Mr. Chairman, I look at our families in Texas, everything seems more expensive these days, whether it is getting your kids through school or paying medical bills or insurance or paying light bills; and it is tough enough for family budgets…
Mr. Chairman, I look at our families in Texas, everything seems more expensive these days, whether it is getting your kids through school or paying medical bills or insurance or paying light bills; and it is tough enough for family budgets to stretch as it is. I just cannot imagine why we in Washington would hand our families another tax bill for $2,700 for Texas families and expect them to like it, especially since we can balance this budget without that tax increase.
When I talk to our Texas seniors, the first thing they tell me is, please stop spending our Social Security money, quit spending the trust fund; that is our money. Yet, the Democrat budget spends that Social Security trust fund. The Republican budget for the first time in 40 years stops spending it, preserves it for Social Security.
When I look at small businesses, who are the backbone of our country and really struggle to make payroll, I used to be a Chamber of Commerce manager. I know how hard it is to meet that payroll. And 26 million small business owners, we are going to hand them another tax bill of about $4,000 on top of what they struggle today? That is just asking too much, especially when we can balance the budget without those tax increases, without taking senior's Social Security, and do it the right way.
That is why I respectfully disagree, strongly disagree with this bill and why we need to pass the Republican alternative. It makes much more sense for our families.
Mr. Chairman, on behalf of the ranking member of the Joint Economic Committee, Mr. Saxton, I yield myself as much time as I may consume.
A couple of corrections here. Let me make the point that the American economy is still one of the strongest in the Nation, in the world, the largest economy in the world. We have had 42 straight months of job growth. We have created 7.6 million new jobs under President Bush. We have low unemployment. And this was all done as President Bush inherited a recession as he took office.
I should make note that President Clinton inherited an expanding economy. President Bush inherited one that was slipping into recession. And you don't need to take my word for it. Joseph Stiglitz, the Nobel Laureate and President's Clinton's own chairman of the Council of Economic Advisers, observed the economy was slipping into recession even before President Bush took office.
So let's talk about the facts. Let's talk about this budget. I actually think it is a healthy thing that we are arguing over how to balance the Federal budget. That is something that ought to be a goal of both parties.
And, frankly, as a Republican, I am convinced one of the reasons we got fired from management of Congress is that we forgot to pursue a balanced budget. We forgot to limit spending. We forgot to try to look out for the American taxpayer.
I oppose this Democratic budget because it increases the Federal deficit by billions of dollars next year. It continues to raid the Social Security trust fund, and it does include the largest tax increase in American history. And that is not only fiscally irresponsible, it means a staggering $2,700 tax increase for our average Texas family of four.
Now, this budget will spend nearly $3 trillion next year, and we will impose almost $400 billion of tax increases to finance new Federal spending. If you look at what it does, it allows President Bush's tax relief to expire, bringing back the marriage penalty, bringing back the death tax, cutting the child tax credit in half, and raising the income capital gains and dividend tax rates.
And their budget, closer to home, next year it also kills the State and local sales tax deduction, which I and others on both sides of the aisle worked so hard to restore. That State sales tax deduction saves Texas families $1 billion annually, and they will see a new tax increase shortly after this holiday season.
And what is, I think, most absurd, I was listening to the chairman of the Budget Committee's discussion on shenanigans and I thought, I have not seen a bigger shenanigan in any budget in history than what is called the reserve account in the Democrat budget. What they say is, we will do tax relief for middle-class families, but we will pay for it with the reserve account. You ask, what is in the reserve account? And not a single dime, not a single dollar. It is as if someone said, here is a check for what I promise you, but the bank account is empty. I don't know if there will be money in it ever. I don't know how to put money in it. But, trust me, here is a check. Those reserve accounts are the biggest shenanigan.
And after years of criticizing President Bush for not eliminating or at least reforming the alternative minimum tax, the Democrat budget doesn't allow for even 1 year of it, which means an additional 20 million Americans will be hit by this growing tax next year.
I am backing an alternative budget, the Republican budget, that balances the budget in 5 years without a tax increase and ends the raid on the Social Security trust fund.
It seems to me tonight we have probably as clear a choice as we have had in many years between the Democrat philosophy of balancing the budget and the Republican.
The Democrat philosophy in this budget is, we will balance it, which is good for them. We balance it by increasing spending and increasing taxes on hardworking families.
The Republicans approach is, we will balance it a different way, by limiting the spending and by keeping the tax relief that families need. And there has never been a clearer choice.
And I think, too, I look at the promises that were made last campaign by
our new majority. We are going to reduce the deficit. Yet, under this budget, the deficit will actually increase $36 billion in 1 year, $36 billion. That compass is headed the wrong direction.
They said, we will stop spending the Social Security trust fund, but they spend all of it this year and in every year. And they say, we promise middle-class tax relief, but, instead, they provide tax increases on families and small businesses and single moms with children.
In a moment I am going to go through some of those tax increases which, frankly, as expensive as life is these days for most families, I know our families in Texas can't quite handle that big a hit.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield myself 1 minute to make the point that under President Clinton's watch we did have a strong economy. It turned out that much of it was false, based on the supposed paper accounts of Enron and WorldCom and others. Too many families woke up after the Clinton administration and realized that retirement fund they had counted on their whole life wasn't worth the paper it was written on.
And I will make the point, too, that after the attacks of 9/11, after this recession, after this administration handled the fallout of this recession, that we bounced back with tax relief that created 7.6 million new jobs in America. We are going in the right direction.
Mr. Chairman, I yield 5 minutes to the gentleman from Indiana (Mr. Pence), former head of the Republican Study Committee and one of our leaders on fiscal discipline.
(Mr. PENCE asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield myself such time as I may consume.
The gentleman does make many relevant points, just not relevant accuracies.
The truth of the matter is he claimed that the Democrats balanced the budget in 1994, but there was a $200 billion deficit in 1994. In fact, it was the Republican Congress that balanced the Federal budget for the first time after 40 years of Democrat leadership in Washington, D.C.
The gentlewoman from New York claims that manufacturing jobs were lost under President Bush, but manufacturing losses began in 1998, 1999, and 2000 under President Clinton's administration.
And while I agree with the gentlewoman that the $9 trillion debt is unconscionable, I will point out that in every budget that we passed in the 10 years that I have been here, Democrats voted against it because it was not spending enough. And the gentleman in front of me just said we haven't spent enough on Katrina, we haven't spent enough on education, we haven't spent enough on health care; yet they say we shouldn't be spending this much. And that $9 trillion debt, when I go onto their Web sites, when I look at the press releases on all the pork barrel projects, I brought home this highway fund, this university research, I brought home this special program, now, either they didn't support that spending or they are just claiming credit for that spending.
You can't have it both ways. You can't be fiscally responsible. You are spending too much. No, you are spending too little, and I am taking credit for what you did.
The fact of the matter is when we look at the Democratic budget, what we see is a massive tax rate, massive new spending, all in an effort, I think, to reclaim the title of the biggest government possible.
I try to explain this to my taxpayers back home and my families, what does this budget mean to you?
You look at an elderly couple in Texas with $40,000 income. That is where the husband and the wife is still working. Under the Democrat bill, this elderly couple in Texas, their tax bill would rise by $1,000 a year. That is a lot of money for a senior citizen and his wife.
A family of four with $60,000 in earnings, that is maybe a firefighter and a secretary, this bill would increase their taxes by $1,800. A family of four, which probably is struggling already to make ends meet.
For a single parent with two children and $30,000 in income, that is a single mom working in the local school district, under Republicans, at the end of the year she would get back almost $2,500. Under the Democrat tax increase bill, she would get $1,600 less.
I know in Washington $1,600 doesn't seem like a lot, but when you are a single mom working at the local school district with two kids, that is a lot of clothes, that is a lot of car insurance, that is a lot of medical bills for young people. This budget hands these families a tax hit that, frankly, they can't afford.
Taxes will rise, on the average, for 26 million small business owners by almost $4,000. That is a lot of payroll. That may be the only profit they make all year.
Then, by eliminating the lowest tax bracket, you are going to take 5 million taxpayers in America who didn't have to pay taxes, we are going to hand them a tax bill and say we want to do this so we can spend more in Washington. So that we can try to balance the budget on the backs of hardworking families in America, we are going to spend more.
What my Democrat friends have never figured out is, Washington has all the money it needs. It just doesn't have all the money it wants. It is time we know the difference.
I am supporting the Republican alternative, which balances the budget without this massive tax increase. In fact, there is no tax increase at all. For the first time in many, many years, it does not spend the Social Security trust fund, which is just critical.
Mr. Chairman, I yield back the balance of my time.