Increasing the Statutory Limit on the Public Debt

May 23, 2003

INCREASING THE STATUTORY LIMIT ON THE PUBLIC DEBT

RESTORING THE PAY-GO RULE

Ms. CANTWELL. Mr. President, I rise today to offer my support for the Feingold amendment reinstating the Senate's pay-go rule. The premise underlying this amendment is that we as a body must return to using the budget enforcement measures that have helped us be fiscally responsible in the past.

We have responsibilities to live up to and commitments to fulfill, but we also must have fiscal discipline as we make budget decisions. We must have a framework and strict budget enforcement rules to guide through this difficult, and as we have seen this week, contentious and politically charged process.

This amendment helps us at a time when we have seen a multitrillion-dollar surplus turn into a multitrillion-dollar deficit. Perhaps now more than ever, it is critical that we exercise fiscal restraint. Reinstating the pay-go rule by approving this amendment is a good first step.

This amendment would extend the "pay as you go" budget rule that expired on April 15. The pay-go would subject any tax cuts or new mandatory spending to a 60-vote point of order unless those cuts or spending increases are fully offset. Pay-go had been in effect from 1990 until just a few weeks ago when our colleagues across the aisle allowed it to expire, choosing to replace it with a far weaker provision. The pay-go provision proposed in Senator FEINGOLD's amendment would restore the stronger rule, which in the past decade has proven an important tool for the Senate to maintain fiscal discipline and keep Federal spending within reasonable limits.

The actions of the Senate today made clear the absence of fiscal discipline in our Government under this administration. I hope the American people see this morning's tax vote and this subsequent effort to increase the debt limit by nearly $1 trillion—the largest increase in our Nation's history—for what it is: A poor decision that will burden taxpayers with an outrageous debt load for years to come.

We know the current and ever-growing deficit is a direct result of the 2001 tax cut, the ongoing recession, and the tragic events of September 11, 2001. For us to enact another poorly targeted tax cut is a mistake. And it is outrageous that minutes after the tax cuts were approved, the Senate began the debate to raise the Government debt limit by more than $900 billion. This is proof that fiscal discipline is not the guiding principle when making decisions about the country's future financial health. This is the second time in 2 years we have been faced with this issue, a clear indication that current fiscal policies are not improving the economic reality.

One of the most important actions we can take for the Nation's future economic stability is to pay down the National debt. According to the Chairman of the Federal Reserve Board, Alan Greenspan, paying down the National debt lowers interest rates and keeps the capital markets and investment going.

I want to make it clear that I do support efforts to provide hardworking Washingtonians and all Americans with tax relief such as eliminating the marriage penalty, making college tuition tax deductible, allowing States with no State income tax to deduct their sales taxes from their Federal income tax return, and assisting workers in savings for their retirement. But we must look at all budget issues—taxes and spending alike—from a total and comprehensive view.

Our total budget must be crafted within a framework that maintains fiscal discipline, and stimulates economic growth through continued Federal investment in education and job training, while also protecting the environment. Furthermore, we need to invest in our Nation's economic future by making a commitment to public research and development in science and technology—maintaining our status as a global leader.

It is a balance. We need to make these investments, but within a framework that ensures we don't spend beyond our means. If we want our economy to be strong, if we want revenues, and if we want to make the right decisions, we need to keep paying down the debt.

We must have fiscal discipline in the budget and appropriations process. We cannot focus solely on the individual items and programs in our budget but must look at the whole picture. The budget enforcement procedures such as pay-go help us do this, and help us keep our spending under a reasonable amount of control.

Budget enforcement rules like pay-go worked successfully as we struggled to get out of the deficit spending in the 1990s, and it will work as we struggle to get out of the recession and deficit financing we face today. I urge my colleagues to support the Feingold amendment and reinstate the Senate's pay-go rule.