NATURAL RESOURCES MANAGEMENT ACT--MOTION TO PROCEED--Resumed
Mr. President, I pay tribute to an extraordinary American. I stand here today to pay my respects to a World War II veteran who dedicated his life to public service. After serving his country in uniform in the Navy, this gentleman from…
Mr. President, I pay tribute to an extraordinary American. I stand here today to pay my respects to a World War II veteran who dedicated his life to public service.
After serving his country in uniform in the Navy, this gentleman from Alabama served the American people as a civil servant. For more than four decades, he was a tenacious watchdog who chased down fraud, waste, and abuse at the Pentagon. A hero for taxpayers and a war hero against waste, Ernie Fitzgerald recently passed away at the age of 92. I, today, sing the unsung praises of this remarkable champion of whistleblowers.
He was a fiercely independent watchdog. He was one of the rarest of breeds. He brought an uncommon devotion to his work. He prevailed against the muzzles of many of his handlers whom he called ``over- dogs.'' They used to try and silence him. He prevailed over those muzzles--it didn't work--because when Ernie sniffed wrongdoing, he would sink his teeth in and never let go. He was a bulldog. His superiors squirreled him away in a farflung cubbyhole at the Pentagon. Basically, they exiled him to the Pentagon's attic. The big dogs at the Pentagon didn't want this watchdog's work seeing the light of day.
As Americans, we are blessed to have constitutional protections for freedom of speech and freedom of the press. These beacons of liberty worked to Ernie's advantage. Our system of checks and balances also helped to make sure wrongdoing was never swept under the rug.
Throughout my public service, I have paid close attention when I have gotten a whiff of wrongdoing. I have learned that a pervasive stench is often not far behind. As a lifelong Iowa farmer, I know what a load of manure really smells like. So when I ran into a bit of institutional gridlock in my efforts to freeze the defense budget back in the early eighties, I wanted to talk to a pair of analysts at the Pentagon. Their efforts exposed the Federal money hose that showered unbridled tax dollars over bloated defense contracts.
Ernie Fitzgerald and a fellow named Chuck Spinney aren't household names, of course, but their crusade to fix the fiscal mess at the Department of Defense has inspired this Senator to conduct robust oversight over the last four decades. Ernie's body of work has helped me to derail the Pentagon's gravy train.
Do you remember back three decades ago--and there are probably examples today--when there were $450 hammers, $640 toilet seats, and $7,600 coffee pots? Those were real items, and those were real figures. Those pricetags for spare parts gave taxpayers sticker shock and ought to have for good reason. Americans know the price of everyday household items. They sure know what a hammer or a toilet seat costs at their local hardware stores.
As Ernie Fitzgerald explained, Americans aren't expected to know what a B-1 bomber or an F-15 fighter should cost, but when you add all of that up, you get a boondoggle of ``overpriced spare parts flying in close formation.'' Those were Ernie's words. Ernie's fiscal forensics uncovered mountains of mismatched receipts and invoice gaps that left taxpayers footing the tab for rampant waste and unchecked spending sprees. Ernie Fitzgerald was a sleuth for truth. His quest gave Pentagon officials heartburn. His work gave me the leverage I needed in Congress to enact an across-the-board spending freeze, but I am getting a bit ahead of Ernie's story.
For the record, Arthur Ernest Fitzgerald was a patriot, a whistleblower, and a watchdog. He had a heart of gold, but it was as tough as nails. He outmaneuvered top military brass by getting down to brass tacks. He was a gentleman's gentleman who had a big southern drawl and a bone-deep genetic allegiance to the truth. In fact, his allegiance to the truth was a big bone of contention between him and those on the highest rungs of power of the U.S. Government--from the President of the United States to the most highly decorated brass in the U.S. military. Ernie had uncommon courage to stand up for the truth at great expense to his career. He put integrity and pride above saving his own hide. He spoke truth to the powers that be, and he lost his job for doing it.
As I mentioned, our acquaintance started during my first term in the Senate. I was awfully wet behind the ears. I was a dyed-in-the-wool fiscal conservative. At the same time, I was cutting my teeth as a congressional watchdog. Ernie Fitzgerald, at that time, was on a short leash at the Pentagon in his having been rehired--can you believe this?--under court order after having been fired for having blown the whistle on fiscal mismanagement at the Pentagon. That is how whistleblowers were treated then, and they are treated the same way today.
I remind my colleagues and the American people where Ernie's earnestness for truth landed him. The 37th President of the United States referred to Ernie Fitzgerald in those infamous Watergate tapes. You know who that was--Nixon. In Ernie Fitzgerald's quoting of Nixon, Nixon said: ``Get rid of that SOB.'' Those marching orders were delivered after Ernie spilled the beans at a Joint Economic Committee hearing on November 13, 1968. He testified before Senator Proxmire's panel that taxpayers were on the hook for a $2 billion cost overrun on the C-5 aircraft. For this transgression of truth-telling, he was fired by the Air Force.
Let me be clear. Ernie Fitzgerald lost his job for committing the truth, and that reveals the big-time risk whistleblowers face even today if they step forward to expose wrongdoing.
Thanks to Ernie's characteristic resilience, sheer determination, and our system of checks and balances, Ernie got his job back. He filed a lawsuit that made its way through the courts. It took a dozen years for him to get his job back. On June 15, 1982, Ernie returned to work at the Pentagon but in the attic of the Pentagon. That was 14 years after he testified about the C-5 and its $2 billion cost overrun. Although Ernie held a very senior position in the Air Force--with the job title of Management Systems Deputy--at the Pentagon, he was kept at arm's length. His job description was spelled out in a court order, but he was never allowed to do that job that the court said he ought to have had.
That is how whistleblowers are treated. You ignore them. You put them in the attic. They go nuts. He was treated as an outcast, as I am sure I am demonstrating to you. He was snubbed by his superiors and was left to his own devices to make a difference.
Once again, the genius of our system of checks and balances came into play. Ernie was not snubbed by this U.S. Senator. In fact, we discovered we shared a bone-deep genetic aversion to waste. Like many Midwesterners, I don't like to waste time or money. That is why, as a U.S. Senator, I try to keep a tight-fisted grip on the Federal purse strings. It is why, as a taxpayer watchdog, I take oversight work very seriously. Every Member of Congress has a constitutional duty to conduct oversight--every Member of Congress. We need the eyes and ears of whistleblowers to root out the truth. That is why I want to hear what whistleblowers have to say.
As a new Senator in a Republican administration, the Reagan administration, I previously mentioned my proposal to enact a yearly across-the-board budget freeze. An across-the-board spending freeze guarantees shared sacrifice. I wanted to make sure it could be done without harming national security, so I needed answers from people who could tell the truth. I called on the Secretary of Defense at that time, Weinberger, and asked if I
could talk to a Pentagon budget analyst named Chuck Spinney. I was told, yes, he could come to my office.
It turns out the Pentagon didn't want Chuck Spinney, a civil servant, briefing me. At that time, I had an orange Chevette, so I jumped in it and drove from the Capitol over to the Pentagon. Even then, Chuck Spinney was not allowed to see me. As I watched the Pentagon disappear in my rearview mirror, I thought the Pentagon was making a mistake, though I didn't realize the publicity blunder it would turn out to be. What I did know was that one way or another, this Senator was going to talk to that civil servant, Mr. Spinney, whom the Pentagon didn't want me to talk to.
Six weeks later, Chuck Spinney testified before a standing-room-only joint hearing of the Senate's Budget and Armed Services Committees. It was held in the ornate Russell caucus room. Chuck Spinney exposed the mismanaged fiscal mess at the Department of Defense. The Pentagon was front-loading the budget, effectively stuffing 10 pounds of manure into a 5-pound sack. The following Monday, Chuck Spinney's photo was on the cover of TIME magazine.
The next time I wanted more answers about ongoing fiscal mismanagement at the Defense Department, I took a second road trip, in my orange Chevette, to the Pentagon. This time, I wanted Mr. Ernie Fitzgerald to testify before my subcommittee. Needless to say, the Pentagon didn't roll out the red carpet for me, but there were about 50 members of the press crammed into Ernie's attic cubbyhole to witness this U.S. Senator handing Ernie Fitzgerald a subpoena.
Courageous truthtellers can make all the difference, and Ernie was such a courageous truthteller. Ernie's evidence showed that contracting waste was bloating defense budgets and not beefing up military readiness. Instead, they were padding contractor profits at taxpayers' expense.
Ernie Fitzgerald's pursuit for truth is one of the primary reasons I also worked to strengthen whistleblower protections. What I like to call committing the truth often comes with a steep price.
Whistleblowers, like Ernie Fitzgerald, put their jobs, their livelihoods, and their reputations on the line. The pressure in this bureaucracy and in this government to ``go along to get along'' is entrenched in a culture in both the public and private sectors, but, of course, it is a way of life in the Pentagon.
In the late 1990s, I borrowed Ernie for a couple of years to work in my Senate office. He was assigned as an Air Force representative and expert who worked side by side with my staff. Together, we investigated vendor payments and bookkeeping, particularly in the Defense Finance and Accounting Services. This was in their accounts payable operations. It was tedious and time-consuming work, but Ernie Fitzgerald's unwavering work ethic was up to that task to restore the public trust.
Ernie Fitzgerald never minced words. He attributed lax procurement rules and, of course, cronyism as the reasons the taxpayers were being fleeced, and he was bound and determined to stop these shenanigans. As Ernie once said, ``government officials, from the majestic office of the president to the lowest, sleaziest procurement office, lie routinely and with impunity in the defense of the system.''
In 1998, Ernie testified at a congressional hearing I conducted to examine two audits freshly prepared by what was then called the General Accounting Office. The hearing was called ``License to Steal: Administrative Oversight of Financial Controls at the Department of Defense.''
The audits revealed nonexistent internal financial controls. Basically, the Defense Department's bookkeeping system was on auto pilot. It allowed for a freewheeling spending spree. The absence of basic financial controls fostered fraud, outright theft, and mismanagement of tax dollars. It was a story of rinse and repeat. Costly accounting errors were masked by a fundamentally flawed payment system that can't be audited, even today.
Working from within this bureaucratic behemoth, Ernie Fitzgerald devoted his life to exposing the abuse of power within the military- industrial complex. Outsized, but not outmatched, Ernie Fitzgerald evokes the image of David versus Goliath. At the height of the Cold War, he helped to freeze a galactic defense buildup and shielded taxpayers from massive, unaccountable expenditures.
America owes a debt of gratitude to this now-deceased Ernie Fitzgerald and to the brave work of whistleblowers who will follow in Ernie Fitzgerald's legendary footsteps. These courageous truthtellers risk everything to shed light on wrongdoing.
Ever since I met Ernie Fitzgerald and came to know the bureaucratic stonewalling that he fought against, I have worked to empower and protect whistleblowers. Transparency brings accountability.
Since passage of the bipartisan Grassley-Berman updates to the False Claims Act way back in 1986, the Abraham Lincoln-era antifraud tool is credited with recovering nearly $60 billion back into the Federal Treasury, and they are still counting, at an average of about $3 to $4 billion a year. The Department of Justice has called it the government's single, most effective antifraud weapon that it has in its arsenal. I am told my amendments effectively deter hundreds of billions of dollars of fraudulent activity.
As long as I am in this Senate, I will continue to work to keep the False Claims Act razor sharp and to strengthen whistleblower protections. I will always remember the good work of Ernie Fitzgerald and lots of others like him who kept their nose to the grindstone to do simply what is right.
Ernie Fitzgerald's long march for the truth teaches us that it requires constant vigilance to weed out a deep-rooted culture of cronyism, from the military-industrial complex to Big Pharma and elsewhere.
As cofounder of the Senate Whistleblower Protection Caucus, I will work to see that the mission of truthtellers is protected for generations to come. I will continue to work to strengthen sunshine laws, whistleblower protections, and enforcement of the Inspectors General Act.
The inspector general of the Justice Department called whistleblowers the ``lifeblood'' of his organization's work. I completely agree.
I will long remember the genteel southern drawl and the charm of my friend Ernie Fitzgerald. I am glad I was able to visit him in person at the Sunrise Nursing Home in Falls Church, VA. He leaves behind a legacy of truth that ought to encourage every American to stand up for what is right and what is just.
Like many whistleblowers, Ernie Fitzgerald took the road less traveled. In the words of Robert Frost, ``that has made all the difference.''
In closing, Barbara and I extend our condolences to Ernie's peers, friends, and family members. I bid this faithful public servant a fond farewell with a Scripture message that he shared with me from time to time. He understood that when the going got tough, the tough got going. To my departed brother in Christ, may the words of John 8:32 carry him to life everlasting: ``You shall know the truth, and the truth shall make you free.''
I yield the floor.
Mr. President, like several of my colleagues today, under the leadership of my colleague from Iowa, Senator Ernst, we come to the floor to discuss the benefits of the tax cut of 14 months ago. Congress then passed historic tax legislation that fundamentally reformed our Tax Code and provided tax relief to middle-income Americans and to job creators. The Tax Cuts and Jobs Act, as it is called, made good on our commitment to provide significant tax relief to middle-income taxpayers while making the Tax Code simpler, fairer, and, of course, pro-growth oriented.
Thanks to a near doubling of the standard deduction, millions of taxpayers are discovering right now, as they file their taxes, they can pay less without spending hours and hours sifting through receipts and extra forms, all because the standard deduction is doubled.
Middle-income taxpayers can also expect to see a significant reduction in their tax bill from last year. For example, an Iowa family of four, with a State's median income of around $73,000, stands to see their tax bill cut by more than half, or approximately $2,000. This is real relief that began appearing in many taxpayers' paychecks at the start of 2018.
Given this, the best way for taxpayers to see how tax reform affects their bottom line is to compare this year's tax return with last year's tax return, rather than on the size of their refund. At the end of the day, the vast majority of taxpayers will see that less of their hard- earned money is coming to Washington for 535 Members of Congress to decide how it will be spent. Of course, those of us making that decision, 535 of us, would have less economic impact than 150 million taxpayers with more money to decide how to spend or save--how to spend it or how to save it. That would enhance our income, creating jobs, much more than Washington disposing of that same amount of money.
It responds to the animal spirits of the free market system--willing buyer and willing seller. This tax release stems from many pro-family and pro-middle-income tax provisions in the law. The law also enacted much needed tax relief for important job creators. It provides a very significant deduction on business income for small businesses, effectively lowering their top tax rate to under 30 percent, in many cases.
This bill corrects an injustice that has existed for decades; that there has never been recognition of the small business person who files an individual tax form compared to a corporate tax form. Small businesses never had equity like they should.
Small businesses, down to the smallest family-owned corner store and family farmer, are benefiting from that provision. Additionally, the law lowered the statutory corporate rate down from the highest in the developed world to 21 percent. The previous corporate tax rate was putting American companies at a very competitive disadvantage globally and consequently costing American jobs.
Just as important, the law put in place immediate expensing for the depreciation of equipment that businesses of all sizes and shapes would invest in. As a result, job creators will have every incentive to invest back into their business and expand operations here at home.
Nearly as soon as the tax cut was signed into law, its positive effects began to be felt throughout the economy. Hundreds of companies began announcing bonuses, pay raises, higher retirement contributions, new hiring, and increased investment. This included numerous businesses in Iowa. Utility companies across the country also responded by passing along their tax savings to their customers in the form of lower electric gas and water bills. Higher take-home pay, bonuses for employers, and reduced utility bills were all important benefits of the tax cut.
While the tax cuts and reforms have only been in effect for a little over a year, the economic signs point toward it having its intended effects. In 2018, the economy grew at 3.1 percent--the highest growth rate since 2005. Wages have risen at the fastest pace in nearly a decade. Nearly 3 million jobs have been created since the passage of tax reform, including more than 15,000 new jobs in Iowa alone. Unemployment rates for Hispanic and African-American workers have hit alltime lows.
For the first time on record, the number of job openings has exceeded job seekers for 9 straight months. Small business optimism is at near- record highs, and growth in business investment has been more than twice the rate it was during the sluggish Obama economy.
All of this good economic news points toward continued economic growth moving forward. This is key to sustainable, long-term wage growth, which is the most powerful anti-poverty measure that exists. Thanks to the tax cuts and the reform, America is open for business, and the economy is booming--all to the benefit of individuals and families in Iowa and every State.
Of course, all of this good economic news is no reason for us to become complacent. Over the next 2 years, I look forward to working with my colleagues on both sides of the aisle to build on the success of tax reform. I say that willingness to work with my colleagues both from the standpoint of being an individual Senator from the State of Iowa as well as being chairman of the Senate Finance Committee.
I yield the floor.