W&M Release on Debt Relief Markup

NEWS FROM THE COMMITTEE ON WAYS AND MEANS

[2] "Since President Clinton vetoed bipartisan bills to end the marriage tax penalty and repeal the death tax, we are acting quickly to ensure that these tax dollars go for debt relief, not more government spending. We don't want debt relief to be the crumbs on the table after the Washington spending binge, we want debt relief to be the meat and potatoes that grows our economy instead of big government," said Chairman Archer.

[3] The legislation would create a new account within the U.S. Treasury where funds would be deposited for relief of the publicly- held debt. The account would have as much protection as Social Security or Supplemental Security Income payments. In other words, the funds would automatically go toward debt relief through mandatory appropriation and would not be part of the annual budget process. A one-page summary of the bill follows this release.

[4] In its July, 2000 budget projections, CBO projected that the total budget surplus for FY 2001 would be $268B. CBO said the off-budget surplus attributed to Social Security will be $165B and the on- budget surplus attributed to excess tax revenue will be $102B (to access CBO's budget projections, visit CBO's website at www.cbo.gov).

THE DEBT RELIEF LOCK-BOX RECONCILIATION ACT FOR FISCAL YEAR 2001

PURPOSE

[5] Building on last year, when Congress protected 100% of the Social Security surplus from being spent, Congress will continue to balance its books without using the Social Security and Medicare surpluses. These surpluses will be reserved exclusively for debt reduction until legislation to reform Social Security and Medicare is passed. This bill also dedicates additional non-Social Security and non-Medicare surpluses in FY 2001 to debt relief. Overall, 90% of the total surplus would be used to reduce the debt in FY 2001.

HOW THE BILL WORKS

o Sets aside 100% of the Social Security surplus to pay down the