For fear of offending the training that my mother gave me, I will again say that I stand here unaddicted and recognize that there are those who are addicted to throwing the vulnerable on the trash…
For fear of offending the training that my mother gave me, I will again say that I stand here unaddicted and recognize that there are those who are addicted to throwing the vulnerable on the trash heap of life. Time and time again, in those budgets that my good friend from New York (Mr. Nadler) voted against, I assume that he refused to throw the vulnerable on the trash heap of life.
We come again to a time when we want to abdicate our responsibility under the Constitution. But, my friends, I want to remind you that time and time again the Republicans came back to that tired old formula, balanced budget amendment; and time and time again they were rejected.
This Constitution is sacred. It has nothing in it about the balanced budget. Twenty-six amendments, and they have been rejected. Why? Because they don't want to do the job that the people of the United States have sent us to do. The job that says give and take on how we fund this government.
Someone wants to talk about State governments. Yes, 49 States have a balanced budget amendment; but it is on the operations budget, not on the capital budget. The United States of America is responsible for disasters when they hit New York, Missouri, and Texas. The United States is responsible for lifting a military and providing for our sons and daughters on the front lines of Iraq and Afghanistan, World Wars I and II, Korea, and, of course, Vietnam, the Persian Gulf, and many other places. Our States are not responsible for that.
Balanced budget amendment, maybe we want to be able to follow the good work of our dear friends on the supercommittee. I have great respect for them. The headline says: ``Supercommittee Well Short of a Deal,'' because this is not the way we run a country.
And I refuse to be called ``addicted'' without the explanation that my mother would want me to give. I am addicted to saving lives. I'm addicted to making sure that Social Security is not violently cut by the balanced budget amendment, Medicare being cut by
nearly $750 billion if this resolution were to pass, Social Security almost $1.2 trillion, veterans benefits $85 billion through 2021.
So my argument is to be able to analyze what we're doing here, my friends. The Constitution gives this House the power of the purse strings; yet it will take a two-thirds vote in the middle of a crisis, a war, a disaster, the need to invest in our young people--numbers that Dr. Jeffrey Sachs said that we need for a legitimate apprentice program that leads young people from college or training into a job.
Creating jobs invests in America. Would you understand that we have the lowest number of white males going to college, the lowest number of African Americans going to college, the lowest number of Latinos.
I thank the distinguished gentleman.
We need investment in human resources. And all we're doing today is denouncing and ridding ourselves of the obligatory responsibility that we have when we take an oath to this Constitution every 2 years.
I don't want to be a spoilsport today. I believe we should tighten our belt. There are many ways of doing so, looking at the financial transactions on Wall Street or the Chicago commodities. Many ways to do it. But this is a stranglehold on our neck. I refuse to cut seniors, children, Social Security because you won't do your job. This is a bad amendment. I will not vote for it.
Mr. Speaker, I rise today in strong opposition to H.J. Res. 2, ``Proposing a Balanced Budget Amendment to the Constitution of the United States.'' While I support bipartisan efforts to increase the debt limit and to resolve our differences over budgetary revenue and spending issues, I cannot support a bill that unduly constrains the ability of Congress to deal effectively with America's economic, fiscal, and job creation troubles.
In my lifetime, I have never seen such a concerted effort to ransom the American economy in order to extort the American public. While I support bipartisan efforts to increase the debt limit and to resolve our differences over budgetary revenue and spending issues, I cannot support a bill that unduly robs average Americans of their economic security and ability to provide for their families while constraining the ability of Congress to deal effectively with America's economic, fiscal, and job creation troubles.
This bill would put our national security at risk. If our nation is under attack or needs to respond to an imminent threat, the last person I would consider contacting is an accountant. I would expect that this body would act swiftly and this mandate takes away that ability.
We need to change the tone here in Congress. Federal Reserve Chairman Ben Bernanke said it best when he stated recently before the House Committee on Financial Services. ``We really don't want to just cut, cut, cut.'' Chairman Bernanke further stated, ``You need to be a little bit cautious about sharp cuts in the very near term because of the potential impact on the recovery. That doesn't at all preclude--in fact, I believe it's entirely consistent with--a longer-term program that will bring our budget into a sustainable position.''
national security--veterans and military families
I am outraged to find that revisions to this legislation include a provision that will hurt our veterans and military families and seriously compromise our ability to combat terrorism. As a senior Member of the Homeland Security Committee, I am deeply concerned about any measure that undermines the men and women of the Armed Forces or the safety and security of the American people.
The Department of Defense (DOD) has already agreed to cut its budget by $450 billion over the next ten years. The Center for Strategic and International Studies predicts that further budget reductions, including those that would stem from a balanced budget amendment, will cause substantive modification to our defense strategy, capabilities and force structure.
Enacting a balanced budget requirement would severely limit the ability of the Armed Forces to procure the equipment necessary to keep our troops safe, and prepare them for potential combat. A balanced budget amendment would dramatically constrain discretionary budgets, so much so that procurement, research and development, and the acquisition of new technologies would have to be zeroed out of the DOD budget.
These deep cuts to research and development and procurement would threaten the safety of the men and women of the Armed Forces. For example, the constraints caused by a balanced budget amendment would seriously endanger the Marine Corps' V-22 Osprey program, as well as the intended order of 340 F-35B Joint Strike Fighters. The effects of a balanced budget amendment would hinder the Navy's planned expansion from 287 to 320 ships.
This bill will deeply impact the Defense Industrial Base (DIB), a group of companies and contractors that supply equipment and technology to the Armed Forces. The budget reductions caused by a balanced budget amendment would deeply impact modernization and procurement. In fact, Army Secretary John McHugh recently said that to facilitate any further budget cuts, ``you'd probably have to take some 50% out of modernization.''
The DIB has resulted in the development of the most advanced military force the world has ever seen. However, large cuts in procurement funding would seriously compromise our ability to develop some essential future capabilities. Moreover, the downsizing that a balanced budget requires would leave a large number of highly skilled and professional workers unemployed in an economy unlikely to absorb them for quite some time.
Passing this legislation will not, as many of my colleagues on the other side of the aisle believe, result in a more stable budget. An amendment requiring a balanced budget will render discretionary budgets, particularly the DOD and national security budgets, much less predictable. The Departments of State, Defense and Homeland Security will have to compete for their shares of the national security budget, and furthermore, a likely response to a balanced budget amendment will be an increased reliance on emergency, ad hoc appropriations.
A provision of H.J. Res. 2 requires legislation to spend money that will take the budget out of balance due to a military conflict or national security need. As it stands, this bill will require a Joint Resolution from both houses of Congress with the specific dollar amount being spent.
In order to spend more than has been appropriated, agencies tasked with defense and national security will need approval from Congress. This increased reliance on emergency appropriations will have detrimental effects on the sound functioning of our defense and national security institutions. The more these institutions are forced to rely on emergency funding, the more unpredictable their budgets will become.
This legislation would allow a military conflict or threat to national security to take the budget out of balance. However, in order to authorize additional funds for military engagement or threats to national security that require action, Congress would need to pass legislation citing a specific dollar amount.
As a senior Member of the Homeland Security Committee, I know that the threats against the nation are constantly changing and ever present. We cannot ask those responsible for protecting this nation to ask Congress for a specific amount of money every time there is a threat to our national security that requires action. Should we ever experience another attack on American soil, we cannot expect out first responders to wait for authorization before intervening.
Mr. Speaker, I am incredibly disheartened to see my colleagues on the other side of the aisle champion this legislation, legislation that has so many negative impacts on our veterans and military families. The permanent budget cuts necessitated by a balance budget amendment would require the DOD to drastically curtail the number of active duty service members, retirement benefits, and healthcare benefits for veterans and military families.
There are currently 22.6 million veterans living in the United States, and all of them deserve the retirement and healthcare benefits that were promised to them. In my home State of Texas we have nearly 1.7 million veterans, and 18th District is home to 32,000 of them. Of the 200,000 veterans of military service who live and work in Houston; more than 13,000 are veterans from the Iraq and Afghanistan. We should not compromise the benefits for one of these patriotic Americans with this harmful legislation.
There has been a theme this Congress of focusing on cutting programs that benefit the public good and for the most at need, while ignoring the need to focus on job creation and economic recovery. Debate of this balanced budget amendment is wasting a tremendous amount of time when we should be focused on paying our nation's bills and resolving our differences!
As I mentioned, a balanced budget is not something that should be mandated in our Constitution, nor something that should be automatically required every year. In particular, during economic downturns, the government can stimulate growth by cutting taxes and increasing spending. And in fact, the cost of many government benefit programs is designed to automatically increase when the economy is down--for example, costs for food stamps (SNAP) and Medicaid increase when more people need to rely upon them.
These countercyclical measures lessen the impact of job losses and economic hardship associated with economic downturns. The resulting temporary increases in spending could cause deficits that would trigger the balanced budget requirements at the worst possible moment.
A constitutional amendment requiring Congress to cut spending to match revenue every year would both limit Congress's ability to respond to changing fiscal conditions and would dramatically impede federal responses to high unemployment as well as federal guarantees for food and medical assistance.
H.J. Res. 2 would amend the Constitution to require Congress to balance the budget each year. It would also impose new procedural hurdles to raising the debt ceiling, and require the President to submit a balanced budget each year.
The thresholds proposed in H.J. Res. 2 are completely unrealistic. Even during Ronald Reagan's presidency--before the baby boomers had reached retirement age, swelling the population eligible for Social Security and Medicare, when health care costs were much lower--federal spending averaged 22 percent of GDP. This would impose arbitrary limits on government actions to respond to an economic slowdown or recession.
Cutting spending during a recession could make the recession worse by increasing the number of unemployed, decreasing business investment, and withholding services needed to jump-start the economy. As written, this bill would render Social Security unconstitutional in its current form. By Capping future spending below Reagan-era levels would force devastating cuts to Medicaid, Medicare, Social Security, Head Start, child care, Pell grants, and many other critical programs.
Only five years in the last fifty has the federal government posted an annual budget surplus; all other years the government has been in deficit. Even the House-passed Republican budget resolution, which requires immediate and sustained drastic spending cuts, never reaches balance in the ten-year window required by H.J. Res. 2--indeed, it is not projected to be balanced for several decades, only reaching balance by 2040.
Because this proposal makes it so much harder for Congress to increase revenues than to cut spending, it in essence forces the President to match those same restrictions in his budget. In other words, H.J. Res. 2 is a political ploy designed to force the President to submit a budget that reflects the Republican priorities of ending the Medicare guarantee while cutting taxes for millionaires.
social security & medicare
According to the Center on Budget and Policy Priorities, H.J. Res. 2's balanced budget requirement could result in Medicare being cut by nearly $750 billion, Social Security almost $1.2 trillion, and veterans' benefits $85 billion, through 2021 assuming that the spending cuts would be distributed evenly across the government. These cuts would devastate millions of seniors, veterans, children and the disabled.
These cuts would have a devastating effect on the millions of aged, disabled, veterans, children, and others who depend on Social Security. The BBA would have the foreseeable effect of plunging millions of Social Security beneficiaries into poverty and making for a very bleak future for most others. Over two-thirds of seniors and 70 percent of people with disabilities depend on Social Security for half or more of their income. Close to half--47 percent--of all single (i.e., widowed, divorced, or never-married) women over age 65 rely on Social Security for 90 percent or more of their income.
Seniors are spending more on their health care costs, and Americans in general are making less. The face of poverty is a child's face. If a private employer attempted to do what is being asked of us here today, which would be to use their pension plans in a manner that H.J. Res. 2 would deal with Social Security that would be against the law.
Furthermore, the need to raise the debt ceiling has no correlation to whether future budgets are balanced; increases in the debt ceiling reflect past decisions on fiscal policy. And as demonstrated by this year's current disagreement about whether and when to raise the debt ceiling, Congress does not need to impose further barriers to its consideration. Treasury has warned that failing to raise the debt ceiling and the resulting government default, which would be unprecedented, could have catastrophic impacts on the economy. Interest rates would rise, increasing costs for the government and potentially on American businesses and families.
Any cuts made to accommodate a mandated balanced budget would fall most heavily on domestic discretionary programs; the immediate result of a balanced budget amendment would be devastating cuts in education, homeland security, public safety, health care and research, transportation and other vital services.
The Founders purposely made the Constitutional amendment process a long and arduous one. Having a Constitutional balanced budget amendment is not a novel idea. Balanced budget amendments have made it to a floor vote in the Senate five times, and in the House four times, according to CRS. The Senate barely passed a version in 1982, but it failed to gain the necessary two-thirds majority in the House. The House passed a version in 1995, but it failed in the Senate.
Do my Republican colleagues really expect Congress to capriciously pass an amendment altering our nation's founding document on such short notice; an amendment that will fundamentally change our country without reasonable time for debate; without the opportunity for a hearing or questioning of witnesses; without any reports as to what impact it may have?
By tying the fate of whether the United States pays its debt obligations to the historically prolonged Constitutional amendment process, the Republicans who support this bill have demonstrated, at this critical juncture in American history, that they are profoundly irresponsible when it comes to the integrity of our economy and utterly bereft of sensible solutions for fixing it.
Potential Impact on Medicare
Medicare covers a population with diverse needs and circumstances. Most people with Medicare live on modest incomes. While many beneficiaries enjoy good health, 25% or more have serious health problems and live with multiple chronic conditions, including cognitive and functional impairments.
Today, 43% of all Medicare beneficiaries are between 65 and 74 years old and 12% are 85 or older. Those who are 85 or older are the fastest- growing age group among elderly Medicare beneficiaries. With the aging and growth of the population, the number of Medicare beneficiaries more than doubled between 1966 and 2000 and is projected to grow from 45 million today to 79 million in 2030.