed. I think it is counter- there, targeted what you believe as tax ple of examples. productive. I do not think it raises relief, not what they believe you I heard my colleague from Arkansas money. should have but what you believe you say, ‘‘Well, they’re cutting taxes for I think when you get into marginal should have. the wealthy.’’ You do not have to be rates, over half of the people find ways Let’s look at 5 years. The Govern- very wealthy, and all of a sudden you to avoid taxes. They will come up with ment is going to take $8.6 trillion from are working for the Government more schemes. They will come up with you over the next 5 years, and we are than you are working for yourself. If scams. They will do different scams. asking in tax relief one penny on every you are a self-employed individual and They do not want the Government to April 15, 1997 CONGRESSIONAL RECORD — SENATE S3195 get over half of what they make. They pretation of the history, purpose, and pendent person. Documents released by work to get it down. requirements of the independent coun- the White House prove conclusively We should change rates. When we sel law. that the fundraising by the President’s change rates, my colleague from Min- Ms. Reno states that the act ‘‘does reelection campaign and by the DNC nesota mentioned, when we lower that not permit’’ invoking the independent was run, on a day-to-day, hands-on tax on transactions, there are more counsel provisions unless there is ‘‘spe- basis by the President, himself, and his transactions, and the Government cific and credible evidence that a crime direct subordinate, Deputy Chief of makes more money. A lot of people are may have been committed by’’ a person Staff Harold Ickes. The DNC took or- sitting on a lot of transactions. They covered by the law. In fact, the law re- ders directly from the President would like to sell this land for that, quires that it be invoked whenever through Mr. Ickes. And the President and buy this land, or sell this stock there is ‘‘information sufficient to con- and the Vice President and the First and buy that stock, but they do not stitute grounds to investigate’’ wheth- Lady were directly and substantially want to if Uncle Sam says, ‘‘We want 28 er any person covered by the law may involved in all fundraising activities by percent for that exchange.’’ If you re- have violated Federal law. In short, the Clinton-Gore campaign and by the duce the tax on that exchange, capital even though General Reno acknowl- DNC, which was raising not soft gains, you will have a lot more trading, edges that there are ‘‘sufficient money, but money that was raised for a lot more buying and selling, and Gov- grounds to investigate,’’ and even the purpose and used directly to fuel ernment will make money on the though that investigation is ongoing as the President’s reelection drive. transactions. The Government does not I speak, she insists on controlling the The Attorney General seems to feel make money if people sit on the assets investigation herself. that some of the laws implicated by and do not trade the assets. There remains no conceivable room these practices may not or should not The point is, we can reduce the rates for doubt that the Clinton administra- be prosecuted. But that prosecutorial and generate more money for the Fed- tion, the Clinton-Gore campaign, and decision must not be made by someone eral Government, and, I think, create a the Democratic National Committee who owes her position in Government healthier, more stable economy. engaged in fundraising practices that to the official who may have possibly So, Madam President, I make this must be investigated. Virtually every violated those laws. It does not answer statement urging my colleagues that editorial page in the Nation, from the this concern for the Attorney General this is the year that we can balance the Wall Street Journal to the New York to state that she is relying on career budget and provide tax relief for Amer- Times, have demanded an investiga- officials in the Department of Justice. ican families. It should be a done deal. tion. Indeed, even the highest officials As long as they are reporting to her, President Clinton campaigned for tax at the DNC have acknowledged that they are reporting to the President. relief in 1992. He did not deliver. Actu- their practices were questionable and She may not independently investigate ally he delivered just the opposite. In have agreed to return over $3 million in the conduct of President Clinton any 1993, he passed the largest tax increase contributions from foreign nationals, more than Attorney General Mitchell in history. In 1996, President Clinton persons who gave contributions in the could investigate President Nixon or campaigned for tax relief. Bob Dole, names of others, and contributions Attorney General Meese could inves- the Republican candidate, campaigned that may have come from foreign gov- tigate President Reagan. for tax relief. Both said they favored a ernments. And serious questions exist I am not prejudging the results of the $500-tax-credit per child. You would as to the use of Government property investigation which must be conducted think that would be a done deal. We to solicit contributions and reward into these matters. But I know that passed that last year in the last Con- contributors. the practices that must be investigated gress. President Clinton, unfortu- The Vice President has admitted that may have violated Federal criminal nately, vetoed it. You think it would he made numerous telephone calls laws, and that those violations may be a done deal and now it would hap- from his official office using a Clinton- have been encouraged, inspired, di- pen. I am not so sure everybody on the Gore campaign card to raise funds for rected, or condoned by the President or other side is willing to do that. Hope- the purpose of furthering the Clinton- his immediate subordinates. The peo- fully the President will. Gore reelection campaign. Several of ple of the United States are entitled to I want to work with the President. I the recipients of those calls said that a prompt, full, fair, and independent in- want it to become law. I do not have an they felt pressured to contribute be- vestigation of these matters, and that interest in passing a tax bill just to cause they had ongoing business with investigation cannot be controlled by a have it vetoed. I want to pass a tax re- the Government. Other telephone call person who serves at the pleasure of lief package this year that includes re- recipients perceived these calls as con- the President. lief for American working families, stituting a shakedown. When a charge f that includes a reduction in capital was recently aired that a prominent gains, that includes estate tax relief, Member of Congress had pressured a TAX RELIEF, TAX REFORM, AND that includes incentives to save, IRAs, potential contributor, a Federal grand IRS REFORM saving for retirement and education, I jury investigation was launched within Mr. CRAIG. Mr. President, an esti- want to pass that and have it become days of the allegation. Shouldn’t the mated 30 million taxpayers will file law. Vice President, or the President, who their Federal income tax returns We look forward to working with the had pointedly not denied making fund- today. They will be among the more President and other Members in this raising calls from his office, be inves- than 100 million households filing re- body to pass a bipartisan package that tigated as well? turns so far this year. can actually reduce taxpayers’ taxes The purpose of the independent coun- Most of these households do not have this year. sel law is to entrust the investigation charitable feelings about the process to Madam President, I ask unanimous of these matters to someone who is not which their Government has just sub- consent for an additional 5 minutes. a subordinate of the official or officials jected them. The PRESIDING OFFICER. Without being investigated. Yet General Reno Today, tax day, is the right day to objection, it is so ordered. refuses to invoke the independent call for tax relief, tax reform, and re- f counsel law until she is satisfied that form of the Internal Revenue Service. laws have, in fact, been broken. That The Tax Foundation has announced GENERAL RENO’S ACTIONS UNDER decision is not hers to make. That in- today that tax freedom day for 1997 THE INDEPENDENT COUNSEL LAW terpretation stands the law on its head. will be May 9—128 days into the year Mr. NICKLES. Madam President, At- It is impossible to defend the propo- and later than it has ever been in our torney General Janet Reno’s refusal to sition, as the Attorney General at- taxpaying history. appoint an independent counsel to in- tempts to do, that covered persons are Mr. President, our colleague, the sen- vestigate the Clinton administration’s not implicated in the investigation ior Senator from West Virginia [Mr. highly questionable fundraising activi- that she is presently conducting and BYRD], is a student of classical history. ties is based upon a shocking misinter- which should be conducted by an inde- I read recently that subjects in some of S3196 CONGRESSIONAL RECORD — SENATE April 15, 1997 the outer provinces of the Roman Em- An ever-growing Federal Govern- No people can remain free, or their pire stirred up civil unrest when ment, with its voracious appetite for government effective, if they do not Roman plus local taxation reached an taxpayers’ hard-earned dollars, has led display trust and confidence in each estimated 25 percent of their income. Congresses dominated for decades by other. Today, the typical American family tax-and-spend liberals to expand the Yet America’s tax system increas- of four pays 38 percent of its income in powers of the Internal Revenue Service ingly eats like a corrosive acid at these taxes at all levels—working 3 hours of and allow the agency to ignore the due very bonds of support and legitimacy. every 8-hour day just to pay taxes. process of law protections to which I am committed to the three-step Tax-and-spend liberals don’t like it American citizens otherwise have been program necessary to restore fairness when taxpayers are reminded that it is entitled. to the tax system and trust to the peo- the taxpayer’s money—not the Govern- Americans expect to enjoy due proc- ple: ment’s —that is taken in taxes. ess of the law as one of their fundamen- Pro-family, pro-growth tax relief; a I continue to support reasonable, fair tal rights. But that’s not the case when simpler, fairer, flatter Tax Code; and tax relief that is pro-family and pro- you’re dealing with the IRS. reform for the tax collector, increasing economic growth. Most of the time, if a criminal sus- accountability and requiring the IRS Among other efforts, today, I am pect is not publicly attracting the at- to treat the taxpayer with dignity, re- joining again as an original cosponsor, tention of a law enforcement officer, no spect, and due process of the law. with Senator ASHCROFT, of the Work- one from the government—from the f ing Americans Wage Restoration Act. FBI to the local sheriff—can search STUDY ON TAX CONTRIBUTIONS American wage-earners are double their home or seize their property OF IMMIGRANTS taxed. They pay Social Security taxes without a warrant from an impartial Mr. KENNEDY. As tax day is here, it and income taxes twice on the same court, based upon a showing of prob- is worth considering the contributions wages. The least they deserve to an able cause. of legal immigrants to Uncle Sam. above-the-line deduction against their But if the IRS thinks someone has A new study by the Library of Con- income taxes for the taxes they pay underpaid their taxes, it can seize cars gress highlights the extraordinary into Social Security. and freeze bank accounts on its own level of Federal taxes paid by legal im- Too often within government, com- authority—without obtaining any kind migrants. Recent immigrants—includ- mon sense is the least common kind of of impartial, prior approval. ing both those who have not yet natu- sense. It can consider the taxpayer guilty ralized and those who have become The Ashcroft-Craig bill would be one until proven innocent. It can impose citizens—paid an estimated $55 billion important step in the right direction. costly penalties until the taxpayer— in Federal income taxes in 1995. With- American workers and their families sometimes after years of court pro- out immigration, the Government need tax relief as soon as we can enact ceedings—conclusively proves they did would have had $55 billion less to pay it. They are also clamoring for fun- nothing wrong. for key services or deficit reduction. damental tax reform. So-called ‘‘horror stories’’ about the We have long known of the major Compliance with the current Federal IRS are multiplying. Sometimes the contributions of immigrants in devel- income tax system costs 5.4 billion problem is brought on by a Tax Code oping innovative technologies, creating hours a year and $200 billion—$700 for that is too complicated even for the jobs for American workers, vitalizing every man, woman, and child in Amer- IRS to understand. Sometimes the our inner cities, serving in our Armed ica. problem is with IRS agents who act Forces, and in many other ways. But The IRS publishes 480 different tax outside the law. And sometimes, it this report also shows that immigrants forms, and another 280 forms to explain happens when IRS officials push to the pay their way in Federal taxes. the first 480 forms. limit the legal powers they’ve been The $55 billion that recent immi- If laid end-to-end, the 8 billion pages granted by past Congresses and Presi- grants contributed is almost three of instructions sent out by the IRS dents. In any case, there’s never an ex- times what the Federal Government every year would circle the Earth 28 cuse for such behavior. will spend this year on law enforce- times. Congress is now investigating these ment to deal with crime. It is twice The Internal Revenue Code is too incidents. We are working to make the what the Federal Government will in- complex, produces arbitrary results, IRS more accountable and the process vest in education. It is nine times the and is far too involved in social engi- fairer. budget of the Environmental Protec- neering. One of these efforts will take a major tion Agency. It is costing the Government the step closer to becoming law today—S. Often in recent years, Congress has trust and confidence of the American 522, the ‘‘anti-snooping’’ bill introduced been too quick to engage in immi- people. by Senator COVERDELL. I am proud to grant-bashing, or too slow to recognize That’s why Senator SHELBY and I be a cosponsor. the immense contributions of immi- will reintroduce the Freedom and Fair- This bill will clamp down on rogue grants to the Nation’s heritage and his- ness Restoration Act—the flat tax IRS agents and put a stop to the unau- tory. Studies like this help to redress bill—in the coming weeks. thorized inspection of taxpayers’ infor- the balance, by demonstrating the con- Our bill would create a single, flat, mation. Years into the age of the com- tinuing important role of immigration tax rate of 17 percent. Families of mod- puter, this is overdue. Absolute power in our modern society. est and middle-class means would be corrupts absolutely. f protected—by a personal exemption Congress never should have granted amounting to $33,800 for a family of powers to the IRS that allow it—that, THE VERY BAD DEBT BOXSCORE four. in fact, have encouraged it—to trample Mr. HELMS. Mr. President, at the A fair, flat tax system would reward the due process rights that all Ameri- close of business yesterday, Monday, work, promote savings and economic cans should enjoy. April 14, 1997, the Federal debt stood at growth, and increase willing compli- Criminal activity by individual, $5,378,600,468,556.80. (Five trillion, three ance with the law. As much as Ameri- rogue IRS agents should not be hidden hundred seventy-eight billion, six hun- cans distrust the tax laws, they fear behind a shield of sovereign immunity. dred million, four hundred sixty-eight the tax collector who enforces them. We will pass the anti-snooping bill thousand, five hundred fifty-six dollars Small wonder: Drug dealers, child today. It is one small part of a larger and eighty cents.) molesters, and organized crime hit men reform package that still needs to be Five years ago, April 14, 1992, the have more legal rights than an average passed. Federal debt stood at $3,895,238,000,000. taxpayer whom the IRS suspects of Many of the other needed reforms are (Three trillion, eight hundred ninety- underpaying his or her taxes. included in another of Senator five billion, two hundred thirty-eight Blatant disregard for individuals’ COVERDELL’s bills, S. 365, the IRS Ac- million.) rights has all been in pursuit of one countability Act. I am also proud to be Ten years ago, April 14, 1987, the Fed- goal: Get the money. a cosponsor of that bill, as well. eral debt stood at $2,280,863,000,000. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3197 (Two trillion, two hundred eighty bil- intended by Congress to preclude its Pan Am 103 over Lockerbie, Scotland, lion, eight hundred sixty-three mil- application in such circumstances. in December 1988. lion.) Rather, all that was intended was that I thank my colleague for taking up Fifteen years ago, April 14, 1982, the either the victim or the claimant be this issue and urge immediate passage Federal debt stood at $1,063,287,000,000. U.S. a national in order for foreign sov- so that justice can be achieved for sev- (One trillion, sixty-three billion, two ereign immunity not to apply, permit- eral of the families of Pan Am 103, and hundred eighty-seven million.) ting a claim to go forward. all future victims of state-sponsored Twenty-five years ago, April 14, 1972, The legislation we are introducing terrorism. the Federal debt stood at today corrects this ambiguity, by I yield the floor and I suggest the ab- $430,716,000,000 (four hundred thirty bil- amending the law to apply foreign sov- sence of a quorum. lion, seven hundred sixteen million) ereign immunity, and thus bar the The PRESIDING OFFICER. The which reflects a debt increase of nearly claim if ‘‘neither the claimant nor the clerk will call the roll. $5 trillion—$4,947,884,468,556.80 (four victim was a national of the United The assistant legislative clerk pro- trillion, nine hundred forty-seven bil- States.’’ It is only right that we should ceeded to call. lion, eight hundred eighty-four million, do this. Mr. NICKLES. Madam President, I four hundred sixty-eight thousand, five Companion legislation, H.R. 1225, has ask unanimous consent that the order hundred fifty-six dollars and eighty been introduced in the other body by for the quorum call be rescinded. cents) during the past 25 years. Representatives HYDE and CONYERS, The PRESIDING OFFICER. Without f the distinguished chairman and rank- objection, it is so ordered. JURISDICTION FOR LAWSUITS ing member of the House Judiciary f AGAINST TERRORIST STATES Committee. It is my hope that my col- leagues will join us in a bipartisan ef- MESSAGES FROM THE PRESIDENT Mr. HATCH. Mr. President, I have in- fort to pass this legislation quickly. troduced legislation to make a tech- Messages from the President of the Madam President, I ask unanimous United States were communicated to nical correction to the provision of the consent that the text of the bill be Antiterrorism and Effective Death the Senate by Mr. Williams, one of his printed in the RECORD following my re- secretaries. Penalty Act of 1996, which provided a marks. limited exception to the Foreign Sov- There being no objection, the bill was EXECUTIVE MESSAGES REFERRED ereign Immunity Act, allowing U.S. ordered to be printed in the RECORD, as As in executive session the Presiding courts to hear claims by American vic- follows: Officer laid before the Senate messages from the President of the United tims of foreign terrorism against the S. 568 lawless governments that sponsored States submitting sundry nominations Be it enacted by the Senate and House of Rep- which were referred to the appropriate the terrorist act. I am pleased to be resentatives of the United States of America in joined by Senator MACK, Senator KEN- Congress assembled, That effective with re- committees. NEDY, Senator D’AMATO, and Senator spect to any cause of action arising, before, (The nominations received today are MOYNIHAN in introducing this bill. on, or after the date of the enactment of this printed at the end of the Senate pro- Nearly a year ago, when we passed Act, section 1605(a)(7)(B)(ii) of title 28, Unit- ceedings.) ed States Code, is amended by striking ‘‘the the landmark Antiterrorism and Effec- f tive Death Penalty Act, Congress took claimant or victim was not’’ and inserting the important step of ensuring that ‘‘neither the claimant nor the victim was’’. REPORT RELATIVE TO DUTY-FREE Americans who are harmed by foreign Mr. D’AMATO. Mr. President, I rise TREATMENT—MESSAGE FROM governments committing or directing in support of the bill offered by the THE PRESIDENT—PM 29 terrorists acts can sue those govern- chairman of the Judiciary Committee that will correct a drafting error in the The PRESIDING OFFICER laid be- ments in American courts. Congress fore the Senate the following message did this by amending the Foreign Sov- Antiterrorism and Effective Death Penalty Act of 1996, thereby removing from the President of the United ereign Immunity Act, which generally States, together with an accompanying bars claims against foreign govern- an impediment that would have re- stricted U.S. victims or their U.S. sur- report; which was referred to the Com- ments, to provide that the FSIA does mittee on Finance. not preempt claims for personal injury vivors to sue a country, designated by or death by the victims and survivors the Department of State, that spon- To the Congress of the United States: of terrorist acts committed by certified sored the terrorist act which caused The Generalized System of Pref- terrorist states. Thus, lawless nations the death. erences (GSP) program offers duty-free no longer are able to hide their terror- The Antiterrorism Act contained treatment to specified products that ist acts behind the rules of inter- provisions that limited the jurisdic- are imported from designated develop- national law that they otherwise tional immunities of foreign states, ing countries. The program is author- flaunt. particularly those countries that spon- ized by title V of the Trade Act of 1974, It has come to our attention, how- sored acts of terrorism. It was intended as amended. ever, that a particular phrase in this that a victim of terrorism who is an Pursuant to title V, I have deter- law puts at risk, for a small class of in- American national, or their American mined that Argentina fails to provide tended claimants, the right to be heard survivors, would not be barred from fil- adequate and effective means under its in court. ing a claim against a country that laws for foreign nationals to secure, to As enacted, the law provides that a sponsored the terrorist act. Unfortu- exercise, and to enforce exclusive claim must be dismissed if ‘‘the claim- nately, as drafted, it was not clear that rights in intellectual property. As a re- ant or the victim was not a national of Congress intended this right of action sult, I have determined to withdraw the United States’’ when the terrorist to be available to victims who are benefits for 50 percent (approximately act occurred. There is substantial con- American as well as survivors who are $260 million) of Argentina’s exports cern that this phrase may be inter- American, even if the victim who per- under the GSP program. The products preted by the courts to require that ished was not a U.S. citizen. subject to removal include chemicals, both the victim and the claimant be Countries, designated by the Depart- certain metals and metal products, a U.S. nationals. As a result, several ment of State, that sponsor terrorism variety of manufactured products, and American claimants against Libya for should be subject to civil suits by the several agricultural items (raw cane the bombing of Pan Am Flight 103 victim or their surviving families. This sugar, garlic, fish, milk protein con- could be barred from bringing an ac- right of action should be available centrates, and anchovies). tion because their spouses, who were whether the victim was American or This notice is submitted in accord- killed in the attack, were British sub- the survivor was American. ance with the requirements of title V jects. This clarification should allow for of the Trade Act of 1974. Notably, the amendment to the For- the suit of an American citizen whose WILLIAM J. CLINTON. eign Sovereign Immunity Act was not spouse perished in the destruction of THE WHITE HOUSE, April 11, 1997. S3198 CONGRESSIONAL RECORD — SENATE April 15, 1997 MESSAGES FROM THE HOUSE EC–1516. A communication from the Ad- mitting, pursuant to law, the report of the ministrator of the Farm Service Agency, De- list of General Accounting Office reports and ENROLLED BILL SIGNED partment of Agriculture, transmitting, pur- testimony for February 1997; to the Commit- At 12:11 p.m., a message from the suant to law, a rule entitled ‘‘Special Com- tee on Governmental Affairs. House of Representatives, delivered by binations for Flue-Cured Tobacco Allot- EC 1530. A communication from the Presi- Mr. Hays, one of its reading clerks, an- ments and Quotas’’ (RIN0560–AF14) received dent and Chief Executive Office of the Over- nounced that the Speaker has signed on March 31, 1997; to the Committee on Agri- seas Private Investment Corporation, trans- the following enrolled bill: culture, Nutrition, and Forestry. mitting, pursuant to law, the management EC–1517. A communication from the Gen- report for fiscal year 1996; to the Committee H.R. 785. An act to designate the J. Phil eral Sales manager and Vice President of the on Governmental Affairs. Campbell, Senior, Natural Resources Con- Commodity Credit Corporation, Foreign Ag- EC 1531. A communication from the Sec- servation Center. ricultural Service, Department of Agri- retary of the Panama Canal Commission, The enrolled bill was signed subse- culture, transmitting, pursuant to law, a re- transmitting, pursuant to law, the report of quently by the President pro tempore port relative to donations of surplus com- a rule relative to acquisition (RIN3207–AA30), modities; to the Committee on Agriculture, [Mr. THURMOND]. received on March 26, 1997; to the Committee Nutrition, and Forestry. of Armed Services. f EC–1518. A communication from the Acting EC 1532. A communication from the Sec- EXECUTIVE REPORTS OF Executive Director of the U.S. Commodity retary of the Panama Canal Commission, Futures Trading Commission, transmitting, COMMITTEES transmitting, a draft of proposed legislation pursuant to law, a rule received on April 7, to amend the Panama Canal Act; to the The following executive reports of 1997; to the Committee on Agriculture, Nu- Committee on Armed Services. committees were submitted: trition, and Forestry. EC 1533. A communication from the Direc- EC–1519. A communication from the Chair- By Mr. LUGAR, from the Committee on tor of the Office of Personnel Management, man and Chief Executive Officer of the Farm Agriculture, Nutrition, and Forestry: transmitting, pursuant to law, the report of Credit Administration, transmitting, pursu- a rule relative to demonstration projects, re- Ann Jorgenson, of Iowa, to be a member of ant to law, a rule entitled ‘‘Disclosure to the Farm Credit Administration Board, ceived on April 3, 1997; to the Committee on Shareholders’’ (RIN3052–AB62) received on Armed Services. Farm Credit Administration for a term ex- March 25, 1997; to the Committee on Agri- piring May 21, 2002. EC 1534. A communication from the Sec- culture, Nutrition, and Forestry. retary of the Army, transmitting, pursuant Lowell Lee Junkins, of Iowa, to be a mem- EC 1520. A communication from the Con- to law, a notification relative to program ber of the Board of Directors of the Federal gressional Review Coordinator of the Animal unit costs; to the Committee on Armed Serv- Agricultural Mortgage Corporation. and Plant Health Inspection Service, Depart- ices. ment of Agriculture, transmitting, pursuant (The above nominations were re- EC 1535. A communication from the De- to law, a rule entitled ‘‘Viruses, Serums, ported with the recommendation that fense Financing and Accounting Service, De- Toxins, and Analogous Products’’ received they be confirmed, subject to the nomi- partment of Defense, transmitting, pursuant on March 21, 1997; to the Committee on Agri- nees’ commitment to respond to re- to law, a cost comparison study; to the Com- culture, Nutrition, and Forestry. quests to appear and testify before any EC 1521. A communication from the Chair- mittee on Armed Services. EC 1536. A communication from the Dep- duly constituted committee of the Sen- man and Chief Executive Officer of the Farm ate.) Credit Administration, transmitting, pursu- uty Secretary of Defense, transmitting, pur- suant to law, the report on Parity of Pay for f ant to law, a rule entitled ‘‘Organization and Functions’’ (RIN3052–AB61) received on April Active and Reserve Component members, to EXECUTIVE AND OTHER 8, 1997; to the Committee on Agriculture, Nu- the Committee on Armed Services. EC 1537. A communication from the Assist- COMMUNICATIONS trition, and Forestry. EC 1522. A communication from the Presi- ant Secretary of Defense, transmitting, pur- The following communications were dent of the United States, transmitting, pur- suant to law, the report on the small busi- laid before the Senate, together with suant to law, a report relative to tele- ness loan program; to the Committee on accompanying papers, reports, and doc- communications services for the period June Armed Services. uments, which were referred as indi- 30, 1996 through December 31, 1996; to the EC 1538. A communication from the Assist- cated: Committee on Foreign Relations. ant Secretary of Defense (for Reserve Af- EC 1523. A communication from the Assist- fairs), transmitting, pursuant to law, the re- EC–1511. A communication from the Under ant of Defense (Health Affairs), transmit- port on the income insurance program; to Secretary of Agriculture for Rural Develop- ting, pursuant to law, a report relative to the Committee on Armed Services. ment, transmitting, pursuant to law, a rule medical care; to the Committee on Armed EC 1539. A communication from the Assist- entitled ‘‘Community Facilities Grants’’ Services. ant Secretary of Defense, (for Force Manage- (RIN0575–AC10) received on April 2, 1997; to EC 1524. A communication from the Execu- ment Policy), transmitting, pursuant to law, the Committee on Agriculture, Nutrition, tive Director of the Committee for Purchase the report on Military Permanent Medical and Forestry. from People Who Are Blind or Severely Dis- Nondeployables; to the Committee on Armed EC–1512. A communication from the Ad- abled, transmitting, pursuant to law, the re- Services. ministrator of the Agricultural Marketing port of additions to the Procurement List re- EC 1540. A communication from the Assist- Service, Department of Agriculture, trans- ceived on march 28, 1997; to the Committee ant Secretary of Defense, transmitting, pur- mitting, pursuant to law, a rule entitled on Governmental Affairs. suant to law, the report on health care costs; ‘‘Nectarines and Peaches Grown in Califor- EC 1525. A communication from the Gen- to the Committee on Armed Services. nia’’ (FV–96–916–3 IFR) received on April 2, eral Counsel of the Federal Retirement EC 1541. A communication from the Under 1997; to the Committee on Agriculture, Nu- Thrift Investment Board, transmitting, pur- Secretary of Defense (for Industrial Affairs trition, and Forestry. suant to law, a rule relative to death bene- and Installations), transmitting, pursuant to EC–1513. A communication from the Ad- fits received on March 25, 1997; to the Com- law, a report on Commercial Activities; to ministrator of the Agricultural Marketing mittee on Governmental Affairs. the Committee on Armed Services. Service, Department of Agriculture, trans- EC 1526. A communication from the Direc- EC 1542. A communication from the Direc- mitting, pursuant to law, a rule entitled tor of the U.S. Office of Personnel Manage- tor of Defense Procurement, Office of the ‘‘Amendments to the Perishable Agricultural ment, transmitting, pursuant to law, a rule Under Secretary of Defense, transmitting, Commodities Act’’ (RIN0581–AB41) received entitled ‘‘Cost-of-Living Allowances’’ pursuant to law, the report of a rule relative on March 31, 1997; to the Committee on Agri- (RIN3206–AH07) received on March 25, 1997; to to Defense Federal Acquisition Regulation culture, Nutrition, and Forestry. the Committee on Governmental Affairs. Supplement, received on April 8, 1997; to the EC–1514. A communication from the Ad- EC 1527. A communication from the Direc- Committee on Armed Services. ministrator of the Agricultural Marketing tor of the Office of the Secretary of Defense, EC 1543. A communication from the Chief, Service, Department of Agriculture, trans- transmitting, pursuant to law, a rule enti- Programs and Legislative Division, Office of mitting, pursuant to law, a rule entitled tled ‘‘The Air Force Privacy Act Program’’ Legislative Liaison, Department of the Air ‘‘Popcorn Promotion, Research, and received on March 25, 1997; to the Committee Force, Department of Defense, transmitting, Consumer Information Order’’ (FV–96–709FR) on Governmental Affairs. pursuant to law, a cost comparison study received on March 21, 1997; to the Committee EC 1528. A communication from the Direc- relative to Laughlin Air Force Base (AFB), on Agriculture, Nutrition, and Forestry. tor of the U.S. Office of Government Ethics, Texas; to the Committee on Armed Services. EC–1515. A communication from the Ad- transmitting, pursuant to law, a rule enti- EC 1544. A communication from the Dep- ministrator of the Farm Service Agency, De- tled ‘‘Post-Employment Conflict of Interest uty Secretary of Defense, transmitting, pur- partment of Agriculture, transmitting, pur- Restrictions’’ (RIN3209–AA07) received on suant to law, the report concerning the ad- suant to law, a rule entitled ‘‘Farm Credit’’ March 24, 1997; to the Committee on Govern- ministration of veterans’ preference require- (RIN0560–AE87) received on March 27, 1997; to mental Affairs. ments; to the Committee on Armed Services the Committee on Agriculture, Nutrition, EC 1529. A communication from the Comp- EC 1545. A communication from the Sec- and Forestry. troller General of the United States, trans- retary of Defense, transmitting, pursuant to April 15, 1997 CONGRESSIONAL RECORD — SENATE S3199 law, the report on the effects of mergers and health insurance costs of self-employed indi- By Mr. MOYNIHAN (for himself, Mr. acquisitions; to the Committee on Armed viduals; to the Committee on Finance. LAUTENBERG, Mr. LIEBERMAN, Mr. Services. By Mr. LEVIN (for himself and Mr. CHAFEE, Mr. SMITH, Mrs. BOXER, Mr. EC–1546. A communication from the Assist- MCCAIN): WYDEN, Mr. BYRD, Mr. KENNEDY, Mr. ant Secretary of Defense (for Health Affairs S. 576. A bill to amend the Internal Reve- INOUYE, Mr. ROTH, Mr. BIDEN, Mr. and Reserve Affairs), transmitting jointly, nue Code of 1986 to provide that corporate LEAHY, Mr. SARBANES, Mr. DODD, Mr. pursuant to law, the report on the means of tax benefits from stock option compensation D’AMATO, Mr. SPECTER, Mr. KERRY, improving the provision of uniform and con- expenses are allowed only to the extent such Mr. ROCKEFELLER, Ms. MIKULSKI, Mr. sistent medical and dental care to the mem- expenses are included in corporate accounts; JEFFORDS, Mr. AKAKA, Mrs. FEIN- bers of the reserve components serving on to the Committee on Finance. STEIN, Mr. GREGG, Ms. MOSELEY- active duty; to the Committee on Armed By Mr. GLENN (for himself and Mr. BRAUN, Mrs. MURRAY, Ms. SNOWE, Mr. Services. LIEBERMAN): SANTORUM, Mr. DURBIN, Mr. EC–1547. A communication from the Direc- S. 577. A bill to increase the efficiency and TORRICELLI, Mr. REED, and Ms. COL- tor of Administration and Management, Of- effectiveness of the Federal Government, and LINS): fice of the Secretary of Defense, transmit- for other purposes; to the Committee on S. 586. A bill to reauthorize the Intermodal ting, pursuant to law, the report on printing Governmental Affairs. Surface Transportation Efficiency Act of and duplicating services; to the Committee By Mr. DASCHLE (for himself, Mr. 1991, and for other purposes; to the Commit- on Armed Services. HARKIN, Mr. HATCH, Mr. GRASSLEY, tee on Environment and Public Works. EC–1548. A communication from the Sec- Mr. ABRAHAM, Mr. REID, Mr. INOUYE, f retary of Defense, transmitting, pursuant to Mr. BAUCUS, Mr. CRAIG, Mr. law, the annual report for the National Secu- KEMPTHORNE, and Mr. THOMAS): SUBMISSION OF CONCURRENT AND rity Education Program; to the Committee S. 578. A bill to permit an individual to be SENATE RESOLUTIONS on Armed Services. treated by a health care practitioner with The following concurrent resolutions EC–1549. A communication from the Sec- any method of medical treatment such indi- retary of Defense, transmitting, pursuant to vidual requests, and for other purposes; to and Senate resolutions were read, and law, the report on the Reserve Forces Policy the Committee on Labor and Human Re- referred (or acted upon), as indicated: Board for fiscal year; to the Committee on sources. By Mr. LOTT (for himself, Mr. WYDEN, Armed Services. By Mr. ASHCROFT: Mr. REID, Mr. WELLSTONE, Mr. MUR- EC–1550. A communication from the Sec- S. 579. A bill to amend the Internal Reve- KOWSKI, and Mr. BRYAN): retary of Defense, transmitting, pursuant to nue Code of 1986 to allow a deduction for the S. Res. 72. A resolution to allow disabled law, the report on proposed obligations for old-age, survivors, and disability insurance persons or Senate employees seeking access weapons destruction and non-proliferation in taxes paid by employees and self-employed to the Senate floor the ability to bring what the former Soviet Union; to the Committee individuals, and for other purposes; to the supporting services are necessary for them on Armed Services. Committee on Finance. to execute their official duties; to the Com- EC–1551. A communication from the Gen- By Mr. SMITH of New Hampshire (for mittee on Rules and Administration. eral Counsel of the Department of Depart- himself, Mr. FAIRCLOTH, Mr. GRAMM, By Mr. LOTT: ment, transmitting, a draft of proposed legis- Mr. HATCH, and Mr. KYL): S. Res. 73. A resolution to declare the need lation to authorize a food cost based Basic S. 580. A bill to amend the Internal Reve- for tax relief for the American people and Allowance for Subsistence for enlisted mili- nue Code of 1986 to allow individuals to des- condemn the abuses of power and authority tary personnel; to the Committee on Armed ignate that up to 10 percent of their income committed by the Internal Revenue Service; Services. tax liability be used to reduce the national to the Committee on Finance. EC–1552. A communication from the Gen- debt, and to require spending reductions By Mr. DORGAN (for Mr. DASCHLE): eral Counsel of the Department of Depart- equal to the amounts so designated; to the S. Res. 74. A resolution to commend the ment, transmitting, a draft of proposed legis- Committee on Finance. budget deficit reduction and tax relief for lation to permit Service Secretaries to defer By Mr. DURBIN (for himself, Mr. working families that has occurred under the the retirement of Chaplains; to the Commit- LEAHY, Mrs. FEINSTEIN, and Mr. Clinton Administration and to urge the Re- publican Congressional majority to take up tee on Armed Services. TORRICELLI): EC–1553. A communication from the Gen- S. 581. A bill to amend section 49 of title 28, without delay a budget resolution, and for eral Counsel of the Department of Depart- United States Code, to limit the periods of other purposes; to the Committee on the ment, transmitting, a draft of proposed legis- service that a judge or justice may serve on Budget and the Committee on Governmental lation that address personnel, procurement, the division of the United States Court of Affairs, jointly, pursuant to the order of Au- policy and environmental concerns; to the Appeals for the District of Columbia to ap- gust 4, 1997, as modified by the order of April Committee on Armed Services. point independent counsels, and for other 11, 1986, with instructions that if one Com- mittee reports, the other Committee have f purposes; to the Committee on the Judici- ary. thirty days to report or be discharged. INTRODUCTION OF BILLS AND By Mr. BROWNBACK (for himself, Mr. f JOINT RESOLUTIONS DOMENICI, Mr. ROBERTS, and Mr. STATEMENTS ON INTRODUCED BINGAMAN): The following bills and joint resolu- BILLS AND JOINT RESOLUTIONS tions were introduced, read the first S. 582. A bill to deem as timely submitted certain written notices of intent under sec- By Mr. GRASSLEY (for himself, and second time by unanimous con- tion 8009(c)(1) of the Elementary and Second- Ms. MOSELEY-BRAUN, and Mr. sent, and referred as indicated: ary Education Act of 1965 for school year BURNS): By Mr. ALLARD: 1997–1998; to the Committee on Labor and S. 573. A bill to amend the Internal S. 572. A bill to amend the Internal Reve- Human Resources. Revenue Code of 1986 to allow an in- nue Code of 1986 to repeal restrictions on By Mr. GREGG: taxpayers having medical savings accounts; S. 583. A bill to change the date on which come tax deduction for student loan in- to the Committee on Finance. individual Federal income tax returns must terest payments; to the Committee on By Mr. GRASSLEY (for himself, Ms. be filed to the Nation’s Tax Freedom Day, Finance. MOSELEY-BRAUN, and Mr. BURNS): the day on which the country’s citizens no THE LOAN INTEREST FORGIVENESS FOR S. 573. A bill to amend the Internal Reve- longer work to pay taxes, and for other pur- EDUCATION ACT nue Code of 1986 to allow an income tax de- poses; to the Committee on Finance. Ms. MOSELEY-BRAUN. Mr. Presi- duction for student loan interest payments; By Mr. ABRAHAM: dent, I am pleased to join my distin- S. 584. A bill to amend the Internal Reve- to the Committee on Finance. guished colleague from Iowa, Senator By Mr. ABRAHAM (for himself and Mr. nue Code of 1986 to change the time for filing GRASSLEY, and my colleague from Mon- LEVIN): income tax returns from April 15 to the first S. 574. A bill to delay the application of the Tuesday in November, and for other pur- tana, Senator CONRAD BURNS, in intro- substantiation requirements to reimburse- poses; to the Committee on Finance. ducing S. 573, the Loan Interest For- ment arrangements of certain loggers; to the By Mr. DORGAN (for himself, Mr. giveness for Education Act, the LIFE Committee on Finance. DASCHLE, Mr. JOHNSON, and Mr. Act. One of the major forces driving By Mr. DURBIN (for himself, Mr. WELLSTONE): this bill is our growing concern that HAGEL, Mrs. MURRAY, Ms. SNOWE, Mr. S. 585. A bill to amend the Internal Reve- parents and students in this country HARKIN, Mr. ALLARD, Mr. JOHNSON, nue Code of 1986 to authorize the Secretary have access to a quality education Mrs. HUTCHISON, Mr. REID, Mr. SHEL- of the Treasury to abate the accrual of inter- without amassing enormous student BY, Mr. ROBERTS, Mr. BAUCUS, Mr. est on income tax underpayments by tax- KERREY, Mr. JEFFORDS, Mr. MACK, payers located in Presidentially declared dis- loan bills. Ms. COLLINS, and Mr. BIDEN): aster areas if the Secretary extends the time The cost of college has a direct im- S. 575. A bill to amend the Internal Reve- for filing returns and payment of tax for pact on access to college. The more tui- nue Code of 1986 to increase the deduction for such returns; to the Committee on Finance. tion goes up, the more students will be S3200 CONGRESSIONAL RECORD — SENATE April 15, 1997 priced out of their opportunity for the parents who can barely afford to make and pay higher Social Security taxes to American dream. Our country will suf- ends meet; parents who provide the ba- support us, the least that we could do, fer the loss of talent and training. We sics of life such as food, clothing, shel- Mr. President, is to provide them with cannot as a nation prepare for the 21st ter, and medical insurance for their a life-preserver. It is the ethical thing century by making it more difficult for children but do not make the extra in- to do and the right thing to do. This our children to access higher edu- come to save for college. Even if fami- life-preserver that I speak of, Mr. cation. lies could afford to save the money to President, is education. By supporting This Congress is working hard to pay for their children’s college edu- this educational initiative we are af- eliminate the Federal deficit. In part, cation, income tax liability of many fording members of this young genera- this is because we know that piling on families is not high enough to benefit tion and others a chance to arm them- more debt ultimately undermines the from the President’s proposal because selves with knowledge as well as en- ability of the generations that follow neither the $10,000 tax deduction nor hance their income potential. This is us to achieve the American dream, and $1,500 tax credit is refundable. very important because most econo- to do what we have done—live better Students whose parents are unable to mist agree that education produces than our parents. Mr. President, that is pay for college up front are generally substantial spillover, which simply why we are introducing this LIFE bill. the ones who rely more heavily on stu- means indirect effects, that will bene- It will do two things: encourage indi- dent loans to pay for college and fit society in general. Examples cited viduals to go to college, and reduce the should be given the same type of tax of such positive spillover effects in- cost of a college education. I believe relief as those that come from families clude a more efficient work force, very strongly, Mr. President, that the that can afford to finance the costs of lower unemployment rates, lower wel- way to achieve this dream is to ensure a college education from savings. That fare costs, and less crime. All of these that everyone who is in need of finan- is why the Loan Interest Forgiveness are issues that concern us greatly. Fur- cial assistance to attend an institution for Education Act, or the LIFE Act, thermore, an educated electorate is of higher learning has that oppor- helps not only to improve the life of said to foster a more responsive and ef- tunity. They should have the oppor- students who might not otherwise have fective government. So as you can see tunity, as we did, to pursue their the opportunity to attend college, it this bill is very timely. dreams. also helps to improve their life after This bill comes at a time when the It is absolutely essential that we con- graduation. These students generally cost of attending an institution of tinue to invest in our most important have an enormous burden of debt and higher learning has increased at a rate asset—our children. That is what the the interest costs impair their ability higher than inflation. In the 1980’s, for Loan Interest Forgiveness for Edu- to get started in life after college. New example, the cost of a year’s tuition at cation Act is all about. The bill will college graduates just beginning their a publicly supported college increased create a deduction for qualified student careers all too often have to pay a from $635 to $1,454, an increase of al- loan interest including expenses for in- higher percentage of their income in most 130 percent. And a year’s tuition terest paid on student loans used to educational loan bills than they do in at a private college increased from an pay postsecondary education expenses rent. average of $3,498 to $8,772, an increase such as tuition, books, room and board. I believe we should encourage indi- of 150 percent. A more recent figure can This bill is similar to provisions con- viduals who cannot afford to pay for be found in the state of Illinois where, tained in both the Republican and college to realize that education is a as of 1994, students at Northern Illinois Democratic leadership education bills, wise investment in their future. Al- University and Illinois State Univer- S. 1 and S. 12, and is also similar to a though some individuals must incur sity, both public institutions, were provision passed by Congress as part of substantial debt to complete their edu- paying nearly 96 percent more than the the 1995 Budget Reconciliation Act. cation, the Government should do their increase in the inflationary rate for As you may know, President Clinton part to make sure that these students that same year. The number of loans has proposed a bill to allow a $1,500 tax will not suffer because of this decision borrowed through the main Federal credit per year for the first 2 years of for the next 20 years of their lives. college loan programs rose by nearly 50 college or a $10,000 deduction per per- The Government uses the Tax Code percent since 1990, from 4,493,000 in 1990 son per year for qualified college tui- to help American families buy their to 6,672,000 in 1995. Rapid increases in tion expense. I am glad to see Presi- own homes. It is equally important to college tuition force today’s students dent Clinton focus on investing in edu- use the Tax Code to encourage higher to borrow much more than their prede- cation for the middle class because it is education. It is an investment in our cessors did, yet in 1986, the interest de- truly our only hope of remaining com- children, our economy and our future. duction for student loans was elimi- petitive in this global marketplace. If a child receives a college education, nated. However, I believe we should go even that person is much more likely to be I am working with the GAO, [Govern- further by investing in those working able to afford to purchase a home. The ment Accounting Office] to further in- parents too, who would otherwise not link between educational attainment vestigate why college tuition is rising be able to send their children to college and earnings is unquestionable. Statis- so rapidly, and what the Federal Gov- without loans. tics show that the average earnings of ernment can most appropriately do The median income for a family of the most educated Americans are 600 about this problem. One of the argu- four as reported by the Joint Commit- percent greater than that of the least ments against providing up front tax tee on Taxation in 1995 was $49,531. If educated Americans. The Department cuts to parents for the costs of edu- that household income was comprised of Labor estimates that, by the year cation is that tuition costs will in- entirely of wage or salary income and, 2000, more than half of all new jobs will crease to take into account the tax if that household filed a joint return require an education beyond high benefit given to parents. However, the claiming the standard deduction and school. As we move nearer to the 21st Loan Interest Forgiveness for Edu- four personal exemptions, the house- century and into an information-driven cation Act will not increase the cost of hold’s income tax liability would have economy, the gap between high school tuition because the benefit will be re- been $4,947 and a total payroll tax li- and college graduates is growing. A ceived after individuals have grad- ability of $7,578 resulting in a total tax college graduate in 1980 earned 43 per- uated. This bill will improve the life of liability of $12,525. When considering cent more per hour than a high school college graduates while at the same the tax liability and the limited in- graduate. By 1994, that had increased time encouraging them to pay back come of the median household family, to 73 percent. When we reduce access to their student loans. a large number of American families higher education, we reduce access to We must improve the accessibility of will not have the extra income to save the American Dream. education, so that all Americans may $80,000 for two children to go to college. Given the fact that many of the peo- receive a higher education, not just the This legislation will focus on those ple in the young generation are going wealthy elite. that do not have parents who can af- to be pushed into the ocean of respon- It is a critical matter in terms of the ford to save for college. Those working sibility to pay off our national debt, opportunities than this generation of April 15, 1997 CONGRESSIONAL RECORD — SENATE S3201 Americans will have to access and Unaware of the change in policy, the ers and the like, should enjoy the same maintain the American dream. The timber industry continued to use their tax benefits of deduction for health in- fact that Americans depend on people old accounting plan in violation of the surance premiums as corporations. being able to make a living and support new law. Many small logging oper- This is only simple fairness. themselves, and to reach as high as ations and loggers have now been as- If I work for a big company, they can their talents will take them, should sessed penalties and interest by the literally write off every penny of the not be hampered in any way by the IRS because of their violation of this cost of my health insurance that they limitation of availability of edu- obscure law. It should be noted that pay. However, if I happen to be a farm- cational opportunity because of costs. most of the timber industry was in line er in central Illinois, or a self-em- I know that I would not be in the with the new policy by tax year 1993 ployed woman in Chicago working at Senate today were it not for quality and continues to abide by the correct home at a computer, and I go to buy public education and the accessibility accounting procedure policies. None- health insurance, only 40 percent of the of affordable higher education. The theless, some loggers face fines of premiums could be deducted. That is Chicago Public Schools gave me a solid $20,000 or more. Mr. President, many unfair and it creates a real disadvan- foundation, and I was able to attend loggers in Michigan’s Upper Peninsula tage. We should encourage people to the University of Illinois and the Uni- earn less than $20,000 per year. take out health insurance. The best versity of Chicago in spite of the fact To add to the frustration, IRS head- way to encourage them to do it is to of that my parents were working-class quarters has stated that each district make it more affordable by providing people. I am committed to seeing that operation has the authority to decide full deductibility. In my State of Illi- the students of this generation and the effective date of the requirement nois there are over 400,000 people who those who follow them have even great- for accountable plans, and in other are self-employed who would benefit er opportunities than I have had. I am States, the IRS has decided to have an from this tax relief. In fact, over 3 mil- absolutely determined to ensure that effective date for this accounting pro- lion Americans who are self-employed the exploding cost of college does not cedure as it relates to the timber in- do not have health insurance. That rep- close the door to opportunity for them. dustry of January 1, 1993. The IRS of- resents 25 percent of the self-employed. Our generation has an absolute duty to fice in Michigan, however, will not That is a high percentage compared to keep the door open, and to preserve and agree to the January 1, 1993 date which other groups. enhance the opportunity for a better is being used in other parts of the So, what Senator HAGEL and I are life and the American dream for the country. Michigan is the only State in trying to do with our legislation is to 21st century. which the IRS will not accept this level the playing field, give them all Certainly this generation should not date. equal treatment and fair treatment. I have to bear a burdensome loan port- Mr. President, relief for these loggers think this tax relief could be worth folio when they graduate that keeps is long overdue, and today Senator $500 or $1,000 for somebody today who them from making other optimal eco- LEVIN joins with me to introduce legis- could deduct only 40 percent, but in the nomic choices. lation that will change the Tax Code So, Mr. President, I introduce this future could deduct 100 percent under and make permissible the qualified legislation. I send it to the desk, and I our legislation. logger reimbursement arrangement for encourage my colleagues to consider I thank my colleague for joining me loggers in any taxable year prior to cosponsorship of it. I hope that by tax in introducing this bill. It is supported January 1, 1993. It will also provide for day next year we are able to provide not only by the National Federation of those students who are going to college a refund or credit of any overpayment Independent Businesses, the National and have taken on loans the oppor- of tax accrued during these years. This Farm Bureau, the Pork Producers, the tunity to have some loan forgiveness correction is long overdue and I hope Corn Growers and the Farmers Union, once they graduate. for swift adoption during this session but also by the National Association of of Congress. Women Business Owners. Between 1987 By Mr. ABRAHAM (for himself and 1996 the number of women-owned By Mr. DURBIN (for himself, Mr. and Mr. LEVIN): businesses increased by 78 percent, and S. 574. A bill to delay the application HAGEL, Mrs. MURRAY, Ms. about 80 percent of these are individual of the substantiation requirements to SNOWE, Mr. HARKIN, Mr. AL- proprietorships. reimbursement arrangements of cer- LARD, Mr. JOHNSON, Mrs. I think this is an issue whose time tain loggers; to the Committee on Fi- HUTCHISON, Mr. REID, Mr. SHEL- has come. I have spoken to many of my nance. BY, Mr. ROBERTS, Mr. BAUCUS, colleagues and they believe that is the TAX RELIEF FOR MICHIGAN LOGGERS Mr. KERREY, Mr. JEFFORDS, Mr. case, too. I hope we can work as part of Mr. ABRAHAM. Mr. President, April MACK, Ms. COLLINS, and Mr. any budget agreement to include this 15 is a day that generally is viewed BIDEN): provision. S. 575. A bill to amend the Internal with consternation throughout the Mr. President, I ask unanimous con- Revenue Code of 1986 to increase the Unided States. For many loggers in sent that the text of the bill be printed deduction for health insurance costs of Michigan’s Upper Peninsula, however, in the RECORD. self-employed individuals; to the Com- tax day is synonymous with bank- There being no objection, the bill was mittee on Finance. ruptcy. This is because the IRS insists ordered to be printed in the RECORD, as on enforcing a little known, and less THE HEALTH INSURANCE TAX EQUITY FOR SELF- follows: EMPLOYED ACT understood, tax law affecting loggers in S. 575 my State. Mr. DURBIN. Mr. President, I will Be it enacted by the Senate and House of Rep- For nearly three decades, businesses use just 2 or 3 minutes and defer to my colleague. I want to say I am glad he is resentatives of the United States of America in in the timber industry have used an ac- Congress assembled, counting plan that allocated a percent- with me today. It is one of our first bills as new Members of the U.S. Sen- SECTION 1. SHORT TITLE. age of loggers’ wages as rental for the This Act may be cited as the ‘‘Health In- use of the loggers’ chain saws, thereby ate and one that is very important, not surance Tax Equity for Self-Employed Act’’. only to our States but also to the Na- excluding this portion of their wages SEC. 2. DEDUCTION FOR HEALTH INSURANCE from income tax withholding, FICA, tion. I think it is extremely fitting COSTS OF SELF-EMPLOYED INDIVID- and FUTA taxes. This practice was ac- that Senator HAGEL and 14 of our col- UALS INCREASED. ceptable to the IRS until the Family leagues have joined me in introducing (a) IN GENERAL.—Section 162(l)(1) of the In- Support Act of 1988 required that an a bipartisan bill to provide tax relief ternal Revenue Code of 1986 (relating to spe- employee business expense reimburse- for a group of hard-working Americans, cial rules for health insurance costs of self- namely the self-employed. What we are employed individuals) is amended to read as ment not be excluded from an employ- follows: ee’s income unless it is paid under an trying to do with this bill, and I think ‘‘(1) ALLOWANCE OF DEDUCTION.—In the case accountable plan. The timber indus- it is appropriate to discuss it on April of an individual who is an employee within try’s traditional accounting procedure 15, is to say that people who are self- the meaning of section 401(c)(1), there shall was not an accountable plan. employed, small business people, farm- be allowed as a deduction under this section S3202 CONGRESSIONAL RECORD — SENATE April 15, 1997 an amount equal to the amount paid during women who need the tax relief and this important group of employers and their the taxable year for insurance which con- health care assistance this bill offers. I employees. stitutes medical care for the taxpayer, the hope my colleagues will support this The cost of health insurance is the number taxpayer’s spouse, and dependents.’’. one problem that small businesses cited in a (c) EFFECTIVE DATE.—The amendment important effort. 1996 NFIB Education Foundation study. made by this section applies to taxable years EXHIBIT 1 Small Business Problems and Priorities, the beginning after December 31, 1996. NEBRASKA FARM BUREAU FEDERATION, most comprehensive study of its kind in the Mr. HAGEL. Mr. President, I am Lincoln, NE, April 10, 1997. country. Small business owners often pay 30 pleased to join with my distinguished Hon. CHUCK HAGEL, percent more for the cost of their health in- surance than larger companies. In addition, colleague from Illinois, Senator DUR- U.S. Senate, Washington, DC. self-employed business owners face the cost BIN, to introduce legislation that will DEAR CHUCK: On behalf of Nebraska’s larg- that result from having to pay income taxes cut taxes and improve access to health est farm organization, I am writing to offer on the majority of the amount of their insurance for millions of small busi- Nebraska Farm Bureau Federation’s strong health insurance premiums. Instead of penal- ness owners and farmers across Amer- support for your legislation that would pro- izing the self-employed in this manner, Con- ica. vide a 100 percent tax deduction of health in- gress should be doing all it can to help the Our legislation—the Health Insur- surance premiums for the self-employed. self-employed, a group who plays a critical ance Tax Equity for Self-Employed Deductibility of health insurance premium role in our economy. costs for self-employed individuals has been NFIB appreciates your understanding of Act—is a bill about fairness. Under cur- this issue and your willingness to introduce rent law, corporations can deduct from a long standing goal of Farm Bureau. More than 95 percent of farmers and ranchers are this significant piece of legislation. their income tax the full amount of self-employed and generally pay the full cost Sincerely, money spent on health care for their of their insurance coverage themselves. In DAN DANNER, employees. But the 101⁄2 million self- addition, many farm families are forced into Vice President, Federal Governmental Affairs. employed men and women in America a situation where a spouse must get an off- cannot fully deduct what they spend on farm job primarily to obtain more affordable By Mr. LEVIN (for himself and their own health care. They can deduct health insurance coverage for their family. Mr. MCCAIN): a percentage—which is now 40 percent The cost of self-employed health insur- S. 576. A bill to amend the Internal and will increase to 80 percent by 2006— ance, when not purchased as part of a group, Revenue Code of 1986 to provide that can be significant and cause financial hard- corporate tax benefits from stock op- but they cannot deduct the entire cost. ships for some individuals and farm families. Our bill would immediately elimi- tion compensation expenses are al- In many cases, farmers and ranchers pay lowed only to the extent such expenses nate this disadvantage—effective Janu- more than $3,000 to $5,000 annually for health ary 1, 1997—and put the self-employed are included in corporate accounts; to insurance. Farmers and ranchers are looking the Committee on Finance. on the same footing with their incor- at many avenues to cut skyrocketing health porated competitors. And it would insurance premiums. More farmers have THE ENDING DOUBLE STANDARDS FOR STOCK make health insurance more affordable moved to higher deductible policies—quite OPTIONS ACT for the 3 million uninsured Americans often in the $2,500 to $5,000 range. In other Mr. LEVIN. Mr. President, for the who are self-employed. cases, farmers are opting to go without past several years, the Wall Street This bill will make a real difference health insurance altogether. Journal has published a special pullout As you know, current federal tax law al- section of the newspaper with a num- to real people. The high cost of health lows self-employed people to deduct 30 per- insurance was the No. 1 problem that ber of articles on executive pay. Last cent of the cost of their health insurance year’s headline read, ‘‘The Great Di- small businesses cited in a recent com- premiums. That will increase to 80 percent prehensive study by the National Fed- by the year 2006. Current federal tax law also vide: CEO Pay Keeps Soaring Leaving eration of Independent Businesses allows corporations to deduct 100 percent of Everybody Else Further and Further [NFIB]. Small business owners often their health insurance premium costs. Mem- Behind.’’ Last week, Business Week pay 30 percent more for the cost of bers of Nebraska Farm Bureau believe that magazine featured this cover story on their health insurance than do larger fairness and equity dictate that Nebraska’s its 47th annual pay survey: ‘‘Executive companies—they pay more, but they self-employed individuals receive the same Pay: It’s Out of Control.’’ tax treatment as other employees and em- Both publications analyze the pay of can deduct less. ployers. Our bill will make health insurance top executives at approximately 350 Nebraska Farm Bureau appreciates your U.S. major corporations. Their analysis more affordable for small business work on the introduction of this legislation owners. That is why it has been en- and we wholeheartedly offer our support to shows that the pay of the chief execu- dorsed by the National Federation of this effort. tive officers continues to outpace infla- Independent Businesses. Respectively, tion, other workers’ pay, the pay of It also is strongly supported by the BRYCE P. NEIDIG, President. CEO’s in other countries, and company National Farm Bureau and by the Ne- profits. braska Farm Bureau Federation. Both NATIONAL FEDERATION OF INDEPENDENT According to Business Week, for BUSINESS, CEO’s of the leading 350 companies have sent me letters endorsing this leg- Washington, DC, April 10, 1997. islation. I ask unanimous consent that studied, their average total compensa- Hon. CHUCK HAGEL, tion rose 54 percent last year to about the full text of these be submitted for U.S. Senate, the RECORD. Washington, DC. $5.7 million, which came on top of 1995 The PRESIDING OFFICER. Without DEAR SENATOR HAGEL: On behalf of the CEO pay increases of 30 percent. So in objection, it is so ordered. 600,000 small business owners of the National 1995 we had the CEO’s increasing their (See exhibit 7.) Federation of Independent Business (NFIB), I pay by 30 percent, last year increases Mr. HAGEL. More than 95 percent of am writing to express our strong support of of 54 percent. Blue-collar employees re- farmers and ranchers are self-employed your legislation to extend the deduction of ceived a 3 percent raise in 1996, and and generally pay the full cost of their health insurance premiums for the self-em- white-collar workers fared only slight- insurance coverage themselves. Our ployed to 100 percent, effective immediately ly better with a 3.2 percent raise. upon date of enactment. So in 1996 the pay of the top execu- bill makes a real difference to them as Current law’s tax treatment of the health well. insurance premiums for the self-employed is tives was 209 times the pay of the fac- I am involved in this issue because it extremely unfair. The three million self-em- tory employee, which is a huge in- is vitally important to my home State ployed Americans who are presently unin- crease. The ratio of executive pay to of Nebraska. There are 98,000 self-em- sured should have access to the same 100 per- factory workers’ pay in the United ployed people in Nebraska, of whom cent deduction that CEO’s and employees in States was already two to three times more than 10,000 are uninsured. These Fortune 500 companies receive. The Health more than the pay ratio in any other are real numbers. These are real peo- Insurance Portability and Accountability country. Suddenly, now we see this ple. This legislation can make a real Act of 1996 gave the self-employed the ability going up to a ratio of 209 times the pay to take a 40-percent deduction in 1997 and difference for them—making their gradually phases in a permanent deduction of the average factory worker. The last health insurance more affordable and for the self-employed reaching 80 percent in time we had statistics, the ratio of ex- their businesses more profitable. 2006. Enabling the self-employed to take an ecutive pay to factory worker pay was Every State in America has hard- 100 percent deduction would certainly help 20 times in Japan and 25 times in Ger- working, self-employed men and us to make health care more affordable for many. Those statistics are a few years April 15, 1997 CONGRESSIONAL RECORD — SENATE S3203 old but we do not think they have mine how much executives get paid. treat it as an expense the rest of the changed that much. We should not. Stockholders and year as well. These statistics, the 3.2 percent pay boards of directors should set that. But In summary, the bill would not pro- increase that went to the white collar we should determine whether or not we hibit stock options. It would not put a workers and the 3 percent increase in want to allow our Tax Code to contain cap on them or limit them in any way. wages and benefits that went to Ameri- this loophole any longer, where this It just says, if a company wants to ca’s blue collar workers, represent a one form of executive compensation claim stock option pay as an expense growing problem in America, and rep- and only this form of compensation is at tax time, it has to treat it as an ex- resent a gap that is growing. The ques- dealt with by a double standard. We pense the rest of the year as well. Pe- tion is now what? Is this gap going to permit the company to get the tax de- riod. continue? That is a question more for duction when it comes to filing their The bill provides one exception to en- the market than for government. income tax return, but we do not re- sure that closing the stock option tax There is something that government quire the company to show that same loophole doesn’t affect the pay of aver- is currently doing that can change expense as an expense on their books, age workers. this, and that is right now we permit thereby hiding the cost to the company Right now, stock option pay is over- stock options, which represent the big- of the stock option cost but still get- whelmingly executive pay. In 1994, the gest portion of corporate pay, to be ting a tax deduction. most extensive stock option review to taken as a tax deduction for income Now, say, a corporate executive exer- date, covering 6,000 publicly traded tax purposes, although it is not shown cises stock options to purchase com- U.S. companies, found that only 1 per- as an expense on the company’s books. pany stock and makes a profit of $10 cent of the companies issued stock op- There is no other form of executive million. The company can claim the tions to anyone other than manage- compensation for which this is true. full $10 million as a business expense ment and 97 percent of the stock op- Every other form of executive com- and deduct it from the company’s tax tions issued went to 15 or fewer individ- pensation, of compensation for any- bill. But when it comes to showing that uals per company. Nevertheless, there are a few compa- body, is shown as an expense on the expense on their books, on their annual nies that issue stock options to all em- company’s books when it is taken as a report, it is not an expense. It is a foot- ployees and do not disproportionately deduction on income tax. note, not required to be shown as an favor top executives. Our bill would There is no double standard for any expense like other forms of compensa- form of compensation in our country, allow companies that provide broad- tion, but rather hidden in a footnote. based plans to continue to claim exist- in our Tax Code, except for stock op- This is not an accounting issue. The ing stock option tax benefits, even if tions. If a corporate executive gets accounting authorities, the experts, they exclude stock option pay expenses stock, that is an expense on the compa- have decided how this should be han- from their books. Like FASB, we would ny’s books. It is a tax deduction on dled as an accounting matter. This is encourage but not require these compa- their income taxes. If there is a bonus now a tax loophole issue. The question nies to treat these expenses consist- based on performance, that is an ex- is whether or not we, on tax day, want ently. By making this limited excep- pense on the company’s books, and it is to continue a loophole for executives— tion, we would ensure that average a tax deduction. But when it comes to because that is who we are talking worker pay would not be affected by stock options, the Tax Code right now about in approximately 98 percent of closing the stock option loophole. We permits there to be a tax deduction for the cases. In perhaps 1 or 2 percent of might even encourage a few more com- the company when that stock option is the cases these stock option plans are panies to share stock option benefits exercised. However, the company does broadly based and help average em- with average workers. not show that stock option as an ex- ployees, and we would not include that The bottom line is that the bill that pense on its own books. It is a stealth in our bill. But in maybe 98 percent of Senator MCCAIN and I are introducing exception. It is a double standard. We the cases, these are narrowly based today is not intended to stop the use of should end it. stock option plans only going to the stock options. Our bill is aimed only at That is why, today, Senator MCCAIN top officials of companies. stopping the manipulation of stock op- and I are introducing legislation to end This bill would end the double stand- tion expenses by those companies that this corporate tax loophole that is fuel- ard. It gives a choice. If you want to are trying to have it both ways—claim- ing the increases in executive pay and take it as an expense for tax purposes, ing stock option pay as an expense at is fueling those increases with tax- deduct this as compensation for tax tax time, but not when reporting com- payer dollars. Again, this loophole al- purposes, that is fine, no restriction. pany earnings to Wall Street and the lows companies to deduct from their But then you have to show it on your public. It is aimed at ending a stealth income taxes these multimillion dollar books as an expense also. You do not tax benefit that is fueling the wage pay expenses that never show up on the want to show it on your books as an ex- gap, favoring one group of companies company office books as an expense. pense? That is your choice, but then we over another, and feeding public cyni- A just completed survey of CEO pay will not let you take it as an expense cism about the fairness of the Federal at 55 major Fortune 500 corporations on your income taxes and have the rest Tax Code. by a leading executive compensation of the taxpayers of the United States It would also curtail an expensive tax publication called Executive Com- foot the bill. loophole. The Congressional Budget Of- pensation Reports, found that in 1996 Stock option pay is either a company fice has estimated that eliminating the stock options averaged about 45 per- expense or it is not. It either lowers corporate stock option loophole would cent of total executive pay. That is up company earnings or it does not. Some- save taxpayers $373 million over 7 years from 40 percent just 1 year ago, and thing is clearly out of whack when in and $933 million—almost $1 billion— stock options provided more money to the tax law a company can say one over 10 years. In this era of fiscal aus- the 55 CEO’s studied than their base thing at tax time and something else terity, that’s money worth saving. salary or their annual bonus. In fact, to investors at the annual meeting. Mr. President, I ask unanimous con- for 1996, salary accounted for only 22 This bill that I am introducing with sent that the bill Senator MCCAIN and percent of CEO compensation while Senator MCCAIN today would end the I are introducing be printed in the stock options accounted for 45 percent. double standard that allows corpora- RECORD, along with a section-by-sec- These stock options enable a CEO tions to treat stock option pay one way tion analysis of the bill that would end typically to buy company shares at a on the tax form and the opposite way the double standards for stock options. set price for a period of time, which is on the company’s books. There being no objection, the mate- usually 10 years. Since stock prices I want to emphasize that this bill rial was ordered to be printed in the generally rise over time, stock options does not prohibit stock options. It RECORD, as follows: have become the most lucrative source doesn’t put a cap on them. It doesn’t S. 576 of executive pay. limit them in any way. It just says, if Be it enacted by the Senate and House of Rep- Now, again, I do not think anyone is you want to claim stock option pay as resentatives of the United States of America in suggesting government ought to deter- an expense at tax time, you have to Congress assembled, S3204 CONGRESSIONAL RECORD — SENATE April 15, 1997 SECTION 1. SHORT TITLE. SECTION-BY-SECTION ANALYSIS OF ENDING compensation plans from their stock- This Act may be cited as the ‘‘Ending Dou- DOUBLE STANDARDS FOR STOCK OPTIONS ACT holders or other investors because ble Standards for Stock Options Act’’. Short Title. Section 1 of the bill provides these plans are not counted as an ex- SEC. 2. REQUIREMENTS FOR CONSISTENT TREAT- the short title. pense when calculating company earn- MENT OF STOCK OPTIONS BY COR- Consistent Treatment. Section 2 of the bill ings. Even the Federal Accounting PORATIONS would establish requirements for consistent (a) CONSISTENT TREATMENT FOR TAX DE- treatment of stock options by corporations Standards Board [FASB] recognized DUCTION.—Section 83(h) of the Internal Reve- when deducting stock option compensation that stock options should be treated as nue Code of 1986 (relating to deduction of em- as a business expense under Section 83(h) or an expense for accounting purposes. ployer) is amended by adding at the end the claiming stock option wages to obtain a re- This month, new accounting disclosure following new paragraph: search tax credit under Section 41. rules issued by FASB require that com- ‘‘(2) SPECIAL RULES FOR PROPERTY TRANS- Tax Deduction. Subsection 2(a) of the bill panies include in their annual reports a FERRED PURSUANT TO STOCK OPTIONS.— would amend section 83(h) of the Internal footnote disclosing what the company’s ‘‘(A) IN GENERAL.—In the case of property Revenue Code by adding at the end a new paragraph (2) with special rules for corporate net earnings would have been if stock transferred in connection with a stock op- option plans were treated as an ex- tion, the deduction otherwise allowable tax deductions related to stock options. A under paragraph (1) shall not exceed the new subparagraph 2(A) of Section 83(h) would pense. amount the taxpayer has treated as an ex- limit the deduction that a company could An article in the Wall Street Jour- pense for the purpose of ascertaining income, claim for stock option compensation to no nal, dated January 14, 1997, stated profit, or loss in a report or statement to more than the amount of stock option ex- these new rules could reduce some shareholders, partners, or other proprietors pense reported by that company in a finan- companies’ annual earnings by as much (or to beneficiaries). In no event shall such cial statement to stockholders. The sub- as 11 to 32 percent. One might reason- section would continue current law by allow- deduction be allowed before the taxable year ably ask how an arcane accounting described in paragraph (1). ing the deduction at the time the stock op- tion beneficiary exercises the option and in- rule could have such a large effect on ‘‘(B) EXCEPTION FOR BROAD-BASED OPTION cludes it in personal income. the bottom line of corporations. The PROGRAMS.—Subparagraph (A) shall not Average Workers Protected. A new sub- answer lies in the growth and value of apply to property transferred in connection paragraph 2(B) of Section 83(h) would estab- with a stock option if, at the time the stock stock options as a means of executive lish an exception for stock option plans that option was granted— compensation. These plans now ac- benefit average workers. To qualify, substan- count for about one-fourth of total ex- ‘‘(i) substantially all employees of the cor- tially all full-time, U.S. employees in a com- poration issuing such stock option were eli- pany would have to be eligible to receive ecutive compensation. gible to receive substantially similar stock substantially similar company stock options We all have heard the reports of ex- options from such corporation, during the taxable year; no one person could ecutives making multimillion-dollar ‘‘(ii) no individual performing services for have received more than 20 percent of the salaries, while average worker salaries such corporation received more than 20 per- stock options issued during the year; and at stagnate or fall. Recently, The Wash- cent of the total number of stock options least 50 percent of the stock options would ington Post reported that Michael granted by such corporation during the tax- have had to be issued to non-management Eisner, the CEO of Disney, was given a able year, and employees during the year. A new subpara- ‘‘(iii) at least 50 percent of the total num- stock option package estimated to be graph 2(C) would state that only full-time worth as much as $771 million over the ber of stock options granted by such corpora- employees performing services in the United tion during such taxable year were issued to States would need to be taken into account next 10 years. Why shouldn’t the value employees other than individuals performing in determining eligibility for the exception. of this compensation package be in- executive or management services for such Controlled Groups. A new subparagraph cluded in calculating Disney’s earn- corporation. 2(D) of Section 83(h) would authorize the ings? How can stockholders evaluate ‘‘(C) EMPLOYEES COVERED.—For purposes of Secretary of the Treasury to issue regula- the true value of executive compensa- this paragraph, an employee shall be taken tions applying these rules to stock options tion if the value is just buried in a into account only if— granted by a parent or subsidiary corpora- footnote somewhere in the annual re- ‘‘(i) the employee is a full-time employee, tion of the employer corporation. and Tax Credit. Subsection (b) of the bill would port? ‘‘(ii) substantially all of the services per- amend Section 41 of the Internal Revenue No other type of compensation gets formed by the employee for the corporation Code to clarify the ‘‘wages’’ that may be treated as an expense for tax purposes, are performed within the United States. used in calculating the research tax credit without also being treated as an ex- ‘‘(D) SPECIAL RULES FOR CONTROLLED allowable under Section 41. The bill would pense on the company books. This dou- GROUPS.—The Secretary shall prescribe rules add a new clause (iv) at the end of Section ble standard is exactly the kind of in- for the application of this paragraph in cases 41(b)(2)(D) stating that the allowable equitable corporate benefit that makes where the stock option is granted by a par- ‘‘wages’’ under Section 41 shall not include the American people irate and must be ent or subsidiary corporation (within the stock option compensation, until a company reports that compensation in a financial eliminated. If companies do not want meaning of section 424) of the employer cor- to fully disclose on their books how poration.’’ statement to stockholders, as provided in (b) CONSISTENT TREATMENT FOR RESEARCH Section 83(h)(2) (as amended by this bill). much they are compensating their ex- TAX CREDIT.—Section 41(b)(2)(D) of the Inter- The clause would limit the amount of stock ecutives, then they should not be able nal Revenue Code of 1986 (defining wages for option compensation allowed as a deduction to claim a tax benefit for it. purposes of credit for increasing research ex- under Section 83(h). Stock option wages This legislation does not require a penses) is amended by inserting at the end could be claimed under Section 41 only after particular accounting treatment; the the following new clause: a company reported the compensation ex- accounting decision is left to the com- pense under Section 83(h)(2), as amended by ‘‘(iv) SPECIAL RULE FOR STOCK OPTIONS AND pany. This legislation simply requires this bill. STOCK-BASED PLANS.—The term ‘wages’ shall companies to treat stock options the not include any amount of property trans- Conforming Amendment. Section (c) of the bill would make technical conforming same way for both accounting and tax ferred in connection with a stock option and purposes. required to be included in a report or state- amendments to Section 83(h). Effective Date. Section (d) of the bill ment under section 83(h)(2) until it is so in- I hope my colleagues will join in co- would make the amendments applicable only cluded, and the portion of such amount sponsoring this important legislation to stock options granted on or after the date which may be treated as wages for a taxable that will end the double standard for of enactment. year shall not exceed the amount of the de- executive stock option compensation. duction allowed under section 83(h) for such Mr. MCCAIN. Mr. President, I rise I ask unanimous consent that the taxable year with respect to such amount.’’ today to introduce legislation with my two articles to which I have referred be (c) CONFORMING AMENDMENTS.—Section friend and colleague, Senator LEVIN, printed in the RECORD. 83(h) of the Internal Revenue Code of 1986 is entitled Ending Double Standards for There being no objection, the articles amended by striking ‘‘In the case of’’ and in- Stock Options Act. This legislation re- were ordered to be printed in the serting: quires companies to treat stock op- RECORD, as follows: ‘‘(1) IN GENERAL.—In the case of’’. tions for highly paid executives as an [From the Wall Street Journal, Jan. 14, 1997] (d) EFFECTIVE DATE.—The amendments made by this section shall apply to property expense for bookkeeping purposes if AS OPTIONS PROLIFERATE, INVESTORS transferred and wages provided on or after they want to claim this expense as a QUESTION EFFECT ON BOTTOM LINE the date of enactment of this Act, pursuant deduction for tax purposes. (By Laura Jereski) to stock options granted on or after such Currently, corporations can hide How much does Microsoft Corp. really earn date. these multimillion-dollar executive from its business? April 15, 1997 CONGRESSIONAL RECORD — SENATE S3205 For the fiscal year ended June 30, the Some investors say the costs ought to be quality of the earnings you are looking at is Redmond, Wash., software giant said pretax reflected in companies’ income statements often not good.’’ What’s more, some compa- income rose 56% to a record $3.4 billion. But at the time the employees earn the options. nies offer employees the chance to take a telltale footnote to its income statement ‘‘Stock options have value, so they should be raises and pay-related benefits in stock in- revealed that pretax earnings would have recorded as an expense,’’ says Jerry White, stead of cash, which distorts earnings even been $2.8 billion—$570 million less—if president of Grace & White, a New York more. (That can be a losing bet for the em- Microsoft had compensated its employees en- money-management firm. ployee if the stock fails to rise above the ex- tirely with cash. And some shareholder activists are rebel- ercise price.) But employees didn’t get just cash. Like ling against the amount of options being dis- One big proponent of options-for-all is Gen- many companies these days, Microsoft sprin- pensed. Institutional Shareholders Services, eral Mills Inc. The Minneapolis cereal and kles stock options liberally among its work- which votes on shareholder issues on behalf baked-goods company started granting op- ers. That makes a big difference in the earn- of many large investors, votes against about tions to all employees in 1993. General Mills ings outlook at Microsoft and elsewhere. one in five option plans as too generous and had already been offering its top 800 people Wall Street and Main Street fervently em- expensive. Says ISS research director Jill the opportunity to take raises and some brace options as a tonic for much of what Lyons: ‘‘A human being has to say, ‘This is other benefits in options instead of cash. ails corporate America. Lucrative for em- too much.’ ’’ Mike Davis, General Mills’ compensation ployees, options appear to be cost-free to the ISS focuses on how much shareholder vice president, says the option programs are employer. Distribute them broadly, the wis- value option plans transfer, rather than how ‘‘very attractive for shareholders’’ because dom goes, and employees will pull together, they might affect company earnings. For ex- they cut fixed costs and thereby boost prof- company returns will rocket and sharehold- ample, a magnanimous plan adopted two its, though he can’t say by how much. One ers will cheer. months ago by San Jose, Calif., computer clue: The company’s selling, general and ad- But some investors and critics say the op- networker Cisco Systems Inc. will set aside ministrative expenses, which include com- tions downpour is muddying companies’ 4.75% of Cisco’s stock for options annually pensation, dropped by $222 million, or 9%, to earnings pictures. Companies can show in- for three years. Three-fourths of those op- $2.1 billion, in May 1996, compared with May vestors higher earnings if they slash com- tions will go to employees below the vice- 1994. For that same period, pretax earnings pensation costs by handing out options. As president level. from continuing operations rose $194 million, Byron Wien, Morgan Stanley & Co.’s top Most of Wall Street applauds this em- or 34%, to $759 million. stock-market strategist, points out: ‘‘In the ployee motivator. Analyst Suzanne Harvey Meantime, General Mills’ options grants short run, people are overstating current at Prudential Securities wrote recently that have been steadily ratcheting up. Today, the earnings because part of employees’ com- Cisco has the best employee benefits in the company distributes almost 3% of its stock pensation is coming in the form of options.’’ computer industry. to employees annually, buying enough stock BET ON GROWTH PROSPECTS But ISS analyst Caroline Kim warned cli- to match that distribution. ‘‘They are work- Put another way: Investors may be making ents that the option plan would double insid- ing hard to keep the shares-outstanding line a bigger bet on company growth prospects ers’ stake in Cisco to nearly 23%—twice what flat,’’ Mr. McMillin of Prudential says. than they realize. If Microsoft’s options were employees in comparable companies get— ‘‘That also means that they have to go into treated as an expense, its net income last and hand over to employees shareholder the market arbitrarily, as options are exer- year would have been about $1.8 billion, or value of $3.6 billion during the next three cised, and buy stock back at a higher level.’’ $2.85 a share, instead of $2.2 billion, or $3.43 years. Shareholders approved the plan any- Microsoft, to some extent, also uses a share—meaning its $83.75 closing stock way. buybacks to offset option grants, says, Mr. price on the Nasdaq Stock Market yesterday Many investors and financial analysts see Brown, its chief financial officer. But the would reflect an earning multiple of nearly nothing wrong with companies’ generosity buybacks have become so expensive that the 30 times last year’s earnings instead of about with options. In a recent survey of 300 top company had to invent a new security to 24 times. Wall Street stock analysts, eight of 10 said help offset the cost. ‘‘The impact of buying Michael Brown, Microsoft’s chief financial they would disregard stock options entirely, back shares has been more extreme for them officer, scoffs at that notion: ‘‘The Street as long as companies don’t have to take a because the price took off so dramatically,’’ figures it our pretty fast.’’ charge for them. ‘‘I think that’s accounting says Michael Kwatinetz, a stock analyst who But disparities will be popping up all over mumbo jumbo, as opposed to a value meas- covers the company for Deutsche Morgan come March when new accounting disclosure ure that has to do with stock prices,’’ says Grenfell. Still, Mr. Kwatinetz views the op- rules by the Financial Accounting Standards Bruce Lupatkin, head of research at tions package overall as ‘‘a strong plus’’ for Board take effect. For the first time, compa- Hambrecht & Quist. employees. nies will have to include a footnote in their That view prevailed in 1995, after a long For a while, Microcsoft was coming out annual reports disclosing what net would and bruising battle over whether such op- about even, in real money terms. When em- have been if options were treated as an ex- tions largess should count against earnings. ployees exercise options for, say, $40 a share, pense—something Microsoft and some others Hundreds of companies, analysts, venture they pay Microsoft the exercise price. are already doing. Murray Akresh, a com- capitalists, and even congressmen joined Microsoft gets a tax deduction for the dif- pensation expert with Coopers & Lybrand, forces to defeat accounting rule makers who ference between the exercise price and the says the earnings difference could be as wanted companies to reflect the actual value market price. much as 11% for some companies. By the of options in their earnings. When the FASB NO SMALL CHANGE time the full impact of the new rule is felt at held hearings on the proposal in Silicon Val- But the gross buyback cost has been rising, the end of a four-year transition period, the ley—where such options have created thou- to $1.3 billion last year from $348 million in difference could reach 32%. sands of fortunes—they were disrupted by a 1994. Employees paid Microsoft about $500 Companies’ true earning power is of par- ‘‘Rally in the Valley’’ of the local citizenry, million last year for their stock, and tax sav- ticular concern because earnings growth has complete with marching bands, balloons and ings further reduced the company’s out-of- propelled the stock market’s sustained rise. T-shirts stamped ‘‘Stop the FASB.’’ pocket costs. But Microsoft still had to shell But some money managers say that rise is MORE WIDESPREAD out about $300 million. making options more costly for companies to FASB opponents argued that companies Compared with the $570 million in options issue. incur no cash costs in granting options. Fur- expense, that sounds like Microsoft is get- ‘‘What’s really happening is that compa- ther, not all options granted will be exer- ting its money’s worth. In fact, the company nies are selling their stock to employees at cised since employees leave and stock prices is actually paying out $400 million in real a discount,’’ says Richard Howard, a mutual- sometimes fall below the option exercise cash, to offset employee stock options whose fund manager at T. Rowe Price Associates in price. The FASB accountants argued that cost isn’t recognized in its financial state- Baltimore. Often, the companies then turn options are valuable because they give em- ments. around and buy stock at the higher market ployees a long-term right to buy stock at a Still, $400 million is no small change, even price to hold steady the number of shares set price. They lost, which led to the com- for a company as flush as Microsoft. So in outstanding. promise with the footnote disclosure. December, the company sold $1 billion of a ‘‘There’s a real economic cost when stocks Since then, option grants have become newfangled convertible-preferred stock to are going up,’’ Mr. Howard says. ‘‘That’s more generous and more widespread. Once outside investors that will reduce such costs when options cost the most.’’ they were mainly used by small, fast-grow- as long as the stock rises more than 6.88% a OPTIONS HAVE VALUE ing high-technology companies loath to part year for the next three years. (The preferred One measure of that aggregate cost can be with precious cash. Today, big companies are stock, which will be redeemed at as high as seen in stock-buyback programs. In 1996, enthusiasts, according to a survey of 350 $102.24 a share, can be exchanged for cash, buybacks totaled $170 billion, according to large companies by William M. Mercer Inc., debt or stock. If Microsoft’s stock price falls, Securities Data Co., a Newark, N.J., securi- a New York compensation-consulting firm. the preferred would be redeemed at no less ties-market-data company, up 72% from the Annual stock-option grants soared by more than $79.875 a share.) previous year’s $99 billion. Buyback costs are than 20% between 1993 and 1995, the firm’s Many investors consider the financial im- partly offset by the money companies collect work shows. pact of the options by focusing on earnings from employees who exercise their options John McMillin, a food-industry analyst at per share on a fully diluted basis, a calcula- and buy. Prudential Securities, says that means ‘‘the tion that assumes that options outstanding S3206 CONGRESSIONAL RECORD — SENATE April 15, 1997 at prices below the current market have The group, which includes the big public- says Disney’s board had to offer Eisner his been exercised. Tom Stern at Chieftain Cap- employee pension funds of California, Louisi- huge new deal. ‘‘The package he got is awe- ital, a New York money manager, goes one ana and Wisconsin, also is displeased with some,’’ he said. ‘‘But if Sony had tried to step further. He estimates how much the the severance package awarded Michael lure him away, they would have offered him stock ought to rise, if his earnings estimates Ovitz, the Hollywood talent agent who Tokyo and thrown in Kyoto as a bonus.’’ are right, and figures out how many more served as Disney’s president for 14 months. options will be exercised. ‘‘We pay close at- Ovitz, who resigned in December, has re- By Mr. GLENN (for himself and tention to options,’’ he says. ‘‘If you don’t, ceived $38.9 million in cash from Disney and Mr. LIEBERMAN): your earnings get diluted.’’ options on 3 million shares that have a cur- Will the required footnote disclosure in rent paper value of $54 million. S. 577. A bill to increase the effi- companies’ annual reports have a big im- The Washington-based Council of Institu- ciency and effectiveness of the Federal pact? ‘‘That’s not chopped liver,’’ says Jack tional Investors, which organized the pen- Government, and for other purposes; to Ciesielski, author of the Analyst’s Account- sion fund protest, acknowledges the action is the Committee on Governmental Af- ing Observer newsletter. ‘‘I don’t think in- largely symbolic—it is not voting for alter- fairs. vestors have any idea how big the options native board candidates. The group’s mem- programs are.’’ bers control about 11.5 million Disney THE GOVERNMENT RESTRUCTURING AND REFORM To calculate the cost, many companies will shares—a tiny fraction of the 675 million Dis- ACT OF 1997 use option-pricing models in wide use on ney shares in the public’s hands; it’s not Mr. GLENN. Mr. President, I rise Wall Street that combine the time span of clear whether the action has wide support today to introduce the Government Re- the options with the volatility of each com- among other shareholders. pany’s stock price. Options in a hightech ‘‘We’re merely trying to send a message,’’ structuring and Reform Act of 1997, company tend to be worth more since said Alyssa Machold, deputy director of the legislation whose objective is to reor- chances are better the stock will surge. council. ‘‘We don’t want to start burning ganize the executive branch into a A few companies have already bit the bul- Mickey Mouse in effigy. But by not voting, form and a structure that is capable of let. Bristol-Myers Squibb Co., the New York we’re calling into question the actions of meeting the challenges of the 21st cen- pharmaceuticals concern, revealed last year Disney’s board,’’ which approved the Eisner tury. The bill is cosponsored by my dis- that its options plan would have trimmed and Ovitz packages. 1995 net by a mere $35 million, cutting seven The organization says Disney’s 16-member tinguished colleague from Connecticut, cents a share from per share earnings of board includes 10 directors whose financial Senator LIEBERMAN. $3.58, had options been treated as an expense. ties to the company could compromise their We are in an era of contraction at the The impact of options can be suprisingly independence. Mitchell’s Washington law Federal level. Some of this contraction big, however, even if the company hasn’t firm, for example, provides legal services to is needed in my opinion, in some areas been that generous. At Foster Wheeler Corp., Disney. I don’t think it’s a good idea. But it is the Clinton, N.J., builder of refineries and Even before his new pay package was dis- power plants, the impact was heightened by closed in January, Eisner was often at the a fact. Many programs are being cut, a restructuring charge that reduced reported center of the executive-pay controversy. In others have been eliminated or consoli- earnings at the same time as its stock took 1992, he made headlines when he exercised dated into block grants to the States. off. The result was that a 1995 grant of only options on shares then worth about $202 mil- Agencies and departments are being 1.35% of shares outstanding would have lion. downsized and in some cases elimi- slashed the year’s earnings by 14%, or $4.1 According to Disney’s records, the 54-year- old executive has reaped $240 million in prof- nated. In the last Congress, the Bureau million. of Mines, Office of Technology Assess- Tobias Lefkovich, a Smith Barney analyst its by exercising options and selling stock in who follows Foster Wheeler, says nobody no- his past 12 years as chief executive. As of ment, Interstate Commerce Commis- ticed. ‘‘Investors are more focused on con- September, he held stock that would bring sion, and Advisory Commission on sistent earnings growth and new orders’’ an additional $304 million of profit if sold. Intergovernmental Relations were all than the option cost, he explains. Nonethe- His new contract awards him 8 million op- terminated. In addition, agency rules less, Charles Tse, an outside director at Fos- tions. (An option gives its owner the right to and paperwork are being pruned. And buy stock in a company at a particular point ter Wheeler who serves on the compensation Federal employment has been cut by committee, says, ‘‘the whole compensation in time at a predetermined price; it has value if it permits the buyer to buy stock at over 250,000 positions in the last 4 years plan is being reviewed.’’ A company spokes- and continues to fall. man said later that the review wasn’t a price below the existing market price.) prompted by the stock-option disclosure. Assessing the future value of an option is These are big and historic changes, an inexact science because it requires guess- spurred on by our efforts to reach a [From the Washington Post] ing the future price of a stock. Officially, balanced budget and the desire of the Disney estimates the value of Eisner’s new DISNEY CHIEF MAY REAP $771 MILLION FROM options at $195.4 million over their 10-year American people for a more cost-effec- STOCK OPTIONS life. tive Government. (By Paul Farhi) Raymond Watson, the Disney board mem- However, despite the overall By any measure, Michael Eisner the chief ber who directed negotiations on the con- downsizing effort, the basic structure executive of the Walt Disney Co., has been tract with Eisner, says that is a conservative one of America’s most successful corporate of the Federal Government remains un- figure, based on the low end of assumptions changed. In fact, the basic structure of executives. And by any measure, he has been about Disney’s future performance. handsomely compensated for it. Graef ‘‘Bud’’ Crystal, an executive-pay ex- the Federal Government has changed Eisner, in fact, could be poised to become pert whom Disney’s board consulted to for- little in the last 25 years, despite struc- one of the most richly rewarded employees mulate the contract, said the value of the tural changes in the private sector, the in the history of American business. Thanks Eisner deal likely will be much higher. As- economy, and our society over that to a new 10-year pay package that includes suming an 11 percent annual return— same time period. The Federal Govern- generous stock options, the top executive of Disney’s average stock performance for the the entertainment conglomerate could reap ment has been the last to follow suit— past 10 years—Crystal calculated Eisner and that’s as it should be in a democ- nearly $771 million over the next decade, ac- could realize $770.9 million from exercising cording to estimates by the compensation the options from 2003 to 2006. racy—but that does not mean it should expert who designed Eisner’s new contract. Asked about that figure, Watson said, ‘‘I be immune from change forever. We The figure doesn’t include Eisner’s $750,000- don’t dispute it. We looked at it that way cannot keep the status quo in the ex- per-year salary or bonuses that could add an- and 30 other ways besides.’’ isting executive branch structure while other $15 million annually. But Watson said Eisner’s compensation continuing to downsize, cut budgets While Disney argues that Eisner has will be worth it if he can help Disney keep up and programs and reduce personnel lev- proved he’s worth it, the huge package has its historical growth. He noted that options raised anew a debate over executive com- only have value if the company’s stock keeps els and also expect these same Federal pensation. A group of 22 institutional pen- appreciating. Indeed, companies award exec- agencies to perform effectively and sion funds that hold Disney stock plans to utive options in order to motivate them to maintain adequate levels of service. protest Eisner’s contract at Disney’s annual keep share value rising. We’ll end up with what I call the meeting in Anaheim, Calif., next week. Under Eisner, Disney has been one of Wall hollowing out of Government. We’ll They intend to withhold their votes for the Street’s stellar performers. Its revenue has have the same agencies and depart- five management-backed nominees to grown from $1.5 billion in 1984 to $18.7 billion ments in place doing most of the same Disney’s board—including former Senate ma- in 1996. And its stock has soared during that activities as they do now. But with less jority leader George Mitchell and Roy E. period—from $3 per share to $75.371⁄2 as of Disney, Walt’s nephew—and to vote against Friday, after adjusting for splits. money and less people on hand, these a resolution that sets the formula for Even Crystal, a frequently quoted critic of activities will be carried out less effec- Eisner’s annual bonus. huge executive pay packages, grudgingly tively. We’ll have a less costly Federal April 15, 1997 CONGRESSIONAL RECORD — SENATE S3207 Government, but not a more cost-effec- It was formed in 1947 and chaired by through a Presidential certification tive one. That is, unless we address re- former President Hoover. The 12-mem- that the Commission was in the na- organization and consolidation of Fed- ber commission operated until 1949 and tional interest. Unfortunately, that eral agencies and functions in a com- issued 19 reports to the President rec- certification was not made, Had it prehensive, well-thought-out way. ommending various changes in the been, perhaps we would have in place Reorganization issues are very dif- structure of the Federal Government. today the blueprint for the Govern- ficult, perhaps among the most dif- From these recommendations, Presi- ment of the 21st century. ficult issues we face in Government. It dent Truman submitted eight reorga- Then in the 103d Congress, we re- raises questions that don’t have sim- nization plans to Congress in 1949, of ported out a Glenn-Roth-Lieberman ple, right and wrong answers. Should which six became effective. The follow- Commission bill by a 12 to 1 vote. But we have greater centralization of Gov- ing year he submitted 27 reorganiza- we did not move it to the floor because ernment functions in less, but larger tion plans, 20 of which became effec- the President’s National Performance Cabinet departments? This is the tradi- tive. Included among these plans were Review was just getting underway and tional, centralized model of how Gov- the creation of the General Services we wanted to see what it might come ernment bureaucracy is organized. Or Administration, the expansion of the up with before establishing the com- should we decentralize and spread Gov- Executive Office of the President, and mission. ernment functions across many smaller the creation of a centralized Office of Finally, last year the committee re- agencies and departments? Such an ap- Personnel. ported out a version of a government proach fits what many call the entre- A second Hoover Commission was reorganization commission; however, it preneurial model of Government orga- formed in 1953 and made 314 specific was tied to legislation dismantling the nization. recommendations over the following 2 Commerce Department and thus died. Well, I can think of pros and cons to years, 202 of which were implemented. Late in the session, Senator STEVENS both approaches. To add to this dif- However, generally this Commission developed a substitute retaining the ficulty, reorganization necessarily in- was not considered as successful as the commission but dropping the disman- volves questions of turf and jurisdic- first Hoover Commission, as it engaged tling provisions, We came close to an tion. Turf battles in this town are as itself in more controversial matters of agreement and my hope this Congress hotly contested as any policy issue. I policy rather than solely focus on man- is that we will reach one. know this through experience. Several agement and organization as the first For a more detailed history of gov- years ago I proposed consolidating the commission had done. ernment restructuring commissions I Government’s trade and technology Our next restructuring effort of note would refer my colleagues to an excel- functions into one Cabinet department was put forward by President Nixon’s lent report prepared by CRS titled ‘‘Re- and I faced very stiff opposition. Like- Ash Council, which was in operation organizing the Executive Branch in the wise, turf is just as jealously guarded from 1969 to 1971. Headed by Roy Ash, Twentieth Century: Landmark Com- at the other end of Pennsylvania Ave- chairman of Litton Industries, the missions.’’ nue. Ask the President’s National Per- Council supplied the President with I believe that a commission would formance Review. They proposed inte- nine memoranda detailing with specific complement nicely the efforts of the grating the Agency for International reorganization and consolidation pro- NPR. The Federal work force has been Development into the State Depart- posals. The Council recommended the reduced by over 250,000 positions, Fed- ment in addition to consolidating the formation of OMB, the EPA, and NOAA eral paperwork and redtape has been Federal law enforcement agencies only from the consolidation of existing pro- simplified, procurement reform has to be faced down by the bureaucracy. grams. These proposals were all imple- been enacted, and unnecessary field of- So I don’t think comprehensive reorga- mented. The Council also rec- fices at the Department of Agriculture nization can be tackled successfully by ommended the creation of several has been closed. These accomplish- either the Congress or the executive super-Departments, including a De- ments are due in significant part to the branch. partment of Natural Resources, but work and the efforts of the NPR. That’s why I’m in favor of establish- these proposals ultimately did not pass However, the NPR has generally not ing a Government commission to ex- the Congress. focused on government restricting. In amine executive branch organization. The next notable Commission came the instances where it has made pro- My bill establishes a nine-member, bi- during the Reagan years, the Grace posals—I noted two examples earlier in partisan Commission to make rec- Commission, which was established by my statement—they have been rebuffed ommendations to the President and the Executive order in 1982 and was in op- by the bureaucracy, the Congress or Congress in 2 years on consolidating, eration through 1984. The panel was both. eliminating, and restructuring Federal composed of 161 corporate executives Recent congressional efforts have departments and agencies in order to and it issued a massive 47 volume re- fallen short also, as several of my col- eliminate unnecessary activities, re- port with nearly 2,500 recommenda- leagues learned in advocating the dis- duce duplication across programs, and tions. Many of its recommendations mantling of four Cabinet depart- improve management and efficiency. were policy-based rather than organi- ments—HUD, DOE, Commerce, and This Commission would be not just any zational in nature, hence they gen- Education. Those efforts were heavy- old Commission, producing some big erated controversy and polarized de- handed in my view and would have cre- thick study that would wind up largely bate in the Congress. Still, many of the ated more problems then they would unread in some recycling bin, or on the recommendations were implemented, have solved. dusty shelf of academia. Rather the primarily through executive branch ac- In closing, I believe an examination Commission’s recommendations would tion. And the Commission did call for of the experience of the private sector be submitted to the Congress and have stronger financial management in the in restructuring and downsizing is in- to be considered on a what I call a Federal bureaucracy. That’s something structive in differentiating between flexible fast-track basis. They could we have built on in the Committee on the right and wrong ways to downsize. not perish in committee, as so often oc- Governmental Affairs through enact- A 1993 survey of over 500 U.S. compa- curs with commission reports and rec- ment of the Chief Financial Officers nies by the Wyatt Co. revealed that ommendations. Act. only 60 percent of the companies actu- There is precedent for such a com- More recently, the Committee on ally were able to reduce costs in their mission. In fact, the few successful Governmental Affairs passed legisla- restrucuting efforts. Both the Wyatt Government reorganization efforts tion to establish a bipartisan reorga- Survey and a similar one conducted by that have taken place have come about nization commission as part of our ef- the American Management Association because of the work of a commission. forts to make the VA a Cabinet depart- concluded that successful restructuring Let me give you some background. ment. That Commission became law, efforts must be planned carefully with The Hoover Commission is probably Unfortunately, in order to pass it, we a clear vision of their goals and objec- the most famous Government restruc- had to place a mechanism to trigger tives, and that proper attention be turing commission from recent times. the activation of the Commission given to maintaining employee morale S3208 CONGRESSIONAL RECORD — SENATE April 15, 1997 and productivity. Otherwise, the costs joined by Senators HARKIN, HATCH, Therefore, let me clarify the intent of reorganization may outweigh its GRASSLEY, REID, ABRAHAM, INOUYE, of the Access to Medical Treatment benefits. BAUCUS, CRAIG, KEMPTHORNE, and Act. There is a right and a wrong way to THOMAS in this effort to allow greater This bill is intended to promote reorganize and downsize. I believe that freedom of choice in the realm of medi- greater access to alternative therapies the Commission approach is the right cal treatments. under the supervision of licensed way. I hope my colleagues will support I was introduced to the alternative health practitioners and under care- this legislation. medical treatment debate the same fully circumscribed guidelines. Hope- Mr. President, I ask unanimous con- way many Americans are: through per- fully, it will stimulate a constructive sent that additional material be print- sonal experience. Actually, in my case discussion of how best to achieve this ed in the RECORD. it was the experience of a personal objective. There being no objection, the mate- friend: Berkley Bedell. I appreciate the natural inclination rial was ordered to be printed in the Berkley Bedell, as many of you to be wary of uncharted waters, and I RECORD, as follows: know, is a former Congressman from am not suggesting that caution be SUMMARY OF THE GOVERNMENT Iowa’s 6th District. He is also—since thrown to the wind in the case of alter- RESTRUCTURING AND REFORM ACT OF 1997 his battle with Lyme disease several native therapies. Some have expressed MISSION years ago—a tireless advocate for im- concern that this bill could have the To consolidate, eliminate and reorganize proving access to alternative treat- unintended effect of opening the door Federal government departments, agencies ments. to unscrupulous entrepreneurs who and programs to improve efficiency and ef- As some may remember, Congress- seek to make profit on the despair of fectiveness, streamline operations and elimi- the sick. I don’t minimize that con- nate unnecessary duplication. To strengthen man Bedell was ill with Lyme disease when he left the House at the end of cern. How to guard against such an un- management capacity. To propose criteria intended consequence is an issue we for government-sponsored corporations. To the 100th Congress. Having tried sev- define new/reorganized agency missions and eral unsuccessful rounds of conven- will want to examine closely and ad- responsibilities. tional treatment consisting of heavy dress. What I am suggesting, however, is MEMBERSHIP doses of antibiotics over approximately that this concern should not blind us to Nine Members (No more than five from any 4 years, he turned to an alternative one party). Three Members (including Chair) treatment that he believes cured his the benefit and potential of alternative appointed by the President (Chairman is se- disease. medicine. It is not a reason to shrink lected in consultation with the respective This treatment consisted on its most from the challenge of expanding access Republican and Democratic leaders of the basic level of nothing more than drink- to alternative therapies. House and Senate). Six Members appointed Alternative therapies constitute a le- ing processed whey from a cow’s milk. by the Congress (1 each for each party lead- gitimate field of endeavor that is an After about 2 months of taking regular er, then 1 by Speaker in concurrence with accepted part of medicine taught in at doses of this processed whey, his symp- Sen. Majority Leader and 1 by Sen. Minority least 22 of the Nation’s 125 medical toms disappeared. Leader in concurrence with House Minority schools, including such prestigious in- Leader). Appointments made within 90 days Despite Congressman Bedell’s amaz- of enactment. Six Members must be in agree- stitutions as Harvard, Yale, Columbia, ing recovery, and the fact that this Johns Hopkins, Georgetown, Albert ment for the Commission to approve any rec- same treatment appeared to be effec- ommendation. Einstein, Mount Sinai, UCLA, and the tive in treating other cases of Lyme University of Maryland. REPORTS disease, the treatment can no longer be President may submit his own rec- At the National Institutes of administered because it has not gone Health’s Office of Alternative Medi- ommendations (7/1/98) for the Commission to through the FDA approval process. consider. Commission issues a preliminary cine, scientists are working to expand (due 12/1/98) and final report (8/1/99) to the Congressman Bedell’s story—and oth- our knowledge of alternative therapies President, Congress, and the public. Public ers I have heard since—have convinced and their safe and effective use. hearings must be held and the Commission is me of two things: first, that our health And the State medical licensing subject to FACA. President has 30 days to care system actually discourages the boards now have a committee discuss- suggest changes to final report. The final re- development and use of alternative ing alternative medicine. I encourage port is forwarded to Congress by 10/1/99. medical treatments; and second, that that panel to explore how safe access LEGISLATION this myopic outlook does not serve the to alternative medicine might be in- ‘‘Flexible’’ fast-track process is in place. best interest of the American people. creased. Commission final report is introduced as one As I looked into the potential of al- Additionally, more and more Ameri- single bill and Committees have 30 legisla- ternative therapies, I was struck by cans are turning to alternative thera- tive days to act or bill is discharged. Bill is what appears to be a deep-seated skep- then placed on the Senate calender and after pies in those frustrating instances in 5th legislative day it is in order to proceed to ticism of alternative treatments within which conventional treatments seem to consideration of the bill. Bill can be filibus- the medical establishment that may be be ineffective in combating illness and tered or amended (must be relevant). Fast impeding their use. It is clear to me disease. In 1990 alone, the New England track procedures apply for the House as well. that the public would benefit by great- Journal of Medicine found that Ameri- House-Senate conferees then have 20 days to er debate about the value of alter- cans spent nearly $14 billion on alter- report. native medical treatments, and it is to native therapies, and made more visits FUNDS/TENURE stimulate that debate and ultimately to alternative practitioners than they $5 M per yr. Sunsets by 10/1/99. remove barriers to potentially effective did to primary care doctors. American By Mr. DASCHLE (for himself, treatments that I have reintroduced consumers are turning to these thera- Mr. HARKIN, Mr. HATCH, Mr. the Access to Medical Treatment Act. pies because they are perceived to be a GRASSLEY, Mr. ABRAHAM, Mr. This legislation would allow individ- less expensive and more prevention- REID, Mr. INOUYE, Mr. BAUCUS, ual patients and their physicians to use based alternative to conventional Mr. CRAIG, Mr. KEMPTHORNE, certain alternative and complementary treatments. and Mr. THOMAS): therapies not approved by the FDA. A Given the popularity of alternative S. 578. A bill to permit an individual companion measure has been intro- therapies among the American public, to be treated by a health care practi- duced in the House by Representative it will be asked why this legislation is tioner with any method of medical DEFAZIO and 43 of his colleagues. necessary. If a particular alternative treatment such individual requests, Mr. President, it has been my experi- treatment is effective and desired by and for other purposes; to the Commit- ence that efforts to expand access to patients, then why can’t it simply go tee on Labor and Human Resources. alternative treatments often produce through the standard FDA approval THE ACCESS TO MEDICAL TREATMENT ACT strong emotional reactions—on both process? Mr. DASCHLE. Mr. President, today sides of the issue. Sometimes, those re- The answer is that the time and ex- I am introducing the Access to Medical actions are so strong they detract from pense currently required to gain FDA Treatment Act. I am pleased to be the merits of the debate. approval of a treatment makes it very April 15, 1997 CONGRESSIONAL RECORD — SENATE S3209 difficult for all but large pharma- seller of the treatment. Claims may be There being no objection, the bill was ceutical companies to undertake such made by the practitioner administer- ordered to be printed in the RECORD, as an arduous and costly endeavor. The ing the treatment, but only so long as follows: heavy demands and requirements of he or she has not received any financial S. 578 the FDA approval process, and the benefit from the manufacturer, dis- Be it enacted by the Senate and House of Rep- time and expense involved in meeting tributor, or other seller of the treat- resentatives of the United States of America in them, serve to limit access to the po- ment. No statement made by a practi- Congress assembled, tentially innovative contributions of tioner about his or her administration SECTION 1. SHORT TITLE. individual practitioners, scientists, of a treatment may be used by a manu- This Act may be cited as the ‘‘Access to Medical Treatment Act’’. smaller companies, and others who do facturer, distributor, or other seller to SEC. 2. DEFINITIONS. not have the financial resources to tra- advance the sale of such treatment. In this Act: verse the painstakingly detailed path What this means is that there can be (1) ADVERTISING CLAIMS.—The term ‘‘adver- to certification. no marketing of any treatment admin- tising claims’’ means any representations Thus, the current system has the un- istered under this bill. As such, there made or suggested by statement, word, de- fortunate effect of both discouraging should be little incentive for anyone to sign, device, sound, or any combination the exploration of life-saving treat- try to use this bill as a bypass to the thereof with respect to a medical treatment. ments and preventing low-cost treat- (2) DANGER.—The term ‘‘danger’’ means process of obtaining FDA approval. any negative reaction that— ments from gaining access to the mar- Also, because only properly licensed (A) causes serious harm; ket. The Access to Medical Treatment practitioners are able to make any (B) occurred as a result of a method of Act attempts to open the door to prom- claims at all about the efficacy of a medical treatment; ising treatments that may not have treatment, there should be little room (C) would not otherwise have occurred; and huge financial backing. for so-called quack medicine. In short, (D) is more serious than reactions experi- I want to be absolutely clear, how- if an individual or a company wants to enced with routinely used medical treat- ments for the same medical condition or ever, that this legislation will not dis- earn a profit off their product, they mantle the FDA, undermine its author- conditions. would be wise to go through the stand- (3) DEVICE.—The term ‘‘device’’ has the ity or appreciably change current med- ard FDA approval process rather than same meaning given such term in section ical practices. It is not meant to at- utilizing this legislation. 201(h) of the Federal Food, Drug, and Cos- tack the FDA or its approval process. In essence, this legislation addresses metic Act (21 U.S.C. 321(h)). It is meant to complement it. the fundamental balance between two (4) DRUG.—The term ‘‘drug’’ has the same meaning given such term in section 201(g)(1) The FDA should—and would under seemingly irreconcilable interests: the this legislation—remain solely respon- of the Federal Food, Drug, and Cosmetic Act protection of patients from dangerous (21 U.S.C. 321(g)(1)). sible for protecting the health of the treatments and those who would advo- Nation from unsafe and impure drugs. (5) FOOD.—The term ‘‘food’’— cate unsafe and ineffective medicine— (A) has the same meaning given such term The heavy demands and requirements and the preservation of the consumer’s in section 201(f) of the Federal Food, Drug, placed upon treatments before they freedom to choose alternative thera- and Cosmetic Act (21 U.S.C. 321(f)); and gain FDA approval are important, and pies. (B) includes a dietary supplement as de- I firmly believe that treatments receiv- The complexity of this policy chal- fined in section 201(ff) of such Act. ing the Federal Government’s stamp of (6) HEALTH CARE PRACTITIONER.—The term lenge should not discourage us from approval should be proven safe and ef- ‘‘health care practitioner’’ means a physi- seeking to solve it. I am convinced that fective. cian or another person who is legally author- the public good will be served by a seri- The real question posed by this legis- ized to provide health professional services ous attempt to reconcile these con- in the State in which the services are pro- lation is whether it is in the public in- tradictory interests, and I am hopeful vided. terest to simply forgo the potential the discussion generated by introduc- (7) LABEL.—The term ‘‘label’’ has the same benefits of alternative treatments be- tion of this legislation will help point meaning given such term in section 201(k) of cause of economies of scale, or wheth- the way to its resolution. I welcome the Federal Food, Drug, and Cosmetic Act er, working with the FDA, it makes (21 U.S.C. 321(k)). anyone who would like to join me in sense to explore ways to bring such (8) LABELING.—The term ‘‘labeling’’ has the promoting this important debate to co- treatments to the marketplace. same meaning given such term in section Mr. President, the Access to Medical sponsor this legislation. I also welcome 201(m) of the Federal Food, Drug, and Cos- Treatment Act proposes one way to ex- alternative suggestions for accomplish- metic Act (21 U.S.C. 321(m)). ing this objective. (9) LEGAL REPRESENTATIVE.—The term tend freedom of choice to medical con- ‘‘legal representative’’ means a parent or an sumers under carefully controlled situ- As I mentioned previously, I am sym- pathetic to the concern about the need individual who qualifies as a legal guardian ations. It suggests that individuals—es- under State law. pecially those who face life-threaten- to protect patients against unscrupu- (10) MEDICAL TREATMENT.—The term ‘‘med- ing afflictions for which conventional lous practitioners. Individuals are ical treatment’’ means any food, drug, de- treatments have proven ineffective— often at their most vulnerable when vice, or procedure that is used and intended should have the option of trying an al- they are in desperate need of medical as a cure, mitigation, treatment, or preven- ternative treatment, so long as they treatment. That is why it is absolutely tion of disease. critical that a proposal of this nature (11) SELLER.—The term ‘‘seller’’ means a have been fully informed of the nature person, company, or organization that re- of the treatment, potential side effects include strong protections to ensure that patients are not subject to char- ceives payment related to a medical treat- and any other information necessary to ment of a patient of a health practitioner, fully meet FDA informed consent re- latans who would prey on their except that this term does not apply to a quirements. This is a choice that is misfortunate and fears for personal health care practitioner who receives pay- rightly left to the consumer, and not gain. The Access to Medical Treatment ment from an individual or representative of dictated by the Federal Government. Act contains such protections. such individual for the administration of a The bill requires that a treatment be Mr. President, this legislation rep- medical treatment to such individual. administered by a properly licensed resents an honest attempt to focus se- SEC. 3. ACCESS TO MEDICAL TREATMENT. rious attention on the value of alter- (a) IN GENERAL.—Notwithstanding any health care practitioner who has per- other provision of law, and except as pro- sonally examined the patient. It re- native treatments and overcome cur- vided in subsection (b), an individual shall quires the practitioner to comply fully rent obstacles to their safe develop- have the right to be treated by a health care with FDA informed consent require- ment and utilization. If there is a bet- practitioner with any medical treatment (in- ments. And it strictly regulates the ter way to make alternative therapies cluding a medical treatment that is not ap- circumstances under which claims re- available to people safely, let’s find proved, certified, or licensed by the Sec- garding the efficacy of a treatment can that way. But let’s continue this dis- retary of Health and Human Services) that cussion and get the job done. such individual desires or the legal rep- be made. resentative of such individual authorizes if— No advertising claims can be made I ask unanimous consent that the (1) such practitioner has personally exam- about the efficacy of a treatment by a text of the Access to Medical Treat- ined such individual and agrees to treat such manufacturer, distributor, or other ment Act be printed in the RECORD. individual; and S3210 CONGRESSIONAL RECORD — SENATE April 15, 1997 (2) the administration of such treatment and Cosmetic Act (21 U.S.C. 343–2 and and ought to be. But it might be said does not violate licensing laws. 343(r)(6)). that if we are a city, we are in need of (b) MEDICAL TREATMENT REQUIREMENTS.—A SEC. 4. REPORTING OF A DANGEROUS MEDICAL urban renewal. We need to restart our health care practitioner may provide any TREATMENT. engine, to regenerate the potential for medical treatment to an individual described (a) HEALTH CARE PRACTITIONER.—If a in subsection (a) if— health care practitioner, after administering growth, for the development of oppor- (1) there is no reasonable basis to conclude a medical treatment, discovers that the tunity in this culture. that the medical treatment itself, when used treatment itself was a danger to the individ- Economic growth has been the idea, as directed, poses an unreasonable and sig- ual receiving such treatment, the practi- it has been the mechanism whereby nificant risk of danger to such individual; tioner shall immediately report to the Sec- America could find a special place of (2) in the case of an individual whose treat- retary of Health and Human Services the na- opportunity, where America could be ment is the administration of a food, drug, ture of such treatment, the results of such that particular country that said: or device that has to be approved, certified, treatment, the complete protocol of such Give me your tired, your poor, your or licensed by the Secretary of Health and treatment, and the source from which such huddled masses, yearning to breathe free, Human Services, but has not been approved, treatment or any part thereof was obtained. the wretched refuse of your teeming shore. certified, or licensed by the Secretary of (b) SECRETARY.—Upon confirmation that a Send these, the homeless tempest tossed, to Health and Human Services— medical treatment has proven dangerous to me. (A) such individual has been informed in an individual, the Secretary of Health and writing that such food, drug, or device has Human Services shall properly disseminate With what the writer of that great not yet been approved, certified, or licensed information with respect to the danger of poem inscribed on the Statue of Lib- by the Secretary of Health and Human Serv- the medical treatment. erty, America could proudly proclaim, ices for use as a medical treatment of the medical condition of such individual; and SEC. 5. REPORTING OF A BENEFICIAL MEDICAL ‘‘I lift my lamp beside the golden TREATMENT. (B) prior to the administration of such door.’’ If a health care practitioner, after admin- treatment, the practitioner has provided the America has been a place of oppor- istering a medical treatment that is not a patient a written statement that states the tunity because it has been a place of conventional medical treatment for a life- following: threatening medical condition or conditions, growth, with an understanding that we ‘‘WARNING: This food, drug, or device has discovers that such medical treatment has could always grow our way through not been declared to be safe and effective by positive effects on such condition or condi- problems. Growth has been that mar- the Federal Government and any individual tions that are significantly greater than the who uses such food, drug, or device, does so velous key toward providing some new at his or her own risk.’’; positive effects that are expected from a con- hope for individuals. Individuals from (3) such individual has been informed in ventional medical treatment for the same anywhere and everywhere at all times writing of the nature of the medical treat- condition or conditions, the practitioner in our history have provided a part of ment, including— shall immediately make a reporting, which the stream of a growing America, a set is accurate and truthful, to the Office of Al- (A) the contents and methods of such of opportunities that is the envy of the treatment; ternative Medicine of— (1) the nature of such medical treatment world. Yet what is happening and has (B) the anticipated benefits of such treat- happened to our growth? What has hap- ment; (which is not a conventional medical treat- (C) any reasonably foreseeable side effects ment); pened to our culture? Working families that may result from such treatment; (2) the results of such treatment; and are being stressed. They get up early. (D) the results of past applications of such (3) the protocol of such treatment. They work hard. They sacrifice time treatment by the health care practitioner SEC. 6. TRANSPORTATION AND PRODUCTION OF with each other and with their chil- and others; and FOOD, DRUGS, DEVICES, AND OTHER EQUIPMENT. dren, and they seem to have less and (E) any other information necessary to less to show for it. They are squeezed fully meet the requirements for informed Notwithstanding any other provision of the Federal Food, Drug, and Cosmetic Act not just financially but as families. consent of human subjects prescribed by reg- What is the reason? Why is that we ulations issued by the Food and Drug Admin- (21 U.S.C. 201 et seq.), a person may— istration; (1) introduce or deliver into interstate as a culture find ourselves laboring (4) except as provided in subsection (c), commerce a food, drug, device, or any other under this weight rather than soaring there have been no advertising claims made equipment; and with the opportunity characteristic of with respect to the efficacy of the medical (2) produce a food, drug, device, or any our heritage? treatment by the practitioner; other equipment, I think we have a tax load that is (5) the label or labeling of a food, drug, or solely for use in accordance with this Act if weighing down individuals in this cul- device that is a medical treatment is not there have been no advertising claims by the ture, and it is a major one. It is simple. manufacturer, distributor, or seller. false or misleading; and It is not hard to understand. The most (6) such individual— SEC. 7. VIOLATION OF THE CONTROLLED SUB- (A) has been provided a written statement STANCES ACT. recent issue of Baron’s magazine, that such individual has been fully informed A health care practitioner, manufacturer, which is a magazine that monitors with respect to the information described in distributor, or other seller may not violate business activity and government and paragraphs (1) through (4); any provision of the Controlled Substances families and opportunity, spells out the (B) desires such treatment; and Act (21 U.S.C. 801 et seq.) in the provision of tremendous tax load—heavier at this (C) signs such statement. medical treatment in accordance with this moment in history than at any other (c) CLAIM EXCEPTIONS.— Act. time in the history of America. It is in- (1) REPORTING BY A PRACTITIONER.—Sub- SEC. 8. PENALTY. section (b)(4) shall not apply to an accurate teresting to note that we were able to A health care practitioner who knowingly spend our way out of the Great Depres- and truthful reporting by a health care prac- violates any provisions under this Act shall titioner of the results of the practitioner’s not be covered by the protections under this sion with lower tax rates than we now administration of a medical treatment in Act and shall be subject to all other applica- have. We were able to make the world recognized journals, at seminars, conven- ble laws and regulations. safe for democracy or to work toward tions, or similar meetings, or to others, so making it in the First World War. We long as the reporting practitioner has no di- By Mr. ASHCROFT: were able to defeat the onerous and rect or indirect financial interest in the re- S. 579. A bill to amend the Internal terrible power of Nazi Germany in the porting of the material and has received no Revenue Code of 1986 to allow a deduc- financial benefits of any kind from the man- Second World War with lower tax rates ufacturer, distributor, or other seller for tion for the old-age, survivors, and dis- than we have now. such reporting. Such reporting may not be ability insurance taxes paid by employ- Big government is taking so much of used by a manufacturer, distributor, or other ees and self-employed individuals, and the working wages of Americans that seller to advance the sale of such treatment. for other purposes; to the Committee Americans no longer have the re- (2) STATEMENTS BY A PRACTITIONER TO A PA- on Finance. sources to spend on themselves that TIENT.—Subsection (b)(4) shall not apply to THE WORKING AMERICANS WAGE RESTORATION they need. any statement made in person by a health ACT The family budget in 1955, for exam- care practitioner to an individual patient or Mr. ASHCROFT. Mr. President, it ple, was 27.7 percent in total taxes. an individual prospective patient. (3) DIETARY SUPPLEMENTS STATEMENTS.— has been said that America is a city on Now the total taxes of the average Subsection (b)(4) shall not apply to state- a hill, a special example for the rest of American family is well over 38 per- ments or claims permitted under sections the world to observe—a place of hope, a cent. And you are well aware of the 403B and 403(r)(6) of the Federal Food, Drug, place of opportunity—what America is fact that we spend more on taxes than April 15, 1997 CONGRESSIONAL RECORD — SENATE S3211 we do on food, clothing, and shelter the person who makes $65 million in in- of whether or not the money will be combined. We need to take a look at come. The tax benefit is the same once spent; it is a question of whether Gov- what we are spending and how we are you reach the $65,000 level. ernment will spend the money or peo- deploying it, to see what has happened So this is a tax benefit that is not fo- ple will spend the money. I believe peo- to what we thought were our wage in- cused on the rich. It is not any more ple can decide best. creases. We have had a lot of wage in- valuable to the very rich than it is to The passage of this act would affect creases, but we end up with less and the middle class. The truth is this is the take-home pay of 77 million Ameri- less. It turns out that the wage in- the middle-class tax cut that is fair. It cans who would have more resources to crease for America has been stolen by provides for people who work, that devote to meet the needs of their fami- the Government. If we had the kind of they will not be double taxed on their lies, and it would be a measure of pro- income that we have now and we were work. Social Security taxes are the viding equity and fairness so that they paying 27.7 in total taxes like we were only tax in America levied on work. In- would not be double taxed and neither in 1955, we would have had real wage come taxes are levied on earned income would they be taxed unequally and in a increases. or unearned income, but Social Secu- discriminatory way as compared to the Mr. President, today is April 15. It is rity taxes are levied on work. How taxes which are levied on the corporate tax day. Yet most Americans do not re- ironic that in America we would have a community. alize that we are forced to pay a double double tax on work. We ought to be Mr. President, so often we say that tax. We pay income tax on the Social standing for a proposition, instead of bigger Government is required because Security taxes that are deducted from double taxing work, at least give it some think that families will not do our check, on those taxes which are equality with other income that would what they ought to do. I believe we pulled out before we ever see our not be double taxed. We would give have come to a juncture where Govern- check. We pay income taxes on that Americans an opportunity to retain ment has made it impossible for fami- tax. That is particularly unfortunate. some of that for which they had lies to do what they need to do. Fami- We are double taxed. Money that we worked so they could spend it them- lies want to share. They want to be in- never see, money that goes to Govern- selves. volved in their communities. They ment, we pay a second tax to Govern- There would be a significant im- want to be involved in reaching out to ment on that money. It does not make provement in the setting for the aver- other people. When Government takes sense. age two-income family in America. The such a big portion of your income, Interestingly enough, this is not a average two-earner family pays about when you have to work 3 hours every tax that hits American businesses the $1,227 more in income taxes because day to pay your taxes and you struggle same way. As you will recall, half of they cannot deduct from their income through the rest of your day to meet the Social Security tax is paid by citi- tax the taxes they have already paid to your own needs, it does not leave much zens; half is paid by corporations or the Social Security. If we allow them to opportunity for sharing. employers. The citizen who pays the deduct those, that means that $1,227 The purpose of Government is related tax pays a double tax—not only pays that is paid in income taxes would be to growth. It is related to the growth of the Social Security tax but then has an available for individuals to have to people, not the growth of Government. income tax on that same money that is meet their family needs. This is not If we are to perpetuate a system where required to be taken out of his remain- just a way of saying that people will be the only thing that can grow is Govern- ing funds. The business that pays So- able to spend the money. It is saying ment, we have made a mistake. We cial Security taxes gets to deduct from that people will be able to spend this would have destroyed the genius of its other taxes what it has paid in So- money on themselves rather than have America and repudiated our rich his- cial Security taxes, or gets to deduct Government spend this money on more tory of being able to grow our way from its taxable income what it has Government programs. I think most through any challenge. It is time for paid in Social Security taxes. Americans understand that they would us, the United States of America, the So the business community gets fair be better off deciding what they need city on the Hill, again to be a city of treatment of a single tax while the most and how best to meet those needs hope and opportunity. It is time for us working individual has a double tax than expecting Government to spend to provide a basis upon which the situation there, and it is time to end the money for them. American worker and the American that kind of arbitrary, unreasonable, The thrust of the matter is that this economy can grow. We can do that by unequal, discriminatory approach to $1,227 per year for the average two-in- ceasing the practice of double taxing the worker and to provide parity with come family would be a welcome relief work. We must stop double taxing the reasonable expectation that is de- from a tax load which is higher than it working Americans. manded from the employer and the cor- has ever been before in the history of The bill, which I now send to the poration. If this is deductible to the this country. desk, is cosponsored by Senators employers and to corporations and to I had the privilege of being Governor CRAIG, SHELBY, COCHRAN, HAGEL, and businesses, the payment of those taxes in my State for two terms before I HATCH. It would end the double tax- should also be deductible to individuals came here, and I know what jobs mean ation that American workers pay on in our culture. and how important jobs are. What is Social Security taxes, because income The ordinary citizen, the worker, interesting to note is that if we were to taxes are levied on those amounts cannot though, and it is time that we implement this tax measure of relief which are deducted as payroll taxes, lift the American worker at least to for the American people, the scholars known as Social Security taxes. tax parity and to tax equality, a posi- estimate it would mean 900,000 new Mr. President, I ask unanimous con- tion that they should share with the jobs in this country. Nine hundred sent that the text of the bill be printed corporate community and the business thousand new jobs would provide a real in the RECORD. community. spurt of growth for this Nation and There being no objection, the bill was For those who are fond of saying that would help us reacquire the sense of ordered to be printed in the RECORD, as every tax break is a tax break for the dynamic that America has had histori- follows: rich, it is time to think again. This is cally and that our heritage contains. S. 579 not a proposal that is designed to help Nine hundred thousand new jobs would Be it enacted by the Senate and House of Rep- people who make millions and millions be an average of about 18,000 jobs per resentatives of the United States of America in of dollars. Social Security taxes are State. I know that 18,000 jobs is equiva- Congress assembled, only levied on the first $65,000 of in- lent to at least 3 car plants, new car SECTION 1. SHORT TITLE. come. If we provide a deduction for plants, in a State. That would mean This Act may be cited as the ‘‘Working those Social Security taxes which are growth. That would mean opportunity. Americans Wage Restoration Act’’. paid, the person who makes $65,000 in It would build for the future of this SEC. 2. DEDUCTION FOR OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE TAXES income does not have any smaller de- great country. I think we need to re- OF EMPLOYEES AND SELF-EM- duction or any smaller benefit than the mind ourselves on a consistent basis PLOYED INDIVIDUALS. person who makes $650,000 in income or when we tax people it is not a question (a) TAXES OF EMPLOYEES.— S3212 CONGRESSIONAL RECORD — SENATE April 15, 1997 (1) DEDUCTION ALLOWED IN ARRIVING AT AD- 1401(a) and one-half of the rate of tax under Considering the danger posed by our JUSTED GROSS INCOME.—Section 62(a) of the section 1401(b);’’. growing national debt, who could op- Internal Revenue Code of 1986 (defining ad- (c) EFFECTIVE DATE.—The amendments pose $20 billion in spending cuts. made by this section shall apply to taxable justed gross income) is amended by inserting The American people will be able to after paragraph (16) the following new para- years beginning after December 31, 1997. graph: tell us if we are on the right track, or ‘‘(17) EMPLOYEES’ OASDI TAXES.—The deduc- By Mr. SMITH of New Hampshire if they want more deficit and debt re- tion allowed by section 164(g).’’ (for himself, Mr. FAIRCLOTH, duction. (2) DETERMINATION OF DEDUCTION.—Section Mr. GRAMM, Mr. HATCH and Mr. I challenge my colleagues to support 164 of such Code (relating to deduction for KYL): their claims that they support a bal- taxes) is amended by redesignating sub- S. 580. A bill to amend the Internal anced budget. Ask the taxpayers. section (g) as subsection (h) and by inserting Revenue Code of 1986 to allow individ- THE PROCESS WOULD BE SIMPLE after subsection (f) the following new sub- uals to designate that up to 10 percent section: First, by checking off a box on their ‘‘(g) EMPLOYEES’ OASDI TAXES.— of their income tax liability be used to April 1040 tax forms, taxpayers would ‘‘(1) IN GENERAL.—In the case of an individ- reduce the national debt, and to re- designate up to 10 percent of their in- ual, in addition to the taxes described in sub- quire spending reductions equal to the come tax liability, what they owe, for section (a), there shall be allowed as a deduc- amounts so designated; to the Commit- the purpose of deficit and debt reduc- tion for the taxable year an amount equal to tee on Finance. tion. Once the deficit is eliminated, the sum of— THE TAXPAYER DEBT BUY-DOWN ACT OF 1997 designated cuts would buy down the ‘‘(A) the taxes imposed by section 3101(a) Mr. SMITH, Mr. President, today I for the taxable year, and debt. ‘‘(B) the taxes imposed by section 3201(a) am introducing legislation to create an Second, the following October, the for the taxable year but only to the extent active role for ‘‘We the People’’ in the Treasury Department would calculate attributable to the percentage in effect fiscal matters of the Federal Govern- the amount demanded by the tax- under section 3101(a). ment. payers. Congress would then have until ‘‘(2) SPECIAL RULE FOR CERTAIN AGREE- I am joined by my colleagues, Sen- the end of the next fiscal year to cut MENTS.—For purposes of paragraph (1), taxes ators FAIRCLOTH, GRAMM, HATCH, and Federal spending in any area to meet imposed by section 3101(a) shall include KYL, who are original cosponsors of this target. amounts equivalent to such taxes imposed this measure. Third, if Congress failed to make the with respect to remuneration covered by— WHY WE NEED THE TAXPAYER DEBT BUY-DOWN: ‘‘(A) an agreement under section 218 of the necessary cuts, an automatic across- THE PRESIDENT AND CONGRESS HAVE NOT Social Security Act, or the-board sequester of all Government STEPPED UP TO THE PLATE ‘‘(B) an agreement under section 3121(l) (re- accounts, with some necessary exemp- On February 6, President Clinton lating to agreements entered into by Amer- tions, would be triggered at the end of submitted his fifth unbalanced budget. ican employers with respect to foreign affili- the session. This sequester would en- ates). Then, on March 4, the Senate failed by one vote to approve the balanced sure compliance with the taxpayer- ‘‘(3) COORDINATION WITH SPECIAL REFUND OF mandated spending reductions. How- SOCIAL SECURITY TAXES.—Taxes shall not be budget constitutional amendment taken into account under paragraph (1) to (BBCA). ever, I would hope this would not occur the extent the taxpayer is entitled to a spe- During the debate on the balanced if Congress listens to the mandate of cial refund of such taxes under section budget constitutional amendment, the the taxpayers. 6413(c). president and his congressional allies Fourth, furthermore, to harmonize ‘‘(4) COORDINATION WITH EARNED INCOME decried the constitutional change as this grassroots effort with congres- CREDIT.—No deduction shall be allowed under too permanent, and argued that Con- sional efforts to balance the budget, paragraph (1) for any taxable year if the indi- gress could impose fiscal self-dis- the check-off will initially mandate vidual elects to claim the earned income spending cuts and debt retirement only credit under section 32 for the taxable year.’’ cipline. (3) CONFORMING AMENDMENT.—The next to In response to these claims, today I over and above the savings that Con- last sentence of section 275(a) of such Code is am reintroducing the Taxpayer Debt gress otherwise enacts. For example, if amended by inserting ‘‘or 164(g)’’ after Buy-Down Act. This legislation not Congress passes legislation that imple- ‘‘164(f)’’. only answers appeals for statutory re- ments savings of $50 billion in fiscal (b) DEDUCTION FOR SELF-EMPLOYED INDIVID- strictions, but also takes the balanced year 1999, and the check-off for that UALS.— budget debate to the people. year totals $60 billion, only an addi- (1) IN GENERAL.—Paragraph (1) of section If the President and Congress cannot tional $10 billion would be cut under 164(f) of the Internal Revenue Code of 1986 agree, the American people should de- (relating to deduction for one-half of self-em- this bill. ployment taxes) is amended to read as fol- cide. lows: I first introduced the bill in 1992, and By Mr. DURBIN (for himself, Mr. ‘‘(1) IN GENERAL.—In the case of an individ- it was endorsed by President George LEAHY, Mrs. FEINSTEIN and Mr. ual, in addition to the taxes described in sub- Bush. TORRICELLI): section (a), there shall be allowed as a deduc- More than one-third of the Senate S. 581. A bill to amend section 49 of tion for the taxable year an amount equal to voted for my plan which I offered as an title 28, United States Code, to limit the sum of— amendment to the tax bill of 1992. the periods of service that a judge or ‘‘(A) the taxes imposed by section 1401(a) I feel the time has come again to em- justice may serve on the division of the for such taxable year, plus power the taxpayers to tell Congress United States Court of Appeals for the ‘‘(B) 50 percent of the taxes imposed by sec- how much spending they want cut in tion 1401(b) for such taxable year. District of Columbia to appoint inde- order to balance the budget and buy pendent counsels, and for other pur- In the case of an individual who elects to down the debt. claim the earned income credit under section poses; to the Committee on the Judici- For example; in 1996, individual in- ary. 32 for the taxable year, only 50 percent of the come tax revenue totaled over $650 bil- taxes described in subparagraph (A) shall be INDEPENDENT COUNSEL LEGISLATION taken into account.’’ lion. So if every taxpayer checked off the Mr. DURBIN. Mr. President, I rise (2) CONFORMING AMENDMENTS.— today to introduce, with Senators (A) Section 32(a)(1) of such Code is amend- maximum designation of 10-percent, LEAHY, FEINSTEIN and TORRICELLI, leg- ed by inserting ‘‘who elects the application Congress would have to come up with of this section’’ after ‘‘eligible individual’’. roughly $65 billion in spending cuts. islation dealing with the three-judge (B) The heading for section 164(f) of such Admittedly, this level of participa- panel that appoints independent coun- Code is amended by striking ‘‘ONE-HALF’’ tion is highly unlikely initially. sels. and inserting ‘‘PORTION’’. A more reasonable estimate would be In the last few days, we have heard a (C) Section 1402(a)(12) of such Code is that the total taxpayer check-off would flurry of speeches about the appoint- amended— amount to about 3-percent of all indi- ment of an independent counsel and (i) by striking ‘‘one-half’’ the first place it about the grasp that the Attorney Gen- appears and inserting ‘‘portion’’, and vidual tax revenue in the first few (ii) by striking subparagraph (B) and in- years. eral has on her job. Recently some serting: Under this scenario, Congress would Members of Congress have suggested ‘‘(B) a percentage equal to the sum for only have to find less than $20 billion that we should open an investigation such year of the rate of tax under section in spending reductions. on the Attorney General because of her April 15, 1997 CONGRESSIONAL RECORD — SENATE S3213 decision not to seek the appointment called on the panel to promulgate rules SECTION 1. LIMITATION ON PERIODS OF SERV- of an independent counsel. of procedure for practice before it, clar- ICE THAT A JUDGE MAY SERVE ON THE DIVISION TO APPOINT INDE- This is a new high in the efforts to ify available avenues of appellate re- PENDENT COUNSELS. politicize the independent counsel stat- view, and undertake to catalog and (a) LIMITATION ON SERVICE.— ute and a new low in bullying tactics. preserve independent counsel reports (1) IN GENERAL.—Section 49 of title 28, And, Mr. President, these tactics and make public versions accessible United States Code, is amended by adding at have worked insofar as their goal was upon request. the end the following: to politicize this issue. Many Ameri- They have not done so. Only re- ‘‘(g)(1) Notwithstanding subsections (a) cently, the panel issued some draft through (f) and subject to paragraphs (2) and cans now view this statute as just an- (3) of this subsection, no judge or justice other political football. Here in Con- rules of procedure dealing with attor- may serve more than 2 two-year periods as- gress, we toss about calls for an inde- ney fee applications, but in 3 years signed to the division to appoint independent pendent counsel. We threaten to mi- they do seem to have not otherwise counsels under this section. nutely examine every act of the Attor- complied with Congress’s request. ‘‘(2) For purposes of paragraph (1), service ney General in her efforts to carry out This special division is like a magi- in filling a vacancy on the division of— her duties under the statute. cian’s hat: independent counsels ‘‘(A) less than 1 year shall not apply; and emerge from it. But we do not know ‘‘(B) 1 year or more shall be considered Meanwhile, one of the most impor- service for the full two-year period. tant institutions to the operation of how. Are there any criteria used by the ‘‘(3) A judge of the United States Court of the independent counsel statute goes panel to appoint an independent coun- Appeals for the District of Columbia who has unexamined. The three-judge panel sel? Does the panel make any effort to served 2 two-year periods on the division that appoints and oversees the inde- assure that the person it appoints is may be assigned to serve an additional two- pendent counsels wields enormous actually independent? How does some- year period, if— ‘‘(A) every other judge of such Court other- power. And it has tainted itself one get this job—a job with a virtually unlimited budget and a stunning array wise eligible for such assignment has served through close connections to partisan 2 two-year periods in such assignment; and politics and through the appointment of powers? We do not know because the Court ‘‘(B) the period of time since such judge of special counsels who are likewise last served in such assignment is not less partisans. will not tell us, even though we asked than the period of time any other judge of This panel seems to operate free of them to 3 years ago. such Court (who is otherwise eligible to We need to do a few things about this any genuine scrutiny. It plays one of serve) last served in such assignment.’’. panel. The legislation I introduce the most important roles in the admin- (2) EFFECTIVE DATE.—The amendments today is intended to remove any taint made by this subsection shall take effect on istration of the statute. And it is the of partisan politics from this panel. It the date of enactment of this Act and shall most in need of some oversight. requires that judges on the panel serve apply to any judge or justice serving on such The last time an independent counsel no more than two, 2-year terms. This date on the division to appoint independent was appointed, we all saw just how em- will ensure that no one judge gets en- counsels of the United States Court of Ap- broiled that three-judge panel is in par- peals for the District of Columbia. trenched in appointing independent (b) ADMINISTRATION OF DIVISION BY THE CIR- tisan politics. The head of that panel, counsels. And it assures that the divi- the Republican-appointed David CUIT JUDICIAL COUNCIL.— sion does not get politicized. In addi- (1) IN GENERAL.—Section 332 of title 28, Sentelle, had lunch with two Repub- tion, it is consistent with current law. United States Code (including subsection (d) lican Senators just a few weeks before Why have 2-year terms if the judges of such section relating to making all nec- he appointed an independent counsel just stay on as long as they want? The essary and appropriate orders for the effec- who was a Republican Justice Depart- 2-year term was clearly inserted with tive and expeditious administration of jus- ment official and who had just recently the view that judges would not stay on tice), shall apply with respect to the admin- publicly contemplated running for the istration of the division of the United States the division forever. Court of Appeals for the District of Columbia Senate as a Republican. As a result of In addition to limiting judges on the this incident, five former presidents of to appoint independent counsels by the Cir- panel to 4 years, the measure I intro- cuit Judicial Council for the District of Co- the American Bar Association issued a duce requires that the division promul- lumbia. letter rebuking Judge Sentelle for his gate the very rules that we asked them (2) RULES.—No later than 6 months after actions. to issue 3 years ago. the date of enactment of this Act, the Cir- A recent article in the Legal Times The special division should not be a cuit Judicial Council for the District of Co- noted: mysterious black box. People who prac- lumbia shall promulgate rules to— (A) govern practice and procedures before In fact, with the appointment of independent tice before it should know the rules. the division to appoint independent counsels; counsel[s] handled by a highly secretive Attorney fee applications are the most (B) govern the procedure for the appoint- three-judge panel, named by the chief judge common things the Division has to ment of an independent counsel by the divi- of the United States, it could be argued that deal with, but this provision also re- sion; one partisan system has simply been sup- (C) clarify procedures for judicial appellate planted by another. quires that the Special Division have rules governing the appointment of an review of actions of the division; and Let me explain what the panel cur- independent counsel. We should know (D) catalog and preserve independent coun- rently does and how that contributes what criteria and what procedure they sel reports and make public versions avail- able upon request. to the failings of the statute. use to assure that the independent The first flaw in the statute is in the counsel is indeed independent and Mr. LEAHY. Mr. President, the whole appointment terms of the judges who qualified. purpose of the independent counsel sit on this special panel. Currently, Mr. President, I hope we can all agree law—to get politics out of the process three judges are appointed to the panel that this measure is vitally needed. It of investigating politically potent mat- by the Chief Justice of the United is simply aimed at improving the oper- ters—has been severely undercut re- States. The judges are appointed to the ation of the independent counsel stat- cently by partisan efforts to bully the division for 2-year terms. ute not tearing it down. It’s goal is to Attorney General into appointing an But David Sentelle is now serving his take some partisan politics out of the independent counsel to investigate third 2-year term. Judge John D. system and to put a little more inde- fundraising activities in the 1996 Presi- Butzner, Jr., is in the middle of his pendence back into the statute. dential campaign. In fact, some Repub- fourth 2-year term. And Judge Peter T. Mr. President, I ask unanimous con- licans in Congress have threatened Fay is in the midst of his second 2-year sent that the text of the bill be printed that if Janet Reno refuses to do what term. in the RECORD. they want, she will be investigated and In short, some judges are becoming There being no objection, the bill was her job will be at stake. entrenched in the independent counsel ordered to be printed in the RECORD, as This marks a new low in the process. follows: politicization of the independent coun- A second flaw in the judges’ panel is S. 581 sel process. These threats demean our in its consistent failure to issue any Be it enacted by the Senate and House of Rep- system of justice and, I fear, under- rules of procedure and practice. In 1994, resentatives of the United States of America in mines public confidence in all branches when we reauthorized the act, Congress Congress assembled, of government. S3214 CONGRESSIONAL RECORD — SENATE April 15, 1997 Continued politicization of the inde- Mr. President, the whole purpose of his or her tax bill. That equates to 2 pendent counsel process will be the the independent counsel law—to get hours 49 minutes of each working day death knell for this law. The American politics out of the process of inves- laboring to pay taxes. That’s hard time people already have legitimate ques- tigating politically potent matters— any way you slice it. tions about how much independent has been severely undercut recently by Over the years, April 15 has counsels cost, how long they take, and partisan efforts to bully the Attorney metamorphosized from being a trip to how this law is working. By last count, General into appointing an independ- the dentist’s office to being a major independent counsels have cost tax- ent counsel to investigate fundraising root canal without the novocaine. payers a total of over $125 million. activities in the 1996 Presidential cam- I rise today to introduce legislation Whitewater counsel Ken Starr alone paign. In statement after statement by that will change the date on which in- has already spent over $22 million. We otherwise responsible Members of Con- dividuals file their Federal income tax still have an independent counsel in- gress, they tell her how she should use returns from April 15 to May 9, Tax vestigating matters from the Reagan here discretion and how she should Freedom Day. administration. make up her mind, before she even has While this legislation does little to Suspicions about the role of partisan an opportunity to do so. Some Repub- bring about a change in the amount of politics in the selection of so-called licans in Congress have threatened money paid by the average American independent counsels are already that if Janet Reno refuses to do what wage earner, I believe that issue would strong. A Reagan-appointed Chief Jus- they want, she will be investigated and be helped greatly with the enactment tice, who served in the Nixon adminis- her job will be at stake. of a balanced budget with tax relief. It tration, appointed a staunchly Repub- Basically, the American people were does ensure that your taxes won’t be lican judge to the selection panel that, asked last night to make this choice: due until you free yourself from crush- after meeting in secret, appointed par- Would they let the Speaker of the ing Federal taxes. tisan Republican Kenneth Starr to in- House, Mr. GINGRICH, determine what I ask unanimous consent that a copy vestigate Whitewater. the ethics rules should be, or would of the bill be placed in the RECORD. If the results of independent counsel they rather allow the Attorney General There being no objection, the bill was investigations cannot be trusted be- of the United States, Janet Reno to fol- ordered to be printed in the RECORD, as cause they are tainted by partisan poli- low the law and investigate whether follows: tics, we will not be able to justify the crimes have occurred? S. 583 costs of this law. Frankly, I am very confident in al- Be it enacted by the Senate and House of Rep- That is why I am commending Sen- lowing Attorney General Reno to pro- resentatives of the United States of America in Congress assembled. ator DURBIN for his work on this bill. It ceed. She has done a pretty darn good takes important steps to begin restor- SECTION 1. SHORT TITLE. job so far. She calls them as she sees This Act may be cited as the ‘‘Tax Filing ing public confidence in the process by them and has been a very straight- On Tax Freedom Day Act of 1997’’. which independent counsels are se- forward Attorney General. SEC. 2. TAX FILING ON TAX FREEDOM DAY. lected. Specifically, the bill sets term I hope that everybody, whether in (a) IN GENERAL.—Each year, in time to be limits for the three judges who serve this body or the other body, will stop included in the instruction and information on the Special Division of the D.C. Cir- trying to substitute their ethical booklets that accompany the year’s individ- cuit division that appoints the inde- standards and political judgment as to ual income tax returns, the Secretary of the pendent counsel. Under current law, what should be done and allow the At- Treasury (in this Act referred to as the ‘‘Sec- these judges serve for 2-year terms. torney General, who sticks to a very retary’’) shall determine the year’s Tax Freedom Day pursuant to subsection (d). However, all of them are on at least strong ethical standard, to follow and (b) DUE DATE FOR TAXES.—Notwithstand- their second 2-year term. The legisla- enforce the law. I believe the state- ing any other provision of law, Federal indi- tion would prohibit a judge, including ments seeking to intimidate the Attor- vidual income tax returns for each year shall the current panel, from serving more ney General mark a new low in the be due on the date of the Tax Freedom Day than 2-year terms. politicization of the independent coun- in the subsequent year (rather than April In addition, the bill would allow sun- sel process. 15th). shine on the selection of independent (c) INFORMATION PROVIDED.—The Secretary By Mr. GREGG: shall include in the instruction and informa- counsels and the results of independent tion booklets a prominent section that pro- counsel investigations. What criteria S. 583. A bill to change the date on vides the following information with respect does the Special Division use to select which individual Federal income tax to the Tax Freedom Day: independent counsels? Do they look for returns must be filed to the Nation’s (1) An explanation of Tax Freedom Day trial experience, prosecutorial experi- Tax Freedom Day, the day on which and what it signifies. ence or political experience? The bill the country’s citizens no longer work (2) A statement that Congress provided for places the Special Division that selects to pay taxes, and for other purposes; to Federal individual income tax returns to be the Committee on Finance. due on Tax Freedom Day to emphasize how independent counsels under the author- long the average citizen works to pay gov- ity of the Circuit Judicial Council and TAX FILING ON TAX FREEDOM DAY ACT OF 1997 ernment taxes. requires that the Council promulgate Mr. GREGG. Mr. President, this past (3) During leap years, a note that the within 6 months rules of practice for weekend we had a weekend of firsts. year’s Tax Freedom Day appears one cal- the Division. These rules would specify Tiger Woods became the youngest PGA endar day earlier than normal. the procedure for selection of an inde- player to ever win the Masters and in (4) A chart showing how the Tax Freedom Day’s date has changed over time. pendent counsel. This is important so doing so broke the all-time scoring (5) Information on the State and Federal everyone will know what qualifications record of 270 and established the larg- components of the total tax burden, and how the Special Division uses to evaluate est margin of victory—12 shots—in the the Tax Freedom Day would differ on a candidates. Public procedures should tournament’s 61-year history. State-by-State basis. also open up the process so that appro- On April 14, 1997, the Tax Foundation (d) DETERMINATION OF TAX FREEDOM DAY.— priate candidates know how to apply announced another first, Tax Freedom Each year, the Secretary shall determine the for independent counsel positions when Day this year will be on May 9. Tax Freedom Day as follows: (1) TAX FOUNDATION.—By contacting and openings occur. This is too important a What is Tax Freedom Day? Tax Free- receiving the date from the Tax Foundation process to be decided by political cro- dom Day is the day when the average (which has been determining and publishing nies over lunch. American stops working for the Gov- a Tax Freedom Day since 1973), in time to The bill would also require that the ernment and starts working for them- meet the informational requirements of sub- Court catalog and preserve independent selves. This year’s record date for Tax section (c), as long as the Tax Foundation counsel reports and make public ver- Freedom Day of May 9 is 2 days after maintains its— sions available upon request. last year’s record of May 7 and up sig- (A) status as a non-profit, non-partisan re- search and public education organization; This bill is not a cure-all for the nificantly since the Clinton adminis- (B) consistent method of analysis with re- problems we have seen with the inde- tration took office in 1993. spect to determining Tax Freedom Day (un- pendent counsel law. But this is a good This year the average American will less a change results in a demonstrably start. have to work a total of 128 days to pay much more accurate determination); and April 15, 1997 CONGRESSIONAL RECORD — SENATE S3215 (C) trademark on Tax Freedom Day. ing the Taxation Accountability Act to Another, and perhaps the most sig- (2) REQUIREMENTS NOT MET.—If the Tax tie the act of voting more closely with nificant way taxes are hidden is with- Foundation— the act of taxpaying. holding. Many taxpayers do not realize (A) fails to maintain any of the require- Too many Members believe that the how much the government is taking ments described in paragraph (1), or (B) does not provide such information to American people are not, and do not from them because it takes their the Secretary in a timely manner after the believe themselves to be, over-taxed. money before they ever see it. Only Secretary’s request for the information, This is wrong, Mr. President, and we when they fill out their tax forms do then the Secretary shall determine the must put an end to this mistaken and most Americans have a chance to see year’s Tax Freedom Day in accordance with dangerous belief. How? By making it the full enormity of the tax burden paragraph (3). possible for Americans to more effec- they bear. And then they have 7 (3) DETERMINATION BY THE SECRETARY.—If tively act on their convictions regard- months to cool off before election day either subparagraph (A) or (B) of paragraph ing proper levels of taxation. By mov- rolls around. (2) are met, then the Secretary shall deter- ing tax day, now April 15, to coincide Combined, these factors keep Ameri- mine the year’s Tax Freedom Day— with election day. cans from realizing the extent of their (A) by assuming that income is earned To begin with, Mr. President, most tax burden, and acting on that realiza- evenly throughout the year and that individ- Americans are not even fully aware of uals initially devote all of their earnings to tion. Information is crucial to effective paying incomes taxes; the percentage of their income the gov- voting. And just as crucial, in my view, (B) by calculating an effective tax rate for ernment takes from them in the form is information that is timely. Only if the nation, by dividing the per capita income of taxes. According to the National people know the extent of their tax tax burden (including Federal, State and Taxpayer’s Union, the average Amer- burden, and are made aware of it at a local taxes) by per capita income (using the ican family now pays almost 40 percent time when they can do something net national product, a component of the na- of its income in State, local, and Fed- about it, will they act. Only if Ameri- tional income product accounts, as compiled eral taxes. That is an all-time high. cans are aware of what is at stake on annually by the Bureau of Economic Analy- Yet, with almost 40 percent of their election day will they vote on election sis of the Department of Commerce); income going to taxes, mothers and fa- (C) by multiplying the effective tax rate day. And only if they vote, expressing determined in subparagraph (B) by the num- thers in America still are not going to their opinions on crucial issues like ber of days in the year; and the polls. Despite the huge investment taxation, can they hold Members of (D) by ensuring that a consistent meth- they are making, voluntarily or invol- Congress responsible for their actions. odology is utilized from year-to-year, and al- untarily, in government in this coun- Mr. President, we are not likely to do tering the existing methodology only if the try, this last Presidential election away with withholding or repeal Fed- new methodology is demonstrably much showed the lowest turnout in our his- eral taxes on bread and butter. But we more accurate. tory. Americans are not exercising can highlight the importance of voting The resultant total shall signify the number their right to decide who shall rep- by tieing the process of tax-filing more of days the average citizen devotes to paying resent them in deciding how that gov- closely to the process of voting. taxes, and the corresponding calendar day ernment shall be run—what it shall do To achieve this, Mr. President, I am shall be the Tax Freedom Day. and at what expense. proposing legislation that would move SEC. 3. EFFECTIVE DATE AND SECRETARIAL SUB- Why are Americans so apathetic in MISSION. tax day, the day tax forms must be the face of such staggering tax rates, (a) EFFECTIVE DATE.—This Act shall take mailed to the Internal Revenue Serv- effect for taxable years beginning after De- Mr. President? Simple, most Ameri- ice, to the first Tuesday after the first cember 31, 1997. cans simply do not know how high Monday in November—election day. In (b) SECRETARIAL SUBMISSION.—Not later their taxes really are. this way our citizens will have fresh in than 90 days after the date of the enactment Two years ago a Readers Digest poll their minds the substantive impor- of this Act, the Secretary shall submit to the asked Americans, ‘‘What is the highest tance of voting at the same time they appropriate committees of the Congress a percentage of income that is fair for a are to exercise their right to vote. legislative proposal providing for such tech- family of four making $200,000 to pay in Voter participation will increase as ef- nical and conforming amendments in the law all taxes?’’ The median response, re- as are required by the provisions of this Act. fective information increases, and thus gardless of whether the respondent was so will the accountability of elected of- By Mr. ABRAHAM: rich or poor, black or white, was 25 per- ficials, as was intended by our Found- S. 584. A bill to amend the Internal cent. ers. Revenue Code of 1986 to change the This estimate among Americans, There will be no cost to the Treasury time for filing income tax returns from that 25 percent is the limit of fair tax- because this bill moves the fiscal year April 15 to the first Tuesday in Novem- ation, is borne out by a grassroots re- into accord with the calendar year at ber, and for other purposes; to the search poll conducted last March. That the same time that it moves tax day. Committee on Finance. poll found that a majority of Ameri- But there will be a significant impact cans would favor a constitutional on our form of government. Members of THE TAXATION ACCOUNTABILITY ACT amendment to prohibit Federal, State, Congress will be put in closer touch Mr. ABRAHAM. Mr. President, we and local taxes from taking ‘‘a com- with the people, to the vast improve- made several reforms during the last bined total of more than 25 percent of ment of democracy. Congress intended to put Members of anyone’s income in taxes.’’ I urge my colleagues to support this this body in closer touch with the Yet the Tax Foundation tells us that legislation as we attempt to foster re- American people. Among those reforms a dual-income family today pays an av- sponsible voter conduct and responsible were provisions applying to Members of erage of 38.4 percent of its income in government. Congress the same laws that apply to taxes to State, local, and Federal gov- private businesses and citizens. ernments. By Mr. DORGAN (for himself, Mr. Today I am introducing legislation Why is it, Mr. President, that Ameri- DASCHLE, Mr. JOHNSON, and Mr. that I believe will further strengthen cans, are not aware of so vital a figure WELLSTONE): the ties between Members and their as the percentage of their income that S. 585. A bill to amend the Internal constituents. In particular, Mr. Presi- is taken away by the government in Revenue Code of 1986 to authorize the dent, I am concerned that, where, ac- taxes? Secretary of the Treasury to abate the cording to a USA Today poll from this One reason is the significant extent accrual of interest on income tax un- March, 70 percent of the American peo- to which the taxes they pay are hidden. derpayments by taxpayers located in ple believe that they need a tax cut, Taxes on businesses eventually are Presidentially declared disaster areas many in Congress still refuse to give it paid by families. So are sales taxes. if the Secretary extends the time for to them. Taxes on the average loaf of bread filing returns and payment of tax for I am convinced, Mr. President, that equal 31 percent of the total cost. such returns; to the Committee on Fi- some Members continue to oppose any Taxes also represent 43 percent of the nance. limits on Federal tax funds because cost of a hotel room, 54 percent of the INCOME TAX RELIEF LEGISLATION they are out of touch with the Amer- cost of a gallon of gas and 40 percent of Mr. DORGAN. Mr. President, today ican people. That is why I am introduc- the cost of an airline ticket. I’m joined by Senators DASCHLE, S3216 CONGRESSIONAL RECORD — SENATE April 15, 1997

WELLSTONE, and JOHNSON in introduc- filings following natural disasters. Last sit, and in creative approaches to our ing legislation to provide much-needed week, it did so in the Dakotas and part transportation needs, from bicycle and income tax relief for North and South of Minnesota in response to the severe pedestrian paths to ferry boats. Dakotans and others pummeled by the flooding in the region. However, the When I introduced the original severe blizzards and flooding this IRS does not now have parallel author- ISTEA legislation in 1991, I had only spring in the Upper Midwest. This leg- ity for waiving interest in these cir- four Senate cosponsors—Quentin Bur- islation builds upon the good work cumstances. dick of North Dakota, Steve Symms of started by the Internal Revenue Serv- A number of South Dakotans have Idaho, JOHN CHAFEE of Rhode Island, ice [IRS] last week. raised questions about the disparate and FRANK LAUTENBERG of New Jersey. About a week ago, the Internal Reve- treatment of penalties and interest. If The bill I introduce today has broad bi- nue Service announced that taxpayers taxpayers deserve more time to file partisan and grassroots support, with living in counties recently declared a and pay their taxes due to a natural 31 Senate cosponsors from across the disaster area by the President will be disaster, why should they be charged 9 country joining me. We have learned a able to delay filing their Federal in- percent interest, a rate many would lot over the last 6 years. come tax returns until May 30, 1997, consider punitive, on these same taxes? In 1991, my House counterpart Robert without facing a late filing or payment Senator DORGAN’s bill would address A. Roe of New Jersey, then chairman of penalty. Clearly this is significant re- this apparent anomaly in our tax laws the Public Works Committee, and I had lief for those who may be prevented and help numerous flood victims who hoped to develop a Federal highway from filing their tax returns by the are too busy securing their homes, bill that would mark the end of the era April 15, 1997 due date because of the businesses, and communities to file on of interstate highway construction. recent blizzard and flooding in our part time. Some of these people have been That era had brought the nationwide, of the country. physically prevented from obtaining multilane, limited access highway sys- In its announcement, however, the tax forms by the rising flood waters. tem, as first envisioned at the General IRS stated that it did not have the au- For this reason, I am pleased to co- Motors Futurama exhibit at the 1939 thority to waive any interest charges sponsor Senator DORGAN’s legislation, World’s Fair, and then advanced in 1944 accruing on delayed payments made and I thank him for his leadership on by President Roosevelt. The New York between April 15, 1997 and May 30, 1997. this pressing matter. State Thruway was the system’s first It makes no sense to impose interest segment. In fact, the civil engineer who charges for payments occurring after By Mr. MOYNIHAN (for himself, built it, Bertram Tallamy, left Albany the original due date, when the IRS it- Mr. LAUTENBERG, Mr. in 1956 to start up the national pro- self says—and I think properly so—that LIEBERMAN, Mr. CHAFEE, Mr. gram in Washington with funding from it will extend the time for filing in- SMITH of New Hampshire, Mrs. a dedicated tax proposed by President come tax returns and payments by tax- BOXER, Mr. WYDEN, Mr. BYRD, Eisenhower and approved by Congress payers located in a Presidentially-de- Mr. KENNEDY, Mr. INOUYE, Mr. that year. clared disaster area. In my opinion, the ROTH, Mr. BIDEN, Mr. LEAHY, But by 1991 the interstate system was IRS’s action properly suggests that in- Mr. SARBANES, Mr. DODD, Mr. essentially done and Chairman Roe and come tax return filing and payments D’AMATO, Mr. SPECTER, Mr. I confronted the question, ‘‘What made before the new date should not be KERRY, Mr. ROCKEFELLER, Ms. now?’’ treated as late. It is just that simple, MIKULSKI, Mr. JEFFORDS, Mr. We developed three principles for the and our legislation reflects this point. AKAKA, Mrs. FEINSTEIN, Mr. first highway bill to mark the post- Specifically, our legislation requires GREGG, Ms. MOSELEY-BRAUN, interstate era. First, the primary ob- the IRS to abate the assessment of in- Mrs. MURRAY, Ms. SNOWE, Mr. jective was to improve efficiency of the terest on underpayment by taxpayers SANTORUM, Mr. DURBIN, Mr. transportation system we already had. in Presidentially-declared disaster TORRICELLI, Mr. REED, and Ms. Second, the time had come to turn the areas if the IRS acts to extend the pe- COLLINS): initiative in transportation matters riod of time for filing income tax re- S. 586. A bill to reauthorize the Inter- back to the States and cities. Third, turns and paying income tax by tax- modal Surface Transportation Effi- transit was to be an option for cities. payers in such areas. The legislation ciency Act of 1991, and for other pur- I am proud to say we achieved our would apply to all Presidentially-de- poses; to the Committee on Environ- three principles and more. clared disasters announced after De- ment and Public Works. The Interstate Highway System left cember 31, 1996. THE ISTEA REAUTHORIZATION ACT OF 1997 a big mark on American cities, where Once again, the IRS wisely and Mr. MOYNIHAN. I rise with Senators the majority of the funds were spent. I promptly granted an extension for LAUTENBERG and LIEBERMAN and a dis- wrote in The Reporter in 1960: North Dakotans and others to file their tinguished group of my colleagues It is not true, as is sometimes alleged, that income tax returns due to flood-and today to introduce the ISTEA Reau- the sponsors of the interstate program ig- snow-related emergencies without fac- thorization Act of 1997. This bill is de- nored the consequences it would have in the signed to reauthorize, with some modi- cities. Nor did they simply acquiesce in ing late filing and payment penalties. them. They exulted in them . . . This rhap- But the IRS has been prevented from fications and improvements, the Inter- sody startled many of those who have been doing more by statute. Our legislation modal Surface Transportation Effi- concerned with the future of the American remedies this problem in the case of ciency Act of 1991. ISTEA is an innova- city. To undertake a vast program of urban IRS extensions due to Presidential dis- tive law that addresses the fundamen- highway construction with no thought for aster declarations. tal imbalance in national transpor- other forms of transportation seemed luna- We intend to advance this proposal at tation investment, and in so doing, tic. the first available opportunity in the serves to promote intermodalism, im- The results often were. American U.S. Senate. We urge our colleagues to prove mobility and access to jobs, pro- cities were cruelly split, their char- support this important initiative to tect the environment, empower local acter and geography changed forever, provide income tax relief for those af- communities, and enhance transpor- with interstate highways running fected by this year’s weather-related tation safety. through once-thriving working class disasters and for those living in disas- ISTEA spurred the Federal Govern- neighborhoods from Newark to Detroit ter areas in the future. ment and the States to invest their to Miami. Homes and jobs were dis- Mr. DASCHLE. Mr. President, I transportation dollars in whatever persed to the outlying suburbs and be- would like to commend Senator DOR- modes were most efficient for moving yond. The wreckage was something to GAN on the introduction of legislation people and goods and to solicit the see. Some cities have used ISTEA funds authorizing the Internal Revenue Serv- input of local communities in planning to try to repair the damage where they ice to waive interest on late payments those investments. The result was a could, using funds for transit—even of taxes in Presidentially-declared dis- dramatic increase in investment in bike and pedestrian paths—instead of aster areas. The IRS currently has au- maintenance and rehabilitation of ex- more road building. Or with plans such thority to waive penalties for late tax isting roads and bridges, in mass tran- as Boston’s Central Artery, a project April 15, 1997 CONGRESSIONAL RECORD — SENATE S3217 that will reunite some of that city’s the cost of reimbursing States for Trust Corp. was formed to help bail out most historic and colorful neighbor- those segments, and the Bureau arrived depositors, but each State did not con- hoods, separated for almost 40 years by at a figure of $5 billion in 1957 dollars. tribute according to the amount of dol- an elevated highway. ISTEA used that figure, adjusted to $30 lars lost in that State. If such an ap- Today, I ask that we continue to billion in 1991 dollars, and established a proach had been taken, Texas alone build upon our success with ISTEA, 15-year repayment schedule. The would have faced costs of over $26 bil- changing it only as needed. The bill we ISTEA Reauthorization Act retains lion, while the cost to New York would introduce today retains the basic this program, which is a matter of have been only $3 billion. Under our structure of ISTEA, which distributes basic equity and provides urgently Federal system, which allocates na- funds primarily on needs balanced with needed funds for those highways that tional resources to meet national such factors as historical shares, but are the oldest and among the most needs, the taxpayers of New York updates outmoded formulas and heavily used portions of the Interstate shouldered a significant portion of streamlines the equity adjustment pro- System. Texas’s burden. The cosponsors of the grams. The ISTEA Reauthorization These programs are essentially, but I ISTEA Reauthorization Act, most of Act of 1997 also increases flexibility for do hope that as Congress considers re- them from donor States in the larger States by allowing them to use some of authorization of ISTEA, we can ask the scheme of the balance of Federal pay- their transportation funding to support question once again, ‘‘What now?’’ ments, reject the idea that gasoline Amtrak. This is the first step this year Congress must focus on increasing taxes should be distributed according in meeting our commitment to address the U.S. investment in transportation to where they are collected. Amtrak’s long-term funding needs. infrastructure. The United States has Furthermore, some of the highway The ISTEA Reauthorization Act of watched our European and Asian com- bill proposals put forth this year, 1997 reauthorizes all the program cat- petitors finance and build innovative which distribute up to 60 percent of egories of the original legislation—the transportation infrastructure that is transportation funding on the basis of National Highway System, the Inter- the envy of the world. As the budget where the gas taxes were collected, thwart our national environmental ef- state Maintenance Program, the High- process gets underway this year, we forts. These bills reward States with way Bridge Rehabilitation and Re- will need innovative financing ideas to high gas consumption, and punish placement Program, the Congestion leverage scarce Federal dollars and ad- States that conserve fuel and invest in Mitigation and Air Quality Improve- dress our chronic multi-billion dollar mass transit. Under these proposals, a ment Program, the Surface Transpor- underinvestment in U.S. roads, bridges, tation Program, the Interstate High- State that invests in a new bus or rail rails, ports, and transit systems. line, or in other improvements that re- way Reimbursement Program, and the We must also search for new tech- duce traffic congestion and improve air Transportation Enhancements Pro- nologies and innovations—like Mag- quality, would receive less transpor- gram—at a total funding level of $26 netic-Levitation trains [maglev] and billion, which can be fully supported by tation money as gas consumption falls. Intelligent Transportation Systems As a Nation we have made clean air the Highway Trust Fund. [ITS]—to solve our congestion and air While the ISTEA Reauthorization and reduced dependence on foreign oil quality problems without pouring ever Act increases funding for all the pro- two major priorities—these bills more concrete. The railroad represents gram categories, I want to mention threaten to undo the progress we have an early 19th century technology, the three programs in more detail. The bill made. In 1944, the United States ex- automobile an early 20th century tech- strengthens the Congestion Mitigation ported oil. In 1956, we imported only and Air Quality Improvement Pro- nology; we need new modes of transpor- 11.5 percent of consumption. Today, we gram, funding it at $2 billion annually, tation for the next century. import nearly 50 percent of the oil we Today, maglev trains run in Bremen, with a portion of the authorized consume. It could be said that the big- but not in New York, where the maglev amount to be distributed on the basis gest single effect of the Interstate concept was first conceived in 1960 by a of population residing in fine particu- Highway System has been in the field young Brookhaven scientist, James late non-attainment areas. The CMAQ of American foreign policy. We are a Powell, as he sat mired in traffic on program, which has allowed States and nation that absolutely must have for- municipalities to find creative solu- the Bronx-Whitestone Bridge. In truth, eign oil, and must shape our defense tions to improving air quality and re- today most of the meager Federal and foreign policies accordingly. We ducing traffic congestion, has been an transportation research and develop- must strive to keep that dependency to ISTEA success story, resulting in im- ment resources are going for improve- a minimum. The sponsors of the ISTEA pressive improvement in U.S. air qual- ments in existing highways, and not Reauthorization Act of 1997 are com- ity over the last few years. into other modes such as rail and tran- mitted to that goal. The bill also increases funding for sit, where I suspect we can achieve We are also committed to working the Highway Bridge Rehabilitation and much greater economic and environ- with other Members, including our dis- Replacement Program to $3.75 billion mental returns. tinguished colleagues on the Transpor- per year. The success of the Bridge As we determine the course for this tation and Infrastructure Subcommit- Program is dramatic—in four years, bill, I also wish to address the so-called tee, Senators WARNER and BAUCUS, who there has been a 15 percent drop in defi- donor State issue. To distribute Fed- have both put forth their own propos- cient bridges—from 111,200 in 1990 to eral transportation funds primarily als for reauthorizing ISTEA. Each coa- lition’s bill reflects, to a greater or 94,800 in 1994. I believe broad consensus upon the ability of each State to col- lesser extent, the interests of its own exists to strengthen this important lect fuel taxes, as advocated by rep- member States and regions, and I am program that has already done so much resentatives of the donor States, would confident that all will ultimately con- to preserve our existing bridge infra- run counter to whole concept of fed- tribute to a transportation bill that structure. eralism, which is based on collecting Finally, the ISTEA Reauthorization national resources to address national best serves the Nation. I ask unanimous consent that the Act fully funds the Interstate Highway needs. When California has an earth- text of the ISTEA Reauthorization Act Reimbursement Program at $2 billion quake, or Florida has a hurricane, or of 1997 legislation be printed in the per year. The Federal-Aid Highway Act the Mississippi River floods its banks, the entire Nation addresses these RECORD. of 1956 provided for the Federal Govern- There being no objection, the bill was needs, without considering whether the ment to fund the construction of the ordered to be printed in the RECORD, as Interstate Highway System with a Fed- needed funds were raised in the af- follows: fected States. Every other Federal pro- eral-State share of 90–10. At that time S. 586 a number of States had, at their own gram—from crop supports to water rec- Be it enacted by the Senate and House of Rep- expense, already constructed a total of lamation projects to airport improve- resentatives of the United States of America in 10,859 miles of highways that later be- ment grants—distributes funds on the Congress assembled, came part of the Interstate System. basis of need. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. As a result, Congress tasked the Bu- For example, in response to the Sav- (a) SHORT TITLE.—This Act may be cited as reau of Public Roads with determining ings & Loan crisis, the Resolution the ‘‘ISTEA Reauthorization Act of 1997’’. S3218 CONGRESSIONAL RECORD — SENATE April 15, 1997

(b) TABLE OF CONTENTS.—The table of con- governments, local governments, and the ments and allocations, except that no such tents of this Act is as follows: private sector; limitation shall apply to any allocation (E) minimize prescriptive Federal regula- made under section 125 of title 23, United Sec. 1. Short title; table of contents. tion that is unnecessary and eliminate regu- States Code, for emergency relief. Sec. 2. Findings. latory duplication between the Federal Gov- SEC. 4. NATIONAL HIGHWAY SYSTEM. Sec. 3. Authorization of appropriations. ernment and State governments; (a) IN GENERAL.—Section 104(b) of title 23, Sec. 4. National Highway System. (F) increase flexibility to address inter- United States Code, is amended by striking Sec. 5. Congestion mitigation and air qual- modal projects; and paragraph (1) and inserting the following: ity improvement program. (G) provide a separate adequately funded ‘‘(1) NATIONAL HIGHWAY SYSTEM.—For the Sec. 6. Surface transportation program. transit program. National Highway System, 1 percent to the Sec. 7. Bridge program. SEC. 3. AUTHORIZATION OF APPROPRIATIONS. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Sec. 8. Minimum allocation. (a) IN GENERAL.—For the purpose of carry- Sec. 9. Reimbursement program. ing out title 23, United States Code, the fol- Islands and the remaining 99 percent appor- Sec. 10. Apportionment adjustments. lowing sums are authorized to be appro- tioned as follows: 1 Sec. 11. Research programs. priated out of the Highway Trust Fund ‘‘(A) ⁄3 of the remaining apportionments in Sec. 12. Scenic byways program. (other than the Mass Transit Account): the ratio that— ‘‘(i) the total vehicle miles traveled on Sec. 13. Ferry boats and terminals. (1) NATIONAL HIGHWAY SYSTEM.—For the public highways in each State; bears to Sec. 14. National recreational trails pro- National Highway System under section 103 ‘‘(ii) the total vehicle miles traveled on gram. of title 23, United States Code, $5,600,000,000 public highways in all States; Sec. 15. Transportation and land use initia- for each of fiscal years 1998 through 2003. ‘‘(B) 1⁄3 of the remaining apportionments in tive. (2) INTERSTATE MAINTENANCE PROGRAM.— the ratio that— Sec. 16. Appalachian development highway For the Interstate maintenance program ‘‘(i) the total lane miles of public highways system. under section 119 of that title $5,250,000,000 in each State; bears to SEC. 2. FINDINGS. for each of fiscal years 1998 through 2003. ‘‘(ii) the total lane miles of public high- Congress finds that— (3) SURFACE TRANSPORTATION PROGRAM.— ways in all States; and (1) the Intermodal Surface Transportation For the surface transportation program ‘‘(C) 1⁄3 of the remaining apportionments in Efficiency Act of 1991 (Public Law 102–240) under section 133 of that title $5,250,000,000 equal amounts to each State.’’. (referred to in this section as ‘‘ISTEA’’) was for each of fiscal years 1998 through 2003. (b) SET ASIDE FOR 4R PROJECTS.—Section the result of a bipartisan and multiregional (4) BRIDGE PROGRAM.—For the highway 118(c)(2)(A) of title 23, United States Code, is consensus to change transportation policy bridge replacement and rehabilitation pro- amended in the first sentence— by giving States and localities more flexibil- gram under section 144 of that title (1) by striking ‘‘1996, and’’ and inserting ity in spending Federal funds while still pur- $3,750,000,000 for each of fiscal years 1998 ‘‘1996,’’; and suing important national goals; through 2003. (2) by inserting after ‘‘1997’’ the following: (2) the Federal Government has an impor- (5) CONGESTION MITIGATION AND AIR QUALITY ‘‘, and $100,000,000 for each of fiscal years 1998 tant role to play in helping to fund transpor- IMPROVEMENT PROGRAM.—For the congestion through 2003’’. tation improvements and ensuring that a na- mitigation and air quality improvement pro- SEC. 5. CONGESTION MITIGATION AND AIR QUAL- tional focus remains on national goals such gram under section 149 of that title ITY IMPROVEMENT PROGRAM. as mobility, connectivity and integrity of $2,000,000,000 for each of fiscal years 1998 (a) ADJUSTMENT FOR NEW NONATTAINMENT the transportation system, safety, research, through 2003. AREAS.— air quality, global and national economic (6) MINIMUM ALLOCATION.—For the mini- (1) REPORT.—Not later than April 1, 2000, competitiveness, and improved quality of mum allocation program under section 157 of the Secretary of Transportation, in consulta- life; that title $830,000,000 for each of fiscal years tion with the Administrator of the Environ- (3) this role as funding partner and policy- 1998 through 2003. Such sums shall not be mental Protection Agency, shall— maker— subject to subsection (a) or (f) of section 104 (A) prepare a report containing rec- (A) should nurture State and local flexibil- of title 23, United States Code. ommended adjustments to the formula used ity in using funds to solve problems cre- (7) APPORTIONMENT ADJUSTMENTS.—For ap- to apportion funds for the congestion mitiga- atively; and portionment adjustments under section 10 tion and air quality improvement program (B) should relieve the States of burden- $470,000,000 for each of fiscal years 1998 under section 149 of title 23, United States some regulation and review procedures that through 2003. Such sums shall not be subject Code, and the amount apportioned for the slow down project implementation without to subsection (a) or (f) of section 104 of title program, to reflect changes, since the enact- adding value; 23, United States Code. ment of the Intermodal Surface Transpor- (4)(A) the economic health of the United (8) INTERSTATE REIMBURSEMENT PROGRAM.— tation Efficiency Act of 1991 (Public Law 102– States and of the metropolitan and rural For reimbursement for segments of the 240), in— areas in the United States depends on— Interstate System constructed without Fed- (i) national ambient air quality standards (i) a strong transit program funded above eral assistance under section 160 of that title under the Clean Air Act (42 U.S.C. 7401 et fiscal year 1997 levels; and $2,050,000,000 for each of fiscal years 1998 seq.); and (ii) dedicated support for intercity pas- through 2003. (ii) the emission control requirements that senger rail; and (9) FEDERAL LANDS HIGHWAYS PROGRAM.— result from the standards; and (B) this Act should be accompanied by (A) INDIAN RESERVATION ROADS.—For In- (B) submit the report to the Committee on companion legislation to provide for the dian reservation roads under section 204 of Environment and Public Works of the Senate needs described in subparagraph (A); that title $210,000,000 for each of fiscal years and the Committee on Transportation and (5) the funding programs authorized by 1998 through 2003. Infrastructure of the House of Representa- ISTEA were visionary and will continue to (B) PUBLIC LANDS HIGHWAYS.—For public tives. influence transportation into the future; lands highways under section 204 of that (2) ADOPTION OF NEW FORMULA AND APPOR- (6) the partnerships between the Federal title $215,000,000 for each of fiscal years 1998 TIONMENTS.— Government and State and local govern- through 2003. (A) EFFECT OF FAILURE TO ADOPT.—Not- ments, and between the public and private (C) PARKWAYS AND PARK ROADS.—For park- withstanding any other provision of law, if, sectors, that were reaffirmed and strength- ways and park roads under section 204 of by September 30, 2000, the recommendations ened by ISTEA are helping to improve trans- that title $100,000,000 for each of fiscal years contained in the report described in para- portation investment and transportation 1998 through 2003. graph (1) have not been enacted into law, as policy choices; and (10) FHWA HIGHWAY SAFETY PROGRAMS.— proposed in the report or as amended by Con- (7) it is in the interest of the United States For carrying out section 402 of that title by gress, the Secretary of Transportation shall as a whole to— the Federal Highway Administration withhold 10 percent of the apportionments (A) reauthorize ISTEA in 1997 with refine- $25,000,000 for each of fiscal years 1998 otherwise required to be made under title 23, ments but without significant changes, and through 2003. United States Code, on October 1, 2000. without eliminating current funding cat- (11) FHWA HIGHWAY SAFETY RESEARCH AND (B) EFFECT OF LATER ADOPTION.—The Sec- egories; DEVELOPMENT.—For carrying out section 403 retary shall apportion the amount withheld (B) authorize the maximum feasible level of that title by the Federal Highway Admin- under subparagraph (A) upon the enactment of funding for ISTEA programs; istration $10,000,000 for each of fiscal years of a law described in subparagraph (A). (C) allocate these funds among the States 1998 through 2003. (b) PARTICULATE MATTER.—Section based primarily on need, with adjustments (b) LIMITATION ON OBLIGATIONS.—Notwith- 104(b)(2) of title 23, United States Code, is to be considered to reflect— standing any other provision of law, any lim- amended— (i) system usage; itation on obligations established for any of (1) by redesignating subparagraphs (A) (ii) system extent; and fiscal years 1998 through 2003 for funds appor- through (E) as clauses (i) through (v), respec- (iii) historic distribution patterns; tioned or allocated from the Highway Trust tively, and indenting appropriately; (D) preserve and strengthen the partner- Fund (other than the Mass Transit Account) (2) by striking ‘‘For the congestion mitiga- ships among the Federal Government, State shall apply equally to all such apportion- tion and air quality improvement program, April 15, 1997 CONGRESSIONAL RECORD — SENATE S3219

in the ratio which’’ and inserting the follow- (A), the relative intensity of use of public ‘‘(A) DETERMINATION OF AMOUNTS.—In fiscal ing: highways in a State shall be determined by year 1998 and each fiscal year thereafter on ‘‘(A) IN GENERAL.—For the congestion miti- dividing— October 1, or as soon as practicable there- gation and air quality improvement program ‘‘(i) the vehicle miles traveled on public after, the Secretary shall determine what in accordance with subparagraphs (B) and highways in the State per lane mile of public amount of funds would be required to ensure (C). highways in the State during the latest 1- that a State’s percentage of the total appor- ‘‘(B) WEIGHTED NONATTAINMENT AREA POPU- year-period for which data are available; by tionments in each such fiscal year and allo- LATION.—The Secretary shall apportion 90 ‘‘(ii) the vehicle miles traveled on public cations for the prior fiscal year for— percent of the remainder of the sums author- highways in all States per lane mile of pub- ‘‘(i) the National Highway System under ized to be appropriated for expenditure on lic highways in all States during that period. section 103; the program in the ratio that’’; ‘‘(C) MINIMUM APPORTIONMENT.—Notwith- ‘‘(ii) the Interstate maintenance program (3) in subparagraph (B) (as so designated)— standing any other provision of this para- under section 119; (A) by striking ‘‘such subpart.’’ in clause graph, for each fiscal year, each State shall ‘‘(iii) the surface transportation program (v) and all that follows through ‘‘the area receive an apportionment under this para- under section 133; was’’ and inserting the following: ‘‘such sub- graph of not less than 1⁄2 of 1 percent of all ‘‘(iv) the bridge program under section 144; part. funds apportioned under this paragraph for ‘‘(v) the congestion mitigation and air If the area was’’; and the fiscal year.’’. quality improvement program under section (B) in the sentence beginning with ‘‘If the (b) INCREASED FLEXIBILITY.—Section 133(b) 149; area’’, by striking ‘‘paragraph’’ and inserting of title 23, United States Code, is amended by ‘‘(vi) grants for safety belts and motor- ‘‘subparagraph’’; adding at the end the following: cycle helmets under section 153; (4) by striking the sentence beginning with ‘‘(12) Construction, reconstruction, and re- ‘‘(vii) the Interstate reimbursement pro- ‘‘Notwithstanding any provision’’ and insert- habilitation of, and operational improve- gram under section 160; and ing the following: ments for, intercity rail passenger facilities ‘‘(viii) the scenic byways program under ‘‘(C) PARTICULATE MATTER.—The Secretary (including facilities owned by the National section 1047 of the Intermodal Surface Trans- shall apportion 10 percent of the remainder Railroad Passenger Corporation), operation portation Efficiency Act of 1991 (23 U.S.C. 101 of the sums authorized to be appropriated for of intercity rail passenger trains, and acqui- note; 105 Stat. 1996); expenditure on the program in the ratio sition or remanufacture of rolling stock for is not less than 90 percent of the percentage that— intercity rail passenger service, except that that the population of the State is of the ‘‘(i) the population of all areas that are not more than 50 percent of the funds appor- population of the United States. nonattainment under the Clean Air Act (42 tioned to a State for a fiscal year under sec- ‘‘(B) APPORTIONMENT.—After determining U.S.C. 7401 et seq.) for particulate matter tion 104(b)(3) may be obligated for oper- the amounts of funds under subparagraph with an aerodynamic diameter smaller than ations.’’. (A), the Secretary shall apportion the funds or equal to 10 micrometers (known as ‘PM– (c) ALLOCATION OF OBLIGATION AUTHOR- authorized to carry out this section to each 10’) in each State; bears to ITY.—Section 133(f) of title 23, United States State in the ratio that the amount deter- ‘‘(ii) the population of all such areas in all Code, is amended by striking ‘‘6-fiscal year mined for the State under subparagraph (A) States.’’; period 1992 through 1997’’ and inserting ‘‘6- bears to the total amount determined for all (5) in the next-to-last sentence, by striking fiscal-year period 1998 through 2003’’. States under subparagraph (A).’’; ‘‘Notwithstanding’’ and inserting the follow- (2) in subsection (b), by striking the last 2 ing: SEC. 7. BRIDGE PROGRAM. (a) MINIMUM APPORTIONMENT.—Section sentences and inserting the following: ‘‘(D) MINIMUM APPORTIONMENT.—Notwith- ‘‘Funds apportioned under this section shall standing’’; and 144(e) of title 23, United States Code, is amended in the fifth sentence by striking be subject to any limitation on obligations (6) in the last sentence, by striking ‘‘The established for Federal-aid highways and Secretary’’ and inserting the following: ‘‘0.25’’ and inserting ‘‘0.5’’. (b) AUTHORIZATIONS FOR DISCRETIONARY highway safety construction programs.’’; and ‘‘(E) DETERMINATION OF POPULATION.—In (3) by striking subsection (e) and inserting determining population for the purpose of PROGRAM.—Section 144(g) of title 23, United States Code, is by striking paragraph (1) and the following: this paragraph, the Secretary’’. ‘‘(e) DEFINITION OF STATE.—Notwithstand- inserting the following: (c) INCREASED FLEXIBILITY.—The first sen- ing any other provision of this title, in this ‘‘(1) DISCRETIONARY BRIDGE PROGRAM.— tence of section 149(b) of title 23, United section, the term ‘State’ means each of the ‘‘(A) IN GENERAL.—For each of fiscal years States Code, is amended— 50 States.’’. 1998 through 2003, of the amounts authorized (1) in paragraph (3), by striking ‘‘or’’ at the SEC. 9. REIMBURSEMENT PROGRAM. to be appropriated to carry out this section, end; Section 160 of title 23, United States Code, all but $100,000,000 in the case of each such (2) in paragraph (4), by striking the period is amended— fiscal year shall be apportioned as provided at the end and inserting ‘‘; or’’; and (1) in subsection (a), by striking ‘‘The Sec- in subsection (e). (3) by adding at the end the following: retary shall allocate to the States in each of ‘‘(5) if the project or program will have air ‘‘(B) RESERVED AMOUNT.—For each of fiscal fiscal years 1996 and 1997’’ and inserting ‘‘For quality benefits and consists of— years 1998 through 2003, of the $100,000,000 re- any fiscal year for which funds are author- ‘‘(A) construction, reconstruction, or reha- ferred to in subparagraph (A)— ized to carry out this section, the Secretary bilitation of, or operational improvements ‘‘(i) $90,000,000 shall be allocated at the dis- shall allocate to the States’’; and for, intercity rail passenger facilities (in- cretion of the Secretary on the same date (2) in subsection (b), by striking ‘‘each of cluding facilities owned by the National and in the same manner as funds apportioned fiscal years 1996 and 1997’’ and inserting Railroad Passenger Corporation); under subsection (e); and ‘‘each fiscal year described in subsection ‘‘(B) operation of intercity rail passenger ‘‘(ii) $10,000,000 shall be allocated by the (a)’’. Secretary in accordance with section 1039 of trains; or SEC. 10. APPORTIONMENT ADJUSTMENTS. the Intermodal Surface Transportation Effi- ‘‘(C) acquisition or remanufacture of roll- (a) DEFINITION OF STATE.—In this section, ing stock for intercity rail passenger service; ciency Act of 1991 (23 U.S.C. 144 note; 105 the term ‘‘State’’ means each of the 50 except that not more than 50 percent of the Stat. 1990).’’. States. funds apportioned to a State for a fiscal year (c) CONFORMING AMENDMENT.—Section (b) DENSITY ADJUSTMENT.— under section 104(b)(2) may be obligated for 1039(e) of the Intermodal Surface Transpor- (1) IN GENERAL.—Subject to subsection (d), operations.’’. tation Efficiency Act of 1991 (23 U.S.C. 144 in the case of any State eligible for a density SEC. 6. SURFACE TRANSPORTATION PROGRAM. note; 105 Stat. 1991) is amended by striking adjustment under paragraph (3), the amount (a) APPORTIONMENT FORMULA.—Section ‘‘1992, 1993,’’ and all that follows and insert- of funds apportioned to the State for the sur- 104(b) of title 23, United States Code, is ing the following: ‘‘1998 through 2003, face transportation program under section amended by striking paragraph (3) and in- $1,500,000 shall be available to the Secretary 133 of title 23, United States Code, for each of serting the following: to carry out subsections (a) and (b), and fiscal years 1998 through 2003— ‘‘(3) SURFACE TRANSPORTATION PROGRAM.— $8,500,000 shall be available to the Secretary (A) shall be increased as necessary to en- ‘‘(A) IN GENERAL.—For the surface trans- to carry out subsection (c). Such sums shall sure that the percentage obtained by divid- portation program, in the ratio that— remain available until expended.’’. ing— ‘‘(i) the total lane miles of public highways SEC. 8. MINIMUM ALLOCATION. (i) the total apportionments to the State in each State multiplied by the relative in- Section 157 of title 23, United States Code, for the fiscal year for Federal-aid highways tensity of use of public highways in the is amended— and highway safety construction programs; State; bears to (1) in subsection (a)— by ‘‘(ii) the sum of— (A) in paragraph (4), by striking the para- (ii) the total of all apportionments to all ‘‘(I) the total lane miles of public highways graph designation and all that follows before States for the fiscal year for Federal-aid in each State; multiplied by ‘‘on October 1’’ and inserting the following: highways and highway safety construction ‘‘(II) the relative intensity of use of public ‘‘(4) FISCAL YEARS 1992–1997.—In each of fis- programs; highways in the State. cal years 1992 through 1997,’’; and is not less than the minimum percentage for ‘‘(B) DETERMINATION OF RELATIVE INTENSITY (B) by adding at the end the following: the State determined under paragraph (2); OF USE.—For the purpose of subparagraph ‘‘(5) FISCAL YEAR 1998 AND THEREAFTER.— and S3220 CONGRESSIONAL RECORD — SENATE April 15, 1997

(B) shall be increased as necessary to en- 1995, 1996 and 1997’’ and inserting ‘‘1994 ‘‘(3) PREFERENCES.—In selecting recipients sure that the State receives an increased ap- through 2003’’. of grants under this subsection, the Sec- portionment under subparagraph (A) of not (b) APPLIED RESEARCH PROGRAM.—Section retary shall give preference to applicants less than $5,000,000. 307(e)(13) of title 23, United States Code, is that— (2) MINIMUM PERCENTAGE.—The minimum amended in the first sentence by striking ‘‘(A) are agencies that have significant re- percentage referred to in paragraph (1)(A) for ‘‘1993, 1994, 1995, 1996, and 1997’’ and inserting sponsibilities for transportation and land a State shall be equal to the State’s percent- ‘‘1993 through 2003’’. use; and age of the total apportionments and alloca- (c) INTELLIGENT TRANSPORTATION SYS- ‘‘(B) submit applications that— tions during fiscal years 1992 through 1997 TEMS.—Section 6058 of the Intermodal Sur- ‘‘(i) demonstrate a commitment to public under title 23, United States Code, the Inter- face Transportation Efficiency Act of 1991 (23 involvement; and modal Surface Transportation Efficiency Act U.S.C. 307 note; 105 Stat. 2191) is amended— ‘‘(ii) demonstrate a meaningful commit- of 1991 (Public Law 102–240), and the National (1) in subsection (a), by striking ‘‘1997’’ and ment of non-Federal resources to support the Highway System Designation Act of 1995 inserting ‘‘2003’’; and efforts of the project team. (Public Law 104–59), excluding apportion- (2) in subsection (b), by striking ‘‘1997’’ and ‘‘(4) NUMBER.—For each fiscal year, the ments and allocations made for— inserting ‘‘2003’’. Secretary shall make not more than 5 grants (A) Interstate construction under section SEC. 12. SCENIC BYWAYS PROGRAM. under this subsection. 104(b)(5)(A); Section 1047(d) of the Intermodal Surface ‘‘(5) MAXIMUM AMOUNT.—A grant made (B) emergency relief under section 125; Transportation Efficiency Act of 1991 (23 under this subsection for a fiscal year shall (C) the Federal lands highways program U.S.C. 101 note; 105 Stat. 1996) is amended by be in an amount not greater than $1,000,000. under section 204; striking ‘‘1995, 1996, and 1997’’ and inserting ‘‘(d) TRANSPORTATION AND LAND USE POL- (D) donor State bonus amounts under sec- ‘‘1995 through 2003’’. ICY GRANTS.— ‘‘(1) IN GENERAL.—The Secretary may make tion 1013(c) of the Intermodal Surface Trans- SEC. 13. FERRY BOATS AND TERMINALS. portation Efficiency Act of 1991 (23 U.S.C. 157 Section 1064(c) of the Intermodal Surface transportation and land use policy grants to note; 105 Stat. 1940); Transportation Efficiency Act of 1991 (23 State agencies, metropolitan planning orga- nizations, and local governments to— (E) Kansas projects under section 1014(c) of U.S.C. 129 note; 105 Stat. 2005) is amended by ‘‘(A) recognize significant progress in inte- the Intermodal Surface Transportation Effi- striking ‘‘fiscal year 1997’’ and inserting grating transportation and land use plans ciency Act of 1991 (Public Law 102–240; 105 ‘‘each of fiscal years 1997 through 2003’’. Stat. 1942); and programs; and SEC. 14. NATIONAL RECREATIONAL TRAILS PRO- ‘‘(B) further aid in the implementation of (F) hold harmless adjustments under sec- GRAM. tion 1015(a) of the Intermodal Surface Trans- Section 1302(d)(3) of the Intermodal Sur- the programs. portation Efficiency Act of 1991 (23 U.S.C. 104 face Transportation Efficiency Act of 1991 (16 ‘‘(2) PREFERENCES.—In selecting recipients note; 105 Stat. 1943); U.S.C. 1261(d)(3)) is amended by striking of grants under this subsection, the Sec- (G) 90 percent of payment adjustments ‘‘shall not exceed’’ and all that follows and retary shall give preference to applicants under section 1015(b) of the Intermodal Sur- inserting ‘‘shall not exceed $30,000,000 for that— face Transportation Efficiency Act of 1991 (23 each of fiscal years 1992 through 2003.’’. ‘‘(A) have instituted transportation proc- esses, plans, and programs that— U.S.C. 104 note; 105 Stat. 1944); and SEC. 15. TRANSPORTATION AND LAND USE INI- ‘‘(i) are coordinated with adopted State (H) demonstration projects under the TIATIVE. land use policies; and Intermodal Surface Transportation Effi- (a) IN GENERAL.—Chapter 3 of title 23, ciency Act of 1991 (Public Law 102–240). United States Code, is amended by inserting ‘‘(ii) are intended to reduce the need for costly future highway investments through (3) ELIGIBLE STATES.—A State shall be eli- after section 307 the following: gible for a density adjustment under this adopted State land use policies; ‘‘§ 307A. Transportation and land use initia- ‘‘(B) have instituted other policies to pro- subsection if the State— tive (A) has a population density of less than 20 mote the integration of land use and trans- ‘‘(a) ESTABLISHMENT.—The Secretary shall persons per square mile or more than 450 per- portation, such as— establish a comprehensive initiative to in- ‘‘(i) ‘green corridors’ programs that limit sons per square mile; or vestigate, understand, and, in cooperation (B) is an island State completely separated access to major highway corridors to areas with appropriate State, regional, and local targeted for efficient and compact develop- from the continental United States by water. authorities, address the relationships be- INIMUM APPORTIONMENT ADJUST- ment; (c) M tween transportation and land use. MENT.—Subject to subsection (d), the amount ‘‘(ii) urban growth boundaries to guide ‘‘(b) TRANSPORTATION AND LAND USE RE- of funds apportioned to a State for the sur- metropolitan expansion; SEARCH.— face transportation program under section ‘‘(iii) State spending policies that target ‘‘(1) IN GENERAL.—The Secretary, in co- 133 for each of fiscal years 1998 through 2003 funds to areas targeted for growth; and operation with appropriate Federal, State, ‘‘(iv) other such programs or policies as de- shall be increased as necessary to ensure regional, and local agencies and experts, in- that— termined by the Secretary; and cluding States and other entities eligible for ‘‘(C) have adopted land use policies that in- (1) the sum of— assistance under subsection (d), shall develop (A) the total apportionments to the State clude a mechanism for assessing and avoid- and carry out a comprehensive research pro- ing, minimizing, or mitigating potential im- for the fiscal year; and gram to investigate and understand the rela- (B) the total allocations, authorized by pacts of transportation development activi- tionships between transportation, land use, ties on the environment. this Act, to the State for the previous fiscal and the environment. year; ‘‘(3) USE OF GRANT FUNDS.—Grants made ‘‘(2) FUNDING.—For each of fiscal years 1998 under this subsection shall be available for for Federal-aid highways and highway safety through 2003, of the sum deducted by the obligation for— construction programs (excluding apportion- Secretary under section 104(a), not less than ‘‘(A) any project eligible for funding under ments and allocations for emergency relief $1,000,000 shall be made available to carry this title or title 49; and under section 125 and for Federal lands high- out this subsection. ‘‘(B) any other activity relating to trans- ways under section 204); is not less than ‘‘(c) TRANSPORTATION AND LAND USE PLAN- portation and land use that the Secretary 1 (2)(A) ⁄2 of 1 percent of the sum of— NING GRANTS.— determines appropriate, including purchase (i) the total of all apportionments de- ‘‘(1) APPLICATIONS.—The Secretary shall of land or development easements and activi- scribed in paragraph (1) to all States for the solicit applications for transportation and ties that are necessary to implement— fiscal year; and land use planning grants under this sub- ‘‘(i) transit-oriented development plans; (ii) the total of all allocations described in section from State, regional, and local agen- ‘‘(ii) traffic calming measures; or paragraph (1) to all States for the previous cies, individually or in the form of consortia, ‘‘(iii) any other coordinated transportation fiscal year; or to plan, develop, implement, and monitor and land use policy. (B) 90 percent of the total of all apportion- strategies to integrate transportation and ‘‘(4) MINIMUM AMOUNT.—A grant made ments described in paragraph (1) to the State land use plans and practices. under this subsection for a fiscal year shall for fiscal year 1997. ‘‘(2) PURPOSES.—The purposes of grants be in an amount not less than $10,000,000. (d) LIMITATION ON APPORTIONMENT ADJUST- under this subsection shall be— ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.— MENTS.—If the amounts authorized to be ap- ‘‘(A) to support initiatives to reduce the There are authorized to be appropriated out propriated for apportionment adjustments need for costly future highway investments; of the Highway Trust Fund (other than the under this section for a fiscal year are insuf- ‘‘(B) to provide access to jobs, services, rec- Mass Transit Account)— ficient to fund the increased apportionments reational and educational opportunities, and ‘‘(1) to carry out subsection (c) $3,000,000 required by subsections (b) and (c) for the fis- centers of trade, in a cost-effective and effi- for each of fiscal years 1998 through 2003; and cal year, the increased apportionment for cient manner; ‘‘(2) to carry out subsection (d) $50,000,000 each State shall be reduced proportionately. ‘‘(C) to otherwise improve the efficiency of for each of fiscal years 1998 through 2003.’’. SEC. 11. RESEARCH PROGRAMS. the transportation system; and (b) CONFORMING AMENDMENT.—The analysis (a) STRATEGIC HIGHWAY RESEARCH PRO- ‘‘(D) to avoid, minimize, or mitigate the for chapter 3 of title 23, United States Code, GRAM.—Section 307(b)(2)(B) of title 23, United environmental impacts of transportation is amended by inserting after the item relat- States Code, is amended by striking ‘‘1994, projects. ing to section 307 the following: April 15, 1997 CONGRESSIONAL RECORD — SENATE S3221 ‘‘307A. Transportation and land use initia- ing my legislation to provide Federal and refinement but without significant tive.’’. investment in border infrastructure to changes; allocate funds to states pri- SEC. 16. APPALACHIAN DEVELOPMENT HIGHWAY relieve border choke points resulting marily based on needs; retain the Fed- SYSTEM. from increased trade. Senator MOY- eral Government’s role as a key trans- (a) AUTHORIZATION.— (1) IN GENERAL.—There is authorized to be NIHAN knows this is a key issue for the portation partner to help fund high- appropriated out of the Highway Trust Fund border States. way, bridge, and transit projects and to (other than the Mass Transit Account) for Let me tell you briefly why this bill assure that a national focus remains on construction of the Appalachian develop- is the best for California right now: mobility, connectivity, uniformity, in- ment highway system authorized by section First and foremost, this bill recog- tegrity, safety, and research. Their 201 of the Appalachian Regional Develop- nizes the responsibility that transpor- message was, plain and simple, ISTEA ment Act of 1965 (40 U.S.C. App.) $425,000,000 tation bears to environmental protec- works. for each of fiscal years 1998 through 2003. tion by preserving the Congestion Miti- (2) TRANSFER AND ADMINISTRATION OF Over the past few months, many oth- gation and Air Quality Program. Near- FUNDS.—The Secretary of Transportation ers, from coast to coast, have sounded shall transfer the funds made available by ly 26 million of California’s 33 million that message. Some are in the trans- paragraph (1) to the Appalachian Regional residents live in an area that fails to portation business, others, such as Commission, which shall be responsible for meet one or more of the EPA’s air mayors, county officials, and environ- the administration of the funds. quality standards. CMAQ must be pre- mentalists are not. The drumbeat has (b) FEDERAL SHARE.—The Federal share served as a separate program targeted sounded, that ISTEA works. under this section shall be 80 percent. to those areas that need alternative (c) DELEGATION TO STATES.—Subject to I strongly support that message. title 23, United States Code, the Secretary of transportation choices. ISTEA was bold and innovative, and Transportation shall delegate responsibility The bill also anticipates the adoption changed the way we think and make for completion of construction of each seg- of new standards that will increase decisions about transportation. It ment of the Appalachian development high- CMAQ funding for new nonattainment brought the public into the process. It way system under this section to the State areas while protecting the funding lev- requires sound planning. It promotes in which the segment is located, upon re- els of current areas. In addition, the quest of the State. energy efficient transportation, re- bill preserves funding for areas that are search and development. It strengthens (d) ADVANCE CONSTRUCTION.—The Sec- in maintenance status, a measure that retary of Transportation may make avail- safety. I authored in the 1995 National High- able amounts authorized by this section in It recognizes that the goal of a trans- way System Designation Act to help the manner described in section 115(a) of portation system is how best to move these areas continue their path toward title 23, United States Code. goods and people, efficiently and effec- (e) CONTRACT AUTHORITY.—Funds author- improved air quality. tively. ized by this section shall be available for ob- Second, the bill uses up to date fac- ligation in the same manner as if the funds tors such as actual vehicle use and cur- Mr. President, ISTEA has worked were apportioned under chapter 1 of title 23, rent population estimates in determin- across this Nation, as witnessed by the United States Code, except that— ing the highway funding categories. 32 cosponsors from 17 States. ISTEA (1) the Federal share of the cost of any con- has also worked for my home State of struction under this section shall be deter- Those factors help raise California’s share of funding. I will continue to New Jersey. ISTEA could not have had mined in accordance with subsection (b); and a better laboratory than New Jersey. (2) the funds shall remain available until work with my colleagues in the com- expended. mittee for a fairer share of the trans- New Jersey is a corridor State, linking (f) OTHER STATE FUNDS.—Funds made portation funds for California, but this commerce and travel to the Northeast available to a State under this section shall is a good start. and the rest of the country. New Jersey not be considered in determining the appor- Third, the bill continues the Bridge has the highest vehicle density of any tionments and allocations that any State State in the United States. Thousands shall be entitled to receive, under title 23, Rehabilitation and Repair Program. In 1994, after the Northridge disaster, my of heavy duty trucks, only half of United States Code, and other law, of which are not registered in New Jersey, amounts in the Highway Trust Fund. colleagues here supported my bill that Mrs. BOXER. Mr. President, it is an permitted this program to fund seismic use New Jersey’s roads. honor for me to join today with four of retrofit projects without needing some It is a commuter State, heavily reli- the giants of the first ISTEA—Senators other kind of repair first. This program ant on mass transit. New Jersey’s MOYNIHAN, CHAFEE, LAUTENBERG, and is unique in that it permits such fund- transportation infrastructure is heav- LIEBERMAN to support the ISTEA Reau- ing for local bridges. ily used and is significantly older than thorization Act, the reauthorization of Last, but not least, this bill carries many other State’s. We as a State have the 1991 Intermodal Surface Transpor- the torch for the basic framework of had to be creative in finding ways to tation Efficiency Act. Their vision of ISTEA. I have heard from my local maintain the condition of the infra- how we should shape transportation in governments north to south in Califor- structure, while improving mobility this country in the postinterstate era nia that ISTEA works. Some change, and promoting sound planning. is why we are here today to carry that yes. But the basic integrity of this law Improving mobility reduces conges- vision into the next century. is sound. I agree with them, and I am tion, which in turn, improves air qual- The economic power of California proud to join the ‘‘ISTEA works ity and makes our highways safer. This and this Nation can only be unleashed team.’’ means that our time is not spent in if we invest in the means to get our Mr. LAUTENBERG. Mr. President, I long commutes to work or stuck in workers to their jobs and our exports am pleased to join with Senator PAT- traffic. We need to remember why sen- into international trade. This legisla- RICK MOYNIHAN, Senator JOSEPH sible transportation funding and plan- tion not only will accomplish that LIEBERMAN, and 32 other Senators to ning is important. It’s not to satisfy vital goal but it will do so without introduce the ISTEA Reauthorization some special interest. It’s to remember leaving our environment in worst Act of 1997. This bill recognizes the that sound transportation systems help shape for generations to come. success of the 1991 law, the Intermodal cope with growing communities—our At this time, Senator MOYNIHAN’s bill Surface Transportation Efficiency Act, neighborhoods. Sound transportation best meets the goals that I have set for by reauthorizing it with no major systems help to improve mobility to rewriting our surface transportation changes. transport freight and promote domes- law. It is the best approach for Califor- Mr. President, 17 Governors endorsed tic and international commerce, mak- nia, which contributes more in Federal a statement of principles for the next ing our economy more efficient and gas taxes than any other State. While surface transportation law that strong- creating jobs—our businesses. Sound this legislation is not what I will ex- ly affirmed ISTEA’s goals and effec- transportation systems help to im- pect in a final bill, it is the best horse tiveness in ensuring a sound national prove air quality and protect the envi- for California out of the starting gate. transportation infrastructure. Included ronment—our personal health. In I look forward to working with col- in those goals were these statements: short, transportation can, and should, leagues in committee to add provisions Maintain the course set by ISTEA; re- help develop liveable communities and important to my State, including add- authorize ISTEA with simplification create a better way of life. S3222 CONGRESSIONAL RECORD — SENATE April 15, 1997 Mr. President, ISTEA was the first State needs like other Federal pro- As a member of the Environment and step toward this goal. The ISTEA Re- grams. Public Works Committee, I was proud authorization Act of 1997 is the next Mr. President, ISTEA has worked for to have worked hard with Senator logical step to launch our Nation’s our cities, our counties, our environ- MOYNIHAN and others to craft ISTEA in transportation system into the 21st ment, and for economic development. l991. Without a doubt, ISTEA was the century. Let us build on the success of the past most significant and innovative trans- The bill we are introducing today and not turn the clock back on trans- portation legislation of a generation. It recognizes that current levels of trans- portation progress. recognized that our Nation is now portation investment fall short of Mr. LEAHY. Mr. President, 6 years reaching a maturing system of trans- needs, so it increases authorized trans- ago, thanks to the leadership of Sen- portation. With our Interstate system portation funding over 6 years and con- ators MOYNIHAN and C0HAFEE, this Na- built, ISTEA moved us to also focus on tinues the emphasis on preservation tion made a fundamental change in the maintenance, intermodalism, effi- and maintenance of transportation sys- way that it allocates public investment ciency, funding flexibility, and envi- tems. in transportation. That change was ronmental protection. The bill continues to support the sci- based on the premises that local people So often today we hear complaints entifically proven link between trans- understand local needs, that funding about laws and programs that don’t portation and air quality by bolstering should be flexible, and that transpor- work. ISTEA is a law that has worked the Congestion Mitigation and Air tation should contribute to meeting and is working—very well. It’s one area Quality Program. national environmental and public where we don’t need to reinvent gov- The bill supports allocating transpor- health goals. ernment—we did that in l991 when we tation funds based on need, by continu- I made a commitment to myself and adopted ISTEA. That’s why Governors, ing the bridge program without any to Vermonters that I would only spon- mayors, county officials, guilders changes. sor legislation that embodies those unions, environmental groups, plan- The bill increases flexibility by mak- three premises. Today I announce that ners, businessmen and women, and oth- ing Amtrak eligible for certain high- I am proud to be an original cosponsor ers are telling us to reauthorize the way funds, and maintains the flexibil- of the ISTEA Reauthorization Act of law with minimal change. That was the ity for transit. 1997, and I look forward to doing what- resounding message I heard in Con- And, the bill recognizes special needs ever I can to ensure that this progres- necticut at a forum yesterday from a of States with both low and high den- sive legislation makes it through the broad range of interests. sity populations, by providing addi- Senate and into law. Let me spend a few minutes review- tional funding. This bill maintains and enhances our ing why ISTEA is so important. Mr. President, I would also like to transportation commitments in ways In a very unique way, ISTEA com- comment on the effort to revise our na- that will benefit Vermonters. I fought bines this country’s long-standing com- tional highway program to ensure that hard to include the provision that will mitment to our national priorities—a each State receives allocations based allow the State of Vermont the flexi- national system of transportation on a certain percentage of its gas tax bility to use Federal funds for Amtrak central to our economic growth and contributions to the highway trust service. Our small State has two suc- our commitment to protecting and en- fund—the donor-donee issue. This is cessful Amtrak trains, both of which hancing our environment—with a new the wrong way to think about trans- operate because of the leadership emphasis on responding to local condi- portation funding. It is in the national shown by Governor Dean and the legis- tions, priorities, and interests and in- lature. If this provision passes it will interest to have a Federal transpor- volving the public in this decisionmak- mean that Amtrak service in Vermont tation policy with national goals. ing process. can be maintained and possibly even The statement of policy that intro- That’s how we promote interstate and expanded. duces ISTEA reminds us that the eco- international commerce, further eco- This bill also protects transportation nomic health of the country depends on nomic productivity, protect the envi- flexibility that has been so popular in access to an efficient transportation ronment, and ensure safety. That’s why Vermont. It maintains the recreational system. It reads as follows: decisions to allocate Federal transpor- trails and scenic byways programs, and tation funding should be based on need, It is the policy of the United States to de- allows States to continue to use funds velop a national intermodal transportation not on a State’s contribution to the for bicycle transportation and pedes- system that is economically efficient and en- highway trust fund. We do not allocate trian walkways. I will continue to fight vironmentally sound, provides the founda- airport improvement program funds for these programs in the coming tion for the nation to compete in the global based on the amount of ticket tax that months. economy and will move people and goods in is collected in each State. No Federal Finally, this bill will bring more re- an efficient manner. programs work that way. sources to Vermont. Out small State ISTEA’s commitment to a national However, if we choose to approach lies on a major north-south truck transportation system includes dedi- the issue in that context, then we must route. Much of this traffic passes cated sources of funding to preserve, first recognize each State’s return on through Vermont without stopping for restore, and rehabilitate our Interstate the Federal dollar for all Federal pro- fuel. Consequently, our roads get a lot highways and bridges. In many areas of grams. New Jersey receives only 68 of the wear and tear that goes along the country, like my own, our infra- cents of return on the Federal dollar— with commerce, without the accom- structure is older and densely traveled. second to last, just ahead of Connecti- panying gas tax receipts. This legisla- We need dedicated sources of funding cut. New Jerseyans collectively con- tion provides Vermont with a major for these programs to help ensure an tribute $15 billion more in Federal pay- boost in highway funding, so that we efficient transportation system for our ments than they receive—that’s more can better maintain and repair our ex- entire Nation. than $1,800 per resident. isting roads. Second, ISTEA recognized that there Mr. President, if we were to adopt an In closing, Mr. President, I urge my is an inextricable link between trans- across-the-board rule to require 95 per- colleagues who have not yet done so to portation and the quality of our envi- cent return on Federal dollars, con- join me and the bipartisan group of 32 ronment, particularly our air quality. sider what would happen if we apply other Senators who have committed Automobiles are a large contributor to that test to other programs. New Jer- themselves to the ISTEA reauthoriza- our smog, carbon monoxide, and partic- sey would then receive $169 million tion bill of 1997. ulate matter pollution. As Americans more for agriculture subsidies, $2.1 bil- Mr. LIEBERMAN. Mr. President, I’m drive more and more miles, the pollu- lion more of defense spending, and delighted to join with Senator MOY- tion control gains from cleaner cars about $55 million more for child and NIHAN and Senators LAUTENBERG, get wiped out. family health services funding. CHAFEE, DODD, and numerous other col- The Congestion Mitigation and Air Mr. President, national transpor- leagues to introduce the Intermodal Quality Improvement Program is one tation funding should continue to be Surface Transportation Efficiency Re- of the most innovative programs cre- allocated based on national goals and authorization Act of l997. ated under ISTEA. It is providing $1 April 15, 1997 CONGRESSIONAL RECORD — SENATE S3223 billion per year for projects to reduce gram into essentially a block grant, ing together, we intend to do all we can air pollution. These funds are being where I’m concerned our national pri- to chart a fair transportation course used to help States restore air quality orities for our transportation system for the coming years. I look forward to to healthy levels. This program is the would be lost. The funds would be dis- that challenge and to our successful ef- opposite of the so-called unfunded tributed based on how much money forts together. mandates—it provides Federal funds to each State is contributing to the High- Ms. MOSELEY-BRAUN. Mr. Presi- help meet the requirements of the way Trust Fund in gasoline taxes rath- dent, I am honored to join my col- Clean Air Act. In Connecticut where er than looking to the Nation’s infra- league from New York, Senator MOY- our air quality is so bad, this program structure needs and also focusing fund- NIHAN, and Senator LAUTENBERG, Sen- provides an important source of fund- ing on those systems that require pres- ator LIEBERMAN, and many others ing to help us move toward clean air. ervation and enhancement. In short, today to introduce the ISTEA Reau- Stamford, Greenwich, and Norwalk, for these proposals would largely abandon thorization Act of 1997. This law builds example, made innovative use of these the Federal role in transportation on the success of the last 6 years of funds. Our bill would substantially in- which is so essential to support na- ISTEA, and will guide more than $175 crease funding for this program. tional economic growth, global com- billion in Federal highway spending While recognizing these national pri- petitiveness, and the quality of life in over the next 6 years. orities, ISTEA also makes nearly one- our communities. Few laws we enact this year will half of all funds available for State and I congratulate my friend and col- have as much of an immediate and sig- local decisionmaking. The transpor- league Senator MOYNIHAN and his staff nificant affect on our economy than tation needs of Connecticut are dif- for their outstanding work in putting the ISTEA reauthorization bill. The ferent from the needs of Montana, and this bill together. I look forward to transportation industry employs 12 this program allows each area to decide working with him and my other col- million people, consumes 20 percent of what’s right for them, again, within leagues as we move through this proc- total household spending, and accounts the context of protecting a national ess. for 11 percent of our Nation’s total eco- transportation system. And for the Mr. KENNEDY. Mr. President, I join nomic activity. Highways are the most first time, it allowed local in commending Senator MOYNIHAN and important component of our transpor- decisionmakers to spend funds on ei- the other bipartisan sponsors for their tation infrastructure, and their use is ther highways or transit. This leveling leadership on this important issue. The growing. Between 1984 and 1994, U.S. of the playing field between transit and stakes are very high. The strength of motor vehicle travel increased 37.5 per- highways is very important for many our economy is directly tied to the cent. areas of the country, including my quality of our transportation. This is Over the past 6 years, the Intermodal own. no time to turn back the clock on Surface Transportation and Efficiency ISTEA also created a popular pro- ISTEA and its well-balanced commit- Act has provided the basis for a strong gram known as Transportation En- ment to seven key points: Highways; Federal-State-local partnership to help hancements which provides a small public transit; environmental protec- the Nation meet its transportation amount of funding to mitigate some of tion; bikeways, recreational trails, and needs. It has directed $157 billion into the negative effects transportation has historic preservation; computerized highways, mass transit, and related caused for our local communities. I traffic management; safety; and a transportation priorities nationwide. It heard yesterday at a forum in Con- strong voice for local communities in is one of the most successful intergov- necticut how funds were used from this the allocation of funds. ernmental partnerships in American program to restore a recreational and In all of these areas, ISTEA has history. Under ISTEA, we completed open space corridor along the aban- worked well and deserves to be contin- the system of Interstate and Defense doned right of way of the former Farm- ued. Highways begun by President Eisen- ington Canal and the Boston and Main This is our reply to the STEP 21 coa- hower 40 years ago, defined the Na- Railroad. This project was selected as lition and the Western coalition. Their tional Highway System that will help one of the Nation’s 25 best enhance- proposals are blatant schemes to gerry- prioritize highway improvements for ment projects. We’ve also used funds mander the funding formula against decades to come, and coordinated plan- from this program to help restore some our States and undermine other key ning among different transportation of our coastal wetlands, to protect and aspects of ISTEA, and they’re not ac- modes. enhance the landscape of our famous ceptable. ISTEA has improved the capacity Merritt Parkway and for the restora- They say their States should get and overall condition of our transpor- tion of the Route 8 and Route 15 inter- back from the Treasury in ISTEA tation infrastructure. According to the changes. funds what they pay into the Treasury U.S. Department of Transportation, We should also not forget the impor- in gas tax revenues. But that kind of our highways and bridges are in better tant process changes made by ISTEA. tunnel vision is distorting this debate. shape than they were a few years ago. The law gave local decisionmakers and It’s wrong to focus narrowly just on Our environment is in better condition the public a much greater role in mak- transportation spending versus gas tax too, thanks to ISTEA innovations like ing the transportation decisions that revenues. The only fair comparison is the congestion mitigation and air qual- so affect their communities. In Con- between overall Federal spending that ity and transportation enhancement necticut, mayors and other local elect- goes into a State, and the overall Fed- programs. ed officials strongly support this ap- eral tax revenues that come from that Despite our success, we continue to proach. In fact, I heard from mayors at State. face enormous challenges over the next a forum yesterday that ISTEA’s plan- By that standard, our States are 6 years to maintain and improve our ning provisions have led to greater co- donor States. We send more to Wash- highways and bridges. Over this time, operation between central cities and ington than we get back in return. The it will cost an estimated $148.5 billion their suburban neighbors on a wide va- States complaining the loudest about just to maintain the current physical riety of issues—extending beyond not getting their fair share of Federal conditions of our highways. Every transportation. transportation dollars are huge net year, we must renew 100,000 miles of Unfortunately, despite ISTEA’s winners in the overall picture. They highways in order to maintain current record of achievement, our efforts to get back far more in Federal spending pavement conditions. reauthorize it will not be easy. ISTEA than they pay into the Treasury. And My own State of Illinois will need is under attack. A significant number they’re trying to grab even more several billion dollars to repair aging of Senators already support proposals through ISTEA. I say, they should roads and bridges. According to some which would eliminate many of the keep their hands out of the ISTEA estimates, nearly 43 percent of Illinois fundamental bases of ISTEA, including cookie jar. roads need repair, and almost one- much of our commitment to a national We have enormous transportation fourth of Illinois bridges are in sub- transportation system. Instead, these needs in our States, and those needs standard condition. Every year, Illinois proposals would turn much of the pro- deserve strong Federal support. Work- motorists pay an estimated $1 billion S3224 CONGRESSIONAL RECORD — SENATE April 15, 1997 in vehicle wear and tear and other ex- [Mrs. FEINSTEIN] was added as a co- S. 404 penses associated with poor road condi- sponsor of S. 66, a bill to amend the In- At the request of Mr. BOND, the name tions. ternal Revenue Code of 1986 to encour- of the Senator from Florida [Mr. GRA- In Chicago, the transportation hub of age capital formation through reduc- HAM] was added as a cosponsor of S. 404, the Nation, the traffic flow on some of tions in taxes on capital gains, and for a bill to modify the budget process to the major arterial highways has in- other purposes. provide for separate budget treatment creased seven-fold since they were S. 181 of the dedicated tax revenues deposited built in the 1950’s and 1960’s. According At the request of Mr. GRASSLEY, the in the Highway Trust Fund. to a recent study, Chicago is the fifth name of the Senator from Maine [Ms. S. 492 most congested city in the Nation. The COLLINS] was added as a cosponsor of S. At the request of Mr. SARBANES, the typical Chicago-area driver wastes 34 181, a bill to amend the Internal Reve- names of the Senator from Kentucky hours every year sitting still in traffic nue Code of 1986 to provide that install- [Mr. FORD] and the Senator from Mas- jams, and pays $470 a year in lost time ment sales of certain farmers not be sachusetts [Mr. KENNEDY] were added and wasted fuel. treated as a preference item for pur- as cosponsors of S. 492, a bill to amend In order to meet the transportation poses of the alternative minimum tax. certain provisions of title 5, United infrastructure needs of Illinois and the S. 194 States Code, in order to ensure equal- Nation, the Federal Government must ity between Federal firefighters and At the request of Mr. CHAFEE, the continue to play a lead role in the on- name of the Senator from Alaska [Mr. other employees in the civil service going partnership to improve Ameri- and other public sector firefighters, MURKOWSKI] was added as a cosponsor ca’s highways. If there were ever a leg- of S. 194, a bill to amend the Internal and for other purposes. islative case in point for the saying, ‘‘If Revenue Code of 1986 to make perma- S. 494 it’s not broken, don’t fix it,’’ ISTEA is nent the section 170(e)(5) rules pertain- At the request of Mr. KYL, the name it. ing to gifts of publicly-traded stock to of the Senator from Montana [Mr. The ISTEA Reauthorization Act of certain private foundations and for BURNS] was added as a cosponsor of S. 1997 is a simple bill. It builds on the other purposes. 494, a bill to combat the overutilization success of the last 6 years. It does not of prison health care services and con- S. 255 represent a set of major policy trol rising prisoner health care costs. changes. It provides a significant in- At the request of Mr. MCCAIN, the name of the Senator from Virginia [Mr. S. 521 crease in funding over ISTEA levels, At the request of Mr. COVERDELL, the updates some of the funding formulas, ROBB] was added as a cosponsor of S. 255, a bill to amend the Communica- names of the Senator from Missouri and increases flexibility for States, all [Mr. ASHCROFT], the Senator from within the constructs defined by tions Act of 1934 to provide for the re- allocation and auction of a portion of North Carolina [Mr. FAIRCLOTH], and ISTEA. I hope the Environment and the Senator from Ohio [Mr. DEWINE] Public Works Committee will use this the electromagnetic spectrum to en- hance law enforcement and public safe- were added as cosponsors of S. 521, a bill as the basis for its deliberations on bill to amend the Internal Revenue ISTEA reauthorization, and I urge all ty telecommunications, and for other purposes. Code of 1986 to impose civil and crimi- of my colleagues to join us in sponsor- nal penalties for the unauthorized ac- S. 261 ing this important legislation. cess of tax returns and tax return in- I want to point out that this legisla- At the request of Mr. DOMENICI, the formation by Federal employees and tion does not reauthorize the mass name of the Senator from South Da- other persons, and for other purposes. kota [Mr. DASCHLE] was added as a co- transit half of ISTEA. That job falls on S. 522 the Banking Committee. I look forward sponsor of S. 261, a bill to provide for a At the request of Mr. D’AMATO, his biennial budget process and a biennial to working with my colleagues on the name was added as a cosponsor of S. appropriations process and to enhance committee and with others who have a 522, a bill to amend the Internal Reve- oversight and the performance of the strong interest in transit to ensure the nue Code of 1986 to impose civil and Federal Government. next 6 years of transit policy also mir- criminal penalties for the unauthorized ror the successful framework of transit S. 365 access of tax returns and tax return in- policy defined by ISTEA. At the request of Mr. COVERDELL, the formation by Federal employees and As we head into the 21st century, we names of the Senator from Texas [Mr. other persons, and for other purposes. must continue to maintain and im- GRAMM], the Senator from Colorado At the request of Mr. BRYAN, his prove America’s transportation infra- [Mr. ALLARD], the Senator from Mis- name was added as a cosponsor of S. structure. In the global economy, one souri [Mr. ASHCROFT], the Senator from 522, supra. of the things that makes our products Washington [Mr. GORTON], the Senator At the request of Mr. COVERDELL, the competitive is our ability to move from Ohio [Mr. DEWINE], and the Sen- names of the Senator from Texas [Mr. freight across the country cheaply and ator from Idaho [Mr. CRAIG] were added GRAMM], the Senator from Florida [Mr. efficiently. The ISTEA Reauthoriza- as cosponsors of S. 365, a bill to amend MACK], the Senator from Colorado [Mr. tion Act of 1997 will accomplish that the Internal Revenue Code of 1986 to ALLARD], the Senator from Missouri goal by continuing the success of provide for increased accountability by [Mr. ASHCROFT], the Senator from ISTEA into the next 6 years. Internal Revenue Service agents and North Carolina [Mr. FAIRCLOTH], the f other Federal Government officials in Senator from Ohio [Mr. DEWINE], the tax collection practices and proce- ADDITIONAL COSPONSORS Senator from Colorado [Mr. CAMP- dures, and for other purposes. BELL], the Senator from Idaho [Mr. S. 1 S. 377 CRAIG], the Senator from Wisconsin At the request of Mr. COVERDELL, the At the request of Mr. BURNS, the [Mr. KOHL], and the Senator from Mas- name of the Senator from Utah [Mr. name of the Senator from Wyoming sachusetts [Mr. KERRY] were added as BENNETT] was added as a cosponsor of [Mr. ENZI] was added as a cosponsor of cosponsors of S. 522, supra. S. 1, a bill to provide for safe and af- S. 377, a bill to promote electronic S. 525 fordable schools. commerce by facilitating the use of At the request of Mr. KENNEDY, the S. 25 strong encryption, and for other pur- name of the Senator from Oregon [Mr. At the request of Mr. FEINGOLD, the poses. WYDEN] was added as a cosponsor of S. name of the Senator from Maryland S. 387 525, a bill to amend the Public Health [Mr. SARBANES] was added as a cospon- At the request of Mr. HATCH, the Service Act to provide access to health sor of S. 25, a bill to reform the financ- name of the Senator from Massachu- care insurance coverage for children. ing of Federal elections. setts [Mr. KENNEDY] was added as a co- S. 526 S. 66 sponsor of S. 387, a bill to amend the At the request of Mr. KENNEDY, the At the request of Mr. HATCH, the Internal Revenue Code of 1986 to pro- name of the Senator from Oregon [Mr. name of the Senator from California vide equity to exports of software. WYDEN] was added as a cosponsor of S. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3225 526, a bill to amend the Internal Reve- S. RES. 73 S. RES. 74 nue Code of 1986 to increase the excise SECTION 1. FINDINGS. Whereas the United States economy con- taxes on tobacco products for the pur- The Senate finds that: tinues to expand at a brisk pace after 6 con- pose of offsetting the Federal budg- (1) The total tax burden on the American secutive years of economic growth; etary costs associated with the Child family in 1996 was 30.4%, the highest level in Whereas unemployment and inflation con- Health Insurance and Lower Deficit history; tinue to remain at the lowest combined rate (2) In 1996, one in every three dollars Act. in 30 years; earned in America was paid over in taxes to Whereas median family income is experi- S. 528 the federal government; encing its fastest growth since the 1960s; At the request of Mr. CAMPBELL, the (3) The Congressional Budget Office esti- Whereas taxes as a percentage of gross do- name of the Senator from North Caro- mates that in 1997 the federal government mestic product are lower in the United lina [Mr. FAIRCLOTH] was added as a co- will take $1.5 trillion from taxpayers; the States, at 31.7 percent, than in any of the sponsor of S. 528, a bill to require the highest amount ever; Group of Seven industrialized countries, the display of the POW/MIA flag on various (4) The President’s Office of Management average for which is 36.5 percent; occasions and in various locations. and Budget estimates that in 1997, the fed- Whereas according to the Congressional eral government will take $673 billion from Budget Office, Federal taxes as a share of na- S. 529 working families, the highest level in his- tional income are 19.4 percent, the same At the request of Mr. GRASSLEY, the tory; level as in 1969, and are projected to fall to names of the Senator from Arkansas (5) President Clinton proposed, and the 18.8 percent in 2002, not including any tax [Mr. HUTCHINSON], the Senator from then-Democrat-controlled Congress enacted, cuts which Congress may yet enact this Colorado [Mr. ALLARD], and the Sen- a $241 billion tax increase on the American year; ator from Kansas [Mr. ROBERTS] were people in 1993—the largest in history. Whereas according to the Congressional added as cosponsors of S. 529, a bill to (6) The American family today pays 38.4% Budget Office, the total Federal effective tax amend the Internal Revenue Code of of its income in federal, state and local rate, including income, payroll, and excise taxes, the highest burden in history. 1986 to exclude certain farm rental in- taxes, for a family making $40,000 per year (7) The date on which the American family averages 19 percent, of which only 6 percent come from net earnings from self-em- is free from taxes and begins to keep what it ployment if the taxpayer enters into a is attributable to individual income taxes, earns is the latest ever—May 7. the lowest of any of the major industrialized lease agreement relating to such in- (8) 56% of all tax returns reporting capital countries; come. gains came from taxpayers with total in- Whereas the Center on Budget and Policy SENATE JOINT RESOLUTION 6 comes below $50,000; Priorities has calculated that the typical (9) Since 1993, the economy has had below At the request of Mr. KYL, the name American generates the income necessary to of the Senator from New York [Mr. average growth—2.5% versus 3.2% in the pre- pay his or her annual Federal personal in- vious ten years—and productivity has in- come tax by January 20th of each year; D’AMATO] was added as a cosponsor of creased at below-average-rates—0.3% versus Senate Joint Resolution 6, a joint reso- Whereas strong economic growth, low in- 1.5% in the previous ten years. flation and unemployment, and declining tax lution proposing an amendment to the (10) The estate tax can be as high as 55%, burdens on typical American families have Constitution of the United States to which is an unjustifiable and confiscatory been achieved at the same time that the Fed- level of taxation that penalizes work, thrift protect the rights of crime victims. eral budget deficit has been reduced by near- and entrepreneurship. SENATE JOINT RESOLUTION 11 ly two-thirds; (11) For three decades, despite spending At the request of Mr. LAUTENBERG, Whereas every Republican Senator voted over 3 billion dollars of taxpayer money, the his name was added as a cosponsor of against the Omnibus Budget Reconciliation IRS has failed to create a successfully func- Act of 1993, which cut the deficit by 63 per- Senate Joint Resolution 11, a joint res- tioning computer system. olution commemorating ‘‘Juneteenth (12) The IRS investigated 1,515 employees cent, lowered interest rates, stimulated job Independence Day,’’ June 19, 1865, the for unauthorized snooping in taxpayer files, creation, and boosted gains in personal in- day on which slavery finally came to yet of those employees only 23 were fired; come; an end in the United States. (13) The IRS has serious security problems Whereas the 1993 budget legislation cut which jeopardize its ability to process taxes, taxes on 15,000,000 workers and their families SENATE RESOLUTION 70 (40,000,000 Americans) and made 90 percent of At the request of Mr. LAUTENBERG, and puts taxpayer information at risk of being misused, changed or destroyed; small businesses eligible for corporate tax his name was added as a cosponsor of (14) It is estimated that $200 billion each reductions; Senate Resolution 70, a resolution ex- year is lost to fraud and non-payment of Whereas President Clinton has submitted pressing the sense of the Senate re- taxes, which the IRS is incapable of finding to Congress a budget proposal that would garding equal pay for equal work. and collecting. further reduce taxes on working families, in- cluding tax credits and deductions designed f SEC. 2. SENSE OF THE SENATE. to make post-secondary education and train- It is the Sense of the Senate that: SENATE RESOLUTION 72—REL- (1) In 1997, Congress should provide tax re- ing more affordable; ATIVE TO SENATE FLOOR AC- lief for the American people, particularly for Whereas the Congressional Budget Office CESS families with children, and should cut the has certified that the President’s budget pro- capital gains tax, reduce the estate tax bur- posal would eliminate the fiscal deficit by Mr. LOTT (for himself, Mr. WYDEN, 2002, achieving the first budgetary surplus in Mr. REID, Mr. WELLSTONE, Mr. MUR- den, and begin moving toward a fairer, sim- pler tax system. the United States since 1969; KOWSKI, and Mr. BRYAN) submitted the (2) The President should send a detailed Whereas the principal budget legislation following resolution; which was re- plan to Congress by August 1, 1997, address- offered in the 105th Congress by the Repub- ferred to the Committee on Rules and ing the problems with the IRS and proposing lican majority would make it more difficult Administration: an action plan to resolve these problems. to balance the budget by extending S. RES. 72 (3) In 1997, Congress should pass legislation $526,000,000,000 of tax cuts over the next 10 years, more than an estimated three-quar- Resolved, That an individual with a disabil- that imposes criminal penalties for unau- ters of which would benefit the best-off 20 ity who has or is granted the privilege of the thorized snooping in taxpayer files by IRS Senate floor may bring such supporting serv- employees. percent of taxpayers rather than middle class working families; ices on the Senate floor, which the Senate f Sergeant At Arms determines are necessary Whereas as many Americans rush to sub- and appropriate to assist such disabled indi- SENATE RESOLUTION 74—REL- mit their income tax returns to the Internal viduals in discharging the official duties of ATIVE TO BUDGET DEFICIT RE- Revenue Service by April 15, Congress is his or her position until the Committee on DUCTION AND TAX RELIEF poised to miss its own April 15 deadline to Rules and Administration has the oppor- pass a budget resolution because the Repub- tunity to fully consider a permanent rules Mr. DORGAN (for Mr. DASCHLE) sub- lican majority in the 105th Congress has em- change. mitted the following resolution; which phasized symbolic political gestures in con- nection with the Federal budget rather than f was referred to the Committee on the Budget and the Committee on Govern- the bipartisan construction of legislation to SENATE RESOLUTION 73—TO DE- mental Affairs, jointly, pursuant to the eliminate the deficit; and CLARE THE NEED FOR TAX RE- order of August 4, 1977, as modified by Whereas the continuing failure by the Re- LIEF publican majority to advance a budget reso- the order of April 11, 1986, with instruc- lution has the effect of withholding from Mr. LOTT submitted the following tions that if one committee reports, middle-class Americans the tax cuts pro- resolution; which was referred to the the other committee has 30 days to re- posed for them by the President, undermin- Committee on Finance: port or be discharged: ing progress toward a balanced budget, and S3226 CONGRESSIONAL RECORD — SENATE April 15, 1997 denying the economy the benefit of the lower (2) The table of sections for part I of sub- U.S.C. 4013(c)(1)) is amended by striking ‘‘30’’ long-term interest rates that a balanced chapter A of chapter 75 of such Code is and inserting ‘‘15’’. budget would promote: Now, therefore, be it amended by inserting after the item relating (b) EFFECTIVE DATE.—The amendment Resolved, That it is the sense of the Senate to section 7213 the following new item: made by subsection (a) shall be construed to that the Republican majority should take up ‘‘Sec. 7213A. Unauthorized inspection of re- have taken effect on January 1, 1997, and without delay a budget resolution that bal- turns or return information.’’ shall expire June 30, 1997. ances the budget by 2002, targets its tax-re- (c) EFFECTIVE DATE.—The amendments lief on working and middle class families to f made by this section shall apply to viola- the same degree as the President’s budget tions occurring on and after the date of the proposal, and protects important domestic NOTICES OF HEARINGS enactment of this Act. priorities such as medicare, medicaid, edu- SUBCOMMITTEE ON IMMIGRATION cation, and the environment. SEC. 3. CIVIL DAMAGES FOR UNAUTHORIZED IN- SPECTION OF RETURNS AND RE- Mr. HATCH. Mr. President, there will f TURN INFORMATION; NOTIFICATION be a hearing held by the Subcommittee OF UNLAWFUL INSPECTION OR DIS- AMENDMENTS SUBMITTED CLOSURE. on Immigration, Senate Committee on (a) CIVIL DAMAGES FOR UNAUTHORIZED IN- the Judiciary, on Tuesday, April 15, SPECTION.—Subsection (a) of section 7431 of 1997, at 10:30 a.m., in room 226, Senate THE TAXPAYER PRIVACY the Internal Revenue Code of 1986 is amend- Dirksen Building, on immigrant entre- PROTECTION ACT ed— preneurs, job creation, and the Amer- (1) by striking ‘‘DISCLOSURE’’ in the head- ican dream. ings for paragraphs (1) and (2) and inserting SUBCOMMITTEE ON EMPLOYMENT AND TRAINING COVERDELL (AND OTHERS) ‘‘INSPECTION OR DISCLOSURE’’, and AMENDMENT NO. 45 (2) by striking ‘‘discloses’’ in paragraphs Mr. JEFFORDS. Mr. President, I Mr. LOTT (for Mr. COVERDELL, for (1) and (2) and inserting ‘‘inspects or dis- would like to announce for information closes’’. himself, Mr. GLENN, Mr. ROTH, Mr. of the Senate and the public that a (b) NOTIFICATION OF UNLAWFUL INSPECTION MOYNIHAN, Mr. MACK, Mr. KERRY, Mr. hearing of the Subcommittee on Em- OR DISCLOSURE.—Section 7431 of such Code is KOHL, and Mr. D’AMATO) proposed an ployment and Training, Senate Com- amended by redesignating subsections (e) mittee on Labor and Human Resources, amendment to the bill (S. 522) to and (f) as subsections (f) and (g), respec- amend the Internal Revenue Code of tively, and by inserting after subsection (d) will be held on Thursday, April 17, 1997, 1986 to impose civil and criminal pen- the following new subsection: 9:30 a.m., in SD–430 of the Senate Dirk- alties for the unauthorized access of ‘‘(e) NOTIFICATION OF UNLAWFUL INSPECTION sen Building. The subject of the hear- tax returns and tax return information AND DISCLOSURE.—If any person is criminally ing is innovations in youth training. by Federal employees and other per- charged by indictment or information with For further information, please call the inspection or disclosure of a taxpayer’s re- committee, 202/224–5375. sons, and for other purposes; as follows: turn or return information in violation of— COMMITTEE ON LABOR AND HUMAN RESOURCES Strike all after the enacting clause and in- ‘‘(1) paragraph (1) or (2) of section 7213(a), sert the following: ‘‘(2) section 7213A(a), or Mr. JEFFORDS. Mr. President, I SECTION 1. SHORT TITLE. ‘‘(3) subparagraph (B) of section 1030(a)(2) would like to announce for information This Act may be cited as the ‘‘Taxpayer of title 18, United States Code, the Secretary of the Senate and the public that a Browsing Protection Act’’. shall notify such taxpayers as soon as prac- hearing of the Senate Committee on SEC. 2. PENALTY FOR UNAUTHORIZED INSPEC- ticable of such inspection or disclosure.’’ Labor and Human Resources will be TION OF TAX RETURNS OR TAX RE- (c) NO DAMAGES FOR INSPECTION REQUESTED TURN INFORMATION. held on Friday, April 18, 1997, 9:30 a.m., BY TAXPAYER.—Subsection (b) of section 7431 in SD–430 of the Senate Dirksen Build- (a) IN GENERAL.—Part I of subchapter A of of such Code is amended to read as follows: chapter 75 of the Internal Revenue Code of ‘‘(b) EXCEPTIONS.—No liability shall arise ing. The subject of the hearing is im- 1986 (relating to crimes, other offenses, and under this section with respect to any in- proving the health status of children. forfeitures) is amended by adding after sec- spection or disclosure— For further information, please call the tion 7213 the following new section: ‘‘(1) which results from a good faith, but committee, 202/224–5375. ‘‘SEC. 7213A. UNAUTHORIZED INSPECTION OF RE- erroneous, interpretation of section 6103, or COMMITTEE ON ENERGY AND NATURAL RE- TURNS OR RETURN INFORMATION. ‘‘(2) which is requested by the taxpayer.’’ SOURCES, SUBCOMMITTEE ON NATIONAL ‘‘(a) PROHIBITIONS.— (d) CONFORMING AMENDMENTS.— PARKS, HISTORIC PRESERVATION, AND RECRE- ‘‘(1) FEDERAL EMPLOYEES AND OTHER PER- (1) Subsections (c)(1)(A), (c)(1)(B)(i), and (d) ATION SONS.—It shall be unlawful for— of section 7431 of such Code as each amended ‘‘(A) any officer or employee of the United by inserting ‘‘inspection or’’ before ‘‘disclo- Mr. THOMAS. Mr. President, I would States, or sure’’. like to announce for the public that a ‘‘(B) any person described in section 6103(n) (2) Clause (ii) of section 7431(c)(1)(B) of hearing has been scheduled before the or an officer or employee of any such person, such Code is amended by striking ‘‘willful Subcommittee on National Parks, His- willfully to inspect, except as authorized in disclosure or a disclosure’’ and inserting toric Preservation, and Recreation of this title, any return or return information. ‘‘willful inspection or disclosure or an in- the Committee on Energy and Natural ‘‘(2) STATE AND OTHER EMPLOYEES.—It shall spection or disclosure.’’ be unlawful for any person (not described in Resources. (3) Subsection (f) of section 7431 of such The hearing will take place on Thurs- paragraph (1)) willfully to inspect, except as Code, as redesignated by subsection (b), is authorized in this title, any return or return amended to read as follows: day, May 1, 1997, at 9:30 a.m. in room information acquired by such person or an- ‘‘(f) DEFINITIONS.—For purposes of this sec- SD–366 of the Dirksen Senate Office other person under a provision of section 6103 tion, the terms ‘inspect’, ‘inspection’, ‘re- Building in Washington, DC. referred to in section 7213(a)(2). turn’, and ‘return information’ have the re- The purpose of this hearing is to re- ‘‘(b) PENALTY.— spective meaning given such terms by sec- ceive testimony on S. 457, a bill to au- ‘‘(1) IN GENERAL.—Any violation of sub- tion 6103(b).’’ section (a) shall be punishable upon convic- thorize the Bureau of Land Manage- (4) The section heading for section 7431 of tion by a fine in any amount not exceeding ment to manage the Grand Staircase- such Code is amended by inserting ‘‘INSPEC- $1,000, or imprisonment of not more than 1 Escalante National Monument. TION OR’’ before ‘‘DISCLOSURE’’. year, or both, together with the costs of (5) The table of sections for subchapter B Because of the limited time available prosecution. of chapter 76 of such Code is amended by in- for the hearing, witnesses may testify ‘‘(2) FEDERAL OFFICERS OR EMPLOYEES.—An serting ‘‘inspection or’’ before ‘‘disclosure’’ by invitation only. However, those officer or employee of the United States who in the item relating to section 7431. wishing to submit written testimony is convicted of any violation of subsection (6) Paragraph (2) of section 7431(g) of such (a) shall, in addition to any other punish- for the hearing record should send two Code, as redesignated by subsection (b), is ment, be dismissed from office or discharged copies of their testimony to the Sub- amended by striking ‘‘any use’’ and insert- from employment. committee on National Parks, Historic ing’’ any inspection or use’’. ‘‘(c) DEFINITIONS.—For purposes of this sec- Preservation, and Recreation, Commit- (e) EFFECTIVE DATE.—The amendments tion, the terms ‘inspect’, ‘return’, and ‘re- tee on Energy and Natural Resources, turn information’ have the respective mean- made by this section shall apply to inspec- tions and disclosures occurring on and after U.S. Senate, 304 Dirksen Senate Office ings given such terms by section 6103(b).’’ Building, Washington, DC 20510–6150. (b) TECHNICAL AMENDMENTS.— the date of the enactment of this Act. (1) Paragraph (2) of section 7213(a) of such SEC. 4. For further information, please con- Code is amended by inserting ‘‘(5),’’ after (a) IN GENERAL.—Section 1306(c)(1) of the tact Jim O’Toole of the subcommittee ‘‘(m)(2), (4),’’. National Food Insurance Act of 1968 (42 staff at (202) 224–5161. April 15, 1997 CONGRESSIONAL RECORD — SENATE S3227 COMMITTEE ON ENERGY AND NATURAL ning at 9:30 a.m. to receive testimony week on the IRS programs on the Gen- RESOURCES from Senator MARY L. LANDRIEU, Louis eral Accounting Office’s [GAO] high Mr. MURKOWSKI. Mr. President. I ‘‘Woody’’ Jenkins, and/or their coun- risk list which identifies those Federal would like to announce for the benefit sels in connection with a contested programs most vulnerable to waste, of Members and the public that the U.S. Senate election held in Louisiana fraud, abuse, and mismanagement. To Committee on Energy and Natural Re- in November 1996. the taxpayer’s dismay, the IRS made sources has scheduled a hearing to re- The PRESIDING OFFICER. Without the list six times. IRS programs have ceive testimony on S. 430, the New objection, it is so ordered. been consistently on GAO’s high risk Mexico Statehood and Enabling Act SUBCOMMITTEE ON ACQUISITION AND list since its inception in 1990 and GAO Amendments of 1997. TECHNOLOGY has issued over 200 reports in the past The hearing will take place on Mon- Mr. LOTT. Mr. President, I ask unan- 5 years critical of the problems at IRS. day, May 5, 1995, at 2:30 p.m. in room imous consent that the Subcommittee The problems at IRS are consider- SD–366 of the Dirksen Senate Office on Acquisition and Technology of the able. For example: Building. Committee on Armed Services be au- IRS still can’t pass an audit—some- Those wishing to testify or submit thorized to meet at 2 p.m. on Tuesday, thing that the private sector has been written statements for the record April 15, 1997, in open session, to re- doing since the 1930’s and State govern- should contact James Beirne, senior ceive testimony on the trends in the ments since the 1980’s. Because IRS’ fi- counsel to the committee at (202) 224– industrial and technology base sup- nancial statements are so poor, it is 2564 or Betty Nevitt, staff assistant, at porting national defense in review of S. likely the entire Government will not (202) 224–0765 or write the Committee 450, the National Defense Authoriza- be able to pass its first congressionally on Energy and Natural Resources, U.S. tion Act for Fiscal Years 1998 and 1999. required audit of its financial state- Senate, Washington, DC 20510. The PRESIDING OFFICER. Without ments this fall. Shouldn’t IRS live up f objection, it is so ordered. to the same accounting standards it imposes on the taxpayer? NOTICE OF WORKSHOPS SUBCOMMITTEE ON EAST ASIAN AND PACIFIC AFFAIRS For three decades IRS has been at- COMMITTEE ON ENERGY AND NATURAL Mr. LOTT. Mr. President, I ask unan- tempting to overhaul its outdated RESOURCES imous consent that the Subcommittee 1960’s era computer systems. In its Mr. MURKOWSKI. Mr. President, I on East Asian and Pacific Affairs of the third unsuccessful attempt at mod- would like to announce for the infor- Committee on Foreign Relations be au- ernization, IRS has spent over $3 bil- mation of the Senate and the public, thorized to meet during the session of lion, with very little to show for it. the workshops which have been sched- the Senate on Tuesday, April 15, 1997, This has become a case study in how uled before the Committee on Energy at 10 a.m. to hold a hearing. not to buy computers. In the area of tax collections, GAO and Natural Resources to exchange The PRESIDING OFFICER. Without finds that IRS has no real basis for de- ideas and information on the issue of objection, it is so ordered. termining how much it is owed or, in competitive change in the electric SUBCOMMITTEE ON EMPLOYMENT AND TRAINING power industry. any comprehensive sense, by whom. Mr. LOTT. Mr. President, I ask unan- This is important because every dollar The first workshop will take place on imous consent that the Subcommittee Thursday, May 8, beginning at 9:30 a.m. owed which is not collected due to in- on Employment and Training of the accurate filing or ineffective collection in room 216 of the Hart Senate Office Committee on Labor and Human Re- Building. The topic of discussion will comes out of the pocket of every hon- sources be authorized to hold a hearing est taxpayer. be the effects of competition on fuel on innovations in adult training during use and types of generation. Despite an IRS pledge to have zero- the session of the Senate on Tuesday, tolerance for snooping by IRS person- The second workshop will take place April 15, 1997, at 9:30 a.m. on Thursday, May 22, beginning at 9:30 nel through taxpayer’s files, GAO finds The PRESIDING OFFICER. Without that the practice continues. Only one a.m. in room 216 of the Hart Building. objection, it is so ordered. The topic of discussion will be the fi- IRS computer system has a very lim- nancial implications of restructuring. SUBCOMMITTEE ON READINESS ited ability to detect snooping. As for The third workshop will take place Mr. LOTT. Mr. President, I ask unan- the rest of IRS systems and paper files on Thursday, June 12, beginning at 9:30 imous consent that the Subcommittee there are few controls to protect sen- a.m. in room 216 of the Hart Senate Of- on Readiness of the Committee on sitive taxpayer records from this inva- fice Building. The topic of discussion Armed Services be authorized to meet sion of privacy. will be the benefits and risks of re- at 2 p.m. on Tuesday, April 15, 1997 in All of IRS’ computers are at risk of structuring to consumers and commu- open session, to receive testimony re- not operating properly on January 1, nities. Participation is by invitation. garding environmental and military 2000, because of the antiquated comput- For further information please write to construction issues in review of S. 450, ers’ inability to deal with the year 2000 the Senate Committee on Energy and the National Defense authorization bill date change. In less than 1,000 days, the Natural Resources, U.S. Senate, Wash- for fiscal years 1998 and 1999, and S. 451, collection of revenue and the entire tax ington, DC 20510, attn: Shawn Taylor. the military construction authoriza- processing system will be in jeopardy. tion bill for fiscal year 1998. It is estimated that $200 billion is f The PRESIDING OFFICER. Without lost each year to fraud and nonpay- AUTHORITY FOR COMMITTEES TO objection, it is so ordered. ment of taxes. While IRS caught $131 MEET f million in fraudulent returns in 1995, GAO lists filing fraud as a high risk COMMITTEE ON FOREIGN RELATIONS ADDITIONAL STATEMENTS area and it is uncertain how many Mr. LOTT. Mr. President, I ask unan- fraudulent returns slip through the imous consent that the Committee on system. Foreign Relations be authorized to THE IRS AND TAXPAYERS AT But these concerns are even sur- meet during the session of the Senate RISK passed by new ones raised by GAO in on Tuesday, April 15, 1997, at 2 p.m. to ∑ Mr. THOMPSON. Mr. President, on January in a confidential report on hold a hearing. the final day for taxpayers to file their IRS security weaknesses which is now The PRESIDING OFFICER. Without tax returns, I think it is appropriate being released in very restricted form. objection, it is so ordered. for Congress and the American people IRS has very serious physical and in- COMMITTEE ON RULES AND ADMINISTRATION to assess how well the Internal Reve- formation security problems which Mr. LOTT. Mr. President, I ask unan- nue Service [IRS] is doing managing jeopardize its ability to function and imous consent that the Committee on the collection of 1.4 trillion taxpayer puts taxpayer data at risk of being im- Rules and Administration be author- dollars. Unfortunately, the answer is properly used, changed, or destroyed. It ized to meet during the session of the not very well. The Committee on Gov- should concern us all that GAO’s find- Senate on Tuesday, April 15, 1997 begin- ernmental Affairs held a hearing last ings of IRS’ vulnerability to security S3228 CONGRESSIONAL RECORD — SENATE April 15, 1997 threats are of such great concern that istration’s recognition of many of the first year of eligibility. He had a career most of the original report can not be problems it faces is a good first step. batting average of .311 with the Dodg- made public. However, it is unclear how establishing ers; won the 1949 batting title with a What is at stake here? The con- new layers of bureaucracy will improve .342; was selected as National League fidence of the taxpayer is at stake. Tax the situation at IRS. We also need to MVP in 1949; and named National laws must be fairly enforced at the understand how giving IRS greater per- League Rookie of the Year in 1947. least possible cost and personal intru- sonnel and budgetary flexibilities As my dear friend, Hank Aaron, sion and IRS must meet the standards would enable it to better manage its wrote in an op-ed piece which ran in it expects the taxpayer to meet. programs and finances. the New York Times on Sunday, April Our credibility as the steward of the It is necessary for Congress and the 13, 1997, ‘‘Jackie showed me and my money we ask the taxpayer to contrib- administration to work together to re- generation what we could do, he also ute is at stake. Each dollar the Govern- form the IRS. As for the next step, the showed us how to do it. By watching ment collects is a dollar someone else Congress needs more details on the ad- him, we knew that we would have to has earned. It is our obligation to ministration’s IRS reform proposals. I swallow an awful lot of pride to make make the best use of that dollar, and plan to work with my colleagues to en- it in the big leagues.’’ Jackie Robinson not waste a cent of it. sure that a detailed plan is sent to Con- and Hank Aaron not only made it in Finally, at stake is the very ability gress as soon as possible to address the the big leagues, but they also suc- of government to perform its necessary IRS’ high risk problems. This reform ceeded with their lives. responsibilities and functions. Without plan should be linked to IRS’ GPRA Mr. President, I ask that the entire taxpayer confidence that we are col- strategic plan and should include spe- text of Hank Aaron’s op-ed that ap- lecting money fairly and wisely, our cific performance measures that will peared in the New York Times on April system of government is crippled. successfully address IRS’ high-risk 13, 1997, be printed in the RECORD. Taxation in this country has a long areas. The material follows: and tumultuous history. We are a na- Congress is also taking up today leg- [From the New York Times, Apr. 13, 1997] tion founded on a tax revolt and are islation on criminalizing the snooping WHEN BASEBALL MATTERED continuously renewed by a healthy by IRS employees of confidential tax- (By Hank Aaron) skepticism toward all forms of tax- payer data. This is an issue with a ATLANTA.—Jackie Robinson meant every- ation. It is important to remember longstanding history at the Govern- thing to me. that it is only with the American peo- mental Affairs Committee. The issue Before I was a teen-ager, I was telling my ple’s consent that the IRS exists in the was first brought to light during finan- father that I was going to be a ballplayer, first place. cial audits under the Chief Financial and he was telling me, ‘‘Ain’t no colored As a nation we collect taxes to pay Officers Act. In 1994, it was thought ballplayers.’’ Then Jackie broke into the for the responsibilities we have as- that IRS would address this issue in a Brooklyn Dodgers lineup in 1947, and Daddy never said that again. When the Dodgers signed to our Government. Right over comprehensive manner. At last week’s the entrance to the IRS are the words played an exhibition game in Mobile, Ala., hearing, GAO found that snooping was on their way north the next spring, Daddy of Oliver Wendell Holmes: ‘‘Taxes are still a significant problem. All of us are even came to the game with me. A black the price we pay for a civilized soci- greatly disturbed about reports of lax man in a major-league uniform: that was ety.’’ But, recognizing the need to fund security and the unauthorized brows- something my father had to see for himself. government responsibilities does not ing by IRS employees of taxpayer in- Jackie not only showed me and my genera- imply that we should continue with formation. This invasion of privacy is a tion what we could do, he also showed us how business as usual at the IRS. If an breech of public trust and only further to do it. By watching him, we knew that we agency fails in its fundamental mis- would have to swallow an awful lot of pride lowers the faith of the taxpayer in the to make it in the big leagues. We knew of the sion, or fails to keep its promises to fairness of the system. hatred and cruelty Jackie had to quietly en- Congress and the American people, we I want to work with the administra- dure from the fans and the press and the need to be prepared to make fundamen- tion and other congressional commit- anti-integrationist teams like the Cardinals tal changes. I, for one, favor greatly tees to implement lasting solutions to and the Phillies and even from his team- simplifying the Tax Code. A simpler identified management problems at mates. We also knew that he didn’t subject code, fairly administered, will help to IRS and reduce the risks to the tax- himself to all that for personal benefit. Why restore the taxpayers’ faith in the sys- payers. Most of these problems have would he choose to get spiked and cursed at tem. It will also make the system more and spat on for his own account? existed for years. I recognize that this Jackie was a college football hero, a hand- manageable. administration, and previous ones, some, intelligent, talented guy with a lot In the meantime, it is imperative for have tried to solve them. But, time is going for him. He didn’t need that kind of IRS to improve its operations. It is growing short. The confidence of our humiliation. And it certainly wasn’t in his outrageous that IRS programs put on citizens is low and the risks are high.∑ nature to suffer it silently. But he had to. GAO’s high-risk list remain there year- f Not for himself, but for me and all the young after-year. GAO testified before the black kids like me. When Jackie Robinson Governmental Affairs Committee in JACKIE ROBINSON loosened his fist and turned the other cheek, June of 1991 and described key areas in ∑ Mr. CLELAND. Mr. President, I rise he was taking the blows for the love and fu- ture of his people. which IRS needed to improve its oper- today to pay tribute to Jackie Robin- Now, 50 years later, people are saying that ations. Six years later, we heard vir- son, a true American hero. Born in Jackie Robinson was an icon, a pioneer, a tually the same message in the same Cairo, GA and raised by a single moth- hero. But that’s all they want to do: say it. areas from GAO. What has IRS been er in Pasadena, CA, Jackie Robinson Nobody wants to be like Jackie. Everybody doing in the last 6 years? What has integrated major league baseball 50 wants to be like Mike. They want to be like been done to correct systemic manage- years ago today. It was not an easy Deion, like Junior. ment problems at IRS? task. He faced outright prejudice from That’s O.K. Sports stars are going to be Fortunately, the forces for change fans, other teams, as well as his own role models in any generation. I’m sure Jackie would be pleased to see how well may now be coming into place. Con- teammates. He was cursed and spit black athletes are doing these days, how gress has used its power of the purse to upon. It is hard to imagine how one mainstream they’ve become. I’m sure he express its dissatisfaction with IRS’ man could endure such circumstances. would be proud of all the money they’re computer modernization. A new Com- But, he persevered and paved the way making. But I suspect he’d want to shake mission to Restructure the IRS has for young blacks who had long dreamed some of them until the dollar signs fell from been formed to address how the Nation of wearing a major league baseball uni- their eyes so they could once again see collects taxes and the administration form. His courageous actions forced all straight. has announced a new plan for reform at Jackie Robinson was about leadership. Americans to face the issue of integra- When I was a rookie with the Braves and we IRS. The Deputy Secretary of Treasury tion, and he helped to jump start the came north with the Dodgers after spring Lawrence Summers, testified before civil rights movement. training, I sat in the corner of Jackie’s hotel the Governmental Affairs Committee Jackie Robinson was deservedly room, thumbing through magazines, as he last Thursday on this plan. The admin- elected to the Hall of Fame in 1962, his and his black teammates—Roy Campanella, April 15, 1997 CONGRESSIONAL RECORD — SENATE S3229 Don Newcombe, Junior Gilliam and Joe honor him in a way that really matters. It Development Institute Metro-Detroit Black—played cards and went over strategy: could start more youth programs, give tick- Affiliate. what to do if a fight broke out on the field; ets to kids who can’t afford them, become a Throughout her 18-year career in the if a pitcher threw at them; if somebody social presence in the cities it depends on. It Michigan House, Alma Stallworth was called one of them ‘‘nigger.’’ could hire more black umpires, more black In his later years, after blacks were secure doctors, more black concessionaries, more widely recognized as a champion of in the game, Jackie let go of his forbearance black executives. women, children, and minorities. She and fought back. In the quest to integrate It could hire a black commissioner. fought to expand prenatal coverage for baseball, it was time for pride to take over You want a name? How about Colin Pow- pregnant women, increase Michigan’s from meekness. And Jackie made sure that ell? He’s a great American, a man more pop- child immunization rate and provide younger blacks like myself were soldiers in ular, maybe, than the President. I’m not out parenting education to teenagers with the struggle. there pushing his candidacy, but I think he children. She was an active member of When I look back at the statistics of the would be great for baseball. He would restore the National Black Caucus of State late 1950’s and 60’s and see the extent to some social relevance to the game. He would which black players dominated the National do honor to Jackie Robinson’s name. Legislators, as well as a successful League (the American League was somewhat It would be even more meaningful, per- fundraiser for the United Negro College slower to integrate), I know why that was. haps, if some of Jackie’s descendants—to- Fund, raising more than $1 million We were on a mission. And, although Willie day’s players—committed themselves this over the past 11 years. Mays, Ernie Banks, Frank Robinson, Willie year to honoring his name, in act as well as Representative Stallworth was also a Stargell, Lou Brock, Bob Gibson and I were rhetoric. leader on issues related to public utili- trying to make our marks individually, we Jackie’s spirit is watching. I know that he ties. She served as chair of the Public understood that we were on a collective mis- would be bitterly disappointed if he saw the sion. Jackie Robinson demonstrated to us Utilities Committee in the Michigan way today’s black players have abandoned House of Representatives, and was a that, for a black player in our day and age, the struggle, but he would be happy for their true success could not be an individual success nonetheless. And I have no doubt vice-chair of the Telecommunication thing. that he’d do it all over again for them.∑ and Banking Committee in the Na- To players today, however, that’s exactly tional Conference of State Legisla- f what it is. The potential is certainly there, tures. perhaps more than at any time since Jackie MUSIC IN OUR SCHOOLS MONTH Alma Stallworth’s legislative leader- came along, for today’s stars to have a real ship will be missed, but I am confident impact on their communities. Imagine what ∑ Mr. SANTORUM. Mr. President, I that she will continue to serve as a could be accomplished if the players, both would like to take a few minutes of champion for those people who often black and white, were to really dedicate Senate business to discuss Music in lack a voice in the political process. I themselves—not just their money, although Our Schools Month. that would certainly help—to camps and know my colleagues will join me in Throughout the month of March, counseling centers and baseball programs in congratulating Alma on her illustrious which was designated Music in Our the inner city. career and in wishing her well in her Schools Month, the Pennsylvania Some of the players have their own chari- future endeavors.∑ table foundations, and I applaud them for Music Educators Association [PMEA] that. (I believe Dave Winfield, for instance, promoted public awareness of arts edu- f is very sincere.) But as often as not these cation. On March 11, the Pennsylvania FIFTIETH ANNIVERSARY OF JACK- good works are really publicity stunts. Alliance for Arts Education sponsored IE ROBINSON BREAKING BASE- They’re engineered by agents, who are acting the Second Annual Arts in Education in the interest of the player’s image—in BALL’S COLOR BARRIER other words, his marketability. Players Day in Harrisburg, PA. Representa- ∑ Mr. ABRAHAM. Mr. President, I rise these days don’t do anything without an tives from PMEA also attended the to pay special tribute to a legendary agent leading them every step of the way ‘‘SingAmerica’’ campaign here in figure in our Nation’s history; Jack (with his hand out). The agent, of course, Washington, DC, on March 13. In addi- Roosevelt Robinson. One half century could care less about Jackie Robinson. tion to renewing an interest in music, The result is that today’s players have lost ago today, Jackie Robinson stepped ‘‘SingAmerica’’ sought to restore a out of the dugout before an Ebbets all concept of history. Their collective mis- sense of pride in our communities. sion is greed. Nothing else means much of Field crowd of 30,000 to play first base anything to them. As a group, there’s no dis- For years, public schools in Penn- for the Brooklyn Dodgers. In doing so, cernible social conscience among them; cer- sylvania have provided opportunities he became the first African-American tainly no sense of self-sacrifice, which is for children to grow and learn through to play professional baseball in the what Jackie Robinson’s legacy is based on. the arts. Several teachers have ob- modern major leagues. It’s a sick feeling, and one of the reasons I’ve served that studying music has helped However, Jackie Robinson did not been moving further and further away from children learn to work in groups, to merely break baseball’s color barrier, the game. think creatively, and to communicate he shattered it in the most spectacular The players today think that they’re mak- more effectively. Moreover, music edu- ing $10 million a year because they have tal- fashion imaginable. He was the first ent and people want to give them money. cation has helped introduce students to African-American to lead the league in They have no clue what Jackie went through history and cultural studies. stolen bases, to win the batting title, on their behalf, or Larry Doby or Monte Mr. President, I would like to take to play in the All-Star Game, to play Irvin or Don Newcombe, or even, to a lesser this opportunity to recognize the in the World Series, to win the Most extent, the players of my generation. People teachers who have dedicated their lives Valuable Player Award, and to be in- wonder where the heroes have gone. Where to preparing children for the future. I ducted into the Hall of Fame. there is no conscience, there are no heroes. hope my colleagues will join me in The saddest thing about all of this is that As an ardent baseball fan, I marvel at baseball was once the standard for our coun- thanking them for their commitment his accomplishments on the field. As try. Jackie Robinson helped blaze the trail to improving education.∑ an American, I stand in gratitude for for the civil rights movement that followed. f all he did for civil rights in this coun- The group that succeeded Jackie—my con- try. The impressive nature of his long temporaries—did the same sort of work in THE HONORABLE ALMA litany of baseball firsts is far surpassed the segregated minor leagues of the South. STALLWORTH by the measure of his exceptional char- Baseball publicly pressed the issue of inte- gration; in a symbolic way, it was our civil ∑ Mr. LEVIN. Mr. President, I rise acter. To be able to bear the brunt of rights laboratory. today to pay tribute to my friend, the national adversity and hostility and It is tragic to me that baseball has fallen Honorable Alma Stallworth, a truly still perform with such dignity and so far behind basketball and even football in dedicated public official who recently grace requires a courage far greater terms of racial leadership. People question retired after 18 years of serving the than most could summon. whether baseball is still the national pas- people of northwest Detroit in the To many, the details of April 15, 1947 time, and I have to wonder, too. It is cer- Michigan House of Representatives. are long forgotten. For the record, in tainly not the national standard it once was. The upside of this is that baseball, and Representative Stallworth is being the seventh inning Robinson scored the baseball only, has Jackie Robinson. Here’s honored at a retirement celebration deciding run in a 5 to 3 win over the hoping that on the 50th anniversary of Jack- hosted by the Black Caucus Founda- Boston Braves. When Robinson crossed ie’s historic breakthrough, baseball will tion of Michigan and the Black Child home plate, it was a victory for his S3230 CONGRESSIONAL RECORD — SENATE April 15, 1997 team, for professional sports, and, in- teammates asked to be traded when 1950’s and 1960’s. For the people of deed, for the entire country. Jackie they learned he was being called up Georgia, this celebration has special Robinson was one of those rare individ- from the minors. Off the field he some- significance because Jackie Robinson uals who transcended both race and times could not join the rest of the was born in Cairo, GA, 78 years ago. athletics to become an American hero. Dodgers in the same hotels or res- Last year, his Georgia roots were hon- It is my hope and belief that his legacy taurants. Jackie Robinson had to en- ored when the Cairo High School today is as powerful as ever.∑ dure it all, because he knew if he named its baseball stadium Jackie f fought back, if his confidence and calm Robinson Field. were rattled, and if he did not perform The son of a sharecropper and grand- JACKIE ROBINSON to the highest athletic level, it could son of a slave, Jackie Robinson knew Mr. CONRAD. Mr. President, some of be years before another minority play- poverty, adversity, and the most overt the most pivotal events in U.S. history er would be given the same chance. But forms of discrimination. He knew espe- that have helped eliminate the barriers he used his courage and ability to suc- cially the lonely burden of having to between white and black Americans ceed on every level, proving himself to break the color line in baseball all by have been simple acts that occurred in be much, much more than just a tal- himself. Apart from remarkable ath- very common, everyday settings; on a ented baseball player. letic abilities, Jackie Robinson pos- bus, in a diner, and in a school. Today How far we have come in terms of ra- sessed extraordinary personal qualities marks the 50th anniversary of one of cial equality in the half-century since which enabled him to embody the those events, and it also occurred in a Jackie Robinson’s debut is debatable. hopes and challenge the prejudices of common and unlikely setting—at a Black athletes are now commonplace an entire generation of Americans. He baseball game. On April 15, 1947, the in professional sports, and some, such truly met the classic definition of Brooklyn Dodgers debuted their new as basketball star Michael Jordan, are courage—the demonstration of grace infielder, Jackie Robinson, in a game among the most successful and in- under pressure. Georgians and all Americans honor against the Boston Braves. And by his stantly recognizable figures in the the history which Jackie Robinson very presence on that field, American world. Over the weekend, an amaz- made 50 years ago today. It is clear in society was changed forever. ingly-gifted and congenial young man retrospect that he did more than open Until that day, professional baseball named Tiger Woods became both the the door of the national pastime to Af- had been segregated for over 50 years, first African-American and first Asian- rican-Americans. He also helped to and no African-American in the 20th American to win the Masters golf tour- open the door of a genuine opportunity century had worn a major league uni- nament, breaking down another long- society to all Americans. Jackie Rob- form. Segregation had denied many held color barrier. inson believed passionately in the fine black players from competing side But outside of sports, there are still promise of the American dream. by side with their white counterparts. subtle but daunting barriers that pre- Through a lifetime of hard work, per- It was the dream of many Negro vent African-Americans, as well as sonal sacrifice, and commitment to ra- League stars like Satchel Paige, Josh other minorities, from achieving equal Gibson, and Cool Papa Bell to take the cial harmony, he did as much as any status in many facets of our culture. American over the past half century to field in a major league park and have Shortly before his death in 1972, Robin- help make that noble dream a reality.∑ the chance to claim their rightful place son himself was quoted as saying, f in the record books alongside Babe I can’t believe that I have it made while so Ruth and Ty Cobb. They knew they many of my black brothers and sisters are RECOGNIZING THE FRONT LINE were good enough, and so did many hungry, inadequately housed, insufficiently IRS EMPLOYEE white baseball executives who saw clothed, denied their dignity, live in slums or Mr. ROBB. Mr. President, as we de- barely exist on welfare. ∑ them play. But until Jackie Robinson, bate our tax system and the manage- black Americans were kept out of the If he were still alive today, it is like- ment of the Internal Revenue Service, majors and many of these great players ly his opinion would be unchanged. I believe we should take time out to never got the chance to play there. But America is a work in progress recognize a largely unappreciated In 1947, Dodgers’ manager Branch and there may always be barriers, large group of public servants. If there is Rickey ignored the color line and gave and small, which create inequity in our anyone dreading tax day more than the Jackie Robinson a chance to play. Not society. Jackie Robinson was one of taxpayer in general, it is the front line because he was black, not because he the best athletes in the world, and the IRS employee who is right now trying could be a symbol for a change in barrier he broke was one that pre- to handle all of those last minute American society, but because he was a vented him and other black athletes phone calls and process the bulk of re- dazzling player who could help the from using their talents for their full- turns that are just now starting to Dodgers win. And he did. In that very est gain. Jackie Robinson faced that flood in. These people are not the prob- first year, Robinson became the Na- barrier with courage, faith, and dig- lem, they are the ones who make the tional League’s Rookie of the Year. In nity. He broke it for himself, but even system as it exists work in the best 1949, he would be named the Most Valu- more significantly for all those who way possible. The revenues they collect able Player. In 10 years, he helped have followed. That is why he is a hero pay for our national parks, our high- Brooklyn capture six National League and why we celebrate his memory ways, and our national defense. While championships and one World Series today. Perhaps the lesson we can learn we can debate the system at length, I title. He retired with a lifetime batting from Jackie Robinson’s example is that believe we should take a moment today average of .311 and was named to the we must face those areas of discrimina- of all days to recognize the hard work Hall of Fame in his first year of eligi- tion we encounter in our lives, no mat- done by those front line men and bility. ter what our racial heritage, with the women at the IRS to make our govern- After his rookie season, he was listed same courage, faith, and dignity. We ment run.∑ second only to Bing Crosby as the most may never fully end discrimination but f popular man in America. That is a very we can continue working together to interesting fact, for even though he eliminate the barriers that remain.∑ TRIBUTE TO THE TOP 10 SMALL clearly captured the hearts and minds f BUSINESSES IN KANSAS CITY of many Americans, and no doubt ∑ Mr. BOND. Mr. President, on Mon- changed the thinking of many others, JACKIE ROBINSON day, April 21, 1997, the Kansas City MO there were also those who hated him ∑ Mr. COVERDELL. Mr. President, Chamber of Commerce will honor the and let him know it with vicious in- today, all of America celebrates the 1997 Top 10 Small Businesses of the sults, jeers, and threats of physical vio- 50th anniversary of Jackie Robinson’s Greater Kansas City area. The Cham- lence. On the field opposing ballplayers courageous entry into major league ber is an association of almost 3,000 tried to spike him on the base paths, baseball, an event which foreshadowed businesses across the 10-county bistate and pitchers regularly threw fast balls and indeed paved the way for the wider area whose members employ approxi- near his head. Even some of his own integration of American society in the mately 240,000 people in the Greater April 15, 1997 CONGRESSIONAL RECORD — SENATE S3231 Kansas City area. This honor is part of Unfortunately, Major Joseph is no THE CURRENT LEVEL REPORT FOR THE U.S. SENATE, FIS- the Chamber’s award-winning Small longer with us. She passed away on No- CAL YEAR 1997, 105TH CONGRESS, 1ST SESSION, AS Business Week activities, which are vember 19, 1996, in Philadelphia, PA. OF CLOSE OF BUSINESS APRIL 14, 1997 among the country’s largest Small On December 3, 1996, she was laid to [In billions of dollars] Business Week celebrations. rest at Arlington National Cemetery Budget res- Current The Top 10 Awards are given in rec- with full military honors. olution (H. Current level over/ ognition of the economic contributions Con. Res. level under reso- Mr. President, Major Joseph was of small businesses which make up 178) lution rightfully proud of her service to this more than 90 percent of the Greater ON-BUDGET Nation. I hope my colleagues will join Kansas City metropolitan area. These Budget Authority ...... 1,314.9 1,331.8 16.9 me both in recognizing her accomplish- 10 businesses alone contributed $104 Outlays ...... 1,311.3 1,323.9 12.6 ments and in honoring her as a patriot, Revenues: million in annual sales and employed 1997 ...... 1,083.7 1,104.3 20.5 as a distinguished soldier, and as a cou- 1997–2001 ...... 5,913.3 6,015.2 101.9 more than 840 people in 1996. Nearly 700 rageous human being.∑ Deficit ...... 227.3 219.6 ¥7.6 companies were nominated, but only 10 Debt Subject to Limit ...... 5,432.7 5,262.6 ¥170.1 can earn the honor of small business of OFF-BUDGET f the year. Of the 10, the Greater Kansas Social Security Outlays: 1997 ...... 310.4 310.4 0.0 City Chamber will select its 11th an- 1997–2001 ...... 2,061.3 2,061.3 0.0 nual Small Business of the Year, at its BUDGET SCOREKEEPING REPORT Social Security Revenues: 1997 ...... 385.0 384.7 ¥0.3 luncheon on April 25, 1997. The Small Mr. DOMENICI. Mr. President, I 1997–2001 ...... 2,121.0 2,120.3 ¥0.7 Business of the Year will receive the ∑ hereby submit to the Senate the budg- Note.—Current level numbers are the estimated revenue and direct ‘‘Mr. K’’ award, named for Ewing Mar- spending effects of all legislation that Congress has enacted or sent to the et scorekeeping report prepared by the ion Kauffman, one of the country’s best President for his approval. In addition, full-year funding estimates under Congressional Budget Office under sec- current law are included for entitlement and mandatory programs requiring entrepreneurs. annual appropriations even if the appropriations have not been made. The This year’s Top 10 recipients are, Ac- tion 308(b) and in aid of section 311 of current level of debt subject to limit reflects the latest U.S. Treasury infor- mation on public debt transactions. commodations by Apple, Inc., Gould the Congressional Budget Act of 1974, as amended. This report meets the re- Evans Affiliates, Hermes Landscaping, THE ON-BUDGET CURRENT LEVEL REPORT FOR THE U.S. Inc., Arthur Clark Holding Inc., Boule- quirements for Senate scorekeeping of section 5 of Senate Concurrent Resolu- SENATE, 105TH CONGRESS, 1ST SESSION, SENATE vard Brewing Co., The Corridor Group, SUPPORTING DETAIL FOR FISCAL YEAR 1997, AS OF Inc., Courtney Day Inc., DARCA Inc., tion 32, the first concurrent resolution on the Budget for 1986. CLOSE OF BUSINESS APRIL 14, 1997 Data Systems International Inc., and [In millions of dollars] Galvmet Inc. This report shows the effects of con- When Ewing Kauffman observed that, gressional action on the budget Budget authority Outlays Revenues ‘‘Surprisingly, of all of the motiva- through April 14, 1997. The estimates of tional aspects that there are, once a budget authority, outlays, and reve- ENACTED IN PREVIOUS SESSIONS person has food, clothing, and shelter, nues, which are consistent with the Revenues ...... 1,101,532 Permanents and other spending leg- the most motivating force in the world technical and economic assumptions of islation ...... 843,324 801,465 ...... is appreciation. * * * we don’t express the 1997 concurrent resolution on the Appropriation legislation ...... 753,927 788,263 ...... Offsetting receipts ...... ¥271,843 ¥271,843 ...... appreciation as much as we should.’’ I Budget (H. Con. Res. 178), show that can only speculate that he was think- current level spending is above the Total previously enacted ...... 1,325,408 1,317,885 1,101,532 ing of businesses such as these. As the budget resolution by $16.9 billion in ENACTED THIS SESSION Chairman of the Senate Committee on budget authority and by $12.6 billion in Airport and Airway Trust Fund Rein- statement Act of 1997 (P.L. 105– Small Business, it gives me great satis- outlays. Current level is $20.5 billion 2) ...... 2,730 faction to see my home State thriving above the revenue floor in 1997 and ENTITLEMENTS AND MANDATORIES in the small business community and I $101.9 billion above the revenue floor Budget resolution baseline estimates of appropriated entitlements and would like each honoree to know how over the 5 years 1997–2001. The current other mandatory programs not yet much I appreciate their hard work and estimate of the deficit for purposes of enacted ...... 6,428 6,015 ...... commitment to excellence. I congratu- calculating the maximum deficit TOTALS late these companies not only for this amount is $219.6 billion, $7.6 billion Total Current Level ...... 1,331,836 1,323,900 1,104,262 Total Budget Resolution ...... 1,314,935 1,311,321 1,083,728 honor, but also for the outstanding below the maximum deficit amount for Amount remaining: community service they provide to the 1997 of $227.3 billion. Under Budget Resolution ...... Over Budget Resolution ...... 16,901 12,579 20,534 Greater Kansas City area. They are an Since my last report, dated March 4, inspiration to all small businesses not 1997, there has been no action to ADDENDUM only in this area, but around the coun- Emergencies: change the current level of budget au- Funding that has been designated try, and I applaud them.∑ thority, outlays or revenues. as an emergency requirement f by the President and the Con- The report follows: gress ...... 1,806 1,228 ...... Funding that has been designated TRIBUTE TO MAJ. MARGARET M. U.S. CONGRESS, as an emergency requirement JOSEPH CONGRESSIONAL BUDGET OFFICE, only by the Congress and is not Washington, DC, April 15, 1997. available for obligation until re- ∑ Mr. SANTORUM. Mr. President, I quested by the President ...... 323 305 ...... Hon. PETE V. DOMENICI, would like to take a few moments of Chairman, Committee on the Budget, U.S. Sen- Total emergencies ...... 2,129 1,533 ...... Senate business to honor Maj. Mar- ate, Washington, DC. Total current level including emer- garet Joseph, a Pennsylvanian who gencies ...... 1,333,965 1,325,433 1,104,262• DEAR MR. CHAIRMAN: The attached report dedicated her life to defending freedom for fiscal year 1997 shows the effects of Con- f and serving her country. gressional action on the 1997 budget and is ORDERS FOR WEDNESDAY, APRIL Margaret distinguished herself as a current through April 14, 1997. The estimates member of the Army Nurse Corps. Dur- of budget authority, outlays, and revenues 16, 1997 ing World War II, she served in the Eu- are consistent with the technical and eco- Mr. NICKLES. Madam President, I ropean theater. Many soldiers fighting nomic assumptions of the 1997 Concurrent ask unanimous consent that when the in France and England owe their lives Resolution on the Budget (H. Con. Res. 178). Senate completes its business today, it to dedicated professionals such as Mar- This report is submitted under Section 308(b) stand in adjournment until the hour of garet Joseph, who nursed them back to and in aid of Section 311 of the Congressional 10 a.m. on Wednesday, April 16. I fur- Budget Act, as amended. health. For others, her compassionate ther ask unanimous consent that on care was among the last acts of kind- Since my last report, dated March 3, 1997, Wednesday, immediately following the ness they would experience on this there has been no action to change the cur- prayer, the routine requests through rent level of budget authority, outlays or Earth. In recognition of Margaret’s revenues. the morning hour be granted and there skill and dedication, she was promoted Sincerely, then be a period of morning business to the rank of major by an act of Con- JUNE E. O’NEILL, until the hour of 1 p.m. with Senators gress. Director. to speak for up to 5 minutes each, with S3232 CONGRESSIONAL RECORD — SENATE April 15, 1997 the following exceptions: Senator At 1 p.m. we hope to reach an agree- Senate stand in adjournment under the CAMPBELL, 10 minutes; Senator HUTCH- ment to begin consideration of H.R. previous order. INSON, 10 minutes; Senators MCCON- 1003, the so-called assisted suicide leg- There being no objection, the Senate, NELL and GRAHAM, 30 minutes each; islation. This is legislation that would at 6 p.m., adjourned until Wednesday, Senator CONRAD, 10 minutes; Senator ban Federal funding of assisted suicide. April 16, 1997, at 10 a.m. KENNEDY, 15 minutes; and, Senator If an agreement is reached, it would f DORGAN, 1 hour. allow for 3 hours of debate on that bill. The PRESIDING OFFICER. Without Therefore, Senators can expect a roll- NOMINATIONS objection, it is so ordered. call vote on Wednesday mid to late Executive nominations received by afternoon. All Senators will be notified f the Senate April 15, 1997: accordingly when the vote is scheduled. DEPARTMENT OF STATE PROGRAM f LINDA JANE ZACK TARR-WHELAN, OF VIRGINIA, FOR THE RANK OF AMBASSADOR DURING HER TENURE OF Mr. NICKLES. Madam President, for SERVICE AS U.S. REPRESENTATIVE TO THE COMMISSION the information of all Senators, tomor- ADJOURNMENT UNTIL 10 A.M. ON THE STATUS OF WOMEN OF THE ECONOMIC AND SO- row from 10 a.m. until 1 p.m. the Sen- TOMORROW CIAL COUNCIL OF THE UNITED NATIONS. ate will be in a period of morning busi- Mr. NICKLES. Madam President, if NATIONAL COUNCIL ON DISABILITY ness to accommodate a number of Sen- there is no further business to come be- YERKER ANDERSSON, OF MARYLAND, TO BE A MEMBER OF THE NATIONAL COUNCIL ON DISABILITY FOR A TERM ators who are wishing to speak. fore the Senate, I now ask that the EXPIRING SEPTEMBER 17, 1999. (REAPPOINTMENT) April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E653 EXTENSIONS OF REMARKS

THE CONSTITUTION AND THE is not merely an issue of a person’s rights to TRIBUTE TO PAT ASSALONE AMERICAN DREAM burn a piece of fabric. No! It is indicative of a mindset that pervades our nation and threatens to stifle our comprehension of the HON. BILL PASCRELL, JR. HON. WILLIAM F. GOODLING true essence of liberty in a free society. OF NEW JERSEY OF PENNSYLVANIA Our passion for patriotism has flickered IN THE HOUSE OF REPRESENTATIVES dangerously in the last decades. Today, it is IN THE HOUSE OF REPRESENTATIVES Tuesday, April 15, 1997 Tuesday, April 15, 1997 not uncommon for many to argue against the Constitution and against American Mr. PASCRELL. Mr. Speaker, I would like to Mr. GOODLING. Mr. Speaker, I want to Dream, as if the former is hopelessly dog- bring to your attention the selfless and stead- share with you one of the best speeches I matic and hackneyed and the latter is only fast dedication and outstanding public service have ever heard. It was not delivered by a realized by avaricious capitalists. How they of Pasquale ``Pat'' Assalone, to the community are wrong! professional speaker, but by a professional of West Paterson. student at the Christian School of York before To see what the American Dream really symbolizes, journey with me to Valley Forge After more than 30 years of service on the several hundred people attending a banquet. in the winter of 1778. As the torrents of snow West Paterson police force, Deputy Chief of Jonathan delivered the speech with convic- cascaded down upon the remnants of the Police Assalone is retiring. Pat has been a tion and compassionÐwithout notes. Continental Army, they were realizing tre- dedicated and loyal servant of the public, com- THE CONSTITUTION AND THE AMERICAN DREAM mendous personal sacrifice for this ideal of ing up through the ranks within the police de- (By Jonathan D. Markley, Christian School freedom. Nevertheless, an internal spark mo- partment and eventually being promoted to the of York) tivated them to lay down their own lives rank of deputy chief of police. upon the fields of Brandywine and Bunker ‘‘Give me your tired, your poor, Hill. They never wavered in their patriotic Pat is a well-decorated officer, with numer- Your huddled masses, yearning to breathe dedication to our infant republic. In the ous meritorious service awards and citations free!’’ words of Bart McDowell, they all were guilty from the department. He has been honored by When hundreds of foreign immigrants of treason. ‘‘They knew the risks—death by the State Police Benevolent Association many mouthed these words in the late 1800s, they hanging for themselves, poverty and dis- times for meritorious service, life saving, and dreamt the impossible dream: freedom! They honor for their families—,’’ and yet there honorable service. As the deputy chief of po- came, from Ireland, and Poland, and South- was absolute conviction in Patrick Henry’s eastern Europe. These families risked, quite lice, Pat oversees every facet of the depart- voice when he asked ‘‘Is life so dear, is peace ment's administration, from training to public literally, everything that they called their so sweet, as to be purchased at the price of own. They severed their traditional family chains and slavery?’’ What then followed was relations, scheduling to grants. ties to the homeland. And they chased after one of the most noble allegiances ever made Always serving above and beyond the call something that was truly inconceivable to to America. he said, ‘‘I know not what course of duty, Pat has been a natural leader within them and yet, for once, absolutely within others may take; but as for me, give me lib- the police department as well as the commu- their grasp. What earthly call could possibly erty or give me death!’’ His words shook both nity. He was an integral part in the institution elicit so great a sacrifice? That call was free- those house chambers and the hearts of of the borough's Drug Abuse Resistance Edu- dom! The call of the American Dream! every soul who was willing to protect liberty It has been well over one hundred years cation [DARE] program 6 years ago and has with life itself, if sacrifice so required. been an instrumental part in maintaining the now since Emma Lazarus penned those ex- Today, where is that spirit, that zeal, that hilarating words. Yet, in the interim, the fire of patriotism? success of the program ever since. same Dream that beckoned immigrants to After our revolution, they founded a docu- Pat remains steadfast in his commitment to our shores has been abused. That Dream re- ment to protect that Dream for their poster- the community and his family: wife, Judy, quires that we be involved in our govern- ity. Their Constitution has guided our coun- daughter Lisa, and two grandchildren, Shane ment. It is not an option; rather it is a God- try through two hundred years of change and and Steven, and to the memory of his loving given privilege! And because we have proven transition: through war and peace; through son, Vincent, who has recently passed away. lax in our responsibilities, our patriotic slavery and emancipation; through poverty Mr. Speaker, I ask that you join me, our col- American Dream is fading . . . fading into a and prosperity. Our Constitution has been a maze of apathy. For example, only 49% of leagues, Pat's family and friends, members of beacon of hope for our citizens, challenging the law enforcement community, and the en- the American people voted in last year’s them to dream, regardless of their birth; or election . . . Certainly, we have shirked our nationality; or creed; or religion. Because tire borough of West Paterson, in recognizing duties! our forefathers struggled valiantly to obtain the outstanding and invaluable service of more The American Dream, with its rights and these hopes and dreams, we cannot afford to than 30 years to the community of Deputy responsibilities, is guaranteed by two theo- be apathetic! Becoming involved is hardly Chief of Police Pat Assalone. ries built into our United States Constitu- convenient, but we must measure our own f tion. These concepts, Limited Government consecration to this cause in light of their and Popular Sovereignty, remove the power noblest of sacrifices, their purest form of IN MEMORY OF JOSEPH PATRICK of government from any one party and, in- heroism. Far from being dogmatic or hack- O’NEIL stead, vest that power totally in the control neyed, our Constitution has transcended of the people. Our Constitution does not time. Certainly, it is not obsolete! Certainly, refer to a ruling body with absolute author- it can lead us into the next century! HON. DENNIS J. KUCINICH ity; but, rather, the preamble states, ‘‘We Let us remember once again, let us ponder OF OHIO the People . . . do ordain and establish this deeply the words of Emma Lazarus. Some- Constitution for the United States of Amer- IN THE HOUSE OF REPRESENTATIVES how, these words paint a poignant image of ica.’’ What a revolutionary idea: People rul- the American Dream that must never be ex- Tuesday, April 15, 1997 ing themselves! Government by the consent punged from our consciences. Once we have of the governed! The conclusion of this argu- Mr. KUCINICH. Mr. Speaker, I rise to honor ascertained these privelages, we must be ment, therefore, is that such freedoms de- Joseph Patrick O'Neil, a son of Parma, OH, willing to pay the price: mand our involvement. who lived the American dream. We can readily observe just how severely ‘‘Give me your tired, your poor, Mr. O'Neil was a truckdriver and a proud the sands of time have dulled our sense of your huddled masses, yearning to breathe union member of Teamsters Local 407. Mr. this privilege. In this decade, our court dock- free, The wretched refuse of your teeming shore, O'Neil earned the respect of his fellow union ets are jammed with tort litigation suits, to- members during his 43 years with the union. tally countless millions; proving, once again, Send these, the homeless, tempest tost to that our concept of the American Dream me. He served in the position of recording sec- seems limited to personal benefits instead of I lift my lamp beside the golden door!’’ retary for 11 years. He also served as a stew- prosperity for all Americans. Consider the I pray, that that lamp, beside that golden ard. epidemic of flag-burning—deliberately dese- door, may never be extinguished in our Mr. O'Neil was a veteran, and served in the crating our country’s ideals. My friends, this world! U.S. Army during World War II as a master

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor. E654 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 sergeant in Germany and France. He was lute it, making it less likely that NATO will Or as a senior NATO military officer told awarded two Bronze Star medals for valor at serve as an effective military instrument to de- me: ‘‘The more nations that come in, the Normandy and in central Europe. fend any of the countries under its umbrella. more NATO becomes just a collective secu- Mr. O'Neil is survived by his wife of 51 It is a sobering article and I urge every rity organization, in which members watch each other—not a collective defense group years, Erika; sons, Edward of Brunswick and member of the administration to heed the con- against a common enemy. That’s not the Kevin of Lakewood; and two grandsons. cerns raised by Mr. Friedman: NATO we have now.’’ He will be missed. [From the New York Times, Apr. 14, 1997] Scenario 2 is that NATO doesn’t expand be- f BYE-BYE NATO yond Poland, Hungary and the Czech Repub- (By Thomas L. Friedman) lic and tries to maintain its current defense IN COMMEMORATION OF NA- and peace management functions, with just BRUSSELS.—Some enterprising Russian p.r. TIONAL CRIME VICTIMS’ RIGHTS three new members. But then we’ll have a experts recently visited NATO headquarters WEEK permanent gray zone of states between and suggested a novel way to ease tensions NATO and Russia. The states left out will between an expanding NATO and Russia: fight to get in and Russia will fight to keep HON. GERALD B.H. SOLOMON Just change NATO’s name, the Russians sug- them out. gested, because NATO is a four-letter word OF NEW YORK Scenario 3, the one the White House is for Russians. So how about calling it TO- IN THE HOUSE OF REPRESENTATIVES counting on, is that NATO begins to expand MATO (Trans-Oceanic Military Alliance and now but simultaneously deepens NATO-Rus- Tuesday, April 15, 1997 Treaty Organization), or POTATO (Peace Or- sia cooperation and aid to Russia. This cre- ganization for Trans-Atlantic Ties and Oper- Mr. SOLOMON. Mr. Speaker, far too often, ates so many incentives for Moscow to be ations), or maybe VODCA (Vanguard Organi- the criminals who terrorize our society are glo- nice that NATO will be able to steadily creep zation for Defense, Cooperation and Assist- rified through massive media attention, while toward the Russian border, and fill in the ance)? the rights of the victims and the general public gray zone with new members, without alien- NATO’s savvy boss, Javier Solana, laughed ating Moscow. who are made to suffer and live in fear are vir- off the Russian proposal. But discussions Which will it be? No one at NATO can tell tually ignored. While the rights of these de- with officials here left me convinced that if you. In other words, NATO expansion is a structive individuals are scrupulously and vigi- NATO goes ahead with its expansion, just swan dive into an unknown future. What a lantly guarded, the rights of those whose lives about everything other than its name will be reckless way to deal with the most success- changing—and that’s too bad. I rather liked they devastate fall by the wayside. ful military alliance in history. This travesty is the focus of National Crime NATO the way it was—a tightly knit group f Victims' Rights Week, which falls this year on of like-minded democracies capable of tak- April 13±19. During this week, organizations ing on any military foe in the world. Every- one is assuming that NATO can expand and INTRODUCTION OF THE FAMILY such as the Capital District Coalition for Crime keep that focused identity. Don’t believe it. TAX CREDIT ACT OF 1997 Victims' Rights, are focusing their efforts on The real truth is NATO is now locked on a bringing maximum public attention to the many path of expansion that will dilute its power HON. DAVE CAMP trials and tribulations faced by the victims of every bit as much as baseball expansion di- crime in America. On April 14, the Capital Dis- luted Major League Pitching and made every OF MICHIGAN trict Coalition dedicated a plaque at the site of 90-pound weakling a home-run threat. IN THE HOUSE OF REPRESENTATIVES a tree planted last year in commemoration of It didn’t have to be this way. NATO has al- Tuesday, April 15, 1997 all the victims and survivors of crime in Sara- ways had two core functions. One was de- fense management—the commitment by Mr. CAMP. Mr. Speaker, today, I rise to in- toga County, NY, in my congressional district. each member to defend the others in the troduce legislation to provide much-needed tax Events such as this are critical in the effort to event of attack. The other was peace man- relief to America's middle class. TodayÐApril raise awareness of the impact of crime on its agement—the commitment by NATO’s 16 15Ðmillions of Americans are putting their tax victims and their families. I sympathize im- members to share their defense plans and forms in the mail. Last year, the average mensely with the heartbreak suffered by those budgets so that everyone knew what his American family paid 38 percent of their in- whose lives are permanently altered by the neighbor was up to. Mutual defense kept peace between NATO and Russia and peace come taxesÐFederal, State, and local taxesÐ devastating effects of crime, and who then to feed an ever hungry Government that de- must sit by while they are often either ignored management kept peace among NATO’s 16 members. mands more and more taxpayer dollars. Con- or victimized even more by the justice system. The question NATO asked itself after the trast this April 15 with April 15, 1947. Fifty We in Congress are trying to do our part to cold war was: How do we preserve our de- years ago, Americans paid just 22 percent of remedy this shameful situation by enacting fense strength while expanding our peace their income in taxes. legislation such as the Victims' Rights Act of management capabilities to stabilize newly My bill, the Family Tax Relief Act of 1997, 1995, but it is the tireless efforts of individuals liberated Central Europe? It came up with a solid idea: Partnership for Peace. P.F.P. was would provide a $500 per child family tax and organizations who devote countless credit to every middle-class family with chil- amounts of their time and effort that will en- a junior NATO in which 27 non-NATO Euro- pean states—including Russia—engaged in dren under age 18. The Family Tax Relief Act sure that the crisis in victims' rights takes its joint exercises, sent ambassadors to NATO, of 1997 will cut the income tax burden of a rightful place at the forefront of the media's at- were educated on NATO standards, discussed family of four earning $30,000 per year 51 tention. problems and participated with NATO in percent, and the tax burden of a family earn- Mr. Speaker, I ask all members to rise in peacekeeping in Bosnia. The one thing ing $40,000 by 30 percent. Families earning recognition of National Crime Victims' Aware- P.F.P. members didn’t get was NATO’s com- $75,000 would see their tax burden reduced mitment to mutual defense, which was con- ness Week. Hopefully, through this designa- by 12 percent. The credit is for truly middle- tion and the work of crime victims' rights orga- fined to the core 16. The beauty of P.F.P. was that it preserved NATO’s core strength while class familiesÐphaseouts begin to cut or nizations nationwide, victims of crime in Amer- eliminate the credit for families making over ica will receive the respect and consideration creating a framework to fill the power vacu- um in Central Europe—without threatening $75,000. Fifty million children, from 28 million to which they and their rights are entitled. Russia or setting up a competition over who Americans families, are eligible for the credit. f gets into NATO and who doesn’t. The credit eliminates the total tax burden for So what happened? Unfortunately, in 1996 BYE-BYE NATO families making less than $23,000. the Clinton team abandoned P.F.P. in favor In the last Congress this family tax credit of expanding NATO’s core members. It was a HON. DAVID R. OBEY clinical effort to attract votes from Polish, was a part of the Balanced Budget Act that was vetoed by the President. The American OF WISCONSIN Czech and Hungarian Americans by promis- people sent us to Washington with a clear IN THE HOUSE OF REPRESENTATIVES ing their motherlands membership. This silly decision set NATO on a slippery slope mandateÐreduce the crushing weight of taxes Tuesday, April 15, 1997 to who knows where. on everyday middle-class American house- Mr. OBEY. Mr. Speaker, Thomas Friedman, NATO now has three options. One is that it holds and cut spending. the respected international affairs columnist for eventually expands to Russia’s border, in- But one key thing has been left outÐmid- cluding the Baltic states Latvia, Lithuania the New York Times, has written an excellent and Estonia. If that happens, it will be the dle-class tax relief. That is why I am introduc- column questioning the wisdom of the expan- end of NATO as a mutual defense alliance be- ing this legislation today. I believe that it is vi- sion of NATO. cause there’s no way the U.S. Army is going tally important for Members of Congress to He raises important concerns about whether to guarantee the Estonia-Russia border. In send a clear signal to all that middle-class tax or not the expansion of NATO will, in fact, di- this scenario NATO becomes just a mini-U.N. relief will be an absolutely required component April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E655 of budget negotiations and any budget deal Each year, approximately 10,000 children in The new addition will house a modern pool, reached with the President. the United States are diagnosed with cancer, learning center, computer room, counseling It is time for the Congress to deliver on our the leading cause of death by disease among area, and offices. The renovations will allow promise and give tax relief to hard-working, children in this country. Incited to action by for the Boys' and Girls' Club to redesign their overtaxed middle-class American families. these staggering numbers, the American Can- current program space to provide new pro- f cer Fund for Children has not only worked to gram areas and make the entire facility acces- heighten awareness, but to provide financial sible for handicapped and senior citizens. FORTY-FIRST ANNIVERSARY OF assistance for medical procedures, food, cloth- Mr. Speaker, I ask that you join me, our col- TUNISIAN INDEPENDENCE ing, transportation, prosthetic devices and so- leagues, the members of the Boys' and Girls' cial service programs to young people in treat- Club of Clifton, and the city of Clifton, in rec- HON. NICK J. RAHALL II ment at hospitals throughout Los Angeles ognizing the momentous occasion of the 50th OF WEST VIRGINIA County and serving residents of Ventura anniversary founding of the Boys' and Girls' IN THE HOUSE OF REPRESENTATIVES County. Club of Clifton, Inc., as they commemorate the founding with a groundbreaking celebration on Tuesday, April 15, 1997 The American Cancer Fund for Children has accepted the challenge of meeting the de- Sunday, April 6, 1997. Mr. RAHALL. Mr. Speaker, in acknowledg- mand for patient and family services to help f ment of the 41st anniversary of the independ- promote the chances of survival. These serv- IN RECOGNITION OF STATE ROAD ence of the Republic of Tunisia, I wish to help ices provide a variety of patient psycho-social ELEMENTARY SCHOOL’S 75TH commemorate March 20, 1997 as an historic services designed to foster self-esteem, en- ANNIVERSARY day of celebration for the people of Tunisia. courage peer interaction, and develop special This year is particularly important, as Tunisia patient communication. will be commemorating the bicentennial of the I would especially like to thank Steven HON. DENNIS J. KUCINICH Treaty of Amity, Commerce and Navigation Firestein who, out of the death of his friend, OF OHIO that was signed on August 28, 1797. began his mission to improve the lives of other IN THE HOUSE OF REPRESENTATIVES Tunisia has taken bold steps toward a more children stricken with cancer. From this per- Tuesday, April 15, 1997 democratic system of government by broaden- sonal tragedy rose an array of services and Mr. KUCINICH. Mr. Speaker, I rise to honor ing political debate, advancing social pro- programs to assist childhood victims of can- grams, developing economic programs en- State Road Elementary School of Parma, OH, cer. on its 75th anniversary. State Road Elemen- couraging privatization of the banking and fi- Mr. Speaker, I ask all of my colleagues to nancial sectors, and improving the quality of tary has been the starting place for thousands join me in recognizing the outstanding efforts of proud, educated and involved Parmanians. life for the people of Tunisia, in spire of insta- of the American Cancer Fund for Children in bility emanating from neighboring countries. They have grown to become leaders in their conjunction with Ventura County during Child- unions, respected members of their churches Further, Tunisia has acted as leader and cata- hood Cancer Awareness Week. lyst for peacekeeping missions in suffering and capable and loving parents. f State Road Elementary began humbly as a countries, contributing military contingents to small school. But it grew with the neighbor- operations in Cambodia, Somalia, the Western 50TH ANNIVERSARY OF THE BOYS’ hood. It fit in with the neighborhood's char- Sahara and Rwanda. Tunisia has been a AND GIRLS’ CLUB OF CLIFTON acter. State Road Elementary is located in a voice of moderation in the Arab-Israeli peace neighborhood where family values are strong. process had has called for greater inter- HON. BILL PASCRELL, JR. These are families that work hard at their jobs, national efforts to fight terrorism. OF NEW JERSEY support one another, look out for one another Tunisia has, and continues to be a success IN THE HOUSE OF REPRESENTATIVES and stand up for what is right. State Road Ele- story in a very volatile region of the world. I Tuesday, April 15, 1997 mentary prepared children to be active and am pleased and proud to witness stronger re- Mr. PASCRELL. Mr. Speaker, I would like to upstanding members of their community. lations between the U.S. and Tunisia. I have For three-quarters of a century, this Parma had the fortunate opportunity to spend time bring to your attention the momentous occa- sion of the 50th anniversary of the founding of neighborhood has sent its daughters and sons with Tunisia's Ambassador, His Excellency to start their education at State Road Elemen- Azouz Ennifar, and have the strong impres- Boys' and Girls' Club of Clifton, NJ. Founded in 1947, the Boys' Club of Clifton tary. I see no reason not to think that another sion that Tunisia is emerging as a healthy, four generations of families will be able to independent and politically secure country. I provided recreational activity opportunities to young men in the community. These rec- count on State Road Elementary for a healthy encourage and support continued commitment start and a head start for their children. and cooperation between our two countries reational programs were held after-class hours f and urge my colleagues to take this occasion in the local school until 1958, when the current to salute the Tunisian Government and its building on Clifton Avenue was opened and EXPEDITED RESCISSIONS ACT OF people. became a center for the children in town. 1997—AN EFFECTIVE AND CON- f In 1966, the Girls' Club was founded to pro- STITUTIONAL ALTERNATIVE TO vide similar recreational activity opportunities THE DISCREDITED LINE-ITEM COMMEMORATION OF VENTURA for young women in the community and in VETO ACT COUNTY CHILDHOOD CANCER 1979, the Girls' Club initiated Clifton's first AWARENESS WEEK after-school day-care program for 30 children. HON. DAVID E. SKAGGS Since 1986, the two clubs consolidated, be- OF COLORADO coming the Boys' and Girls' Club of Clifton, HON. ELTON GALLEGLY IN THE HOUSE OF REPRESENTATIVES OF CALIFORNIA Inc. The Boys' and Girls' Club still occupies Tuesday, April 15, 1997 IN THE HOUSE OF REPRESENTATIVES the Clifton Avenue building, but over the years additions to the building were constructed to Mr. SKAGGS. Mr. Speaker, today I am join- Tuesday, April 15, 1997 house the executive offices and the teen pro- ing three other Members in introducing a bill to Mr. GALLEGLY. Mr. Speaker, I would like to gram. An adjacent building contains the pre- give the President and Congress new, effec- commemorate the week of April 14 through school area and a recreational facility. tiveÐand constitutionalÐpowers to weed out April 20 as ``Childhood Cancer Awareness The current facilities are right now at maxi- wasteful Government spending. Week'' in Ventura County, CA. mum capacity as they serve approximately This bipartisan approach, the ``Expedited Through the unwavering dedication of Ste- 1,400 children from Clifton and the surround- Rescissions Act of 1997,'' is being cospon- ven Firestein and the American Cancer Fund ing communities at any given time, and pro- sored by the gentlewoman from New Jersey, for Children, which he founded, the lives of vide services to more than 2,000 children MARGE ROUKEMA; the ranking Democrat on countless children suffering from cancer have yearly. After several years of exploring various the Budget Committee, JOHN M. SPRATT, Jr.; been touched. This organization has brought expansion options, the Club's Board of Trust- and CHARLES W. STENHOLM, a long-time lead- the issue of childhood cancer in the United ees finally settled on plans to add an addition er in the fight for a balanced budget. I am very States to the forefront and heightened commu- that will connect the existing buildings as well pleased to have their support for this measure. nity involvement in social services to families as extensively renovating the facilities now in We all know that sometimes a large appro- in need. use. priations bill includes an item that could never E656 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 pass if it had been considered on its own. INDIA MUST STOP KILLING SIKHS because he advocates an independent Being able to cut that kind of unnecessary Khalistan. spending out of a bill is essential to be pru- HON. GERALD B.H. SOLOMON Mr. Speaker, these are not the tactics of a dent in how we spend taxpayer money, to get OF NEW YORK democracy. The oppression of the Sikhs, the Muslims of Kashmir, the Christians of the Federal budget under control, and to re- IN THE HOUSE OF REPRESENTATIVES Nagaland, the black ``untouchables'' known as store public faith in Congress. The line-item Tuesday, April 15, 1997 DalitsÐthe aboriginal people of the subconti- veto was supposed to be a way to deal with Mr. SOLOMON. Mr. Speaker, I would like to nent, the Assamese, Manipuris, and others that. But while the diagnosis was right, the take this opportunity to wish the Sikh Nation a continues at a feverish pace. proposed remedy went too farÐfurther than happy Vaisakhi Day. Vaisakhi Day is the birth- On October 7, 1987, the Sikhs declared the Constitution permits. That's why it's been day of the Sikh Nation, the anniversary of its their independence from India and named struck down in court. founding by Guru Gobind Singh in 1699. The their independent country Khalistan. India has Our bill is a better prescriptionÐone that will Sikhs have always been a tough, freedom-lov- responded to the peaceful movement to liber- ate Khalistan by stepping up the repression. work and that will pass constitutional muster. ing people, and I take this opportunity to sa- lute them. This kind of repression is not acceptable in Under our bill, whenever the President However, not everyone shares my enthu- any country. It especially offends us when that wants to cut a particular spending item in an siasm for the Sikh Nation's love of freedom. country proclaims its commitment to Demo- appropriations bill, he would be able to require From 1984 to 1992, according to the Punjab cratic values. In that light, it is appropriate for Congress to reconsider and vote separately State Magistracy, which represents all the the United States to take measures to bring on rescinding that item, under tight deadlines local judges in the state of Punjab, the Indian democracy to all the people of South Asia. We and without amendment. regime murdered more than 200,000 Sikhs. should publicly declare our support for an Since then, the Punjab Human Rights Organi- internationally supervised plebiscite on the So, like the line-item veto act, our bill would zation reports that more than 50,000 have question of independence for Khalistan, similar let the President throw a bright spotlight onto been murdered by the brutal Indian regime. to the periodic votes we hold in Puerto Rico. spending items and have Congress vote on That means that in excess of a quarter of a The United States should also cut off all aid to them separately, up or down, without changes million freedom-loving Sikhs have been mur- India. These actions will begin to bring free- and in full public view. Since the wasteful dered since 1984 by ``the world's largest de- dom to the subcontinent. spending we're trying to get at is the kind of mocracy.'' f project that would never pass on its own, this One recent case will illustrate the brutality of A SHOCKING TRAGEDY process will be a completely reliable an effec- India's methods in occupied Khalistan. On tive way to block that kind of waste of tax- March 15, a 26-year-old Sikh named Kashmir HON. LINCOLN DIAZ-BALART payer money. Singh, who was the publicity secretary of the Akali DalÐAmritsarÐin the district of OF FLORIDA Our legislation is patterned after, but strong- Hoshiarpur, was picked up in the middle of the IN THE HOUSE OF REPRESENTATIVES er than, the enhanced-rescission authority night along with his father. The police threw Tuesday, April 15, 1997 passed by the House in 1993. Unlike the 1993 them into a van. Somewhere down the road, Mr. DIAZ-BALART. Mr. Speaker, I am plac- bill, our approach does not let the Appropria- Kashmir Singh's father was thrown from the ing the Council of Khalistan's press release on tions Committee come up with its alternative van while it was still moving. Kashmir Singh a recent tragedy into the RECORD. Press re- way to rescind the same amount of money was then tortured and murdered and his body ports have recently stated that in attempting to that would be cut by the President's proposed was dumped at the Hoshiarpur district hospital capture an alleged terrorist, Indian police offi- rescission. Our legislation requires that the ac- at 4 in the morning for a post mortem. cers killed two adults and a 3-year-old child. tual rescission proposed by the PresidentÐ The police falsely claimed that Kashmir The death of a 3-year-old child must shock the that one, without any amendment, and with no Singh was killed in an encounter with the po- conscience of the international community. lice. This claim is so ridiculous that even the I call on the Indian Government to conduct alternative to itÐbe voted on by the Congress. pro-Government newspaper the Indian Ex- a full and exhaustive investigation into this Unlike the line-item veto, our bill is constitu- press could not accept it. The Indian Express tragedy and to punish all those responsible. tionally sound. It does not attempt to give to described the murder of Kashmir Singh as a Justice delayed is, truly, justice denied. We the President the basic law-making authority cold-blooded killing. must always remember, in the eloquent words that the Constitution vests solely in the Con- Unfortunately, the murder of Kashmir Singh of Dr. Martin Luther King, Jr., that an injustice gress. is not an isolated incident. It is part of a pat- anywhere is an affront to justice everywhere. tern of intimidation designed to put a fear psy- [From the Council of Khalistan, Dec. 17, 1996] Constitutionally, the line-item veto act could chosis in the minds of Sikhs both in Punjab, INDIAN REGIME MURDERS 31⁄2-YEAR-OLD not be effectiveÐit wasn't real. This bill would Khalistan and outside in order to scare them LABELS TODDLER ‘‘TERRORIST’’ give the President authority that could be used into dropping their demand for freedom. An WASHINGTON, DC.—A story in the Decem- effectivelyÐit is real. ongoing incident which has been closely ber 10 issue of The Hitavada, an Indian news- The administration has said it will ask the watched in this Congress is the case of paper, reported that a 31⁄2-year-old Sikh boy was murdered by the police, then the police Supreme Court to reverse Judge Jackson's Jaswant Singh Khalra, who was kidnaped by the police on September 6, 1995, after he claimed that he was a ‘‘terrorist’’ who was decision striking down the line-item veto. I do killed in an ‘‘encounter.’’ not believe appeal will be successful. Judge published a report exposing the fact that over According to the story, the police mur- 25,000 young Sikh men have been abducted Jackson's unusually emphatic opinion makes it dered little Arvinder Singh, his father by the regime, tortured, and murdered, then Jaswinder Singh, and the young boy’s mater- clear that he was completely convinced that their bodies have been declared unidentified nal uncle along the Grand Trunk Road to the line-item veto is profoundly unconstitu- and cremated. In many cases the family mem- collect bounty money which was offered for tional. I'm confident the Supreme Court will bers have never been notified. The Punjab the killing of militants. These Sikhs were agree. and Haryana High court described this policy not militants. The family has not been given the bodies because they were cremated. The We in the Congress ought to pass this new as worse than a genocide. police attached phony identities to the bod- bill. That way, when the Supreme Court does Eighteen months after Mr. Khalra was kid- ies of these victims using the names of sound the final death knell for the line-item naped, Khalra's whereabouts remain un- known militants. Then they claimed bounty veto act, we will have an effective, constitu- known. The Khalra case and his findings are money for killing these militants. When the discussed in detail in a video released last boy’s grandfather brought a complaint tionally valid alternative in place and ready for year called ``Disappearances in Punjab,'' pro- against the police, Punjab and Haryana High use. A majority of Congress wants a mecha- duced by a Hindu human rights activist named Court Justice Iqbal Singh stated that a nism to cut out of appropriations bills that Ram Narayan Kumar. Recently, Mr. Kumar three-year-old boy could not be a ‘‘terror- ist,’’ according to the article. According to spending that could not withstand a separate was himself detained overnight at the Delhi up-or-down vote; the President wants that the Hitavada article, witnesses were coerced airport when he attempted to fly to Austria to into supporting the police version of the in- mechanism; a majority of the American people be with his wife. The regime even detained an cident by testifying that the bullets which wants us to have that mechanism. This bill will American citizen, Balbir Singh Dhillon, for 9 killed these Sikhs did not come from the po- give us that. months on trumped-up charges, apparently lice weapons. April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E657 The court ordered India’s Central Bureau The American people overwhelmingly favor create jobs and opportunities for our chil- of Investigation to investigate the killing of a change in the current system, but we cannot dren and our grandchildren. little Arvinder Singh and to submit its re- radically overhaul our flawed income tax with- We are committed to working together to elevate the debate on comprehensive tax re- port promptly. out the President joining our efforts. On April ‘‘If India has to murder a 31⁄2-year-old child form and to lay the groundwork in Congress to keep its brutal, corrupt empire together, 15, tax day of 1997, the distinguished majority for the enactment of tax reform legislation then freedom for Khalistan cannot be far be- leader and I submit our OP±ED for the that meets these principles. Unfortunately, hind,’’ said Dr. Gurmit Singh Aulakh, Presi- RECORD to let America know we stand on the the Clinton administration has so far shown dent of the Council of Khalistan. Khalistan side of real, substantial tax reform. an unwillingness to substantially change our is the Sikh homeland which declared its REDESIGNING THE SYSTEM federal income tax. In February, the congres- independence on October 7, 1987. ‘‘This inci- (By Bill Archer and Dick Armey) sional leadership wrote the president urging dent is a clear reflection of the immorality him to submit a tax overhaul proposal by Along with the millions of Americans who May 1. We will continue to ask the Clinton of the Indian regime and the character of the have struggled to meet the April 15 income Punjab Police, who do not hesitate to kill administration to face up to its obligation to tax filing deadline, we support overhauling beleaguered taxpayers and offer its own tax their brothers and sisters to make them- today’s federal income tax. While the April selves rich,’’ Dr. Aulakh said. ‘‘They do not reform proposal. 15 deadline reminds us all of our cumbersome Eliminating the current tax system and re- realize that they are pushing future genera- tax system, its problems are with us every tions into the darkness of continued repres- placing it with a simpler, fairer, pro-growth day of the year. system won’t be easy. A recent study showed sion,’’ he added. Last month’s Federal Reserve decision to Dr. Aulakh called on the U.S. government that Washington’s lobbying industry em- raise interest rates amounts to a devastating ploys 67,062 people, making it the largest pri- to take strong measures to punish this bru- indictment of our current tax system. In ef- tality. ‘‘I urge the Administration and Con- vate sector employer in the nation’s capital. fect, the Fed declared that in our current tax The livelihood of these well-funded special gress to cut off U.S. aid to India, place an and regulatory environment, we are unable interests depends on preserving their favored embargo on India like the one America had to handle anything more than a meager 2.4 treatment in the tax code. If we want to on South Africa before Apartheid ended, and percent growth rate without risking higher enact meaningful tax reform, America must support freedom for Khalistan and all the inflation. prevail over Washington special interests. other freedom-seeking nations of the sub- This, to us, is unacceptable. Rather than While we may prefer slightly different continent,’’ he said. ‘‘This kind of brutal re- resigning ourselves to continuing low growth paths to reach true tax reform, we stand pression is unacceptable. Freedom-loving na- rates, we believe it is time for bold change. firmly united in our resolve to replace to- tions like the United States must not toler- When Congress’ Joint Committee on Tax- day’s antiquated tax system. There is no ate it,’’ he said. ation invited a diverse group of economists greater legacy we can leave our children. ‘‘If Indian police are killing toddlers like to consider tax reform, everyone agreed our f Arvinder Singh and labelling them as terror- economy would grow faster with either a na- ists,’’ Dr. Aulakh said. ‘‘Then the world has tional consumption tax espoused by Bill Ar- TRIBUTE TO MS. EARTHA KITT a moral and legal obligation to isolate India cher, chairman of the tax-writing Ways and until they are ready to join the ranks of civ- Means Committee, or under House Majority ilized nations and peacefully end its occupa- Leader Dick Armey’s flat tax. We must re- HON. JAMES E. CLYBURN tion of Khalistan and other South Asian na- place our existing tax code with a system OF SOUTH CAROLINA tions; so that democracy in South Asia can that is fair, honest, vastly simplified and IN THE HOUSE OF REPRESENTATIVES be a reality and not a well cultivated lie.’’ more conducive to economic growth. Tuesday, April 15, 1997 f Our current tax system is complicated and unfair—it must be eliminated. It imposes, by Mr. CLYBURN. Mr. Speaker, I rise today to PERSONAL EXPLANATION conservative estimates, $200 billion in an- pay tribute to one of South Carolina's out- nual compliance costs and immeasurable standing natives, Ms. Eartha Kitt. anxiety on American taxpayers. By punish- Ms. Kitt's personal story reminds me of the HON. CASS BALLENGER ing work, savings and investment, the cur- famous Harlem Renaissance poet Langsten OF NORTH CAROLINA rent code hampers the creation of new and Hughes who posed the question, ``What hap- IN THE HOUSE OF REPRESENTATIVES better jobs and reduces growth in take-home pens to a dream deferred? Does it dry up like pay. In addition, due to high taxes, last year a raisin in the sun? Of fester like a soreÐAnd Tuesday, April 15, 1997 it took average American workers until May 7 to earn enough to pay their federal, state, then run? Does it stink like rotten meat? Or Mr. BALLENGER. Mr. Speaker, had I been crust and sugar overÐlike a syrup sweet? present for rollcall votes 72, 73, 74, and 75 and local tax bills. Not only is our tax code burdensome, it is Maybe it just sags like a heavy load. Or does last week, I would have voted ``yea.'' I am a also fundamentally unfair. The current fed- it explode?'' cosponsor of H.R. 1003, the Assisted Suicide eral income tax is riddled with special-inter- Luckily, Eartha Kitt never considered defer- Funding Restriction Act of 1997, and applaud est loopholes that allow people with similar ring her dreams. Born on a cotton plantation the leadership for bringing it to the floor for incomes to pay vastly different amounts in in South Carolina, the young Eartha Kitt left early adoption. taxes. According to a recent IRS study, some the South to live with an aunt in New York at f people earning more than $200,000 a year pay the age of eight. It was there that she blos- no taxes at all. somed into the magnificent entertainer she is REDESIGNING THE SYSTEM Even if you do have to pay taxes, chances are you are not paying the correct amount. today. Money magazine hired 45 professional tax She has danced and sung her way to be- HON. BILL ARCHER preparers to fill out a hypothetical family’s come one of the country's consummate caba- OF TEXAS 1996 return and they gave 45 different an- ret performers, taken Broadway and the Silver IN THE HOUSE OF REPRESENTATIVES swers, for how much that family owed in Screen by storm, and amassed accolades taxes. In fact, only a quarter of the tax pre- Tuesday, April 15, 1997 from Tony, Emmy, and Academy Award nomi- parers came even within $1,000 of the actual nations to receiving her own star on Holly- Mr. ARCHER. Mr. Speaker, on behalf of taxes due. Mistakes and inequity are inevi- table so long as we keep our ridiculously wood Boulevard's Walk of Fame. myself and my good friend, the distinguished complicated code. Ms. Kitt has also demonstrated her out- Majority Leader DICK ARMEY of Texas, I would We have and will continue to discuss our spoken dedication to her strongly held beliefs. like to submit for the RECORD an OP±ED on respective proposals to fundamentally re- Her vocal opposition to the Vietnam war at a tax reform that ran in today's Washington structure how the federal government col- White House luncheon in 1968 resulted in her Times. Today is the Federal income tax filing lects taxes and how we can work together to being blacklisted by the American entertain- deadline for all Americans. Every April 15, we replace the current tax system. As a result ment community. That setback didn't stop Ms. are reminded how much of our incomes are of our discussions, we have reaffirmed our Kitt from taking her act overseas where she support for legislation to completely replace taken by the Federal Government and how the current tax system with a new, simple still has a devoted following. long it takes us to figure out how much we and fair system that: I applaud and commend the contributions owe. Applies a single, low rate to all Americans. this South Carolina native has made to the en- Congressman ARMEY and I are united in our Requires a supermajority of both chambers tertainment industry. Her inspiring career, dislike for the current tax system. It is unfair, of Congress to raise taxes. which had its humble beginnings on a cotton Provides tax relief for working Americans. burdensome, complicated, and inefficient. We Protects the rights of taxpayers and re- plantation in the deep South, has enchanted need a system that is far simpler, fairer, hon- duces tax collection abuses. audiences around the world. As a result of her est, encourages growth and rewards savings Eliminates the bias against savings and in- accomplishments, Eartha Kitt has become a and investment. vestment and promotes economic growth to living legend. E658 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 Today, on behalf of the State of South ‘‘We have seen both delinquent and noncur- to $500 billion over 5 years, money that would Carolina, I offer a word of thanks as Ms. Kitt rent consumer loans increase at the same go a long way toward balancing the budget embarks on a performance from her heart. time that chargeoffs have risen dramati- and investing in our future. Last year, the Con- This week she participates in a special home- cally,’’ Mrs. Helfer said. ‘‘Chargeoff rates are approaching the levels reached in the last re- gress passed important legislation to reform coming performance of Walter Rutledge's cession.’’ the welfare system. It is time to reform the ``SOULSÐThe Calah'' benefiting Benedict Col- Commercial banks wrote off 2.29% of their corporate welfare system by getting depend- lege in Columbia, SC. Ms. Kitt's extraordinary consumer loans, compared with 1.73% in 1995. ent companies off the Government dole. talents, which have endeared this woman of Credit card writeoffs amounted to 4.3% in In the 104th Congress, I introduced similar the South to an international audience, will 1996, up from 3.4% the previous year. Write- corporate welfare legislation. That bill, H.R. now be showcased for those back home. offs reached 4.72% in the fourth quarter. 3102, took aim at seven of the worst corporate I join with all South Carolinians in thanking The doubling of credit card loans in the welfare programs in the Federal budget, in- past four years and rising personal bank- Eartha Kitt for the example she has set, the cluding the Market Promotion Program, the accomplishments she has achieved, and the ruptcy filings only exacerbate concern, Ms. Helfer said. U.S. territorial possessions tax credit, and the contributions she has made to our cultural Ms. Helfer declined to say whether banks Export Enhancement Program. I was ex- livelihood. Her life as a testament to what one should tighten their credit card lending tremely pleased when legislation was signed can achieve if their dreams are not deferred. standards more, but she cautioned that into law last year, Public Law 104±188, that f banks must be ‘‘very careful’’ in making as- eliminated the territorial possessions tax cred- sumptions about a very unpredictable line of IN PRAISE OF CREDIT UNIONS it. Eliminating this program, which gave com- business. Further, she warned against under- panies a tax break for sending good U.S. job estimating risk caused by liabilities from credit card loans that have been securitized. abroad, will save taxpayers $10.6 billion over HON. DENNIS J. KUCINICH the next 10 years. OF OHIO Not all loan categories performed poorly. Commercial and industrial loans rose 7.3 per- While the premise of my new bill remains IN THE HOUSE OF REPRESENTATIVES cent to $710 billion, and real estate loans the sameÐto reduce corporate welfareÐI Tuesday, April 15, 1997 jumped 5.5 percent to $1.1 trillion. have expanded the scope of my legislation, Mr. KUCINICH. Mr. Speaker, I rise to praise Average return on investment approached and added a lockbox mechanism to ensure credit unions. Credit unions do not charge ex- record levels, rising to 1.19 percent in 1996 that all savings and revenue go directly toward from 1.17 percent in 1995. Nearly 70 percent of deficit reduction. This bill would save $35.3 bil- orbitant bank fees; they do not have excessive banks equaled or surpassed the traditional account minimums. They make low interest benchmark 1 percent ROA. lion over 5 years by ending eight corporate loans, mainly to their members in the commu- The industry’s asset growth slowed for the welfare programs and reforming four others. nities in which they live. Credit unions are run second year in a row, increasing 6.2 percent Because I've limited this legislation to the by their members, who have a voice in the op- to $266 billion in 1996. Assets had grown at most egregious examples, my bill is a litmus eration and policies of their credit union. annual rates of 7.5 percent and 8.2 percent in test for anyone is serious about ending cor- Small businesses depend on credit unions the two prior years. Ms. Helfer described porate welfare. In short, this bill puts a bal- for those reasons because offering credit that as ‘‘probably a good sign’’ considering anced budget, jobs, education, and a clean union membership as a benefit to prospective that rapid asset growth in the late 1980s and environment ahead of handouts to Fortune early 1990s foreshadowed industry employees is a benefit which workers value. downturns. 500 companies and special interests. Credit unions are very small compared with The bank deposit insurance fund topped $2 The legislation I am introducing today rep- banks. The average credit union has less than trillion for the first time and reached re- resents an important step in the effort to end $28 million in assetsÐless than one-sixteenth serves of $1.34 for every $100 of insured depos- wasteful spending and balance the Federal the assets of the average bank. The two larg- its at the end of 1996. After a $4.5 billion cap- budget. I urge you and my other House col- est U.S. banksÐChase and CitibankÐcom- italization in October, the thrift fund leagues to cosponsor and support the Cor- bined have more assets than all 12,047 credit achieved reserves of $1.30 for every $100 at porate Responsibility Act. unions combined. the end of the 1996, versus 55 cents per $100 The Corporate Responsibility Act of 1997 Credit unions are modest compared to six months earlier. A slowdown in merger activity and rising would: banks. Banks today control nearly every dollar numbers of new banks caused the smallest Eliminate the Export Enhancement Program in savingsÐ93 percentÐand in loansÐ94 per- quarterly decline in commercial banks in 11 [EEP]: The U.S. Department of Agriculture centÐin the United States. years, according to the FDIC. Only five [USDA] subsidizes the export of agricultural Banks overshadow credit unions by market banks and one thrift failed in 1996, the fewest commodities by paying exporters cash bo- share and profitability, as was recently de- since 1972. nuses to export agricultural products. Since its tailed in the March 14, 1997, edition of the Echoing recently released figures by the inception in 1985, EEP has paid out more American Banker, ``Commercial Banks Set Office of Thrift Supervision, the FDIC re- than $7 billion in bonuses, mostly to giant agri- $52 Billion Profit Record Last Year, FDIC ported healthy thrift profits, too. The na- businesses. Taxpayers should not be asked to Says.'' I commend it to my colleagues. tion’s 1,924 savings institutions earned $7 bil- lion in 1996 despite spending $3.5 billion to hand out these corporate giveaways or sub- [From the American Banker, Mar. 14, 1997] capitalize the thrift fund. sidize the purchase of food products by for- COMMERCIAL BANKS SET $52 BILLION PROFIT f eign consumers. Estimated savings: $2.1 bil- RECORD LAST YEAR, FDIC SAYS lion over 5 years. (By Dean Anason) INTRODUCING THE CORPORATE Eliminate the Market Access Program WASHINGTON.—The banking industry RESPONSIBILITY ACT OF 1997 [MAP]: USDA subsidizes foreign advertising earned a record $52.4 billion last year, al- costs of multinational and U.S. corporations, though losses on consumer loans continued such as McDonalds and Wrangler. MAPÐfor- to grow. HON. PETER J. VISCLOSKY The Federal Deposit Insurance Corp. said OF INDIANA merly known as the Market Promotion Pro- Thursday that the nation’s 9,528 commercial IN THE HOUSE OF REPRESENTATIVES gramÐfunds consumer-related promotion of products through trade shows, advertising banks earned $13.7 billion in the fourth quar- Tuesday, April 15, 1997 ter, up 14.5% from the same period a year campaigns, commodity analysis, and training ago. Mr. VISCLOSKY. Mr. Speaker, today I am of foreign nationals. Taxpayers should not be For the year, profits rose 7.5% despite the introducing legislation that will cut an esti- asked to pick up the tab for the advertising $650 million banks paid to help rescue the mated $35.3 billion in corporate welfare over costs of large companies that can afford to ad- Savings Association Insurance Fund. Profits were driven by noninterest income the next 5 years. My bill, the Corporate Re- vertise on their own. Estimated savings: $350 from fees and service charges, which in- sponsibility Act of 1997, eliminates or reforms million over 5 years. creased 13.5% in 1996 to $93.6 billion. Interest 12 Federal programs that currently use billions Overhaul the 1872 Mining Act: Allowing for- income rose to $162.8 billion, but at half the of taxpayers dollars to subsidize corporate eign companies to buy public land for $2.50 rate of noninterest income. America. per acre and pay no royalties on the valuable Despite the record profits, FDIC Chairman I am introducing this legislation because I minerals extracted is a license to steal that Ricki Helfer described as ‘‘worrisome’’ the am extremely concerned about the hundreds should be revoked. Many of the mining inter- yearend statistics on consumer loans, par- ticularly credit card loans. of billions of taxpayer dollars spent every dec- ests that benefit from this system are not even Net loan losses rose to $15.5 billion, a 27% ade on special interests and Fortune 500 cor- U.S. companies. My bill would establish a increase from 1995. Credit card loan writeoffs porations. Estimates of current total corporate leasing system and require these companies accounted for $9.5 billion of that total. welfare expenditures range from $200 billion to pay an 8-percent royalty on the valuable April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E659 minerals extracted from Federal land. Esti- This encourages U.S. companies to form sub- ``Be it resolved by the Senate of the General mated savings: $300 million over 5 years. sidiary corporations in a foreign countryÐ Assembly of the State of Indiana, the House Eliminate the subsidy for the Tennessee which can just be a mailing addressÐto qual- of Representatives concurring: Valley Authority [TVA]: TVA receives $106 mil- ify as an FSC. A portion of the FSC's own ex- ``Section 1. That, on behalf of the people of lion each year in a direct Federal subsidy. In port income is exempt from taxes, and the the State of Indiana, we extend our sincere this era of power deregulation and deficit re- FSC can pass on the tax savings to its parent appreciation to IOA for its dedicated service to duction, the Government can no longer afford company because domestic corporations are the people of the State of Indiana and the pro- to subsidize the TVA in this way. Even TVA's allowed a 100-percent dividends-received de- fession of optometry. chairman, Craven Crowell, has said that his duction for income distribution from an FSC. ``Section 2. That the Secretary of the Senate agency can make due without its annual ap- Estimated savings: $7.5 billion over 5 years. is directed to transmit a copy of this resolution propriation. Estimated savings: $500 million Eliminate the ``title passage'' tax break: to the Indiana Optometric Association.'' over 5 years. Companies can treat sales income as foreign Mr. Speaker, it is my sincere pleasure to Reform irrigation subsidies: Under current source incomeÐtherefore realizing a tax join my colleagues at the State house in salut- law, USDA gives farmersÐoften large agri- breakÐby passing title to the property sold ing the Indiana Optometric Association. The businessÐFreedom to Farm payments along offshore even though the sales activity may dedication to the health of our fellow Hoosiers with irrigation subsidies for the same crops on have taken place in the United States. The and to the education of future optometrists the same land. My bill would end this double title passage rule allows a company with ex- bring honor to the Indiana Optometric Associa- dipping by requiring recipients to pay for irriga- cess foreign tax credits to classify more of its tion. They deserve to be suitably proud of this tion costs if they are already receiving Free- income as foreign source, then the company landmark in their existence. dom to Farm subsidies. Estimated savings: receives an implicit tax subsidy. My bill would f $500 million±$1 billion over 5 years. put an end to this practice by closing this tax 100TH ANNIVERSARY OF THE UNI- Eliminate the Tobacco Program: The Fed- loophole. Estimated savings: $16.6 billion over TARIAN CHURCH OF MONTCLAIR eral Government aids producers of tobacco 5 years. through a combination of marketing quotas, Total estimated savings: $35.3 billion over 5 HON. BILL PASCRELL, JR. price-supporting loans, and restrictions on im- years. OF NEW JERSEY ports. Tobacco is the sixth largest cash crop Deficit reduction lock box: This bill includes IN THE HOUSE OF REPRESENTATIVES in the country and most of the price-supports a deficit reduction lockbox to ensure that all and marketing quotas benefit huge companies savings/revenue go directly toward deficit re- Tuesday, April 15, 1997 like Phillip Morris and RJR Nabisco. Estimated duction and are not used to finance other pro- Mr. PASCRELL. Mr. Speaker, I would like to savings: $200 million over 5 years. grams. bring to your attention the momentous occa- Eliminate the Advanced Technology Pro- f sion of the 100th anniversary of the Unitarian gram [ATP]: ATP gives away nearly half a bil- Church of Montclair, NJ. lion dollars a year in research and develop- CENTENNIAL OF THE INDIANA The church dates from February 1897, ment grants to huge high-technology firms like OPTOMETRIC ASSOCIATION when a few women gathered to consider the Caterpiller, General Electric, and Xerox to help feasibility of forming a Unitarian Society. Hav- develop new products. These companies are HON. TIM ROEMER ing a church school for their children was of very well financed and should be using their OF INDIANA their greatest concern, and therefore the own money for R&D. Estimated savings: $1.1 IN THE HOUSE OF REPRESENTATIVES women began preparing themselves as teach- billion over 5 years. ers. In 1898, the church's first minister, the Tuesday, April 15, 1997 Reform process for developing timber roads Rev. Arthur Grant, was called, and both the in national forests: Timber companies profit Mr. ROEMER. Mr. Speaker, I rise today to church and the church school were organized. tremendously from the use of roads in national recognize the 100th anniversary of the Indiana Reverend Grant was succeeded in 1902 by forest lands, but they pay virtually none of the Optometric Association. I want to join my col- Rev. Leslie Sprague, and it was during his cost of building them. My bill would stop subsi- leagues here and in the Senate and House of ministry that the church was built on its dizing the construction of roads which are Representatives in Indiana in commemorating present site. mainly used by timber companies go gain ac- this event. Following is the text of the Concur- In 1906, the Rev. Edgar Swan Wiers was cess to timber. Estimated savings: $250 mil- rent resolution adopted by the 110th general called and continued as minister until his lion over 5 years. assembly of the State of Indiana: death in 1931. During his ministry, and with Reform the U.S. role in the General Ar- ``Whereas, the Indiana Optometric Associa- keen interest from himself and the congrega- rangements to Borrow: The General Arrange- tion (IOA) was founded in 1897 and will be tion in the cultural life of the community, Rev- ments to Borrow [GAB], part of the Inter- celebrating its Centennial Anniversary during erend Wiers established a forum series, a national Monetary Fund [IMF], are intended to the year 1997, and Unity Institute, and a concert series which has prevent any future internal monetary crisis ``Whereas, the IOA is marking 100 years of continuously brought the best available talent caused by developing countries that are un- successful advocacy for the profession of op- to Montclair. Later in Reverend Wiers' min- able to pay their bills. We are bailing out these tometry in Indiana, and istry, Unity Institute was expanded to include countriesÐand the banks that support themÐ ``Whereas, the IOA has provided 100 years a travel series as well as a chamber music se- despite the fact that they have enough capital of service the public interest on behalf of the ries. Interest in the institute's programs of the to spend vast amounts of money on money- eye care and eye health of Indiana's citizens, performing arts, theatrical, musical, and the losing State-sponsored industries, huge bu- and fine arts was vast and continued in numerous reaucracies, and large militaries. My bill would ``Whereas, the IOA was instrumental in the concerts, plays, monologs, and art shows. prevent increased U.S. participation in the decision of the Indiana General Assembly that From the forum series grew the Collegiate GAB. Estimated savings: $3.5 billion over 5 established the Indiana University School of Pulpit. years. Optometry in the early 1950's, and has forged Dr. Norman Fletcher became the church's End special tax treatment of alcohol fuels: an ongoing professional relationship with the minister in 1932 and his concern for civil Manufacturers of gasohol, a motor fuel com- School of Optometry that is a national model, rights, as well as his love of English literature posed of 10 percent alcohol, received a tax and and the theater was evident. During the years subsidy of 54 cents per gallon of alcohol used. ``Whereas, the IOA commends the Indiana of World War I, the church's women's alliance Archer-Daniels-MidlandÐwhich produces most General Assembly for its continuing support of was very active in several war projects. The of the country's gasoholÐhas made billions of the profession of optometry and the patients it women's alliance continued with its concern dollars from this tax break. These subsidies serves, and for the people as well as its support for the have a dubious balance of public versus pri- ``Whereas, the IOA has historically distin- church through projects such as fairs and rum- vate benefits, and they are an inefficient use guished itself as an exemplary professional mage sales. of our energy resources. Estimated savings: optometric association in the United States, Throughout the 1950's, church membership $2.4 billion over 5 years. and soared with scores of chairs being placed in Eliminate the Foreign Sales Corporation ``Whereas, the IOA rededicates itself and the church's aisles to accommodate the grow- [FSC] tax break: The Tax Code's FSC provi- the profession of optometry to serving the eye ing congregation. This remarkable increase in sions permit U.S. exporters to exempt 15 per- health and vision care needs of the citizens of members led to numerous discussions con- cent of their export income from U.S. taxation. the State of Indiana for the next 100 years, cerning the need for a new church. The E660 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 church school, with close to 500 members, pears likely to do so again, effectively ensur- dream. But the benefits of success outweigh outgrew the basement classrooms and the ing that unemployment will not drop any the costs of failure. And we’ll never know public library located next door was bought lower than it is today. Given the data of the unless the Federal Reserve chairman opens last two years, data that, despite endless himself to the possibility that he is wrong. from the township for church use. scrutiny, shows not the slightest hint of [From the New York Times, Apr. 10, 1997] In 1970, Dr. George J.W. Pennington was creeping inflation, we wish the chairman (By Peter Passell) appointed as an associate minister, and in were a little less certain. 1972, upon the retirement of Dr. Fletcher, who Both Greenspan and his critics agree that The latest labor market numbers have had become minister emeritus, Dr. Pennington prices hinge upon a balance of power between been widely greeted as fresh evidence that became a full minister. With a second profes- employers and employees. When joblessness the Federal Reserve chairman, Alan Green- drops, the value of labor rises. Employers span, has a direct line to the Oracle of Del- sion as a clinical psychologist, Dr. Pennington phi. With data suggesting that the demand managed to increase the amount of counsel- raise salaries and pass the cost on to con- sumers. These higher prices cause other for workers is growing more rapidly than the ing work done and also lent a psychological workers to demand raises. Such an inflation- working-age population, the Fed’s pre- tone to many of his sermons. As with the ary spiral can only be stopped if the Federal emptive strike against inflation last month times, the church became less formal, and in Reserve slows the economy, making every- seems to be one more sign that the Fed re- March 1982, Dr. Pennington resigned. body worse off. The big question is how low mains ahead of the game. The Rev. Lee Barker was called to the min- unemployment can drop before an inflation- But not quite everyone is convinced that istry of the church in 1983 and had been with ary spiral begins. Conventional economists Mr. Greenspan’s latest prognostication—or have long held that inflation would start to for that matter, the unbroken economic ex- the church until June 1994. His ministry was pansion since 1991—proves that he has all the distinguished by a growth of membership and mount if unemployment fell below 6 percent. But the current economic expansion, which answers. For while a recession-free six years a continuing commitment to community out- began in 1992, has brought unemployment may have marginalized his critics, it has not reach. down to 5.3 percent without a trace of rising really established that the Fed has found a Called to the pulpit in April 1995, the Rev- inflation. For inflation hawks like Green- golden mean between stable prices and eco- erend Charles Blustein Ortman became the span, this state of affairs can’t go on. nomic growth. seventh minister of the church on November The growth optimists, with varying levels For that exquisite balance, if it exists at 4, 1995. Reverend Ortman continues to serve of plausibility, suggest another story. They all, depends as much on value judgments as believe the economy has entered a new era, technocratic insight. ‘‘Where was it writ- as minister and, along with the church's con- ten,’’ asks Robert M. Solow of M.I.T., a gregation, is looking forward to the centennial capable of sustaining lower unemployment than before. Why have the rules changed? Nobel laureate in economics, ‘‘that absolute anniversary of the Unitarian Church of There are several reasons: security against inflation is worth sacrific- Montclair. Globalization. International competition ing unknown quantities of national in- Mr. Speaker, I ask that you join me, our col- makes it harder for American companies to come?’’ leagues, Reverend Ortman, members of the raise the cost of their goods, lest foreign Moreover, this seems a particularly unfor- congregation, and the township of Montclair, in firms undercut them. It has also made work- tunate moment to choose to err on the side recognizing the outstanding and invaluable ers less secure about their future and hence of fighting inflation at the expense of higher unemployment—and without even a whimper service to the community and the 100th anni- more timid in demanding raises. (Polls of employee confidence support this notion.) of debate. To make welfare reform work, versary of the Unitarian Church of Montclair. Computers have increased productivity. there have to be jobs for those pushed off the f This is the pivotal point. Productivity ulti- rolls. Yet without tight labor markets, busi- mately determines wages. If wages are rising ness will have little incentive to invest in THE FEDERAL RESERVE IS just because employees have more leverage, the training needed to bring marginally WRONG then the boss has to raise prices. But if competent workers into the mainstream. workers are producing more, then employers No one disputes that Admiral Greenspan HON. BARNEY FRANK can pay for a wage increase out of profits in- has kept the economy on an even keel since stead of passing the cost on to consumers. the recession of 1990–91. His performance OF MASSACHUSETTS The latter scenario seems to be the case. seems all the more impressive when com- IN THE HOUSE OF REPRESENTATIVES Productivity rose 1.5 percent last year, while pared with that of German, French and Japa- Tuesday, April 15, 1997 real wages rose by just 0.6 percent. The share nese policy makers, who have not been able of the economy going to corporate profits is to spring their economies from the doldrums. Mr. FRANK of Massachusetts. Mr. Speaker, up a full percentage point from the peak of Today, unemployment is at 5.2 percent and I have voiced my strong disagreement with the the last business cycle. This suggests that the economy is growing at an annual rate recent decision by the Federal Reserve to firms can pay their employees more without well above 3 percent. raise interest rates on the floor of the House. hiking prices. Indeed, even his critics are quick to praise Recently I saw an article in the April 21 issue Bad statistics. Most (though not all) Mr. Greenspan for flexibility in recent years, of The New Republic which makes the case in economists believe the government has been keeping interest rates steady as unemploy- a cogent way that Mr. Greenspan was mis- overestimating inflation for years. That ment dipped below the level experience sug- gested would fuel wage-led inflation. ‘‘He de- taken, and that his mistake will be damaging means we have less to worry about than Greenspan thinks. (Greenspan, interestingly, serves a lot of credit’’ for holding the line to our economy. Similarly, the Economic adheres to this theory himself, although he long after traditional conservatives were Scene column by Peter Passell in the April 10 has of yet failed to reconcile it with his in- calling for a tougher stance, argues James issue of the New York Times does a good job flationary paranoia.) Tobin of Yale, another Nobel laureate. describing the downside of the Fed's decision Hard data to support the new era By the same token, most economists see to clamp down on economic growth. I am in- hypotheses remains sketchy. So far, how- the quarter-point interest rate increase last serting both articles here: ever, the story checks out. And, even if it’s month as a sign of Mr. Greenspan’s enlight- wrong, failure entails nothing more than ened pragmatism and the best way to avoid [From the New Republic, Apr. 21, 1997] slightly higher prices and a future interest a future recession brought on by painfully FED ACCOMPLI rate hike. At its current level, inflation ap- high interest rates. ‘‘By tightening a little Last week the Federal Reserve ended a pears unlikely to spiral out of control. A lit- now,’’ suggests William Dudley of Goldman, five-year experiment: How many people can tle inflation hurts, of course, but it doesn’t Sachs, ‘‘he makes it less likely he’ll have to the nation put to work without triggering really start to bite until it hits the mid-to- tighten a lot later.’’ inflation? The results are fiercely contested, upper single digits. As MIT economist Paul So what’s left to argue about? Plenty. Mr. their ramifications enormous. Everybody Krugman wrote recently in The Economist, Tobin says that inflation is simply not a wants unemployment to be as low as pos- ‘‘3 percent inflation does much less than one- clear and present danger. A close reading of sible, but nobody knows for sure how low third as much harm as 9 percent. other bellwether statistics—notably the pro- that is. Growth optimists believe unemploy- One other recent even has strengthened portion of the newly unemployed who were ment can fall much lower than the current the case for experimentation: welfare re- dismissed and the index of labor demand 5.3 percent without fueling inflation. Infla- form. If the government demands that all based on help-wanted ads—is surprisingly be- tion hawks, led by Fed Chairman Alan citizens who can work do work, it cannot si- nign. ‘‘The risks of inflation seem no greater Greenspan, don’t. multaneously enforce Greenspan’s explicitly today,’’ he concludes, ‘‘than when unemploy- But the debate is academic, because mone- anti-employment program. Or, at least, it ment was up at 6 percent.’’ tary policy isn’t set by public debates and should not do so without first attempting an For his part, Mr. Solow is unconvinced by majority votes, it’s set by Alan Greenspan. alternative. The alternative—an effort to see the conventional wisdom that gradualism And Greenspan is sure that the current high whether we can successfully push unemploy- works best. Small increases in interest rates levels of economic growth and employment ment below 5 percent, and perhaps improve early on—the pre-emptive strike—may seem will soon cause a spiral of higher prices. So the lives of millions in the American less traumatic. But by Mr. Solow’s reading he raised interest rates last week and ap- underclass in the process—may prove a pipe of the evidence, larger increases once signs April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E661 of inflation are unambiguous are no more the athletic teams. His wife, MarySue, com- outlines the labor bosses' plan, so that Mem- likely to generate overcorrections. mented that it takes a unique person to coach bers may read it and draw their own conclu- Economists are comfortable staying within people with disabilities. Jerry approaches the sions. the confines of this purely technical debate. A Greenspan-worshiping majority believes athletes with a lot of patience and caring. AMERICAN FEDERATION OF LABOR AND that unemployment is already below the rate He takes the time to break down things to CONGRESS OF INDUSTRIAL ORGANIZATIONS that can be sustained without bringing on the athletes so that they can understand the Memo to: National and International Union inflation, or that the economy’s momentum fundamentals of the sport. He often ends up Presidents. will soon bring the rate into the inflationary repeating himself to try and help them as From: John J. Sweeney. range. An embattled minority suspects that much as they can. It is this type of patience Subject: Support for Pro-Worker Federal fundamental changes in the economy— and commitment which won him the 1997 Procurement Reforms. globalization, de-unionization, downsizing— U.S.A. Weekend Most Caring Coach Award. Date: March 25, 1997. have sharply lowered the level of unemploy- Nominated by his son, Jerry's commitment The purpose of this memo is to alert you to an exciting initiative that requires the im- ment that is compatible with stable prices. to helping others has invoked his family and But the debate can be confined only to the mediate attention of affiliated unions, and to technical by ignoring its social dimension. friends to also involve themselves with the request your assistance in building the case No one really knows whether the magic Special Olympics. His daughter and son-in- for these much-needed reforms. ‘‘nonaccelerating inflation rate of unemploy- law, Kileen and Jack Clay, have also coached As you may recall, the Clinton Adminis- ment’’ is 5.5 percent or 4.5 percent. So deci- Special Olympic teams. Kevin Pagent and tration recently announced its intention to sions about the target implicitly have as Don Wright, two coworkers of Jerry have fol- undertake several initiatives that will pro- much to do with how one weighs the con- lowed Jerry's example by coaching and sup- tect worker rights and workplace standards sequences of erring on the side of slow porting Special Olympic athletes, often travel- while improving federal government procure- ment and contracting practices. If properly growth against the costs of inflation. ing as far away as 2 hours to get to a game. Fear of inflation has been an easy sell implemented, these initiatives will affect the since the trauma of the oil shocks in the Jerry's influence has also reached to the expenditure of hundreds of billions of dollars 1970’s. Uncertainty about prices leads to eco- young people in the community. Kurt every year. In any given year federal con- nomic inefficiency—and, horror of horrors, Benshimer, a junior at Trinton central High tracts total as much as $200 billion, and fed- lower stock prices. Besides, inflation breeds School, got involved with the Special Olympics eral contractors and subcontractors employ recessions because it eventually brings down after learning of Jerry Knoop's dedication approximately one-fifth of the labor force. the wrath of the monetary gods. But not to through his church, where Jerry also volun- At any given time perhaps 3% of the labor belabor the obvious, living with 5.2 percent teers putting together the weekly bulletin. force is directly employed in the perform- unemployment if the economy is able to sus- Jerry Knoop wholeheartedly puts others in ance of a federal government contract. tain 4.5 percent also has costs: every tenth of In order for these initiatives to take effect a percentage point represents at least 130,000 front of himself. We should all follow the ex- and withstand Republican and business com- jobs. ample that Jerry sets. Mr. Speaker, I would munity opposition in Congress and the It may be tidier to leave monetary policy like to salute Jerry's efforts in the State of Indi- courts, we need the assistance and active in- in the hands of a benign despot. But it’s also ana and recognize the positive impact that he volvement of AFL–CIO unions. We are asking a little sad: if the 5 percent unemployment has had on the community. affiliates to undertake the efforts described barrier cannot be tested when inflation is be- Jerry Knoop is truly a Hoosier hero. That in the attached memorandum, and to des- yond the horizon and a Democrat is in the concludes my report from the Second District ignate one person from each organization White House, when can it? of Indiana. who will work with us in coordinating these f efforts. f Our short term goal is to develop material HOOSIER HEROS—SPECIAL THERE THEY GO AGAIN; THE BIG to buttress our case for these reforms from a OLYMPICS COACH JERRY KNOOP LABOR BOSSES VERSUS AMER- hostile attack from the Republican Congress. The long term goal is to build and sustain a ICAN TAXPAYERS, EMPLOYERS, body of information to help us make the HON. DAVID M. McINTOSH AND JOBS most of these initiatives and have a positive, OF INDIANA pro-worker impact on the world of federal IN THE HOUSE OF REPRESENTATIVES HON. RANDY ‘‘DUKE’’ CUNNINGHAM contracting. The government will be issuing proposed Tuesday, April 15, 1997 OF CALIFORNIA procurement regulations that will accom- IN THE HOUSE OF REPRESENTATIVES Mr. MCINTOSH. Mr. Speaker, I rise today to plish three reforms. give my report from Indiana. Tuesday, April 15, 1997 First, the government will evaluate wheth- During the recess break I had the oppor- Mr. CUNNINGHAM. Mr. Speaker, there they er a bidder for a government contract has a tunity to meet with and listen to the stories of go again. In 1996, the big labor bosses in satisfactory record of labor relations and the people all throughout the great State of In- other employment practices in determining Washington attempted to buy a political party whether or not the bidder is a ‘‘responsible diana. These stories of hope, dedication, and and the elections, using $35 million in union contractor’’ eligible to receive a particular family are truly inspirational. Hoosiers who dues from honest working men and womenÐ government contract. have dedicated their time and compassion to 40 percent of whom opposed the union Second, the government will not reimburse make a difference in the lives of others in bosses' endorsed Presidential candidate. Now federal contractors for costs they incur in communities. These people are truly heroes, they are coordinating with the Clinton adminis- unsuccessfully defending against or settling Hoosier heroes. I would like to share with you tration an expansive, expensive, and bureau- unfair labor practice complaints brought a story of a father who goes above and be- against them by the National Labor Rela- cratic new Federal contracting regulation to tions Board. yond the responsibilities of a parent. Jerry shake down everybody elseÐAmerican tax- Third, the government will not reimburse Knoop, of Fairland, IN, has always been in- payers, employers, and the 90 percent of contractors for the money they spend to volved in the community. Whether it would be workers who are not union membersÐfor the fight unionization of their employees. coaching his children's athletic teams, or sup- self-serving interests of the labor bosses in These proposed amendments to the Federal porting the local athletes, Jerry has helped un- Washington. Acquisition Regulations will be published in selfishly to better the lives of others. It should go without saying that the Presi- the Federal Register for a 60-day notice and After an accident left his son, Eddie Knoop, dent's proposed Executive order on project comment period by the public, and then is- mildly mentally handicap at the age of 8, Jerry sued in final and binding form following con- labor agreements is in addition to existing sideration of those comments. discovered that the local athletic programs Federal contract and labor law, which includes President Clinton will also issue an execu- could no longer accommodate the needs of but is not limited to the Service Contract Act, tive order directing all federal departments his son. He then took it upon himself to make the Davis-Bacon Act, the Fair Labor Standards to consider using a project labor agreement sure his son and others like him received the Act and the minimum wage, the Equal Pay when they undertake government-funded attention they deserve. By working with the Act, the Family and Medical Leave Act, the construction projects. This order is not sub- local school's special education programs as Employee Retirement Income Security Act, the ject to notice-and-comment or other admin- well as the Special Olympics, Jerry made him- Civil Rights Act, the Americans With Disabil- istrative steps. Republicans in Congress and the business self known throughout the community as the ities Act, and the Occupational Health and community attacked these plans as soon as man who can't say no to volunteering. When Safety Act, among others, plus the laws of the the Administration announced them. Repub- his son became old enough to attend Shares States. lican leaders have said they may try to over- Inc., a local shelter for the handicap, Jerry I enter into the RECORD a memorandum ride them and are also threatening litiga- quickly involved himself by coaching several of from AFL±CIO President John Sweeney that tion. Both groups assert that the initiatives E662 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 are bad policy and simply a payoff to the ance of government contracts because em- uations in which the contractor violated or- AFL–CIO for its efforts during the 1996 elec- ployers with good labor relations and em- ganizing rights during an organizing cam- tion campaign. ployment practices are more stable, produc- paign; refused to bargain in good faith for a In order to secure final issuance of the pro- tive and efficient. first contract; tried to destroy an established curement regulations, and to defeat the cam- In order to support this initiative, we need collective bargaining relationship; or unlaw- paign that is coalescing against them and information and documentation about gov- fully discharged or otherwise retaliated the proposed executive order, it is impera- ernment contractors that either are against employees because they supported a tive that AFL–CIO affiliates bolster the case lawbreakers or have substandard labor and union. in support of these changes with specific in- employment practices or policies—for exam- If known, we especially need cases where formation and examples of corporate ple, government contractors that— the government reimbursed the contractor lawbreaking or bad practices that justify the Have been held liable for substantial for the cost of unsuccessfully defending the regulations, and successful experiences with breaches of the National Labor Relations ULP complaint. We recognize that it is un- project labor agreements in both the private Act; the Occupational Safety and Health likely that the union would know these de- and public sectors. Act; the Fair Labor Standards Act; the Em- tails. Identification of the organizing cam- We are reaching out in particular to orga- ployee Retirement Income Security Act; the paign alone would be helpful; we will try to nizers, lawyers, researchers and lobbyists for Civil Rights Act of 1964; the Age Discrimina- obtain information about reimbursement AFL–CIO affiliates to ask their assistance in tion in Employment Act; or other federal from other sources. securing this information, and to consult as laws protecting workplace standards and In particular: Lawyers should provide cita- appropriate with other staff in their union barring employment discrimination. tions to NLRB decisions, and copies of ALJ and its affiliated local, district and similar Are being investigated, sued or prosecuted decisions, settlement agreements and other bodies. for such violations (examples: Caterpillar documents arising from ULP prosecutions of The attached memorandum describes these and Mitsubishi) even though no final deter- government contractors; organizers should initiatives in more detail and specifies the mination has been made. provide information about the organizing information and materials we need. Re- Pay substandard wages; have no defined campaigns at worksites of government con- sponses should be sent directly to AFL–CIO workplace rules and arbitrarily administer tracts that gave rise to ULPs and identify Corporate Affairs Department Director Ron employment policy; provide few or no bene- the union staff of workers who had direct ex- Blackwell, who is coordinating the AFL– fits; provoke ongoing worker dissatisfaction perience with the matter; lobbyists, again, CIO’s research efforts for the procurement or unrest; experience unusually high turn- should review their files where local unions reforms. Ron can be reached at AFL–CIO over and workforce instability; enforce un- or other internal bodies have requested headquarters at 202–637–5160. fair or degrading rules and procedures; or intervention with either the Congress or the Thank you for your help in our campaign provide no means for workers to raise on- Executive Branch over a problem with a gov- to win these important reforms. the-job problems. ernment contractor like the ones described INFORMATION NEEDED IN SUPPORT OF PRO- We need names, dates, related documents in this memo; and researchers should under- POSED GOVERNMENT CONTRACTING REFORMS and, just as important, union representatives take associated research into these matters. The Clinton Administration will soon be or workers who can attest to these situa- b. Anti-Union Campaigning tions or provide at least anecdotal informa- proposing regulations to modify the Federal Under several federal statutes and regula- Acquisition Regulations in three areas, and tion. If your organization has compiled any relevant general data, that would prove very tions, including those governing Head Start, will be issuing an executive order on project Medicare, the National and Community labor agreements. A description of the forth- useful as well. We particularly suggest that: Lawyers Service Act and the Job Training Partner- coming proposals, and the information need- ship Act, federal contractors and fund recipi- ed to support these proposals, follows: gather records of cases involving government contractor violations of workplace laws; lob- ents have long been barred from using gov- 1. REQUIRING GOVERNMENT CONTRACTORS TO byists review their files where local unions ernment money to fight their workers’ ef- HAVE SATISFACTORY LABOR AND EMPLOY- or other internal bodies have requested forts to exercise their rights to organize and MENT PRACTICES intervention with either the Congress or the bargain collectively. Under the regulations that govern federal Executive Branch over a problem with a gov- The government will now revise its regula- procurement and contracting—Part 9 of the ernment contractor like the ones described tions—specifically, in Part 31 of the Federal Federal Acquisition Regulations—before the in this memo; organizers review ongoing and Acquisition Regulations—to specify that as a government can award a contract for goods, recent organizing campaigns at employers general rule covering all government pro- services or construction, such as computers, that are government contractors; and re- curement, contractors will not be able to ob- building maintenance or the erection of a searchers investigate the records of contrac- tain government reimbursement for these government office building, it must evaluate tors in the principal industries they rep- sorts of activities. the contractor’s past performance record; its resent. This reform will create a more level play- record of integrity and business ethics; and ing field when employees of government con- 2. ENDING GOVERNMENT REIMBURSEMENT OF its capability to perform the contract. tractors try to exercise their rights under EMPLOYERS’ ANTIWORKER EXPENSES In selecting contractors, the government the National Labor Relations Act by ending has only occasionally taken into account a a. Defense of Unfair Labor Practice Complaints the grossly unfair practice of taxpayers un- contractor’s labor relations and employment Under current government procurement derwriting employer efforts to fight or influ- practices. Often, then, a contractor with a and contracting regulations—Part 31 of the ence their employees’ decision about exercis- shabby record of treating its workers has Federal Acquisition Regulations—the gov- ing their rights. This initiative will save tax- won a government contract, and on only rare ernment now precludes the reimbursement of payers these expenses, which have nothing to occasions has the government decided that a government contractors for their costs in do with guaranteeing satisfactory govern- contractor’s labor relations were so poor unsuccessfully defending or settling criminal ment contract performance. that it could not satisfactorily perform the indictments and certain civil proceedings We need unions to identify instances where contract up for bid. brought by the government involving fraud organizing campaigns took place in bargain- The government will now revise its pro- or similar misconduct or the imposition of a ing units of employees that were actually curement regulations so they expressly pro- monetary penalty. But the regulations don’t performing the government contract. Again, vide that a satisfactory record of employ- specify whether the defense of unfair labor if known, instances of government reim- ment practices is a component of both the practice complaints issued by the NLRB bursement should be described. We are espe- ‘‘business ethics and integrity’’ and ‘‘capa- General Counsel charging violations of the cially interested in situations in which the bility’’ qualifications for being ‘‘respon- NLRA is a reimbursable cost incurred in the employer aggressively opposed the cam- sible.’’ This means the government will re- performance of a contract that contractors paign; the employer committed ULP’s during view a contractor’s labor and employment can pass on to taxpayers. Now those regula- the campaign; the employer broke or skirted policies and practices and its compliance tions will preclude the use of public funds for the law but, for whatever reason (such as with laws and standards concerning safety that private purpose where the contractor is where the union won the election), the union and health; wages, benefits and other labor found liable or the contractor resolves the did not pursue NLRB objections or charges; standards; equal employment opportunity; case by settlement. This will end the self-de- and other situations where the employer en- and the right to organize and bargain collec- feating practice of the government funding gaged in an anti-union campaign, such as tively. both the enforcement and the defense of gov- during collective bargaining. The AFL–CIO has stressed two important ernment litigation to enforce the labor laws. In particular, Lawyers should review orga- public purposes that are served by this ini- We need information about employers that nizing and contract campaigns they were in- tiative. First, it ensures that the govern- have defended unfair labor practice com- volved with, particularly those in which the ment won’t award contracts to companies plaints brought by the NLRB General Coun- employer incurred substantial legal ex- that don’t respect worker rights or adopt sel during the performance of a government penses; organizers should review organizing sound workplace standards, because these contract, where either the NLRB held that and contract campaigns and, again, identify companies aren’t trustworthy or reliable the contractor violated the NLRA or the both the union staff and workers who had di- enough for the government to do business contractor settled the case after a compliant rect contract with the situation; lobbyists with. Second, it will improve the perform- was issued. We are looking especially for sit- should, again, review their files as described April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E663 earlier; and researchers should undertake as- HAPPY 298TH BIRTHDAY KHALSA integrity of our homeland for almost 3 cen- sociated inquiries. PANTH turies. This identity includes unshorn hair; the turban to keep the head covered as a sign 3. AUTHORIZING PROJECT LABOR AGREEMENTS of respect to God, and, the carrying of a FOR GOVERNMENT CONSTRUCTION. HON. EDOLPHUS TOWNS kirpan—a weapon representing personal de- OF NEW YORK fense and readiness to protect the defenseless A project labor agreement is a comprehen- IN THE HOUSE OF REPRESENTATIVES from injustice, exploitation and cruelty. sive collective bargaining agreement nego- Sikhism is a religion anchored in service tiated at the outset of a project between the Tuesday, April 15, 1997 to God through service to humanity. We end construction owner or manager and the Mr. TOWNS. Mr. Speaker, I rise today to our daily prayer with the words ‘‘Sarbat Da unions representing all the workers who will say happy 298th birthday to the Sikh Nation. Bhalla’’, a prayer for the well being of all hu- construct the project. This agreement sets manity. Sikhs reject idol worship, Sikhs re- April 13 is Vaisakhi Day, the anniversary of the wages, working conditions, work rules ject all forms of caste and social hierarchy, the founding of the Khalsa Panth. On this aus- and dispute resolution procedures for the du- and Sikhs believe in full gender equality and ration of the project. They usually guarantee picious occasion, I would like to salute the reject religious priesthood or any other intermediaries between God and humanity. that projects will be built without strikes, Sikh Nation on their dedication to hard work, lockouts and similar disruptions. In the pri- family, faith, and freedom. CELEBRATING SURVIVAL IN THE FACE OF GENO- CIDE, FREEDOM IN THE FACE OF IMPERIALISM vate sector, project labor agreements have Sikhism is a monotheistic religion which be- long proven their worth in the construction lieves in the equality of all people, including Due in part to romanticized visions of India, fostered by movies like ‘‘Gandhi’’ (al- of large utility, manufacturing and other gender equality. The Sikhs currently live under most 40 percent of the film’s budget came complexes. a repressive occupation by India. We have discussed some of the details of this tyranny from the Indian Government and they re- Over the years of federal government has tained editorial control), India continues to used project labor agreements on large con- many times. Let me just take this opportunity enjoy an international reputation as the struction projects, including dams, atomic to express my solidarity with the Sikh Nation ‘‘world’s largest democracy.’’ However, for energy facilities and other defense installa- in its peaceful struggle to throw off oppression. outcaste Hindus and non-Hindu peoples and tions, but it has never had a policy to con- Like the United States 200 years ago, the Sikh nations, India is not a democracy, but a to- sider using them or to require its contrac- Nation will ultimately triumph because the talitarian state far more ruthless than its British predecessors. Since 1988, Indian po- tors to negotiate them where these agree- cause of freedom is always the right cause. The Council of Khalistan has recently issued lice and security forces have killed 43,000 ments may facilitate efficient and timely Kashmiris. Indian government forces have construction. a flyer for Vaisakhi Day. It contains more de- murdered over 200,000 Christians since 1947. Innumerable state and locally funded con- tailed information about the Sikh struggle. I Tens of thousands of Assamese and tribal struction projects such as the mammoth would like to insert it into the RECORD at this peoples have also been murdered by the In- cleanup of Boston Harbor, and bridges, office time, and I recommend to all my colleagues dian State. In addition, the aboriginal people of South complexes, highways, and airports have been that they read it. Asia, the Dalits, whose indigenous roots and built under project labor agreements. In the HAPPY 298TH BIRTHDAY KHALSA PANTH black skin color has relegated them to the past three years, Republican Governors We are gathered to celebrate the 298th status of outcaste untouchables in Indian so- Whitman of New Jersey and Pataki of New birth anniversary of the Khalsa Panth, or ciety, are subjected daily to subhuman treat- York and Democratic Governor Miller of Ne- Sikh nation. On this day in 1699, the tenth ment which has not changed for millennia. vada have issued executive orders authoriz- and last living Guru of the Sikhs, Guru Unlike ‘‘Gandhi’’ the movie, Mohandas Gan- ing the use of project labor agreements for Gobind Singh Ji stood atop a hill in dhi did not represent India’s untouchables state-funded construction when it will pro- Anandpur Sahib in Khalistan and asked the but instead represented the Oxford-educated mote the efficient, timely and safe construc- Sikhs gathered if anyone would be willing to Brahmins of the Indian National Congress. give their life for their Guru. Five times tion of a project. Gandhi, who fervently believed in the Hindu Guru Gobind Singh Singh Ji asked and five caste system, went on a hunger strike when Under this new presidential executive times a different volunteer would offer their Daht untouchable leader Dr. Ambekdar de- order, when an agency decides that a project head. Guru Ji would escort the volunteer to manded full and equal civil and political labor agreement will benefit a federal con- his tent and re-emerge with bloody sword in rights for Dalits. When Congress Party mem- struction project, it may either negotiate hand. bers threatened Dr. Ambekdar that they one directly or require bidders to agree to After Guru Gobind Singh Ji asked for the would start mob riots that would target negotiate one for the project. fifth volunteer and escorted him into the Dalit communities throughout South Asia, tent, Guru Ji came back out of the tent This order advances fair and efficient gov- he relented in his demands. along with all five volunteers who were clad The Sikh homeland Punjab, Khalistan ernment contracting by making it clear that in resplendent robes, perfectly healthy and (from the Arabic root ‘‘sovereign country of federal agencies, just like state and munici- unscathed. Guru Ji told the congregation the Sikhs’’) face similar threats in India. pal governments and private builders, have that these five Sikhs selflessly offered their The attack on the Sikh’s holiest shrine the the option of using project labor agreements lives for their faith, and in so doing, they are Golden Temple, on June 4, 1984, was the be- as one means of assuring that the project to be called the Panj Piaras—the five be- ginning of a bloody and calculated attack to will be performed in a cost-effective, com- loved ones. destroy the Sikhs politically, culturally and petent and timely manner. Afterwards, Guru Gobind Singh Ji prepared morally. Baptized Sikhs, Amritdhari Sikhs, Amrit by placing sugar in a steel bowl In order to defend this order from antici- were reclassified as terrorists as revealed in stirred with a double edged sword and recit- an excerpt of ‘Batchit’ [Military Order] Cir- pated political attack, we need information ing prayers from Sikh scripture. Guru Ji cular No. 153, which contain the official In- from Building and Construction Trades De- then administered the Amrit to the Panj dian military orders issued for July of 1984. partment affiliates about recent or ongoing Piaras. Afterwards, Guru Ji asked the Panj ‘‘Any knowledge of the Amritdharis [bap- project labor agreements, whether public or Piara to baptize him. Following Guru Ji’s tized Sikhs] who are dangerous people and private. Especially useful would be examples baptism, tens of thousands of Sikhs who pledge to commit murders, arson and acts of of experiences in the three states where exec- were gathered at Anandpur Sahib, also be- terrorism should immediately be brought to utive orders encourage such agreements on came baptized. the notice of the authorities. These people public construction projects. Through this act of baptism, Guru Gobind may appear harmless from the outside but Singh Ji created the modern Sikh nation— they are basically committed to terrorism. In particular, building trades: Lawyers the Khalsa Panth. By baptizing himself, In the interest of all of us, their identity and should provide examples of publicly-funded Guru Ji had taken the first step of transfer- whereabouts must always be disclosed.’’ project labor agreements whose lawfulness ring the Guruship to the Khalsa Panth. Nine With this military order, and the Draco- has been litigated; lobbyists should report ef- years later, in 1708, Guru Gobind Singh Ji nian laws that followed, the Sikhs have faced forts to have states and localities adopt would proclaim an end to the era of living, its darkest period in 300 years. According to project agreements on particular projects or human Gurus. He declared that the Sikh the Punjab State Magistracy, the group rep- general executive orders to promote them as holy book, the Adi Granth—containing the resenting all of the local court judges in the a matter of policy; and researchers should writings, hymns and poetry of the previous Punjab. Indian police murdered over 200,000 compile lists and data regarding the use of nine Gurus—would permanently receive the Sikhs from 1984 to 1992. According to Punjab/ project labor agreements. Guruship. Haryana High Court Justice Ajit Singh On this day, we celebrate the fact that Bains of the Punjab Human Rights Organiza- We appreciate any assistance you can pro- Guru Gobind Singh Ji vested the Khalsa tion (PHRO), over 50,000 Sikhs have been vide to our campaign to support these initia- Panth with our modern identity which has killed since then. tives and counter the opposition coalescing imbued us with a strong ethical and martial It is not surprising, therefore, that inter- against them. tradition and ensured our survival and the national human rights groups like Amnesty E664 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 International have not been allowed in Happy 298th Birthday Sikh Nation. Davis is spending her retirement making Khalistan for almost 20 years. f her neighborhood the kind of close knit com- EVEN AS THE SIKH GENOCIDE CONTINUES, SO munity she knew as a child. DOES THE FREEDOM STRUGGLE HONORING MARJORIE DAVIS FOR ‘‘You really need somebody to get the peo- A quarter million Sikhs murdered since OUTSTANDING AND CONTINUED ple together’’ says Lula Gardner, a retired 1984 has not deterred the Sikh nation from COMMUNITY SERVICE domestic, standing in the doorway of a home our commitment to establish an independent she rebuilt and decorated with a garden of and democratic Khalistan. Unlike what is re- Impatients and Chrysanthemums. ‘‘She ported by the Indian government and its HON. CARRIE P. MEEK keeps around here nice.’’ media outlets, the Sikh struggle to re-estab- OF FLORIDA Davis has worked with the city to make it lish our homeland as an independent state is IN THE HOUSE OF REPRESENTATIVES that way, adding shade trees, sidewalks, and not a violent one. We are committed to the Tuesday, April 15, 1997 a citizen patrol. Along the way, she’s battled Sikh tradition of peaceful, nonviolent civil slumlords, billboards, and politicians look- and political disobedience called Shantmai Mrs. MEEK of Florida. Mr. Speaker, it is my ing to build a homeless shelter. Morcha, or peaceful agitation. pleasure to recognize Marjorie Davis who has The fight keeps her young. The Sikh Nation of Punjab was the last contributed greatly to making our community ‘‘My husband used to say, ‘You put this South Asian country to fall to British impe- safer and a better place to live. Ms. Davis, community before anyone else,’ ’’ Davis says. rialism in 1849. The Sikhs ruled Punjab for ‘‘I think they appreciate it.’’ almost a century before the British con- originally from Overtown but now a resident of quest. A century later, Sikh national sov- Northwest Fort Lauderdale, has volunteered Marjorie Davis has demonstrated her com- ereignty was expressly recognized by both her time, effort, and hard work to eliminate mitment to strengthening and linking commu- the British and Indian leaders. Nehru as- drug dealers from the community, and has nities together. Her enthusiasm and service sured the Sikhs that they would enjoy the created programs that have helped unite the are special qualities that make her a remark- ‘‘glow of freedom’’ in the Sikh homeland. communities with one another. She is an out- able individual who is greatly appreciated by Mohandas Gandhi told the Sikhs that if the standing individual who has helped shape Congress should ever betray them ‘‘. . . the many. Mr. Speaker, on behalf of my entire Congress would not only thereby seal its own community pride, generated respect, and community, I commend Marjorie Davis for her doom, but that of the country too. Moreover, manifested hope that was once lost. outstanding service to our community and ex- the Sikhs are a brave people. They know how The Miami Herald recognized Marjorie Davis tend our best wishes for continued success. to safeguard their rights by the exercise of in a January 20, 1997, article entitled ``Building arms, if it ever comes to that.’’ Bridges Between Communities'' which com- f In the intervening 50 years of Indian gov- memorated her honorable civic service. I ernment rule, Sikhs have faced its darkest would like to submit this inspiring article for IN HONOR OF MR. BENJAMIN period in history. Even toddlers who have been baptized into Sikhism are not spared. the RECORD. EISENSTADT, FOUNDER OF CUM- Last December the Chandigarh court found MARJORIE DAVIS BERLAND PACKING CORP. that the police had murdered 3 year old The whistler has left the corner of Fifth Arvinder Singh, along with his father and his Street and 18th Avenue in Northwest Fort uncle, and labeled them as terrorists. Under Lauderdale. HON. CHARLES E. SCHUMER Indian law, police can kill Sikhs, identify A defiant intruder in a modest community OF NEW YORK them as terrorists and receive cash rewards of neighbors who know each other by name, IN THE HOUSE OF REPRESENTATIVES for the killing. In 1994, the U.S. State De- he would stand with his hat cocked to the partment estimated that 41,000 cash bounties side, pucker his lips, and blow to signal his Tuesday, April 15, 1997 were issued between 1991 and 1993. customers. Throughout this horrible period, we Sikhs Mothers, fathers, and teenagers with an Mr. SCHUMER. Mr. Speaker, I rise in honor have never surrendered our right to national appetite for crack cocaine who heard the of a great man, Mr. Benjamin Eisenstadt, sovereignty, and we have never surrendered shrill would file to the corner like children founder of the Cumberland Packing Corp. our rightful claim to a pluralistic democracy chasing the song of an ice cream truck. I wish to honor him today not because he in an independent Khalistan. The Indian gov- For a while, whistler thought the corner began what is now a successful company, but ernment genocide campaign, a campaign in was his. That is, until he met Marjorie instead because he was, and remains, the ex- which all baptized Sikhs are considered ter- Davis, president of Dorsey-Riverbend Home- ample of a model employer who earned the rorists, is just the latest form of oppression owners Association. set upon the Sikh nation; and is part of a The corner is hers. Has been for 40 years. admiration, respect, and loyalty of his employ- larger pattern of Indian government impe- She owns a three-bedroom home with a ga- ees. His legacy remains in these times when rialism over numerous nations and peoples zebo at 1713 NW Fifth St., and was not afraid corporate downsizing has become the norm, in South Asia. to let the whistler know it. and hardworking, loyal employees have be- U.S. RESPONDS TO INDIAN OPPRESSION OF THE ‘‘I’m paying property tax for all this cor- come disposable commodities. The company SIKHS ner right here,’’ she told whistler one day, he started is now described as a ``family busi- In response to the continued subjugation of looking him square in the eyes. ness that tries to treat its workers like family'' ‘‘Old lady, get back in the house,’’ he said the Sikhs in Khalistan, Congress has just in- by the New York Times. Mr. Eisenstadt's be- troduced legislation, House Concurrent Reso- smugly. lution 37 (H. Con. Res. 37), which recognizes In the ’80s, whistler and his friends stood lief was that the workers do matter and busi- and supports the Sikh nation’s right to na- on corners throughout Davis’ neighborhood ness decisions should take them, and their tional self-determination. The bipartisan in the heart of Fort Lauderdale’s historic families, into account. resolution, co-sponsored by Gary Condit (D– black community. Pimps with flashy cars It is often said that these qualities have long CA) and Dana Rohrabacher (R–CA), urges the and prostitutes in skimpy dresses strutted been lacking in corporate America. I submit to implementation of an internationally spon- down the community’s Main Street. you that they are not, but only that we have Their days were numbered. sored plebiscite so that Sikhs themselves overlooked them by focusing on wealth over could decide, by free and fair vote, whether Davis, then an elementary school teacher or not they want to remain with India. in her 50s, rallied the troops, a batallion of character. Mr. Eisenstadt showed us all that it If India is the democracy that it claims, proud neighbors who weren’t going to let was, and still is, possible to build a successful then it should allow the people of Khalistan their community be overrun by hoodlums. business without sacrificing your employees. to decide for themselves whether or not they The association—organized in the ’70s over His company still provides good jobs with liv- want to be a part of India, just as the U.S. lively conversation and plates of barbecue able wages to its workers. In exchange Cum- has done with respect to Puerto Rico and chicken and potato salad at a neighborhood berland has their support and undying loyalty. Canada has done with respect to Quebec. cookout—haunted city commission meetings Please join us in celebrating this auspi- until they got police to beef up patrols. His method was simple, people are your first cious holiday of the Sikh Nation, it is a time Soon after, the whistler was arrested. and most important resource: Treat them well. of feasting and festivity. But please also re- ‘‘I guess he thought I was just going to run I am certain that Marvin, his son, will continue member that there are millions of Sikhs in in the house and be afraid,’’ says Davis, a this honorable legacy. our homeland Khalistan who do not have widow who turns 70 next month. ‘‘God I wish for my colleagues to join me today in much to celebrate. And think about them doesn’t like ugly.’’ saluting this fine and good man, Mr. Benjamin the next time you read something about the A child of Bahamian immigrants, Davis ‘‘world’s largest democracy’’ and call your was taught to stand up for what she believes Eisenstadt. Thank you, Mr. Eisenstadt, for Member of Congress and ask them to co- in. She and her two siblings grew up in showing us that the way of the future is not sponsor H. Con. Res. 37—because everyone Overtown under the watchful eye of every less, but more. More compassion, more op- deserves the kind of freedom that we enjoy adult on her tidy block until the highway di- portunity, and more respect for working men in the U.S. vided her community. and women. April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E665 TRIBUTE TO LEXINGTON HIGH THE RON BROWN TORT EQUALITY FTCA, an individual has 2 years to present a SCHOOL ACT claim to the Federal agency involved, and if the agency denies the claim, then that person HON. ELEANOR HOLMES NORTON has the right to sue in Federal district court. HON. FLOYD SPENCE OF THE DISTRICT OF COLUMBIA Although this right exists for people who are IN THE HOUSE OF REPRESENTATIVES injured in the United States, the individual who OF SOUTH CAROLINA is injured overseas has absolutely no right of IN THE HOUSE OF REPRESENTATIVES Tuesday, April 15, 1997 recovery under the Federal Tort Claims Act for Ms. NORTON. Mr. Speaker, the bill I intro- the negligent conduct of the Federal Govern- Tuesday, April 15, 1997 duce today broadens the rights of Federal em- ment. My bill remedies this problem by provid- ployees and other Americans by amending the ing a cause of action. Mr. SPENCE. Mr. Speaker, I rise to bring to Federal Tort Claims Act. The need for this bill The accident in Croatia pointed up in the the attention of my colleagues an article that has been demonstrated in the aftermath of the most tragic way the need for this bill. The Air appeared in the March 20, 1997 edition of The tragic and needless accident which killed Sec- Force Accident Investigation Board revealed State, concerning Lexington High School, in retary Ron Brown and 34 other Americans raw negligence from takeoff to landing. The my hometown of Lexington, SC. As a grad- when their plane, piloted by the U.S. Air Board found that the command gave author- uate of Lexington High School, I am especially Force, crashed into a Croatian mountainside ization to fly certain procedures that had not proud of it receiving the Carolina First Palmet- on April 3, 1996. I introduce this bill this month been reviewed and properly approved, that the to's Finest award. in memory of the Americans who died in Cro- aircrew made errors in planning and executing [From The State, Mar. 20, 1997] atia to allow fair compensation to their rel- the flight, that the approach to the airport was improperly designed, and that inadequate LEXINGTON HIGH NAMED BEST IN STATE atives for their irretrievable losses and to deter similar accidents in the future. training was a substantially contributing factor. SCHOOL BECOMES FIRST SECONDARY News reports and constituent calls to my of- As a result of the investigation, 2 officers were INSTITUTION TO WIN PALMETTO’S FINEST fice have made clear the need for this bill. disciplined under article 15 of the Uniform Code of Military JusticeÐthe most serious (By Neil White) Some victims' families have faced financial hardship, in some instances, due to the mini- form of military punishment short of a court- A good year for Lexington High School got mal Government benefit payments. If a private martialÐ2 received letters of reprimand, and even better last week when it won the first- plane had been responsible for this accident, actions were taken against 12 others. ever Carolina First Palmetto’s Finest award We owe the families of those left behind the victims' families would have been entitled given to a high school. after last year's accident in Croatia more than to recover no less than $75,000, and if willful our continuing sympathy. We owe them just Strong programs in academics, athletics, misconduct were shown, the amount recover- arts and technology—highlighted by a pair of compensation and assurance that Federal tort students who garnered perfect scores of 1,600 able would have been unlimited. The bill I in- law will deter such tragedies in the future. I on the SAT and a basketball team that com- troduce today increases the damages avail- urge my colleagues to support this legislation. peted for its second-consecutive Class AAAA able to the victims of tragedies caused by the f state championship—have kept the school in Federal Government and covers accidents oc- the forefront. Now this award adds to that. curring on or after April 3, 1996. PRIVACY IN SOCIAL SECURITY ‘‘It’s an exciting time for students, teach- My bill will not unfairly open the United ers and parents,’’ Principal Allan Whitacre States to lawsuits by increasing its exposure HON. BARBARA B. KENNELLY said. ‘‘Being the first high school, we feel in large numbers of accidents. The bill is lim- OF CONNECTICUT very proud about that, too.’’ ited to accidents in which the burden would be IN THE HOUSE OF REPRESENTATIVES The Palmetto’s Finest awards, coordinated on the plaintiff to prove gross negligence, Tuesday, April 15, 1997 by the S.C. Association of School Adminis- which the record shows to be a small number. trators, are in their 19th year, but this year, The official Air Force investigation found Mrs. KENNELLY. Mr. Speaker. On March 5, the program was expanded to include a sec- three independent causes, any one of which, 1997, the Social Security Administration [SSA] ondary school. Irmo Elementary School was had it not existed, would have prevented the initiated online access to individual Social Se- named in the elementary school category. accident. Surely, in the unusual circumstances curity earnings data and projected benefits via In addition to academic achievement and of gross and preventable negligence, the the Internet. Because this access raised a student leadership, a point system is used to country has an obligation to do more than number of serious privacy and security con- rate school personnel, programs and curricu- mourn the victims and offer minimal damages. cerns, I recommended that The Social Secu- lum, community involvement, physical My bill addresses two problems. The first af- rity Subcommittee hold hearings on this issue maintenance of facilities, safety and commu- and asked the General Accounting Office to nications. Nominations are received in the fects only Federal employees. Under current law, the sole source of recovery for an injured review SSA's actions. Subsequently, SSA sus- fall. The winners are chosen by a committee pended its Internet access to these records, Federal employee is the Federal Employees based upon the results of a comprehensive pending nationwide hearings to obtain public application process and two school visits. Compensation Act [FECA]. The act provides comment on the desirability of electronic ac- compensation benefits to U.S. employees for ‘‘Receiving the Carolina First Palmetto’s cess to individual data. Finest award presents hard work, persever- disabilities due to personal injury incurred I am today introducing legislation to require ance, cooperation and a commitment to ex- while working. Although the FECA applies to the Social Security Administration to consult cellence by our entire school community. injuries that occur here in this country and experts at the cutting edge of computer tech- Our school board and district office have sup- those that occur overseas, a Federal em- ported that commitment,’’ said Whitacre. nology regarding the security and privacy of ployee cannot sue for gross negligence. And online Social Security files. I believe such con- ‘‘Everything we do, from the curriculum to if that Federal employee dies and has no de- the extra-curricular activities, is focused on sultation is necessary to assure the public that giving students the best possible preparation pendents, the recoverable damages under the Social Security Administration has used we can provide to help them become produc- FECA are practically nonexistent. My bill rem- the most advanced technology available to tive, well-rounded citizens.’’ edies this by allowing Federal employees to protect individual Social Security earnings in- Since 1985 the school has received Depart- sue the United States for gross negligence, formation. ment of Education incentive award money, notwithstanding any compensation they would The legislation would require the Commis- which rewards the state’s highest-ranked receive under the Federal Employees Com- sioner to assemble a panel of experts to ad- schools. pensation Act. vise him on issues such as the confidentiality, Following graduation, 79 percent of the My bill addresses a second problem as well. security, and authenticity of online trans- students plan to attend college. Graduates in This problem is that nonfederal employees mission of records. In addition, the Commis- the class of 1996 received scholarship offers who are injured overseas have no right of re- sioner would receive advice on appropriate valued at more than $4 million. covery against the Federal Government. Cur- techniques for authenticating the identify of the ‘‘There’s a lot of pride for the student body rently, under the Federal Tort Claims Act person requesting the information and proce- in the whole thing,’’ Whitacre said. [FTCA], an individual may bring a tort suit dures for detecting unauthorized access to in- Lexington’s High serves approximately against the Federal Government for injuries dividual records. Such action should help to 1,850 students in grades 10–12, and steady caused by the negligent or wrongful act or assure the public that, if these records are of- growth in the district keeps new students omission of any Federal employee acting with- fered via the Internet, they have been pro- coming through the doors. in the scope of his employment. Under the tected by the most advanced means available. E666 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 The Social Security Subcommittee intends appeared in the March 9, 1997, edition of the And it has scored well. The 1996 average to move forward with a May hearing. In addi- State, highlighting the national honors that Carolina Scholars SAT score was 1488. tion, SSA will be holding its field hearings in have been achieved recently by the University But competition for South Carolina’s best—in academics and athletics—is keen. the next 60 days. With the addition of expert of South Carolina. The University is attaining Some South Carolina high schools don’t consultations, as proposed in this legislation, prominence in a variety of areas of national even include USC when recommending uni- the public should have some degree of con- and international importance. I would like to versities for their top students. fidence that an appropriate balance has been commend the faculty and students of the Uni- With a continued focus on an investment struck between efficient access to personal versity of South Carolina on their commitment in academic as well as athletic excellence, Social Security records and the privacy and to excellence. USC’s recognition will grow. And so will its security of that data. The article follows: ability to recruit talent. Most important, the impact will be felt f [From the State, Mar. 9, 1997] across South Carolina. TRIBUTE TO JOSEPH A. LeFANTE, USC RANKINGS SHOWCASE S.C. f FORMER MEMBER OF CONGRESS (By Fred Monk) The University of South Carolina basket- HONORING THE TRICKLE UP ball team is drawing national attention to PROGRAM HON. ROBERT MENENDEZ the university and Columbia. OF NEW JERSEY The impact of its performance isn’t lost on IN THE HOUSE OF REPRESENTATIVES USC professors, who are citing with pride the HON. CHARLES E. SCHUMER Tuesday, April 15, 1997 basketball team’s achievement in discus- OF NEW YORK sions on academic excellence. IN THE HOUSE OF REPRESENTATIVES Mr. MENENDEZ. Mr. Speaker, I rise today While USC’s No. 4 basketball ranking has Tuesday, April 15, 1997 to pay tribute to a dedicated public servant, fans in a frenzy, other rankings are note- Joseph A. LaFante of Bayonne. Congressman worthy. Mr. SCHUMER. Mr. Speaker, I ask my con- LeFante's death at age 68 was a loss for the The blend of academic and athletic per- gressional colleagues to join me in honoring State of the New Jersey and its residents. formance is lifting USC’s stature inter- the Trickle Up Program for the outstanding job Joseph A. LaFante grew up in his beloved nationally. they have done to increase the possibility and Bayonne. When he turned 16, he started to Recently, USC received two important rec- opportunity for self-sufficiency amid the world's ognitions. work full-time at a manufacturing plant. As a Its graduate international business pro- poorest populations. I hereby submit for inclu- young man, he became involved with unions grams were rated No. 2 in the nation by a sion into the CONGRESSIONAL RECORD the and attended a 3-year study program at St. U.S. News & World Report poll. 1996 annual report. Peter's Institute of Industrial Relations. He Since the poll’s inception, USC has ranked The Trickle Up Program offers low-income graduated from the New Jersey Real Estate No. 1 or No. 2. people opportunity for income and self em- institute in 1957. This is no small feat, even though USC was ployment through entrepreneurship. In the Congressman LeFante had an exemplary knocked off the top spot by the inclusion past 18 years, more than 58,000 micro-enter- devotion to the Bayonne community. In his last year of the American Graduate School prises have been started or expanded in 114 first experience with politics, he served as Ba- of International Management, also known as countries with support from Trickle Up. In the Thunderbird school, whose sole focus is yonne Charter Commissioner. Then he went 1996, 6,738 businesses were launched or ex- international business. panded in 51 countries, benefiting 24,899 en- on to the city council and the local board of USC is the only public institution in the trepreneurs and over 100,000 dependents. school estimate. He was elected to the New top five. It leads Columbia University, the Eighty-two percent of the enterprises begun Jersey State Assembly in 1969 and served 7 University of Pennsylvania and Harvard. in 1996 are family owned, and 80% are the en- years, culminating in his being elected speak- In February, USC received another Top trepreneurs’ main source of income. Fifty- er of the assembly. In 1976, he was elected Five national honor—one equal in university nine percent of the entrepreneurs are to become a Member of the 95th Congress. circles to the basketball team’s national women. ranking, said Don Greiner, USC’s interim After his service in the House of Representa- REGIONAL HIGHLIGHTS provost. tives, he returned to politics in New Jersey as For the second consecutive year, USC was Africa: 2,314 micro-enterprises in 26 coun- Gov. Brendan Byrne's commissioner of com- awarded the Hesburgh Certificate of Excel- tries. In partnership with 126 local partners, munity affairs. Although he had an unsuccess- lence, this time for its faculty/student devel- Trickle Up helped start or expand businesses ful run in the Democratic primary for U.S. Sen- opment program. among the very poor, including refugees in ate in 1982, he continued to serve the citizens Father Hesburgh’s name is synonymous Sierra Leone, displaced people in Liberia, of New Jersey in the administrations of Gov- with Notre Dame, a university known for its people living with HIV/AIDS in Uganda, and athletic and academic excellence. families of streetchildren in Ethiopia. An ex- ernor Kean and Governor Florio. Throughout citing new partnership with the United Na- this time, he operated Public Service Fur- Other recent national honors USC has re- ceived included: tions Volunteers was launched in Mozam- niture, a furniture store in Bayonne. In the past No. 1 ranking in the Southeast and Top bique. The Peace Corps was an active partner few years, he worked on his furniture busi- Five nationally by professional journals of in Africa, helping to start micro-enterprises nesses before his retirement. the geography department’s programs. in Mali, Benin, Kenya, Zimbabwe, Senegal, Joe LeFante never forgot where he came A Top Five national ranking for the phar- Sao Tome, and Togo. Many low-income en- from, was a man of good ethics, kept his word macy department. trepreneurs were reached by community- and was a man of principle. He had a passion The college of journalism’s public relations based organizations in Zaire, Tanzania, and for using government to help others, and he and advertising programs are ranked 12th Madagascar. and 13th in the nation by U.S. News. Asia: 2,970 mirco-enterprises in 12 coun- used that passion to improve the lives of the tries. Trickle Up continued to work in the people he represented. U.S. News also ranks USC’s psychology doctoral program as third best in the nation. poorest countries as well as those recovering Mr. Speaker, it is honor to have had such a USC’s Naval ROTC program received the from war or confronted with political dis- distinguished public servant living in my dis- nation’s highest academic ranking by the sent. In India the program was focused on trict. He always kept the best interests of the naval Education and Training Command. isolated rural communities in Bihar and residents of Bayonne, his district, the State of The college of business was cited by Suc- urban slum dwellers in Calcutta. Families in New Jersey, and the Nation in mind when cess magazine as one of the 25 best in the na- the far western region of Nepal were helped serving in his numerous offices. And he tion for producing entrepreneurs. by UN Volunteers. In Bangladesh Trickle Up served those he represented with distinction. These are a few of many significant worked with women’s organizations and trib- al groups, and in China pursued initiatives f achievements USC has been cited for re- cently. linking environmental conservation with TRIBUTE TO THE UNIVERSITY OF But there’s another important aspect to sustainable development. A new partnership SOUTH CAROLINA recognition. was forged in Afghanistan with the World Coach Eddie Fogler crafted a basketball Food Programme, a UN agency. team around South Carolina Talent—nine of Americas: 1,442 businesses in 9 countries. HON. FLOYD SPENCE the 11 players are from South Carolina. Micro-enterprises were started by single OF SOUTH CAROLINA In academics as well as athletics, USC is mothers and disabled people in Guatemala, IN THE HOUSE OF REPRESENTATIVES trying to keep the best and the brightest at mothers of malnourished children in Haiti, Tuesday, April 15, 1997 home, Greiner said. teenagers in Peruvian shantytowns, and Bo- Through its Carolina Scholars and Honors livian families in the Andes. Trickle Up Mr. SPENCE. Mr. Speaker, I rise to bring to College program, USC is going after the best often serves as the first step to business de- the attention of my colleagues an article that students in the state. velopment among the poorest: 25% of one- April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E667 year-old businesses started through one Nic- ing funding for the National Endowment for the by the NEA as ‘‘art.’’ Indeed it may be appro- araguan partner agency accessed loans for Arts. Mr. Trueman makes a compelling case priate, on motion from the defense, for a business expansion. Several evaluations of for eliminating the NEA, claiming the agency judge to allow a jury to view a specific NEA- the sustainability and impact of Trickle Up’s funded work that is similar to the work poses serious problems in the prosecution of work showed the following results: in El Sal- charged as obscene in the case to aid the vador, 58% of the businesses are continuing child pornography cases. jury in the application of the Miller test. after five years; in Guatemala, 90% of 2- to 4- AMERICAN FAMILY ASSOCIATION Surely you can understand the dilemma this year-old businesses are continuing; and in Pursuant to clause 2(g)(4) of the rule XI of would pose to a jury which must make a Ecuador, 90% of the businesses begun by par- the Rules of the House of Representatives, unanimous finding on the obscenity or non ents of working children were continuing I certify that neither the American Family obscenity of the material. Just one juror after 18 months and helped reduce the hours Association nor I have received any federal trusting the federal governments’ opinion on worked by their children by 20%. grant or contract during the current fiscal the nature of such material would cause the U.S. Update: Trickle Up helped start or ex- year or either of the two previous fiscal acquittal of a hardcore pornographer. pand 108 businesses through 17 Coordinating years. The problems the NEA could pose in the Agencies in 8 states. Expansion is planned MR. CHAIRMAN AND MEMBERS OF THE COM- prosecution in a child pornography case are along the eastern seaboard with a new grant MITTEE: I want to thank you for the oppor- somewhat different. The Miller test does not size. tunity to appear before you today on behalf apply and thus a jury is not asked to decide Europe: 22 micro enterprises. The Program of American Family Association. As you are whether the material is lacking in artist remained active in Armenia and expanded to aware, for the past eight years AFA has been value. However, the imprimatur of the NEA Georgia and Romania. The Peace Corps con- the leading organization opposing federal on such material or similar material may tinues to be Trickle Up’s main partner in the funding for the National Endowment for the play a deciding factor in prosecutorial dis- region. Arts. In 1989, AFA president Rev. Donald cretion, i.e. whether a case should be pros- In 1996, Trickle Up continued to fulfill its Wildmon called to national attention the ecuted or not. mission of reducing poverty by enabling the funding by the NEA of Andres Serrano’s Should a case be charged against a particu- very poor to start or expand small busi- work ‘‘Piss Christ’’ which consisted of a cru- lar NEA grantee for a work considered by a nesses. Trickle Up accomplishes this with cifix submersed in the artists’ urine. The prosecutor to be child pornography (not an the generous support of foundations, cor- fact that such a blasphemous work was fed- unlikely scenario given the history of the porations, organizations and individuals— erally funded outraged a great segment of agency) the dilemma is more direct however. many of them entrepreneurs. Trickle Up con- American society and precipitated a battle It would be difficult if not impossible to keep tinues to rely on those who find in the Trick- to end federal funding of the agency. That from a jury a defense argument that the ma- le Up process a way to make a difference and battle will not end until funding for the NEA terial charged is not child pornography at all reduce poverty—one business at a time. ends, rest assured of that fact. but rather ‘‘art’’ because the NEA has pro- Trickle Up brings the poor more than seed The federal government should not be in vided funding for its production or distribu- capital; it brings dignity, a job, self-con- the business of dictating what art is. That is tion. fidence and real hope for a better future. not a proper function for the government The threat that the NEA poses in the pros- Trickle Up has helped people start or expand and, in the case of the NEA, such a function ecution on obscenity and child pornography nearly 60,000 businesses. Our goal is to start poses a potential conflict with the federal cases is not merely hypothetical. The dif- 100,000 by the millennium. criminal law. Year after year NEA grants ficulties I have outlined in this regard were Income Sources Percent make possible the production and distribu- faced by the U.S. Department of Justice dur- Foundations ...... 41 tion of a variety of sexually explicit mate- ing my years in the criminal division with Individuals ...... 33 rial. During the last part of the Reagan Ad- respect to the funding by the NEA of an ex- Corporations ...... 6 ministration and during the entire Bush Ad- hibit by the late Robert Mapplethorpe. Organizations ...... 6 ministration I served in the United States The American Family Association is con- Governments ...... 14 Department of Justice, Criminal Division, vinced after years of monitoring the NEA Washington D.C. as Chief of the Child Exploi- that the agency will never change. While it The Program: The Trickle Up Program tation and Obscenity Section. That office is provides business training material and is only a small portion of its annual budget charged with the prosecution of obscenity the NEA continues to fund pornographic micro-venture capital of $100 to a family or and child pornography crimes. Part of my group of 3 people to start a business. This works as ‘‘art.’’ Some of the more recent and job, as supervisor of the office was to review troubling works funded by the agency in- start-up capital is conditioned upon invest- and make prosecutorial decisions on both ment of 250 hours or work per participant in clude grants to a group called FC2 and an- adult and child pornography. Much of what other called Women Make Movies, Inc. FC2 three months, savings or reinvestment of we prosecuted in those two presidential ad- 20% of the profit in the enterprise, and com- was provided $25,000 in the past year to sup- ministrations involved material of the same port the publication of at least four books pletion of a Trickle Up Business Plan and nature as that funded through the years by Business Report. The capital is given in two according to U.S. Representative Peter the NEA. Mr. Chairman, how can you expect Hoekstra who has been tracking the NEA: $50 installments. common citizens to respect the rule of law, The Partners: The program is delivered S&M, by Jeffrey DeShell, Blood of Mug- particularly the federal criminal law on wump: A Tiresian Tale of Incest, by Doug through a network of ‘‘Coordinating Agen- child pornography and obscenity when Con- cies’’, locally based organizations around the Rice, Chick-Lit 2: No Chick Vics, edited by gress continues to fund the NEA knowing the Cris Maza, Jeffrey Deshell and Elisabeth world who volunteer their services to Trickle agency has a pattern of conduct over the Up. This partnership enables grass-roots Sheffield and Mexico Trilogy, by D.N. years and to the present day of funding ma- Stuefloten. These books include descriptions agencies to incorporate a micro-enterprise terial which may offend the criminal law. To component in their development work. of body mutilation, sadomasochistic sexual continue to do so would be the height of hy- act, child sexual acts, sex between a nun and f pocrisy. several priests, sodomy, incest, hetero and I submit that the NEA poses a direct TESTIMONY OF PATRICK A. homosexual sex and numerous other graphi- threat to the prosecution, on both the fed- cally described sexual activities. TRUEMAN eral and state levels, of obscenity and child Women Making Movies, Inc. received pornography crimes. In obscenity cases a $112,700 in taxpayer money over the past jury is required to make a determination HON. JOHN T. DOOLITTLE that the material is ‘‘obscene’’ based on the three years for the production and distribu- tion of several pornographic videos. Here are OF CALIFORNIA three-part test established in the U.S. Su- descriptions of but two taken from the IN THE HOUSE OF REPRESENTATIVES preme Court case of Miller v. California, 413 U.S. 15 (1973): whether the material (1.) de- groups catalog: ‘‘Ten Cents a Dance’’ a depic- Tuesday, April 15, 1997 picts specific sex acts in a patently offensive tion of anonymous bathroom sex between two men; and another called ‘‘Sex Fish’’ Mr. DOOLITTLE. Mr. Speaker, I commend way; (2.) appeals to the prurient interest in sex as a whole; and (3.) lacks serious lit- which is ‘‘a furious montage of oral sex.’’ to the attention of my colleagues the testimony eracy, artistic, political or scientific value. Oral sex is not art and the NEA and Con- of Patrick Trueman, president of the American (emphasis added) It would be a relevant de- gress should not pretend that it is. Please Family Association, who appeared before the fense argument that material similar to that stop offending the taxpayers of America. Interior Appropriations Subcommittee concern- charged in a particular prosecution if funded Funding for the NEA should be eliminated. E668 CONGRESSIONAL RECORD — Extensions of Remarks April 15, 1997 TELECOMMUNICATIONS TRADE gally and that the law should be appropriately action and culminated in the general emanci- AND FOREIGN INVESTMENT ACT modified to treat broadcasting as separate and pation of slaves in the United States. If I may, OF 1997 distinct from common carrier issues. this day has importance for my family as well, Mr. Speaker, the legislation I am introducing because Richard Holmes, my great-grand- HON. EDWARD J. MARKEY today will cap foreign investment in broadcast father, was in the District that day. Our family does not claim him as a run-away slave hero, OF MASSACHUSETTS licenses at 25 percent. This proposed legisla- tion will not allow any future FCC to unilater- because Richard Holmes simply walked off a IN THE HOUSE OF REPRESENTATIVES ally limit, by rule, the scope and applicability of Virginia plantation one day and laid down Tuesday, April 15, 1997 possibly determinative public interest criteria roots in the District. I can only imagine what Mr. MARKEY. Mr. Speaker, I rise to intro- and thereby grant waivers for 100 percent for- this day must have meant to him. duce the Telecommunications Trade and For- eign ownership of U.S. television and radio The abolitionist movement in the District eign Investment Act of 1997. I am pleased to stations. was especially strong. Abolitionists regarded introduce this legislation today along with The legislation I am introducing today will slavery in the capital of the United States a Commerce Committee ranking Democrat JOHN also serve to update and amplify the statutory national shame. Regrettably that expression DINGELL, and committee members RON KLINK language with respect to common carrier for- was to continue to apply to other forms of de- and TOM SAWYER. eign investment by making it clear that where nial of basic rights unbecoming to the capital The international trade agreement reached America has a trade commitment, the FCC is of the free world. The District was a bastion of in Geneva last February on telecommuni- directed to show deference to the President lawful racial discrimination and did not inte- cations basic services has provided an excel- on such matters for applicants from countries grate its schools until the Supreme Court lent opportunity for the telecommunications in- that are part of the trade deal. This provision struck down illegal segregation in 1954. In dustry and policymakers to assess the is a WTO-friendly provision and is intended to 1997, the District remains the only jurisdiction progress this country has made in breaking dovetail with the process that the FCC, as an where Americans pay taxes without full rep- open new telecommunications markets world- independent agency, has indicated it will use resentation in Congress and the only jurisdic- wide. Without question, there are significant to implement this multilateral trade pact. tion, including the four territories, whose laws new opportunities in the recent telecommuni- In the last session of Congress, Mr. Speak- can be overturned at the whim of Congress. cations deal for American companies. When er, the House was successful in legislating in Still, we are pleased today to note that U.S. companies make new inroads into foreign this area of communications law. I look for- when President Lincoln ended slavery here, markets, that's good for American workers and ward to working with Commerce Committee nine months before the Emancipation Procla- the strength of our economy. Yet, we also Chairman TOM BLILEY, committee ranking mation, the District led the country out of the know that in the agreement there are notable Democrat JOHN DINGELL, Telecommunications most serious form of oppression any nation underachievers, most notably Canada, Mex- Subcommittee Chairman TAUZIN, my good can impose. Our country would have been ico, and JapanÐthree of our largest trading friend Congressman MIKE OXLEY, who has even better off had it followed the pattern laid partners long advocated updating our telecommuni- out in the District of Columbia Emancipation As a Democrat who has voted in favor of cations foreign investment laws, as well as my Act because emancipation in the District did both NAFTA and GATT, I subscribe to the colleaguesÐon both sides of the aisleÐon the not involve war; slave owners were com- view that America's future economic health is Commerce Committee and in the House, in pensated and former slaves were allowed to inseparable from the global economy. I believe fashioning common sense legislation that will emigrate and were themselves compensated, that this Nation ought to compete for high end, modernize and clarify the foreign investment although at a lesser amount. information-based jobs across the planet. provisions of the Communications Act. We continue to celebrate April 16th as Dis- These are telecommunications, computer, f trict of Columbia Emancipation Day in the city, software, and electronic commerce jobs. For but surely not out of nostalgia or false com- this reason it is imperative that foreign high- THE 135TH ANNIVERSARY OF THE parison of ourselves to those who lived under tech markets be opened up for competition DISTRICT OF COLUMBIA EMANCI- slavery in the last century. I am very pleased from the United States. The Communications PATION ACT about the participation of District of Columbia Act of 1934 clearly did not contemplate a Reading is Fundamental. The involvement of world where there would be trade agreements HON. ELEANOR HOLMES NORTON DC Reading is Fundamental focuses us on to- allowing foreign ownership of common carriers OF THE DISTRICT OF COLUMBIA day's problems and priorities, a worthy way to throughout the world. IN THE HOUSE OF REPRESENTATIVES respect the memory of those who had no way The administration expects the Federal to overcome such problems. The value of not- Communications Commission [FCC] to con- Tuesday, April 15, 1997 ing District of Columbia Emancipation Day is summate this deal administratively by modify- Ms. NORTON. Mr. Speaker, I am very not history for its own sake, despite that wor- ing its regulations to encompass the new mul- grateful to my distinguished colleague, Rep- thy objective, but history to inspire our re-ener- tilateral trade pact. I am particularly con- resentative DON MANZULLO, for his generous gized efforts to eliminate today's problems. cerned, however, about the administration's and thoughtful attention to the District and to Slavery is not one of them. Children who can- current interpretation of the FCC's authority Emancipation Day and for his consistent as- not read is a problem. Good schools where because it implicates foreign ownership of sistance to District residents in this annual ob- children function at grade level and improving U.S. television and radio stations. Section servance. We also very much appreciate the high school graduation rates are where we 310(b) of the Communications Act treats for- work of DC Reading is Fundamental in this must focus in 1997. Reducing crime, building eign ownership issues for both broadcasting educational event. Our thanks go as well to strong family units, helping welfare recipients and common carrier licenses the same way. Mr. Arnold Goldstein, superintendent of the find work, reforming the District government, Congress certainly did not envision that the National Park Service, and to other Park Serv- rebuilding our cityÐthese are the issues of Communications Act could be read in a way ice officials and employees for their coopera- today. that would wind up allowing 100 percent for- tion in helping us celebrate this commemora- The 3,100 District of Columbia residents eign ownership of U.S. television and radio tive event, just as the Park Service has been who were emancipated by Abraham Lincoln stations. The administration's current reading consistently helpful to the District in so many on April 16, 1862, probably could not read and of the statute would allow such an outcome. I other ways. probably would have given everything to ac- appreciate the fact that the administration has It is 135 years after the emancipation of quire that skill. In their memory, we com- stated that it has no intention of unraveling the slaves in the District, yet we continue to cele- memorate their emancipation day and pledge prohibitions on foreign ownership of broadcast brate the emancipation of 3,100 District to do all we can to emancipate ourselves from licenses. I believe it would serve a useful pur- slaves. Emancipation in the District was of fur- the problems of today and to accept the chal- pose to ensure that this cannot be done le- ther importance because it was the first such lenges of tomorrow. April 15, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E669 TRIBUTE TO DON NEWCOMBE from 1948 to 1958. A contemporary of the leg- adults on the dangers of alcohol and drug endary Jackie Robinson, Mr. Newcombe abuse. This year, Mr. Newcombe is being HON. JULIAN C. DIXON pitched in three World Series and four All-Star honored for his work as the recipient of an OF CALIFORNIA Games. He is the only man in the history of honorary doctorate in the humanities by Daniel baseball to win Rookie of the Year, Most Valu- Webster College in Nashua, NH. IN THE HOUSE OF REPRESENTATIVES able Player, and the Cy Young Award. Mr. Speaker, I am proud to recognize Don Tuesday, April 15, 1997 Mr. Speaker, Mr. Newcombe has not been Newcombe. He is a man who has made a dif- Mr. DIXON. Mr. Speaker, I rise today on the content to rest upon his accomplishments on ference in sport, in the humanities, and like 50th anniversary of the fall of the color barrier the field of sport. He has continued his ex- many other black athletes, in the very struc- in major league baseball to honor and ac- traordinary career, and is now director of com- ture of our society. I ask my colleagues to join knowledge the valuable contributions made by munity relations for my home team, the Los me in recognizing his full and productive ca- Mr. Don Newcombe, a constituent, and pitcher Angeles Dodgers. He has traveled worldwide reer, and in wishing him continued success in for the Brooklyn and Los Angeles Dodgers in this capacity to deliver lectures to youth and his future endeavors. Tuesday, April 15, 1997 Daily Digest

HIGHLIGHTS Senate passed Nuclear Waste Policy Act. Senate to impose civil and criminal penalties for the unau- Chamber Action thorized access of tax returns and tax return informa- Routine Proceedings, pages S3135–S3232 tion by Federal employees and other persons, after Measures Introduced: Fifteen bills and three reso- taking action on the following amendment proposed lutions were introduced, as follows: S. 572–586 and thereto: Pages S3180±90 S. Res. 72–74. Page S3199 Adopted: Lott (for Coverdell) Amendment No. 45, in the Measures Passed: nature of a substitute. Pages S3180±89 Nuclear Waste Policy Act: By 65 yeas to 34 nays Messages From the President: Senate received the (Vote No. 42), Senate passed S. 104, to amend the following messages from the President of the United Nuclear Waste Policy Act of 1982, after taking ac- States: tion on further amendments proposed thereto, as fol- Transmitting the report of a proclamation to lows: Pages S3135±53 modify application of duty-free treatment; referred to Adopted: the Committee on Finance. (PM–29). Page S3197 Murkowski Amendment No. 26, in the nature of a substitute. Pages S3135±37 Nominations Received: Senate received the follow- Lott (for Domenici) Amendment No. 42, (to ing nominations: Amendment No. 26), to provide that no points of Linda Jane Zack Tarr-Whelan, of Virginia, for the order, which require 60 votes in order to adopt a rank of Ambassador during her tenure of service as motion to waive such point of order, shall be consid- United States Representative to the Commission on ered to be waived during the consideration of a joint the Status of Women of the Economic and Social resolution under section 401 of this Act. Council of the United Nations. Pages S3135±37 Yerker Andersson, of Maryland, to be a Member By 66 yeas to 32 nays (Vote No. 41), Lott (for of the National Council on Disability for a term ex- Murkowski) Amendment No. 43 (to Amendment piring September 17, 1999. Page S3232 No. 42), to establish the level of annual fee for each Messages From the President: Page S3197 civilian nuclear power reactor. Pages S3135±37 Rejected: Communications: Page S3198 Bingaman Amendment No. 31 (to Amendment Executive Reports of Committees: Pages S3198±99 No. 26), to provide for the case in which the Yucca Statements on Introduced Bills: Pages S3199±S3224 Mountain site proves to be unsuitable or cannot be licensed and to strike the automatic default to a site Additional Cosponsors: Pages S3224±25 in Nevada. (By 59 yeas to 39 nays (Vote No. 40), Amendments Submitted: Page S3226 Senate tabled the amendment.) Pages S3135±36 Notices of Hearings: Pages S3226±27 Taxpayer Browsing Protection Act: By a unani- mous vote of 97 yeas (Vote No. 43), Senate passed Authority for Committees: Page S3227 S. 522, to amend the Internal Revenue Code of 1986 Additional Statements: Pages S3227±31 D333 D334 CONGRESSIONAL RECORD — DAILY DIGEST April 15, 1997 Record Votes: Four record votes were taken today. Subcommittee will meet again on Tuesday, April (Total—43) Pages S3136±37, S3140, S3189 22. Adjournment: Senate convened at 9 a.m., and ad- APPROPRIATIONS—ARMY CORPS/BUREAU journed at 6 p.m., until 10 a.m., on Wednesday, OF RECLAMATION April 16, 1997. (For Senate’s program, see the re- Committee on Appropriations: Subcommittee on Energy marks of the Assistant Majority Leader in today’s and Water Development held hearings on proposed Record on page S3232.) budget estimates for fiscal year 1998 for the Army Corps of Engineers and the Bureau of Reclamation, Committee Meetings focusing on the Bonneville Power Administration, receiving testimony from Randy Hardy, Adminis- (Committees not listed did not meet) trator, Bonneville Power Administration; Brig. Gen. Robert H. Griffin, North Pacific Division Com- NOMINATIONS mander of the Army Corps of Engineers; and John Committee on Agriculture, Nutrition, and Forestry: Com- Keys, Pacific Northwest Regional Director, Bureau mittee ordered favorably reported the nominations of of Reclamation, Department of the Interior. Lowell Lee Junkins, of Iowa, to be a Member of the Subcommittee will meet again on Tuesday, April Board of Directors of the Federal Agricultural Mort- 22. gage Corporation, Farm Credit Administration, and AUTHORIZATION—DEFENSE Ann Jorgenson, of Iowa, to be a Member of the Committee on Armed Services: Subcommittee on Acqui- Farm Credit Administration Board. sition and Technology resumed hearings on S. 450, IRS USE OF TAXPAYERS’ FILES authorizing funds for fiscal years 1998 and 1999 for military activities of the Department of Defense, and Committee on Appropriations: Subcommittee on Treas- to prescribe military personnel strengths for fiscal ury, Postal Service, and General Government held years 1998 and 1999, focusing on the trends in the hearings to examine alleged Internal Revenue Service industrial and technology base supporting national employees misuse of taxpayers’ files, receiving testi- defense, receiving testimony from Representative mony from Senator Glenn; Lawrence H. Summers, Christopher Smith; Robert Pitofsky, Chairman, Fed- Deputy Secretary, Valerie Lau, Inspector General, eral Trade Commission; John B. Goodman, Deputy and Margaret Milner Richardson, Commissioner, In- Under Secretary (Industrial Affairs and Installations), ternal Revenue Service, all of the Department of the and Eleanor R. Spector, Director of Defense Procure- Treasury; and Rona B. Stillman, Chief Scientist for ment, Office of the Under Secretary (Acquisition and Computers and Telecommunications, General Ac- Technology), both of the Department of Defense; counting Office. David E. Cooper, Associate Director for Defense Ac- Subcommittee will meet again on Thursday, April quisition Issues, National Security-Foreign Affairs 17. Division, General Accounting Office; Pierre Chao, APPROPRIATIONS—AGRICULTURE Morgan Stanley Equity Research, New York, New York; and Danielle Brian, Project on Government Committee on Appropriations: Subcommittee on Agri- Oversight, and Don Fuqua, Aerospace Industries As- culture, Rural Development, and Related Agencies sociation, both of Washington, D.C. held hearings on proposed budget estimates for fiscal Subcommittee recessed subject to call. year 1998 for the Department of Agriculture, receiv- ing testimony in behalf of funds for their respective AUTHORIZATION—DEFENSE activities from Jill Long Thompson, Under Secretary Committee on Armed Services: Subcommittee on Readi- for Rural Development, Wally Beyer, Administrator, ness resumed hearings on S. 450, authorizing funds Rural Utilities Service, Jan E. Shadburn, Acting Ad- for fiscal years 1998 and 1999 for military activities ministrator, Rural Housing Service, Dayton J. Wat- of the Department of Defense, and to prescribe mili- kins, Administrator, Rural Business Cooperative tary personnel strengths for fiscal years 1998 and Service, W. Bruce Crain, Executive Director, Alter- 1999, and S. 451, to authorize construction at cer- native Agricultural Research and Commercialization tain military installations for fiscal year 1998, and Corporation, and Dennis Kaplan, Budget Officer, all for other military construction authorizations and ac- of the Department of Agriculture. tivities of the Department of Defense, focusing on April 15, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D335 environmental and military construction issues, re- Deputy Assistant Secretary of Defense for Asian and ceiving testimony from Sherri W. Goodman, Deputy Pacific Affairs; Nathaniel B. Thayer, Johns Hopkins Under Secretary for Environmental Security, and University, Michael H. Armacost, Brookings Institu- John S. Goodman, Deputy Under Secretary for In- tion, and Arthur J. Alexander, Japan Economic Insti- dustrial Affairs and Installations, both of the Depart- tute of America, all of Washington, D.C.; and Ira ment of Defense; Jan B. Reltman, Staff Director, En- Wolf, Eastman Kodak Company, Tokyo, Japan, on vironment and Safety, HQ Defense Logistics Agency; behalf of the American Chamber of Commerce in Raymond J. Fatz, Deputy Assistant Secretary for En- Japan. vironment, Safety and Occupational Health, and Paul Johnson, Deputy Assistant Secretary for Instal- IMMIGRANT ENTREPRENEURS lations, Logistics and Environment, both for the De- Committee on the Judiciary: Subcommittee on Immi- partment of the Army; Robert B. Pirie, Jr., Assistant gration concluded hearings to examine the contribu- Secretary of the Navy for Installation and Environ- tions to the United States from legal immigrants, fo- ment; and Thomas W. McCall, Jr., Deputy Assistant cusing on how immigrants increase consumer spend- Secretary for Environmental, Safety and Occupational ing and job growth and create jobs through entre- Health, and Jimmy G. Dishner, Deputy Assistant preneurship, after receiving testimony from Senator Secretary for Installations, both for the Air Force. Hatch; Ovidiu Colea, Colbar Art, Inc., Long Island, Subcommittee will meet again on Thursday, April New York; John Tu and Gary D. MacDonald, 17. Kingston Technology Company, Fountain Valley, CHEMICAL WEAPONS CONVENTION California; Mara M. Letica, Letica Corporation, Rochester, Michigan; Adrian A. Gaspar, Adrian A. Committee on Foreign Relations: Committee resumed Gaspar and Company, Cambridge, Massachusetts; hearings on the ratification of the Convention on the and Jimy M. Sanders, University of South Carolina Prohibition of Development, Production, Stockpiling at Columbia. and Use of Chemical Weapons and on Their De- struction, opened for signature and signed by the FEDERAL JOB TRAINING PROGRAMS United States at Paris on January 13, 1993 (Treaty Doc, 103–21), receiving testimony from William A. Committee on Labor and Human Resources: Subcommit- Reinsch, Under Secretary of Commerce for Export tee on Employment and Training resumed oversight Administration; Bruce Merrifield, former Assistant hearings to review the effectiveness of Federal job Secretary of Commerce; Frederick Webber, Chemical training programs and changes needed to meet the Manufacturers Association, and Kevin L. Kearns, skill demands in a competitive marketplace, focusing United States Business and Industrial Council, both on innovations in adult job training, receiving testi- of Washington, D.C.; Malcolm S. Forbes, Jr., Forbes, mony from Jacki Bessler-Perasso, Oregon Job Train- Inc., New York, New York; Wayne Spears, Spears ing Partnership Administration, Salem; Donald W. Manufacturing Company, Burbank, California; Ralph Ingwerson, Los Angeles County Office of Education, V. Johnson, Dixie Chemical Company, Inc., Hous- Downey, California; Peter McLaughlin, Hennepin ton, Texas; and Kathleen C. Bailey, University of County Commission, Minneapolis, Minnesota, on be- California, Livermore. half of the National Association of Counties and the Hearings will resume on Thursday, April 17. Association of Minnesota Counties; Daniel Berry, Cleveland Growth Association, Cleveland, Ohio; U.S.-JAPAN BILATERAL RELATIONSHIP Ronald C. Foster, Washington, D.C., and Pamela Committee on Foreign Relations: Subcommittee on East Denise Brown, New York, New York, both of Unit- Asian and Pacific Affairs concluded hearings to ex- ed Parcel Service; and Kenneth E. Tully and Marlene amine the United States’ bilateral relationship with Gray, both of Marriott International, Inc., and Kris- Japan, after receiving testimony from Robert C. tin Watkins, Wider Opportunities for Women, all Reis, Acting Deputy Assistant Secretary of State for of Washington, D.C. East Asia and Pacific Affairs; Kurt M. Campbell, Hearings will resume on Thursday, April 17. D336 CONGRESSIONAL RECORD — DAILY DIGEST April 15, 1997 SENATE ELECTIONS receiving testimony from Mark K. Seifert, Washing- Committee on Rules and Administration: Committee ton, D.C.; Louis Jenkins, Baton Rouge, Louisiana; concluded hearings to review certain petitions filed and G. Anthony Gelderman, III, Tarcza and in connection with a contested United States Senate Gelderman, and Scott R. Bickford, Martzell and election held in Louisiana in November 1996, after Bickford, both of New Orleans, Louisiana. April 15, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D337 House of Representatives failed to pass H.J. Res. 62, as amended pursuant to Chamber Action the rule, proposing an amendment to the Constitu- Bills Introduced: 20 public bills, H.R. 1321–1340; tion of the United States with respect to tax limita- 1 private bill, H.R. 1341; and 3 resolutions, H.J. tions. Pages H1480±90, H1491±H1506 Res. 71 and H. Con. Res. 61–62, were introduced. H. Res. 113, the rule providing for consideration Pages H1541±42 of the joint resolution, was agreed to earlier by a Reports Filed: No reports were filed today. voice vote. The rule provided that an amendment in the nature of a substitute consisting of the text rec- Recess: The House recessed at 10:51 a.m. and re- ommended by the Committee on the Judiciary now convened at 12:00 noon. Page H1459 printed in H.J. Res. 62 (H. Rept. 105–50) and Suspensions: The House voted to suspend the rules modified by the amendment specified in the report and pass the following measures: (H. Rept. 105–54) of the Committee on Rules ac- companying H. Res. 113 shall be considered as Taxpayer Browsing Protection Act: H.R. 1226, adopted. Pages H1473±80 amended, to amend the Internal Revenue Code of 1986 to prevent the unauthorized inspection of tax Committee Resignation: Read a letter from Rep- returns or tax return information (passed by a yea- resentative Jones wherein he resigns from the Com- and-nay vote of 412 yeas with none voting ‘‘nay’’, mittee on Small Business. Page H1506 Roll No. 76); Pages H1461±67, H1490 Quorum Calls—Votes: Three yea-and-nay votes de- Family Tax Relief: H. Res. 109, expressing the veloped during the proceedings of the House today sense of the House of Representatives that American and appear on pages H1490, H1490–91, and families deserve tax relief (agreed to by a yea-and- H1506. There were no quorum calls. nay vote of 412 yeas with none voting ‘‘nay’’, Roll Adjournment: Met at 10:30 a.m. and adjourned at No. 77); Pages H1467±71, H1490±91 11:20 p.m. Terms of Health Care Commissions: H.R. 1001, to extend the term of appointment of certain mem- Committee Meetings bers of the Prospective Payment Assessment Com- COMMODITY EXCHANGE ACT mission and the Physician Payment Review Commis- AMENDMENTS sion; and Page H1471 Committee on Agriculture: Subcommittee on Risk Man- Lawsuits Against Terrorist States: H.R. 1225, agement and Specialty Crops held a hearing on re- to make a technical correction to title 28, United form of the Commodity Exchange Act and provi- States Code, relating to jurisdiction for lawsuits sions of H.R. 467, Commodity Exchange Act against terrorist states. Page H1472 Amendments of 1997. Testimony was heard from Presidential Message—Argentina: Read a message Brooksley Born, Chair, Commodity Futures Trading from the President wherein he transmits his deter- Commission; Roger Anderson, Deputy Assistant Sec- mination that Argentina fails to provide effective retary, Federal Finance, Department of the Treasury; means under its laws for foreign nationals to secure, Richard Lindsey, Director, Division of Market Regu- exercise, and enforce exclusive rights in intellectual lation, SEC; Susan M. Phillips, member, Board of property; and his resultant determination to with- Governors, Federal Reserve System; and public wit- draw benefits for 50 percent (approximately $260 nesses. million) of Argentina’s exports under the General- Hearings continue tomorrow. ized System of Preference (GSP) program—referred COMMERCE, JUSTICE, STATE AND to the Committee on Ways and Means and ordered JUDICIARY APPROPRIATIONS printed (H. Doc. 105–66). Pages H1472±73 Committee on Appropriations: Subcommittee on Com- Tax Limitation Constitutional Amendment: By a merce, Justice, State and the Judiciary held a hearing yea-and-nay vote of 233 yeas to 190 nays with two- on the Office of Justice Programs, the Office of thirds required for passage, Roll No. 78, the House Community Oriented Policing and on the Office of D338 CONGRESSIONAL RECORD — DAILY DIGEST April 15, 1997 Juvenile Justice and Delinquency Prevention. Testi- retary, Export Administration, Department of Com- mony was heard from the following officials of the merce; the following officials of the Department of Department of Justice: Laurie Robinson, Assistant Energy: Victor H. Reis, Assistant Secretary, Defense Attorney General, Justice Programs; Joseph E. Programs; and Kenneth E. Baker, Acting Director, Brann, Director, Community Oriented Policing Serv- Office of Nonproliferation and National Security; ices; and Sheay Bilchek, Administrator, Juvenile Jus- and public witnesses. tice and Delinquency Prevention. INTERIOR APPROPRIATIONS OVERSIGHT—IMPLEMENTATION OF WILDERNESS ACT ON BLM AND FOREST Committee on Appropriations: Subcommittee on Interior SERVICE LANDS held a hearing on the Bureau of Indian Affairs/Office of Special Trustee. Testimony was heard from the Committee on Resources: Subcommittee on National following officials of the Department of the Interior: Parks and Public Lands and the Subcommittee on Ada E. Deer, Assistant Secretary, Indian Affairs; and Forests and Forest Health held a joint oversight Paul M. Homan, Special Trustee for American Indi- hearing on implementation of the 1964 Wilderness ans. Act on BLM and Forest Service lands. Testimony was heard from public witnesses. SUPPLEMENTAL APPROPRIATIONS Committee on Appropriations: Subcommittee on Interior REGULATORY FLEXIBILITY ACT— approved for full Committee action Supplemental FEDERAL AGENCY COMPLIANCE Appropriations for Fiscal Year 1997. Committee on Small Business: Subcommittee on Gov- LABOR-HHS-EDUCATION ernment Programs and Oversight and Subcommittee APPROPRIATIONS on Regulatory Reform and Paperwork Reduction held a joint hearing on Federal Agency Compliance Committee on Appropriations: Subcommittee on Labor, with the Regulatory Flexibility Act: Are Federal Health and Human Services, and Education contin- Agencies Using ‘‘Good Science’’ In Their Making? ued appropriation hearings. Testimony was heard Testimony was heard from public witnesses. from public witnesses. Hearings continue April 17. VA-HUD-INDEPENDENT AGENCIES APPROPRIATIONS FEDERAL INCOME TAX REPLACEMENT— Committee on Appropriations: Subcommittee on VA, IMPACT ON INDIVIDUALS AND FAMILIES HUD and Independent Agencies held a hearing on Committee on Ways and Means: Held a hearing on the the EPA. Testimony was heard from Carol M. Impact on Individuals and Families of Replacing the Browner, Administrator, EPA. Federal Income Tax. Testimony was heard from Rep- HOUSING OPPORTUNITY AND resentative Armey; and public witnesses. RESPONSIBILITY ACT INTELLIGENCE BUDGET—PERSONNEL AND Committee on Banking and Financial Services: Began LEGISLATIVE ISSUES markup of H.R. 2, Housing Opportunity and Re- sponsibility Act of 1997. Permanent Select Committee on Intelligence: Met in execu- Will continue tomorrow. tive session to hold a Budget hearing on Personnel and Legislative Issues. Testimony was heard from de- TRANSFER OF SUPERCOMPUTERS—IMPACT partmental witnesses. ON NATIONAL SECURITY f Committee on National Security: Subcommittee on Mili- tary Procurement held a hearing on the sale or trans- NEW PUBLIC LAWS fer of supercomputers to foreign entities or govern- ments engaged in nuclear weapons research and its (For last listing of Public Laws, see DAILY DIGEST, p. D294) impact on the national security interests of the Unit- H.R. 412, to approve a settlement agreement be- ed States. Testimony was heard from Harold John- tween the Bureau of Reclamation and the Oroville- son, Associate Director, International Relations and Tonasket Irrigation District. Signed April 14, 1997. Trade Issues, GAO; William A. Reinsch, Under Sec- (P.L. 105–9) April 15, 1997 CONGRESSIONAL RECORD — DAILY DIGEST D339 COMMITTEE MEETINGS FOR Subcommittee on Postal Service, hearing on H.R. 22, WEDNESDAY, APRIL 16, 1997 Postal Reform Act of 1997, 10 a.m., 2203 Rayburn. (Committee meetings are open unless otherwise indicated) Committee on International Relations, Subcommittee on International Operations and Human Rights, hearing on House Burmese Refugees in Thailand, 1 p.m., 2172 Rayburn. Committee on Agriculture, Subcommittee on Risk Man- Committee on the Judiciary, Subcommittee on Commer- agement and Specialty Crops, to continue hearings on re- cial and Administrative Law, oversight hearing on the op- form of the Commodity Exchange Act and provisions of eration of the bankruptcy system and a status report from H.R. 467, Commodity Exchange Act Amendments of the National Bankruptcy Review Commission, 10 a.m., 1997, 9 a.m., 1300 Longworth. 2237 Rayburn. Committee on Appropriations, Subcommittee on Agri- culture, Rural Development, Food and Drug Administra- Committee on National Security, hearing on Quadrennial tion, and Related Agencies, to mark up a Supplemental Defense Review and National Defense Panel, 1 p.m., Appropriations for Fiscal Year 1997, 2:30 p.m., 2360 2118 Rayburn. Rayburn. Committee on Resources, to mark up the following: H. Subcommittee on Commerce, Justice, State and the Ju- Con. Res. 8, expressing the sense of Congress with re- diciary, on the SBA; Economic Development Administra- spect to the significance of maintaining the health and tion; and Minority Business Development Agency, 10 stability of coral reef ecosystems; H.R. 39, African Con- a.m., on the Arms Control and Disarmament Agency, 2 servation Reauthorization Act of 1997; H.R. 408, Inter- p.m., and on the EEOC, 3 p.m. H–309 Capitol. national Dolphin Conservation Program Act; H.R. 449, Subcommittee on Energy and Water Development, to Southern Nevada Public Land Management Act of 1997; mark up a Supplemental Appropriations for Fiscal Year and H.R. 478, Flood Prevention and Family Protection 1997, 11:30 a.m., 2362 Rayburn. Act of 1997, 11 a.m., 1324 Longworth. Subcommittee on Interior, on Members of Congress, 10 a.m., and 1:30 p.m., B–308 Rayburn. Committee on Rules, to consider H.R. 400, 21st Century Subcommittee on Labor, Health and Human Services, Patent System Improvement Act, 3 p.m., H–313 Capitol. and Education, on public witnesses, 10 a.m. and 2 p.m., Committee on Science, to mark up the following bills: 2358 Rayburn. H.R. 363, to amend section 2118 of the Energy Policy Subcommittee on National Security, to mark up a Sup- Act of 1992 to extend the Electric and Magnetic Fields plemental Appropriations for Fiscal Year 1997, 10 a.m., Research and Public Information Dissemination program; and to hold a hearing on Ballistic Missile Defense, 1:30 H.R. 437, Marine Resources Revitalization Act; H.R. p.m., H–140 Capitol. 1271, FAA Research, Engineering, and Development Au- Subcommittee on VA, HUD and Independent Agen- thorization Act of 1997; H.R. 1272, Fire Administration cies, to continue on EPA, 1 p.m., and to mark up a Sup- Authorization Act of 1997; H.R. 1273, National Science plemental Appropriations for Fiscal Year 1997, 4:30 Foundation Authorization Act of 1997; H.R. 1274, Na- p.m., 2360 Rayburn. tional Institute of Standards and Technology Authoriza- Committee on Banking and Financial Services, to continue tion Act of 1997; H.R. 1275, Civilian Space Authoriza- mark up of H.R. 2, Housing Opportunity and Respon- tion Act, Fiscal Years 1998 and 1999; H.R. 1276, Envi- sibility Act of 1997, 1 p.m., 2128 Rayburn. ronmental Research, Development, and Demonstration Committee on Commerce, to mark up H.R. 688, Leaking Authorization Act of 1997; H.R. 1277, Department of Underground Storage Tank Trust Fund Amendments of Energy Civilian Research and Development Act of 1997; 1997, 10 a.m., 2123 Rayburn. Subcommittee on Finance and Hazardous Materials, to and H.R. 1278, National Oceanic and Atmospheric Ad- continue hearings on H.R. 1053, the Common Cents ministration Authorization Act of 1997, 10 a.m., 2318 Stock Pricing Act of 1997, 10 a.m., 2322 Rayburn. Rayburn. Committee on Education and the Workforce, Subcommittee Committee on Veterans’ Affairs, Subcommittee on Health on Workforce Protections, hearing on OSHA’s Methylene and the Subcommittee on Oversight and Investigations, Chloride rule, 10 a.m., 2175 Rayburn. joint hearing on health problems of Persian Gulf War Committee on Government Reform and Oversight, Sub- Veterans and possible exposure to chemical warfare committee on Human Resources and Intergovernmental agents, 10 a.m., 334 Cannon. Relations, oversight hearing on Health Care in Nursing Committee on Ways and Means, Subcommittee on Homes, 10 a.m., 2247 Rayburn. Human Resources, to mark up H.R. 867, Adoption Pro- Subcommittee on National Economic Growth, Natural motion Act of 1997, 4 p.m., B–318 Rayburn. Resources, and Regulatory Affairs, hearing on ‘‘EPA’s Proposed Standards for Particulate Matter and Ozone: Is Subcommittee on Oversight, hearing on the Electronic EPA Above the Law?’’ 9:30 a.m., 2154 Rayburn. Tax Payment System, 9:30 a.m., 1100 Longworth. D340 CONGRESSIONAL RECORD — DAILY DIGEST April 15, 1997

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 10 a.m., Wednesday, April 16 11 a.m., Wednesday, April 16

Senate Chamber House Chamber Program for Wednesday: After the recognition of seven Program for Wednesday: Consideration of H. Res. 112, Senators for speeches and the transaction of any morning providing for consideration of motions to suspend the business (not to extend beyond 1 p.m.), Senate may con- rules; and Consideration of 7 Suspensions: sider H.R. 1003, Assisted Suicide Funding Restriction 1. H.R. 607, Homeowners Insurance Protection Act; Act. 2. H.R. 1090, Allowing Revision of Veterans Benefits Based on Clear and Unmistakable Error; 3. H.R. 1092, Extending Veterans Affairs Authority for Enhanced-Use Leases; 4. H.R. 173, Donating Retiring Federal Law Enforce- ment Canines to Handlers; 5. H.R. 930, Travel and Transportation Reform Act of 1997; 6. H. Con. Res. 61, Honoring the Lifetime Achieve- ments of Jackie Robinson; and 7. H.R. 111, Dos Palos Land Conveyance Act.

Extensions of Remarks, as inserted in this issue

HOUSE Frank, Barney, Mass., E660 Obey, David R., Wisc., E654 Gallegly, Elton, Calif., E655 Pascrell, Bill, Jr., N.J., E653, E655, E659 Archer, Bill, Tex., E657 Goodling, William F., Pa., E653 Rahall, Nick J., II, West Va., E655 Ballenger, Cass, N.C., E657 Kennelly, Barbara B., Conn., E665 Roemer, Tim, Ind., E659 Camp, Dave, Mich., E654 Kucinich, Dennis J., Ohio, E653, E655, E658 Schumer, Charles E., N.Y., E664, E666 Clyburn, James E., S.C., E657 McIntosh, David M., Ind., E661 Skaggs, David E., Colo., E655 Cunningham, Randy ‘‘Duke’’, Calif., E661 Markey, Edward J., Mass., E668 Solomon, Gerald B.H., N.Y., E654, E656 Diaz-Balart, Lincoln, Fla., E656 Meek, Carrie P., Fla., E664 Spence, Floyd, S.C., E665, E666 Dixon, Julian C., Calif., E669 Menendez, Robert, N.J., E666 Towns, Edolphus, N.Y., E663 Doolittle, John T., Calif., E667 Norton, Eleanor Holmes, D.C., E665, E668 Visclosky, Peter J., Ind., E658

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