Mr. Speaker, for the next 60 minutes, me, along with other Members of the fiscally conservative Blue Dog Coalition, will come to the floor of the United States House of Representatives to talk about the debt, the deficit, the budget, the…
Mr. Speaker, for the next 60 minutes, me, along with other Members of the fiscally conservative Blue Dog Coalition, will come to the floor of the United States House of Representatives to talk about the debt, the deficit, the budget, the cuts in spending as well as tax cuts that will be proposed on the floor of this House this week.
Mr. Speaker, let me begin by explaining what the Blue Dog Coalition is all about. It is a group of 37 conservative moderate Democrats. Democrats that are concerned about this country's future, because of today's reckless spending, 37 conservative to moderate Democrats that are concerned about what today's reckless spending means for tomorrow's generation, our children and our grandchildren and their future.
For those who come to our Nation's Capitol, as you walk the halls of the House office buildings, the Cannon House Office Building, the Longworth House Office Building, the Rayburn House Office Building, it is easy to identify an office that houses one of the 37 conservative Democrats that belong to the Blue Dog Coalition, because by the door to each of our offices you will find a sign like this right here, the Blue Dog Coalition reminding every taxpayer in this land of the national debt. Today, the U.S. national debt is $8.121 trillion and some change. And if you break that down to every man, woman and child, including those who are born today, every citizen of this country would have to pull out their checkbook and write a check to the tune of $27,000 and some change to pay off this national debt.
There are those in this administration and within this Republican Congress that say debts do not matter. We all know that is not true. We all know that the larger the debt, the more demand there will be for money and the higher interest rates will go. We are already starting to see it happen. We all know during the last 4\1/2\ years that one of the things that kept us out of a recession, just barely, was low interest rates that allowed people to refinance their homes and have some extra cash to buy things and encouraged people to become and be able to afford to become first-time homeowners; and it allowed others to either add on to their house or to sell their house and buy a new one. Those low interest rates are rapidly disappearing as we see interest rates continuing to go up and up and up.
It is hard to believe now, but from 1998 through 2001, this Nation had a balanced budget. This Nation did not deficit spend from 1998 through 2001. And now this President, this administration, this Republican Congress has given us, American citizens, the largest budget deficit ever, ever in our Nation's history. For what? For a fifth year in a row.
Put it another way. The total national debt from 1789 to the year 2000 was $5.67 trillion. But by 2010, the total national debt will have increased to $10.88 trillion. Tonight, it stands at $8.121 trillion. That is $8.121 trillion and some change. This is a doubling of the 211- year debt in just 10 years, in just the past decade. Interest payments on this debt are one of the fastest growing parts of the Federal budget, and the debt tax, I did not say death tax, the debt tax, a phrase coined by the Blue Dog Coalition, is one tax that cannot be repealed.
And let me tell you what I mean by that. Every day in this land, our Nation is spending a half a billion dollars. That is right. $500 million every single day simply paying interest on the national debt. How much is that? We could build 100 brand new elementary schools every single day in America just with the interest we are paying on the national debt. It is what we call the debt tax, D-E-B-T, and it is one tax that cannot go away. It is one tax that will prevent us from being able to meet the priorities of this Nation when it comes to education and health care and the economy and so many other important areas until we get our fiscal house in order and pay down this debt and stop this deficit spending.
Deficits do matter. Deficits reduce economic growth. They burden our children and grandchildren with liabilities. They increase our reliance on foreign lenders who now own 40 percent of our debt. That is right. Foreign lenders now own 40 percent of our debt.
Let me put it another way. This President, this administration, this Republican Congress, in the last 4\1/2\ years has borrowed more money to run the United States of America than the previous 42 presidents of the United States combined.
Now, let us think about that. This President, this Republican Congress has borrowed more money from foreign governments, foreign lenders and foreign central banks to operate our government than the previous 42 presidents combined.
Congressman John Tanner, a founder of the Blue Dog Coalition from Tennessee, said it best when he said if China decides to invade Taiwan, we, the United States will have to go borrow even more money from China to defend Taiwan. What has happened to this country? What has happened to the fiscal responsibility that leaders of this country should share? It is a duty and an obligation that we keep, or at this point, put back, restore fiscal discipline to our Nation's government, and that is what the Blue Dog Coalition is all about.
The United States is becoming increasingly dependent on foreign lenders. Foreign lenders currently hold a total of $2 trillion of our public debt. You see here, we owe $8.121 trillion. That is how much money, more money we have spent than we have taken in as a government. That is how much money we have borrowed. In fact, we are borrowing to the tune of about $907 million a day, we are sending about $188 million every day to Iraq, $33 million every day to Afghanistan. And the list goes on and on. Two trillion of our public debt has come from foreign lenders or 45 percent of our total debt.
Some people may wonder where the other 6 trillion is coming from. The majority of it is coming from money that the politicians in Washington are borrowing from the Social Security trust fund with no provision on how or whether that money ever gets paid back.
Now, when I go to my banker to get a loan, he wants to know how I am going to pay it back, when I am going to pay it back and where the money is going to come from to pay him back. And yet, our government continues to borrow money from Social Security with no idea on how or when that money is going to be paid back or where it is going to come from to be paid back. No wonder this Republican leadership and this Republican Congress refused, refused to give me a vote or to give me a hearing on my bill that basically told the politicians in Washington to keep their hands off of the Social Security trust fund.
I mentioned that we were going to have a number of Blue Dogs join us this evening. 37 Members in the Blue Dog Coalition. We are conservative to moderate Democrats and we come from all across this Nation. And at this time, it gives me great honor to be able to introduce a real leader in the Blue Dog Coalition, someone that understands fiscal responsibility, someone that came from a state legislature where he helped balance a state budget, and that is the gentleman from Georgia, David Scott.
Mr. Speaker, reclaiming my time, I want to thank the gentleman from Georgia (Mr. Scott), a fellow member of the 37-member strong fiscally conservative Blue Dog Coalition, for joining me here on the floor this evening, as we will do every Tuesday night, to talk about the Nation's debt and deficit and what it means not only for today's generation but for our children and grandchildren and for future generations.
And, again, Mr. Speaker, I remind the Members that outside the office of every Blue Dog Member of Congress, every fiscally conservative Democrat in the Congress, there are 37 of us. We are 37 strong. And as one walks the Halls of Congress, it is easy to spot a Blue Dog Member because beside their front door next to that welcome mat is a poster that will demonstrate and remind the taxpayers of this Nation of a number that unfortunately changes and goes up every day.
Today, the U.S. national debt, when we went to work this morning, was $8.121 trillion-and-some-change. Again, for every man, woman, and child that is a citizen of this country, for us to get this Nation out of debt tonight, they would have to write a check for $27,000. Our Nation is spending a half billion dollars every single day in this country simply paying interest on the national debt. Give me 3 days' interest on the national debt, and I can finish I-49 through the western side of Arkansas. Give me 4 days' interest on the national debt, and I can finish I-69 across southeast Arkansas. These are priorities that will continue to go unmet until we get our Nation's fiscal house in order. And that is why we are here, to try to bring about some accountability within our government.
We are not here to point fingers or to criticize this Republican Congress for the fact that they have given us the largest budget deficit for the last 4\1/2\ years ever in our Nation's history. Again, we had a balanced budget from 1998 through 2001. This Republican administration, this Republican Congress has given us the largest budget deficit ever in our Nation's history for 5 years in a row. As Blue Dog Democrats, we are sick and tired of all the partisan bickering that goes on in our Nation's capital. It should not matter if it is a Democratic idea or a Republican idea. It ought to be about is it a common-sense idea and does it make sense for those who send us here to be their voice and to represent them.
So this discussion, this debate here on the House floor is not about pointing fingers. It is about accountability. It is about accountability to the American citizens. It is about accountability to the taxpayers. And this Congress is not being accountable when it has driven up the largest deficit ever in our Nation's history for the 5th year in a row and given us the largest debt ever in our Nation's history.
I am pleased to yield to not only a fellow member of the Blue Dog Coalition but a real leader in the Blue Dog Coalition, one of the co- chairs of the Blue Dog Coalition, and that is the gentleman from California (Mr. Cardoza).
Mr. Speaker, the gentleman from California makes an excellent point. In Arkansas I was in the State senate there for 10 years. It has grown since then. I have been here 5 years now. But the Arkansas State budget is somewhere around $5 billion a year, is what the Arkansas State government budget is. That means that just the amount of money we are spending as a Nation on interest on the national debt in 10 days equals the budget for the State of Arkansas for a year; and I think it really drives on the point of how much a half billion dollars is. Our Nation, again, is borrowing $500 million every 24 hours simply to service the debt, simply to pay interest on the debt; and that is $500 million that cannot go for better schools, better education, better health care, increasing teacher pay. These programs are going unmet, and they will continue to go unmet until we get our fiscal house in order.
As I was mentioning earlier, as Blue Dogs we are tired of all the partisan bickering that goes on in our Nation's capital, and we are not here to condemn the Republican leadership, the majority, this Republican administration for failing the American people by giving us the largest deficit ever in our Nation's history without also offering up the solution. And as Blue Dog members, the Blue Dog Coalition has a 12-point plan for budget reform, 12 points. We will be discussing some of them tonight. We will be discussing them every Tuesday night. Twelve points that we believe have to be implemented by this Congress before we can have meaningful and truthful budget reform.
So we are not here as conservative Democrats to simply say Republicans are bad. We are here to offer up two things: we are here to demand accountability, to put our fiscal house back in order, restore some common sense to our Nation's government; and we are also here to offer a plan. We have a plan of action, and we are calling on this Republican Congress and this Republican President to embrace our 12 points for budget reform. Let us come together and let us fix this problem for the American people before this number, this $8.121 trillion debt, gets any bigger.
I yield to the gentleman from California (Mr. Cardoza).
Well, it is the most fascinating thing for me. Ever since I was a small child growing up in Emmett and Hope and Prescott, Arkansas, my dad was a public school educator and a principal and a superintendent. And, well, that is a profession kind of like preachers and coaches; we moved around some, but we never got too far from home.
You know, growing up as a small child in rural south Arkansas, I always heard it was the Democrats who spent the money. And yet it was a Democrat named Bill Clinton who gave us the first balanced budget for the first time in 40 years. Of all things, a Democrat from Hope, Arkansas, my home town, where I graduated high school in 1979.
And so I think it is important that the American people recognize that this Republican-led Congress, you know it is the first time in 50 years they have controlled everything, the White House, the House, the Senate. And what are they giving us? They are
giving us the largest budget deficit ever in our Nation's history for 4\1/2\ years.
It is time to restore some common sense and fiscal discipline to our Nation's government and stop this reckless spending. Again, today, the U.S. National debt is $8.121 trillion.
Mr. Speaker, the gentleman from Georgia (Mr. Scott) makes an excellent point, that is, that this is not about politics. It is not about who is a Democrat or who is a Republican. It is about accountability. It is about a group of us that want to restore accountability to our Nation's government and want to restore some common sense and fiscal discipline to our Nation's government.
And, quite frankly, this debate is about priorities. It is about values. On November 18, at 1 o'clock in the morning, this Congress passed, on a 217 to 215 vote, barely passed, something that they deceptively titled the Deficit Reduction Act. It cut spending $50 billion to prepare for another $70 billion in tax cuts.
Only in Washington can you increase the national debt $20 billion and call it a Deficit Reduction Act. Do not take my word for it; it is H.R. 4241. Look it up.
So this budget reconciliation package, this so-called Deficit Reduction Act, it cut Medicaid, the health insurance plan for the poor, the disabled, the elderly. Half the children in Arkansas are on Medicaid. Eight out of every 10 seniors in the nursing homes are on Medicaid. One out of every five people in my home State are on Medicaid. You know, that is my America.
People count on Medicaid. A lot of people think, oh, that is for poor people that are on welfare; it will never affect me. Well, let me tell you something. If you got a quarter of a million dollars in the bank the day you retire, and where I come from most people do not, and if you go in the nursing home the day you retire, not 5, 10 or 20 years later, in less than 8 years, folks, you are on Medicaid. And yet this Congress voted to cut Medicaid $11.4 billion on November 18.
$14.3 billion in Federal student aid programs. Our future generation. The largest cut to the Federal student aid program ever. $3.7 billion in cuts to farm programs, including cuts to commodity programs, conservation programs, renewable energy programs, and rural development and nearly $700 million in cuts to food stamps.
For what? There are some in this Chamber who wanted you to believe that it was to help pay for the war in Iraq. Not so. There was some in this Chamber who wanted you to believe it was to help offset the cost of the hurricanes, Katrina, Rita, Wilma. Not so. It was to help offset $70 billion in tax cuts that mostly benefit those who earn over $400,000 a year.
Only in Washington. Only in Washington can you call something the Deficit Reduction Act that increases the national debt by $20 billion, $50 billion in cuts to the poor, the disabled and the elderly, to pay for another $70 billion in tax cuts for those earning over $400,000 a year.
You want to talk about values; you want to talk about morals. Growing up at Midway United Methodist Church just outside of Hope, Arkansas, and listening to the preachers every Sunday, and listening to my parents, great role models for me as public school educators, I can tell you that that does not represent my morals, and it certainly does not represent my values, the kind of conservative small-town values that I was raised on and still believe in.
Mr. Speaker, with that I yield to the gentleman from Tennessee (Mr. Cooper), another one of the co-chairs of the Blue Dog Coalition, a real leader in this Congress, someone who has been around for quite some time, a real leader in the Blue Dog Coalition, a co-chairman of the 37- Member-strong fiscally conservative Blue Dog Coalition.
Mr. Speaker, I thank the gentleman from Tennessee (Mr. Cooper) and would invite him to stick around as we continue this debate about restoring fiscal responsibility to our Nation's government. I think it is important to note not only that we have an $8.121 trillion debt this evening, not only important to note that we are spending $500 million of American citizens' tax money every day simply paying interest on the national debt, or the fact that we are borrowing about $907 million a day.
I think it is also important to contrast and make the American people aware that these $50 billion in cuts came from Medicaid, came from student loans, came from farm programs, came from food stamps to fund tax cuts for those earning over $400,000 a year.
In fact, this week, this week, we are going to vote on legislation that would provide the majority of tax relief to the most fortunate. That is on the heels of November 18 at 1 a.m. when we voted, they voted, the Republican leadership voted, on a 217-to-215 vote, that I might add not one Democrat voted for, to cut Medicaid and student loans and farm programs and food stamps. They voted to do those cuts to do what? To pay this week for a tax cut, $70 billion in tax cuts.
The reduced tax rates on capital gains and dividends, something most of the folks in my district do not have to worry about, they wish they did, the reduced tax rates on capital gains and dividends will cost over $20 billion, or 36 percent, of the bill's total, nearly 50 percent. I talk about how these tax cuts will benefit those earning over $400,000 a year.
Nearly 50 percent of the benefit of these rate reductions will be received by those with annual incomes of over $1 million. We are not talking about people who have $1 million in the bank. We are talking about annual incomes of over $1 million. That is where 50 percent of the $70 billion will go; and the majority, the rest of it will go to those earning $400,000 a year.
Look, as Members of the fiscally conservative Blue Dog Coalition, we are conservative Democrats. A lot of us support tax cuts when we can afford them. I was a Democrat that voted for tax cuts. It was before 9/ 11. It was before Iraq. It was before Afghanistan. We really had a surplus. We really were giving people some of their money back.
Since then, I have opposed these tax cuts for a simple reason. I will give them this. It might make for good politics, but it makes for bad fiscal policy and it is the wrong way to treat our children and our grandchildren because now with every tax cut, that mostly benefits those earning over $400,000 a year, how are we paying for it? Not by cutting spending. That is one of the 12 points in the Blue Dog plan. If you are going to cut taxes, cut spending. That is what we do at the Ross home in Prescott, Arkansas, around the kitchen table. If we want to buy something, we have got to make sure we have got the money in the checkbook to pay for it. If we want something really bad that costs more than we can handle that month, we have to cut something else. As a State Senator for 10 years, Arkansas like 49 States in this Nation, I had to help balance the budget. And we did it. There is no reason why this Nation cannot have a balanced budget.
We are not against tax cuts. We are against borrowing the money from China and Japan and the Caribbean banking center and OPEC nations to pay for tax cuts. Yet this week another $70 billion will be borrowed, mostly from foreign lenders, foreign central banks, foreign investors, to pay for tax cuts to the tune of $70 billion that mostly benefits those earning over $400,000 a year, at a time when we have a record debt of $8.121 trillion that continues to increase every hour.
I yield to the gentleman from California.
And, I might add, you know a thing or two about that.
We discussed $11.4 billion in cuts to health care for the poor, the disabled, the elderly. Eight out of 10 seniors in nursing homes in Arkansas, my home State. $14.3 billion in cuts to student loans, at a time when I know how many parents feel now, because I have got a child that will soon be going off to college. My wife and I are very blessed. We are very fortunate that we will be okay. We both went to college, we got a good education, we work hard and we will make sure our children get an education. But we are thinking about it and we are concerned about it. I now understand how so many parents across this country lay in bed at night and can't sleep worried about the cost of their child's education, at a time when $14.3 billion has been cut from Federal student loans. $3.7 billion from our farm families at a time of record diesel prices and we just went through a drought. $700 million in cuts to food stamps. It is like this Republican Congress thinks that people are going to wake up tomorrow and not be poor or sick anymore. My wife and I own a small town family pharmacy. I see a lot of people come through our doors that are sick. Never once have I met one that loved being sick. We meet a lot of poor people that come through the doors of our pharmacy in my hometown of Prescott, Arkansas, 3,400 people, where everybody knows everyone.
We know a lot of poor people. We see them come through our door. Never once has someone said, I'm proud to be poor. Yet these cuts make it appear as though people in this country are going to wake up tomorrow and not be poor or sick anymore. And now you are telling me on top of these, there is cuts in that bill, the Deficit Reduction Act, that actually adds $20 billion in new debt that cuts our orphans in foster care?
This week's tax cuts. $70 billion this week, mostly to benefit those earning over $400,000 a year, half of it to benefit those earning in income over $1 million a year.
Scrooge-onomics.
With that, I will recognize the gentleman from Tennessee (Mr. Cooper).
$2 trillion of our debt today is being held by foreign lenders, foreign governments, foreign central banks. Compare this to only $23 billion in foreign holdings in 1993. The top 10, it is kind of like David Letterman later tonight and his top 10 list. The United States of America, we owe Japan $687.3 billion. We borrow money from them to pay for tax cuts for the wealthy people here in this Nation. China, we owe them $252.2 billion. I know I have got that southern drawl and so I want to make sure everybody understands that I say billion, not million. $252.2 billion. United Kingdom, $182.4 billion. Caribbean banking centers. I had never heard of such. Caribbean banking centers, $102.9 billion. Korea, $61.7 billion. OPEC, and we wonder why gasoline is so high, we have borrowed $54.6 billion from OPEC. Taiwan, $71.8 billion. They are counting on us to defend them if China invades them and we are borrowing money from Taiwan. The gentleman from Tennessee (Mr. Tanner), a founder of the Blue Dogs, again he put it best when he said, if China decides to invade Taiwan, we'll have to borrow even more money from China to defend Taiwan. Germany, $63.5 billion. Switzerland, $37.5 billion. And Hong Kong, $48.1 billion.
Again, this President, this administration, this Republican Congress, has borrowed more money from foreign lenders in the past 4\1/2\ years than the previous 42 Presidents combined. It is time for accountability. It is time to restore fiscal discipline to our Nation's government.
I hope the gentleman from Georgia agrees.
I want to thank the gentleman from Georgia. This is exactly why the 37-member-strong fiscally conservative Blue Dog Coalition will take to the floor every Tuesday night to discuss with the Members the debt, the deficit, and to hold this administration and this Republican Congress accountable and also offer up our 12 point reform plan for curing our Nation's addiction to deficit spending.
Point number one, require a balanced budget. We will be talking more about that and the other 11 points next Tuesday night as members of the fiscally conservative Blue Dog Coalition, a group of 37 conservative to moderate Democrats, take to the floor to hold this administration and this Congress accountable for these record deficits and to offer up a solution, including requiring a balanced budget.
The Blue Dog Coalition, the poster here, today the U.S. national debt, this morning, when we started this hour, it was $8.121 trillion. In the past 60 minutes, while we have been standing here discussing the crisis at hand in America, the national debt has risen another $41 million. Another $41 million in debt has accumulated in this Nation since we began this discussion here on the floor of the U.S. House 60 minutes ago. That is eight more elementary schools that cannot be built tonight in America simply because that money is going to pay interest on the national debt.
This discussion will continue with my colleague and other members of the fiscally conservative Blue Dog Coalition next Tuesday night, and I want to thank you for coming and joining me in this debate about accountability and common sense and fiscal responsibility.