Mark Hatfield: “I intend to vote for the Republican substitute budget resolution presented to us today because its guiding principle is…”

“I intend to vote for the Republican substitute budget resolution presented to us today because its guiding principle is that we must strive harder to reduce the deficit, cut the growth rate of entitlement programs, and enable private enterprise to prosper. However, I disagree with several of the proposals assumed under this substitute, and will describe my objections shortly. One of the greatest challenges facing Congress today is to get control over our budget deficit. This Republican substitute amendment would cut the deficit to $99 billion by 1999, whereas the resolution passed by the Budget Committee only cuts the deficit to $192 billion by 1999. Most of this extra deficit reduction would be attained by lowering the rate of annual growth in Medicare and Medicaid--the largest and fastest growing mandatory programs--by imposing real cost cutting measures. However, this is done without jeopardizing service to the elderly, the sick, and the poor. This proposal allows Medicare to continue to grow by 7.8 percent annually, and Medicaid to grow at 8.1 percent per year, and makes no changes at all in Social Security. Another important point in favor of this substitute is the set of tax provisions that will benefit middle-class families. This includes a $500 credit for each child, individual retirement accounts [IRA's] for homemakers, IRA withdrawals for first-time home purchases, and deductibility of interest on student loans.”