Madam Speaker, it is an honor to come tonight and talk a little about spending, talk a little bit about the budget, talk a little bit about reform, talk a little bit about entitlements, and talk a little bit about earmarks. What we want to…
Madam Speaker, it is an honor to come tonight and talk a little about spending, talk a little bit about the budget, talk a little bit about reform, talk a little bit about entitlements, and talk a little bit about earmarks.
What we want to do, Madam Speaker, over the next hour is talk a little bit about what is going on in Washington, what is broken, what needs to be fixed and have a big-picture discussion. We can talk about line items. We can talk about things down in the weeds. But what we want to talk about tonight is a philosophical difference between the Republicans and the Democrats on how we are going to get this country, Madam Speaker, back on track.
Now the President's budget lays out critical fiscal issues that the Congress is going to have to deal with in the near future. Key among them are balancing the budget, promoting sustained economic growth, slowing the growth of Federal spending and addressing the coming entitlement crisis.
First on deficits. Last year at this time, after several years of dramatic declines in the Federal deficit, we found ourselves on what may be described as a glide path to balance in the near term. Now that path has been interrupted, mainly due to the slowdown in the economy and the stimulus package, but we will still balance the budget.
Even while addressing current challenges in the economy, the President's budget achieves balance by 2012 without raising taxes. Now let me say that again, because I think that is extremely important. The President's budget achieves balance by 2012 without raising taxes by demanding the Federal Government get in control of guess what? Spending.
The budget also achieves balance through sustainable fiscal policies that support economic growth and job creation. It maintains the tax policies that have supported the solid growth which until only recently succeeded in producing appreciably higher revenue, appreciably higher revenue, and dramatic reductions in the deficit, and we have got some charts to show you just that.
Finally, the President's budget recognizes that our Nation's challenges go well into the next few years. It takes a significant critical step towards addressing the greatest threat to our Nation's future strength and prosperity, the unsustainable growth of our largest entitlement programs.
While the President's budget doesn't fix the entitlement problem in one fell swoop, it does propose specific reforms, ones which would reduce Medicare's $34 trillion in unfunded liability by nearly a third, and that would be a tremendous step, Madam Speaker, $10 trillion, and I congratulate the President on this step.
These are issues that we can debate on how best to approach that. But to cut the unfunded liability by $10 trillion is remarkable. And if the people want to criticize the President's specific proposals for addressing that problem, that's fine. Then let's make sure they come forward with solutions on how we can fix this stuff. Don't just tell me the problem. Tell me how to fix it.
We must reform these programs so they can meet their mission of providing health and retirement security and a reliable safety net today and in the future. The administration has a proposed plan, but it is Congress who has the power of the purse strings. It is Congress who will decide the Federal budget. And it is Congress who is ultimately responsible and accountable for ensuring a sustainable path to our Nation's future.
Let me show a couple of charts to kind of substantiate what we are talking about, Madam Speaker.
The first chart. Now a lot of people have said the Bush tax cuts, let's make them permanent. Let's do away with them. When we talk about the Bush tax cuts, what are we talking about? We are not talking about the Bush tax cuts. We are talking about real things. We are talking about capital gains. We are talking about the marriage penalty. We are talking about dividends. We are talking about a death tax. A child tax credit. Things that affect everyday Americans, Madam Speaker.
Now this chart shows the best Bush tax cuts of 2001 and 2003. If you look at the red first, this shows what happened before the tax cuts, and the blue shows what happened after the tax cuts. Now my friends on the other side have always said, well, what we need to do, we need to tax the rich. We need to make sure that they are paying more than their fair share.
Let me show this. After the Bush tax cuts, the top 1 percent, their taxes actually went up. That's right. The top 10 percent, guess what? After the Bush tax cuts, their taxes actually went up. The top 50 percent, after the Bush tax cuts, guess what? Their taxes actually went up.
Now, again, the Democrats will argue, well, we need to do more for the little man, for the guy that is in the middle. Look at the bottom down here. The bottom 50 percent after the Bush tax cuts went into effect, their tax liability actually went down. So the argument that we need to tax the rich more to save the little man doesn't quite fit that chart, does it?
Let's show another one. Job creation before and after the Bush tax cuts. If you look at the red lines going south, or below the line, this is before the Bush tax cuts. Look what happened after the Bush tax cuts. Now it appears to me on this chart that job creation went up. So we have got the lower 50 percent that are actually paying less, and we are creating more jobs.
An interesting concept. Let me show another one.
Now, Madam Speaker, I really love this one. This is one that me being from South Carolina can truly understand. This is before the Bush tax cuts. Then, after 2003, everything was fully implemented. The line goes increasingly up. So even after the Bush tax cuts were fully implemented, revenues to the Federal Government soared through the roof.
It just proves that when you allow Americans to keep more of their hard-earned money, that they know how to spend it better than we do. They are going to buy a new truck. They are going to build a new building. They are going to hire a new employee. They are going to grow the economy. And the way you grow the economy is through the private sector and not the public sector.
Now, let's change subjects just a little bit. Spending. No matter what we do, whether it is tax policy, whether it is changes here or changes there, we have got to get spending under control. The red line assumes that my friends on the Democrat side are successful and the Bush tax cuts are going to go away. We will have higher taxes. The red line shows here that the taxes are increasing.
But look at the green line. The green line, Madam Speaker, is runaway spending, and you can't address one without addressing the other, because unless we get our fiscal house in order, none of it is worth anything.
Now, I want to read you a quote here. Comptroller General David Walker came in front of our committee and said, ``You are not going to tax your way out of this problem. You're not going to grow your way out of this problem. You are not going to do it by constraining spending. You are going to have to do a combination of all these things, and the biggest thing is going to be entitlement reform, Social Security and Medicare, health care being a much greater challenge. And
we need to start soon, because time is working against us.''
Let's look at entitlements. Now, of course, the top of it says ``mandatory spending.'' There is actually nothing mandatory about this, because Congress can change this if we need to. It is entitlement spending.
In 1995, entitlement spending was roughly about 49 percent of our Federal budget; in 2005, which, by the way, was 3 years ago, 53.4 percent of our budget. And, lo and behold, unless we do something to address entitlement spending, by 2018, it will be 63.3 percent of our budget.
Now, you look at the interest, how it has kind of stayed the same, actually gone down a little bit. But discretionary spending has gone from 36 to 29 percent. Roads, education, infrastructure, defense, things that are vital to our Nation, things that are vital to our national security, are being eroded because of this monster that we call mandatory spending.
This is the last chart I want to show. Now, again, I want to applaud the President for trying to attack entitlement spending. There is $34 trillion, as we speak, of unfunded liabilities. And what his budget proposes is an estimated $10 trillion trying to trim that off.
Now, my chairman, Chairman John Spratt from South Carolina, an honorable man, sat right in the committee and said these are draconian cuts to Medicare, to Medicaid. But, Mr. Chairman, tell me how to fix it? Let's have an open and honest debate on how to address entitlement spending, because, Madam Speaker, this is the camel that broke the straw's back literally; not the straw that broke the camel's back, but the camel that broke the straw's back.
Madam Speaker, I can go on, and I want to do that, but I have some tremendous partners here with me tonight that want to talk about spending, that want to talk about runaway spending, that want to talk about this system that, personally, I think is broken.
The first gentleman I would like to recognize is a dear friend of mine, a classmate of mine from the great State of Minnesota, Representative Colonel John Kline.
I thank the gentleman.
Madam Speaker, I guess it is a philosophical question: Who do you trust? Who do you trust? Do you trust a Federal bureaucracy that has grown and grown and grown? Or do you trust the men and women in South Carolina? Do you trust the men and women in Minnesota? Do you trust the men and women in Texas or Tennessee? Because they are the ones out there day after day busting their humps, making a living, trying to make ends meet. And all they want is a fair shake. All they want is for us to spend their money wisely.
I have never met a constituent, Madam Speaker, that didn't say ``I don't want to pay my fair share.'' But every one of them will tell you ``I don't want to pay more than my fair share.'' And it is incumbent upon us, it is incumbent upon the United States Congress, to do the right thing.
With that, Madam Speaker, there is a lovely lady in the Chamber tonight that is a budget hawk, that is a stalwart when it comes to conservatism in the House, a lady that speaks with a gentle voice but carries a big stick, and I am talking about my dear friend from Tennessee, Marsha Blackburn.
I thank the gentlelady.
Madam Speaker, I couldn't have said it any better. Mrs. Blackburn does a beautiful job, and we really appreciate her coming down and sharing some thoughts with us tonight.
My next speaker again is a classmate of mine, a wonderful man, the author of the Family Budget Protection Act, which was a fantastic piece of legislation, and I hope he talks a little bit about it tonight, also the chairman of the Republican Study Committee, and a dear friend, the gentleman from Texas (Mr. Hensarling).
Mr. Hensarling, I thank you for being here tonight and for your hard work. Your steady leadership with the RSC is truly appreciated. We appreciate you coming down here tonight.
Madam Speaker, my next speaker tonight is a gentleman that we call our songmeister in the Members' prayer breakfast every Thursday morning, a gentleman who is dogmatic when it comes to being a true conservative, when it comes to spending constraint, and when it comes to doing what is right in the United States Congress, the gentleman from Missouri (Mr. Akin).
I thank the gentleman. I can certainly tell one thing, Madam Speaker, and I know the other folks in the Chamber will agree, that the gentleman from Missouri is certainly passionate and believes in what he is talking about.
Madam Speaker, now it is an honor and a privilege to turn to one of our newer Members, but a Member who has proven himself time and time again, the gentleman from Ohio (Mr. Jordan).
I thank the gentleman from Ohio so much.
My last speaker, Madam Speaker, I don't know what to say. I mean, he's awesome. When you need somebody watching your back in a fight, the gentleman from North Carolina (Mr. McHenry) is the guy I want beside me. It is my pleasure to introduce him.
In closing, Madam Speaker, when I was working in the furniture store, my furniture store in Westminster, South Carolina, I had a guy named John R. McAllister. I called him Hoss. And Hoss would come in every Friday to see me and he'd make his payment. And it didn't matter whether I was working in the back or working on a truck or unpacking furniture, Hoss would look me up and come grab my hand and shake it and say, thank you for what you're doing. You know, Hoss McAllister probably didn't have an idea close to what I did. But I think about Hoss McAllister tonight, Madam Speaker, and all the Hosses out there that want a fair shake.
We're going to do the right thing. We're going to keep taxes low. We're going to give more money to Hoss so he can make a living.