Madam President, this Nation is in the midst of a serious and defining challenge. Every single day we are buried in the news of our economic turmoil. Thousands more are being laid off, foreclosures are reaching new highs, property values…
Madam President, this Nation is in the midst of a serious and defining challenge. Every single day we are buried in the news of our economic turmoil. Thousands more are being laid off, foreclosures are reaching new highs, property values are dipping to new lows, more businesses are shutting their doors, and Americans are struggling to pay for life's essentials. Consumer confidence is tragically low, and Congress has not acted appropriately to make things better. If this is not another Great Depression, it is surely greatly depressing.
Instead of innovative policies that put more money in the hands of consumers and create incentives for small business growth, we are passing trillion-dollar and multibillion-dollar spending bills as if we are in a race to spend money as quickly and as recklessly as possible. It is time to say hold on. It is time to seriously consider what we are doing, what the impact will have, and how we are quickly driving this Nation off a financial cliff.
For as long as living standards have been recorded, Americans have looked to the next generation as an improvement over the last generation. Opportunities, living standards, and conditions have improved. Technology and research have advanced. There is hope that our children will have more, that it will be even better for them. The optimism that has been uniquely American has always driven us to want more for the future generations but, unfortunately, that has changed. Now we are
becoming accustomed to taking more from future generations. We are digging ourselves into greater and greater debt at an alarming and an unbelievable rate. We are spending obscene amounts of money today without thinking about who will pay for it. This keeps falling on deaf ears, but it is our children and our grandchildren who will be stuck with the bill.
I know some of my colleagues like to ask: Where was this concern over the last 8 years as the deficits kept rising higher and higher and higher? Rest assured, there has always been a dedicated group of us beating this drum of fiscal responsibility. My question is, why aren't my Democratic colleagues listening now? They can keep blaming the policies of yesterday while this happens, or they can step up now, as more and more of my colleagues have, to demand an end to this selfish spending addiction.
Alexis de Tocqueville once observed that America was made great because of its good and moral people. How good and moral are we if we are so committed to this immediate gratification that we are willing to jeopardize the potential of our children and our grandchildren? If we continue to spend at the rate we are, our children, and even some of us, will be facing tax bills as high as 88 percent. If you think we will still be the land of opportunity with that kind of tax rate, you are wrong.
When I speak to high school students today and tell them they may be facing tax rates as high as 88 percent when they start working, they become speechless. You can see the disbelief and the fear on their faces. It takes a lot to really throw off teenagers these days. Forget doing better than their parents. They won't have a fighting chance at any level of success while bearing this kind of a tax rate burden.
We cannot afford to let selfishness absorb our purpose of life. Once that takes root in our policies, as we are seeing right now, the great experiment of this democracy will be closed and ready for the history books.
Instead, we need to refocus. We need to refocus our efforts on another very American concept--that we are each in control of our own destiny. That means we keep more of our own hard-earned money because we know best how to spend it or save it or invest it. We don't just throw all of our money to the Government and let them choose one cause they believe is better than another cause. That has never been the American way.
Unfortunately, the Obama administration is taking a huge step away from this concept with its effort to knock down charitable groups at a very crucial time. Non-profits around the country are feeling the pain of this economic recession today, and they are serving more and more people and are having a harder and harder time raising the funds they need to address these increased needs. It is a horrible situation. To make it worse, the Obama budget seeks to reduce the tax deduction that donors can take for their contributions. Studies show that this type of change will discourage almost half of those people from making charitable contributions.
The outrage from the non-profit world in Nevada and across the country has been loud and clear. Groups across the spectrum--education, health care, food banks, rehab, et cetera--have all been stunned by this attack on their missions.
Charitable groups have come face to face with an administration that wants to spread the wealth by spending more money on government solutions to education, health care, hunger, and other services.
Unfortunately, the administration's budget is saying to these groups, who work tirelessly in the communities to improve the quality of life of the citizens, that Government knows better and can do better. I believe, as many others do, they are wrong on this point.
I hope more of my colleagues and more Americans will join me in expressing outrage over the Obama Administration's efforts to decrease the charitable deduction for certain taxpayers.
For all the campaigning the President did on transparency in Government spending, he is going to have an awful lot of trouble masking the intent of his budget. It is full of tax hikes that will stifle future growth and knock the wind out of the middle class.
Benjamin Franklin once said:
It is a maxim that those who feel, can best judge.
Well, the American people are feeling a great deal of pain right now. They are in a perfect position to know what will best improve the economic situation they are facing, and it is not tax increases.
While President Obama has promised not to raise taxes on families who earn less than $250,000 a year, a proposal called cap and trade will certainly result in people paying more for everything that takes energy to produce--obviously including their electricity bills. This is an indirect tax on all Americans.
This is a quote from last year by then-candidate Barack Obama:
Under my plan of a cap and trade system, electricity rates
would necessarily skyrocket.
He is admitting electricity rates will skyrocket under his plan of cap and trade. Does he really think Americans can afford that right now? This is a violation of a campaign promise, just like the one made by the first President Bush when he said, ``Read my lips.''
Energy Secretary Steven Chu explained earlier this month that because higher prices are supposed to motivate changes necessary to reduce carbon energy use, climate taxes may drive jobs to countries where costs are cheaper. I didn't realize our country was in a position right now to drive jobs overseas. I know lots of Americans who are looking for jobs right here, right now.
People seem to think they have discovered a pot of gold, but that money comes out of the pockets of American families. This is a tax we will all pay--rich and poor. The average annual household burden will be a little over $3,000--and that is on the low end of the estimate. How many families do you know right now who can handle an additional $3,000 a year? And because it is a regressive tax, lower income families will actually be hit the hardest.
Compare this to a Making Work Pay tax credit that is supposed to help working families by using money from the new climate tax. Individuals, under the President's proposal, will get $400 per year, with a phase- out at earnings of individuals earning $75,000 a year.
I ask unanimous consent for 3 more minutes.
Families will get $800, with a phase-out of earnings of $150,000 a year. I am pretty sure that if we ask most families whether they would like to get $800 in return for paying over $3,000, they would tell us to just skip the whole exercise. In that respect, the American public is smarter than many folks in Washington.
What will Washington do with the excess money this bill generates? We know what it will do: it will spend it, of course.
Not to worry, President Obama's budget provides targeted tax increases as well--targeted at small businesses that are responsible for a significant amount of the job creation in this country. Top tax rates on small businesses are going up under President Obama's proposed budget. The lower rate is 33 percent now, and under his proposal it will go to 40 percent. On the highest end, right now, it is 35 percent, and that will go to 42 percent.
History and research have shown that raising taxes on businesses depresses investment. It is not surprising that lower taxes on businesses increase employment and wages. It seems like a no-brainer. But in this new area of Government command and control, rather than personal responsibility, President Obama is opting to increase people's taxes--especially on those who creates jobs--in order to pay for a larger and more intrusive Government.
This tax, the President has said, only affects 3 to 4 percent of the small businesses out there. This chart refers to the fact that about half of the small businesses, with 20 or more employees, are eligible for the top tax rates I just pointed out.
This is the important point to make: these small businesses that will be hit by this tax create two-thirds of the jobs in America, and we are going to raise their taxes. That doesn't seem like a bright thing to do, especially
with the economic position we are in today. My home State of Nevada has been led by small businesses. We have led the country for many years on the percentage of small businesses creating jobs. We really can't afford to have small business taxes increased in my State, nor in any other State across the country.
Going back to the wise words of Benjamin Franklin, the American people are feeling the pain of this economy. They elected President Obama because he campaigned on a slate of ``change.'' I don't believe this is the change the American people signed up for: reckless and endless spending, higher taxes on small businesses, increased energy costs for all families, fundraising hurdles for charitable groups, and a devastating national debt. The list goes on and on.
Madam President, this is the President's budget, and it is a recipe for disaster. We need to come back to the idea of personal responsibility and letting families and businesses have more of their own money to make the kinds of decisions and investments that will drive prosperity in America.
I yield the floor.