Allard Bill Would Create Checkoff to Reduce National Debt

The designation of this money would be similar to the checkoff for the Presidential Election Campaign Fund: it "would not increase the amount of taxes to be paid, nor would it decrease any refund," Allard said. The money would be directed into a special Treasury account for reducing the national debt and "would be beyond any money set aside by Congress for debt reduction," he emphasized.

S. 3213. A bill to amend the Internal Revenue Code of 1986 to allow an individual to designate $3 or more on their income tax return to be used to reduce the public debt; to the Committee on Finance.

TAXPAYERS CHOICE DEBT REDUCTION ACT

Mr. ALLARD. Mr. President, I have introduced S. 3213. I want to take a few moments to talk about this important piece of legislation for paying down the national debt.

As the 106th Congress comes to an end, I rise to make a few comments on the evolution of an issue of great concern to myself and to many Americans. The issue is the $5,661,548,045,674 national debt we had as of October 2, 2000.

In August of 1993, while serving in the House of Representatives, I introduced House Joint Resolution 251 with the support of a number of my colleagues. The intention of this resolution was to amend the Constitution of the United States to provide for budgetary reform by requiring the reduction of the deficit, a balanced Federal budget, and the repayment of the national debt. During my years in the House, I had the good fortune to work with many Republican colleagues who were committed to these fiscally sound and enormously important issues.

Today, a scant 7 years later, we are enjoying unsurpassed Federal budget surpluses and the many difficulties that accompany such prosperity. I am concerned that the running dialog in Washington is far too focused on today's spending, today's enormous Federal programs, today's immediate wants and needs. I am concerned that we are talking too much about spend today and not enough about the consequences of tomorrow. As we conclude the appropriations process, it is apparent that many Members of this body are eager to transform the Federal budget surplus into new Federal spending, creating more Federal programs that will begat future obligations.

I am primarily concerned that efforts to recklessly spend every nickel of the taxpayers' money will threaten the long-term fiscal health of our Nation, the Nation our children and grandchildren will inherit. The majority of my colleagues on this side of the aisle are focusing on returning the surplus to its rightful owners -- the American people.

In recent months, the current administration has taken a hardline against tax cuts, making it clear that the President believes the Federal budget surplus belongs to Washington and not the hard-working men and women who send far more money to the Internal Revenue Service than they often save for retirement, college, or for buying a home.

I find it frustrating and the height of arrogance to assume that the Federal Government can do more with this money than the taxpayers. So many of my Republican colleagues have such a profound conviction regarding returning the money to the working man and woman that, in fact, they have been hesitant to engage in development of a comprehensive long-term debt repayment plan.

I have come to the floor before, and I will come to the floor again, to make clear what is required to manage the national debt in a comprehensive repayment strategy. The sheer enormity of the national debt demands such diligence. I admit that I have no desire to increase the growth of the Federal Government instead of paying down the debt. I am, as many of my colleagues, however, personally committed to cutting taxes.

I have come to the floor today for no other reason than to make one thing crystal clear: We can pay down the debt and cut taxes. It is not an either/or proposition. It takes planning, and it takes commitment. It takes a plan to repay the debt and a commitment to cut taxes and the discipline to refrain from pouring ever more money into newer or larger programs.

At the end of fiscal year 1999, the gross Federal budget was $5,656, 270, 901, 615 and at the end of fiscal year 2000, the gross Federal budget was $5,674, 178, 209, 886.

Our past fiscal irresponsibilities have created this overwhelming mess, and an unpleasant task lies before us. For the health and well-being of our national economy and the future security of our young people, we must commit to the elimination of this debt.

The journey of 5-1/2 trillion miles begins with a single step. Early in the 106th Congress, I introduced the American Debt Repayment Act. A year later, I followed that legislation with the American Social Security Protection and Debt Repayment Act. I believe each of these bills provided a sensible first step toward debt repayment and the 5 trillion steps to follow.

Both pieces of legislation suggested we treat the Federal debt just as every American treats the largest purchase they will ever make. That is their home. In February of this year, I came to the floor with my friends, George Voinovich, Rod Grams and Mike Enzi, with an amortization schedule for debt repayment to be offered to the budget resolution. Just as any American home buyer would amortize the purchase of their home with a mortgage, we offered a dutiful and moderate restriction on Federal spending combined with a specific debt repayment schedule. Our amendment was defeated. I believe the chief reason for the defeat of the amendment was the fear of being locked into a long-term repayment plan that would prohibit future tax cuts. The July 2000 budget economic and outlook update by the Congressional Budget Office disputes this understandable fear.

According to the CBO, assuming spending is frozen at fiscal year 2000 levels, the next 10 years will yield an on-budget surplus of $3.4 trillion. If this Congress had exercised some discipline this year and appropriated within a freeze, the on-budget surplus in fiscal year 2001, which we have just begun, is projected to be $116 billion.

One criticism of the long-term debt amortization plan that I brought to the floor was that it would prevent tax cuts and tie the hands of appropriators by absorbing all of the surplus. My most recent plan simply dedicates $15 billion of on-budget surplus to debt repayment and adds $15 billion each year thereafter. The sum total after 10 years of structured debt repayment is $825 billion from on- budget surplus.

This repayment schedule would have left $2.6 trillion remaining for tax cuts and new spending over the next 10 years.

It is important to note that these numbers do not take into account the off-budget surplus created by Social Security. I have said on the floor many times before that paying down the national debt is one of the best ways to provide long-term fiscal stability to Social Security.

In the past, I proposed restricted use of the Social Security surplus to help pay down the debt. This not only provides for the future stability of Social Security by paying down the debt but protects Social Security money from Federal discretionary spending.

Social Security surplus money should be used for debt repayment only until such time as Congress can initiate sensible reform to preserve the long-term integrity of Social Security. Social Security reform has been a priority of this Congress, and we can act to reduce the debt and reform this important program in one commitment.

When the new Congress convenes in 2001, I intend to continue to work with my colleagues on developing a sensible and concrete debt repayment plan. I am also interested in working with my colleagues on other innovative ways to reduce the national debt. Legislation was recently introduced in the House, and I am pleased to come to the floor today on behalf of myself and the Senator from Idaho, Mr. Crapo, to introduce the Taxpayers Choice Debt Reduction Act.

Every year, millions of taxpaying Americans have the opportunity to designate on their tax form a $3 contribution to the Presidential Election Campaign Fund. This checkoff on all 1040 forms would allow for the taxpayers themselves to designate that $3, or $6 for joint filers, would be dedicated to a special Department of the Treasury account to pay down the national debt.

Checking the box on the tax document would not increase the amount of taxes to be paid, nor would it decrease any refund. Checking "yes" in this box would simply provide a directive from the taxpayer that 3 of the dollars they were paying in taxes be used solely to pay down the Nation's debt. Importantly, these funds would be beyond any money set aside by Congress for debt reduction.

In my annual town meetings around the State of Colorado, I often speak with my constituents over the enormous debt owed by this country. I can say with great confidence that this is an issue where the public desires action. It is my hope that with this legislation Congress will empower these concerned taxpayers to act on their impulse to eliminate the debt.

Before I yield the floor, I extend my thanks to all of my Senate colleagues who have expressed an interest in debt repayment during this Congress, particularly Senators Voinovich, Enzi, Grams of Minnesota, Crapo, Reid of Nevada, and Feingold. I have enjoyed working with each of these Members over the course of the year as we have brought debt repayment amendments to the floor. I look forward to continuing to work on this important issue with my colleagues.