Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I agree with my colleague that the national debt is an important issue that needs to be taken seriously. I know for much of my lifetime, under Democratic control of…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I agree with my colleague that the national debt is an important issue that needs to be taken seriously. I know for much of my lifetime, under Democratic control of Congress, America begged legislators to balance the budget, but they went deeper and deeper in debt each year. I am grateful that when Republicans took control of the House that they worked with President Clinton to balance the budget, indeed, not just to do that but to start paying off the national debt.
It is terribly frustrating to me when I see the triple hit that America took, the attacks on 9/11 that cost us almost 2 million American jobs, when I see the recession President Bush inherited from his predecessor and when I see the collapse of our technology companies and the horrible actions of Enron and WorldCom and others that have given us such a triple hit to our economy; that made it so difficult. It took away so much of our revenue that we have been unable to balance the budget.
But let us be real clear about what this instruction does. It requires that these extensions, the child tax credit and the 10 percent bracket for people who do not make much and the marriage penalty relief to make sure we do not penalize people simply because they are married, it requires these extensions be paid for. In other words, the motion to instruct requires more than $130 billion of tax hikes or spending cuts. I know the spending cuts will not be supported by my colleagues on the other side of the aisle. This motion does not make the tough choices regarding which taxes to increase or which programs to cut.
The extension of family tax relief is already provided for in the House-passed budget resolution. That resolution would cut the deficit in half without raising taxes, and if we follow the House-passed budget resolution, this motion is not necessary. In contrast, the Democratic motion we talk about tonight is a zero sum game. It provides tax relief, on one hand, and then takes it away, takes it from families' pockets, with the other.
The House has already voted to extend this tax relief without raising taxes to pay for it. And if Congress does not act, families will face a tax increase next year. For example, next year, the $1,000 child tax credit drops to $700, which is tough on a family raising children these days. The 10 percent tax bracket, which helps folks who do not make that much money, will apply to less of a person's income. And the marriage penalty relief will provide less relief for couples.
There is a right way to tackle our spending and our national debt, and
that is to abolish obsolete Federal agencies, to cut programs that duplicate themselves and to go after the fraud in Medicare and Social Security. And the wrong way to tackle our debt is to raise taxes on hardworking families and parents and small businesses.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the best thing we can do to pay down the debt is to make sure we are keeping revenues coming in to the Federal Government. We do that not by raising taxes on families and small businesses who can ill afford it. We do it by getting this economy growing, by reducing the amount of spending and, in fact, doing away with the obsolete Federal agencies and all the programs that duplicate each other where we waste so many of our hard-earned tax dollars in Washington and in Federal programs.
The fact of the matter is, the reason we went into deficit is that the economy took such a hard hit. And I think we fought back the right way. When you look at the attacks of 9/11, when we look at the recession President Bush inherited and when we look at the WorldComs and Enrons that hurt so many of us with jobs, what Republicans in Congress did to fight back was to provide tax relief for families and small businesses and people who live on a retirement income.
Our principle was simple: If we want to create jobs in Kansas, if we want to create jobs in Texas, if we want to create jobs in America, then leave the money in Kansas, in Texas, in America, so it can turn around in our economy and so it can be spent on Main Street and so we can help families balance their budget and get this economy growing. And it is working.
Despite the three hits that would have knocked most nations' economies to its knees, by fighting back with tax relief for families and small businesses, we have created over 1.5 million new jobs this past year, more than 100,000 in my State of Texas. We are fighting back. We are not where we would like to be yet in today's economy, but the worst thing we could do for America's families and for their children is to prolong a recession by raising taxes on families and small businesses today. And that is what this motion does.
Mr. Speaker, we know that we do not get support when we try to cut wasteful spending. And when we try to lower the cost of our appropriation bills, my Democratic colleagues, with some exceptions, rarely argue that we are spending too much. Their argument is that we need to spend more. They want higher spending, not less. So I know this motion to instruct is not about reducing the wasteful spending in Washington; it is about raising taxes on families and small businesses who can ill afford it.
In my opinion, and I would think the opinion of the American public, what we can do for tomorrow's children is to get their parents jobs today where they are paying both their income taxes and their payroll taxes into Medicare and into Social Security. Because without an economy that is strong and vibrant, we will not have a recovery. We will not balance the budget sooner rather than later, and we will not put money into Medicare and Social Security. That, ultimately, is what will cost our children a death tax, not getting this economy going and stopping wasteful Washington spending.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself 30 seconds.
Mr. Speaker, I completely agree with the gentleman from Kansas that there is a shared desire to reduce this deficit, not only that but to balance the budget and start paying down the debt. The question is, how do we do it?
Do we raise taxes on small businesses and families or cut wasteful spending? My contention is, rather than raising taxes, we reduce the wasteful spending here. And I will gladly work with my colleague to do so, although there is a history against that, unfortunately, from his side of the aisle.
Mr. Speaker, I yield 6 minutes to the gentleman from Michigan (Mr. McCotter) who has been a strong advocate not only of cutting taxes for families but reducing the deficit and getting back to balancing the budget.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Two thoughts: one, I do not think it is responsible to try to scare our citizens with 9, 10, 14, 15 percent interest rate predictions when we know that is not what Alan Greenspan said. And I think even though it is election year and people take great pleasure in trying to doom and gloom the economy and scare average voters in America, I do not think it is the right thing to do.
Secondly, I do know that we can tell some things from the past. And while I believe my friend from Kansas is sincere about wanting to address spending as the right way to reduce the deficit, the fact of the matter is that earlier this year on three different occasions, his Democratic colleagues offered motions to pass tax relief for families and a child tax credit and all that, and in each case they did not offer any spending relief. What they offered were more tax increases.
So I say that this motion tonight, much like those other motions, its goal is not to pay down the debt by limiting and targeting abusive spending. What it desires to do is raise taxes. And I think the best way we pay down the debt and get back to a balanced budget to do the things that Alan Greenspan rightly said we should do, and I agree with my friend from Kansas, is not to increase taxes on families and small businesses.
We are recovering from a recession. We are trying to move dollars through that economy. It is working. I think the quickest way we can put a stop to this economy is to tax families and small businesses at this point when we are just coming out of it, doing a good job in doing that, fighting back the way we ought to with the principle of let us leave the money in the community, because at the end of the day, this philosophy really comes down to this: Is this your money or is this Washington's money?
I have more faith in people spending the money that is so hard earned. I believe we are an overtaxed Nation. I think getting this economy going, which Republicans and Democrats should share, election year aside, should share that dream. I think cutting wasteful spending, which Republicans and Democrats should share that dream, is the fastest way we can get back to a balanced budget and to pay down the deficit, which, again, I agree completely with my colleague. I believe he makes a great point on that issue and one that we can work together on.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Let us make two quick points here. The interest rates did not go down because we were paying off the debt. The interest rates went down because our economy slowed after three huge hits: the attack of 9/11 that cost us almost 2 million jobs, the dot-com and the Enrons of the world that damaged our economy so much, and the recession that President Bush inherited. The interest rates came down at the behest of Alan Greenspan to spur this economy, the very same reason we traded tax relief so that we could put people back to work so that money would circulate within our economy.
And the interest rates will not go up because we are in these deficits, as hard as we are fighting to get back down to a balanced budget. They will go up because our economy is improving, and the Federal Reserve Board will seek to not overheat this economy so that we create inflationary pressures. That is the reason why interest rates change.
But I still think the gentleman from Kansas is right in raising the issue of the debt and getting back to a balanced budget. He is exactly right. The question is how we do it. And I believe that the reason we have PAYGO for spending is that if we cool this economy too
soon in its recovery with more tax increases, we have damaged our children's future. If we keep the economy going and focus on wasteful spending where in Washington on average every Federal program duplicates five others, every Federal program duplicates five others. At a time of war and a time of deficits, we cannot afford that type of waste. And rather than raising taxes on families and small businesses, I think the right way to do it for our children's future and their parents who desire good jobs today is to not raise those taxes.
Mr. Speaker, I reserve the balance of my time.