Mr. Chairman, I thank the gentleman from Florida for yielding. You know, Mr. Chairman, there are some things we know about this budget proposal and some things that we don't know. We know that it raises taxes. We know that it raises taxes…
Mr. Chairman, I thank the gentleman from Florida for yielding.
You know, Mr. Chairman, there are some things we know about this budget proposal and some things that we don't know. We know that it raises taxes. We know that it raises taxes by a bunch. We know that it is about $100 billion a year, or half a trillion dollars over 5 years; that it raises taxes. What we don't really know is what taxes and for how much.
Now, the gentlemen across the aisle have indicated that it is their intention to raise taxes on those making $200,000 or more.
I yield to the gentleman from North Carolina.
Reclaiming my time, it is funny. If I am taxing you at 15 percent and then I tax you at 30 percent, I would think that most people would think that was an increase. I don't know how anyone would say that is not an increase. Four is more than three. Five is more than four. Thirty percent is more than 15 percent. Twenty percent is more than 15 percent. So you can call it anything you like, but it is in fact a tax increase.
So my question is for you, which you can answer later, but have you done any computations as to how you are going to tax?
I would like to finish my remarks at this time, if I could, thank you.
How you are going to tax people with $200,000 or more income? What rate are you going to go to to raise this kind of money? So we know it is going to tax a lot. We don't know exactly how. We also don't know, because we don't know exactly how, what effect that is going to have on the economy.
We can talk a lot about tax increases and so forth, but the fact is that since the tax decreases of 2003, revenue to this government has increased substantially. We are tracking nearly a 12 percent increase this year after a 15 percent increase last year, and the rate since 2003 of increased revenues to the government is substantially higher after the tax rate reduction of 2003 than it was after the tax increases of the early 1990s.
You might find this hard to believe, but that is the way economics works. Sometimes when a business lowers the price of a product, people buy more of it and they actually make more money.
What has happened here is exactly that. We have lowered taxes, and the economy has increased, the economy has grown, and more total dollars are coming into the Federal Government. So we know taxes will be increased, but we don't know how much this is going to depress the economy. But it will.
Therefore, even though you may increase taxes at the rate of $100 billion a year, you will not see $100 billion a year revenue, because we know also the computations show that the tax decreases we have had already actually resulted in increased revenue.
The other thing we know that it does is it spends more money. The gentleman from Virginia outlined a bunch of things, most of which sounded to me as though it was discretionary spending increases, I believe, which means that if I am doing the math correctly, we are looking at discretionary spending increases of about 7 percent just in one year, 7 percent every year, which, if you keep that going with the entitlement increases which are already there, and there is no entitlement reform to deal with those, it is so perplexing to me that you introduce a budget on the basis of it being fiscally responsible and balancing, and then you propose to increase spending along the way, and increase spending by as much as 7 percent a year on discretionary spending.
That is not how you balance budgets. That is not how you get things back in line, by increasing spending.
Also, there was a discussion of smoke and mirrors. Well, the other thing that was included in the committee's budget was a reserve for natural disasters, which I believe you now have added to your budget here just recently, but there is an additional reserve we have for the war, the prosecution of the war in Afghanistan and Iraq.
Now, you may not agree with that war, and that is not the issue we are discussing today, but even if you were to terminate, decide you were going to immediately withdraw from both Iraq and Afghanistan, there will be additional supplemental expenditures going into next year even to do that. So by not including that, you are not including some additional spending, which is going to happen and is not included in your budget which is included in the committee's budget.
So, in summary, I think we are looking at higher taxes, less economic growth, more spending, and I would argue, when computed properly, higher deficits.
Mr. Chairman, if this budget levels with the American people, then level with the American people and tell them what taxes you are going to raise. Tell them who you are going to raise it on, tell them how much you are going to raise it.
Sir, I am only taking a minute and a half. You can respond at that time, because I have several other questions.
Tell them who you are going to raise it on, what rates they are going to be and what effect those are going to have on the economy.
Again, level with the American people on whether or not the spending that you have added to this thing increases the deficit or not, and level with the American people about whether or not you have accounted for the wars in Iraq and Afghanistan that are still going on, and level with the American people about whether or not you have included any reform of the entitlement programs that will soon eat up two-thirds of our entire Federal revenues and eventually eat up 100 percent of our Federal revenues; and level with the American people that that tax cut that the President just signed today, that increased time of those tax rates, has increased the economy in the United States and resulted in more revenue to the Federal Government and thereby reduced the deficit.
Mr. Speaker, what I hear here and what I see here are four things: tax, spend, smoke, and mirrors.
Tax. We have seen, we have heard half a trillion dollars over 5 years, massive tax increase as yet not clearly defined, but a massive tax increase nonetheless.
Spend. Spending, that is, nearly a 7 percent increase in discretionary spending, that sort of spending which is unsustainable over time without constantly accelerating tax increases. So spending supposedly as the way to get us out of the deficit.
Smoke. Smoke to hide those things which are not addressed in the budget, such as the spending necessary for the war in Afghanistan and Iraq, and to deal with the ever escalating entitlement spending that we have going forth.
And mirrors used to make all of this look like somehow it is going to reduce the deficit over time, which I assure you, with the reduction to the economic growth that this will do and the additional spending that is in here and the lack of reform on any of that spending, I absolutely assure you, reducing the deficit is one thing this budget will not do.
Mr. Chairman, I tried to keep track on my paper here of how many times the opposition to this budget proposal used the word ``cut,'' and I ran off the edge of the page. It is 30- something or 40-something times they used the word ``cut.''
The truth is, this budget that is before you increases spending every single year. Let me repeat that. This budget increases spending every single year. Increasing is not a cut. When you go from three to four, that is not a cut. It does not increase spending as much as the current rate of increase, which is unsustainable over time, which is why this is such a responsible budget.
It also does not increase taxes and does not depress the economy in the way an increase of taxes would do, but it does balance this budget in 5 years in the only way we know we can do it; without smoke and mirrors, without any games, by simply spending within our means.