John Spratt: “I would also like to ask about targets for spending and tax cuts. The budget agreement and budget resolution call for…”

“I would also like to ask about targets for spending and tax cuts. The budget agreement and budget resolution call for $85 billion in net tax cuts over the 5-year period 1998 to 2002 to be enacted in the second reconciliation bill. The first reconciliation bill includes entirely spending items, with two small exceptions, the increase in Federal employee retirement contributions, as technically a revenue increase, and the administration's proposal to tighten compliance with the earned income credit is actually scored as generating a small revenue increase as well as reduction in outlays. Some have suggested that section 310(c) of the Congressional Budget Act could allow the first bill to include tax cuts offset by spending reductions that are deeper than those specified in the reconciliation directive. If so, tax cuts in the first bill, with $85 billion of tax cuts in the second bill, could bring net tax reduction to more than the $85 billion agreed upon in the first 5 years. However one interprets section 310(c), I would maintain that it would breach the terms of the budget agreement to include tax cuts in the first reconciliation bill or to include tax cuts exceeding $85 billion over 5 years in the second bill. This would also breach the revenue floor set by this resolution and trigger a point of order. Does the chairman agree that the budget agreement calls for $85 billion in net tax cuts over 5 years and that any greater amount would violate the agreement?”