April 06,2001

Grassley Lauds Bipartisan Vote for Budget Resolution

WASHINGTON — Sen. Chuck Grassley, chairman of the Committee on Finance, issued thefollowing comment regarding the bipartisan budget resolution approved today with a Senate voteof 65 to 35. The plan includes $85 billion for an immediate tax refund to help stimulate the ailingeconomy.

“The bipartisan vote today is a tremendous victory for the President. It’s abig step forward in passing a tax bill that will be the third-largest tax cut in 50 years.President Bush’s plan will reverse the Clinton tax increase of 1993, which was thebiggest tax increase in the history of the country. Today’s vote also shows howsuccessful President Bush has been in his campaign to return the tax surplus totaxpayers. Last year, the Democratic leadership on Capitol Hill was opposed to a taxcut. Then, last fall they wanted $500 billion in tax cuts. A couple of months ago, theDemocrats said they wanted about $900 billion in tax cuts. And today, Democratsvoted for a $1.3 trillion tax cut.

“Taxpayers today bear a record-high tax burden. Washington can clear thepath to long-term economic growth by letting taxpayers keep more of their hardearnedmoney. Cutting tax rates would increase family tax-home pay and spureconomic activity. It would enhance consumer purchasing power and helpentrepreneurs businesses off the ground and create new jobs. Lawmakers who prefermore government spending over tax relief argue for caution on the tax bill, butcaution was thrown to the wind when Congress approved billions of dollars in extraspending before it went home last year. Federal government expenditures jumped11.9 percent this fiscal year over the last. The bottom line is, if the money stays inWashington, it gets spent.”

Three amendments offered by Grassley were included in the final budget resolution passedtoday. The first provides up to $300 billion in funding and maximum flexibility for lawmakers tocraft a responsible Medicare reform and prescription drug proposal. The second Grassleyamendment significantly increases spending for agriculture over the next ten years, with anadditional $5 billion in this crop year. The third amendment provides the $7.8 billion needed to letchildren with disabilities and extraordinary medical expenses qualify for health care throughMedicaid without forcing their parents to give up their jobs or lower their family income to qualify.Grassley is the second most senior member of the Senate Budget Committee.