For Immediate Release
Contact:
Mark Kornblau (Bayh) 202/224-6807
Dave Lackey (Snowe) 202/224-8667

House and Senate Moderates Unite to Combat Uncertainty of Long-term Surplus Projections

Washington, D.C. -- U.S. Senators Evan Bayh and Olympia Snowe (R-ME) today introduced a bipartisan, bicameral resolution in support of a "trigger" mechanism that will enable Congress to provide broad-based tax relief that is fiscally responsible and avoids a return to annual deficits. With a trigger mechanism in place, the first phase of a tax cut would be implemented immediately and be irrevocable. In future years, certain elements of phased-in tax relief would be implemented as long as specified debt-reduction targets are met.

"Our approach combines two important principals of fiscal conservatism," Bayh said. "First, we believe in broad-based tax relief for all Americans. Second, we are committed to balancing the budget and avoiding public debt and deficits."

Bayh and Snowe have been leading the Senate efforts to advance the trigger approach, as others -- including Federal Reserve Chairman Alan Greenspan -- have endorsed the idea in recent months as a way to ensure that fiscal responsibility and debt reduction remain national priorities. Eleven Senators of both parties (six Democrats and five Republicans) joined Bayh and Snowe this morning in support of the resolution. In addition, Representative Ellen Tauscher (D-CA) and Representative Amo Houghton (R-NY), leaders of the House Centrist Coalition, announced the group's support of the trigger resolution.

"Congress should approach the federal budget the same way most American families handle their own finances," Bayh said. "Invest in priorities, save as much as possible for the future, and stay out of debt. The trigger turns a common sense principle into law -- "don't spend it if you don't have it.'"

"A trigger will provide a strong incentive for Congress to act responsibly in the future allocation of the surplus, while also serving as a 'backstop' should estimates prove too optimistic," said Snowe, a member of both the Senate Budget Committee and the Senate Finance Committee. "The principles in our resolution provide firm footing on which to develop a trigger mechanism as tax and spending policies are implemented."

Joining Bayh and Snowe as cosponsors of the resolution are Senators Tom Carper (D-DE), Lincoln Chafee (R-RI), Susan Collins (R-ME), Dianne Feinstein (D-CA), Jim Jeffords (R-VT), Mary Landrieu (D-LA), Arlen Specter (R-PA), Debbie Stabenow (R-MI), and Robert Torricelli (D-NJ).