Mr. President, before I discuss this legislation, I want to express my thanks to the distinguished minority leader, Senator McConnell, as well as the chairman and ranking member of the Finance Committee, Senators Baucus and Grassley, for…
Mr. President, before I discuss this legislation, I want to express my thanks to the distinguished minority leader, Senator McConnell, as well as the chairman and ranking member of the Finance Committee, Senators Baucus and Grassley, for their cooperation in facilitating consideration of this legislation. I also want to thank Treasury Secretary Paulson for his leadership.
We are taking up this legislation at the request of the Bush administration so that the Federal Government can meet its obligations and pay its bills. Secretary Paulson, in a letter to me earlier this month, indicated that it was essential that the Senate pass this legislation as soon as possible. This will be the fifth increase in the debt limit since President Bush came to office.
I find it distasteful and disturbing to increase the debt limit yet again, but the alternative is simply unthinkable. Eventually, some Social Security checks could not be sent. Government offices could close. Interest rates could rise. And the economic impact on our
country could be profound. As a practical matter, therefore, we have no choice.
Having said that, President Bush's failed policies put us in this box, and as we consider the pending bill, I hope my colleagues will focus on the importance of changing those policies. Over the past several years, the administration has completely abandoned fiscal discipline and dramatically increased our debt. Until we change the policies that led down this path, we will be back year after year, digging the hole ever deeper.
Let's review some history. When President Bush came to office, our Nation was running record budget surpluses and our debt was on the decline. In 2000, we ran a surplus of $236 billion, and the outlook was for continued surpluses for years to come. In fact, the Chairman of the Federal Reserve at the time, Alan Greenspan, was so optimistic about our fiscal condition that he thought we might quickly eliminate our debt altogether.
Unfortunately, once President Bush took office, our fiscal situation rapidly collapsed. In 2001, our debt was $5.8 trillion. Today, it's $9 trillion, an increase of more than $3 trillion. Compounding matters, all this new borrowing has come at the worst possible time, just as the baby boom generation is about to retire.
Not only has our debt exploded, but increasingly we are borrowing from foreigners. In fact, since President Bush took office, our debt to foreigners has more than doubled. Many of our creditors are in places like China and Japan. And as we borrow more and more from those abroad, we also become more dependent on them. It is a trend that cannot and must not be allowed to continue.
It's no mystery why debt has exploded. President Bush abandoned the pay-as-you-go rules that proved so effective in promoting fiscal discipline. He increased spending by 50 percent. And he approved massive tax breaks, disproportionately for multimillionaires and special interests.
Much of the spending has been for our disastrous occupation of Iraq. The war has already cost the lives of almost 4,000 Americans. But while our brave men and women in uniform bear, by far, the greatest burden, all American taxpayers are paying a price. We have already spent roughly half a trillion dollars on President Bush's failed policy. Now the President is asking for nearly $200 billion more.
How does the President propose to pay for all this new spending in Iraq? He doesn't. He just wants to keep putting it on the national credit card.
The same is true of the President's massive tax breaks for multimillionaires. Next year, President Bush wants to spend nearly $50 billion just to hand out tax breaks for those fortunate enough to earn more than $1 million a year. These lucky few will get a windfall worth an average of $130,000 each. Most hard-working, middle-class families would be grateful for a fraction of that.
And how will we finance all these lavish tax breaks for multimillionaires? Again, by putting them on the national credit card. In other words, our children will pay.
If only the President were as willing to provide kids with health care as he is willing to load them with debt.
As you know, the administration claims to have seen the light on fiscal responsibility, and has cited the need for discipline to justify their opposition to the children's health bill. But how much would the legislation add to the debt? $200 billion? $20 billion? No. The answer is: zero. Nothing. It is fully paid for.
In other words, the President is willing to borrow half a trillion dollars and more for Iraq. But he is opposing a children's health bill that won't add anything to the debt.
To put it mildly, those priorities are wrong. The American people know it. And most of my colleagues do, as well.
Clearly, we need to change course. And this debt limit bill is just another reminder of that.
Fortunately, the new Congress already has made real progress in the effort to provide a new direction. Earlier this year, we passed a budget resolution that balanced the budget without raising a penny of taxes. The budget put the middle class first and focused on America's needs here at home. All in a responsible way, while reestablishing strong pay-as-you-go rules to enforce fiscal discipline.
Our new budget was an important first step. But we have a long way to go to change fiscal policy to where it needs to be. Ultimately, it is going to take bipartisan effort, and I look forward to working with colleagues on both sides of the aisle to make it happen. Meanwhile, while it is not a pleasant task, we have no choice but to pay our bills.
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, I ask unanimous consent that upon disposition of H.J. Res. 52, the Senate resume consideration of H.R. 1585 and resume amendment No. 2999; that the amendment be modified with the changes at the desk, that there be 2 minutes of debate divided in the usual form; that upon the use of the time, the amendment be agreed to and the motion to reconsider be laid upon the table; that the Senate then resume Coburn amendment No. 2196, and there be 10 minutes of debate prior to a vote in relation to the amendment; that no amendment be in order to the amendments in this agreement; that the time be equally divided and controlled between Senators Levin and Coburn or their designee; and upon the use or yielding back of time, the Senate proceed to vote in relation to the amendment; that immediately after disposition of the Coburn amendment, the Senate proceed to Menendez amendment No. 2972, and that after the amendment is reported by number, there be 6 minutes of debate equally divided and controlled between Senators Levin and Menendez, or their designees; that upon the use or yielding back of time, without further action, the Senate proceed to vote with respect to the amendment; that upon disposition of the amendment, that the managers' package which has been cleared by the managers, be considered and agreed to; that the Senate proceed to vote on the motion to invoke cloture on amendment No. 2011, the substitute amendment; that Members have until 8:15 p.m. tonight to file any germane second-degree amendments; that if cloture is invoked on the substitute, then all time postcloture be considered expired at 5:30 p.m. this coming Monday, October 1; that upon adoption of the substitute, the bill be read a third time, and without further action, the Senate proceed to vote on passage of the bill; that the cloture motion on the bill be withdrawn; that upon passage, the Senate insist on its amendment, request a conference with the House, and the Chair be authorized to appoint conferees.
Yes. The first vote will be Monday at approximately 5:30.