Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, are we in morning business? Mr. President, I wished to come to the floor this evening to join a number of my colleagues from both sides…
Mr. President, I ask unanimous consent that the order for the quorum call be rescinded.
Mr. President, are we in morning business?
Mr. President, I wished to come to the floor this evening to join a number of my colleagues from both sides of the aisle who are concerned about the Federal budget and our ever- increasing deficits and debt.
But today I am also speaking on behalf of the 4.5 million Coloradans who are worried we will not have the discipline to do anything about it. They know our great Nation will not win the global economic race unless we take some responsible action on the floor of the Senate and soon.
I have to say, I do not think the debate we have been having offers them a whole lot of solace. I say that because instead of getting to work on the bipartisan Gang of 6 deficit reduction plan, which draws from the President's bipartisan fiscal commission, headed by--I have to say this--two true American patriots, former Senator Alan
Simpson and North Carolinian Erskine Bowles, instead of getting onto that plan and the substantive proposal it makes, we are debating what looks to be a bumper sticker campaign gimmick called cut, cap, and balance. I have a hard time even saying it.
But I have to say, I have spent a good deal of time analyzing budget tools. After all, I was one of the first--and one of currently only a few--Democratic Senators who signed on to a balanced budget amendment to our Constitution this Congress.
I have also been fighting for many years for other smart budgeting tools, including pay-as-you-go budgeting, a line-item veto, and a ban on earmarks, which would help reduce waste and rein in Federal spending.
But let me be clear that cut, cap, and balance is not about balancing the Federal budget because when we read the bill, it becomes clear it is simply about ideology. While the name of the bill seems reasonable enough--it is conveniently designed literally to fit on a bumper sticker--the language of the bill does not represent a balanced approach to deficit and debt reduction, and for that reason alone I cannot support it.
As I said, I have supported the idea of a balanced budget amendment, even though a number--maybe I should say most--of our caucus has opposed the idea. However, the balanced budget amendment contained in cut, cap, and balance is not about balance. It is about locking in--if we look at it--special interest tax breaks for corporations and the wealthy, which would then force Draconian program cuts that would harm our Nation's middle class, not to mention the most vulnerable in our communities all across our country.
I have to say, this is not a balanced way to pursue deficit reduction. It makes a balanced budget nearly impossible to achieve when we get into the guts of this idea because it ties literally one hand behind our back by preventing the Congress from closing wasteful special interest tax breaks.
In addition, the bill in front of us holds the increase in the debt limit hostage. The debt limit needs to be raised by August 2 to avoid a first ever government default on our debt obligations. Cut, cap, and balance dictates that the debt limit cannot be increased until Congress approves a constitutional balanced budget amendment.
Even if one is the most optimistic person in the world, a scenario for passage, ratification, and implementation of a balanced budget amendment shows it is unlikely to take effect for at least 10 years--10 years--not 10 days, 10 years.
I have always maintained that a balanced budget amendment to the Constitution--which, again, I wish to mention I support--should be a backstop put in place only after we have made the tough decisions about reducing our spiraling deficits in the here and now.
If we were to tie our Nation's obligations to pay its bills to the passage of a one-sided and partisan balanced budget amendment, that would be bad enough as it is. But cut, cap, and balance would also lead to severe--severe--cuts in Social Security and Medicare, and it would actually lock in billions of dollars in tax breaks currently in our Tax Code which benefit the wealthiest citizens as well as Big Oil and corporations that have spent decades shipping jobs overseas.
This is such an egregious proposal that I have a sneaking suspicion it was not actually designed to pass the Senate. I believe it was designed to be a campaign gimmick because it certainly does nothing to address the problems we face right here and now, which is the looming default of our government, the U.S. Government.
Let me be clear--and I think the public has begun to understand this--raising our debt limit is not about future spending or paying for more government; it is about paying our previous bills. Business leaders, economists, rating agencies, and especially Treasury Secretary Geithner have told us our credit rating, were we to default, would take years to rebuild and that our country would never be the same if we were to default on our debt.
You know this, Mr. President. You are a businessman. We cannot ask for a do-over, a mulligan, if we default on our debt. We cannot say: Oh, we were just kidding. This is truly the real deal.
I wish to share some ways we would be directly affected by a government default. Paychecks for soldiers in Afghanistan and Iraq and at bases around the world conceivably would not go out. FAA towers could shut down. Border crossings could close. Operations at the FBI and the CIA would be put at risk. Safety inspections of the food we eat and the cargo that enters our ports could halt.
The resulting spike in interest rates would ironically make our debt even harder to tackle because each 1-percent rise in interest rates alone would result in $130 billion in increased interest payments on our national debt each year.
Perhaps most important, hard-working American families would also feel the crunch. A spike in interest rates would effectively force a tax on all Americans and American businesses due to increased consumer costs. As important, failure to raise the debt limit would lock up credit markets because the United States would no longer be seen as a reliable credit risk.
Coincidentally, yesterday, an important consumer protection law, which Senator Lugar and I introduced and passed--and the Presiding Officer helped us with on the floor last year--went into effect. It provides Americans with free access to their credit scores, which is so important to understanding their own credit risk.
FICO--this is some good news in a day that has a few dark clouds hanging over it--FICO has estimated as many as 500 million credit scores will be given to Americans for free each year because of this important bipartisan law.
In working on this legislation, I learned a lot about credit scores: what they mean, how they are calculated, and how critical they are to economic success. But--and I am tying this back to our discussion today--it got me wondering, what would America's credit score look like if we defaulted on our debt? Nearly two-thirds of a credit score is based on an individual's total debt and payment history.
So here is how I think our great Nation would score if we do not raise the debt limit by August 2. We all know our debt is spiraling out of control. That is demerit No. 1. But if we now also are unwilling to pay our debts--demerit No. 2--we will be left with the credit score of a deadbeat.
I do not think that is the way we see ourselves or want to see ourselves in the 21st century's global economic race. We want to be at the head of the pack. We want to win that race. But to see ourselves as a deadbeat, that is not what America represents to me. It certainly is not the way Coloradans see us.
The people see this very clearly. They are ahead of us. They understand the risks we face. I wish to share a couple letters that Coloradans got into my hands just this last week.
Sarah Jane wrote me last week, and she was to the point. She said:
Dear Senator, I am furious about the games being played
with the debt ceiling. This is really abusive to this
country.
Another Coloradan, Nicholas, sent me an e-mail that said:
Dear Senator Udall, Republicans are calling for big cuts to
vital programs and refusing to increase revenue. This is
lunacy. As a native Coloradan, I and most others here work
for a living. We don't own yachts, planes, or mansions. The
thought of Republicans gutting the social safety net in order
to prevent millionaires and billionaires from paying a little
extra tax makes me wonder what we really value in this
country.
I could not agree more. We have some tough choices to make, but some Members of Congress are so lost in their ideological rhetoric that finding an agreement on our deficits and debt seems out of reach. It feels to me--I truly do not want to say this, but it feels to me as if some of our colleagues would be perfectly fine with shutting down the Federal Government out of the belief it has grown too large. They believe a catastrophic shock to the system is the only remedy.
But I have to say, our fiscal imbalances are not caused by the things they keep saying they want to cut. Foreign aid, Federal salaries, and other programs are a tiny percentage of overall spending. In fact, Appropriations Chairman Inouye, the dean of the Senate, the President pro tempore of the Senate, noted last week that ``in constant dollars, adjusted for population growth, non-defense discretionary
spending is at the same level in Fiscal Year 2011 as it was in Fiscal Year 2001, when the Federal Government ran a $128 billion surplus.''
The fact is, our fiscal imbalances are caused by three historical irregularities: record low revenues, an increasingly aging population, and heightened security needs in the wake of September 11. They each demand thoughtful and balanced solutions, and only a bipartisan deal will get us those balanced solutions.
I have to say, no matter how much bloated rhetoric we hear, there is one simple fact; that is, we are all in this together. But it seems to me often--and unfortunately--we are in the same canoe paddling furiously upstream away from the waterfall behind us off our stern, but half our crew has thrown their paddles overboard in protest.
I do not get it. I do not understand it. What is so agonizing is that we have a bipartisan solution right in front of us. As I mentioned at the beginning of my remarks, I was thrilled to see the Gang of 6 this week report a responsible, balanced, and very bipartisan agreement. I do not agree with every aspect of it. I do believe, however, that the plan would responsibly reduce our debt and protect our middle class, while also allowing our economy--not only allowing but incenting our economy to grow.
This plan has already received bipartisan support--not just here but across the country. It is my feeling rather than arguing we ought to be acting on those recommendations. Many of us just want to get to work. It is hot here. We have taken our jackets off and can roll up our sleeves. I know there are Members on both sides of the aisle who share that sentiment even if others here are demanding they remain quiet about it.
There is no question that the fiscal challenges in front of us demand a bipartisan solution, but the clock is running, the sand is rapidly running out of the hour glass, and we have to get to work on making the necessary changes to get our fiscal house and its foundation in order.
Frankly, some issues should rise above partisanship, politics and campaigns--our country's economic and national security. By the way, the two are linked. Secretary Gates and Admiral Mullen--the Presiding Officer and I serve on the Armed Services Committee--made it very clear that they see one of our biggest threats as the country's fiscal situation. A broke country is going to be a weak country. So our economy and national security fall in the category that ought to be above politics and partisanship.
Cut, cap, and balance is wrong for our country. It represents more divisiveness, way too much gamesmanship, and more politics. Let's listen to our constituents. I shared letters from two of them from my State of Colorado who are pleading with us to get to work and focus our attention on the sensible, bipartisan Gang of 6 plan.
Let's combine it with a debt limit increase to ward off default and work together and pass it into our laws before our national credit rating is downgraded and it damages our chances of winning the global economic race.
That is what Coloradans are expecting of me, and that is what I expect of the 100 of us who are so fortunate enough to serve in the Senate. I am not being dramatic. I am not a particularly dramatic individual. But I have to tell the Presiding Officer and my colleagues that I think nothing less than the fate of the U.S. economy hangs in the balance.
I am willing to stay here day and night, weekends, holidays, to help put a long-term balanced and bipartisan plan in motion.
I yield the floor.