Yes. Thank you, Representative Garamendi, for bringing us together this evening for an hour's worth of discussion. Obviously, I think we need to stay extremely well focused, laser sharp in our focus on what's affordable and what return we…
Yes. Thank you, Representative Garamendi, for bringing us together this evening for an hour's worth of discussion.
Obviously, I think we need to stay extremely well focused, laser sharp in our focus on what's affordable and what return we get for the spending that is being called for for tax cuts. Now, I know that, as you pointed out, when we saw the Bush tax cuts for which we borrowed from China to pay for, we saw that there was very little return coming from that investment. The analyses that have followed those tax cut years indicate that we just simply did not get that trickled down.
However, conversely, with the Obama tax cuts that were part of the Recovery Act, which was the largest single middle-income income tax cut in this Nation's history, the strength that came to the economy was very much measured. We saw where that effort to assist middle-income families paid great dividends. There were those efforts made to stop the bleeding of the recession. People began to spend in their regional economies. People were spending on those day-to-day necessities. And so I think it was beneficial to our American economy, certainly to our individual States' economies, and certainly to the regional effect that it had.
So I think we can make a very strong case about investing in the middle strata, in that income demographic that will allow for a great return. And so we need to contrast there the Obama taxes and the Bush taxes and look first at the outcomes that have been generated, the benefit to the economy in general. And I think it's very clear that when we assisted that working family economy, when we assisted the middle income strata in our country, there were great dividends that were paid by that investment.
Then, to the affordability, $700 billion to $900 billion worth of investment, of spending for a tax cut where there may not be a great return simply will compete with other forces: investing in job creation, job retention; investing in research so that we can compete in a global economy; making certain that our unemployment insurance opportunities, the stretching out of that dividend is affordable; making certain that we go forward and address the deficit situation.
People who have called for deficit response are now looking at what we're doing with this tax cut discussion. And I think it's very important for us to have the priorities that will speak to deficit reduction, development of an innovation economy, research and development investments that allow us to stay a world-leading Nation in this global economy.
And as to your point made about Citizens United as a case, I believe that as we give breaks here to that economy we are going to see more propensity, we are developing the opportunities for people to invest in these campaigns in a way that will stop progress. Because the voices of progress on this floor and down the Hall in the United States Senate will be snuffed out by the Supreme Court decision of Citizens United that enables people to invest in campaigns that are the opposition to sound health care reform, Wall Street reform, job creation efforts that we have been making, the small business loan activity. All of this will be turned backward. It will be snuffed out if we continue to assist these efforts like the Citizens United case that enables people to invest in individual campaigns, and corporations, both domestic and foreign, that can get involved in these campaigns.
Think of it, you take on Big Oil, you do the reforms on the floor, and in the next election you should fully expect that this Court decision enables people to invest to the sky's limit where they choose. The same would be true with big banks and big pharmaceuticals, big insurance companies. So by giving these opportunities to those who are going to use these dividends in that manner, we are again challenging and threatening the voice of progress in this House and in the United States Senate.
So I think there are really good reasons for us to be very analytical, very theoretical, very focused in how we package this program for tax cuts. And at this time I think the record stands clear that affordability and accountability for what we invest in, what's returned is realized, are all part of the decision-making process and have to be front and center as we move forward.
Thank you, Representative Garamendi.
From your district in California, Representative Garamendi, to Representative Shea-Porter's district in New Hampshire, to my district in upstate New York, the middle income community, the working families, are all resonating with their message, that it's their turn. We borrowed, as was indicated by the gentlewoman from New Hampshire, in the decade that preceded this administration from China to pay not only for tax cuts but for two wars and for Medicare part D, for a doughnut hole that now is driving seniors to the brink of poverty. Where was the fairness in all of that? Because their bearing of the burden is far greater as a percentage of their income household-wise than the upper income strata. So the consequences here are borne unfairly.
And so I think that what you've described here in the contrast is an opportunity to start anew, with a new focus, where children and students, married couples, seniors, working families, all are given highest priority, where they can dream the American Dream, where they're empowered. And when we empower our middle income community, we're empowering all of us. Someone needs to build the product. Someone needs to buy the product. And if you deny the purchasing power of our middle income families, we have destroyed the economy of this Nation. And so it makes great sense and provides great opportunity to go forward with this new thinking. Otherwise, we revisit the failed policies of President Bush's administration, where we saw no job growth, where we saw the decline in business, manufacturing began to fold, where we lost one-third of our manufacturing base. We need to go back to those policies. What's driving the deficit today is unemployment. And if we can invest in research and development, if we can invest in basic research, in the innovation economy, then we will provide hope for our working families across the country.
I think what's often lost in the discussion on the great package that we did was that everybody, everybody, will get a break, a tax cut, on a level of income including those who are millionaires and billionaires, will get a tax break on the first $250,000 in that household. So it's not like we're denying anyone. We're just saying, let's empower that middle income crowd, that community, in a way that gives them their share now, of a stake in the investments that are made here in Washington and then shared across this great country. That is the kind of shot in the arm that's required right now. Because we see these tremendously difficult statistics out there. It took a long time to get into this mess. And I know that the expression made by the voters in this last election was that it didn't happen quick enough; the recovery didn't happen quick enough. Well, this is a revisiting of the failed policies of the past that drove us into the worst times since the Great Depression. Our colleague spoke earlier about the divide between those who are comfortable and most comfortable. That has grown to the widest that has been known in, I think, days since the Great Depression. And we have seen more concentration in the top 1 or 2 percent of wealth in this country of the economic recovery, of profit. We just saw a record profit established in the last quarter. Since record keeping over the last 60 plus years, there was more profitability for our business community in this country in the last quarter; when you annualize that, it breaks all records. So we need to look at all the statistics out there. We need to be very cognizant of what's happening and
what isn't happening. And I think the way we do that is through the soundness of the policy that we advanced, that really promotes I think the sort of effort that enables us to strengthen the purchasing power of our middle income community. And we also attempted in this House, without help from the Republicans, to provide a stretch-out on that unemployment insurance program. So we are doing those elements that respond with great sensitivity to the unemployed who are still searching for employment. We attempted every which way to stretch that opportunity from this House. We have advanced a tax cut for those households, couples under $250,000. Everybody can qualify in that tax cut because it caps at that threshold and works itself through across all of the income levels of families in this country. So we have done, I think, a very reasonable package, we have done it with great focus and great hope that it will drive the growth of the economy and produce hope in terms of jobs created and retained and will not bring us back to those failed policies. I think we have forgotten the trillions that were lost. There was $18.5 trillion lost in the last 18 months of President Bush's tenure. That was a huge, devastating blow to this country. There were 8.2 million jobs lost, which are tough to recover from. But we have had many successive months of private sector job growth. So we need to continue along the thoughtful sort of policies; and the progress that has been achieved, while incremental, is a steep climb toward recovery rather than falling deeper as was the case when we hit rock bottom in March of 2009. We have been recovering and I think now is the time to just add to that effort, not lead us backward into the failed policies of the past.
Absolutely. And I loved the converting of tax policy into a job focus.
My question rhetorically to the opposition party has been the marketing of the 2001 and 2003 tax cuts was all around jobs. These are the job-creating tax cuts. My rhetorical question is: Where are the jobs? We saw one of the most dismal stretches of job loss and job creation under that Bush Presidency than ever recorded in the Nation. And to Representative Shea-Porter's point, left with an historic largest deficit. So that was complications beyond belief, a multitude of problems that then endured and gripped the household budgets and the profitability of small businesses across this country to the point that we sunk to the lowest of records in March of 2009.
So now our focus rightfully should be about job creation and retention. My district, the 21st Congressional District in the State of New York, houses the eastern portion of the original Erie Canal, barge canal. It gave birth to a necklace of communities called mill towns. These mill towns became the epicenters of invention and innovation.
So that pioneer spirit is in the American DNA, I am convinced. I cannot accept for a moment that our manufacturing heyday is a thing of the past. We can be the kingpins of manufacturing. We need to invest in that manufacturing element so that small businesses and manufacturing centers can be that driving force for job creation and retention.
How does it happen? You modernize with investments.
I served as president and CEO at NYSERDA, the New York State Energy Research and Development Authority. I saw what happened when we partnered with the business community to enable them to cut energy costs for production. It's easy. We have shelf-ready opportunities today that can then retrofit into these manufacturing centers and enable them to be more profitable, more efficient. That means, as profitability, the transitioning over to more jobs and more ideas that can come from the manufacturing elements in our given neighborhoods and our communities, in our regions, in our congressional districts.
So it can happen, but you need this plan of attack that will go to putting American workers into deeply rooted jobs that will be here to grow in this country.
We saw what happened when we helped businesses take their large industries--take their jobs--offshore, and we paid them to do that. So I applaud the efforts that you have created and in which others have joined in this House to create the package that says ``no'' to that sort of investment, but ``yes'' to American workers and working families and ``yes'' to our small business community, which is the backbone of our economic recovery.
We profess small business to be the springboard to economic recovery. If we believe that, let's act accordingly and not take this step backward that gives tax breaks to millionaires and billionaires at the expense of investments in the small business community, investments in the working households of families across this country and, certainly, at the expense of investments in children, in students, in working couples, in married couples, who will get a break from our tax package bills, and in senior citizens, all of whom deserve our sensitivity here in this Chamber so as to do what is best for the middle-income community of this country.
Again, to repeat myself, empowering them by strengthening their purchasing power strengthens all of us from the least comfortable to the most comfortable. I think it is the map, the blueprint, for a successful comeback from the lowest, toughest economic point that we have seen as a Nation. Now, to crawl out of that pit, we need to do it thoughtfully and with laser-sharp focus, and I think our legislation advanced in this House does that.
I have enjoyed working with the two of you, with other Representatives and with the leadership in this House to make that effort so that we can have the smartest and most analytical response.