The Federal Budget
Mr. Speaker, there are so many reasons why these tax cuts that have been proposed in the President's budget are irresponsible. One of them, obviously, is the fact that just as the budget deficits and the public debt balloons in 2008 and…
Mr. Speaker, there are so many reasons why these tax cuts that have been proposed in the President's budget are irresponsible. One of them, obviously, is the fact that just as the budget deficits and the public debt balloons in 2008 and thereafter is when the baby boom generation, our generation, starts to retire. So we are no longer making money, helping to solve the problem; we become the problem. When I say ``we,'' I refer to the fact that most of the Members of Congress are members of the baby boom generation. We are going to double the retirement numbers, and yet what we would be doing with this tax cut is to use every last dime of the Social Security and Medicare Trust Funds to pay for these tax cuts. Mr. Speaker, $4.4 trillion over the next decade. That is the first element of irresponsibility.
Second, of course, is that we do not know what the costs are really going to be from other parts of the budget. We had an analysis in The New York Times yesterday. They consulted the
Congressional Budget Office, any number of distinguished economists, all of the best sources, to figure out what might be the cost of war in Iraq and of fulfilling the responsibilities that the President said that he would make us responsible for once we go in. They estimated the costs would be between $100 billion and roughly $569 billion. The point is, we do not know what the cost is, yet we are going to go ahead with these tax cuts when we do not know how much money we are going to have available. So we have no idea how much we are going to be borrowing from the next generation.
The third that has been aptly discussed is the fact that the money is going to the very wealthiest people in this country, the people who needed the tax cut the least and who are the least likely to spend it immediately to stimulate the economy. So it does not make a whole lot of economic sense when what we are really trying to do is to pull this country out of a lingering recession.
The last issue that I would like to address is some of the foregone alternatives that are caused as a result of the tax cut. Today we heard from the Secretary of Health and Human Services. The administration has a prescription drug plan. They are touting it. They should be ashamed of it, because the fact is that it is woefully inadequate. Medicare beneficiaries are going to spend more than $1.8 trillion on prescription drugs over the next 10 years, and even if every dollar of the President's proposal went to our prescription drug coverage, which it will not, there is really only about $300 billion that actually goes to covering prescription drugs, the plan would only cover 22 percent of beneficiaries' medication needs. Seniors who spend more than $5,500 of their own money would get only 20 percent reimbursement for their drug costs.
But it seems to me that when we look at a plan like this, we really ought to consider what we get as Members of Congress, and there is where the deficiency is most pronounced. The President wants seniors to pay a $275 deductible each year. Most Members of Congress pay no deductible. The President wants seniors to pay 50 percent coinsurance for the first $3,000. Members of Congress only pay 25 percent. The President wants seniors to have a gap in coverage where they pay 100 percent of the cost when their need is between $3,000 and roughly $7,000. Most Members of Congress have no gaps in prescription drug coverage, and yet the administration says that they want it modeled after the Federal Employees Health Benefits Plan.
Mr. Speaker, it is not just the prescription drug coverage that is going to be necessarily inadequate. The Medicaid program is going to be capped with block grants. We look at programs like housing programs, HOPE 6 that the President has touted and, in fact, HOPE 6 is eliminated in this budget. This budget cuts education, it cuts 36,000 seniors from Meals-on-Wheels, not to mention No Child Left Behind which was the President's principal domestic initiative, and it is $619 million less than what is needed just to offset inflation. I could go down a long list. I am not going to do that.
Mr. Speaker, the fact is that the President's budget and the President's economic plan does the American people an injustice. It needs to be defeated.