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Virginia State Seal
Oklahoma
FOR IMMEDIATE RELEASE
September 30, 1998
CONTACT: Natalie Rule
202/225-5565
YEP...IT'S A SURPLUS

Washington, D.C.-After promising, talking about, and working hard to balance the nation's budget, the American taxpayers and this Congress declared today a momentous success. Sixth District U.S. Congressman Frank Lucas was pleased to see the Fiscal Year 1998 end with an estimated $63 billion surplus on the federal books.

"This is the first time the federal government has not run a deficit since 1969," Lucas said. "The deficit was at a whopping $203 billion in 1994 when I came to Congress and there were many people skeptical about the Congress' ability to even balance the nation's books by the year 2002.

"We made a promise and we made good on it early and in the form of a surplus even," Lucas said. "And what is most important to understand is that balancing the budget is not only about the fiscal responsibility of a governing body, but more about saving the future of this nation's citizens, bettering the quality of life in this country and working to permanently reform social programs to save them from bankruptcy and insure their security for all to come.

Just a few examples of the positive effects of a balanced budget reach to just about all Americans: lower interest rates = lower expenses for families; mortgage rates now approaching 6.5% as opposed to 7.5% just one year ago; costs for most big ticket items--from a college education to cars to washing machines--are lower due to lower financing costs; creation of over 3 million new jobs since last August. (Department of Labor statistic)

"We, as a Congress, are working on legislation that will improve quality of life and maintain a restrictive government spending atmosphere, which is predicted to produce government surpluses for the next 10 years," Lucas said. "The House just passed two bills last week that would return $80 billion in tax revenues--over five years--back to American taxpayers who have been excessively taxed for years. Before last year's tax cut, taxpayers hadn't seen broad-based tax relief since 1981."

"The second bill sets aside $1.4 trillion for the preservation of the Social Security Trust Fund," Lucas said. "If this is signed into law, it would be the first time ever that a Congress set aside any amount of money to help secure the Social Security program."

"All of this is being done with the assistance of running a government surplus instead of a deficit," Lucas said.

"Unfortunately, President Clinton was fighting us every step of the way when we were laying out plans for a balanced budget, and though he has come around to the idea of a government functioning in surplus and even now claims sole responsibility for that surplus, he presently criticizes the use of 10 percent of future surpluses for widespread tax relief for the over-taxed people of his country," Lucas said.

"Usually I try to keep my public expressions of disagreement with the President to a respectful minimum, however I find it infuriating that the President preaches everywhere he goes--and he gets a lot of media coverage--that we cannot direct any of the future surpluses toward tax relief because 100 percent must be set aside for Social Security," Lucas said.

"Then he turns around and quietly targets surplus dollars to be spent to his liking, and I don't mean on Social Security," Lucas continued. "He has already tagged $14.1 billion of the money he says should be directed completely to Social Security for new government spending. Whereas, the tax relief for the same time period would be $7 billion, with the rest going to a Social Security savings account.

"President Clinton weaves a tangled web on this issue and I am just afraid the taxpayers don't realize it," Lucas said. "He has already said he plans to veto any tax relief that comes from the surplus."

"In the meantime, you can be sure that this Congress will continue to act responsibly and work to keep the budget in balance making for a better America all the way around," Lucas concluded.

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