Mr. Speaker, I offer a motion to instruct. Mr. Speaker, I yield myself such time as I may consume. This is a very simple motion. The motion calls on Congress to extend middle-class tax relief without increasing the deficit. There is a…
Mr. Speaker, I offer a motion to instruct.
Mr. Speaker, I yield myself such time as I may consume.
This is a very simple motion. The motion calls on Congress to extend middle-class tax relief without increasing the deficit. There is a broad, bipartisan support for extending the middle-class tax provisions which expire at the end of this year. There is also bipartisan support for the concept of pay-as-you-go to avoid further increasing the record budget deficits facing our Nation. Our motion would put the House on record in support of a conference report that achieves both of these goals.
I strongly support middle-class tax relief. I support extending marriage penalty relief. I support continuing the $1,000 per child tax credit and the expanded 10 percent tax bracket.
What I oppose is passing those tax cuts with borrowed money and leaving our children and grandchildren to pay our bills.
The Blue Dog budget and Spratt budget substitute called for extension of middle-class tax relief offset by suspending a portion of additional tax cuts for upper-income taxpayers.
More recently, a bipartisan group of Senators has put forward a proposal to expand the three middle-class tax cuts for 1 year, offset by an extension of customs user fees and closing corporate tax loopholes.
The question is not whether or not we should provide tax relief to middle-class families. The debate is whether we should do so with borrowed money, adding more debt on top of our $7.1 trillion national debt.
We should not pay for tax cuts by borrowing money against our children's future. Congress should be required to sit down and figure out how to make things fit within a budget, just like families across the country do every day. If we do not pay for tax cuts by cutting spending or replacing the revenues, every dime of the tax cuts will be added to the debt we will leave for our children and grandchildren.
At a time when our national debt is approaching $8 trillion and our Nation faces tremendous expenses for our troops overseas, it is irresponsible to continue passing legislation that would put our Nation even deeper in debt.
As of the close of business last Friday, our total national debt stood at $7,273,792,456,490.62. It appears very likely the debt limit will be reached sometime in late September or October, with the most likely date being early October, and here let me pause for a moment and say instead of working in a bipartisan way, which we could achieve in a heartbeat to increase the debt ceiling, what we continue to face are more and more bills to increase spending and decrease revenue and increase the deficit.
We offer the hand of bipartisan cooperation on this amendment tonight, and in my opinion, if this would suddenly become the leadership's position, we would pass the tax cuts that the folks on this side of the aisle are talking about unanimously tomorrow or the next day, and it would conference out of the Senate.
But instead, it appears very likely the debt limit that will be reached
sometime in late September or October will come and go, and we will have a crisis.
Secretary Snow has publicly urged Congress to increase the debt limit as soon as possible, even before recessing in August, and we should do that. The most responsible thing for this Congress to do is do exactly what Secretary Snow is asking us to do.
As of the end of April, $1.726 trillion of our debt was held by foreign investors, more than $1 trillion held by official institutions of foreign countries. Despite this, the leadership of this body is talking about bringing up legislation that would add another $75 to $180 billion to that debt. And some folks even have the nerve to say with a straight face they are taking a conservative position.
Those who want to extend expiring tax cuts or make the tax cuts permanent should be willing to put forward the spending cuts or other offsets necessary to pay for them.
Applying pay-as-you-go rules to tax cuts do not prevent Congress from passing more tax cuts. All it says is that if we are going to reduce our revenues, we need to reduce our spending by the same amount.
If Republicans actually mean what they say about controlling spending, you should have no problem with applying pay-as-you-go to tax cuts, because it would force Congress to actually control spending when we pass tax cuts instead of just promising to do so in the future and having what apparently seems to be a good campaign issue.
The problem is that actions of Republicans have not matched their rhetoric. They cut taxes without cutting spending, in fact, increasing spending at the most dramatic rate that we have seen in many, many years. They charge the difference to our children and grandchildren by increasing the deficit. We should provide tax relief to working men and women, but we must do so without increasing taxes on our children and grandchildren. That is what the Stenholm amendment to instruct conferees would provide.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, will the gentleman yield?
Mr. Speaker, I know the gentleman did not intend to mischaracterize my amendment.
I guess I did not hear what I thought I heard you say.
Mr. Speaker, will the gentleman yield?
You are mischaracterizing my amendment. We are suggesting that the tax cuts be extended through next year. You are describing something that is not going to happen in my amendment, leaving a wrong impression with the people that might be listening to us right now.
Mr. Speaker, I yield myself such time as I may consume.
I think it is a fascinating argument. We have heard it time and time and time again. My friend talks about the lack of controlling of spending. Let me remind, Mr. Speaker, you control this House. You control the Senate. You control the White House. All of the great speeches that are made about controlling spending are your responsibility.
This amendment will not stop that from happening. In fact, I suggest just the opposite has been happening because we continue to pay tax cuts but spending goes up. Nothing in my amendment suggests that spending would not go down. If you want to have a tax cut, pass the spending cuts first. Do not just do it on the promise of a theory that so far has not worked. Did not work in the 1980s, has not worked in the 1990s. But yet we hear the same rhetoric; and with all due respect, my colleague mischaracterizes our amendment.
I would be happy to yield at any time to my friend.
I yield to the gentleman from Wisconsin.
Reclaiming my time, I take back time because again you are totally misleading the body when you make that statement.
If you go back to PAYGO as was originally passed in this body in 1990, repassed in 1993, repassed in 1997 with Republican votes for it and Democrats joining, like myself, in putting that in place, it worked. There is nothing in this amendment that suggests that you, the majority party, must cut entitlement spending in order to achieve a tax cut.
I yield to the gentleman from Wisconsin.
Yes.
That is the problem. That is the problem. It is a lack of understanding.
PAYGO means you have got to come up with the spending cuts to take care of the amount of tax cut.
The gentleman has misstated the facts again. There is no budget. There is no budget until we get a House-Senate conference and we have a budget. If we had a budget, I would probably be standing up here agreeing with parts of what you are saying.
Reclaiming my time, that is precisely why I am standing here tonight offering a solution for the House and the Senate.
There is a bipartisan family tax relief proposal in the other body. It calls for a clean 1-year extension of the present law, $1,000 tax credit. It calls for the marriage tax penalty relief and the standard deduction, clean 1-year extension of present law so that married couples get twice the standard deductions of single filers. It calls for the 10 percent rate bracket clean 1-year extension. It calls for 1- year acceleration of the scheduled 2005 increase from 10 to 15 percent. It provides for the benefit of the child credit to military families by expanding the definition of earned income.
There is not a bit of this that you are opposed to. We all agree on that.
Now, what my proposal does is the offsets that they put in their bill. The Concord Coalition today has endorsed what this bipartisan group of Senators, let me read the names, Senator Snowe, Republican of Maine; Senator Baucus, Democrat of Montana; Senator McCain, Republican of Arizona; Senator Breaux, Democrat of Louisiana; Senator Chafee, Republican of Rhode Island; Senator Lincoln, Democrat of Arkansas.
The other body is showing some signs of saying, look, it is time for us to deal with a very serious problem. If we do not act, these tax cuts are going to become tax increases on the middle-income folks. If we do not act. To act you are going to have to eventually get some kind of bipartisan agreement. You will never get bipartisan agreement by standing up in this body and saying, we passed a budget in this House. Whoopee. We passed one in this House. But you have got to have a Senate concurrence if you are going to, in fact, achieve something that we all agree needs to be done. That is my point.
We can do this. It is not that difficult. Unless you just believe we can borrow unlimited amounts of money.
There are some misconceptions flowing around. I have been in this body now for 13 terms. And when I look at spending as a percent of gross domestic product when I arrived here in 1979 and compare it with spending today, total spending as a percent of GDP, it is one half of 1 percent less today than it was in 1979. Revenue has dropped by 5 percent. The amount of revenue that we have available to fund the programs, including fighting three wars, has dropped by 5 percent; and in dropping the revenue by 5 percent, we are adding to the deficit at an alarming rate.
It does not seem to bother you, Mr. Speaker. It does not seem to bother my friend. As long as we were out here arguing about tax cuts, it does not bother anyone. And why should it? The folks that this should bother are our children and grandchildren, and they have about as much knowledge of this as my friend arguing on the other side here today and they cannot vote. That is the problem. Our grandchildren cannot vote.
Adding to the deficit under a political theory that has not worked, did not work in the 1980s, is not working today, is dangerous to the future health of this country. I believe that.
My friends on the other side apparently do not believe that. And that is fine. As long as you stand up and say, honestly, I do not believe it is going to harm the United States of America that we borrow another 75 to $180 billion, because tonight I do not know what my friends are proposing in this mysterious conference. Very unusual procedure that we are talking about in doing what no one knows until the leadership deems that it is going to be on the floor, and deems the way it is going to be carried out, and deems the way that it is going to, in fact, effect the future economy of this country.
Now, that is perfectly within the purview of the majority party, to continue to allow business as serious as the economic future of this country to be decided in a very small cadre of Members who happen to be in the leadership. And if you continue to do as you have been doing, you are going to be successful in this body. But then what happens if we cannot get an agreement with the other body?
Why would we not come together tonight and say, okay, we can have a 1-year extension and we can pay for it, either with the way the Senate has proposed it or by finding some other spending cuts up front. Not doing it like we did it 2 weeks ago, and spending 7 hours in this body debating all these wonderful amendments and then having nothing. Some got 100 votes and some got 105. And that is perfectly within the purview of any Member to stand up and speak for what they are for. But, ultimately, when you are in the majority party you have to accept the responsibility, the responsibility of your actions.
Just as I took the hand of your party in the 1980s when we were in the majority in this body and we worked together for some compromises regarding the economy of this country, we offer that hand tonight. This amendment, if you look at it honestly, again, is a very simple motion. It calls on Congress to extend middle-class tax relief without increasing the deficit. What is wrong with that? I ask my colleagues, what is wrong with extending middle-class tax relief without increasing the deficit? Why are my friends on the other side of the aisle so bound and determined that you want to continue to increase the deficit because you have a theory, a theory, that by cutting taxes without paying for them that it will do something other than increase the deficit?
I yield to the gentleman from Wisconsin.
Mr. Speaker, I do. I respect the sincerity of the gentleman
and his belief. I happen to believe that he is wrong and is being proven wrong every day by the facts. And let the facts speak for themselves.
That is the whole question today, and this is something that we can continue to argue, but if we do not get some agreements fairly soon, middle-income folks will get a tax increase, and it will not be my fault.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.