Statement of Administration Policy: H.R. 2264 - Omnibus Budget Reconciliation Act of 1993

(House)
(Sabo (D) Minnesota)

The Administration strongly supports H.R. 2264. House passage of this measure is a critical step toward enactment of the President's economic program.

The bill provides substantial, fair, and balanced deficit reduction that is essential to the Nation's economic future. It will free capital for private investment and lead to more jobs and higher living standards for working families today and in the future.

H.R. 2264 will be the largest deficit reduction package in the Nation's history, implementing the $500 billion in deficit reduction called for by the budget resolution. It is a balanced measure that provides approximately one dollar of spending cuts for every dollar of additional revenues over five years, with more spending cuts than tax increases in the longer term. Savings come from every major area of the budget, including farm and veterans' programs, Social Security, Medicare and Medicaid, Federal pay and retirement benefits, and defense and non-defense discretionary spending.

Of the added revenues in the legislation, 75 percent come from the six percent of all taxpayers with incomes of over $100,000.

H.R. 2264 also contains targeted investments that the President has proposed in a number of vital areas, such as childhood immunizations, family support and preservation, the earned income tax credit, and empowerment zones. These investments are fully paid for.

The Administration supports the budget enforcement measure made in order as part of H.R. 2264 by the Rules Committee that addresses discretionary spending, pay-as-you-go requirements, sequestration enforcement, and entitlement spending, and that establishes a deficit reduction trust fund. These tools are essential to ensuring that the deficit reduction provided by the bill is actually achieved and maintained.

The President's commitment to deficit reduction has already brought long-term interest rates down dramatically. To maintain that momentum, it is critical that the House adopt reconciliation bill and send it to the Senate.