Words to Live By Since 1993 A SPIFF Publication Vol. 2, No. 43 Compare and save! Quote of the weak: "When we met in August, we noted that it was time for a serious discussion of the budget and economic agenda for 1995 and 1996... These policies and the message they contain are crucial to the record we will run on in 1996. "Since August two things have happened that made this discussion more urgent: "First, without a health care bill, we are deprived, at least temporarily, of the 'centerpiece' to our legislative agenda, and also of our answer to the question: what are we doing about entitlements (or about the projected rise in the deficit)? "Second, we know that the Republican strategy_ at least for the 1994 election and probably longer_ features empty promises about deficit reduction and unspecified spending cuts coupled with attractive-sounding tax cuts. "Our attacks on the Republicans for evasiveness about how they would pay for their 'contract' have been effective, but they make it imperative that we continue our established policy of explicit and paid-for proposals. The future-oriented campaign theme that you articulated at the Cabinet lunch on Friday_ major accomplishments, much to be done_ must be translated into policy decisions soon after the election. "All of us know what we would do to improve the long-run health of the economy and the average American's prospects if we had the resources. Although our priorities may differ somewhat, all of us want to: "Increase public investment_ in technology, infrastructure, communities and the skills of the present and future labor force_ to raise productivity and raise living standards; "Reduce the deficit, release saving for private investment and reduce long-term interest rates; "Provide universal health security and reduce the rate of growth of health care costs; "Insure retirement security and the future solvency of the social security system; "Cut taxes, especially for middle class working families. "The big problem is that we cannot do ANY of these things without freeing resources that are now devoted to other things. "Where will the resources come from? "The experience of the last two years has reinforced what we already knew about the difficulties of finding resources for new initiatives. There are only three possibilities_ all of them tough: "Discretionary spending cuts "With enormous effort, this year and last, we shifted significant discretionary spending from on-going programs into our highest priority investments. But Congressional resistance is strong... and there is unlikely to be much more room here. Moreover, a more conservative Congress could lower the caps further and force cuts that would likely fall mostly on our investments. "Tax Increases "The anti-government mood probably precludes any general-purpose tax increase. However, revenue increases may be possible to fund specific initiatives, especially if the tax has a logical connection to the use_ as in a tobacco tax or a tax on high-cost health plans tied to health care reform. It might also be possible to gain support for a revenue-neutral restructuring of taxes_ such as reducing tax breaks for high-income people to fund a middle-class tax cut. "Entitlement spending cuts "Since entitlement spending, unlike discretionary, is still growing and projected to grow more rapidly, everyone looking for budget savings points to entitlements. But the specifics are daunting. A package of benefit reductions for veterans, farmers, government retirees, etc. would meet heavy public and Congressional resistance. COLA costs are indiscriminate, hitting the most as well as the least vulnerable... Moreover, 90% of savings would come from Social Security and Medicare, and would probably be labeled by opponents as tax increases. "The difficulties of freeing resources, either on the tax or spending sides, suggests that it may be most fruitful to consider packages in which the means of financing is closely tied to the initiative or reform we want. One example...is health care reform, where we have the opportunity to work with the next Congress to craft a health care bill with dedicated financing that contributes to out year deficit reduction. "A less obvious example would be to address the looming problems of Social Security in a way that both restores the long-run fiscal balance of the system and frees some resources in the nearer term for deficit reduction or even investment...." Alice Rivlin Quote of the strong: "As Republican Members of the House of Representatives and as citizens seeking to join that body we propose not just to change its policies, but even more important, to restore the bonds of trust between the people and their elected representatives. "That is why, in this era of official evasion and posturing, we offer instead a detailed agenda for national renewal, a written commitment with no fine print. "This year's election offers the chance, after four decades of one-party control, to bring to the House a new majority that will transform the way Congress works. That historic change would be the end of government that is too big, too intrusive, and too easy with the public's money. It can be the beginning of a Congress that respects the values and shares the faith of the American family. "Like Lincoln, our first Republican president, we intend to act "with firmness in the right, as God gives us to see the right." To restore accountability to Congress. To end its cycle of scandal and disgrace. To make us all proud again of the way free people govern themselves. "On the first day of the 104th Congress, the new Republican majority will immediately pass the following major reforms, aimed at restoring the faith and trust of the American people in their government: "First, require all laws that apply to the rest of the country also apply equally to the Congress; "Second, select a major, independent auditing firm to conduct a comprehensive audit of Congress for waste, fraud or abuse; "Third, cut the number of House committees, and cut committee staff by one-third; "Fourth, limit the terms of all committee chairs; "Fifth, ban the casting of proxy votes in committee; "Sixth, require committee meetings to be open to the public; "Seventh, require a three-fifths majority vote to pass a tax increase; "Eighth, guarantee an honest accounting of our Federal Budget by implementing zero base-line budgeting. "Thereafter, within the first 100 days of the 104th Congress, we shall bring to the House Floor the following bills, each to be given full and open debate, each to be given a clear and fair vote and each to be immediately available this day for public inspection and scrutiny. "1. The Fiscal Responsibility Act "A balanced budget/tax limitation amendment and a legislative line-item veto to restore fiscal responsibility to an out-of-control Congress, requiring them to live under the same budget constraints as families and businesses. "2. The Taking Back Our Streets Act "An anti-crime package including stronger truth-in-sentencing, "good faith" exclusionary rule exemptions, effective death penalty provisions, and cuts in social spending from this summer's "crime" bill to fund prison construction and additional law enforcement to keep people secure in their neighborhoods and kids safe in their schools. "3. The Personal Responsibility Act "Discourage illegitimacy and teen pregnancy by prohibiting welfare to minor mothers and denying increased AFDC for additional children while on welfare, cut spending for welfare programs, and enact a tough two-years-and-out provision with work requirements to promote individual responsibility. "4. The Family Reinforcement "Child support enforcement, tax incentives for adoption, strengthening rights of parents in their children's education, stronger child pornography laws, and an elderly dependent care tax credit to reinforce the central role of families in American society. "5. The American Dream Restoration Act "A $500 per child tax credit, begin repeal of the marriage tax penalty, and creation of American Dream Savings Accounts to provide middle class tax relief. "6. The National Security Restoration Act "No U.S. troops under U.N. command and restoration of the essential parts of our national security funding to strengthen our national defense and maintain our credibility around the world. "7. The Senior Citizens Fairness Act "Raise the Social Security earnings limit which currently forces seniors out of the work force, repeal the 1993 tax hikes on Social Security benefits and provide tax incentives for private long-term care insurance to let Older Americans keep more of what they have earned over the years. "8. The Job Creation and Wage Enhancement Act "Small business incentives, capital gains cut and indexation, neutral cost recovery, risk assessment/cost-benefit analysis, strengthening the Regulatory Flexibility Act and unfunded mandate reform to create jobs and raise worker wages. "9. The Common Sense Legal Reform Act "'Loser pays' laws, reasonable limits on punitive damages and reform of product liability laws to stem the endless tide of litigation. "10. The Citizen Legislature Act "A first-ever vote on term limits to replace career politicians with citizen legislators. "Further, we will instruct the House Budget Committee to report to the floor and we will work to enact additional budget savings, beyond the budget cuts specifically included in the legislation described above, to ensure that the Federal budget deficit will be less than it would have been without the enactment of these bills. "Respecting the judgment of our fellow citizens as we seek their mandate for reform, we hereby pledge our names to this Contract with America." Republican Contract with America Words to Live By is published every week at about this time by Spiff. You can send a fax to us here in the Spiff Executive Plaza, towering over beautiful downtown Donelson, Tennessee at 615-883-0435.