Mr. Chairman, I yield 3 minutes to the minority whip, Mr. Hoyer. Mr. Chairman, I yield 2 minutes to the gentleman from New Jersey (Mr. Pascrell). Mr. Chairman, I yield 2\1/2\ minutes to the…
Mr. Chairman, I yield 3 minutes to the minority whip, Mr. Hoyer.
Mr. Chairman, I yield 2 minutes to the gentleman from New Jersey (Mr. Pascrell).
Mr. Chairman, I yield 2\1/2\ minutes to the gentlewoman from Texas (Ms. Jackson-Lee).
(Ms. JACKSON-LEE of Texas asked and was given permission to revise and extend her remarks.)
Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from Massachusetts (Mr. Markey).
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, this budget already cuts, the base bill on the floor, education by $45 billion over the next 5 years; wipes out 42 programs; eliminates the Perkins plan for vocational education. Public health, the cuts come to $18 billion. That is the NIH, Center for Disease Control, Graduate Medical Education For Children's Hospitals, rural health care programs, on and on and on, cut $18 billion. Veterans, who should have a greater claim to our sympathy and support now than at any time, you see the sacrifices they are making, 18,000 grievously wounded, veterans health care will be funded at $6 billion below current services if this budget passes. To go deeper, to cut more is just unconscionable. I simply cannot imagine it.
In truth, what you have got here are $162 billion cumulative cuts in programs on which people depend over 5 years. You have already gone beyond the reasons of limit. Going even further would be truly unconscionable.
Mr. Chairman, I offer an amendment.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, we offer a budget substitute which offers a difference, because, you see, our budget will return the budget to balance by the year 2012. In the interim, it will run smaller deficits and rack up less debt.
Our resolution will hold non-defense discretionary spending to the level of current services over the next 5 years, showing that we can exercise discipline and control without making devastating cuts in the essential services. The Republican budget, the base bill, never reaches balance, and, in my opinion, presents no plan or prospect of wiping out the debt or reducing the deficit.
I just outlined a few minutes ago some of the draconian cuts that are made over time. They may not seem that to start with, but they are relentless over a 5-year period of time. Education, for example, will be cut $45 billion; the environment will be cut substantially; and so will health, public health. NIH, Center for Disease Control, Graduate Medical Education for Children's Hospitals, on and on and on, rural health care programs that people depend upon.
Mr. Chairman, I yield 3 minutes to the gentleman from Maine (Mr. Allen), to discuss the health implications of the base bill and the difference between our substitute and the base bill when it comes to public health.
Mr. Chairman, I yield 1\1/2\ minutes to the gentlewoman from California (Mrs. Capps).
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, let me respond to the gentlemen before yielding to Mr. Hoyer. What we have provided here is that there will be $150 billion of tax cuts before the PAYGO rule applies.
Otherwise, we just would take the PAYGO rule, which worked so well for us in the 1990s, which on three occasions, the gentleman heard him, Alan Greenspan said we should reinstate, double edge, applicable to tax cuts as well as to entitlement increases.
And what we are saying is, applying the PAYGO rule, go through the Code, as we did in 1986, $2\1/2\ trillion, surely the deductions and credits and exemptions and preferences there that can help you offset the taxes that will come up for renewable in 2010. That is what we are proposing.
You have got $228 billion in this budget resolution alone calls for tax cuts of that amount. It does not have a dime of them covered. And that is why, one of the reasons, that the deficit next year will be $545 billion on budget, before applying Social Security surplus. And 5 years from now it will be $428 billion. That is assuming no fix of the AMT and no additional costs after 2007 for Iraq.
That is why they do not get anywhere. It is a tread-water budget. So what we have proposed simply is that there would be additional tax cuts, of course, up to $150 billion without having to apply the PAYGO rule. But after that they would have to be offset so we can get about the business of working off these enormous deficits, which everybody knows are not sustainable into the future.
Mr. Chairman, I yield 4 minutes to the gentlemen from Maryland (Mr. Hoyer), the minority whip.
Mr. Chairman, I yield the gentleman from Maryland 1 additional minute.
Mr. Chairman, before yielding to the gentleman from Texas, let me say that there are certain promises that we are bound to keep in government, and I think one of the most important are promises we have made to our veterans, because they were purchased for a dear price and usually therefore services are sorely needed, particularly veterans health care.
I yield now 3 minutes to the gentleman from Texas to talk about the difference between our budget substitute and the base bill when it comes to this vitally important thing called veterans health services.
Mr. Chairman, I yield 3 minutes to the gentleman from Wisconsin (Mr. Kind).
Mr. Chairman, I yield to the gentleman from California (Mr. George Miller) for a unanimous consent request.
(Mr. GEORGE MILLER of California asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield myself 30 seconds.
Let me just point out to the gentleman that amongst those who support the idea of closing the tax gap, using it in the budget, is the President himself. In his 2006 budget, he requested $446 million in extra funding for tax enforcement. The Senate side has bought into the idea. They have provided in the 2007 budget resolution $500 million, unanimously approved in the Senate for the same purpose. So it is not just a pipe dream by any means. It is something we should be about.
What we are simply proposing in PAYGO is what Mr. Greenspan asked on three occasions before our committee strongly recommended, that we reinstate the rules.
Mr. Chairman, I yield the remaining time to close to the gentlewoman from California (Ms. Pelosi), our distinguished minority leader.
Mr. Chairman, I demand a recorded vote.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, let me say something first on a personal note. For 6 years now, Jim Nussle and I have sat side by side on the Budget Committee and collaborated and worked together in the spirit of cooperation and comity. We have had our vigorous disagreements from time to time; but there was always, always, the civility and friendship born of mutual respect between the two of us. We never had the pleasure of converging and collaborating on a budget itself, and I am sorry for that, Jim; but we always had I think the same goals in mind, the good of the country.
We are going to miss you here. I am going to be the first to come to the well and salute you for your service to the House and to the country and for the work you have done in particular on the Budget Committee.
Mr. Chairman, with all the jargon and all the numbers and all the rhetoric, it is hard to find your way around this budget maze, so let me start with just the basics, so basic that let's do something revolutionary, read the resolution before you.
Read this resolution and you will see that right here, page 1, the public debt of the United States will be $11.3 trillion in the year 2011, 5 years from now. At the end of 2001, 5 years ago, the day President Bush took office, the public debt was $5.7 trillion. That means that between 2002 and 2011, under the policies of this administration and this budget resolution, the public debt of the United States is going to double. In a 10-year period of time, we are going to double the debt from $5.7 trillion to $11.3 trillion. It is right here in your own resolution.
Keep on reading and you will see that the on-budget deficit for next year, the year 2007, is $545 billion. Now, on-budget, that means before you offset that against the surplus in Social Security. But there is a reason it is listed as an on-budget surplus or an on-budget deficit in this resolution. The law requires it, just as the law requires that Social Security be taken off budget.
Off budget, when it is treated that way, the deficit is $545 billion in the year 2007. In the year 2011, the on-budget deficit will be $428 billion. But that doesn't include anything for fixing the AMT. We all know that has to be done. It will have a significant effect on revenues when it is. Nor does it include anything after 2007 for the war in Iraq and Afghanistan. So when you make adjustments for those two factors, you are really back up to $550 billion.
For 5 years we will tread water, go nowhere. It is right here, the numbers in this resolution, the first two pages of this resolution. That is why I say this budget resolution presents no plan and no prospect of ever balancing the budget.
Indeed, our calculations show, from the staff of the Budget Committee, our calculations shows that this budget will actually make the deficit $400 billion worse over 5 years than if we just stood still and had a current services budget.
We actually lose ground if we pass this budget tonight, and we certainly do not move into a future that any of us thinks is fiscally sound.
Mr. Chairman, I want to show you one other chart which we used several times today so that you all will be aware of something when you vote on this budget. Buried in this budget on page 121 is a provision that is written in legalese, but it says that the joint resolution, if enacted to raise the debt, the debt will be increased, the debt ceiling of the United States will be increased by $653 billion.
Tonight if you vote for this budget resolution, you are, in effect, according to this language on page 121 of the budget resolution, voting to raise the debt ceiling of the United States by $653 billion.
Now, let me put that in context. Let me put it on the back of an envelope for you. This simple chart right here shows you the increases in the debt ceiling of the United States, the legal limit to which the United States Government can borrow that have been passed by this Congress over the last 5 years.
June 2002, those of you on the Budget Committee will recall that the Bush administration came to us selling their budget. They told us, look, pass this budget with $1.7 to $1.8 trillion in tax cuts, and we still will not be back until
2008 to ask for an increase in the debt ceiling. That is how much spare capacity we have got.
They missed it by a mile. A year later they were back, hat in hand, and they said, we need an increase in the debt ceiling of $450 billion. That was 1 year.
The next year they came back with a phenomenal increase. May 24, 2004, the increase was $984 billion. That lasted 15 months. Following the 15-month period there was another increase, $800 billion. Just 2 months ago, in March, there was a $781 billion increase. And now tonight, if you vote for this resolution, you can add $653- to that. Those will be the 5 increases over 5 years in the debt ceiling of the United States in order to accommodate the budgets that this Congress has passed during that period of time, all together $3.7 trillion in 5 years.
On the back of an envelope that is as dire as I can present it to you. In this budget, as I said, look at the numbers on the first page, $545 billion in 2007, $428 billion in 2011, does not take us anywhere. It does not present a plan or a solution or anything. At best it treads water.
Now, let me show you one other thing that is a problematic feature of this budget. The cuts in this budget are not, at least do not seem to be, Draconian, at least not at the outset, but they are relentless. And they take a toll over time, and they come down on one small segment of the budget, something we call nondefense discretionary spending. Nondefense discretionary spending.
Now, it is odd that this would be the object of all of the deficit reduction effort, because, number one, this is not the source of the problem. This is not where spending has been growing by any means. And, number two, it is less than 15 percent of the budget. You will never get a $400 or $500 billion deficit resolved out of an account or series that do not come to more than $380 billion all together.
But that is what you have chosen to do in this resolution. That is why for another reason it will not work over time, but it will hurt. It will hurt people who depend on programs that are essential, such as transitional Medicaid assistance, such as education. This budget takes a $45 billion hit on education.
What you see is that over time, as you freeze, this is what our Republican colleagues call this budget on its effects on discretionary spending, a freeze, if you simply hold it in place and do not allow it to increase, actually cut it a bit below inflation over a 5-year period of time, the total effect of spending is $162 billion. That is coming out of NIH, that is coming out of CDC, that is coming out of education, that is coming out of veterans health care. The list goes on and on and on.
And there are some things in there that are real anomalies. I was out here on the floor for much of the debate on the immigration reform bill. You remember that, I am sure. And often the question came up about stiffer sanctions and tougher rules. Obviously the issue was raised, how do you enforce them? And frequently the answer was, we go to State and local government; we are going to use them in addition to the immigration service and the Customs Service and the Border Patrol. We want to enlist, engage our sheriffs and our deputy sheriffs and our city policemen to get involved in immigration enforcement, too. Well, guess what is cut out in this budget? State criminal assistance programs, $400 million.
This is not the budget that will take us to the future that we all want. The best thing that we can do tonight is to take this budget, take this budget, reject it, send the budgeteers back to the drawing board, and come up with something different.
That is not going to happen. I know it will not happen. So we will just kick the can down the road one more time. But I warn you, you know as well as I, this problem will only get tougher with time, only get harder to resolve with time. But sooner or later the day of reckoning is coming. In the meantime, what we have got with this budget is more deficits, more debt and more denial.
Vote against this budget resolution.