Mr. Speaker, I am honored to be a part of this discussion here this evening, and certainly I consider it a great privilege to serve on the Budget Committee. As witness after witness after witness told the Budget Committee that we should…
Mr. Speaker, I am honored to be a part of this discussion here this evening, and certainly I consider it a great privilege to serve on the Budget Committee.
As witness after witness after witness told the Budget Committee that we should address the entitlement challenges we face and reform entitlements so that we can have a safety net, so that we can have an economy to preserve that safety net, we need to adopt some changes. And yet the budget that has been presented and is moving through the Halls of Congress does not address entitlement reform. That is my concern. That was the major thrust of the Budget Committee hearings, certainly, as I said, witness after witness addressing that.
But I stand here before you this evening concerned about the future. When I get asked why I would want to serve in Congress, I say it is because I care about the future. I care about the direction in which our country is heading. I believe that we need to encourage prosperity, not penalize it. And yet our tax policies are bound to penalize prosperity with the current budget.
We heard in the Budget Committee that we need to increase spending. More of the same. And, certainly, the supplemental, as so many folks know, this emergency supplemental spending bill contains items that are far from emergency in nature. I am afraid that there were too many politics being played in terms of funding the very necessary functions of our military so bravely serving overseas.
I am concerned about our future, and that is why I went to Iraq. I learned in Iraq that there are some bright spots. Certainly we have a lot of work to do. But it comes back to the economy. I am encouraged when I learn that there are more than twice as many merchant vessels traveling the one single waterway into Iraq from the gulf. I am encouraged when I see a developing police force perhaps in Ramadi. That is what contributes to the fundamentals of a sound economy with the rule of law.
But as we balance our policies overseas with our domestic policies here at home, we have to be mindful again of the future, the future that I believe can be bright with the sound, solid economy.
My friends so very eloquently pointed out the estate tax, commonly called the death tax. I can't help but think back to when I was visiting a business in my district, actually the Nation's largest producers of natural wool yarn. I didn't prompt this discussion whatsoever. But the second generation owner, or manager in this case, of this company said, Adrian, one thing you can do in serving in Congress is to reform or repeal the death tax. It will devastate us. ``Devastate'' was her word.
Now, one might think that the Nation's largest producer of natural wool yarn would be big business, big corporations, all these big companies that people want to beat up on who provide jobs. No, this is a family-run operation with about 45 employees that just reinvested many dollars so they could double their output, so that they could take new customers because before they invested in some expansion, they couldn't take new customers. And yet our tax policies will penalize them.
And, quite honestly, I don't care how large an estate one might have, I think it is wrong, fundamentally wrong, and actually unconscionable that the government would lay claim to 55 percent of an estate. Some people say, well, these wealthy folks can plan around it. Some can. Boy, you had better plan your debt too, as so many folks cannot.
But it all comes back to the economy. And I believe in Republican budget principles that are sound, through promoting enhanced prosperity, by balancing the budget and continuing the tax relief, through making needed reforms to entitlement programs, as our Budget Committee witnesses pointed out, increasing accountability through budget and appropriation reforms to help end Washington waste, fraud and abuse.
When we look, Mr. Speaker, at what is before us with the budget, it is the largest tax increase in American history: $400 billion, that is with a B, $400 billion tax increase. And my friends and I, Mr. Speaker, believe that that will be damaging to our economy. And I say that because of the facts. The facts point out that when tax relief was brought about in 2003, the unemployment rate went down. GDP went up. Jobs were created. And I find that exciting.
When I entered politics a few years back, I never thought that I would become so enthused about economic principles about good, sound tax policy, but I have seen what tax policy can do over these last few years, that tax relief can create jobs. Tax relief can leverage a family's dollars, hard earned dollars in our economy so that we can have good, thriving businesses in all of our districts, large and small, rural and urban. We need a good sustainable farm bill that builds on the future, that uses our experiences from the past, Mr. Speaker, in realizing that we need to build our markets with our trading partners. And we can expect good, sound trade policy, not giving away everything, and so that we can help our energy markets, we can help our agriculture markets.
And especially I find it so exciting about the future when we see agriculture and energy coming together. I think we need to be careful when we talk about energy. As I was reading an article the other day, Time magazine, I had an article that said eating a T-bone steak is as egregious in our environment as driving a Hummer vehicle. I found that to be quite surprising, honestly. I certainly represent an area that probably contains more cattle than any other district in the United States. And I don't bring up this issue because of that, but I think that as we address our energy needs and looking to the feature, we need good commonsense policies.
And that is what I want to work on because I do care about the future. I care about entitlement reform. I care about a balanced budget so that we can encourage our coming generations to focus on the future, so that they can see even more opportunity and that their prosperity is not punished through bad tax policy.
Mr. Speaker, although we are coming to an end to this time of discussion, I think that we all hope that promoting prosperity that has taken place over the last few years will not come to an end. And I want to very quickly point out that this is what is about to come to an end, even though it has been working, even though we have been creating jobs, even though the deficit has been cut in half actually. Despite many of these spending measures, the deficit has been cut in half over the last couple of years. But we are about to see an end to tax relief for the average family of four earning $40,000 a year of $2,052 in taxes. Taxes are going to go up.
The Republican budget focuses on promoting prosperity through the tax relief of $4,712 in average taxes paid by 27 million small businesses. These are small businesses. These aren't necessarily the wealthiest of the wealthy. These are common, everyday Americans working hard and growing our economy.
I hope that we can come back to a budget that promotes prosperity by keeping the death tax at zero through 2012, perhaps even beyond, because I believe that the government should not have the right to take 55 percent of an estate. That would be 55 percent of a ranch or a farm in my district, where we are encouraging young farmers and ranchers to engage in the business, to engage in the economy. And yet they would have to come up with cash to inherit the farm or ranch? Unconscionable.
I believe that we can do better. That is why I like to focus on the future and I like to focus on the future through building our economy with sound tax policy, availing capital to our entrepreneurs so that our entrepreneurs can be creative, can pursue innovation and grow jobs, becoming prosperous. And they will pay taxes. They will pay a fair amount of taxes all along the way. But let's not take too much of it and punish them.