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Judicial Watch • OIS Cases FileGate-Exhibits-21-03

OIS Cases FileGate-Exhibits-21-03

OIS Cases FileGate-Exhibits-21-03

Page 1: OIS Cases FileGate-Exhibits-21-03

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him 1986 the last real tax reform. cleared out all that junk, 
those little special interests and reduced rates, and understands that 
process. also understands one important thing which we're missing, 
which more and more, we're using the tax code our instrument 
social policy. There isn't anything you can imagine need done 
that don't through the tax code instead straightforward. 

MR. RUSSERT: The Gore people say you're going endorse him. 
SEN. MOYNIHAN: Well, they may know more than do. 
MR. RUSSERT: Let turn tax cuts and surpluses. American people have read that there are record surpluses, Washington's awash with money. Why not give back the form tax cuts the way the Republicans want to, the $800 billion? 
SEN. MOYNIHAN: Why not pay down the debt that quadrupled the 1980s people who cut taxes too much the first place? Thought that would have great change-effect government. Then didn't have any effect. This one good thing-we're all going agree this table; I'll make this bet right now-that have the next years, about $1.9 billion Social Security surplus, the payroll tax brings more money than goes out. think we're going save it. think we've all agreed that. That's hardly been noticed. will cut the national debt 
 more tlran lralf;-curtheinterest-ontne-debt, 
whtch 1flibw thiHhird:. 
largest-last year, was the third-highest item the budget: Social Security and military, interest. And that, we've done good day's work-good year's work. And I'd like suggest that might best off just quit now, went home and let nature take its course. 
MR. RUSSERT: tax cut all? 
SEN. MOYNIHAN: No, there's need for tax cut. 
MR. RUSSERT: Senator Fritz Hollings, what's your view? you want tax cut now the Republicans have right giving the American people $800 billion back the surplus, tax collections that the govern:rnent took in? 

SEN. HOLLINGS: Well, wish had it. I've got the analysis both budgets, the president's budget put out, and the Congressional Budget Office the Con-Congress' budget. page the president's budget, the analysis shows that the deficits up, and away. There's surplus. fact, page 43, over the 15-year period, the debt increases some trillion, and similarly with the Congressional Budget Office. friend Senator Moynihan just minute ago said that we're going save that Social Security. The CBO shows that they're going have deficit Social Security the end years of$2.7 trillion. That's 
---------------------r--w.0 ---w

what will owe. They talk about saving, Tim, but they don't save. already owe Social Security some $800 billion, and the end years, they're going spend it, and we're going owe them $2.7 trillion. while they' all standing around talking about how they're going really-while Greenspan trying to, you !mow, unheat the economy, everybody's sitting around trying argue whether we're going start the fire with match set aflame with blowtorch. 
MR. RUSSERT: Senator Hollings, you agree with Senator 
Moynihan? You should home and just not cut taxes? 

SEN. HOLLINGS: That's right. That's exactly right. fact, got 35Democratic votes for that Thursday afternoon pay down the debt. 
MR. RUSSERT: Senator McConnell, let bring you into the conversation. Let show you and our viewers what Alan Greenspan, the chairman the Federal Reserve, had say about tax cuts. I'll put the screen. "We'd probably better off holding off tax cut immediately. think this the ideal time reduce the debt. And would certainly agree that you can't significant way now, can't imagine circumstances being more favorable debt reduction this point." 
The public debt right now $3.7 trillion. Why not eliminate that? --Listen to-Alan Greenspan, and-aveid4his-t-ax-cut-plan? 

SEN. McCONNELL: Well, Tim, the same testimony Greenspan said, "Ifyou find that consequence these surpluses, they tend spent, then would more the camp cutting taxes because the least desirable using those surpluses for expanding outlays." 
MR. RUSSERT: don't spend them, pay down the debt? 
SEN. McCONNELL: Well, what Greenspan understands here that the money left laying around, it's going get spent. mean, you think, Tim, this dollar the surplus, over the next years, what we're saying return one-quarter this dollar the American people. 
We've already agreed, Pat has indicated, put aside enough save 
Social Security. Beyond that, there enough, anticipate, the 
surplus, take care the Medicare problem can get the administration and endorse the bipartisan proposal that was put forward earlier this year. And the taxpayers are entitled little their money back, because-finally, let say, when Clinton and Gore came office, 17.8 percent the gross domestic product was taxes. Now, it's 20.6 percent. The tax burden taxpayers this country the highest point since World War And it's time gave them some relief 
MR. RUSSERT: But, Senator McConnell, pick the morning paper, "Corporate lobbyists celebrate victories round one.'' One says, 

"We got the sun, the moon and the stars." John McCain said, "How can justify giving $33 million tax break next year companies producing electricity from chicken waste when senior citizens have forgo some their Social Security benefits they must work make ends meet?" 
This fact, though, has become Christmas tree decorated with corporate giveaways according news reports and the admission "corporate lobbyists." 
SEN. McCONNELL: Well, regretfully, every tax bill ends having those kind provisions it. I'm concerned about what the regular taxpayer gets out ofthis. You kn.ow, people making $50,000 and provide percent the taxes for the federal government, percent. They're the taxpayers. 
SEN. MOYNIHAN: the income tax. 
SEN. McCONNELL: Yes, the income taxes. They don't-you know, they don't get welfare benefit. They don't get food stamp benefit. They don't really get anything except they pay the freight, they church. And seems that ought keep mind that tax cut for people who pay taxes. 
MR. RUSSERT: Senator Chafee, you have counterproposed the 
ofsayi:ng,--"Don't cut taxes $800 billion. Make $500 billion over years." Ifthe Republican conference comes back, House and Senate, with the $800 billion tax bill, will you Republican support that? 
SEN. CHAFEE: Well, haven't taken definite position because don't really know what's the final package. But have told the majority leader, "Don't count you come back from the conference with tax bill that eliminates the estate tax and gives broad percent across-the-board tax cut that they've been talking about the House." presented this bipartisan program, Senator Breaux and and mixed group Democrats and Republicans, and we're for some tax cut, but think it's too rich $800 billion was proposed. for $500 billion. That leaves $500 billion over for emergencies, for Medicare, for Social Security. 
And, Tim, think there's one thing remember. All these projections how much money's going pouring into the federal 
Treasury are based 10-year projections and things don't work out 
the rosy fashion the way everybody thinks they're going work out. 
MR. RUSSERT: may not able afford $500 billion tax cut. 
SEN. CHAFEE: Well, think can afford $500 billion, but $800, think, getting way into the higher margin. And think we've also 
got remember that there are expenditures out there. This projection 
the $800 billion based upon the Congress not talcing certain actions, 
not taking actions provide more money for low-income housing, heating and forth like that, and think those things are going occur. 
MR. RUSSERT: Gene Sperling, you represent the White House. Senator Moynihan has just suggested the idea going home and not cutting taxes, and let the status quo roll and see what happens. 
MR. SPERLING: Well, since 1993, when Senator Moynihan and Senator Hollings cast their brave vote for the president's '93 debt reduction plan, have, through our fiscal discipline, not only put our fiscal house order, not only helped spark economic growth, but we've been giving Americans large tax cut the form oflower mortgage rates and lower interest rates. The worst thing could leave our path offiscal discipline way that repeal that tax cut oflow interest rates and low mortgage rates. let say the following. 
MR. RUSSERT: wouldn't bother you Congress did tax 
MR. SPERLING: Well, let say the following. would better nothing and pay down$100 billion our national debt than sign large and irresponsible tax cut that would send signal the world that 
the era offiscal discipline the United States over. 

SEN. MOYNIHAN: Gene, $1.9 trillion debt could pay down. 
MR. SPERLING: could, but.. 
MR. RUSSERT: But, Mr. Sperling, your tax plan actually pays down the debt less than the Republican tax plan. MR. SPERLING: That's just not the case. MR. RUSSERT: Absolutely, because you look the CEO 
estimates ... MR. SPERLING: That... MR. RUSSERT: ... the Congressional Budget Office, the Republicans 
pay down over trillion. You're less than that. Why doesn't the 
administration ... 

MR. SPERLING: Tim, that CBO analysis one that Senator Daschle and Congressman Gephardt called the most flawed and misleading analysis years. But I'll take they it. They assume that they would pay down debt and have tax cut the assumption that 
they would cut government and education and public safety and science nearly percent. Well, you could say that you could pay down the debt eliminating the Navy, too, but that's just not going happen. And the real thing the American public needs watch out for that these are projected surpluses. It's not money the bank. And you tax. cut the assumption that government going cut that dramatically education and science, let tell you what's going happen, we're either going have very serious cuts that are harmful people are going have raid that Social Security surplus and not pay down the debt. let's responsible, first things first. think the way break this gridlock not breaking our commitment fiscal discipline. Let's break the gridlock coming back September and sitting down and getting Medicare plan done. The president has aspecific plan get solvency 2025 that has prescription drugs. The White House, the Democrats, would like sit down and let's Medicare first. That's what mean byfirst things first. 
MR. RUSSERT: Well, but hold on. Under projections, years, two-thirds all federal expenditures are going Social Security and Medicare, and the Clinton administration thinks that's just fine. now spend $220 billion Medicare. It's going over trillion the year 2030 because there areno serious structural changes made Medicare bythe administration. acceptable your administration have two-thirds federal expenditures Social Security and Medicare? 
MR. SPERLING: Tim, the president has put down serious Medicare plan. The GAO, the government's watchdog, said that has serious programmatic reforms that are least good-faith effort start. Maybewe should more. Let's sit down and work onthat. The reason why want save and pay down the debt exactly because the surplus have right now, think Senator Hollings suggesting, ignores the fact that wehave long-term deficits Medicare, long-term deficits Social Security. The responsible thing right nowis save. can either have one last great tax-cut party the 20th century wecan save pay down the debt sothat can meet the Medicare, Social Security and education challenges the 21st century. 

MR. RUSSERT: Senator Moynihan, you believe the Republicans pass their $800 billion tax bill, will attempt starve the beast... 
MR. RUSSERT: ... not have enough money left pay for what? 
SEN. MOYNIHAN: Just alittle bit history here. What we're dealing with not just this day and this year. Particularly, the large political idea which evolved the 1970s among conservatives more intellectual type, you like, and the idea was that-here, I'll read article wrote 1980 the subject The Times. said, "The Republicans' dominant idea seems that the social controls modem government have become tyrannical or, very least, exorbitantly expensive. This oppression, the strategic analysis goes, made possible taxation such that cutting taxes becomes objective its own right." And just last week, E.J. Dionne The Washington Post said, "The long-term goal about which Republican leaders are candid put government fiscal straitjacket for years come." 

MR. RUSSERT: Senator McConnell, how you plead? 
SEN. McCONNELL: wouldn't argue with that. think view this anopportunity pare back the size the government, give taxpayers some their ownmoney back. 
MR. RUSSERT: cut education, cut defense, cut health care? 
SEN. McCONNELL: No, we're talking about, under our plan, you pointed out Gene, $200 billion more for deficit reduction than under the Democratic plan, walling off Social Security surplus take care Social Security. There's still enough money take careof Medicare and other programs. And the remarkable thing about you canstill send back quarter out this dollar the taxpayers who are paying the freight this country for moregovernment than need. We're running surplus now. the corporation's this good shape, maybe the shareholders deserve dividend. 
MR. RUSSERT: Senator Hollings, could you buy $500 billion tax cut, could you buy $300 billion tax cut? 
SEN. HOLLINGS: Neither one. right what Senator McConnell saying, ''They're paying too much taxes because they got too much waste not, too much government." The best tax cut would pay down the debt; namely, the spending taxes interest costs onthe national debt. Now, all this surplus comes about assuming, course, that you obey the caps spending, which we've already violated, that there emergency spending, which we've already violated. call census spending emergency spending, that there tax cut, and you 're not going have any spending increases. That's all imaginary. And think weoughtto get with the reality that now the time pay down the debt and that already we're spending $100 billion this year. days, the 1999 deficit going $103 billion. 
MR. RUSSERT: Senator ... 
SEN. HOLLINGS: we're spending morethan we're taking right this minute. 
MR. RUSSERT: Senator Chafee, sounds like we're headed for trainwreck, where the Republicans aregoing dig $800 billion and