Motion To Instruct Conferees On H.R. 3630, Temporary Payroll Tax Cut Continuation Act Of 2011
I yield myself such time as I may consume. Mr. Speaker, we've seen this motion to instruct before; and it calls on the conferees, of which I'm a member, to act, and to do so by February 17, I believe is the date that's been suggested. We…
I yield myself such time as I may consume.
Mr. Speaker, we've seen this motion to instruct before; and it calls on the conferees, of which I'm a member, to act, and to do so by February 17, I believe is the date that's been suggested. We would like to act. In fact, we await
an alternative from the Senate. The conference committee has met and, led by our very capable chairman, Dave Camp of Michigan, we've held, I believe, three or four open joint House-Senate Republican-Democrat conference discussions, meetings which hadn't happened around here. Certainly in the last Congress I don't think it ever happened. And we're doing it in the broad daylight, and we've had four of those, and our staffs are having some discussions.
But you've got to go back and understand that the House, under Republican leadership, actually passed a 1-year extension of the unemployment benefits. The House, Republican led, passed a 2-year doc fix, which meant for seniors who are on Medicare that the physicians they rely so much on for their health care, those physicians would continue to be able to afford to see them and not face a 27.4 percent cut in the reimbursement rates.
Now, here's the deal. We passed that, and we funded it, and we did it for 2 years, not 2 months--2 years. We did the payroll tax, as it's called by my friends on the other side of the aisle, payroll tax, middle class tax, working-American tax cut for a full year.
Now, there's a debate about whether that should be offset or not, because our party has said, you know, when we reduce the tax burden on hardworking middle class Americans, families and job creators, we shouldn't have to go raise somebody else's taxes to do that.
Now, the difference on this, if we're talking about Social Security taxes, this is about reducing the amount of money that you and I, Mr. Speaker, you and I pay into Social Security and every working American that pays into Social Security. We're saying, you get to reduce how much you pay into Social Security by this 2 percent.
Now, those of us on this side of the aisle believe that the Social Security trust fund has been raided once too many times by both parties over time, but that should stop. And so if we're going to reduce how much goes into Social Security, we should offset that somehow so that the fund is not drained, and that can be done in a multitude of ways.
But it should be done because otherwise it's less money going into the Social Security trust fund. And I think we'd all have to admit, as the actuaries do, that at the end of the day, the Social Security trust fund is not the best funded trust fund on the planet, and we are going to need to do some work to secure the retirement of future generations in Social Security.
So back to the point here, the House passed all of that. We did a 1- year payroll tax reduction so that hardworking middle class Americans would have tax relief. They'd have that extra money in the pocket, and Lord knows they need it, especially when you see what's happened under this President with energy costs.
I think gasoline was $1.86 a gallon when President Obama took office, and we now go to the pump and it's somewhere between $3-something or $4 and pushing over $4 depending on where you are in America. You've got to have a little extra money just to try and keep up and take your kids to soccer and go to school and go to work. It's hard out there.
So we passed that, a year extension of that, and a full year extension of unemployment for those who have struggled in this horrible economy. There have been 11 recessions since World War II. This is the worst in terms of a recovery from a recession.
When Ronald Reagan was President, we had a horrible recession in the early eighties. We came out of that recession, and if it were at the same pace now as then, you'd create something like 15 million, 16 million new jobs, which means virtually everybody who's unemployed and still uncounted, because a lot of people who have fallen off the unemployment rolls aren't counted, all of them would have jobs if we were growing at the same pace we did when President Reagan was in office and we came out of that recession.
But we're not. The policies really haven't worked. The so-called stimulus that the American taxpayers were told if it would just pass, somehow unemployment would never get above 8 percent. Now, a trillion- plus dollars later with interest, payments that the next generation will get to pay back, we're somehow supposed to celebrate unemployment that's dropped to 8.3.
I'm glad to see the improvement. I'm glad to see the job gains in the private sector. For goodness sakes, my wife and I have been small business owners since 1986 in Oregon. I understand what it's like to sign the front of a payroll check and the back and to grow a business and to deal in good times and in bad.
But the long and short of this is this is a horrible recession, so coming out of this we need that bridge. We put some reforms in unemployment to help people, to lift them up, to give them incentive when they're out there for a year, year and a half, 2 years that maybe we could help them get a better education, encourage that, allow States to encourage that, to help them get a GED, because all of the data shows that if you have a high school diploma, if you have a GED, the odds of you getting hired are much higher.
Then we gave the States the opportunity to do drug screening.
I've heard from a lot of employers in my district out in rural Oregon that say, We do drug tests, and Congressman, you'd be shocked at how many people apply for the job and can't pass the drug test. Well, if you can't pass the drug test, then maybe you really aren't actively seeking work in a way that's legitimate because you can't get hired and yet you're on unemployment, so why don't we do some sort of screen, figure out that problem that you have, and help you then get treatment.
So we said to States, we're going to do away with a Federal decision that's, I don't know, 20, 30, 40 years old that said States don't have this authority. I think States could actually manage this pretty well. That was in the bill the House passed.
So we did all of these things: A 1-year reduction in the taxes people pay into Social Security, the payroll tax deduction, a 2-year fix for your physicians who treat our families on Medicare. Both of my parents, they're gone now, they were on Medicare. My wife's parents, who've also passed away, they were on Medicare. This is an incredibly valuable program. But we passed a 2-year fix for them.
The 1-year for unemployment and the 1-year for the middle class tax cut. All of that went over to the Senate. And this is probably something maybe we can agree on here. What we got back from the other Chamber was a 2-month extension of those things.
Now, some of us stayed around here when the House said, Really? A 2- month, when this is a 1-year and 2-year problem? Why don't you appoint some negotiators? So the Speaker of the House, Mr. Boehner, appointed the negotiators through the House side. We hoped that the Senate would appoint negotiators. They didn't. They didn't appoint anybody. In fact, they left town.
Eventually, when nobody showed up after we'd been here for a week, trying to see if we couldn't bring both sides, the House and the Senate together, Republicans and Democrats, work out something more than a 2- month deal, they wouldn't show. And we ended up passing a 2-month extension. Which by the way, Mr. Speaker, puts us right back where we are right now. Which is why we have this motion to instruct from my friends on the other side of the aisle calling on the conference committee to get its work done by the 17th.
So we have worked for that. In fact, the last time this was voted on here it was overwhelming. I think there were only 16 ``no'' votes in the House. So we want to get this done, too.
Now, the Republican conferees have met today, as we've done over the last week or two. The Democrat Senate conferees, by the way, they had a retreat today down at the Nationals ballpark in some meeting room. There was a planning retreat. Both parties have had these in the House. But it just sort of caused a pause in the effort because the Democrats were all off at a policy retreat today from the Senate, so we weren't able to accomplish much today.
But we hope to get something from the Senate because, you see, they go into the conference and they had this 2-month effort against our 1- year. So we can't negotiate against ourselves. So we're waiting for a proposal back from the Senate, which we hope to get soon. If we do, tomorrow we'll meet at 10 o'clock. Republicans, Democrats,
House and Senate to try and work this through. We want to get this done. The American people deserve to have us get this done. We're working on a way to do that.
I reserve the balance of my time.
Mr. Speaker, may I ask how much time remains on both sides.
I reserve the balance of my time.
I yield myself such time as I may consume.
I want to just address a couple of points.
First of all, my dear friend from New Jersey, when he talks about the Congress bailing out the banks, may want
to talk to his colleague from New York since, I think, he voted for TARP in that process. Anyway, he may want to have that discussion right there.
You two are pretty close together. You can kind of work that deal out.
I yield to the gentleman from New Jersey.
In reclaiming my time, I don't disagree with that. I didn't support some of those bailouts either, although I did vote to make sure their financial system didn't collapse. My point is we faced some tough problems. We actually got over the hump in a bipartisan way, and we can do that here.
The interesting thing is that my colleagues on the other side of the aisle are the ones who, I believe, in most cases voted against the long-term payroll tax reduction the Republicans put forward; they voted against the 1-year extension of unemployment and the 2-year doc fix.
Wait a minute. I've got a couple of other things I was going to share with you first.
So that's what the House passed; right?
What we got back from the Senate was the 2-month short-term that we're all upset about. Because I agree with you. Having been a small business owner, there were a couple of things that were bad about that 2-month extension, which we actually, in the end, tweaked and fixed. One is just doing the payroll--trying to get the formulas, the calculations, the software in your payroll system. All that had to be changed for employers, and we actually got that fixed at the end, which is a good thing.
Going forward, we need long-term predictability and certainty, and that's what Republicans thought and Speaker Boehner thought in the beginning, which was, why don't we stop kicking these cans down the road on short-terms and get away from these problems that were such an issue last year that riled the markets, as one of our colleagues said earlier. Why were we forced into this mess with short-term continuing resolutions that time and again we came right up to the brink on? Why? Because, under Speaker Pelosi, my friends on the other side of the aisle did not produce a budget nor did they fund the agencies for the full fiscal year.
No, I won't, not at this moment. Don't leave. I'll get to you.
I've got to finish this because this is the problem with the dysfunctional nature of what happened here in Congress 2 years ago, which then, when we took the majority in January of last year, we inherited--no budget--just like our colleagues on other side have not produced a budget in more than 1,000 days. They still haven't produced a budget. If you and I were on a board of directors of some nonprofit and if we didn't do a budget every year, they'd rightfully say that you're being malfeasant, that you're not doing your job.
So the House passed a budget. The House, under Speaker Boehner, also funded the government. That wasn't easy, but we only have a majority on a good day in a third of the process, so we had to work with our friends on the other side and with the President downtown. At the end of the day, though, we funded the government for the rest of the fiscal year.
You talk about anxiety in the markets and all that. By the way, in having brought some stability back to government, in having seriously said we have to pay for spending and cuts by cutting spending, the market now is at the highest level it has been since the crash in '08 or thereabouts. So it is coming back. Now, that doesn't help the average Joe out there on the street necessarily or people trying to find work, and there has been a lot of effort to try and deal with that, but we have a long way to go. I agree with my colleague that none of us is happy at 8.3. None of us was really happy at 10 or, in parts of my district, at 16 percent unemployment, so we have a long way to go.
I would yield just briefly.
Yes, sir.
I'm going to reclaim my time because you actually have time, and you might want to get some yielded on that.
The point is, the discussion we are having right now is on how to pay for it. That is the discussion we are having with the Senate, and there is disagreement. But there should be no misunderstanding that it was the Republican House that put forward the 1-year extension of the payroll tax cut for these same working-class folks. It was the Republican House that put forward a 2-year fix for the docs so they had certainty in their medical practices and could continue to see seniors on Medicare. And it was the House that passed the 1-year extension on unemployment. We just think the ``spend it even when you don't have it'' days are over.
This country's job outlook is affected because of this country's government's failure to cut spending. We don't have a revenue problem; we have a spending problem. There is nothing that has a longer chance of living in America than a government program created in Washington. We have got to do a better job. It's not easy. The hardest thing you can do in this job is to tell somebody ``no.'' But you know what, for too many times, too many people in this Chamber over the years have only said ``yes'' to spending and creating new programs. That has to change.
So we did have a debate about increasing the debt ceiling. And for the first time we said, It's not going to be that automatic Democratic Dick Gephardt rule that said, when you pass a budget, you raise the debt ceiling automatically. We thought it was time to have the debate. As painful as it was, as difficult as it was to say, We have to offset this increase in deficit by cutting spending, I know, as a small business owner, our small business would have been broke if it had been run as this government runs.
Now there are good times and bad times in government, and you can work around some level of borrowing and some level of deficit. But it isn't far from this porch out here to the debt crisis Greece has and Portugal has and the European countries have and are facing right now. We have time to fix that; and that's why we're saying rather than cut the funding going into Social Security and not replace it with something else is a mistake. That is what we're saying.
I reserve the balance of my time.
How much time remains on each side, Mr. Speaker?
Mr. Speaker, I yield myself such time as I may consume.
I would like to just point out a couple of things so we get on the same terms here. I was actually here until the 23rd day of December, as were the Republicans appointed to be conferees. I don't know that Leader Pelosi had appointed Democrat conferees at that point. I don't think in that process she had yet, although she did somewhere thereafter. Maybe on the 23rd, but not in between. The Senate wasn't here. And even though we tried to get them to appoint conferees prior to that, they did not. So on the 23rd is when we finally said, It's over. They weren't coming back, and we ended up agreeing to the 2-month extension, which leaves us here.
Now, my friend from New Jersey talked about this should have been done by January 17. Well, there's only one problem with that: the Senate didn't come back into session until the 24th of January. The conferees could have met during that period. In fact, we would have met during that period; but, frankly, there were Members--probably from both parties and both Houses--who were not available to meet. And I know for sure in the Senate, some of the conferees were not available to meet because they weren't exactly in the country. So that wasn't going to happened until we were both in session.
I believe the State of the Union was Tuesday night, the 24th. I believe that's the day the Senate came back. I may be off by a day. But that's why this thing didn't start up. Which, by the way, is why in December we begged the Senate, Why don't we work this out December 23? Why don't we work this out December 22, 21, 19, 18, go on back. We were ready and we stayed, and they chose not to. They had a big vote and said, We're going to do 2 months. We'll see you at the end of January. So that is where we are.
I yield to the gentleman from New Jersey.
I believe it was.
Reclaiming my time, that's cute and clever. You and I know that's not exactly the same issue. And I would assert that if a different President, a different party had done that, you might share the same concerns that some of us have. We were not officially in recess, but they were not in town, either. Both Chambers open and close every 3 days. That's how it's been done in the recent past.
Mr. Speaker, I yield myself such time as I may consume to set the record straight.
First of all, my colleague who just spoke, it was his party that raided Medicare as part of the President's health care legislation by $500 billion. That's a fact.
Now, when he says that my party ended Medicare, that is not a fact. And, in fact, PolitiFact, the independent arbiter of what we all say here to see if it's truthful, said that the notion that that is true is the biggest untruth of the year. They gave it that award because they knew that it wasn't true. And I know it's not true.
Now, I'm trying to figure out what my friend, and he is my friend, means when he said that this isn't somehow raiding Social Security's trust fund because the payroll tax that is at issue here that is being reduced by 2 percent is the payment that, if it were made, would go into Social Security. That's the payroll tax.
I won't yield at this moment. You wouldn't yield to me. I'll let you use your folks' time.
Now that is being offset. And by the way, the offsets that we are talking about as part of this legislation almost in every case received bipartisan support in this House, and sometimes overwhelming bipartisan support. And many of those offsets were actually recommended by the President of the United States, Mr. Obama, as part of a different package as things that he thought made sense.
And so we said, you know what? Maybe there's some common ground here. The President recommended some of these offsets as ways to reduce government spending and pay for other things as part of the supercommittee process. And so if he thought it was okay there, maybe we can finally find some common ground, and we'll say you like that there, and so we'll use that here so we don't increase the deficit, don't hurt jobs, and don't leave our kids with an unimaginable debt.
So Republicans are the ones who've said, We're not going to let you raid Social Security. We'll reduce the payroll tax payment, the Social Security tax payment, but we're going to offset it so that the fund is not any further reduced. I think that's an important principle that I would hope we would all share.
And so I just say that it was the President's health care plan that took $500 billion out of Medicare. I don't know, I'm a fan of Medicare. I've seen what it does for seniors. I saw what it did for my parents and my wife's parents. I want to make sure it's preserved for the future, just like I want to make sure Social Security is as well. That's why we shouldn't rob the fund.
I reserve the balance of my time.
I yield myself such time as I may consume.
Mr. Speaker, what Americans really want is a job. I don't think there's any disagreement between us that that should be our goal. That's why as part of what the Republicans put in the bill that went to the Senate is a plan to auction off spectrum that would generate upwards of 700,000 jobs, according to some studies--700,000 jobs. It will spur innovation and spur technology. That's in this bill that we're fighting for because this is a sector that can grow good-paying, family jobs that can keep America in the lead on innovation and technology.
So the legislation, the American Jobs Act, which I authored, is in this legislation. It's a part of this bill. It would generate net $16.7 billion to help pay for extending unemployment or to help pay the Social Security trust fund so that it doesn't have to be depleted.
Mr. Speaker, I yield such time as he may consume to the gentleman from New York (Mr. Reed).
How much time does each side have remaining, Mr. Speaker?
Mr. Speaker, I yield myself such time as I may consume.
I think this has been a good, thoughtful, and lively debate because I think we've been able to show each other, through you, Mr. Speaker, the fact that the House did its work.
House Republicans put forward a proposal to extend unemployment benefits for a full year, and we paid for it. We put forward a proposal to give working middle class taxpayers a reduction in the amount they pay into Social Security, but we backfilled that money so that Social Security's trust fund was not depleted. And we said to our physicians out there who take care of our seniors that they would have certainty and not face a 27.4 percent cut in their reimbursement rates under Medicare and that they would have that certainty for 2 full years. So the facts are clear what the House passed.
We also included in this legislation to try and drive new job creation in the high-tech sector by auctioning off spectrum that would generate $16.7 billion and upwards of 700,000 jobs. That's a high-end number, but let's say it's half that. There are estimates all over the place. But a few hundred thousand jobs would be a really great thing, especially in technology and innovation and everything that would come from that. That's in this bill.
What we got back from the Senate was 2 months--2 months--2 months-- and a failure to even come to the table. So the Republican conferees from the House have been willing to meet anytime, anywhere. And, in fact, under Chairman Camp's leadership, we have met in public with our counterparts.
Frankly, we've had some good discussions across the table. I want to make that clear, as well. Between the Republicans and Democrats, House and Senate, those of us on the conference committee I think you would say, even though we may have disagreements, we've had good discussions. And now we need to get the work done.
In order to get the work done, we have to have some alternative proposals from the Senate, which hopefully we're going to get, maybe even tonight. I think that would be helpful because then we would know what their position is, because this is kind of a different sort of conference. We had a year bill; they had a 2-month bill, and most of that 2-month bill became law. So it's been kind of an awkward conference for the Senate to try and figure out how to do this, and the House has a full year or 2-year extension, depending upon the items at issue here.
So we'll meet again tomorrow at 10 o'clock, is my understanding, in conference, either in private or in public. I don't know. That will be up to the chairman. But in any case, I don't care when or where. I'm ready. Mr. Reed from New York who spoke earlier is ready, and my other conferees are ready. We were ready in December to get this done, we really were, and we still are. And we're committed to the working American people and those who are trying and struggling to find jobs to make sure they have that unemployment insurance. They deserve that, they need that, and we're committed to providing that.
So, Mr. Speaker, on that note, I don't think there will be any objection on this floor to approving the motion to instruct conferees to get their work done by the 17th. I'll certainly support it, as I have and nearly everyone in the House has.
Mr. Speaker, I yield back the balance of my time.