April 28, 1977
Page 12808
Mr. KENNEDY. Since 1969, has not the Finance Committee expanded the standard deduction, increased the personal exemption, and has also provided the general credit to attempt to meet the problems of inflation for low income and for middle income people. I have two other very quick questions.
Second, if we are really interested in the problem of indexing, would we not, in order to keep the system in balance, have also to consider inventories, municipal bonds, other kinds of savings, in order that we not get the system completely out of balance? It seems if we are going to go part way on this, we would have to seriously consider going all the way, or will find ourselves seriously out of balance in other areas.
Finally, will the Senator not agree with me that if we are in an inflationary period, this might be exactly the wrong fiscal policy to follow. It might inflate the economy to an even greater extent, at a time when sound economic policy would call for no tax cut, or even a tax increase? I am interested in the observations the manager of the bill has.
Mr. MUSKIE. Mr. President, will the Senator yield?
Mr. LONG. I agree with the Senator that the answer is yes on all three questions. I think there are many reasons why the amendment should not be agreed to at this point.
Mr. MUSKIE. Will the Senator yield?
Mr. LONG. How much time does the Senator require?
Mr. MUSKIE. Thirty seconds.
Mr. LONG. Yes, I yield.
Mr. MUSKIE. I suggest that if we index all the spending programs and index all the tax programs, we could eliminate not only the Budget Committee but Congress, because 77 percent of the budget is now uncontrollable on the spending side. This would have a tendency to move us into lack of control on the revenue side.
Maybe that is the way to do it. We would have no more Christmas tree tax bills, no more Christmas tree appropriations bills. We could simplify the whole process. We would not have to think about it. But we do not know what kind of monster we are unleashing on the economy.
Mr. LONG. I am trying to keep this from being a Christmas tree bill, but if this amendment goes on here, I cannot say it will not be that. This is not the kind of thing that ought to be agreed to out here on the floor, after scant debate. It ought to be seriously considered, and the questions of the Senator from Maine and the Senator from Massachusetts cannot be resolved in just a few minutes on the floor. The amendment should not be agreed to.
Mr. MUSKIE. Will the Senator yield for another 15 seconds?
Mr. LONG. Yes.
Mr. MUSKIE. The estimate of the cost of this amendment depends upon the estimate of the rate of inflation. If we assume a 6 percent rate of inflation, the cost of this amendment will be $6 billion.
Mr. LONG. That is $6 billion next year, in addition to the other costs we have in this bill.