U.S. House of Representatives
WASHINGTON, DC 20515
January 1999
Dear Taxpayer:
In 1998, the federal
budget was balanced for the first time in three decades. Or was it?
In fact, last year's
record-high tax collections did exceed the government's expenses, producing a surplus of $70 billion.
But the surplus would
disappear if Social Security payroll taxes weren't used to pay for other deficit spending. In 1998,
Social Security payroll taxes exceeded Social Security benefit payments by $86 billion. If those extra
payroll taxes hadn't been spent on other programs, the federal government would have shown a deficit of
$16 billion for 1998.
That's just one of
the important facts that can be gleaned from this year's Annual Report. Each year since 1989, I have provided this summary of the federal government's financial operations because, as a taxpayer, you are entitled to it.
The results for 1998
also reveal that federal spending topped $2 trillion for the first time, while the federal tax burden also reached a record high. In 1998, Americans paid 63% more in income taxes than they did when Bill Clinton took office in 1993. Despite all the Washington talk about "reducing" the size of government, it's growing still.
There is still much to
do to put Washington's fiscal house in order. This Annual Report is meant to help assess our problems,
and point out solutions. I hope you find it useful.
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