Mr. President, before I make my remarks, I understand the distinguished Senator from Tennessee has been waiting to make some remarks himself. I ask unanimous consent that he go first, and then if…
Mr. President, before I make my remarks, I understand the distinguished Senator from Tennessee has been waiting to make some remarks himself. I ask unanimous consent that he go first, and then if Senator Baucus is here, he goes second, and I go third, but if Senator Baucus is not here, I will go second.
Mr. President, during the debt limit impasse in 2006, then-Senator Obama stated:
The fact that we are here today to debate raising America's
debt limit is a sign of leadership failure. Leadership means
the buck stops here. Instead, Washington is shifting the
burden of bad choices today onto the backs of our children
and grandchildren. America has a debt problem and a failure
of leadership, and Americans deserve better.
That was former Senator Barack Obama.
At that time our gross debt was $8.3 trillion. It is now well above twice that, currently standing at $17.1 trillion, which is over 100 percent of the size of our economy.
During that same 2006 debt limit debate, then-Senator Biden said:
My vote against the debt limit increase cannot change the
fact that we have incurred this debt already and will no
doubt incur more. It is a statement that I refuse to be
associated with the policies that brought us to this point.
That was then-Senator Biden. Things have certainly changed since 2006.
Now President Obama and Vice President Joe Biden preside over an administration which tells us that raising the debt limit is merely a matter of paying our bills and is a reflection of decisions made in Congress. Yet while it is ostensibly true that the Congress has the power to raise the debt limit, it is not true that Congress makes spending decisions unilaterally, with no role being played by the executive branch. No amount of spending can be enacted without the President signing it into law.
In addition, the President submits a budget every year. The White House also issues policy statements and veto threats on spending bills on a more or less frequent basis. And, of course, every administration works with Congress to enact its domestic agenda which inherently includes setting priorities on Federal spending. So, in short, the commonly repeated notion that questions surrounding spending and the debt limit are Congress's and Congress's alone to answer is simply an attempt by this administration to avoid accountability on these issues.
Ultimately, regardless of what President Obama and those in his administration are saying now, both Congress and the executive branch are to blame for our current predicament.
The President has exercised his authority to suspend the debt limit under the Continuing Appropriations Act of 2014, which he signed into law on October 17. On October 16, public debt subject to the limit was around $16.7 trillion. On October 17--the very next day--public debt subject to the limit was over $17 trillion. In one day, Treasury increased the debt subject to the limit by over $328 billion. Let me repeat that. The debt increased by over $328 billion in a single day. That brings the increase in total public debt under this administration to more than $6.4 trillion, an amount that is, by all accounts, unprecedented.
Echoing earlier sentiments of then-Senator Biden, I refuse to be associated with the policies that brought us to this point.
The debt limit debate provides us with an opportunity to reexamine our Nation's fiscal course and take steps to correct it. Sadly, we have a President who appears unwilling to have that conversation. Instead, he apparently wants to press forward, full steam ahead, on our already unsustainable course, saddling future generations with unheard-of debts and broken entitlement promises in the process. Unfortunately, as the Congressional Budget Office has made clear, over the course of President Obama's administration, the Federal Government has recorded the largest budget deficits relative to the size of the economy since 1946, causing our debt to soar, as we all know. Federal debt as a percent of the economy's annual output is higher than at any point in U.S. history, except for a brief period around World War II.
CBO makes three other points equally clear. No. 1, our debt path is unsustainable, threatening our economy and putting us at risk of a fiscal crisis. No. 2, the root of our fiscal problem is Federal spending, not a lack of revenue. No. 3, the main source of our spending problem is our unsustainable entitlement programs. That being the case, any serious talk about raising the debt limit must include a real, concrete discussion about entitlement reform.
As every credible analyst tells us, we need to face the fiscal facts and enact serious structural reforms to our entitlement programs. So far, President Obama has been unwilling to even engage in this discussion. These days, every fiscal discussion with the White House begins and ends with demands for additional tax hikes to fuel even more spending. I guarantee it will be spending, not paying down the national debt or paying down what we owe; it will be to spend more.
Of course, the President will occasionally resurrect offers he has made in past failed fiscal negotiations to include small entitlement changes, including, for example, movement to a different price index for certain cost-of-living adjustments, but at the same time the President and his administration have made clear that even those small entitlement changes will only be on the table if tax hikes are delivered first. That is the President's precondition for even entertaining tax reform or entitlement reform, even on the heels of a more than $630 billion tax hike at the beginning of this year and another $1 trillion in revenue delivered courtesy of ObamaCare.
Entitlement reform is not an option, it is a necessity.
Structural reforms to our health care entitlements should not hinge on another tax-and-spend operation. And structural reforms to Social Security should not be held hostage to another tax hike.
Earlier this year I personally presented to the President, in detail and in writing--again, I emphasize I personally gave him this--five reform proposals relating to Medicare and Medicaid that have received bipartisan support--Democratic and Republican support--in the past. I asked him to consider the proposals and have since asked members of his administration to likewise give the proposals consideration.
By the way, when we had our supper at the White House in the family dining room, I brought it up again. By the way, I brought it up with the Secretary of the Treasury over and over. I did not wait until an impending debt limit debate. Rather, I put my proposals forward in a good-faith effort to begin timely discussions. Unfortunately, thus far, I have not received even the slightest response, while the clock on Medicare and Medicaid keeps ticking, and both of them are running more and more deficits as we speak. By the way, the five points were bipartisan. They were bipartisan measures that both Democrats and Republicans supported.
The situation with Social Security isn't much better. The trustees of the trust funds embedded in the Social Security system, including top administration officials such as the Treasury Secretary, have, in no uncertain terms, urged Congress to act quickly on reforming the retirement and the disability insurance programs to move them toward sustainability. Quite simply, it would be folly to approve of yet another debt limit increase without also working to address these programs, which are the main drivers of our debts and deficits.
Therefore, I disapprove of the President's exercise of an authority to suspend the debt limit, and I urge all of my colleagues to similarly disapprove.
The recent debt limit impasse and the impasse of 2011 also provided a good deal of information about lack of accountability of the Treasury Department and of our regulatory agencies.
I currently serve as the ranking member on the Senate Finance Committee which has oversight responsibility toward the Treasury Department. To fulfill those responsibilities, I have been asking questions of Treasury about debt and cash management procedures, and I have repeatedly been stonewalled by the Treasury Department. I don't know that I have ever seen this happen before in either Republican or Democratic administrations.
For example, when we have approached the debt limit, I have asked questions about how much cash our Nation has in the till, only to find that Treasury won't tell me and that they prefer the Congress rely on estimates from think tanks and Wall Street firms.
Furthermore, during the most recent debt limit impasses, administration officials were busy frightening seniors, our troops, and financial market participants about whether they would be paid in the event the Treasury were to run out of cash. Officials also identified threats of massive financial instability stemming from a breach of the debt limit and of potential disruption from a downgrade of the rating on U.S. Government securities.
So, naturally, I asked Treasury and, in fact, every voting member of the Financial Stability Oversight Council, or FSOC, to provide Congress and the American people information regarding the plans they had in place to respond to such catastrophes. Out of close to 20 letters I sent to FSOC members, I received only 3 responses. Apparently, the FSOC, which was empowered by the so-called Dodd-Frank Act to monitor and respond to merging threats to financial stability, does not identify or share response plans with respect to any threat that could emerge as a result of government policies.
That being the case, I believe we should strip FSOC of any notional oversight of financial stability and call it what it really is: another unrestrained regulatory agency created only to enact additional regulations.
After the fact, we have found that Treasury and some financial regulators had plans for how to respond to a debt limit breach or a ratings downgrade. Yet none of these plans were shared with Congress.
Put simply, if we are going to empower a Federal regulatory body such as the FSOC to develop contingency plans to respond to threats to financial stability, then that body should be required to share those plans with the American people. Sadly, thus far that has not been the case.
Another thing I have learned from our recent debt limit impasses is that we need to take a closer look at the Treasury Department's use of so-called extraordinary measures, which have become all too ordinary. These ``extraordinary measures'' are merely ways for the Treasury Department to temporarily delay facing a debt limit increase by issuing shadow debt. For example, Treasury can simply declare a debt issuance suspension period and stop issuing debt that it normally would issue while instead effectively telling the lender: Don't worry, I will pay you back later with interest. I believe the authority to use these types of extraordinary measures needs to be reexamined.
As you can see, Mr. President, there are a number of problems that need to be confronted with regard to our Nation's ever-growing debt. As I said, we need to work together to address our Nation's unsustainable entitlement programs; otherwise, any effort to rein in our debts and deficits will amount to little more than tinkering around the edges.
In addition, we need to improve information sharing between Congress and the executive branch on issues relating to our debt. The Treasury Department and our financial regulators
have a lot to do with maintaining the depth, liquidity, and efficiency of the market for Treasury securities, and Congress has a duty to exercise oversight over these functions. Unfortunately, the administration, far more often than not, opts to keep Congress in the dark on these issues. And, the Treasury and financial regulators choose to keep their plans secret. This has to stop.
By using his authority to suspend the debt limit through February 7, 2014, President Obama has opted not to confront any of these serious issues. Instead, he is leading us even further down a path that we already know is unsustainable. That being the case, I plan to vote in favor of the resolution of disapproval of this debt limit suspension, and I urge my colleagues to do the same.
Having said all this, we are in a really big mess on ObamaCare--or if you want to call it the ``Affordable Care Act'' that nobody believes is affordable at all. They know it is going to lead us right into even more unsustainability than we have right now. I suspect that over time our brilliant people in the IT world, the information technology world, many of whom I know personally, will find some way to resolve what really has been a horrible, horrible situation with the broken introduction of the ObamaCare website. We all know it is horrible, and I hope they can resolve that. I think it is going to be hard because it is such a mess. I hope Mr. Zients is successful in his efforts to try to cure the broken system, but that does not cure the faults or problems with ObamaCare as a whole.
What about the 30-hour rule? A lot of people, a lot of businesses, especially small businesses today, are making sure their employees do not work more than 30 hours because if they do, it triggers their having to pay what appear to many to be outrageous health care costs. That is just one thing, and that is not going to be easily resolved because the bill is such a stupid bill. It was stupid to begin with. We knew it would not work to begin with. We made the case that it would not work, and frankly we are here in this really ridiculous posture where we have been stymied because of an ineptly implemented introduction of a flawed law, and there is certainly some incompetency here. I hope they can resolve that, but that still does not resolve the 30-hour rule, which is very important.
How about the 50-employee rule? A lot of businesses that would have expanded, small businesses that would have grown, that would have tested the market and really gotten going, do not want to employ more than 49 people and trigger a massive sudden cost to their businesses.
These are problems that basically are unsolvable under the bill, and they may be even larger problems than those we have with regard to the website problems I have been mentioning.
ObamaCare is full of cliffs: to implicit tax rates; to hours of work; to numbers of employees. And those cliffs have led and will lead to more economic damage.
That is just the beginning. I could speak for hours about what is wrong with this lousy Act called ObamaCare. I wish some of my colleagues on the other side would start saying what they actually know. They know it is a lousy Act. They know it is something that is not going to work. And if it does--if they continue to maintain that it has to work--it is going to be a massive cost to society, with less effective health care than we have ever had before.
It is not just these technical problems that we have to solve; it is the economic problems that arise from ObamaCare. And I know what is going to happen. Within the next year or two, our friends on the other side--or should I say the White House in particular--President Obama is going to throw his hands in the air and say: It is not working. We have to go to a single-payer system, meaning socialized medicine. Anybody who believes that is the way to go--it sounds easy, but anybody who believes that is the way to go has not looked at socialized medicine around the world. They can point to some instances where it has worked for a short time, but over time it results in less health care, higher costs, and stultification of what really could be a great health care system.
I want to solve these problems in health care, but I believe they ought to be solved on a bipartisan basis and not just a partisan basis, which is where we are with regard to ObamaCare--or should I say the ``Affordable Care Act.''
There are a number of people in this body and in the other body who, like me, have worked in health care areas and on health care issues ever since they have been in the Congress who would be willing to sit down and get this resolved. But I have to say there was no real consultation, there was no real effort to work in a bipartisan way, as far as I could see, even at the lower levels in Congress, in developing the partisan product called ObamaCare. It was just they were going to pass this and that is the way it will be. Now they are stuck with it-- should I say they are not really the ones who are stuck with it; it is the American people and the American taxpayers who are stuck with it. We have to, sooner or later, get together to resolve this problem without going to socialized medicine.
I have talked to a number of doctors, health care providers, who are going to get out of the profession. They do not want to be governed by this type of governance. Frankly, you are going to find that if we go to socialized medicine, doctors are not going to work more than 6 or 8 hours a day, where today they will work as long as it takes to serve people who need their help. We are going to find a real dearth of doctors. We are going to find a real dearth of the ability to provide the health care people need. We are going to start doing what that payment advisory board really is set up for, and that is rationing. Once that starts, the American people are going to rebel.
It is going to happen sooner or later if we do not get our friends on the other side to at least work with us on finding some resolution. I have to say that we are working on our side to come up with a resolution, and I hope I can interest our colleagues on the other side. I admit that we can do a lot better than we are doing around here. We can do it in a much better bipartisan way than we are doing it. I think some people get a joy out of creating battles around here when we should get a joy out of resolving problems.
I yield to the distinguished Senator from South Dakota.
Mr. President, I suggest the absence of a quorum.