Motion To Instruct Conferees On S. Con. Res. 95, Concurrent Resolution On The Budget For Fiscal Year 2005
Mr. Speaker, I thank my colleague from North Dakota for yielding me time. Mr. Speaker, since everybody wants to talk about the 1997 plan and what we did, just so we can all have a rendezvous with the record here, in fact we cut taxes on…
Mr. Speaker, I thank my colleague from North Dakota for yielding me time.
Mr. Speaker, since everybody wants to talk about the 1997 plan and what we did, just so we can all have a rendezvous with the record here, in fact we cut taxes on middle-class families with the introduction of the $500-per-child tax cut for people making $100,000 or less. We increased spending in higher education. We created the Children's Health Insurance Program, a $24 billion program for the children of uninsured parents who worked. We invested more dollars in environmental cleanup. We made long-term investments in the health of this country, which is in health care, education, and the environment. We expanded charter schools up to $2,000.
So we in fact paid for those spendings because they were good investments. We reduced the deficit down to a balanced budget, and we cut taxes for middle-class and working class families.
What we did not do was say every tax cut is good and every spending increase is bad. Some tax cuts are good. The $500 per child, which was the introduction in 1997, was a very good tax cut.
In 1993 we cut taxes on working families with the doubling of the earned income tax credit, which was originally created by Ronald Reagan in the 1983 budget.
So, in fact, not all tax cuts are bad; but when you have a tax cut for corporate jets and yet you put a squeeze on middle-class families, those are bad choices. As President Kennedy once said, to govern is to choose. When you make investments, not all spending by government is good; there is a lot of waste. But when you invest in uninsured children of working parents, 10 million of them who finally get health care and you pay for it, you are a better country and those are good investments.
When you expand the investments in opening the doors of college education, doubling the size of Pell grants as we did in 1997, that is a good thing. When we provided for middle-class families a tax deduction for a college education, we created the lifetime learning, the HOPE scholarship for continuing learning, those are good tax cuts. They led an investment boom, an economic boom which all incomes enjoyed, not just the top 1 percent, as is happening now.
So to compare what happened in 1997, to think fondly of your memory, we increased our investments and government spending in the areas of health care, education, and the environment, we cut taxes for middle- class families, and used the rule of putting our fiscal house in order. And all of those investments, all of those tax cuts started with the notion that we had to have a balanced budget.
The difference today is our tax cuts are skewed not to middle-class families, not to working families; they are skewed towards people who make money from money where the burden on people who work for a living are carrying more of the tax burden than those who do not.
So not all tax cuts are good and not all spending is good. We have to make choices based on an economic strategy.
Today, we have had the most anemic wage growth for middle-class families:
1 percent. College costs this year went up 14 percent; last year, 10 percent; and the year before that, 11 percent. Health care costs have gone up by a third, and people's savings have lost their net value by $200 billion in the last 2 years. That is the economic condition of our middle-class families, and we need an economic strategy that puts our fiscal house in order, reflects the priorities that American families are facing by making sure we invest in health care, invest in education, invest in the environment, and give middle-class families, rather than corporate jets, which your budget and your economic plan does, give middle-class families the type of tax cuts they deserve because they are trying to raise their children. That is where we should invest our limited dollars.
This PAYGO rule begins by putting the budget of the Federal Government back in order, as the gentleman from Iowa (Chairman Nussle) voted for in 1997 and made sure every tax cut was paid for, made sure every investment in spending was paid for. Those were good economic times. They created 22 million jobs. We need to go back to that strategy. It was good in 1997, and it will be good in 2004.