Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous material on H. Con. Res. 71, currently under consideration. Mr. Chair, I yield myself such time as I…
Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks and include extraneous material on H. Con. Res. 71, currently under consideration.
Mr. Chair, I yield myself such time as I may consume.
Mr. Chairman, I rise today in support of H. Con. Res. 71, our budget, Building a Better America. Our budget takes real, tangible steps to balance the budget, build a stronger military, unlock tax reform, and support an economy that creates opportunity for all Americans.
In past years, our budget resolution was a vision document, but this year it is different. With the election of President Trump, our budget goes from being a vision document to being a governing document that outlines how we build a better America for our children and our grandchildren.
Today, we have the opportunity to fulfill our promises to the American people. Balancing the budget by 2027 is our top priority. Our national debt stands at $20 trillion, with $9 trillion added over just the last 8 years. For too long, both parties in Washington have failed to abide by a simple principle that all American families and small businesses do, that we must live within our means.
Balancing the budget requires us to make some tough decisions, but the consequences of inaction far outweigh any political risk we may face.
Unless we take bold steps to bring our excessive spending and debt under control, a sovereign debt crisis is the natural conclusion. Failure to take swift and decisive action is not only inexcusable, it is immoral.
The budget resolution before us takes real steps to put our country on a sound fiscal path that balances in 10 years and will allow us to start paying down our national debt.
Building a Better America also assumes bold reforms to strengthening programs that our seniors and our most vulnerable citizens rely on and ensure that these programs can continue to serve them for generations to come.
While our budget includes reforms to discretionary spending, we also strongly believe that mandatory spending must be addressed in this budget resolution and in budget resolutions to come.
Mandatory spending is already more than two-thirds of all of our Federal spending, and that number will only continue to grow, and that is why our committee felt strongly about addressing mandatory spending programs in this budget through reconciliation.
Our budget requires 11 authorizing committees to find a minimum of $203 billion in savings and reforms over the 10-year budget window with an expectation that the reforms will result in significantly higher savings.
This package of mandatory reforms is the largest since the 1990s, through reconciliation, and it is the first step to change the culture of Washington in our spending.
Our budget also promotes tax reform and regulatory reform to get the Federal Government out of the way and allow our free market economy to thrive. The larger the government, the less freedom individuals and businesses have to thrive, grow, hire, and innovate. The Obama economy left millions of Americans behind with over 14 million people leaving the labor workforce in just the last 8 years.
Through reconciliation, our budget specifically paves the way for progrowth tax reform that will reduce taxes for the middle class Americans and free up American businesses to grow and to hire. It will also simplify the Tax Code, allowing about 9 out of 10 Americans to file their taxes on a simple postcard.
Many of our friends across the aisle and in the media said that a 1.9 percent economic growth is the new normal and that we are doomed to continue the economic stagnation of the Obama years.
They have a pessimistic view of our Nation's ability to create jobs and to build our foundation of greater opportunity for all.
America has the greatest workers, the greatest innovators, and the entrepreneurial ethos to far surpass the economic growth of the last 8 years, if only the Federal Government would get out of the way.
In this budget, we put our trust in the American people. But a stronger economy is not enough; we must also strengthen our military.
The number one job of the Federal Government is to protect its citizens. Over the last 8 years, the weak foreign policy of President Obama has led to an increase in threats from all corners of the globe while the funding for our men and women in uniform has failed to keep pace. Building a Better America invests $621.5 billion in our military and $75 billion specifically for the global war on terrorism for fiscal year 2018. These resources will help our men and women in uniform complete the mission with which they have been tasked.
Building a Better America presents us with an opportunity to change the trajectory of our country forever. The election of President Trump was a signal to all of us that the American people will no longer accept the status quo.
This budget is also a very personal one for me. As I and my committee have gone through the long and arduous process of getting this budget to the floor, I have had to stop and think about not just what we are doing but where we are going.
I have a picture of my six grandchildren taped to the back of my voting card. I was a nurse for more than 40 years and still hold my license today. Government and public service was never an ambition of mine, but when I saw what was happening in my State and in this country, I couldn't sit back and do nothing.
Every time I put my voting card into a slot, I am reminded of why I left the career that I loved to join the political fray. It is for them. It is for my children and grandchildren and for yours as well.
I grew up in an America where a poor girl, whose parents' only ambition was for her to finish high school, could graduate from college, become a nurse, and eventually become a Member of the House of Representatives.
I grew up in an America that was a land of--that is a land of opportunity and was a land of opportunity then of strength and of compassion. But that America is slipping away from us. For too many young people in this country, the opportunity to live the American Dream is out of reach. A government that was supposed to be of, by, and for the people has left them behind.
Building a Better America requires a government that spends within its means, a military with the resources to complete the mission, an economy that creates the opportunity for all, and a Federal bureaucracy that respects the taxpayers.
It also requires an understanding that the greatness of America does not lie in the grand buildings and the stone pillars of Washington, D.C. The greatness of America lies in the spirit and the tenacity of the people.
We designed Building a Better America to put this vision into practice, to empower individuals to live their version of the American Dream. Future generations of Americans are counting on us, and failure is not an option.
I want to take this opportunity to thank the members of this committee for their hard work that they have done, for the months that we have worked tirelessly to come together and build a budget that reflects our principles.
It hasn't been easy, but producing a budget that puts our vision for fiscal sanity into practice will be worth it, and I thank each and every one of you for your hard work.
Mr. Speaker, I reserve the balance of my time.
Mr. Chair, I yield 2 minutes to the gentleman from Indiana (Mr. Rokita), the vice chair of the Budget Committee.
Mr. Chairman, I yield 4 minutes to the gentleman from Florida (Mr. Diaz-Balart), who is also a member of our committee and also of the Appropriations Committee.
Mr. Chair, I yield 2 minutes to the gentleman from Oklahoma (Mr. Cole), a member of the Budget Committee and also the Appropriations Committee.
Mr. Chair, I want to remind my colleagues from the other side of the aisle that, during the time of the previous administration, there was $9 trillion added to the debt, 1.9 percent economic growth, and that was the high of that period of time, and there were 14 million people who left the labor workforce. If their policies worked, we wouldn't see these kinds of statistics.
Mr. Chair, I yield 4 minutes to the gentleman from California (Mr. McClintock), a member of our Budget Committee.
Mr. Chairman, I yield 2 minutes to the distinguished gentleman from Ohio (Mr. Johnson), a member of our committee.
Mr. Chairman, I yield 2 minutes to the gentleman from Georgia (Mr. Allen).
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I want to remind my colleagues on the other side that we are talking about the budget. We are not talking about tax reform. We are going to have an opportunity to talk about that later.
Our budget does not assume that tax cuts pay for themselves, and our budget does not reflect that claim. Our budget includes a host of pro- growth economic policies, including comprehensive tax reform, as one of those, but regulatory reform; a reform in the improper payments; restoration of incentives for people to work and save and invest.
Most economists believe that this bundle of pro-growth tax policies will lead to a stronger economy than what we have under the current law. But we are talking about the budget here. So I would like for my colleagues on the other side of the aisle to speak about the budget, and we will talk about tax reform at another time.
Mr. Chairman, I yield 2\1/2\ minutes to the gentleman from Arkansas (Mr. Westerman), a distinguished member of the Budget Committee.
Mr. Chairman, I yield 2 minutes to the gentleman from South Carolina (Mr. Sanford), a member of our Budget Committee.
Mr. Chair, I yield an additional 30 seconds to the gentleman from South Carolina.
Mr. Chairman, I yield 2 minutes to the gentleman from Illinois (Mr. Roskam), who is the chairman of the Tax Policy Subcommittee.
Mr. Chairman, I yield 3 minutes to the gentleman from Texas (Mr. Arrington), a member of the Budget Committee.
Mr. Chairman, I yield 3 minutes to the gentleman from Michigan (Mr. Bergman), who is a member of the Budget Committee.
Mr. Chairman, I yield 2 minutes to the gentleman from Arkansas (Mr. Womack), my dear friend.
Mr. Chairman, I yield 3 minutes to the gentleman from Georgia (Mr. Ferguson), a member of the Budget Committee.
Mr. Chairman, I tell you what is cruel. That is doing the same thing over and over again and getting the same results. That is cruel. Especially when we look in our grandchildren's eyes and say: We are really sorry we didn't take 40-year-old programs and reform them so they could be better, so we could reduce the spending, we could give good services and reduce the spending. That is cruel when you don't do that.
Mr. Chairman, I yield 2 minutes to the gentleman from Minnesota (Mr. Lewis), a member of our Budget Committee.
Mr. Chairman, I yield 2 minutes to the gentleman from Michigan (Mr. Mitchell).
Mr. Chairman, I do want to talk about common sense just for a moment. Common sense is if our other OECD countries have an average corporate rate of 18 to 20 percent and ours is between 35 and 39, and we have companies that now decide to go overseas. It seems to me to be common sense to at least be equal to what other countries are doing.
Mr. Chairman, I yield 3 minutes to the gentleman from Pennsylvania (Mr. Smucker), a member of our Budget Committee.
Mr. Chairman, I yield 2 minutes to the gentleman from South Carolina (Mr. Norman).
Mr. Chairman, I yield 3 minutes to the gentleman from Illinois (Mr. Shimkus).
(Mr. SHIMKUS asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield 3 minutes to the gentleman from Texas (Mr. Brady), the chairman of the Ways and Means Committee.
Mr. Chairman, I yield 2 minutes to the gentleman from New Mexico (Mr. Pearce).
Mr. Chairman, I yield 3 minutes to the gentleman from Alaska (Mr. Young).
Mr. Chairman, I reserve the balance of my time so we can hear from the Joint Economic Committee.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I do want to just begin this next section by making a brief comment about my good friend from Kentucky, who has been using some information off of Forbes as he responds to our speakers. I just want to say, I went out to look at Forbes to see what was on Forbes while we were on this brief intermission, and I found this article that was in Forbes just the day before yesterday that does say that the GOP tax framework is a pay raise for middle class families.
I encourage people to take a look at this. It actually does some scenarios for what we know at this point in time. However, I do want to say that what has been put out is a framework. It doesn't really have enough details to give too much on these scenarios, because there are some very important pieces that are missing.
Guessing on these key points really doesn't allow us to do a proper analysis. Things like the brackets have not been definitively defined, and neither have the income thresholds or the enhanced child credit.
I think it is a little bit disingenuous to think that is really where we should be using those numbers right at this point in time to give a definitive scenario. I did want to say that that would be a good thing for people to look at if they would like to get a brief idea.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I include in the Record a letter that has been signed by 242 agencies and think tanks supporting this budget.
Among those who have signed this letter are the American Bankers Association, American Farm Bureau Federation, Americans for Tax Reform, Business Roundtable, Financial Services Forum, Manufactured Housing Institute, National Association of Manufacturers, the National Black Chamber of Commerce, National Grocers Association, National Retail Federation, Tennessee Chamber of Commerce & Industry, The Kentucky Chamber, and U.S. Chamber of Commerce, among many others.
September 28, 2017.
To The Members of the United States Congress: We urge
Congress to expeditiously pass a budget resolution with
reconciliation instructions so that the promise of tax reform
can be made a reality.
It has been 31 years since Congress last reformed the tax
code. Since then, the code has become an anchor weighing down
the economy, job creation, and wage growth for American
families.
This Congress has a once-in-a-generation opportunity to fix
the problem. Over the past several years, tremendous work has
been done to prepare for this moment. In the 113th Congress
the Ways and Means Committee conducted a comprehensive look
at tax reform. Last year House Republicans released a
Blueprint for reform. During the last Congress, the Senate
Finance Committee convened bi-partisan working groups that
tackled all the major aspects of reform.
President Trump has outlined his goals for reform, and the
``Group of Six''--consisting of members from the House,
Senate, and Administration--has presented a framework to
guide the drafting and markup of legislation in the Ways and
Means and Finance Committees.
While much work remains to be done, we believe Congress is
well-positioned to move forward with comprehensive, pro-
growth tax reform.
The single-most important next step is for Congress to
adopt a budget resolution with reconciliation instructions
that will permit tax reform to move forward without the
threat of a filibuster.
Just like Members of Congress, each of our organizations
will continue to advocate for specific priorities within tax
reform as the relevant committees and ultimately the full
House and Senate consider tax reform legislation.
But failing to pass a budget resolution now may mean that
tax reform never moves forward. That outcome is unacceptable
to all of us and ought to be unacceptable to every Member of
Congress who has advocated for reform.
Sincerely,
Aerospace Industries Association, African American Chamber
of Commerce of New Jersey, Air Conditioning Contractors of
America (ACCA), Alabama Retail Association, Alaska Chamber,
Allen Fairview Chamber of Commerce (TX), Alliance for
Competitive Taxation (ACT), American Bakers Association,
American Bankers Association, American Council of Engineering
Companies, American Exploration & Production Council,
American Farm Bureau Federation, American Forest & Paper
Association, American Foundry Society, American Gas
Association, American Hotel & Lodging Association, American
International Automobile Dealers Association, American Iron
and Steel Institute, American Made Coalition, American
Petroleum Institute (API).
American Supply Association, Americans for Tax Reform, Ames
Chamber of Commerce (IA), Argentum, Arizona Chamber of
Commerce and Industry, Asian American Hotel Owners
Association, Asphalt Roofing Manufacturers Association,
Associated Builders and Contractors, Associated Equipment
Distributors, Associated General Contractors of America,
Associated Wire Rope Fabricators, Association for Hose and
Accessories Distribution (NAHAD), Association of American
Railroads, Association of Equipment Manufacturers,
Association of Washington Business, Auto Care Association,
Baton Rouge Area Chamber (LA), Battle Creek Area Chamber of
Commerce (MI), Boca Raton Chamber of Commerce (FL), Brainerd
Lakes Chamber of Commerce (MN).
Bristol County Chamber of Commerce (MA), Buckeye Valley
Chamber (AZ), Buffalo Niagara Partnership (NY), Business
Council of Alabama, Business Council of New York State,
Business Roundtable, Cedar Rapids Metro Economic Alliance
(IA), Cellular Telecommunications and Internet Association
(CTIA), Central Louisiana Regional Chamber of Commerce,
Chambers of Commerce Alliance of Ventura & Santa Barbara
Counties (CA), Chester County Chamber of Business & Industry
(PA), Coeur d'Alene Chamber of Commerce (ID), Colorado
Association of Commerce and Industry, Colorado Retail
Association, Consumer Bankers Association, Convenience
Distribution Association, Coral Gables Chamber of Commerce
(FL), Council for Citizens Against Government Waste,
Covington County Chamber of Commerce (MS), Crowley Chamber of
Commerce (LA).
Davis Chamber of Commerce (UT), Dayton Area Chamber of
Commerce (OH), Eatonton-Putnam Chamber of Commerce (GA),
Edison Electric Institute (EEI), Edmond Area Chamber of
Commerce (OK), Edwardsville/Glen Carbon Chamber of Commerce
(IL), Energy Equipment and Infrastructure Alliance,
Entertainment Software Association, Financial Services Forum,
Florida Chamber of Commerce, Florida Retail Federation, Food
Marketing Institute, Fox Cities Chamber of Commerce (WI), Gas
and Welding Distributors Association, Georgia Chamber of
Commerce, Georgia Retail Federation, Glenwood Springs Chamber
Resort Association & Film Commission (CO), Granbury Chamber
of Commerce (TX).
Grand Rapids Area Chamber of Commerce (MI), Greater
Bakersfield Chamber (CA), Greater Cedar Valley Alliance &
Chamber (IA), Greater Coachella Valley Chamber of Commerce
(CA), Greater El Paso Chamber of Commerce (TX), Greater
Flagstaff Chamber of Commerce (AZ), Greater Ketchikan Chamber
of Commerce (AK), Greater Lehigh Valley Chamber of Commerce
(PA), Greater Louisville Inc. (KY), Greater North Dakota
Chamber, Greater Oklahoma City Chamber (OK), Greater Phoenix
Chamber of Commerce (AZ), Greater Pittsburgh Chamber of
Commerce (PA), Greater Shreveport Chamber of Commerce (LA),
Greater Springfield Chamber of Commerce (VA), Greater Toms
River Chamber of Commerce (NJ), Greater Yakima Chamber of
Commerce (WA), Grocery Manufacturers Association, Hastings
Area Chamber of Commerce (NE), Heating, Air-conditioning &
Refrigeration Distributors International (HARDI), Henderson
Chamber of Commerce (NV).
Hilliard Area Chamber of Commerce (OH), Hillsboro Chamber
of Commerce (OR), Home Furnishings Association, Illinois
Chamber of Commerce, Independent Insurance Agents & Brokers
of America, Independent Office Products & Furniture Dealers
Alliance, Independent Petroleum Association of America,
Indiana Chamber of Commerce, International Foodservice
Distributors Association, International Warehouse Logistics
Association, Iowa Chamber Alliance, Irrigation Association,
ISSA, The Worldwide Cleaning Industry Association, Jefferson
Chamber of Commerce (LA), Jenkins County Chamber of Commerce
(GA), Job Creators Network, Johnson City/Jonesborough/
Washington County TN Chamber, Joliet Region Chamber of
Commerce & Industry (MO), Kalispell Chamber of Commerce (MT),
Kansas Chamber of Commerce, Kingsport Chamber (TN), Kyndle
(Henderson County KY Chamber of Commerce).
Lake Havasu Area Chamber of Commerce (AZ), Lancaster
Chamber (PA), Las Vegas Metro Chamber of Commerce (NV),
Lemont Chamber of Commerce (IL), Lima Allen County Chamber of
Commerce (OH), Little Rock Regional Chamber (AR), Long Beach
Area Chamber of Commerce (CA), Louisiana Association of
Business and Industry, Manufactured Housing Institute, McLean
County Chamber of Commerce (IL), Metals Service Center
Institute, Metro South Chamber of Commerce (MA), Metropolitan
Milwaukee Association of Commerce (WI), Michigan Retailers
Association, Minnesota Retailers Association, Missouri
Chamber of Commerce and Industry, Monroe Chamber of Commerce
(LA), Montgomery Area Chamber of Commerce (AL), Motor &
Equipment Manufacturers Association, Myrtle Beach Area
Chamber of Commerce (SC), National Association of Chemical
Distributors, National Association of Manufacturers, National
Association of Mutual Insurance Companies, National
Association of Professional Employer Organizations.
National Association of Real Estate Investment Trusts,
National Association of the Remodeling Industry, National
Association of Wholesaler-Distributors, National Beer
Wholesalers Association, National Black Chamber of Commerce,
National Club Association, National Council of Chain
Restaurants, National Electrical Contractors Association
(NECA), National Grocers Association, National Lumber and
Building Material Dealers Association, National Marine
Manufacturers Association, National Office Products Alliance,
National Ready Mixed Concrete Association, National
Restaurant Association, National Retail Federation, National
Roofing Contractors Association, National Stone, Sand and
Gravel Association, Nebraska Chamber of Commerce & Industry,
Nebraska Retail Federation, NFIB--National Federation of
Independent Business.
North Carolina Chamber, North Country Chamber of Commerce
(NY), North Dakota Retail Association, North Kingstown
Chamber of Commerce (RI), North Myrtle Beach Chamber of
Commerce (SC), North Orange County Chamber (CA), North San
Antonio Chamber (TX), Office Furniture Dealers Alliance, Ohio
Chamber of Commerce, Ohio
Council of Retail Merchants, Oklahoma Retail Merchants
Association, Oshkosh Chamber of Commerce (WI), Oxnard Chamber
of Commerce (CA), PA Chamber of Business and Industry,
Pennsylvania Retailers Association, Plano Chamber of Commerce
(TX), Portland Cement Association, Prattville Area Chamber of
Commerce (AL), Precious Metals Association of North America,
Professional Beauty Association.
Reforming America's Taxes Equitability (RATE) Coalition,
Reno+Sparks Chamber of Commerce (NV), Retail Association of
Nevada, Retail Association of New Mexico, Retail Council of
New York State, Retail Industry Leaders Association,
Retailers Association of Massachusetts, Richardson Chamber of
Commerce (TX), River Heights Chamber of Commerce (MN), S
Corporation Association, Sacramento Metro Chamber of Commerce
(CA), Salt Lake Chamber (UT), San Diego Regional Chamber of
Commerce (CA), San Gabriel Valley Economic Partnership (CA),
Schuylkill Chamber of Commerce (PA), Securities Industry and
Financial Markets Association, Service Station Dealers of
America and Allied Trades (SSDA-AT), Silver City Grant County
Chamber of Commerce (NM), South Summit Chamber of Commerce
(OH), Southeastern Lumber Manufacturers Association.
Southwest Indiana Chamber, St. Cloud Area Chamber of
Commerce (MN), St. Joseph Chamber of Commerce, St. Tammany
West Chamber of Commerce, State Chamber of Oklahoma, Steel
Manufacturers Association, Tampa Bay Beaches Chamber of
Commerce (FL), Tennessee Chamber of Commerce & Industry,
Texas Retailers Association, The Chamber of Commerce of the
Santa Barbara Region (CA), The Chamber of Medford/Jackson
County (OR), The Chamber Grand Forks/East Grand Forks (ND),
The Fertilizer Institute, The Financial Services Roundtable,
The Kentucky Chamber, The Longview Chamber of Commerce (TX),
The Ohio Society of CPAs, The Real Estate Roundtable, Tile
Roofing Institute, Tioga County Chamber of Commerce (NY).
Tire Industry Association (TIA), Truck Renting and Leasing
Association, Tucson Metro Chamber (AZ), Tulsa Regional
Chamber (OK), U.S. Chamber of Commerce, Union County Chamber
of Commerce, United Corpus Christi Chamber of Commerce (TX),
USTelecom--The Broadband Association, Utah Food Industry
Association, Utah Retail Merchants Association, Virginia
Chamber of Commerce, Virginia Small Business Partnership,
West Baton Rouge Chamber of Commerce (LA), Wholesalers
Association of the Northeast (WANE), Window and Door
Manufacturers Association, Wisconsin Manufacturers and
Commerce, WMDA/CAR Service Station and Automotive Repair
Association.
There are 242 different entities that signed this letter to say that passing a budget is what we should be doing and that would lead us to tax reforms.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I include in the Record a letter from the Compact for a Balanced Budget Commission, and I will read a portion of this letter. They say: ``Dear Chairman Black: We have reviewed the text of the budget resolution reported by your committee, H. Con. Res. 71, and write to offer our support. That rarest of political outcomes-- sound policy that represents a win-win scenario for normally divergent factions--is possible as the budget process moves forward.
``Our Nation is facing a fiscal crisis. It is essential that the Federal budget returns to balance within the 10-year budget period because runaway Federal debt is not political or partisan--it is an economic, generational, and civil rights issue. We commend you and your committee for reporting a resolution that balances within the budget period; its adoption is very much in the national interest.''
And again, this comes from The Compact Commission, Compact for a Balanced Budget.
The Compact Commission, c/o Compact for America
Educational Foundation, Inc.,
Houston, TX, August 8, 2017.
Re 2018 House Budget Resolution and the Compact for a
Balanced Budget.
Hon. Diane Black,
Chairman, House Budget Committee, House of Representatives,
Washington, DC.
Dear Chairman Black: We have reviewed the text of the
budget resolution reported by your Committee (House
Concurrent Resolution 71) and write to offer our support.
That rarest of political outcomes--sound policy that
represents a win-win scenario for normally divergent
factions--is possible as the budget process moves forward.
Our nation is facing a fiscal crisis. It is essential that
the federal budget returns to balance within the ten-year
budget period because runaway federal debt is not political
or partisan--it is an economic, generational and civil-rights
issue. We commend you and your Committee for reporting a
resolution that balances within the budget period; its
adoption is very much in the national interest.
We also commend the Committee for including Section 501 in
the resolution, which endorses adding a balanced budget
requirement to the Constitution.
Section 501 identifies the Compact for a Balanced Budget,
which we represent on behalf of current and future member
states. We believe the most practical, prudent enforcement
mechanism is the state-of-the-art balanced budget amendment
(BBA) being proposed by the Compact. This state-of-the-art
BBA has been specifically designed to overcome concerns
expressed in 40 years of congressional hearings that have
considered how a BBA should be drafted. Such concerns may
have prevented prior BBAs from being proposed.
To advance the policy prescription in Section 501 of the
budget resolution in the House, we recommend: updating this
section to reflect that the concurrent resolution to
effectuate the Compact (House Concurrent Resolution 73) was
introduced on July 26, 2017; and incorporating the language
of House Concurrent Resolution 73 into Section 501. This
could be done as one of several amendments you are probably
already planning to bring up during floor consideration as
the manager's package, and requires only a majority vote as
opposed to the two-thirds required for balanced budget
amendment proposals made by members of Congress.
Taking these steps establishes a strong enforcement
mechanism, sustaining the budget resolution following its
adoption. It would also strengthen the appeal of the budget
resolution to fiscal conservatives in the House and taking
these steps prior to the consideration of legislation to
raise the debt ceiling should expedite approval of that
legislation.
Supermajorities of Americans have demanded a balanced
budget for decades. Our nation's debt threatens future
generations to default or austerity, but we believe there's a
chance here for a third option: principled leadership on the
matter of debt and spending.
We hope you and your Committee members will agree that
there is a path here which acknowledges the need for long-
term fiscal
sanity while also meeting shorter-term political and policy
needs.
Regards,
Chair Mead Treadwell,
Alaska Commissioner.
Vice Chair Paulate Rakestraw,
Georgia Commissioner.
Greg Snowden,
Mississippi Commissioner.
Mr. Chairman, I want to just bounce off of that and take a look at the chart that we have here. When we take a look at interest--and somehow we don't always talk that much about interest here. We talk about borrowing money and raising our debt ceiling continually. I have been here now for 6\1/2\ years, and the conversation is about raising that debt ceiling so that we can pay for our debt, but there comes interest on that.
Just as when we go to a bank and we borrow money, we have to pay interest on that. I remember years ago, when I bought my first house, we were at a period of time when President Carter was the President and the interest rates were outrageous, and our interest rate on our house at that time, when we purchased it as a young married couple, was, I think, somewhere between 14 and 16 percent.
Interest rates now are very much more reasonable for young couples purchasing. And so I want to turn our attention to this chart here to take a look at the outlays in 2027 under the CBO baseline.
If we continue down this path that we are going in, without taking a look at our mandatory spending, the amount of money that we borrow, and the debt that we pile up with an interest to it, just what will that look like?
I think if we look at our own household and we would say that our interest that we are paying on the credit card or whatever, or the car interest or the House mortgage, if it were more than all of the other things like the food and maybe the education for our children and buying books and pencils and things that they need for school, we would be looking at the way in which we were managing our household income and saying, wow, that is not something we want to keep doing. We are going to have to get on some kind of a budget plan and reverse the trajectory of where we would be going.
So here we are. At the end of the period of 2027, if we look at 17 years down the road and we don't do anything about the kind of mandatory spending, which is two-thirds of our budget, currently, and continues to grow, here is what happens:
We see $768 billion being spent on interest alone.
We see the next one down, the defense, at $741 billion. We would actually be paying more in interest than we were in the security of our Nation and supporting our men and women who serve in the military, and all of the supplies and the necessary equipment that it takes to protect them as they protect us.
Look at what happens with Medicaid. We will be spending less on Medicaid that is for people who are the blind, the disabled, the elderly, the children, the pregnant mothers.
We talk about wanting to put our money and our values where we see the values really belong. Is this really where we want our values to be in the money that we spend, $768 billion in interest compared to what we are spending on our military, what we are spending on our Medicaid?
Look at our veterans, our veterans that we talk about how much we honor them: $248 billion as opposed to $768 billion in interest.
Again, we must question where we are going and if this is the right direction. Is this the direction that we can all just raise our hand up and say, yes, we are making good decisions for the future of our country? Because look at where the interest is compared to the other programs that we both, Republicans and Democrats, have said are so important to us.
Over and over again, we have had colleagues on both sides of the aisle go and speak about the importance of what our values are. Our budget is a vision of what our values are.
Transportation, and I have heard more and more times on both sides of the aisle talking about infrastructure, how important that is for our Nation. Look at what our transportation and our infrastructure will be. I don't know that we want to spend only $110 billion on that and $768 billion on interest. Think of how many roads we could build, how many bridges we could repair if we reverse this trajectory.
Then, finally, at the bottom here is science-based technology. We all want to be competitive with those around the world to make sure that we are spending the money where we need to spend the money to stay in front of these other nations with our science and our space and our technology.
I want to recommend here that there are only two other programs, Social Security and Medicare, that exceed that net interest. So we will say Social Security, Medicare, and then our net interest; and from there, everything else that we say, both the Republicans and the Democrats, are so important, that we say are our values, are going to be underneath the interest. I don't think that is really where we want to go.
I have to think, my oldest grandchild right now is 19 years old, soon to turn 20, when he is 30 years old, he might say to me: Mimi, what were you doing when you were in Congress? What were you doing to help us, because now we are paying more in interest than we are all of these other programs that we contend to be so important to us?
So these are difficult decisions to make, I will acknowledge that. But I will also say to you, as someone who--I consider myself to be a policy wonk. As I look at these various programs, I say there is nothing that we are doing in my life that I did 40 years ago that I am doing exactly the same. So if a program has been around for 40 years, should we not want to say maybe we can reform it? Not necessarily cut, but, in the reforming, you may find a way to decrease the spending that you are doing in that program.
Can't we all lock arms, Democrats and Republicans, and acknowledge that there are some decisions that have to be made with programs that have been there for a very long time?
Can we not acknowledge that there are some programs that perhaps have fraud, waste, and abuse that we can take care of, take that money and use it in these places where we really say our values lie?
So I would say that, as we talk about this budget, I am very proud of what we have done in this budget, in the cuts or, as I say, reforms in those programs that would result in $203 billion worth of savings over a 10-year period, that these are programs that we gave the committees of jurisdiction an opportunity to look within their jurisdiction and to make those decisions and do the homework. It is your jurisdiction; it is not mine. We gave them recommendations and suggestions, but it is their jurisdiction.
Let them evaluate where it is that there are programs that can have new and creative ideas, things that can save us money, not necessarily using the word ``cut,'' but in savings. Yes, you may have some cuts that are done, but these are good cuts. These are things that you have spent a lot of time thinking about.
That is really where we want to go. That is what this budget does is it says: Open up your minds. Think differently. Let's not do things the same old way and keep putting the same old programs out there that maybe aren't working.
And you know what? Maybe they are not even working for the people that we give them to. Maybe they are not working for them, because work is dignity.
When we say that someone who is able-bodied and without any dependents should be at work, that is not cruel. Do you know what that is? That is dignity. When people go to work, it is a dignified activity.
I always say, after I ask you what your name is, and we all do it, we say: What do you do? And when someone cannot tell you what they do, they don't feel dignified.
Look, I don't want to be cruel to people who are disabled, people who are having a really tough time and have other circumstances, but we should acknowledge that there is dignity in work; and when we can give people an opportunity to have that dignity, we should be willing to stand up and do that.
Mr. Chair, I reserve the balance of my time.
Mr. Chairman, I yield myself the balance of my time.
I likewise, would like to just say that the ranking member, Mr. Yarmuth, has just been wonderful to work with, and we may have differences of opinion, but we can do it in a very Southern hospitality way. I just so much appreciate his demeanor, his leadership on the committee, the way he honors the members of the committee, both Democrats and Republicans, and it has just been a joy to work with him. I am going to miss working with him and being able to have lively debate, which is good for this body and it is good for America.
I want to also thank all the members who participated in the debate today, both the Democrats and the Republicans. This is what our democracy is about, being able to voice our opinions and at the end of the day being able to come to a conclusion after that debate. I look forward to continuing discussion and voting on the final passage tomorrow.
As we finish up, I also want to thank our staff for their hard work, and there are many of them, so I am not going to read all of them to you. I do want to mention some of those who are the leaders of the House Budget Committee staff and have just been great to work with.
Rick May, who is the staff director; Jenna Spealman; Andy Morton; Tim Flynn; Mary, who has been here with me at my side the entire time. What would I do without having somebody to pass papers to us? So Mary has been great. Jim Bates, and I am going to leave it at that because I am going to get in trouble if I don't announce all of them.
The staff has just been tremendous to work with, many hours, weekends, and, indeed, even holidays that they have been here helping to gather the information both for the Budget Committee hearings and then, also, for this today.
Mr. Chairman, I look forward to a more lively debate tomorrow. I include in the Record the names of the staff of the Budget Committee.
House Budget Committee Majority Staff
Rick May
Jenna Spealman
Andy Morton
Tim Flynn
Patrick Louis Knudsen
Benjamin Gardenhour
Gary Haglund
Chris Hartline
Sarah Corley
Sage Peterson
Jim Bates
Mary Popadiuk
Jonathan Romito
Elise Anderson
Policy Advisors
Jenna Spealman
Steve Gonzalez
Robert Cogan
Eric Davis
Robert Yeakel
Ellen Johnson
Andy Morton
Emily Goff
Brad Watson
Brittany Madni
Steve Waskiewicz
Alex Stoddard
Joe Guillen
Personal Staff (Representative Diane Black, Tennessee, 6th District)
Teresa Koeberlein
Dean Thompson
Heather Douglass
Jon Toomey
Ace Burch
Katie Mitchell
Hillary Lassiter
Zachary Royster
Greg Dowel
Nicholas Ayers
Mr. Chair, I yield back the balance of my time.