Mr. Speaker, tonight, we are coming here to talk about a very important piece of legislation titled the Deficit Reduction Act. Mr. Speaker, our Nation is seeing a number of challenges here, obviously 9/11, which we have heard a lot about.…
Mr. Speaker, tonight, we are coming here to talk about a very important piece of legislation titled the Deficit Reduction Act.
Mr. Speaker, our Nation is seeing a number of challenges here, obviously 9/11, which we have heard a lot about. Recently our Nation has been hit with a number of hurricanes, natural disasters that have proven very, very costly to our Nation. Now we have seen the threat of avian flu. There are a number of different challenges our Nation faces, and we will meet these challenges; but meeting these challenges is not free.
Particularly within the context of the hurricanes that have hit, at the end of the day, when we look at the Federal response, how much money the Federal Government is going to spend, there are really only three ways that we are going to be able to pay for this. Either number one we are going to raise taxes on hardworking American families yet again as they are facing challenges in meeting the cost of filling up their pick-up trucks and heating their homes, or we are going to pass debt on to our children, even more debt to be passed on to our children. But, Mr. Speaker, we on the Republican side of the aisle believe that there is another way, and that way is to restrain the growth of government. That way is to protect the family budget from the Federal budget.
We are going to spend some time, Mr. Speaker, this evening bringing up some very interesting facts that we believe the American people need to know.
Number one, you will hear this evening about how tax relief that we have brought to American families and small businesses, that has been part of our deficit solution, not part of our deficit problem; and we will talk about that later this evening because there has been a lot of misinformation there.
In addition, we have heard the other side talk about gross and draconian cuts in the Federal budget. Well, what we are going to discover, Mr. Speaker, is what they call a draconian cut is trying to restrain the growth of government so we do not have to raise taxes, so we do not have to pass on debt to our children. It is the same old song we have heard from them for 50 years.
What we also hear from them is that somehow any reform, any accountability that we institute in the Federal budget is somehow tantamount to hurting the poor. Mr. Speaker, we do not buy that. The American people do not buy that either because we know that year after year after year, as we dump new programs on top of old programs, as the Federal Government refuses to measure the success, the progress, the ability of these programs to meet goals, that we have a budget now that is fraught with waste. It is fraught with abuse. It is fraught with duplication.
Mr. Speaker, finally, not all spending is created equal. Families all over America have to make some tough decisions occasionally at the end of the month when that paycheck begins to run out, and this is what people do in a great Nation.
In my own family, if we are a little low on money at the end of the month, I am not going to tell my two children, my 3\1/2\-year-old daughter and 2-year-old son, I am sorry, children, you just cannot have anymore milk because your mom and I have got this great movie we want to go see. What happens is my wife and I do not go to the movie. Instead, we buy the milk for the children.
Some spending in the Federal budget is just not high priority, not when compared to trying to relieve human suffering along the gulf coast that has been wrought by these hurricanes. So the American people, I think they instinctively know, but occasionally we have to remind them about what is in this Federal budget.
Mr. Speaker, often when we spend money here in Washington, D.C., many good things come from it: Kevlar vests for our brave men and women fighting in Iraq and fighting in the global war on terror. Occasionally money is spent to help start a small business; but more often than not, though, we see that this money is spent for an $800,000 outhouse in a national park and the toilet does not even flush. We see it spent on 342 different Federal economic development programs, 342. Does that not suggest some duplication? More often than not, it is spent on food stamps where 10, 20, and sometimes 30 percent of the recipients do not even qualify because we are not checking their income levels, and the list goes on and on and on.
The important thing, Mr. Speaker, that we need to know this evening is that there are plenty of places in the Federal budget where we can save money so that families do not have to cut their budgets because every dollar we spend here is a dollar that we cannot spend back in Texas or Tennessee or Virginia or New York.
At the end of the day, it is not the government's money. It is the people's money, and we need to institute more accountability in the system. I wish more of our friends on the Democrat side of the aisle would come and help us, but too often they have bottled up each and every reform. They do not believe that there is any waste in the Federal budget. They do not believe there is any duplication in the Federal budget. They believe all spending is great spending, that nothing good has ever happened in our Nation unless it as the result of a Federal program; and that is not true.
So, Mr. Speaker, the first thing that we want to discuss this evening is to talk a little bit about what is in this Federal budget, this $2.4 trillion budget, a budget that over the last 10 years has been growing at least a third faster than the family budget, a Federal budget that, in my lifetime, Mr. Speaker, has grown seven times faster than the family budget. That is an unconscionable growth rate. That is an unsustainable growth rate.
Again, our purpose here is to provide reforms. It is to provide accountability, and it is to spare our children the future of having to have a massive tax increase or massive debt placed on them.
So we want to talk about different ways that we believe that we can save money in Washington, D.C. without cutting vital programs. We want to make sure that the social safety net is in place; but we know that the greatest social welfare program, the greatest housing program, the greatest education program in the history of mankind is a job, a job provided by the American free enterprise system, which is what our economic policies are all about. That is why we have been able to create 4 million new jobs in this economy, with tax relief for small businesses and American families.
So there are a lot of things that we need to do to protect that family budget from the Federal budget; and I am very, very happy, Mr. Speaker, that I have been joined by a number of our colleagues who are leaders in this Congress on trying to help root out this waste and this fraud and this abuse and this duplication in the Federal budget so that we can indeed protect that family budget.
One of the individuals who is joining us this evening is one of the leaders in government reform, a colleague of mine that I have been very proud to know, a real leader in this Congress on that subject, the gentlewoman from Tennessee (Mrs. Blackburn); and I would be glad to yield to her.
Mr. Speaker, I certainly thank the gentlewoman for her insight and leadership on this subject. Mr. Speaker, she brought up just a number of different examples illustrating the point that, again, there is so much waste and there is so much fraud and there is so much duplication and low-priority spending in this budget, yet Democrats do not want to work with us to try to reform this.
Mr. Speaker, we have 10,000 different Federal programs spread across over 600 different agencies, and we have many pressing needs, but we owe it to the American people to bring some accountability here.
Now, again, as my able colleague, the gentlewoman from Tennessee, talked about, we know what the Democrats will say about these different programs. Well, wait a second, that is really massive cuts in spending.
Mr. Speaker, as I said earlier, anybody in this body is entitled to their own opinions, but they are not entitled to their own facts. Let me talk a little about what the facts are, and then we will go back and talk about even more waste and fraud in this budget.
When they talk about massive cuts in the Federal budget, let us put this in perspective. If we are, among other things, besides trying to reduce the deficit, if we are trying to pay for the hurricane damage, so far that bill for the Federal Government has totaled about $62 billion. Yet the Federal budget over this same 5-year period is $13.9 trillion. Mr. Speaker, as I do my math, we are talking about less than half a cent, less than half a penny, and this is called some type of massive cut?
What it tells me is that, as we are trying to fight the deficit, all we hear about from the Democrats is tax relief, we hear about massive cuts, and yet we are talking about half a cent. If we cannot find a half a penny of savings on the dollar in a $13.9 trillion budget, well, we are just not looking.
Any small business in America, any family in America would laugh in our face if we told them, well, there is just no way that we can find a half a cent of savings on the dollar to protect your family budget. No, we are going to have to increase taxes, or maybe we will just pass debts on to your children. Mr. Speaker, that is just totally, totally unacceptable.
Yes, I will be happy to yield to the gentlewoman.
Well, the gentlewoman is so right. It begs the question, Mr. Speaker, how much government is enough? As we can see from this chart, already Washington is now spending over $22,000 per American family; and this is one of the greatest levels in history.
For only the fourth time in American history has the Federal Government taken that much money away from American families to spend up here. And look at this growth curve. $22,000 per family for only the fourth time in American history. Again, how much government is enough?
And, as I stated earlier, just look at the last 10 years. Look at the growth of the family budget, which is here, the blue line, versus the growth of the Federal budget. The Federal budget in the last 10 years has grown a third faster and keeps on growing and growing. And as we will discuss later this evening, the trend line is only getting worse.
But here is a very, very important point to make with this chart, Mr. Speaker, and that is, again, as we talk about ways that we can find efficiencies in government, as we talk about ways that we can reduce the waste, where money is taken from hard-working families in America and wasted up here, here is something that every American ought to know in this debate. Even once we are successful in passing this Deficit Reduction Act and engaging in this process called reconciliation, which is a fancy Washington term that just means we are going to start reforming these out-of-control entitlement programs, guess what, Mr. Speaker? They are going to grow at 6.3 percent instead of 6.4 percent.
That is the massive cut that the Democrats talk about. It is not a cut. We are increasing this spending, but we are not increasing it as fast as it would be on mere automatic pilot. But somehow, in Washington lingo, as my colleague pointed out, somebody calls that a cut. Now, only a liberal in Washington or an Enron accountant can look at that chart and somehow call that a cut.
Again, Mr. Speaker, maybe people are entitled to their own opinions, but they are not entitled to their own facts.
Mr. Speaker, again let me go over even more examples that we will have about where we can find savings in this Federal budget. Because, again, Mr. Speaker, either we are going to find savings in the Federal budget or we are going to attack the family budget by raising taxes or we are going to pass debt on to our children. So it is incumbent upon us to find ways to reform government and to make it more accountable.
With that, I notice we have been joined by two of our colleagues. I am very happy that we have been joined by the gentleman from Virginia, the deputy majority whip, who has been a real leader in this House for trying to bring accountability into the Federal budget.
Mr. Speaker, I yield to the gentleman from Virginia (Mr. Cantor) for his comments on this subject.
I yield to the gentlewoman from Tennessee.
I yield to the gentleman from Texas.
Mr. Speaker, reclaiming my time, I certainly thank the gentleman for joining us this evening. Would it not be wonderful if they had a few accountants on the other side of the aisle who could actually let them know how you are supposed to count numbers?
The gentleman from Texas, my home State, made some excellent points. We have gone over a number of the different wastes that we find in the Federal budget. But, again, as we face our challenges, as we face trying to bring this Federal deficit down, and we are making progress, we are making huge progress under this Republican administration and this Republican Congress, but we still have a ways to go.
If we are going to bring the deficit down, if we are going to find the funds to help offset this hurricane relief, the money is only going to come from one of three places. The Democrats do not want to tell you, but they want to raise taxes. There are food stamp overpayments that cost $600 million annually, yet the Democrats want to raise taxes on American families. The school program abuse is costing over $120 million annually, yet Democrats want to raise taxes on American families. Veteran program overpayments cost $800 million annually, yet Democrats wants to raise taxes on American families. And the list goes on and on and on.
Mr. Speaker, let us take a look at tax relief, because all we hear from our colleagues on the other side of the aisle is that if we would only raise taxes on the American people, we could be fiscally responsible. Let us take a look at what tax relief is all about.
Number one, when you look at the amount of tax relief that we have passed in the Federal budget, let us assume for a second that all tax relief, as the Democrats would lead you to believe, is somehow wasted money. They do not realize it is not their money. It is money that belongs to American families, it is money that belongs to small businesses, people who go out and work hard and create jobs. Number one, it is not their money, it is the people's money, and we will never forget that.
But let us assume for a fact that somehow we wasted money by allowing American families to keep more of it.
Mr. Speaker, in a $13.9 trillion budget, tax relief is less than 1 percent of that budget. So when we talk about what is necessary to bring down the Federal deficit, again, over 99 percent of the challenge lies on the spending side. But the truth is, Mr. Speaker, letting American families and small businesses keep more of what they earn is not part of the deficit problem, it is part of the deficit solution.
Again, any Member is entitled to their own opinion, but they are not entitled to their own facts. I have in my hand here the latest report from the U.S. Treasury talking about tax revenues. And what do we discover? Well, we discover that since we passed tax relief for the American people as part of an economic growth program, well, guess what?
Mr. Speaker, corporate income taxes are up 47 percent. Individual income taxes are up almost 15 percent. Total receipts are up almost $300 billion. Again, this is not my opinion, these are the facts.
Look at this chart, Mr. Speaker. Look what has happened since we passed tax relief for the American people. Every year we see tax revenue going up.
So in many respects, again, it is a bit of a tax increase, but it is the right tax increase. It results from economic growth. And what has happened is not only, not only, Mr. Speaker, have we managed to bring in more revenues to the government and bring the deficit down, the deficit has now declined $319 billion.
The deficit has now declined $319 billion, because we have more revenues. The deficit is coming down. But, not only that, 4 million new jobs have been created; 4 million new jobs. We are enjoying the highest rate of homeownership that we have ever enjoyed in the entire history of the United States of America, all due to tax relief. Yet, Democrats want to raise taxes on the American people. They are trying to raise them right now.
Mr. Speaker, that is just not right. They want to take the child tax credit away. They want to bring back the death tax. They want to take away accelerated depreciation for small businesses. They want to bring back the marriage penalty. All of this they are actively trying to do, trying to increase taxes on the American people to pay for all of this waste and all of this duplication that you have heard cited this evening.
But, Mr. Speaker, again, we cannot have tax increases. That is the wrong prescription for the economy.
Now, some people may say, well, it does not quite make sense. How do you cut tax rates and get more tax revenue? And how does this work into this whole debate about what is compassionate and what is not compassionate?
Well, Mr. Speaker, it was a number of months ago, but I went to go visit a small business in my congressional district back in Texas. I went to a small business that is called Jacksonville Industries in Jacksonville, Texas. They are a zinc and a dye-casting business and, due to competitive pressures, they were on the verge of having to lay off 2 people, 2 out of about 20, I believe, so that would have been 10 percent of their work force. That would have been pretty sizable. But due to our tax relief, they were able to go out and buy a new piece of modern equipment that helped make them more efficient. Now, I could not tell you exactly what it did, but I saw it, it was big, it was noisy, it was large. But most importantly, Mr. Speaker, it made them more efficient. Instead of having to lay off 2 people, they were able to hire 3 new people. Now, think about that, Mr. Speaker. That is 5 people. Five people that could have been on unemployment, 5 people that could have been on welfare, 5 people that could have been on food stamps.
Now, that is how the Democrats measure compassion. They only know one way to measure compassion, and that is how many welfare checks do you write. We believe that compassion is measured by how many paychecks you write. So instead of having 5 people over here on welfare and unemployment and food stamps, there were 5 people that, due to tax relief, had good jobs. They were able to put a roof over their heads. They were able to put food on their tables. They were able to help provide education and transportation for their children.
Again, compassion is not measured by how many welfare checks are written, it is measured by how many paychecks that are written.
So, Mr. Speaker, we need to remember, as we are debating fiscal responsibility in the people's House, we need to think in terms of it is not a question of how much are we going to spend on education, how much are we going to spend on nutrition and how much are we going to spend on housing, but it is a question about who is going to do the spending. Democrats can only measure compassion by spending done by the Federal Government. And what we end up with, again, is all this waste, all this fraud, all this abuse, all this duplication. We want families to do the spending, and we know the difference between the 2. So tax relief is all about helping families, it is helping small businesses. So as we debate fiscal responsibility and how to bring down the deficit, we must recall that tax relief is part of the solution, it is not part of the problem.
Mr. Speaker, it is so important that we begin the work of reforming these different programs, because if we do not, the fiscal future of America, frankly, is very, very worrisome.
Right now, if you look at any of the different offices in Washington that are charged with accounting, the General Accountability Office, the House Budget Committee, the Congressional Budget Office, they will all tell you essentially the same thing, that we have spending patterns in the government today where we are going to have to double taxes on the American people in one generation just to balance the budget. You got medicare growing at 9 percent a year, medicaid at 7.8, Social Security, 5.5.
These are important programs and they need to be preserved, but they have to be reformed, because they were instituted many, many years ago, many decades ago in a different era. They were not built in the 21st century, they are not meeting the demands of the 21st century, and they will not be here for our children, unless we reform them.
So as the Democrats attack tax relief and as they claim that there are somehow massive budget cuts going on, remember what their alternative is. Their alternative is going to be to double taxes on our children. I believe, Mr. Speaker, that that is simply, simply unconscionable. It is unconscionable, and a future that we must avoid.
Mr. Speaker, this kind of graphically represents that future. Today, government is taking up roughly 20 percent of our economy, roughly 20 percent of what we produce. Look what is going to happen in one generation. If we do not do anything to reform this out-of-control entitlement spending, if we do not start on the deficit reduction today, you are going to see government double, absolutely double in one generation.
These are the tax increases that are going to be needed to pay for that, something that we never see the Democrats talk about, but it is their plan, because they say, well, we are going to balance the budget. That is what they tell us. They say, we are going to be fiscally responsible. Yet, they will not reform any single government program. They will not reform any of them. So what is left? Doubling taxes on the American people in one generation.
Now, Mr. Speaker, I became a father 3\1/2\ years ago, and I am very blessed that my wife and I have 2 small children, a 3\1/2\ year old daughter and a 2 year old son. They have changed my life in so many wonderful ways. I can tell you, Mr. Speaker, I spend a whole lot of time now thinking about the next generation. Too many people here, though, are thinking about the next election. I do not want to leave my children this legacy of tax increases. I do not want to leave my children a legacy of debt. I want to leave my children and the children of America a legacy of more hope and more jobs and more opportunity and more freedom. That is what we are working on here. We have got to protect the family budget from the Federal budget, but we have to start today with this Deficit Reduction Act.
Mr. Speaker, I hope that we can come together. I hope we can work together as Republicans and Democrats and Independents and do something about this, because there is too much waste, there is too much fraud, there is too much abuse, there is too much duplication. The future can be brighter. It can be brighter for my children and your children and all children if we will only start today to save the family budget from the Federal budget by working on this Deficit Reduction Act.