Mr. Speaker, I appreciate that our majority has set up this Special Order hour and those of us in the minority have the opportunity to come to claim this time and to talk about issues that are of tremendous importance to us. Over the past…
Mr. Speaker, I appreciate that our majority has set up this Special Order hour and those of us in the minority have the opportunity to come to claim this time and to talk about issues that are of tremendous importance to us.
Over the past few weeks, some of my colleagues and I have come to the floor on a weekly basis, and we have talked about the Federal budget and what you find in the Federal budget. And, Mr. Speaker, we think that this is a very important thing to do because the budget that the majority has brought to us this year is a rather large budget and it contains the single largest tax increase in history.
So we have spent some time talking with our colleagues and with our constituents about what you actually find in this document. Now, we have called this ``Budget School: The Right to Know How Washington Spends Your Money.'' And, of course, as each week we have talked about this, you can go to the whitehouse.gov Web site and go to OMB and pull down a copy of that budget. Then you can get the Republican response from budget.house.gov/republicans and see what we would do, how we would go about reducing the taxes that you pay and making certain that you, the taxpayer, are keeping more money in your budget.
Now, if you want to watch some of the sessions that we have had on Budget School, you can go to house.gov/blackburn, and there are some Budget School resources there. One of the resources that we have used is the Basics of the Budget Process briefing paper. You can go to the Budget Committee Web site, budget.house.gov/republicans, and be able to get a little bit of information about how we actually go through this, how you look at the different functions of the budget, where you find those, looking at the size of the budget, being able to follow it through, looking at the timeline of the budget and how it goes through the process of the President's presenting his budget, then its going to the committee, how the committee works through the process, brings it to the floor, and then this summer as we start through appropriations and through the earmarking process. And we're going to be back to talk about that part of the budget, the earmarks, as we get into the summer.
Tonight as we talk about process and what has actually happened, I want to welcome to the floor and to this session of Budget School the ranking member, and the ranking member of the Budget Committee is our number one Republican on the Budget Committee, and this is the gentleman from Wisconsin (Mr. Ryan), who is known for being one of the top fiscal conservatives in the U.S. Congress. And I am delighted that he has joined us for Budget School. He is a leader in the Republican Study Committee and a leader on the Budget Committee.
I yield to the gentleman.
If the gentleman would yield, I would like to go back to this poster for just one moment.
So what I am hearing you say is you all worked through this process in Budget Committee. And as the budget document came to you from the President, and then you worked it through committee, this is the resolution that the Democrat-led majority came to in that committee, that they didn't want to have a budget that stressed priorities. They didn't want to have a budget that was going to lessen the burden on the taxpayer. What they wanted to do was have a budget that was just going to keep the focus on spending and taking more out of the taxpayers' pocket.
And in order to get to their number, their desired number, the $683 billion tax increase that's going to take place over the next 5 years, what they are willing to do is to have those income tax rates go back up, the marginal rates go to 39.6 percent, which will affect so many of our small businesses.
And as you so rightly stated, 70 percent of all the jobs in the country come out of the small business sector. Capital gains, which are very important to our senior citizens, those that are living on retirement income, who have worked hard, who have built a nest egg, who have saved, we are going to
see that go up to 20 percent. The death tax is one of those taxes that I think is so egregious because you acquire something, you pay tax. You earn the income and you pay tax. You make an acquisition and you pay tax. You maintain it and you are paying tax. Then if you have a capital gain, you pay tax. If you put that aside so that you're leaving something for your family, the government reaches in, the IRS reaches in one more time after you're gone and takes it again. And that is going to go to 55 percent.
For staying married, you are going to end up paying $1,400. You will go from zero back up to $1,400. Your child tax credit, in the meantime, is going to be cut in half. And then that 10 percent bracket, that lowest bracket for those that are working and need to have a break, the government needs to give them a break, they are going to raise that back up to 15 percent. And that is the resolution that the majority chose to move out of the Budget Committee.
I thank the gentleman for his leadership at the Budget Committee and for being there in the fight on this, to make certain that we bring forward these issues, to point out that we are focused not on immediate gratification when it comes to this, not on saying yes to pork-barrel projects. We are focused on the long-term, what is the legacy going to be.
As you pointed out in your charts, by the time we get to 2030, it is going to take every dollar of our existing tax base to cover Social Security, Medicare and Medicaid. That is it. I mean, it will just be the entitlements that get covered.
And for our children and grandchildren, if you were to take a dollar and extract 40 cents out of that, and there again, that is just the Federal Government portion, it is not your State, it is not your local communities, it is not your county, it is just the Federal Government. They have that right of first refusal on your paycheck. And now when you earn a dollar, before they give you any of it, then by the time we get to 2040, they are taking 40 cents out of that dollar and then giving you 60 cents for yourself, for your family, for your State, your county and your community.
That is a frightening, frightening thought for this next generation. That is not the legacy that we want to leave them. We should be about securing the blessings of this great Nation for our children and our grandchildren and future generations. It is truly indeed regrettable and even shameful that the focus would be only on the here and now and not on what is to come for generations to come.
I want to yield now to the gentleman from Texas (Mr. Conaway), who is a CPA. When we talk about fiscal responsibility, many times this is someone that we turn to and say, tell us what you know and give us your best insights. For that wisdom, I yield to the gentleman from Texas.
If the gentleman would yield, the bill that he just referenced I think is so important, because what it does is to redirect the funds as the budget works its way through the process. You mentioned the top line number, and that is the number that gets set in the Budget Committee, and then as we move through this process with the appropriations, and we are going to be back on this floor during that season talking about earmarks, but those are hard-fought battles.
But let's say that we eliminate a program and that program saves $50 million, eliminates $50 million in spending. Then that money is not used as a savings. It is not realized as a savings for the taxpayer. It goes back to the committee and the committee can choose to spend it another way. And your legislation, and they can go to your website and get more information on that legislation, would require that the Federal Government use that money to lower the deficit.
I appreciate that explanation from the gentleman from Texas, and I yield to the gentleman from Wisconsin for a comment.
I thank the gentleman.
I want to welcome another member of the Budget Committee to our discussion this evening. The gentleman from Florida (Mr. Mario Diaz- Balart) was a freshman with me in 2002, and we all worked together starting the Washington Waste Watchers. Waste, fraud and abuse, fighting waste, fraud, and abuse was our freshman class project.
We certainly have stayed at the forefront. The gentleman from Florida has stayed at the forefront of fighting wasteful spending and then seeking ways to reduce that, seeking ways to approach the budget process, changes, and also looking for ways to reduce the burden of taxation.
I yield to the gentleman from Florida.
I yield to the gentleman from Florida.
If the gentleman will yield, I think that there was also an amendment presented that day in those 36 amendments that would have allowed your State of Florida and your State of Texas and my State of Tennessee to continue to deduct the sales tax deductibility that some of us worked very hard in 2003 to have that deduction restored for our States, where we did not have a State income tax. We have a sales tax. That is an issue of tax fairness, and it was a party-line vote to take that deduction away.
In my State of Tennessee, that is about a $1,600 deduction per family. That ends up being real money in the pockets of our families. This new $683 billion tax increase that the majority has brought forward and laid on the table here in this House and said we are for it, that is what they want, that is what they think should be the priority. That bill, their budget, will take another $2,668 per tax filer out of the pockets of my constituents and send it here.
I yield back to the gentleman from Florida.
I yield to the gentleman from Wisconsin.
I thank the gentleman from Wisconsin, and I yield to the gentleman from Texas.
The gentleman from Texas talks about his seven grandchildren and the gentleman from Wisconsin talks about his three children. I have two adult children, and I am going to have a grandbaby in just a few days, and it is so disappointing when you see what that child is going to be responsible for when they come on the face of this Earth.
This year alone, Washington is going to spend over $25,000 per household and that is going to be a heavy burden for every man, woman and child to bear.
Just as a reminder, our budget school, the right to know how you spend your money, if you want to see how the Republicans would have approached this budget this year and not raised taxes, how the Republicans fought a $683 billion tax increase, $683 billion, this is where you go: Budget.house.gov/Republicans, and you can pull that response down. To get more information on our Republican Study Committee, budget and school resources, go to House.gov/Blackburn. That is a great way to figure out how we think is the best way to approach fiscal responsibility, how to be a good steward, a wise steward of the taxpayer dollar.
Madam Speaker, I thank you for having yielded the time tonight.