I thank the chairman for yielding. Mr. Chairman, I'd first like to begin by sincerely congratulating the chairman of the committee and the ranking member from Wisconsin for, I think, a very thoughtful and substantive approach to a very…
I thank the chairman for yielding.
Mr. Chairman, I'd first like to begin by sincerely congratulating the chairman of the committee and the ranking member from Wisconsin for, I think, a very thoughtful and substantive approach to a very serious set of problems. I think that the tone and quality of the debate on the House floor this afternoon has served the country well and has served the institution well, and it is entirely owing to the leadership of the chairman and ranking member and the men and women who serve the Members' committee so well, and I appreciate that.
I strongly support the gentleman from South Carolina's (Mr. Spratt) budget. I think it's the right thing for the country based upon an analysis of facts, choices, and consequences. The most important factual reason that the gentleman from South Carolina's (Mr. Spratt) budget benefits and strengthens families in our country is it operates on the principle that American families operate under, which is you can't live on borrowed money forever. You can't run your credit card up forever and hope that you win the lottery someday to get yourself out of that mess. The gentleman from South Carolina's (Mr. Spratt) budget, just as American families do across this country, recognizes the reality that you have to make choices.
Now, the other fact that I think is very important that Members realize is that this budget does not have a tax increase for anyone this year or anyone next year or anyone last year. One of our friends on the other side, Mr. Chairman, said that this was deja vu, this budget. She was exactly right because most of us were here almost exactly a year ago and heard a ritualistic incantation from the minority side that this was the largest tax increase in American history, the largest tax increase in the history of the world, the largest tax increase in the history of the universe, the largest tax increase in whatever's larger than the universe.
Mr. Chairman, I'd just invite the people of this country to evaluate the validity of that claim. When they sit down and fill out their tax return this year, they should ask themselves the question, did my income tax rates go up? No, they didn't. Did the capital gains tax rates go up? No, they didn't. Did the excise taxes go up? No, they didn't. And the same answer would be true for this year and the year after that.
Now, I am sure, Mr. Chairman, that people listen to this debate and they say, how can this be that the Democrats get up and say there are no tax increases in this budget and the Republicans get up and say it's the largest tax increase in the history of civilization or whatever the latest version of it is? Here's the answer:
In 2010 the tax cuts enacted earlier in this decade expire, and the Congress will have to make a choice. Until then, there is no tax raised on anyone for anything. When that day occurs, this budget contemplates that we will do what families across the country do and make an intelligent decision. If the economy bounces back and grows, there's a very good chance there will be plenty of revenue to renew all of those tax cuts. If it doesn't, then the Congress has the choice of reducing spending in given areas to finance tax cuts for all or some of the people who would be affected.
But what we will not do is what the erstwhile majority elevated to an art form during its reign, which is to borrow the money to pay the bills. We won't indebt the children of this country to the People's Republic of China and our other creditors because we don't have the discipline to make a decision here.
There's a big choice. Our budget believes that the economy grows and American families prosper by stopping the practice of borrowing money to run the government, by investing in the education and health care and development of our people, and by expanding economic opportunity. We believe that works.
The other side, with great sincerity, believes that massive tax breaks for the wealthiest people will trickle down to the rest of us and that will work.
This is the big choice we have to make, but there is a record for this choice. We do not have to make this choice in the empty vacuum of political theory. You see, because we tried their way for 6 years when they had control of both Chambers and the White House, and our strategy of stopping the practice of borrowing money, investing in people, expanding economic opportunity is what we tried for most of the 1990s, and there's a record. They created some jobs through their strategy. But for every one job they created, we created five. There was some economic growth under their strategy, but for every dollar of economic growth they created or facilitated, we created a dollar and a half.
What was the impact of their strategy on the American families that this budget supports? Well, over a 6-year period, the purchasing power of a typical middle class American family shrunk by $1,100. During the years in which our strategy was the policy of this country, the purchasing power of a middle class family increased by $6,000.
I yield briefly to the gentleman from Wisconsin.
Yes.
Reclaiming my time, it's also the case that every single Republican there in 1993 voted against the plan that put that into effect and, therefore, they have no ownership.
So I would say the record is very, very clear, that I think our friend from Wisconsin and his fellow colleagues on the committee are very well intentioned about the policy they followed to help American families. I just think they're wrong, and I think the record shows that they're wrong.
Now, what are some of the consequences in this budget between their way and our way? Well, one of them is the issue of middle class tax cuts. Now, they are going to say that all these middle class taxes are going to go up.
Here's the reality: The budget contains what we call a reserve fund for the purpose of financing middle class tax cuts. And, again, when we reach that point, we will make a decision as to how best to preserve those, either based upon growth in the economy, which we certainly hope will occur, in offsets in spending, which we are prepared to make, or in other sources of revenue which we have brought to this floor before.
Look at the issue of children's health care. Last year, we attempted to provide health insurance for 5 million additional children. These are the children of people that work in convenience stores, gas stations and retail stores. These are very hardworking people who are struggling to get ahead. And there is a program that has worked very well since 1997 to help those families and their children. Now, we wanted to expand that coverage to 5 million more children, and we paid for it. A great number of Members on their side voted for this, and a great number of Members of the other body on their side voted for this, but not quite enough, because we ran into a Presidential veto, and we couldn't quite override it here.
Our budget will do the same thing. It will say let's find health insurance for
5 million more children who do not have it, and let's pay for it. Let's not pay for it by borrowed money.
For those who are trying to live by collecting child support enforcement, there are more resources for it. For those women who are pregnant or have small children and want to promote their well-being, there is more money for it. For Americans struggling to deal with getting by and paying the grocery bills on food stamps, there is more resources for this. Public health issues, whether it is the spread of disease or the prevention of disease, there is more resources for this, as well.
This budget proceeds on the powerful principle on which American families proceed. Don't try to survive on borrowed money forever. It puts us in position to make difficult and sometimes unpopular choices. It does not raise taxes on anyone in the fiscal year that is in front of us, and it makes investments in the strategy for economic growth that has worked in the past and we believe will work again.
I know that the gentlelady from Massachusetts (Ms. Tsongas) who is new to the institution, but in no way new to serving her constituents, has a special concern about block grants. I would like to encourage her to engage in a colloquy at this time.