I thank the gentleman for yielding, and I rise today in opposition to the Progressive Caucus budget. This debate today could be described as a debate about the good, the bad, and the ugly. A kinder way you could describe it is the…
I thank the gentleman for yielding, and I rise today in opposition to the Progressive Caucus budget.
This debate today could be described as a debate about the good, the bad, and the ugly. A kinder way you could describe it is the responsible, the irresponsible, and the reckless.
We are going to have the House Republican budget brought forward on this floor today, brought forward by our chairman, Mr. Ryan, a responsible budget, a good budget, a budget that comes to balance in 5 years without raising taxes and tries to address the challenge that we face in the category of entitlements.
We have the Democrat leadership budget that is going to be brought forward, a budget that has the biggest tax increase in our Nation's history, and a budget, I might add, that not only includes significant increases in spending, but as well makes no effort to deal with the challenge of entitlements. I will just quote from the chairman of the Federal Reserve, Chairman Bernanke, who said, ``Without early
and meaningful action to address entitlements, the U.S. economy could be seriously weakened, with future generations bearing much of the cost.''
Now, the budget alternative that we have right now in front of us I would describe as the ugly or the reckless or the completely irresponsible, because not only does it include the biggest tax increase in our Nation's history and significant increases in spending; it runs up entitlement spending even further. And the part that I think is the most egregious, it actually calls the effort of our brave women and men fighting in Afghanistan, fighting in Iraq to establish a beacon of liberty in that dark area of the world, it calls that effort the single largest waste of taxpayers' money and the biggest current drain on the U.S. Treasury today.
I urge my colleagues to vote ``no'' on this alternative budget and vote ``yes'' on the Republican budget.
Mr. Chairman, I rise to express my objections to the budget put forward by the new majority in the Congress. Their budget proposes the largest tax increase in American history and it presses the accelerator on government spending.
What Washington has is not a revenue problem, but a spending problem. Revenues from taxes flowing into the U.S. Treasury have been flowing at record levels. Even when you factor in the $1 trillion dollar tax relief that was enacted by President Bush and a Republican Congress, the taxes that came into the Treasury in 2006 were exactly what the Congressional Budget Office projected they would be back in March 2000--nearly 9 months before President Bush proposed such tax relief. Clearly, Washington's problem is not a revenue problem. Washington has a spending problem.
Yet the Democrat budget plan fails to recognize this and instead they choose more taxes and more spending. They fail to extend important tax relief that has given Americans more control over their lives and businesses. It will put the breaks on the economic expansion that has put the United States in the enviable position of having the most vibrant and growing economy over the last 4 years. We have led the developed world in the creation of new jobs over the past 4 years-- creating 7.6 million new jobs for Americans.
Not only does the Democrat budget impose the largest tax increase in our Nation's history, but it also puts spending on an upward trajectory that will further imperil our children's future, saddling them with even more debt. Not only does the Democrat budget fail to address the growth of entitlement spending that is imperiling our children's future, but also it makes the problem worse by putting off needed changes and by increasing domestic discretionary spending at a rate that exceeds the rate of inflation.
With regard to tax increases, Democrats had a time during the House Budget Committee meeting to adopt amendments protecting the tax relief that Americans are enjoying today. The Democrats voted lock step against each and every amendment that would have protected the tax relief that Americans are currently enjoying and that is spurring our economy.
Don't take my word for it, just look at the Washington Post. They sum it up in today's paper:
``Democrats say they want to preserve key parts of Bush's
signature tax cuts, they project a surplus in 2012 only by
assuming that all of the cuts expire on schedule in 2010.''
``But the [Democrat budget] proposal, set for a vote today,
requires either that millions of middle-class families be hit
with higher taxes next spring or that somebody else pay an
extra $50 billion. . . . That stark choice is the result of
the inexorable expansion of the alternative minimum tax, a
parallel tax structure that adds $6,800, on average, to a
family's tax bill. Next month, an estimated 4.2 million
Americans will pay the tax. Next spring, that number will
balloon to 23 million unless Congress takes action.
Sadly, the Democrat's budget has no plan for addressing the Alternative Minimum Tax (AMT). Someone will face a $50 billion tax increase under the Democrats budget--we will have to see who is next on their hit list as they have already taken aim to repeal most all of the tax relief provided to Americans since 2001. Just what tax increases are already in store for Americans?
The Florida sales tax deduction is repealed in this budget. Floridians will be hit harder than most Americans by the Democrats tax plan, as Floridians will no longer be afforded the opportunity to deduct sales taxes. While resident's of states that have a state income tax can deduct those costs from their taxes, Floridians have no such deduction, so I was pleased when we were finally able to give Floridians equal treatment by allowing a sales tax deduction--about $650 dollars for a family of 5 earning $40,000 per year. The Democrat bill repeals this tax deduction.
Taxes on dividends will increase. This will hit senior citizens the hardest as they often rely on safe and secure investments to supplement their Social Security benefits in their golden years.
The child tax credit is cut in half falling from $1,000 per child to $500 per child as if the cost of raising and caring for children is going down.
Democrats resurrect the marriage tax penalty forcing married couples to pay more in taxes that those living together out of wedlock.
The death tax will be resurrected making it difficult for mom and pop businesses to be handed down to their children.
Marginal tax rates will increase for all Americans. The lowest wage income tax payers will see their tax bill increase by 50 percent, paying a 15 percent tax rate rather than a 10 percent tax rate.
Capital gains tax rates will be raised significantly. For any student of the recent economic growth in our Nation knows that the capital gains tax cuts have been a significant driver of economic growth in the U.S. over the past 4 years. And, the stimulative effect that the cut in capitals gains has had on our economy has actually resulted in more revenue flowing into the U.S. Treasury than would have flowed with out the cut in capital gains taxes. Raising these taxes, as the Democrats are doing will put the breaks on our economy and slow economic growth.
If there is any doubt about where the heart of the Democrat party in Congress lies on taxes and spending, only consider the votes that we just held. Over half of the Democrats in the House of Representatives just voted for the substitute budget offered by Representative Kilpatrick. That budget proposal raised taxes by more than $919 billion--more than 2 times the amount in the underlying Democrat budget. This is not really surprising given that the underlying Democrat budget is still $200 billion below the amount of increased taxes they will need to carry out their spending plans in their budget. So, Americans should be prepared, this proposed $400 billion budget that the Democrats are poised to approve today is just the opening shot. More tax hikes are in store.
I would like to briefly address the spending side of the Democrat budget. Their budget favors higher spending. They put both entitlement spending and spending through annual appropriations bills (known as discretionary spending) on a path to receive automatic increases each and every year.
Earlier this year, the Medicare Board of Trustees issued their report on the financial status of Medicare. They stated that Medicare will go bankrupt in a couple of years. Yet, rather that seeking to address this issue, the Democrats simply ignore the realities and pretend that this problem does not exist. It is irresponsible for the Democrats to simply stick their head in the sand and pretend that Medicare will not run out of money, but that is the path they have chosen--their budget does nothing to address this looming bankruptcy. I believe our seniors deserve better. If we simply allowed entitlement programs to grow at 4.1 percent a year rather than the 4.7 percent a year proposed in the Democrats budget, we could save Medicare and Social Security for future generations.
Their PAYGO rules continue not only to favor automatic increases in spending and higher taxes, but they also allow them to spend now and pay for the spending later. By spending now, they also increase the baseline budget so that it is easier to continue increased spending in future years.
The Democrat budget also eliminates the domestic emergency reserve fund contained in the current law, and provides no criteria for domestic emergency spending--which is exempt from budget disciplines. Absent a reserve fund, Democrats are destined to repeat in 2008, what they just did this month--designate another $28 billion in ``emergency spending'' bypassing all of the budgetary discipline rules. If there is any doubt about the Democrats' lack of budgetary discipline the fact that the majority of their caucus just voted for substitute budgets that increase taxes by between $950 and $717 billion. That is more than twice the tax increase in their base bill. And on the spending side, these alternative budgets would have increased spending by hundreds of billions of dollars more.
Another unrealistic assumption in the Democrat budget plan is their assumption that they will receive over $392.5 billion in new tax revenue that they will be able to use for spending and reducing the deficit by closing the mystical tax gap. Yet The Commissioner of the Internal Revenue Service has testified the IRS could collect, at best, about $20 billion of these taxes 5 years after implementing specific policies recommended in the President's budget.
The Democrats remove the firewall between defense and non-defense spending enabling them to cut the defense spending further and spend the money on other programs.
If there was ever any doubt about that Congressional Democrats are the party of ``Tax and Spend'' those doubts are put to bed today, as they have come out in spades for both.