Ehrlich on Washington column, July 10, 2000

MEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1407 York Road, Suite 304 Lutherville, Maryland 21093 315 Cannon House Office Building Washington, D.C. 20515 EHRLICH ON WASHINGTON Week of July 1 0, 2000 By Congressman Robert L. Ehrlich, Jr. Freedom from Debt on the Fourth On July 4, 2000, America celebrated the 224Ih anniversary of its Declaration of Independence from an oppressive British monarchy. In addition to our traditional observation of our nation’s independence, this year Americans have further reason to be in a mood to celebrate. After decades of living in the shadow of crushing debt, Americans are moving away from this tremendous burden and into the sunshine of fiscal freedom. The government’s projected surplus has grown to a staggering $1.8 trillion over the next decade. This does not count Social Security funds - which Congress has declared off-limits and secured in a “lockbox” - nor does it count funds for Medicare. Separate payroll taxes fund Social Security and Medicare, and those programs also have surpluses. Instead, this surge in tax revenues is a real surplus in the general fund, powered by a strong economic growth, improved worker productivity, and responsible budgeting under a Republican-led Congress. As some folks were welcoming the good news, more were expressing skepticism about the future of this record sum, assuming it will fall victim to the kind of Washington horse-trading we have seen in the past. I am working, however, to keep this from happening. In order to enter, and remain in, the era of fiscal freedom, we passed H.R. 4601, the Debt Reduction Reconciliation Act of 2000. This bill requires any increase in the FY2000 surplus to be used to pay down the publicly held debt. In other words, every penny of surplus reported for the rest of this year will be designated for past bills. H.R. 4601 sets up a new account in the U.S. Treasury where real. non-Social Security surplus will be deposited and earmarked strictly for debt reduction. Just as we put Social Security funds in a lockbox, so too are we building a wall around this debt reduction account. The Clinton/Gore Administration will not be able to touch these funds as they will be placed in this new account and go automatically towards debt relief. In my view, if you have to figure out ways to balance your checkbooks and live within your means, so too should the federal government. Unfortunately, the former Democrat-led Congress racked up three decades of spending - and regularly increased our nation’s debt instead of paying