Tobacco Documents Online

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S 1o~8@ CONGRESSIONAL RECORD--SENATE October22, 2~35 The poorer the ~'orhan, tha less Hkely effect, I th~r.k t~t L~ what this rex- co cornp~nie~ ha~ Ie~d to the deve!oF- sheiato~ok~ ~Lion~tempti~g~odo.~dindoL~g i~e~t of t~e ~'~obgce~* ~g~ In~- In ~y, ~. President, there are m~r~- re~o~ wl~y ~$ cig~e~te ta-"a ~hould be :~e~L Whll~ m~.ny Gtah~- ~,~-<~ hal~e been incr~ed L~. recent year~, the ci,~.rette t~x ~ de- elmed s~'n~ic~altly £a real cerm~ over ~he decade~ Tile eo~ of smok~n~--~ terras of do~$ and i~es--is L~ge. ~n~d ra~ing the tax ~ll reduce ~e u~age, p~rzlcu~zly among young ~eo~le. S~, ~r. I~es~den~ I ur~ ~ha~ the ~e~t~" SL~I~Oi'~ thL~ 8~lelz~1~t. no~ orAy for ~he ~eason~ ~hat I hm'e of- fered-not only bemuse i~ will reduce health e~re costs ~.nd reduce ~he ~axes th~ ~21 h~.ve to be p~id in fu~dre year~ to pay for the he~kh care cc~ ~ssoemte6 ~th ~mo~an~. not only b~- cause k~d~ ~ tb~s eeuntrlr ~ou1~ be ~pare~ the he~l~h t~Ye~.t ~hzt cig~- 7g to 80 me-*'a~nt of people sa~Do~ this k~nd of a ~ax ineresse, no~ orgy ~e- so, I would ~oln£ our that i~ i~ ~ re~oTes- sire ta.'u I£ b/is hardes~ on £ho~ }e~st able to pay. Pr~)bably ~okh1~, ~;lle ~h- er one !ike$ it or not. i~ ~he iu~r~ of gh~ ~orking men ~md workm~ woman Lu ~h~ ~ountrF, and ~hose ~ ~he lower end o~ the econcn~ S~ale. s~ is tmle ~i~h ~n~ re@Tessive tax bear the Erect. burden of it• "~.~ ~ea!t hy, ~I~ rl¢/l. ~ho~e who ~re SUbstmn~i~/]y well of~, pay ~. bit more for • D~e~g~ Of e/g~e~tes, o~ eOUI"S¢. bu~ they will no~ have grea~ coneem absu~ It. I tblnk ~naliv I woul~ note..~. PreSident, ~ha~ ~his Dar~ieu~ gac "kage is ~. c~" ~L~ly craf£ed on~ of compro- mise, ~rying to deal wi~h this issue of- ~x~ior~ as weL~ s.s ~o de'a/ wi~h the general Lssu~ of the tobacco pr o~l-am_ I think ig is in the best interest of sll jecte~ I appreciate the o~portun~F U) c~use i~ ~ould held reduce ~he dell- s~esk~oiL ci~--but because. Air• ]:)re~/dent, sooner ~r. lC~esident, since 1982 when th~ orla~ertheE~en~tev~o~reco~,I cigarette ~xcise tax w~ ine~ed bel~'e. ~uDpor~ng this ~nd of ~n~nd- f~om 8 ¢~nta to !~ ce~. consumers of men~. An~ f~on~ mF pe~ec~, ~he ~h~cco prod~c~ h~ve borne an ~nordi-" sooner ~hebet~en n,~e ~h~re of ~he ~xe~ that ~e L~- M~ PACI~VOOD addressed zhe posed st ~ ]ev~ of gove~en~. ~t year ~moxer~ D~d Federal, S~e, and The PRESIDIN~ OF~C~. The M~ PAC~WOOD'. I ~eld to the M~ FO~D. M2. President I w~u/cl lik~ to have i minute ~o rebu~ ~e Sen.¸ a~or from New Jersey. lTia~ is all i~- wou/d tak~ Mr. E-4~T add~e~ed zhe C 7~a h'. Th~ PP.ESID~G OFFIC~ (Mr. WI~ON}. "~h~ 3enamor from North Mm~ EA~'I~. Mr*. ~eslde~t. l shS2d be br~el~ ~nd probabl~ we ~'e overlndU~g- ing the sub~ec~ rantO/y. I will n~ ~Z- ~empt ~o enlarge on ~n~ ~zr'd~4~- mensiot* of i~. Aside fro~ the goo~ points ~ha~ h~ve ~d~ad y b~ m~de h)" my diSt/~d collea~'ae abou~ ~he cig~r~t z- ~aac% t e osccc-vroduc~ ~tat e~ one thin~ I f/n(~ ~rou~mm i~ th/~ ei~o~ fs yat~ ~ ~ to m~/~, it c~c~r~ to me. aocompL~h ~rahibitio~. by tax~dan. ~n~ i ~h£n~ the ~enazor from Ne~ Je-)~ey ~ conceded that the ~he~ L~ ~ ~h~ le~ people cc~surn~.. L query wh~ther th~. is n@t ~n a~tL~e o~ the r~enu~iag system whe~ lees/ governmen~ more than $9 b!l* llon h% Zsx rever~e. ThiS is ~le~.rIy ~*hree %Jmes ~,he ~tn.ou/%f_ ottr smaPl. s~rugglhng ~ob~eeo farmers made /or the£z 188~ cr o [~- The increased exc~se tax h~ hut8 moa~. tl~e ~eopl~ wh~ ~e less~ ~ble to I~my~ R~ently, l~of. Glen Ch~Dpelk of Eas~ Cazoktn~. Unlver~i~y relesaed m Study on ~he impac~ of ~ob~ceo t~xes~ part of Which I ~uot e: sources o~ add/~ionsl r ~eD/~ e~, thelz km DOSI~ ~/01] ~ not ~i~ou). ~i~¢ ~/rpr/sin~ ~ ~2~tive t0rc co~mer d~zsions, z~nc} reduc~ o%-et~ ecn~n~ We~er~ PutTth¢iTaore, to~ ~ ~ fr~tahle borer t~au~e lh~ d~ the *.~ ~o~ ~'~cts ~nd~ b~'~use the ~m~a~c~ ~ am) t~x~ s/~ ~s~ CO~D%ZS~ ~ Laxg~r ;)0rf~0~ el D~ and, n~- n~mty centimes' budget s. ~U~ n~ ~ fh".0, mysell in a ~tr~n~ pr ~me~a ~ ~l (~der tc) ~ the TO- b~c~ Prog~.m ~hm~ L~ so ~nt~d~ ~@ the ~-~ o~o~e2, Of ~J~ St ~.~es. i m~sz ~uppo~ the re%me excise tax ~h~ h~ dsmage~ no~ on/y the economic w~e of 5~) provement AC~ of 1985. Tlus legusia* dora L~ c:i~l~'~/ to the long-I~,'m, we!l- bein@ of th~ irn~or)~t part of the American ~Ticuisura indus:ry, and tha~ ~S W~Y ig should, be ~¢luded tn ~he budget r ec o nc'2J.~.ti0n. i~r. l~esidenL once a g'~/.~. our t obac- than the~ fair ~hare of cuts and .'~- ductions SO t~ t~y ca~ Drese~'~ the~ }ix~Ith~d~ WIthsut L~S le~-~L~ tlon. I fesx. tobacco farmers emsHy eosld lose th~ li':elihood. I strongly urge ml" eollea gue~ to join with me L~ su~or~ing this e.'/tic~], leg%SlS31on. The PF~ZS~DLNG OFFICER. ~.Vho yields tLme.~ 3~'~ C I#_~.m ~ addressed the Chair. The P!%F.~.IDI~G O.~2ICE~. Tke Sen~t or f2am ~hed~Is]m~d. l%.t.-_ C~L+~E. 1~r. President. I ¢on- Wn~ulate ~he di~[n~uished ~ena~or ~r~t New Je.~_ey for hi% remarks_ I ~hought. they W~re r~ght, o~ tar~'st. %qhat Lhi~ amendmen~ is all about, ~r. i°z~s~de~it. ~ ~l~mm-~on. is th~ Aa has been pointed ont e~.r1~er. ~. lot ha~ been $~/d o~ t-hls amand~en~. I do wa.n~ to thamk those. ~'hs have sl~ken favor o~[ it. It. seer, stC Lne "xe a2e" ~E ki-~g, tw~ points here. ~re rLu-~in~ these h01Tet!d0uS dificit$ evez~I ye~.r, everT ~ddi~iOtlal eenl. Cve~ dollar, every millisn or hiE[on dcllat~ we can achieve i$ good for.the ~econd. this is m heahh measure~ 2. vo~e in f~.vor o~ ~hi$ ~nendment is a vote ~o }m~rove ~he he~d~I~ of our Nat~cn. There ts a dlree~ corr~l;~tion ~e~ee~ )~he size Of the ta~; :~l~d ~he o~o~r~ of smoking, s.~d partlc~I~r}~ in com~ee~Jo rt wiZh y~un~ people. The ~un~ ]~eo]~e ~e i~ ~he W:O~ th3~. do no~ ka~'e e~oU~h f[nan~a~ ~lasti~ty ~o theF csn ~nti~ue to) bu+y ~'e~tes ~ I ~he m~e~sed Drlce. As ha~ b~en Doln~ed~ c~r. When we wen~ f%om ~ to 16 cents. ~here ~-a.~ ~ fai~'IF dramagi¢ dem~ase "in ~he number Of young ~op~e Who Were sm~o]r2n ~. who to~ t~ smoKin~ or ~on- bnued smog. tee. Ther~ h~ ~. vote of 10 ~ ~ ~n in- TIUS ts ~ t0t~k of 24~ cent. I ~h~nk an ybod~ ~ho h~s ever had m you simply t2~x ~me~hing out of exist- mizen Americ:u~ who choose t~ rel~ive, ~ ftlend, or ~r~ acquafntance erm-e. I~ ~e w~ to g~ to prob/~d~ox*. ~oKe~ bu~ ~o ~ eeonomJ~ ~e/fs2E- or h~ seer) ~.~y~ody WhO s~ffer~ froiA perhaps we m/gi%t ~r~ a eo~itution~/ of nearly 700.000 families whe ~ d~- emD~ysen1~ which ~o me ~ one of the ~mendment sa we did wi~ drinking rt~ly en~e~ tn ~rodueing tobacm)~ rnos~z~ghtenin~aHment~.I h~ve se~n, some deles o.go. and Io}iow tha~ the ~75,000 ~"ail~ larrn~ tha~ deDen~ or who ~ ~een I~v~c~ one& s~ff~l~ rc~e. ~). i ~ troubled wher~ }~ L~ art tobs~co for tbelr i~elihoo4s, an~f f~o~t c~'~c~rof the lu~l~s, cancer of the admitted by ~hose ~u~por~n~ t/le ~r ~he ~,00~. wcrke~ who earn ~heir chest, the hear~ ailments that ~e 9x- ~b~h~D~.~Do~eofiL~(~btm~mbou~ livingm~nuf~eturin~tob~'co_ so~4ated~th~ok~ wiHres/~zat.ha~ tha pro~ubi~ior* oi tcb~cc~ ~mo~ng. I In we~=~ing a~ oi these factor~ I ~e ought ~o see~. tr~ ~d rapI~mz ~m W0~d prefe~ g':eater in~ellec~u~/ hen- ~ ~ s~t'~ ~he T~b~..~co k~'~.~:am ~rnendme~t~ esty ~ v#hieh we simply set out by i~ the mo~. im~or~sn~ ccnsidera~n. I~ i~ not ~c[zr~ to s~Ive ~he problem some s~hem~, legis]~.~Te Or coD~$it~- Th~ l~=~e ¢onts/n~d it* ~h!s b~Idget, eom~) et~ly bu~ i~ ~d hel;) I I/~ 5~.. tion~l ~m~ndmemL an~ Drob/hi~ tl%e reconciliation pham is ~he resul~ Of a c~lle~gu~tm s~t)Dorz th~s ~ma~idment• smoking of ~obacco. I d~ n~t suppose ye~'s won~. kf~ny long mee~s be- ~r. PAC~TW-OOIX i ~d i rnlnu~e an.vone v~uld s~gporT. ~h~ But~ ~m tv,'een~rowe~i~.~(~ tob-~ totheSenazorfr~K~n~tnc~F" 5ZZ001375

October 22, 1,$$d CONGI~ESSIONAL RECORD -- SENATE S 137S7 The ~SIDL~G OP~IC~R. The Jng amendment, because It is not ger- The PRESIDI2TG O~x~EI. CER, The ,~.e~ator from Kel}r.ueky, -'vlr. FORD. Mr. President, as Ba~TiiJ~ said. there ~ s. sucker baits every I!~iIlt/t~, He forgot to tell us ~bout the people who were looking for him. The t ob~¢co companies a~ not going to reduce their ~bi/]ty to earn i~¢ome, What. they w111 d0 is buy cheaper to- bacco, foreign tobacco, imported to- bacco. This tax is a question of saying to so- ciety th~.t we are going to pu~ you in the social beh~.vlor are~. we v;an~ you in by t~xing you trod by pa.~mg a l~w here In the great deliber~tive body of the U.S. Senate. Tha~ in my o~tnion, is wrong. Thr~ is a/l this tax is abouL trying to force smokers Jn~o a particu- l~$r See]ill environ~tent, or sacra[ he-hay- for by this ~ay, It is wl-ong. They will fred a wa7 to get around it. They Wdl bring ¢2a im- p(~rts from i~oreigoI~ coui2£ri~$ t~at v.q}I h~ve pesticides and chemicals that. we do riot W~Lrlr~ ~ ~grlcoLlrage ]T~y col* leagues to vote agains~ this ~Lmend. The P~ESIDING OE~[CER. Who yields %ime? tvlr. PACKWOOD. How much time remains. Mr. President? The PRESIDING OF~:qCER. The ~ena~or from Oregon ha~ iI too-rotes ~nd I0 seconds. The Seas:or from ~hede Island ha~ 29 minutes and 45 seconds. ~Ir, Cf~LA2'EE; I suggest the absence of a quommn and ask that It be charged e ~.~ally to h~h sides. The P~ZSIDINO OEICER. With- OUt objection, it [s SO ordered. The clerk wifl call the tell. The le~/~.tive assi~tan.t proceeded ~O ~.II ~iae rO]L Mr. DO:vIENICL M/r. l~restdent, I a~k unanimous con~ent that. eke order for the quorom call be r e sore.deal. The PRESIDING OFI=XC~R. WKh- o~ ob~e~ion, it is so ordered. M~r. DO~tEhqCL Mx. President, I ask the dLst~ngUi~hed ¢tmin~a~ of the F~na~ce Committee if he will :4old bae~ the remainder of his lime, t~%r. I=AC~'AVOOD. M2. Fresident, I am happy to yield ba~k the remainder of my time to the chairman of ~he Budge~ committee. M~. DOMbqCI. Mr. President. how r~HCh ~Ji~e reIT~!n8 ]iI~der the conbl-ol el the Senator from New A~exico Stud how much under the control of the Senator from ~Rhode Island? The pRESIDI210 OFPICEI~. %'%ven~y-slx minutes, fifty-five sec~nd~ re~aL~ ~der Lhe conI2ol o~ t~l@ Seas.- tot from ~hode L~lan~: 5 minu£es under the control of the Sen~.tor Irom ."low Mexico, lit. DOMENICL I am prepared to yield back the remainder of my time if the d~stin~n~hed Sen~.r~r fr¢~m ~.h~e IM~nd is. Mr, CH:L~E~. 51r. ~residen~, I yie!d back the remmnder of my time. Mr. DOId~I~qCL Mr. i~resident. I make a ~olnt of order that ~he ~end- ger~n~ness. Mr. DO.~¢~ICL Mr. President, I woUld like to table the motlon ZO w~Ive the g~rlTlallene.~ reftuiremen~, SO would be pleased to yield back my tlme. Mr. CH~. I ask for the yea~ ~.nd nays, M2. President. The PRESIDLNG Ol;F'xc:~. Is there a ~ufficient second on the mOtOr1 to W~iVe? There ~s a sufficient second. The y~,~ ~nd nays Wel'@ ordered. Mr* DOIvL~TICL ~r. PresidenL there Is a motion-- Mr. CI~. ~. President, nexL t!:e Senator from New ~eNico i~ go iI~. g tO mOVe tO table my motioi$. Thee iS satisfactory With me. I m ~repared m yield back my time if he i~ on th~s de~at~ on gerr~l~neness. The PRESIDING OFFICEI~. I~ all time yielded back? Ms'. DOM~.NICL ,%,It. President, I Nteld back the remainder of m;' time. Mr. Clq~. I yield back the re- m~inde~ of ~y raffle, The PRESIDING ONCER* .~II time has been ~ielded b~ci~ on the nlot[on to % ~ive. Mr, DO~MENqCL I s.~k for the yeas a21d Fi~',,S on l~y 1T~o~i0n to l@.y o11 the fable tile r~o~io~ to v.'a[ve section 305(b)(2) of the Budge~ Act. The PI~ESIDINC- ON~C~R, Is there a sufficient second? There is a sufficient second, The ye~ and nay9 were ordered. ~r, C!L~EF~ Mr. President, before we go to the vote, I think if t~e ChMr could p~i~f. Ol/t Wtlat Vote does what. on this motion to ruble. The motion to waive the Budget Act is • vote no on the motion to table. ~m I correct? The P~ESlDr~ OFFICEI~.. The pending question t~ the motion of the Senator from New Mexico to table the motion Of ~h.e Sem%tor from Rhode Island to waive tile Budget Act re- quirement, Mr. CHA/~CE. So those in facor Of +,he increm:e in the cigarette tax will vote no on the motion to table* The PRESIDING OFPICER. The Chair is exceeding i)~ prerogative in respor~dlng to the question of the Sen- ator from Nhode ~lzma. mane to the reecneiilz:ion bill, as pr0- qllestien is on ~greeing to Lhe moLio~ :idcd in section 305(b)(21 ef ~he Con- of ~P.e U2enator **ram New .%~exieo r-o ~'e~si~n~l ~udget Act of 1984, is out of lable the mo~lon of the Senator frc:n order. I%hode Island. The y~ znd nays have ~!r. CEL~ .'dJ. Preside~L pLUSU- been ordered. The c£erk ~L1 call tP.e ~.n~ to section 904thl of the ~udget roll A~t, I move t~ w~iv¢ the germaneneta The le~slative clerk called the r0I!. requirement contained l~t Section ~r. ~I~IPSO.~q. I a2"a%oul!ee th~.t th~ 305(b) of that a~2t for the eonslder- Senator fr~ra ~%Ii~.~uri [.NIL D~.~- ation of mF pending amendment. ~] and ~he ~enator from M~r~'. The PRESIDING O~CEI~. Under land [tIr..N~a~H~$] are nece~ar~y the Budge~ Ac&, there is i hour ef absent. debate every divided on the motion. Me. CRA.X/STON. I am~0u~e that Mr. DOM~ICL ~Ir. l=Tesident., if the Senator from MJssauri [Mr. gaOLS- the Senator is prelim-red to ylaid back hL~ time, I am p~epazed to yi.ld~ bach ~0N] and the Senator from I~awail • [Mr. l.~ouvE] are necessan!y absent. i~/ne, ~,ir. C~A~E. I would llke to have a The P~.ESIDING OF~P!C~, Are roEcall vote on my motion to waive there any other Senators in the cham- ber d~iring to vote? The iesuI~ wa.~ ~noumced--ye~ 66, nays 30, a~ loll~w~: [Rollc~l Vote NO. 240 Leg.] ~n.AS--6S Aba.*¢ G~re MClCh~." Andre~ Or ~.~r~ M~tze~aum .~roa~ Gra~le~ MurK~w~i Biden Har~/n Nick~ Boron 1~ar~ Nu~m Burape~ ~s.v,,xm~ packwoed B~d He~hl Pre~!er Cn~les Hefi:n Pryot CCC*~a Hem~ Quayle D'~az~ ~leEin~ RucLn:~.n De.;on Joh:~n S~c p~on Dole K~rr7 ~ma~ D~rnemct I~x~It Thunr.oa~ EXert Ma~t [~y War~er ~,~r~ McCIUre W~i~en Gv,~{er MCCO~CU Zor W~k~ NAYS30 B~n,~e~ Go,to. pert Bm~m~ ~awh prox~i:i- i~a~iiwi~z p~a~ f~e!d ~ec~e~e~ler Br~,.d~eF K~nned~ Roth B~Ie~C~ I~ule~be~ Sarbanes Ch~ce Loony S~acm CohcI~ Le~q ~t~c~er E~ar~ Lug~ . SI~!ord O~-n MR¢~ell Wc~ker NCYr %r0TL'~G--~ Inaave 51azhi~ So the rao~ion to lay on the table Wa~ agreed to. _%It. PACII%VOOD. Mr. President, I !I~ove 50 ~o~ider tile vote by w~ie~ ~.he IZlOtion [O ]~y on the t~bIe %%-o~ agreed Io. .~Ir, DOMENICI. Mr. President I move to lay that motion on the table. The iIio~foll tO l~y all the ttlhle wg~ ~greed to, The PRESIDING OFFICE*R,. The Chair will now rute on ~he point Of ordeF. The aI~e~d*~, eat of the Senator from Rhode I~iand intteduces a n,ew sHb!~ et Y~1~t I eF not c'drre!![ly ~ nt ~..ip. ~l in the bill a~Id for thaz reo2or~ i~ is not germ~.ne~ The point of aider is t~ell taken• The amendment falls. The Senator from New Mexicm Mr. DOMENICL hlr, President. Sen- Mr. DO/vIE~NICL l~eguiar order, .%~r. ator~ hzVe naked wha~ we intend to do President. ,".ext. I understand the disling~h÷d 5 200137fi

s 137s8 ' CONGRESSIONAL RECORD -- SENATE October ~2, 1985 leader, we wUl try to accoffL~odate that. l can a~z~ur e hLm tonight we have the ~Atatlon of sever'a[ other func- tior~ and V, qll l]ot Likely press for fur- ther roIlcall votes this evening and I will get back to the dlsgLng~alshed Democratic leader and see ~i we c,%nn o~ a~C0l'lil~ 0d at e hiI~a. ~,~r.. BYRD. I thank the distin- guished majority whip. ~. MITCHELL Mr. President, v#ll the Senator yleld? M2. DOMENICL I am ple~ed to yield. ~v. MITGIaJ~.LL. Did I unde~tand the assistant leader just to ~tate that there would not be a vote? It is my in- tention to proceed Wi~h my amend- k~en$ ~ We ¢ilsc~sed ~IId t,o h~ve vote on it, Mr. DOME~qCI. I did not under- staxXd ~he dl~tlngumhed majority whip to say there would be no further votes tlds evening. IZ%'. SII~S ON. D~d I not s~y that? Mr. DOhLENICL It is our intention to try to dispose of the Senator's amendment tonight: I cannot say whether tha~ w]U require one vote or ~wo, or whatever it vAll be, but that is our Intentlom ~¢Lr, M~TCIJ2~LI~ I thank the Sena- tor. I wanted to make sure. Mr. DOMENICI. While there ~Je Senators l~resen~ on the floor, might I J~t make thi~ armouncement2 We now know ~f three amendments tlmt Sena- tors l~ave told us they have. We are going to try to rotate back and forth between ~he two sides a~ we have in the ~g, It Senato.~ have amendmen~ that they are aware of--there are al£o seri- ot'~ germaneness issues on a ~ill liRe t 'b2s~I ~uld be plowed ~o ~tart making a llst and do my best to accom- modate Senators, but at this moment only know of three. L[ Senators could start get,Ins ~hem here we might be abl~ ~;0 ~o~odate them even Rs to time. Wi~ti ~ImL I am prepared to yield the floor if the ~enator from Maine is prepared to offer hL~ amendment. 1M2. ~41ITC~'~T,T, I than~ the Sena- tor, ~MILN~M~ NO. 8~0 ll~u~u~e: To delay medicar~ coverage of current St&to an~i local employees, an6 to fIl~Tea~e the cig~2e~ t~x by 4 ~IIL~ for 3 yea~s.l Senator from Memo. Senztor ~I~CH- • ELL. h~s all ~mendmen~ Lnvoh'in~ c~g2.. retie taxes and ~m.other subjec~ all in one ~aendmenL It will be our inten- tion ~o take that up at.this point. I Understand the Senazor will be willing to take los3 than a full hour. I2. d:at correct? Mr. MtTCH77,L The Senator is eoc- _ r~t. Mr. D OIVfENI CI. We l~rObahly WOU/d be W~llll!g to eolxie to a t i2Ile agreement on that. The distinguished majority Ieader Lndicated that after the vote on that amenchl~ent, whatever th~ vote. we Would not have any further votes ~his evening. ~o it x%'ouid be our intention to pro- ceed ~ith the Mitchell ~ale~dmei%~ &t chls time. Mr. BYI~D. ~Ir, Presklent. v.'i]l the distinguL~hed ~en~tor who is chairman of the comma/U, ee yield to me for an. other question? s',ir. DOMENICI. Indeed I 5'ie!d. Mr. BYRIg. :V£r. PresidenL Lg the dis- tingalished msmager of the resolutiola in a position to tell the Senate at thk~ ~iiT.e when w~ ~ll beg4J1 our study on the matter tomorrow? Mr. DOMENICL I ~an sorry, I say to the distingUiShed minority leader. Someone was hsndling me e. note about the pending amendment and I did not hear the e~tire question. Would he mind repea~.g it. please? Mr. BYI~D. Ye~. I shnDly asked when the Set%ate would be expected to re~ume consideration of the reconcl/i~- t~Ol] rll~ Rsur e t orft o r/-ow, Mr. DOI~ENICI. I have not ssked the d~tingul~lled malority leader. Per- haps the majority whip knows. I think we have an intervening appropriation bill in the morning. But I am unin- formed beyond that. Mr. SIIMPSON. Mr. President. en behsM 0£ the leader.¸ ~th whom I have no~ conversed [ii recellt mo meilt~. I v¢oU/d ~a~ l~ is the inrmnt ~o go for- wartl 3.~ ~n early hour ~tld to proceed this week at 8 area. or 8:30 ~m. w~th our Senate opening and continue to pr~e~$ this me~stl2e ail~t ~21other ,%ID- propi~tlon i~!ea~tlre. I caD~ot b~ ~t~ore ~peci/'~c other thllJ1 to ~ay that there will be rellcall vote& likeIy in the morning hours ~d con- tinual opening of ~he Senate at 8 atom or 8;30 am. in as1 elfort. ~0 process th~ busine&s at hand. Sdd-. ~CHFLL M.r. President, I .~r. BX'~D. I~. President, I Would send an amen4maent to the desk and hope that the Sen~.te would no~ return ask for ira immed~at e eo m~iderz~Io~x The I~RESIDING OFFICER. The tanend~n en~ ~ be stated. The ~istant legislative elerR reRd as followS:. The Senator from Maine ~tr. Mr~zl SIt,ON pr~posea an tmaend/nen~ nu~m~l~d 840. ~k unaniraou~ cor~ent, that, r eadLng of the araendment be di~permed wltiL The PI~E~IDINCr OFFICER. With* out objection, i~ is so ordered, The anaen6ment ~ as follows: to the reconefllation measure so e~rly tomorrow, may I suggest to the dlstin- g~ished majority wlalp, The a~end- ~uICe i~ rlO$ ~00 gO~d SO e~x]y 8/Id yet the time wmfld run whether or not the art endaiace is good- I would hope that we would not resume consideration of the reconcilia- tion measure before ii s-re. ff ~he dis- tingn~mhed mg~]ori~y whi~ lknd the dis- fine--dished majotigy leader wou!d kindly agree, Mr. SLMPSON. Mr. President, I say to the distin~ished Democratic Begir~nkng on page 421. litae 8, stroke Out through ~age 422. hne 21. and in~gr t in lieu thereo{ ~he [ollowing: al~e~dsn~rlt$ rA~xle b~ ~tlb~tfon (~x) sh¢.]l apply to s~qce ~erf¢)~ed b~. six llldivIdu~ on or alley his ~p~l~Able ~ffe~tlve date determined under paxagr~ll h (3). (A} IN ~--The ~gt~ndment~ 122~fle ~y subsection (b) are efI~iv~ With re$1~t t9 ~m. ald~ {dLLul or~ and a~ter his a~Dl~cable graph (3). ~nd thl! mmen¢[ments mad~ by paragraph (2) of ~hat su~¢¢tion ~l~pLv to ser%.ice perfoi'T~o:l by ~1~ iI~dividtlsl 012 or after his appHcabIe effective date. l~r Dllr~$es of eSt~b!L~hh2g en%itler~en~ ~0 hospital incur ance bone flL~ under par~ A of ti~!e ~--~qII of the Social ~eeurit y .a2ct pur~a- ant to the mmen~ent~ mad~ by subsection (b) or the glr~vi~ioim of ~t21o~tiofl (d), On the b~i~ of medicare quaJafied ~t~te ~nd ioea~ @Iaplo:*T~er~t, r~o indawldu~A may be con- sidered t~ be trader ~ d~bllit7 for a~y perfod before bA~ ~ppiie able effective date. (3) AI'I'LICA~nI~ ~F~gS"Xa~ ~A~--An Indl- ~ndua]'s aplJlicabIe effective d~te is~ (A) Cotober 1, I98~, in the ~ of an L~di- ~iclu~l Who L~ not an employee of z ~tale or politie~l ~ubdivi~ion (or ha.strumentallty which is Wh01B' Owned thereby) on Septem. bet 30. 1986: anti (B) October ~, 1987, in the ca~e of an indi- vidl2 ~] who L~ SUCh a~a eL2. ployee on Septerla- ~er 20. 19B~i. (1} IN G~WmL~L- FOr purp~$e~ of zectiot~ 226. 2262~ 0rod 1811 of the ~o¢i~ Security ACL in the c~e of an~ individual who-- (AI perforn~ ~'ice dtLr lng tb~ C~ob~r in wP~ch h;~ ~l~[i~ble effeetivs da~e occ~ o which co~titute~ naedleare qual~ied ~tate and iocal g0vernl~ntal ~mp]oyment (~ de- flzled ha se~tioEt 210tp)(1) of sl~eh Ac~); al~d (B) ~erforraed se~wlee price t~ his applies- hle effective da~e, whirl3 ~/otdd ~P~II[IZa 12~edleal-~ ttua][ffed ~tfft~e slid logal goverT~. Inent-~l employment if performed ~!t~r bL~ ~Dll~ble eHe¢~il'e date. * ~uch [nd2vid u al'~ Stat~ and local gover~men- t2A empl~ymenz perffonmed ~for¢ h~ aDp~l cable ef fe~:tiv~ date shall l~e e~lx~idel'~d to I~e "e~nplo~ent" (~ defined lot pu~t~es o~* tltle 12 of such Act), but only for th~ pt~. pose of Drovidfng the hadi~dual (or another p~i~oil) ~with eaxtitlem~sl~ Io hO~Dit~l ha~L~- a~ce beneli~ reader p~.r~ A of title XVXII of Z4¢h ALL On page 372, ~tnke out Iin~ S through 10 told mserg in lieu thereof the following: Is) R~'~ OF TaX*~ub~eetion (b) of sec. tJon 57111 of the Internal ReYenue Code of 1954 ( reL~tAng to rate Of t~.x ~ cigazett ~) ill am~nded-- (1) b~, ~t41klng out ,,$8 ~er tl~tmand" in p~R (i) ~nd il~erting in lieu thereof "$1G per thousarld ($8 per thotmand sifter October 14, I988)"; Snd (2) by s~qleA~g ot~ ,,$~.80 per thousand" in ~ph (2) ~d inset ring in IleU ~her~- tlf *'~21.00 De]" ?,hoU&gffid t$1~.80 ~el- thou. sand after October 14, ~988)'*. (b) FLOOR ~TO~m~.-- (~) I~$~2ION O~ TA:a.~n Cig~r~t~ manufaeture~ m or ~mpori~ into the Ui~ted States which mee x£mo~ed before No- vember 15. 1985. and held on such date ~or ~e by a~ly per~o~t. ~her~ shall be napped weighing not roor~ ~h04a 3 pot~lar~ I~er thoU. mind* $2 per t hotmano2.

Oetober :~2, ~.9S$ , CONGRESSIONAL RECORD--SENATE S 13~9 {B) LA~ c~'t~¢'~'~.--O~ ¢:gsrett~s, [0¢~ e~Ipl.~ses but ,~,OL~I~, delay Love]"- recen~ ~'e~IFs v:i]] ~Ul~i next y~,I- !11~o ~. ~* eighi~ r~ore lh~u 3 ~oun~ per thou~*nd, $4 Z0 ~e¢ t~o~:~nd; except th~L LI mor~ ~h~ 6!~ incil~ m len.ozh, lhey sh~ be ~m~.- able ~*, ~e ~e ~tts~bed *cot cig~2~tes ~ =-i~hinZ n~t n~ore thi~ 3 ponds ~r thou- sa~d, eot~llin~ ~ ."% ~.~he~, qr f~'~ion thereof, of the [ensth of each ~ one m~- retie, (2) L/ABI'.ZZ~£ FOR T~ ~ M~/~0 D OF pAy- any ~ax imposed by D~/a~ph I~.) ~!~!le~ shall be l!ab]e for such ~x, p0F.ed by p~g~D~ el} shall be tr~ted as n~l Re%elzue COde of 1954 ~/~d ~ be d~/e ~d ~ayable oF* :3~enaber 2, 19~5. ~ the ~amo ~a~nner ~ ~he [~ Jmpo$~'d under ~uc~ .<ection m pay~b~ ~Ith ~'~ D¢C~ ~o cl~rett ~ removed on November l~, 19~5. (3) CIGaF,~w~--For p~o~e$ of ~*~ $~b- ~ectio~, th~ teF~ "¢igar~te" ~huli hav~ the me~ing ~i~en ~.o s~¢h ~e~ by ~$~tion Ib] of s~icn 5702 of the Inter~l¸ ~e~,enue COde ol 19~-~. hn~&ed ~E p~xag'z~p h ll) sha~l ~o~ a~Dly cig~st~ ~,~ r~t~ ~toc~ held on November I~. 1989, a~ Lhe p~ace where if:tended to sold a~ ret~l. IC) E~ZVZ D~ ci~rc~e~ =emoved ~f~r October ~4. 1985. "(2) CONFOR~II~G ~ME=;DM~T,~C~iOn ICl OI sect/on 253 o[ lhe T~-~ ~ui~* ~ud Fi~ca: ~..,~ on~ibiL'~" ACL ol I$8~ is a~ended by ~trt~ing out "~*d before ~ovember 15, 198S-,. blr. DO~NICI. Mr. President. mlg!1~ I a~k ~he dLstLng'aisi~.cd Senator from Maine, is he prei~ed to shorten She I hoar ~ha~ IS a/lowed for hLni? %re are preps.red to shorten our i houz in opposition withou~ wais'ing ~ermane- II¢S$, Mr. NIITCH~7,T, I ~ prepped ~o do ~h~L Mr. DO~IENICL ~i~. President, i ~k unanimoUS cc~en~ tb.a~ there be l hour equally divided be~.ween Ihe d~- tin~ish~d Senator from ~Iaine and ~he ~eIl~.~or from ~NISW }/~exieo i~ ODDO- sition Ihereto and I do L!la~ w~;zhout w~Iving {he germa.nene.~ defenses tha~ might be applisabIe to ~he penal- The ~ESIqD11~O OI~FIrCE:~. I~r. PPzss~a). Without objection, i~ i~ SO ordered. ~Ir. DO~ICL _~r PresidenL I v ~ d_ he time in o!~p 0simian to ~he dis- tingtlished chairman of the ~-~ance Con~ni~ee ~-here jurlsdisdon of this m~.tter lies. The pRESIDrNG OF!~IC~]~. The Senator from M ~L~ e. ~. MITCIZfELL. ~Ir. President, this araendrnenz would delay for 1 year the implementation of mandatory Medi- e~.re coverage for S~te an~ local gev- Under the bill ~ reported by the Fi- nance Comm*ittee. ~l Sta£es and !oc~.l ~overnment emp]oyees ~'fil ~e manda* ori]y covered under the Medicare Pro- g~-am ~s of Sep~embe r 30, 1986. My ~n~endme~ '~'o~Id leave th~ date untouched a~ re new State and a~e for 1 year u~n~Ji Sep[embcr 30, 1987,'Ior current State gove.'~rnent and l~ai government empioyees. This delay wou]d ~ive each ol the ~ta~es a~d ~lle m~'~iclpaliises throughout the ¢OU~.'~ al3 additional year to ra~e the i~vel!ues n~ces~'y to f~12/Ic~ the e~- ployel~ ~orti0~ Of the ~,Iedic~re ia.x. I ~m d~eplF ¢o~¢er~ed ~bou~ ~he ne~a~ive impact this Drovfsi~n will h~.ve On ~t~*te gove]l]~aent$ and or* Ioc~] govevf~.ents aczoss the ~'~.tion. .~-s to ~t~te ~overi~ent eml~loyees, the most severe effec~ wLll be fe_~t in seven States which hmve Independent Sta~e reti~emen~ system~ and, ~here- ~or~, ~l~.vo oi3e or ~ t~lt~ ~ & V~ry lew o~ their ~y~l~*loye~$ Cover~ ~3~der the S~c!al ~ecur~ty Proem but ~ to mu- niciDa]iti~--and ~enatoz~ should be aware of this--this "~ill h~.ve an ad- %'a~e effect in ever'.," State in the lYnion, ~very ~ingle State. Let me deal fiz~ ~-nd briefly with St~.te gover~nent employc~. T71ere Colorado, Louisi~a, iv~aL~e. ~Ia~ao chus¢~, Nevada, and Ohio-which hav~ indeDenden~ S~ate ~tirement few o{ their erf~l~]{)yees ~@ ~over~d under Social ~ecurity, The co~ ~o Dro- ~q'd~ng l~gdic~re coverage to ~t~te em- p]oFees will be an ~ddeci burden on ~o~e ~.~s ~,t a time w~e.'3 ~hey ~nd o[her .State ffo~e..~.~.~ents ~e attemp~- inff ~o deal w~h cutbacks in Federal f undin~ in a variety of i~re gi~z~s. In my o~1 ~tzto of Maine, a l~.~al Sta~e ~th ~ p~pula~ion of ~nIy I mil- lion DeeDle. mandatory Medicare cov- e~ge for Sta~e gov~en~ employees will add, Lr~ State gcwernmemt ex- penses. $~ million a Eear. The State will be forced ~o reduce cmt{c~ on~o- il3g DrogT~rm$ or enatl~ h]~heF t~¢e~ And ~ha~ ~ll be true in each of ~he seven ~tates that I h~ve mentioned. Ohio, for ex~ple, one of the other Slates, will be forced ~o r~e $45 mil- lioD a year to ~over ~he ~e~Jc~,l'e em- ployer portion of the tax on State emo pIoyea% But while the pro~on ~J]I affect State ~over~ment and state emp]oy- ee$ in only' seven St~.tes, the D~ovision ~U have ~ ~dverse effect on mu~ici- p~it[es in every single ~tat e. The cGs~ of this for 1 Fear is $2.2 billion. ~nd so Wl~a~ we are saying ~o the municipali- ties of this country k~ ~ha~ we, the Con~t~, a~e eompellin~ them to raise their local t~-xes by $2.2 bfl~fon a year a~d ~e are ~0mpe ]2g them to do i~ irmmed!ately at the end of ~bis fiscal ~is burden, which is to pay for the employer'~ sh~re of the ~cdi~re ~x. ~ill fall upon mumcipaiitte~ in ~hi~ country a~ the ~r~e time ~h~t ~hey face the loss of $4.S billlon in ~ener~t r~iv~g. L~C~.I gov~rn~nt~ ~.czx)~s ~h]S countrF have been hit hard over the l~t 5 ye~l~ ~ • result of those Federal bud~e~ ~u~s which we all know neees~arF. Bu~ £hzt ~au~t of tidal wave and make £he job of S~a£e rand local ~. o,,,ert-~ ents extremely, dlffJ- ~Ult. if not im~ible. In essence, we at ~he Feder~/ le~'el • re tranaferrh~g th~ m0~t diiflcult f~c~l DO~CF d~cisions to tl%.o.~e a~ ~he l~ca/~ev el. We ~re cut t/~g bac1= a varl- e~y Of pr0gTg~ns, ~e are elln~i'~.~i~ revoP.ue sl%@.r~%g, ~A1d thel~, a~ the inere~.~e hl th~ cost. Of loCa/ govern- me~nL~ to the tu~,e of $~.~ billion a yes/'. The n~ ef~e¢~ on ]oc~l govetTl- ments--I ILrai£ thi~ now to local gov- e~.ents--~h~ ~ ~d~'erse e~fect in I year is $6,~ bfi/!on. Tha~ ~ ~he ~oun~ of revenue ;hat 1oo8/ g~v~rI~nen[s will IQse t~oug~ ~h~ tsrmin~,tlorl of reve- nue sh~ring, $4.S billion, p}us the new added co~s, ~mposed on them in the forra ~f the employer's portion1 of the l~ed~care tax, $2,2 billion.¸ Th.i~ is occuring a~ ~ time when the adr~inis~r~ti0n is pro1~o$inff to repeal the local ~ro~erty tax deduction and while the_ l~ederal C, oven-d*nent re- par~/3"zed over dec~ion~ as to whether {)r P~o~ ~o r~ise reventle. I~ this bill p~es as re~¢r~ed by the Fi- n~Tic~ Co~ee, al]E10Gt every t~ty S.nd ~0WD. tn A~.'neric~ ~J/ be forced to inorea.~e its proDe~y tax ~o r~ ~he ~dditional revenues zequis~d by the bill ~s a m~tt el" oft~x equity. I belieee it un/~ir t~ malldate z~ increase in the nL~es, the prol~rl,y t.%x. ~ @. m@.te_er o~[ po]/oF, it ~ incon~LstenL to.say the least, for Federal o~ficials ~o en==age Ln th~ rhetoric we hear daily in this COn- ~re$~, abou~ no~ r~isi~ F~dersl {axes while we, ~ ~he ~az~e tL~ne, take an action whl~h compels ms.nF muniei~ p ~/ities in ~emca to raise their ~axes. Ineonsistant ~ the klnde~ way to de- ~c~be ~h~ ~cz~on, M~; ~nendment will do one thtnz and one ~mpl~ thing o~i.v. It ~nll del~F for i year the nm~dator~ CO- ver~e of c~n-ent Stare and Iota/ gov- give Ssates and th(]se mll~c~aii~ies that i yesr to prepare fcr and ~o ira* plemenL t/~e tax i~cre~zes t~at, ~dl be rlec.es~amy ~t the lees/ ~e%'el to mee~ thu~ added b 'u2den. It is Lncredible t,hat $2.2 bfl/~on a year on rnumc~pallti~s in Amemc~. a~ ex~ct/y the same tL'ne that we e~l~A//1~.~e golio~[ rev~ue Shsrln~ which reduces their revenues by S4.S billion we ~.ve them no ~ime ~o plan for i]~, no tilile to ~eG~odat a ~or this added burden. And ~e 8(re them no time ~o ir, cresse £1~e taxes ~ha~ will be ii ~£~ary to h~e~ this burden, The I year delay in ~V£ed[eare cover* ~@'e for eurfeflt ~t~te and local gover~1- me.lt ~mpl0ye~ will result, as I n0~_cd ~r]I~1., [11 s. l~J~ Of ~ro~ected ~eve~'l~le of ~2.2 bilIi()n, spread over 3 Fears as the budget re¢oncdia~,ion ~i]l contem plstes. 5 200137

~'as ~ 8 cerlts for the 32-year period from 1951 to 1983, For 32'ye~r~. th~ t~.x w~ not i~cre~ed~ It ~-~ h!ere~ed in the Tax E~ui~y and Fin~.r~¢ial P.e, s~on31bili~" A¢~ of 1982. I¢ took effect in I~8~ to go from 8 cents to 16 cents, Tha~ tm~ w~ scheduled to¸ ex~ire-- tha~ L% to return to the 8-cen~ le~'el~ ~n October ~, I~85, D~ in recent le~s. la~ion was extended on ~ iDteriL'1 basis until November 15. The provmio~l in S. 1730, a~ approved by [h~ Finance Co~ic!~, w-o~d Fepea~ t~e sl~l~e~ date thereby establishing the t~,¢ at the 16-ee~t I~%.ei On a perr~anerlt basis, a~d ~ repea~ now, Wo~]d DyO%'jde ~'0r 4-JeIlt i~cre~e if* ~he Federal e:~cL~>~ {~.x on ctgare~,!es fOP a ~-ye;ly period, fronl November 15+ 19~5, to Nove.'nbcr 15, 19S8. I~- obJ ectlve and purpose £s to raise suffici~nt revenues to offset the lOSs that ~.'o111d necur from the l-year S i.6790 " ' CONGRESSIONAL RECORD--SENATE October2~ 19S3 I hnow We are ~ll conceded ~bou~ b~tep the cigarette tax inere~L~e, to than if ~he doe~ not work at all. Now the Federal budget defle!t, and ~o I not filibuster. offer ~ par~ ~[ ~ht~ a:nendment a This i8 a diSferen~ a~ue The ssue ~eeotld l~roDosa£ which wou!d place ix% in%'olve~ whether or not the Stale em- additionM ~-ccn~ t~.x on cl~ettes, ployees should pay taxes into the thereby rais~g the clgmrette tax to 20 Medicare ~y~tem and that their em- cenI~ a ~ac~. T~a~ ~'fl/ generate ap. pJoyei'--~e Smte o~" loe~ govern- proximately $2.2 billion over the 3- ment~-should ~ay taxes inlo the Med- year period al%d offse~ ~he reve.'It!eQ leave ~ystert~ lOS~ ~ a. res&ll~ Of the l-ye~x delay iv& And I emphasize Pay taxes int(~ it mandatory Medicare coverage. Th@ rathe%" th2,n Ilshlg the word "l~Iedt- tax on cigarettes in ra'~- ame,'ldmen% ls care" because what we have discovered not ~ ~ermaaent rex. It is intended to ~s that most State and municipal era* be temporary Ior the 3-year period ployees a~e covered bF i%Iedicare. They oP2y so tha~ it will achieve the obj6~, are norma/ly the residuat beneflc]acy tire of offsetting the $2.2 billion cost of ~omeone else in ~rivs.te ~mptoy- of the l%'e~r ~eiaY in m~ndatory l~ed~ men~, and by virtue of ttla~, ~esidua/ ~car? eo%'era~, ber~e~lsi9.I ~tei*est they are covered by ~V~ have already had extortive i%~edl~re. ExPiable: SailS' works for debate oi% ~he DF0pOS~I to klcree~e tile the city O[ ~a~Igor i~. ~;er hitsbar~d. cig~-I'etle ~ax 8 cents SO I Will be very Mike, works for Interaa~ion~J Pa;~er. brief. The Senate should k~low tha~ He p~y~ Social See~rityl:axes, ~ntcrna- the Federal excise tax on ~igarett~ tional Paper ~.'¢~ ~or ~oeial Security Medicare taxes are ever ]0aid on S~lly, ever. Mike becomes s@. sally becomes 65, nnd she is covered although the t~xes W@Fe IleI'@~ ~2Ri~ ~0~" her. Conh'a~t that situation slightIy. MiMe %'orks for In~ern~H(~nal Paper in • ~laLn@, ,Sally instead of working for ~gangor, the ei~y O~ ~a.'~r. ~e~. u-~rks for L.L. Bean--24 hours a day. ~5 day~ ~ year. ~Ight? She works for L.L. ~eRn. NOW. w0rkh~g for L.L. B~an. she L~ covered by MedJc~e and she pays t~uxes. I-let ~Dloyer DRys taxes. B%It she ge~ no greater benefits thRn she gets by working for the city of Bangor and having no taxes pald ~t all. She ~e~ exactly the ~me benetil~ wheth- er abe work~ for L_L. Beam or the city of Bangor. SO the question flrst be- comes one of f~.[rne&% Sho~ ~;~ose who are ~oing to benefit frpm the Medicare ~yst~m p~.y something? de~a~" iH r~lar~datory Med~cOA'~ ~Dverag~ ~'e i~d~ o[le exception 9~ ~. ]~a~ter for current State ~nd l~.l govern, of ~ocial policy years ago. It L~ ~. good excepti0~. We sald i~ OI%e Spouse works meIl~ erRploye~s. I brge I~lemberS of the -~enate tO in the rn~rketpl~.ce fo~ mo~ey and the consider the umpact that this mand~, other spouse does not work m the tory provision v.iI1 h~.l'e oD~ $tate ~u~ marketplace for n~oney, w@rks at~ espee!s/~y loc~l gover/u-nenL~ in your hom~ the entire tlm@. zleve~ Ireeeives Sta~e~. I repeat, every sLngle SLate will any Wages--~lot fron~ the city of be adversely affected a~ to the munici. Bangor. not from L.L. Beam--that llon- ~galities in that State and will be inco~ne-eo.rn~ng spout@ is still eo~ered forced to fncre~e ttleir '.axes by $~--~ by bfedic~re. Tha~ is ~ matter Of ~ocla/ biLE0n a year to meat. th~ cost, at ex* policy. We thought ~hat was good aetty the same time that they will be policy. But we did say. for those who losing the $4~6 bilHon f:om revenue worked Ln the marketplace, even tttou~l~ they are ~o~n@ ~o ~et the sa2ne bit. President, I urge the iMembe~ benefit~ tha~ the spouse who never of the Sen~.~e to su;~port this a~nend- worl~ in the ms.rketDlaee gets. they meat. are going to pay something into ~ledi- The PRESIDING OFFICE2~. %%9~0 care. Thi~ is because we real~ze~ [u)ly yleld~ time? ~ha~. if yo~ we:re goin~ ~o ex%end bfedi- Mr, PAcK%rOOD. Mr.. President. care benefi~ to sp0t~se~ who don% the arguments against thiS ~mend- earn wages, y~u were going to h~ve to ~e3%! 0by~oDs]~ are Dot those t}~.at, ~it S0~e Wflg~-esr~J~'spouseS' ~2~olley %~,,er~ dsed D.~Di~S~ the ~rte~ler~ o[+ i/fro ~e syster~ tO ~t greg.~r ex~eD$. fered by the Senator f~om Rhode That is ~ soci~l triP.for policy. Senator from 3~aine. Isled. There an ag~"eement'had been Le~ me review this. Mike works, his ~,~r. :~qTC~ELL. I ~ield 5 minates to ins.de between I.he Affrieult~/re Com~ wi£e ~loes not- work in the marketpl~e the Sen~.tor from nHnois. mi~tee or the Finance Committee, or a~ all, ~nd she is cov~cd. She is coy- :~L~. 81MON. Mr. President, and mY ~.t least ~. m~,jonty of the membe~ of ered even though she never pays any colle~g'tles, I ~rn ple~s.e(~ to rise in sup- both. to s~.ue the (Dover1~x/!e~at money taxes, iViike wor}{s. ~a[ly ~orks for L.L. por~ o~ the arn~lldr~.e~ Of the aerator i/I ~e ~OD~CO prograr~ ill ex~h~llg~ BeBll. L.L. ~e~n. D~.:¢S t~x~s, ever~ from ~/~alne. ~.~[t/¢h of ~.-ha~ the disCus- for Sen~tora. who other'~e would fill though Sally has no more benefRs g,/lshed chairman of the Finance Corn- " i~ add~S0~* We ciirr~r~tly say, OS a raazter of sncia2 policy. ~aHy. you and L.I~ BeRn are goLng to ~y t~xes into the fund unless you work for the city of Bangor or ~or the S~te of ~L~ine. T~D yr)I~ are ~a~ ~oi~g ~o pay an~: t ~-~ es L'Ito the f D/%d. That is ~Tong 0~ a matter of social p01icy. I~ we ~re going to s~y ~hat everyone who is emDtoyed for money pay8 ~omething in~ t/le Niedieare fund. even thOUgh they will • get no ~reater benefits than if they ne%'er worked to pay anything Lnto the ~und. ~hen everyone who works for wRges ought to De7 S0m~t hinff ulto %he fund. That's the first questi0n. Se~ol%d ClU es~ior~-- ~ m~tter of tlr~ing. The B~dge~ Cornnlit,t ~e Would h~.ve Ln- e]t~de~i Ril et%r~ez1~ ~.-id .'low employees under the Medicare System on JanU- ary 1. ~986~nexG JanUary. 2!% months fron% nOW. Th~ F~[na~ce Corn~litteo thought that was too ~.pld. And ~he Senator from I~laLne amd Others ar~Qed'4{ery cogent!y ii~ the co--it tee th~ it ~s.~ too rapid. SO ~e eha~ged that da~e to October I. 19BB. a 9- mont*h slip from what the ~ud.et Committee had. I thi1~K we h~2;e a fnlr compromise. This r@concilit.tion bLll is going to be pa~ed, and sent to the President I wo~dd think in the nQx~ 2 week.% 3 weeks, h0Defully. That ~ves SLales 3rid Io~a[ ~overlIiTiel%~s ~ttrtple tir~e ~o pick UD a Day,eat that we r0q1~ire Of every Other ern]:)loyee a~d every o~her e ~'~]DIo y ~r. S0. ~DoJ"t from the nonwage-ea~ng spouse WhO get~ ~ledieate benefits ~s a m~.tter of s0elal po]icy even ~hough he or site ~ys nothing fn~o the fund. we say e~'ecyone else ~ho~Id ~y. ar.d Ch~t includes m~m!ci~a[ employee~, c01untry employees. State employees. &nd L.L. Be~ elnl~lo yee~. 8o. ~ hope cery raueh t~at the amendment of my good friend from M~ine ~H be defeated. I think on policy re~zoDs ~he el'a~loyees h~ve fi~a]y been ~dded ~O the ~e~c~re system. Second. I WOUld h~.te to JeoP- ardize this Whole recon~iHat[on bill by adding a prov~ion ~hst Would 10so rev- enues •nd by adding ye~ a ~'a Jn an addi- tion to ~h~ oig~A'e~te ~S2. ~0 pay for the lost reve[P~es. We ~ hKve a ~O~g~ enough ~irne getiing this pa~ed and no~ ha%~hng I~ vetoed with tl~e 16-cent eig~arette t~. You add that. and I think We bring the Whole reconcilia- tion crashing do rcr~. I llrge the defeat of this sxnendment. The PRESIDI~O OI~ICEI~. Who yietds %ime? Mr. MITCI~ELL ad~e~secl the Chain The PRESlDI~O QFFIC~. Tile 5 Z001373

TI

S 1379~ CONGRESSIONAL RECORD- SENATE October ;22. I J85 :~¢ as ~h~.r prme!p~l p~blic revenue vo;e for this all the time, and yet gram is basically funded by ~etive sQuree, Ot1!er,yise. they ~re largely de- pendent ell funds frown the Sta~e and FederM gove~ment. The dmtinguished Senator from 2,1~saehusetts jl~ spoke of how mu- l~ciD~litie~ ~e dependeI~ upon prop- erty taxe~ for their priricipal public r evenlle sotwce. BecRtt~e this ~/ledicare propos~ im- paet~ znunicip~lJties ~n almost every State, I urge mF coUeague~ to take a moment ~md tPdnk about how they ~re going to explain their vote on thls a~r.en~ent to thef~ local policemen, schooite~her~ ~d flreftgllterz. FOr e:;~mple, most of us in th~ body a~ree that OUr Nation's $chool~e~.ohel~ are ~Inderp~.icL ~nd we have said we wish we could pay our chilclren's teachers ~ore. Eo~ever, if we do riot modify the budget le~i~laLlon -now before u% we will he taking" out an additional 1AS.percen~ bite ou~ of'the Daych~k~ of abou~ one~thLrd of these teache~ next fall. the~e kinds of decisions are eon~Jnua/- ly m~de [r~ the contex~ of th~ ~%/dget reconciliaLiOn legislation. Mr. President, I commend the distin- guished Senator from .'~Iaine. lYIr. i~crffTl, for offerin~ the pendLn~ ~o SUl~por t it.. • . The 2RESIDING OFFICER. Who yields time? . Mx. P&CLC%VOOD. Mr. Pre~£dent, I }Sold 3 mJnu~es Lo the Senator Zrom Kentucky. l%f~'. FORD, l%fr. President, I s3~pao thize ~th the distinguished Senator frora Maine. the Senator from ~Imsza- chu~etis, and the Sena~r from Ghio that we c~zn h~ve problems. My ~.te has problems, too. I r~e ~ opp~sitlon to the ~m.end- merit by my dis~in~ishetl cel!e~e from Maine, Senator ~EdI'C~EL~ Let me ~y f~om the 0nse~. that I Sl/pporz what he is trying Lo do, I just do not suppor~ the way he attempts to ~ay 8inc~ most State governments el- for it, ready ~ar~icipata in Social Se~LU/tF, - I do not support. ~he provis[or~s of the proposed l%fedJcare tax ~ only the reconcfllatioP, bill, as reported really impact State em~loyee~ and from the Finance Commi~tee) which ~ate retlremer*t progrzr~is hl seven impos~ ~ new tax o11 ~tate Bnd local States, my home State ~f Ohio being one of those States. I have al~ys ~rglled tl~at those ~over~eIiL% whether State or loe~, which took the Initiative to $~ uD re~iremen~ be~lefit Sy3tenls ~ good ~ or better than Social Security should not be penal- ized because they had the foresight ~nd leadership to establish these sys- ~er/ts. When the Social ~ecuri'~y Act wa.~ paUSed in 19~5, ~ate and local workers were excluded [r~m partieipa~Z in Social Security because there were e0n~titutional concerns about Federal taxation of Lh~se governments. In 1951, they were a2dowed to Join Socml ~ccurit y on a veL~ary basis, bu~ only if they did not benefit from any SLate or local gover1~T~en~ re~ire~gnt pro. Wcam. and if they were not police and iireflghtew& It was only eventual/y that we opened Social Security'8 doors to almos~ any State and loca/ employ- ee group ~ho wanted to Joln the Fed- er~.l 8ysten~ Mr, President. I ~'n not happy With the proposed Niedicar~ tax. I am no~ even p~ieularly Dle~ed With the ~r~ posed amendment. Quite sfmply, if it is ~uceessfully adopted by the Senate, it only works to me/co a bad situation a little better and a bad budget plan a little fairer. In It~ original form, thls year'~ Fed- eral deficit reduction pl~n included a proposal ta mandaU~ Soeia/ ~ecurity coverage of S~ate and ](~I employees te~.che~, at the l-pe~en~ cor~tribution rate, but retired members ai~o pay a nor~i~a~ prer~ium for rh~ m~dical cov+ e.'~ge. There ate c.Jxrently 44,000 a~tive te~c~e~ supporting po~%~'etiremerkt medi:~l coverage for 22,000 retired teac[~erz a~d spo~es. It would be pu- nitive, at boa1;, to add ~ adchtiop~.l 1.45 percent Medlcaze ~x on these Dublie employees. For a Kentucky teacher earning $20,000 a yesr, ~n.d that l~ a high salary fcr a Ee.ntueky teacher, the additional cost for future .~f ed'care coverage would be $29o. At a ~/rae wher~ We in Congre~ are stri,,~ng ~0 en¢ou2~ge our young ~e~ple to enter ~he teachl~g pi*o[ession+ aIl~ ~ro%~de incentives for ~hose who are c,.nreh~Iy teachin~ ~o remain £n the field, we should not be adding ~ new t=x to Sta~e ~nd local emploFees. It Is unfair to single ou~ this group of Work e]~ ~.~ a/ri~ P~rt S Of pI'~ dlloirlg r~t-~ hUeS for d elicit reduction. ThL~ new tax represents a f'o2%da- mentM shift in philosophy for our Oovernment~ This new tax is n=thln. short of zn attem=~ to shiI~ the ~overnments a dthat i I wha burden of defici~ reduction from ~he © -- ~ ~eX~t y t f it is Mr Prealdent and new Feder~J Federal Oovernmen~ ~o ~he StLe ~nd tax on a ~' v local goven'zrn~n~$. This pro~[o~ The Finance Committee reeommenda- ex~ec ed to produce S~.7 b l.mn un new r~ve~ues over ~he ~ex~ 3 :.' e Rrs. ~alf o~ tha~ .%,'T~OIL~I~ WI/I COrSe fro~1~ ~[?e e~- ployees, and the other half from~tate ~-~d local go%'er'Ar~lenr.~ %~2"e are taxJEtg our States. cities, and counties ~o ba/- a.nee the Federal budget. It is a bad pree ecrent, and one I do .n~ zuppor~. 'l~%e~e IS a &q'~ve l~is~e~ce~sion about the flsesl Portion of our State~ and cities and their ability to fund their portion of thiS new Medic~e ~ax. Our $t~&e ~r~ local governnlents are h~ no be£ter position to finance the Federal debt them are we, A~ Congress continues to cut vital Feder~1 ~.~sist~nee to these govern- ments, in p~rtieular, our recen~ mo~e £~ e]imlnate the General L%evenue- ~AU~n ~ Program, ~ ~ell ~ decreased fl/rlds for other prl3KTa//18, w~ foI~e ollr State ~nd local government~ to pick up more ~ld more of the burden of Dro- viding for the health, safety, and seeu- tion~ ex~end the hospital insurance tax for Medicare to current and new!y hired ~tate and local worke~-~. This is ~0~ ~ voluntary e]cctlo~% for .%ledlcare Covep~ge--it i~ a mandate. ~nd ~h~. m~a~e mes~u~ ~. new ~sd{ on ~t~te In Kentucky, we have four b~ic groups of S~&te ~n,d local employees Who are not currently co'~ered by ~led- ic~re. The largest of these groups is the Kentucky schoolteachers, r~Drs- senting approximately 44,000 emploF- ees. T~e cost to the Co~mnonwe~dth of Eentuck7 for Medica~e coverage for thL~ group alone IS estLm~ted at $12.5 m~/ll~n. That is a hefty ~ax for my ~ta~e, and on~ Wllish We ar~ nol; in positior* to fund. "f"nls ~ax is pertiCul~rly onerous as i~ falL~ on the Eentueky schoolteacher, The ~entucky Teachers Ret£rement System is a~tuardy sound, Eentucky teachers pay for postretlrement medi- rity of o~ citizens. There aze no sur- ca/insurance. To impose this addition- Dins do]/~'~ in ~he tre~.~urles of these ~d tax on them i~ slrnply Lu~fair ~nd - gover~n~ent~ to pay for their share of ~etessary. • the ~r..datory iV~edict.re ¢0v~rag~. Since 1939 the ~entueky Teacher'~ Th~ move will reqmze new tax. h'atla- Retirement System has provlded Een- tires, and ~hat will take time. Lucky teachers wit/~ a sound, funded, The Sea.ate Finance Committee re- retirement syste~ As my colleagues cogized this need by delaying the pro- may remember, public employees were visions of this new tax for i year. ]But prohibited from participating in ~oci~l that, L~ not enough t/me for these gnv- ~eurity Under the ori~ina/ provisions ernn%ent~ to prepm~ fgr th~ new burden. The amendment by the Sena- tor from Marne, Son.tar h~n.c~:~u, at- tempta to addre~a this problem by f'Jm- thor delaylng the provision refluL, ing rnand~.tory ~edic~'e coverage for cur- ren~ employ~s, by i ye~y. I support the intent of wllat my dt~tin~hed colleague ~ doing. I suppor~ grsing o~r Sta~es and eommurdties additional 52200138£ not alrexdy under the sT~stem. I m~ of the act. Kentucky teachel~ Day fnto pleaaed that, thu~ proposal h~.~ been the retirement system at a ra~e of 9,5 scaled b~ek to or~ly m~d~t~ Med~c~re percent. ~h£Ch is rn~t~hed by the coverage. ]z[owever. I WOUld like tO - St~.~e. Of that contlJhution, approx,. r~Iru~Id InY collea~es £ha~ tnany of us mately I percent goes ~0 a postretire- in ~his boilF h~ve ar~ed th~ Social merit ~.edlca/ ins~r~u~ce prog1-'~/n. The Security and Medicare ~r~t {~J:I~d decL- c'J/Teng COSt of the fund is Sl5 ~lion, sions ~l~Ou~d not he rflade for the put- ~2%d is expected to rise to about $20 poses of I~der~l deficit reductiot~ We million Ltl the next ~ years. 'the pro.

Gcto~r~22. 1985 . . CONGRESSIONAL RECORD--SENA2 S 1379;] • tlme to try to mee% ~h.~ ne~. resDonsl other t0DZtCCO StAte Sena*ors ~}ou*d product by mcre~-strlg ti]e ¢igRrett~ bllity. ~ld I WOUld ]ik% to Su~Dort il~.'ll not oppo.~: the redes1 o[ the tooacco exc~e "~ax. E~I thotlgh I syrnp~nlze • on hLs amendment, excise t~ .Tar*set. B~/t let me be c]e~r~ with W[l~t~ the SePJtt°r from ~ai"le I do not think it gees far enough, t zn~ move to enange me provlslons, to doing I cannot supvort him, and W0Uld ]~reler th~.t we rlo$ tax the S~te inere~¢ the ~.x ar~ all. will re,i/It hl tlr~e RIy colleabqleS ~o defea', tilis whole lo% o£ people trying to help me do that. We nibbled away ~.¢ revenue sharing whi~ ~s d~mag~ng the com- munities'and the ~tates by the loss of f~lds. ~/et you want ~o come back to The PRESIDING OFFICER, ~e Senator's time ha.~ expired. Mr FORD. I yield tl~e floor, Mr. Prcsident~ ~NLr. PACt~WOOD. Mr. President• l~t me emphasize again what We llave ~l- ready done in comparison with What Lhe Budget Committee would h~ve done. It is not just Medicare. The Budge~ torero:tree's R~sumptIon when we go~ this bill wa~ tha%, one, we WO~id Cover 9.q eR1ployees, euITent em- plo~¢ees and new employee~ with ~ed* i~.re on J~nuary 1 1986: all new em- vloyee~ on Social Secu~¢~ on J~uary 31 ~.986, and we would. Change the method o[ applying the new Soc al Se- curity t~.~ sehE~tlle to rtew employees of State and local government~. The revenue expected to he raised by that method wa~ $9.1 billion ~ of January I. 1986. We ju~z about cu~ that m half. slightly less than S3 billion. We ~ave extended the tlme 9 mont/Is, we ha;e no~ brought in Soei~I ~ecunty, and. I think it is • fah" O0mprom~e, and one that OUght to be ~doDted by thia chamber. Mr. MS:TCHELL midresaed ~ne Chair.. The PRESIDLNG OFFICER. Who ~dclds time? Mx. lVLITCHELL. ~r, Presidenl I should like ~o respond, d I could. ~o the pom~ m~de by the Chairm0~, It h~ become ~ ~t2~d&rd oper~.tIP~g ~ro- cedUre In Co~Igres.~ Irl ~he ]~t Jew one place--tobacCo--and take that war years ~o have an Inlt'~ posluon taEen ~o pay [or ~he delay for only ! year. that is tot~ly unreasonable, vir~uau~' The House Ways ~n.d Me~n~ posl* impossible to n'nplement, stud then. at tlon. by the ~y. whlell ~ nee ~e~n the la.s~ moment, to move off t~at po* voted on yet. is that you r~xe on new sttlon to another which then. bY ~rtue hir~s~n~ everybody, just thoSe thal of Its comparlson ~o the Initial pOSl- are hired new. I would ll~e to have an tlorL is hailc~ ~ a reasonable compro- amendment ~o the effect ~ha~ th~ m m~se. wlu~twedolneonferenee. - ~ere we are. ]n the fall of 1083. We are goLnE to conference. There¸ There are vlrtually no ~ta~e le~sla- ]Senator DOL% repe~Jed t1%e sunset of are e lot of tbin~s tl~at can be worked t~ras which are in session. We receive i the cigarette tax: instituted a new tax OUt. I have a great devil of eonfldenee a ~roposal that would mandate~man* ~n remake ess tobacco at a rate of 8¸ in th0ze who will negotiate in tb~t date--tax inere~es in mgxly sr.a~es ~: cents per poand on. chewing tobacco conference¸ oon~nittee on wh~t ¢~n be a~d in almost everF munleip~dlty in ~ aZld 24 ~ent~ on snuff and included done. • • the co~itry; ~nd leave them no ~ime i¸ the pr~visi0ns o£ ~. 1418, legislatinn I say again, a tax is & tax is a tax. to do so. Then the Finance Comn~ttce L • deslg~ed to n~e ~he tobacco program Ana the ~enator m pt~ttinff On a new get~ that. a position clearly not possl- ~ mor~ r0arket oriented. - - tax. ][~ is not germane. ~Ve have el- ble to hnpleme.Rt, not seriot~ly Lntend- • - Thi~ was a careftl]l~ negotiated ready had that vo~e. The ChR r hms a - ed. in rny Jud~enL ever ~o be adopt- agreement between the major tobacco ready rued. Now al we i~2~%'e is the ed, but merely ~o stake out an ori~nal n%%nufact~rers, aud bot~ Burley and delay for 1 year. I think We oRght to neg0¢lating position so that a seeond- r Flue-cured growers. For 3 weeks we have It as it is, have a sense-of-the- ary position would ~eem, in comp~trl- hammered out our dd£ferem~es, and on ~enate reSOlution t~t we do oot want son, ~o be re~uso~ahle. That is precisely rise final day %htq ~roup spent 17 long• to pick these current employees Up, what We have here. tedious hou~ workin~ otlt* the f~/!2/ thS.L we want Just new hlres; then we I Want to eraphRS]ze One further packag~ Which became S. I,!18. the TO- can get the job done. I suggest thnz to point; The cigarette tax Lncr~e would not be permanent ~der the baCCo Improvemeng Act of 19~5. This my culleagues. agreement then bec~%r~e ~ar~of the Pi- TobacCo. and the smoking public amendment I am Disposing. It Would nanee C0mmi~tee me~ure under rec- who enjoy alegal product, are contrib- be for 3"years 0nly, sufficient to cover uth~g their fair share to deficit reduc- or offset ~he ]os~ of revenue in t~e 1 oi%cltla ~Jo 61, It was offered in ¢¢rnmittee a.~ a tion. We should not further penalize year delay 0f ~,[edicare coverage. thre~part package, and was adopted midd/e- ~ud low-income Axaeriesms ~'~nally, the Senator" from Oregon. with the a~'eem~n~ that L and ce~aln who; of their own free will. enjoy thLs the d~tfn~uished chRirraan of the¸ 32Z0013S2

S 1~,,94 CONGRzSSIONA*. RECORD--SENATE October~.. ~980 Committee on Finance, re&de, as MIL PACKWOOD. Mr. President, I er Medlc~ 'xill aDpb'. It~a question ahcay,% ,% Very eloq1:eI~t agTnment in want to ~nake sare the ~en~te und~r- of when. And if we are ~oing to impo~e (errd5 of £he 12oli~y oil w~le~her 0~" nt)~ 8~8~rId$ I%0W orl whK~ ~%e ~r~ golnff [0 .~dedic~re c0ver~ge should ~DDIy uni- vote. The amendment of the ~en&t0r formly to employees ~hrougnou'~ ~he from .%~alne h~Ls be~n divlded, W-e are • country. That decision has been raade, going ~o vote on, fltsL his portion ~0f Tha~ ha.~ nothing to do wish this :he smendmeIlt which ~el~.ys for I 8mcrldlmen~. This araendl~en~ ~aises year ~he ex~e/~ion ~f ~[~dicar8 eov~r~ one question and one ques~ion only: age to ¢~irrenL employees; is tha~ cot- That is t~e aate 011 W~iCh I~nd~tory reef? • ~ovet'aKe for" curren~ employees of The P~ESIDIN(~ O~iCE~. The that burden on all these ro.un!ciDs.i[-, ties, all of the property taxpayers in this country, at the very leasz ~e ough~ to h"~ve ~Zhe courtesy and the de- cency and the spirit of f~.irnes$ tu perr~J~ ti~e~ ~o have fl/ne ~o ~'repare for, plan fob a1%d en~,cI, ~l%e t&x ir~- cre~se $o they esA1 ~c~u~ly ~f:t the rcv- eiiL~e wheD. they 8re force~[ to start 8tare and local g0vernraents Will Senator 15 eorrec$. - p~.ying the hi]/that We are now imDos- ~-pply. New hires wlll remain covered Mr. P~.cKvqooD, A/Id, second, we ing on them. Inand~.torilF as of September 30. 1986. will then vote on ~he increcu~ed ci~- Mr. PAC~.VOOID. ~r, President, if The only questi01~ ha.~ nothing to do rett~ tax? " we are going ~o t~,[~, about equities and ~.'i~h DoJicy: J~ ha~ to do with t~.mln~, I The PFL~SIDIN~ O]~9]CF/L The g0in~ &rottnd ~ncrea~fng people's would ~ay It ts simply fairness to give Senator ~ correct:. Laxes, wh,%t is ~auce for the goo~e Is the mtlnicipalities the ttr~e to prepare ~r, PACKWOL, D, TD.~ Senate .hI~s ~uce for he g~-nder. Let t%s rel'er~e ~or ZI~d t0 ~nact the i%ew t~xes w~ich alt'e~dy ~xo~% t)'; 9;t'i~& I Chlt:(c is 8. the Co 11 -A'I~dic&~ eo.~t~ s.rB goin~ liD, ~h~s w~il require. , wry prel~onder~nt vote ~ts d:~mcl~n~- Med care axes are evied upon. at, e h~ ch~Irms/I h/P~seif "Ni}! recall ~loI% .o vo~e fo~ ~n !i1cre~ ~. the ClQ~.- ~ . ) • .... rI1orn£y~t~ ~ ~'~ ~i~ely defln~ble g~'oup ~hS.t ,&*hen I raISsd ..... th~ u,l the Finance retie £~.~ see% ~ the preseI1t it~ cents, o~emDoses,*e ~r~d wedo 11o~ br ri=o Corm~l ee and sald d, bs ~eonsi~ten% but~ t3na~ m the 8e~ond par~ of this the Sta~e and rnun clnat em a "ees for Federal o~fJcm.s like ~ to go arnendmenL Thn~ ~ OUL For the inco It Chert the ~fedlc&te [~es are &i~otlndsg.ylngto people "%'4e sge not mornentwe~.regotI%~tovo~eondel~.y, goii~ lip ell the others who zre &b raisinz Foul- t~.xes" then to p~x.s8 ~ biU Irlg the ex~ezl.sion o[ Medics1"e pl).y, r~Kdy payL~ ~,~[e~care ~sx~. A/~O. we ~h~ch requires every ~o~Tt [11 Arner(¢~, merits for l year s~ & cos~ of abou~ 8Z.2 con s'C~nd back alld say we did net in- to i'aise ts.xes, th~ chI~irm~I% ss.id, very billion- I believe my good friend from crease ~otlr t~ce$. They c~r$ goiilg to forth."ightly, '(Nobody Is kidd[n~ ~hem- IV[sine w~]~ hndic~te ~h~ i~ roughly the ~ Up o~e 7.ay or the ofher ~nd ~e ~elves; thi~ is a L%X in~re~se." The cos~. $o We are goh~ to hs, ve ~. budget ql/es~1on i~, are ~hey ~oh~g to go uD problem i~ it is ~ LCU% increase Which. loss Of $2.~ billion the first hB.]f of this mere on those who ?*re currently ~%'e2~ se~ee~nan, m~Y0r, and n]ds;rr~an ~/nendr°ent &nd hope ~"~ Pick if ~'IP p&ylt~ ~heIT& or C~re ~'e ~0ing to hrfn~- In Ah~cric~. will b~.%,~ to L'.~Dose be- l&ter* ~[~ybe We W~lh mB.ybe We will i~to ~lle system ~%eryone who is rLo~ cause we ~.re ruRking them (~o it ~o we C~A~ ~0 ~rO~I%d ~.~d Say tO oIlr cOt~i£Lt. ~[S, "We ~re nell r 21sII1.~ ~ot~ tRXCS s.t 1he Federal leveL'" if 're are going to do that. and we 0b% [OtlSly 8.Ee goII%g %o dO thB.t, nil I ~y~n~ Js'gJve then~ ~he tllne to pJan for iL to consider w-h~ tax increase is better Lu~der this circ~rnat~ce, t, nd to ~ut i~ int~ effect- T~I~ ~ ~he nn/y ~ue. Mr. President) I ask for the yem~ ~,~.d Ii~t ys ~It my [t mend~Jae~t. The P~IDING OFg'ICE~.. Is tliere ~ ~ul/tcien~ second? There L~ suf ficien~ second, The ye~s and n~.ys were ordered. ~,L~ /V&'TCE~LL Mr President, KSk ~or m division of mF ~ e nc[n~er~t On p~ge 3 between lines 15 and 16. The PI~EStD~NG O~CiIi~. & dfvi- SiO~ L~ req1~ested, ~r. PACKWOOD. ~,tr. President. how Irtuch ~qrne rema~? The PR~IDI~G OFFICEI~, The noL Bu~ I |lODe W~ mre llOt ~oL!lg to slart down {his proce~ of loss and hope. loss and hope, loSS ~nd hope be- cause indeed it is ~. loss of about $2.2 biIi~on if we delay the extension of ~v!ec~ic&ro coverage for ct~rrent ~mDloy- ees for 1 ~-ear. I wo&LId ~g~/i~ urge that I~y col]e~.8lles defe~.l; this ~me~l(iineI~t iu its entirety and-szarG by defe~ting the flrS~ ~e~en~. of it. /~r. MI~CH'FT,T,. H~ the ~enator completed? Mr. PAC/C~/C OD. Y~s. ~[r. I~L~2 C ~ LL. Mx. Presldenu The PI~ESIDING OF]~ICT/~. The Sen&t~r i~om ~laine. ~Ir. M/TCHELL. I merely wanz %o repea~ ~;o pcdnr~ tha~ I made emmJJer, and I ask all ~en~.tor~ to c0naider it. The fir~ Is that munleiDahties in every 8~ate ~-3/be teqttk'ed to raia~ Its ri0w pg.yiI%g theIIt.. BUt to SD.y Or% the• one hand, "Oh, no, we ~.re not going to r:~ise your ~_Rxes." or, Lf ',%'e DL%t thls in, ,,~VB a~-e goJ~ ~0 r~se yo~r ~s,e~" i~ et%L~ both w~.y~. We either increas~ the t K,xe$ 0Fz ~hose Cu ~'ell [i~ C0 ~,~r ~d 0r ~. & try to ~I~}~e ~he bKse bro~der and tn~re fau" by bringL~g in under e0v~age those who now p~y no ta~xe~ at all and get I00 percent of the benefits. I would ar~e ~h~t the ~quities are more on Lh~ s~de or br]ngin~ everyone in ~d having ~hem a/l pay t~:es th~n to rKise %he t~xes ~ore th~i~¸ w~ wot~Id otherc¢ise r~L~e ~he~ beo~se ~'e do no~ £ne/ude wi~hi~ the ba~e those W~O pz.v no L%xe~ at all. I~Y. MITC~I,T, &dd~essed the Chzir. The I°~F~IDI~T~ OI~IICE~. The ~axes if my ~men~hr*en~ is defeated. Senator frora ~Is.[Ine. And they v.~ll huve tado so with very .~,~. MITCHELL. I merely respond l~ttle time to plsn for, preps.re for. ~d by se.ying ~he rea.~on St2.~e onmd local enact that ~ incr¢'a~e. They ~ill be government employees were no~ ttnder Senahor from Oregon hzs 17 ~Jnutes, forced to do th~ by sctions we ~re 59 ~eeon~.% The Send.rot f~om Mmne • t~king sO t~t we oan con~kque to go h~ 2 minutes and 52 ~econds. aroxind 0a~ga ~eL! th~ ~x.erfcan people, M'r. PACICWOOD. ~ I ~inder~tand that the division is requested o~ the eig:Lrette t~ ]~1.t of the ~.rner*dment first? The PR~SIIDrt~Cr OFFIC'E~. Tha~ will b~ voted or** 3eco~i. l%Ir. PAC~OOO. M~'. President, I ~IggC~L the ~.bs e lice o~ ~ cEn0r~ra. The P.q~SIDING OI:7~IC~, The ~lerk ?;ill c~ll th~ re The ~s~f~tant legislatlve clerk pro- ceede~ ~o call ~he roll, Mr. PA~OOD. Mr* President, I B.Sk U~l:%ntrfl0LL~ COI%Se~ th~&t 1.he order for th~ qu0 i~m call b~ rescii1ded, The P~F.~SIDING OF~ICEI~. V4ith~ out objection, i~ is SO ordered. ,,%-e ere not ma~,~ yE~.l, taxes," Aizd evel3" 8e~abor who votes for the corn~ mlttee bill ~xld ags/Dst my ~mendrne~t /9, m fsct, votL'~g for a t~x increase, m~ the Sen~,~or from Oregor~. ~he c~ha~- man of ~he eoramittee, for ~hri~h~ly ~c- knowled~[ed dtlring the l~ln~nee C~m- mittee deliberation. ~Vhst we ~re dDJ~g i~ voIi.~" ~o compe} se]ec~:~en ~d mmFo~ Knd aldermen ~o r~l~e tKX~ &t 5he local leve! ~o we c~.i% go • ro~d ~L~d k~ep s~.ying, ,~We 8~r~ ~ot. raising your k~,xes." And as I s~id in my earlter remsrk~, Lnconsis~ent ~ the mo81~ generou.~ phra~ t csm ~ to ~-~ strobe that beha~o~, Now. th~s can be done. This L~ ~o~ a quentin ol ~'besh¸- So~a3. Security Knd ~ledie~'e is be- ce, use we, by law. prohibited ~hem from being %under ~ed/cs.te for many yeer~. Tha~ i~ ~he re,on ~or it. Now quh'~s them to come under it. An~ ~he e~u~tF of that lass been deelde~L Tha~ " m no~ being debated. The onl.v ques- tion is. shO%lld we do so in a pr~-~ipi- tous ~a.n~er so ttlat ~e $~.2 billion t~.x ~ ~re requiring the~ tow~ to ~he same ~me t/~at they lose the $4.6 b ~ioD. from reve~lue sl~a~ t.h~.~ they are gol~.g ~0 lose~ neg~.civ~ effect on the £tna~eia/ con~/~ion of the munEci* palitie~ of Americ~ of $6.8 bfll~n ~ All troy amend~en~ WflI do will he to delay ~or I year ~hat 1:~r~io~ of ~he ad- 5 zoola ,