Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong opposition to the default on America act. The chairman just mentioned something that is noteworthy. He said, We are seeing a Republican plan, and for the…
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong opposition to the default on America act. The chairman just mentioned something that is noteworthy. He said, We are seeing a Republican plan, and for the next hour, we intend to make sure America gets a chance to see the Republican plan.
A reminder for those who might be paying attention to this debate today as to how we traveled on this road which, by the way, is eminently manageable through negotiation after a clean debt ceiling vote might take place.
So our Republican colleagues, I think--and I might be mistaken. You know what? I am sure. They voted for more defense spending. $800 billion we are now at with defense spending. They voted for pandemic relief. They voted for aid to Ukraine. How about the million and a half new veterans that we have in America in the aftermath of the war in Iraq and Afghanistan? They deserve our care, and our Republican colleagues voted for that aid.
Republican Members, some of whom voted for the infrastructure bill, some of them who voted for the legislation on the Inflation Reduction Act, and some of them who voted for the CHIPS Act--that is what is in front of us at this moment.
Here is the real ringer, Mr. Speaker. In December of 2017--and I hope everybody pays attention to this argument--they voted to borrow $2.3 trillion over 10 years for the purpose of giving a tax cut to the wealthiest among us with, by the way, modest to limited economic growth.
Why is that important?
Because there has been $10 trillion worth of tax cuts over the last 25 years. Do you want me to recite it?
President Bush's tax cut in 2001, $1.3 trillion. They came back in 2003, another trillion, and subsequently presided over the invasion of Iraq and Afghanistan, which we should note the cost of which are in the trillions of dollars today.
They want us to believe that this problem that we have in front of us--which I mentioned is manageable--they want us to believe that this is the Democratic position on spending after they embraced the tax cuts that I have just described.
This is about America's credit. What ever happened to the Republican Party that talked about probity as it related to financial stability?
Whatever happened to the Republican Party that talked about the importance of investment?
These arguments that they make now are largely vacuous because it is inconsistent with the Republican Party I knew when I came to Congress. They could borrow money for the Iraq war month after month to keep it off budget so nobody would see what it was really about. They could borrow money repeatedly, and the moment a Democrat gets to the White House they are blamed for inflation.
I don't think Joe Biden should be blamed for inflation in the United Kingdom. How about Germany? That is how empty these arguments are that they are making.
There is a chance for us to do what we used to do here--and by the way, Democrats responsibly voted for raising the debt ceiling three times under the former President because we thought it was the responsible thing to do. Speaker McCarthy got himself into this by the promises that he made along the way.
The suggestion here is very simple, Mr. Speaker. Pass a clean debt ceiling and then let's get on with negotiating.
Bill Clinton, on January 19, 2001, had balanced the budget four times, projected surpluses in the trillions of dollars and 22 million new jobs. The Republican Party gave it away through tax cuts to wealthy people.
They are asking us today the following--they get to set the fire and then call the fire department because that is what this argument is about.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, my point was and is Republicans voted for the PATH Act, as we did, and the bill is due.
Mr. Speaker, I yield 1 minute to the distinguished gentleman from New York (Mr. Jeffries), the minority leader in the House of Representatives, a champion of long-term worthwhile investments.
Mr. Speaker, I thank the gentlewoman from Virginia for calling attention to these tax credits.
Talk about fortuitous timing, Mr. Speaker, here is the author of these tax credits, all $370 billion, along with Earl Blumenauer. We intend to lay out where these tax credits are going to in Republican districts and see if those Members wish to take advantage of those tax credits or not.
Mr. Speaker, I yield 1 minute to the gentleman from California (Mr. Thompson), who is a veteran.
Mr. Speaker, I yield 2 minutes to the gentlewoman from Massachusetts (Ms. Clark), the minority whip and a great talent in the Democratic Party.
Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. Doggett), a longtime observer and critic of Republican spending plans in the House.
Mr. Speaker, I yield 1 minute to the gentleman from Oregon (Mr. Blumenauer) who had a profound impact on writing the tax credits that the gentlewoman from Virginia acknowledged a moment ago.
Mr. Speaker, I yield 1 minute to the gentleman from New Jersey (Mr. Pascrell), a champion of Medicare, Social Security, and renewable energy.
Mr. Speaker, I yield 1 minute to the gentleman from Illinois (Mr. Davis), who has been a leader in terms of adoption opportunities for those outside the mainstream.
Mr. Speaker, I yield 1 minute to the gentlewoman from Washington (Ms. DelBene), one of the most talented Members of this institution.
Mr. Speaker, I include in the Record a letter from Mr. Pascrell.
Congress of the United States,
House of Representatives,
Washington, DC, March 8, 2023.
Hon. Kevin McCarthy.
Speaker of the House,
Washington, DC.
Dear Speaker McCarthy: Our most basic duty as Members of
Congress is to protect the well-being and security of our
constituents. If Republicans block America from paying our
bills, it would be a gross betrayal of our governing
responsibility and invite cataclysmic damage to our economy.
Therefore, I call on the House to advance legislation to
raise our debt limit and prevent a second Great Depression.
It has been 48 days since the United States reached its
current statutory limit and the Treasury Department began
taking extraordinary measures to prevent a default. On
February 15, the Congressional Budget Office raised the
specter of a default as soon as July without urgent
congressional action. Congress has acted to raise or suspend
the debt ceiling 49 times under Republican presidents and 29
times under Democratic presidents. This is a bipartisan
responsibility.
According to the Council of Economic Advisors (CEA), if the
debt ceiling is not raised, Social Security checks will come
to a halt and seniors will be without means to eat or turn on
the heat. Medicare reimbursements will freeze, leaving tens
of millions of Americans unable to pay for essential medical
care. Our veterans will see their health care cut off.
It gets worse. The collapse of available credit would send
shockwaves through the economy, leading to a bank run and a
decimation of small businesses. The cost of borrowing would
soar, leaving new homebuyers locked out of the housing market
and causing regular people to lose everything. The jobless
rate would skyrocket, with millions of Americans losing their
jobs and elevated unemployment lingering indefinitely.
Markets would be thrown into a postulated that the impact of
default would be ten times worse than the 2008 recession.
Republican-precipitated default would be just as
devastating for the global economy. America's treasury debt
is considered the world's safest asset and the dollar acts as
the globe's reserve currency. World confidence in our entire
economy would be irreparably wounded by default.
When Republicans put our Nation's credit on the line, the
result has been widespread turmoil and suffering. After
Republicans threatened to breach the debt ceiling in 2011,
Standard and Poor's downgraded the U.S. long-term credit
rating for the first time in history. Private sector hiring
froze, job growth withered, and consumer sentiment dropped to
its lowest level in 30 years. The Government Accountability
Office (GAO) estimated that federal borrowing costs increased
by about $1.3 billion, while the Bipartisan Policy Center
estimated that the 10-year cost to taxpayers was a staggering
$18.9 billion.
In 2013, when Republicans tried this play again, our Nation
experienced an annualized 0.25 percentage point reduction in
annualized fourth quarter's gross domestic product growth,
resulting in an estimated 120,000 lost jobs. Investors
stopped accepting Treasury bonds as collateral for short-term
transactions, and the government was forced to pay higher
interest rates at auction. Treasury's borrowing costs on
securities increased by an estimated $38-to-$70 million, and
rates for commercial paper also rose, disrupting private
markets. After Republicans yet again menaced our Nation's
credit in 2015, the Treasury Department postponed the release
of a new 2-year bond due to lack of demand, and was forced to
reduce bill issuance, leading to a drop of $210 billion in
bill supply.
The full faith and credit of America is not a bargaining
chip to be gambled whenever Republicans want to reverse
policy they don't like. Refusal to let our Nation pay its
bills would lead to a domino effect of catastrophic
proportion. The effects of failing to raise the debt ceiling
are real, tangible, and would be felt by every American
family and business.
Given these risks, I ask: where is the Republican plan to
raise the debt ceiling and when can we expect its
consideration before Congress?
Sincerely,
Bill Pascrell, Jr.
Member of Congress.
Mr. Speaker, I yield 1 minute to the gentleman from Virginia (Mr. Beyer), whose knowledge of economics is second to none in this institution.
Mr. Speaker, I yield 1 minute to the gentleman from Pennsylvania (Mr. Evans), whose city is home to some of the most important retirement plan management opportunities in all of America.
Mr. Speaker, I yield 1 minute to the gentleman from Illinois (Mr. Schneider), an individual who is well known for his proficiency in accounting procedures.
Mr. Speaker, I yield 1 minute to the gentleman from Nevada (Mr. Horsford), a very capable gentleman.
Mr. Speaker, I yield 1 minute to the gentleman from Maryland (Mr. Hoyer), one of the most capable people that I have had a chance to serve with in Congress.
Mr. Speaker, I yield an additional 30 seconds to the gentleman from Maryland.
Mr. Speaker, I yield 2 minutes to the gentleman from New Jersey (Mr. Pallone), who comes from the same class as the last two Members, the class of 1988, a very talented lot.
Mr. Speaker, may I inquire as to how much time is remaining.
Mr. Speaker, I yield 1 minute to the gentleman from Georgia (Mr. David Scott), a very distinguished and capable gentleman.
Mr. Speaker, I thank the chairman for acknowledging the role that the child tax credit played in that statistical analysis.
Mr. Speaker, I yield 1 minute to the gentleman from New York (Mr. Goldman), a new and very capable Member of this House.
Mr. Speaker, I remind everyone that, in Georgia-3, there was $2.6 billion worth of tax credits; Ohio-15, $4.5 billion of tax credits; West Virginia-1, $22 million worth of tax credits. Those tax credits did not go to the
Chinese. They went to American families.
Mr. Speaker, I yield 1 minute to the gentlewoman from Florida (Ms. Lois Frankel).
Mr. Speaker, I yield 1 minute to the gentlewoman from California (Ms. Chu), a member of the Ways and Means Committee.
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from New York (Mr. Ryan).
Mr. Speaker, how much time do I have remaining?
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, I thank you for your impeccable fairness once again as you have presided over this Chamber as usual. I call attention to the argument I made at the outset as to how we got to where we are today. This is a manageable issue that men and women of good sense and good instincts could come together on to find a solution.
The debt-to-GDP ratio, I understand the argument, but does that take into consideration a pandemic and aid to Ukraine, stopping the hostility of Putin's aggression?
Does it take into account our obligations--and for those who voted for the PACT Act here--to come to the aid of our veterans?
Does it take into account the infrastructure bill that some Republicans voted for?
Does it take into account the CHIPS and Science Act that some Republicans voted for?
Does it take into account the extraordinary increases in defense spending as China threatens America in the Straits of Taiwan and the South China Sea?
These are all parts of votes that both parties have cast. These are parts of the obligations that we have to members of the American family.
Republicans suggest, well, if we just chop Medicaid--and earlier today, Mr. Speaker, it should be noted this exclamation point that they have added to the argument that we have no intention of cutting Social Security or Medicare. Great. That is nice to hear. There are members of the Republican leadership in the Senate who have said precisely the opposite. They would put Medicaid and Social Security on the chopping block, and our side should not be restrained in calling attention to that, despite the debate that takes place in this Chamber.
The spending challenges that we have as they relate to defense, where every Republican voted, I believe, for that defense budget and the substantial increases that have taken place, that has been an act of responsibility based upon what happens with Putin and President Xi and others who would threaten freedom across the globe.
When we look at this argument that has been presented to the American people today, I want to ask you about their 401(k) plans. As they allow this argument to be pursued, the markets are going to begin to reflect this in coming days.
People are going to pull back from investment. People are going to pull back from what ordinarily would be an act of good fiscal prudence. People are going to begin to pay a great deal of attention to this.
The argument that Democrats have offered today is really simple: You and us, we were responsible for those increases in spending. Let us have a vote on a clean debt resolution here and then proceed to negotiation and discussion.
I have heard this argument when former President Bush never vetoed one spending bill during 8 years as President. I have seen this argument when we cut taxes, without the help of us, by $1.3 trillion in 2001 and, by the way, another trillion in 2003.
With the subsequent invasion of Iraq and Afghanistan and a million and a half new veterans, these are our obligations.
Even though we disagreed, by and large, with those positions that were adopted by the then-majority, you recognize the reality, that the tally of the credit card is in front of us.
When you get the credit card, you don't get to say, ``Well, I don't like the part of the bill that I have run up here, so I am not going to pay it,'' or you don't say, ``I will only pay this.''
The bill is in front of us. The full faith and credit of the United States is in front of us.
I made reference earlier today to the fiscal probity of the Republican Party when I first came here. Whatever happened to the Republican Party when it relates to fiscal prudence and probity?
We pay our bills, and we don't threaten the currency of the United States where that dollar is recognized everywhere across the globe.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.