Mr. President, I wish to start by thanking Senator Whitehouse who has shown such strong leadership on the issue we are going to be discussing this afternoon, which is how do we get out of the sequestration box we are now in. I also wish to…
Mr. President, I wish to start by thanking Senator Whitehouse who has shown such strong leadership on the issue we are going to be discussing this afternoon, which is how do we get out of the sequestration box we are now in. I also wish to thank him for joining with me in sponsoring the Cut Unjustified Tax Loopholes Act, which could do so much to address the problems we will be discussing today, including the need to move forward on solutions to our budget deficit and to ending sequestration.
I ask unanimous consent that following my remarks, the Senator from Rhode Island be recognized for his remarks on this subject.
Mr. President, at the beginning of March, when Congress's failure to reach a compromise on deficit reduction triggered sequestration, some in Congress were ready to declare victory. ``Sequestration will take place . . . [and] I am excited,'' said one Member of the House of Representatives. ``It's going to be a home run,'' said another Member of the House of Representatives. ``This will be the first significant tea party victory,'' said a third Member of the House of Representatives.
Well, sequestration may be a victory for the tea party, but it isn't a victory for the American people. It is not a victory for the men and women of our military and their families.
Over the past 2 months, the Senate Armed Services Committee has heard testimony from our highest ranking military leaders, including the Chairman of the Joint Chiefs of Staff, the Army Chief of Staff, the Chief of Naval Operations, the Air Force Chief of Staff, the Commandant of the Marine Corps, and the Combatant Commanders who are responsible for our forces in Afghanistan and Korea and around the world. Each of these military leaders told us that continued sequestration will damage our security and harm the troops they lead.
General Dempsey, the Chairman of the Joint Chiefs of staff, warned us:
If sequestration occurs, it will severely limit our ability
to implement our defense strategy. It will put the Nation at
greater risk of coercion, and it will break faith with men
and women in uniform.
He warned us that continued sequestration would ``destroy'' military readiness. General Amos, the Commandant of the Marine Corps, told us: ``Sequestration will leave ships in ports, aircraft grounded for want of necessary maintenance and flying hours, units only partially trained and reset after 12 years of continuous combat, and modernization programs canceled.'' The result, he stated, would be ``a lapse in American leadership.''
General Odierno, the Chief of Staff of the Army, told us:
Sequestration will result in delays to every one of our 10
major modernization programs, the inability to re-set our
equipment after 12 years of war, and unacceptable reductions
in unit and individual training. . . . It will place an
unreasonable burden on the shoulders of our soldiers and
civilians. . . . If we do not have the resources to train and
equip the force, our soldiers, our young men and women, are
the ones who will pay the price, potentially with their
lives.
The Vice Chief of Staff of the Air Force warned:
Lost flight hours will cause unit stand-downs which will
result in severe, rapid, and long-term unit combat readiness
degradation. We have already ceased operations for one-third
of our fighter and bomber force. Within 60 days of a stand
down, the affected units will be unable to meet emergent or
operations plans requirements.
The Vice Chief of Naval Operations told us:
In FY13, we will reduce intermediate-level ship
maintenance, defer an additional 84 aircraft and 184 engines
for depot maintenance, and defer eight of 33 planned depot-
level surface ship maintenance availabilities. At our shore
bases, we have deferred about 16% of our planned FY13 shore
facility sustainment and upgrades, about $1 billion worth of
work. . . . By the end of FY13 . . . nearly two thirds of the
fleet . . . will be less than fully mission capable and not
certified for Major Combat Operations.
We rely on the men and women of our military to keep us safe and to help us meet the U.S. national security objectives around the world. We expect our men and women in uniform to put their lives on the line every day, but in return what we tell them is that we will stand by them, we will stand by their families, we will provide them the best training, the best equipment, and the best support available to any military anywhere in the world. Sequestration in fiscal year 2013 is already undermining that commitment to the men and women in the military and their families.
There may be a few people who, hearing all of this, might still consider sequestration a ``victory.'' But members of the Armed Services Committee who have heard the testimony--Democrats and Republicans-- believe the continued sequestration is a grave mistake.
These cuts will damage our military readiness, restrict our ability to respond when crisis erupts, and restrict our flexibility in confronting national security threats from Iran to North Korea to international terrorism. These cuts will cost taxpayers in the long run because maintaining our military readiness today is far less expensive than rebuilding our military readiness tomorrow after it has been squandered.
The devastating effects of sequestration are also felt in other of our agencies and departments. These effects are going to harm students and seniors and farmers and families across this Nation. Continued sequestration will set back our slow climb out of recession, as well as education and medical research and health care and public safety.
As former Defense Secretary Panetta told our committee in February:
It's not just defense, it's education, loss of teachers,
it's childcare. . . . It's about food safety, it's about law
enforcement, it's about airport safety.
The desire to avoid this outcome is, I believe, bipartisan. That is why it is so baffling to me that some of our Republican colleagues still refuse to allow us to take the necessary next step to avert this continued damage. By refusing to allow a House-Senate conference
committee to meet--a meeting in which Members of both Chambers and both parties would work to resolve differences between the Senate- and House-passed budgets--a few Senate Republicans are objecting to the search for a solution to sequestration. For reasons I do not understand, they are objecting now to the normal budget process they previously urged us on with such energy to follow.
It is truly baffling because 2 months ago we heard from some Republicans that it was a travesty that we had failed to pass a budget. They called failure to pass a budget an outrage. Now that we have passed a budget, a few of our colleagues across the aisle are preventing us from going to conference so we can work out our differences with the House and finalize a budget.
Those colleagues want a guarantee in advance of a conference in which they will get their way on a number of issues or else, they say, they are going to prevent the conference from even occurring. They want the rules of the game to guarantee they are going to win even before they agree to play. The budget resolution is no game, but the analogy is apt.
I cannot understand the reasoning--I simply cannot understand that reasoning--but at a time when our national security is challenged on so many fronts and we face the effects of sequestration that I have outlined, this is not just illogical, it makes responsible governing impossible. It is harmful to our Nation. Getting to conference and working out our differences is simply essential.
I am very much encouraged that some of our Republican colleagues have come to the floor to point this out. They have spoken forcefully, admirably, courageously about the need for the Senate to move forward. They give me hope. Those Senate Republicans who have come to the floor and urged us to go to conference and urged those who are blocking our move to conference to remove the blockage have a mission which I hope succeeds.
I have spoken on this floor on a number of occasions about what I see as the proper path to sensible deficit reduction, and that is the reverse of sequestration. A significant majority of Americans believes we need a balanced deficit reduction plan to dig us out of the hole we are in. Such an approach would include some additional discretionary budget cuts, but prudent, prioritized cuts, replacing the hatchet which is sequestration with a scalpel instead.
Such an approach would include reforms to entitlement programs, and it would include revenue. Budget experts of all ideological stripes know additional revenue must be part of our deficit solution. By closing unjustifiable tax loopholes, such as those my Permanent Subcommittee on Investigations has outlined in detail on a bipartisan basis, we can provide tens of billions of dollars for deficit reduction--deficit reduction that does not require us to raise the burden on working families or on the men and women in uniform who put their lives on the line to keep us safe. That kind of revenue will help us reverse sequestration--part of a solution to this budget crisis we are in.
A balanced approach to deficit reduction is the approach to the budget which this body passed on March 24. I hope this position prevails in conference when we get to conference with the House. I would hope the Senate position prevails. But I cannot even believe that Members of this body would consider obstructing the budget process until they were given a guarantee they could get their way. It is the wrong way to govern. Most of us know it. You cannot guarantee in advance of a conference that the conference is going to have your outcome. If you want to instruct conferees, fair enough, and that is what the effort has been here on the part of the Democratic majority leader. But for some Members of this body to insist that unless they are guaranteed they will get their way in conference or else they are going to block us going to conference is not the way we are able to get anything done here. If we all took that position, we would never get anything done.
This obstruction does a disservice to the men and women who serve in our military and to the people of this great Nation whom they protect. Their position is as damaging as it is illogical. I hope they will soon relent to logic, to the needs of the Nation, and end the objection to proceeding to conference with the House of Representatives, because that is the way we can try to work out our differences, finalize a budget, and take the necessary steps toward deficit reduction and the end of sequestration.
I thank our Presiding Officer.
Again, I thank Senator Whitehouse. It is his initiative that brings us to the floor today. It is his initiative which has cast a light in so many ways on the budget dilemmas we face, but also the solution to these challenges.
I yield the floor.
If the Senator would yield for a question, if that position were taken by all of us, that is a guarantee of inaction?
Since I have interrupted the Senator, let me ask one additional question. I notice that even though the Senator's menu yields $127 billion, that he only requires $85 billion for the 1-year sequester replacement, which means that, for instance, if just the Buffet rule were put in place, which is a tax fairness approach, plus the bottom one, a tax break for offshoring, those two items out of this menu--and there are many other items which are not on the Senator's menu, those two items alone could reverse sequester for 1 year?
I wish to make one more comment about offshoring. My dear friend from Rhode Island knows that my permanent subcommittee has done a lot of work on the tax breaks for offshoring. In addition to what the Senator said about delaying the tax on profits, under our Tax Code, companies which move jobs overseas get a tax deduction for the cost of the moving?
If they are building a plant overseas, the cost of that plant can be deducted currently?
This is perhaps the most stunning thing I have learned fairly recently. It is even possible under our Tax Code for the cost of operations of that facility to be deducted currently, while the tax on the profits or the income of that operation is delayed, which means they can cut domestic taxes by the cost of running a foreign operation currently. That takes a little bit of gimmickry to do it, but that is what is going on. I just wanted to kind of fill in that one little element of some of these offshore bonanzas, these incredible loopholes that are in the Tax Code.
As the Senator from Rhode Island said, we should get rid of some of these
things even if we had no deficit because, as the Senator put it, they are embarrassments.
Again, if my friend would yield, the name of the bill which the Senator cosponsored is called Cut Unjustifiable Tax Loopholes.
There are plenty of tax deductions which are totally justified. Mortgage interest is justified, accelerated depreciation, there are all kinds of contributions.
These are justifiable tax deductions. What we are talking about are the unjustifiable ones which shouldn't be there. As the Senator points out, we are not proposing tax rate increases. The way I phrase it is I am talking about collecting taxes which should be paid.
Not increasing taxes or the rates for taxes, but collecting the taxes which, in all justice, really should be collected by Uncle Sam.