A bill (H.R. 5173) intended to reduce the federal debt was approved, 33-0, by the House Ways and Means Committee on September 14. The measure would set aside 90 percent of the non-Social Security budget surplus for debt reduction in FY2001. Citing estimates from the Congressional Budget Office (CBO), Committee Chair Bill Archer (R-TX) said the provision would provide “$42 billion for the on-budget surplus in FY2001 for debt reduction.” The CBO has projected an FY2001 surplus of $267 billion.
The bill would create a new debt reduction account for $42 billion, establishing a legislative point of order against any bills that would tap into the set-aside funds. The measure also includes Social Security and Medicare “lockbox” language, which would bar any tax or spending measures that would reduce the Social Security- or Medicare-generated portion of the surplus.
Rep. Archer referred to the President’s recent vetoes of tax-related legislation supported by congressional Republican leaders, including an estate tax relief bill (H.R. 8) and a marriage tax penalty relief bill (H.R. 4810). The House was unsuccessful in efforts to override each of those vetoes (see The Source, 9/8/00, p. 1; 9/15/00, p. 1). “We would have preferred that some of these funds would have gone to end the marriage tax penalty and to repeal the death tax,” Rep. Archer said, adding: “The next best use for these funds is to pay down the debt.”
Despite the unanimous vote in favor of the measure, committee Democrats were critical, stating that the bill was crafted for the purpose of providing Republicans with campaign rhetoric. “It really pains me that our august Ways and Means Committee is being used for a campaign statement,” said ranking Democrat Charles Rangel (D-NY).
