S6670 CONGRESSIONAL RECORD — SENATE June 27, 1997 Mr. MOYNIHAN. May I just ask in tends the time for filing returns and pay- The question is on agreeing to the terms of who appears and asks for rec- ment of tax (and waives any penalties relat- amendment. ognition, the first three pending ing to the failure to so file or so pay) for The yeas and nays have been ordered. amendments are, in fact, stacked? such taxpayers. The clerk will call the roll. Dorgan Amendment No. 516, to provide tax Mr. ROTH. That is correct. relief for taxpayers located in Presidentially The assistant legislative clerk called Mr. MOYNIHAN. The rest are just declared disaster areas. the roll. amendments that may be offered. Jeffords amendment No. 522, to provide for Mr. NICKLES. I announce that the The PRESIDING OFFICER. Without a trust fund for District of Columbia school Senator from Kansas [Mr. ROBERTS] is objection, the amendment of the Sen- renovations. necessarily absent. ator from Massachusetts will follow Domenici-Lautenberg amendment No. 537, Mr. FORD. I announce that the Sen- the process. to implement the enforcement provisions of ator from Illinois [Ms. MOSELEY- the Bipartisan Budget Agreement, enforce BRAUN] is necessarily absent. Mr. MCCAIN. Reserving the right to the Balanced Budget Act of 1997, extend the object, I ask a question of the Senator Budget Enforcement Act of 1990 through fis- The PRESIDING OFFICER. Are there from Delaware. Will there be a unani- cal year 2002, and make technical and con- any other Senators in the Chamber de- mous-consent agreement propounded of forming changes to the Congressional Budget siring to vote? some list of priority of these amend- and Impoundment Control Act of 1974 and The result was announced—yeas 98, ments so that the Senators will know the Balanced Budget and Emergency Deficit nays 0, as follows: when their amendment will be consid- Control Act of 1985. [Rollcall Vote No. 138 Leg.] Biden amendment No. 539 (to amendment ered? YEAS—98 No. 537), to provide for the transfer of funds Mr. ROTH. I say to my distinguished from the general fund to the Violent Crime Abraham Faircloth Lieberman friend from Arizona we could set such a Reduction Trust Fund. Akaka Feingold Lott list. I thought at the beginning we Nickles modified amendment No. 551, to Allard Feinstein Lugar Ashcroft Ford would move informally, but as time provide for an increase in deduction for Mack Baucus Frist McCain health insurance costs of self-employed indi- proceeds we will try to set a list. Bennett Glenn McConnell Mr. MCCAIN. Further reserving the viduals, and to modify rules for allocating Biden Gorton Mikulski right to object, we all know, as the day interest expense to tax-exempt interest. Bingaman Graham Moynihan Gramm amendment No. 552, to allow fami- Bond Gramm wears on, there will be increasing pres- Murkowski lies to decide for themselves how best to use Boxer Grams Murray sures because of the departure as ar- their child tax credit. Breaux Grassley Nickles Brownback Gregg ticulated by my friend from Nevada Kerry amendment No. 554, to allow payroll Reed Bryan Hagel Reid last night, so it is of some interest as taxes to be included in the calculation of tax Bumpers Harkin Robb to which priority, after the initial liability for receiving the children’s tax Burns Hatch Rockefeller credit. Byrd Helms amendments that were agreed to last Roth AMENDMENT NO. 551, AS MODIFIED Campbell Hollings night, will be considered. Chafee Hutchinson Santorum I ask both the Democrat leader and The PRESIDING OFFICER. The Cleland Hutchison Sarbanes the managers, both managers of the pending business is the Nickles amend- Coats Inhofe Sessions Shelby bill, if we could have some predict- ment No. 551, with 2 minutes equally Cochran Inouye Collins Jeffords Smith (NH) ability associated with that. divided for debate. Conrad Johnson Smith (OR) I remove my objection. Mr. NICKLES. Mr. President, on be- Coverdell Kempthorne Snowe Mr. COVERDELL. Mr. President, re- half of myself, Senator HAGEL, Senator Craig Kennedy Specter Stevens ABRAHAM, Senator DOMENICI, and oth- D’Amato Kerrey serving the right to object, these Daschle Kerry Thomas amendments have been around for ers, the amendment that we proposed DeWine Kohl Thompson some time, and I would think there last night we have modified. We did re- Dodd Kyl Thurmond would have already been a sequence of ceive some requests from Senators to Domenici Landrieu Torricelli Dorgan Lautenberg Warner priorities. This proposal ought not to delete the provision that dealt with Durbin Leahy Wellstone be muscling around here. corporate deductibility of tax exempts. Enzi Levin Wyden That was not a major portion of the Mr. ROTH. I say to the distinguished NOT VOTING—2 Senator we do have a sequence of amendment. We did delete that. Moseley-Braun Roberts amendments and we intend to go down I might mention I think it is a good the sequence of amendments from provision. It is a provision that is in The amendment (No. 551), as modi- Democrat to Republican. the House bill, so it will be in con- fied, was agreed to. Mr. ROTH. Mr. President, I move to f ference. Mr. President, this amendment accel- reconsider the vote by which the RESERVATION OF LEADER TIME erates self-employed deductibility for amendment was agreed to. The PRESIDING OFFICER. Under insurance. It allows self-employed indi- Mr. LOTT. I move to lay that motion the previous order, the leadership time viduals to be able to deduct a greater on the table. is reserved. proportion of their health insurance The motion to lay on the table was agreed to. f needs. It increases it. For example, in 1997, current law is 40 percent; it in- Mr. LOTT addressed the Chair. REVENUE RECONCILIATION ACT creases it to 50 percent. In 1999 it in- The PRESIDING OFFICER. The ma- OF 1997 creases it to 60 percent. And so on. jority leader. The PRESIDING OFFICER. Under Mr. President, I ask for the yeas and Mr. LOTT. Mr. President, I ask unan- the previous order, the Senate will now nays on the amendment. imous consent that the remaining resume consideration of Senate bill 949, The PRESIDING OFFICER. Is there a votes in sequence be limited to 10 min- which the clerk will report. sufficient second? utes in length. The assistant legislative clerk read There is a sufficient second. The PRESIDING OFFICER. Is there as follows: The yeas and nays were ordered. objection? Mr. REID. Mr. President, reserving A bill (S. 949) to provide revenue reconcili- Mr. KERREY. I am not in opposition, ation pursuant to section 104(b) of the con- but with the 2-percent provision strick- the right to object, is this going to be current resolution on the budget for fiscal en, I ask unanimous consent to be a real 10 minutes? year 1998. added as a cosponsor to this amend- Mr. LOTT. Mr. President, I can re- The Senate resumed consideration of ment. spond to that question. I was just fix- the bill. The PRESIDING OFFICER. Without ing to say that the 10 minutes be Pending: objection, it is so ordered. strictly enforced. Please don’t leave Mr. NICKLES. I also ask unanimous the Chamber. We just had a couple of Dorgan amendment No. 515, to authorize the Secretary of the Treasury to abate the consent that Senator THURMOND be Senators that didn’t make that vote accrual of interest on income tax underpay- added as a cosponsor. because it had been beyond the normal ments by taxpayers located in Presidentially The PRESIDING OFFICER. Without time. When the 10 minutes is up we are declared disaster areas if the Secretary ex- objection, it is so ordered. going to turn it in.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00002 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6671 The PRESIDING OFFICER. Without The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. May we objection, it is so ordered. ator from Louisiana. have order, please. Mr. ROTH. Mr. President, I have a Mr. BREAUX. The problem of bring- Mr. ROTH. Mr. President, what is the further unanimous consent. ing up the amendment is there is no re- pending order? Mr. President, I am asking unani- quirement that the tax credit be used Mr. MOYNIHAN. Mr. President, we mous consent that following the pre- for the child. This is a per-child tax must have order. viously ordered stacked vote that the credit. We think there should be at The PRESIDING OFFICER. We will remainder of the sequence be in an al- least some encouragement that it be not proceed until there is order in the ternating fashion with the two man- used for the child. Chamber. agers determining the order. Mr. KERREY. Mr. President, this AMENDMENT NO. 554 The PRESIDING OFFICER. Is there provision would change American fam- The PRESIDING OFFICER. The objection? ilies with children, and it will generate pending question is on the Kerry of Without objection, it is so ordered. more wealth. It is good for American Massachusetts amendment No. 554. Mr. ROTH. Mr. President, I ask unan- families. We have been talking about Mr. ROTH. Mr. President, I yield the imous consent that following the dis- it. In addition to the child tax credit, floor. position of the Kerry amendment No. there are a number of us—Republicans Mr. KERRY. Mr. President, may we 554 that Senator DOMENICI be recog- and Democrats—talking about ways to have order. The PRESIDING OFFICER. Two nized to offer an amendment No. 537, to make this tax credit a vehicle for gen- minutes equally divided. The Senator be followed by the amendments in the erating wealth for the last few years. It following order: Biden-Gramm, from Massachusetts. is a good provision. Mr. KERRY. May we have order, Mr. Gramm, Bumpers, Craig, Brownback, I hope my colleagues will vote President. Frist, Abraham, and Byrd. against the motion to strike. The PRESIDING OFFICER. May we The PRESIDING OFFICER. Without The PRESIDING OFFICER. The time have order, please. objection, it is so ordered. has expired. Mr. KERRY. Mr. President, we just AMENDMENT NO. 552 Mr. ROTH. I ask for the yeas and heard the Senator from Texas talk Mr. ROTH. Mr. President, what is the nays. about getting a child tax credit for order of business before us? The PRESIDING OFFICER. Is there a children. Under the child tax credit as The PRESIDING OFFICER. The sufficient second? it is written in the Finance Committee pending amendment is the Gramm of There is a sufficient second. bill, 99 percent of the children eligible Texas amendment No. 552. The yeas and nays were ordered. in the lowest 20 percent of income will Mr. ROTH. I yield the floor. The PRESIDING OFFICER. The not get it; 86 percent of the children in The PRESIDING OFFICER. The de- question is on agreeing to the amend- the next quintile will not get it. This is bate is limited to 2 minutes equally di- ment of the Senator from Texas. On because, as we all know, most people in vided. this question, the yeas and nays have America pay their taxes by the payroll The Senator from Texas. been ordered, and the clerk will call tax. Mr. GRAMM. Mr. President, from the the roll. What I do in my amendment is take very beginning of this tax debate we The legislative clerk called the roll. the Contract With America provision The result was announced—yeas 46, have talked about a $500 tax credit per that was supported by Senator GRAMM, nays 54, as follows: child. And the logic has been to let Senator LOTT, and Senator COATS and working families decide how to spend [Rollcall Vote No. 139 Leg.] apply a refundable tax credit so that their money on their children. Then YEAS—46 we expand by 7 million the number of suddenly out of the Finance Committee Abraham Enzi Murkowski children who will be given a tax credit. on a very close vote has come a provi- Akaka Faircloth Nickles If we really want the working people of Allard Frist sion that says we are going to give you Roberts America to get this credit, it is appro- a $500 tax credit but you get it only if Ashcroft Gramm Santorum Bond Grams Sessions priate that a working family that is you use it the way we determine you Brownback Hagel Shelby earning $22,000 with two parents and should use it, which is to have an edu- Burns Helms Smith (NH) two children be able to get the credit. cational IRA. I think educational IRAs Campbell Hutchinson Smith (OR) Coats Hutchison Under the current legislation, they Snowe are wonderful, if you can afford them. Collins Inhofe Thomas would not get the credit. But the whole purpose of the $500 tax Conrad Johnson Thompson The PRESIDING OFFICER. The Sen- credit was to let working families de- Coverdell Kempthorne D’Amato Kyl Thurmond ator’s time has expired. cide. DeWine Lugar Warner Mr. KERRY. Only by the Contract I know the Senate is full of brilliant Domenici McCain Wellstone With America provision can we expand people, and we think we can decide Dorgan McConnell the number of children. things for families better than they NAYS—54 The PRESIDING OFFICER. One can. But that violates the agreement Baucus Ford Levin minute in opposition. The Senator we had with the American people on Bennett Glenn Lieberman from Oklahoma. this bill. We hear every time an issue is Biden Gorton Lott Mr. NICKLES. Mr. President, I urge debated that this violates the commit- Bingaman Graham Mack any colleagues to vote no on the Kerry Boxer Grassley Mikulski ment to the Congress, or it violates the Breaux Gregg Moseley-Braun amendment. This is really an amend- commitment to the President. This Bryan Harkin Moynihan ment to make the credit refundable. provision violates the commitment to Bumpers Hatch Murray Another way of saying that, this is a the American people, and all of us talk Byrd Hollings Reed Chafee Inouye Reid way for the Federal Government to about a $500 tax credit. We talk about Cleland Jeffords Robb spend more money. Costed out, the parents choosing. Let’s let them Cochran Kennedy Rockefeller outlays will increase in this bill under choose. Craig Kerrey Roth this amendment by $22 billion over 5 Daschle Kerry Sarbanes Mr. ROTH addressed the Chair. Dodd Kohl Specter years, by $47 billion over 10 years. The PRESIDING OFFICER. There is Durbin Landrieu Stevens I might mention, refundable credits 1 minute to the opposition. Feingold Lautenberg Torricelli are one of the most fraudulent in gov- Mr. ROTH. Mr. President, I strongly Feinstein Leahy Wyden ernment. The EITC program has ex- oppose this amendment. The amendment (No. 552) was re- ploded. It has an error rate of over 25 We had two goals in this legislation: jected. percent. This is an amendment to re- To provide tax relief to the family, to Mr. ROTH. Mr. President, I move to distribute wealth, and it denies tax provide assistance for higher education reconsider the vote. credits for families that have incomes to the families, and this carefully Mr. SANTORUM. I move to lay that above $60,000. I urge my colleagues to crafted compromise does exactly that. motion on the table. vote no on this amendment. I yield what time is remaining to the The motion to lay on the table was Mr. DOMENICI. Mr. President, I rise Senator from Louisiana. agreed to. to make a point of order against the

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00003 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6672 CONGRESSIONAL RECORD — SENATE June 27, 1997 amendment. It would increase outlays been ordered. The clerk will call the Mr. DOMENICI. Being that everyone by $22 billion over 5 years, $47 billion roll. in the Chamber would want it to hap- over 10 years and it thus violates sec- The assistant legislative clerk called pen, he agrees. tion 302(b) of the Budget Act. the roll. The PRESIDING OFFICER. Is there Mr. KERRY addressed the Chair. Mr. FORD. I announce that the Sen- objection? Hearing none, it is so or- The PRESIDING OFFICER. The Sen- ator from Illinois [Mr. DURBIN] is nec- dered. ator from Massachusetts. essarily absent. The amendment (No. 539) was agreed Mr. KERRY. Mr. President, this is The PRESIDING OFFICER. Are there to. revenue neutral, and I move to waive any other Senators in the Chamber AMENDMENT NO. 537, AS AMENDED the Budget Act to accept a revenue who desire to vote? The PRESIDING OFFICER. There neutral amendment. The yeas and nays resulted—yeas 39, will be 2 minutes equally divided. The PRESIDING OFFICER. Does the nays 60, as follows: Mr. DOMENICI. Mr. President, I am Senator ask for the yeas and nays? [Rollcall Vote No. 140 Leg.] the proponent of the waiver at this Mr. ROTH. Yeas and nays. YEAS—39 point, so I get 1 minute for the waiver. Mr. KERRY. I ask for the yeas and Akaka Feingold Lautenberg All we have done here is taken cur- nays. Biden Feinstein Leahy rent law, with reference to points of The PRESIDING OFFICER. Is there a Bingaman Ford Levin Boxer Glenn Mikulski order and the processes that we have to sufficient second? There is a sufficient Breaux Harkin Murray enforce budgets, the pay-go, and what second. Bumpers Hollings Reed we put in is the 5-year caps which we The PRESIDING OFFICER. The yeas Cleland Inouye Reid Coats Jeffords Robb did on the last 5-year budget. We only and nays were ordered. Collins Johnson Sarbanes did 2 years on the defense wall instead There are 2 minutes equally divided Conrad Kennedy Specter of 5. That exists today. on this vote. Daschle Kerry Torricelli Mr. MOYNIHAN. Mr. President, we The Senator from Massachusetts. Dodd Kohl Wellstone Dorgan Landrieu Wyden must have order. Mr. KERRY. Mr. President, let me The PRESIDING OFFICER (Ms. COL- NAYS—60 just say to my colleagues this does not LINS). The Senate will be in order. cost one penny additional because we Abraham Frist McCain Mr. DOMENICI. So, in order to en- change the phase-in. It is $100,000 plus Allard Gorton McConnell Ashcroft Graham Moseley-Braun force the agreement that we are claim- that you extended to the people in the Baucus Gramm Moynihan ing is a balanced budget, we must Finance Committee. I put the phaseout Bennett Grams Murkowski adopt this amendment or it is unen- at $65,000 to $70,000, and we phase in the Bond Grassley Nickles forceable, in terms of the appropriated children by age. So there is no impact Brownback Gregg Roberts Bryan Hagel Rockefeller accounts. on the budget. It is revenue neutral. Burns Hatch Roth Mr. MOYNIHAN. Madam President, Mr. NICKLES addressed the Chair. Byrd Helms Santorum might I just take a moment to observe The PRESIDING OFFICER. May we Campbell Hutchinson Sessions Chafee Hutchison Shelby that, with no uproar, we are about to have order, please. Cochran Inhofe Smith (NH) do something rather important. In this Mr. KERRY. And it extends it to 7 Coverdell Kempthorne Smith (OR) vote on budget procedures we are going million additional children. You can- Craig Kerrey Snowe to legislate a change in the inflation not say you are covering working chil- D’Amato Kyl Stevens DeWine Lieberman Thomas index used to update official calcula- dren in America if a working family is Domenici Lott Thompson tions of baseline spending. not able to take advantage of the cred- Enzi Lugar Thurmond Under section 257 of the Balanced its. Faircloth Mack Warner Budget and Emergency Deficit Control The PRESIDING OFFICER. The time NOT VOTING—1 Act of 1985 (Gramm-Rudman-Hollings), has expired. Durbin required inflation adjustments are Mr. NICKLES addressed the Chair. The PRESIDING OFFICER. On this made using a ‘‘fixed-weight index’’ pro- The PRESIDING OFFICER. If we can vote the nays are 60, the ayes are 39. duced by the Commerce Department’s all have order, please. Three-fifths of the Senators duly cho- Bureau of Economic Analysis. Section The Senator from Oklahoma has 1 sen and sworn not voting in the affirm- 1559(a)(3), of the changes in budget en- minute. ative, the motion is rejected. The point forcement procedures now before us, Mr. NICKLES. Mr. President, I am of order is sustained and the amend- require that in the future the adjust- advised by the Senator from New Mex- ment falls. ments should be based on the ‘‘domes- ico that the low-income family with Mr. ROTH. Mr. President, I move to tic product chain-type price index’’— two children under the EITC Program, reconsider the vote. also produced by the Bureau of Eco- if they have incomes of about $14,000, Mr. MOYNIHAN. I move to lay that nomic Analysis. Given the improve- receive a refundable tax credit of $3,680, motion on the table. ments in index number theory, this is a a lot more than their total tax liabil- The motion to lay on the table was perfectly appropriate change. ity. The Senator from Massachusetts agreed to. Might I also just remind my col- wants to add to that and increase out- AMENDMENT NO. 537 leagues that the Department of Labor’s lays by $22 billion. The PRESIDING OFFICER. The Bureau of Labor Statistics compiles Mr. DOMENICI addressed the Chair. question now is on the Domenici two other indexes used by the Govern- The PRESIDING OFFICER. The Sen- amendment No. 537, to which the pend- ment—CPI–U which is used to adjust ator from New Mexico. ing business is the second-degree provisions of the Tax Code and CPI–W Mr. DOMENICI. Mr. President, there amendment, No. 539. which is used to adjust benefits such as is a budget point of order, neutrality or The Senator from New Mexico. Social Security. no neutrality. The expenditures in this AMENDMENT NO. 539 TO AMENDMENT NO. 537 For the record I note that none of amendment exceed the expenditures Mr. DOMENICI. I do not see Senator these indexes give the same estimate of that are allocated under the budget BIDEN on the floor but I do see Senator inflation. resolution, and the Budget Act says GRAMM. Do you object if I modify my Here are the numbers for 1996: you cannot spend more than is allo- amendment to include your Biden- [In percent] cated to the committee, regardless of Gramm amendment, so when we vote CPI–U ...... 3.0 whether it is neutral or not. on mine we would be taking yours with CPI–W ...... 2.9 Mr. BYRD. Mr. President, may we us? Fixed Weight Price Index ...... 2.3 have order in the Chamber. Mr. GRAMM. Why don’t we put it on Chain Weight Price Index ...... 2.1 VOTE ON MOTION TO WAIVE THE BUDGET ACT my amendment? Today’s vote on budget procedures The PRESIDING OFFICER. The Sen- Mr. DOMENICI. I will object. Do you should be recalled when we return—as ate will be in order. The question is on object? we must—to the issue of producing an agreeing to the motion to waive the Mr. GRAMM. No, being a sweet, won- accurate cost of living index for the point of order. The yeas and nays have derful person, I will not object. purpose of automatic indexation of

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00004 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6673 Government programs. No one is refer- Biden Glenn Mack et that we are enforcing here, we had $7 ring to today’s legislative actions as Bingaman Gorton McCain billion of net deficit reduction as com- Bond Graham McConnell ‘‘politicizing’’ the calculation of budg- Boxer Gramm Mikulski pared to current policy. Ninety-seven et updates. We are just getting the Breaux Grams Moseley-Braun percent of deficit reduction was simply numbers right. Brownback Grassley Moynihan assumed. That deficit reduction and Bryan Gregg And no one should refer to legislating Murkowski policy changes has now fallen to $1 bil- Burns Hagel Murray a correction in automatic indexation Byrd Harkin Nickles lion because we are short on spectrum. formulas as a ‘‘political’’ fix. Campbell Hatch Reed Everything we are doing in balancing Chafee Helms Reid the budget is based on assumptions. The PRESIDING OFFICER. The Sen- Cleland Hollings Robb ator from Delaware. Coats Hutchinson The only enforcement mechanism we Roberts Cochran Hutchison now have is on discretionary spending, Mr. BIDEN. Madam President, I ask Rockefeller Collins Inhofe unanimous consent that Senators Roth and the first act in considering this Conrad Inouye budget was waiving that discretionary HATCH and GREGG be added as cospon- Coverdell Jeffords Santorum sors to the amendment. Craig Johnson Sarbanes spending cap in the last budget. Sessions The PRESIDING OFFICER. Without D’Amato Kempthorne My amendment sets out the deficit Daschle Kennedy Shelby reduction targets that we have com- objection, it is so ordered. Smith (NH) DeWine Kerrey mitted to and enforces them with an Mr. DOMENICI. Madam President, I Dodd Kerry Smith (OR) ask for the yeas and nays. Domenici Kohl Snowe across-the-board cut if we refuse to Specter The PRESIDING OFFICER. Is there a Dorgan Kyl meet them. Also, my provision says Durbin Landrieu Stevens sufficient second? that in paying for a tax cut, you can Enzi Lautenberg Thomas pay for it by cutting entitlements, by There is a sufficient second. Faircloth Leahy Thompson raising other taxes or by lowering the The yeas and nays were ordered. Feingold Levin Thurmond Feinstein Lieberman Torricelli discretionary spending caps. So it gives The PRESIDING OFFICER. The Sen- Ford Lott Warner us the option in the future, if we ever ator from Texas. Frist Lugar Wyden do another tax cut, to not have to cut Mr. GRAMM. Madam President, I NAYS—2 Medicare in order to pay for tax cuts, would like the 1 minute on the Biden- Bumpers Wellstone so that if we want to reduce discre- Gramm second-degree amendment. The amendment (No. 537), as amend- tionary spending and put a spending The PRESIDING OFFICER. The 1 cap in place, we can do it. minute has expired. ed, was agreed to. Mr. MOYNIHAN. Madam President, I This budget has a lot of assumptions Mr. GRAMM. But we have a second- move to reconsider the vote by which in it. We need as strong as possible an degree amendment that was added to the amendment was agreed to. enforcement. If you want strong en- the Domenici amendment by unani- Mr. DOMENICI. I move to lay that forcement, vote for this amendment. mous consent. We would like it. motion on the table. The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The The motion to lay on the table was ator’s time has expired. amendment has been accepted. All agreed to. Mr. LAUTENBERG addressed the time has expired. Mr. DOMENICI addressed the Chair. Chair. Mr. DOMENICI. I ask consent that he The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- gets 1 minute. It is fair. ator from New Mexico. ator from New Jersey. The PRESIDING OFFICER. Without Mr. DOMENICI. Madam President, Mr. LAUTENBERG. Madam Presi- objection, it is so ordered. The Senator what actually happened on that vote, dent, I oppose the Gramm amendment. from Texas. the Parliamentarian misunderstood The amendment would radically The Senate will be in order. and he had us vote up or down on this change current budget rules by allow- Mr. GRAMM. Let me take 30 seconds amendment, and I had asked that it be ing temporary, unspecified cuts in dis- and allow Senator BIDEN to have the a waiver of the Budget Act. In light of cretionary programs to pay for perma- other 30 seconds. Our colleagues will the fact we have—how many votes? nent tax cuts. That would violate the remember that we set up a violent The PRESIDING OFFICER. Ninety- bipartisan budget agreement and could crime trust fund to guarantee adequate eight yeas. explode the deficit in the future. funding for law enforcement, and for Mr. DOMENICI. I would like to clear This amendment also brings back the our antidrug effort. That provision was the amendment and make sure we have discredited Gramm-Rudman system of set to expire and all we are doing in waived the Budget Act for this amend- automatic across-the-board cuts, the this amendment is simply extending ment so it is no longer possible to raise system that led to a proliferation of that trust fund. This is a mightily im- a point of order against it. gimmicks and rosy scenarios, and we portant matter. I am confident no one So I move to waive the Budget Act didn’t significantly reduce the deficit is going to oppose it. I simply wanted for consideration of this amendment to until we got rid of it. to make note of what we are doing. I this bill and any conference report that Madam President, fool me once, yield the remainder of the time. returns with it in. shame on you; fool me twice, shame on Mr. BIDEN. Madam President, there VOTE ON MOTION TO WAIVE THE BUDGET ACT us. I yield the remainder of my time to is nothing to add. This is simply ex- The PRESIDING OFFICER. The my colleague from New Mexico. The PRESIDING OFFICER. The Sen- tending the extent, the life of this question is on agreeing to the motion ator from New Mexico. agreement—the existence of the trust to waive the Budget Act with respect Mr. DOMENICI. Madam President, fund. to amendment No. 539, as amended. The motion was agreed to. Gramm-Rudman-Hollings didn’t work VOTE ON AMENDMENT NO. 537, AS AMENDED Mr. MOYNIHAN. Madam President, I before, and it won’t work the next The PRESIDING OFFICER. All time move to reconsider the vote by which time. The Senator from Texas would has expired. The question is on agree- the motion was agreed to. like to put back into effect Gramm- ing to the amendment. The yeas and Mr. ROTH. I move to lay that motion Rudman-Hollings automatic sequesters nays have been ordered. on the table. if you miss your targets. As a Senator, The clerk will call the roll. The motion to lay on the table was I personally don’t believe you ought to The legislative clerk called the roll. agreed to. offset appropriated accounts, to cut The PRESIDING OFFICER. Are there Mr. ROTH. The next amendment is them to put in permanent tax cuts. I any other Senators in the Chamber Senator GRAMM’s. think that deserves far more consider- who desire to vote? The PRESIDING OFFICER. The Sen- ation than 30 seconds on the floor of The result was announced, yeas 98, ator from Texas is recognized. the Senate. nays 2, as follows: AMENDMENT NO. 566 Mr. LAUTENBERG. Madam Presi- [Rollcall Vote No. 141 Leg.] (Purpose: To guarantee a balanced Federal dent, I raise a point of order that the YEAS—98 budget and expand tax relief options) pending amendment is extraneous and Abraham Allard Baucus Mr. GRAMM. Madam President, let violates section 313(b)(1)(A) of the Con- Akaka Ashcroft Bennett me remind everybody that in the budg- gressional Budget Act.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00005 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6674 CONGRESSIONAL RECORD — SENATE June 27, 1997 The PRESIDING OFFICER. If the cretionary appropriations are reduced that The PRESIDING OFFICER. Under Senator will withhold, the clerk will Congress and the President designate in stat- the previous order, the Senator from first report the amendment. ute as offsets for tax relief, the adjustments Arkansas is recognized to offer an The bill clerk read as follows: shall be the total amount of such reductions amendment on which there will be 2 in appropriations in discretionary accounts The Senator from Texas [Mr. GRAMM] pro- and the outlays flowing in all years from minutes of debate equally divided. poses an amendment numbered 566. such reduction.’’ The Senator from Arkansas. Mr. GRAMM. Madam President, I ask (e) Notwithstanding, any provision of this AMENDMENT NO. 568 unanimous consent that the reading of or any other Act, section 253 of the Balanced (Purpose: To prohibit the scoring, for budget the amendment be dispensed with. Budget and Emergency Deficit Control Act is purposes, of revenues associated with the The PRESIDING OFFICER. Without extended through fiscal year 2002. sale of certain federal lands) objection, it is so ordered. The PRESIDING OFFICER. The Sen- Mr. BUMPERS. Madam President, I The amendment is as follows: ator from Texas. send an amendment to the desk. At the appropriate place, add the fol- Mr. GRAMM. Madam President, The PRESIDING OFFICER. The lowing: under section 904 of the Budget Act, I clerk will report the amendment. SEC. . GUARANTEED BALANCED BUDGET. move to waive the point of order The bill clerk read as follows: (a) MAXIMUM DEFICIT AMOUNT.—Section 253 against the pending amendment, and I The Senator from Arkansas [Mr. BUMPERS] of the Balanced Budget and Emergency Def- ask for the yeas and nays. proposes an amendment numbered 568. icit Control Act of 1985 is amended— The PRESIDING OFFICER. Is there a (1) in subsection (b), in the last sentence by Mr. BUMPERS. Madam President, I sufficient second? ask unanimous consent that further striking the period and inserting ‘‘and There is a sufficient second. reading of the amendment be dispensed $10,000,000,000 for fiscal years 1998 and there- The yeas and nays were ordered. after.’’; and with. (2) by striking subsections (g) and (h) and VOTE ON MOTION TO WAIVE THE BUDGET ACT The PRESIDING OFFICER. Without inserting the following: The PRESIDING OFFICER. The objection, it is so ordered. ‘‘(g) MAXIMUM DEFICIT AMOUNT.—In this question is on agreeing to the motion The amendment is as follows: section— to waive the Budget Act with respect ‘‘(1) Notwithstanding any provision of this At the appropriate place add the following: to amendment No. 566. The yeas and ‘‘(f) BUDGETARY TREATMENT OF SALES OF or the term ‘deficit’ shall have the same nays have been ordered. The clerk will meaning as the term ‘deficit’ in section 3(6) CERTAIN FEDERAL LANDS.—The amounts re- of the Congressional Budget and Impound- call the roll. alized from the sale or lease of lands or in- ment Control Act of 1974 as on the day before The legislative clerk called the roll. terests in lands which are part of the Na- the date of enactment of the Budget Enforce- The PRESIDING OFFICER. Are there tional Park System, the Forest Service Sys- ment Act of 1990; and any other Senators in the Chamber de- tem or the U.S. Fish and Wildlife refuge sys- ‘‘(2) the term ‘maximum deficit amount’ siring to vote? tem shall not be scored with respect to the means— The yeas and nays resulted—yeas 37, level of budget authority, outlays, or reve- ‘‘(A) with respect to fiscal year 1998, nays 63, as follows: nues.’’ $90,500,000,000; [Rollcall Vote No. 142 Leg.] Mr. BUMPERS. Madam President, ‘‘(B) with respect to fiscal year 1999, YEAS—37 this amendment will prohibit the scor- $89,500,000,000; ing of the sale of any lands from a na- ‘‘(C) with respect to fiscal year 2000, Abraham Grams Mack $82,900,000,000; Allard Grassley McCain tional park or a national wildlife ref- ‘‘(D) with respect to fiscal year 2001, Ashcroft Gregg McConnell uge or Forest Service lands. $53,100,000,000; Bond Hagel Nickles To my colleagues, I want to say, I ‘‘(E) with respect to fiscal year 2002 and fis- Brownback Hatch Santorum have witnessed over the past 10 years Coats Helms Sessions cal years thereafter, zero.’’ Collins Hollings an irresistible urge on the part of some (b) LOOK-BACK SEQUESTER.—Section 253 of Shelby Coverdell Hutchinson Smith (NH) of my colleagues to dispose of some of the Balanced Budget and Emergency Deficit Craig Hutchison Thomas the national treasures of this country, Control Act of 1985 is amended by adding at Enzi Inhofe Thompson the end thereof the following new subsection: Faircloth Kempthorne even suggesting a commission to deter- Thurmond ‘‘(h) LOOK-BACK SEQUESTER.— Frist Kyl mine which lands, which national ‘‘(1) IN GENERAL.—On July 1 of each fiscal Gramm Lott parks, we can do without and sell. year, the Director of OMB shall determine if NAYS—63 This amendment is designed to do laws effective during the current fiscal year Akaka Dorgan Lugar two things. No. 1, it is designed to dis- will cause the deficit to exceed the max- Baucus Durbin Mikulski courage that by making it impossible imum deficit amount for such fiscal year. If Bennett Feingold Moseley-Braun to score the proceeds from a sale of na- the limit is exceeded, there shall be a pre- Biden Feinstein Moynihan tional parks, Forest Service lands, or liminary sequester of July 1 to eliminate the Bingaman Ford Murkowski excess. Boxer Glenn Murray wildlife refuges in a reconciliation bill; ‘‘(2) PERMANENT SEQUESTER.—Budget au- Breaux Gorton Reed and, No. 2, I want to say that I think it thority sequestered on July 1 pursuant to Bryan Graham Reid is a terrible practice. When I was Gov- Bumpers Harkin Robb paragraph (1) shall be permanently canceled Burns Inouye Roberts ernor, I never allowed a one-time asset on July 15. Byrd Jeffords Rockefeller to be used in the budget. ‘‘(3) NO MARGIN.—The margin for deter- Campbell Johnson Roth Finally, to those who would say, mining a sequester under this subsection Chafee Kennedy Sarbanes well, this will keep us from leasing shall be zero. Cleland Kerrey Smith (OR) ‘‘(4) SQUESTRATION PROCEDURES.—The pro- Cochran Kerry Snowe ANWR, that is simply not true. You vision of subsections (c), (d), and (e) of this Conrad Kohl Specter can lease ANWR. You can lease any- section shall apply to a sequester under this D’Amato Landrieu Stevens thing, wildlife refuge or otherwise, but Daschle Lautenberg Torricelli subsection.’’ DeWine Leahy Warner you cannot use it as an asset in the (c) OFFSETTING TAX CUTS WITH CUTS IN DIS- Dodd Levin Wellstone reconciliation bill. CRETIONARY SPENDING.—Section 252 of the Domenici Lieberman Wyden I yield back such time as I may have. Balanced Budget and Emergency Deficit The PRESIDING OFFICER. On this The PRESIDING OFFICER. The Sen- Control Act of 1985 is amended by adding at the end the following: vote the yeas are 37, the nays are 63. ator from New Mexico is recognized. ‘‘(f) OFFSETS WITH DISCRETIONARY SPEND- Three-fifths of the Senators duly cho- Mr. DOMENICI. Madam President, ING.—For purposes of subsection (b), revenue sen and sworn not having voted in the fellow Senators, the bipartisan budget reductions increasing the deficit may be off- affirmative, the motion is rejected. agreement and the Domenici-Lauten- set by reductions in discretionary appro- The point of order is sustained, and the berg amendment revised the asset sale priated amounts reducing the deficit.’’. amendment falls. scoring rule. The new rule prohibits (d) ADJUSTMENT OF DISCRETIONARY SPEND- Mr. ROTH. I move to reconsider the scoring asset sales that would lead to a ING LEVELS FOR TAX CUTS.—Section 251(b)(2) financial loss to the Government. of the Balanced Budget and Emergency Def- vote. icit Control Act of 1985 is amended by adding Mr. MOYNIHAN. I move to lay that Much work has gone into this. Demo- at the end the following: motion on the table. crats and Republicans have worked on ‘‘(I) TAX RELIEF ADJUSTMENTS.—If, for any The motion to lay on the table was it. Senator BUMPERS wants to make a fiscal year or years, appropriations for dis- agreed to. special exception for public lands.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00006 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6675 Let me suggest the awesome situa- The motion to lay on the table was creation of a new entitlement program tion that he has talked about never has agreed to. if there is a true need for the program. happened in the U.S. Senate. We have AMENDMENT NO. 569 It simply will require that such a need never tried to sell national parks. We (Purpose: To modify the pay-as-you-go re- be truly demonstrated. have never had any commission to sell quirement of the budget process to pro- My amendment will not prevent a national parks. Somebody in the House hibit the use of tax increases to pay for tax increase that is used for deficit re- had a wild idea, and, frankly, that is mandatory spending increases) duction. never going to happen here. The PRESIDING OFFICER. Under What my amendment will do is put As a matter of fact, this amendment, the previous order, the Senator from an end to the fiction that tax increases what we have already adopted, says Idaho is recognized to offer an amend- are capable of offsetting the cost of ad- that if there is any financial loss to the ment on which there will be 2 minutes ditional mandatory spending. Government, you cannot count an of debate equally divided. Mr. LAUTENBERG addressed the asset sale. Mr. CRAIG. Madam President, I send Chair. I make a point of order against the an amendment to the desk. The PRESIDING OFFICER. The Sen- Bumpers amendment. It violates sec- The PRESIDING OFFICER (Mr. ator from New Jersey is recognized. tion 313 of the Budget Act. ENZI). The clerk will report. Mr. LAUTENBERG. Mr. President, I Mr. BUMPERS. Madam President, I The legislative clerk read as follows: rise to oppose the Craig amendment. move to waive the Budget Act for Sen- The Senator from Idaho [Mr. CRAIG] pro- The amendment would change the pay- ate consideration of my amendment. poses an amendment numbered 569. go system and mean that we could not I ask for the yeas and nays. Mr. CRAIG. I ask unanimous consent provide for health insurance to chil- The PRESIDING OFFICER. Is there a the reading of the amendment be dis- dren by closing unnecessary tax loop- sufficient second? pensed with. holes. You heard it from the Senator There is a sufficient second. The PRESIDING OFFICER. Without directly. The yeas and nays were ordered. objection, it is so ordered. This is outrageous. It would under- VOTE ON MOTION TO WAIVE THE BUDGET ACT The amendment is as follows: mine our efforts to ensure that all of The PRESIDING OFFICER. The At the appropriate place insert the fol- the 10 million children who lack health question occurs on agreeing to the mo- lowing: coverage in this country can have it. tion to waive the Budget Act. The yeas SEC. . RESTRICTION ON THE USE OF TAX IN- There are already budget rules that and nays have been ordered. The clerk CREASES. limit the use of savings that come from will call the roll. (a) IN GENERAL.—In the Senate, for pur- tax loopholes. This amendment would poses of section 202 of House Concurrent Res- The bill clerk called the roll. go much farther and make it tougher The PRESIDING OFFICER. Are there olution 67 (104th Congress), it shall not be in order to consider any bill, joint resolution, to invest in children’s health programs. any other Senators in the Chamber de- amendment, motion, or conference report If you vote for the Craig amendment, siring to vote? that provides an increase in direct spending you are voting to protect tax loop- The yeas and nays resulted—yeas 48, offset by an increase in receipts. holes. If you vote against it, you are nays 52, as follows: (b) WAIVER.—This section may be waived voting to help children obtain health [Rollcall Vote No. 143 Leg.] or suspended in the Senate only by the af- insurance in the future. YEAS—48 firmative vote of three-fifths of the Mem- The PRESIDING OFFICER. All time bers, duly chosen and sworn. Akaka Ford Levin (c) APPEALS.—Appeals in the Senate from is expired. Biden Glenn Lieberman the decisions of the Chair relating to any Mr. LAUTENBERG. Mr. President, I Bingaman Graham Mikulski Boxer Gregg Moseley-Braun provision of this section shall be limited to 1 raise a point of order that the pending Bryan Harkin Moynihan hour, to be equally divided between, and con- amendment is extraneous and violates Bumpers Hollings Murray trolled by, the appellant and the manager of section 313(b)(1)(A) of the Congres- Byrd Inouye Reed the concurrent resolution, bill, or joint reso- sional Budget Act. Chafee Jeffords Reid lution, as the case may be. An affirmative Mr. CRAIG. Mr. President, under sec- Cleland Johnson Robb vote of three-fifths of the Members of the Collins Kennedy Rockefeller Senate, duly chosen and sworn, shall be re- tion 904 of the Budget Act, I move to Conrad Kerrey Sarbanes waive the point of order against the Daschle Kerry Snowe quired in the Senate to sustain an appeal of Dodd Kohl Specter the ruling of the Chair on a point of order pending amendment, and I ask for the Dorgan Landrieu Torricelli raised under this section. yeas and nays. Durbin Lautenberg Wellstone (d) DETERMINATION OF BUDGET LEVELS.— The PRESIDING OFFICER. Is there a Feingold Leahy Wyden For purposes of this section, the levels of di- sufficient second? NAYS—52 rect spending and receipts for a fiscal year There is a such second. shall be determined on the basis of estimates The yeas and nays were ordinary had. Abraham Faircloth McCain made by the Committee on the Budget of the Allard Feinstein McConnell VOTE ON MOTION TO WAIVE THE BUDGET ACT Ashcroft Frist Senate. Murkowski The PRESIDING OFFICER. The Baucus Gorton Nickles Mr. CRAIG. Mr. President, my Bennett Gramm Roberts amendment would change the current question occurs on agreeing to the mo- Bond Grams Roth pay-go procedures by establishing a 60- tion to waive the Budget Act. The yeas Breaux Grassley Santorum and nays have been ordered. The clerk Brownback Hagel Sessions vote point of order against using tax Burns Hatch will call the roll. Shelby increases to pay for new mandatory Campbell Helms Smith (NH) The assistant legislative clerk called Coats Hutchinson spending increases. My amendment is Smith (OR) the roll. Cochran Hutchison the first step toward reining in the un- Coverdell Inhofe Stevens controlled costs of mandatory spending The PRESIDING OFFICER. Are there Thomas Craig Kempthorne programs that I believe threaten our any other Senators in the Chamber de- D’Amato Kyl Thompson siring to vote? DeWine Lott Thurmond fiscal future. This budget should have Domenici Lugar Warner gone further in entitlement reform and The yeas and nays resulted—yeas 42, Enzi Mack it should not have added more entitle- nays 58, as follows: The PRESIDING OFFICER. On this ment spending, but there is one reform [Rollcall Vote No. 144 Leg.] question, the yeas are 47, the nays are that should be made definitely, and YEAS—42 52. Three-fifths of the Senators duly that is to cause no further harm. Abraham Faircloth Inhofe chosen and sworn not having voted in My amendment will not affect a sin- Allard Frist Kempthorne Ashcroft Gramm Kyl the affirmative, the motion is rejected, gle current beneficiary of a single ex- Bennett Grams Lott the point of order is sustained, and the isting entitlement program. My Brownback Grassley Mack amendment falls. amendment will not affect a single per- Campbell Gregg McCain Mr. ROTH. I move to reconsider the son who will qualify to become a bene- Coats Hagel McConnell Coverdell Hatch Murkowski vote. ficiary under the current requirements Craig Helms Nickles Mr. MOYNIHAN. I move to lay it on of any existing entitlement program. D’Amato Hutchinson Roberts the table. My amendment will not prevent the Enzi Hutchison Roth

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00007 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6676 CONGRESSIONAL RECORD — SENATE June 27, 1997 Santorum Smith (NH) Thompson through 2002 shall equal total outlays for all (b)(2)(A) or (B), the special direct spending Sessions Stevens Thurmond direct spending except net interest as deter- message shall include the text of a special Shelby Thomas Warner mined by the Director of the Office of Man- direct spending resolution implementing the NAYS—58 agement and Budget (hereinafter referred to President’s recommendations through rec- Akaka Dorgan Levin in this title as the ‘‘Director’’) under sub- onciliation directives instructing the appro- Baucus Durbin Lieberman section (b). priate committees of the House of Represent- Biden Feingold Lugar (b) INITIAL REPORT BY DIRECTOR.— atives and Senate to determine and rec- Bingaman Feinstein Mikulski (1) IN GENERAL.—Not later than 30 days ommend changes in laws within their juris- Bond Ford Moseley-Braun after the date of enactment of this title, the dictions. If the President recommends no re- Boxer Glenn Moynihan Director shall submit a report to Congress ductions pursuant to (b)(2)(C), the special di- Breaux Gorton Murray setting forth projected direct spending tar- rect spending message shall include the text Bryan Graham Reed Bumpers Harkin gets for each of fiscal years 1998 through 2002. of a special resolution concurring in the Reid Burns Hollings (2) PROJECTIONS AND ASSUMPTIONS.—The President’s recommendation of no legislative Robb Byrd Inouye Director’s projections shall be based on legis- action. Rockefeller Chafee Jeffords lation enacted as of 5 days before the report SEC. . REQUIRED RESPONSE BY CONGRESS. Cleland Johnson Sarbanes is submitted under paragraph (1). The Direc- Smith (OR) (a) IN GENERAL.—It shall not be in order in Cochran Kennedy tor shall use the same economic and tech- the House of Representatives or the Senate Collins Kerrey Snowe Specter nical assumption used in preparing the con- to consider a concurrent resolution on the Conrad Kerry current resolution on the budget for fiscal Daschle Kohl Torricelli budget unless that concurrent resolution DeWine Landrieu Wellstone year 1998 (H.Con.Res. 84). fully addresses the entirety of any overage Dodd Lautenberg Wyden SEC.—03. ANNUAL REVIEW OF DIRECT SPENDING contained in the applicable report of the Domenici Leahy AND RECEIPTS BY PRESIDENT. President under section ll04 through rec- The PRESIDING OFFICER. On this As part of each budget submitted under onciliation directives. vote, the yeas are 42, the nays are 58. section 1105(a) of title 31, United States (b) WAIVER AND SUSPENSION.—This section Code, the President shall provide an annual may be waived or suspended in the Senate Three-fifths of the Senators duly cho- review of direct spending and receipts, which only by the affirmative vote of three-fifths sen and sworn not having voted in the shall include— of the Members, duly chosen and sworn. This affirmative, the motion is rejected. (1) information on total outlays for pro- section shall be subject to the provisions of The point of order is sustained, and grams covered by the direct spending tar- section 258 of the Balanced Budget and the amendment fails. gets, including actual outlays for the prior Emergency Deficit Control Act of 1985. Mr. ROTH. Mr. President, I move to fiscal year and projected outlays for the cur- (c) APPEALS.—Appeals in the Senate from reconsider the vote by which the mo- rent fiscal year and the 5 succeeding fiscal the decisions of the Chair relating to any tion was rejected. years; and provision of this section shall be limited to 1 (2) information on the major categories of hour, to be equally divided between, and con- Mr. MOYNIHAN. I move to lay that Federal receipts, including a comparison be- trolled by, the appellant and the manager of motion on the table. tween the levels of those receipts and the the bill or joint resolution, as the case may The motion to lay on the table was levels projected as of the date of enactment be. An affirmative vote of three-fifths of the agreed to. of this title. Members of the Senate, duly chosen and AMENDMENT NO. 570 SEC.—04. SPECIAL DIRECT SPENDING MESSAGE sworn, shall be required in the Senate to sus- BY PRESIDENT. tain an appeal of the ruling of the Chair on (Purpose: To establish procedures to ensure a a point of order raised under this section. balanced Federal budget by fiscal year 2002) (a) TRIGGER.—If the information submitted by the President under section——03 indi- SEC. 06. RELATIONSHIP TO BALANCED BUDGET The PRESIDING OFFICER. Under cates— AND EMERGENCY DEFICIT CONTROL the previous order, the Senator from (1) that actual outlays for direct spending ACT. Kansas is recognized to offer an amend- in the prior fiscal year exceeded the applica- Reductions in outlays or increases in re- ment on which there are 2 minutes of ble direct spending target; or ceipts resulting from legislation reported debate equally divided. (2) that outlays for direct spending for the pursuant to section ll05 shall not be taken Mr. BROWNBACK. Mr. President, I current or budget year are projected to ex- into account for purposes of any budget en- ceed the applicable direct spending targets, forcement procedures under the Balanced have an amendment at the desk in the Budget and Emergency Deficit Control Act second-degree. the President shall include in his budget a special direct spending message meeting the of 1985. The PRESIDING OFFICER. The SEC. 07. ESTIMATING MARGIN. clerk will report. requirements of subsection (b). (b) CONTENTS.— For any fiscal year for which the overage The legislative clerk read as follows: (1) INCLUSIONS.—The special direct spend- is less than one-half of 1 percent of the direct The Senator from Kansas [Mr. BROWN- ing message shall include— spending target for that year, the procedures BACK], for himself, Mr. KOHL, and Mr. (A) an analysis of the variance in direct set forth in sections ll04 and ll05 shall MCCAIN, proposes an amendment numbered spending over the direct spending targets; not apply. 570. and SEC. 08. EFFECTIVE DATE. Mr. BROWNBACK. Mr. President, I (B) the President’s recommendations for This title shall apply to direct spending ask unanimous consent that reading of addressing the direct spending overages, if targets for fiscal years 1998 through 2002 and any, in the prior, current, or budget year. shall expire at the end of fiscal year 2002. the amendment be dispensed with. (2) ADDITIONAL MATTERS.—The President’s Mr. BROWNBACK. Mr. President, The PRESIDING OFFICER. Without recommendations may consist of any of the Senator KOHL and I have offered this objection, it is so ordered. following: The amendment is as follows: (A) Proposed legislative changes to recoup amendment. It is a very, very simple amendment. It just says if we are going At the end of the bill, add the following: or eliminate the overage for the prior, cur- rent, and budget years in the current year, to break the spending caps on this bill, TITLE —BUDGET CONTROL the budget year, and the 4 outyears. on this budget agreement that we’ve SEC. 01. SHORT TITLE; PURPOSE. (B) Proposed legislative changes to recoup told the American people is going to (a) SHORT TITLE.—This title may be cited or eliminate part of the overage for the balance the budget, if we’re going to as the ‘‘Bipartisan Budget Enforcement Act prior, current, and budget year in the cur- break the spending limits on it, we of 1997’’. rent year, the budget year, and the 4 out- have to vote on it. And we have to vote (b) PURPOSE.—The purpose of this title is— years, accompanied by a finding by the (1) to ensure a balanced Federal budget by President that, because of economic condi- and pass that by a 60-vote margin. fiscal year 2002; tions or for other specified reasons, only That’s it. (2) to ensure that the Bipartisan Budget some of the overage should be recouped or The President has to say how he is Agreement is implemented; and eliminated by outlay reductions or revenue going to get us to a balanced budget. If (3) to create a mechanism to monitor total increases, or both. we’re going to break that cap, he has costs of direct spending programs, and, in (C) A proposal to make no legislative to say how he is going to get us to a the event that actual or projected costs ex- changes to recoup or eliminate any overage, balanced budget; if we’re going to ceed targeted levels, to require the President accompanied by a finding by the President break that spending cap, he has to say and Congress to address adjustments in di- that, because of economic conditions or for where we’re going to make the spend- rect spending. other specified reasons, no legislative SEC.—02. ESTABLISHMENT OF DIRECT SPENDING changes are warranted. ing cuts, and we have to vote if we are TARGETS. (c) PROPOSED SPECIAL DIRECT SPENDING going to break it. (a) IN GENERAL.—The initial direct spend- RESOLUTION.—If the President recommends I think this is the least we can do for ing targets for each of fiscal years 1998 reductions consistent with subsection the American people. It says, ‘‘Folks,

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00008 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6677 we meant it when we said we were [Rollcall Vote No. 145 Leg.] ‘‘ENFORCEMENT OF BALANCED BUDGET IN THE going to balance the budget. We meant YEAS—57 SENATE ‘‘SEC. 315. (a) POINT OF ORDER.—It shall not it when we said we’re going to balance Abraham Frist McCain it by the year 2002.’’ And if we are Allard Gorton McConnell be in order in the Senate to consider any res- going to break it, we’ve got to break it Ashcroft Gramm Murkowski olution or bill (or amendment, motion, or Bennett Grams Nickles conference report on such resolution or bill) by a 60-vote margin. Bond Grassley Robb that provides or would cause a deficit (as de- I yield the remainder of my time to Brownback Gregg Roberts termined for purposes of the Bipartisan Senator KOHL. Burns Hagel Roth Budget Agreement of May 16, 1997) for fiscal Campbell Hatch Santorum year 2002 or any fiscal year thereafter. Mr. KOHL. Thank you. Chafee Helms Sessions ‘‘(b) WAIVER AND SUSPENSION.—This section Mr. President, I also am a supporter Coats Hutchinson Shelby Cochran Hutchison Smith (NH) may be waived or suspended in the Senate of this amendment. What it simply Collins Inhofe Smith (OR) only by the affirmative vote of three-fifths says is that we are going to do what we Coverdell Jeffords Snowe of the Members, duly chosen and sworn. This set out to do, which is to balance the Craig Kempthorne Specter section shall be subject to the provisions of budget, and, if we go over it in any D’Amato Kohl Stevens section 258 of the Balanced Budget and DeWine Kyl Thomas year, then we are going to have to de- Emergency Deficit Control Act of 1985. Domenici Lott Thompson ‘‘(c) APPEALS.—Appeals in the Senate from cide how we are going to reduce that Enzi Lugar Thurmond the decisions of the Chair relating to any spending to be sure we stay on target Faircloth Mack Warner provision of this section shall be limited to 1 to get the budget balanced over the NAYS—43 hour, to be equally divided between, and con- next several years. That is all this Akaka Feingold Levin trolled by, the appellant and the manager of does. It is not a sequester. Nobody Baucus Feinstein Lieberman the bill or joint resolution, as the case may should fear that. But it is simply an Biden Ford Mikulski be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and enforcement mechanism which is nec- Bingaman Glenn Moseley-Braun Boxer Graham Moynihan sworn, shall be required in the Senate to sus- essary. Breaux Harkin Murray tain an appeal of the ruling of the Chair on Mr. LAUTENBERG. Mr. President, Bryan Hollings Reed a point of order raised under this section. Bumpers Inouye Reid ‘‘(d) DETERMINATION OF BUDGET LEVELS.— this amendment is a fast-track ticket Byrd Johnson Rockefeller For purposes of this section, the levels of to deep cuts in Medicare and Medicaid. Cleland Kennedy Sarbanes new budget authority, outlays, and revenues It would essentially create a cap for Conrad Kerrey Torricelli for a fiscal year shall be determined on the these and other essential mandatory Daschle Kerry Dodd Landrieu Wellstone basis of estimates made by the Committee programs like the Medicare and Med- Dorgan Lautenberg Wyden on the Budget of the Senate.’’. icaid. Durbin Leahy (b) PRESIDENT’S BUDGET.—Section 1105(f) of title 31, United States Code, is amended by Mr. President, we ought not punish The PRESIDING OFFICER. On this the people who are on Medicaid or adding at the end the following: ‘‘The budget vote, the yeas are 57, the nays are 43. shall also be prepared in a manner that does Medicare just because these programs Three-fifths of the Senators duly cho- not cause a deficit for fiscal year 2002 or any grow faster than a particular rate. sen and sworn not having voted in the fiscal year thereafter.’’. Sometimes growth in these programs affirmative, the motion is not agreed Mr. FRIST. Mr. President, this could be good. to. The point of order is sustained and amendment, submitted on behalf of For example, the first reconciliation the amendment falls. Senators CONRAD, SESSIONS, ABRAHAM, bill includes money to recruit 3 million Mr. MOYNIHAN. Mr. President, I and myself evolves from a simple prin- uninsured Medicaid-eligible children to move to reconsider the vote. ciple, that is, once we balance the sign up for the program. If this hap- Mr. LOTT. I move to lay that motion budget, which we will do by 2002, let us pens, obviously Medicaid spending is on the table. keep it in balance thereafter. The going to increase. But the question is, The motion to lay on the table was amendment has two key provisions. What do we want to do? Do we want to agreed to. No. 1, establishes a 60-vote point of take care of those kids or don’t we? AMENDMENT NO. 571 order against any bill or resolution This would not be a good reason to cut (Purpose: To establish an enforcement mech- that will increase the deficit in the the program. This is a dangerous gim- anism in the Senate to ensure a balanced year 2002 or any year thereafter, and, mick. We can balance the budget with- budget beginning with fiscal year 2002 and No. 2, requires the President to submit out it. Furthermore, we ought not ac- to require the President to submit bal- a balanced budget every year in 2002 cept an amendment that could force anced budgets) and thereafter. quick, drastic cuts in Medicare and The PRESIDING OFFICER. Under The amendment does provide excep- Medicaid. the previous order, the Senator from tions in the event of war or recession. I urge my colleagues to oppose this Tennessee is recognized to offer an The amendment is consistent with the amendment to protect Medicare and amendment on which there is 2 min- bipartisan balanced budget agreement. Medicaid. utes of debate equally divided. I reserve the remainder of my time. Mr. LAUTENBERG addressed the Mr. President, I raise a point of order May we have order in the Senate so Chair. that the pending amendment is extra- we may proceed with the business of The PRESIDING OFFICER. The Sen- neous and violates section 313(b)(1)(A) the day. ator from New Jersey. of the Congressional Budget Act. The clerk will report the amendment. Mr. LAUTENBERG. I am strongly Mr. BROWNBACK. Mr. President, I The assistant legislative clerk read opposed to this amendment. It creates make a motion to waive the Budget as follows: a 60-vote point of order against any Act with respect to my amendment, The Senator from Tennessee [Mr. FRIST], budget resolution that shows a unified and I ask for the yeas and nays. for himself, Mr. CONRAD, Mr. ABRAHAM, and deficit after the year 2002. We are all The PRESIDING OFFICER. Is there a Mr. SESSIONS, proposes an amendment num- committed to protecting against the sufficient second question? bered 571. rising deficit. This amendment, how- There is a sufficient second. Mr. FRIST. Mr. President, I ask ever, means that next year even a mod- The yeas and nays were ordered. unanimous consent that reading of the est change in CBO’s long-term eco- amendment be dispensed with. nomic forecast could trigger the need VOTE ON MOTION TO WAIVE THE BUDGET ACT The PRESIDING OFFICER. Without for deep and hurtful cuts. It would be The PRESIDING OFFICER. The objection, it is so ordered. outrageous to cut Medicare or Social question occurs on the motion to waive The amendment is as follows: Security just because CBO changes its the Budget Act. The yeas and nays guess about what the economy will have been ordered. The clerk will call At the appropriate place in the ll, add the following: look like in 5 years. CBO cannot even the roll. SEC. . ENFORCEMENT OF BALANCED BUDGET. predict what the deficit is going to The legislative clerk called the roll. (a) IN THE SENATE.—Title III of the Con- look like in the next 5 months, never The yeas and nays resulted— yeas 57, gressional Budget Act of 1974 is amended by mind 5 years. Their recent record is ab- nays 43, as follows: adding at the end the following: solutely abysmal. This amendment

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00009 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6678 CONGRESSIONAL RECORD — SENATE June 27, 1997 also requires that Social Security sur- Kerry Mikulski Rockefeller Budget and Emergency Deficit Control Act pluses be used in calculating the deficit Landrieu Moseley-Braun Sarbanes of 1985, as added by section , shall be con- Lautenberg Moynihan Torricelli sidered to be in order for purposes of section and could make it impossible to use Leahy Murray Wellstone 202 of House Concurrent Resolution 67 (104th those surpluses in the future to pay for Levin Reed Wyden Congress). Social Security benefits of retiring Lieberman Reid baby boomers. The PRESIDING OFFICER. On this Mr. ABRAHAM. This amendment is The PRESIDING OFFICER. The Sen- vote the yeas are 59, the nays are 41. offered on behalf of myself, Senator ator’s time has expired Three-fifths of the Senators duly cho- BROWNBACK, Senator ENZI, Senator Mr. LAUTENBERG. I urge my col- sen and sworn not having voted in the INHOFE, Senator GRAMS, and Senator leagues to oppose this dangerous and affirmative, the motion is rejected. SESSIONS. radical amendment and I raise a point The point of order is sustained, and the At this time our Nation’s tax rate is of order—— amendment falls. the highest percentage of the national The PRESIDING OFFICER. The Mr. LAUTENBERG. Mr. President, I income it has ever been in history. As point of order cannot be raised until move to reconsider the vote. we all know in this Chamber, our na- the Senator’s time has been used up. Mr. MOYNIHAN. I move to lay that tional debt is too high. Recently it was motion on the table. The Senator from Tennessee. discovered by the Congressional Budget The motion to lay on the table was Mr. FRIST. Mr. President, I yield to Office that they had underestimated agreed to. the revenues coming into our system Senator DOMENICI. AMENDMENT NO. 538 The PRESIDING OFFICER. The Sen- by some $225 billion, and we promptly (Purpose: To ensure that future revenue ator from New Mexico. spent a very substantial amount of windfalls to the federal Treasury are re- those dollars on new Federal programs. Mr. DOMENICI. I think this is a very served for tax or deficit reduction—not ad- This amendment is very simple. It good idea. As a matter of fact, if you ditional spending) says if the revenues which are received look carefully at the agreement we en- The PRESIDING OFFICER. Under by the Treasury in the next 5 years ex- tered into with the White House, it the previous order, the Senator from ceed those that are projected, we ought clearly says we are not supposed to do Michigan is recognized to offer an to have a lockbox and those dollars anything that takes the budget out of amendment on which there is 2 min- ought to either be spent on tax cuts or balance in the year 2002 and beyond. I utes of debate, equally divided. We on reducing the deficit, and not new think perhaps the Senator is just help- need to have order in the Senate. The Federal spending. ing us try to enforce that agreement. Senate will please come to order. Mr. President, a coalition of taxpayer The PRESIDING OFFICER. The Sen- Mr. ABRAHAM. Mr. President, I call groups including the National Tax- ator’s time has expired. up my amendment No. 538. payer’s Union, the National Tax Limi- Mr. LAUTENBERG. I now, Mr. Presi- The OFFICER. The clerk will report. tation Committee, Empower America, dent, raise the point of order that the The legislative clerk read as follows: Americans for Hope, Growth and Op- amendment violates section The Senator from Michigan [Mr. ABRA- portunity, and others have endorsed 313(b)(1)(A) of the Congressional Budget HAM], for himself, Mr. BROWNBACK, Mr. KYL, ESSIONS NZI NHOFE my bill to require that any tax revenue Act. Mr. S , Mr. E , Mr. I , and Mr. GRAMS, proposes an amendment numbered windfall be used for tax cuts or deficit Mr. FRIST. I move to waive the 538. reduction, not new government spend- Budget Act with respect to my amend- Mr. ABRAHAM. Mr. President, I ask ing. I ask unanimous consent that a ment. I ask for the yeas and nays. unanimous consent that reading of the statement by Al Cors, Jr., of the Na- The PRESIDING OFFICER. Is there a amendment be dispensed with. tional Taxpayer’s Union be entered in sufficient second? There is a sufficient The PRESIDING OFFICER. Without the RECORD immediately following my second. objection, it is so ordered. remarks: The yeas and nays were ordered. The amendment is as follows: There being no objection, the mate- VOTE ON MOTION TO WAIVE THE BUDGET ACT SEC. . ECONOMIC GROWTH PROTECTION. rial was ordered to be printed in the The PRESIDING OFFICER. The Section 252 of the Balanced Budget and RECORD, as follows: Emergency Deficit Control Act of 1985 (2 question is on agreeing to the motion NATIONAL TAXPAYERS UNION, U.S.C. 902) is amended by adding at the end to waive the Budget Act. The yeas and Alexandria, VA, June 27, 1997. the following: nays have been ordered. The clerk will Any amendment that would dedicate ‘‘(f) ECONOMIC GROWTH PROTECTION.— call the roll. ‘‘(1) ESTIMATE.—OMB shall, for any ‘‘windfall’’ revenue to new spending, rather The yeas and nays resulted—yeas 59, amount by which revenues for a budget year than to additional tax relief and/or deficit nays 41, as follows: and any out-years through fiscal year 2002 reduction, will be scored heavily as an antitaxpayer amendment on our annual NTU [Rollcall Vote No. 146 Leg.] exceed the revenue target absent growth, es- timate the excess and include such estimate Rating of Congress. YEAS—59 as a separate entry in the report prepared AL CORS, Jr., Abraham Feingold McCain pursuant to subsection (d) at the same time Director, Government Relations, Allard Frist McConnell as the OMB sequestration preview report is National Taxpayers Union. Ashcroft Gorton Murkowski issued. Bennett Gramm Nickles ‘‘(2) INCLUSION IN SCORECARD.—OMB shall THE NATIONAL Bond Grams Robb Brownback Grassley include the amount of any change in reve- TAX-LIMITATION COMMITTEE, Roberts Washington, DC, June 25, 1997. Burns Gregg Roth nues determined pursuant to paragraph (1) as Campbell Hagel Santorum a deficit decrease under this part in the esti- PRO-TAXPAYER GROUPS URGE CONGRESS TO Chafee Hatch Sessions mates and reports required by subsection (b) ACT NOW ON FUTURE TAX CUTS Coats Helms Shelby of section 254 unless such amount is offset by Cochran Hutchinson WASHINGTON, DC.—The National Tax-Limi- Smith (NH) legislation enacted in compliance with para- Collins Hutchison tation Committee joined by Empower Amer- Conrad Inhofe Smith (OR) graph (3). ica, National Taxpayers Union, Americans ‘‘(3) USE OF ADJUSTMENT.—An amount not Coverdell Jeffords Snowe for Hope, Growth, and Opportunity, Citizens Specter to exceed the amount of deficit decrease de- Craig Kempthorne for a Sound Economy, and Citizens for Budg- Stevens termined under paragraph (2) may be offset D’Amato Kohl et Reform sent a letter to Congress urging DeWine Kyl Thomas by legislation decreasing revenues. action in the budget legislation to reserve Domenici Lott Thompson ‘‘(4) REVENUE TARGET ABSENT GROWTH.—For future revenue windfalls for tax cuts for all Enzi Lugar Thurmond purposes of this subsection, the revenue tar- Americans. The text of the letter follows: Faircloth Mack Warner get absent growth is— You have a great opportunity to act right NAYS—41 ‘‘(A) for fiscal year 1998, $1,601,800,000,000; ‘‘(B) for fiscal year 1999, $1,664,200,000,000; now to secure the first down-payment on fur- Akaka Byrd Glenn ‘‘(C) for fiscal year 2000, $1,728,100,000,000; ther tax relief for the American people. You Baucus Cleland Graham ‘‘(D) for fiscal year 2001, $1,805,100,000,000; can do this simply by enacting a firm rule Biden Daschle Harkin and during budget reconciliation that sets aside, Bingaman Dodd Hollings ‘‘(E) for fiscal year 2002, $1,890,400,000,000.’’ Boxer Dorgan Inouye or ‘‘sequesters’’, any revenues above the FY Breaux Durbin Johnson SEC. . CONGRESSIONAL PAY-AS-YOU-GO 1998 budget resolution projections for further Bryan Feinstein Kennedy Legislation decreasing revenues in compli- tax relief for all Americans. While some of Bumpers Ford Kerrey ance with section 252(f)(3) of the Balanced these ‘‘windfall’’ revenues might possibly be

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00010 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6679 applied to faster deficit reduction, it is vi- [From the Journal of Commerce, June 27, tax burden on Americans is the highest tally important that the bulk of them go di- 1997] ever—31.7%. According to the National Tax- rectly to taxpayers, and never get within the AMERICA NEEDS A TAX CUT payer Union, the average American family grasp of the big-government spending ma- (By Spencer Abraham) now pays almost 40% of its income in state, chine. local and federal taxes. And while we address It is always easier to spend other people’s There are a lot of good ideas floating money than to give it back, and that’s the the tax burden in a small, incremental way around on how to do this, but the key is to lesson of the budget agreement between Con- with this budget resolution. I believe we look out for the interests of the taxpayer gress and the Clinton administration. It is need to tilt the playing field away from more first, last, and always. We have plenty of also the major obstacle confronting those of spending and toward more tax reduction. time to think about the best ways to provide us who advocate reducing the record tax bur- How does this proposal work? First, it for future debt repayment, additional tax den shouldered by American taxpayers. locks the expected revenue estimates into cuts, and major tax reform in the next After four months of negotiations, and lit- law. Then it requires the Office of Manage- millenium. But our immediate and urgent erally just hours before a self-imposed dead- ment and Budget to compare its new revenue goal must be to unambiguously lock in any line, the Congressional Budget Office pro- estimates each year to those included in the ‘‘bonus’’ revenues to help the hard-pressed vided budget negotiators with a gift of sorts. agreement. If the budget agreement esti- taxpayer. It found that the federal deficit in 1997 would mates are accurate, nothing happens. But if be much less than previously reported. In- the progrowth tax cuts we adopt later this We are concerned that some proposals stead of $112 billion, the deficit would be year result in higher than expected revenues, being considered merely put the taxpayer a closer to $67 billion. Moreover, the CBO sug- those revenues are reserved for tax cut legis- distant third, delay their effects for many gested that this $45 billion windfall would ex- lation—legislation which is exempt from all years, and create a built-in bias towards tend over the next five years, reducing the the budget points of order and other obsta- higher taxes, not lower (such as requiring total deficit by $245 billion. cles that currently stand between American revenue growth to outstrip spending growth This ‘‘windfall’’ is a mixed blessing. The families and tax cuts. If Congress chooses on a year-to-year basis). The last thing the economy’s continued strong performance not to reduce revenues, then the windfall is Federal government needs is yet another in- means more jobs and opportunities for Amer- reserved for deficit reduction. centive to raise taxes. Furthermore attempt- icans—as well as additional revenues to the The Senate gave this proposal its prelimi- ing to build up special trust funds within the government. But it brought renewed admin- nary approval on May 23 by voting for my government rather than provide tax relief istration demands for even higher levels of Sense of the Senate amendment to the budg- merely gives those ‘‘trust’’ accounts pro- spending in 1998 and beyond. Apparently, all et. We should now put into effect the rules tected status in the fiscal policy debate—not sorts of spending issues that had previously that will help make tax cuts a reality. sound fiscal policy, and certainly not pro- been closed were reopened following the The budget agreement takes a small, $85 taxpayer. CBO’s surprise announcement. billion step down the long road toward re- The pending tax bill represents an honor- One issue that remained closed, however, ducing the tax burden on American families. able and diligent effort to give taxpayers a was that of tax cuts. While spending for nu- This cut should be just the beginning. first installment of tax relief, and start mov- merous programs was increased following The PRESIDING OFFICER. The Sen- ing right now to ratchet down the percent of the CBO’s announcement, the net tax cut re- mained fixed at $85 billion. The result was a ator from New Jersey. family income consumed by taxes. We know Mr. LAUTENBERG. Mr. President, that this budget process has been a difficult budget plan that would increase federal one, and we want to work with you as it con- spending by 17 percent over the next five this amendment says that if revenues tinues to unfold, particularly in what prom- years, yet reduce tax collections by less than exceed current projections, all the sav- ises to be a very tough ‘‘end-game’’ negotia- 1 percent of the total tax burden over that ings can only be plowed into more tax tion. We want the best possible deal for the time. breaks; if you have a surplus, back into American taxpayer, and we want to ensure Along with a number of my colleagues, I the tax breaks, not defense, not edu- have proposed legislation to improve this that this is a true ‘‘taxpayer relief act’’. cation, only more tax breaks. Even if Seizing this unique opportunity to point the deal. It would reserve any unexpected in- crease in tax revenues for tax cuts and/or the deficit were actually going up due way to future tax relief is one of the best to increased spending, we would still be possible ways to do that. deficit reduction. To the extent tax revenues Jack Kemp, Empower America; Lewis K. under this budget agreement exceed projec- able to use all unexpected revenues Uhler, National Tax Limitation Com- tions by the Joint Committee on Taxation, only for more tax breaks. mittee; David Keating, National Tax- those revenues should go to the people, not That is fiscally irresponsible. It re- payers Union; Steve Forbes, Americans additional government spending. moves power and flexibility from the This is not an idle suggestion. For years, for Hope, Growth, and Opportunity; tax cut advocates like me have argued that congressional majority and it is ter- Matt Kibbe, Citizens for a Sound Econ- federal revenue estimates ignore the dy- rible policy. I urge my colleagues to omy; Harrison Fox, Citizens for Budget namic effects that pro-growth tax reforms oppose the amendment. Reform. have on the economy and the budget. Incen- Mr. President, I raise a point of order Mr. ABRAHAM. I yield to the Sen- tives for economic growth and job creation— that the pending amendment is extra- ator from Minnesota to comment fur- such as reduced capital gains taxes and in- neous and violates section 313(b)(1)(A) ther on this legislation. creased allowable IRAs—will bring higher of the Congressional Budget Act. economic growth over the next five years Mr. ABRAHAM. Mr. President, I Mr. GRAMS. Mr. President, I rise to and increase, not decrease, revenues to the move to waive the Budget Act with re- strongly support the amendment of- federal treasury. spect to this amendment. fered by Senator ABRAHAM. After all, if History is on our side in this debate. For the revenues do increase, it is going to example, between 1978 and 1985, while the top Mr. President, I ask for the yeas and marginal rate on capital gains was cut al- come because of the hard work of the nays. most in half—from 35% to 20%—total annual The PRESIDING OFFICER. Is there a American people. While spending levels federal receipts from the tax almost tripled. on Federal programs have already been sufficient second? They rose from $9.1 billion to $26.5 billion an- There is a sufficient second. set, it only makes sense, if the reve- nually. Conversely, when Congress raised the The yeas and nays were ordered. nues increase, they should go either to capital gains rate in 1986, revenues from that tax relief to those hard-working Amer- tax actually fell. VOTE ON MOTION TO WAIVE THE BUDGET ACT ican families or to deficit reduction. Economists across the board predict that The PRESIDING OFFICER. The cutting the capital gains rate will bring a They should not go to enlarge the size question occurs on agreeing to the mo- revenue windfall for the Treasury. Economic tion to waive. of Government. The era of big Govern- expert Larry Kudlow predicts that another ment is far from over. This amendment broad capital gains tax cut could produce a The yeas and nays have been ordered. would help protect future taxpayers. $90 billion tax dividend next year, assuming The clerk will call the roll. The legislative clerk called the roll. Mr. ABRAHAM. Mr. President, I ask only 15% of investors realize their stock market gains from three years ago. These The yeas and nays resulted, yeas 53, unanimous consent that my op-ed arti- windfalls should be given back to the tax- nays 47, as follows: cle in today’s Journal of Commerce on payers. [Rollcall Vote No. 147 Leg.] the economic growth dividend protec- As John F. Kennedy noted, ‘‘It is a para- tion amendment be printed at this doxical truth that tax rates are too high YEAS—53 point in the RECORD. today and tax revenues are too low, and the Abraham Brownback Collins soundest way to raise the revenues in the Allard Burns Coverdell There being no objection, the mate- long run is to cut taxes now.’’ Ashcroft Campbell Craig rial was ordered to be printed in the Why do Americans need a tax cut? The Bennett Coats D’Amato Bond Cochran DeWine RECORD, as follows: President’s own economists report that the

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00011 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6680 CONGRESSIONAL RECORD — SENATE June 27, 1997 Domenici Inhofe Santorum divided in the usual form, except that after what I have just read, without the Enzi Jeffords Sessions the 15th hour of consideration of a bill, time time’s being charged. Faircloth Kempthorne Shelby on all amendments or motions shall be lim- Frist Kyl The PRESIDING OFFICER. Without Smith (NH) ited to 20 minutes; Gramm Lott Smith (OR) objection, it is so ordered. Grams Lugar ‘‘(D) no first degree amendment may be Snowe proposed after the 15th hour of consideration Mr. BYRD. I repeat: Grassley Mack Specter of a bill unless it has been submitted to the After no more than thirty hours of consid- Gregg McCain Stevens Hagel McConnell eration— Thomas Journal Clerk prior to the expiration of the Hatch Murkowski Thompson 15th hour; Helms Nickles I am reading from the present cloture Thurmond ‘‘(E) no second degree amendment may be Hutchinson Roberts rule— Warner proposed after the 20th hour of consideration Hutchison Roth of a bill unless it has been submitted to the After no more than thirty hours of consid- NAYS—47 Journal Clerk prior to the expiration of the eration of the measure, motion, or other matter on which cloture has been invoked, Akaka Feingold Leahy 20th hour; and the Senate shall proceed, without any fur- Baucus Feinstein Levin ‘‘(F) After no more than thirty hours of Biden Ford Lieberman consideration of the measure, the Senate ther debate on any question, to vote on the Bingaman Glenn Mikulski shall proceed, without any further debate on final disposition thereof— Boxer Gorton Moseley-Braun any question, to vote on the final disposition Meaning the final disposition of the Breaux Graham Moynihan thereof to the exclusion of all amendments reconciliation bill— Bryan Harkin Murray not then actually pending before the Senate Bumpers Hollings Reed to the exclusion of all amendments not then Byrd Inouye at that time and to the exclusion of all mo- Reid actually pending before the Senate at that Chafee Johnson tions, except a motion to table, or to recon- Robb time and to the exclusion of all motions, ex- Cleland Kennedy sider and one quorum call on demand to es- Rockefeller Conrad Kerrey tablish the presence of a quorum (and mo- cept a motion to table, or to reconsider and Daschle Kerry Sarbanes tions required to establish a quorum) imme- one quorum call on demand to establish the Torricelli Dodd Kohl diately before the final vote begins.’’. presence of a quorum (and motions required Dorgan Landrieu Wellstone to establish a quorum) immediately before Durbin Lautenberg Wyden The PRESIDING OFFICER. The Sen- the final vote begins. ator from West Virginia. The PRESIDING OFFICER. On this Mr. BYRD. Mr. President, the distin- Therefore, Mr. President, we do away vote, the yeas are 53, the nays are 47. guished Senator from New York, Mr. with this situation in which pandemo- Three-fifths of the Senators duly cho- nium reigns supreme and where scores MOYNIHAN, wrote a book titled ‘‘Pande- sen and sworn not having voted in the monium.’’ Milton, in ‘‘Paradise Lost,’’ of amendments remain to be acted affirmative, the motion is rejected. designated the Palace of Satan as pan- upon after the expiration of the time The point of order is sustained, and the demonium. Mr. President, what we on the reconciliation bill and people amendment falls. have seen going on here is pandemo- want to call those up—and they have a Mr. ROTH. Mr. President, I move to nium, and in light of what I have just right to call them up and get a vote reconsider the vote by which the mo- said, Senators can draw their own con- thereon. tion was rejected. clusion as to what I mean by that This amendment encourages Sen- Mr. MOYNIHAN. I move to lay that word. ators, if they want time to debate their motion on the table. This is a very important amendment amendments, to call them up at the be- The motion to lay on the table was to the reconciliation process. It ex- ginning of the debate, call them up agreed to. tends the overall time from 20 hours to early, when they will have time to ex- AMENDMENT NO. 572 30 hours. It reduces the time on any plain their amendments. But when we (Purpose: To extend the number of hours for amendment in the first degree to 30 reach that final 30th hour, under this debate on a reconciliation bill and make minutes. It reduces the time on any amendment language, which is already other improvements) second-degree amendment to 20 min- tried and true—it is in the cloture The PRESIDING OFFICER. Under utes. May I proceed for an additional 2 rule—we close all debate, all voting on the previous order, the Senator from minutes? amendments to the reconciliation bill West Virginia is recognized to offer an The PRESIDING OFFICER. Without with the exception of any amendment amendment on which there is 2 min- objection, it is so ordered. in the first degree and any amendment utes of debate equally divided. Mr. BYRD. After the first 15 hours in the second degree which may be The Senator from West Virginia. have expired, time on amendments in then pending. That is it. No more of Mr. BYRD. I thank the Chair. I send the first degree and in the second de- this vote-o-rama. to the desk an amendment, and I ask gree will be limited to 20 minutes each. The PRESIDING OFFICER. The Sen- that the amendment be read. I hope The amendment provides for 30 min- ator’s time has expired. that Senators will pay close attention. utes equally divided for debate on a Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER. The motion to reduce the time, which can The PRESIDING OFFICER. The Sen- clerk will report. be done now without any debate. It re- ator from New Mexico. The legislative clerk read as follows: quires unanimous consent for man- Mr. DOMENICI. Mr. President, we The Senator from West Virginia [Mr. agers of a reconciliation measure to have been discussing this proposal with BYRD] proposes an amendment numbered 572. yield back any time. At the present the distinguished Senator from West The amendment is as follows: time, they may yield time back with- Virginia, ‘‘we’’ being Senator LOTT and At the appropriate place, insert the fol- out unanimous consent. others. And I assume Senator LOTT will lowing: Now comes probably the most impor- speak in a moment to it however long SEC. . DEBATE ON A RECONCILIATION BILL. tant provision in the proposal. If Sen- he would like. Section 310(e)(2) of the Congressional ators will turn to page 19 in their rule But I say to the Senate, and as long Budget Act of 1974 is amended to read as fol- books. I will read the language from as Senator BYRD understands that we lows: the cloture rule: take this to conference with the idea ‘‘(2) For purposes of consideration of any that we will have to make sure—and I reconciliation bill reported under subsection After no more than thirty hours of consid- (b)— eration of the measure, motion, or other think he would agree—that it deserves ‘‘(A) debate, and all amendments thereto matter on which cloture has been invoked, some careful consideration. and debatable motions and appeals in con- the Senate shall proceed, without any fur- I had one thought that came to my nection therewith, shall be limited to not ther debate on any question, to vote on the mind, I say to Senator BYRD, as you more than 30 hours; final disposition thereof to the exclusion of proposed it. I was talking to Senator ‘‘(B) time on the bill may only be yielded all amendments not then actually pending before the Senate at that time and to the ex- GRAMM about it. I guess I am con- back by consent and a motion to further cerned that there might be a con- limit debate shall be debatable with debate clusion of all motions, except a motion to table. . . troversial amendment that is well- limited to 1⁄2 hour equally divided; ‘‘(C) time on amendments shall be limited Mr. DOMENICI. May we have order, known that by design could be pre- to 30 minutes to be equally divided in the Mr. President? cluded from ever getting offered. And I usual form and on any second degree amend- Mr. BYRD. Mr. President, I ask unan- think we ought to make sure that can- ment or motion to 20 minutes to be equally imous consent that I may again read not happen. I do not know how to do

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00012 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6681 that. I do not propose that this is not ment. The yeas and nays have been or- ‘‘(1) IN GENERAL.—Gross income shall not a valid and good approach. But I do dered. The clerk will call the roll. include qualified capital gain from the sale think that is an interesting issue. I was The legislative clerk called the roll. or exchange of any DC asset held for more than 5 years. just speaking with Senator GRAMM a The result was announced—yeas 92, ‘‘(2) SPECIAL 10 PERCENT RATE FOR DC AS- moment ago. nays 8, as follows: SETS ACQUIRED IN 1998.— The PRESIDING OFFICER. The Sen- [Rollcall Vote No. 148 Leg.] ‘‘(A) IN GENERAL.—In the case of any DC ator’s time has expired. YEAS—92 asset acquired during calendar year 1998— ‘‘(i) paragraph (1) shall not apply to any Mr. DOMENICI. I ask unanimous Abraham Feinstein Lott qualified capital gain from the sale or ex- consent for one additional minute. Akaka Ford Lugar The PRESIDING OFFICER. Without Baucus Frist Mack change of such asset, and Bennett Glenn McConnell ‘‘(ii) the qualified capital gain described in objection, it is so ordered. clause (i) shall be treated as adjusted net Mr. DOMENICI. I think there would Biden Gorton Mikulski Bingaman Graham Moseley-Braun capital gain described in section 1(h)(1)(D) have to be a lot of getting together of Bond Grams Moynihan for the taxable year of the sale or exchange both sides of the aisle to preclude that Boxer Grassley Murkowski (and the amount under section 1(h)(1)(D)(i) amendment from coming up, but it Breaux Gregg Murray for such taxable year shall be increased by Bryan Hagel Nickles might happen. So from my standpoint, Bumpers Harkin the amount of such gain). Reed Burns Hatch ‘‘(B) SPECIAL RULE.—For purposes of sub- I say to Senators, I think this is a dra- Reid Byrd Helms paragraph (A), any DC asset the basis of matic improvement, provided that the Robb Campbell Hollings which is determined in whole or in part by Roberts Senator understands that we have to Chafee Hutchinson Rockefeller reference to the basis of an asset to which look at it carefully if it is accepted Cleland Hutchison subparagraph (A) applies shall be treated as Coats Inhofe Roth here today. Sarbanes a DC asset acquired during calendar year Mr. BYRD. I do understand. I hope Cochran Inouye Collins Jeffords Sessions 1998. that the Members who go to conference Conrad Johnson Shelby On page 181, between lines 5 and 6, insert with the House will try to make it Coverdell Kempthorne Smith (NH) the following: D’Amato Kennedy Smith (OR) ‘‘SEC. 1400C. TRUST FOR DC SCHOOLS. clear to the House that we Senators ex- Snowe pect to decide on the amendments and Daschle Kerrey ‘‘(a) CREATION OF FUND.—There is estab- DeWine Kerry Specter lished in the Treasury of the United States a the rules of the Senate. Stevens Dodd Kohl trust fund to be known as the ‘Trust Fund Domenici Kyl Thomas Mr. MOYNIHAN. Yes, sir. for DC Schools’, consisting of such amounts Mr. LOTT addressed the Chair. Dorgan Landrieu Thompson Durbin Lautenberg Thurmond as may be appropriated or credited to the The PRESIDING OFFICER. The ma- Enzi Leahy Torricelli Fund as provided in this section. jority leader is recognized. Faircloth Levin Warner ‘‘(b) TRANSFER TO TRUST FUND OF AMOUNTS Mr. LOTT. Mr. President, I yield my- Feingold Lieberman Wyden EQUIVALENT TO CERTAIN TAXES.— self leader time so I may speak briefly NAYS—8 ‘‘(1) IN GENERAL.—There are hereby appro- priated to the Trust Fund for DC Schools on this. It will be briefly. Allard Craig Santorum I have been talking to Senator amounts equivalent to the applicable per- Ashcroft Gramm Wellstone centage of revenues received in the Treasury Brownback McCain DASCHLE about this and working with from income taxes imposed by this chapter Senator BYRD. I think we had a good The amendment (No. 572) was agreed for any taxable year beginning after Decem- start last night on how to address this to. ber 31, 1997, and before January 1, 2008, on in- problem, and it has been improved Mr. ROTH. I move to reconsider the dividual taxpayers who are residents of the today. I think we are close to having vote. District of Columbia as of the last day of something that would really make this Mr. MOYNIHAN. I move to lay it on such taxable year. ‘‘(2) APPLICABLE PERCENTAGE.—For pur- process fairer and better. the table. I suggest that we accept this on a poses of paragraph (1), the term ‘applicable The motion to lay on the table was percentage’ means the percentage which the voice vote, and we go to conference agreed to. Secretary determines necessary to result in with it and continue to make sure we AMENDMENT NO. 522, AS MODIFIED $5,000,000 being appropriated to the Trust have thought through every possible (Purpose: To provide for a trust fund for Fund under paragraph (1) for each of the cal- exigency of this change. I think it is District of Columbia school renovations) endar years 1998 through 2007. ‘‘(3) TRANSFER OF AMOUNTS.—The amounts real progress. And I suggest we accept Mr. ROTH. Mr. President, I ask that it and take it to conference. appropriated by paragraph (1) shall be trans- the Senate resume consideration of ferred at least monthly from the general Mr. DASCHLE addressed the Chair. Jeffords amendment No. 522. On behalf The PRESIDING OFFICER. The mi- fund of the Treasury to the Trust Fund for of the Senator from Vermont, I send a DC Schools on the basis of estimates made nority leader. modification to the desk which we are by the Secretary of the amounts referred to Mr. DASCHLE. Mr. President, I will prepared to accept. in such paragraph. Proper adjustments shall be very brief with my leader time. The PRESIDING OFFICER. The reg- be made in the amounts subsequently trans- I congratulate the Senator from West ular order is the recognition of the ferred to the extent prior estimates were in Virginia. No one knows the process and excess of or less than the amounts required Senator from Massachusetts. Is there to be transferred. the rules better than he does. And he objection? has worked with all of us in an effort ‘‘(c) EXPENDITURES FROM FUND.— Mr. NICKLES. That is not correct. ‘‘(1) IN GENERAL.—Amounts in the Trust to try to accommodate the concerns Parliamentary inquiry. I think the Fund for DC Schools are hereby appro- that we have raised over the last cou- Senator sent an amendment from the priated, and shall be available without fiscal ple of days. He has done that. This may Senator from Vermont. It has not been year limitation, for payment by the Sec- not be the final product, but it puts us disposed of. retary of debt service on qualified DC school bonds. in a position to achieve a final product. Mr. ROTH. The amendment deals I hope that we can take the advice ‘‘(2) QUALIFIED DC SCHOOL BONDS.—The term with the subject of D.C. schools. and recommendation of the majority ‘qualified DC school bonds’ means bonds The PRESIDING OFFICER. Is there leader, pass it on a voice vote, and which— objection? Without objection, it is so ‘‘(A) are issued after March 31, 1998, by the allow this process to continue. ordered. District of Columbia to finance the construc- Mr. McCAIN. I object. The amendment (No. 522), as modi- tion, rehabilitation, and repair of schools The PRESIDING OFFICER. There is fied, is as follows: under the jurisdiction of the government of an objection. On page 164, in the matter between lines 16 the District of Columbia, and ‘‘(B) are certified by the District of Colum- Mr. McCAIN. I ask for the yeas and and 17, insert after the item relating to sec- bia Control Board as meeting the require- nays. tion 1400B the following: ments of subparagraph (A) after giving 60 The PRESIDING OFFICER. Is there a ‘‘Sec. 1400C. Trust Fund for DC schools.’’ sufficient second? days notice of any proposed certification to On page 173, line 10, strike ‘‘$75,000,000’’ and the Subcommittees on the District of Colum- There is a sufficient second. insert ‘‘$60,000,000’’. bia of the Committees on Appropriations of The yeas and nays were ordered. On page 174, strike lines 21 through 23, and the House of Representatives and the Senate. The PRESIDING OFFICER. The insert: ‘‘(d) REPORT.—It shall be the duty of the question is on agreeing to the amend- ‘‘(a) EXCLUSION.— Secretary to hold the Trust Fund for DC

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00013 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6682 CONGRESSIONAL RECORD — SENATE June 27, 1997 Schools and to report to the Congress each (1) in paragraph (1), by striking ‘‘$1.125 I hope that with this amendment we year on the financial condition and the re- cents per thousand (93.75 cents per thousand will be able to complete the job for sults of the operations of such Fund during on cigars removed during 1991 or 1992)’’ and working families in this country that the preceding fiscal year and on its expected inserting ‘‘$3.141 cents per thousand’’, and are unable to afford insurance today. condition and operations during the next fis- (2) by striking ‘‘equal to’’ and all that fol- Mr. NICKLES. Mr. President, I urge cal year. Such report shall be printed as a lows in paragraph (2) and inserting ‘‘equal to House document of the session of the Con- 35.59 percent of the price for which sold but my colleagues to vote no on Senator gress to which the report is made. not more than $83.75 per thousand.’’ KENNEDY’s amendment. I am bothered ‘‘(e) INVESTMENT.— (c) CIGARETTE PAPERS.—Section 5701(c) of by the amendment to some extent. I ‘‘(1) IN GENERAL.—It shall be the duty of the Internal Revenue Code of 1986 is amended heard the Senator say the administra- the Secretary to invest such portion of the by striking ‘‘0.75 cent (0.625 cent on cigarette tion supports the amendment. The ad- Trust Fund for DC Schools as is not, in the papers removed during 1991 or 1992)’’ and in- ministration agreed to $16 billion for Secretary’s judgment, required to meet cur- serting ‘‘2.09 cents’’. the so-called KIDCARE Program. That rent withdrawals. Such investments may be (d) CIGARETTE TUBES.—Section 5701(d) of was the agreement. And then to see a made only in interest-bearing obligations of the Internal Revenue Code of 1986 is amended the United States. For such purpose, such by striking ‘‘1.5 cents (1.25 cents on cigarette letter by the administration that says obligations may be acquired— tubes removed during 1991 or 1992)’’ and in- now they support this amendment, ‘‘(A) on original issue at the issue price, or serting ‘‘4.18 cents’’. that is ridiculous. ‘‘(B) by purchase of outstanding obliga- (e) SMOKELESS TOBACCO.—Section 5701(e) of The Finance Committee increased tions at the market price. the Internal Revenue Code of 1986 is amend- from $16 billion to $24 billion, more ‘‘(2) SALE OF OBLIGATIONS.—Any obligation ed— than I think is necessary for the pro- acquired by the Trust Fund for DC Schools (1) in paragraph (1), by striking ‘‘36 cents gram. The Finance Committee said, may be sold by the Secretary at the market (30 cents on snuff removed during 1991 or ‘‘That is all we will do.’’ Now we see price. 1992)’’ and inserting ‘‘$1.00’’, and the administration say they support ‘‘(3) INTEREST ON CERTAIN PROCEEDS.—The (2) by striking ‘‘12 cents (10 cents on chew- interest on, and the proceeds from the sale ing tobacco removed during 1991 or 1992)’’ in this. When is a deal a deal? We can’t or redemption of, any obligations held in the paragraph (2) and inserting ‘‘33.5 cents’’. trust this administration any more Trust Fund for DC Schools shall be credited (f) PIPE TOBACCO.—Section 5701(f) of the In- than a day. That is beyond belief. to and form a part of the Trust Fund for DC ternal Revenue Code of 1986 is amended by So now we have a program. Senator Schools.’’ striking ‘‘67.5 cents (56.25 cents on pipe to- KENNEDY introduced it as a $20 billion The PRESIDING OFFICER. The bacco removed during 1991 or 1992)’’ and in- program. We are now financing it at $24 question is on agreeing to the amend- serting ‘‘$1.88’’. billion, 120 percent of what he origi- (g) IMPOSITION OF EXCISE TAX ON MANUFAC- ment numbered 522. nally asked for. He should say, ‘‘Hey, TURE OR IMPORTATION OF ROLL-YOUR-OWN TO- we won,’’ and now he comes back and The amendment (No. 522), as modi- BACCO.— says he wants another $12 billion, to fied, was agreed to. (1) IN GENERAL.—Section 5701 (relating to Mr. ROTH. I move to reconsider the rate of tax) is amended by redesignating sub- make it $36 billion. The administration vote. section (g) as subsection (h) and by inserting agreed to $16 billion. Now they are try- Mr. MOYNIHAN. I move to lay it on after subsection (f) the following new sub- ing to make it $36 billion. Taxpayers the table. section: cannot afford it. The motion to lay on the table was ‘‘(g) ROLL-YOUR-OWN TOBACCO.—On roll- Finally, the net tax cut, if this your-own tobacco, manufactured in or im- agreed to. amendment is passed, will be 60, not 85. ported into the United States, there shall be It will be 60. AMENDMENT NO. 573 imposed a tax of $1.74 cents per pound (and a The PRESIDING OFFICER. The Sen- (Purpose: To increase the excise tax on ciga- proportionate tax at the like rate on all frac- tional parts of a pound).’’ ator from New Mexico. rettes by 43 cents per pack and increase Mr. DOMENICI. Did you say the ad- the tax on other tobacco products by a pro- On page 349, between lines 2 and 3, insert portionate amount, and direct the following: ministration favors this? $12,000,000,000 of the resulting revenues be (k) APPROPRIATION OF PORTION OF RESULT- The PRESIDING OFFICER. All time applied to the children’s health initiative) ING REVENUES FROM INCREASE IN TAXES ON has expired. The PRESIDING OFFICER. Under TOBACCO PRODUCTS TO CHILDREN’S HEALTH Mr. DOMENICI. I ask for 30 seconds, the previous order, the Senator from INSURANCE INITIATIVES.—In addition to any and the Senator can have 30 seconds. amounts otherwise appropriated for the pur- The PRESIDING OFFICER. Without Massachusetts is recognized to offer an pose of carrying out title XXI of the Social objection, it is so ordered. amendment on which there are 2 min- Security Act (relating to children’s health Mr. DOMENICI. Let me say to the utes of debate equally divided. insurance initiatives), there is appropriated White House, if there are too many Mr. KENNEDY. Mr. President, I call from the increase in revenues resulting from more like this where you support up my amendment, which is cospon- the amendments made by this section amendments that you did not agree to, sored by Senator DASCHLE. $2,400,000,000 for each of the fiscal years 1998 and you actually agreed we did not The PRESIDING OFFICER. The through 2002. have to do, then I am sending you a clerk will report. Mr. KENNEDY. Mr. President, this signal right now I am going to con- The legislative clerk read as follows: amendment adds $12 billion to the child ference and I don’t know if Senator The Senator from Massachusetts [Mr. KEN- health insurance program. It is fi- DOMENICI is going to be bound by that NEDY], for himself and Mr. DASCHLE, proposes nanced by an additional 23-cents-a- agreement. an amendment numbered 573. pack increase in the tobacco tax. This I make a point of order that this vio- amount is necessary to ensure that all Mr. KENNEDY. I ask unanimous con- lates the Budget Act. sent that the reading of the amend- children not eligible for Medicare, but Mr. KENNEDY. Mr. President, the ment be dispensed with. not able to afford private insurance, Republican leadership has been willing The PRESIDING OFFICER. Without will have access the health coverage. to accept a tobacco tax which the Re- objection, it is so ordered. CBO says that the current bill, a pro- publican leadership said was going to The amendment is as follows: posal that is before the Senate, will not violate the budget agreement which On page 337, beginning with line 14, strike do the job. The administration strong- the President previously supported. all through page 339, line 15, and insert the ly supports the amendment. So do 72 following: Now the President and the Republican percent of the American people. leadership have accepted a 20 cent to- (a) CIGARETTES.—Section 5701(b) of the In- I will just take 15 seconds to read a ternal Revenue Code of 1986 is amended— bacco tax. The only trouble with the (1) in paragraph (1), by striking ‘‘$12 per letter from the American Academy of Senator from Oklahoma’s mathematics thousand ($10 per thousand on cigarettes re- Pediatrics: is he does not include the $14 billion moved during 1991 or 1992)’’ and inserting 53,000 primary care pediatricians, pediatric that they were instructed to reduce ‘‘$33.50 per thousand’’, and medical subspecialists, pediatric surgeons Medicaid. (2) in paragraph (2), by striking ‘‘$25.20 per and specialists dedicated to the health, safe- So, this is necessary, according to thousand ($21 per thousand on cigarettes re- ty, and well-being of infants, children, ado- moved during 1991 or 1992)’’ and inserting lescents and young adults strongly support the Republican’s own CBO. This is nec- ‘‘$70.35 per thousand’’. your amendment to increase the tax by 23 essary to cover insurance. Let’s turn (b) CIGARS.—Section 5701(a) of the Internal cents for use in financing the children’s our backs on big tobacco and put our Revenue Code of 1986 is amended— health care legislation. faith in little children.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00014 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6683 Mr. President, this amendment re- AMENDMENT NO. 574 ‘‘(i) qualified higher education expenses (as duces the deficit, and I move to waive (Purpose: To allow tax-free expenditures defined in section 529(e)(3), and the Budget Act. from an education individual retirement ‘‘(ii) in the case of taxable years beginning account for elementary and secondary after December 31, 2000, qualified elementary Mr. KENNEDY. I ask for the yeas and and secondary education expenses (as defined nays. school expenses and to adjust the modifica- tions to the minimum tax) in paragraph (5)). The PRESIDING OFFICER. Is there a ‘‘(B) QUALIFIED TUITION PROGRAMS.—Such Mr. COVERDELL. Mr. President, I sufficient second? term shall include amounts paid or incurred send an amendment to the desk and There is a sufficient second. to purchase tuition credits or certificates, or ask for its immediate consideration. The yeas and nays were ordered. to make contributions to an account, under The PRESIDING OFFICER. The a qualified tuition program (as defined in VOTE ON MOTION TO WAIVE THE BUDGET ACT clerk will report. section 529(b)) for the benefit of the account The PRESIDING OFFICER. The The assistant legislative clerk read holder. question is on the motion to waive the as follows: ‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.— The term ‘eligible education institution’ has Budget Act. The yeas and nays have The Senator from Georgia [Mr. COVER- the meaning given such term by section been ordered. DELL], for himself, Mr. ABRAHAM, Mr. COATS, 529(e)(5). Mr. CRAIG, Mr. SANTORUM, and Mr. The clerk will call the roll. ‘‘(4) ACCOUNT HOLDER.—The term ‘account The bill clerk proceeded to call the ASHCROFT, proposes an amendment num- holder’ means the individual for whose ben- roll. bered 574. efit the education individual retirement ac- The yeas and nays resulted—yeas 30, Mr. COVERDELL. Mr. President, I count is established. nays 70, as follows: ask unanimous consent that reading of ‘‘(5) QUALIFIED ELEMENTARY AND SECONDARY EDUCATION EXPENSES.— [Rollcall Vote No. 149 Leg.] the amendment be dispensed with. The PRESIDING OFFICER. Without ‘‘(A) IN GENERAL.—The term ‘qualified ele- YEAS—30 mentary and secondary education expenses’ objection, it is so ordered. Akaka Feingold Levin means tuition, fees, tutoring, special needs Biden Feinstein Lieberman The amendment is as follows: services, books, supplies, equipment, trans- Bingaman Glenn Mikulski On page 19, between lines 14 and 15, insert: portation, and supplementary expenses re- ‘‘(D) ADJUSTMENT.—The Secretary shall re- Boxer Harkin Murray quired for the enrollment or attendance at a duce the dollar amounts otherwise in effect Bumpers Johnson Reed public, private, or sectarian school of any de- Cleland Kennedy Reid under this paragraph for any calendar year pendent of the taxpayer with respect to Daschle Kerry Sarbanes to the extent necessary to increase Federal whom the taxpayer is allowed a deduction Dodd Kohl Torricelli revenues by the amount the Secretary esti- under section 151. Dorgan Lautenberg Wellstone mates Federal revenues will be reduced by Durbin Leahy Wyden ‘‘(B) SPECIAL RULE FOR HOMESCHOOLING.— reason of allowing distributions from edu- Such term shall include expenses described NAYS—70 cation individual retirement accounts under in subparagraph (A) required for education Abraham Ford McCain section 530 to be used for qualified elemen- provided for homeschooling if the require- Allard Frist McConnell tary and secondary education expenses de- ments of any applicable State or local law Ashcroft Gorton Moseley-Braun scribed in section 530(b)(2)(A)(ii).’’ are met with respect to such education. Baucus Graham Moynihan On page 64, beginning with line 8, strike all ‘‘(C) SCHOOL.—The term ‘school’ means any Bennett Gramm Murkowski through page 67, line 15, and insert: school which provides elementary education Bond Grams Nickles ‘‘(1) EDUCATION INDIVIDUAL RETIREMENT AC- Breaux Grassley or secondary education (through grade 12), as Robb COUNT.—The term ‘education individual re- determined under State law. Brownback Gregg Roberts Bryan Hagel tirement account’ means a trust created or ‘‘(c) TAX TREATMENT OF DISTRIBUTIONS.— Rockefeller Burns Hatch organized in the United States exclusively ‘‘(1) IN GENERAL.—Any amount paid or dis- Roth Byrd Helms for the purpose of paying the qualified edu- tributed shall be includable in gross income Santorum Campbell Hollings cation expenses of the account holder, but to the extent required by section 529(c)(3) Chafee Hutchinson Sessions only if the written governing instrument Shelby (determined as if such account were a quali- Coats Hutchison creating the trust meets the following re- fied tuition program and as if qualified high- Cochran Inhofe Smith (NH) Smith (OR) quirements: er education expenses include qualified edu- Collins Inouye ‘‘(A) No contribution will be accepted— Conrad Jeffords Snowe cation expenses). Coverdell Kempthorne Specter ‘‘(i) unless it is in cash, ‘‘(2) SPECIAL RULES FOR APPLYING ESTATE Craig Kerrey Stevens ‘‘(ii) after the date on which the account AND GIFT TAXES WITH RESPECT TO ACCOUNT.— D’Amato Kyl Thomas holder attains age 18, or Rules similar to the rules of paragraphs (2), DeWine Landrieu Thompson ‘‘(iii) except in the case of rollover con- (4), and (5) of section 529(c) shall apply for Domenici Lott Thurmond tributions, if such contribution would result purposes of this section. Enzi Lugar Warner in aggregate contributions for the taxable ‘‘(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT Faircloth Mack year exceeding the sum of— USED FOR EDUCATIONAL EXPENSES.— The PRESIDING OFFICER. On this ‘‘(I) $2,000, plus ‘‘(A) IN GENERAL.—The tax imposed by sec- vote, the yeas are 30, the nays are 70. ‘‘(II) the amount of the credit allowable tion 529(f) shall apply to payments and dis- under section 25A for the taxable year for 1 Three-fifths of the Senators duly cho- tributions from an education individual re- qualifying child. tirement account in the same manner as sen and sworn not having voted in the ‘‘(B) The trustee is a bank (as defined in affirmative, the motion is rejected. such tax applies to qualified tuition pro- section 408(n)) or another person who dem- grams (as defined in section 529), except that The point of order is sustained, and the onstrates to the satisfaction of the Secretary section 529(f) shall be applied by reference to amendment falls. that the manner in which that person will qualified education expenses. administer the trust will be consistent with Mr. ROTH. Mr. President, I move to Mr. COVERDELL. Mr. President, I reconsider the vote. the requirements of this section. ‘‘(C) No part of the trust assets will be in- wonder if we could bring the Senate to Mr. MOYNIHAN. I move to lay that vested in life insurance contracts. order. motion on the table. ‘‘(D) The assets of the trust shall not be The PRESIDING OFFICER. The Sen- The motion to lay on the table was commingled with other property except in a ate will please come to order. agreed to. common trust fund or common investment The Senator from Georgia. The PRESIDING OFFICER. The fund. Mr. COVERDELL. Mr. President, the amendment violates section 302(f) of ‘‘(E) Upon the death of the account holder, bill currently provides an education the Budget Act by causing the Finance any balance in the account will be distrib- uted as required under section 529(b)(8) (as if IRA for college expenses only. But, of Committee to exceed its outlay alloca- such account were a qualified tuition pro- course, not every child goes to college. tion. The point of order is sustained. gram). Every child does, however, attend ele- Mr. COVERDELL addressed the ‘‘(F) The account becomes an IRA Plus as mentary and secondary school. Chair. of the date the account holder attains age 30 This amendment expands the edu- Mr. ROTH. Senator COVERDELL is (and meets all requirements for an IRA Plus cation IRA to allow parents to use it next in the line of amendments. on and after such date), unless the account for any education expenses, including The PRESIDING OFFICER. Under holder elects to have sections 529(b)(8) apply tuition from kindergarten through the previous order, the Senator from as of such date (as if such account were a high school. I am pleased to be joined qualified tuition program). Georgia is recognized to offer an ‘‘(2) QUALIFIED EDUCATION EXPENSES.— on this amendment by Senators ABRA- amendment on which there are 2 min- ‘‘(A) IN GENERAL.—The term ‘qualified edu- HAM, COATS, CRAIG, SANTORUM, and utes of debate equally divided. cation expenses’ means— ASHCROFT.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00015 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6684 CONGRESSIONAL RECORD — SENATE June 27, 1997 Mr. President, it is important to help my intention to vote ‘‘aye.’’ Since it Senator BINGAMAN’s chart is mis- parents cope with the cost of college, will in no way change the outcome of leading because the taxpayer must be but that is not where the crisis is. The the vote, I ask unanimous consent that at least 591⁄2 years old before with- crisis in our schools is in elementary I be recorded as an ‘‘aye.’’ drawals are tax free. It is particularly and secondary schools that are riddled The PRESIDING OFFICER. Without important for the self-employed like with drugs and violence. Let’s do some- objection, it is so ordered. farmers and young families who hope- thing to help those parents, too. Mr. ROTH. Mr. President, I move to fully will be successful and grow out of I reserve the remainder of my time. reconsider the vote by which the the tax-deductible IRA into the IRA The PRESIDING OFFICER. Who amendment was agreed to. Plus. With all these advantages, the yields time on the opposite side? Mr. MOYNIHAN. I move to lay that backloaded IRA must be included in Mr. COVERDELL. Mr. President, I motion on the table. the budget bill. Fifty-one Senators ask for the yeas and nays. The motion to lay on the table was have cosponsored my super-IRA legis- The PRESIDING OFFICER. Is there a agreed to. lation and agree with me. sufficient second? Mr. BINGAMAN addressed the Chair. The PRESIDING OFFICER. The time There is a sufficient second. The PRESIDING OFFICER. The Sen- of the Senator has expired. The yeas and nays were ordered. ator from New Mexico. The PRESIDING OFFICER. Is all Mr. ROTH. I ask for the yeas and AMENDMENT NO. 541 nays. time yielded back? Mr. BINGAMAN. Mr. President, I call Mr. DASCHLE. Mr. President, this is The PRESIDING OFFICER. Is there a up amendment No. 541 which is at the tantamount to providing vouchers for sufficient second? There is a sufficient desk. second. private education. That is in essence The PRESIDING OFFICER. The what this amendment does. For that The yeas and nays were ordered. clerk will report. The PRESIDING OFFICER. The reason, we oppose it. The legislative clerk read as follows: Mr. COVERDELL. Mr. President, question is on agreeing to the amend- how much of my time remains? The Senator from New Mexico [Mr. BINGA- ment. The yeas and nays have been or- MAN], for himself, and Mr. CONRAD, proposes dered. The clerk will call the roll. The PRESIDING OFFICER. The Sen- an amendment numbered legislative 541. ator has 13 seconds. The legislative clerk called the roll. Mr. COVERDELL. Mr. President, this (The amendment is printed in the The result was announced—yeas 33, is their own money. This involves no RECORD of Thursday, June 26, 1997.) nays 67, as follows: tax money. This belongs to the tax- Mr. BINGAMAN. Mr. President, this amendment is being offered on behalf [Rollcall Vote No. 151 Leg.] payer. They ought to be able to use it YEAS—33 wherever they decide. of myself and Senator CONRAD. Akaka Durbin Kerry The PRESIDING OFFICER. The Mr. President, we all understand what regular IRA’s are about and how Bingaman Feingold Lautenberg question is on agreeing to the amend- Boxer Feinstein Leahy ment. those work where a person can put up Bumpers Ford Levin The clerk will call the roll. to $2,000 into an IRA. It accumulates Byrd Glenn Murray earnings over a career, and then when Cleland Harkin Reed The assistant legislative clerk called Collins Hollings Reid the roll. you retire you go ahead and pay tax on Conrad Inouye Robb The PRESIDING OFFICER (Mr. it. Daschle Jeffords Sarbanes COATS). Are there any other Senators What we have in this bill is some- Dodd Johnson Snowe Dorgan Kennedy in the Chamber desiring to vote? thing different than a regular IRA. We Wellstone The result was announced—yeas 59, have an IRA Plus. The IRA Plus differs NAYS—67 nays 41, as follows: in a very important way. What this Abraham Gorton Mikulski [Rollcall Vote No. 150 Leg.] chart shows is it essentially says if you Allard Graham Moseley-Braun agree to pay the tax that is due on Ashcroft Gramm Moynihan YEAS—59 Baucus Grams your existing IRA up through the end Murkowski Abraham Gorton Mack Bennett Grassley Nickles Allard Gramm McCain of next year, the 1st of January 1998, it Biden Gregg Roberts Ashcroft Grams McConnell will give you the time that this budget Bond Hagel Rockefeller Bennett Grassley Murkowski Breaux Hatch Roth agreement covers to pay all of that tax Brownback Helms Biden Gregg Nickles Santorum Bond Hagel in. And then the earnings from that Bryan Hutchinson Roberts Sessions Breaux Harkin Burns Hutchison Roth money in that IRA Plus account are Shelby Campbell Inhofe Brownback Hatch Santorum never going to be taxed the rest of your Burns Helms Chafee Kempthorne Smith (NH) Sessions Campbell Hutchinson life. Coats Kerrey Smith (OR) Shelby Coats Hutchison That is what the provision is. It is a Cochran Kohl Specter Smith (NH) Cochran Inhofe Coverdell Kyl Stevens Smith (OR) back-loaded IRA which means it is spe- Coverdell Kempthorne cifically for people who are not eligible Craig Landrieu Thomas Craig Kohl Specter D’Amato Lieberman Thompson D’Amato Kyl Stevens for the other types of IRA’s. So if you DeWine Lott Thurmond DeWine Landrieu Thomas have over $100,000 and you already have Domenici Lugar Torricelli Domenici Leahy Thompson a retirement account, then you can Enzi Mack Warner Enzi Lieberman Thurmond Faircloth McCain Wyden Faircloth Lott Torricelli have an IRA Plus. The earnings from Frist McConnell Frist Lugar Warner the funds in that IRA Plus will never The amendment (No. 541) was re- NAYS—41 be taxed. I urge the Senate to adopt our jected. Akaka Durbin Levin amendment. Mr. ROTH. Mr. President, I move to Baucus Feingold Mikulski reconsider the vote. Bingaman Feinstein Moseley-Braun Mr. ROTH. Mr. President, we need to Boxer Ford Moynihan do something about our savings rates. Mr. MOYNIHAN. I move to lay that Bryan Glenn Murray Americans are saving less now than motion on the table. Bumpers Graham Reed The motion to lay on the table was Byrd Hollings they did than at almost any time since Reid agreed to. Chafee Inouye Robb World War II. The universal IRA Plus Cleland Jeffords Mr. DORGAN addressed the Chair. Rockefeller is our best bet to bolster our fledgling Collins Johnson Sarbanes The PRESIDING OFFICER. If we Conrad Kennedy savings rate. In fact, expanding IRA’s Snowe Daschle Kerrey is the only prosaving provision in the could get attention of Senators and if Dodd Kerry Wellstone budget. The universal IRA Plus ac- conversations could be taken to the Wyden Dorgan Lautenberg count compliments the tax deductible cloakroom. The amendment (No. 574) was agreed IRA because it offers a long-term pre- The Senator from North Dakota. to. dictable savings program for millions AMENDMENTS NOS. 515 AND 516 WITHDRAWN CHANGE OF VOTE of families with fluctuating incomes, Mr. DORGAN. I ask unanimous con- Mr. BOND. Mr. President, on rollcall and who do not have employer retire- sent to withdraw amendments Nos. 515 No. 150, on which I voted ‘‘no,’’ it was ment plans. and 516 at the desk.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00016 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6685 The PRESIDING OFFICER. Is there already contains meaningful child care The PRESIDING OFFICER. The Sen- objection? Without objection, it is so tax relief for families. This proposal ator from Delaware. ordered. would give that tax relief to employers. Mr. ROTH. Mr. President, Senator The amendments (Nos. 515 and 516) For this reason I must oppose this JEFFORDS is next on the list to offer an were withdrawn. amendment. I point out the amend- amendment. The PRESIDING OFFICER. The Sen- ment is not germane and, with all time The PRESIDING OFFICER (Mr. ator from Delaware. yielded back, I make a point of order of HAGEL). The Senator from Vermont. Mr. ROTH. Mr. President, I think the germaneness. I therefore raise a point AMENDMENT NO. 555 next one is Mr. KOHL. of order against the amendment under (Purpose: To encourage improvements in The PRESIDING OFFICER. The Sen- section 305(b)(2) of the Budget Act. child care services and options for meeting ator from Wisconsin will suspend until The PRESIDING OFFICER. The Sen- employment-related child care needs) we can get the attention of the Cham- ator from Wisconsin. Mr. JEFFORDS. Mr. President, I ber. Mr. KOHL. I move to waive the Budg- have a child care amendment at the Mr. ROTH. It is my understanding et Act for my amendment. desk. the next one on the list is an amend- Mr. President, I ask for the yeas and The PRESIDING OFFICER. The ment by Senator KOHL. nays. clerk will report. The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Is there a The legislative clerk read as follows: ator from Wisconsin is recognized. sufficient second? The Senator from Vermont [Mr. JEF- AMENDMENT NO. 575 There is a sufficient second. FORDS], for himself, Mr. DODD, Mr. ROBERTS, (Purpose: To provide a credit against tax for The yeas and nays were ordered. Mr. JOHNSON, Mr. KOHL, Ms. SNOWE, Ms. LAN- employers who provide child care assist- VOTE ON MOTION TO WAIVE THE BUDGET ACT DRIEU, Mr. CHAFEE, Mr. D’AMATO, Ms. COL- ance for dependents of their employees) The PRESIDING OFFICER. The LINS, Mr. SMITH of Oregon, Mr. CAMPBELL, Mr. KOHL. Mr. President, I send an question is on agreeing to the motion. Mr. KENNEDY, Mr. ENZI, Mr. ALLARD, Mr. amendment to the desk. The yeas and nays are ordered. The STEVENS, Mr. GRASSLEY, Ms. MIKULSKI, Mr. The PRESIDING OFFICER (Mr. clerk will call the roll. KERRY, and Mr. GRAHAM, proposes an amend- ment numbered 555. COATS). The clerk will report. The legislative clerk called the roll. The assistant legislative clerk read The PRESIDING OFFICER. Are there Mr. JEFFORDS. Mr. President, I ask as follows: any other Senators in the Chamber unanimous consent that the reading of the amendment be dispensed with. The Senator from Wisconsin [Mr. KOHL], who desire to vote? for himself, Mr. HATCH, Mr. DASCHLE, Mr. The yeas and nays resulted, yeas 72, The PRESIDING OFFICER. Without D’AMATO, Ms. MOSELEY-BRAUN, Mr. ABRA- nays 28, as follows: objection, it is so ordered. HAM, Mr. SPECTER, Ms. SNOWE, Mrs. BOXER, [Rollcall Vote No. 152 Leg.] (The text of the amendment is print- Mr. DEWINE, Mrs. MURRAY, and Mr. JOHNSON, ed in the June 26, 1997, edition of the YEAS—72 proposes an amendment numbered 575. RECORD.) Abraham Feingold Lieberman Mr. KOHL. Mr. President, I ask unan- Akaka Feinstein Lugar Mr. JEFFORDS. Mr. President, this imous consent that reading of the Allard Ford McCain is a natural follow-on to the previous amendment be dispensed with. Ashcroft Frist McConnell amendment. We are all aware of the Baucus Glenn Mikulski need for good child care. There are The PRESIDING OFFICER. Without Biden Graham Murray objection, it is so ordered. Bingaman Grams Reed more than 12 million children who are (The text of the amendment is print- Boxer Grassley Reid in child care. At least 15 percent are in ed in today’s RECORD under ‘‘Amend- Brownback Gregg Robb care that is so bad that their health Bryan Harkin Roberts ments Submitted.’’) Bumpers Hatch Rockefeller and safety are threatened; 40 percent of Mr. KOHL. This amendment provides Campbell Hollings Santorum the infants in child care are in very a tax incentive for companies that pro- Cleland Hutchison Sarbanes risky situations. vide quality child care for the children Coats Inouye Smith (NH) For the many parents who would Collins Jeffords Smith (OR) of their employees. The amendment is Conrad Johnson Snowe change their child care if they could cosponsored by Senators HATCH, Coverdell Kempthorne Specter find and afford better, this amendment DASCHLE, DEWINE, BOXER, D’AMATO, D’Amato Kennedy Stevens provides tax relief through the child Daschle Kerry Thompson SPECTER, SNOWE, JOHNSON, ABRAHAM, DeWine Kohl Thurmond care tax credits, and it helps business MOSELEY-BRAUN, and MURRAY. This Dodd Landrieu Torricelli meet the child care needs of their em- amendment creates a tax credit lim- Domenici Lautenberg Warner ployees through the business tax cred- ited to 50 percent of $150,000 per com- Dorgan Leahy Wellstone its and deductions. Durbin Levin Wyden pany per year for 3 years for those We expand choices for parents, be- companies that invest in quality child NAYS—28 cause if you can’t afford the child care care on or near site. The credit is offset Bennett Gorton Moseley-Braun you find, you don’t have much choice. by authorizing the antifraud program Bond Gramm Moynihan Representatives of the religious and Breaux Hagel Murkowski that will keep parents who do not have Burns Helms Nickles for-profit child care providers worked custody of their children from unlaw- Byrd Hutchinson Roth with us on the language related to ac- fully claiming child-related tax bene- Chafee Inhofe Sessions creditation and credentialing. Cochran Kerrey fits. Shelby I ask unanimous consent that the fol- Craig Kyl Thomas We know child care is an investment Enzi Lott lowing Members be added as cospon- that is good for children, good for busi- Faircloth Mack sors: Senators DODD, ROBERTS, KOHL, ness, good for States and good for our The PRESIDING OFFICER. On this LANDRIEU, SNOWE, JOHNSON, CHAFEE, Nation. We need to involve every level vote the yeas are 72, the nays are 28. D’AMATO, COLLINS, GORDON SMITH, of government and private commu- Three-fifths of the Senators duly cho- CAMPBELL, KENNEDY, ENZI, ALLARD, nities and private businesses in build- sen and sworn having voted in the af- STEVENS, GRASSLEY, MIKULSKI, KERRY, ing a quality child care system for our firmative, the motion is agreed to. and GRAHAM. youngest that is the best in the world. The question is now on agreeing to The PRESIDING OFFICER. Without This amendment is the first essential the underlying amendment. objection, it is so ordered. and deficit-neutral step toward that The amendment (No. 575) was agreed Mr. JEFFORDS. I reserve the re- end. to. mainder of my time, if I have any left. I urge my colleagues to support it. Mr. MOYNIHAN. Mr. President, I The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. The Sen- move to reconsider the vote by which ator’s time has expired. There is 1 ator from Delaware. the amendment was agreed to. minute in opposition. The Senator Mr. ROTH. Mr. President, while I am Mr. FORD. I move to lay that motion from Indiana. sympathetic to my colleague’s effort to on the table. Mr. COATS. Mr. President, we all provide quality child care, I regret I The motion to lay on the table was want to improve quality care for child must oppose his amendment. This bill agreed to. care. We spend nearly $1 billion now

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00017 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6686 CONGRESSIONAL RECORD — SENATE June 27, 1997 doing that. As chairman of the Chil- Robb Smith (OR) Torricelli ‘‘(1) IN GENERAL.—The term ‘qualified sev- Roberts Snowe Warner erance payment’ means any payment re- dren and Family Subcommittee I am Rockefeller Specter Wellstone committed to that. I commend Senator ceived by an individual if— Sarbanes Stevens Wyden ‘‘(A) such payment was paid by such indi- JEFFORDS, Senator DODD, and others NAYS—42 vidual’s employer on account of such individ- for work in that area. Abraham Frist Lugar ual’s separation from employment, The reason I oppose this particular Ashcroft Gorton McCain ‘‘(B) such separation was in connection amendment is, first of all, because it is Bennett Gramm McConnell with a reduction in the work force of the em- an amorphous amendment. It brings a Bond Grams Moynihan ployer, and number of things together. There is Brownback Grassley Murkowski ‘‘(C) such individual does not attain em- Burns Gregg Nickles ployment within 6 months of the date of one in here we tried to work out. I Byrd Hagel Roth such separation in which the amount of com- think we ought to oppose it, take it Coats Hatch Santorum pensation is equal to or greater than 95 per- back to committee, bring it through, Cochran Helms Sessions Collins Hutchinson Shelby cent of the amount of compensation for the and bring a true quality child care Craig Inhofe Smith (NH) employment that is related to such payment. amendment forward. DeWine Kempthorne Thomas ‘‘(2) LIMITATION.—Such term shall not in- This forces grandparents, neighbors, Domenici Kyl Thompson clude any payment received by an individual and family day-care providers who al- Faircloth Lott Thurmond if the aggregate payments received with re- ready comply with State child care NOT VOTING—1 spect to the separation from employment ex- ceed $125,000.’’ laws to meet now an additional stand- Hollings (b) TIME PERIODS FOR CARRYBACK AND ard, certified by a State-recognized The PRESIDING OFFICER. On this CARRYFORWARD OF UNUSED CREDITS.—Section agency or entity to submit to addi- vote the yeas are 57, the nays are 42. 39(a) (relating to unused credits) is amend- tional monitoring in order to have the Three-fifths of the Senators duly cho- ed— (1) in paragraph (1), by striking ‘‘3’’ each care that they provide qualify for this sen and sworn not having voted in the additional tax credit. place it appears and inserting ‘‘1’’ and by affirmative, the motion is rejected. striking ‘‘15’’ each place it appears and in- We should not provide a preference The point of order is sustained, and the serting ‘‘20’’; and tax credit for those who provide care amendment falls. (2) in paragraph (2), by striking ‘‘18’’ each outside the State certification. There Mr. ROTH. I move to reconsider the place it appears and inserting ‘‘22’’ and by are mothers and neighbors and rel- vote. striking ‘‘17’’ each place it appears and in- atives who do that who provide what Mr. MOYNIHAN. I move to lay that serting ‘‘21’’. they think is quality care and, more motion on the table. (c) CLERICAL AMENDMENT.—The table of important, what the mothers and par- The motion to lay on the table was sections for part III of subchapter B of chap- ter 1 is amended by striking the time relat- ents of children think is quality care. agreed to. ing to section 138 and inserting the following I yield whatever time I have left to Mr. TORRICELLI addressed the new items: the Senator from Oklahoma. Chair. ‘‘Sec. 138. Severance payments. The PRESIDING OFFICER. All time The PRESIDING OFFICER (Mr. ‘‘Sec. 139. Cross references to other Acts.’’ has expired. ENZI). The Chair recognizes the Sen- (d) EFFECTIVE DATES.— Mr. ROTH. Mr. President, the pend- ator from New Jersey. (1) IN GENERAL.—The amendments made by ing amendment is not germane to the AMENDMENT NO. 578 subsections (a) and (c) shall apply to taxable provisions of the reconciliation meas- (Purpose: To exclude certain severance pay- years beginning after December 31, 1997, and ment amounts from income and to modify before July 1, 2002. ure. I, therefore, raise a point of order (2) SUBSECTION (b).—The amendments made against the amendment under section the time periods for carryback and carryforward of unused credits) by subsection (b) shall apply to the 305(b)(2) of the Budget Act. carryback and carryforward of credits aris- Mr. JEFFORDS. Mr. President, I un- Mr. TORRICELLI. Mr. President, I ing in taxable years beginning after Decem- derstand this is a germaneness objec- have an amendment, and I ask for its ber 31, 1997. tion. I move to waive the Budget Act immediate consideration. Mr. TORRICELLI. Mr. President, as The PRESIDING OFFICER. The and ask for the yeas and nays. the Senate has considered tax relief for clerk will report. The PRESIDING OFFICER. Is there a people of means to encourage them to The legislative clerk read as follows: sufficient second? invest in a growing economy and peo- There is a sufficient second. The Senator from New Jersey [Mr. ple of more modest means to help with TORRICELLI], for himself and Ms. LANDRIEU, The yeas and nays were ordered. proposes an amendment numbered 578. their education, I offer an amendment to deal with a different group of Ameri- VOTE ON MOTION TO WAIVE THE BUDGET ACT Mr. TORRICELLI. Mr. President, I cans, people not of high or medium in- The PRESIDING OFFICER. The ask unanimous consent that further come, but people of no income. question is on agreeing to the motion reading of the amendment be dispensed Even in good economic times, to waive the Budget Act. The yeas and with. through no fault of their own, through nays have been ordered. The clerk will The PRESIDING OFFICER. Without mergers, acquisitions, downsizing, or call the roll. objection, it is so ordered. Mr. FORD. I announce that the Sen- The amendment is as follows: foreign competition, companies need to sometimes reduce their work force. ator from South Carolina [Mr. HOL- On page 267, between lines 15 and 16, insert LINGS] is necessarily absent. the following: And corporate America is responding The PRESIDING OFFICER. Are there SEC. . EXCLUSION FROM INCOME OF SEVER- responsibly by offering severance pay. any other Senators in the Chamber de- ANCE PAYMENT AMOUNTS; TIME PE- My amendment simply takes the RIODS FOR CARRYBACK AND first $3,000 of severance pay offered to siring to vote? CARRYFORWARD OF UNUSED CRED- The yeas and nays resulted—yeas 57, any American who loses their job ITS. through downsizing and makes that nays 42, as follows: (a) EXCLUSION FROM INCOME OF SEVERANCE $3,000 tax free. It is offset. It is respon- [Rollcall Vote No. 153 Leg.] PAYMENT AMOUNTS.—Part III of subchapter B of chapter 1 (relating to items specifically sible. It is an appropriate Government YEAS—57 excluded from gross income) is amended by response to a corporate policy which is Akaka Daschle Kennedy redesignating section 138 as section 139 and the right way to help Americans to ad- Allard Dodd Kerrey by inserting after section 137 the following Baucus Dorgan Kerry just to start their own businesses or re- Biden Durbin Kohl new section: tirement. Bingaman Enzi Landrieu ‘‘SEC. 138. SEVERANCE PAYMENTS. I urge the adoption of the amend- Boxer Feingold Lautenberg ‘‘(a) IN GENERAL.—In the case of an indi- ment. Breaux Feinstein Leahy vidual, gross income shall not include any Bryan Ford Levin The PRESIDING OFFICER. The Sen- qualified severance payment. ator’s time has expired. Bumpers Glenn Lieberman ‘‘(b) LIMITATION.—The amount to which the Campbell Graham Mack exclusion under subsection (a) applies shall There is 1 minute in opposition. Chafee Harkin Mikulski not exceed $2,000 with respect to any separa- Who seeks recognition? Cleland Hutchison Moseley-Braun Mr. MOYNIHAN. Mr. President, I do Conrad Inouye Murray tion from employment. Coverdell Jeffords Reed ‘‘(c) QUALIFIED SEVERANCE PAYMENT.—For not believe there is any opposition. It D’Amato Johnson Reid purposes of this section— is an excellent proposal.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00018 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6687 Mr. ROTH. We are ready and willing research has demonstrated that delaying the (B) 2 percent of such amounts for transfer to accept it by voice vote. onset of debilitating and costly conditions to the National Center for Research Re- Mr. TORRICELLI. Mr. President, I like Alzheimer’s disease could reduce general sources to carry out section 1502 of the Na- health care and medicare costs by billions of thank the Chairman. tional Institutes of Health Revitalization dollars annually. Act of 1993 concerning Biomedical and Be- The PRESIDING OFFICER. Without (7) The state of our Nation’s research fa- havioral Research Facilities; objection, the amendment is agreed to. cilities at the National Institutes of Health (C) 1 percent of such amounts during any The amendment (No. 578) was agreed and at universities is deteriorating signifi- fiscal year for carrying out section 301 and to. cantly. Renovation and repair of these facili- part D of title IV of the Public Health Serv- Mr. MOYNIHAN. I move to recon- ties are badly needed to maintain and im- ice Act with respect to health information sider the vote. prove the quality of research. communications; and (8) Because discretionary spending is likely (D) the remainder of such amounts during Mr. ROTH. I move to lay that motion to decline in real terms over the next 5 on the table. any fiscal year to member institutes and years, the Nation’s investment in health re- centers, including the Office of AIDS Re- The motion to lay on the table was search through the National Institutes of search, of the National Institutes of Health agreed to. Health is likely to decline in real terms un- in the same proportion to the total amount Mr. HARKIN addressed the Chair. less corrective legislative action is taken. received under this section, as the amount of The PRESIDING OFFICER. The Sen- (9) A health research fund is needed to annual appropriations under appropriations maintain our Nation’s commitment to ator from Iowa. Acts for each member institute and Centers health research and to increase the percent- for the fiscal year bears to the total amount AMENDMENT NO. 579 age of approved projects which receive fund- of appropriations under appropriations Acts (Purpose: To improve health care quality ing at the National Institutes of Health. for all member institutes and Centers of the and reduce health care costs by estab- SEC. 5997. ESTABLISHMENT OF FUND. National Institutes of Health for the fiscal lishing a National Fund for Health Re- (a) ESTABLISHMENT.—There is established year. search that would significantly expand the in the Treasury of the United States a fund, (2) PLANS OF ALLOCATION.—The amounts Nation’s investment in medical research) to be known as the ‘‘National Fund for transferred under paragraph (1)(D) shall be Mr. HARKIN. I send my amendment Health Research’’ (hereafter in this section allocated by the Director of the National In- to the desk. referred to as the ‘‘Fund’’), consisting of stitutes of Health or the various directors of such amounts as are transferred to the Fund the institutes and centers, as the case may The PRESIDING OFFICER. The under subsection (b), any sums specifically clerk will report. be, pursuant to allocation plans developed by designated for such purpose by future acts of the various advisory councils to such direc- The legislative clerk read as follows: Congress, and any interest earned on invest- tors, after consultation with such directors. The Senator from Iowa [Mr. HARKIN], for ment of amounts in the Fund. (3) GRANTS AND CONTRACTS FULLY FUNDED (b) TRANSFERS TO FUND.— himself, Mr. D’AMATO, Mr. MACK, and Mr. IN FIRST YEAR.—With respect to any grant or SPECTER, proposes an amendment numbered (1) IN GENERAL.—The Secretary of the contract funded by amounts distributed 579. Treasury shall transfer to the Fund amounts under paragraph (1), the full amount of the equivalent to one half the amounts for each total obligation of such grant or contract Mr. HARKIN. I ask unanimous con- of the fiscal years 1998 through 2002 derived sent reading of the amendment be dis- shall be funded in the first year of such grant for each such fiscal year under Section 311 or contract, and shall remain available until pensed with. through Section 314 of this act that exceeds expended. The PRESIDING OFFICER. Without the amount of Federal revenues estimated by (4) TRIGGER AND RELEASE OF MONIES. objection, it is so ordered. the Joint Tax Committee as of the date of (A) TRIGGER AND RELEASE.—No expenditure The amendment is as follows: enactment of this act, to be gained from en- shall be made under paragraph (1) during any actment of Section 311 through Section 314 On page 1027, between lines 7 and 8, insert fiscal year in which the annual amount ap- for each such fiscal year. propriated for the National Institutes of the following: (B) DETERMINATION BY SECRETARY.—Not Health is less than the amount so appro- Subtitle N—National Fund for Health later than 6 months after the end of each of priated for the prior fiscal year. Research the fiscal years described in subparagraph (d) REQUIRED APPROPRIATION.—No transfer SEC. 5995. SHORT TITLE. (A), the Secretary of the Treasury shall— may be made for a fiscal year under sub- This subtitle may be cited as the ‘‘Na- (i) make a determination as to the amount section (b) unless an appropriations Act pro- to be transferred to the Fund for the fiscal tional Fund for Health Research Act’’. viding for such a transfer has been enacted year involved under this subsection; and SEC. 5996. FINDINGS. with respect to such fiscal year. (ii) subject to subsection (d), transfer such Mr. HARKIN. Mr. President, in this Congress makes the following findings: amount to the Fund. (1) Nearly 4 of 5 peer reviewed research morning’s paper, researchers were able (C) FUND ADMINISTERED BY HEALTH AND to identify a gene that plays a role in projects deemed worthy of funding by the HUMAN SERVICES.—The Secretary of Health National Institutes of Health are not funded. and Human Services shall administer funds Parkinson’s disease. We need more (2) Less than 3 percent of the nearly one transferred into the Fund. funds for biomedical research. trillion dollars our Nation spends on health (D) CAP ON TRANSFER.—Amounts trans- What this amendment says, on behalf care is devoted to health research, while the ferred to the Fund under this subsection for of Senators D’AMATO, SPECTER, MACK, defense industry spends 15 percent of its any year in the 5-fiscal year period beginning and myself, is that we take the excess budget on research and development. on October 1, 1997, shall not in combination savings that will come in because of (3) Public opinion surveys have shown that with the appropriated sum exceed an amount Americans want more Federal resources put the capital gains tax cut. Half of that equal to the amount appropriated for the Na- will go for deficit reduction; the other into health research and are willing to pay tional Institutes of Health for fiscal year for it. 1997 multiplied by 2. half will go to NIH for biomedical re- (4) Ample evidence exists to demonstrate (c) OBLIGATIONS FROM FUND.— search. that health research has improved the qual- (1) IN GENERAL.—Subject to the provisions I yield the remainder of my time first ity of health care in the United States. Ad- of paragraph (4), with respect to the amounts to Senator D’AMATO and then Senator vances such as the development of vaccines, made available in the Fund in a fiscal year, SPECTER. the cure of many childhood cancers, drugs the Secretary of Health and Human Services Mr. D’AMATO. Mr. President, a num- that effectively treat a host of diseases and shall distribute— ber of recent studies have dem- disorders, a process to protect our Nation’s (A) 2 percent of such amounts during any onstrated that investments in medical blood supply from the HIV virus, progress fiscal year to the Office of the Director of research can lower health care costs against cardiovascular disease including the National Institutes of Health to be allo- heart attack and stroke, and new strategies cated for the following activities: through the development of more cost- for the early detection and treatment of dis- (i) for carrying out the responsibilities of effective treatments. Greater funding eases such as colon, breast, and prostate can- the Office of the Director, including the Of- for research will also increase our abil- cer clearly demonstrates the benefits of fice of Research on Women’s Health and the ity to combat diseases which are very health research. Office of Research on Minority Health, the costly to our Nation’s health care sys- (5) Health research which holds the prom- Office of Alternative Medicine, the Office of tem. We voted on May 21, 1997, 98 to 0, ise of prevention of intentional and uninten- Rare Disease Research, the Office of Behav- to double the amount of funding for tional injury and cure and prevention of dis- ioral and Social Sciences Research (for use NIH so we can advance our biomedical for efforts to reduce tobacco use), the Office ease and disability, is critical to holding research capabilities. This impressive down health care costs in the long term. of Dietary Supplements, and the Office for (6) Expanded medical research is also crit- Disease Prevention; and show of support from this body will ical to holding down the long-term costs of (ii) for construction and acquisition of help reduce health care costs and in- the medicare program under title XVIII of equipment for or facilities of or used by the crease the quality of health for all of the Social Security Act. For example, recent National Institutes of Health; our citizens.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00019 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6688 CONGRESSIONAL RECORD — SENATE June 27, 1997 Voting to increase funding was easy. No. 1, my understanding is that this AMENDMENT NO. 581 Now comes the hard part. Where do we violates the Budget Act and is subject (Purpose: To provide for a tax credit for pub- get the money? We must not take to a point of order. lic elementary and secondary school con- money from other vital programs such Mr. NICKLES. I make the point of struction, and for other purposes) as food stamps or senior citizen bene- order that the amendment is not rel- Ms. MOSELEY-BRAUN. Mr. Presi- fits. Can we afford to give more money evant under the Budget Act, subject to dent, I send an amendment to the desk for breast cancer research and take germaneness. and ask for its immediate consider- away money from programs for chil- Mr. HARKIN. I move to waive the ation. The PRESIDING OFFICER. The dren? There would be no end to the de- point of order and ask for the yeas and bate on which is more worthy of our clerk will report. nays. The legislative clerk read as follows: priorities. The PRESIDING OFFICER. Is there a There is a better way to get funds for The Senator from Illinois [Ms. MOSELEY- sufficient second? BRAUN], for herself, Mr. KENNEDY, and Mr. biomedical research without cutting There is a sufficient second. WELLSTONE, proposes an amendment num- from other programs. I suggest that The yeas and nays were ordered. bered 581. each year the Secretary of the Treas- VOTE ON MOTION TO WAIVE THE BUDGET ACT Ms. MOSELEY-BRAUN. Mr. Presi- ury determine whether the actual rev- The PRESIDING OFFICER. The dent, I ask unanimous consent that enue impact of the capital gains provi- question is on agreeing to the motion reading of the amendment be dispensed sions of this bill are more positive— to waive the Budget Act. The yeas and with. more revenues gained or less lost—than nays have been ordered. The PRESIDING OFFICER. Without levels called for in revenue scoring of The clerk will call the roll. objection, it is so ordered. this provision. If the impact is more The bill clerk called the roll. (The text of the amendment is print- positive, half of the revenues will be ed in today’s RECORD under ‘‘Amend- Mr. FORD. I announce that the Sen- put toward deficit reduction. We could ments Submitted.’’) then take the other half and deposit it ator from South Carolina. [Mr. HOL- Ms. MOSELEY-BRAUN. Mr. Presi- into a National Fund for Health Re- LINGS] is necessarily absent. dent, this amendment says that if our search. This fund will expand support The yeas and nays resulted—yeas 51, economy does better than we today ex- for medical research through the Na- nays 48, as follows: pect that it will, we will devote some of tional Institutes of Health [NIH]. [Rollcall Vote No. 154 Leg.] that increased revenue to help rebuild I believe that if we acquire the YEAS—51 our Nation’s crumbling schools. money for the fund in this way we can Akaka Glenn McCain The General Accounting Office avoid hurting other programs. Using Biden Graham Mikulski makes it very clear that we have at money when there is a more positive Boxer Grassley Moseley-Braun least 112 billion dollars’ worth of Bryan Harkin Moynihan revenue will keep us within the bounds Bumpers Hutchison Murray unmet needs with school facilities of the balanced budget agreement. I Burns Inouye Reed around the country. State and local don’t believe there is a better place to Cleland Jeffords Reid governments cannot go to the property Collins Johnson Robb put this excess money than in the re- Conrad Kennedy Rockefeller tax to meet that 112 billion dollars’ search fund. D’Amato Kerrey Sarbanes worth of need. So, I say to my col- Mr. President, every one of us, the Daschle Kerry Snowe leagues, in the interest of the 14 mil- entire Senate called for an increase in DeWine Kohl Specter lion American children who, every day, Dodd Lautenberg Stevens funding for biomedical research. Again, Dorgan Leahy Thompson go to schools that are unfit for human I suggest that there is no better place Durbin Levin Torricelli habitation and which are not suitable to put the more positive revenue than Feinstein Lieberman Wellstone environments for learning, I ask sup- in this fund. I believe that the estab- Frist Mack Wyden port for this amendment. The funds lishment of this trust fund should be NAYS—48 from the tax credit would only be made made in the same cooperative spirit Abraham Domenici Landrieu available if actual revenue in the Fed- that brought the entire Senate to agree Allard Enzi Lott eral Treasury exceeded CBO’s annual to increase funding on May 21. We can Ashcroft Faircloth Lugar Baucus Feingold McConnell revenue projections, and up to $1 bil- then go home feeling proud that we did Bennett Ford Murkowski lion above and beyond CBO revenue es- all we could to further advance our Bingaman Gorton Nickles timates will be deposited into a school country’s medical capabilities and in Bond Gramm Roberts infrastructure trust fund. It would be Breaux Grams Roth time reduce the costs of our entire Brownback Gregg Santorum distributed to the States in allocable health care system. Byrd Hagel Sessions tax credits. This is a problem that will Mr. President, we voted 98 to 0 to do Campbell Hatch Shelby not go away. It will only get worse if this. This is a matter which we can Chafee Helms Smith (NH) Coats Hutchinson Smith (OR) we don’t address it now. Thank you. prove that we meant it. Any additional Cochran Inhofe Thomas Mr. NICKLES addressed the Chair. moneys will go to deficit reduction and Coverdell Kempthorne Thurmond The PRESIDING OFFICER. The Sen- to NIH. Craig Kyl Warner ator from Oklahoma is recognized. Mr. SPECTER. Mr. President, the NOT VOTING—1 Mr. NICKLES. Mr. President, I urge my colleagues to vote no on this Senate voted 98 to 0 in a sense of the Hollings Senate, but turned down $1.1 billion of amendment. I understand there will be real money, 67 to 37. The PRESIDING OFFICER. On this a voice vote. Mr. President, this pro- This is a chance for those 63 Senators vote, the yeas are 51, the nays are 48. posal is, in essence, converting an edu- to redeem themselves, to redeem their Three-fifths of the Senators duly cho- cation infrastructure grant program promise for NIH funding. sen and sworn not having voted in the into a tax credit. In my opinion, that is The PRESIDING OFFICER. There is affirmative, the motion is rejected. not a good idea. The administration, 1 minute in opposition. The point of order is sustained, and the while they originally proposed having Mr. ROTH. I yield to the Senator amendment falls. the $5 billion for schools, during the from Pennsylvania. Mr. ROTH. Mr. President, I move to negotiation they dropped that. That Mr. SANTORUM. If this amendment reconsider the vote. wasn’t part of the agreed-upon pack- is adopted, there is no money for tax Mr. MOYNIHAN. I move to lay that age. I might also mention that the De- cuts, if that money was available from motion on the table. partment of Education said, ‘‘The De- extra funds. The motion to lay on the table was partment recommends that Congress I do not think that is a good idea. I agreed to. rescind the 1995 appropriations for this think it hamstrings Congress. If there Mr. ROTH. Mr. President, Senator program and provide no funding for is extra money, we should give it back MOSELEY-BRAUN is the next Senator on 1996.’’ That was the infrastructure pro- to the people who paid it here. We the list to offer an amendment. gram. should not be putting it into more Gov- The PRESIDING OFFICER. The Sen- So, Mr. President, I urge colleagues ernment spending. ator from Illinois is recognized. to vote no on this amendment.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00020 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6689 The PRESIDING OFFICER. The unfortunately, ethanol has never lived projected prices of oil nor the ability of eth- question is on agreeing to the amend- up to the claims of any of its diverse anol to be a viable fuel without Federal sub- ment. proponents. sidies has been realized. The Committee de- The amendment (No. 581) was re- In the late 1970’s, during the energy termined, therefore, that enactment of an orderly termination of this Federal subsidy jected. crisis, ethanol was supposed to help the program is appropriate at this time. Mr. MOYNIHAN. Mr. President, I U.S. lessen its reliance on oil. But eth- And what does the Senate Finance move to reconsider the vote. anol use never took off, even when gas- Committee say to support its decision Mr. FORD. I move to lay that motion oline prices were highest and lines were to extend the ethanol subsidies beyond on the table. longest. their current expiration date? Listen The motion to lay on the table was Then, in the early 1980’s, ethanol sub- to this: agreed to. sidies were used to prop up America’s Mr. ROTH. Mr. President, I next struggling corn farmers. Unfortu- The Committee believes that continued as- surance of tax benefits for ethanol are [sic] yield to Senator MCCAIN to offer an nately, the usual trickle down effect of an important signal to encourage the use of amendment. agricultural subsidies is clearly evi- alternative fuels. dent. Beef and dairy farmers, for exam- AMENDMENT NO. 548 I commend Chairman BILL ARCHER (Purpose: To strike the provision relating to ple, have to pay a higher price for feed for his decision to try to phase out eth- the extension and modification of subsidies corn, which is then passed on in the anol subsidies. The provision in the for alcohol fuels) form of higher prices for meat and House bill would have saved almost Mr. MCCAIN. Mr. President, I send an milk. The average consumer ends up $250 million in the next three years. amendment to the desk and ask for its paying the cost of ethanol subsidies in Unfortunately, I understand the provi- immediate consideration. the grocery store. sion will be removed from the House By the late 1980’s, ethanol became The PRESIDING OFFICER. The bill because of opposition in the eth- the environmentally correct alter- clerk will report. anol industry. I am very disappointed native fuel. Unfortunately, the Depart- The legislative clerk read as follows: that the House is taking this step back ment of Energy has provided statistics The Senator from Arizona [Mr. MCCAIN] from ending ethanol subsidies. proposes an amendment numbered 548. showing that it takes more energy to Mr. President, we should end these produce a gallon of ethanol than the Mr. MCCAIN. Mr. President, I ask subsidies. We cannot afford to subsidize unanimous consent that reading of the amount of energy that gallon of eth- the ethanol industry at a time when we amendment be dispensed with. anol contains. In addition, the Congres- are struggling with the dilemma of bal- The PRESIDING OFFICER. Without sional Research Service, the Congres- ancing the budget while maintaining objection, it is so ordered. sional Budget Office, and the Depart- our commitments to our senior citi- The amendment is as follows: ment of Energy all acknowledge that zens, taking care of our poor and dis- the environmental benefits of ethanol Strike section 707 of the bill. advantaged citizens, and ensuring a use, at least in terms of smog reduc- healthy and secure future for our chil- Mr. MCCAIN. Mr. President, I offer tion, are yet unproven. an amendment today to strike the lan- dren. In addition, ethanol is an inefficient, Current law terminates ethanol sub- guage in the bill that provides an addi- expensive fuel. Just look at the 3- to 5- sidies after the year 2000. This amend- tional $3.8 billion in subsidies for the cent-per-gallon increase in gasoline ment would avoid the $3.8 billion cost ethanol industry. prices during the winter months in the of extending the ethanol subsidies. I The amendment is very simple. It Washington, D.C. area when ethanol is urge my colleagues to oppose changing strikes in its entirety Section 707 of required to be added to the fuel. current law and adopt my amendment the bill, which would extend for an ad- Finally, let me quote Stephen Moore, to strike Section 707 from the bill. ditional 7 years the tax credits for eth- of the CATO Institute, who puts it very The PRESIDING OFFICER. Who anol and methanol producers. The succinctly in a recent paper: seeks recognition? value of these ethanol subsidies is esti- * * * [V]irtually every independent assess- Mr. KERREY. Mr. President, I will mated by the Congressional Budget Of- ment—by the U.S. Department of Agri- take 30 seconds and then yield to the fice at $3.8 billion in lost revenues. culture, the General Accounting Office, the Senator from Iowa. This provision has Mr. President, enough is enough. The Congressional Budget Office, NBC News and several academic journals—has concluded worked and is creating jobs— American taxpayers have subsidized Mr. MOYNIHAN. Mr. President, we the ethanol industry, with guaranteed that ethanol subsidies have been a costly boondoggle with almost no public benefit. must have order. loans and tax credits, for more than 20 Mr. KERREY. This provision has So why do we continue to subsidize years. Since 1980, government subsidies worked. I urge my colleagues to vote the ethanol industry? I think James for ethanol have totaled more than $10 against the motion to strike. It has Bovard of the CATO Institute put it billion. Section 707 of the bill, if not created jobs and has been good for the best in a 1995 policy paper: stricken, would give another $3.8 bil- environment and promoted alternative * * * [O]ne would be hard-pressed to find lion in tax breaks to ethanol producers. fuel in the agriculture community, and Current law provides tax credits for another industry as artificially sustained as the ethanol industry. The economics of eth- we have long-term contracts that indi- ethanol producers which are estimated anol are such that, for the industry to sur- viduals have taken out to build the to cost the Treasury $770 million a year vive at all, massive trade protection, tax plants. I hope my colleagues vote in lost revenue, and the Congressional loopholes, contrived mandates for use, and against this provision. Research Service estimates that loss production subsidies are vitally necessary. The PRESIDING OFFICER. The Sen- may increase to $1 billion by the year Only by spooking the public with bogey-men ator from Iowa is recognized. 2000. These huge tax credits effectively such as foreign oil sheiks, toxic air pollu- Mr. GRASSLEY. Mr. President, look increase the tax burden on other busi- tion, and the threatened disappearance of at how wrong the argument of the Sen- nesses and individual taxpayers. the American farmer can attention be de- ator from Arizona is, that when a con- flected from the real costs of the ethanol The current tax subsidies for ethanol house of cards that consumes over a billion sumer doesn’t pay a gasoline tax, it are scheduled to expire in the year 2000. dollars annually. turns out to be a subsidy to an indus- This amendment does not change cur- Mr. President, the House Ways and try. How wrong that argument can be. rent law; it allows the existing gen- Means Committee took a bold step and This is not a subsidy to any industry. If erous subsidies to continue through the included in its revenue reconciliation this amendment passes, after the year year 2000. The amendment merely en- bill a phase-out of ethanol subsidies. In 2000 the consumers of America are sures that the subsidies do expire and the report accompanying the bill, the going to pay more gas tax on that por- are not extended for another 7 years. Committee stated: tion of their gasoline that is ethanol. Mr. President, let me just take a mo- This is good for the environment and [Ethanol tax subsidies] were assumed to be ment and try to explain why we have temporary measures that would allow these good for agriculture. It is good for jobs such generous ethanol subsidies in law fuels to become economical without perma- in the cities—195,000 jobs. It is good for today. The rationale for ethanol sub- nent Federal subsidies. Nearly 20 years have energy independence and everything. It sidies has changed over the years, but passed since that enactment, and neither the is good, good, good.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00021 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6690 CONGRESSIONAL RECORD — SENATE June 27, 1997 Mr. JOHNSON. Mr. President, I rise gallons last year, or about 25 percent of NAYS—69 in opposition to Senator MCCAIN’s domestic consumption. By displacing Abraham DeWine Kerrey amendment to the Revenue Reconcili- the demand for MTBE that would be Akaka Dodd Kerry ation Act that would eliminate the tax Allard Domenici Kohl necessary without ethanol, the U.S. Ashcroft Dorgan Landrieu exemption for ethanol in the year 2000. trade imbalance is reduced by approxi- Baucus Durbin Levin Mr. President, I am proud to stand in mately $1.3 billion annually. But the Bennett Enzi Lott opposition of this amendment. Over the trade implications of ethanol do not Biden Faircloth Lugar Bingaman Feinstein Mack past 3 years, we have been deluged with end there. The majority of the coprod- Bond Ford McConnell a deliberate misinformation campaign ucts of ethanol production—corn glu- Boxer Glenn Mikulski regarding the impact of the domestic ten feed and corn gluten meal—are ex- Breaux Graham Moseley-Braun ethanol industry. The partial excise Brownback Gramm Moynihan ported, further reducing the trade def- Bryan Grams Murkowski tax exemption gasoline marketers re- icit by earning over $800 million annu- Bumpers Grassley Reed ceive for blending their fuel with eth- ally. The net effect is a benefit to the Burns Hagel Reid anol has been disparagingly labeled U.S. trade imbalance of over $2 billion Campbell Harkin Roberts Chafee Hatch Roth corporate welfare. This label patently each year. Cleland Helms Sarbanes ignores the important public benefits Ethanol helps reduce air pollution. Cochran Hutchinson Smith (OR) that result from the production and Ethanol adds oxygen to gasoline which Conrad Inouye Thomas use of fuel ethanol. I thought I would Craig Jeffords Thurmond reduces exhaust emissions of ozone- D’Amato Johnson Torricelli share some of the relevant facts. forming VOC’s and carbon monoxide. It Daschle Kempthorne Wellstone Ethanol production stimulates the is widely used in reformulated gaso- economy in rural America. As a result NOT VOTING—1 lines currently being sold in ozone non- Hollings of progressive policymakers, ethanol is attainment areas across the country. now produced in 53 plants in 19 States. Because ethanol adds octane to gaso- So the amendment (No. 548) was re- The production of fuel ethanol results line, it also reduces the use of other jected. Mr. ROTH. Mr. President, I move to in more than 55,000 high-wage jobs, highly toxic petroleum-derived reconsider the vote by which the generates greater than $2.1 billion in octanes, such as benzene, toluene and amendment was rejected. household income, and adds more than xylene. $7.2 billion to the economy every year. Mr. MOYNIHAN. I move to lay that Ethanol enhances our national secu- Farmers will receive an additional $2.2 motion on the table. rity. This Nation spends billions of dol- billion each year because of ethanol The motion to lay on the table was lars to protect our oil interests around production. Moreover, nearly all new agreed to. the world. It is considerably less costly expansion in the ethanol industry has Mr. ROTH. Senator LANDRIEU is next to defend the corn fields of the Dakotas been completed by farmer-owned co- on the list of offering amendments. than it is to defend foreign oil fields. operatives. The Department of Agri- The PRESIDING OFFICER. The Sen- culture estimates that a 100 million Ethanol is good for agriculture. It is ator from Louisiana is recognized. gallon ethanol plant will add 2,250 jobs good for rural America. It is good for AMENDMENT NO. 532 to a community—enhancing rural de- the environment. It reduces our (Purpose: To allow taxpayers with income velopment and expansion. In short, the dependance on foreign oil. The bottom tax liability to take the child tax credit line is that the Federal tax structure before the earned income tax credit, and ethanol industry is an economic engine for other purposes) driving investment and opportunities for ethanol deserves our continued sup- port. I strongly oppose this amend- Ms. LANDRIEU. Mr. President, I across rural America. have an amendment at the desk. Ethanol promotes competition and ment. The PRESIDING OFFICER. The reduces consumer gasoline costs. Eth- Mr. President, I ask unanimous con- clerk will report. sent that my remarks be inserted in anol extends gasoline supplies, pro- The bill clerk read as follows: vides a valuable source of octane for the appropriate place in the CONGRES- The Senator from Louisiana [Ms. LAN- SIONAL RECORD. independent gasoline marketers, DRIEU] proposes an amendment numbered assures competition in the oxygenate The PRESIDING OFFICER. The 532. market for refiners trying to meet question is on agreeing to the amend- Ms. LANDRIEU. Mr. President, I ask Clean Air Act standards, and reduces ment. unanimous consent that reading of the consumer costs of gasoline. As noted Mr. McCAIN. Mr. President, I ask for amendment be dispensed with. by the Society of Independent Gasoline the yeas and nays. The PRESIDING OFFICER. Without Marketers of America: The PRESIDING OFFICER. Is there a objection, it is so ordered. The federal benefits afforded ethanol- sufficient second? The amendment is as follows: blended fuels have been an important, pro- On page 13, beginning on line 9, strike all competitive influence on the nation’s gaso- There is a sufficient second. through page 17, line 23, and insert the fol- line markets. By enhancing the ability of The yeas and nays are ordered and lowing: independent marketers to price-compete the clerk will call the roll. ‘‘(2) LIMITATION BASED ON ADJUSTED GROSS with their integrated oil company competi- The assistant legislative clerk called INCOME.— tors, this program has increased independent the roll. ‘‘(A) IN GENERAL.—The $500 amount in sub- marketers’ economic viability and reduced Mr. FORD. I announce that the Sen- section (a) shall be reduced (but not below consumers’ costs of gasoline. zero) by $25 for each $1,000 (or fraction there- Recognizing the competitive benefits ator from South Carolina [Mr. HOL- of) by which the taxpayer’s modified ad- of fuel ethanol in the market, Citizen LINGS] is necessarily absent. justed gross income exceeds the threshold Action, the Nation’s largest consumer The PRESIDING OFFICER. Are there amount. For purposes of the preceding sen- organization and strong supporter of any other Senators in the Chamber de- tence, the term ‘modified adjusted gross in- the ethanol tax incentive, recently siring to vote? come’ means adjusted gross income in- creased by any amount excluded from gross stated: The result was announced—yeas 30, income under section 911, 931, or 933. The use of ethanol, a domestically pro- nays 69, as follows: ‘‘(B) THRESHOLD AMOUNT.—For purposes of duced, cleaner-burning renewable fuel helps [Rollcall Vote No. 155 Leg.] subparagraph (A), the term ‘threshold American consumers use less polluting oil amount’ means— and reduces dependence on costly oil im- YEAS—30 ‘‘(i) $90,000 in the case of a joint return, ports, which are in part subsidized by huge Byrd Kennedy Santorum ‘‘(ii) $60,000 in the case of an individual foreign tax credits. Coats Kyl Sessions who is not married, and Collins Lautenberg Shelby ‘‘(iii) $45,000 in the case of a married indi- Ethanol improves the U.S. trade bal- Coverdell Leahy Smith (NH) ance. Ethanol competes with MTBE, a vidual filing a separate return. Feingold Lieberman Snowe For purposes of this subparagraph, marital Frist McCain Specter methanol-derived oxygenate, as an oc- status shall be determined under section tane—oxygenate—additive. Imports of Gorton Murray Stevens Gregg Nickles Thompson 7703. MTBE have risen from just 30 million Hutchison Robb Warner ‘‘(c) QUALIFYING CHILD.—For purposes of gallons in 1992 to more than 700 million Inhofe Rockefeller Wyden this section—

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00022 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6691 ‘‘(1) IN GENERAL.—The term ‘qualifying Mr. President, under the current Mr. FORD. I announce that the Sen- child’ means any individual if— draft of the bill, these working families ator from South Carolina [Mr. HOL- ‘‘(A) the taxpayer is allowed a deduction only get to keep about half of this LINGS] and the Senator from Hawaii under section 151 with respect to such indi- credit. In my State that means 27 per- [Mr. INOUYE], are necessarily absent. vidual for the taxable year, ‘‘(B) such individual has not attained the cent of the families in my State who The PRESIDING OFFICER. Are there age of 17 (age of 18 in the case of taxable are working very hard will not be able any other Senators in the Chamber years beginning after 2002) as of the close of to keep the full amount of this credit. who desire to vote? the calendar year in which the taxable year I know this has been considered care- The yeas and nays resulted—yeas 39, of the taxpayer begins, and fully. But I feel compelled to offer this nays 59, as follows: ‘‘(C) such individual bears a relationship to amendment today. I know that in this [Rollcall Vote No. 156 Leg.] the taxpayer described in section 32(c)(3)(B). bill we are giving tax relief to many ‘‘(2) EXCEPTION FOR CERTAIN NONCITIZENS.— YEAS—39 The term ‘qualifying child’ shall not in- Americans. I believe that these Ameri- Akaka Durbin Levin clude any individual who would not be a de- cans should have the opportunity to Biden Feingold Lieberman pendent if the first sentence of section keep the full $500 tax credit. I ask my Bingaman Feinstein Mikulski 152(b)(3) were applied without regard to all colleagues to give favorable consider- Boxer Ford Murray Breaux Glenn Reed that follows ‘resident of the United States’. ation. It is budget neutral. Bumpers Harkin Reid ‘‘(d) TAXABLE YEAR MUST BE FULL TAX- Mr. MOYNIHAN. Mr. President, I Cleland Johnson Robb ABLE YEAR.—Except in the case of a taxable would hope that there would be no op- Collins Kennedy Sarbanes year closed by reason of the death of the tax- position to this. D’Amato Kerry Snowe payer, no credit shall be allowable under this Daschle Kohl Specter section in the case of a taxable year covering Mr. NICKLES addressed the Chair. Dodd Landrieu Torricelli a period of less than 12 months. The PRESIDING OFFICER. The Sen- Domenici Lautenberg Wellstone Dorgan Leahy Wyden ‘‘(e) RECAPTURE OF CREDIT.— ator’s time has expired. ‘‘(1) IN GENERAL.—If— The Senator from Oklahoma. NAYS—59 ‘‘(A) during any taxable year any amount Mr. NICKLES. Mr. President, much Abraham Frist McCain is withdrawn from a qualified tuition pro- to my colleague’s surprise, there is Allard Gorton McConnell gram or an education individual retirement very serious opposition. Ashcroft Graham Moseley-Braun account maintained for the benefit of a bene- Baucus Gramm Moynihan I hope we can vote this down by a Bennett Grams ficiary and such amount is subject to tax voice vote. Murkowski under section 529(f) or 530(c)(3), and Bond Grassley Nickles ‘‘(B) the amount of the credit allowed This amendment would add outlays Brownback Gregg Roberts and increase Uncle Sam’s writing of Bryan Hagel Rockefeller under this section for the prior taxable year Burns Hatch Roth was contingent on a contribution being made checks for the first 5 years of $9 billion Byrd Helms Santorum to such a program or account for the benefit and over 10 years of $19 billion. And Campbell Hutchinson of such beneficiary, Chafee Hutchison Sessions this amendment would say that we Shelby the taxpayer’s tax imposed by this chapter stack these in order that people get the Coats Inhofe Cochran Jeffords Smith (NH) for the taxable year shall be increased by the income education credit, the wage Conrad Kempthorne Smith (OR) lesser of the amount described in subpara- credit, and the tax credit that we are Coverdell Kerrey Stevens graph (A) or the credit described in subpara- adding to the bill and the EIC. And on Craig Kyl Thomas Thompson graph (B). top of that, for a family with two chil- DeWine Lott ‘‘(2) NO CREDITS AGAINST TAX, ETC.—Any in- Enzi Lugar Thurmond crease in tax under this subsection shall not dren already gets $3,680. Uncle Sam Faircloth Mack Warner be treated as a tax imposed by this chapter will write the check. We would also NOT VOTING—2 for purposes of determining— give $1,000 on top of it. Hollings Inouye ‘‘(A) the amount of any credit under this I want to raise a point of order. subpart or subpart B or D of this part, and Mr. MOYNIHAN. Mr. President, I was The PRESIDING OFFICER. On this ‘‘(B) the amount of the minimum tax im- simply going to say that this matter vote the yeas are 39, the nays are 59. posed by section 55. will surely arise in conference, and Three-fifths of the Senators duly cho- ‘‘(f) OTHER DEFINITIONS.—For purposes of there will be support for it. The White sen and sworn not having voted in the this section, the terms ‘qualified tuition pro- affirmative, the motion is not agreed gram’ and ‘education individual retirement House is very much in favor. I hope we account’ have the meanings given such can resolve it. to. The point of order is sustained, and terms by section 529 and 530, respectively. The PRESIDING OFFICER. The Sen- the amendment falls. ‘‘(g) PHASE IN OF CREDIT.—In the case of ator’s time has expired. Mr. ROTH. Mr. President, I move to taxable years beginning in 1997— Mr. NICKLES. Mr. President, I raise reconsider the vote. ‘‘(1) subsection (a)(1) shall be applied by a point of order under section 302(f) of Mr. MOYNIHAN. I move to lay that substituting ‘$250’ for ‘$500’, and the Budget Act that the amendment motion on the table. ‘‘(2) subsection (c)(1)(B) shall be applied by results in the Finance Committee ex- The motion to lay on the table was substituting ‘age of 13’ for ‘age of 17’.’’ agreed to. (b) CONFORMING AMENDMENT.—The table of ceeding its spending allocation under sections for subpart A of part IV of sub- section 602 of the Budget Act. Mr. ROTH. Senator MCCAIN is next chapter A of chapter 1 is amended by insert- Ms. LANDRIEU addressed the Chair. on the list. ing after the item relating to section 23 the The PRESIDING OFFICER. The Sen- POINT OF ORDER—SECTION 702(D) following new item: ator from Louisiana. Mr. MCCAIN. Mr. President, I yield 30 ‘‘Sec. 24. Child tax credit.’’ Ms. LANDRIEU. Mr. President, I seconds of my 1 minute to raise a point (c) EFFECTIVE DATE.—The amendments want to make a point that this is budg- of order to the Senator from Missouri. made by this section shall apply to taxable et neutral. Technically a point of order The PRESIDING OFFICER. The Sen- years beginning after December 31, 1996. could be raised that this is budget neu- ator from Missouri. Ms. LANDRIEU. Mr. President, I tral in the amendment that I am offer- Mr. BOND. Mr. President, in this want to begin by thanking my col- ing. I would like to, if I could, move to budget agreement some of us thought leagues for their great patience. It has waive and ask for the yeas and nays. there was too much spending and not been a long day. I thank our ranking The PRESIDING OFFICER. Is there a enough tax relief. We find that there member for his great attention to this sufficient second? are even more spending proposals and matter. There is a sufficient second. less tax relief than we thought. This I also want to thank Senators KERRY, The yeas and nays were ordered. point of order is directed at spending JOHNSON, and DURBIN for joining me in VOTE ON MOTION TO WAIVE THE BUDGET ACT on Amtrak in addition to other things. cosponsoring this amendment. The PRESIDING OFFICER. The There is $2.3 billion being spent out of Mr. President, this amendment would question occurs on agreeing to the mo- the tax cut section going to Amtrak. I allow the $500 child tax credit that we tion to waive the Budget Act in rela- join my colleague from Arizona in ask- have talked so much about in the last tion to the Landrieu amendment No. ing that these matters be referred to few days to be available to 20 million 532. The yeas and nays have been or- the authorization for Amtrak and urge families in America that are working dered, and the clerk will call the roll. that the point of order be sustained. very hard. The bill clerk called the roll. Mr. MCCAIN addressed the Chair.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00023 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6692 CONGRESSIONAL RECORD — SENATE June 27, 1997 The PRESIDING OFFICER. The Sen- nancial viability and effectively serve on the path to financial stability and ator from Arizona. millions of Americans. end the annual financial roller coaster Mr. MCCAIN. Mr. President, as chair- It is certainly no secret that Amtrak to which Amtrak is subjected. It would man of the oversight committee, I is in serious financial trouble. Earlier also avoid a catastrophic shutdown of want my colleagues to be clear about this year, the GAO continued a regular Amtrak, which has recently been esti- what is happening. This bill takes $2.3 series of warnings in testifying to the mated to cost upwards of $5 billion dol- billion out of the tax relief promised Finance Committee on the precarious lars. the American people and places it into financial condition of the railroad. Am- Mr. President, Amtrak has presented a trust fund to further subsidize Am- trak President Tom Downs also con- to Congress a responsible 6-year stra- trak. These funds would be appro- firmed to us that his railroad is in dif- tegic business plan which outlines how priated outside of the existing budget ficult shape. A number of States and financial viability will be restored to caps ensuring that Amtrak would not communities have already felt the the railroad. Amtrak’s President Tom have to compete with other transpor- brunt of the railroad’s financial predic- Downs deserves our praise for the mon- tation priorities such as highways or ament as often vital rail service has umental efforts he has undertaken to aviation. been discontinued. turn things around at his company. Mr. President, I raise the point of There are several factors contrib- Congress should do its part and join order that section 702(d) of the bill vio- uting to Amtrak’s condition, but pri- him by providing a relatively modest lates section 313(b)(1)(A) of the Budget marily it is a result of outdated laws Federal investment in passenger rail. I Act, and I ask for the yeas and nays. governing Amtrak’s operation, as well urge my colleagues to support this mo- The PRESIDING OFFICER. There is as inadequate and inconsistent support tion to waive the Budget Act. nothing to ask for them on yet. from the Federal Government. What- Mr. ROTH. I move this point of order Mr. ROTH. Mr. President, at the ever the cause, I think we can all agree be waived, both for now and for the completion of my remarks I yield 10 that Amtrak simply cannot continue conference. seconds to the distinguished Senator to operate under the status quo. The PRESIDING OFFICER. The from New Mexico. Amtrak’s financial predicament has question is on the motion. There is no truth that this has any resulted in calls to end all Federal sup- Mr. ROTH. Mr. President, I ask for impact on tax cuts. The important port for intercity passenger rail—there the yeas and nays. point to understand is that this point are those who would just throw up our The PRESIDING OFFICER. Is there a of order is to kill Amtrak. hands in frustration and walk away. sufficient second? This is very important, both to Sen- Mr. President, I am one who does not There is a sufficient second. ator MOYNIHAN and to myself. Pas- question the need for a Federal invest- The yeas and nays were ordered. senger rail is extremely important to ment in passenger rail. The absence of the entire country. What we have done passenger rail would clog our highways VOTE ON MOTION TO WAIVE THE BUDGET ACT is fully paid for. We do not ask for any and airports—an additional 7,500 fully- The PRESIDING OFFICER. The special treatment. The rail fund is con- booked 757’s, or hundreds of thousands question is on the motion to waive the sistent with the budget resolution of cars, would be needed between Wash- Budget Act. The yeas and nays have agreed to by both Chambers. It has the ington, DC, and New York every year. been ordered. support of Senator DOMENICI and Sen- All major industrialized nations pro- The clerk will call the roll. ator LAUTENBERG. GAO has testified vide subsidies to passenger rail, usually The assistant legislative clerk called that Amtrak will not survive past 1998 to a greater extent than our Govern- the roll. without this crucial funding. ment’s support for Amtrak. In fact, Mr. FORD. I announce that the Sen- We could not wait any longer. I first Amtrak covers more of its operating ator from Hawaii [Mr. INOUYE] and the wanted to say, I therefore ask for your costs—an estimated 84 percent—than Senator from South Carolina [Mr. HOL- votes to this point of order. any other passenger railroad in the LINGS] are necessarily absent. The PRESIDING OFFICER. The world. Nonetheless, Amtrak operates The PRESIDING OFFICER. Are there question is on the motion to waive. the only mode of transportation in the any other Senators in the Chamber Mr. DOMENICI. I was going to an- United States which does not have a who desire to vote? swer the McCain question, but he did dedicated source of funding. The yeas and nays resulted, yeas 77, not have one. Let me just say this is So the question before the Senate nays 21, as follows: provided for in the budget resolution. today is how best to provide needed [Rollcall Vote No. 157 Leg.] The way it is handled, it is totally def- Federal support for Amtrak’s critical YEAS—77 icit-neutral. If the money is not used capital investment needs. After years for Amtrak, we are ahead of the game. of congressional hearings, GAO reports Akaka Faircloth Mack Baucus Feingold McConnell If it is used, it is totally neutral. We and strategic plans, I and many of my Bennett Feinstein Mikulski have done this about 10 times here- colleagues have concluded that dedi- Biden Ford Moseley-Braun tofore in budget reconciliation and cating a portion of the Federal gas tax Bingaman Graham Moynihan budget resolutions. to a Rail Trust Fund is the most appro- Boxer Grassley Murkowski Breaux Hagel Murray The PRESIDING OFFICER. The time priate and reliable means of ensuring Bryan Harkin Nickles of the Senator has expired. that passenger rail can continue to Bumpers Hatch Reed Mr. CHAFEE. Mr. President, I meet America’s transportation needs. Burns Helms Reid Byrd Hutchinson Robb strongly support the provisions within Such a solution provides passenger rail Campbell Hutchison Roberts this bill establishing a Rail Trust Chafee Inhofe with the same type of Federal support Rockefeller Cleland Jeffords Fund, and oppose this point of order. for capital improvements that other Roth Let me first state my view that these Coats Johnson modes of transportation have enjoyed Cochran Kennedy Santorum provisions do not violate the spirit of for years. Collins Kerrey Sarbanes the Byrd rule, which is intended to pre- This bill’s creation of an Intercity Conrad Kerry Smith (OR) Snowe vent unrelated authorization bills from Passenger Rail Fund financed by one- D’Amato Kohl Daschle Landrieu Specter being brought into the reconciliation half cent of the gas tax, coupled with DeWine Lautenberg Stevens process. Section 702 of this bill, which the needed operating reforms con- Dodd Leahy Thomas establishes an Intercity Passenger Rail tained within the Amtrak authoriza- Domenici Levin Thurmond Fund, is primarily tax legislation, Dorgan Lieberman Torricelli tion bill introduced by the Senator Durbin Lott Wellstone which most certainly belongs on legis- from Texas, will allow Amtrak to oper- Enzi Lugar Wyden lation entitled ‘‘The Tax Fairness ate more like a business, end its reli- NAYS—21 Bill’’. ance on Federal operating subsidies, Establishment of a trust fund is a and thus better serve America’s trans- Abraham Coverdell Gramm Allard Craig Grams critical element in providing passenger portation needs. Ashcroft Frist Gregg rail with a stable, predictable source of At least for the 31⁄2 years that this Bond Glenn Kempthorne revenue so that Amtrak can achieve fi- Trust Fund is financed, we will start Brownback Gorton Kyl

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00024 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6693 McCain Shelby Thompson stances, we spend even more on their [Rollcall Vote No. 158 Leg.] Sessions Smith (NH) Warner downstream public health and environ- YEAS—37 NOT VOTING—2 mental consequences. Akaka Gregg Moseley-Braun Hollings Inouye So, as the senior Senator from Ar- Biden Harkin Murray kansas says, this subsidy gives cor- Boxer Jeffords Reed Bumpers Johnson Robb The PRESIDING OFFICER. On this porate welfare a bad name. Coats Kennedy Mr. President, I urge my colleagues Rockefeller vote, the yeas are 77, the nays are 21. Collins Kerrey Sarbanes Three-fifths of the Senators duly cho- to support this provision, and I yield Daschle Kerry Snowe the remainder of my time in deference Dodd Kohl Specter sen and sworn having voted in the af- Durbin Lautenberg Torricelli firmative, the motion is agreed to. to the Senator from Nevada. Feingold Leahy Wellstone The PRESIDING OFFICER. Who Feinstein Levin Mr. ROTH. Mr. President, I move to Wyden reconsider the vote by which the mo- seeks recognition in opposition? The Glenn Lieberman Graham Mikulski tion was agreed to. Senator from Texas. Mr. MOYNIHAN. I move to lay that Mr. GRAMM. Mr. President, it seems NAYS—61 motion on the table. to me we have had enough fun now. I Abraham Domenici Mack The motion to lay on the table was think we ought to reject this amend- Allard Dorgan McCain ment and get on with final passage of Ashcroft Enzi McConnell agreed to. Baucus Faircloth Moynihan Mr. ROTH. The next to be recognized this bill. Bennett Ford This is a tax cut. This is not a place Murkowski is Senator FEINGOLD. Bingaman Frist Nickles to change the way we do accounting for Bond Gorton AMENDMENT NO. 582 Reid mining. If you go out and find a body of Breaux Gramm Roberts Brownback Grams (Purpose: To eliminate the percentage Roth ore, you don’t have an investment you Bryan Grassley depletion allowance for certain minerals) Santorum made in a piece of equipment. You Burns Hagel The PRESIDING OFFICER. The Byrd Hatch Sessions have the asset that you are depleting Shelby clerk will report the amendment. as you produce it. Campbell Helms The legislative clerk read as follows: Chafee Hutchinson Smith (NH) Every developed nation in the world Cleland Hutchison Smith (OR) The Senator from Wisconsin [Mr. FEIN- has depletion allowance, because they Cochran Inhofe Stevens GOLD], for himself and Mr. BUMPERS, pro- want to produce the riches of their Conrad Kempthorne Thomas poses an amendment numbered 582. Thompson lands. This is a bad amendment and Coverdell Kyl Mr. FEINGOLD. Mr. President, I ask Craig Landrieu Thurmond ought to be rejected. D’Amato Lott Warner unanimous consent that the reading of Mr. ROTH. Mr. President, the pend- DeWine Lugar the amendment be dispensed with. ing amendment is not germane to the NOT VOTING—2 The PRESIDING OFFICER. Without provisions of the reconciliation meas- Hollings Inouye objection, it is so ordered. ure. I, therefore, raise a point of order The amendment is as follows: against the amendment under section The PRESIDING OFFICER. On this On page 400, between lines 14 and 15, insert 305(b)(2) of the Budget Act. vote the yeas are 37, the nays are 61. the following: Mr. FEINGOLD. Mr. President, I Three-fifths of the Senators duly cho- SEC. . CERTAIN MINERALS NOT ELIGIBLE FOR move to waive the Budget Act and ask sen and sworn not having voted in the PERCENTAGE DEPLETION. for the yeas and nays. affirmative, the motion is rejected. (a) IN GENERAL.—Section 613(b)(1) (relating The PRESIDING OFFICER. Is there a The point of order is sustained, and the to percentage depletion rates) is amended— amendment falls. (A) in subparagraph (A), by striking ‘‘and sufficient second? uranium’’; and There is a sufficient second. Mr. ROTH. I move to reconsider the (B) in subparagraph (B), by striking ‘‘as- The PRESIDING OFFICER. The vote. bestos,’’, ‘‘lead,’’, and ‘‘mercury,’’. question is on agreeing to the motion Mr. MOYNIHAN. I move to lay that (b) CONFORMING AMENDMENTS.— to waive the Budget Act. motion on the table. (1) Section 613(b)(3)(A) is amended by in- Mr. NICKLES. There wasn’t a second. The motion to lay on the table was serting ‘‘other than lead, mercury, or ura- The PRESIDING OFFICER. Is there a agreed to. nium’’ after ‘‘metal mines’’. sufficient second? Mr. BOND addressed the Chair. (2) Section 613(b)(4) is amended by striking There is not a sufficient second. The PRESIDING OFFICER. The Sen- ‘‘asbestos (if paragraph (1)(B) does not Mr. FEINGOLD. Mr. President, I sug- apply),’’. ator from Missouri. gest the absence of a quorum. Mr. BOND. I want to get a unanimous (3) Section 613(b)(7) is amended by striking The PRESIDING OFFICER. The ‘‘or’’ at the end of subparagraph (B), by consent. striking the period at the end of subpara- clerk will call the roll. Mr. ROTH addressed the Chair. graph (C) and inserting ‘‘, or’’, and by insert- The assistant legislative clerk pro- The PRESIDING OFFICER. The Sen- ing after subparagraph (C) the following: ceeded to call the roll. ator from Delaware. ‘‘(D) mercury, uranium, lead, and asbes- Mr. NICKLES. Mr. President, I ask tos.’’ unanimous consent that the order for AMENDMENTS NOS. 583, 584, 585, 586, 587, 588, AND 589 (4) Section 613(c)(4)(D) is amended by strik- the quorum call be rescinded. ing ‘‘lead,’’ and ‘‘uranium,’’. The PRESIDING OFFICER. Without Mr. ROTH. Mr. President, I ask unan- (c) EFFECTIVE DATE.—The amendments objection, it is so ordered. imous consent to send the following made by this section shall apply to taxable Mr. FEINGOLD. I ask for the yeas amendments to the desk, and I ask years beginning after December 31, 1996. and nays. unanimous consent that they be con- The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Is there a sidered en bloc: Senator GRAHAM, pen- ator from Wisconsin. sufficient second? sion technicals; the second one is Sen- Mr. FEINGOLD. Mr. President, this There is a sufficient second. ators NICKLES and BOND, sense of the amendment eliminates percentage de- The yeas and nays were ordered. Senate regarding self-employment tax; pletion allowances for four mined sub- VOTE ON MOTION TO WAIVE THE BUDGET ACT the third is Senator SPECTER, penalty- stances—asbestos, lead, mercury, and The PRESIDING OFFICER. The free withdrawal on adoption; the fourth uranium—and it saves an estimated $83 question is on agreeing to the motion is Senator FAIRCLOTH, tax-exempt bond million over 5 years. to waive the Budget Act. The yeas and refunding; the fifth is Senator GORTON, Unlike depreciation or cost deple- nays have been ordered. The clerk will bad debt reserve recapture; the sixth is tion, percentage depletion allows com- call the roll. Senator SANTORUM, sense of the Senate panies to deduct far more than their The legislative clerk called the roll. on tax cuts; and the final one is BURNS, actual costs. This results in a generous Mr. FORD. I announce that the Sen- income averaging for farmers. loophole for the company and an ex- ator from Hawaii [Mr. INOUYE] and the The PRESIDING OFFICER. Without pensive subsidy for the taxpayer. But it Senator from South Carolina [Mr. HOL- objection, it is so ordered. gets worse, Mr. President. LINGS] are necessarily absent. The clerk will report the amend- While we spend millions subsidizing The yeas and nays resulted—yeas 37, ments. corporations to mine these toxic sub- nays 61, as follows: The legislative clerk read as follows:

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The Senator from Delaware [Mr. ROTH] ‘‘(A) CERTAIN MINISTERS MAY PARTICI- who are limited partners under applicable proposes amendments numbered 583, 584, 585, PATE.—For purposes of this part— State law exceeds the regulatory authority 586, 587, 588, and 589. ‘‘(i) IN GENERAL.—A duly ordained, com- of the Treasury Department and would effec- The amendments are as follows: missioned, or licensed minister of a church is tively change the law administratively with- described in paragraph (3)(B) if, in connec- out congressional action; and AMENDMENT NO. 583 tion with the exercise of their ministry, the (6) the proposed regulations address and (Purpose: To provide for various minister— raise significant policy issues and the pro- amendments) ‘‘(I) is a self-employed individual (within posed definition of a limited partner may the meaning of section 401(c)(1)(B), or On page 93, strike lines 13 through 25, and have a substantial impact on the tax liabil- ‘‘(II) is employed by an organization other insert: ity of certain individuals and may also affect than an organization which is described in ‘‘(ii) a silver coin described in section individuals’ entitlement to social security section 501(c)(3) and with respect to which 5112(e) of title 31. United States Code, benefits. the minister shares common religious bonds. ‘‘(iii) a platinum coin described in section (b) SENSE OF SENATE.—It is the sense of the ‘‘(ii) TREATMENT AS EMPLOYER AND EM- 5112(k) of title 31. United States Code, or Senate that— PLOYEE.—For purposes of sections (1) the Department of the Treasury and the ‘‘(iv) a coin issued under the laws of any 403(b)(1)(A) and 404(a)(10), a minister de- Internal Revenue Service should withdraw State, or scribed in clause (i)(I) shall be treated as em- Proposed Regulation 1.1402(a)–2 which im- ‘‘(B) any gold, silver, platinum, or palla- ployed by the minister’s own employer which poses a tax on limited partners; and dium bullion of a fineness equal to or exceed- is an organization described in section (2) Congress, not the Department of the ing the minimum fineness required for met- 501(c)(3) and exempt from tax under section Treasury or the Internal Revenue Service, als which may be delivered in satisfaction of 501(a).’’ should determine the tax law governing self- a regulated futures contract subject to regu- (B) Section 403(b)(1)(A) is amended by employment income for limited partners. lation by the Commodity Futures Trading striking ‘‘or’’ at the end of clause (i), by in- Commission under the Commodity Exchange serting ‘‘or’’ at the end of clause (ii), and by AMENDMENT NO. 585 Act, adding at the end the following new clause: (Purpose: To allow penalty-free IRA On page 205, before line 12, insert the fol- ‘‘(iii) for the minister described in section lowing: withdrawals for adoption expenses) 415(e)(5)(A) by the minister or by an em- On page 20, between lines 5 and 6, insert (c) SPECIAL AMORTIZATION RULE.— ployer,’’. (1) CODE AMENDMENT.—Section 412(b)(2) is the following: SEC. 105. ADOPTION EXPENSES. amended by striking ‘‘and’’ at the end of sub- AMENDMENT NO. 584 paragraph (C), by striking the period at the (a) DISTRIBUTIONS FROM CERTAIN PLANS (Purpose: To express the sense of the Senate end of subparagraph (D) and inserting ‘‘, MAY BE USED WITHOUT PENALTY TO PAY with respect to the proposed regulations of and’’, and by inserting after subparagraph ADOPTION EXPENSES.— the Internal Revenue Service with respect (D) the following: (1) IN GENERAL.—Section 72(t)(2) (relating to self-employment income for limited ‘‘(E) the amount necessary to amortize in to exceptions to 10-percent additional tax on partners) equal annual installments (until fully amor- early distributions from qualified retirement tized) over a period of 20 years the contribu- On page 212, between lines 11 and 12, insert plans) is amended by adding at the end the tions which would be required to be made the following: following: under the plan but for the provisions of sub- SEC. . SENSE OF THE SENATE WITH RESPECT TO ‘‘(E) DISTRIBUTIONS FROM CERTAIN PLANS section (c)(7)(A)(i)(I).’’. SELF-EMPLOYMENT TAX OF LIMITED FOR ADOPTION EXPENSES.—Distributions to an PARTNERS. (2) ERISA AMENDMENT.—Section 302(b)(2) of individual from an individual retirement the Employee Retirement Income Security (a) FINDINGS.—The Senate finds that— plan of so much of the qualified adoption ex- (1) the Department of the Treasury issued Act of 1974 (29 U.S.C. 1082(b)(2)) is amended penses (as defined in section 23(d)(1)) of the Proposed Regulation 1.1402(a)–2 in January by striking ‘‘and’’ at the end of subparagraph individual as does not exceed $2,000.’’. 1997 relating to the definition of a limited (C), by striking the period at the end of sub- (2) CONFORMING AMENDMENT.—Section partner for self-employment tax purposes paragraph (D) and inserting ‘‘, and’’, and by 72(t)(2)(B) is amended by striking ‘‘or (D)’’ under section 1402(a)(13) of the Internal Rev- inserting after subparagraph (D) the fol- and inserting ‘‘, (D) or (E)’’. enue Code; lowing: (3) EFFECTIVE DATE.—The amendments (2) since 1977, section 1402(a)(13) of such ‘‘(E) the amount necessary to amortize in made by this subsection shall apply to pay- Code has provided that— equal annual installments (until fully amor- ments and distributions after December 31, (A) a limited partner’s net earnings from tized) over a period of 20 years the contribu- 1996. self-employment include only guaranteed tions which would be required to be made payments made to the individual for services under the plan but for the provisions of sub- AMENDMENT NO. 586 actually rendered and do not include a lim- section (c)(7)(A)(i)(I).’’. (Purpose: To permit the current refunding of ited partner’s distributive share of the in- (3) CONFORMING AMENDMENTS.— certain tax-exempt bonds) come or loss of the partnership, and (A) Section 412(c)(7)(D) is amended by add- (B) a general partner’s net earnings from On page 267, between lines 15 and 16, insert ing ‘‘and’’ at the end of clause (i), by striking self-employment include the partner’s dis- the following: ‘‘, and’’ at the end of clause (ii) and inserting tributive share; SECTION . CURRENT REFUNDINGS OF CERTAIN a period, and by striking clause (iii). (3) the proposed regulations provide gen- TAX-EXEMPT BONDS. (B) Section 302(c)(7)(D) of the Employee erally— (a) IN GENERAL.—Subsection (c) of section Retirement Income Security Act of 1974 (29 (A) that a partner will not be treated as a 10632 of the Revenue Act of 1987 (relating to U.S.C. 1082(c)(7)(D)) is amended by adding limited partner if the individual— bonds issued by Indian tribal governments) ‘‘and’’ at the end of clause (i), by striking ‘‘, (i) has personal liability for partnership is amended by adding at the end the fol- and’’ at the end of clause (ii) and inserting a debts, lowing new sentence: ‘‘The amendments period, and by striking clause (iii). (ii) has authority to contract on behalf of made by this section shall not apply to any (4) EFFECTIVE DATES.— the partnership, or obligation issued after such date if— (A) IN GENERAL.—The amendments made (iii) participates in the partnership’s trade ‘‘(1) such obligation is issued (or is part of by this subsection shall apply to plan years or business for more than 500 hours during a series of obligations issued) to refund an beginning after December 31, 1998. the taxable year; obligation issued on or before such date, (B) SPECIAL RULE FOR 1999.—In the case of a (B) that an individual meeting any one of ‘‘(2) the average maturity date of the issue plan’s first year beginning in 1999, there these three criteria will be treated as a gen- of which the refunding obligation is a part is shall be added to the amount required to be eral partner, and net earnings from self-em- not later than the average maturity date of amortized under section 412(b)(2)(E) of the ployment will include the partner’s distribu- the obligations to be refunded by such issue, Internal Revenue Code of 1986 and section tive share of partnership income and loss, re- ‘‘(3) the amount of the refunding obligation 302(b)(2)(E) of the Employee Retirement In- sulting in substantial tax liability because does not exceed the outstanding amount of come Security Act of 1974 (as added by para- there is a 15.3 percent tax on self-employ- the refunded obligation, and graphs (1) and (2)) over the 20-year period be- ment income below $65,400 in 1997 and a 2.9 ‘‘(4) the net proceeds of the refunding obli- ginning with such year, the unamortized bal- percent hospital insurance tax on self-em- gation are used to redeem the refunded obli- ance (as of the close of the preceding plan ployment income above that amount; gation not later than 90 days after the date year) of any amount required to be amor- (4) certain types of entities, such as lim- of the issuance of the refunding obligation. tized under section 412(c)(7)(D)(iii) of such ited liability companies and limited liability For purposes of paragraph (2), average matu- Code and section 302(c)(7)(D)(iii) of such Act partnerships, were not widely used at the rity shall be determined in accordance with (as repealed by paragraph (3)) for plan years time the present rule relating to limited section 147(b)(2)(A) of the Internal Revenue beginning before 1999. partners was enacted, and that the proposed Code of 1986.’’ On page 639, between lines 11 and 12, insert: regulations attempt to address owners of (b) EFFECTIVE DATE.—The amendment (4) AMENDMENTS RELATED TO SECTION 1461.— such entities; made by subsection (a) shall apply to refund- (A) Section 415(e)(5)(A) is amended to read (5) the Senate is concerned that the pro- ing obligations issued after the date of the as follows: posed change in the treatment of individuals enactment of this Act.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00026 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6695 CAROLINA MIRROR CO. to the suburbs. The outside world is ir- ‘‘(ii) APPLICATION OF CUT-OFF METHOD; Mr. FAIRCLOTH. Mr. President, I relevant. The real jobs of real people ETC.—In the case of a taxpayer to which this rise to offer this amendment on behalf are irrelevant. subparagraph applies— of the Eastern Band of Cherokee Indi- The amendment that I offer today is ‘‘(I) paragraph (5)(B) shall apply, and ‘‘(II) this subparagraph shall not apply in ans in my home state of North Caro- a technical bill to allow Indian tribes determining the amount taken into account lina. to refinance tax-exempt bonds issued by the taxpayer under subparagraph (A)(ii) In 1982, the Congress passed legisla- on or before October 13, 1997. This bill for purposes of paragraph (5) and (6) or sub- tion to allow Indian tribes to issue tax has a very narrow application. In fact, section (e)(1).’’ exempt bonds, just like other units of I introduced this bill last year as S. (b) EFFECTIVE DATE.—The amendment government. The legislation recognized 1676. The Joint Committee on Taxation made by this section shall take effect as if the rights of the tribes and confirmed said last year—and again this year— included in the amendments made by section their parallel rights to States, coun- that this bill will have a ‘‘negligible ef- 1616 of the Small Business Job Protection Act of 1996. ties, and cities. fect on budget receipts.’’ The 1982 act thus acknowledged just Let’s do the right thing for the AMENDMENT NO. 588 what most of us knew: that Indian Cherokees. Let’s tell the IRS that (Purpose: To express the sense of the Senate tribes are legitimate units of govern- American jobs matter and the Congress that America’s middle-class taxpayers shoulder the biggest tax burden and that ment with wide-ranging responsibil- stands behind the working men and only those who pay Federal income taxes ities. women of this country. should benefit from the Federal income tax Using the act, the Cherokee Indians I urge my colleagues to support the cuts contained in the Revenue Reconcili- in my State issued $31 million in tax- amendment. ation Act of 1997) exempt bonds to purchase the Carolina Mr. HELMS. Mr. President, this On page 267, between lines 15 and 16, insert Mirror Co. The tribal leadership viewed amendment corrects a serious problem the following: the purchase of Carolina Mirror Co. as Congress created in 1987 when the defi- SEC. . SENSE OF THE SENATE. a means to promote jobs and economic nition for ‘‘essential government func- (a) FINDINGS.—The Senate finds that— development for their tribe and its tions’’ was inadvertently changed re- (1) Congress has not provided a genuine tax members. The Cherokee have faced lating to native American tribes, cut for America’s middle-class families since some tough times over the years. The thereby inhibiting the tribes’ use of 1981; (2) President Clinton promised middle- Carolina Mirror Co. purchase was a tax-exempt bonds. Prior to 1987, the class tax cuts in 1992; way to invest in the future of their Cherokee Tribe and other tribes used (3) President Clinton raised taxes by tribe and their people. tax-exempt bonds to finance ‘‘essential $240,000,000,000 in 1993; Carolina Mirror today is the largest government functions.’’ In 1986, the (4) President Clinton vetoed middle-class manufacturer of mirrors in the Nation. Eastern Band of Cherokee Indians, in tax cuts in 1995; It employees over 500 people. It is an western North Carolina, used this pro- (5) the middle-class American worker had economic engine. It produces jobs and vision to purchase the Carolina Mirror to work until May 9 in order to earn enough hope for a people that have seen little Co. to ensure the Cherokee Tribe’s money to pay all Federal, State, and local taxes in 1997; of both over the years. long-term economic development. The (6) the Joint Economic Committee reports In 1986, however, the Congress passed Cherokees worked hard and built Caro- that real total Government taxes per house- new legislation that narrowed the in- lina Mirror into the largest producer of hold in 1994 totaled $18,600; terpretation of the original 1982 act. It mirrors in the United States. (7) more than 70 percent of the tax cuts in changed the act so that tax-exempt Then, Congress changed the rules in both the House of Representatives and the bonds could only be used to finance the Omnibus Budget Reconciliation Senate tax relief bills will go to Americans ‘‘essential government functions.’’ Act of 1987, and narrowed the definition earning less than $75,000 annually; Mr. President, as you know, interest of ‘‘essential government functions’’, (8) the Joint Economic Committee esti- mates that a family of 4 earning $30,000 will rates are at historically low levels. I and today Carolina Mirror is in default receive 53 percent of the tax relief under the know that not enough of us have ever and may be forced to close its Texas reconciliation bill; been in business and met a payroll, as operation because of a staggering (9) the earned income tax credit was al- I have for the past 50 years. Well, inter- monthly obligation of $300,000. This ready expanded in President Clinton’s 1993 est rates are the difference between amendment would allow these hard- tax bill; profitability and bankruptcy, between working native Americans to refinance (10) the fiscal year 1998 budget resolution jobs for the community and a lock on their current bonds at more competi- does not make the $500-per-child tax credit the factory gate. Needless to say, the refundable; and tive rates. The Joint Committee on (11) those who receive the earned income Cherokees are eager to take advantage Taxation asserts that this purely tech- tax credit do not pay Federal income taxes of lower interest rates and to refinance nical amendment will have a ‘‘neg- but receive a substantial cash transfer from these bonds. ligible effect on the Federal fiscal year the Federal Government in the form of re- The interest rate on these bonds is so budget receipts.’’ fund checks above and beyond income tax re- high that the Carolina Mirror Co. lit- AMENDMENT NO. 587 bates. (b) SENSE OF THE SENATE.—It is the sense erally spends almost all of its profits (Purpose: Relating to repeal of bad debt re- of the Senate that America’s middle-class on interest payments. This is dev- serve method for thrift savings associa- taxpayers shoulder the biggest tax burden astating for the company. tions) and that only those who pay Federal income When the company attempted to re- At the end of title VII, insert: taxes should benefit from the Federal in- issue the bonds, however, some IRS bu- SEC. . SPECIAL RULE FOR THRIFTS WHICH BE- come tax cuts contained in the Revenue Rec- reaucrat stepped away from the water COME LARGE BANKS onciliation Act of 1997. cooler long enough to say ‘‘no.’’ The (a) IN GENERAL.—Section 593(g)(2) (defining great minds at the IRS ruled that a re- applicable excess reserves) is amended by AMENDMENT NO. 589 financing constituted a reissuance and adding at the end the following new subpara- (Purpose: To allow farmers to income stopped the tribe from its plans to refi- graph: average over 3 years) ‘‘(C) SPECIAL RULE FOR THRIFTS WHICH BE- nance these high interest bonds. CAME LARGE BANKS IN 1995.— On page 267, between lines 15 and 16, insert By reissuing bonds at a lower rate, ‘‘(i) IN GENERAL.—In the case of a bank (as the following: the company could save nearly a mil- defined in section 581) which became a large SEC. 780. AVERAGING OF FARM INCOME OVER 3 lion dollars a year, but the IRS does bank (as defined in section 585(c)(2)) for its YEARS. not look at the situation. The 500 jobs first taxable year beginning after December (a) IN GENERAL.—Subpart B of part II of do not matter. The investment of the 31, 1994, the balance taken into account subchapter E of chapter 1 of the Internal under subparagraph (A)(ii) shall not be less Revenue Code of 1986 (relating to taxable Cherokees in the company does not year for which items of gross income in- matter. No, all that matters is that we than the amount which would be the balance of such reserves as of the close of its last cluded) is amended by adding the following follow the mindless dictate of an taxable year beginning before January 1, new section: unelected, unaccountable bureaucrat 1995, if the additions to such reserves for all ‘‘SEC. 460A. AVERAGING OF FARM INCOME. holed up in a Federal office building taxable years had been determined under ‘‘(a) IN GENERAL.—At the election of a tax- waiting for the 4 o’clock vanpool back section 585(b)(2)(A). payer engaged in a farming business, the tax

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00027 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6696 CONGRESSIONAL RECORD — SENATE June 27, 1997 imposed by section 1 for such taxable year and the average American out there Sessions Specter Torricelli shall be equal to the sum of— who owns a capital asset. Shelby Thomas Warner ‘‘(1) a tax computed under such section on Smith (NH) Thompson Wyden Specifically, what the amendment Smith (OR) Thurmond taxable income reduced by elected farm in- does is—it is pretty much the same in- come, plus NAYS—57 dexing provision that was reported out ‘‘(2) the increase in tax which would result Akaka Dorgan Lautenberg if taxable income for the 3 prior taxable of the House except that it delays the Baucus Durbin Leahy years were increased by the elected farm in- implementation of it to 2002. The hold- Bennett Feingold Levin come. ing period of the property would Biden Feinstein Lieberman ‘‘(b) DEFINITIONS.—In this section— change from 3 to 5 years. Bingaman Ford Lugar Boxer Glenn Moseley-Braun ‘‘(1) ELECTED FARM INCOME.— Just briefly, there are two other very Breaux Gorton Moynihan ‘‘(A) IN GENERAL.—The term ‘elected farm important points that I would like to Bryan Graham Murkowski income’ means so much of the taxable in- make about this particular amend- Bumpers Grassley Murray come for the taxable year— Byrd Hagel Nickles ‘‘(i) which is attributable to any farming ment. Chafee Harkin Reed business; and It is revenue neutral over 10 years, as Cleland Hatch Reid ‘‘(ii) which is specified in the election scored by the Joint Committee on Tax- Cochran Jeffords Robb under subsection (a). ation; and, No. 2, it is germane, and in Collins Johnson Rockefeller Conrad Kennedy Roth ‘‘(B) TREATMENT OF GAINS.—For purposes of fact it does blend within the current D’Amato Kerrey Sarbanes subparagraph (A), gain from the sale or other language of the bill. Daschle Kerry Snowe disposition of property (other than land) reg- I yield back the remainder of my Dodd Kohl Stevens ularly used by the taxpayer in a farming Domenici Landrieu Wellstone business for a substantial period shall be time. NOT VOTING—2 treated as attributable to a farming busi- The PRESIDING OFFICER. Who ness. seeks recognition in opposition? Hollings Inouye ‘‘(2) FARMING BUSINESS.—The term ‘farm- Mr. ROTH. Mr. President, I commend The amendment (No. 577) was re- ing business’ has the meaning given such my friend from Colorado on offering jected. term by section 263A(e)(4).’’ this amendment. It is unfortunate that Mr. ROTH. I move to reconsider the (b) CLERICAL AMENDMENT.—The table of I must vote against it. sections for such subpart B is amended by vote. adding at the end the following new item: The Senator may not be aware of Mr. MOYNIHAN. I move to lay it on this, but in 1993 I introduced a bill that the table. ‘‘Sec. 460A. Averaging of farm income.’’ called for the indexing of capital as- The motion to lay on the table was (c) EFFECTIVE DATE.—The amendments sets. But today, we are not only deal- agreed to. made by this section shall apply to taxable years beginning after the date of the enact- ing with economic issues, President AMENDMENT NO. 590 ment of this Act and before January 1, 2001. Clinton has said he will veto any tax (Purpose: To make the HOPE credit Section 503 of the bill is amended on page bill that includes indexing of capital refundable, and for other purposes) 161, line 4 by striking ‘‘July 31, 1999’’ and in- gains. Mr. WELLSTONE. Mr. President, I serting ‘‘May 31, 1999.’’ I have an article from last Thurs- send an amendment to the desk. Mr. ROTH. Mr. President, I move day’s Wall Street Journal. The title of The PRESIDING OFFICER. The their adoption. the article is ‘‘Clinton Rules Out Index- clerk will report. The PRESIDING OFFICER. Without ing of Capital Gains in Tax Bill.’’ The The legislative clerk read as follows: objection, the amendments are agreed first paragraph says the President The Senator from Minnesota [Mr. to en bloc. ‘‘will not sign a tax bill that includes WELLSTONE], for himself, Mr. BINGAMAN, Mr. The amendments en bloc, were indexing of capital gains for inflation.’’ KERRY, Mr. KENNEDY, Mr. REED, Mr. DODD, agreed to. We have a historic opportunity today and Mr. DASCHLE, proposes an amendment Mr. ALLARD addressed the Chair. to deliver badly needed tax cuts to numbered 590. The PRESIDING OFFICER. The Sen- Americans. I would like to provide Mr. WELLSTONE. I ask unanimous ator from Colorado. greater tax relief, but we cannot, and consent the reading of the amendment be dispensed with. AMENDMENT NO. 577 ‘‘half a loaf’’ is better than ‘‘no loaf.’’ So I urge my colleagues to vote The PRESIDING OFFICER. Without [Purpose: To provide for the indexing of objection, it is so ordered. assets to determine capital gain] against this amendment. (The text of the amendment is print- Mr. ALLARD. I have at the desk I ask for the yeas and nays. The PRESIDING OFFICER. All time ed in today’s RECORD under ‘‘Amend- amendment No. 577. I ask that the ments Submitted.’’) clerk call it up. has expired. Is there a sufficient second? Mr. WELLSTONE. This is about the The PRESIDING OFFICER. The HOPE scholarship program. If the tax clerk will report. There appears to be a sufficient sec- ond. credits will work for working families, The assistant legislative clerk read these should be refundable credits. I as follows: The yeas and nays were ordered. The PRESIDING OFFICER. The ask for full support. The offset is re- The Senator from Colorado [Mr. ALLARD], question is on agreeing to the amend- sponsible. for himself, Mr. BROWNBACK, and Mr. ABRA- Everybody is under all this pressure. HAM, proposes an amendment numbered 577. ment. The yeas and nays have been or- I ask for a voice vote. Mr. ALLARD. Mr. President, I ask dered. The Clerk will call the roll. The assistant legislative clerk called The PRESIDING OFFICER. The unanimous consent that further read- question is on agreeing to the amend- ing of the amendment be dispensed the roll. Mr. FORD. I announce that the Sen- ment. with. The amendment (No. 590) was re- ator from South Carolina [Mr. HOL- The PRESIDING OFFICER. Without jected. LINGS] and the Senator from Hawaii objection, it is so ordered. AMENDMENT NO. 591 [Mr. INOUYE] are necessarily absent. (The text of the amendment is print- (Purpose: To allow non-Amtrak states to ed in today’s RECORD under ‘‘Amend- The result was announced—yeas 41, nays 57, as follows: provide alternative intercity transport as- ments Submitted.’’) sistance) [Rollcall Vote No. 159 Leg.] Mr. ALLARD. Mr. President, let me Mr. ROTH. On behalf of Senator ENZI, briefly explain what this amendment is YEAS—41 I ask unanimous consent to send the all about. This is an amendment in Abraham DeWine Inhofe following amendment to the desk, and which we address the indexing of cap- Allard Enzi Kempthorne Ashcroft Faircloth Kyl I ask it be considered and agreed to. ital gains. When we index capital gains, Bond Frist Lott The PRESIDING OFFICER. The what we are talking about is pro- Brownback Gramm Mack clerk will report. tecting long-term investors from tax- Burns Grams McCain The legislative clerk read as follows: ation on inflationary gains. This helps Campbell Gregg McConnell Coats Helms Mikulski The Senator from Delaware [Mr. ROTH], for the family business, the family farm, Coverdell Hutchinson Roberts Mr. ENZI, proposes an amendment numbered and the family ranch. It is the family Craig Hutchison Santorum 591.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00028 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6697 Mr. ROTH. I ask unanimous consent During this same period, median children’s education. I am confident that reading of the amendment be dis- household income rose 84 percent and with passage of this language these pensed with. the consumer price index rose a mere programs will grow dramatically. The PRESIDING OFFICER. Without 74 percent. The College Board reports Many Kentuckians are drawn to this objection, it is so ordered. that tuition costs for the 1996–97 school program because it offers a low-cost, The amendment is as follows: year will rise 5 percent while average disciplined approach to savings. In On page 190, line 1, strike ‘‘(III)’’ and insert room and board costs will rise between fact, the average monthly contribution ‘‘(IV)’’ and insert a new subparagraph 4 to 6 percent. While education costs in Kentucky is just $49. This proposal (A)(ii)(III)— have moderated throughout the 1990’s, rewards those who are serious about ‘‘(VI) the upgrading and maintenance of they continue to outstrip the gains in their future and are committed over intercity primary and rural air service facili- the long-term to the education of their ties, and the purchase of intercity air service income. Tuition has now become the between primary and rural airports and re- greatest barrier to attendance. children by exempting all interest gional hubs; and’’. Due to the rising cost of education, earnings from State taxes. It is also Mr. ROTH. This has been cleared on more and more families have come to important to note that 58 percent of both sides of the aisle. The amendment rely on financial aid to meet tuition the participants earn under $60,000 per year. Clearly, this benefits middle- corrects a minor drafting error in the costs. In fact, a majority of all college students accept some amount of finan- class families. bill. Mr. President, the Finance Com- The PRESIDING OFFICER. The cial assistance. In 1995, $50 billion in fi- mittee has expanded the language to question is on agreeing to the amend- nancial aid was available to students permit private nonprofit colleges to es- ment. from Federal, State, and institutional tablish their own tuition savings plans The amendment (No. 591) was agreed sources. This was $3 billion higher than as well as establishing education IRA’s. to. the previous year. A majority of this increase has come in the form of loans, This will ensure that all families have QUALIFIED TUITION SAVINGS ACCOUNTS an opportunity to save. This legisla- which now make up the largest portion Mr. MCCONNELL. Mr. President, I tion also allows individuals who in- of the total Federal-aid package at 57 have come to the floor today in support vested in Savings Bonds to roll them percent. Grants, which a decade ago of the tuition savings provision in- over into the qualified State plan. This made up 49 percent of assistance, have cluded in this bill. I believe the Fi- is a commonsense provision that will been reduced to 42 percent. This shift nance Committee has done a thorough give those who are already saving the toward loans further burden students job providing broad incentives to help flexibility to invest in prepaid plans if and families with additional interest families save and provide for the edu- available. cation of their children. costs. It is important that we not for- It is in our best interest as a nation I commend Senator ROTH and the Fi- get that compound interest cuts both to maintain a quality and affordable nance Committee for their efforts to ways. By saving, participants can keep education system for everyone. We include many of the provisions in S. pace with tuition increases while put- need to decide on how we will spend 594, the College Savings Act. The Fi- ting a little away at a time. By bor- our limited Federal resources to ensure nance Committee has included lan- rowing, students must bear added in- that both access and quality are main- guage to make earnings in qualified terest costs that add thousands to the tained. It is unrealistic to assume that tuition savings plans exempt from tax- total cost of tuition. the Government can afford to provide ation as well as expanding the defini- State-sponsored tuition savings plans Federal assistance for everyone. How- tion of qualified education costs to in- have pioneered efforts to provide fami- ever, at a modest cost, we can help clude room and board. Once imple- lies with opportunities to save as a families help themselves by rewarding mented this legislation will reward all hedge against tuition inflation. States savings. This reduces the cost of edu- families who plan ahead and save for a have established affordable tuition in- cation and will not unnecessarily bur- child’s education. vestment plans that guarantee parents den future generations with thousands For the past several years, I have a minimum level of investment return of dollars in loans. worked hard to make college more af- or guarantee a future education at to- Let me close by saying that I com- fordable by helping families who save. day’s prices. Such guarantees offer mend the work of Senator GRAHAM and In both the 103d and 104th Congresses, I middle-class families the piece of mind his staff on the issue of tuition savings. introduced legislation to make earn- that their children will be able to meet His cooperation and hard work have ings invested in State-sponsored tui- the tuition obligation and reduce the ensured that this issue enjoys bipar- tion savings plans exempt from Federal need to take on thousands of dollars in tisan support. I would also like to taxation. States have also recognized loans. thank the chairman of the Finance the needs of families and have provided States like Michigan, Florida, Ohio, Committee for all his efforts in making incentives for them to save or prepay and Kentucky were the first programs education savings the cornerstone of their children’s education. State sav- to be started in order to help families this package. ings plans provide families a safe, af- save for college. Today, there are 15 EXTENDING THE SMALL BLENDERS ETHANOL TAX fordable, and disciplined means of pay- States with programs in operation. An CREDIT TO FARMER-OWNED COOPERATIVES ing for their children’s education. additional 4 States will implement Mr. WELLSTONE. Mr. President, the Last year, Congress took the first their programs this year. Also, I am in- tax bill before us includes important step in providing tax relief to families formed by the college savings network tax incentives for the use of ethanol. investing in these programs. The provi- that every other State, except Georgia, These tax incentives have been critical sions contained in the Small Business which has implemented the HOPE to the growth of the ethanol industry, Job Protection Act of 1996 clarified the Scholarship Program, is preparing leg- which in my State is monopolized by tax treatment of both the State-spon- islation or is studying a proposal to farmer-owned cooperatives. Farmer- sored tuition savings plans and the par- help their residents save for college. owned coops are now the leading pro- ticipants’ investment. This measure Today, there are 730,000 participants ducers of ethanol. They make up 60 put an end to the tax uncertainty that contributing over $3.23 billion to edu- percent of the ethanol facilities around has hampered the effectiveness of these cation savings nationwide. By year the country. By year’s end, nine plants State-sponsored programs and helped end, the college savings plan network will be in operation in Minnesota, pro- families who are trying to save for estimates that they will have 1 million ducing 126 million gallons annually and their children’s education. participants. By 2006, they estimate creating 500 new jobs. Overall, ethanol Mr. President, this action is long that over $6 billion will be invested in contributes between $109 and $260 mil- overdue. We have ignored the needs of State-sponsored programs. lion yearly to the State’s economy. middle-class families who have seen Kentucky established its plan in 1988 Currently, 71 percent of the gas sold in their income hold steady, while tuition to provide residents with an affordable Minnesota contains ethanol. By the costs go through the roof. According to means of saving for college. Today, end of the year, 100 percent of the gas the GAO, tuition at a 4-year university 2,602 Kentucky participants have con- sold in Minnesota will be blended with rose 234 percent between 1980–94. tributed over $5 million toward their ethanol.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00029 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6698 CONGRESSIONAL RECORD — SENATE June 27, 1997 My concern today is with the small ducing the Federal budget deficit is an ican groups and the entire Puerto blenders tax credit. This income credit important goal, if the transportation Rican political community, have is available to ethanol producers who industry is to be singled out, the bur- united forces in seeking a sensible Fed- produce no more than 30 million gal- den of achieving a balanced budget eral economic development tool in sec- lons annually; and, it is applied to the should be shared equally among all tion 30A. This would provide viable pro first 15 million gallons. That’s great. modes of transportation. growth tax incentives which will keep Targeting the credit is what we should I am particularly concerned because the Puerto Rican economy on a path of do. Unfortunately, the credit works in S. 949 would transfer the deficit reduc- sustained growth. We should expand such a way that cooperatives fail to get tion taxes paid by highway users, in- and extend this economic activity any advantage from it. cluding truckers which compete with credit which is wage-based and pro- I would like to ask that when the the railroads, into the Highway Trust moted jobs and investment. We would Senate Finance Committee and the Fund. Placing additional highway def- urge my colleagues to correct this un- House Ways and Means Committee con- icit reduction fuel taxes into the High- fairness in Conference. If this is not ference on the two tax bills, that they way Trust Fund for highway improve- possible, we will work to include this give serious consideration to changing ments would exacerbate the already in- measure in legislation that comes be- the way the credit is structured so that equitable situation, placing the rail- fore us at the next possible oppor- cooperatives, like all other ethanol road industry at an even more unfair tunity. producers, receive the intended bene- competitive disadvantage. In essence, PROVIDE TAX INCENTIVES TO ENCOURAGE PROP- fits of the small blenders tax credit. I the railroads would continue to con- ERTY OWNERS TO PRESERVE HABITAT FOR appreciate the good efforts of my col- tribute to deficit reduction, while their SPECIES leagues on this matter and hope they competitors would instead contribute Mr. KEMPTHORNE. Mr. President, it will work with me to address this tech- to their own infrastructure. was my intention to introduce today nical change in the small blenders tax The House has similarly proposed an amendment to provide three new credit when the committees conference putting the aviation fuel taxes into the tax incentives for private property on the tax bills. Airport and Aviation Trust Fund for owners who want to conserve land for I see my colleague from Illinois and airport infrastructure improvements as the preservation of endangered, threat- know her commitment to the role of part of its tax reconciliation legisla- ened, and other species. But the ethanol as an alternative fuel. I under- tion. amendments were subject to points of stand you have two farmer-owned co- This injustice against America’s rail- order because they did not have accom- operatives proposed for construction in roads must be remedied at our earliest panying offsets. Rather than have the Illinois? opportunity. I would ask the distin- amendments lose on a parliamentary Ms. MOSELEY-BRAUN. The Senator guished chairman of the Finance Com- procedure, I have accepted Chairman is correct. The total investment is $92 mittee if he would be willing to seek a ROTH’s offer to work on these issues in million for both facilities with an ex- solution to this railroad deficit reduc- conference. For too long, the Federal pected capacity of 42 million gallons of tion fuel tax problem during the con- Government has relied almost exclu- ethanol annually. This is good for ference with the House on tax rec- sively on regulatory mandates and en- farmers and good for our rural commu- onciliation legislation. forcement to preserve habitat for en- nities. I fully support extending the Mr. ROTH. I appreciate the distin- dangered species. That approach has small blender’s tax credit to these co- guished Senator from Rhode Island failed to produce the kind of results we operatives, and I will urge conferees to bringing this matter to the attention want. If we’re serious about preserving support this. of the Senate, and yes I am aware of our rare and unique species, and their Mr. KERREY. Mr. President, I would this clear inequity to the railroads. habitat, we must make it easier for like to join my colleagues in high- This certainly should be remedied at people to purchase and set aside land lighting the importance of farmer- our earliest opportunity, and I will for species. owned coops in the production of eth- seek an appropriate solution as we con- The amendment would have con- anol, and thank the Senator from Min- sider the treatment of deficit reduction sisted of three provisions. The first nesota for his continued leadership on fuel taxes during the conference with provision would have provided an addi- this issue. In Nebraska, two of the six the House on this tax legislation. If we tional 25 percent exclusion from cap- ethanol production facilities are owned are unable to craft a solution to this ital gains associated with the sale of by farmer-owned cooperatives. These problem on this bill, I will certainly property so long as the property is plants account for approximately one- strive for a solution as part of the up- transferred to a qualified organization third of the total amount of ethanol coming ISTEA reauthorization legisla- for conservation purposes. produced in my State and directly em- tion. Mr. ROTH. I agree with Senator ploy over 300 Nebraskans. By restruc- Mr. CHAFEE. I want to thank Sen- KEMPTHORNE’s philosophy that con- turing the small blenders credit, I am ator ROTH for his commitment to expe- servation benefits us all as a nation. In hopeful that not only would we help ditiously find a solution to this prob- fact, I included a conservation ease- the existing ethanol plants in Ne- lem. ment provision in my chairman’s braska, but that we would encourage LET US NOT FORGET ABOUT THE U.S. CITIZENS mark. other farmer-owned cooperatives to ex- OF PUERTO RICO Mr. KEMPTHORNE. The second in- amine the opportunities for rural eco- Mr. MOYNIHAN. Mr. President, I am centive would have provided property nomic development provided by eth- pleased to state, on behalf of Senators owners an exclusion from estate taxes anol production. BREAUX, GRAHAM, KERREY, CHAFEE, and for property that is set aside in a con- Mr. WELLSTONE. I thank my col- myself, that none of the tax relief servation easement. leagues for their words of support and measures and growth incentives con- Over the past few years, as I’ve been look forward to working with them in tained in this tax bill will have a posi- working on legislation to reauthorize the coming days to make this change tive impact on the 3.8 million Amer- the Endangered Species Act, I’ve met happen. ican citizens of Puerto Rico. This re- with a number of farmers and ranchers RAILROAD DEFICIT REDUCTION FUEL TAXES sult is unfair and should be corrected. and other property owners, many of Mr. CHAFEE. Senator ROTH, as I The Island’s economy has paid dearly whom own large tracts of land that know you are aware, because of the as a result of provisions in the tax bills they are willing to set aside in con- 1990 and 1993 Reconciliation Acts, our of 1993 and 1996, as revenue offsets from servation easements to benefit species. important freight railroads are forced Puerto Rico in those bills exceed $14 But they are worried about the tax bur- to pay a 5.55 cents per gallon fuel tax billion in the next few years. Yet those den that they will leave behind for into the General Treasury for deficit bills provided no benefits to our Puerto their children if they do that. reduction. All other modes of transpor- Rican citizens. Mr. ROTH. My chairman’s mark in- tation—highway, air, water—only pay Members from both sides of the aisle, cludes a provision consistent with my 4.3 cents per gallon for this purpose. Governors, national organizations, colleague’s goals. The mark would This is an obvious inequity. While re- business associations, Hispanic-Amer- allow a portion of the value of land

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00030 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6699 subject to a qualified conservation public transportation. This bill facili- tiations, we remain committed to pre- easement to be excluded from the gross tates environmental cleanup efforts in serving the integrity of the balanced estate. This conservation easement is a many urban and rural areas, helping to budget agreement. The American peo- step in the right direction. make our country a healthier place to ple will not be served by a budget that Mr. KEMPTHORNE. My amendment live. achieves balance briefly in 2002 and would have allowed property owners While I appreciate the efforts of my then veers back out of balance after- who grant conservation easements to colleagues who worked so hard to craft ward. exclude the value of property from es- a bipartisan tax relief bill, I am con- Mr. President, I am pleased to join a tate tax. That would make it easier for cerned that this measure misses oppor- bipartisan group of Senators today in families to keep their property intact tunities to provide meaningful tax re- supporting the Revenue Reconciliation and at the same time will benefit en- lief for American families. During Sen- Act of 1997. It brings us much closer to dangered and other species by pre- ate consideration, I voted for a number enacting legislation easing the tax bur- serving habitat for them. of amendments to make this bill more den which weighs heavily on too many My third incentive would have al- equitable. Some of these amendments Americans. lowed property owners to donate land succeeded. Many did not. PENSION PROVISIONS for conservation purposes to take an In particular, I was pleased when my Mr. GRAHAM. Mr. President, today I enhanced deduction based on the full colleagues accepted my amendment rise to offer my support for the pension market value of their property. This concerning student loan forgiveness for provisions which are contained in the will provide an important incentive for people who choose a career in commu- tax bill we are considering today. As a property owners who have land or nity service and public sector work. result of the bipartisan cooperation water that provide habitat for endan- This amendment will help us to deal which has been demonstrated through- gered and other species to preserve with the growing problem of student out this process, many American work- that habitat. indebtedness. ers will move closer to a secure retire- Over the past 3 years, I’ve met with I also supported the Nickles amend- ment. These provisions help a broad many property owners who have said, ment to extend self-employment health spectrum of workers and employers, ‘‘we would be happy to step forward insurance deductibility to 100 percent. and will contribute toward making and preserve habitat for species and we This measure will prove extremely pensions more available, equitable, would grant a conservation easement if helpful to self-employed business men portable and simpler. there was an incentive.’’ Well, this will and women. First, the provisions will expand cov- provide that incentive. I was also pleased to support the Mr. ROTH. Under our current tax Kohl amendment which creates a tax erage among workers at small busi- law, a deduction is allowed for con- incentive for businesses to provide nesses. tributions of a qualified conservation child care for employees. The statistics concerning the lack of easement to a qualified organization. Each of these amendments make this retirement coverage among small busi- The goal of my colleagues’ amend- bill better for American families. Re- ness workers are astounding. Accord- ments are well taken and deserve this grettably, other amendments that ing to the Small Business Administra- Nation’s serious consideration. would have strengthened this bill did tion, only 13 percent of workers in I will work with you in conference on not succeed. businesses with less than 20 employees these worthy goals because I share Most notably, I, along with my col- have pension plans and only 38 percent your commitment to saving endan- league from Vermont Senator JEF- of workers in businesses employing be- gered species, and using incentives to FORDS, offered an amendment that tween 21 and 100 employees currently accomplish this goal. would have increased the child tax have plans. Mr. KEMPTHORNE. I thank the credit for most families by making it Two provisions in this bill will ad- chairman. I appreciate his willingness refundable for the many low-income dress this problem. This bill will en- to work with me on these important families with little or no tax liability. courage even the smallest of small amendments to include them in the It is a fair and equitable measure, one businesses to help their employees save final bill. that would have tremendously helped for retirement through IRA payroll de- Mr. DODD. Mr. President, I rise our working families, and I am dis- ductions. These payroll deductions are today to express my support for the appointed that this amendment failed. the easiest way for workers to save for Revenue Reconciliation Act of 1997. In addition, the Daschle amendment their retirement. This bill clarifies First, I would like to commend the Fi- would have invested an additional $10 that if a small business man or woman nance Committee on the job it has billion in education and more in the permits IRA payroll deductions, they done. Chairman ROTH and Senator child tax credit. Unfortunately, this will not be threatened with liability MOYNIHAN should be praised for their amendment was defeated. under ERISA. efforts to craft a bipartisan bill, some- Finally, my colleague from Massa- Small businesses will also be encour- thing that the House clearly failed to chusetts Senator KERRY offered his aged to establish pension plans by al- achieve in its tax-writing committee. own amendment to make the $500-per- lowing partners and self-employed indi- The Finance bill contains many good child tax credit refundable against pay- viduals to receive matching contribu- measures, including a $500-per-child tax roll taxes, a measure that would have tions under the same rules applicable credit, which brings much needed relief brought much needed relief to many to incorporated businesses. More small to working Americans. This bill pro- working Americans struggling to raise business owners will establish retire- vides tax relief for higher education, a family. Once again, an opportunity to ment plans because of this change. making college more accessible to mil- make tax relief more equitable was de- Second, this bill will help women. Al- lions of Americans. The underlying bill feated. though women are entering the work also expands Individual Retirement Ac- Despite my reservations about this force at a larger rate than ever before, counts helping many Americans to bill, and my disappointment in the fail- 25 million working women still do not meet the financial demands of raising a ure of several amendments, I am en- have pension plans—this represents family and planning for retirement. couraged by the fact that today, on the nearly 3 out of every 5 women who The bill before us today also recognizes floor of the United States Senate, we work in the private sector. Of these 25 the importance providing tax relief for came together in a bipartisan manner million women, 12 million are em- businesses by extending the research to enact tax relief to millions of Amer- ployed by small businesses. tax credit for 31 months, encouraging ican families. I hope that the con- Unfortunately, many of these work- more investments in research and de- ference committee will report a bill ing women have no pension plan. Many velopment. that is both fair and equitable, benefit- of these women would like to make In addition, the Finance bill provides ting working families, small businesses contributions to an IRA, but cannot be- funding for Amtrak, and creates an and family farms. cause their husband participates in an inner-city passenger rail fund that Finally, Mr. President, it is impera- employee-sponsored retirement plan would help finance improvements in tive that during the conference nego- and tax law says that she cannot make

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00031 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6700 CONGRESSIONAL RECORD — SENATE June 27, 1997 a deductible contribution to an IRA be- issue guidance on the use of new forms Commission should be given every op- cause his participation is attributed to of electronic pension notification, and portunity to do so. The reconciliation her. provides for the review of current rules bill should not make substantive The Finance Committee bill elimi- to accommodate new technology. changes to the tax formula without the nates a spouse’s participation from the With the help of this new Internet benefit of the Commission s work. considerations relevant to contributing and telecommunication technology, Mr. LOTT. Mr. President, I would to a deductible IRA. With this provi- pension information will be more read- like to agree with the distinguished sion, all Americans—working women, ily available to workers and less costly chairman of the Commerce Committee, working men, and homemakers—will for employers to produce. of which I am a member. The work of now have the opportunity to save, re- Finally, this bill enhances pension the National Civil Aviation Review gardless of their spouse’s participation security. Both businesses and workers Commission could result in a unique in a retirement plan. will be helped by a provision phasing opportunity for an often divided avia- Because of our bipartisan work on up the 150 percent of current liability tion industry to reach a consensus on this issue, Susan Stratton of Tallahas- limit. Under current law, companies important funding issues. Congress see, FL, will be able to begin contrib- are limited in the amount they can should not force its will on the indus- uting to her retirement while her hus- contribute to their employees’ defined try prematurely. band Charles continues contributing to benefit plan. I believe companies The Commission is in the process of his corporate plan. should be able to increase funding of developing legislative recommenda- Susan is the owner of Care Packages, their pension plans in order to fully tions, and plans to complete its work Inc., and will be able to save $2,000 per meet the needs of their future retirees. soon. Unfortunately, the reconciliation process is moving faster than the abil- year in an IRA. Companies can better budget if they Similarly, John Pollack of Orange have greater flexibility in what they ity of the Commission to reach a com- prehensive solution. The Commission County, FL, will be able to begin sav- put in their plan—and workers are bet- recently wrote to the leadership of ing for his retirement because of this ter off, because the more companies both the Senate and House on this bill. As the owner of Allrite-Foto, John contribute, the more secure their re- issue. We should ensure that the rec- has not made any IRA contributions tirement. This bill gives companies onciliation bill, or budget rules, do not due to his wife Lorraine’s corporate that flexibility. Each of these provisions, as well as foreclose the ability to consider the plan involvement. If this bill is en- commission recommendations in the others I have not mentioned, will im- acted, John will be able to save for re- future. At that time, we will have a prove our private pension system. It is tirement along with his wife. full and fair debate on the rec- not all we should do to prepare for re- As you can see by these two exam- ommendations themselves. ples, this provision—championed by tirement in the 21st century, but it is a Mr. McCAIN. I thank the distin- Senator ROTH and Senator BREAUX for good start. guished majority leader for his insight. many years—will be beneficial for both I have been honored to work closely I plan to continue to work with him spouses. with many of my colleagues in bring- and other members of the Commerce Third, the pension provisions in this ing about these bipartisan pension Committee to see that the budget rec- bill begin to address a significant need changes. Senators HATCH, GRASSLEY, onciliation bill does not foreclose the in the pension area—portability. Amer- JEFFORDS, BREAUX and MOSELEY-BRAUN opportunity for Congress to implement ican workers are changing jobs much have been instrumental in bringing the Commission recommendations in more frequently than ever before. Over about these reforms, and I would like the future. We must continue our ef- the course of a 40-year career, the aver- to commend them, and others, on their forts to ensure an adequate and stable age worker will hold seven different efforts. funding source for the FAA and the jobs. Yet only 50 percent of current By finding this common ground on safety programs it oversees. 401k plans accept rollovers from other both sides of the political aisle, we are Mr. DASCHLE. Mr. President, I plans. working to ensure that the American would like to join my distinguished As a result, it has become imperative workers of today will have a more se- colleagues, the majority leader, the that these workers be able to transport cure and prosperous retirement for to- chairman and ranking member of the their retirement plans when they morrow. Commerce Committee, and the chair- change jobs. AVIATION EXCISE TAX man and ranking member of the sub- This bill makes it more attractive for Mr. McCAIN. Mr. President, I rise to committee, in expressing concern businesses to accept rollovers. The bill express my concern about actions about the reconciliation bill pre- provides that a plan will not be dis- taken in the reconciliation bills by the empting the work of the National Civil qualified just because funds rolled over Senate Finance and the House Ways Aviation Review Commission. I ap- from a new employee’s previous job and Means Committees to modify the pointed two of its members, and I come from a fund which has become current aviation excise tax structure. would not like to see its important disqualified. Although somewhat different from work undermined before it has had an Although this is a good step, I will in each other, both of the proposed modi- opportunity to achieve a consensus to coming days be pushing for more pen- fications would increase taxes on air- a very important issue. I believe that sion portability. Similar defined con- line passengers, and represent signifi- after the recommendations of the Com- tribution plans should also be able to cant changes in aviation policy. mission have been submitted to Con- roll into each other. Money in a retire- Last year, Commerce Committee gress, we must give them every consid- ment stream should be kept there until members worked closely with members eration. retirement. Government plans should of the Ways and Means and Finance Mr. HOLLINGS. Mr. President, I, too, be able to roll into private-sector Committees, during consideration of would like to join my distinguished plans. Private sector plans should be the Federal Aviation Reauthorization colleagues in this discussion. The lead- able to roll into nonprofit plans and Act of 1996, to establish the National ership of the Commerce Committee nonprofit plans should be able to roll Civil Aviation Review Commission. worked very hard in the Senate and into Government plans. The members of this Commission have during the Senate-House conference to Fourth, this bill will make pensions dedicated themselves to developing a create this Commission. Congress even simpler to administer. One of the main consensus within the aviation industry provided a substantial appropriation to reasons employers cite for not estab- regarding the appropriate financing fund its activities. The work of the lishing or expanding pension coverage mechanism for the Federal Aviation Commission is extremely important. I is red tape. The Finance Committee Administration [FAA], and the impor- know that my colleagues share my bill eliminates some of the paperwork tant safety programs it oversees. To- concern that aviation monies are not burden it now takes to administer a gether, the committees empaneled the being used for aviation purposes, and pension. Commission to consider substantive we need to work to correct that. Dur- This bill asks that the Treasury De- policy changes to the aviation excise ing our Commerce Committee markup partment and Department of Labor tax formula, and I believe that the recently, I expressed my desire to treat

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00032 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6701 the Airport and Airways Trust Fund offered last night which was adopted by Mrs. BOXER. As you know, the differently, and many members indi- voice vote. House-passed Tax Reconciliation Bill cated that we needed to do something Mr. NICKLES. I would be pleased to included a provision which would pro- different for aviation. The GAO report answer any questions that the Senator vide an enhanced tax deduction for cor- on airport funding suggests that the from California may have. porate contributions of computer tech- airports are in need of $10 billion, ac- Mrs. BOXER. As the Senators are nology and equipment. This provision, cording to the airports, and $6.5 billion, aware, the 401(k) has emerged as many authored by Congressman RANDY according to the FAA, depending upon baby boomers primary pension plan. CUNNINGHAM, is very similar to a bill the type of projects included. The Air- 401(k)s now cover more than 22 million Senator CHAFEE and I introduced ear- port Improvement Program is an im- employees and invest more than $675 lier this year. Our bill, the Computer portant component of the work of the billion in pension assets. Many Amer- Donation Incentive Act of 1977, pro- FAA. We cannot meet future growth ican workers now have more equity in vides an incentive for companies to do- needs without expanding our airports their 401(k) plans than in their homes. nate new and nearly new computers and modernizing the air traffic control Unfortunately, Federal law is cur- and software to elementary and sec- system. The Commission work and rec- rently less protective of 401(k)s than ondary schools. ommendations will help us in the de- traditional defined-benefit pension The successful education of Amer- bate in finding ways to meet our future plans. A company sponsoring a tradi- ica’s children is closely linked to the aviation system needs. tional plan is currently prohibited use of innovative educational tech- Mr. GORTON. Mr. President, as from investing more than 10 percent of nologies, particularly computer-based chairman of the Aviation Sub- its assets in company holdings, such as instruction and research. Unfortu- committee, I would like to associate real property or company stock. This nately, however, far too many elemen- myself with the remarks of the distin- reasonable limitation, however, does tary and secondary school classrooms guished chairman and ranking member not apply to 401(k) plans. lack the computers they need to take of the Commerce Committee, as well as The amendment I offered last night advantage of these new educational with those of the majority and minor- would extend this 10 percent limitation technologies. I believe this provision ity leaders. An efficient FAA will be to 401(k) plans, enhancing pension se- will provide America’s schools with the crucial if our country is to maintain curity for millions of workers nation- technological resources necessary to its role as the world leader in the aero- wide. prepare both students and teachers for nautical and aerospace industries. The I want to thank both the chairman the technologically advanced society FAA must have adequate resources to and the ranking member of the Fi- in which we now live. transform itself into an efficient and nance Committee for their assistance I know that the chairman and rank- productive agency. The anticipated in clearing this important amendment. ing member on the Committee on Fi- The amendment included a small work of the Commission should provide nance would like to have included the change at the request of the Senator the Congress with valuable guidance in House provision in the Senate tax rec- from Oklahoma. The provision re- that respect. The proposed changes to onciliation bill, but due to revenue quested by the Senator from Oklahoma the aviation excise taxes in the rec- considerations were unable to do so. I would allow companies sponsoring onciliation bill should not be a signal hope, however, that my friend from 401(k) plans to require that 1 percent of to the commission that its ongoing Delaware and my friend from New an employee’s contribution be invested work is meaningless. I intend to work York would urge the adoption of this in qualified employer securities. with the leadership of the Commerce very important provision in con- Mr. NICKLES. The Senator has accu- Committee and Senate to ensure that ference. the future recommendations of the rately described the change to her Mr. ROTH. I agree that this is a very Commission are not prejudiced by any amendment that I suggested. I believe important provision and I will urge my actions taken in this reconciliation that employers should be allowed to re- colleagues to consider this proposal in bill. quire employees to contribute 1 per- Mr. FORD. Mr. President, I would cent of their 401(k) contributions to conference. like to add to the thoughtful remarks company assets. However, as a member Mr. MOYNIHAN. I agree with my of my distinguished colleagues. We of the Finance Committee and possible friend from California and my friend started the debate over how to fund the conferee on this bill, I will urge my from Delaware, that this provision FAA last Congress when we first pro- colleagues not to increase the 1-percent should be carefully considered and I too will work to urge my colleagues to posed a fee system. Senator MCCAIN cap. and I worked very hard on the bill and Mrs. BOXER. I certainly appreciate give this proposal careful consider- the entire committee agreed that we the support of the Senator from Okla- ation. needed a Commission to provide a blue- homa. I would ask the Senator from Mrs. BOXER. I thank the distin- print for how to fund the FAA. The Delaware if he, too, will work to retain guished chairman and ranking member FAA bill last year restructured the the Boxer amendment in conference. of the Committee on Finance for their agency and gave the FAA the ability to I thank the distinguished chairman support of my bill and of the House do some creative things. Now the Com- of the Finance Committee, the assist- provision. mission must give us their best advice ant majority leader, and the ranking SUPPLEMENTAL ENTERPRISE ZONES AND on how to meet the needs of the FAA, member of the committee for all their ELIGIBILITY FOR BROWNFIELDS BENEFITS or how to cut spending. Those are the hard work to guarantee pension secu- Mrs. FEINSTEIN. Mr. President, I dilemmas facing the Commission. I rity for America’s working men and rise to ask if the chairman can clarify know all of us share a desire to ensure women. for me whether this bill includes a pro- that the work of the Commission is de- COMPUTER TECHNOLOGY AND EQUIPMENT vision that provides the ‘‘brownfields’’ bated and fully aired. Mrs. BOXER. I ask my colleagues benefits for supplemental empower- Mr. MCCAIN. I would like to thank from Delaware, Mr. ROTH, and New ment zones. the distinguished gentlemen for their York, Mr. MOYNIHAN, if they would be As a former mayor, I am very com- remarks. The safety of the flying pub- willing to enter into a colloquy with mitted to promoting economic growth lic and the health of an essential, vital me regarding providing an enhanced in our urban area. The ‘‘brownfields’’ industry are at stake. We must give deduction for corporate contributions provision will be significant in the City the Commission a chance to fulfill its of computer technology and equip- of Los Angeles’ effort to turn aban- statutory mandate. ment. doned, vacant or underutilized indus- 401(K) PLANS Mr. ROTH. I would be pleased to an- trial or commercial properties back Mrs. BOXER. Mr. President, I ask my swer any questions the Senator from into productive use. Can the chairman colleagues from Oklahoma, Mr. NICK- California may have. confirm that, under the Senate tax bill, LES, and Delaware, Mr. ROTH, if they Mr. MOYNIHAN. I would be pleased brownfields remediation incentives are would be willing to enter into a col- to enter into a colloquy with my friend also extended to supplemental em- loquy with me about an amendment I from California. powerment zones?

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00033 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6702 CONGRESSIONAL RECORD — SENATE June 27, 1997 Mr. ROTH. Yes, the committee bill ex- Under the proposal approved by the lower the cost of building new schools. tends the brownfields benefits to sup- Finance Committee, distributions from I hope that this legislation is just the plemental zones as well. Section prepaid college tuition plans will be 100 beginning of much more which this 768(c)(2) of the bill, entitled ‘‘Expensing percent tax-free. In addition, the defi- Congress will do to make a significant of Environmental Remediation Costs,’’ nition of qualified higher education ex- and substantial dent in the problem of extends the brownfields benefits to sup- penses will be expanded from current school construction and rehabilitation plemental zones designated after De- law. Under this legislation, tax-exempt needs. cember 21, 1994, which confers the bene- benefits will now include room and On behalf of all of our Nation’s fami- fits to the supplemental zones of Los board, as well as tuition, fees, and re- lies, I would like to thank Chairman Angeles and Cleveland, OH. lated expenses. Thus, families who plan ROTH for his efforts regarding these Mrs. FEINSTEIN. I thank the chair- ahead can lock in today’s rates for al- education initiatives. I think Barbara man for clarifying the provision and most all expenses incurred in their Alfonso says it best: ‘‘We can’t cut cor- thank the committee for its work on children’s education. ners when it comes to education.’’ Bar- this issues. The legislation will have immeas- bara is right. This legislation will COMPUTER ACCESS INCENTIVE urable benefits for our Nation’s fami- allow us to invest in our most precious Mr. BAUCUS. Mr. President, I want lies. For example, Barbara and Jack resource—our children—who are, of to take this opportunity to repeat my Alfonso, who live in Miami, FL, have a course, ultimately our future. interest in including funding in the 10-year-old son, Adrian. Back when RAIL FUEL TAX reconciliation bill which would facili- Barbara finished high school, her par- Mr. BURNS. Would the esteemed tate our schools’ efforts to acquire ents could not afford to send her to col- chairman of the Finance Committee be computers and become connected to lege. She decided to take out loans to willing to enter a colloquy on the rail the Internet. attend secretarial school. It took her 7 deficit reduction fuel tax? If our students are going to be fully years to pay off those loans, so Barbara Mr. ROTH. I would be happy to dis- prepared to face the next millennium knows what it’s like to be burdened cuss this matter with my colleague with computer skills adequate to the with debt. from Montana. task of competing in a global economy, Barbara and Jack decided that they Mr. BURNS. As the chairman is I believe we in the Federal Government didn’t want their son to be faced with aware, the 1990 and 1993 Budget Rec- have a responsibility to ensure that the same obstacles. So, when Adrian onciliation Acts imposed a 2.5-cent-per- our schools have every opportunity to was 5, they invested in the Florida Pre- gallon and a 4.3-cent-per-gallon diesel acquire computer equipment. paid College Tuition Program. They fuel tax for deficit reduction on rail- The House Ways and Means Com- will make their last payment in Octo- roads and highway users. Beginning mittee reported a bill which includes October 1995, 2.5 cents of the trucking funds for an enhanced charitable de- ber of this year. Adrian is a good student, and he de- industry’s deficit reduction tax was di- duction for those who donate computer serves the opportunity to further his rected to the Highway Trust Fund. The equipment to the schools. As you education. And because his parents remaining highway 4.3 cents remained know, based on the experience I have chose to put aside money for his future in place for deficit reduction purposes, had helping schools in Montana acquire by participating in the State’s tuition while the rail rate was set at 5.55 cents computer equipment, I have been work- per gallon, also effective October 1995. ing on a somewhat different approach program, Adrian will have this oppor- which provides a tax credit for compa- tunity. Now Adrian can become one of As a result of these acts, the freight nies that give a price discount to the first college graduates in the Al- rail industry currently pays 1.25 cents schools purchasing new equipment. fonso family. He can rest assured that per gallon more for deficit reduction I ask the chairman to work with me his hard work will not have been in than its primary competitors. during conference to evaluate the vain—that college is not a dream for Mr. ROTH. The Senator is correct. Mr. BURNS. While the Highway House Ways and Means proposals and him but a reality. Trust Fund provides the financing for my proposals to increase schools’ ac- As Barbara tells it: ‘‘The best thing cess to the Internet. about this plan is that it gives me construction and maintenance of pub- Mr. ROTH. I look forward to working peace of mind.’’ Thanks to a prepaid lic roads and bridges used by trucks with the Senator. college tuition plan, Barbara knows and automobiles, the railroad industry realizes no similar return on its tax EDUCATION INITIATIVES that her son will be able to go to col- Mr. GRAHAM. Mr. President, I would lege. And thanks to this program, two payments. Railroads currently expend like to take this opportunity to thank hard-working parents are able to give more than $7 billion annually in cap- Chairman ROTH for working on this tax their child what they never had. Their ital to build and maintain their own legislation in a fair, bipartisan manner. son will be better off than they were. ‘‘roads.’’ These private rights-of-ways In particular, this bill includes several With this legislation, families are subject to more than $400 million educational initiatives that will have a throughout our Nation will be better annually in local property taxes. While positive impact not only on the people able to plan and save for their chil- few Senators are more dedicated to the of my home State of Florida but on the dren’s education. First, parents can goal of deficit reduction than I, it citizens—of every income—in our Na- save for their children’s education seems that the burden of reducing the tion as a whole. without paying taxes. Second, parents Federal deficit must be shared equally First, I applaud the chairman’s provi- can purchase tuition at today’s rates among competing modes of transpor- sions with respect to prepaid college and then withdraw this money when tation. tuition plans. Currently, 16 States offer their children begin school. Tomor- The Senate Finance Committee and manage college savings programs, row’s education can be secured at to- adopted an amendment to the chair- 5 States are in the process of imple- day’s prices. man’s Mark which would transfer the menting such programs, and the other I would also like to thank Chairman 4.3-cent-per-gallon deficit reduction 29 States have legislation pending or ROTH for including a portion of my tax paid by highway users to the High- are studying the feasibility of creating school construction tax proposal, way Trust Fund—minus the new half- these programs. which would assist small and rural cent tax for the Intercity Rail Trust Last year, Congress clarified the tax school districts. The provision that was Fund—Amtrak. Additionally, the treatment of participation in prepaid included in this bill will positively im- House Ways and Means Committee college tuition plans. The 1996 Small pact issuers of small school construc- transferred the 4.3-cent-per-gallon tax Business Protection Act provided that tion bonds. These issuers will be ex- paid by aviation users to the Aviation any prepaid or savings State entity is empt from arbitrage rebate require- Trust Fund. Assuming that these tax-exempt. The act also clarified that ments up to $10 million. Currently, amendments remain in the bills, the earnings under prepaid programs are there is a $5-million limit which ap- rail industry will be paying 5.05 cents not taxed until distribution, and—when plies to all bonds. per gallon for deficit reduction while distributed—earnings would be taxed With this provision, we are specifi- those in competing industries will be to the student beneficiary. cally helping small school districts to paying nothing for deficit reduction.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00034 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6703 Mr. ROTH. Again the Senator is cor- Mr. ROTH. The Senator is correct. could engage the chairman of the Fi- rect in his assessment. The committee thought it was appro- nance Committee in a colloquy regard- Mr. BURNS. Understanding the de- priate to provide prospective applica- ing the proposed tax on the domestic mands on the chairman, I would mere- tion for the codification of standards portion of international journeys ly like to encourage him to address which must be met for tax exemption. [DPIJ]. As I understand the new tax, it this situation in conference. If a solu- However, the committee expressly ac- will impose a new 10-percent tax on do- tion can not be reached in this bill, I knowledged the fact that a number of mestic legs of international flights. would encourage the chairman to give States had established entities that This tax hurts domestic carriers be- careful consideration to and to work were operating as tax exempt organiza- cause they typically have domestic toward a remedy of this situation in tions. The motivation for codifying the stopovers on their international the tax title to the upcoming ISTEA standards as part of the Internal Rev- flights, whereas international carriers reauthorization. enue Code was to help these entities have more direct flights without stop- Mr. ROTH. Rest assured that the and the Internal Revenue Service more overs in the United States. Since committee will give every consider- easily apply the law. However, our re- flights without stopovers are not sub- ation to the addressing the transpor- port expressly states that tax exemp- ject to the new 10-percent tax, the net tation excise tax equity matters raised tion may be available to many such result is a competitive disadvantage by my colleague from Montana. State-sponsored entities under present for domestic carriers. Mr. BURNS. I greatly appreciate the law and no interference was intended Mr. NICKLES. If the Senator from time and consideration given to me by to be drawn from our action that the Michigan would yield, I want to echo the chairman of the Finance Com- income of those entities was not al- the concerns of my friend from Michi- mittee. ready tax-exempt. gan. In fact we were prepared to offer PUBLIC SAFETY OFFICER SURVIVOR PENSIONS Mrs. HUTCHISON. Mr. President, I an amendment along with several Mr. BIDEN. Mr. President, I am strongly support the provision in the other colleagues but out of deference to pleased that the Senate has passed my bill that deals with tax-exempt status the desire of the chairman to complete amendment to make a modest change of State workers’ compensation funds. action on the bill, we agreed to work in current law. A modest change, but Senator GRAMM and I ask unanimous with the chairman. It is my under- one which will make an enormous dif- consent to have printed in the RECORD standing that the chairman of the Fi- ference in the lives of some very spe- the text of a letter we received earlier nance Committee is aware of these cial Americans—the families of public this month from the Governor of the concerns and has expressed his inten- safety officers—police officers and fire- State of Texas urging us to clarify the tion to resolve this controversy in con- fighters—who have given their lives in Federal tax statutes to maintain the ference. Would the chairman confirm the line of duty. tax-exempt status of this fund in light his intentions regarding the proposed This amendment would forgive Fed- of the important role it plays in stabi- tax on the domestic portion of inter- eral tax liability on the annuities re- lizing the market for workers’ com- ceived by the families of these fallen national journeys? pensation insurance in Texas. Mr. ROTH. I would like to assure my heroes. The cost is modest—about $25 There being no objection, the text of colleagues from Michigan and Okla- million over the next 10 years. the letter was ordered to be printed in I would also add that this tax treat- homa that it is my intention to work the RECORD, as follows: with House and Senate conferees to ment would be the same as that for the STATE OF TEXAS, families of fallen soldiers. In other eliminate any competitive advantages OFFICE OF THE GOVERNOR, that foreign carriers may enjoy and re- words, my amendment gives to those June 5, 1997. solve this controversy. who fight and die in domestic battles Hon. PHIL GRAMM, to keep us safe the same treatment we U.S. Senate, Washington, DC. NET OPERATING LOSSES give to those who fight and die in keep- DEAR SENATOR GRAMM: I understand that Mr. SPECTER. Mr. President, on be- ing us safe from foreign battles. the Internal Revenue Service is questioning half of Senator SANTORUM, I would like Mr. President, again, I welcome my the source of the Texas Workers’ Compensa- to discuss an issue with the chairman tion Insurance Fund’s tax exemption. and the ranking member of the Fi- colleagues support for my amend- The Texas Legislature created the Fund in ment—we have stood with the cops, 1991 to resolve a crisis in our workers’ com- nance Committee relating to operating stood with the firefighters, and stood pensation insurance market. The Fund car- losses of a business. with the paramedics who have given ries out its statutory responsibility to en- The tax bill extends the carry for- their lives in service to all of us. sure that workers’ compensation insurance ward period for businesses with oper- STATE-SPONSORED WORKERS’ COMPENSATION is available for Texas employers in even the ating losses for an additional 5 years. FUNDS smallest or riskiest of businesses. But the provision only applies to oper- Mr. BREAUX. I would like to ask a Workers’ compensation insurance is not ating losses incurred in future years. mandatory for Texas employers. Those busi- We are less concerned about the tax question of the distinguished chairman nesses that choose to carry workers’ com- of the Finance Committee concerning a pensation coverage for their employees now impact of allowing existing losses to provision in the tax bill. have access to a much broader variety of car- expire than about the impact on com- Mr. ROTH. I would be pleased to re- riers, competitive premiums and enhanced panies for financial accounting pur- spond to the Senator from Louisiana. employee benefits. poses. Under the accounting standards, Mr. BREAUX. Section 761 of the bill I encourage you to consider clarification of if the operating losses expire, some provides standards that a State-spon- the federal tax statutes to resolve this issue. companies will see a major reduction sored workers’ compensation company Arbitrarily and retroactively changing the in asset value. must meet in order to be exempt from tax status of the Fund would directly affect We would like for the chairman and the small businesses that depend on the Federal income tax for future years. As Fund for workers’ compensation coverage, the ranking member to consider this the chairman is aware, a large number and would needlessly inject instability into issue in conference. of the States, including Louisiana, what is now a healthy segment of the Texas Mr. SANTORUM. I would like to as- have State-sponsored workers’ com- insurance market. sociate myself with the comments of pensation companies that have been Sincerely, my colleague, the senior Senator from operating as tax-exempt agencies for GEORGE W. BUSH. Pennsylvania. several years. It is my understanding Mr. GRAMM. Is it also the chair- Mr. ROCKEFELLER. I understand that the standards that we have pro- man’s understanding that this provi- the issue raised by the Senators from posed for the future are intended to sion clarifies the tax-exempt status of Pennsylvania. I will be pleased to look codify the standards that exist under these funds under current law by codi- at the issue in conference. present law and that a company, such fying the existing standards? Mr. MOYNIHAN. I understand the as the one established by the State of Mr. ROTH. That is correct. issue raised by the two Senators from Louisiana, that met these standards in Mr. GRAMM. I thank the chairman. Pennsylvania. I will be pleased to look prior years should be confident that it AVIATION TAXES at the issue in conference. is, in fact, tax exempt under current Mr. ABRAHAM. Mr. President, I was Mr. ROTH. I will also be pleased to law. Is my understanding correct? wondering if Senator NICKLES and I look at the issue in conference.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00035 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6704 CONGRESSIONAL RECORD — SENATE June 27, 1997 FOR AN ADDITIONAL TOBACCO TAX INCREASE TAX RELIEF IS FINALLY AT HAND the amount of tax relief that we will Mr. SPECTER. Mr. President, I have Mr. KYL. Mr. President, hard-work- continue to seek next year and the sought recognition to explain my vote ing American families have not seen years after that. against waiving the Budget Act on the significant net tax relief since Ronald Mr. President, I opposed the budget Kennedy amendment for an additional Reagan’s first year in office as Presi- agreement a few weeks ago, in large tobacco tax increase. I have long been dent. That was 16 years ago, in 1981. part because it so severely restricted a leading supporter of providing ade- Since then, their tax burden has gone the amount of tax relief that we could quate health coverage to our Nation’s in just one direction—up. Higher pay- provide this year. I believed that we children. On the first day of the 105th roll taxes, higher taxes on gasoline and should have held out for a better deal Congress, I introduced legislation that Social Security, higher taxes on cap- for the taxpayers, but a majority of would provide coverage to the 4.2 mil- ital gains and air travel. If you manage both Houses disagreed, and therefore lion children of the working poor, who to save something for your child’s edu- we have to find a way to live within are not eligible for Medicaid but whose cation, the earnings are even taxed. the constraints the deal imposed. I parents cannot afford private health It is no wonder, then, that the typ- must say, however, that I believe the insurance. During consideration of the ical American family feels over- Finance Committee has done a good budget for fiscal year 1998, the Presi- whelmed: it now pays more in taxes job with the limited resources it had to dent and Congress reached an agree- than it does for food, clothing, and work with. ment to provide $16 billion for health shelter combined. That is wrong, and it The bill includes a $500-per-child tax care insurance to protect our Nation’s has got to change. It is about to credit for families with children under uninsured children. The Senate Fi- change. the age of 17. The credit would become nance Committee has added an addi- Mr. President, there has really been a fully effective next year; it would be tional $8 billion for children’s health sea of change in Washington’s approach limited this year to $250 for every child insurance from funds derived from a to taxing in recent years. Remember under the age of 13. new tax on tobacco. As a result, the that it was not so long ago, in 1993 to The bill also provides important help budget reconciliation bill now contains be exact, that President Clinton pushed to parents who are struggling to find a $24 billion for the vital purpose of pro- through the largest tax increase in the way to pay for their children’s college viding health insurance to America’s Nation’s history. Everyone in the coun- education. It offers a new $1,500 HOPE uninsured children. try felt the bite of the Clinton gas-tax tax credit, new tax-preferred Education The Kennedy amendment would fur- ther increase the tobacco tax by an ad- increase. Retirees even saw their So- Savings Accounts, and something that ditional 23 cents per pack. The amend- cial Security benefits taxed more. The the budget agreement did not con- ment, however, did not specify how debate back then was not whether to template, a new deduction for student- this additional tax revenue would be raise taxes, but how much to raise loan interest payments. spent. As a consequence, the Senate them. These provisions alone—the edu- could be given no assurance that any of Two years ago, after Republicans cation-related and child tax credits— the money generated by this new tax gained control of both Houses of Con- make up 82 percent of the tax relief would provide health insurance. I be- gress, the debate changed dramati- provided by this bill—82 percent. An lieve the American taxpayer is willing cally. The question no longer was analysis by the accounting firm of to accept a reasonable level of taxation whether to raise taxes, or even whether Deloitte & Touche estimates that a in order to provide health insurance to to cut taxes. The question was how married couple with two children and a our Nation’s children. However, with much to cut them. The debate has household income of $35,000 a year the money provided under the budget changed so much that President Clin- would see its tax bill slashed by 40 per- agreement and the additional funds ton, who initiated that record-setting cent—to $1,573 a year, down from $2,625 provided by the Senate Finance Com- tax increase 4 years ago, and who ve- now. If one child were in college, the mittee, Congress is fairly addressing toed tax relief just 2 years ago, now tax relief would rise to 78 percent. this need. tries to claim the tax-cutting mantra The bill does some other good things IRA WITHDRAWALS FOR K–12 as his own. as well. It reduces the capital-gains tax Mr. SPECTER. Mr. President, I sup- We began last year to make some in- rate to 10 percent for individuals in the ported Senator COVERDELL’s amend- cremental progress in offering tax re- 15 percent income-tax bracket, and 20 ment to expand the bill’s provisions to lief. The adoption tax credit, for exam- percent for other taxpayers. It provides allow penalty-free withdrawals from ple, was enacted, as was an increase in a capital-gains exclusion for home- Individual Retirement Accounts for the Social Security earnings limitation owners—up to $250,000 for single tax- education expenses for children in and new tax incentives for the pur- payers, $500,000 for married couples. grades K–12 because I believe that par- chase of long-term health insurance. Given that more than half of all tax- ents should have the maximum flexi- That was after President Clinton ve- payers reporting capital gains have in- bility to spend their own money on toed a far more substantial tax-cut comes under $50,000—including many their children’s education. package in December 1995. seniors who depend upon income from I have consistently opposed the use The bill before us today takes yet an- their life-long investments to support of public funds to subsidize private other step in the right direction. When them in their golden years—we can be school tuition for K–12 educational ex- signed into law, it will provide more sure that the benefits of these capital- penses because I have grave concerns tax relief than any other bill in 16 gains reductions will flow to middle about the constitutional issues of sepa- years. And three-quarters of the total America. ration of church and State raised in relief provided by the bill will go to And with history as a guide, we know such policy and because I am an advo- families with annual income of less that the Treasury will benefit from a cate of public schools. As chairman of than $75,000. Again, that is families capital-gains tax cut as well. Between the Appropriations Subcommittee with income under $75,000 a year that 1978 and 1985, for example, the top mar- which funds the Education Depart- would benefit most. ginal tax rate on capital gains was cut ment, it is among my top priorities to Make no mistake, it provides no- by almost 45 percent—from 35 percent continue to provide increases in Fed- where near the level of relief that to 20 percent—but total individual cap- eral support to the Nation’s public American families need. The net tax ital-gains tax receipts nearly tripled— schools. However, there are many par- cut of between $77 billion and $85 bil- from $9.1 to $26.5 billion annually. ents who feel that it is in the best in- lion over 5 years represents just 1 per- When capital-gains tax rates are too terest of their children to attend non- cent of the amount that the Treasury high, people need only hold onto their public elementary and secondary would otherwise collect over that pe- assets to avoid the tax indefinitely. No schools for a variety of reasons and in riod. But given the constraints on tax sale, no tax. But that means less in- a variety of settings. I believe they relief that President Clinton imposed vestment, fewer new businesses, and should be free to spend their own re- in this year’s budget agreement, it is new jobs, and—as historical records sources on such expenses as they see probably the most we can do. It is, in show—far less revenue to the Treasury fit. my view, merely a downpayment on than if capital-gains taxes were set at

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00036 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6705 a lower level. Just as the Target store to engage in costly estate-tax plan- cigarette-tax revenues. The proposal down the street does not lose money on ning. They provide little in the way of thus creates an expensive new pro- weekend sales—because volume more substantive relief. And they likely do gram, the costs of which are likely to than makes up for lower prices—lower little to promote stronger economic increase rapidly, and yet the intended capital-gains tax rates can encourage growth. revenue stream is by its very nature more economic activity, and in turn, I know that we are not going to be designed to dry up. This method of fi- produce more revenue for the Govern- able to do enough this year given the nancing the children’s health initiative ment. constraints of the budget agreement, will simply not work over time. With that in mind, many of us be- so further progress with respect to My hope is that the financing mecha- lieve that the capital-gains tax rate death-tax relief will have to wait until nism will be modified in conference. I should have been cut deeper—some next year. But we should commit now am not prepared, however, to vote wanted an earlier effective date, too— to seeking that relief when the next op- against the bill as reported by the Fi- but the die was cast against more cap- portunity arises. nance Committee on account of that ital-gains relief when the budget agree- DEPRECIATION RECAPTURE flaw and deny millions of Americans ment passed earlier this month. Still, There are two other parts of the bill the first significant tax relief they even the modest reduction in this bill that I hope we can correct this year, have seen in 16 years. will begin to unlock the sizable amount hopefully before the bill emerges from Mr. President, this bill includes of assets currently locked up in the the House-Senate conference com- many good provisions: Education tax economy because of high tax rates. The mittee in a few weeks. The first deals credits, the family tax credit, IRA in- American Council for Capital Forma- with the tax treatment of capital gains centives, capital-gains, and modest tion estimates that it will lead to the earned from the sale or exchange of de- death-tax relief. It extends the work creation of as many as 150,000 new jobs preciable real property. Such gains opportunity credit, the research tax a year. would be taxed at a maximum rate of credit, and the exclusion for employer- The bill also enhances the ability of 24 percent, compared to the lower tax provided educational assistance. Al- individuals to save for retirement in rates that would be applied to gains though there are some flaws in the cur- IRA accounts. More Americans would earned from nondepreciable real estate rent version, we ought to seize the op- be allowed to save in traditional IRA’s, and other assets. portunity to enact these provisions as including homemakers who have been Most of us are well aware of the sig- a downpayment toward the ideal tax precluded from participating merely nificant unlocking effect that a cap- package. because their spouses are active par- ital-gains tax cut would have: Not only I support the bill as it came out of ticipants in employer-sponsored plans. would it stimulate savings, invest- the Finance Committee. Mr. ROBB. Mr. President, I rise to Non-deductible contributions of up to ment, and job creation, but, as I indi- oppose the tax bill before the Senate. $2,000 to new IRA plus accounts would cated before, historical evidence shows Although I supported the budget reso- be allowed for anyone; distributions that it would result in increased reve- lution which allowed for this bill to from the accounts would occur on a nues to the Treasury to assist with def- proceed, I did so to advance the spend- tax-free basis. icit reduction. The capital-gains relief recommended in the tax bill mark is a ing cuts that I voted for and the Senate DEATH TAX RELIEF passed earlier this week. I have con- step in the right direction. But unless The legislation includes modest sistently stood for the proposition that the reach of that relief is extended to death-tax relief—a phased increase in we shouldn’t be reducing revenues depreciable real property, we cannot the unified credit from $600,000 today until we balance the budget, and I will ensure that the full benefit of a cap- to $1 million by 2006. An additional $1 keep that commitment today. million exclusion is allowed for quali- ital-gains tax cut is realized through- While I have supported a number of fied family owned businesses and out the economy. amendments that I felt would make Establishing disparate tax treatment farms. this bill a better package, even if all for investment and business real estate Mr. President, although the death- those amendments had passed, I’d still would provide little incentive for indi- tax provisions represent steps in the be opposed to cutting taxes while we viduals to sell investment properties, right direction, they are totally inad- still have a budget deficit. Nonetheless, equate to solve the problems associated or to recapitalize and modernize multi- I understand that it is difficult for with the tax. The unified credit has not family housing, industrial properties, elected legislators to resist the temp- been adjusted since 1987, when it was office buildings, retail properties, or tation of tax cuts, and I do not dis- set at $192,800, for an effective exemp- single-family rental homes. It would count the popular appeal of a number tion of $600,000. Had it merely kept provide little, if any, stimulation in of the measures before us, nor do I pace with inflation, the exemption what amounts to a substantial sector quarrel with the public demand for would now amount to about $840,000. of the Nation’s economy. Moreover, them. However, sound fiscal policy By the time the $1 million exemption is taxing such property at rates higher compels me to oppose even the tax fully phased in in 2006, inflation will than for other assets would establish a changes I might otherwise support have further eroded its value. The fam- bias in the Tax Code that must be until such time as the Federal budget ily business exclusion is so complex avoided. actually reaches balance. and establishes so many hurdles for I would note that the Finance Com- By passing and enacting this tax bill, families to meet before they could mittee modified the bill to reduce the or any other, we singlehandedly undo qualify for relief that few families will tax rate, from the 26 percent originally the hard work we did in 1993 to finally likely see any relief at all. recommended, to 24 percent. But we bring annual budget deficits under con- And it is family owned businesses, ought to make sure that by the time trol. We’ve made dramatic progress, particularly those owned by women the bill reaches the President’s desk, bringing down annual deficits from $290 and minorities, that are in the greatest depreciable real estate is on par with billion in 1992 to an expected $60 billion need of relief from death taxes. Instead other types of investments. this year. Now, on the precipice of bal- of being able to pass a hard-earned and CHILDREN’S HEALTH INITIATIVE ancing the budget, we are going to pass successful business on to the next gen- Mr. President, I am also concerned a tax cut bill which takes us in pre- eration, many families have to sell the about the tobacco-tax provisions of cisely the opposite direction. While I company in order to pay the death tax. this bill. I realize that the tax is in- understand that these tax cuts are pro- The upward mobility of such families is tended in large part to raise additional vided for in the context of a balanced stopped in its tracks. Proponents of revenue for the children’s health-insur- budget plan, no one can argue that this tax say they want to hinder con- ance initiative. Yet, most people recog- they will increase the deficit and the centrations of wealth. What the death nize that an increased cigarette tax debt between now and the year we ex- tax really hinders is new American suc- would lead to lower cigarette consump- pect to get to a balanced budget, if we cess stories. tion—in fact, discouraging smoking is get there at all. Yet, the death-tax provisions in the one of the prime objectives of a tax in- Not only will this bill increase the bill do not save Americans from having crease. But if smoking declines, so do current deficit and the long-term debt,

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00037 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6706 CONGRESSIONAL RECORD — SENATE June 27, 1997 the out-year costs will come due at a tax relief provisions in this bill. I un- The Republican plan takes each of time when the costs of our entitlement derstand the burden these taxes cause these legitimate points and misuses programs begin to swell due to the re- for some families, particularly those them as excuses to give enormous tax tirement of the baby boom generation. with family owned farms and busi- cuts to the well-heeled and the power- From now until 2030, the number of in- nesses, but the slow phase-in of in- ful and it does so as far as the eye can dividuals who will qualify for these creases in the current $600,000 exemp- see. This plan violates the fundamental programs will double, going from 35 tion amount guarantee that the true principles that any tax bill must meet: million to 70 million. Even if we didn’t cost of the tax change won’t show up tax fairness and fiscal responsibility. enact this tax cut, all revenues we col- until after 2007. The Republican bill claims that it lect would be needed just to fund enti- Mr. President, the most difficult part will give fair tax relief to families, but tlement programs and interest on the of opposing this tax bill for me has to the Republican child credit is designed debt by 2012, leaving only borrowing to do with the education incentives in- to exclude large numbers of low- and cover defense and discretionary invest- cluded in this bill. From my days as middle-income working families. ments in human and physical capital. governor of the Commonwealth of Vir- Forty-seven percent of all American Enacting a tax cut which doubles in ginia, I’ve made education my top pri- children would not be eligible for the cost every 5 years hardly seems an ap- ority, pumping over $1 billion of new child credit under the Republican pro- propriate course to follow given the de- funds into education during my tenure posal. An additional 8 million children mographic challenges we confront as governor without a tax increase. I would be eligible for only a partial ben- early in the next century. simply believe that the education of efit. Clearly, the Republicans have ger- This tax cut would not have been as our children is the most important rymandered their credit to save money damaging in the future were we likely function of government at any level. by denying it to as many working fam- to make some of the long-term struc- Because of this commitment, I applaud ilies as possible. Yet these are the fam- tural changes in our entitlement pro- the President’s effort to increase ac- ilies who need help the most. Our grams that would have sufficiently re- cess to education. Democratic proposal offers all of these strained the growth of these expendi- I am not opposed to commiting addi- families an honest tax break. The Re- tures in the future. By abandoning a tional resources to education, but my publican proposal is a let them eat legislative change for a more accurate concern about these tax provisions is cake tax break. measure of the cost-of-living adjust- that they are not likely to encourage I also oppose the education provi- ments and the likely elimination of students to get a higher education. For sions of the Republican bill because any eligibility changes in Medicare by the most part, they would simply sub- they are skewed toward the highest in- the time the spending measure be- sidize those who would have attended come taxpayers. These Republican pro- comes law, we compound our long-term anyway. In addition, most education visions clearly violate the firm com- fiscal problems with this tax cut. experts believe these tax provisions mitment made under the budget agree- Mr. President, the truth is that even could result in an increase in tuition ment on tax benefits for higher edu- if we were in budget balance today and costs as institutions use the tax sav- cation. The letter signed by NEWT for the forseeable future, I couldn’t ings to increase their costs, potentially GINGRICH and TRENT LOTT specifically support this particular tax bill. The making education expenses even higher states that tax relief of ‘‘roughly $35 fact of the matter is that the tax bill for students who can’t qualify for these billion’’ will be provided over 5 years before us does little or nothing to sim- new tax benefits. It also seems to me for post-secondary education, and that plify the tax code, fails to adequately that those who benefit from these edu- the education tax package ‘‘should be encourage new savings and investment, cation incentives ought to have some consistent with the objectives put for- and is structured in a way that masks obligation of community service, a ward in the HOPE scholarship and tui- its long-term costs. Instead, it is large- cause I have long championed. tion tax proposals contained in the ad- ly driven more by political payoffs to In summary, Mr. President, I voted ministration’s fiscal year 1998 budget special interest groups and polling earlier this week for the spending cuts to assist middle-class parents.’’ data, rather than rational tax policy. in the first Reconciliation bill because The administration’s proposal had The child tax credit has been roundly I believe that deficit reduction should two goals: to help middle-class families denounced by economists as doing lit- be our No. 1 priority. It is for this same during the critical years while students tle more than encouraging additional reason that I oppose this legislation on are in college, and to encourage life- consumption, something we clearly principle and for the substantive policy long learning. Students and families ought not to be encouraging at this reasons I have outlined. I understand across the Nation are concerned about point given our robust economy. At that it is politically difficult in our day escalating tuition, and this bill does least the Senate retained the provision and age to resist the siren song of tax not do enough to help them. that required that the tax savings be cuts. But I hope that those who intend The Republican bill is flawed in an- saved for education expenses for those to support this tax package will be pre- other major respect in this area—it ut- with children between 13 and 16, and I pared to answer for their vote when the terly fails to address the need to help commend my colleagues, including revenue losses begin to mount and pre- workers expand their skills and edu- Senators BREAUX, KERREY, and LIEBER- vent our budget from staying in bal- cation. We need to give a real benefit MAN, who have fought so hard to ensure ance over the long term. to teachers, nurses, auto mechanics, that the child tax credit provides some With that, Mr. President, I yield the and all others in jobs that need con- economic value by requiring that it floor. tinual upgrading of skills. The work- goes to savings and investment. Mr. KENNEDY. Mr. President, I op- place depends more and more on highly Many have claimed that both the pose this bill, and I hope that it will be trained workers. To sustain a strong capital gains provisions and new indi- vetoed by the President if it emerges economy, we must invest in ongoing vidual retirement accounts will en- from the House-Senate conference in education throughout life. courage additional savings and invest- this unacceptable form. The last thing The bill also provides a dispropor- ment, and I would like to believe that the American people need is a trickle- tionate education benefit to high in- is the case. However, the capital gains down tax relief bill that offers plums to come families. It contains three sepa- benefits fail to differentiate between the wealthiest individuals and corpora- rate provisions to encourage savings those gains from long-term investment tions in our society, and crumbs for ev- for college, at a total cost of over $7 and those from stock speculation, and eryone else. billion over the next 5 years. Lower in- the new backloaded IRA’s will likely Clearly, we need to give tax relief to come families do not have the luxury result in simply a shift of existing sav- families, we need to encourage invest- to save as much as higher income fami- ings to a tax deferred vehicle, resulting ment in education, we need to encour- lies do, and will not be able to take ad- in compounding revenue losses over age investment in small businesses, we vantage of these provisions. time. need to grant relief from the hardships I also strongly support funding for Compounding revenue loss will also that are sometimes caused by the es- crumbling schools. The deterioration of result from the structure of the estate tate tax. hundreds of schools across the United

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00038 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6707 States is a disgrace. But the Repub- Arguments for certain types of edu- $265 billion tax increase that President lican bill provides only token help. It cation tax cuts and child tax credits Clinton pushed through in 1993? offers only Band-Aids to put over leak- are not as persuasive. And they become It is a proud day for this body and for ing roofs. less so when they are not available to the American people to finally witness Similarly, the massive capital gains those families who might most need a Congress with the courage to enact a tax breaks and massive estate tax such relief. If we are going to provide plan to restrain Federal spending and breaks are also tilted heavily to the tax cuts to families with children, then balance the budget. Also very impor- wealthy. Largely because of these pro- we shouldn’t exclude millions of work- tant is the savings that will be passed visions, more of the benefits of the Re- ing families with lower and moderate on to the American people in the form publican plan go to the top 1 percent of incomes. Over 565,000 kids in Wis- of tax relief. One thing we easily forget taxpayers than go to the bottom 60 per- consin, nearly 40 percent, live in fami- is that tax revenues belong to the tax- cent of the taxpayers. Under the Re- lies that will not receive the tax credit. payers. This historic bill will simply publican plan those who are already Altogether, as desirable as tax cuts return the taxpayers’ own money back well-off are given tens of billions of might be, we need to keep our focus on to them. dollars in unwarranted tax breaks, balancing the budget first, then con- Mr. President, important to this de- while those who are struggling are ig- sider tax cuts. American families will bate is how this tax package is being nored. benefit enormously by the Federal received and the work that has gone Finally, the amount of the Repub- Government bringing down the deficit into making this bill a good piece of lican tax cuts will explode in the years and achieving a balanced budget. Any- legislation. This bill was reported out after 2002, and the deficit will increase thing that diverts us from that course of the Finance Committee with over- enormously. The Center on Budget and should be resisted until we have fin- whelming bipartisan support, and I hope that there is overwhelming bipar- Policy Priorities has estimated that ished the job. the cost of the Republican proposal Finally, if we must have tax cut leg- tisan support for its final passage. I will increase by between $500 and $600 islation as part of the budget agree- want to commend my colleague and chairman of the Senate Finance Com- billion in the 10 years following the ment, it ought to be both fiscally re- mittee for the balanced, bipartisan bill current budget period. It will be nearly sponsible and fair. This bill fails on both counts. The tax cut bill is heavily he spearheaded. impossible to balance the budget in Mr. President, working families in back-loaded. While costing $85 billion those years if this Republican tax give- this country do not take the paying of over the first 5 years, the plan will cost away is enacted into law. taxes lightly. How could they? They The Republican plan is a Trojan close to $60 billion annually once it is pay payroll taxes, income taxes, prop- horse for giving tax breaks to the fully in place. That kind of exploding erty taxes, and other taxes. In addition wealthy. If we had no tax bill, it would cost moves us away from a balanced to the amount of taxes taken out of be better than this trickle-down bill. budget, and puts us back on the track every paycheck, families reconcile Mr. FEINGOLD. Mr. President, I in- to rising deficits. It is ironic that those what income taxes they owe to Uncle tend to vote against this tax bill. who shout the loudest about the need Sam every April 15, and millions must Although I voted for the budget reso- for a balanced budget amendment to send a check to the government for ad- lution which was designed to bring us our Constitution are among the biggest ditional taxes. The American taxpayers to a balanced budget within the next 5 supporters of a tax bill that is nothing understand and realize that their tax years, I have consistently said that we less than a budget buster. payments go to providing needed Gov- should actually achieve a balanced The tax plan also fails the test of ernment benefits and to support the budget, before enacting any sweeping fairness. A package of tax cuts, even freedoms we enjoy. However, enough is new tax cuts. As attractive as new tax one targeted toward economic develop- enough. It is time to cut the fat out of cuts may be, I think our first fiscal ob- ment, need not be skewed to the Government and lower the Federal tax ligation is to eliminate the deficit. We wealthiest. Unfortunately, this meas- burden. And, it is time to reduce the shouldn’t ask our children and grand- ure is. According to the tax watchdog burden of budget deficits on taxpayers, children to foot the bill for our pro- group Citizens for Tax Justice, over mortgage holders, small businessmen, gram spending or our tax cuts. half the proposed tax cuts in the bill go students, and all others having or need- Having said that, let me address sev- to the top 5 percent of all taxpayers. ing loans. It is time to stop passing off eral other issues. If we are going to And while the 40 percent of families the burden of current spending onto have tax cuts before the budget is actu- with the lowest income receive no tax our children and grandchildren. ally balanced, then we should focus on benefit, the top 1 percent receive an av- Mr. President, this tax relief plan the kinds of cuts that at least have erage benefit of nearly $16,000. contains significant tax cuts in a vari- some potential to help enhance eco- Mr. President, let me emphasize my ety of areas. I will not take the time to nomic productivity and increase reve- firm belief that our highest priority comment on every provision and nues—tax changes that arguably will must be to balance our Federal budget change in the bill. However, I would increase income and resulting revenues before we cut taxes. We have come too like to comment on a few of the main will help move us toward a balanced far and worked too hard to bring our areas of tax relief which I have long ad- budget. deficit down to jeopardize that effort vocated. For these reasons, I have indicated with a fiscally irresponsible tax cut First, families with children will re- that if we are to have tax cuts before bill. I support the bipartisan balanced ceive a $500 per child tax credit. Rais- the budget is in balance, we should budget agreement negotiated by the ing children in today’s world becomes limit them to changes that will stimu- congressional leadership and the White more expensive each year. This $500 late economic growth. A number of my House, but this tax package is not con- credit will put more money in the constituents have presented me with sistent with the spirit of that agree- hands of parents to help them better strong arguments that some reductions ment, and needlessly risks the progress afford the high cost of raising children. in the capital gains and estate taxes we made in the reconciliation package It’s real money back into the bank ac- will enhance economic productivity we just passed. counts of American families. and growth, and I have been willing to Mr. HATCH. Mr. President, I rise Second, this bill would provide a support capital gains and estate tax today to speak in strong support of the number of proposals to ease the burden changes if crafted in ways that target historic tax relief plan, the Revenue of paying for college. I hear again and the benefits so as to stimulate growth Reconciliation Act of 1997, that is be- again about the high cost of colleges and economic activity. For Wisconsin, fore the Senate today. Change has fi- and universities. And, I have some per- this means, in particular, that capital nally come to Washington and the sonal knowledge on this point, Mr. gains and estate tax changes should be fruits of that change are beginning to President. I not only put myself targeted to help family farms and be realized. Who would have thought through both college and law school, I other smaller family businesses that that 3 years ago that the American have also, as a father, put my six chil- are passed down from one generation to people would be receiving a $85 billion dren through college. I know the sac- the next. tax cut today, especially after the huge rifices that are necessary.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00039 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6708 CONGRESSIONAL RECORD — SENATE June 27, 1997 This tax bill would provide a tax manner. I applaud my colleagues for these accounts, in contrast to just 70 credit for tuition expenses, a deduction their support of this important pro- percent today. Also, this bill provides for student loan interest, and an expan- gram. both capital gains and estate tax relief, sion of the current pre-paid tuition Mr. President, there are a number of phased in in incremental steps, but programs. And, important to elemen- other tax relief provisions in this bill nonetheless important to the overall tary and secondary school teachers, and also many other tax simplification investment climate of the Nation. I the bill contains a provision to remove provisions that are very important. I hope that a great portion of that in- from the 2-percent itemized deduction personally wish we could have done vestment and economic activity gets limitation educational expenses re- more in many of these areas. directed toward and takes place in New lated to furthering the skills of the But, the fact that we are passing this Mexico. teacher. Teachers have great influence legislation today, and the promise of This bill contains about $32 billion in over our children. Well trained teach- the President that he will sign it into education provisions which will be of ers are critical to preparing our chil- law, means that the bill has been a bi- benefit to many New Mexicans, par- dren for the challenges of the future. partisan effort. As such, it is a com- ticularly those who need support for Third, this bill contains important promise and is not perfect from any college tuition. In addition, over 45 per- tax cuts to stimulate economic growth one Senator’s point of view. If you cent of New Mexico’s families paying and to further the creation of jobs. I polled all 100 Senators, I am sure each taxes of $1,500 or more will be eligible have long been an advocate of reducing of us would mention provisions we to take advantage of the HOPE schol- the tax on capital gains. During debate would like to have written differently. arship. And while I would have pre- this week, we have heard a great deal There were a number of amendments ferred that this figure be far higher, ap- of discussion about the rich versus the offered to this bill that I support and proximately 51 percent of dependent poor and who gets what out of this tax would have liked to vote for. However, children in New Mexico will be eligible bill. Let me make it clear that every- when anyone participates in a negotia- for some portion of the per child tax body benefits when jobs are created tion and becomes a party to an agree- credit. Another important accomplish- through economic growth. A capital ment, he or she cannot willy-nilly sup- ment in this bill is that it provides re- gains tax cut creates jobs and eco- port changes to that agreement just sources to help cover child health in- nomic growth. Government investment because you happened to like someone surance for the 10.5 million uninsured is limited in what it can do to help peo- else’s idea better. It stands to reason kids in America by raising the tobacco ple economically. Encouraging private that you cannot persuade others to tax by 20 cents per pack. sector investment will foster the most compromise if they cannot expect your There are other provisions in S. 949 efficient and effective ways to better adherence to whatever agreement is that are worthy of support including the economy. I firmly believe that the reached. I gave my word to Chairman permanent extension of the tax credit capital gains tax relief in this bill is ROTH and to my colleagues on the Fi- for employer provided educational as- the most important thing we can do for nance Committee to maintain the in- sistance which many New Mexican economic growth in this country. tegrity of the compromise bill that we workers and firms have very much Expanding an existing business, passed out of the Finance Committee wanted. This bill also provides for an starting a new venture, or bringing a on a strong bipartisan basis. I am also exemption from the 2 percent miscella- new invention to market requires cap- constrained from voting to further in- neous work provision of the Tax Code ital investment to make happen. Tax crease the cigarette tax even though it for hard-working, dedicated teachers policy has a tremendous impact on the could be used to finance laudable objec- who spend their own money on edu- amount of capital investment. Under tives in childrens health or to increase cation technology materials and who the current law, gains from capital in- the deduction for health insurance pre- should be able to fully expense these vestments are taxed twice, once when miums paid by those who are self-em- costs on their tax returns. the income is earned and again when ployed. However, this bill is far from perfect. that income is distributed to the share- Of course, there are also some provi- S. 949, which provides for an $85 billion holders. Cutting the capital gains tax sions in this bill that I am not enthusi- net tax decrease, does not provide for rate will encourage more investment astic about and would cheerfully drop the kind of distribution of benefits which will translate into the creation were they not part of the agreement. across our society that I would have of more jobs. This change is absolutely But, taken as a whole, this tax pack- preferred. Although the Finance Com- critical to maintaining a strong econ- age is a good mix of tax relief provi- mittee did a far better job of making omy well into the future. sions that will go a long way to lower the tax cuts fairer than did the House I am also pleased to see relief from the average American families’ tax Ways and Means Committee, I would the death tax in this bill. Nowhere is burden. This is an historic piece of leg- have preferred the Democratic alter- the damage of onerous taxation more islation, and I am proud to support its native which was offered yesterday by evident than our current estate tax. It passage. Senator DASCHLE. is an inefficient tax that really should Mr. BINGAMAN. Mr. President, I rise The bill we are passing today—and be abolished. Families should not have today to comment on the tax bill we which I plan to support on final pas- to face a tax bill that forces the invol- are debating, S. 949, the Revenue Rec- sage—still hands the lion’s share of tax untary sale of assets shortly after put- onciliation Act of 1997. This bill is not relief to the wealthiest 1 percent of ting a loved one to rest. I hope that we the bill I would have preferred if I had Americans, more than the combined can increase exemption from this oner- written all of the details, but it has lower 60 percent will receive. By con- ous tax as quickly as possible. many redeeming sections which I think trast, if we had passed the Daschle bill, Mr. President, another critically im- do benefit New Mexico and the Nation working families would have received portant provision in this bill is the $8 as a whole. almost twice the tax relief provided in billion in additional money for chil- I want very much for New Mexicans the Finance Committee plan. dren’s health insurance. This is impor- to get needed tax relief. We have a Furthermore, the Democratic pro- tant for the most vulnerable of our strong economy and are within reach posal had many targeted tax relief citizens—low-income children. The fu- of a balanced budget. It does seem to measures which would have done much ture of this country lies with our chil- me that the tax burden of many New more for small businesses and small dren. We cannot ignore the gap in our Mexicans and others is higher than it farms than the Republican bill health care system that does not cur- needs to be—and while this is not achieves. In education, the Democratic rently provide vision or auditory structured the way I would have pre- amendment would have provided work- screening, or other preventive health ferred it—I will support final passage of ing families more opportunities to help care. The provisions adopted by the Fi- S. 949 because it does move us further educate their children, rebuild schools nance Committee, and ratified by the in a positive direction, than it does and send their children to college. full Senate by an overwhelming vote, negative. This bill expands IRA’s in a Perhaps most importantly, the are significant and will help address way in which nearly 90 percent of our Democratic bill was the more fiscally these yet unmet needs in a responsible working population will be eligible for responsible of the two alternatives.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00040 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6709 One of my major concerns about S. 949 who actually have employer-sponsored wish we had done better and hope that is that the backloading of estate tax plans benefit from IRA Plus. the conferees will struggle to produce provisions, capital gains provisions, Because all distributions from these an even better bill than this, rather and particularly IRA provisions will IRA Plus accounts are tax free, they than dumbing this down to many of the balloon the budget deficit enormously provide a certain group of wealthy sav- worst provisions in the House com- just after we finally achieve the dis- ers a home grown version of a Swiss panion bill. I yield the floor. cipline to bring the Nation’s spending bank tax haven. If these IRA Plus ac- Mr. REED. Mr. President, I rise to and income into balance. counts are established, there is no express my concerns with the tax bill Let me explain a bit about my con- doubt that they will be a terrific deal passed by the Finance Committee, and cern about the IRA provisions. I com- for those who participate. But it’s not to express my support for the Demo- pletely support the notion that the Na- fair and not good policy to provide a cratic alternative. I believe the Fi- tion needs more savings. This will help tax windfall to the rich and do nothing nance Committee bill is seriously generate more capital for long-term in- for those who are struggling to save flawed, and will put us on a path to ex- vestment and growth. But I object to smaller sums; those less wealthy tax- ploding deficits, rising inflation, and allowing only the wealthiest in our so- payers will continue to pay tax on any future economic hardship. In a time ciety to have the tax incentives and distributions. when we are asking our seniors to ab- tax havens to save. We should provide Furthermore, IRA Plus accounts cre- sorb $115 billion in Medicare cuts, I incentives across the board—and make ate a troublesome benchmark vis a vis think it is irresponsible to enact the sure that all sectors of our society are other savings vehicles. It is reasonable large, across-the-board tax cuts that getting some degree of retirement sav- to ask that if IRA Plus accounts are are contemplated in this legislation— ings in place. This bill does not do this. tax free, then why not 401(k)’s or reg- tax cuts that will add to the pain of In fact, this legislation is a radical de- ular IRA’s or the Simple Plan or cor- balancing the budget by the year 2002. parture from our current retirement porate defined benefit programs? It Of particular concern is the fact that savings policy which at least purports would be terrific if all savings vehicles these tax cuts will disproportionately to establish a level playing field for were tax free, but the fact is that the benefit the wealthiest Americans who both high income and low income IRA Plus program alone—given the tre- have already benefited from the un- workers. mendous backloading in it—will blow a precedented performance of our econ- Unfortunately, the Finance Com- huge hole in the budget deficit in fu- omy and stock market over the last mittee tax proposal contains two IRA ture years. several years. Specifically, 42.8 percent provisions which are at fundamental While the IRA provisions in the Fi- of the tax cuts will go to the top 10 per- odds with each other and represent the nance Committee tax bill start out cent of income earners, those who earn Cain and Abel of retirement savings costing just $3.3 billion in the first five more than $120,000. Meanwhile, only 2.7 policy. On one hand, the bill makes an years, the cost surges to $20.5 billion in percent of the benefits will go to the important contribution to strength- the next five years and then to an esti- bottom 40 percent of hard-working ening the national savings system by mated $88.5 billion in the following ten Americans. To continue this gravy doubling the income eligibility for de- years. Most of this backloading comes train for the well-to-do, while ignoring ductible IRA’s. The proposal makes de- from the establishment of IRA Plus the economic anxieties faced by middle ductible IRA eligibility available for 90 accounts. Furthermore, the and lower income Americans, is unfair. percent of the population instead of the irreversibility of this backloading will Nevertheless, the Finance Committee 70 percent now eligible. tie the Nation’s hands just as the crush tax bill is loaded with breaks for the Under this better side of the S. 949, of retiring baby boomers forces very wealthiest Americans, leaving the av- deductible IRA’s will be available to real costs on the Federal Government. erage taxpayer holding the bag. everyone with less than $100,000, joint We should think very carefully about Perhaps most illustrative of this filers, of income. And as is the case the consequences of setting up these point are three of the plan’s largest tax with current law, even those with in- IRA Plus accounts. I very much hope cuts—the capital gains, individual re- comes above $100,000 can still make de- that when this bill goes to conference, tirement accounts [IRA’s], and estate ductible IRA contributions, as long as the conferees will tread carefully and tax provisions. The Joint Tax Com- they have no other employer-sponsored will reconsider this very troublesome mittee has estimated that three-quar- pension plan. provision. ters of Americans receiving capital It is also important to understand I have other concerns including the gains income have household incomes that under current law, people who signals that I think are being sent to over $100,000. Similarly, only 1.6 per- have employer-sponsored retirement hard-working New Mexican families cent of estates are valued high enough plans can still make nondeductible that you have to have a high level of to qualify for estate taxes. Finally, in- contributions to IRA accounts. These income and children to fully qualify for creases in the IRA income limitations people can put an extra $2,000 a year the child tax credit we are providing in will benefit only the top 30 percent of away so that this money can accrue this bill; 70 percent of New Mexico tax taxpayers. As laudable as some of these and compound tax-free until retire- filers report less than $30,000 in annual items are, their combination, without ment. This tax-advantaged savings op- income, 45 percent have less than targeting, skews this bill to favor the portunity provides significant benefits $15,000 income. It is obvious that many, affluent over middle-income Ameri- to those who make after tax IRA con- many New Mexico children will not be cans. tributions. So far so good. able to benefit significantly from the Beyond favoring the wealthy, the But Senator ROTH’s IRA Plus pro- child tax credit. cost of these tax cuts will ultimately posal, in contrast to the IRA expansion Many here attempted to offer amend- threaten the progress we have made on provisions, is a bad step for us to take. ments which I supported and which reducing the deficit, which is at its A radical departure from past retire- would have made the $500 per child tax lowest point as a percentage of gross ment savings policy, IRA Plus over- credit refundable against payroll taxes; domestic product [GDP] since 1974. whelmingly benefits the rich. It also or in a different approach, would have This is because the costs of the tax creates a slippery slope towards tax- allowed tax filers to get their full EITC cuts, which are relatively low in the free havens for other retirement pro- credit and then figure the per child early years, will explode in later years grams and blows a very large hole in credit. Either of these would have en- outside of the budget window. For ex- the Federal budget deficit in future sured that millions more children ample, from 1997 to 2002, the combined years. The fact is that because tax ad- around the Nation and more than revenue loss of the capital gains, estate vantages in the other Roth provisions 250,000 New Mexico children would have tax, and IRA provisions is $4.3 billion. are available to both those under benefited from this provision. However, the revenue loss from these $100,000 income levels as well as those Overall, S. 949 delivers a better pack- provisions rises dramatically between at any income level who don’t have an age of education, health, and child care 2003 and 2007 to $68.7 billion. In 2007, the employer-sponsored pension plan, only spending initiatives and various tax re- combined costs of the capital gains, those above $100,000 income levels and lief provisions than the House bill. I IRA, and estate tax provisions grow to

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00041 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6710 CONGRESSIONAL RECORD — SENATE June 27, 1997 $18.2 billion. This is 25 times the aver- strong supporter of the HOPE scholar- amendment will eliminate the fiscal age annual cost of these provisions of ship tax credit proposed by the Presi- time bombs in the Finance Committee $720 million, as indicated in the Joint dent. While I applaud the committee bill that will explode after 2002 and Tax Committee distribution tables for for including education tax credits in threaten our progress toward a bal- 1997 through 2002 for the Republican their bill, I am concerned about reduc- anced budget. Finally, the amendment tax bill. tions the committee has made in the rightly focuses on the targeted invest- In addition, cuts in the capital gains size of the credit, which will limit its ments necessary to keep our country tax rate will likely generate a flurry of usefulness to many students. For this moving forward into the 21st century. unproductive economic activity that reason, I believe we should look to the Mr. LIEBERMAN. Mr. President, I may produce an unwelcome side ef- Democratic alternative which allows rise to discuss three provisions of the fect—inflation. Because there are no for the full HOPE credit to be used by Revenue Reconciliation Act of 1997. I requirements for reinvestment, a sig- students for the first $1,000 in tuition begin by congratulating my colleagues nificant share of the capital gains real- expenses. Additionally, the Democratic on the Senate Finance Committee for ized will likely be consumed. This in- alternative establishes a 20 percent tui- their efforts on this bill. They have creased consumption will put upward tion deduction that can be used after a worked hard to craft legislation that is pressure on prices and fuel the fires of student ceases to be eligible for the forward looking and sensitive to the inflation that we have fought so hard HOPE credit. Together, these tax cred- needs of our economy, working Ameri- to extinguish. its provide the type of meaningful as- cans, and our children. For the next I am supportive of the Democratic al- sistance that many middle-class stu- few minutes, I would like to highlight ternative because it contains targeted dents will need in order to meet the fi- several provisions of the bill that I be- capital gains tax cuts aimed at produc- nancial demands of postsecondary edu- lieve are particularly important to our tive, long-term investment and savings cation. national economy and my State of in areas that will best-serve our econ- Also, the Democratic alternative ad- Connecticut and are issues that I have omy. For example, the bill provides a dresses the problem of crumbling supported and worked on over the capital gains reduction for owners of schools that threatens our education years. small and startup businesses, which system at the most fundamental ECONOMIC GROWTH AND U.S. COMPETITIVENESS IN A GLOBAL ECONOMY represent the most dynamic sector of level—elementary and secondary The Revenue Reconciliation Act of the American economy. In addition, grades. It has been reported that in 1997 is a timely piece of tax legislation. the Democratic alternative eliminates order to repair the costs of this coun- It comes at a moment when our econ- IRA provisions in the Finance Com- try’s aging schools, we will have to omy is in the midst of a transition to mittee bill that will lead to dramatic spend at least $4.8 billion. The Demo- one that is more global and outward cost increases over time. Moreover, the cratic alternative takes a step toward looking, more competitive, and more Democratic bill provides estate tax re- addressing this problem by establishing innovative. American companies and lief in a manner that will benefit true a program to allocate tax credits workers, whether they are in manufac- family-owned businesses and farms among the states for the purpose of re- turing, high-technology, or service in- that continue to be operated by family pairing and constructing school facili- dustries, are more dependent on the members. ties. We cannot hope to improve access world economy than ever before. It is The child tax credit is yet another and opportunity to higher education, with this assumption that we must example of the distributional unfair- without first ensuring that our elemen- consider our economic future. ness of the Finance Committee legisla- tary and secondary schools provide a Today in this new global economy, tion. Because the credit is nonrefund- physical environment that is conducive more Americans are taking part in em- able, many middle- and low-income to learning. ployee ownership programs than ever Americans will be unable to take ad- Although hailed as the biggest tax before. Employees increasingly have a vantage of the child tax credits. It has cut since the Reagan era, the Finance stake in the performance of their com- been estimated that nationwide, 47 per- Committee bill is perhaps a prelude to pany and are sharing in its growth. As cent of all dependent children will be the biggest tax increase in our history. a result, our workers are directly bene- completely ineligible for the $500 tax This is because the bill is loaded with fiting from the dynamic economic ex- credit because their incomes are too gimmicks that reduce its costs in the pansion that is sweeping across our low. In my State of Rhode Island, al- early years, and will result in an expo- land. Our economy is once again being most 141,000 children, or 46 percent of nential rise in costs beyond the 5 year driven by aspirations for a better liv- the dependent children in the State budget window. Assuming that we ing. will be ineligible for the credit accord- reach a balanced budget by 2002, this This bill represents an understanding ing to Citizens for Tax Justice. bill will make it virtually impossible of our new economy and the aspira- The fact that almost half of this Na- to keep our budget in balance, without tions of working Americans. It under- tion’s children will be denied the tax raising taxes. In addition, the bill as- stands that education is the key to so- credit is of great concern, and further sumes that the U.S. economy will re- cial mobility and economic security; it reinforces my support for the Demo- main strong in the future—an assump- understands that small businesses are cratic tax alternative, which goes a tion that flies in the face of the busi- the backbone of our economy; it under- long way toward solving this problem. ness cycle. An economic downturn stands that increased savings and in- The Democratic alternative improves would dramatically increase the costs vestment means greater independence the overall distribution of the tax cut and eliminate the hope of a balanced and growth; and it understands that by making the child credit refundable budget. urban renovation means enlarged op- against federal payroll taxes. This is The Finance Committee bill will also portunity. It is a bill that sets our significant because most of the fami- help those Americans who are least in economy on a sound footing for the lies that would otherwise be ineligible need of help. The capital gains tax next millennium. for the credit pay far more in payroll cuts, estate tax cuts, and many of the KIDSAVE taxes than they do in income taxes. changes to IRA’s will benefit those Let me now turn to some of the spe- The Democratic alternative would also Americans who have shared most in cific provisions that I believe are at the establish an income limitation on the the economic growth of recent years. I heart of this tax legislation and the tax credit to target the benefits to low- question how we can afford to offer reasons why I will support this bill. and middle-income families that truly these tax cuts, while asking seniors to First, I am pleased that my colleagues need the assistance. pay more for Medicare. have included in the Revenue Rec- Mr. President, in these times of eco- Mr. President, as we debate this bill, onciliation Act of 1997 a child tax cred- nomic prosperity, we can afford to, and I ask my colleagues to consider the it for children under age 17. This provi- indeed we have an obligation to invest Democratic tax alternative. This sion is a modified version of a proposal in priorities such as education that amendment will provide for a fair dis- Senator KERREY of Nebraska and I first will have a positive impact on Amer- tribution of the tax cuts and benefit a discussed in the 104th Congress. The in- ica’s future. That is why I have been a greater number of Americans. The clusion of Kidsave reflects forward

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00042 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6711 thinking and, according to a recent wealthy, but include all working Amer- Reconciliation Act of 1997. It is a fair New York Times editorial, ‘‘a clever icans. As a result, the benefits of this and sensible bill that is pro economic way to convert a pro-consumption tax capital gains cut will not flow just to growth and pro-job creation. At a time cut * * * into a pro-savings tax cut.’’ I people of wealth. Anyone who has when we are facing many economic congratulate Senators KERREY and stock, who has money invested in a challenges, this bill helps our compa- BREAUX and their colleagues from both mutual fund, who owns a home, who nies and workers more effectively com- sides of the aisle on the Finance Com- has a stock option plan at work, has a pete on the global economic stage. But mittee for their work on this proposal. stake in capital gains tax relief. Ac- more importantly, it is a bill that will The key word here is pro-savings. At cording to the provisions included in broaden educational opportunities for a time when one of our greatest chal- this bill, homeowners will now be able our children and promote economic se- lenges is how to create economic op- to exempt up to $500,000 in gains from curity for their retirement. portunity and wealth for the working the sale of their principal residence. In Mr. BRYAN. Mr. President, I sup- families of this country, I believe addition, $1.5 million in assets of a ported this compromise legislation in Kidsave helps us meet that challenge family business will be exempt from es- the Senate Finance Committee, and I in an affordable, responsible way. If tate taxes. All of this means that mil- intend to support its passage on the there is going to be a tax credit to help lions and millions of middle-class floor as well. While there are many as- families with children, I believe there American families stand to benefit pects of this legislation which I believe is no better way to provide that help from this bill. could be improved, I applaud Chairman than to offer parents the opportunity Small businesses will also particu- ROTH for his efforts to produce a bipar- to ensure a sound financial future for larly benefit from the provision in this tisan, consensus bill that the great ma- their children. bill. In a country where small busi- jority of the members of the com- One additional advantage of Kidsave nesses comprise a growing percentage mittee could support. should be noted, although it is harder of GDP, it is critical that their eco- One of the areas where I believe the to quantify at this time. This is the ef- nomic growth is not stifled by limited bill does not go far enough in cor- fect of encouraging Americans to save. capital, but encouraged through great- recting flaws in the House Ways and The ethic of thriftiness seems to have er investment. The Revenue Reconcili- Means bill, however, relates to the been lost in recent decades, replaced by ation Act of 1997 increases the size of treatment of investment in real estate. a credit card mentality. We would com- an eligible corporation for additional Since 1963, so-called real estate depre- pound our problems if we pass such bad favorable capital gains treatment. It ciation recapture resulting from habits on to future generations. also cleans up some of the implementa- straight line depreciation has been pro- Kidsave can help us turn the tide of in- tion problems from the 1993 capital vided the same tax rate as other forms debtedness into a groundswell of sav- gains legislation for smaller firms of capital gains. Under current law, ings and can transform our whole atti- which I strongly supported at that this rate is 28 percent. Under the House tude toward money and how to use it time. This means that the thousands of Ways and Means bill, however, an un- to best advantage. That will yield in- smaller companies and start-ups will fair differential is created between the calculable dividends for our nation attract more investors and capital. general capital gains rate, which is down the road. This will be especially helpful in the capped under the bill at 20 percent, and Kidsave will help our economy today capital intensive high-technology and the tax rate applied to depreciation re- by creating a pool of savings available biotechnology industries where much capture, which is set at 26 percent. for investment. As you know, savings of the growth in our economy is today. Many members of the Senate Finance and investment rates in the United BROWNFIELDS Committee expressed serious concerns States are at historic lows: our house- I am also pleased to see that there is with this inequitable treatment of real hold savings rate is 4.6 percent of dis- a tax relief provision for restoring estate investment, and significant ef- posable income, compared to Japan’s brownfields, abandoned commercial forts were made during the commit- 14.8 percent and Germany’s 12.3 per- and industrial properties believed to be tee’s consideration of this bill to pro- cent. Under the provisions of the bill, environmentally contaminated. The vide equal treatment for depreciation parents will have the option of depos- Revenue Reconciliation Act will pro- recapture. Unfortunately, revenue con- iting $500 into an IRA-like account for vide clear and consistent rules regard- cerns limited our ability to provide the children from birth to age 13, and be re- ing the Federal tax treatment of cer- 20 percent rate for depreciation recap- quired to direct $500 into an IRA from tain environmental remediation ex- ture, and, in the end, the committee age 13 to 16. This money will serve as penses. This too is an issue that I have agreed to lower the rate for deprecia- an education fund for individual chil- supported for some time. In fact, ear- tion recapture to 24 percent. dren, as well as a long-term retirement lier this year, I advocated the restora- While a better result than the House account; it will also provide invest- tion of brownfields with Senators Ways and Means Committee’s 26-per- ment capital for our economy. Most ABRAHAM and MOSELEY-BRAUN. cent rate, the 24-percent rate in the importantly, unlike any other proposal In a perfect world, I would like the Senate Finance bill still does not place that has come before, Kidsave gives our clean-up of all brownfield sites to begin real estate investments on an equal children a tangible, financial head tomorrow. However, revenue con- footing with other types of investment. start on the rest of their lives. straints preclude us from doing so. But I urge the leadership of both the Sen- CAPITAL GAINS we do have to start somewhere and ate Finance Committee and the House I am also encouraged that the draft- what better place to start than Em- Ways and Means Committee to recon- ers of the Revenue Reconciliation Act powerment Zones and Enterprise Com- sider this issue, and, during conference, of 1997 decided to include broad-based munities, areas that have been des- to restore equal treatment for real es- capital gains cuts and targeted cuts di- ignated as economically distressed. tate investment. At a minimum, I urge rected toward small businesses. The These are arguably the areas of this the conference committee to resist any bill calls for reducing the top rate from country that are most in need of eco- effort to increase the tax rate for de- 28 percent to 20 percent for the highest nomic development. And that is pre- preciation recapture any higher than earners and down to 10 percent for cisely what this brownfields tax incen- the 24 percent included in the Senate more modest household incomes. This tive is designed to do—bring economic bill. decision too reflects a forward-looking development to the places that need it Mr. BAUCUS. Mr. President, I rise in perspective on our economy. I was most. If this incentive works in our support of the tax relief legislation be- pleased to cosponsor similar legislation most economically distressed areas, I fore the Senate. with Senator HATCH earlier this year. hope this Chamber will work to have This is a complex bill. Chairman In today’s global economy, small this incentive cover a broader range of ROTH has done a superb job in working businesses and start-ups must rely on areas in the future. with a vast range of issues and many investors willing to take a risk on CONCLUSION different groups of taxpayers to their venture. And in today’s financial In closing, I would like to encourage produce a generally good bill. And to markets, investors are not only the my colleagues to vote for the Revenue explain why, I will start by putting

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00043 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6712 CONGRESSIONAL RECORD — SENATE June 27, 1997 numbers aside and reviewing the broad Third, with respect to simplicity, And we will directly increase our es- principles our tax policy should reflect. this bill will mean a much improved sential public investment in infrastruc- First, our tax policy should pay the Tax Code in one very important area. ture by moving the 4.3 cents per gallon bills. That is international taxation. in Federal gas tax revenues from gen- Second, it should be simple and pre- Today, businesses are international. eral revenues to the Highway Trust dictable. Agriculture is international. Compa- Fund. Third, it should be fair. nies in air services, entertainment, And most important of all, we will Fourth, it should promote growth. high technology and basic manufac- help educate our children. Give them And fifth, it should be as low as pos- turing are international. They comply the chance for college. Help them work sible. with Tax Codes in other countries. with new technologies. Make sure the Let’s begin with the first. We need to They hire people all over the world. next generation of Americans has the pay the bills. To take Alexander Ham- They work with suppliers and cus- highest level of skills and education in ilton’s words from Federalist 30, govern- tomers in different countries. And our the world. ment must: international tax laws, mostly drafted With this bill, we create a $20 billion raise troops, build and equip fleets * * * [and in the 1970’s, don’t recognize this. pay] for support of the national civil list; for HOPE scholarship. We create a new de- At that time, trade made up only duction for interest paid on student * * * debts contracted, or that may be con- about 12 percent of the American econ- tracted; and, in general, for all those matters loans. Promote life-time learning by which will call for disbursements out of the omy. Today it is over 30 percent and making the exclusion for employer- national treasury. growing all the time. And tax provi- provided educational assistance perma- These latter disbursements now in- sions which assume that international nent. clude health insurance for seniors and businesses are a rarity don’t make Our legislation is not perfect on edu- the poor. Social Security checks. High- sense any longer. They often make cation. I believe we can and should go ways, education, veterans benefits, sci- American companies less competitive, further on college opportunity. But it entific research, clean air, clean water, and sometimes even create perverse in- is much better than the status quo. and more. Essential services the people centives that push firms to avoid hir- And let me make a related point. want and should have. ing American citizens in foreign oper- That is, with this bill we help make But we also need to pay for them. ations. sure children are ready to learn. We do And in the past the government hasn’t This bill will help bring our Tax Code this by providing $24 billion in this bill entirely paid for them. In 1992, our into the 21st century. Not all the way, and the accompanying entitlement bill budget deficit stood at $290 billion. But but part of the way. It changes the pas- for children’s health. Today in Mon- in the past five years we’ve done much sive foreign investment company pro- tana, about 27,000 have no health insur- better. This year, the deficit will be visions to eliminate overlaps with ance at all. Millions more around the under $65 billion—a fall of nearly 80 other tax provisions. And it ensures country. that Foreign Sales Corporation treat- percent. That is a moral scandal and a threat And this bill will take us the rest of ment applies to software as well as to our future. Today in Montana, a typ- the way. By the year 2002, it will bal- other copyright works. ical health insurance plan for a family But I must say with some regret that ance the federal budget. It will pay the of four, with a $500 deductible and a on the general principle of simplicity, bills. partial dental benefit—costs $5,580 a Second, it will help make our Tax this bill is not an advance. Our Tax Code today relies on several year. That is simply out of reach for Code fairer. One very important exam- dozen different income taxes, payroll many working families. ple is our large cut in the estate and taxes, excise taxes, Federal Reserve de- And we have put together a package gift tax. with a lot of money for States to in- This tax is one of the prime causes of posit interest receipts, tariffs and Cus- toms fees, corporate taxes and user fees sure more kids. Through Medicaid, misery for farmers and small busi- to make up its $1.5 trillion in revenue. through assistance for private insur- nesses today. These businesses hold That is confusing and complicated ance, or other options that fit a State’s small Montana towns and rural coun- enough. Then add in the 135 major tax circumstances. This is will make our ties together across the generations. credits, deductions, exemptions, exclu- country stronger and healthier in the And by imposing very high-tax rates sions and deferrals, totaling over $500 future, and it is the right thing to do and equating land or asset values with billion in tax expenditures last year. for our kids today. large cash inheritances, the estate and And it gets even worse. Finally, the last principle. Taxes gift tax often force families to sell And this bill will not improve the sit- should be low. them when an owner dies. uation. In fact, in some respects it will And this bill will make taxes lower. To cite one particular example, let worsen the problem by adding to the Over the next 5 years, it will reduce me quote from a letter I received just diversity of tax provisions. That’s a overall taxes by $85 billion. last week from a veterinarian who runs drawback—not serious enough to de- Small businesses will get some more a small clinic in Kalispell. He fears value the bill as a whole—but one we capital to help them invest and grow. that: must frankly admit and return to in Farmers and ranchers will find it if I grow my business any more my heirs coming years. easier to pass their land on to their will have to sell it to pay estate taxes. Fourth, the bill will help promote sons and daughters. That fear runs from Kalispell clinics growth. Families with young children will to ranches in the Judith Basin to small How can we do that? First, by pro- have some more money to spend at the businesses in every Montana town. And moting investment for the future. movies, or in bookstores, or in contrib- it extends much further. When small Helping companies create new tech- uting to charities. businesses, farms, and ranches leave nologies, new products and new manu- Parents will find it a bit easier to the family, their entire neighborhoods facturing processes. Providing some in- send the kids to college. lose something very special. It is not centives to start firms and create jobs. That’s a good thing for everyone. right, and it is not fair. And improving our basic infrastruc- In conclusion, Mr. President, this bill And this bill will help us put a stop ture. lives up to the principles we should ex- to it. It will let Montana’s family- With this legislation, we do all those pect of our tax policy. owned farms and businesses exclude up things. It will pay the bills and balance the to $1 million in farm and business as- We extend the research and develop- budget. sets from the estate tax, allow 20-year ment tax credit for two and a half It will make taxation fairer. installment payments for businesses years. In some ways, although it could be with majority family ownership, and We use targeted capital gains tax better, it will make taxation simpler. make other reforms that help make cuts as an incentive for investment in It will promote growth. sure that young men and women can small businesses—the sector which pre- And it will make taxes lower. keep their family businesses in the sents the greatest risks and rewards, On the whole, it is a solid, careful, bi- family. and which creates the most new jobs. partisan bill. And we should be proud

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00044 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6713 of it. I congratulate the chairman for large part as a result of the deficit re- House and the congressional leader- his work, and I hope this bill will get duction package which President Clin- ship, again and again I was brought the Senate’s support. ton presented in 1993, and which this back to two stark conclusions. Mr. LEVIN. Mr. President, it is with Senate passed, without a single Repub- First, I was terribly disappointed disappointment that I oppose the rec- lican vote, by a margin of one vote, the that, once again, the Congress seemed onciliation bill before the Senate Vice President’s. We should not now, to lose sight of the original objective. today. I supported the budget agree- by passing a tax bill like the one before We started out on this budget track ment entered into by the congressional us, head back down the road toward a with the objective of putting in place a leadership and the President and I sup- new large future deficits. That is why, fiscal plan that would take us to a bal- ported the budget resolution passed by I supported the Dorgan amendment to anced budget in 5 years. We knew that, the Congress last month. Both of them sunset elements of the tax cut, if def- in order to do that, we would have to provided the broad parameters for a icit reduction targets were not being obtain economies in many important tax reduction package. I was hopeful at met, and that is another important Government services and programs on that time that the package of tax re- reason I cannot support this bill. which Americans in all walks of life de- ductions worked out by the Finance I know that the Senate is about to pend. Incongruously, somewhere along Committee would be targeted to assist pass this bill. I hope that the conferees, the way, the urge to take the easy way working families, particularly those the House and Senate leadership, and to political popularity took over, and with children. The package before us, the President will engage in future ne- the effort to develop the budget deal however, is too regressive. It does too gotiations which will result in a final and then the legislation to implement little to assist working families with product which is more equitable, which the budget deal was consumed by the education expenses, and it provides too does more to invest in our children passion of making huge tax cuts. At a large a tax break to those who need it through their education, and which time when we have agreed that the least, at the expense of those who need does not risk large deficits in the years route to a balanced budget is so painful it most. For that reason, I supported after the turn of the century. that we cannot accomplish that objec- the Democratic alternative offered by Mr. KERRY. Mr. President, if one tive in less than 5 years, those who de- Senator DASCHLE which would have looks back in our Nation’s history, one veloped the plan and the legislation in- provided a much larger proportion of cannot help but see numerous examples sisted that we cut taxes by $135 billion its benefits, more than half of the tax of both the great strengths and weak- in gross and $85 billion in net over that cut, to middle-income families, the nesses of representative democratic period. lowest 60 percent of wage earners. Un- government. Compared to other na- Mr. President, a student will not fortunately, that substitute for the tions and societies in the world, it is even be out of elementary school math- committee’s bill was defeated. more difficult for us to hide or camou- ematics before he or she has the capac- The legislation before us is out of flage our mistakes to a considerable ity to know that tax cuts of that mag- balance. More than 42 percent of the degree. If we look closely, we can iden- nitude represent movement in pre- benefits of its tax cut provisions go to tify indicators for which we in public cisely the opposite direction to the the top 10 percent of income earners. service should be watchful, lest we re- goal of obtaining a balanced budget By contrast the lowest 60 percent, mid- peat our errors. while not hurting our nation’s ability dle-income families and below, receive I fear we are repeating errors we have to meet its national needs. less than 14 percent of the benefits. In made in the past as the Senate passes I want to emphasize immediately my view this is not equitable. the Revenue Reconciliation Act of 1997, that I am not categorically opposed to The broad based capital gains tax and the intimately related budget rec- tax reductions. To the contrary, I favor cuts and the reductions in the estate onciliation Bill that passed earlier this targeted tax cuts of reasonable dimen- tax largely benefit those among us that week. sions designed not just to slash federal need it least. In contrast, I support the For all of us who are politicians and revenues but to achieve purposes that education tax cuts which the President who hold or seek elective office, it is are in the Nation’s interest. I was a has proposed, a $500 per child tax credit often difficult, Mr. President, to resist leader in Democratic efforts here on adequate to provide tax relief to mid- the temptation to play to the gallery— the Senate floor to pass a tax reduction dle-income families with children, and to do the popular thing. And there are package—a much fairer package than capital gains relief for homeowners. few things that get political juices the one presented to the Senate by the Also, I believe that, if consistent with flowing more readily than cutting Finance Committee and a package that deficit reduction goals arriving at a taxes. If one looks only skin deep, a tax identified clear national interest objec- balanced budget, that targeted capital cut of almost any kind looks appealing. tives and devoted its resources to gains relief for long-term investments After all, those who benefit will be meeting those objectives. I will have and an incremental approach to estate pleased to accept the benefit. And a tax more to say about that in a moment. tax relief should be used. cut does not directly take anything Second, I was terribly disappointed Mr. President, I am also deeply con- away from others. when I examined the specifics of the cerned that this bill may result in As is not infrequently the case, how- budget proposals to see the extent to large deficits in the years beyond this ever, an honest analysis must look be- which its benefits were skewed to those decade. In 1981, I opposed the Reagan yond that kind of ‘‘quick-and-dirty’’ in the highest income brackets. The tax cut because I was convinced that it first appearance. Tax policy has two past several years have been extremely would lead to huge deficits. We have dramatic effects on the Nation and its kind to the well-off in our Nation. paid dearly for the debt which resulted people. It inescapably is the deter- Those who already possessed a dis- from that legislation. Only now, 16 minant of the resources the Federal proportionate share of capability, cap- years later, do we finally have a real- Government will have to meet national ital, and opportunity have prospered istic opportunity to balance the budget needs, ranging from defending our na- mightily. Those who crafted this budg- once again. In 1992, the deficit in the tional security to preserving the envi- et package provided the greatest share Federal budget was $290 billion which ronment to ensuring health care is of its benefits to this privileged portion represented 4.7 percent of the gross do- available to those who need it to man- of our population. Those at the other mestic product. The most recent esti- aging our national parks and forests to end of the economic spectrum—those mate of the deficit for fiscal year 1997 deterring criminal acts and identi- who struggle the hardest to make ends is $67 billion, approximately eight- fying, pursuing, arresting, convicting, meet, and for whom life is far more of tenths of 1 percent of the gross domes- and incarcerating those who commit a challenge—would receive virtually tic product. crimes against society. nothing, or nothing at all, of its bene- Over the 5 years from 1993 to 1998, the Mr. President, when the Senate took fits. The word ‘‘unfair’’ is not suffi- deficit has been reduced by about $1 up the package of two bills produced by ciently stark to adequately describe trillion from the deficit for those 5 the Senate Finance Committee to im- the overall effect of this package. years projected at the time. This re- plement the so-called budget deal that For those of us who, over time, have markable progress has come about in had been negotiated by the White made the hard judicious, moderate,

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00045 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6714 CONGRESSIONAL RECORD — SENATE June 27, 1997 measured choices to bring the Federal core set of beliefs, is, in fact, Mr. Presi- ing member. They produced a tax bill budget into balance, there is tremen- dent, the essence of the American that is improved considerably from the dous disappointment in this outcome. dream and the foundation of what has gravely flawed piece of legislation When this budget process began this become the greatest contribution this passed by the House of Representa- year, I enthusiastically wanted to par- Nation has provided to the world’s so- tives. But, Mr. President, without addi- ticipate in the process and support its cial economic history—the growth of a tional improvements I cannot support outcome. I have long called for our po- vibrant middle class. it or its companion spending programs litical structure to demonstrate the Universal economic opportunity, reconciliation bill. fiscal discipline to balance the Federal sound fiscal policy based on equitable During the course of debate this budget, and have insisted that we do so distribution of benefits and assistance week, we attempted to shape the legis- in a way that is fair, and in a way that to those most in need—those are the lation so it would address more of the recognizes the Nation’s fundamental fundamentals of Democratic economic problems of more Americans, and needs and does not emasculate our policy. That is the goal of the program thereby become a fairer piece of legis- Government’s ability to address them. we put in place in 1993, and that is the lation, but time and again we were I and many others have worked ardu- end to which our fiscal policies are di- rebuffed by the Republican majority. ously to break the spiraling deficits rected. Franklin Roosevelt reminded us Some of my colleagues, who share which plagued our Nation for a decade of our commitment to expanding op- many of my concerns about the bill and to provide a solid economic foun- portunity when he said: ‘‘the spirit of and my judgment that, in its current dation for our Nation as we move into opportunity is the kind of spirit that form, it neither is fair nor will in the the 21st century. has led us as a nation—not as a small long run prove beneficial to our Na- We made a very important install- group but as a nation—to meet very tion, chose today to vote for the tax ment payment toward this goal in 1993, great problems.’’ bill, hoping devoutly that with the when Democrats in the Congress, with Mr. President, as Democrats, we be- President’s active involvement in the the leadership of President Clinton— lieve that deficit reduction is a means conference committee that will con- and without a single Republican vote to an end. We believe that tax breaks vene to resolve differences between the in either House—passed legislation are a means to an end. But, unlike the Senate-passed bill and the bill the that dramatically cut the deficit and Republicans, we do not subscribe to the House passed earlier, a better, fairer put us in striking range of where we callow notion that deficit reduction is bill will emerge and will come back to find ourselves today. I have long wait- an economic policy in and of itself or the Senate for its approval. But I be- ed for the day when the benefits of our that tax breaks are an end which jus- lieve that the product before us today hard work would be as obvious as they tify any means. We do not believe that is so flawed in such critical respects are today. In the four years since that cutting vital programs is a courageous that I could not vote for it in its cur- action in 1993, we have witnessed pros- or visionary act. We believe that cour- rent form. I join my colleagues who perity unprecedented in recent years. age lies in advancing economic oppor- hope for it to be improved in con- In five years, we cut the deficit from tunity: this requires wisdom, innova- ference committee. I want to be able to $290 billion to $67 billion. Interest rates tion, and conscience. It is chilling that vote for a bill that provides tax reduc- are subdued. We are seeing the lowest this dichotomy of political and eco- tions that will benefit Americans fair- unemployment and inflation rates and nomic philosophy remains as obviously ly, and will not concentrate its benefits the largest drop in poverty rates in a demarcated today as it was 100 years on those who least need them while to- generation. Consumer confidence has ago. Yesterday I re-read the cogent de- tally excluding those hard-working, shown the greatest improvement since scription by William Jennings Bryan of tax-paying Americans who most need the Eisenhower administation and the the two opposing ideas of government. the additional assistance. value of the stock market has doubled He separated the parties into those The Democratic alternative to the since 1993—the fastest growth since the who ‘‘legislate to make the well-to-do Finance Committee’s bill which I Second World War. prosperous and wait for their pros- joined the Democratic leader and other By enactment of the 1993 budget leg- perity to leak through on those below, Democratic Senators in offering yes- islation, Democrats proved that it is or those who legislate to make the terday was designed so that our edu- possible to take a fiscally responsible masses prosperous and ensuring that cation tax breaks, our capital gains course toward a balanced budget and their prosperity will find its way up and estate tax reductions and our child extend health care to children, provide through every class which rests upon credit corrected the basic inequity broader educational opportunities, en- them.’’ found in the Finance Committee pro- sure the future for our senior citizens, Mr. President, as a U.S. Senator, I posal: the flow of benefits chiefly to and safeguard our environment. This have an obligation to the constituents the wealthiest Americans. certainly is not a picture which is who elected me to represent their in- In the committee’s package, nearly without its problems, and we must ad- terests, to act on their behalf and to 43 percent of the breaks go to the dress those problems. But the overall present their views to this body. I can- wealthiest 10 percent of Americans— picture is a very appealing one, indeed. not turn away from the long history those who earn more than $120,000. In Even the possibility of the legislation which has shaped my core sense of fair- its plan, Mr. President, 60 percent of before us now—a conceptually balanced ness, my overarching insistence on hard-working poor and middle class budget with tax breaks—is testament making Government work for the com- Americans get only 12.7 percent of the to the application of Democratic ideals mon good and the needs of my con- tax breaks, while the richest 1 percent to fiscal policy. We have been success- stituents—all in order to satisfy the of Americans get 13 percent of the ben- ful because, since the Great Depres- parameters of a political deal. Mr. efits. Mr. President, in the Finance sion, our party has stuck by the funda- President, for that reason, I voted Committee proposal, the poorest 60 mental belief that sound economic and against the tax portion of the rec- percent get only as much in aggregate social policy go hand-in-glove, that our onciliation bill as I voted against the as the richest 1 percent. This is a new Nation is stronger when all Americans spending portion. standard of unfairness. This is anath- have equivalent economic opportunity. The problem, when distilled to its es- ema to the party of Jefferson and Jack- Thomas Jefferson taught us that ours sence, Mr. President, is that this legis- son and Truman and Roosevelt. is a n ation of the common man and en- lation, which has been called by some During the course of the debate, I shrined this belief in one of our most the Tax Fairness Act, would be better heard some of my colleagues on the treasured documents when he wrote of called the Tax Unfairness Act. other side of the aisle justify this the self-evident truth that all men are Mr. President, I have great admira- counterintuitive distribution by argu- created equal. Andrew Jackson echoed tion for the work of the Senator from ing that since the rich make the most this creed when he restated the party’s Delaware, Senator ROTH, who chairs money, the rich will necessarily ben- commitment to the ‘‘humble members the Finance Committee and my friend efit the most from a tax cut. But this of our society—the farmers, mechanics from New York, Senator MOYNIHAN, skewed distribution is not necessary. and laborers.’’ That commitment, that who serves as that committee’s rank- In our alternative, Democrats showed

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00046 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6715 that it is indeed possible to craft a tax governmental services. It is a looming Our plan would have cost $10 billion— package which is targeted to those who problem universally acknowledged. Yet it did not break the budget in the fu- need help and not lavish more on the instead of doing everything in our ture like the capital gains provision in rich. We designed tax breaks which are power to reduce its severity and to the Finance Committee plan. Mr. affordable and which meet a common- take gradual steps to resolve it, we are President, more than 90 percent of the sense and economic test of basic fair- considering and passing legislation cost of the Republican capital gains ness. that will dramatically increase its di- plan comes after 2002. To use computer In the Democratic alternative, the mensions, narrow the range of solu- terminology, Mr. President, this is a poorest 60 percent of Americans would tions, and complicate the task of ad- latent virus—it will emerge full blown have received 46 percent of the tax dressing it. That is not leadership, Mr. in later years to exact a terrible toll on cuts. These are the same Americans President. That is folly. those who at that point will have the who receive only 13 percent of the In the Democratic alternative tax responsbility for delivering essential breaks in the Finance Committee’s proposal, we attempted to reduce the services to Americans while operating plan. In the Finance Committee pro- capital gains taxes in a measured way. a balanced Federal budget. posal, middle class Americans—those In the past, broad capital gains tax Mr. President, while the Finance earning between $30,000 and $85,000—re- cuts have been used to spur economic Committee plan does a great deal to ceive a scant 30 percent of the benefits. growth when the economy was lagging. help wealthy Americans in its capital Under our plan, these middle class In the past, across-the-board capital gains and estate tax cuts, it does not Americans would have done twice as gains cuts have been used to encourage extend the same broad-based cuts to well: 57 percent of the benefits in our the movement of capital into invest- help hard-working middle class fami- plan go to hard-working, middle class ment that would create jobs because lies raising children. Our alternative Americans. unemployment was high. In the past, would have done more for precisely The Democratic alternative would broad capital gains tax cuts have those families who can use the help the have helped those who actually need a served as a shot of adrenaline for an most. And those are the families— tax break to raise a child, to go to col- ailing economic system. But today, young families with young children— lege, to start a business, to generate such emergency measures are neither who will be doing the most for our needed nor appropriate. high-wage 21st century jobs and to country in the future. Mr. President, as a question of funda- grow our economy. Our alternative was Today, Mr. President, I attempted to mental economics, there is no jus- based on principles which have guided correct this basic inequity by offering tification for broad capital gains tax our party for two centuries, and fol- an amendment which would have im- cuts at this time. There is no need to lowed the basic economic philosophy proved the bill by transforming the expend precious budget resources to re- which has served our Nation so well child tax credit so that it would be re- ward the wealthiest American families since 1993. fundable against payroll taxes paid by for the sale of art work or Persian rugs Another feature of the Finance Com- all working families. Most Americans or luxury goods they have held for a mittee’s plan troubles me immensely, pay more in payroll taxes than income and I believe it should trouble all generation. Again, Mr. President, I am not say- taxes. Income taxes have remained sta- Americans. According to the computa- ing that we cannot afford a capital ble for most Americans in the past 10 tions of the Joint Tax Committee and gains tax cut. For years, I have be- years while payroll taxes have in- other reputable projections, the cost of lieved that a targeted tax break can creased 17 percent. Allowing Americans the tax cut explodes in future years—it shape economic policy and can display to offset the credit against these pay- is a fiscal timebomb. In the first 5 economic vision. But, I ask, what is the roll taxes would have broadened its ap- years, the cost of these inequitable benefit to our economy if a wealthy plication to many additional American cuts is $85 billion. I believe we can af- American only has to pay 20 percent families—hard-working families at the ford a cut of that size and have stated instead of 28 percent on the gains he lower end of the economic spectrum. so publicly—if it is carefully struc- accrues from selling his yacht? Where This is in distinct contrast with the Fi- tured, usefully targeted to need and so- is the economic vision in that kind of nance Committee plan under which cial benefit, and fairly distributed. But, a Tax Code change? nearly 40 percent of America’s children Mr. President, in the second 5 years of Mr. President, there are ways to aim are excluded from the tax credit. Those the Finance Committee’s plan, the cost a capital gains tax cut—targeted, sen- 40 percent are the children of the poor- of these cuts will escalate to $250 bil- sible ways—to use taxation of capital est families in the Nation. lion. And, in the 10 years after that— to leverage growth and job creation in The judgment I reached on Wednes- when baby boomers will be retiring and those areas. That is a tax policy with day about the reconciliation bill that straining Medicare and Social Security vision, with a goal, with an economic applies to mandatory spending pro- coffers—the cost will be between $650 priority. The economic priority, Mr. grams was similar and related, Mr. to $700 billion. That is exactly the type President, is not an across-the-board President. It is painfully apparent that of fiscal irresponsibility we avoided in capital gains cut such as the one pre- we must take prudent, fair steps to re- our alternative. sented by the Finance Committee. strain the growth of some of our so- I was not here in 1981 when the Con- The priority is a targeted tax cut in called entitlement programs so that gress passed a large tax reduction bill, areas which could use the added eco- they do not rage out of control and Mr. President. But the entire time I nomic stimulus, such as emerging threaten our ability not only to meet have served here—since 1984—the Con- small businesses, or start-up compa- the needs they are designed to meet gress has struggled to deal with the nies, or parts of the inner cities and but the host of other critical national history-making deficits and resulting rural areas which could use the jobs. needs to which discretionary programs all-time-high national debt that re- That is what we Democrats included in are addressed. But the objective was sulted from that irresponsible tax cut. our tax proposal. And that is a policy lost in the stampede to provide a huge I cannot support legislation that, even which I have fought for—along with tax cut to upper-income Americans. if of a lesser magnitude as this bill the senior Senator from Arkansas, Sen- The spending programs reconciliation surely is, will have an out-years explo- ator BUMPERS and other Senators—for bill cut far more deeply into critical sive effect that will saddle Americans nearly a decade. Mr. President, our programs like Medicare and Medicaid in future years, and their elected rep- plan would have improved on a provi- than was required to achieve necessary resentatives, with a recurrence of the sion we passed in 1993 by allowing a 50- savings. And for what purpose? To pro- deficit and debt problems that have percent exclusion for capital gains on vide the cushion enabling Republicans beset us for nearly two decades. Most qualified small business stock held for to increase the size of the tax cut to destructively, this explosion will occur at least 5 years. Qualified small busi- the wealthy by scores of billions of dol- just as the baby boomers are reaching nesses under this proposal would be de- lars. retirement age and beginning to place fined as having $100 million in assets The worst part of this spending bill is an unprecedented demand on retire- and would be start-up, small, high- the increase in the Medicare eligibility ment and medical programs and other technology ventures. age from 65 to 67. This will cause the

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00047 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6716 CONGRESSIONAL RECORD — SENATE June 27, 1997 number of uninsured older Americans hospitals across this country that pro- if neither the taxpayer nor the tax- to increase substantially, moving the vide health care to our poorest citi- payer’s spouse has previously bene- United States even further away from zens. Although it may be necessary to fitted from the exclusion. the goal of universal health coverage. more effectively target these funds, Unfortunately, the very provisions For many seniors age 65 to 67, this will this funding has enabled hospitals to which are supposed to relieve home- make purchasing private health insur- continue their role as an institutional owners from taxation often prevent ance unaffordable—especially those safety net for those with no other ac- them from making the soundest finan- who have pre-existing conditions. Pri- cess to health care. cial decisions. Under current law, to vate policies cost seniors approxi- Mr. President, there unquestionably avoid being taxed, most people wait mately $6,000 a year, and more than are some sound provisions in these two until they are eligible for the one-time $10,000 if they have any pre-existing bills. There are provisions I strongly exclusion, or they make what may be conditions—if they are able to get in- support. But my job as the Senator imprudent decisions regarding the sale surance coverage at all. elected by the people of Massachusetts of their homes. Mr. President, raising the eligibility is to examine the overall effects of the For example, many families, after age is bad policy because most seniors legislation the Senate considers and to their children have moved out, would do not have access to employer-pro- determine if, on balance, it serves the like to sell their home and buy a less vided private health insurance now and interests of the Commonwealth and its expensive one. However, the rollover the problem is getting worse: according citizens, and the people across our provision means that they will have to to a recent Commonwealth Fund study, United States and their interests. pay taxes on the difference between the the number of retirees with health in- I would like to support a budget profit gained on the sale of their old surance from a previous employer de- package that will reach balance in 2002 home and the cost of their new home. creased from 44 percent in 1988 to 30 since I have long advocated such a As a result, these families often choose percent in 1994. step. I would like to support a bill that to buy more expensive homes or not to Although some argue that this in- achieves economies in mandatory sell their home at all. Mr. President, crease in the eligibility age is similar spending programs to put us on a path- that is not right. People should be able to the increase in the age for Social Se- way toward balance. I would like to to move when and where they want to, curity eligibility that is being phased support a tax bill that targets tax re- not when the tax code makes it finan- in, Social Security still provides early ductions to Americans who need them cially possible. retirement benefits at age 62. Medi- and that will help create jobs and ex- Under the legislation passed by the care, on the other hand, will not pro- tend our current situation of economic Finance Committee, taxpayers of any vide an option for health care coverage strength. I still hold out hope that I age could exclude gain on the sale of a for early retirees, many of whom have will be able to do so when these bills principal residence of up to $500,000 for not retired voluntarily. Finally, busi- return from conference committee. married couples filing a joint return, nesses correctly oppose this provision But, sadly, they did not pass that and up to $250,000 for single taxpayers. because they realize the huge cost it test as they came before the Senate for To be eligible, the taxpayer must have will impose upon them. Eighty major final passage, and I was constrained to owned and used the home as the prin- corporations and the National Associa- vote against them. cipal residence for at least two of the tion of Manufacturers recently wrote CAPITAL GAINS last 5 years prior to the sale. The ex- to the Senate to ask it not to raise the Mr. GRAHAM. Mr. President, this clusion will generally be available once eligibility age. tax legislation, as passed by the Senate every 2 years. I am also opposed to the $5 home Finance Committee, goes a long way This legislation will give our Na- health visit co-payment which was not toward assisting our Nation’s families. tion’s families more freedom in decid- part of the balanced budget agreement For example, reducing the capital ing where to live. This decision can be with the President. This co-payment gains tax rate from 28 percent to 20 based on family circumstances rather will primarily hurt elderly women who percent will stimulate savings and in- than on the Tax Code. The bill would need this help the most: over half of vestment. This increased investment also relieve nearly all families of the the group who would no longer be able will, in turn, foster economic growth. burdensome record-keeping require- to afford home health services are In particular, I would like to draw ments and constraints on decision women age 75 and older who have in- your attention to a provision that will making under current law. The impact comes below $15,000. I am also con- have considerable impact on our Na- on our Nation’s families will be tre- cerned that increasing the cost of home tion’s families: the capital gains exclu- mendous, and I look forward to the en- health visits is not cost-effective be- sion for homeowners who sell their pri- actment of this legislation. cause many poor seniors will be forced mary residence. Under current law, This bill will significantly impact into institutions at much greater pub- capital gains from the sale of principal our Nation’s families. It will promote lic cost than continuing to stay at residences is subject to taxation, with investment and boost long-term eco- home. two limited exceptions. First, under nomic growth. And a healthy economy I also oppose the Medical Savings Ac- the rollover provision, taxpayers can translates to increased opportunities counts [MSAs] provisions in the bill. rollover gains from the sale of a prin- for American families to secure their Although the number of MSA enrollees cipal residence into a new residence. future. Our Nation’s taxpayers work would be limited to 100,000, there is no They can then defer any capital gains hard to provide for their families. This reason to test MSAs beyond the study tax—but only if the purchase price of legislation is a chance for us to lend begun in the Kassebaum-Kennedy bill. the new home exceeds the adjusted them a helping hand in that task. We are spending $1.5 billion through sales price of the old one. And to re- I thank the Chair. that bill and at the very least we strict this even more, the new resi- Mr. BYRD. Mr. President, the halls should wait to see the results from dence must be purchased within 2 years of the Capitol have been filled recently that study before we authorize more of the sale of the first home. with cheers and rejoicings for the bal- demonstrations. A second exemption ties the capital anced-budget agreement reached be- I am also deeply concerned about the gains tax to age. At age 55, a taxpayer tween President Clinton and the Con- cuts in the Medicaid Program which is can exclude up to $125,000 of any accu- gressional leadership in May of this the bedrock health program for chil- mulated gain from the sale of a prin- year. We have been told time and time dren, disabled people, and poor seniors. cipal residence. And this is a one-time- again that balancing the budget is cru- The spending bill would cut $13.6 bil- only opportunity. Worse yet, even this cial to the future of our Nation and lion from the program, the bulk of is restricted. To qualify for the exclu- that enacting this budget agreement which comes from cutting payments to sion, the taxpayer must have owned will eliminate the Federal deficit. Well, hospitals that treat a large number of the residence and used it as a principal Mr. President, I find it interesting that uninsured patients. These payments, residence for at least 3 years during the the reconciliation legislation before called Disproportionate Share Hospital five years before the sale. Also, a tax- the Senate today has nothing to do [DSH] payments, are essential to many payer is eligible for the exclusion only with balancing the budget. Rather, S.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00048 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6717 949, the Revenue Reconciliation Act of Mr. President, as I stated in my re- about reducing the deficit. These mar- 1997, will bring us farther away from marks on the Budget Resolution ap- kets drove interest rates downward and our collective goal of balancing the proved last month, by including these consequently rewarded American tax- budget by reducing revenues some $76 tax cuts in this balanced-budget plan, payers with lower interest payments billion below what they would other- we are with one hand digging deeper on the federal debt, as well as lower in- wise be over the next five years. the very hole our other hand is trying terest payments for the purchase of a Mr. President, the Senate has al- so hard to fill. We should not rely on home, car, or an education. ready approved legislation this week to such ambidexterity to balance the Mr. President, even if I were con- balance the Federal budget. On budget. We should shelve all tax cuts vinced that we must cut taxes before Wednesday, June 25, the Senate ap- until after we firmly erase the budget balancing the budget, I would also hope proved S. 947, the Balanced Budget deficits that have so plagued our na- that any such proposal would not ex- Reconciliation Act of 1997. Despite its tion in recent years. Tax cuts were, plode revenue losses in the long term. deficiencies, that legislation provides after all, the primary culprit for the Unfortunately, S. 949 is flawed when for some $127 billion in deficit reduc- rapid escalation in the federal budget judged by this standard. As reported, tion over the next five years. These deficit in the 1980’s. It is all too easy to this legislation includes a significant savings, coupled with the $96 billion in enact tax cuts and save the pain for backloading of many of its tax cuts to discretionary savings provided in the later. We have done it before, and the mask their true cost. As such, while Budget Resolution, will likely produce lessons learned from that exercise the bill purports to reduce taxes by no a balanced budget in the next five should instruct us not to do it again. more than $85 billion over the next five years. While I had intended to support Mr. President, traditionally, one of years, I suspect that these tax cuts will passage of the first reconciliation bill, the most powerful arguments in favor cost considerably more in the out years I became deeply concerned about a pro- of tax cuts has been that they spur eco- than we are being led to believe. The vision in the bill emanating from the nomic growth. I do recognize that prop- Joint Committee on Taxation’s esti- Finance Committee that would raise erly constructed tax cuts can produce mates reveal that the annual cost of the eligibility age for Medicare from some positive economic results in cer- these tax cuts would more than double sixty-five to sixty-seven years. As re- tain circumstances. However, no mat- between the years 2002 and 2007—thus ported, the bill already included a pro- ter how strongly one believes that tax reducing federal revenues at the same vision to create a National Bipartisan cuts stimulate economic growth—and time our nation is preparing to face the Commission on the Future of Medicare there are some in this body who un- rising entitlement costs that will stem to study ways to preserve and protect equivocally adhere to the supply-side from the retirement of the so-called the Medicare program for future gen- dogma—there can be no sound argu- ‘‘Baby Boomers.’’ I defy anyone to ex- erations. If the bill thus created a com- ment made now that tax cuts are nec- plain to me the flawed logic inherent mission to study and propose rec- essary to boost the economy at this in this proposal. ommendations to protect Medicare in time. We are currently in our sixth Finally, Mr. President, let me ex- the future, why was the aforemen- consecutive year of economic growth, plain my views on the Democratic al- tioned increase in the eligibility age the stock market continues to reach ternative amendment that was offered included in this bill? Is that not why record high after record high, unem- by the distinguished Minority Leader. we are creating the commission in the first place? Mr. President, the impor- ployment has just dipped below five In looking at the Senator’s proposal, I tant and controversial issue of raising percent, and inflation has remained in saw that he had made a considerable the eligibility age for Medicare bene- check. Mr. President, such a perform- effort to ensure that these tax cuts are ficiaries should be decided by a na- ance hardly bolsters the case that tax more fairly distributed and that the tional debate—not in the opaque cloak- relief is necessary to inject new life cuts do not explode in the long term. ing of a reconciliation bill. Thus, be- into our economy. For this improvement, I applaud Sen- cause of my deep concerns about this If anything, Mr. President, our cur- ator DASCHLE and the other Members provision on both substantive and pro- rent economic situation should rein- who have worked on this proposal, cedural grounds—and my general frus- force the notion that reducing the def- which is, in this Senator’s opinion, an tration with the haste and confusion icit is more conducive to economic improvement over the pending legisla- with which the Senate was considering growth than cutting taxes. To illus- tion. However, I was unable to support the overall measure—I decided not to trate this point, let me remind all Sen- his amendment to this legislation be- support passage of the first reconcili- ators what actions have led to four cause it also provided for tax cuts prior ation bill. However, let me affirm that straight years of declining deficits and to balancing the budget—a notion that my vote against this measure in no to one of the healthiest American I cannot philosophically accept. I hope way reflects any unwillingness on my economies in the last thirty years. Ac- that my vote against this proposal is part to pass spending cuts to balance cording to the Congressional Budget not misconstrued as anything else but the budget. Office, the FY 1997 budget deficit will a determined, unyielding opposition to Mr. President, let me now turn back be approximately $67 billion, or less tax cuts at this time. to the pending matter, the Revenue than one percent of Gross Domestic In conclusion, Mr. President, despite Reconciliation Act of 1997. All Senators Product (GDP). Just five years ago, we my unequivocal opposition to this should be aware that, on the heels of were facing a budget deficit of $290 bil- pending reconciliation bill, I would approving a deficit-reduction plan to lion, or about 4.7 percent of GDP. This like to commend the members of the balance the budget, we are about to ap- considerable improvement in the fiscal majority and minority leadership, and prove subsequent legislation to weak- order of our nation did not occur by ac- the Budget and Finance Committees, en—and possibly undermine—that very cident. Rather, it can be traced di- who have been able to bridge the gap balanced-budget plan. I have not kept rectly to the passage in 1993 of the Om- between the White House and both par- secret my fervent opposition to this nibus Budget and Reconciliation Act ties in Congress to forge the budget foolish idea of cutting taxes while si- (OBRA–93) by the 103rd Congress and compromise that we have considered multaneously trying to balance the its subsequent signing by President this week. I know how difficult such budget. Doing so is simply so illogical Clinton. That legislation combined re- compromise can be to reach, and, more that a third-grade student, with just a sponsible spending cuts and revenue in- importantly, to sustain. Nevertheless, I pencil, paper, and a modest knowledge creases to begin the painful—but nec- would much prefer not to have seen of the fundamentals of mathematics, essary—process of eliminating the def- these tax cuts being debated at this would be sufficiently equipped to reach icit. There can be no doubt of the suc- time on the Senate floor. Such a debate the same conclusion that tax cuts and cess of OBRA–93 in bringing down the is akin to arguing with your mother on deficit reduction do not mix. I am con- deficit and stimulating economic whether or not you can eat dessert be- fident that such a student would growth. OBRA–93 achieved such posi- fore finishing your broccoli. We may choose, like this Senator chooses, not tive economic results not by cutting all want to eat the sweet and leave the to include such tax cuts in a plan to taxes, but rather by convincing finan- vegetable, but we should know better— balance the budget. cial markets that we were serious and our mothers would surely remind

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00049 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6718 CONGRESSIONAL RECORD — SENATE June 27, 1997 us so. I fear that the Senate will come But we had to craft both pieces of FINANCE—REVENUES—Continued to regret the action it takes on this legislation through compromise and legislation, though only the passage of consensus. If the American people un- Provision Comments/Violation time can be the final arbiter in this de- derstood everything we were up against Following provisions are from the Simplification section of S. 949 these last few weeks, they would be Sec. 1023 ...... Due date for furnishing information to partners of bate. large partnerships. Byrd rule (b)(1)(A): Produces no Mr. President, I yield the floor. amazed that we were able to do for change in outlays or revenues. Mr. LOTT. Mr. President, the vote them as much as we did. Sec. 1025 ...... Treatment of partnership items of individual retirement accounts. Byrd rule (b)(1)(A): Produces no change in we’re about to take will be one of the This is not the end of the story. We outlays or revenues. most important any of us will ever have one hurdle left, and that is the Sec. 1083 ...... Repeal of authority to disclose whether prospective juror has been audited. Byrd rule (b)(1)(A): Produces cast. highest of them all. no change in outlays or revenues. The decision before us is as impor- After passing this bill, we will go to Sec. 1084...... Clarification of statute of limitations. Byrd rule (b)(1)(A): Produces no change in outlays or reve- tant as our families and as large as the conference with the House. I will do all nues. American future. I can to make that conference quick Sec. 1109 ...... Adjustments for certain gifts made within three years and productive. of decedent’s death. Byrd rule (b)(1)(A): Produces no If this is not an historic moment, change in outlays or revenues. then it is as close to it as most of us Our hurdle—our challenge—will be to Sec. 1113 ...... Authority to waive requirement of United States trustee preserve the historic work of the Sen- for qualified domestic trusts. Byrd rule (b)(1)(A): will ever come. Produces no change in outlays or revenues. Several weeks ago, when we first ate and the House in the face of opposi- Sec. 1212 ...... Authority to cancel or credit export bonds without sub- reached the broad outlines of an agree- tion, and perhaps veto threats, from mission of records. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. ment with the President, I called it a the administration. Sec. 1213 ...... Repeal of required maintenance of records on premises victory, not for a party or a person, but On behalf of our entire Republican of distilled spirits plant. Byrd rule (b)(1)(A): Pro- duces no change in outlays or revenues. for the American people. leadership, and all Senators who will Sec. 1215 ...... Repeal of requirement for wholesale dealers in liquor We can reaffirm that today. We lis- be our conferees, I want to give this to post sign. Byrd rule (b)(1)(A): Produces no pledge to the American people: change in outlays or revenues. tened to the American people. We knew Sec. 1217 ...... Use of additional ameliorating material in certain what they wanted us to do. We will go the extra mile to advance wines. Byrd rule (b)(1)(A): Produces no change in this legislation that is so vital to you. outlays or revenues. And somehow, by the grace of God Sec. 1220 ...... Authority to allow drawback on exported beer without and the endurance of PETE DOMENICI We will do our utmost to work out dis- submission of records. Byrd rule (b)(1)(A): Produces agreements with the President. no change in outlays or revenues. and BILL ROTH, we did it. Sec. 1231 ...... Authority for IRS to grant exemptions from excise tax We set out to lower the tax burden on But by the same token, we will not registration requirements. Byrd rule (b)(1)(A): Pro- agree to any settlement that denies duces no change in outlays or revenues. the American people. We did so. In this Sec. 1232 ...... Repeal of expired provisions. Byrd rule (b)(1)(A): Pro- bill, more than 75 percent of the tax your tax cuts or turns them into the duces no change in outlays or revenues. breaks go to people with incomes under kind of tax fiddling that does nothing Sec. 1244 ...... Repeal of expired provisions. Byrd rule (b)(1)(A): Pro- to advance opportunity and job cre- duces no change in outlays or revenues. $75,000. Sec. 1252 ...... Redetermination of interest pursuant to motion. Byrd We set out to make the Tax Code ation. rule (b)(1)(A): Produces no change in outlays or rev- So as we prepare the conference re- enues. family-friendly. We did so. After far Sec. 1305 ...... Elimination of paperwork burdens on plans. Byrd rule too many years of talking about a tax port on these two bills, we will listen (b)(1)(A): Produces no change in outlays or reve- nues. credit for children, we’re finally ap- in good faith to anyone who speaks in good faith. Sec. 1307...... New technologies in retirement plans. Byrd rule proving one. In addition, we’re making (b)(1)(A): Produces no change in outlays or reve- We will share credit, take blame, and nues. it easier for families to save for the let others have the spotlight. But we costs of education. are not going to yield on matters of Mr. LOTT. Mr. President, the next On top of that, we’re expanding the principle. vote will be final passage. It will be the availability of IRA’s to virtually all With that in mind, Mr. President, I last vote of the week before the Senate homemakers in the country. And we’re urge the passage of the Taxpayers Re- adjourns today. I will file cloture on easing the death tax on family farms lief Act as the Senate’s Independence the motion on the DOD authorization and businesses. Day salute to the taxpayers of Amer- bill. That cloture vote will occur on This bill rides in tandem with the ica. Tuesday, July 8, at 2:15. That will be Balanced Budget Act the Senate passed BYRD RULE LIST the next vote. Senators that have 2 days ago. amendments to submit are urged to do That marks a turning point in the Mr. DOMENICI. Mr. President, pursu- so by Monday, July 7. way Congress deals with the entitle- ant to section 313(b)(1)(C) of the Con- gressional Budget Act, I submit a list Once again, I want to thank all the ment programs that have driven our on behalf of the Committee on the Senators for their cooperation. I think country to the depths of indebtedness. this has been a historic week. I appre- Even more important, it fulfills our Budget of the extraneous material in S. ciate the leadership from the chairman commitment to strengthen and pre- 949, the Revenue Reconciliation Act of of the committee and the ranking serve Medicare, not only for today’s 1997, as reported. There being no objection, the list was member. Thank you all very much. beneficiaries but for those who will de- ordered to be printed in the RECORD, as Mr. ROTH. Third reading. pend on that program in the years follows: The PRESIDING OFFICER. The ahead. question is on the engrossment and Taken together, what the Senate and FINANCE—REVENUES third reading of the bill. House have done this week gives the The bill was ordered to be engrossed American people the assurance of Provision Comments/Violation for a third reading and was read the something they have not had in three Senate third time. decades: a long-term balanced budget. Sec. 702 ...... Establishment of Intercity Passenger Rail Fund. Byrd Mr. ROTH. I ask unanimous consent That, of course, is more than an end rule (b)(1)(A): Produces no change in outlays or rev- enues. that the Senate proceed to the House in itself. It is the surest way to touch Sec. 704 ...... Deposit general revenue portion of highway motor fuels companion bill, H.R. 2014, and all after off a dynamic economic expansion that taxes into highway trust fund. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. the enacting clause be stricken, the will make the first years of the new Sec. 706 ...... Require study of feasibility of moving collection point text of the Senate amendment be in- century an opportunity decade. for distilled spirits excise tax. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. serted, which includes amendment 449 What we have done this week, and Sec. 708 ...... Codify BATF regulations on wine labeling. Byrd rule which was inadvertently dropped, the what we do today, is more than an ex- (b)(1)(A): Produces no change in outlays or reve- nues. bill be advanced to third reading, and ercise in bookkeeping. It is a commit- Sec. 731 ...... Delay penalties for failure to make payments through the Senate proceed to passage of H.R. ment of the heart to an America where EFTPS until after 6/30/98. Byrd rule (b)(1)(A): Pro- duces no change in outlays or revenues. 2014, as amended. every willing worker can find a good Sec. 769 ...... Combined employment tax reporting five-year dem- The PRESIDING OFFICER. Without job, where industry and thrift are re- onstration project for Montana. Byrd rule (b)(1)(A): Produces no change in outlays or revenues. objection, it is so ordered. warded, and where every family can as- Sec. 772 ...... Safety net for marginal oil and gas production when Mr. ROTH. I ask for the yeas and pire to a better life. crude oil reference price is below $14. Byrd rule nays. (b)(1)(A): Produces no change in outlays or reve- And yet, this is not a perfect bill. I nues. The PRESIDING OFFICER. Is there a wish we could have reduced taxes more, Sec. 777 ...... Modification to eligibility criteria for designation of fu- sufficient second? ture enterprise zones in Alaska or Hawaii. Byrd rule just as I wanted to reduce spending (b)(1)(A): Produces no change in outlays or reve- There is a sufficient second. more in the Balanced Budget Act. nues. The yeas and nays were ordered.

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00050 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY June 27, 1997 CONGRESSIONAL RECORD — SENATE S6719 The PRESIDING OFFICER. The The PRESIDING OFFICER. Without Particularly, Mr. President, among question is, Shall the bill pass? objection, it is so ordered. our professional staff, I would like to The yeas and nays have been ordered. Mr. ROTH. Mr. President, I would thank: Lindy Paull, Frank Polk, Mark The clerk will call the roll. like to express my sincere gratitude to Prater, Rosemary Becchi, Doug Fisher, The legislative clerk called the roll. my colleagues and good friends who Brig Gulya, Sam Olyck, Tom Roesser, Mr. FORD. I announce that the Sen- have been instrumental to the success- Joan Woodward, Ashley Miller, Mark ator from Hawaii [Mr. INOUYE] and the ful culmination of this important budg- Patterson, Nick Giordano, Patricia Senator from South Carolina [Mr. HOL- et reconciliation process. I am grati- McClanahan, Maury Passman, Bill LINGS] are necessarily absent. fied by the results. I think we have in- Fant, David Podoff, and also Ken Kies I further announce that, if present deed made history. We have passed a and his capable staff at Joint Tax. and voting, the Senator from Hawaii reconciliation package that balances These men and women, along with [Mr. INOUYE] would vote ‘‘aye.’’ the budget, while offering American the leadership of the members on the I further announce that, if present families their first real tax cut in 16 Finance Committee, share in the tre- and voting, the Senator from South years. mendous success, a success for which I Carolina [Mr. HOLLINGS] would vote I am happy to say that we have done give them my most sincere thanks and ‘‘no.’’ it in a bipartisan way. It never could a success, Mr. President, that will bless The result was announced—yeas 80, have happened, in my humble judg- the lives of all Americans. nays 18, as follows: ment, without the good will, coopera- Mr. MOYNIHAN addressed the Chair. [Rollcall Vote No. 160 Leg.] tion, and intelligence of the many The PRESIDING OFFICER. The Sen- YEAS—80 Members who have contributed to this ator from New York is recognized. Abraham Domenici McCain important piece of legislation. Mr. MOYNIHAN. Mr. President, it is Akaka Dorgan McConnell In the process, Mr. President, we characteristic of our revered chairman Allard Enzi Mikulski have made significant progress in our that he would spend this precious mo- Ashcroft Feinstein Moseley-Braun ongoing efforts to preserve and Baucus Frist Moynihan ment at the end of a triumphant legis- Bennett Gorton Murkowski strengthen the Medicare Program, a lative process thanking others. It is Biden Graham Murray program of critical importance to our the part of him that brings us together Bingaman Grassley Nickles senior citizens, and to give State gov- and brought us together to an extraor- Bond Gregg Reid ernments greater voice and authority Boxer Hagel Roberts dinary 80 to 18 vote. I would presume to Breaux Hatch in the administration of Medicaid. We Rockefeller speak for every member of the com- Brownback Hutchinson Roth have increased the ability of families Bryan Hutchison mittee, and certainly for the Demo- Santorum and individuals to save their money, to Burns Inhofe cratic members who have been unani- Sessions Campbell Jeffords become more self-reliant, and to invest Shelby mous on both of these measures in Chafee Johnson in the future of America. We have committee, and on the floor today, in Cleland Kempthorne Smith (NH) passed significant proposals to help our Smith (OR) expressing our profound appreciation Coats Kerrey youth and their families with their Cochran Kohl Snowe to him, our profound admiration, and Collins Kyl Specter education. And we have saved who our conviction that we will now go on Conrad Landrieu Stevens knows how many family small busi- to a successful conference and write Coverdell Lautenberg Thomas nesses and farms from extinction Thompson some history in our Nation this year. Craig Leahy wrought by death taxes. D’Amato Lieberman Thurmond We shall have a balanced budget. We We can go home during this Inde- Daschle Lott Torricelli shall have a health care program for DeWine Lugar Warner pendent Day recess with our heads held adults and children. And not least, we Dodd Mack Wyden high. We have done what our constitu- have had in fact 77 votes in favor of a NAYS—18 ents sent us here to do. As I said, we have accomplished these important ob- successful and permanent Amtrak pro- Bumpers Glenn Kerry gram in this country, a matter of par- Byrd Gramm Levin jectives in a bipartisan spirit. Durbin Grams Reed Mr. President, the Senate’s success of ticular concern to him, but both attrib- Faircloth Harkin Robb the last few days would not have been utable to him. And I thank him. Feingold Helms Sarbanes Again, I thank the Chair, and I yield Ford Kennedy Wellstone possible without the leadership and ex- ample of my distinguished colleague the floor. NOT VOTING—2 (At the request of Mr. DASCHLE, the and close friend, Senator MOYNIHAN. He Hollings Inouye is a scholar, a statesman and—perhaps, following statement was ordered to be The bill (H.R. 2014), as amended, was most important—a gentleman and printed in the RECORD.) ∑ passed, as follows: trusted friend. Mr. HOLLINGS. Mr. President, I rise [H.R. 2014, as amended and passed, I appreciate the other Members of today in opposition of S. 949, the Rev- can be found at the end of the Senate the Senate Finance Committee. It was enue Reconciliation Act of 1997. I was proceedings for today.] interesting to watch the process as the necessarily absent and unable to vote Mr. MOYNIHAN. Mr. President, I cooperative spirit on that committee on the final passage of the bill, but I move to reconsider the vote. worked to refine and build rather than would like my statement to be re- Mr. ROTH. I move to lay that motion denigrate and destroy. The cream in- corded in the RECORD. on the table. deed rose to the top through our days, There has been a great deal of con- The motion to lay on the table was weeks, even months of hearings, con- gratulations about how this is the first agreed to. ferences, meetings, and debates. I am major tax cut since the Kemp-Roth tax Mr. LOTT addressed the Chair. proud of every member and, if time cuts in 1981. I would like to remind ev- The PRESIDING OFFICER. The ma- permitted, I would give specific exam- eryone of the consequences of that par- jority leader is recognized. ples of how each one of them rose to ticular measure. Since 1981, our deficits ORDER FOR MORNING BUSINESS the challenge that has resulted in the have exploded, growing to as high as Mr. LOTT. Mr. President, I ask unan- success we produced today. $403 billion. Our national debt has imous consent that following the wrap- Mr. President, I would like to thank, soared from under $1 trillion in 1980 to up of the chairman and ranking mem- again, the many professional staff $5.4 trillion this year. The interest ber, there be a period for the trans- members whose work and expertise costs on this debt have skyrocketed action of morning business with Sen- made this possible. No one appreciates during that period from $74.8 billion to ators permitted to speak therein for up these men and women more than those $360 billion, representing spending of $1 to 5 minutes each. I know there are of us who watch their tireless efforts billion a day. This money does not go some Senators here wishing to speak. I and depend on their support. Our grati- to purchase any new bridges, roads, don’t know if the Senators have any tude to them as individuals, and for airports, or any other public good. In- wrap-up that they need to do from the their work, is perhaps best dem- stead, it is wasted on servicing this Finance Committee. But once that is onstrated by the incredible trust we debt. These interest payments, in es- done, we can continue on to the 5- place in their judgment and by the way sence, represent a mammoth tax on the minute order for morning business. we depend on their advice and support. American people which will continue

VerDate Mar 15 2010 22:28 Oct 24, 2013 Jkt 081600 PO 00000 Frm 00051 Fmt 0637 Sfmt 0634 E:\1997SENATE\S27JN7.REC S27JN7 mmaher on DSK5TPTVN1PROD with SOCIALSECURITY S6720 CONGRESSIONAL RECORD — SENATE June 27, 1997 to rise until we can get our fiscal house eration. In fact, fewer than one-third of this plan, families can contribute up to in order. all family-owned businesses survive the $2,000 a year to a special savings ac- Since 1993, we have made substantial transition from the first generation to count and not have to pay taxes on the progress toward reducing our deficit. the second. account’s earnings if they use the Despite the opposition of every Repub- Our tax policy should produce the money for qualified educational ex- lican in the Senate, we passed a tough very opposite result, and I am gratified panses, such as room, board, and tui- deficit reduction bill which included that a strong, bipartisan majority of tion. Along similar lines, the Finance unpopular tax increases and spending the Senate Finance Committee recog- Committee approved a proposal that cuts. The results have been clear. Our nized this problem and supported ac- allows families who have created Indi- deficit has fallen for 5 years in a row, tion to put us on the right track. Spe- vidual Retirement Accounts [IRA’s] to unemployment is at a 24 year low, in- cifically, S. 949 establishes a $1 million withdraw funds for post-secondary and flation is minimal, interest rates are exemption from Federal estate taxes graduate education without penalty. down, 12.1 million new jobs have been for closely-held family businesses, Second, the Committee’s bill allows created, and business investment is at thereby making it easier for parents to annual dedications of up to $2,500 for a post-war high. Yet, instead of build- pass their business along to their chil- interest paid on student loans. This ing on this progress, we have chosen to dren. My estate tax relief bill, S. 482, will help to soften the financial burden abandon ship and engage in the polit- contained the very same provision, and on students like the young woman in ical temptation of tax cuts. I commend the Finance Committee for my State who recently graduated from Mr. President, our Nation is experi- including it in their legislation which college with $18,000 in debt and who re- encing a period of prosperity, partially we just passed. turned to her home town in rural because we were courageous enough to The Finance Committee’s proposal Maine where high-paying jobs are sim- make the right choice in 1993 and begin will help to make real the dreams of ply not available. to reduce our deficit. We should stay those Americans who work long hours Finally, the Committee adopted a on this course until we truly balance to build a business so they can turn it permanent extension of the section 127 our books. Instead, this year’s budget over to their children. It will help indi- program, which allows employees who deal engages in the same old trickery viduals like the potato bag manufac- receive up to $5,250 in employer-pro- of back loaded tax cuts, borrowed trust turer in northern Maine who would ex- vided tuition assistance to exclude this funds, and unrealistic economic as- pand his business and hire more new assistance from their taxable income. sumptions. Rather than doing what is employees were it not for the money he We live in times of rapid change when right for the American people, we have has to invest in estate planning and in- workers may often need new skills to chosen to do what is right to get us surance. And it will help the small remain employable, and the section 127 past the next election. I fear, however, businesswoman in Portland, ME, who program can be the key to making this that the results of this measure will be wishes to leave her restaurant to her possible. felt long after then. ∑ son and avoid the problem she faced Taken together, these proposals rep- f when her father died and the family resent a major step forward in our ef- had to sell 24 of their 25 restaurants to forts to help lower-income and middle- MORNING BUSINESS pay the estate tax bill. income families finance higher edu- The PRESIDING OFFICER. Under Mr. President, by preserving family- cation for themselves and their chil- the previous order, the Speaker will owned enterprises, we not only dren. These changes will benefit not now be in a period for morning busi- strengthen American businesses, we only our students but also our Nation, ness. also strengthen American families. for a better educated population will be The Senator from Maine. Mr. President, I also want to com- better able to compete in our global f mend the Finance Committee for in- economy. By making education more cluding several very important provi- affordable for all, we also reaffirm that THE TAXPAYER RELIEF ACT OF sions that will help lower- and middle- America is the country of opportunity, 1997 income families finance college edu- where success is there for all who are Ms. COLLINS. Mr. President, I rise cations for their children. Many of the willing to work for it. today to commend the members of the provisions are similar to those in my Mr. President, let me conclude my Senate Finance Committee, ably led by legislation, the College Access and Af- remarks with the observation that S. chairman ROTH and ranking member fordability Act of 1997. 949 is notable not only for what it pro- MOYNIHAN, for their willingness to For the last 30 years, the Federal vides but also for how it was produced. work in a bipartisan fashion to bring Government has helped make post-sec- Led by their Chair, the members of the meaningful and much-needed tax relief ondary education available to millions Taxation Committee put aside partisan to the American people. of high school students, thereby giving concerns and crafted a bill which can The Taxpayer Relief Act of 1997 is ex- them a chance to fulfill their potential command widespread support both in tremely important legislation. While it to the greatest extent possible. The Congress and in the country. Despite makes many significant changes, I primary vehicles for this invaluable the rhetoric of those bent on sowing want to focus my remarks on the pro- Federal assistance to lower-income and the seeds of division, the legislation visions that will provide long-overdue middle-income families have been the benefits all Americans, as reflected in estate tax relief for family-owned busi- Pell grant and student loan programs, the fact that a family of four earning nesses and farms and on those that will both of which I wholeheartedly sup- $30,000 will receive a 53 percent tax cut help lower- and moderate-income fami- port. under the plan. lies put their children through college. But our student aid programs have Mr. President, the people of my State The first bill I sponsored as a U.S. had the unintended consequence of want results and not rhetoric, coopera- Senator was targeted death tax relief punishing those families who struggle tion and not confrontation. The Fam- for family-owned businesses and farms. to save for their children’s education ily Tax Relief Act of 1997 shows what This was no accident, for I firmly be- and then become ineligible for Federal we can accomplish when we honor the lieve that small, family-owned enter- assistance because of their savings. To wishes of those who sent us here. prises hold the key to our economic fu- its credit, the Finance Committee rec- Mr. BUMPERS addressed the Chair. ture. It is these family businesses that ognized that with the greatly increased The PRESIDING OFFICER. The Sen- will create two-thirds of all new jobs cost of a college education, these fami- ator from Arkansas. for the people of the United States in lies also are deserving of help, and it f the 21st century. took several important steps in that Regrettably, our current tax code pe- direction. TAX CUTS FOR COLLEGE nalizes family-owned businesses by First, the bill that we just passed EDUCATION making it difficult, if not impossible in also establishes education investment Mr. BUMPERS. Mr. President, let me some cases, for families to pass the accounts to help families save for their say first of all that in the Senate in business down from generation to gen- children’s college education. Under 1981 there were only 11 votes cast

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