Both CBO and OMB project an inability of current services unified budget surpluses
to be applied wholly to repay debt by the middle of this decade.
The emerging key fiscal policy need is to address the implications of maintaining surpluses
beyond the point at which publicly held debt is effectively eliminated.
The most effective means of raising the level of future resources, in my judgment, is to allow the budget surpluses
projected in the coming years to be used to pay down the nation's debt.
While the Administration's rationale for these transfers is to ensure that the surpluses
actually materialize, the transfer of general revenues represents a major shift from past practice, under which social security has been financed almost entirely from dedicated payroll taxes.
Indeed, especially in light of these inexorable demographic trends, I have always emphasized that we should be aiming for budgetary surpluses
and using the proceeds to retire outstanding federal debt.
Under the Republican plan, with money collected from Social Security surpluses
, the government would pay down approximately $2.
And with the White House and Congress about to release separate new projections showing that budget surpluses
will be even bigger than expected in coming years, both parties have been seeking ways to put the additional money to their priorities without allowing the other to paint them as fiscally irresponsible.
are largely a result of strong tax collections, particularly the personal income tax.
Clinton emphasized his plan for the surpluses
when he announced his budget Monday in a White House ceremony.
The outcome of these elections will determine the allocation of fiscal surpluses
between tax cuts, spending increases and debt reduction.
has announced that the first House bill, HR 1, to be introduced in the upcoming 106th Congress will force the federal government to stop including the Social Security Trust Fund in calculating budget deficits or surpluses
The rating upgrade reflects the strong operating surpluses
of the bridge system.