Big Oil Subsidies
Mr. President, I am pleased to be here today with the senior Senator from Colorado to talk about these important issues. The first thing I want to talk about is the debt ceiling itself. People at home are asking me constantly: Michael,…
Mr. President, I am pleased to be here today with the senior Senator from Colorado to talk about these important issues. The first thing I want to talk about is the debt ceiling itself. People at home are asking me constantly: Michael, what in the world is going on back there? We are dealing with our budget at the local level, we are dealing with our budget at the State level, we are making choices that are not popular and are not easy to make but we are moving ahead and making decisions in our businesses and making decisions at home. We are moving ahead. What is wrong with Washington, DC?
Part of the problem in this place is that people are not just entitled, it seems, to their own opinions, they are also entitled to their own set of facts. I think when you are getting paid by the taxpayer you have an obligation to actually not play with your own set of facts but to come out here and say what the facts are.
What the facts are on the debt ceiling, the debt ceiling and the vote, is that this is not a case of deciding as you are sitting at the kitchen table and you are spending too much and so you are going to cut up your credit card. I would be for that. That is not what we are talking about here. This is about bills that have already been incurred by the United States. These are debts already owed by the United States. What this is about is not cutting up your credit card, it is about sitting at home and saying: You know what, I didn't budget very well last month, I didn't budget very well last year, so even though I watched cable happily all year long, I am not going to pay my cable bill this month. I am not going to do it. Even though I lived in this house all year, I am not going to make my mortgage payment this month. I am not going to do it.
That is not fiscally responsible for a family to do and it is not fiscally responsible for the Federal Government to do.
At home, if you do that what you discover is that your mortgage rate goes through the roof because the bank says to you: Michael Bennet, you did not pay your mortgage last month and I am not going to lend you money on the same terms that I lent you money before because you are a lousy risk. That is exactly what this is about. It is not about new money. It is important for everybody to understand that because if we do not raise the debt limit and we say to the creditors of the United States you are not getting paid--not to mention our veterans and our seniors and the men and women who are fighting in Afghanistan--but to our bondholders, you are not going to get paid, they are going to raise our interest rates, and every percentage point increase in our interest rate is going to drive us 1.3 trillion more dollars into debt. There are people coming out here saying it is the fiscally responsible thing to do, not to raise the debt ceiling when, if we do not, we are going to have $1.3 trillion more of debt to pay and the interest on that debt and nothing to show for it.
It is not surprising to me that, Washington being Washington, there are people who see this as an opportunity to create leverage over things, to have a negotiation about the direction of this country. I understand that. I believed for a very long time that we have to get hold of our deficit and our debt. We have a $1.5 trillion deficit. We have almost $15 trillion of debt on our balance sheet. I think we have a moral obligation not to constrain the choices of our kids and grandchildren.
I have 3 kids of my own who are 11, 10 and 6. One of them heard me say that during a townhall meeting and she followed me out to the sidewalk and she said: Daddy?
This is Caroline, the oldest, and I said: What?
She said: Just to be clear--
She was making fun of me because I use that expression sometimes.
She said: Just to be clear, I am not paying that back.
That is the right attitude for her to have. We need to be advocates for Caroline Bennet and all the kids living across this country, not just to be fiscally responsible, which we need to be, not just asking what we are going to cut, which we need to do, but also prioritizing what we are spending to make sure we are maintaining the American dream, to make sure we are honoring the legacy of our parents and grandparents and their parents and grandparents and honoring our national creed.
It is our job, not as Senators but as Americans, to provide more opportunity, not less, to the people who are coming after us, and the debt and deficit is a huge piece of that. But, you know what, it is not the only thing. I lie awake at night worrying about the fact that if you are poor in this country it is hard for you to get a decent education. If you are born into a ZIP Code that is defined by poverty in the United States, your chances of graduating with a college degree in the 21st century in the greatest country in the world are 9 in 100. That means 91 of you are consigned to a future where you cannot participate meaningfully in the democracy, you can't participate meaningfully in this economy. We need to deal with that.
The fact is we have an economy that is not generating jobs, where median
family income for the first time in our history is falling, not rising. People are coming to my townhall meetings and saying: I have done everything I can do over the last decade, but I am earning less at the end than I was at the beginning. They are saying to me: Michael, we sent our first kid to the fancy school, but we are not going to be able to send our second kid there, or we cannot send our kid to the best college they got into.
We need to be working on that.
We have an energy policy in this country right now--maybe it is better to say a lack of an energy policy in this country right now-- that forces us to ship billions of dollars a week of our treasury to the Persian Gulf to buy oil. That doesn't make any sense.
I was on a call last week with farmers from my State, saying to me they are being driven out of business by the broken immigration policy we have.
I think the people at home are sick and tired of the screaming match. I think people at home are sick and tired of the partisanship. I believe that people do not think it is going to address these issues and I think they look at this deficit and debt situation and they say to themselves: This is such a reflection of incompetence that we are fearful to have a conversation about all the other things we have to do for our kids and for our grandkids. Their standard of what they want us to do is extremely clear to me.
The senior Senator and I are from the most beautiful State in this country, but we are also proud of the fact that it is a third Democratic, a third Republican, and a third Independent. What I have taken out of the townhall meetings I have had is this: They want us to materially address this problem. They do not believe we are going to fix it all at once--unfortunately, they are right about that--but they want us to materially address it. They want to know we are all in it together, that everybody has some role to play in helping preserve choice and options for the next generation of Americans and to make sure business understands that we are going to make good on the accounts we have.
That is not Washington speak, though; that is Colorado speak. It is tougher around here. And they want it to be bipartisan because they do not believe in either party's go-it-alone approach on this question.
I would add a corollary to all of that, which is that the capital markets need to be assured that their paper is going to be worth what they paid for it.
We need a comprehensive approach. It is an approach that is going to require us to cut discretionary spending. It is an approach that is going to require us to reform our entitlement system. It is an approach that is going to require us to do real tax reform in this place. We are not great here at walking and chewing gum at the same time but that is what we need to start doing. These are comprehensive and complicated questions.
No one would rather vote on something than I would that did not raise any taxes, but the math doesn't work. It is clear at the end of the day for us to move ahead we are going to have to have an agreement that has all of those aspects in it: discretionary spending cuts, entitlement reform, tax reform.
That is why Senator Johanns and I, a Republican here, circulated a letter to the President that had those three elements in it. Thirty-two Democrats and thirty-two Republicans signed the letter--the Presiding Officer of the Senate signed the letter--agreeing that all these elements were going to be part of a final product here.
What I want to do this afternoon is simply implore all of us to do our jobs, to get this behind us, to begin the building of America again in the 21st century, to make sure we are not the first generation of Americans to leave less opportunity to our kids and our grandkids. There is a lot more agreement behind closed doors in this place than there is out on the floor. We need to bring some of that agreement out here, because if we fail to reach some conclusion before this debt limit vote and we unintentionally or intentionally end up in a place where we have turned our back on the debts we owe, we are not going to be able to solve this problem. The choices are going to make these look like easy choices.
We are going home for a few days this weekend, the senior Senator and I, to celebrate the Fourth of July, Independence Day, to spend some time with our families and friends and our neighbors. Then we are coming back next week. My hope is that everybody comes back--everybody, on both sides--with more of a seriousness of purpose than we have had, with an ability to see not just political benefit but the benefit to the country of coming to agreement.
If I can go home and say to people that we have reached a deal that meets the terms I mentioned earlier, my view is that will be perfectly fine in Democratic parts of the State and in Republican parts of the State. That is what we should strive to do.
I hope the American people will hold the people in this Chamber accountable in the way they hold people at the local level and the State level accountable. No mayor would ever say I am going to willingly or wantonly jeopardize the credit rating of my city--the Presiding Officer was a mayor--and live to fight another day, and we should not do that either.
I hope we move past the rhetoric of this debt ceiling discussion and actually get into a conversation that will solve the fundamental problems and challenges that are facing our country, because if we do not do that, we are not going to do the even more important work than that, which is to support the aspirations all of us have for this country and for our children in a world that is becoming more complex and uncertain every single day.
I thank the senior Senator from Colorado for his incredible leadership on these issues. I believe if we continue to try to reach out and continue to try to work together, ultimately we are going to find a path.
I yield the floor.
One of the things Senator Udall said reminded me of a conversation I had a number of months ago with somebody who is in the capital markets and who watches everything going on down here pretty closely, but quizzically. He cannot figure out what in the world we are doing. I saw him, I think maybe it was in February, sometime in that timeframe. I asked him, as I always do: What are you doing? He is one of the smartest investors I know.
He said: I am buying gold.
I said: Why are you buying gold?
He said: I don't have any confidence that you guys are going to be able to work this out and get our deficit and debt under control.
First, think how unproductive that is. I am not telling anybody to buy or sell gold, but it doesn't create jobs in this economy. We want people investing in companies so they can grow and hire people and create jobs.
Anyway, I saw him again about 6 weeks ago. We started talking about the debt ceiling conversation.
He said: It is beyond the realm of my comprehension that you guys would fail to lift the debt ceiling.
Here is a guy cynical enough about the way this place works who is saying
he is buying gold, but it is even beyond his comprehensive that we could fail to lift the debt ceiling. The reason is, he actually understands what the facts are around this.
I think we will lift the debt ceiling. I certainly hope we will. But the more important point is what the Senator has been working on for all these many months, which is coming to a comprehensive plan that actually addresses the underlying problem of our debt and deficit.
I thank the Senator.
It is clear to me, if this decision were left up to 100 Coloradans, we would scratch our head and we would probably argue out some things. But I think it would probably take about a day for us to come to a set of solutions that would solve the problem or at least move us down the road, and we would feel pretty patriotic about what we had done; that we had done something useful for our kids at the end of this process, if we are able to deliver something like that. I think that is how we ought to feel. There are too many days around this place where I feel like we have lost sight of all that. In that conversation the Senator talked about--Al Simpson was such a big part of, Gary Hart was there, Alice Rivlin, and a number of people--it was abundantly clear, blindingly obvious to the people in that room that we couldn't approach this problem by drawing bright lines and saying: No, we cannot touch this or, no, we cannot touch that.
They knew everybody was going to have to give a little bit in order to make this work. Unfortunately, some of that line drawing is what we are seeing around here that we have to find a way to get past.
I completely agree, and why wouldn't we want to look at our Tax Code and our regulatory code. I hear about that from the other side, and I share their view. I have been in government. Listen, I was a school superintendent for almost 4 years. If one thinks I don't understand what it is like to be on the receiving end of well- intentioned legislation from Washington, DC, that by the time it gets to a school or classroom, makes no sense at all, believe me, I lived it every single day. So why wouldn't we look at our Tax Code and our regulatory code and ask ourselves: Are these things more or less likely to drive innovation in the United States? Are these aspects more or less likely to grow our economy and to create jobs? It is clear we have the highest corporate tax rate in the world now. It used to be second, but Japan either changed theirs or is about to change theirs. That is sending a very uncompetitive message to the world.
On the other hand, we have so many loopholes, so many special interest loopholes that underlie the Tax Code, we are not actually getting the revenue we would be suggesting as high rates. So in a way, this isn't a partisan issue, but it is the worst of all possible worlds because we are sending out an anticompetitive message to the world that says we are closed for business, and we have a whole bunch of loopholes that may or may not--and I suspect in many cases do not--drive innovation in this country.
In fact, most of them are looking backward into the 20th century. They may have made sense in the middle of the 20th century, but they don't necessarily make sense to build new industries here, to develop things such as a new energy economy that is so important to our State which, by the way, would help lead us toward energy independence from the Persian Gulf. There is no reason to think all these things that have been written down are written in stone, and, frankly, our job is to make sure it is working better for people. So I think the debt and deficit commission made some excellent recommendations on that side.
The other side is on personal income tax. What they said there was, we can actually lower rates and raise more revenue. Why? Because there are so many deductions that are part of the code, and only 30 percent of the people in this country itemize, get the benefit of those deductions. We can imagine a world where everybody gets the benefit of a lower rate but we are able to have revenue to drive us forward. We can get there. The thing on the debt and deficit commission is, Tom Coburn, who is one of the most conservative Members of this body--I don't think he would mind my saying that--and Dick Durbin, one of the most liberal Members of this body, both voted for that deficit and debt commission report. That is almost good enough for me.
I see we are joined by Senator Coons from Delaware, and I am going to stop, but along that line, just to give people who are here in the Chamber or might be watching some optimism, just 2 weeks ago we took a vote on one subsidy, an ethanol subsidy, and I think it was Senator Coburn and Senator Feinstein who put it on the floor, a Democrat and Republican, and it had like 73 votes. I get in trouble with my kids. It wasn't ``like'' 73 votes, it was 73 votes to end that subsidy.
By the way, there were around 40 Democrats and 30-some Republicans who supported that. We need more of that around here. I think it would--if we keep working at it and keep chipping away at it, in the end, we will be able to see common sense will prevail over politics.