Mr. Speaker, I am grateful to my friend from Arkansas, and I appreciate his yielding to me. I am about to say something that very few people in America know. Hardly anyone in Congress knows it. This is not a partisan comment. I am about to…
Mr. Speaker, I am grateful to my friend from Arkansas, and I appreciate his yielding to me. I am about to say something that very few people in America know. Hardly anyone in Congress knows it. This is not a partisan comment. I am about to reveal a document printed by this administration that received less distribution than the secret NSA domestic wiretapping activities of the administration.
This is a document that coincidentally was revealed sometime close to Christmas Eve last December. It is a document that was issued without a press release. There was no press notification about this at all. Instead of being like the budget that my friend from Arkansas showed, that was distributed to every Congressman, every Senator's office, with great fanfare, this document was distributed to fewer than 20 Members of the House and Senate. It probably went to about a dozen. It was mailed in. It was not noticed, apparently, by anyone.
And what does the document reveal? Well, first of all, this is it. When I called the Department of the Treasury, they laughed when I asked for multiple copies. This is the Financial Report of the United States Government 2005. This is the closest thing our Nation has to an annual report. Most Americans are familiar with those. All public companies are required to issue an annual report so that the shareholders can find out how the company is doing. Well, this is the annual report for America, and yet it was hidden in plain sight. Hardly anyone knows about this document.
The first page is signed by the Secretary of the Treasury, John Snow, and the first page reveals a pretty shocking fact. It reveals the fact that for all that Mike Ross was talking about, about our terrible debt and deficit situation, situations that are driving up interest rates and putting a terrible debt burden on the backs of our kids and grandkids, according to that green document my colleague from Arkansas held up, the deficit last year was $319 billion. That is a lot of money. That is ``b'' for billion, or ``b'' as in, boy, that is a lot of money. Well, guess what this document shows on its first page, signed by Secretary of the Treasury John Snow? The real deficit last year for 2005 was not $319 billion, it was, get this, $760 billion.
So there are two big questions here. Why did the administration try to hide this from Congress and the American people? Why was there no press release? Why did it receive minimal distribution? And, second, why is the Secretary of the Treasury so heavily at odds with another part of the administration, the Office of Management and Budget and the director there, John Bolton? How could one gentleman say that the deficit was $319 billion last year and another gentleman say it was $760 billion?
Well, the difference is this: the budget of the United States uses what is called cash accounting, and only the tiniest businesses in America are even allowed to use cash accounting. Why? Because it gives you a very distorted picture of a business or of a government. This annual report for America, the financial report signed by Secretary of the Treasury Snow, uses real accounting. It is called accrual accounting, and it keeps the books in a much more accurate way.
So I think most Americans would be shocked, as my colleague from Arkansas knows, that the U.S. Government, Uncle Sam, is keeping two sets of books. One has relatively good news, the other has terrible news in it. And guess what, they are trying to hide the second set of books from the American people.
I would encourage people to go to the Blue Dog Web site. We can allow you to download this document, or you can go to the U.S. Treasury Web site and download the document. It will not be obvious, though, on the Treasury Web site. It is pretty well hidden on that Web site. It is pretty clear on the Blue Dog.com Web site. So I would encourage people to check this out and see what it says in cold hard print and ask the logical question of why the President's budget is so radically and totally different from the document issued by his own Treasury Department.
I thank the gentleman from Arkansas for yielding to me.
I thank the gentleman for yielding, because there are probably some listeners who are confused about cash-basis accounting versus accrual accounting. The simplest way to explain it is this way. If you were to look at giant U.S. companies like General Motors or Ford, they would be just fine today if you look at them on a cash basis because they are generating cash. But if you look at them on a more accurate basis, the way the stock market does and the way investors do, you will see that a cash basis ignores future obligations. For example, for retirees, for health care, for other benefits and obligations that should be kept and that have to be acknowledged.
That is what accrual accounting does. And lest people be confused, accrual accounting is not cruel, the way it may sound. Accrual accounting is actually the most compassionate form of accounting, because cash-basis accounting forgets the retirees and the sick. Accrual accounting remembers them. And it is vital we remember all of our retirees and our sick because their health benefits matter, and we have to take them into account in this country.
I know the gentleman is about to show the rule for business. This is a tough rule, and I look forward to the gentleman's explanation.
Mr. Speaker, let me say amen to my friend's comments from Georgia. That was outstanding.
I have the pleasure of serving on the Budget Committee and this week, probably on Thursday, we will start marking up the budget for the United States of America. That is one of the most serious responsibilities that we could ever undertake. It is an incredibly complex document and process. You are talking about $2.7 trillion. You are talking about not only all the defense programs, you are talking about Social Security and Medicare and a world of other programs, parks, agriculture, you name it; everything that the Federal Government is involved in.
In the span of a few short hours, we will be able to offer a few amendments, and we try to do this on a bipartisan basis. It is hard, but let me report on what happened last year in last year's markup.
I offered a number of the Blue Dog amendments as part of our 12-point plan for reform. They were individual, commonsense measures such as, for example, getting a cost estimate on every bill here so we know the cost of what we are voting on; having a recorded vote so that the members of this body go on record when large amounts of money are spent. We were one of the first groups in the country to go ahead and require transparency for earmarks so the public, everyone, would know what individual spending items were being requested. But probably, most importantly, we favored domestic spending caps so budget spending could not keep going up and up, and a pay-as-you-go approach so expansion of government was paid for, so that this generation paid our obligations, so we did not saddle future generations, including our men and women in uniform, with these terribly burdensome debts.
I offered that last year in the Budget Committee markup. My amendment passed on a 19-17 vote because four brave Republicans were willing to cross over and endorse a commonsense measure like that. But then the chairman of the committee realized that common sense had prevailed, and he leaned over and twisted the arm of a freshman Member of Congress and forced that gentleman to change his vote right in front of everybody. So then it was not a 19-17 victory for our side and common sense, suddenly it turned into an 18-18 tie, and, under the rules of the committee, you lose on a tie vote.
That was as close as we came last year to getting some of these commonsense principles involved. Even most State legislatures have rules like the ones I am describing. Most Americans would be outraged to learn we do not have these rules here.
We are going to try a similar approach on Thursday. I hope we prevail, and I hope Americans will tune in to see what happens, because we do try to work on a bipartisan basis. The Blue Dogs are Democrats and we are proud of that, but we reach across the aisle.
In fact, tonight, most of the Special Order is devoted to revealing the Republicans' Treasury report, because they did not want it to get the publicity that it deserves. This is one of the most important documents of government, and I have yet to meet another Member of Congress who knew about the existence of this document. It has been required by law to be published for over a decade now. Senator John Glenn of Ohio was the first person to author a bill to get this done. The former Secretary of Treasury, Bob Rubin, and the Clinton administration, championed this document. Back then the news was good. We were headed toward surpluses, and we achieved surpluses. But in the last 5 years, this document has been buried deep underground. I think it is high time we brought it above surface.
Are those the famous FEMA trailers?
Who is living in those homes?
The gentleman makes an excellent point. I would like to challenge those who speak after us, if they even know about the existence of this ``Financial Report for the United States in 2005.'' I bet that no Republican in the House even knows this report exists, even though it is signed by the Secretary of the Treasury, it is an official U.S. Government document, and it reveals the true deficit for America last year as being $760 billion.
If my friend would put back up the Blue Dog debt and deficit sign, please, I think it is very important that people compare that. Those numbers are truly staggering, $8.2 trillion debt; and your individual share back home is $27,000 for every man, woman, and child.
But, guess what? That is the good news. If you look at this document from the Department of Treasury, guess what our real debt is? It is not $8.2 trillion. I wish it were. It is a staggering $46 trillion. That is an unimaginable figure, $46 trillion. That is an unimaginable sum of money.
But get this: every American's share, every man woman and child in this country, the share isn't $27,000 like you have on your sign; the share is $156,000 apiece. For every full-time worker's family, the share is $375,000 apiece.
Which is illegal for most every business in America.
Mr. Ross. Yet our very government, which uses a cash-base form of accounting, requires every business in America for the most part to use an accrual base of accounting.
This is real accounting, and people back home need to know that for every working family, it is a $375,000 obligation already. So what the gentleman is talking about, this $27,000, that is the price of a pretty nice car. This is the price of a luxury home. This is what every working family already owes to pay for the promises this Congress and this administration have already made for our Social Security beneficiaries, our Medicare beneficiaries, so many other good and worthy programs.
As my friend, the gentleman from Georgia, pointed out, today we are having to borrow most of this money from foreign countries. President Bush has borrowed more money himself from foreign nations than all previous Presidents in American history combined. That is a staggering thing to comprehend.
I appreciate the gentleman yielding.
Over twice as large as the administration will admit.
If the gentleman will yield for one more moment, the Director of Office of Management and Budget, Josh Bolton, says the deficit is only $319 billion; it is actually getting smaller, it is turning up. He says the President in just a few years will cut the deficit in half.
That is according to the cash basis. According to accrual, according to real accounting, guess what? The deficit is $760 billion, and getting bigger all the time. So it is going in the opposite direction from what Director Bolton says. So who do you believe, Director Bolton of the OMB, or the Secretary of the Treasury, John Snow?
I think the American people need to know that both of these documents exist, both of them are official U.S. Government documents, put out by the Republican administration; but this is the one they have tried to keep hidden from the American people.
Mr. Speaker, you know the 9/11 Commission did a great job in their report. It became a best seller. It was in bookstores all over America, because everybody in America wanted to find out what really happened on that terrible day.
You know, this is a lot like the 9/11 Commission report, because it is very readable, and it needs to be in every bookstore in America. And yet hardly anyone in Congress has seen it, hardly anyone in the Senate has seen it. Everybody needs to read this document, because it is the annual report for America.
It reveals the terrible truth that the real 2005 fiscal deficit for America was not $319 billion, it was $760 billion. And every living American worker already today owes $375,000 apiece. That is what this document says. It is not thick. If you do not find it in the bookstore yet, and it will be months probably before that happens, take it off the Web site.
Look at the BlueDogDemocrats.dot.com. If you do not trust our Web site, go to www.gao.gov, that is the Government Accountability Office, or download it from the U.S. Treasury Web site. But this is a truly startling and amazing document, and hardly anybody even knows it exists.
So I encourage folks not to take our word for it, go look at it yourself and see what you think about the fiscal finances of our country after you read this book.
Forty-one million dollars in an hour?
That much damage was done to our Nation's future just in 1 hour.
And that will continue every hour, every night.