Mr. Speaker, I used to talk about the debt of the Nation and the deficit in terms of what we were doing to our children and grandchildren. I called it a generational mugging on this floor last year. That is still the case. We are still…
Mr. Speaker, I used to talk about the debt of the Nation and the deficit in terms of what we were doing to our children and grandchildren. I called it a generational mugging on this floor last year. That is still the case. We are still mugging our children and grandchildren with debt that we are unwilling to pay and we are unwilling to stop spending for our own convenience and our own purposes, so that is still true.
But I used to say also that I wanted everybody under the age of 30 to listen to me because they were going to be directly affected by this reckless economic plan that we are engaged in here. Then I moved that up to age 40. Then I had to move it to age 50.
Now with the knowledge that this government borrowed $111 billion in the first quarter of this year alone, I want to speak to every American who is alive and well and paying taxes because what is happening is we are engaged in a long-term structural tax increase on me and you and everybody that lives in this country because we are unwilling to rein in our appetite for tax cuts and more spending.
Just to pay the interest on the first quarter borrowings this year alone will require an additional $4 billion next year. When you go to write a check to the Internal Revenue Service next April 15, you will be paying your part of an additional $4 billion just to finance the interest cost on the borrowings of one quarter this year.
I spoke to the American Hospital Association's convention here in town about 3 weeks ago. Everybody in this country knows the demographics of our population. We are growing older. There are more and more senior citizens as a percentage of our population. And everybody knows what that means to our medical system, Medicare, Medicaid and the rest. I told them, as long as we continue to engage in this economic pattern of borrow and spend, we are just rearranging deck chairs on the Titanic. The iceberg in this economy is the national debt, because it is going to soak up in the form of interest payments to service that debt all of the new money that comes to town.
Last year we had a Federal income, if you want to call it that, of $1.8 trillion. Of that, we paid or accrued interest of $332 billion. We actually wrote checks for about $185 billion. A third of that went to foreigners, because they are the ones that are buying the Treasury auctions of bills, notes and bonds that take place in this town every 2 weeks. This is an unsustainable economic path that this country is following. There is no way, and let me repeat, no way that we can borrow the kinds of moneys that we are borrowing and grow our way out of it.
The reason I say that is because if you do the math, last year, 18 percent of the money that came here went to either pay interest or was accrued to other government trust funds, primarily Social Security. An 18 percent mortgage, as any businessperson knows, is something that cannot be sustained over the long term. There simply is not enough new income, regardless of growth, to take up the slack and to service the debt that we are building. And so I am more concerned about this than I guess I am almost anything save the security of our Nation and the people that live here from the various terrorist groups that we know of around the world, al Qaeda and the rest. But we are building a
long-term structural tax increase under the guise of a short-term tax cut.
Everybody in this country knows there is no free lunch. Every time you hear people say, we are going to cut taxes and that will create jobs, to some degree that is true; but it depends on the kind of tax cut. I do not know if any of my colleagues have heard Warren Buffett; but he wrote an article that was, in my judgment, excellent about the kind of tax cut that the Senate put together this week and the kind that will be discussed in the conference committee. He said basically this: to cut taxes in the way that is fashioned around here and sunsetted in 3 years is ludicrous if one wants to argue that that is stimulative and will create jobs. If we really wanted to do that and we are going to spend money we do not have, rather than a tax cut that benefits primarily people who hold paper that will pay a dividend on, if we really wanted to do that, we would invest in some public work jobs that would do two things: one, additional spending for homeland security on our harbors, on our railroads and on those targets that we think the terrorists are after. That would do two things, create jobs, number one; and, number two, and more importantly perhaps, make our country safer. That would be the way to stimulate the economy if we wanted to go down that road.
But the second thing we ought to do, in my judgment, is realize that when one cuts taxes and has to borrow the money to make up the income lost to the government, we are experiencing short-term gain, but we are putting in place long-term pain. There is no other way to look at it. The interest charges alone next year will approach $350 billion. That is with interest rates low. If interest rates suddenly spiked up and as the government rolled over its debt, we could be paying 4, 5, perhaps even $600 billion a year in interest on past consumption before we ever get a dime available for a world-class military, for health care for the people of this country, for education and investment in human capital.
All of these things directly affect us. When people say deficits do not matter, then you better question what they are saying because they have not factored in the carrying charges on this massive amount of debt that has been created here in the last 24 months. As the gentleman from Florida (Mr. Boyd) said, we have been asked to raise the debt ceiling, the amount of money the government can borrow, by $1.43 trillion in less than 12 months. I do not care what kind of economic theory you subscribe to, supply side or anything else, that is unsustainable. There is no way that this economy can generate that kind of growth in order to service that kind of debt.
I want to thank the gentleman from Indiana for having this Special Order tonight. I do not know what else to say about it, other than I wish the business community would at least pay some attention to what we are saying. There is no businessperson that I know of in this country, certainly they will not be in business long if they do, that would follow this kind of economic plan. Why, then, would you expect those of us who you entrust with the public's business, which is your business, why would you want us to do something that you would not do in your own business? That is exactly what people are asking us to do. It makes absolutely no sense to cut your income with borrowed money, then piling that much debt on and interest will start on it tomorrow. That is why I said, I used to say we are passing it on to our children and our grandchildren. That is still true. But now we are passing it on to ourselves. It is irresponsible. It is reckless.
Just one more thing. The morality issue here of borrowing money for people in my generation to take a tax cut, give the bill to the young men and women in uniform and their families who just fought over in Iraq, when they get home, they get a bill with interest so we could take a tax cut. There is no honor in that kind of behavior. I said that on the floor some weeks ago and I say it again. There is no honor in this House what we are doing. There is no honor in this building in what we are doing to the men and women in uniform. Not since the War of 1812 have noncombatants in this country not been asked by the administration, by the President and the Congress to help pay for a war that others fought for them and in their stead and on their behalf, and that is exactly what is happening here. You can color it any way you want to, but it is what is happening; and there is no honor here in what is going on.