Critics of the budget deal seem to fall into one of three categories: 1) Those who think the tax cuts and spending cuts are too large.  However, if we took their approach, we would continue the tax-and-spend policies of yesterday and never get our fiscal house in order.  2) Those who think the tax cuts aren’t big enough and the spending cuts should go deeper.  If we bought into their argument, we would lose important investments in education, Medicare for our seniors, protection for our clean air and water, and transportation spending.  3) Those who think the budget deal wasn’t “bold” enough; that is, Congress didn’t take the big steps necessary to reform entitlement programs.

The first two groups of people have it all wrong; I maintain that we absolutely must balance the budget and protect education, Medicare, the environment, and other priorities.  The third group of people are correct in that Congress has to tackle the big problems of Medicare and Social Security, but I disagree with their presumption that we had to handle it once and for all in this budget.  The solutions endorsed by the President and Congress will keep the programs viable while we thoroughly examine the entitlement programs and how to reform them for the next generation.

There are three primary reasons why I strongly support the Balanced Budget Act.

The Balanced Budget Act is fiscally responsible.

We have not had a balanced budget since 1969.  Past Congresses and Presidents have spent taxpayer dollars irresponsibly, and we have had a budget deficit every year since.  A budget deficit “crowds out” private investment, making it more expensive to borrow money.  Interest rates climb, thereby increasing your mortgage payment, car payment, or student loan payment.  

What’s more, these constant budget deficits have led to a $5.3 trillion debt.  Every year, about 15 percent of our federal budget goes toward these debt payments.  If we had that extra money in our federal budget – $250 billion this year – we could give greater tax relief, invest more in education, or provide health care coverage to uninsured children.

The Balanced Budget Act brings us to a zero deficit by the year 2002.
 

If the economy stays strong, we could even eliminate our deficit earlier, perhaps by the year 1999 or 2000.  This is necessary to ensure that we don’t dump our debt on our children and grandchildren.  

The Balanced Budget Act gives $92 million in tax relief.

Congress hasn’t cut taxes in 16 years.  Since our economy is booming, it’s important to give some of that prosperity back to taxpayers.

People need to know that Congress doesn’t just raise taxes; Congress can and will give tax cuts when appropriate.

The Balanced Budget Act gives fair tax relief to middle-class families.  I commend President Clinton for his strong stand during the negotiations and pressuring the Republican Congressional Leadership to target more of the tax relief to those that really need it – middle class working families.

The tax cut package includes substantial tax credits for education.

Families making less than $100,000 will get a maximum $1,500 for the first two years of college, followed by smaller credits for the third and fourth years of college, graduate school, and other post-high-school education.  The capital gains tax rates will be reduced, with the 28 percent and 15 percent rates being reduced to 20 percent and 10 percent respectively.  The biggest part of the tax cut package goes to working parents who earn less than $110,000 per family or single parents earning less than $75,000.  They will receive up to a $500 per child tax credit.

The Balanced Budget Act prioritizes education.

As I mentioned above, the Balanced Budget Act has tax credits for college tuition.  It also includes a tax deduction for student-loan interest and penalty-free withdrawals from IRAs for education.  Parents can also contribute money to a tax-free education savings account for their children.  

We have made substantial progress towards reducing our federal deficit.

In 1993, the deficit was $290 billion.  This year, it will be approximately $50 billion.  But that doesn’t mean we can rest on our laurels and expect the budget to balance itself.  After all, you don’t balance you checkbook once and then forget about it.  Fiscal responsibility is a day-to-day battle.  Congress must continue to get our spending under control, eliminate our yearly budget deficits, and begin chipping away at our $5.3 trillion debt.

As with any compromise, it is not perfect.  I do not support every single provision in this 2,500 page bill, but the American public is looking for Republicans and Democrats to work together to solve our nation’s problems.

I am proud to be a part of the first Congress in nearly 30 years to put the country’s needs ahead of partisan bickering and pork-barrel politics and pass a fiscally responsible budget.