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REVENUE RECONCILIATION ACT OF 1997 [105th]
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REVENUE RECONCILIATION ACT OF 1997
(Senate - June 27, 1997) Text of this article available as:
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[Pages S6670-S6720] REVENUE RECONCILIATION ACT OF 1997 The PRESIDING OFFICER. Under the previous order, the Senate will now resume consideration of Senate bill 949, which the clerk will report. The assistant legislative clerk read as follows: A bill (S. 949) to provide revenue reconciliation pursuant to section 104(b) of the concurrent resolution on the budget for fiscal year 1998. The Senate resumed consideration of the bill. Pending: Dorgan amendment No. 515, to authorize the Secretary of the Treasury to abate the accrual of interest on income tax underpayments by taxpayers located in Presidentially declared disaster areas if the Secretary extends the time for filing returns and payment of tax (and waives any penalties relating to the failure to so file or so pay) for such taxpayers. Dorgan Amendment No. 516, to provide tax relief for taxpayers located in Presidentially declared disaster areas. Jeffords amendment No. 522, to provide for a trust fund for District of Columbia school renovations. Domenici-Lautenberg amendment No. 537, to implement the enforcement provisions of the Bipartisan Budget Agreement, enforce the Balanced Budget Act of 1997, extend the Budget Enforcement Act of 1990 through fiscal year 2002, and make technical and conforming changes to the Congressional Budget and Impoundment Control Act of 1974 and the Balanced Budget and Emergency Deficit Control Act of 1985. Biden amendment No. 539 (to amendment No. 537), to provide for the transfer of funds from the general fund to the Violent Crime Reduction Trust Fund. Nickles modified amendment No. 551, to provide for an increase in deduction for health insurance costs of self- employed individuals, and to modify rules for allocating interest expense to tax-exempt interest. Gramm amendment No. 552, to allow families to decide for themselves how best to use their child tax credit. Kerry amendment No. 554, to allow payroll taxes to be included in the calculation of tax liability for receiving the children's tax credit. Amendment No. 551, as Modified The PRESIDING OFFICER. The pending business is the Nickles amendment No. 551, with 2 minutes equally divided for debate. Mr. NICKLES. Mr. President, on behalf of myself, Senator Hagel, Senator Abraham, Senator Domenici, and others, the amendment that we proposed last night we have modified. We did receive some requests from Senators to delete the provision that dealt with corporate deductibility of tax exempts. That was not a major portion of the amendment. We did delete that. I might mention I think it is a good provision. It is a provision that is in the House bill, so it will be in conference. Mr. President, this amendment accelerates self-employed deductibility for insurance. It allows self-employed individuals to be able to deduct a greater proportion of their health insurance needs. It increases it. For example, in 1997, current law is 40 percent; it increases it to 50 percent. In 1999 it increases it to 60 percent. And so on. Mr. President, I ask for the yeas and nays on the amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. KERREY. I am not in opposition, but with the 2-percent provision stricken, I ask unanimous consent to be added as a cosponsor to this amendment. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. NICKLES. I also ask unanimous consent that Senator Thurmond be added as a cosponsor. The PRESIDING OFFICER. Without objection, it is so ordered. The question is on agreeing to the amendment. The yeas and nays have been ordered. The clerk will call the roll. The assistant legislative clerk called the roll. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts] is necessarily absent. Mr. FORD. I announce that the Senator from Illinois [Ms. Moseley- Braun] is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The result was announced--yeas 98, nays 0, as follows: [Rollcall Vote No. 138 Leg.] YEAS--98 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Bumpers Burns Byrd Campbell Chafee Cleland Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle DeWine Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Glenn Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hatch Helms Hollings Hutchinson Hutchison Inhofe Inouye Jeffords Johnson Kempthorne Kennedy Kerrey Kerry Kohl Kyl Landrieu Lautenberg Leahy Levin Lieberman Lott Lugar Mack McCain McConnell Mikulski Moynihan Murkowski Murray Nickles Reed Reid Robb Rockefeller Roth Santorum Sarbanes Sessions Shelby Smith (NH) Smith (OR) Snowe Specter Stevens Thomas Thompson Thurmond Torricelli Warner Wellstone Wyden NOT VOTING--2 Moseley-Braun Roberts The amendment (No. 551), as modified, was agreed to. Mr. ROTH. Mr. President, I move to reconsider the vote by which the amendment was agreed to. Mr. LOTT. I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. LOTT addressed the Chair. The PRESIDING OFFICER. The majority leader. Mr. LOTT. Mr. President, I ask unanimous consent that the remaining votes in sequence be limited to 10 minutes in length. The PRESIDING OFFICER. Is there objection? Mr. REID. Mr. President, reserving the right to object, is this going to be a real 10 minutes? Mr. LOTT. Mr. President, I can respond to that question. I was just fixing to say that the 10 minutes be strictly enforced. Please don't leave the Chamber. We just had a couple of Senators that didn't make that vote because it had been beyond the normal time. When the 10 minutes is up we are going to turn it in. [[Page S6671]] The PRESIDING OFFICER. Without objection, it is so ordered. Mr. ROTH. Mr. President, I have a further unanimous consent. Mr. President, I am asking unanimous consent that following the previously ordered stacked vote that the remainder of the sequence be in an alternating fashion with the two managers determining the order. The PRESIDING OFFICER. Is there objection? Without objection, it is so ordered. Mr. ROTH. Mr. President, I ask unanimous consent that following the disposition of the Kerry amendment No. 554 that Senator Domenici be recognized to offer an amendment No. 537, to be followed by the amendments in the following order: Biden-Gramm, Gramm, Bumpers, Craig, Brownback, Frist, Abraham, and Byrd. The PRESIDING OFFICER. Without objection, it is so ordered. Amendment No. 552 Mr. ROTH. Mr. President, what is the order of business before us? The PRESIDING OFFICER. The pending amendment is the Gramm of Texas amendment No. 552. Mr. ROTH. I yield the floor. The PRESIDING OFFICER. The debate is limited to 2 minutes equally divided. The Senator from Texas. Mr. GRAMM. Mr. President, from the very beginning of this tax debate we have talked about a $500 tax credit per child. And the logic has been to let working families decide how to spend their money on their children. Then suddenly out of the Finance Committee on a very close vote has come a provision that says we are going to give you a $500 tax credit but you get it only if you use it the way we determine you should use it, which is to have an educational IRA. I think educational IRAs are wonderful, if you can afford them. But the whole purpose of the $500 tax credit was to let working families decide. I know the Senate is full of brilliant people, and we think we can decide things for families better than they can. But that violates the agreement we had with the American people on this bill. We hear every time an issue is debated that this violates the commitment to the Congress, or it violates the commitment to the President. This provision violates the commitment to the American people, and all of us talk about a $500 tax credit. We talk about parents choosing. Let's let them choose. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. There is 1 minute to the opposition. Mr. ROTH. Mr. President, I strongly oppose this amendment. We had two goals in this legislation: To provide tax relief to the family, to provide assistance for higher education to the families, and this carefully crafted compromise does exactly that. I yield what time is remaining to the Senator from Louisiana. The PRESIDING OFFICER. The Senator from Louisiana. Mr. BREAUX. The problem of bringing up the amendment is there is no requirement that the tax credit be used for the child. This is a per- child tax credit. We think there should be at least some encouragement that it be used for the child. Mr. KERREY. Mr. President, this provision would change American families with children, and it will generate more wealth. It is good for American families. We have been talking about it. In addition to the child tax credit, there are a number of us--Republicans and Democrats--talking about ways to make this tax credit a vehicle for generating wealth for the last few years. It is a good provision. I hope my colleagues will vote against the motion to strike. The PRESIDING OFFICER. The time has expired. Mr. ROTH. I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. The question is on agreeing to the amendment of the Senator from Texas. On this question, the yeas and nays have been ordered, and the clerk will call the roll. The legislative clerk called the roll. The result was announced--yeas 46, nays 54, as follows: [Rollcall Vote No. 139 Leg.] YEAS--46 Abraham Akaka Allard Ashcroft Bond Brownback Burns Campbell Coats Collins Conrad Coverdell D'Amato DeWine Domenici Dorgan Enzi Faircloth Frist Gramm Grams Hagel Helms Hutchinson Hutchison Inhofe Johnson Kempthorne Kyl Lugar McCain McConnell Murkowski Nickles Roberts Santorum Sessions Shelby Smith (NH) Smith (OR) Snowe Thomas Thompson Thurmond Warner Wellstone NAYS--54 Baucus Bennett Biden Bingaman Boxer Breaux Bryan Bumpers Byrd Chafee Cleland Cochran Craig Daschle Dodd Durbin Feingold Feinstein Ford Glenn Gorton Graham Grassley Gregg Harkin Hatch Hollings Inouye Jeffords Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Lott Mack Mikulski Moseley-Braun Moynihan Murray Reed Reid Robb Rockefeller Roth Sarbanes Specter Stevens Torricelli Wyden The amendment (No. 552) was rejected. Mr. ROTH. Mr. President, I move to reconsider the vote. Mr. SANTORUM. I move to lay that motion on the table. The motion to lay on the table was agreed to. The PRESIDING OFFICER. May we have order, please. Mr. ROTH. Mr. President, what is the pending order? Mr. MOYNIHAN. Mr. President, we must have order. The PRESIDING OFFICER. We will not proceed until there is order in the Chamber. Amendment No. 554 The PRESIDING OFFICER. The pending question is on the Kerry of Massachusetts amendment No. 554. Mr. ROTH. Mr. President, I yield the floor. Mr. KERRY. Mr. President, may we have order. The PRESIDING OFFICER. Two minutes equally divided. The Senator from Massachusetts. Mr. KERRY. May we have order, Mr. President. The PRESIDING OFFICER. May we have order, please. Mr. KERRY. Mr. President, we just heard the Senator from Texas talk about getting a child tax credit for children. Under the child tax credit as it is written in the Finance Committee bill, 99 percent of the children eligible in the lowest 20 percent of income will not get it; 86 percent of the children in the next quintile will not get it. This is because, as we all know, most people in America pay their taxes by the payroll tax. What I do in my amendment is take the Contract With America provision that was supported by Senator Gramm, Senator Lott, and Senator Coats and apply a refundable tax credit so that we expand by 7 million the number of children who will be given a tax credit. If we really want the working people of America to get this credit, it is appropriate that a working family that is earning $22,000 with two parents and two children be able to get the credit. Under the current legislation, they would not get the credit. The PRESIDING OFFICER. The Senator's time has expired. Mr. KERRY. Only by the Contract With America provision can we expand the number of children. The PRESIDING OFFICER. One minute in opposition. The Senator from Oklahoma. Mr. NICKLES. Mr. President, I urge any colleagues to vote no on the Kerry amendment. This is really an amendment to make the credit refundable. Another way of saying that, this is a way for the Federal Government to spend more money. Costed out, the outlays will increase in this bill under this amendment by $22 billion over 5 years, by $47 billion over 10 years. I might mention, refundable credits are one of the most fraudulent in government. The EITC program has exploded. It has an error rate of over 25 percent. This is an amendment to redistribute wealth, and it denies tax credits for families that have incomes above $60,000. I urge my colleagues to vote no on this amendment. Mr. DOMENICI. Mr. President, I rise to make a point of order against the [[Page S6672]] amendment. It would increase outlays by $22 billion over 5 years, $47 billion over 10 years and it thus violates section 302(b) of the Budget Act. Mr. KERRY addressed the Chair. The PRESIDING OFFICER. The Senator from Massachusetts. Mr. KERRY. Mr. President, this is revenue neutral, and I move to waive the Budget Act to accept a revenue neutral amendment. The PRESIDING OFFICER. Does the Senator ask for the yeas and nays? Mr. ROTH. Yeas and nays. Mr. KERRY. I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The PRESIDING OFFICER. The yeas and nays were ordered. There are 2 minutes equally divided on this vote. The Senator from Massachusetts. Mr. KERRY. Mr. President, let me just say to my colleagues this does not cost one penny additional because we change the phase-in. It is $100,000 plus that you extended to the people in the Finance Committee. I put the phaseout at $65,000 to $70,000, and we phase in the children by age. So there is no impact on the budget. It is revenue neutral. Mr. NICKLES addressed the Chair. The PRESIDING OFFICER. May we have order, please. Mr. KERRY. And it extends it to 7 million additional children. You cannot say you are covering working children in America if a working family is not able to take advantage of the credits. The PRESIDING OFFICER. The time has expired. Mr. NICKLES addressed the Chair. The PRESIDING OFFICER. If we can all have order, please. The Senator from Oklahoma has 1 minute. Mr. NICKLES. Mr. President, I am advised by the Senator from New Mexico that the low-income family with two children under the EITC Program, if they have incomes of about $14,000, receive a refundable tax credit of $3,680, a lot more than their total tax liability. The Senator from Massachusetts wants to add to that and increase outlays by $22 billion. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER. The Senator from New Mexico. Mr. DOMENICI. Mr. President, there is a budget point of order, neutrality or no neutrality. The expenditures in this amendment exceed the expenditures that are allocated under the budget resolution, and the Budget Act says you cannot spend more than is allocated to the committee, regardless of whether it is neutral or not. Mr. BYRD. Mr. President, may we have order in the Chamber. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The Senate will be in order. The question is on agreeing to the motion to waive the point of order. The yeas and nays have been ordered. The clerk will call the roll. The assistant legislative clerk called the roll. Mr. FORD. I announce that the Senator from Illinois [Mr. Durbin] is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 39, nays 60, as follows: [Rollcall Vote No. 140 Leg.] YEAS--39 Akaka Biden Bingaman Boxer Breaux Bumpers Cleland Coats Collins Conrad Daschle Dodd Dorgan Feingold Feinstein Ford Glenn Harkin Hollings Inouye Jeffords Johnson Kennedy Kerry Kohl Landrieu Lautenberg Leahy Levin Mikulski Murray Reed Reid Robb Sarbanes Specter Torricelli Wellstone Wyden NAYS--60 Abraham Allard Ashcroft Baucus Bennett Bond Brownback Bryan Burns Byrd Campbell Chafee Cochran Coverdell Craig D'Amato DeWine Domenici Enzi Faircloth Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Hatch Helms Hutchinson Hutchison Inhofe Kempthorne Kerrey Kyl Lieberman Lott Lugar Mack McCain McConnell Moseley-Braun Moynihan Murkowski Nickles Roberts Rockefeller Roth Santorum Sessions Shelby Smith (NH) Smith (OR) Snowe Stevens Thomas Thompson Thurmond Warner NOT VOTING--1 Durbin The PRESIDING OFFICER. On this vote the nays are 60, the ayes are 39. Three-fifths of the Senators duly chosen and sworn not voting in the affirmative, the motion is rejected. The point of order is sustained and the amendment falls. Mr. ROTH. Mr. President, I move to reconsider the vote. Mr. MOYNIHAN. I move to lay that motion on the table. The motion to lay on the table was agreed to. Amendment No. 537 The PRESIDING OFFICER. The question now is on the Domenici amendment No. 537, to which the pending business is the second-degree amendment, No. 539. The Senator from New Mexico. Amendment No. 539 To Amendment No. 537 Mr. DOMENICI. I do not see Senator Biden on the floor but I do see Senator Gramm. Do you object if I modify my amendment to include your Biden-Gramm amendment, so when we vote on mine we would be taking yours with us? Mr. GRAMM. Why don't we put it on my amendment? Mr. DOMENICI. I will object. Do you object? Mr. GRAMM. No, being a sweet, wonderful person, I will not object. Mr. DOMENICI. Being that everyone in the Chamber would want it to happen, he agrees. The PRESIDING OFFICER. Is there objection? Hearing none, it is so ordered. The amendment (No. 539) was agreed to. Amendment No. 537, as Amended The PRESIDING OFFICER. There will be 2 minutes equally divided. Mr. DOMENICI. Mr. President, I am the proponent of the waiver at this point, so I get 1 minute for the waiver. All we have done here is taken current law, with reference to points of order and the processes that we have to enforce budgets, the pay-go, and what we put in is the 5-year caps which we did on the last 5-year budget. We only did 2 years on the defense wall instead of 5. That exists today. Mr. MOYNIHAN. Mr. President, we must have order. The PRESIDING OFFICER (Ms. Collins). The Senate will be in order. Mr. DOMENICI. So, in order to enforce the agreement that we are claiming is a balanced budget, we must adopt this amendment or it is unenforceable, in terms of the appropriated accounts. Mr. MOYNIHAN. Madam President, might I just take a moment to observe that, with no uproar, we are about to do something rather important. In this vote on budget procedures we are going to legislate a change in the inflation index used to update official calculations of baseline spending. Under section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings), required inflation adjustments are made using a ``fixed-weight index'' produced by the Commerce Department's Bureau of Economic Analysis. Section 1559(a)(3), of the changes in budget enforcement procedures now before us, require that in the future the adjustments should be based on the ``domestic product chain-type price index''--also produced by the Bureau of Economic Analysis. Given the improvements in index number theory, this is a perfectly appropriate change. Might I also just remind my colleagues that the Department of Labor's Bureau of Labor Statistics compiles two other indexes used by the Government--CPI-U which is used to adjust provisions of the Tax Code and CPI-W which is used to adjust benefits such as Social Security. For the record I note that none of these indexes give the same estimate of inflation. Here are the numbers for 1996: [In percent] CPI-U...............................................................3.0 CPI-W...............................................................2.9 Fixed Weight Price Index............................................2.3 Chain Weight Price Index............................................2.1 Today's vote on budget procedures should be recalled when we return-- as we must--to the issue of producing an accurate cost of living index for the purpose of automatic indexation of [[Page S6673]] Government programs. No one is referring to today's legislative actions as ``politicizing'' the calculation of budget updates. We are just getting the numbers right. And no one should refer to legislating a correction in automatic indexation formulas as a ``political'' fix. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I ask unanimous consent that Senators Hatch and Gregg be added as cosponsors to the amendment. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. DOMENICI. Madam President, I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. The Senator from Texas. Mr. GRAMM. Madam President, I would like the 1 minute on the Biden- Gramm second-degree amendment. The PRESIDING OFFICER. The 1 minute has expired. Mr. GRAMM. But we have a second-degree amendment that was added to the Domenici amendment by unanimous consent. We would like it. The PRESIDING OFFICER. The amendment has been accepted. All time has expired. Mr. DOMENICI. I ask consent that he gets 1 minute. It is fair. The PRESIDING OFFICER. Without objection, it is so ordered. The Senator from Texas. The Senate will be in order. Mr. GRAMM. Let me take 30 seconds and allow Senator Biden to have the other 30 seconds. Our colleagues will remember that we set up a violent crime trust fund to guarantee adequate funding for law enforcement, and for our antidrug effort. That provision was set to expire and all we are doing in this amendment is simply extending that trust fund. This is a mightily important matter. I am confident no one is going to oppose it. I simply wanted to make note of what we are doing. I yield the remainder of the time. Mr. BIDEN. Madam President, there is nothing to add. This is simply extending the extent, the life of this agreement--the existence of the trust fund. Vote On Amendment No. 537, As Amended The PRESIDING OFFICER. All time has expired. The question is on agreeing to the amendment. The yeas and nays have been ordered. The clerk will call the roll. The legislative clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The result was announced, yeas 98, nays 2, as follows: [Rollcall Vote No. 141 Leg.] YEAS--98 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Byrd Campbell Chafee Cleland Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle DeWine Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Glenn Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hatch Helms Hollings Hutchinson Hutchison Inhofe Inouye Jeffords Johnson Kempthorne Kennedy Kerrey Kerry Kohl Kyl Landrieu Lautenberg Leahy Levin Lieberman Lott Lugar Mack McCain McConnell Mikulski Moseley-Braun Moynihan Murkowski Murray Nickles Reed Reid Robb Roberts Rockefeller Roth Santorum Sarbanes Sessions Shelby Smith (NH) Smith (OR) Snowe Specter Stevens Thomas Thompson Thurmond Torricelli Warner Wyden NAYS--2 Bumpers Wellstone The amendment (No. 537), as amended, was agreed to. Mr. MOYNIHAN. Madam President, I move to reconsider the vote by which the amendment was agreed to. Mr. DOMENICI. I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER. The Senator from New Mexico. Mr. DOMENICI. Madam President, what actually happened on that vote, the Parliamentarian misunderstood and he had us vote up or down on this amendment, and I had asked that it be a waiver of the Budget Act. In light of the fact we have--how many votes? The PRESIDING OFFICER. Ninety-eight yeas. Mr. DOMENICI. I would like to clear the amendment and make sure we have waived the Budget Act for this amendment so it is no longer possible to raise a point of order against it. So I move to waive the Budget Act for consideration of this amendment to this bill and any conference report that returns with it in. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive the Budget Act with respect to amendment No. 539, as amended. The motion was agreed to. Mr. MOYNIHAN. Madam President, I move to reconsider the vote by which the motion was agreed to. Mr. ROTH. I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. ROTH. The next amendment is Senator Gramm's. The PRESIDING OFFICER. The Senator from Texas is recognized. Amendment No. 566 (Purpose: To guarantee a balanced Federal budget and expand tax relief options) Mr. GRAMM. Madam President, let me remind everybody that in the budget that we are enforcing here, we had $7 billion of net deficit reduction as compared to current policy. Ninety-seven percent of deficit reduction was simply assumed. That deficit reduction and policy changes has now fallen to $1 billion because we are short on spectrum. Everything we are doing in balancing the budget is based on assumptions. The only enforcement mechanism we now have is on discretionary spending, and the first act in considering this budget was waiving that discretionary spending cap in the last budget. My amendment sets out the deficit reduction targets that we have committed to and enforces them with an across-the-board cut if we refuse to meet them. Also, my provision says that in paying for a tax cut, you can pay for it by cutting entitlements, by raising other taxes or by lowering the discretionary spending caps. So it gives us the option in the future, if we ever do another tax cut, to not have to cut Medicare in order to pay for tax cuts, so that if we want to reduce discretionary spending and put a spending cap in place, we can do it. This budget has a lot of assumptions in it. We need as strong as possible an enforcement. If you want strong enforcement, vote for this amendment. The PRESIDING OFFICER. The Senator's time has expired. Mr. LAUTENBERG addressed the Chair. The PRESIDING OFFICER. The Senator from New Jersey. Mr. LAUTENBERG. Madam President, I oppose the Gramm amendment. The amendment would radically change current budget rules by allowing temporary, unspecified cuts in discretionary programs to pay for permanent tax cuts. That would violate the bipartisan budget agreement and could explode the deficit in the future. This amendment also brings back the discredited Gramm-Rudman system of automatic across-the-board cuts, the system that led to a proliferation of gimmicks and rosy scenarios, and we didn't significantly reduce the deficit until we got rid of it. Madam President, fool me once, shame on you; fool me twice, shame on us. I yield the remainder of my time to my colleague from New Mexico. The PRESIDING OFFICER. The Senator from New Mexico. Mr. DOMENICI. Madam President, Gramm-Rudman-Hollings didn't work before, and it won't work the next time. The Senator from Texas would like to put back into effect Gramm-Rudman-Hollings automatic sequesters if you miss your targets. As a Senator, I personally don't believe you ought to offset appropriated accounts, to cut them to put in permanent tax cuts. I think that deserves far more consideration than 30 seconds on the floor of the Senate. Mr. LAUTENBERG. Madam President, I raise a point of order that the pending amendment is extraneous and violates section 313(b)(1)(A) of the Congressional Budget Act. [[Page S6674]] The PRESIDING OFFICER. If the Senator will withhold, the clerk will first report the amendment. The bill clerk read as follows: The Senator from Texas [Mr. Gramm] proposes an amendment numbered 566. Mr. GRAMM. Madam President, I ask unanimous consent that the reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the appropriate place, add the following: SEC. . GUARANTEED BALANCED BUDGET. (a) Maximum Deficit Amount.--Section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended-- (1) in subsection (b), in the last sentence by striking the period and inserting ``and $10,000,000,000 for fiscal years 1998 and thereafter.''; and (2) by striking subsections (g) and (h) and inserting the following: ``(g) Maximum Deficit Amount.--In this section-- ``(1) Notwithstanding any provision of this or the term `deficit' shall have the same meaning as the term `deficit' in section 3(6) of the Congressional Budget and Impoundment Control Act of 1974 as on the day before the date of enactment of the Budget Enforcement Act of 1990; and ``(2) the term `maximum deficit amount' means-- ``(A) with respect to fiscal year 1998, $90,500,000,000; ``(B) with respect to fiscal year 1999, $89,500,000,000; ``(C) with respect to fiscal year 2000, $82,900,000,000; ``(D) with respect to fiscal year 2001, $53,100,000,000; ``(E) with respect to fiscal year 2002 and fiscal years thereafter, zero.'' (b) Look-Back Sequester.--Section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end thereof the following new subsection: ``(h) Look-Back Sequester.-- ``(1) In general.--On July 1 of each fiscal year, the Director of OMB shall determine if laws effective during the current fiscal year will cause the deficit to exceed the maximum deficit amount for such fiscal year. If the limit is exceeded, there shall be a preliminary sequester of July 1 to eliminate the excess. ``(2) Permanent sequester.--Budget authority sequestered on July 1 pursuant to paragraph (1) shall be permanently canceled on July 15. ``(3) No margin.--The margin for determining a sequester under this subsection shall be zero. ``(4) Squestration procedures.--The provision of subsections (c), (d), and (e) of this section shall apply to a sequester under this subsection.'' (c) Offsetting Tax Cuts With Cuts in Discretionary Spending.--Section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following: ``(f) Offsets With Discretionary Spending.--For purposes of subsection (b), revenue reductions increasing the deficit may be offset by reductions in discretionary appropriated amounts reducing the deficit.''. (d) Adjustment of Discretionary Spending Levels for Tax Cuts.--Section 251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following: ``(I) Tax relief adjustments.--If, for any fiscal year or years, appropriations for discretionary appropriations are reduced that Congress and the President designate in statute as offsets for tax relief, the adjustments shall be the total amount of such reductions in appropriations in discretionary accounts and the outlays flowing in all years from such reduction.'' (e) Notwithstanding, any provision of this or any other Act, section 253 of the Balanced Budget and Emergency Deficit Control Act is extended through fiscal year 2002. The PRESIDING OFFICER. The Senator from Texas. Mr. GRAMM. Madam President, under section 904 of the Budget Act, I move to waive the point of order against the pending amendment, and I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive the Budget Act with respect to amendment No. 566. The yeas and nays have been ordered. The clerk will call the roll. The legislative clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The yeas and nays resulted--yeas 37, nays 63, as follows: [Rollcall Vote No. 142 Leg.] YEAS--37 Abraham Allard Ashcroft Bond Brownback Coats Collins Coverdell Craig Enzi Faircloth Frist Gramm Grams Grassley Gregg Hagel Hatch Helms Hollings Hutchinson Hutchison Inhofe Kempthorne Kyl Lott Mack McCain McConnell Nickles Santorum Sessions Shelby Smith (NH) Thomas Thompson Thurmond NAYS--63 Akaka Baucus Bennett Biden Bingaman Boxer Breaux Bryan Bumpers Burns Byrd Campbell Chafee Cleland Cochran Conrad D'Amato Daschle DeWine Dodd Domenici Dorgan Durbin Feingold Feinstein Ford Glenn Gorton Graham Harkin Inouye Jeffords Johnson Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Lugar Mikulski Moseley-Braun Moynihan Murkowski Murray Reed Reid Robb Roberts Rockefeller Roth Sarbanes Smith (OR) Snowe Specter Stevens Torricelli Warner Wellstone Wyden The PRESIDING OFFICER. On this vote the yeas are 37, the nays are 63. Three-fifths of the Senators duly chosen and sworn not having voted in the affirmative, the motion is rejected. The point of order is sustained, and the amendment falls. Mr. ROTH. I move to reconsider the vote. Mr. MOYNIHAN. I move to lay that motion on the table. The motion to lay on the table was agreed to. The PRESIDING OFFICER. Under the previous order, the Senator from Arkansas is recognized to offer an amendment on which there will be 2 minutes of debate equally divided. The Senator from Arkansas. Amendment No. 568 (Purpose: To prohibit the scoring, for budget purposes, of revenues associated with the sale of certain federal lands) Mr. BUMPERS. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report the amendment. The bill clerk read as follows: The Senator from Arkansas [Mr. Bumpers] proposes an amendment numbered 568. Mr. BUMPERS. Madam President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the appropriate place add the following: ``(f) Budgetary Treatment of Sales of Certain Federal Lands.--The amounts realized from the sale or lease of lands or interests in lands which are part of the National Park System, the Forest Service System or the U.S. Fish and Wildlife refuge system shall not be scored with respect to the level of budget authority, outlays, or revenues.'' Mr. BUMPERS. Madam President, this amendment will prohibit the scoring of the sale of any lands from a national park or a national wildlife refuge or Forest Service lands. To my colleagues, I want to say, I have witnessed over the past 10 years an irresistible urge on the part of some of my colleagues to dispose of some of the national treasures of this country, even suggesting a commission to determine which lands, which national parks, we can do without and sell. This amendment is designed to do two things. No. 1, it is designed to discourage that by making it impossible to score the proceeds from a sale of national parks, Forest Service lands, or wildlife refuges in a reconciliation bill; and, No. 2, I want to say that I think it is a terrible practice. When I was Governor, I never allowed a one-time asset to be used in the budget. Finally, to those who would say, well, this will keep us from leasing ANWR, that is simply not true. You can lease ANWR. You can lease anything, wildlife refuge or otherwise, but you cannot use it as an asset in the reconciliation bill. I yield back such time as I may have. The PRESIDING OFFICER. The Senator from New Mexico is recognized. Mr. DOMENICI. Madam President, fellow Senators, the bipartisan budget agreement and the Domenici-Lautenberg amendment revised the asset sale scoring rule. The new rule prohibits scoring asset sales that would lead to a financial loss to the Government. Much work has gone into this. Democrats and Republicans have worked on it. Senator Bumpers wants to make a special exception for public lands. [[Page S6675]] Let me suggest the awesome situation that he has talked about never has happened in the U.S. Senate. We have never tried to sell national parks. We have never had any commission to sell national parks. Somebody in the House had a wild idea, and, frankly, that is never going to happen here. As a matter of fact, this amendment, what we have already adopted, says that if there is any financial loss to the Government, you cannot count an asset sale. I make a point of order against the Bumpers amendment. It violates section 313 of the Budget Act. Mr. BUMPERS. Madam President, I move to waive the Budget Act for Senate consideration of my amendment. I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question occurs on agreeing to the motion to waive the Budget Act. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The yeas and nays resulted--yeas 48, nays 52, as follows: [Rollcall Vote No. 143 Leg.] YEAS--48 Akaka Biden Bingaman Boxer Bryan Bumpers Byrd Chafee Cleland Collins Conrad Daschle Dodd Dorgan Durbin Feingold Ford Glenn Graham Gregg Harkin Hollings Inouye Jeffords Johnson Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Mikulski Moseley-Braun Moynihan Murray Reed Reid Robb Rockefeller Sarbanes Snowe Specter Torricelli Wellstone Wyden NAYS--52 Abraham Allard Ashcroft Baucus Bennett Bond Breaux Brownback Burns Campbell Coats Cochran Coverdell Craig D'Amato DeWine Domenici Enzi Faircloth Feinstein Frist Gorton Gramm Grams Grassley Hagel Hatch Helms Hutchinson Hutchison Inhofe Kempthorne Kyl Lott Lugar Mack McCain McConnell Murkowski Nickles Roberts Roth Santorum Sessions Shelby Smith (NH) Smith (OR) Stevens Thomas Thompson Thurmond Warner The PRESIDING OFFICER. On this question, the yeas are 47, the nays are 52. Three-fifths of the Senators duly chosen and sworn not having voted in the affirmative, the motion is rejected, the point of order is sustained, and the amendment falls. Mr. ROTH. I move to reconsider the vote. Mr. MOYNIHAN. I move to lay it on the table. The motion to lay on the table was agreed to. Amendment No. 569 (Purpose: To modify the pay-as-you-go requirement of the budget process to prohibit the use of tax increases to pay for mandatory spending increases) The PRESIDING OFFICER. Under the previous order, the Senator from Idaho is recognized to offer an amendment on which there will be 2 minutes of debate equally divided. Mr. CRAIG. Madam President, I send an amendment to the desk. The PRESIDING OFFICER (Mr. Enzi). The clerk will report. The legislative clerk read as follows: The Senator from Idaho [Mr. Craig] proposes an amendment numbered 569. Mr. CRAIG. I ask unanimous consent the reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the appropriate place insert the following: SEC. . RESTRICTION ON THE USE OF TAX INCREASES. (a) In General.--In the Senate, for purposes of section 202 of House Concurrent Resolution 67 (104th Congress), it shall not be in order to consider any bill, joint resolution, amendment, motion, or conference report that provides an increase in direct spending offset by an increase in receipts. (b) Waiver.--This section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn. (c) Appeals.--Appeals in the Senate from the decisions of the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the concurrent resolution, bill, or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under this section. (d) Determination of Budget Levels.--For purposes of this section, the levels of direct spending and receipts for a fiscal year shall be determined on the basis of estimates made by the Committee on the Budget of the Senate. Mr. CRAIG. Mr. President, my amendment would change the current pay- go procedures by establishing a 60-vote point of order against using tax increases to pay for new mandatory spending increases. My amendment is the first step toward reining in the uncontrolled costs of mandatory spending programs that I believe threaten our fiscal future. This budget should have gone further in entitlement reform and it should not have added more entitlement spending, but there is one reform that should be made definitely, and that is to cause no further harm. My amendment will not affect a single current beneficiary of a single existing entitlement program. My amendment will not affect a single person who will qualify to become a beneficiary under the current requirements of any existing entitlement program. My amendment will not prevent the creation of a new entitlement program if there is a true need for the program. It simply will require that such a need be truly demonstrated. My amendment will not prevent a tax increase that is used for deficit reduction. What my amendment will do is put an end to the fiction that tax increases are capable of offsetting the cost of additional mandatory spending. Mr. LAUTENBERG addressed the Chair. The PRESIDING OFFICER. The Senator from New Jersey is recognized. Mr. LAUTENBERG. Mr. President, I rise to oppose the Craig amendment. The amendment would change the pay-go system and mean that we could not provide for health insurance to children by closing unnecessary tax loopholes. You heard it from the Senator directly. This is outrageous. It would undermine our efforts to ensure that all of the 10 million children who lack health coverage in this country can have it. There are already budget rules that limit the use of savings that come from tax loopholes. This amendment would go much farther and make it tougher to invest in children's health programs. If you vote for the Craig amendment, you are voting to protect tax loopholes. If you vote against it, you are voting to help children obtain health insurance in the future. The PRESIDING OFFICER. All time is expired. Mr. LAUTENBERG. Mr. President, I raise a point of order that the pending amendment is extraneous and violates section 313(b)(1)(A) of the Congressional Budget Act. Mr. CRAIG. Mr. President, under section 904 of the Budget Act, I move to waive the point of order against the pending amendment, and I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a such second. The yeas and nays were ordinary had. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question occurs on agreeing to the motion to waive the Budget Act. The yeas and nays have been ordered. The clerk will call the roll. The assistant legislative clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The yeas and nays resulted--yeas 42, nays 58, as follows: [Rollcall Vote No. 144 Leg.] YEAS--42 Abraham Allard Ashcroft Bennett Brownback Campbell Coats Coverdell Craig D'Amato Enzi Faircloth Frist Gramm Grams Grassley Gregg Hagel Hatch Helms Hutchinson Hutchison Inhofe Kempthorne Kyl Lott Mack McCain McConnell Murkowski Nickles Roberts Roth [[Page S6676]] Santorum Sessions Shelby Smith (NH) Stevens Thomas Thompson Thurmond Warner NAYS--58 Akaka Baucus Biden Bingaman Bond Boxer Breaux Bryan Bumpers Burns Byrd Chafee Cleland Cochran Collins Conrad Daschle DeWine Dodd Domenici Dorgan Durbin Feingold Feinstein Ford Glenn Gorton Graham Harkin Hollings Inouye Jeffords Johnson Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Lugar Mikulski Moseley-Braun Moynihan Murray Reed Reid Robb Rockefeller Sarbanes Smith (OR) Snowe Specter Torricelli Wellstone Wyden The PRESIDING OFFICER. On this vote, the yeas are 42, the nays are 58. Three-fifths of the Senators duly chosen and sworn not having voted in the affirmative, the motion is rejected. The point of order is sustained, and the amendment fails. Mr. ROTH. Mr. President, I move to reconsider the vote by which the motion was rejected. Mr. MOYNIHAN. I move to lay that motion on the table. The motion to lay on the table was agreed to. Amendment No. 570 (Purpose: To establish procedures to ensure a balanced Federal budget by fiscal year 2002) The PRESIDING OFFICER. Under the previous order, the Senator from Kansas is recognized to offer an amendment on which there are 2 minutes of debate equally divided. Mr. BROWNBACK. Mr. President, I have an amendment at the desk in the second-degree. The PRESIDING OFFICER. The clerk will report. The legislative clerk read as follows: The Senator from Kansas [Mr. Brownback], for himself, Mr. Kohl, and Mr. McCain, proposes an amendment numbered 570. Mr. BROWNBACK. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --BUDGET CONTROL SEC. 01. SHORT TITLE; PURPOSE. (a) Short Title.--This title may be cited as the ``Bipartisan Budget Enforcement Act of 1997''. (b) Purpose.--The purpose of this title is-- (1) to ensure a balanced Federal budget by fiscal year 2002; (2) to ensure that the Bipartisan Budget Agreement is implemented; and (3) to create a mechanism to monitor total costs of direct spending programs, and, in the event that actual or projected costs exceed targeted levels, to require the President and Congress to address adjustments in direct spending. SEC.--02. ESTABLISHMENT OF DIRECT SPENDING TARGETS. (a) In General.--The initial direct spending targets for each of fiscal years 1998 through 2002 shall equal total outlays for all direct spending except net interest as determined by the Director of the Office of Management and Budget (hereinafter referred to in this title as the ``Director'') under subsection (b). (b) Initial Report by Director.-- (1) In General.--Not later than 30 days after the date of enactment of this title, the Director shall submit a report to Congress setting forth projected direct spending targets for each of fiscal years 1998 through 2002. (2) Projections and assumptions.--The Director's projections shall be based on legislation enacted as of 5 days before the report is submitted under paragraph (1). The Director shall use the same economic and technical assumption used in preparing the concurrent resolution on the budget for fiscal year 1998 (H.Con.Res. 84). SEC.--03. ANNUAL REVIEW OF DIRECT SPENDING AND RECEIPTS BY PRESIDENT. As part of each budget submitted under section 1105(a) of title 31, United States Code, the President shall provide an annual review of direct spending and receipts, which shall include-- (1) information on total outlays for programs covered by the direct spending targets, including actual outlays for the prior fiscal year and projected outlays for the current fiscal year and the 5 succeeding fiscal years; and (2) information on the major categories of Federal receipts, including a comparison between the levels of those receipts and the levels projected as of the date of enactment of this title. SEC.--04. SPECIAL DIRECT SPENDING MESSAGE BY PRESIDENT. (a) Trigger.--If the information submitted by the President under section----03 indicates-- (1) that actual outlays for direct spending in the prior fiscal year exceeded the applicable direct spending target; or (2) that outlays for direct spending for the current or budget year are projected to exceed the applicable direct spending targets, the President shall include in his budget a special direct spending message meeting the requirements of subsection (b). (b) Contents.-- (1) Inclusions.--The special direct spending message shall include-- (A) an analysis of the variance in direct spending over the direct spending targets; and (B) the President's recommendations for addressing the direct spending overages, if any, in the prior, current, or budget year. (2) Additional matters.--The President's recommendations may consist of any of the following: (A) Proposed legislative changes to recoup or eliminate the overage for the prior, current, and budget years in the current year, the budget year, and the 4 outyears. (B) Proposed legislative changes to recoup or eliminate part of the overage for the prior, current, and budget year in the current year, the budget year, and the 4 outyears, accompanied by a finding by the President that, because of economic conditions or for other specified reasons, only some of the overage should be recouped or eliminated by outlay reductions or revenue increases, or both. (C) A proposal to make no legislative changes to recoup or eliminate any overage, accompanied by a finding by the President that, because of economic conditions or for other specified reasons, no legislative changes are warranted. (c) Proposed Special Direct Spending Resolution.--If the President recommends reductions consistent with subsection (b)(2)(A) or (B), the special direct spending message shall include the text of a special direct spending resolution implementing the President's recommendations through reconciliation directives instructing the appropriate committees of the House of Representatives and Senate to determine and recommend changes in laws within their jurisdictions. If the President recommends no reductions pursuant to (b)(2)(C), the special direct spending message shall include the text of a special resolution concurring in the President's recommendation of no legislative action. SEC. . REQUIRED RESPONSE BY CONGRESS. (a) In General.--It shall not be in order in the House of Representatives or the Senate to consider a concurrent resolution on the budget unless that concurrent resolution fully addresses the entirety of any overage contained in the applicable report of the President under section ____04 through reconciliation directives. (b) Waiver and Suspension.--This section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn. This section shall be subject to the provisions of section 258 of the Balanced Budget and Emergency Deficit Control Act of 1985. (c) Appeals.--Appeals in the Senate from the decisions of the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the bill or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under this section. SEC. 06. RELATIONSHIP TO BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT. Reductions in outlays or increases in receipts resulting from legislation reported pursuant to section ____05 shall not be taken into account for purposes of any budget enforcement procedures under the Balanced Budget and Emergency Deficit Control Act of 1985. SEC. 07. ESTIMATING MARGIN. For any fiscal year for which the overage is less than one- half of 1 percent of the direct spending target for that year, the procedures set forth in sections ____04 and ____05 shall not apply. SEC. 08. EFFECTIVE DATE. This title shall apply to direct spending targets for fiscal years 1998 through 2002 and shall expire at the end of fiscal year 2002. Mr. BROWNBACK. Mr. President, Senator Kohl and I have offered this amendment. It is a very, very simple amendment. It just says if we are going to break the spending caps on this bill, on this budget agreement that we've told the American people is going to balance the budget, if we're going to break the spending limits on it, we have to vote on it. And we have to vote and pass that by a 60-vote margin. That's it. The President has to say how he is going to get us to a balanced budget. If we're going to break that cap, he has to say how he is going to get us to a balanced budget; if we're going to break that spending cap, he has to say where we're going to make the spending cuts, and we have to vote if we are going to break it. I think this is the least we can do for the American people. It says, ``Folks, [[Page S6677]] we meant it when we said we were going to balance the budget. We meant it when we said we're going to balance it by the year 2002.'' And if we are going to break it, we've got to break it by a 60-vote margin. I yield the remainder of my time to Senator Kohl. Mr. KOHL. Thank you. Mr. President, I also am a supporter of this amendment. What it simply says is that we are going to do what we set out to do, which is to balance the budget, and, if we go over it in any year, then we are going to have to decide how we are going to reduce that spending to be sure we stay on target to get the budget balanced over the next several years. That is all this does. It is not a sequester. Nobody should fear that. But it is simply an enforcement mechanism which is necessary. Mr. LAUTENBERG. Mr. President, this amendment is a fast-track ticket to deep cuts in Medicare and Medicaid. It would essentially create a cap for these and other essential mandatory programs like the Medicare and Medicaid. Mr. President, we ought not punish the people who are on Medicaid or Medicare just because these programs grow faster than a particular rate. Sometimes growth in these programs could be good. For example, the first reconciliation bill includes money to recruit 3 million uninsured Medicaid-eligible children to sign up for the program. If this happens, obviously Medicaid spending is going to increase. But the question is, What do we want to do? Do we want to take care of those kids or don't we? This would not be a good reason to cut the program. This is a dangerous gimmick. We can balance the budget without it. Furthermore, we ought not accept an amendment that could force quick, drastic cuts in Medicare and Medicaid. I urge my colleagues to oppose this amendment to protect Medicare and Medicaid. Mr. President, I raise a point of order that the pending amendment is extraneous and violates section 313(b)(1)(A) of the Congressional Budget Act. Mr. BROWNBACK. Mr. President, I make a motion to waive the Budget Act with respect to my amendment, and I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second question? There is a sufficient second. The yeas and nays were ordered. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question occurs on the motion to waive the Budget Act. The yeas and nays have been ordered. The clerk will call the roll. The legislative clerk called the roll. The yeas and nays resulted-- yeas 57, nays 43, as follows: [Rollcall Vote No. 145 Leg.] YEAS--57 Abraham Allard Ashcroft Bennett Bond Brownback Burns Campbell Chafee Coats Cochran Collins Coverdell Craig D'Amato DeWine Domenici Enzi Faircloth Frist Gorton Gramm Grams Grassley Gregg Hagel Hatch Helms Hutchinson Hutchison Inhofe Jeffords Kempthorne Kohl Kyl Lott Lugar Mack McCain McConnell Murkowski Nickles Robb Roberts Roth Santorum Sessions Shelby Smith (NH) Smith (OR) Snowe Specter Stevens Thomas Thompson Thurmond Warner NAYS--43 Akaka Baucus Biden Bingaman Boxer Breaux Bryan Bumpers Byrd Cleland Conrad Daschle Dodd Dorgan Durbin Feingold

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REVENUE RECONCILIATION ACT OF 1997
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[Pages S6670-S6720] REVENUE RECONCILIATION ACT OF 1997 The PRESIDING OFFICER. Under the previous order, the Senate will now resume consideration of Senate bill 949, which the clerk will report. The assistant legislative clerk read as follows: A bill (S. 949) to provide revenue reconciliation pursuant to section 104(b) of the concurrent resolution on the budget for fiscal year 1998. The Senate resumed consideration of the bill. Pending: Dorgan amendment No. 515, to authorize the Secretary of the Treasury to abate the accrual of interest on income tax underpayments by taxpayers located in Presidentially declared disaster areas if the Secretary extends the time for filing returns and payment of tax (and waives any penalties relating to the failure to so file or so pay) for such taxpayers. Dorgan Amendment No. 516, to provide tax relief for taxpayers located in Presidentially declared disaster areas. Jeffords amendment No. 522, to provide for a trust fund for District of Columbia school renovations. Domenici-Lautenberg amendment No. 537, to implement the enforcement provisions of the Bipartisan Budget Agreement, enforce the Balanced Budget Act of 1997, extend the Budget Enforcement Act of 1990 through fiscal year 2002, and make technical and conforming changes to the Congressional Budget and Impoundment Control Act of 1974 and the Balanced Budget and Emergency Deficit Control Act of 1985. Biden amendment No. 539 (to amendment No. 537), to provide for the transfer of funds from the general fund to the Violent Crime Reduction Trust Fund. Nickles modified amendment No. 551, to provide for an increase in deduction for health insurance costs of self- employed individuals, and to modify rules for allocating interest expense to tax-exempt interest. Gramm amendment No. 552, to allow families to decide for themselves how best to use their child tax credit. Kerry amendment No. 554, to allow payroll taxes to be included in the calculation of tax liability for receiving the children's tax credit. Amendment No. 551, as Modified The PRESIDING OFFICER. The pending business is the Nickles amendment No. 551, with 2 minutes equally divided for debate. Mr. NICKLES. Mr. President, on behalf of myself, Senator Hagel, Senator Abraham, Senator Domenici, and others, the amendment that we proposed last night we have modified. We did receive some requests from Senators to delete the provision that dealt with corporate deductibility of tax exempts. That was not a major portion of the amendment. We did delete that. I might mention I think it is a good provision. It is a provision that is in the House bill, so it will be in conference. Mr. President, this amendment accelerates self-employed deductibility for insurance. It allows self-employed individuals to be able to deduct a greater proportion of their health insurance needs. It increases it. For example, in 1997, current law is 40 percent; it increases it to 50 percent. In 1999 it increases it to 60 percent. And so on. Mr. President, I ask for the yeas and nays on the amendment. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Mr. KERREY. I am not in opposition, but with the 2-percent provision stricken, I ask unanimous consent to be added as a cosponsor to this amendment. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. NICKLES. I also ask unanimous consent that Senator Thurmond be added as a cosponsor. The PRESIDING OFFICER. Without objection, it is so ordered. The question is on agreeing to the amendment. The yeas and nays have been ordered. The clerk will call the roll. The assistant legislative clerk called the roll. Mr. NICKLES. I announce that the Senator from Kansas [Mr. Roberts] is necessarily absent. Mr. FORD. I announce that the Senator from Illinois [Ms. Moseley- Braun] is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The result was announced--yeas 98, nays 0, as follows: [Rollcall Vote No. 138 Leg.] YEAS--98 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Bumpers Burns Byrd Campbell Chafee Cleland Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle DeWine Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Glenn Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hatch Helms Hollings Hutchinson Hutchison Inhofe Inouye Jeffords Johnson Kempthorne Kennedy Kerrey Kerry Kohl Kyl Landrieu Lautenberg Leahy Levin Lieberman Lott Lugar Mack McCain McConnell Mikulski Moynihan Murkowski Murray Nickles Reed Reid Robb Rockefeller Roth Santorum Sarbanes Sessions Shelby Smith (NH) Smith (OR) Snowe Specter Stevens Thomas Thompson Thurmond Torricelli Warner Wellstone Wyden NOT VOTING--2 Moseley-Braun Roberts The amendment (No. 551), as modified, was agreed to. Mr. ROTH. Mr. President, I move to reconsider the vote by which the amendment was agreed to. Mr. LOTT. I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. LOTT addressed the Chair. The PRESIDING OFFICER. The majority leader. Mr. LOTT. Mr. President, I ask unanimous consent that the remaining votes in sequence be limited to 10 minutes in length. The PRESIDING OFFICER. Is there objection? Mr. REID. Mr. President, reserving the right to object, is this going to be a real 10 minutes? Mr. LOTT. Mr. President, I can respond to that question. I was just fixing to say that the 10 minutes be strictly enforced. Please don't leave the Chamber. We just had a couple of Senators that didn't make that vote because it had been beyond the normal time. When the 10 minutes is up we are going to turn it in. [[Page S6671]] The PRESIDING OFFICER. Without objection, it is so ordered. Mr. ROTH. Mr. President, I have a further unanimous consent. Mr. President, I am asking unanimous consent that following the previously ordered stacked vote that the remainder of the sequence be in an alternating fashion with the two managers determining the order. The PRESIDING OFFICER. Is there objection? Without objection, it is so ordered. Mr. ROTH. Mr. President, I ask unanimous consent that following the disposition of the Kerry amendment No. 554 that Senator Domenici be recognized to offer an amendment No. 537, to be followed by the amendments in the following order: Biden-Gramm, Gramm, Bumpers, Craig, Brownback, Frist, Abraham, and Byrd. The PRESIDING OFFICER. Without objection, it is so ordered. Amendment No. 552 Mr. ROTH. Mr. President, what is the order of business before us? The PRESIDING OFFICER. The pending amendment is the Gramm of Texas amendment No. 552. Mr. ROTH. I yield the floor. The PRESIDING OFFICER. The debate is limited to 2 minutes equally divided. The Senator from Texas. Mr. GRAMM. Mr. President, from the very beginning of this tax debate we have talked about a $500 tax credit per child. And the logic has been to let working families decide how to spend their money on their children. Then suddenly out of the Finance Committee on a very close vote has come a provision that says we are going to give you a $500 tax credit but you get it only if you use it the way we determine you should use it, which is to have an educational IRA. I think educational IRAs are wonderful, if you can afford them. But the whole purpose of the $500 tax credit was to let working families decide. I know the Senate is full of brilliant people, and we think we can decide things for families better than they can. But that violates the agreement we had with the American people on this bill. We hear every time an issue is debated that this violates the commitment to the Congress, or it violates the commitment to the President. This provision violates the commitment to the American people, and all of us talk about a $500 tax credit. We talk about parents choosing. Let's let them choose. Mr. ROTH addressed the Chair. The PRESIDING OFFICER. There is 1 minute to the opposition. Mr. ROTH. Mr. President, I strongly oppose this amendment. We had two goals in this legislation: To provide tax relief to the family, to provide assistance for higher education to the families, and this carefully crafted compromise does exactly that. I yield what time is remaining to the Senator from Louisiana. The PRESIDING OFFICER. The Senator from Louisiana. Mr. BREAUX. The problem of bringing up the amendment is there is no requirement that the tax credit be used for the child. This is a per- child tax credit. We think there should be at least some encouragement that it be used for the child. Mr. KERREY. Mr. President, this provision would change American families with children, and it will generate more wealth. It is good for American families. We have been talking about it. In addition to the child tax credit, there are a number of us--Republicans and Democrats--talking about ways to make this tax credit a vehicle for generating wealth for the last few years. It is a good provision. I hope my colleagues will vote against the motion to strike. The PRESIDING OFFICER. The time has expired. Mr. ROTH. I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. The question is on agreeing to the amendment of the Senator from Texas. On this question, the yeas and nays have been ordered, and the clerk will call the roll. The legislative clerk called the roll. The result was announced--yeas 46, nays 54, as follows: [Rollcall Vote No. 139 Leg.] YEAS--46 Abraham Akaka Allard Ashcroft Bond Brownback Burns Campbell Coats Collins Conrad Coverdell D'Amato DeWine Domenici Dorgan Enzi Faircloth Frist Gramm Grams Hagel Helms Hutchinson Hutchison Inhofe Johnson Kempthorne Kyl Lugar McCain McConnell Murkowski Nickles Roberts Santorum Sessions Shelby Smith (NH) Smith (OR) Snowe Thomas Thompson Thurmond Warner Wellstone NAYS--54 Baucus Bennett Biden Bingaman Boxer Breaux Bryan Bumpers Byrd Chafee Cleland Cochran Craig Daschle Dodd Durbin Feingold Feinstein Ford Glenn Gorton Graham Grassley Gregg Harkin Hatch Hollings Inouye Jeffords Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Lott Mack Mikulski Moseley-Braun Moynihan Murray Reed Reid Robb Rockefeller Roth Sarbanes Specter Stevens Torricelli Wyden The amendment (No. 552) was rejected. Mr. ROTH. Mr. President, I move to reconsider the vote. Mr. SANTORUM. I move to lay that motion on the table. The motion to lay on the table was agreed to. The PRESIDING OFFICER. May we have order, please. Mr. ROTH. Mr. President, what is the pending order? Mr. MOYNIHAN. Mr. President, we must have order. The PRESIDING OFFICER. We will not proceed until there is order in the Chamber. Amendment No. 554 The PRESIDING OFFICER. The pending question is on the Kerry of Massachusetts amendment No. 554. Mr. ROTH. Mr. President, I yield the floor. Mr. KERRY. Mr. President, may we have order. The PRESIDING OFFICER. Two minutes equally divided. The Senator from Massachusetts. Mr. KERRY. May we have order, Mr. President. The PRESIDING OFFICER. May we have order, please. Mr. KERRY. Mr. President, we just heard the Senator from Texas talk about getting a child tax credit for children. Under the child tax credit as it is written in the Finance Committee bill, 99 percent of the children eligible in the lowest 20 percent of income will not get it; 86 percent of the children in the next quintile will not get it. This is because, as we all know, most people in America pay their taxes by the payroll tax. What I do in my amendment is take the Contract With America provision that was supported by Senator Gramm, Senator Lott, and Senator Coats and apply a refundable tax credit so that we expand by 7 million the number of children who will be given a tax credit. If we really want the working people of America to get this credit, it is appropriate that a working family that is earning $22,000 with two parents and two children be able to get the credit. Under the current legislation, they would not get the credit. The PRESIDING OFFICER. The Senator's time has expired. Mr. KERRY. Only by the Contract With America provision can we expand the number of children. The PRESIDING OFFICER. One minute in opposition. The Senator from Oklahoma. Mr. NICKLES. Mr. President, I urge any colleagues to vote no on the Kerry amendment. This is really an amendment to make the credit refundable. Another way of saying that, this is a way for the Federal Government to spend more money. Costed out, the outlays will increase in this bill under this amendment by $22 billion over 5 years, by $47 billion over 10 years. I might mention, refundable credits are one of the most fraudulent in government. The EITC program has exploded. It has an error rate of over 25 percent. This is an amendment to redistribute wealth, and it denies tax credits for families that have incomes above $60,000. I urge my colleagues to vote no on this amendment. Mr. DOMENICI. Mr. President, I rise to make a point of order against the [[Page S6672]] amendment. It would increase outlays by $22 billion over 5 years, $47 billion over 10 years and it thus violates section 302(b) of the Budget Act. Mr. KERRY addressed the Chair. The PRESIDING OFFICER. The Senator from Massachusetts. Mr. KERRY. Mr. President, this is revenue neutral, and I move to waive the Budget Act to accept a revenue neutral amendment. The PRESIDING OFFICER. Does the Senator ask for the yeas and nays? Mr. ROTH. Yeas and nays. Mr. KERRY. I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The PRESIDING OFFICER. The yeas and nays were ordered. There are 2 minutes equally divided on this vote. The Senator from Massachusetts. Mr. KERRY. Mr. President, let me just say to my colleagues this does not cost one penny additional because we change the phase-in. It is $100,000 plus that you extended to the people in the Finance Committee. I put the phaseout at $65,000 to $70,000, and we phase in the children by age. So there is no impact on the budget. It is revenue neutral. Mr. NICKLES addressed the Chair. The PRESIDING OFFICER. May we have order, please. Mr. KERRY. And it extends it to 7 million additional children. You cannot say you are covering working children in America if a working family is not able to take advantage of the credits. The PRESIDING OFFICER. The time has expired. Mr. NICKLES addressed the Chair. The PRESIDING OFFICER. If we can all have order, please. The Senator from Oklahoma has 1 minute. Mr. NICKLES. Mr. President, I am advised by the Senator from New Mexico that the low-income family with two children under the EITC Program, if they have incomes of about $14,000, receive a refundable tax credit of $3,680, a lot more than their total tax liability. The Senator from Massachusetts wants to add to that and increase outlays by $22 billion. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER. The Senator from New Mexico. Mr. DOMENICI. Mr. President, there is a budget point of order, neutrality or no neutrality. The expenditures in this amendment exceed the expenditures that are allocated under the budget resolution, and the Budget Act says you cannot spend more than is allocated to the committee, regardless of whether it is neutral or not. Mr. BYRD. Mr. President, may we have order in the Chamber. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The Senate will be in order. The question is on agreeing to the motion to waive the point of order. The yeas and nays have been ordered. The clerk will call the roll. The assistant legislative clerk called the roll. Mr. FORD. I announce that the Senator from Illinois [Mr. Durbin] is necessarily absent. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The yeas and nays resulted--yeas 39, nays 60, as follows: [Rollcall Vote No. 140 Leg.] YEAS--39 Akaka Biden Bingaman Boxer Breaux Bumpers Cleland Coats Collins Conrad Daschle Dodd Dorgan Feingold Feinstein Ford Glenn Harkin Hollings Inouye Jeffords Johnson Kennedy Kerry Kohl Landrieu Lautenberg Leahy Levin Mikulski Murray Reed Reid Robb Sarbanes Specter Torricelli Wellstone Wyden NAYS--60 Abraham Allard Ashcroft Baucus Bennett Bond Brownback Bryan Burns Byrd Campbell Chafee Cochran Coverdell Craig D'Amato DeWine Domenici Enzi Faircloth Frist Gorton Graham Gramm Grams Grassley Gregg Hagel Hatch Helms Hutchinson Hutchison Inhofe Kempthorne Kerrey Kyl Lieberman Lott Lugar Mack McCain McConnell Moseley-Braun Moynihan Murkowski Nickles Roberts Rockefeller Roth Santorum Sessions Shelby Smith (NH) Smith (OR) Snowe Stevens Thomas Thompson Thurmond Warner NOT VOTING--1 Durbin The PRESIDING OFFICER. On this vote the nays are 60, the ayes are 39. Three-fifths of the Senators duly chosen and sworn not voting in the affirmative, the motion is rejected. The point of order is sustained and the amendment falls. Mr. ROTH. Mr. President, I move to reconsider the vote. Mr. MOYNIHAN. I move to lay that motion on the table. The motion to lay on the table was agreed to. Amendment No. 537 The PRESIDING OFFICER. The question now is on the Domenici amendment No. 537, to which the pending business is the second-degree amendment, No. 539. The Senator from New Mexico. Amendment No. 539 To Amendment No. 537 Mr. DOMENICI. I do not see Senator Biden on the floor but I do see Senator Gramm. Do you object if I modify my amendment to include your Biden-Gramm amendment, so when we vote on mine we would be taking yours with us? Mr. GRAMM. Why don't we put it on my amendment? Mr. DOMENICI. I will object. Do you object? Mr. GRAMM. No, being a sweet, wonderful person, I will not object. Mr. DOMENICI. Being that everyone in the Chamber would want it to happen, he agrees. The PRESIDING OFFICER. Is there objection? Hearing none, it is so ordered. The amendment (No. 539) was agreed to. Amendment No. 537, as Amended The PRESIDING OFFICER. There will be 2 minutes equally divided. Mr. DOMENICI. Mr. President, I am the proponent of the waiver at this point, so I get 1 minute for the waiver. All we have done here is taken current law, with reference to points of order and the processes that we have to enforce budgets, the pay-go, and what we put in is the 5-year caps which we did on the last 5-year budget. We only did 2 years on the defense wall instead of 5. That exists today. Mr. MOYNIHAN. Mr. President, we must have order. The PRESIDING OFFICER (Ms. Collins). The Senate will be in order. Mr. DOMENICI. So, in order to enforce the agreement that we are claiming is a balanced budget, we must adopt this amendment or it is unenforceable, in terms of the appropriated accounts. Mr. MOYNIHAN. Madam President, might I just take a moment to observe that, with no uproar, we are about to do something rather important. In this vote on budget procedures we are going to legislate a change in the inflation index used to update official calculations of baseline spending. Under section 257 of the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings), required inflation adjustments are made using a ``fixed-weight index'' produced by the Commerce Department's Bureau of Economic Analysis. Section 1559(a)(3), of the changes in budget enforcement procedures now before us, require that in the future the adjustments should be based on the ``domestic product chain-type price index''--also produced by the Bureau of Economic Analysis. Given the improvements in index number theory, this is a perfectly appropriate change. Might I also just remind my colleagues that the Department of Labor's Bureau of Labor Statistics compiles two other indexes used by the Government--CPI-U which is used to adjust provisions of the Tax Code and CPI-W which is used to adjust benefits such as Social Security. For the record I note that none of these indexes give the same estimate of inflation. Here are the numbers for 1996: [In percent] CPI-U...............................................................3.0 CPI-W...............................................................2.9 Fixed Weight Price Index............................................2.3 Chain Weight Price Index............................................2.1 Today's vote on budget procedures should be recalled when we return-- as we must--to the issue of producing an accurate cost of living index for the purpose of automatic indexation of [[Page S6673]] Government programs. No one is referring to today's legislative actions as ``politicizing'' the calculation of budget updates. We are just getting the numbers right. And no one should refer to legislating a correction in automatic indexation formulas as a ``political'' fix. The PRESIDING OFFICER. The Senator from Delaware. Mr. BIDEN. Madam President, I ask unanimous consent that Senators Hatch and Gregg be added as cosponsors to the amendment. The PRESIDING OFFICER. Without objection, it is so ordered. Mr. DOMENICI. Madam President, I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. The PRESIDING OFFICER. The Senator from Texas. Mr. GRAMM. Madam President, I would like the 1 minute on the Biden- Gramm second-degree amendment. The PRESIDING OFFICER. The 1 minute has expired. Mr. GRAMM. But we have a second-degree amendment that was added to the Domenici amendment by unanimous consent. We would like it. The PRESIDING OFFICER. The amendment has been accepted. All time has expired. Mr. DOMENICI. I ask consent that he gets 1 minute. It is fair. The PRESIDING OFFICER. Without objection, it is so ordered. The Senator from Texas. The Senate will be in order. Mr. GRAMM. Let me take 30 seconds and allow Senator Biden to have the other 30 seconds. Our colleagues will remember that we set up a violent crime trust fund to guarantee adequate funding for law enforcement, and for our antidrug effort. That provision was set to expire and all we are doing in this amendment is simply extending that trust fund. This is a mightily important matter. I am confident no one is going to oppose it. I simply wanted to make note of what we are doing. I yield the remainder of the time. Mr. BIDEN. Madam President, there is nothing to add. This is simply extending the extent, the life of this agreement--the existence of the trust fund. Vote On Amendment No. 537, As Amended The PRESIDING OFFICER. All time has expired. The question is on agreeing to the amendment. The yeas and nays have been ordered. The clerk will call the roll. The legislative clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber who desire to vote? The result was announced, yeas 98, nays 2, as follows: [Rollcall Vote No. 141 Leg.] YEAS--98 Abraham Akaka Allard Ashcroft Baucus Bennett Biden Bingaman Bond Boxer Breaux Brownback Bryan Burns Byrd Campbell Chafee Cleland Coats Cochran Collins Conrad Coverdell Craig D'Amato Daschle DeWine Dodd Domenici Dorgan Durbin Enzi Faircloth Feingold Feinstein Ford Frist Glenn Gorton Graham Gramm Grams Grassley Gregg Hagel Harkin Hatch Helms Hollings Hutchinson Hutchison Inhofe Inouye Jeffords Johnson Kempthorne Kennedy Kerrey Kerry Kohl Kyl Landrieu Lautenberg Leahy Levin Lieberman Lott Lugar Mack McCain McConnell Mikulski Moseley-Braun Moynihan Murkowski Murray Nickles Reed Reid Robb Roberts Rockefeller Roth Santorum Sarbanes Sessions Shelby Smith (NH) Smith (OR) Snowe Specter Stevens Thomas Thompson Thurmond Torricelli Warner Wyden NAYS--2 Bumpers Wellstone The amendment (No. 537), as amended, was agreed to. Mr. MOYNIHAN. Madam President, I move to reconsider the vote by which the amendment was agreed to. Mr. DOMENICI. I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. DOMENICI addressed the Chair. The PRESIDING OFFICER. The Senator from New Mexico. Mr. DOMENICI. Madam President, what actually happened on that vote, the Parliamentarian misunderstood and he had us vote up or down on this amendment, and I had asked that it be a waiver of the Budget Act. In light of the fact we have--how many votes? The PRESIDING OFFICER. Ninety-eight yeas. Mr. DOMENICI. I would like to clear the amendment and make sure we have waived the Budget Act for this amendment so it is no longer possible to raise a point of order against it. So I move to waive the Budget Act for consideration of this amendment to this bill and any conference report that returns with it in. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive the Budget Act with respect to amendment No. 539, as amended. The motion was agreed to. Mr. MOYNIHAN. Madam President, I move to reconsider the vote by which the motion was agreed to. Mr. ROTH. I move to lay that motion on the table. The motion to lay on the table was agreed to. Mr. ROTH. The next amendment is Senator Gramm's. The PRESIDING OFFICER. The Senator from Texas is recognized. Amendment No. 566 (Purpose: To guarantee a balanced Federal budget and expand tax relief options) Mr. GRAMM. Madam President, let me remind everybody that in the budget that we are enforcing here, we had $7 billion of net deficit reduction as compared to current policy. Ninety-seven percent of deficit reduction was simply assumed. That deficit reduction and policy changes has now fallen to $1 billion because we are short on spectrum. Everything we are doing in balancing the budget is based on assumptions. The only enforcement mechanism we now have is on discretionary spending, and the first act in considering this budget was waiving that discretionary spending cap in the last budget. My amendment sets out the deficit reduction targets that we have committed to and enforces them with an across-the-board cut if we refuse to meet them. Also, my provision says that in paying for a tax cut, you can pay for it by cutting entitlements, by raising other taxes or by lowering the discretionary spending caps. So it gives us the option in the future, if we ever do another tax cut, to not have to cut Medicare in order to pay for tax cuts, so that if we want to reduce discretionary spending and put a spending cap in place, we can do it. This budget has a lot of assumptions in it. We need as strong as possible an enforcement. If you want strong enforcement, vote for this amendment. The PRESIDING OFFICER. The Senator's time has expired. Mr. LAUTENBERG addressed the Chair. The PRESIDING OFFICER. The Senator from New Jersey. Mr. LAUTENBERG. Madam President, I oppose the Gramm amendment. The amendment would radically change current budget rules by allowing temporary, unspecified cuts in discretionary programs to pay for permanent tax cuts. That would violate the bipartisan budget agreement and could explode the deficit in the future. This amendment also brings back the discredited Gramm-Rudman system of automatic across-the-board cuts, the system that led to a proliferation of gimmicks and rosy scenarios, and we didn't significantly reduce the deficit until we got rid of it. Madam President, fool me once, shame on you; fool me twice, shame on us. I yield the remainder of my time to my colleague from New Mexico. The PRESIDING OFFICER. The Senator from New Mexico. Mr. DOMENICI. Madam President, Gramm-Rudman-Hollings didn't work before, and it won't work the next time. The Senator from Texas would like to put back into effect Gramm-Rudman-Hollings automatic sequesters if you miss your targets. As a Senator, I personally don't believe you ought to offset appropriated accounts, to cut them to put in permanent tax cuts. I think that deserves far more consideration than 30 seconds on the floor of the Senate. Mr. LAUTENBERG. Madam President, I raise a point of order that the pending amendment is extraneous and violates section 313(b)(1)(A) of the Congressional Budget Act. [[Page S6674]] The PRESIDING OFFICER. If the Senator will withhold, the clerk will first report the amendment. The bill clerk read as follows: The Senator from Texas [Mr. Gramm] proposes an amendment numbered 566. Mr. GRAMM. Madam President, I ask unanimous consent that the reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the appropriate place, add the following: SEC. . GUARANTEED BALANCED BUDGET. (a) Maximum Deficit Amount.--Section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended-- (1) in subsection (b), in the last sentence by striking the period and inserting ``and $10,000,000,000 for fiscal years 1998 and thereafter.''; and (2) by striking subsections (g) and (h) and inserting the following: ``(g) Maximum Deficit Amount.--In this section-- ``(1) Notwithstanding any provision of this or the term `deficit' shall have the same meaning as the term `deficit' in section 3(6) of the Congressional Budget and Impoundment Control Act of 1974 as on the day before the date of enactment of the Budget Enforcement Act of 1990; and ``(2) the term `maximum deficit amount' means-- ``(A) with respect to fiscal year 1998, $90,500,000,000; ``(B) with respect to fiscal year 1999, $89,500,000,000; ``(C) with respect to fiscal year 2000, $82,900,000,000; ``(D) with respect to fiscal year 2001, $53,100,000,000; ``(E) with respect to fiscal year 2002 and fiscal years thereafter, zero.'' (b) Look-Back Sequester.--Section 253 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end thereof the following new subsection: ``(h) Look-Back Sequester.-- ``(1) In general.--On July 1 of each fiscal year, the Director of OMB shall determine if laws effective during the current fiscal year will cause the deficit to exceed the maximum deficit amount for such fiscal year. If the limit is exceeded, there shall be a preliminary sequester of July 1 to eliminate the excess. ``(2) Permanent sequester.--Budget authority sequestered on July 1 pursuant to paragraph (1) shall be permanently canceled on July 15. ``(3) No margin.--The margin for determining a sequester under this subsection shall be zero. ``(4) Squestration procedures.--The provision of subsections (c), (d), and (e) of this section shall apply to a sequester under this subsection.'' (c) Offsetting Tax Cuts With Cuts in Discretionary Spending.--Section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following: ``(f) Offsets With Discretionary Spending.--For purposes of subsection (b), revenue reductions increasing the deficit may be offset by reductions in discretionary appropriated amounts reducing the deficit.''. (d) Adjustment of Discretionary Spending Levels for Tax Cuts.--Section 251(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 is amended by adding at the end the following: ``(I) Tax relief adjustments.--If, for any fiscal year or years, appropriations for discretionary appropriations are reduced that Congress and the President designate in statute as offsets for tax relief, the adjustments shall be the total amount of such reductions in appropriations in discretionary accounts and the outlays flowing in all years from such reduction.'' (e) Notwithstanding, any provision of this or any other Act, section 253 of the Balanced Budget and Emergency Deficit Control Act is extended through fiscal year 2002. The PRESIDING OFFICER. The Senator from Texas. Mr. GRAMM. Madam President, under section 904 of the Budget Act, I move to waive the point of order against the pending amendment, and I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question is on agreeing to the motion to waive the Budget Act with respect to amendment No. 566. The yeas and nays have been ordered. The clerk will call the roll. The legislative clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The yeas and nays resulted--yeas 37, nays 63, as follows: [Rollcall Vote No. 142 Leg.] YEAS--37 Abraham Allard Ashcroft Bond Brownback Coats Collins Coverdell Craig Enzi Faircloth Frist Gramm Grams Grassley Gregg Hagel Hatch Helms Hollings Hutchinson Hutchison Inhofe Kempthorne Kyl Lott Mack McCain McConnell Nickles Santorum Sessions Shelby Smith (NH) Thomas Thompson Thurmond NAYS--63 Akaka Baucus Bennett Biden Bingaman Boxer Breaux Bryan Bumpers Burns Byrd Campbell Chafee Cleland Cochran Conrad D'Amato Daschle DeWine Dodd Domenici Dorgan Durbin Feingold Feinstein Ford Glenn Gorton Graham Harkin Inouye Jeffords Johnson Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Lugar Mikulski Moseley-Braun Moynihan Murkowski Murray Reed Reid Robb Roberts Rockefeller Roth Sarbanes Smith (OR) Snowe Specter Stevens Torricelli Warner Wellstone Wyden The PRESIDING OFFICER. On this vote the yeas are 37, the nays are 63. Three-fifths of the Senators duly chosen and sworn not having voted in the affirmative, the motion is rejected. The point of order is sustained, and the amendment falls. Mr. ROTH. I move to reconsider the vote. Mr. MOYNIHAN. I move to lay that motion on the table. The motion to lay on the table was agreed to. The PRESIDING OFFICER. Under the previous order, the Senator from Arkansas is recognized to offer an amendment on which there will be 2 minutes of debate equally divided. The Senator from Arkansas. Amendment No. 568 (Purpose: To prohibit the scoring, for budget purposes, of revenues associated with the sale of certain federal lands) Mr. BUMPERS. Madam President, I send an amendment to the desk. The PRESIDING OFFICER. The clerk will report the amendment. The bill clerk read as follows: The Senator from Arkansas [Mr. Bumpers] proposes an amendment numbered 568. Mr. BUMPERS. Madam President, I ask unanimous consent that further reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the appropriate place add the following: ``(f) Budgetary Treatment of Sales of Certain Federal Lands.--The amounts realized from the sale or lease of lands or interests in lands which are part of the National Park System, the Forest Service System or the U.S. Fish and Wildlife refuge system shall not be scored with respect to the level of budget authority, outlays, or revenues.'' Mr. BUMPERS. Madam President, this amendment will prohibit the scoring of the sale of any lands from a national park or a national wildlife refuge or Forest Service lands. To my colleagues, I want to say, I have witnessed over the past 10 years an irresistible urge on the part of some of my colleagues to dispose of some of the national treasures of this country, even suggesting a commission to determine which lands, which national parks, we can do without and sell. This amendment is designed to do two things. No. 1, it is designed to discourage that by making it impossible to score the proceeds from a sale of national parks, Forest Service lands, or wildlife refuges in a reconciliation bill; and, No. 2, I want to say that I think it is a terrible practice. When I was Governor, I never allowed a one-time asset to be used in the budget. Finally, to those who would say, well, this will keep us from leasing ANWR, that is simply not true. You can lease ANWR. You can lease anything, wildlife refuge or otherwise, but you cannot use it as an asset in the reconciliation bill. I yield back such time as I may have. The PRESIDING OFFICER. The Senator from New Mexico is recognized. Mr. DOMENICI. Madam President, fellow Senators, the bipartisan budget agreement and the Domenici-Lautenberg amendment revised the asset sale scoring rule. The new rule prohibits scoring asset sales that would lead to a financial loss to the Government. Much work has gone into this. Democrats and Republicans have worked on it. Senator Bumpers wants to make a special exception for public lands. [[Page S6675]] Let me suggest the awesome situation that he has talked about never has happened in the U.S. Senate. We have never tried to sell national parks. We have never had any commission to sell national parks. Somebody in the House had a wild idea, and, frankly, that is never going to happen here. As a matter of fact, this amendment, what we have already adopted, says that if there is any financial loss to the Government, you cannot count an asset sale. I make a point of order against the Bumpers amendment. It violates section 313 of the Budget Act. Mr. BUMPERS. Madam President, I move to waive the Budget Act for Senate consideration of my amendment. I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a sufficient second. The yeas and nays were ordered. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question occurs on agreeing to the motion to waive the Budget Act. The yeas and nays have been ordered. The clerk will call the roll. The bill clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The yeas and nays resulted--yeas 48, nays 52, as follows: [Rollcall Vote No. 143 Leg.] YEAS--48 Akaka Biden Bingaman Boxer Bryan Bumpers Byrd Chafee Cleland Collins Conrad Daschle Dodd Dorgan Durbin Feingold Ford Glenn Graham Gregg Harkin Hollings Inouye Jeffords Johnson Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Mikulski Moseley-Braun Moynihan Murray Reed Reid Robb Rockefeller Sarbanes Snowe Specter Torricelli Wellstone Wyden NAYS--52 Abraham Allard Ashcroft Baucus Bennett Bond Breaux Brownback Burns Campbell Coats Cochran Coverdell Craig D'Amato DeWine Domenici Enzi Faircloth Feinstein Frist Gorton Gramm Grams Grassley Hagel Hatch Helms Hutchinson Hutchison Inhofe Kempthorne Kyl Lott Lugar Mack McCain McConnell Murkowski Nickles Roberts Roth Santorum Sessions Shelby Smith (NH) Smith (OR) Stevens Thomas Thompson Thurmond Warner The PRESIDING OFFICER. On this question, the yeas are 47, the nays are 52. Three-fifths of the Senators duly chosen and sworn not having voted in the affirmative, the motion is rejected, the point of order is sustained, and the amendment falls. Mr. ROTH. I move to reconsider the vote. Mr. MOYNIHAN. I move to lay it on the table. The motion to lay on the table was agreed to. Amendment No. 569 (Purpose: To modify the pay-as-you-go requirement of the budget process to prohibit the use of tax increases to pay for mandatory spending increases) The PRESIDING OFFICER. Under the previous order, the Senator from Idaho is recognized to offer an amendment on which there will be 2 minutes of debate equally divided. Mr. CRAIG. Madam President, I send an amendment to the desk. The PRESIDING OFFICER (Mr. Enzi). The clerk will report. The legislative clerk read as follows: The Senator from Idaho [Mr. Craig] proposes an amendment numbered 569. Mr. CRAIG. I ask unanimous consent the reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the appropriate place insert the following: SEC. . RESTRICTION ON THE USE OF TAX INCREASES. (a) In General.--In the Senate, for purposes of section 202 of House Concurrent Resolution 67 (104th Congress), it shall not be in order to consider any bill, joint resolution, amendment, motion, or conference report that provides an increase in direct spending offset by an increase in receipts. (b) Waiver.--This section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn. (c) Appeals.--Appeals in the Senate from the decisions of the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the concurrent resolution, bill, or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under this section. (d) Determination of Budget Levels.--For purposes of this section, the levels of direct spending and receipts for a fiscal year shall be determined on the basis of estimates made by the Committee on the Budget of the Senate. Mr. CRAIG. Mr. President, my amendment would change the current pay- go procedures by establishing a 60-vote point of order against using tax increases to pay for new mandatory spending increases. My amendment is the first step toward reining in the uncontrolled costs of mandatory spending programs that I believe threaten our fiscal future. This budget should have gone further in entitlement reform and it should not have added more entitlement spending, but there is one reform that should be made definitely, and that is to cause no further harm. My amendment will not affect a single current beneficiary of a single existing entitlement program. My amendment will not affect a single person who will qualify to become a beneficiary under the current requirements of any existing entitlement program. My amendment will not prevent the creation of a new entitlement program if there is a true need for the program. It simply will require that such a need be truly demonstrated. My amendment will not prevent a tax increase that is used for deficit reduction. What my amendment will do is put an end to the fiction that tax increases are capable of offsetting the cost of additional mandatory spending. Mr. LAUTENBERG addressed the Chair. The PRESIDING OFFICER. The Senator from New Jersey is recognized. Mr. LAUTENBERG. Mr. President, I rise to oppose the Craig amendment. The amendment would change the pay-go system and mean that we could not provide for health insurance to children by closing unnecessary tax loopholes. You heard it from the Senator directly. This is outrageous. It would undermine our efforts to ensure that all of the 10 million children who lack health coverage in this country can have it. There are already budget rules that limit the use of savings that come from tax loopholes. This amendment would go much farther and make it tougher to invest in children's health programs. If you vote for the Craig amendment, you are voting to protect tax loopholes. If you vote against it, you are voting to help children obtain health insurance in the future. The PRESIDING OFFICER. All time is expired. Mr. LAUTENBERG. Mr. President, I raise a point of order that the pending amendment is extraneous and violates section 313(b)(1)(A) of the Congressional Budget Act. Mr. CRAIG. Mr. President, under section 904 of the Budget Act, I move to waive the point of order against the pending amendment, and I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second? There is a such second. The yeas and nays were ordinary had. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question occurs on agreeing to the motion to waive the Budget Act. The yeas and nays have been ordered. The clerk will call the roll. The assistant legislative clerk called the roll. The PRESIDING OFFICER. Are there any other Senators in the Chamber desiring to vote? The yeas and nays resulted--yeas 42, nays 58, as follows: [Rollcall Vote No. 144 Leg.] YEAS--42 Abraham Allard Ashcroft Bennett Brownback Campbell Coats Coverdell Craig D'Amato Enzi Faircloth Frist Gramm Grams Grassley Gregg Hagel Hatch Helms Hutchinson Hutchison Inhofe Kempthorne Kyl Lott Mack McCain McConnell Murkowski Nickles Roberts Roth [[Page S6676]] Santorum Sessions Shelby Smith (NH) Stevens Thomas Thompson Thurmond Warner NAYS--58 Akaka Baucus Biden Bingaman Bond Boxer Breaux Bryan Bumpers Burns Byrd Chafee Cleland Cochran Collins Conrad Daschle DeWine Dodd Domenici Dorgan Durbin Feingold Feinstein Ford Glenn Gorton Graham Harkin Hollings Inouye Jeffords Johnson Kennedy Kerrey Kerry Kohl Landrieu Lautenberg Leahy Levin Lieberman Lugar Mikulski Moseley-Braun Moynihan Murray Reed Reid Robb Rockefeller Sarbanes Smith (OR) Snowe Specter Torricelli Wellstone Wyden The PRESIDING OFFICER. On this vote, the yeas are 42, the nays are 58. Three-fifths of the Senators duly chosen and sworn not having voted in the affirmative, the motion is rejected. The point of order is sustained, and the amendment fails. Mr. ROTH. Mr. President, I move to reconsider the vote by which the motion was rejected. Mr. MOYNIHAN. I move to lay that motion on the table. The motion to lay on the table was agreed to. Amendment No. 570 (Purpose: To establish procedures to ensure a balanced Federal budget by fiscal year 2002) The PRESIDING OFFICER. Under the previous order, the Senator from Kansas is recognized to offer an amendment on which there are 2 minutes of debate equally divided. Mr. BROWNBACK. Mr. President, I have an amendment at the desk in the second-degree. The PRESIDING OFFICER. The clerk will report. The legislative clerk read as follows: The Senator from Kansas [Mr. Brownback], for himself, Mr. Kohl, and Mr. McCain, proposes an amendment numbered 570. Mr. BROWNBACK. Mr. President, I ask unanimous consent that reading of the amendment be dispensed with. The PRESIDING OFFICER. Without objection, it is so ordered. The amendment is as follows: At the end of the bill, add the following: TITLE --BUDGET CONTROL SEC. 01. SHORT TITLE; PURPOSE. (a) Short Title.--This title may be cited as the ``Bipartisan Budget Enforcement Act of 1997''. (b) Purpose.--The purpose of this title is-- (1) to ensure a balanced Federal budget by fiscal year 2002; (2) to ensure that the Bipartisan Budget Agreement is implemented; and (3) to create a mechanism to monitor total costs of direct spending programs, and, in the event that actual or projected costs exceed targeted levels, to require the President and Congress to address adjustments in direct spending. SEC.--02. ESTABLISHMENT OF DIRECT SPENDING TARGETS. (a) In General.--The initial direct spending targets for each of fiscal years 1998 through 2002 shall equal total outlays for all direct spending except net interest as determined by the Director of the Office of Management and Budget (hereinafter referred to in this title as the ``Director'') under subsection (b). (b) Initial Report by Director.-- (1) In General.--Not later than 30 days after the date of enactment of this title, the Director shall submit a report to Congress setting forth projected direct spending targets for each of fiscal years 1998 through 2002. (2) Projections and assumptions.--The Director's projections shall be based on legislation enacted as of 5 days before the report is submitted under paragraph (1). The Director shall use the same economic and technical assumption used in preparing the concurrent resolution on the budget for fiscal year 1998 (H.Con.Res. 84). SEC.--03. ANNUAL REVIEW OF DIRECT SPENDING AND RECEIPTS BY PRESIDENT. As part of each budget submitted under section 1105(a) of title 31, United States Code, the President shall provide an annual review of direct spending and receipts, which shall include-- (1) information on total outlays for programs covered by the direct spending targets, including actual outlays for the prior fiscal year and projected outlays for the current fiscal year and the 5 succeeding fiscal years; and (2) information on the major categories of Federal receipts, including a comparison between the levels of those receipts and the levels projected as of the date of enactment of this title. SEC.--04. SPECIAL DIRECT SPENDING MESSAGE BY PRESIDENT. (a) Trigger.--If the information submitted by the President under section----03 indicates-- (1) that actual outlays for direct spending in the prior fiscal year exceeded the applicable direct spending target; or (2) that outlays for direct spending for the current or budget year are projected to exceed the applicable direct spending targets, the President shall include in his budget a special direct spending message meeting the requirements of subsection (b). (b) Contents.-- (1) Inclusions.--The special direct spending message shall include-- (A) an analysis of the variance in direct spending over the direct spending targets; and (B) the President's recommendations for addressing the direct spending overages, if any, in the prior, current, or budget year. (2) Additional matters.--The President's recommendations may consist of any of the following: (A) Proposed legislative changes to recoup or eliminate the overage for the prior, current, and budget years in the current year, the budget year, and the 4 outyears. (B) Proposed legislative changes to recoup or eliminate part of the overage for the prior, current, and budget year in the current year, the budget year, and the 4 outyears, accompanied by a finding by the President that, because of economic conditions or for other specified reasons, only some of the overage should be recouped or eliminated by outlay reductions or revenue increases, or both. (C) A proposal to make no legislative changes to recoup or eliminate any overage, accompanied by a finding by the President that, because of economic conditions or for other specified reasons, no legislative changes are warranted. (c) Proposed Special Direct Spending Resolution.--If the President recommends reductions consistent with subsection (b)(2)(A) or (B), the special direct spending message shall include the text of a special direct spending resolution implementing the President's recommendations through reconciliation directives instructing the appropriate committees of the House of Representatives and Senate to determine and recommend changes in laws within their jurisdictions. If the President recommends no reductions pursuant to (b)(2)(C), the special direct spending message shall include the text of a special resolution concurring in the President's recommendation of no legislative action. SEC. . REQUIRED RESPONSE BY CONGRESS. (a) In General.--It shall not be in order in the House of Representatives or the Senate to consider a concurrent resolution on the budget unless that concurrent resolution fully addresses the entirety of any overage contained in the applicable report of the President under section ____04 through reconciliation directives. (b) Waiver and Suspension.--This section may be waived or suspended in the Senate only by the affirmative vote of three-fifths of the Members, duly chosen and sworn. This section shall be subject to the provisions of section 258 of the Balanced Budget and Emergency Deficit Control Act of 1985. (c) Appeals.--Appeals in the Senate from the decisions of the Chair relating to any provision of this section shall be limited to 1 hour, to be equally divided between, and controlled by, the appellant and the manager of the bill or joint resolution, as the case may be. An affirmative vote of three-fifths of the Members of the Senate, duly chosen and sworn, shall be required in the Senate to sustain an appeal of the ruling of the Chair on a point of order raised under this section. SEC. 06. RELATIONSHIP TO BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT. Reductions in outlays or increases in receipts resulting from legislation reported pursuant to section ____05 shall not be taken into account for purposes of any budget enforcement procedures under the Balanced Budget and Emergency Deficit Control Act of 1985. SEC. 07. ESTIMATING MARGIN. For any fiscal year for which the overage is less than one- half of 1 percent of the direct spending target for that year, the procedures set forth in sections ____04 and ____05 shall not apply. SEC. 08. EFFECTIVE DATE. This title shall apply to direct spending targets for fiscal years 1998 through 2002 and shall expire at the end of fiscal year 2002. Mr. BROWNBACK. Mr. President, Senator Kohl and I have offered this amendment. It is a very, very simple amendment. It just says if we are going to break the spending caps on this bill, on this budget agreement that we've told the American people is going to balance the budget, if we're going to break the spending limits on it, we have to vote on it. And we have to vote and pass that by a 60-vote margin. That's it. The President has to say how he is going to get us to a balanced budget. If we're going to break that cap, he has to say how he is going to get us to a balanced budget; if we're going to break that spending cap, he has to say where we're going to make the spending cuts, and we have to vote if we are going to break it. I think this is the least we can do for the American people. It says, ``Folks, [[Page S6677]] we meant it when we said we were going to balance the budget. We meant it when we said we're going to balance it by the year 2002.'' And if we are going to break it, we've got to break it by a 60-vote margin. I yield the remainder of my time to Senator Kohl. Mr. KOHL. Thank you. Mr. President, I also am a supporter of this amendment. What it simply says is that we are going to do what we set out to do, which is to balance the budget, and, if we go over it in any year, then we are going to have to decide how we are going to reduce that spending to be sure we stay on target to get the budget balanced over the next several years. That is all this does. It is not a sequester. Nobody should fear that. But it is simply an enforcement mechanism which is necessary. Mr. LAUTENBERG. Mr. President, this amendment is a fast-track ticket to deep cuts in Medicare and Medicaid. It would essentially create a cap for these and other essential mandatory programs like the Medicare and Medicaid. Mr. President, we ought not punish the people who are on Medicaid or Medicare just because these programs grow faster than a particular rate. Sometimes growth in these programs could be good. For example, the first reconciliation bill includes money to recruit 3 million uninsured Medicaid-eligible children to sign up for the program. If this happens, obviously Medicaid spending is going to increase. But the question is, What do we want to do? Do we want to take care of those kids or don't we? This would not be a good reason to cut the program. This is a dangerous gimmick. We can balance the budget without it. Furthermore, we ought not accept an amendment that could force quick, drastic cuts in Medicare and Medicaid. I urge my colleagues to oppose this amendment to protect Medicare and Medicaid. Mr. President, I raise a point of order that the pending amendment is extraneous and violates section 313(b)(1)(A) of the Congressional Budget Act. Mr. BROWNBACK. Mr. President, I make a motion to waive the Budget Act with respect to my amendment, and I ask for the yeas and nays. The PRESIDING OFFICER. Is there a sufficient second question? There is a sufficient second. The yeas and nays were ordered. Vote on Motion to Waive the Budget Act The PRESIDING OFFICER. The question occurs on the motion to waive the Budget Act. The yeas and nays have been ordered. The clerk will call the roll. The legislative clerk called the roll. The yeas and nays resulted-- yeas 57, nays 43, as follows: [Rollcall Vote No. 145 Leg.] YEAS--57 Abraham Allard Ashcroft Bennett Bond Brownback Burns Campbell Chafee Coats Cochran Collins Coverdell Craig D'Amato DeWine Domenici Enzi Faircloth Frist Gorton Gramm Grams Grassley Gregg Hagel Hatch Helms Hutchinson Hutchison Inhofe Jeffords Kempthorne Kohl Kyl Lott Lugar Mack McCain McConnell Murkowski Nickles Robb Roberts Roth Santorum Sessions Shelby Smith (NH) Smith (OR) Snowe Specter Stevens Thomas Thompson Thurmond Warner NAYS--43 Akaka Baucus Biden Bingaman Boxer Breaux Bryan Bumpers Byrd Cleland Conrad Daschle Dodd Dorgan Durbin F

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