17820 CONGRESSIONAL RECORD-SENATE July 28, 1986 SENATE-Monday, July 28, 1986 The Senate met at 12 noon and was ously, we can use the time or yield it work that out with the minority called to order by the President pro back. I hope we will not take 12 hours. leader. tempore CMr. THURMOND]. This is Monday, July 28, and it is Mr. BYRD. Mr. President, if the dis still our intention to meet the August tinguished majority leader will yield, PRAYER 15 recess deadline, as previously an with respect to the schedule, the prob The Chaplain, the Reverend Rich nounced. I do not know how to state lem immediately, as I see it, is in the ard C. Halverson, D.D., offered the fol it-I do not want to appear to be fact that we have before the Senate lowing prayer: threatening-but we do have a lot of the debt limit extension; but we have Let us pray. work to do, to say it as honestly as I as an amendment to that debt limit • • •let us love one another: for love can. There is a lot of work to do, and extension, or a series of amendments is of God; and everyone that loveth is many Members have amendments to thereto, the proposed changes in the born of God and knoweth God. He that the debt ceiling bill. We hear that Gramm-Rudman legislation. Nobody loveth not knoweth not God; for God is there may be an amendment with re can call up any other amendment to love.-I John 4:7-8. spect to South Africa; there will be the debt limit extension unless con Father God, whose love is uncondi Contra aid; maybe a SALT resolution sent can be gotten that the Gramm tional, universal, infinite, and eternal of some kind. All those matters would Rudman amendments be set aside we thank You for loving us. Thank take a considerable length of time. temporarily. You for love which is unequivocal, cer There is also some hope that we can So there we are-we are stuck. Those tain, and dependable. Help us to com work out an agreement, as I said who are the principals in working out prehend the profound reality that before-sort of a tripartite agree some changes in the Gramm-Rudman there is nothing we can do to make ment-involving SALT, South Africa, legislation do not want those amend You love us more than You do-and and Contra aid, whereby we could ments set aside for the time being. there is nothing we can do to make have a certain amount of time set It seems to me that unless those You love us less than You do. Thank aside for each of those issues. If we amendments can be set aside tempo You for the perfect peace, perfect ac can do that prior to the recess, that rarily, the Senate is not going to be ceptance, perfect security we enjoy in will be fine with me. able to consider any other amend Your love. Forgive us, patient Father, In addition, we have the Gramm ments to the debt limit legislation for our indifference to Your love-our Rudman "fix." I understand that some until final action on those amend rejection-our failure to reciprocate. agreement may have been reached be ments is gotten. This would appear to Help us to love You and one another tween Senator DoMENICI with Sena me to preclude any other action prior and, in so doing, fulfill the royal law tors RUDMAN, GRAMM, and HOLLINGS to, say, Wednesday of this week at for the honor of Your name. Amen. on their amendment to the debt ceil best, because tomorrow will be utilized ing. If that is the case, maybe we can in the debate on TV coverage of move more rapidly on that. Senate debates and deliberations. RECOGNITION OF THE So there are a number of very criti I certainly would support the distin MAJORITY LEADER cal matters we need to resolve before guished majority leader in pressing for The PRESIDENT pro tempore. The August 15. action on Fridays and Mondays now. able and distinguished majority Having said that, I know the phone We are within only 3 weeks of the leader, Senator ROBERT DoLE, is recog will be ringing-"What about Friday?" Labor Day recess as previously sched nized. I can only tell my colleagues on both uled, and so Mondays and Fridays Mr. DOLE. I thank the distin sides that I expect that we will be here cannot be excluded if the Senate is to guished Presiding Officer, Senator on Friday. We might be here on Satur deal with the major amendments and THURMOND, the President pro tempore. day, because we have this weekend issues that need to be called up. and next weekend, and we will be out I hope that the distinguished major the following Friday until September ity leader will call up the DOD author SCHEDULE 8, if everything goes as planned. So I ization bill. Senator NUNN, who is the Mr. DOLE. Mr. President, under the just cannot tell anyone at this time. ranking minority member on the standing order, the leaders have 10 But I want to at least hold out, not a Armed Services Committee, is ready to minutes each. Then we will have spe threat, but the possibility, in the real proceed to debate that measure and cial orders for Senators PRESSLER, world, that unless something starts to actually is urging that the measure be PROXMIRE, and LEvIN for not to exceed happen fairly soon, we could be here called up. 5 minutes each. late several nights this week and could I believe that if we cannot get action Then there will be routine morning be here part of the weekend. soon on the Gramm-Rudman legisla business, not to extend beyond 1 I also indicate that we have made tion, at least the Senate could begin o'clock. good progress on the Executive Calen its debate on the DOD authorization if After that, we will resume consider dar. I think we can probably clear up the distinguished majority leader ation of House Joint Resolution 668, all but a couple of those nominees this would see fit to bring up that legisla the debt limit extension. week. tion because it does need to be dealt We also may be asked to turn to the There are two treaties dealing with with. It needs to be dealt with prior to consideration of TV in the Senate, Denmark. I understand that the dis the action on the military construc pursuant to the provisions of Senate tinguished Senator from Ohio CMr. tion appropriation bill, and it seems to Resolution 28, in order to use up some METZENBAUM] may have a problem me that if the Senate is going to be of the 12 hours of debate allotted to with those. He was trying to reach me stymied on the . Gramm-Rudman the resolution, if it is going to take 12 on Friday, and we missed each other. amendment to limit legislation, at hours. In visiting with Senators MA We will do the best we can to accom least we could be spending our time THIAS and FORD, I think their recom modate Members. I know that some well in debating the DOD authoriza mendation is that the Rules Commit Members will be necessarily absent to tion bill, and I would hope that the tee will not take much time. So, obvi- morrow for some time, and we can distinguished majority leader would
e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. July 28, 1986 CONGRESSIONAL RECORD-SENATE 17821 give some consideration to scheduling tinued detention. And we can only In short, the Sandinistas have aban that bill soon. hope that the freeing of Father Jenco doned their own revolution, sup Barring that, I would hope that the is the signal for the imminent return pressed their own people and are in distinguished majority leader would of all the hostages now being held in the process of irretrievably wrecking see if something could be done to set Lebanon. their own country. That is the real aside the Gramm-Rudman roadblock Mr. President, I also want to join record-and that ought to be the real so that Senators can call up other President Reagan in acknowledging issue-in Nicaragua. amendments to the debt limit legisla the help of the Syrian Government in SANDINISTAS HELLBENT ON AGGRESSION AND tion. the safe transport of Father Jenco to SUPPRESSION I thank the distinguished majority American authorities in Damascus. We have given the Sandinistas every leader for considering these sugges And I urge that the Syrian Govern chance to do what they ought to do tions. ment use all its good offices to help to live up to their own promises-in Mr. DOLE. I thank the distin with the release of the remaining hos their country, and in the region. They guished minority leader and I think so tages. far there has not been much holding have turned a "deaf ear"-to us, to the up. I do not disagree with what the mi OAS, to the Contadora process, and to nority leader has just indicated. THE RETURN OF COMRADE the pleas of their own people. They If they cannot resolve this Gramm ORTEGA remain hellbent on the course of ag gression and suppression, and have ar Rudman matter, then I am going to ORTEGA IN NEW YORK make an effort to set it aside and go rogantly boasted that nothing will Mr. DOLE. Mr. President, once turn them around. on to something else. again the head of the Sandinista As I understand, we announced regime in Nicaragua, Daniel Ortega, is CONTRA AID BARRIER TO SANDINISTA PLANS there would be no votes today. Either visiting our shores, to use the platform Well, there is one way that they can today or tomorrow we will discuss TV of the United Nations to attack our be stopped-by providing assistance to in the Senate. So they are really not country, and our policy in Central those Nicaraguan elements who holding up anything right now. America. And, as usual, he is here to remain true to the "Sandino-inspired" I understand that Senators CHILES make certain he gets plenty of air time revolution; who remain willing to fight and DoMENrcr will be talking, and they to make the Sandinista case to the and die for freedom; who remain de may be able to reach some agreement. U.S. public. termined to win their country back So we are making a little progress, Unfortunately for Mr. Ortega, the from Moscow's control, and Ortega's perhaps we did lose about a day, we do reality in Nicaragua speaks much policies. not want to lose any more. I hope we louder, and more eloquently, than he I do not know if Ortega paid much might speed them up. does. And the reality is that the Sandi attention to the sermon he heard in Mr. BYRD. Mr. President, I thank nistas are in the process of construct New 'York, but I do know that we in the distinguished majority leader. ing a totalitarian, Marxist system; that the Senate will soon have the opportu (Mr. GRASSLEY assumed the they will try to crush any political nity to send him a message he cannot chair.) force and anyone that stands in their ignore. We will vote I hope and I hope way; and, meanwhile, that the econo very soon on providing assistance to my of the ·country is in near collapse. the Contras. And I am confident that we will vote, as we have before, to pro RELEASE OF THE REVEREND THE SORRY RECORD LAWRENCE MARTIN JENCO vide that assistance. I hope we will What has happened in Nicaragua have that opportunity. Mr. DOLE. Mr. President, today is a since Ortega's last visit to New York? Ortega and his Marxist cronies are a day of thanksgiving for the family and The economy has virtually collapsed, determined bunch. But we are deter friends of Rev. Lawrence Martin leaving the vast majority of Nicara mined, too. Determined to give Nicara Jenco, who was released this weekend guans mired in misery, and leaving the gua a new chance for eventual peace, after 19 months of captivity in Leba country dependent on Soviet hand for real democracy, for the hope of non. outs. The Sandinistas have scuttled economic and social progress. We join the Jenco family in their joy the most recent and hopeful round of Mr. President, I would again urge and relief over the safe return of talks in the Contadora process, con my colleagues to reach some agree Father Jenco. From current reports, it founding their sympathizers in this ment. There has been some threat or appears the reverend is in fairly good country. at least talk of a filibuster. I hope that shape-enjoying his reunion with They have invaded Honduras, happi is not the case. This is an issue the loved ones in Weisbaden, West Germa ly without achieving any of the goals Senate decided favorably earlier this ny. of that military operation. They have year. It would seem to me it is another But at the same time we rejoice in accelerated their military buildup in matter that should be taken up and Father Jenco's release, we must re Nicaragua, and the Soviet presence decided in the affirmative again. member the plight of the four remain there continues to grow and grow ing American hostages taken by the Soviet pilots now fly aerial reconnais Moslem extremist group, the Islamic sance missions around the country. RECOGNITION OF THE Jihad; William Buckley, Terry A. An And the Sandinistas have launched MINORITY LEADER derson; David P. Jacobsen; and yet another harsh crackdown on the Thomas M. Sutherland. In addition to internal democratic opposition: La The PRESIDING OFFICER. Under these Americans, the Islamic Jihad is Prensa, the last free voice in Nicara the previous order, we will now recog holding six Frenchmen, two Britons, gua, has been shut down, and Bishop nize the Democratic leader. an Irishman, and an Italian hostage. Vega has been exiled, for the crime of According to this morning's press re speaking out on behalf of liberty. ports, Father Jenco was kept in And I might say, as an aside here, THE RELEASE OF FATHER chains, in solitary confinement for 6 that the U.S. media would get a lot JENCO months. This inhumane treatment of more realistic idea of Daniel Ortega's Mr. BYRD. Mr. President, I associ innocent individuals, caught up in an feelings about religion and Christiani ate myself with the remarks of the dis external situation which they had no ty by talking to Bishop Vega, than by tinguished leader anent the release of role in, is reprehensible. They should following Ortega around to his care Father Jenco, and also I wish to share all be released immediately. There is fully constructed "photo ops" at the hope that the other hostages will no excuse, no rationale for their con- Sunday services in New York. be released soon. 17822 CONGRESSIONAL RECORD-SENATE July 28, 1986 MEDICAL AND LIFE INSURANCE education available at Groton and Secretary of State for Far Eastern Af BENEFITS FOR RETffiEES Yale. fairs, and as U.S. negotiator at the Mr. BYRD. Mr. President, before Following graduation from college, Vietnam Peace Conference in Paris. the distinguished majority leader Averell Harriman became a vice presi Certainly, Averell Harriman was a leaves the floor, I wonder if he would dent of the Union Pacific Railroad and public servant without peer, and all consider having the second reading of founded his own banking firm. He ap Americans owe him a irredeemable S. 2690 which is on the Calendar of peared destined to continue the course debt of gratitude for the outstanding Bills and Joint Resolutions, read the chartered by his father. By 1931, Aver contributions that he made through first time so that the objection can be ell Harriman was already a partner in out an incomparable career. made to further proceeding, and that the newly merged firm of Brown Bros., I know also that all of our colleagues measure can then go on the calendar Harriman, as well as being chairman and millions of Americans join me in without our having to wait until the of the board of the Union Pacific Rail extending to Mrs. Harriman and to road. For most men, such achieve other members of Governor Harri close of morning business. ments would have been unsurpassable Mr. DOLE. We can do that. career pinnacles. man's family our sincerest regrets at Mr. BYRD. Mr. President, I thank But Averell Harriman was customed the loss that they have suffered in the the distinguished majority leader. from his own pattern, and his poten passing of this unquestionably great The· PRESIDING OFFICER. The tial outstripped the confines of Wall American. May Governor Harriman's clerk will read the bill. Street. loved ones and friends be assured that The assistant legislative clerk read An active Democrat since 1928, Har he will ever be remembered in the as follows: riman served under President Franklin pages of American history and revered A bill CS. 2690), to prohibit certain compa Roosevelt as an administrator in the in the hearts of the American people. nies who have filed for ba,nkruptcy from dis National Recovery Administration and continuing medical and life insurance bene as a member and then Chairman of fits to retirees. the U.S. Department of Commerce's WILLIAM AVERELL HARRIMAN, Mr. DOLE. Mr. President, I object. Business Advisory Council in the 1891-1986 The PRESIDING OFFICER. Objec midthirties. Then in the spring of ·Mr. DOLE. Mr. President, on Satur tion is heard. The bill will be placed on 1941, President Roosevelt sent Mr. day one of this century's major figures the calendar. Harriman to England to expedite the in American foreign policy passed Lend-Lease Program to Britain. There, away at his home in Yorktown Averell Harriman developed a good Heights, NY. EXTENSION OF RECONCILIA working relationship with Prime Min TION DEADLINE-CORRECTION When William Averell Harriman ister Winston Churchill, and he under died this weekend at 94 years of age, Mr. DOLE. Mr. President, will the took important missions to Moscow we were all reminded of just how long minority leader yield just for one brief with Lord Beaverbrook in 1941 and this distinguished American had reconciliation deadline correction? with Churchill himself in 1942. served our country. During war and Mr. BYRD. Yes. In October 1943, President Roosevelt peace, he was an Ambassador, a Cabi Mr. DOLE. Mr. President, the CON appointed Mr. Harriman to be U.S. net Secretary, a Governor, a special GRESSIONAL RECORD for last Friday Ambassador to the Soviet Union, and envoy and an arms control negotiator shows the extended deadline for com he remained in that position into 1946. mittees to submit reconciliation lan to name just a few of the important As Ambassador to our wartime Soviet positions he held during his decades of guage to the Budget Committee as allies, Averell Harriman was present at Thursday, July 29, 1986. The day public service. Even at 91, duty called the important conferences at Quebec, and so Ambassador Harriman traveled should be Tuesday, July 29, 1986. I Cairo, Teheran, Yalta, San Francisco, therefore ask unanimous consent that and Potsdam. Ever the circumspect to Moscow in 1983 to meet with Soviet Senate committees have until 6 p.m. diplomat, he was nonetheless a realist, leader Yuri Andropov. Tuesday, July 29, 1986, to submit their advising Presidents Roosevelt and This unselfish devotion says much recommendations to the Senate Truman to keep a correct posture vis about the man who could have chosen Budget Committee pursuant to section a-vis the Soviets, while warning a far easier way to earn a living. After 2 of Senate Concurrent Resolution against overly optimistic postwar all, his family fortune made it such 120. hopes for Eastern Europe, and coun that he would never have to worry The PRESIDING OFFICER. With seling a firm and unsentimental atti about income. But his country's call out objection, it is so ordered. tude toward the Soviet Union at the meant more to him than the life of Mr. DOLE. I thank the minority bargaining table. ease that could have been his. leader. In March 1946, President Truman Mr. President, while Ambassador Mr. BYRD. Mr. President, I thank returned Mr. Harriman to the Court Harriman and I certainly didn't see the able majority leader. of St. James, but in October of that eye-to-eye on every issue, this Senator year called him back to Washington as would like to pay his respects to a re his Secretary of Commerce. In 1948, markable man who dedicated his life W. AVERELL HARRIMAN, 1891- President Truman sent him again to public service. I am certain my col 1986 across the Atlantic as his special repre leagues will join me in expressing the Mr. BYRD. Mr. President, history's sentative to coordinate the European sympathies of this body to the Harri spotlight is selective, and falls custom Recovery Program. Subsequently, man family as we remember William arily on the heads of the crowned and Averell Harriman served President Averell Harriman. anointed. But in an exclusive arena, Truman in o~her capacities until Janu few men in any age have played as ary 1953. prominent a role in so many historic Though twice an unsuccessful candi AFGHANISTAN-SOVIET dramas as did W. Averell Harriman. date for the Democratic Party's Presi WITHDRAWAL High-born but not to the purple, dential nomination, Averell Harriman Mr. BYRD. Mr. President, the Governor Harriman was the son of served in an elected office, winning Soviet Union has announced its inten- railroad tycoon and financier E.H. the New York Governorship in 1954. tion to withdraw some 5,000 Soviet Harriman. As the heir to one of Amer The Kennedy-Johnson years found troops from Afghanistan. As is often ica's great industrial entrepreneurs, Governor Harriman again in the inter the case with Soviet policy toward Governor Harriman was reared in national field, serving variously as an that sad country, this seems part of privilege and afforded the best formal Ambassador-at-Large, an Assistant the continuing effort to get the big- July 28, 1986 CONGRESSIONAL RECORD-SENATE 17823 gest public relations return on the fications merely informed speculation mittee members were incensed at the poten smallest possible gesture. or do they really reflect an existing tial security breach; they say it shows that Soviet troop rotations occur all the top secret aircraft! / so much information about Stealth already On July 11, an Air Force plane has come out that Pentagon's nontalk time, so this announcement is hardly policy no longer makes sense. newsworthy. There are between crashed in a mountainous area of Cali- "As far as the security system on this 120,000 and 150,000 Soviet soldiers in fornia, tragically killing its pilot, Maj. goes, it's like the old Gertrude Stein quote Afghanistan or close to the Afghan Ross E. Mulhare. The crash site was 'there's no there, there,' " Wyden said ye..; border. The removal of 5,000 troops is immediately cordoned off, declared a terday. "The fact is Cthe Stealth secur ty insignificant when up to 30 times that national security area and civilian system] is absurdly easy to penetrate." number are engaged in the systematic overflights were prohibited. The crash The Stealth model drives home the point, destruction of the Afghan people ignited a brush fire which took fire- he said. men, women, and children. fighters 16 hours to extinguish. The Since the model first hit the market at · f" ht t 11 d th the end of June, sales have been booming. If the Soviet Union is really serious f ire 1g ers were no a owe near e About 100,000 Stealth kits have been or- about getting out of Afghanistan, it immediate crash site and they were re- dered by toy stores already-three times should present a plan for prompt with quired to sign forms agreeing not to more than a typical new model plane. drawal at the U.N.-sponsored negotia discuss what they had seen at the site. "You've got a little bit of mystery about tions meetings that will resume on There has been a great deal of specu- it-and that makes it exciting," said Steve July 30, 1986. lation in the press that the plane that Kass, Testor's national field sales manager. When I led a senatorial delegation to crashed was indeed an F-19 Stealth "In terms of units sold, this will be the Moscow last September, we told Gen fighter. It seems tragically ironic that number one selling kit this year." eral Secretary Gorbachev when we while all this elaborate security was But Kass said the model gives away no se involved at the crash site, a model crets that haven't already been published in met with him that inasmuch as he has a flood of trade press stories. Stealth air the power to end the war in Afghani which may reflect the actual aircraft craft are designed to escape detection by stan, all he needs to do, Mr. President, is on sale in hobby stores across the enemy radar. But the model doesn't reveal is to remove Soviet troops. Not 5,000, country. the aircraft's insides, which, according to not 50,000-but all Soviet forces. I am Investigations into Lockheed's possi- Kass, is where the real Stealth secrets are. hopeful that we and the rest of the ble mismanagement of classified docu- Moreover, he added, none of the missing world will awaken to that story some ments are now being conducted by the Lockheed documents were used in designing day in the future, but I am sorry to Pentagon, the General Accounting the model. say that I am not too sanguine that we Office, and the House Energy and "We're all patriotic, loyal citizens here,'' Commerce Committee's Subcommittee Kass said. "Everything we got, you can get will be awakening to such a story. out of any library." Mr. President, how much time do I on Oversight and Investigation. I be- According to some experts, that is quite a have remaining? lieve that at the very least the Senate bit. Bill Sweetman, author of a book on The PRESIDING OFFICER. The Armed Services Committee and possi- Stealth aircraft, says the model "in size and Senator has 4 minutes remaining on bly the Senate Intelligence Committee proportion and quite possibly in overall plan hi.$ time. should look into whether there is any ... is pretty accurate." Mr. BYRD. I thank the Chair. relation between the Testo:..· Co.'s The model also contains a number of de source material and Lockheed Corp.'s tails about Stealth technology that the De missing classified documents. fense Department never has publicly dis- LOCKHEED'S POSSIBLE MISMAN cussed. AGEMENT OF CLASSIFIED DOC Mr. President, I ask unanimous con- On the side of the model's box is an "F-19 UMENTS sent that an article from the Washing- Stealth Fighter Profile." It states that real ton Post of July 26, entitled "Stealth's Stealth jets "operate from remote, top Mr. BYRD. Mr. President, last Fri Appearance in Toy Stores Is Not Kid- secret airbases," use laser technology to day's Washington Post contained a stuff, Lawmakers Say," be inserted in guide Maverick missiles, and include folding disturbing article concerning what ap the RECORD at this point. outer wing panels so they can be transport- pears to be gross mismanagement on There being no objection, the article ed inside Lockheed C-5 Galaxy airplanes. When asked to comment about the model the part of the Lockheed Corp. in its was ordered to be printed in the yesterday, Pentagon spokeswoman Jan Bo- handling of classified defense docu RECORD, as follows: danyi refused. "I have nothing to say about ments. The Lockheed Corp. is unable [From the Washington Post, July 26, 19861 this alleged Stealth fighter," she said. "I to account for at least 11 top secret STEALTH'S APPEARANCE IN TOY STORES Is NOT can't even say there is such a thing." documents which reportedly deal with Km's STUFF, LAWMAKERs SAY Mr. BYRD. Mr. President, I yield the Air Force F-19 Stealth fighter. This information comes within weeks 71-059 Q-87-46 (Pt. 12) 17824 CONGRESSIONAL RECORD-SENATE July 28, 1986 Washington newspaper has a particu in more than 5 years, the administra no agreement. The Soviets know it. larly emphatic influence on the Na tion has made no progress in negotiat But to argue as the Post has that this tion's policies in any event. Those of ing even the hint of the treaty. It is is a good month for arms control in us who are elected to serve our coun worse-much worse. The administra view of the arms control wreckage left try here in Washington derive much tion has gutted every arms control in the wake of the first 5112 years of of our news from the Washington treaty painstakingly negotiated by this administration is like hailing the media, just because it is conveniently pa.st administrations. Just look at the resurrection of the Titanic 70 years available. Those of us who serve in the score. It has renounced the solemn after it sank, as a successful rescue. Senate, of course, owe our first alle and explicit promise embodied in two giance to our home State. But the treaties signed by U.S. Presidents, one local Washington press covers the of which has been ratified. Both of A TRIBUTE TO A BRILLIANT news of what is going on in the town those treaties promised to negotiate a CONGRESSMAN, DAVID OBEY where we, perforce, as a matter of comprehensive test ban treaty. . OF WISCONSIN duty, spend more than half our time. So how about it? Will the adminis Mr. PROXMIRE. Mr. President, in So both its location and its general ex tration try to negotiate such a treaty? an article in the Sunday, July 27, cellence give it a strong and sometimes "No way," says the administration. Washington Post, Richard Bolling a decisive influence. Here is an administration that has pays tribute to a Wisconsin Member of I say all this, Mr. President, because made its No. 1 military priority a star the House of Representatives that this on Wednesday, July 23, the Post car wars system that would expressly re Senator cannot ignore. Richard Boll ried an editorial with which this Sena pudiate the anti-ballistic-missile arms ing served for 34 years in the House. tor must virgorously disagree. The edi control treaty. It has pronounced No Member of the House was more torial was headlined: "A Good Month SALT II dead and cold in its grave. So widely respected than Dick Bolling for for Arms Control." The thrust of the what significant arms control treaty is editorial is that the arms control deal left? Answer: Nothing. his intelligence and his blunt, tell-it "coming into view would involve deep And yet the Washington Post calls like-it-is honesty. The Post article pro cuts in offensive arms and agreed re this month a good month for arms vides Dick Bolling's advice on how not straints on the development and de control. Why is it good? Oh, sure, the to run for Speaker. Bolling was a lead ployment of defensive arms." And why President has toned down his rhetoric ing candidate for Speaker of the is such a deal possible? Because, about the evil empire. He has said the House in 1977. Here is what Bolling argued the Post President Reagan Soviets are serious about arms control. writes about DAVID OBEY. OBEY is the "unveiled his plan for a missile de He has had his negotiating team at Representative in the House of Sev fense in space." Geneva for more than a year and a enth District of Wisconsin-that is Now, come on, fellas, that "missile half. He has announced that he is for most of northern Wisconsin. Now defense in space" proposal by Presi arms control just as he has announced listen to Bolling: dent Reagan constitutes a direct that he is against apartheid in South The finest legislator on the Democratic side of the House, in integrity, long experi attack on the Anti-Ballistic Missile Africa. But on arms control, as on ence, intuition and knowledge, is Dave Obey arms control treaty. The ABM treaty South Africa, the administration has of Wisconsin. Many members say he cannot was ratified 89 to 2 by the Senate. It been free with the rhetoric and the be elected to the House leadership because had a single, simple purpose: To stop procedure. But they have struck out, of his temper or his temperament. I don't any attempt to deploy a comprehen and they have not budged an inch on believe this because every now and then the sive shield against offensive arms. the substance. majority of Democrats break their pattern Those of us who voted to ratify that The Post reports that Secretary and support the best legislator they have treaty considered it a vital step toward Weinberger is lamenting the possibili available. They did with Rayburn, I suppose nuclear peace. Why? Because a star ty the administration may trade a star to their continuing amazement. wars defense would, if successful, de wars delay for an offensive nuclear Mr. President, I bring this vignette stroy the credibility of the adversary's missile reduction. Maybe, just maybe a from the typewriter of Richard Boll deterrent. So what would be the reac deal may purport to stall star wars. So ing to the attention of my colleagues tion of the adversary? The adversary it will not advance beyond laboratory here in the Senate because it is true. would go all-out to build an offensive research for 5 or 7 years. What kind of This is not just provincial hype. arsenal that could overwhelm, spook, deal is that? Former Congressman Bolling came evade, underfly, deceive, or somehow Mr. President, there is every reason not from Wisconsin, but from Missou penetrate the star wars defense. Virtu to believe that with budget restraints ri. ally any technological advances that what they are and star wars showing might improve the star wars defense such feeble promise, Congress will not such as super lasers or sensors could fund star wars research at a rate that MYTH OF THE DAY: ENVIRON be readily used by the adversary to could possibly advance star wars MENTAL PROTECTION LAWS overcome star wars. beyond the research stage in less than HARM PRODUCTIVITY AND Star wars has only three handicaps: 7 years, with or without an agreement REDUCE EMPLOYMENT First, it will not work; second, it would with the Soviets. And what is the re Mr. PROXMIRE. Mr. President, one cost $1 trillion, and third, a paranoid ported proposal that is said to give Mr. of the most persistent myths about misapprehension by the adversary Weinberger such fits, and advance America's environmental laws is that that it might work would kick off an arms control so impressively? It is a 5- they act as a brake on our economy, immense buildup in offensive arms to to 7-year proposed delay in any star eliminating jobs and decreasing pro overcome it. wars advance beyond the research lab ductivity. Now comes an administration with a oratories. If the Soviets buy this pro Aside from their obvious benefits for perfect 100-percent record of opposing posal, it will mean they have wised up public health and the quality of life, any and all arms control treaties. It on the emptiness of the star wars environmental laws have other, less has done this at a time when Marshall threat. It will mean the Soviets are noticed side effects. Shulman, the head of Advanced Insti willing to reduce their offensive nucle According to a recent study by Man tute for the Study of the Soviet Union ar arsenal because they know it is ex agement Information Services [MISIJ, at Columbia University, says that in cessive in a world in which star wars a Washington, DC, consulting firm, the 40 years he has been studying the will fail. over the pa.st 15 years annual spending Soviet Union, he has never seen a time This is a transparent minuet. Star by the pollution abatement and con when the Soviets are more willing to wars will not get out of the laboratory trol industry grew from $18 billion to negotiate an end to the arms race. But in 7 years in any event, agreement or almost $70 billion. In just 1 year, 1985, July 28, 1986 CONGRESSIONAL RECORD-SENATE 17825 this industry invested $8.5 billion and ognized that-while he still allows for lings target by as much as $20 to $25 created 167,000 new jobs. the consideration of the conference billion in the next fiscal year. MISI based its study on Department report, it no longer is highlighted as a Twenty to twenty-five billion dollars. of Commerce and trade association piece of legislation which must be If we depend on a sequester order to data. According to the report, entitled passed before the August recess. fill that gap, every program, every "Economic and Employment Benefits That, I think, does more than recog project, every activity-except for of Investments in Environmental Pro nize what reality is. In my book, it rec specified protected programs-wo·.ild tection," "whether they realize it or ognizes what reality ought to be. The have to be slashed by around 10 i .er not, many workers would be umem plain truth is that even if we could, we cent. ployed today were it not for invest should not consider this conference Few people want to see that happen. ments in the pollution abatement and report until after we return from the It is not a rational or just or equitable control business." recess. or fair or reasonable way to meet the The companies created ranged from D 1240 targets we must reach. But it is what manufacturers of smokestack emission we will do-indeed it is what we should control equipment to laboratories There are two reasons to wait. The do given the massive danger the deficit which test for chemical contamina first is a traditional and valid concern: poses-if we do not develop a more bal tion. Both the Congress and the country anced program for meeting our deficit As for productivity, regulations will need some time to study the de goals. which forbid companies from dis tails of the report. Even a month and a half after the Senate bill took form, A balanced budget program must, of charging liquid and solid waste often course, include a series of targeted result in the installation of new, more we are still discovering new items in it and debating the different implica spending cuts. But it should also re productive processes. Instead of being strict the degree to which we must discharged, pollutants become valua tions which flow from it. We ought to take time to look at how issues like depend on cuts by increasing revenues ble resources which get recycled, as well. saving on input costs. IRA's and State sales taxes and medi cal expenses and retroactivity and cap Neither the House nor the Senate Other industries such as breweries tax reform bill makes a meaningful depend on clean water or air for their ital gains and all the rest are resolved by the conference report. And I know contribution to that goal. Neither bill processes and locate in regions where looks at tax policy as a part of the they are abundant. Tourism, too, de it will take some time to do an analysis of the conference report to determine budgetary process. Both deny us addi pends on a healthy environment for tional revenues because they accept, its survival. if it involves-as the Senate bill did possible tax increases for one-fourth as a premise, the notion of revenue This is one myth that deserves de neutrality. While revenue neutrality bunking. to one-third of all middle-income Americans. So we need some time to may make some sense in terms of tax Mr. President, I suggest the absence policy, it makes no sense at all if of a quorum. study the legislation which emerges from the conference committee. viewed from the perspective of our I withhold that, Mr. President. I over-riding economic and budget yield the floor. But we ought not rush to judgment for a second reason: this tax bill is needs. being shaped in a unique economic en Now, Mr. President, I am a realist. If RECOGNITION OF SENATOR vironment. Some significant fiscal a revenue neutral tax bill came before LEVIN streams-spending and revenues-are us today, it would be adopted-just as The PRESIDING OFFICER. Under flowing into a budgetary ocean right it was last month in the Senate and the previous order, the Senator from now. last year, in the House. We would Michigan, Mr. LEvm, is recognized for In terms of the deficit, we have adopt it even though we understand, a period not to exceed 5 minutes. made an irrevocable commitment in in some intellectual way, that revenue Mr. LEVIN. Mr. President, I thank Gramm-Rudman-Hollings: we will neutrality is inconsistent with fiscal the Chair and I thank my friend from reduce it. We can fulfill that commit responsibility. But if we consider the Wisconsin. ment by decreasing spending, by in tax bill at the same time that we are creasing revenues or by a combination forced to face a $25 billion sequester of the two. Clearly the choice we make order-and we probably will face such TIMETABLE ON THE TAX BILL about how to reduce the deficit an order in September-well, then the Mr. LEVIN. Mr. President, we all should, to a degree, be dependent on situation may be different. It will not know that once the conventional the size of the deficit. After all, it is just be an intellectual problem. It will wisdom is established, it resists one thing to depend on just spending be an emotional and a political prob change. So it is not surprising that, de restraint if you need to get $5 billion lem of the first order. And, as a result, spite growing signs to the contrary, to meet your deficit goals; it is quite we may take the opportunity to review some people still predict that some another thing to place the entire our priorities, reexamine our options, how the conference committee on the burden of meeting deficit goals on and revisit the concept of tax reform. tax bill will reach agreement and, spending alone if you need to get $25 In that environment we might do when that happens, the Congress can billion. what we should do: impose a tough pass it-all before August 15-and, as Well, we are about to find out just minimum tax, tighten up tax loop that prediction goes, the President will how many billions we will need to get. holes and apply most of those reve sign it by Labor Day. On August 15, a deficit snapshot will nues to deficit reduction rather than Now, Mr. President, that just should be taken. But it can take up to 15 days using them to fund uneven tax cuts. not happen. In pragmatic terms, the to be fully developed. It just makes no We would no longer be operating in conference committee, while working sense to take final action on the tax a vacuum of uncertainty regarding the quickly, is not about to reach a hasty bill before the deficit picture is clear. precise size of our deficit-reduction re decision. The bills before it are both If we do, we may find-much to our quest. The chemistry would totally profound and complex. As the events regret-that the final budgetary pic change. over the weekend suggest, producing a ture is badly out of focus. And that, Mr. President, is why a consistent and coherent piece of legis Let me give you an example. Current conference report on the tax bill lation will not be easy. If an agree rumor indicates that even under the even if it were available-should not ment is reached in August, it probably terms of the budget we adopted and be considered until we return in Sep will not be reached much before the even with the reconciliation bill, we tember. And that is why this Senator 15th. Senator DoLE has implicitly rec- may miss the Gramm-Rudman-Ho!- is encouraged by the fact that the tax 17826 CONGRESSIONAL RECORD-SENATE July 28, 1986 bill is no longer specifically identified MATTIE SHARPLESS: MAKING GOVERNMENT 71--059 0-87-47 (Pt. 12) 17840 CONGRESSIONAL RECORD-SENATE July 28, 1986 ommendations back to the President that was offered by the distinguished not going to get anything done on and Congress. Senator from Nebaska, until those Gramm-Rudman-Hollings II, whatever The safety of air passengers is too roadblocks can be set-aside either by it is called, sometime tomorrow. The important to avoid, in my judgment, a unanimous consent or by action there delaying actions continue. close look at this agency now after on, no one can offer any other amend I would simply say once again, Mr. these years. ment to that measure. President, that as I understand it, I certainly do not speak with any We spent a good many hours last these legal scholars of ours are off the disrespect toward the agency or the week, some days-one or more certain floor somewhere in the room negotiat Administrator. I think that Mrs. Dole, ly-with those measures before the ing or attempting to negotiate some the Secretary of the Department of Senate. kind of language that would collect Transportation, is one of the most The principal parties who are trying enough votes in the U.S. Senate to able Secretaries that I have seen of to work out some legislative modifica pass this newest concoction that is any Department since I have been in tions to the Gramm-Rudman Act do known as Gramm-Rudman-Hollings II. Washington. I know that Mrs. Dole not want those amendments set-aside. As I understand it, what they are has certainly inaugurated various So, here we are, doing virtually little trying to do since they do not trust steps that are calculated to promote or nothing on the debt limit legisla OMB, they are trying to put some safety of air travel in this country, and tion. fencing language of some kind around I am sure that the FAA is also trying Of course, I am not saying there is to do a better job in enforcing safety the bill that is passed, something that not some progress being made by says and directs OMB that if this bill regulations and requirements. those principles who are attempting to passes, they will treat such and such But that is not to say that the develop some modifications of the leg and such a fashion, with regard to ar agency could not stand some close islation. Certainly, there must be some scrutiny, and in view of the precipi riving at the automatic sequestered progress, but insofar as the whole cuts if indeed that responsibility tous and tremendous increase in the Senate is concerned, we are just sort number of airlines, major and com would eventually fall to OMB under of spinning our wheels. their latest triggering proposals. muter, and the number of aircraft I thank the Senator for his consist that are flying in this country follow ent efforts to press ahead and, hope If that is the case, Mr. President, ing the deregulation of the airlines, I fully, before many days he may be and I believe that is what the delay ·is think it is a very timely and needful more successful. all about, last Thursday, a key action that is called for by the legisla Mr. President, I yield the floor. member of Gramm-Rudman-Hollings' tion. Mr. EXON. Mr. President, I thank latest proposal indicated to this Sena It is supported by the able chairman the minority leader. tor that he thought probably yet on of the Aviation Subcommittee of the Thursday night and within the next Commerce Committee in the Senate, hour and a half or so, that language Senator KASSEBAUM. Also, it is cospon GRAMM-RUDMAN would be agreed to. As I understood it, sored by the equally able ranking mi MODIFICATION and I have not been privy to what nority member of that Aviation Sub Mr. EXON. I wonder if anyone on their discussions are, but I understand committee, Mr. ExoN, the distin the Senate floor is in a position to that indeed the chairman of the guished Senator from Nebraska. advise me as to what the plans are for Budget Committee and the ranking I appeared before the subcommittee continuation of the Gramm-Rudman minority member thereof are involved recently and both Senator KASSEBAUM Hollings debacle that we find our in this process. and Senator ExoN and other Senators selves in now from a parliamentary sit As I undertstand it, they are trying on that subcommittee showed their uation. to come up with some kind of lan enthusiastic interest in the legislation, I believe, and I ask the Chair if this guage that would keep a rein on, or their great concern about the need for is true, that on tomorrow, we will be fence off, some things that OMB could an objective study such as that pro- setting aside by previous agreement and could not do with regard to the se posed. . . the matter before us to go to another quester order. I thank Mr. EXON for his support of matter, that is on Tuesday; is that cor That concerns me very much. It that legislation and cosponsorship of rect? should concern every Member of this it. He is a powerful Senator. He is in a The PRESIDING OFFICER. The body and every person in the United very strategic position anent that leg Senator is correct. States if they are seriously concerned islation. His expressed concerns are Mr. . EXON. Could the Chair advise about getting on with the business of certainly equal to mine. I feel better, the Senator from Nebraska, what hour reducing the Federal deficit before we having introduced the legislation, to do we go on this other matter, what is leave here again August 15 next and know that it has his support, and I the other matter that we have agreed then come back for a fairly brief ses know that subcommittee will carefully to take up in lieu of the Gramm sion sometime after Labor Day. consider it and report it, I believe, to Rudman issue, and is there a time I warn once again, Mr. President, the full committee soon, hopefully, agreement on that particular meas something that I think is being essen and I hope that the full Senate and ure? tially ignored in this body and to a the other body will shortly act favor The PRESIDING OFFICER. One large extent by the press. If they go ably on the legislation and then the hour after the Senate convenes and ahead and fashion some kind of a President may then proceed to ap there is no time limit, 12 hours of fence or a lasso that they are going to point the Com.mission. debate. throw over certain parts of the budget Again, I thank the distinguished Mr. EXON. Do I understand the that Congress would have the right to Senator from Nebraska and also com Chair that 1 hour after we come in on jerk back if OMB decides to sequester pliment him on his efforts to get Tuesday, we will go to this other or cut that part of the budget, then I action on the debt limit bill. matter and then there is a limit of 12 would suggest that those legal schol With respect to Gramm-Rudman, hours? ars take a very close look at page 7 of the amendments that are before the The PRESIDING OFFICER. The the Supreme Court decision, Bowsher Senate at this time certainly are road- Senator is correct. versus Synar, which I quote again that blocks to any other amendments. Until Mr. EXON. I thank the Chair. says, "The Constitution does not con such time as they can be set-aside, to It seems to me that makes it pretty template an active role for Congress in gether with the Gramm-Rudman clear that we are not going to get any the supervision of officers charged amendments to the motion to recom thing done on Gramm-Rudman today with the execution of the laws that mit and report back with instructions because of the blocking action. We are it"-it being Congress-"enacts." July 28, 1986 CONGRESSIONAL RECORD-SENATE 17841 Mr. President, I simply want to warn amendment, which I would remind the Mr. President, I take this opportuni again and again and again, many Senate once again has to do with a ty to extend my sincerest sympathy to Members with the best of intentions, sense-of-the-Senate resolution merely Representative O'Brien's family, his it seems to me, are going down that voting up or down as to why we should many friends, and his constituents slippery slope once again of allowing not go ahead with the fallback provi back in Illinois. this whole important deficit matter to sion and, therefore and thereby, essen slide once again and be held up by a tially set aside the proposition of possible action in the Supreme Court. going through the excessive fixing MESSAGES FROM THE And I am very fearful that if they do mechanism that at least this Senator PRESIDENT what they are contemplating on doing, has been debating for several hours Messages from the President of the and I guess that is one of the reasons now over the last few days. United States were communicated to that it has taken as long as it has to I do not intend to propound that re the Senate by Mr. Saunders, one of his try and work something out, maybe quest immediately unless I hear some secretaries. the word is getting through that they suggestion that I should because, as are fearful that they will botch up the far as I can see with my eyes, there is mechanism once again. And botching no Senator presently present that EXECUTIVE MESSAGES up the mechanism is not necessary, as would be able to object, if an objection REFERRED I have said over and over and over is in order, save possibly my distin As in executive session, the Presid again, because if the original authors guished friend, the occupant of the ing Officer laid before the Senate mes of Gramm-Rudman-Hollings were cor chair. And whether or not he cares to sages from the President of the United rect-and the Supreme Court has indi do that, I know not. I simply say, as a States submitting sundry nominations cated that they were correct-in matter of courtesy to my colleagues, I which were referred to the appropri coming forth with a backup provision will not make that request at least at ate committees. which the Court specifically referred this moment but very shortly. District for ~he fiscal year ending Septem breviation for the words "Japan" and "Japa Communist countries; to the ~ommittee on ber 30, 1987, and for other purposes; nese"; to the Committee on Labor and Banking, Housing, and Urban Affairs. H.R. 5177. An act making appropriations Human Resources. , EC-3520. A, communication from the for Agriculture, Rural Development, and Chairman of the Board of Governors o1 the Related Agencies -for the fiscal year ending 1 Federal Reserve _System, transmitting, pur September 30, 1987, and for other purpbses; MEASURES·PLACED ON Tl{E~<. suant o law, the Monetary Policy Report, H.R. 5223. An act to permit the removal of · ·CALENDAR dated .Tuly 18, 1986; to the Committee on certain material from the Mount Rushmore Batiking, Housing, and Urban Affairi. • b ;:, National Memorial; and ·- The folfuwing bill was read the H.J. Res. 547. Joint re olution to designate second time, and placed on the calen EC-3521. 'A conutmnication from tne::Sec. October 1986 .as "Polish American Month." dar: retary of the Interior, transmitbing, pursu ant to.law, notice of a leasing systen):lfor the The message also. announced that S. 2690. A bill to prohibit certain compa westerp. Gulf of Mexico; to the Committee th~ H~use :has agreed to the following nies who have filed for bankruptcy from dis on Energy and Natural Resource .- · continuing medical and life insurance bene concurrent resolution, in which it re fits to retirees. EC-3522. A communication froi;n the quests the concurrence of the Senate: Chairman of the National Research Coun H. Con. Res. 290. A concurrent resolution The Committee on Armed Services cil, transmitting, pursuant to law~ a report to recognize "Jpn." as the appropriate ab was discharged · from the further con entitled "T°\(rin Trailer Trucks: Effects on breviation for the worcls-"Japan'" and "Japa- sideration of the following bill; which Highways and Highway Safety"; to the nese." · was placed on the calendar': ' Committee on Environment and Public Works. ENROLLED BILLS AND JOINT RESOLUTION SIGNED S. 1793. A bill to amend the Public Health Service Actrto establish a grant program to EC-3523. A communication from the Ad At 12:51 p.m.,< a message from the mil).istrator of Peneral Serv ces, transmit House of Representatives, delivered by develop improved systems' of caring for med ical teclmology dependent children in the ting, pursuant to law, an amended lease pro Mr. Berry.none of its reading clerks, home, and for other purposes. spectus to acquire space in Washington, DC; announced that the · Speaker has to the Committee on Environment and signed the following enrolled bills and r Public Works. . joipt resolution: EXECUTIVE AND OTHER ' ,... EC-3524. A communication from the H.R. 1406. An act to authorize appropria COMMUNICATIONS Deputy Chief for ':Programs, Soils Conserva tion Service, Department of Agriculture tions for nongame fish and wildlife conser The following ·communications were vation during fiscal years 1986, 1987, and transmitting, pursuant to ·law, the water: 1988; laid before the Senate, together with shed plan and environmental impact state H.R. 2991. ·An act forcthe relief of Betsy L. accompanying papers, reports, and ment for the North Deer Creek Watershed, Randall; and. documents, which were referred as in Oklahoma; to the Committee on Environ H.J. Res. 623. Joint resolution to author dicated: ment and Public Works. ize the designation of a calendar , week in EC-3513. A communication from the EC-3525. A communication from the Ad 1986 and 1987 as National Infection Control Deputy Secretary of Agriculture, transmit n:tinistrator of General Services, transmit Week. ting a draft of proposed legislation to tmg, pursuant to law, a report on the cost of The enrolled bills and joint resolu amend the Federal Crop Insurance Act· to travel to Government employees while en tion were subsequently signed by the the Committee on Agricu~ture, Nutritlon, gaged on official business; to the Committee and Forestry. on Governmental Affairs. Presid~nt pro tempore [Mr. THUR EC-3514. A communication from the Sec EC-3526. A communication from the Sec MOND]. retary of Agriculture, transmitting, pu su retary of the Postal Rate Commission ant to law, the annual report on agricultural transmitting, pursuant to law. notice of th~ MEASURES REFERRED trade consultations for 1985; to the Commit postponement of a scheduled hearing until tee on Agriculture, Nutrition, and Forestry. further notice; to the Committee on Gov The following bills and joint resolu EC-3515. A communication from the ernmental Affairs. tion were read the first and second Deputy Chief for Programs. Soil Conserva EC-3527. A communication from the times by unanimous consent, and re tion Service, Department of Agriculture, Chairman of the Federal Maritime Commis f erred as indicated: transmitting, pursuant to law, a watershed sion, transmitting, pursuant to law, the plan. and environmental impact statement annual report of the Commission under the H.R. 4782. An act to designate the United Government in the Sunshine Act for calen StJLtes Post Office Building, being construct for the Big Creek-Hurricane Creek Water shed, Missouri; to the Committee on Agri dar year 1985; to the Committee on Govern ed in La Place, LA, as the "Gillis W. Long mental Affairs. Post Office Building"; to the Committee on culture, Nutrition, and Forestry. Governmental Affairs. EC-3516. A communication from the EC-3528. A comrµuajcation from the H.R. 4852. An act to designate the United Deputy Chief for Programs. Soils Conserva Chairman of the Council of the District. of States Post Office -to be constructed in ,tion Service, Department of Agricultm:e. Columbia, transmitting, pursuant to law Barnwell, SC. as the "Solomon Blatt, Sr. transmitting, pursuant to law. a watei:shed copies of D.C. Act 6-188 adopted by th~ Post Office Building"; to the Committee on plan and environmental impact statement Council on July 8, 1986; to the Committee Governmental Affairs. for the .South Fork watershed, Kansas; to on Governmental Affairs. ( H.R. 5175. An act making appropriations the Committee on Agriculture. Nutrition, EC-3529. A communication from the for the government of the District of Co and '.Forestry. Chairman of the Council of the District of lumbia and other activities chargeable in EC-3517·. A communication from the Columbia, transmitting, pursuant to law whole or in part against the revenues of said Acting Deputy Assistant Secretary of the copies of D.C. Act 6-189 adopted by th~ District for the fiscal year ending Septem Air Force FISCAL YEAR 1986,~UPPORTING DETAIL FOR CBO 'WEEKLY centiv& to ·use tax shelters to reduce Mr. Bell, then a otal unknown, upset vet - SCOREKEEPING REPORT, U.S. SENATE, 99TH CONGRESS, the amount of -income subjectr to tax eran Sen. Clifford Case in the GOP pri ~, mary, and gave Mr. Bradley a surprisingly 20 StSSION, AS OF JULY 25, ~ 1986-Continued also decreases. ''"' · · · For instance, in Minnesota a 50-pe_r: good fight. He did so by la.ying out the ~[In millions of dollars] simple premise that high marginal tax rates cent , F.ederal rate and a 14-percent were merely an ideological "fig leaf" to State _ate create a combined top tax Budget Outlays Revenues cover up huge t_ax loopholes. These loop • authority rate for . individuals of 57 percent, holes, which reduced the actual tax rates which ·provides a ~ strong incentive to paid by the rich, were granted by members IV. Conference a~reemenfs 18 16 shelter income with ~ ihvestnients de of Congress in return for ·political contribu- -ratified by bot Houses: 1 Panama Canal Commis· signed- for tax purposes. Assuming a tions. ' - v si<>n Authorizing Act 38-percent top rate as proposed in ,the The. main purpose and effect of those (H.R. 4409 ). high m~rginal rat~s -was not. to hurt the V. Entitlement authority and House ,tax bill, the cqmpined State anq other mandatory items rich, but to get more revepues ~mt of big~er requiring further appro- Federal rate in Minnesota would be 46 rates on the middle- and lower-income it prialion action: percent, _still.a strong, incentive to sl}el groqpS, who enjoyed fewer loopholes . ... , Compact of free as- ter. With a maximum Federal rate. of Thus, those high marginal rates were a ~, · sociation. Special benefits T4 14 27 percent, the combined Federal and merchandising "illusJon/: muqh like ~e (federal employ- "free traqing stamps" prevale11t in the 1950s ees) . State tax would be reduced to 37 per Family social services .. 100 75 cent, diminishing significantly-al and 1960s. With the stamp prqgralllS, mer Payment to civil (37) (37) though certainly notr altpgether-the chants would raise, prices lor everyof!e, to service retire- 1 pay for, &tamps and · m~rchanqi§e th~ were men!•. incentive to shelter. · J not received by everyone. Merchants- made Total entitlements ... 118 93 It is important to realize lhat under money on the "breakage"-the purchases by El the House tax bill, which ha.S a top in non-stamp-savers. - .t Total current level 1.053,024 980,0I? . 778,469 as of July 25, dividual rate of 38 percent, ~ more of <, Americans were eventually 'disabused ,of 1986. the tax cut for individuals went to that free-stamp illusion where discount food 1986 budget resolution (S. 1.069.700 967,600 , 795.700 stores Cf).me in wjth lower prices for every Con. Res. 32) . those with incomes over $75,000- roughly 27 .5 percent-then under the qne and stamps for no one. Amount remaining: The whole premise of tax reform. is to get j Over budget ... Senate tax bill-approximately. 26.5 resolution. percent. Higher rates do not ensure rid .of this free-stamp illusion by taking Under 16,676 17,231 away all or most of those trading~stamp larger tax collections from the preferences in return for lower rates .and a ~~~lion . wealthy. The Senate bill will collect m,uch broader tax base, with less ipcome in more taxes from the wealthy by apply 1 lnterfund transactions do not add to budget totals. efficiently sheltered from taxation. Note.-Numbers may not add due to rounding.e ing lower' rates to greater amounts of Conversely. if you raise those rates, you taxable income than will be cotlected immediately have to restore the trading using the higher, 38-percent ~ rate in stamps, i.e., the burden on capital to pre 1 1 the House bill. '- - venf economic damage. WARREN BROOKES' ARTICLE ON FOr example, if you irppose a 35-38 per So I strongly urge the conf~rees tp T~REFORM cent top rate on the rich, as the House not go beyond the top individual tax wants to, you will ha. e to restore t.qe "I;>ref e Mr. BOSCHWITZ. ~r. President, rate set in the Senate bill-27 ,i>~rcent. ererlce" for capital gains, something liberals the July 14, i986 edition of ~he Wash Mr. President, I ask that the July 14, have tried to' get rid of for years. The bill ington Times carried "an article by 1986, article by Warren Brookes be ·n proposed by Republican Sen. Robert Pack Warren Brookes titled "Tax Reform cluded in the ·RECORD. I note that this wood of Oregon passed liberal muster be Ambush." In his article, Mr. Brookes is only one of many excellent articles cause it wiped ou this preference; it passed argues that the Senate's top individual which Mr. Brookes has written on tax conservative muster because it brought. the tax rate of 27 percent should be main reform, several of which I have now top rate down to 27 ' p~rcent, only· seven tained in the final tax bill which points higher than the present 20 percent introduced in the RECORD. top rate on capital gains ~with ' ·the prefer emerges. from the House-Senate con The article f o tows: ence>. ference on tax reform. I agree. CFrom the Wa.Shingt.on Times, July 14, Raise that top rate any-more and the pref Some of the House conferees have 1986) erence will have to come back. because we suggested that a third, higher tax ratE1 already have one oJ the highest capital should be aaded. I think that would be Tax Reform Ambush gains taxes in the world xxx-xx-xxxx exchanged for such hay. with "(2) make audio" through the end tion> in such amounts as he determines nec