Mr. Speaker, I plan to yield to several of my colleagues. Mr. Scott from Virginia is also going to speak, and as soon as Mr. Spratt, the ranking member on the House Budget Committee, comes out of an important hearing on the Dubai ports…
Mr. Speaker, I plan to yield to several of my colleagues. Mr. Scott from Virginia is also going to speak, and as soon as Mr. Spratt, the ranking member on the House Budget Committee, comes out of an important hearing on the Dubai ports issue, he will be able to join us as well.
Mr. Speaker, the 2007 budget takes America down a wrong and unsustainable path. The decisions the President made in this budget favor the wealthy over the working class. These decisions reward those who live off what the IRS considers to be unearned income, while making those who have to work long hours every day, to support themselves and their families, pay far more in taxes. In fact, I think you would have found bipartisan agreement if we could have worked out tax cuts that were more in the interest of the working class and those hardworking families.
But, in fact, when you combine the focus of the tax cuts on those who live primarily off unearned income and the spending cuts that purportedly are necessary to offset the cost of these tax cuts, the majority of young people in this country will find it harder to go to college. It will be harder for low-income elderly to get the nutrition and health care they need, and it will be much harder for our grandchildren to pay for the future needs that their generation will face.
The decisions made in the President's 2007 budget, like his budgets since 2002, define a Nation, a community, if you will, that is not the America that we know. In fact, his priorities are just the opposite of what makes America great.
We heard from our colleagues on the other side of the aisle; they call it a so-called Republican truth squad. It boggles your mind.
But the fact is that the Bush administration has raised spending while they have cut taxes. You can't fight two wars on four tax cuts, ladies and gentlemen.
The gentlewoman from North Carolina suggested that the government never invests, it only spends. Well, what does she think is the purpose of the interstate highway system that enabled our economy to fulfill its potential during the Eisenhower administration and subsequent administrations, or the money that we have put into the public schools systems to empower our working class?
And that is what we are talking about, investment that will give us sustainable benefits versus tax cuts that are immediately lost, most of which seem to be invested overseas, and cuts in the real safety net that can make America achieve its greatness.
The conscious choices made in this budget reflect the flawed policies of an administration that has taken this country down a terribly wrong path, one that consists of waging an unnecessary and extraordinarily costly war, delivering huge tax cuts to the very wealthiest of this Nation, and taking the Federal debt to depths never before experienced, while reducing services to working Americans.
First, the 2007 budget is heavily impacted by the consequences of a reckless foreign venture, namely, the war in Iraq. The President's 2007 budget sets aside another $120 billion supplemental to cover the cost of waging this war in fiscal 2007. Of course, this is on top of a regular defense budget of over $450 billion. And, in fact, we have now allotted over $400 billion, when you look through fiscal 2007, primarily for this war in Iraq, and very little for the war in Afghanistan that was referred to by our colleague from Maryland.
The money that is requested in these Iraq war supplementals is $40 billion more than we request for transportation, $33 billion more than we request for education and training, more than $40 billion more than we request for the care of our military veterans, more than $90 billion more than we will set aside to protect our environment and natural resources, and more than $80 billion for what is considered diplomacy, but is spent on dealing with the AIDS crisis, on dealing with the ethnic cleansing, the genocide in Sudan and throughout the world, places where we could have such a constructive, positive effect.
The amount of money that is being requested in fiscal 2007 for this war in Iraq will bring the total amount requested by the Bush administration to $490 billion, an enormous sum. The American people have to ask, has this been worth it, given the results to date? But we know the results are more than 2,300 Americans who have lost their lives in Iraq; more than 16,700 who have been wounded; tens, if not hundreds, of thousands of Iraqi casualties; and yet Osama bin Laden is still on the run. Iraq now appears to be descending into an all-out civil war and al Qaeda recruitment levels are reportedly stronger than ever.
But while our men and women are risking their lives overseas, at the instruction of this administration, and of course, we have great regard for their courage and sacrifice, we are not being asked to sacrifice at home; and, in fact, the people who have been the most rewarded by this great economy--that was built on the investments that have been made in prior generations--they are being asked to sacrifice the least. In fact, they are actually being rewarded. The same time that these men and women are going to war, we are continuing trillions of dollars of tax cuts that primarily benefit the very wealthiest in our society. And yet these tax proposals are going to cost the American people about $3 trillion, $3 trillion over the next decade. The benefits from these tax cuts are heavily skewed toward the wealthy.
If they were to fix the alternative minimum tax for the middle class, that would be one thing. If they were to help working-class families deal with the vulnerabilities they face in providing for their families, that would be one thing. But that is not where most of it goes. More than half of these benefits go to the 4 percent of Americans who make over $200,000 annually.
Four years from now, in 2010, taxpayers with incomes of more than $1 million a year will receive average tax cuts worth $155,000, 100 times the tax cut that the average taxpayer will receive. Is that fair? Is that smart? I don't think it is appropriate, and I don't think it reflects America's priorities. And they come at a huge cost to the fiscal security of this Nation; causing massive amounts of annual Federal deficits.
Over the last 4 years, we have seen the largest deficits in the history of our Nation. Mr. Scott is going to show you what has happened over the last 5 years on a chart. I hope you will pay close attention. It is unbelievable.
The current fiscal year, 2006, is expected to produce the largest deficit ever in the history of our country at $423 billion. And this doesn't even take into account the supplemental spending requests that the President will send up to the Hill any day now which will increase the 2006 deficit to well over half a trillion dollars. And fiscal 2007 will be another year of historic deficits predicted to be $354 billion.
In fact, since President Bush took office, we have had the largest annual deficits in the history of this country, and those numbers are net numbers after you take the Social Security surplus and offset it against general fund deficits. So you can add another $200 billion annually to each of those numbers.
So we are creating debt of over $500 billion a year, Mr. Speaker. These deficits and the $8 trillion in debt we now
have as a result of prior deficits will place on our children and grandchildren an unprecedented level of debt burden.
Because of these policies, every child born today automatically inherits $28,000 as their share of the Federal debt. And under the President's budget proposals, a child born just 5 years from now will inherit a much larger share. In fact, they will be paying taxes for nearly the first 5 months of every year just to pay the interest on the debt that their parents' generation incurred.
The President's massive budget deficits also require us to borrow from foreign governments. Foreign investors now hold half of the country's publicly held debt. China alone holds $250 billion of the public debt, which is more than 300 percent the amount that China held only 5 years ago. They have a fiscal guillotine over our necks if they chose to use it. We are so dependent upon China's being willing to borrow all this debt that we generate year after year.
Let me just show you a chart, in fact, of this foreign debt; Mr. Kahn, our very able staff director on the House Budget Committee, has put this together. This is the aggregate U.S. national debt held by foreign countries.
Now, the debt was climbing during the Reagan years in the 1980s, continued to climb during the Bush years. During the beginning of the Clinton years, it started to top off, and then with President Clinton having adopted the pay-as-you-go policy of the first President Bush, having to pay for tax cuts as well as additional spending, we got the budget under control. We had an estimated $5.6 trillion surplus predicted for the succeeding decade. So foreign debt would have gone down just like this. And as our foreign debt went down, our national security would have gone up.
But this administration decided they did not want to adopt the policies of the father. They did not want any pay-as-you-go. They just wanted to cut taxes. The heck with paying it. We will send a credit card to the next generation. They can pay off our debt. That is their problem, not ours. We are going to live high off the hog. We are going to reward our contributors. And the fact is that that is exactly what has happened, and we have driven this Nation into debt.
But even more seriously, look at what has happened to foreign debt. Foreign debt has gone up like this to here. We are now at $1.5 trillion. Here we are at $1.175 trillion and here we are over $2 trillion in 2005, a substantial share being purchased by China, as I just said, a 300 percent increase in China's share of the foreign debt. But imagine what has happened to foreign debt since 2001 when this President took office. Talk about endangering national security.
Now, who pays for all of this? Well, what happens is that the American people obviously pay. Our children will pay most of it. But even today the sick and the elderly who need care that cannot be provided by their families will pay. We will have our college students pay in reductions in student loans, and basically the dignity and the upward mobility of the American working class is going to suffer for these policies. Mr. Speaker, this is a situation that is not sustainable, that has to be reversed.
Now, everyone is entitled to their own ideological opinions. I do not think they ought to be entitled to their own set of facts. This is factual information. You can check in any of these budget documents put out by the government. You can find that the amount of debt has skyrocketed. The amount of debt held by foreign nations has skyrocketed to an even greater degree. We are dependent on countries like China to keep us afloat.
And, in fact, the working class has suffered. Our children are going to pay the bill, and we are involved in a war that we are only paying for by borrowing from the future. We have not paid one dime of the cost of the Iraq war nor have we paid for the tax cuts that we have so blithely passed.
Mr. Speaker, with this, I would like to yield to Mr. Scott, who has been on the Budget Committee for several years, and he is going to show you some shocking charts as well.
I thank my good friend from Virginia. Let me just clarify a couple of points. In the Democratic plan, it was basically based upon the pay-as-you-go concept of 1990 with the first President Bush, a bipartisan plan to pay for any subsequent tax cuts, to have sufficient revenue to pay for whatever spending occurred, but to balance the budget each year. By those efforts to balance the budget, it actually created a surplus.
Now, I know that the gentleman voted after 9/11 to go to war in Afghanistan, to go after the people that attacked us, Osama bin Laden, as I did; but that is a small fraction of the money that we are spending on the Iraq war.
The gentleman knows a lot of people, men and women, who have been financially successful. Does he feel that if they had been asked to sacrifice to pay for the war to go after those people who attacked us on 9/11, that they would have readily foregone tax cuts so that we could keep the budget balanced and avoid deficits being passed on to future generations?
I thank the gentleman for illuminating those misplaced priorities, and I thank him very much for his extraordinarily illuminating set of charts and numbers.
Mr. Scott, do you have one further thing you wanted to share with the American people? I yield to the gentleman.
Unbelievable charts. So for all of those Presidents since Herbert Hoover who had a net loss of job creation because of the Great Depression, Presidents Roosevelt, Truman, Eisenhower, Kennedy, Johnson, Nixon, Ford, Carter, Reagan and the first President Bush, and then President Clinton, of course, they all created far more jobs than this Presidency, the worst job creation record in our lifetimes, in the last, what, 65 years. So, it is an unbelievable record. We thank you for sharing it with us, Mr. Scott.
We will now hear from the gentleman from Long Island, New York, Tim Bishop, a member of the Budget Committee, and very much concerned about the fiscal policy of this administration.
Mr. Speaker, we are very appreciative of the gentleman's comments. Thank you very much, Mr. Bishop.
I yield to the very distinguished gentleman from Washington State, Brian Baird.
I thank the very astute gentleman from Washington State. And now we have our very diligent, conscientious member of the Budget Committee from the Commonwealth of Pennsylvania, Ms. Schwartz.
I thank the Congresswoman from Pennsylvania.
I am happy to yield to the Congressman from Alabama, Congressman Artur Davis. Thank you for your leadership, particularly on the Budget Committee.
I thank the gentleman very much, and particularly for revealing the real effects upon the hard-working people in your congressional district. Many of them are poor because they have not had the opportunities to be as prosperous as others. And that is a situation perhaps more pronounced in your rural district, but it is the case through so many parts of the country.
We need to be investing in as strong an America as we can possibly create. Our strength is in America's workers, and the education our children receive, in the roots that our families put into their communities.
And I know your total commitment to the people of your district as well as to the country and I appreciate your input. Thank you, Congressman Davis.
We now call upon the gentleman from North Dakota (Mr. Pomeroy), the former State insurance commissioner who watches this budget very carefully. And he is going to share with us some of his concern about the direction our fiscal policy has taken over the last 5 years.
I thank the gentleman from North Dakota (Mr. Pomeroy) for his extraordinary leadership and his very deep and genuine concern over the fiscal policy direction of this country.
Even beyond the immorality of this wild, profligate spending and then sending the bill to our children to pay, what American family would take a credit card, max it out, and then tell the credit card company, Do not worry about it. Send the bill to my kids after I die.
And that is what is going to happen. The amount of debt and even the interest on that debt is going to cripple generations to come.