Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, I come to the floor today to address the unemployment benefits legislation. This legislation…
Madam President, I ask unanimous consent that the order for the quorum call be rescinded.
Madam President, I come to the floor today to address the unemployment benefits legislation. This legislation is, frankly, an admission that after 5 years of spending more money for costly government stimulus--all of it borrowed--to try to increase employment in America, we still have an unemployment crisis.
Not long ago at the White House, Mr. Sperling said that there are three applicants for every job in America and wages are down. In effect, this legislation is an admission that taxing, spending, regulating, and borrowing has not worked. Indeed, those policies will never work. More regulation, more taxing, more borrowing, and more debt will not improve the economy. We know that. Despite what some so-called experts say, we know that is not a policy that will work, but urgent action is needed.
According to testimony we heard this week in the Budget Committee, if you adjust for the retirement of the baby boomers, the labor force is still short 4.5 million people, the equivalent of $500 billion in national income lost each year. But the majority has circled their wagons around this spend-and-borrow agenda.
For instance, our friends are blocking a Republican amendment requiring companies to hire legal workers, not unlawful workers. The E- Verify system should be required nationwide. It would simply check the Social Security number of applicants, which would identify many people who have no right to be employed in America because they are not here lawfully. In a time of high unemployment, we ought not to be filling our jobs with people who are not lawful and not lawfully able to work in America, while at the same time financially supporting people who are unemployed in the country. At the same time, congressional Democrats have pushed for a bill that would more than double the future H-1B guest worker visas that are frequently used for offshore jobs.
As ranking member of the Budget Committee, I have to inform my colleagues that this unemployment bill is not honestly paid for, and that it violates the Ryan-Murray budget agreement that was signed into law just over 3 months ago. We said we were not going to spend above a certain amount.
Actually, Ryan-Murray raised the amount the Budget Control Act had limited spending to when we were in a tight fix. I think this year in particular was probably the toughest year under the Budget Control Act, so relief was provided and it raised the spending limits for a fifth year and it helped. Just 3 months ago we reaffirmed those spending limits and said we were not going to go above them.
Yet just this past Monday, the Senate passed the so-called doc fix which exceeded the Ryan-Murray spending limits by $6.1 billion this year alone. We adopted a limit, and what do we do? We want to help our doctors, but instead of reducing spending somewhere else in this massive government, we come up with a gimmick argument to say we are paying for it and add, in effect, $6.1 billion to the expenditures this year. We objected to that, but people voted to waive the budget with an up-or-down vote. Do you want to stick by the agreement we reached 3 months ago or do you want to raise it and spend more? The majority in the Senate voted to spend more, and this is why we have such an extreme debt threat in America today.
The bill that is before us now is the unemployment insurance legislation, which exceeds the 2014 limit on spending by another $9.9 billion. Our Federal budget is $3.5 trillion--$3,500 billion--and we can't find some other reductions if we want to fund a new expenditure, such as unemployment compensation? We can't find someplace that we can tighten our belts and pay for it?
My colleagues say that while spending increases this year, the bill is paid for over the next decade. They promised that although we will spend more this year, a decade later--10 years--we are going to get around to paying for it. There are three major problems with this contention, and we just have to address them so there is no mistake about it. This is not legitimate, and it threatens the financial integrity of the country.
The Ryan-Murray budget deal established spending limits. You cannot get out of those spending limits by raising fees and taxes. Taxing more to spend more was not the deal. The deal in the Budget Control Act said that we are going to reduce the growth in spending. We were on track-- over 10 years--to grow spending $10 trillion. Under the Budget Control Act, we were going to allow spending to increase, but it would only increase $8 trillion, not $10 trillion.
Now we are told that the Budget Control Act, which includes the sequester--we can't live with it. Growing and spending $8 trillion is not enough; we have to grow spending even more. Every time some worthy cause is brought before the Senate, we take the easy way out. We come up with a gimmick pay-for or we just violate the budget and spend the money anyway. What good is it to have a Ryan-Murray budget agreement or a Budget Control Act if nobody adheres to it?
Second, one of the big reasons our country is going broke is the philosophy of ``spend today and promise to pay for it tomorrow.'' Here is what a new Bloomberg analysis--an independent group--concluded:
Since December 2013 [three months ago] the Republican House
and the Democratic Senate have approved more than $40 billion
worth of spending ``offsets'' in the form of cuts that would
take place in 2023 at the earliest or timing shifts in policy
to bring savings into the 10-year window . . .
Both of these gimmicks are not legitimate, will not work, and have been criticized by independent groups that are concerned about the future of the Republic.
Third, the promised revenue offsets are phony savings. The offsets come from something called ``pension smoothing''--wow, what is ``pension smoothing''?--and ``prepayment of premiums to the Pension Benefit Guaranty Corporation.'' These are two popular schemes--double counting and timing shifts--that allow companies to prepay their payments for up to 5 years. In good times companies can pay ahead to the PBGC trust fund and Congress can take the money out the backdoor and spend it on--in this case--unemployment. In bad times this will leave the taxpayer further on the hook if PBGC has to take over a failed pension plan. It is taking money out of the plan that was supposed to be set up to guarantee and insure pensions.
I realize some of this sounds complex, but that is the problem: the big spenders in Washington have turned bilking taxpayers into an art form. Some spend their whole time trying to come up with a gimmick to get around the actual requirement, which is for us to set priorities and to recognize we cannot fund everything we would like to fund.
If we have a new idea for a new program, the Budget Control Act says: OK, do it, but you have to do it within the spending limits. You have to find some spending reduction to justify a new spending increase. That is what we agreed to, and that is what the President of the United States signed into law. He also signed Ryan-Murray into law. Is he here advocating responsible action? No, he is here supporting the Democratic leadership to push these budget-busting provisions and is not properly paying for them. Frankly, that is a disappointment.
The President of the United States is the chief person who talks to the American people. He has yet to look them in the eye and tell them we are on an unsustainable course, and we are going to have to tighten our belts. Instead, every time he talks, he talks about a new spending. A new program that spends more, in essence, is borrowing more and increasing our debt even further.
In the few months since Ryan-Murray was passed, the Senate--driven by a Democratic majority--has passed five bills that busted through the Ryan-Murray limits. There have been five bills that busted the budget. We just agreed to it, and they just voted for it 3 months ago.
They say these are all important measures and we have to pass them, so we should disregard those prior promises we made to the American people. The whole point of a spending limit is to make Congress set priorities. If you feel you have legislation that needs to pass, it is your duty to find a way to pay for it within the limits of spending we agreed to.
This is not a radical concept. This is responsible governance. It is done in cities and States all over America. They are living within their means. They are tightening up their efficiencies in productivity. People holler and wail whenever they make those cuts, but those cities, counties, and States are still standing. They have not been sucked into the ocean. They are still operating. They are going to be leaner, more efficient, and more productive as the result of going through a tight budget time. As money rises, and hopefully the economy bounces back, they will be in a better position in the future to serve the taxpayers of their communities efficiently.
Here are the budget violations in the pending bill, and these budget violations were all confirmed. I am the ranking Republican of the Budget Committee, and the Democratic chairman, Senator Murray, is a fine and fair chairman of the committee. Her team has acknowledged these violations of the budget, and as a result, it is subject to a budget point of order. There is not a dispute about what I am saying today.
There is $9.9 billion in spending in excess of the top-line outlays for fiscal year 2014 set by the Ryan-Murray spending agreement. There is also another violation of the Budget Control Act because there is $9.9 billion of spending in excess of the Finance Committee's allocations.
The committees have certain allocations. The Finance Committee has a certain allocation, and now it is spending $9.9 billion more. How much is $9.9 billion? Well, in Alabama we have a lean State government, and I am proud of it. My State's budget is about $2 billion. This is $9.9 billion, and it is in violation of our agreement.
Also, there is a $10.7 billion increase in long-term deficits in the decade beyond the budget window that is subject to a budget point of order, and that is in violation of the budget.
Ordinarily, we would be able to raise a point of order to enforce all three of these violations. However, two of these points of order were wiped away by a loophole created in the language of the Ryan-Murray legislation. I warned them that it was in there, and I urged my colleagues not to adopt it, but it was adopted anyway. Two of the budget points of order I just mentioned are not subject to floor action and have been eliminated, basically, through the use of the deficit- neutral reserve fund. At the time of the Ryan-Murray deal's consideration, the Budget Committee staff--my staff--did the work and we warned that the 57 deficit-neutral reserve funds in the Ryan-Murray bill would be used to increase spending above the spending limits. We warned that would happen. The way that works is the majority can get around the budget rules that limit spending if they propose to offset new spending with new higher taxes.
So we are witnessing today exactly what I warned would happen: The minority has lost the procedural tool to block spending increases as long as they pay for it with more taxes.
What we agreed to under the Budget Control Act was that we couldn't spend above this limit, and if we raised taxes, it would be used to reduce the deficit. So now we have been able to switch that around so the raising of taxes is allowed to increase new spending.
These deficit reserve funds have been used by Senator Reid and the majority to pass a proposed additional $13 billion in spending above the caps already. However, the unemployment bill still triggers a long- term deficit point of order because it uses revenue timing shifts to conceal long-term deficit impact. So it is still in violation of the budget, even though two of the points of order are gone.
We do need to look at the long-term deficit picture. It is good that we still at least have that point of order we can raise. We can't just spend today because it fits within the 10-year window and somehow looks OK, when we know in the outyears it is going to add to the deficit of the United States. So the budget drafters and the BCA people have language in to prohibit that, rightly so. The problem is we won't adhere to it.
Last year, we paid our creditors $221 billion in interest payments-- $221 billion on our roughly $17 trillion debt. That is a huge amount of money. The Federal highway bill is $40 billion. Aid to education--a whole bunch of programs we have--$100 billion in total. The Defense budget is $500 billion. We paid our creditors last year $221 billion in interest alone on the debt. That is enough to pay for 172 weeks of unemployment benefits for everyone collecting at the end of last year. Over the course of the next 10 years, according to CBO, we will spend a cumulative $5.8 trillion in interest payments on our debt. Over the next 10 years, CBO--our accounting firm that tries to do the right thing every day and tells us what is going to happen with our budget-- tells us we are going to spend over $5 trillion, almost $6 trillion, in interest in the next 10 years--money that could be used to help people, to rebuild our infrastructure, to fix crumbling roads and bridges. At today's levels, that $5.8 trillion could pay for a great amount of great things.
The CBO also told us that 10 years from today, the 1-year annual interest payment will not be $221 billion, it will be $880 billion-- $880 billion, an increase of over $650 billion in interest payments each year--not one time, but that year alone we will pay $600 billion more in interest. So how can we fund programs? Isn't it going to crowd out spending we need?
Washington is squandering our national inheritance. We are a nation deeply in debt. I would say to my colleagues that every time you violate our budget limits--because I am not voting for it--every time you add more to the Nation's credit card, you are increasing the interest burden that is crushing America, and you reduce the amount of money that will be available to spend on whatever program you would like to spend it on as the years go by. Interest costs represent the fastest growing item in our budget. How much money will there be left over for your chosen government projects when our interest payment reaches almost $1 trillion a year? CBO says that by 2024, it will hit $880 billion. How many more years will it take, 2 or 3, to reach $1 trillion?
We must help the unemployed, no doubt about it. We need to help them get better jobs, more jobs, and better pay, and we have to do so without adding more to the debt. That is what is placing a wet blanket over the American economy.
We need to produce more American energy. We can do that.
We need to streamline our Tax Code to lower rates, close loopholes, and boost economic growth. We need to eliminate regulations that are reducing productive activities and sending jobs overseas.
We need to endorse a trade policy that defends the American worker from unfair trade practices. Too much of that is occurring. We don't need to lose a single job to unfair trade practices.
We need an immigration policy that serves the interests of the American worker. At a time of high unemployment, the very idea the Senate would pass a bill that would permanently double the number of guest workers who can enter the country boggles the mind. That, in addition to the fact they would legalize 11 million and increase the annual flow of immigrants into the country from 1 million a year--the most generous of any Nation in the world--to 1.5 million. In effect, under the bill that passed this Senate, we would be providing permanent legal status to about 30 million people in the next 10 years. Our current law allows for 1 million a year--about 10 million over the next 10 years. Is it any wonder people are having a hard time getting a job today?
There is not a tight labor market out there; there is a loose labor market. How do I know? Because wages are going down. If employers are desperate and need more workers and can't find them, why aren't they having to pay higher wages to get good workers?
We have to stand up. The American people need to know what is happening to them.
What is the solution, our colleagues say? Well, unemployment is too high and wages are not going up; let's borrow more money and spend it by sending out unemployment checks to people who are unemployed because somebody illegally here took a job they could have taken.
There is no doubt about this: We need to create and transform the welfare office into an office that transforms the lives of people who are struggling today. We have 40 job programs, at least. We have more than 80 different
means-tested social programs. Those all need to be consolidated. There needs to be one central place where an American who is hurting, who is out of work and needs help, may be given financial help, but also counseled and provided training in the things they might need to get a job. Maybe instead of a subsidy while they're unemployed, individuals need help with transportation to go to work. Maybe they need help relocating to another town where the jobs are readily available.
This idea that we just continue to spend more and more on attempting to help people by giving them money without helping them transform their lives and become productive has to end. In fact, all the means- tested programs all added up amount to more than $750 billion, which is more than all the other individual programs we spend money on--more than Social Security, more than Medicare, more than Medicaid, more than the Defense Department.
This country has some challenges in front of it. If we would respond with classic American values of hard work, individual responsibility, and our technology and training, we could turn this country around. But we don't have any leadership in that regard. Any change, any suggestions that we would reduce a subsidy program in order to fund job training or even fund unemployment compensation is a nonstarter around here, it appears.
I am worried about where we are. This unemployment insurance violates the budget. We should not pass it. We should do it within the budget and we need to analyze it carefully to make sure we are doing it in a way that actually helps those we intend to help.
I thank the Chair. I yield the floor, and I note the absence of a quorum.
Mr. President, I will be making a point of order in a moment against the bill before us because it violates the budget we agreed to. I will share briefly for a few moments--the order is that we are to commence voting at 2:30. I believe that is correct. I think I was approved for 5 minutes. If the Chair would notify me when my time is up, because others I see here might want to speak.
In August of 2001, this Congress--House and Senate, Republicans and Democrats--along with the President of the United States, agreed on the Budget Control Act. It limited spending--the growth of spending only. How much did it limit the growth? Well, at that time we were projected to spend $10 trillion more over the next 10 years than we were currently spending. So the Budget Control Act didn't cut the budget, really, although a few agencies in the short term have had reductions, Defense being the primary one. But over the 10 years, under the Budget Control Act we would grow spending $8 trillion instead of $10 trillion--not enough of a reduction in spending, I say to my colleagues, to cause this country to sink into the ocean; that is for sure. Really, not enough, because our deficits are so high.
In December of last year, this Congress passed the Ryan-Murray Budget Act which amended the spending agreement we struck in the Budget Control Act. The Ryan-Murray bill broke the budget agreement and allowed more money to be spent than we had agreed to in the BCA, but it capped overall spending for the next 8 years. So that was the agreement. It passed, and the President signed it 3 months ago. It is now the law of the land.
What I would say to my colleagues is this--today is the third or fourth time we will vote on legislation, since the Ryan-Murray spending agreement passed, that busts the budget--that busts the spending limits we agreed to.
There are multiple budget violations against this bill. Two of them are voided by loophole language in the Ryan-Murray legislation that people didn't fully understand at that time. That loophole language allows the use of a deficit-neutral reserve fund to, in effect, erase budget points of order. So two of the budget points of order that lie against this bill cannot be raised because a deficit-neutral reserve fund--which I think is a gimmick--essentially erases them. But one of the violations still remains, because this bill will add to the debt outside the 10-year window.
One of the things we have learned is that when we pass laws today that sound good--and sometimes those laws, even if they are within the budget window, they may, indeed, in the out years add to the debt of the United States. Kent Conrad, a Democrat and former chairman of the Budget Committee--it was his language that created this long term point of order, because he was concerned we were passing things that might be OK within the budget window but were adding to the debt in the long term. So that is why we have this point of order.
The cost estimate from the Congressional Budget Office clearly shows that this UI bill violates that principle of the budget, and lays out the numbers that so say. Our chairman of the Budget Committee, Senator Murray, has acknowledged that this bill does, in fact, violate the budget.
But we need to stay within our budget. Violating the budget agreement is simply a refusal to make tough choices. We spend $3,700 billion a year, and we can't find $8 billion or $9 billion in savings to fund a program that we think needs to be funded today like unemployment insurance? People want to deal with that and help people who are unemployed, and I understand that desire. But if we do so, we should do it by finding offsets, not spending more than we agreed.
People say we can raise taxes to pay for the new spending. Well, that violates the budget too, because our agreement says we can spend only so much. And if my colleagues want to raise taxes, I believe we ought to use that money to pay down the deficit, not grow the government.
This past year, we spent $233 billion on interest on the debt, an amount that is virtually half the Defense budget. The highway bill is $40 billion. In 10 years, the Congressional Budget Office--Dr. Elmendorf testified before the Budget Committee a few weeks ago--says that in 10 years, 1 year's interest payment on the debt of the United States of America would be $880 billion. That is over $650 billion more in 1 year on interest than we are paying today.
So you can see why we have to adhere to our promises to contain spending. We cannot continue to vote time and time again to violate the spending limits we agreed to. It just adds to the debt and to our interest payments on the debt. No wonder the American people are unhappy with us. This is irresponsible. I am confident we can find the $9 billion or whatever we need to fund any program in this bloated government of ours. But, no, it won't even be discussed. There is no discussion about finding honest reductions in spending from places where money is wasted. Instead, we just come up with a plan that gimmicks the spending and adds to the long-term debt of the United States.
In conclusion, I would say it is quite clear that this legislation-- the unemployment extension--will add to the long-term debt of the United States.
Mr. President, the pending measure, amendment No. 2874 to H.R. 3979, the vehicle for the unemployment insurance extension, violates section 311(b) of the fiscal year 2009 budget resolution by causing a net increase in the deficit over $5 billion in the 10-year period from 2024 to 2033.
Therefore, I raise a point of order against this measure pursuant to section 311(b) of S. Con. Res. 70, the Concurrent Resolution on the Budget for fiscal year 2009.