Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, with respect to the Estrada nomination, this Senator has no reason to vote to confirm and everyone should understand up front that I…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, with respect to the Estrada nomination, this Senator has no reason to vote to confirm and everyone should understand up front that I have treated my responsibility with serious purpose, always giving the benefit of the doubt to the President. I was one of the two Democrats who voted for Robert Bork, and I am particularly proud that I did vote for him. Robert Bork was an outstanding jurist. He answered the questions.
So when these folks come up and apply for a job, they ought to treat the advise and consent responsibility that we have as Senators with respect. They should not go to the committee and give the rope-a-dope runaround and then come back later and have the White House calling Senators saying: Would you like to see the gentleman?
I have heard the whining cry again and again that this is all unconstitutional. I wish they would have been present when Justice Fortas, the Associate Justice for the Supreme Court, was nominated by President Lyndon Johnson to become the Chief Justice. My senior colleague at the time, the distinguished Senator Thurmond, led the filibuster. There was extended debate, and please note it in the Record that they had a cloture vote. They could not get cloture and--read it in the Record--they then withdrew the nomination.
The leadership in the Senate should get on with the important business of this Government at a time of war, at a time of dreadful deficit spending, at a time when they will not even pay for the war. I can say now that every President, every Congress, has paid for wars, and I am embarrassed to be a Senator at this particular time to go home to my state and report that we are not going to pay for this war. It was Abraham Lincoln, in order to pay for the Civil War, who put a tax on dividends. And now this President says the need of the hour is to take the tax off dividends.
During World War I we had a marginal income tax rate that went up to 77 percent. In World War II, it was 79 percent to 94 percent. In the Korean War, it was 91 percent, and the country sustained. The country did not break up. The country did not go poor. The country was stimulated by a sense of responsibility. This Mickey Mouse idea that dividends are going to stimulate the economy--come on. In the Vietnam War, we had a marginal tax rate up to 77 percent. But we have the unmitigated gall to now say we need to stimulate the economy with a dividend tax cut, with doing away with the marriage penalty, and with eliminating the estate tax.
It is quite obvious what is on course is tax reform. There is no sense of responsibility for this position. It helped when, with Senator Muskie, we passed in 1973 and it was finally signed in 1974 the Budget Committee process. I have served on that Budget Committee for the past 25, 26 years, including as Chairman. I am the author, along with Senator Gramm and Senator Rudman, of Gramm-Rudman-Hollings when President Reagan said we were not going to have to run deficits anymore. We had truth in budgeting.
On Saturday, we got the truth from the Congressional Budget Office. It projected the pending deficit for the fiscal year which we are in now, 2003, on page 21, at the back of the document would be $469 billion. The distinguished Presiding Officer knows this by heart because he has served on the Budget Committee on the House side. This is important because that is the actual debt increase, that is the actual deficit.
I ask unanimous consent to have printed in the Record the lead editorial from today's Washington Post, ``Digging the Budget Hole.''
Everyone can read the entire article, but let me read the sentence: ``The deficit numbers above are cushioned by including $2.6 trillion from the Social Security trust fund.'' I have to read that again: ``The deficit numbers above are cushioned by including $2.6 trillion from the Social Security trust fund.''
The following sentence: ``In other words, if that money were placed out of reach, the deficit would be $4.4 trillion through 2013.'' Now, that is just the Social Security trust fund. The Social Security trust fund is not the only one being expended. There is the Medicare trust fund. They take the surpluses, and they are going to say we have to do something on Medicare, but they have been spending the moneys on anything and everything other than Medicare. The same can be said with the highway trust funds, the airport trust funds, and the military and public service retirees. We have all kinds of trust funds, and if they were all included, rather than the $4.4 trillion, it would be $5.7 trillion.
This Enron-like accounting operation is right in the President's budget book. If you look at page 1--and I hold within my hand the budget for the fiscal year 2004 that was just released last month--it says: ``My administration firmly believes in controlling the deficit and reducing it as the economy strengthens and our national security interests are met. Compared to the overall Federal budget and the $10.5 trillion national economy, our budget cap is small by historical standards.''
That is on page 1. Now, Kenny Boy Lay, when he put out his Enron corporate report to the stockholders, that
is exactly the way he would start off. Make the stockholders feel good. Make the taxpayers feel good. Make the public servants feel responsible. But where is the truth? You will have to go all the way through to page 332.
I ask unanimous consent that page 332, by itself, be printed in the Record.
Mr. President, you will see the total gross Federal debt whereby it goes from $6.198 trillion at the end of last fiscal year to, as projected at the end of this fiscal year, $6.752 trillion, for a deficit of $554 billion. And they are running around here, in this newspaper, continuing to say $300 billion deficits. We already are projecting, without the cost of Iraq--this does not include the cost of going to war in Iraq--a $554 billion deficit. And if you look at next year, the 2004 debt is increased from $6.752 trillion to $7.321 trillion, for a deficit of $569 billion for next year.
On Wednesday, at the Budget Committee, the fix will be in. We used to have some moderates on the Budget Committee, but the leadership took the moderates off, so it will be bam-bam.
On Wednesday the Committee will have a conference and then on Thursday we will have amendments. It will be the Democrats who will have amendments because the Republicans are a fixed jury. They are a fixed jury, and they are not going to go along with any amendments, and they are going along with the President's budget and the President's tax cut because that is the makeup of the Republicans when they got rid of the moderates.
Before that we at least had a chance to talk and discuss with each other, but now the budget process that we instituted back in 1974 is pure sham. Their goal is to get those reconciliation instructions that by majority vote they will have. Then by majority vote they can pass all these tax cuts and everything else that they have, under limited time. You can't have extended debate. So the fix is on--unfortunately for the country.
According to the Committee for Economic Development, ``The first step in climbing out of a hole is to stop digging. We cannot afford economic policy decisions today that further raise deficits tomorrow.''
Congress ought to put down that shovel. That is the most important thing we have going, even more important than war. I think we can win the war. I don't think we are going to win this. This is terrible.
I ask unanimous consent to have printed in the Record the ``Hollings' Budget Realities'' chart.
What will happen when we have the budget debate is they will have leadership amendments. They will have something on prescription drugs and they will have something on some other thing, whatever it is. Then the real important ones you submit for 2 minutes. You describe your amendment and everybody votes. Senators will not get the opportunity to see this, so I hope they will all get this out of the Congressional Record.
When you talk about digging that hole, let me show you the hole we are really in. If, we have a deficit of $554 billion for this year, and last year we had a $428 billion deficit, and next year they project a $569 billion deficit--that, added together, is $1.5 trillion. That is $1.5 trillion of stimulus. We don't need a little dividend cut, or a little marriage penalty elimination to stimulate the economy. What we need is money and certainly not tax cuts, certainly not digging the hole. You are in a dickens of a hole if you are already in $1.5 trillion in deficit without the cost of Iraq.
For my colleagues, let me try to put this in perspective. If you add up all the deficits from Harry Truman in 1945 to Gerald Ford in 1975-- if you take the 30 years cumulative of all deficits, which include the cost of World War II, the cost of Korea, the cost of Vietnam--it adds up to $358 billion. We are already talking, not $300 some billion over 30 years, but we are talking about $554 billion this year without the cost of Iraq.
You are in real trouble when you have to estimate that and you see the interest cost now. Lyndon Johnson was the last President to balance the budget. In 1968-1969 he had a surplus. That is the last time. I was here.
In fact, we met over on the House side, the distinguished chair-- George Mahon was chairman of the Appropriations Committee. We didn't have a Budget Committee. I am almost convinced that we ought to go back to that because there was a conscience. This whole budget process has now become a charade.
But George Mahon said, you know the President is very, very sensitive about this guns and butter. We have to do something else, a little bit more if we are really going to balance it. He said, Call over to Marvin Watson and ask the President if we can cut another $5 billion, and we cut another $5 billion. If I am not mistaken, the budget at that time for guns, butter, the war in Vietnam was $178 billion.
Now we have a budget of almost $2.1 trillion. We pay $324 billion in interest per year--it is estimated that when the interest rates go back up, it will be back up to a billion a day in interest.
The first thing the Government does every morning at 8 when the banks open is borrow another $1 billion, every morning except Sunday this year. They are going to go down every day, including Saturday, including holidays. They will go down and borrow and add it to the debt. That is why we are running this $554 billion deficit.
But these interest costs are just saddling us, when we are paying over $300-some billion in interest, as much as the defense budget, and all just waste just because we didn't pay our way. We used to pay our way. We used to pay for the war. Yes, tell my friend Robert Novak when he constantly says we are going to pay for the war by borrowing just like we did for guns and butter in Vietnam--no, no. President Lyndon Johnson paid and balanced the budget then.
You have seen exactly what the score is with respect to digging a hole. I want to get right into the point of this so-called tax cut because nobody was better at stopping digging the hole and recognizing it, of course, than Mr. David Stockman. I had just come off the chairmanship of the Budget Committee, and I went over with Mr. Alan Greenspan to the Blair House and briefed President Reagan in December of 1980. I will never forget, the President said:
Whoops, I had promised to balance the budget in 1 year.
From what you gentlemen are telling me it is going to take 3
years.
That is when we went from a 1-year budget to 3 years. In 1981, I opposed those tax cuts, Reaganomics, what George Bush senior called voodoo. I opposed voodoo I. I opposed the increase in spending at that time because we all had a sense of responsibility. In order to stick it out and be able to serve around here, you have to go with the flow like the traffic in downtown Hanoi.
Listen to this, from page 342 of ``The Triumph of Politics'':
The President had no choice but to repeal or substantially
dilute the tax cut that would have gone far toward restoring
the stability of the strongest capitalist economy in the
world. Ronald Reagan chose not to be a leader but a
politician. His obstinacy was destined to keep America's
economy hostage to the errors of his advisers for a long,
long time.
So under President Reagan, we had an $85.7 billion deficit in 1981, and it went up to $142.5 billion in 1982. That is when he was cutting taxes.
The next thing you know it was up to $234 billion and he ended up with a $252 billion deficit by his eighth year in office.
Then President George Herbert Walker Bush came in and he ended up with a $403 billion deficit. We never had over $100 billion in deficit until voodoo I came along.
Let me talk about voodoo II. I watched that because I have been in the budget lead now for quite some time. I come from a State where in order to be elected governor you have to promise to pay the bill. But in that same State, in order to be elected to the Senate you have to promise not to pay the bill. I am against the government of let us cut taxes. So I know whereof I speak. I have experience in the budget.
What happened when Governor Bush in September of 2000 said on the campaign trail said he was going to cut taxes. I sort of shook my head and smiled. I said, Well, that is campaign talk. That is not going to happen for the simple reason that we can't afford to be cutting taxes. But I sort of sobered up on the Friday after the election--on Tuesday in November 2000.
That is when Vice President-elect Cheney said, Yes, that is what we are going to do. When Vice President-elect Cheney said we were going to cut taxes, there was no recession yet.
Please listen. Harken all. Lend me your ears, for I can tell you what really started that recession in 2001. It was when Alan Greenspan, the chairman of the Federal Reserve, came on January 25, 2001 before the Budget Committee and he attested to the fact that we were paying down too much debt. He gave title and interest to the young President George W. Bush. He gave him the go-ahead with this $5.6 trillion debt.
Secretary of Treasury John Snow, former head of CSX and who used to head up the Business Roundtable, was always coming into my office because we were big admirers of CSX. He was always coming in worried about the budget and the deficits. When I talked to him on the phone before he became Secretary, I said, ``John, I see you are giving up two things.'' He said, ``What's that?'' I said, ``You are giving up your membership at Augusta National Golf Club, and you have given up any chance of balancing the budget and getting this Government out of the red. You are giving up on the deficit now, and you are going to head for deficits.''
I ask unanimous consent to have this 2001 debt time line schedule printed in the Record.
Mr. President, we have on January 25 the chairman of the Federal Reserve, Alan Greenspan, saying we are paying down too much debt.
On February 27, 2001, the President submitted his budget for the first time, and he said, in essence, I protect Social Security. I have $2.6 trillion to protect Social Security. I have $2 trillion for defense and domestic programs, and I have $1 trillion for unforeseen circumstances.
At the time Chairman Greenspan spoke, we were still in the red in deficits--$65 billion. When the distinguished President spoke on February 27 for the first time to Congress, we were $53 billion in the red. On April 15, the income tax time to make the returns, we were $94 billion in the red. But with all the tax payments coming in on April 15, by April 30 we were in the black by $13 billion. On May 1, we were $23 billion in the black. On June 1, we were $4 billion in the black. From the end of April to the first of June, we were in the black. But on June 7, the President signed the $1.7 billion tax cut, and by June 28, 20 days after he put his signature to the tax cut, we were $52 billion in the red. On September 10, we were $99 billion in the red.
They all said 9/11 caused this deficit. No. The day before 9/11, we were already, as a result of the tax cut, $99 billion in the red when the President was talking about $1 trillion for unforeseen circumstances. We have only authorized since 9/11 for the 2002 war on terrorism $20 billion. At the Congressional Budget Office they say 9/11 will only cost us $34 billion. Give them the double amount--some $60 billion that 9/11 may have cost. But it didn't cost any trillion dollars, and it didn't cause us to go back into the red. The tax cut is what we are suffering from. And thereby, as the Washington Post said, the first rule is to stop digging. But we will be meeting on Wednesday and Thursday with the Budget Committee, and there they will be determined to come in with shovels and dig as deep as they possibly can.
I happened to have fought with the French in World War II, and they are outstanding fighters. We are talking about NATO, how brave we are, how we are going into Iraq. I wish we had the courage to pay the bill. They say it is small by historical standards; that is, the deficit is 2.7 percent of the gross domestic product. But when you look at the actual debt, when they don't use Social Security, then the deficit as a percent of the gross domestic product is 5.7 percent.
The Greenspan Commission recommended that you are not to use Social Security trust funds, as the editorial points out, and that is exactly how they have lowered the deficit.
You see, when the editorial says, ``The deficit numbers above are cushioned by including $2.6 trillion from the Social Security trust fund,'' that is against the law, Senator. That is against, section 13- 301, which passed the Senate 98 to 2.
I wanted it to pass unanimously, but I could not get Senator Armstrong's vote. That is the one I missed, along with Senator Boschwitz's. I had the greatest--and still have the greatest--respect for both Senator Boschwitz and Senator Armstrong. I could not get their vote, but I got everyone else's. It went to President Bush senior on November 5, 1990, and he signed that into law.
So under law, you are not supposed to be spending Social Security moneys on anything other than Social Security.
For the Social Security trust funds, you can see that here we have spent $1.489 trillion. Everybody is running around saying: Save Social Security. We are going to have to reform Social Security. We are going to have to do this and do that. All they need to do is quit spending Social Security moneys on any and everything but Social Security. That is the whole problem.
Of course, you can see what they are spending for Medicare, military retirement to civilian retirement, the unemployment compensation fund, the highways, the airports, the railroad retirement, and others.
We are spending some $2.7 trillion already of all of these other trust funds. Yet we are going to do something on account of the baby boomers? I want to do something on account of the adults and get some conscience to this group up here and some awareness to the media and everybody to understand, let's have truth in budgeting.
The Secretary of the Treasury puts it out every day--the public debt, to the penny--and you can see how much the debt goes up. The debt clock is running every second in New York for the people to see. But we give them Enron accounting. It is small here, and we have another figure here, and everything else. So you can see we are spending a little over $40-some billion per month.
I think with that chart, and the distinguished Senator from Utah being here, I am sure I am using the Hatch rule on Estrada. Under the Hatch rule, you said, on another Hispanic nominee we had at one time, that you were worried she would be an activist and would legislate from the bench. That is exactly what I am worried about with Estrada.
I appreciate the time of the body. I would be glad if somebody wants to debate Mr. Estrada. Tell them I know very little about him except for the fact that when he was given the opportunity to come up to get my vote for confirmation, he elected to rudely not answer. I know the gimmick, and I know what they are doing. I voted for Robert Bork. David Boren of Oklahoma and myself were the two Democrats who voted for Robert Bork. I am delighted to vote for conservatives. My State is conservative. But don't send a fellow up and think he can engage in that kind of monkey business of not even answering the questions.
I yield the floor.