CONGRESSIONAL RECORD -- SENATE

December 11, 1969

Page 38388

Mr. MANSFIELD. . . . To the committee, to its members and staff, to the staff of the joint committee and most of all to the able and distinguished chairman, the Senator from Louisiana (Mr. LONG), and the able and distinguished ranking member-the Senator from Delaware (Mr. WILLIAMS) we owe our deepest gratitude. Their effort has produced the most singularly outstanding achievement of this session and perhaps of the entire 91st Congress. During the past 2 weeks or so, we in the Senate who are not members of the committee experienced only a little of what was necessary to pass a proposal of this magnitude. In all of my years, in fact, I have never witnessed any committee devote itself more diligently to a task, working from early in the morning until late in the evening, not just for a matter of days but for nearly 4 solid months.

Frankly, I do not know how to express in words my gratitude, the gratitude of the Senate and of the Nation for the service that has been so magnificently performed.

Perhaps no Member will agree that the measure in its present form provides the reform and relief that will achieve absolute equity in our tax structure. No proposal could. In my opinion, however, it goes a long way in that direction and certainly much further than ever before. I am confident as well that when the conferees return with their recommendations it will be an even better proposal.

But the remarkable story is how this measure was achieved.

Last July when the question of extending the surtax was before the Senate, Chairman LONG and the members of the Finance Committee agreed that they would report the tax reform bill in 3 months. I do not believe that even they realized at the time just how much work would be involved in meeting that timetable. But rather than extend the period to accommodate the workload, they intensified their efforts to meet the schedule. In setting such a timetable for his committee, Chairman LONG is to be particularly lauded for his efforts, for his commitment, for his cooperation and performance.

In like manner, the ranking minority member, Senator WILLIAMS of Delaware -- who has for years championed the cause of tax reform -- as well as all members of the Finance Committee who hammered out a full and distinct set of proposals in a relatively short period, deserve the praise and respect of the entire Senate and of the country.

The expeditious attitude of the Finance Committee set the example for the entire Senate. The bill was scheduled for floor action at the beginning of Thanksgiving week. Voting began the very first day and I must say that from then on the cooperation and consideration exhibited by all Members on both sides of the aisle was of the highest order. Speaking for the joint leadership, we are most grateful. This experience has established beyond question that the Senate can be most efficient when it devotes its full energies to a task. It has taken less than 3 weeks -- just 13 working days -- to do the job. There are 11 days left to pass at the least five appropriation bills and a foreign aid bill and a comparability pay bill.

Finally, I should say that the achievements of the 91st Congress shall be many, but none can surpass those which will flow from the enactment of the tax reform-tax relief act. It should be highlighted that this bill is one that originated solely within the Halls of Congress: The initiative as well as the follow-through was in the Congress. This act will highlight again that our actions in the Congress are far more significant than anyone's words.

To the chairman of the committee, the Senator from Louisiana (Mr. LONG), to the Senator from Delaware (Mr. WILLIAMS), to the members of the committee, and to the entire Senate I extend my deepest gratitude; and I express the hope that this bill will be reported back to us so that we can consider it once again before we adjourn sine die the first session of the 91st Congress.

Mr. LONG. I thank the Senator for his kind remarks. I thank every Member of this body and the members of the Finance Committee in particular for the very generous cooperation they gave to the chairman.

In some instances, the chairman decided that we would never conclude the hearings unless we strictly limited Senators in their questioning. It was very considerate of the members of the committee to go along with that mandate, without which we never could have concluded these 7,000 pages of hearings on the bill.

But, more than any Senator, I believe the staffs of the Finance Committee, headed by Tom Vail, and the Joint Committee on Internal Revenue Taxation headed by Larry Woodworth deserve all the praise we can heap upon them.

They have been working 20-hour days -- and I do not think too much praise can be accorded to them -- to work out the technical sections of this 585-page bill. They have worked around the clock in many instances, on Sundays and holidays as well as the ordinary workdays. I do not think there are more overworked people anywhere in Government than these two staffs, and they deserve all the praise the Senate can accord them. I do not think there are many people in America who are as competent to work on the bill as those we had working for us.

I would also like to make special and fond mention of Harry Littell of the Legislative Council's office. Words cannot begin to adequately praise Harry for the superb craftsmanship of his efforts on this massive task and for his devotion to the job. Without the extremely long and difficult hours put in by Harry, we would not have this bill before us. Without his efforts and skill we would not have a bill that is in such excellent technical shape. We cannot begin to praise Harry enough.

Mr. MANSFIELD. Mr. President, what the distinguished Senator has said is not only well merited, but also very much deserved. The staff members have worked long. They have a good deal of work ahead of them. I think that out of the efforts of the committees and their very capable staffs, the tax reform-tax relief bill this year will be one of the hallmarks, the benchmarks, the landmarks of this Congress.

Mr. LONG. The RECORD also should reflect that many dedicated employees of the Treasury Department volunteered to work with our staffs on this bill.

I yield to the Senator from Massachusetts such time as he requires.

Mr. KENNEDY. Mr. President, in the exchange which has just taken place, the distinguished majority leader has paid a great and well-deserved tribute to the distinguished chairman of the Committee on Finance and to the members of the committee. I warmly associate myself with his remarks, because I feel that this praise and this acclamation is well due.

In addition, as we go into the final minutes before we vote, we ought to recognize the eminent role played by the distinguished majority leader in our efforts to achieve meaningful tax reform.

Indeed, I believe that it was the Senator from Montana who articulated most clearly the relationship between the extension of the surcharge and the inequities which existed in our present tax system. It was he who emphasized to us that the surcharge was unfair, because it requires no contribution from those who escape their taxes. It was he who demanded that the surcharge should be coupled with tax reform. Only in this way, he realized, could we bring maximum pressure to bear on tax reform. Indeed, in main part, it is because of the majority leader's strong and dedicated commitment to tax reform, and his leadership in working with the distinguished chairman of the Committee on Finance and the members of the committee that we find ourselves in the successful posture we are in today.

There were those who said we need not act hastily on the question of tax reform. There were those who said the matter ought to be studied. The administration told before the Ways and Means Committee last spring that we should wait until November for yet another review of tax reform proposals.

Throughout this year, the position taken by the majority leader on tax reform was hard and difficult and courageous. He performed a great service not only to the Senate, but also to all our citizens. I am pleased, therefore, to rise at this time to join in acclaiming the members of the Finance Committee and the majority leader for their magnificent effort.

Mr. MUSKIE. Mr. President, will the Senator yield?

Mr. LONG. I yield.

Mr. MUSKIE. Mr. President, I should like to join in this well deserved tribute to the distinguished Senator from Montana, the majority leader (Mr. MANSFIELD). I know of his singleminded commitment to the objective of tax reform which he expressed first in the Democratic Policy Committee early in the summer. He sensed the interest of the country in the objective of tax reform. He understood, from his many years in the Senate, that unless such a commitment were made by the leadership, tax reform might well fall through the cracks as we considered the tax questions raised by the surcharge. He has stuck to his commitments steadfastly.

He was criticized considerably for making that commitment in July and August. Doubts were raised later as to whether or not, because of the sheer immensity of the task, that commitment could be made. It was with the cooperation of the distinguished chairman of the committee, the Senator from Louisiana (Mr. LONG), that it was possible for the maj jority leader to make that commitment.

It seems to me most appropriate, as the distinguished Senator from Massachusetts has pointed out, that at this point, prior to final vote on this tax package, the Senate and the country be reminded of the leadership role played by the distinguished Senator from Montana.

Mr. HOLLAND. Mr. President, will the Senator yield?

Mr. LONG. I yield to the Senator from Florida such time as he desires.

Mr. HOLLAND. I thank the Senator. In the first place, I want to compliment in the highest possible terms the chairman of the Committee on Finance and the ranking minority member of that committee; and the members of the committee generally also are entitled to their share of congratulations. I have noted particularly the fidelity with which the chairman and the ranking minority member have stuck by the committee bill. I think that is the finest evidence of real leadership, and I compliment them for doing that.

The second thing I would like to say, Mr. President, is that I have frequently found occasion in the past to express regret about the complex which seems to seize upon the Senate when we consider an important and involved tax measure. It is the type of measure in which most consideration should be given to the committee recommendations, particularly in a matter of this kind, in which after 3 months of hearings, a 585-page bill, which is offered as a substitute for the House bill or to replace the House bill, is the fruit of all that work.

I do not know whether it is because we in the Senate are somewhat frustrated because under the Constitution we are banned from initiating legislation in this field, or what the reason may be; but I think that the most unsound thing we do in the Senate is in attempting to write on the floor a tax bill, no matter how complex or involved the matter may be, and that is exactly what we have done in connection with this bill.

I regret that we show that attribute almost yearly; and I must express regret again this time, because I think it is unsound to follow that practice. It is not a compliment to the committee or its fine leadership or its fine work. To the contrary, it seems to be born in the idea that individual Senators, on the floor, in their judgment, many times most impulsively, have sounder views on the complex matter of Federal taxation than does the committee after its months of study, hearings, and testimony. I cannot join in that kind of approach to the passage of an involved tax bill and that is one of the reasons I shall vote against the bill.

The principal reason, though, why I shall vote against the bill is that it attempts to undo one of the real things that had been attempted to be done by this bill, and that was to fight inflation The fight against inflation will be a particularly tough and important one in the next 2 years, 1970 and 1971.

The bill which is now ready for adoption, and it will be passed so far as the Senate is concerned by its vote, shows this kind of net result in revenue in 1970 and 1971. I am using the composite table prepared by the staff of the Committee on Finance.

In the year 1970, this particular bill, which is now before us and about to be voted on, has a net reduction from the committee bill of about $3.0526 billion. If that is an attack on inflation, if that is an effort to regularize our fiscal practices, this Senator cannot see it. For the year 1971, from this same table, it appears that the amendments we have agreed to on the floor of the Senate will cut the revenue provided by the committee bill by $5.049 billion. In other words, there would be a net reduction in revenue of over $8 billion in those 2 critical years, and they are the 2 critical years in the fight against inflation.

The PRESIDING OFFICER. The time of the Senator has expired.

Mr. HOLLAND. Mr. President, will the Senator yield to me for 3 additional minutes.

Mr. LONG. Mr. President, I yield to the Senator from Florida 3 additional minutes.

The PRESIDING OFFICER. The Senator from Florida is recognized for 3 additional minutes.

Mr. HOLLAND. The net reduction in those critical years is better than $8 billion. That is moving exactly in the wrong direction rather than in the right direction. That is the principal reason I shall vote against the bill.

There is one ray of hope in this matter. I have found it possible at least three times before, and maybe more, in voting against the complex bills in this field which have been rewritten by the Senate on the floor to vote for a much better bill which came back from conference; and I do hope in this instance we will have that kind of record made again by the conferees of the two Houses.

In my mind it would be not only unfortunate but most misleading to the public and would defeat the objectives of all concerned in trying to bring about this legislation, to come back with this bill in its present form, with a net reduction in revenue as against the committee bill, of over $8 billion in the 2 critical years.

Mr. President, having made those brief remarks and again expressing my compliments to the distinguished Senator from Louisiana, the chairman of the committee, and the Senator from Delaware, I wish to inform the Senate I shall vote against the bill and hope that when they take it to conference we will get back a vastly improved bill.

Mr. ALLOTT. Mr. President, I also join in complimenting the members of the Committee on Finance, the chairman, the ranking minority member, and also all the other members who just as diligently through all the many days and weeks of hearings attended to their business in attempting to fulfill the mandate of the Senate, a mandate which I think was foolish and which I think should never have been given. According to the statement of the majority leader at the time of the passage of the surtax bill, it was a mandate of the Democratic policy committee. I think it was a shortsighted and foolish mandate which we will all live to regret in this country.

Mr. President, for the past 2 weeks or more the Senate has been operating in a circus-like atmosphere. The political Christmas tree known as the Tax Reform Act of 1969 has not only been decorated, it has been gaudily overdressed with flashy and topheavy economic ornaments which threaten to short circuit every light, and may well end up burning down the house.

In the Senate's unprecedented spending spree, it has ignored the cruelest tax of all, inflation.

Commonsense and reason has been cast into the fire of political advantage. Champagne has been dished out when the budget can scarcely afford 7-Up.

There is scarcely a citizen of this Nation who has not felt the effects of continued deficit spending by the Federal Government. For the 8 years prior to President Nixon's inauguration America suffered from the combination of the policies of those in Congress who cannot bear to see the budget balanced and administrations which did not have the will to face the economic realities of life.

Now we have an administration which has pledged itself to fiscal sanity. We have an administration which has told its individual departments: "Keep the spending and the hiring down."

The policies of this administration are just beginning to work, but every bit of good which has been accomplished through squeezing and belt tightening and economic restraint will be undone if the Senate version of the tax reform bill becomes law.

While some good things have been accomplished in the bill, the fact remains that the U.S. Treasury would end up with a short fall in revenue for the calender years 1969-72 of $27 billion -- $26.284 billion, to be exact -- if the bill in the form I find it today is enacted. In addition, in the calender year of 1973 alone the effect of the Mansfield-Byrd amendment for social security would be an added social security tax bill of $6.7 billion for middle-income taxpayers.

Because I cannot in conscience contribute to the destruction of fiscal responsibility, which the American people demand and which this administration stands for, I find it necessary to announce that I shall vote against the final passage of the bill, a self-created economic monster. If it passes, and if the Senate-House conference does not restore sanity to this legislation, I shall vote against the conference report.

However, I have a very good feeling that the bill which comes from the conference is not going to be identifiable with the bill which passes the Senate this afternoon. I also want to make it perfectly clear that I will be among those Senators who have announced they will vote to sustain a veto by the President. In fact, on behalf of the taxpayers of this country, I urgently recommend to the President that he exercise his veto responsibility, as he has indicated he