Inside the brain of the smartest man in Washington

Paul returns $72K to Treasury for ‘98

January 20th, 1999

WASHINGTON, DC — Proving himself yet again to be one of Washington’s fiercest spending hawks, US Rep. Ron Paul (R-Texas) will be returning more than $72,500 of his 1998 budget to the US Treasury. That equals almost eight percent of his office budget.

“I think there would be a lot of happy people if the federal government could cut its operational costs by 8% this year, and give every single American taxpayer an immediate, across-the-board 8% tax cut,” said Rep. Paul.

Under congressional budget rules, Paul received $919,633 for 1998 to pay staff, office expenses, travel, telephone bills, mail and computer equipment. While some Members actually over-spend their allotment, Rep. Paul returned the unused monies to the Treasury.

“I’ve said for a long time that the federal government needs to go on a diet, and my office is one of the leanest in Congress,” said Rep. Paul.

That same dedication to responsible use of taxpayer funds is found in the office’s commitment to top-rate constituent service.

“Last year we heard many positive comments about our constituent services; I’m pleased we’ve been able to help the people of South and Central Texas while at the same time reducing costs.”

While politicians’ rhetoric pays lip service to the need to cut the size of government, little gets done as the spending increases.

“A good place to start curbing the cost of government is right here in Congress; not only cutting back on offices expenses, but also cutting the salary Members receive and, most importantly, ending the congressional pension plan.”

Rep. Paul refuses to participate in the congressional pension. He said the secret to keeping costs down is simple: no frills. Rep. Paul’s offices use standard, government issue, used furniture and bare-essential computers and other equipment. He also has a smaller Washington, DC, staff, than most congressmen.

“What Congress needs to realize is that the nearly $1 million budget we each get is not our money, but the taxpayers’ money; we have a sacred obligation to spend as little as possible, using every penny wisely. Of course, if Congress followed the Constitution, the federal government in general and Congress in specific would be spending a lot less money.”

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Clinton continues reckless policies in State of the Union address

January 19th, 1999

WASHINGTON, DC — Being impeached by the House and facing the possibility of removal from office by the Senate did nothing to deter President Clinton from his continued embrace of reckless policies and programs, US Rep. Ron Paul said tonight.

“Once again we hear President Clinton telling us he wants to spend more and more on big government programs which are bankrupting the Republic. He hopes to bribe the American people into overlooking his crimes by spending ever-larger shares of their paychecks on big-government programs that sound good but simply don’t work,” said Rep. Paul. “This Administration is continuing to parrot the mantra ‘Save Social Security,’ yet the President wants more big government programs spending more money raided from the Social Security Trust Fund.”

Rep. Paul introduced the Social Security Preservation Act of 1999 (HR 219) on the first day of the 106 th Congress. His legislation would protect the trust fund from the decades-long practice of the federal government taking the Social Security funds and using them to bolster spending programs.

“The federal government is continuing to run an annual deficit of $140 billion, increasing the federal debt; we need to be cutting spending, cutting out wasteful, unconstitutional programs, and letting Americans simply keep their money.”

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Paul announces Academy nominees

January 13th, 1999

WASHINGTON, DC — US Rep. Ron Paul this week has announced his slate of nominees for the four military academies. The students represent every region of the geographically diverse 14 th District.

Each year, Members of Congress have various types of nomination they can make to the US Military Academy at West Point, NY, the US Naval Academy at Annapolis, Md., the US Air Force Academy in Colorado Springs, Co., and the US Merchant Marine Academy in Kings Point, NY.

“These students represent among the best and brightest in the 14 th District, in Texas and in the United States. We would do well to have each one of these fine young men and women serving in our military and leading our nation,” said Rep. Paul. “The committee and I were pleased with how strong a slate of candidates applied; every one of them would be a great choice for our academies.”

The students were selected through a rigorous application process that included interviews with Rep. Paul’s Academy Nomination Committee. The committee includes committee chairman Major Don Loucks (USAF, ret.) of Bastrop, Gen. Edwin Wenglar of Francitas (USAF, ret.), Col. Jim Peck of Lago Vista (USAF, ret.), Mr. Paul Leininger of Shiner, Mr. Jim Deats of Blanco, West Point graduate Dr. Ray Jess of Brazoria County, Mr. David Chiu of San Marcos, and Major Simon Benavides of the USAF Academy.

Rep. Paul had two principal-nominee positions to fill for the US Military Academy at West Point. His nominees are Ryan Cernoch of La Grange and Russell Thomas of Eagle Lake .

To the US Naval Academy at Annapolis, Rep. Paul selected as his principle nominee Thomas “Chris” Christopher Denton of Angleton.

For the US Air Force Academy , Rep. Paul’s two principal nominees are Jerod Harris of Victoria and Nathan Wallace of Lexington .

A complete list of all nominees to the academies follows on the second page of this release.

While nominated, each candidate must still face further examination by the academies before they are assured a position in this year’s class of freshmen cadets.

“I wish each one of these young people well in their endeavors and know they will serve our state and nation well, regardless of whether or not they attend an academy or serve in the military. The 14 th District is proud of each of these young men and women.”

A complete list of nominees and their hometowns follows.

Rep. Paul’s Academy Nominees:

US Military Academy (Army)

Ryan Aaron Cernoch

LaGrange

Principal Nominee

Russell Barrett Thomas

Eagle Lake

Principal Nominee

Jerod Harris

Victoria

Competitive Alternate

Forrest Kroschel, Jr.

Hallettsville

Competitive Alternate

Scott Merry

Buda

Competitive Alternate

Nathan Wallace

Lexington

Competitive Alternate

Elliot Kruppa

LaGrange

Competitive Alternate

Kevin Cook

Bay City

Competitive Alternate

Jeremy Turner

Victoria

Competitive Alternate

Steven Schmidt

Waller

Competitive Alternate

US Naval Academy (Navy and Marines)

Thomas “Chris” Christopher Denton

Angleton

Principal Nominee

Jonathan Chapman

Wharton

Competitive Alternate

Forrest Kroschel, Jr.

Hallettsville

Competitive Alternate

Cecilia Ramirez

Bay City

Competitive Alternate

Kevin Cook

Bay City

Competitive Alternate

Scott Merry

Buda

Competitive Alternate

Jeremy Turner

Victoria

Competitive Alternate

Daniel Grumman

Victoria

Competitive Alternate

Ryan Naquin

Sweeny

Competitive Alternate

Wesley Miller

Victoria

Competitive Alternate

US Air Force Academy (Air Force)

Nathan Wallace

Lexington

Principal Nominee

Jerod Harris

Victoria

Principal Nominee

Matthew Hodges

El Campo

Competitive Alternate

Scott Merry

Buda

Competitive Alternate

Peter Wooster

Jones Creek

Competitive Alternate

Kevin Cook

Bay City

Competitive Alternate

Jacob Baker

Bastrop

Competitive Alternate

Russell Thomas

Eagle Lake

Competitive Alternate

Nathan Denton

Angleton

Competitive Alternate

Christopher Pustka

Lockhart

Competitive Alternate

Jeremy Turner

Victoria

Competitive Alternate

Cecilia Ramirez

Bay City

Competitive Alternate

US Merchant Marine Academy

Peter Wooster

Jones Creek

Nominee

Daniel Grumman

Victoria

Nominee

Elliot Kruppa

LaGrange

Nominee

Jerod Harris

Victoria

Nominee

Kevin Cook

Bay City

Nominee

Ryan Aaron Cernoch

LaGrange

Nominee

Russell Thomas

Eagle Lake

Nominee

Wesley Miller

Victoria

Nominee

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NMFS opens snapper season early

January 12th, 1999

WASHINGTON, DC — Gulf Coast fisherman received welcome news recently in the decision of the National Marine Fisheries Service’s Southeast Region that red snapper fishing season would open on January 1, 1999, rather than on the previously announced March 1, 1999, date.

Rep. Paul worked to ensure that the snapper season remained open for an extra two months in 1998. The season was due to be closed on the basis of “bad science,” Paul said at the time.

“I have spoken out strongly in opposition to federal snapper season closures, both in 1997 and 1998 and in the proposed ‘pre-season’ closure for 1999. I wrote to NMFS and the Gulf Council to express the view that the closing the ’99 season before it opened was a bad decision.”

The pre-season closure, Rep. Paul told the NMFS, was based on an assumption that bag quotas were met before any data was collected.

Rep. Paul said he remains concerned by the notion of further reductions of bag limits — from 5 in 1998 to the newly announced 4 — of the Jan. 1 opening.

“I’m pleased NMFS has heeded my call to open the season, but I believe that further reducing the bag limit is a troubling situation.”

In an effort to circumvent the NMFS’ restrictive rules, Rep. Paul has written to the Gulf Coast governors, proposing they take the red snapper population issue into their hands.

“I have been advocating that the governors and legislators of the Gulf states consider a multi-state compact which would help to renew the snapper population. This seems to me to be the best possible long-term solution.”

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Paul named to vice-chairmanship

January 9th, 1999

WASHINGTON, DC — With the start of the 106 th Congress, Rep. Paul took over as the vice-chairman of the Subcommittee on Domestic and International Monetary Policy, which falls under the Committee on Banking and Financial Services. Rep. Paul also serves on the Capital Markets, Securities and Government Sponsored Enterprises subcommittee.

Rep. Paul has long been considered an expert in monetary policy issues, having written extensively on the subject, as well as serving on the Gold Commission in the early 1980s.

“I’m pleased to have the opportunity to take a stronger leadership role on these issues,” Rep. Paul said Friday. “Few people realize how important monetary policy is to every aspect of their lives. Whether we like it or not, we use money every day, for everything from meeting our most basic needs to providing for the luxuries of life. No one escapes the impact of monetary policy, not the poorest laborer or the wealthiest executive. A nation’s monetary policy most directly influences interest rates, from credit cards to home loans to savings accounts.”

Issues such as the inflation and devaluation of currency by the Federal Reserve, and US participation in the World Bank, the Export-Import Bank and International Monetary Fund, will be included in hearings of the Subcommittee.

“I have long opposed US participation in the IMF and World Bank for both constitutional and economic policy reasons,” said Rep. Paul. “In addition, there has been growing recognition that the IMF and World Bank operate to the detriment of US interests and contribute to global economic turmoil.”

Chairing the subcommittee for the 106 th Congress will be Rep. Spencer Bachus (R-Alabama).

“I look forward to working more closely with my friend Mr. Bachus. As chairman of the General Oversight and Investigations subcommittee he demonstrated a solid commitment to sound fiscal policy, and I know he will bring that same degree of excellence to this subcommittee’s work.”

The Committee on Banking and Financial Services will handle many critical issues in 1999. Chief among those will be hearings on the nation’s financial preparedness for potential computer-operation problems related to the year 2000 (popularly known as the “y2k” bug). Hearings by the committee will also focus on policies to promote the US as an economic leader as much of the globe continues dealing with almost 18 months of severe economic hardship.

“These are fascinating times for those of us interested in economic and monetary policy, and we are presented with the opportunity to make a lasting impact on our nation’s future,” said Rep. Paul. “It is critical that as we examine these issues, we keep our focus squarely on our constitutional limitations and the desire of Americans to enjoy true economic liberty.”

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Ron Paul’s statement on opening of red snapper season

January 7th, 1999

“News that the snapper season has been opened is welcome, but not necessarily cause for a victory celebration.

“I have spoken out strongly in opposition to federal snapper season closures, both in 1997 and 1998 and in the proposed ‘pre-season’ closure for 1999. To me it seems ridiculous that the season could be closed prior to it even being opened and I have written to NMFS and the Gulf Council to express this view. I remain concerned by the notion of further reductions of bag limits but I certainly see this alternative as superior to the notion of season closures. Moreover, as a federal official I realize that actions taken regarding state waters are solely within the purview of the state government.

“My concern is that the federal government will end up BOTH closing the season AND cutting the bag limit. These actions are all part and parcel of the quota-based management system that currently exists.

“I believe that the quota based management system will fail and I also understand that the federalization of fishing rights raises problems of effectiveness as well as of constitutionality.

“I have written to Governor Bush to express my support for the decision to open Texas waters on January 1; the State’s position well reflects my belief that local levels of government are most responsive in seeking the common good.

“I have been advocating that the governors and legislators of the gulf states consider a multi-state compact which would help to renew the snapper population. This seems to me to be the best possible long-term solution. In the mean time I am certainly glad that Texas waters will be open in January and February, and I will keep fighting against federal season closures and other restrictive measures.”

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Honoring My Friend, Baseball Legend Nolan Ryan, on His Election to the Hall of Fame

January 6th, 1999

Mr. Speaker, I rise today to pay honor to my long-time friend, Nolan Ryan, on the announcement of his election to the Baseball Hall of Fame. I’ve known Nolan for many years, and I knew him as a kind, generous man who seeks to do what is right and just. It seems there are so few heroes for kids today, especially in athletics, but I can sincerely commend Nolan Ryan as a true hero of our times, a role-model for our youth, and a man worthy of honor and respect.

Nolan was born in Refugio, Texas, a historic town in my congressional district, but he was destined for the national stage. His successful career spanned 27 years, taking him from rural Texas to the dug-outs of the New York Mets, the California Angels, the Houston Astros and the Texas Rangers. He pitched a record seven no-hitter games, but his real fame comes from having pitched 5,714 strikeouts.

Nolan told newspaper reporters yesterday that he never viewed himself as a “hall of famer.” For once, I have to disagree with my friend. He is Hall of Fame material not only for his prowess on the field, but for his strong character and unwavering dedication to his family, his friends, his beliefs and his God.

I trust all my colleagues join me in congratulating Nolan Ryan.

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Ron Paul sworn to second term

January 6th, 1999

WASHINGTON, DC — The Oath of Office was administered today to the 435 Members of the 106 th Congress, including US Rep. Ron Paul (R-Texas) who is entering his second term representing the 14 th District of Texas. Rep. Paul also served in the US House of Representatives from 1976 to 1984.

Rep. Paul said he would continue the work he began in the 105 th Congress for such critical issues as educational choice, broad tax cuts and promotion of adhering to constitutional limits on the federal government.

“Today I and my fellow congressmen took an oath before God and the people of the United States to uphold, defend and protect the US Constitution. I will continue to take seriously that oath by refusing to going along with the Washington crowd that says you have to raise taxes, increase spending and restrict the people’s rights guaranteed by our Constitution,” said Rep. Paul. “For two years I have been encouraged by my constituents to stay out of touch with Washington politicians and Washington values. And that’s exactly what I will do.”

Rep. Paul has been praised for his strong commitment to constituent service and promised that the taxpayers of the 14 th District can expect not only the same high level of service, but continued improvement as well.

“My offices have had great success in helping constituents in their dealings with federal agencies and programs, but I am not content with simply maintaining that level of service, but in seeing the offices operate more quickly, efficiently and successfully.”

Three traditional offices — in Freeport, Victoria and San Marcos — serve the constituents of the 14th District. In addition, a mobile office that tours the district’s rural areas providing direct service to people who might not be able to drive the long distances to one of the main offices. Rep. Paul also maintains the toll-free Legislative Update line at (888) 322-1414, giving constituents an opportunity to hear what’s going on in Washington, DC. Further, he maintains an official e-mail and web site (www.house.gov/paul/ ) presence on the internet for the benefit of constituents.

Rep. Paul announced that he would continue to reject the lucrative Congressional Pension, which provides former Members of Congress a retirement plan — at taxpayer expense — which is far more lucrative than anything in the private sector.

“Politicians shouldn’t receive pensions for serving in the House, the Senate or the White House,” said Rep. Paul. “Working in the political sphere should be a temporary position in an attempt to discuss ideas, never a full-time job from which one retires and expects a pension.”

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Freedom and Privacy Restoration Act

January 6th, 1999

Mr. PAUL. Mr. Speaker, I rise to introduce the Freedom and Privacy Restoration Act of 1999. This act forbids the federal government from establishing any national ID cards or establishing any identifiers for the purpose of investigating, monitoring, overseeing, or regulating private transactions between American citizens. This legislation also explicitly repeals those sections of the 1996 Immigration Act that established federal standards for state drivers’ licenses and those sections of the Health Insurance Portability and Accountability Act of 1996 that require the Department of Health and Human Services to establish a uniform standard health identifier.

The Freedom and Privacy Restoration Act halts the greatest threat to liberty today: the growth of the surveillance state. Unless Congress stops authorizing the federal bureaucracy to stamp and number the American people federal officials will soon have the power to arbitrarily prevent citizens from opening a bank account, getting a job, traveling, or even seeking medical treatment unless their ‘papers are in order!’

In addition to forbidding the federal government from creating national identifiers, this legislation forbids the federal government from blackmailing states into adopting uniform standard identifiers by withholding federal funds. One of the most onerous practices of Congress is the use of federal funds illegitimately taken from the American people to bribe states into obeying federal dictates.

Perhaps the most important part of the Freedom and Privacy Restoration Act is the section prohibiting the use of the Social Security number as an identifier. Although it has not received as much attention as some of the other abuses this legislation addresses, the abuse of the Social Security number may pose an even more immediate threat to American liberty. For all intents and purposes, the Social Security number is already a national identification number. Today, in the majority of states, no American can get a job, open a bank account, get a drivers’ license, or even receive a birth certificate for one’s child without presenting their Social Security number. So widespread has the use of the Social Security number become that a member of my staff had to produce a Social Security number in order to get a fishing license! Even members of Congress must produce a Social Security number in order to vote on legislation.

One of the most disturbing abuses of the Social Security number is the congressionally-authorized rule forcing parents to get a Social Security number for their newborn children in order to claim them as dependents. Forcing parents to register their children with the state is more like something out of the nightmares of George Orwell than the dreams of a free republic which inspired this nation’s founders.

Since the creation of the Social Security number in 1935, there have been almost 40 congressionally-authorized uses of the Social Security number as an identification number for non-Social Security programs! Many of these uses, such as the requirement that employers report the Social Security number of new employees to the ‘new hires data base,’ have been enacted in the past few years. In fact, just last year, 210 members of Congress voted to allow states to force citizens to produce a Social Security number before they could exercise their right to vote.

Mr. Speaker, the section of this bill prohibiting the federal government from using identifiers to monitor private transactions is necessary to stop schemes such as the attempt to assign every American a ‘unique health identifier’ for every American–an identifier which could be used to create a national database containing the medical history of all Americans. As an OB/GYN with more than 30 years in private practice, I know well the importance of preserving the sanctity of the physician-patient relationship. Oftentimes, effective treatment depends on a patient’s ability to place absolute trust in his or her doctor. What will happen to that trust when patients know that any and all information given to their doctor will be placed in a government accessible data base?

A more recent assault on privacy is a regulation proposed jointly by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Federal Reserve, known as ‘Know Your Customer.’ If this regulation takes effect in April 2000, financial institutions will be required not only to identify their customers but also their source of funds for all transactions, establish a ‘profile’ and determine if the transaction is ‘normal and expected.’ If a transaction does not fit the profile, banks would have to report the transaction to government regulators as ‘suspicious.’ The unfunded mandate on financial institutions will be passed on to customers who would have to pay higher ATM and other fees and higher interest rates on loans for the privilege of being spied on by government-inspired tellers.

Many of my colleagues will claim that the federal government needs these powers to protect against fraud or some other criminal activities. However, monitoring the transactions of every American in order to catch those few who are involved in some sort of illegal activity turns one of the great bulwarks of our liberty, the presumption of innocence, on its head. The federal government has no right to treat all Americans as criminals by spying on their relationship with their doctors, employers, or bankers. In act, criminal law enforcement is reserved to the state and local governments by the Constitution’s Tenth Amendment.

Other members of Congress will claim that the federal government needs the power to monitor Americans in order to allow the government to operate more efficiently. I would remind my colleagues that in a constitutional republic the people are never asked to sacrifice their liberties to make the job of government officials a little bit easier. We are here to protect the freedom of the American people, not to make privacy invasion more efficient.

Mr. Speaker, while I do not question the sincerity of those members who suggest that Congress can ensure citizens’ rights are protected through legislation restricting access to personal

information, the fact is the only solution is to forbid the federal government from using national identifiers. Legislative ‘privacy protections’ are inadequate to protect the liberty of Americans for several reasons. First, federal laws have not stopped unscrupulous government officials from accessing personal information. Did laws stop the permanent violation of privacy by the IRS, or the FBI abuses by the Clinton and Nixon administrations?

Secondly, the federal government has been creating property interests in private information for certain state-favored third parties. For example, a little-noticed provision in the Patient Protection Act established a property right for insurance companies to access personal health care information. Congress also authorized private individuals to receive personal information from government data bases in last year’s copyright bill. The Clinton Administration has even endorsed allowing law enforcement officials’ access to health care information, in complete disregard of the fifth amendment. Obviously, ‘private protection’ laws have proven greatly inadequate to protect personal information when the government is the one providing or seeking the information!

The primary reason why any action short of the repeal of laws authorizing privacy violation is insufficient is because the federal government lacks constitutional authority to force citizens to adopt a universal identifier for health care, employment, or any other reason. Any federal action that oversteps constitutional limitations violates liberty because it ratifies the principle that the federal government, not the Constitution, is the ultimate judge of its own jurisdiction over the people. The only effective protection of the rights of citizens is for Congress to follow Thomas Jefferson’s advice and ‘bind (the federal government) down with the chains of the Constitution.’

Mr. Speaker, those members who are unpersuaded by the moral and constitutional reasons for embracing the Freedom and Privacy Restoration Act should consider the overwhelming opposition of the American people toward national identifiers. My office has been inundated with calls from around the country protesting the movement toward a national ID card and encouraging my efforts to thwart this scheme. I have also received numerous complaints from Texans upset that they have to produce a Social Security number in order to receive a state drivers’ license. Clearly, the American people want Congress to stop invading their privacy. Congress risks provoking a voter backlash if we fail to halt the growth of the surveillance state.

In conclusion, Mr. Speaker, I once again call on my colleagues to join me in putting an end to the federal government’s unconstitutional use of national identifiers to monitor the actions of private citizens. National identifiers are incompatible with a limited, constitutional government. I therefore, hope my colleagues will join my efforts to protect the freedom of their constituents by supporting the Freedom and Privacy Restoration Act of 1999.

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