Mr. Chairman, I offer an amendment in the nature of a substitute. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, first I want to congratulate the gentleman from Iowa (Mr. Nussle) on his great work to produce a truly…
Mr. Chairman, I offer an amendment in the nature of a substitute.
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, first I want to congratulate the gentleman from Iowa (Mr. Nussle) on his great work to produce a truly fiscally responsible budget. It takes a big step in the right direction. But the Republican Study Committee budget takes even more steps in the right direction.
Budgets are so much more than green eyeshade exercises for accountants. They are so much more than esoteric econometric modeling. Beyond the numbers, they are really about values and priorities. The values and priorities of the budget I offer today are simple, less government and more freedom. Of all the budgets introduced in Congress today, none, and I repeat none, contain less government or more freedom than the Republican Study Committee alternative which I have the honor to introduce today.
Permit me to summarize what this budget does. First, for only the second time in a decade, we would actually reduce the size of government. In the aggregate, we reduce nondefense discretionary spending by 1 percent and reduce the rate of growth in mandatory spending by 1 percent. Why is this important? Because it is a fact. It is an eternal truth that as governments expand, liberty contracts. That means fewer opportunities for Americans to choose the best health care for their families, to choose the best educational opportunities for their children, or to find the best job in a competitive market economy.
Secondly, this budget fully funds the Commander in Chief's defense and homeland defense request. This is a Nation at war. For many years this Nation ran a defense deficit with deteriorating infrastructure, outdated equipment, and lagging military pay. We must continue to close this defense deficit because there can be only one outcome to this war, victory for freedom and defeat for terrorism.
Next, Mr. Chairman, this budget cuts the deficit in half in 3 years. As the father of a 2-year-old daughter and a 6-month-old son, I take a back seat to no one regarding my concern about the deficit. But we must all realize that the deficit is a symptom. Spending is the disease. And by any measure, spending is out of control. For only the fourth time in the history of our Nation, the Federal Government is now spending over $20,000 per household. This figure is up from just 5 years ago of $16,000 per household, representing the largest expansion of government in 50 years. Last year, what we call mandatory spending reached 11 percent of our economy for the first time ever. Nondefense discretionary spending is now almost 4 percent of the economy for the first time in 20 years, and almost every major Department of the government has grown precipitously way beyond the rate of inflation.
Besides being out of control, much of this Federal spending, unfortunately, is just pure waste, fraud, and abuse.
Until recently, Medicare had routinely paid as much as five times for a wheelchair as the VA had, simply because one bid competitively and the other did not. In the last year of the Clinton administration, HUD wasted over 10 percent of their budget making improper payments, $3 billion lost. We spent almost $800,000 for a toilet in one national park and the toilet did not even flush. And we are just scratching the surface here.
Example after example shows that many Federal programs routinely waste 5, 10, 15, 20 percent of their taxpayer-funded budgets and have for decades.
Mr. Chairman, this has got to stop. Government is inherently wasteful. It does almost nothing as well as we the people, and it must be limited. And until we do limit it, we will never prioritize, much less root out the waste, the fraud, the abuse that permeates every corner of our Federal budget.
Again, this Republican Study Committee alternative is the only budget that actually reduces government and thus begins the vital process of protecting the family budget from the Federal budget.
Next, Mr. Chairman, the RSC budget promotes economic growth by providing tax relief, $183 billion over 5 years. This will ensure that we do not imperil our economic recovery by raising taxes as all the Democrat alternatives propose to do. This figure accommodates the President's request and will help ensure that tax relief such as the child tax credit and the marriage penalty tax relief will not be canceled.
Now, my friends on the other side of the aisle have said that tax relief represents a huge government expenditure that creates huge deficits. They are wrong. First, it is not the government's money; it is the people's money. Secondly, when it comes to the deficit, the tax relief is miniscule compared to the spending, roughly $180 billion over 5 years compared to over $13 trillion of spending over the same time period. In other words, if you do the math, tax relief is only 1 percent of total spending. One percent.
If the Democrats truly care about budget deficits, they should focus their attention on the spending side of deficit, which represents 99 percent of the problem.
Finally, tax relief has proven to be part of the deficit solution, not part of the deficit problem. Tax relief has helped ignite our historic economic recovery, created jobs, and brought our unemployment rate down. And most importantly with respect to the deficit, Treasury reports show that after cutting tax rates, we increase tax revenues. That is right. Tax revenues are up.
The final thing that the Republican Study Committee budget does is to ensure we live up to our commitments to the American people. In other words, when we pass a budget, we enforce that budget. Too often through advance appropriations, so-called emergency spending and other devices, Congress has ignored its own budget. This too must stop. Through closing loopholes and creating Family Budget Protection Accounts, the Republican Study Committee budget takes a giant step towards ensuring that Congress indeed means what it says when it passes the budget.
In conclusion, Mr. Chairman, budgets are truly about priorities and values as much as they are about numbers. Our budget prioritizes the family budget over the Federal budget. It values less government and more freedom. For the sake of our own children and the future of the Nation, the Republican Study Committee substitute should be adopted by the House.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 2\1/2\ minutes to the gentlewoman from North Carolina (Mrs. Myrick).
Mr. Chairman, I yield myself 15 seconds.
If the gentleman is concerned about spending, this budget actually does cut spending. I would encourage him to sponsor it. Additionally, 99 percent of our deficit problem is on the spending side. So I do not understand why 99 percent of the rhetoric is on the tax side, on the other side.
Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from Pennsylvania (Mr. Toomey).
Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from California (Mr. Herger).
Mr. Chairman, I yield myself 15 seconds.
Medicaid spending is up 89 percent since 1995, and if the other side is concerned about the affordability of health care, perhaps they would join us in doing something about tort reform, medical liability reform and excess government regulation.
Mr. Chairman, I yield 1 minute to the gentlewoman from Tennessee (Mrs. Blackburn).
Mr. Chairman, I yield 2 minutes to the gentleman from Wisconsin (Mr. Ryan).
Mr. Chairman, I yield 2 minutes to the gentleman from Arizona (Mr. Shadegg).
Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from Arizona (Mr. Flake).
Mr. Chairman, I yield myself such time as I may consume. Again, budgets are about values. They are about priorities. This is a budget that indeed values less government and more freedom. It prioritizes the family budget over the Federal budget. We have had a lot of talk about the deficit, and the deficit is a very serious problem in our Nation. But the deficit again, Mr. Chairman, is a symptom. Spending is the disease in our society. By any measure, it is spending which is out of control. When we are spending over $20,000 per American household for the first time since World War II and for only the fourth time in our Nation's history, spending is out of control. We hear about all of these massive cuts. But, Mr. Chairman, I do not see them. Since 1995, Medicare spending is up 54.6 percent. Medicaid spending is up 89 percent; Labor-HHS-Education appropriations since 1998 are up 71.6 percent; Interior appropriations in the same time period are up 42.1 percent. And the list goes on, always outstripping the rate of inflation.
But, unfortunately, the same is not true with the family budget. Since I have been on the face of the planet, the Federal budget has grown seven times faster than the family budget. I believe this is an unsustainable and unconscionable growth rate. It is time for us to finally protect the family budget from the Federal budget.
By adopting the Republican Study Committee alternative, we take the first step towards doing that. We have had a lot of debate about tax relief as well, and we certainly have a philosophical debate with our friends on the other side of the aisle. But, Mr. Chairman, once again, we have cut tax rates; and guess what, we have more tax revenues because we have given tax relief to small businesses, we have given tax relief to families. They have gone out, they have rolled up their sleeves, they have created new businesses, they have expanded their businesses. This should not be news. The same was true during the Reagan administration. We cut rates, and we had more tax revenue. The same was true in the Kennedy administration. It is the thing to do when you are facing a recession, put money in the pockets of the people.
Our friends on the other side of the aisle speak about spending priorities. I, too, want to spend more money on housing. I want to spend more money on nutrition. I want to spend more money on health care. I am just not indifferent as to who does the spending. Democrats want the government to do the spending. We want families to do the spending. And we know the difference. The family is who needs to be protected in this budget process, Mr. Chairman. Once again there is only one budget here, one budget that will actually reduce the size of government, and that is the Republican Study Committee alternative.
And so, Mr. Chairman, in conclusion, if budgets are indeed about values and priorities, this is a budget that values less government and more freedom. It is a budget which prioritizes the family budget over the Federal budget. I encourage my colleagues to adopt it.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I demand a recorded vote.