Mr. Speaker, the Blue Dogs are going to be taking this hour to talk about the debt ceiling. And for those who are listening, the Blue Dogs are about 35 Democrats in the House of Representatives who believe that we ought to be fiscally…
Mr. Speaker, the Blue Dogs are going to be taking this hour to talk about the debt ceiling. And for those who are listening, the Blue Dogs are about 35 Democrats in the House of Representatives who believe that we ought to be fiscally responsible. The debt ceiling, for those who are listening, too, is a process by which we pass a budget and we say that we are going to pay for items in the budget. And if we do not have the money to pay for the items in the budget, then we have to borrow the money.
That takes an act of law. About 7 or 8 months ago, we did not have enough money, so we raised the debt ceiling by approximately $450 billion. Now 7 or 8 months later, to fast forward to today, we are going to have to do it again. We are going to have to raise it $984 billion. This is at the same time that a conference committee in these halls of Congress are debating a multi-billion dollar tax cut. Many of us are not in agreement with that, but there are many in this body and the other body that believe that we should borrow the money in order to do a tax cut.
In President Bush's State of the Union address, the President said, ``This country has many problems. We will not deny, we will not ignore, we will not pass along our problems to other Congresses, to other Presidents and other generations.'' I am quoting from the President of the United States. But that is precisely what we are doing in our current budget and economic policies.
The House majority is trying to hide a $984 billion increase in the debt limit, the largest increase in the debt limit in history. This comes less than 8 months after we raised the Federal debt ceiling by a whopping $450 billion. When the President proposed his initial budget in the year 2001, the administration actually claimed there was a danger that the government would pay off its debt by the public too quickly. The administration's request for the second increase in the statutory debt limit is less than a year and shows just how farfetched those warnings were. The majority no doubt hopes that this increase in the debt limit is large enough to avoid dealing with the issue of our increasing national debt until after the election next year.
If the majority honestly believes that tax cuts with borrowed money is good economic policy, they should be willing to vote to increase the national debt to pay for their tax cuts, instead of relying on undercover, parliamentary tricks.
We Blue Dogs are firmly opposed to increasing the borrowing authority by $984 billion without efforts to restore fiscal discipline into the future and protect taxpayers from higher and higher debt. We understand that we have to borrow monies sometimes to pay our debts, and we feel like we should do the responsible thing and do that, but there ought to be some kind of road map put in place for the American people so we can see somewhere down the line how we are going to get out of this mess, and we are not doing that.
The one tax that cannot be repealed is the debt tax, the cost of paying interest on our national debt. The debt tax consumed 18 percent of all government revenues to pay interest on the $6.4 trillion national debt last year, including interest on debt held by government trust funds.
We are willing, as I said before, to support a short-term increase in the debt ceiling to avoid the impending risk of default, but we will not support an increase in the debt limit of nearly a trillion dollars to allow the government to continue on the course of deficits as far as the eye can see. It is irresponsible to provide a blank check for increased borrowing authority without examination of the conditions that make such an increase necessary. Just like a credit card spending limit serves as a tool to force families to examine their household budget, the debt limit reminds our Nation to evaluate taxing and spending policies.
A farmer or small businessman who needs an extension of their credit must work with the bank to establish a financial plan in order to get approval from the bank. We should be following that principle by working on putting our budget back in order before we raise our credit limit.
A thorough debate on lifting the debt ceiling is particularly timely as Congress considers tax cuts that could add more than a trillion dollars to the national debt over the next decade. Every dime of tax cuts being pushed by the majority will come from borrowed
money. Under the majority's budget, the national debt would exceed $10 trillion by the year 2009 and $12 trillion by the year 2013. The borrow and spend policies of this current majority will leave a crushing debt for future generations who do not have a say in what we are doing and do not benefit from the tax cuts and spending programs.
Mr. Speaker, I yield to the gentleman from Florida (Mr. Boyd) who has been an expert on this issue and a great spokesman.
Mr. Speaker, I thank the gentleman from Florida (Mr. Boyd) for those thoughtful remarks and would like to now yield to the gentleman from Tennessee (Mr. Tanner).
I want to thank the gentleman from Tennessee for being a continued champion on this particular issue. I am into my third term here, Mr. Speaker. I came to know the gentleman from Tennessee right away. He has consistently been a voice of reason on this particular issue. He has not changed a bit, unlike others who have changed in this body, about the importance of managing our Federal deficit.
Mr. Speaker, I would like to introduce the senior Blue Dog, of the 35 that are here, and has been the leading voice for the Blue Dogs on this particular issue. I yield to the gentleman from Texas (Mr. Stenholm).
Mr. Speaker, will the gentleman yield?
The gentleman, of course, is a champion in this area as are the gentleman from Tennessee (Mr. Tanner), the gentleman from Kansas (Mr. Moore), and all the Blue Dogs. We talk in terms of billions, sometimes trillions of dollars. For people who may be listening in their living room, maybe eating dinner to the debate that is going on here this evening, why is this an important issue to them? Why should they care about this?
Mr. Speaker, I thank the gentleman for his eloquence and leadership on this issue and for his explanation, and we look forward for the gentleman from Texas (Mr. Stenholm) to continue to assert his leadership in this area.
One of the things that the gentleman from Tennessee was talking about was the debt tax that we cannot repeal. He talked about billions of dollars that we are spending in interest. Sometimes people's eyes glaze over when we talk in terms of billions of dollars. What that means to an average family is, if they pay $1,000 in taxes, approximately $175 of that goes to pay the interest that we accumulate. So if we would put our house in fiscal order, perhaps we would not have to pay such high interest payments; and that would be a tax reduction in a roundabout way.
Mr. Speaker, I yield to the gentleman from Kansas (Mr. Moore) who came into the Congress at the same time that I did. We became fast friends right away. I have a tremendous amount of respect for him. He represents the State of Kansas very well, and I am honored to call him my good friend.
I thank my friend from Kansas for taking the time to talk about this very important issue and for his remarks.
Mr. Speaker, I would like to yield such time as he may consume to the chairman of the Blue Dogs, the gentleman from the State of Texas (Mr. Turner).
Mr. Speaker, I thank the gentleman from Texas for his eloquence and his leadership on this particular issue.
Mr. Speaker, that is the number of Blue Dogs who will be speaking tonight. We feel very strongly about this issue, as you have heard and the American people have heard. It is very hard to get the message out across because interest rates are very low right now, but there will come a day that, if we do not put our fiscal House in order, we could return to the days where interest rates were very, very high; and I do not think we want to do that, for the sake of not only this generation, but the next.