I appreciate the gentleman from California yielding. New Jersey is proud to be number one in a number of things. But, quite honestly, we do not like to be proud, we are not proud of the fact that we are number one when it comes to paying…
I appreciate the gentleman from California yielding.
New Jersey is proud to be number one in a number of things. But, quite honestly, we do not like to be proud, we are not proud of the fact that we are number one when it comes to paying taxes in this country, whether you are talking about local taxes, sales taxes, State income taxes, property taxes. I think we are just about number one in all of those combined.
Yet when you take that and you add what is happening here, this could be one of the most expensive weeks for the citizens of the State of New Jersey if this House proceeds with what the Democrat leadership plans to do.
Now, I have the privilege of serving with you, the gentleman from California, on the Budget Committee. And as you know, we just debated, if you will, the Democrats' budget proposal just last week. Actually, we had a number of hearings over the last 3 months now, during which time we have had a number of experts come and testify on various aspects of the Federal budget and the ramifications of not doing some things in the area of mandatory spending.
When you think about all the rhetoric that we have heard from the other side of the aisle, and maybe it was disquieting at some times, I think the one thing that maybe we can reach across the aisle here and maybe hear one language, one word that we are on the same page on at least, in rhetoric at least, is they agree with us on this one point and that is that we should get to a balanced budget at some point. The distinction, of course, is how they get there and how we get there.
Now, anyone who tuned in to C-SPAN, if people did tune in C-SPAN and listen to those budget hearings that we had, they may realize, or they watch the stuff on the floor, what have you, might realize just how complex the Federal budget is. With talk of rescissions and special orders and earmarks and everything, it is a hugely complex matter that we deal with; and I appreciate your expertise that you come to the House with to be able to handle this.
But, in reality, if you just step back for a minute, what we all do here on the House floor and in Budget Committee isn't a heck of a lot different than what every single American family, my own included, and the residents of the State of California and New Jersey have to do every single year, every week, every month when it comes to their own family budget, and that is to say they have to live within their means.
Now, Washington doesn't have a good track record on this, but that is what families have to do. When it comes to families, I guess families don't really have a choice to say whether we are going to have a balanced budget or not. Washington does. People know how much money they are earning.
Absolutely.
No, you are absolutely right on point. The average family has to sit down and say, this is what my income is going to be for the week, the month or the year for the year ahead and say I am going to live within those means. At the same time, what they have to do is they have to set priorities. And I think that what the gentleman was also trying to elicit from the Democrats during this last budget hearing was to set priorities. What are your top-ranking priorities? What must we spend on and where should we spend it? And if there are other things that you don't want to spend on now because you don't have the money, what are they?
They would never agree to do that, if the gentleman recalls. That is why I think they came up with this hollow, empty trust fund which, in reality, they could have said the trust fund is this big, since it is empty, or they could have said it is this large. Because if there is no money in it, there is no limit to how large the empty promises are.
But the family budget can't do that, just like you said.
But the other thing that the Democrats in Washington are able to do, besides print money, that the average family can't do, you know what else the family can't do? They can't raise taxes. A family cannot simply go out and say, I am short on cash this week, so I am going to raise taxes. That is why I started off by saying, as you pointed out, that this is the most expensive week for a family in the Fifth Congressional District for the State of New Jersey.
Let me just give you one other number while I stand here. It was the New York Times, that paper did a study just recently looking at what the Democrats in the House and the Senate are proposing. They looked at it a little bit slightly differently but came up with a little bit different number, but still draws the point.
They looked at an average family of four making $70,000 in the State of New Jersey. Now, if you are from the State of New Jersey, I don't think anyone from either side of the aisle would say that a family making $70,000 is rich by any means. It is expensive to live in our State.
But they said that family, who did very well under the Republican tax decreases in 2003 that we passed with the creation of jobs and the like, that family, under the Democrats' budget that may pass this House this week, would see their taxes go up by $1,500.
So if you think you are rich at $70,000, which I guess the other side of the aisle thinks New Jerseyans making $70,000 are able to pay more in taxes, those taxes are going up by $1,500. I think that is a burden that that average family should not have to bear in light of the property tax.
The overall average is the number that you brought out for the entire State of New Jersey, approximately $3,000. You may have it in front of you. I don't have it here.
So around $3,800 or almost $4,000. And you think about it. What could that $4,000 be used for? If you are the family and the husband and wife sitting down with your family, well, I would like to use that $4,000 to go on vacation this year. I would like to be able to use it on some other niceties or what have you. Or maybe, if they can't use it on that, maybe they have health expenses.
I have a daughter in college right now. Maybe they have college expenses, other things like that. I am sure they could find a use for $4,000 to spend.
I will yield.
Mr. Speaker, I appreciate the gentleman's yielding. I remember one of the comments from the other side of the aisle during budget process, I think you shook your head when they said this as well, where they said, Well, if we do a tax cut, the Federal Government is subsidizing that taxpayer. And we just shook our head at that because a tax cut is not a subsidy to the American taxpayer. A tax cut is simply saying to Mr. and Mrs. Taxpayer and family that you don't have to send quite as much of your hard-earned money each week to Washington. You are able to keep $3,800 of that money. And maybe you want to use that $3,800 in New Jersey to go on vacation to a beautiful State like the State of California.
I will just close on these thoughts: the difference that we are seeing here between what the Democrats will be proposing in their budget and the Republican alternative budget that should also come before the floor is in three areas, I think. We are both aiming towards the same goal, fortunately, of trying to reach a balanced budget by 2012, 5 years from now. But the Republican budget will reach that goal of 2012 without raising taxes by almost $400 billion, which is what your chart behind you shows. And that is critical.
So, number one, we will not put a burden of almost $4,000, $3,800, on the families in the State of New Jersey, $1,500 if you are a family of four making $70,000.
Secondly, by not raising taxes we will not be undermining the pro- growth policies of this administration and of this government over the last 10 years. Those pro-growth policies, for New Jerseyans at least, have created tremendous employment, very low unemployment, so that that family that is making that $70,000 a year or more or less in New Jersey at least knows that the unemployment rate is almost at historic lows at this point. So they know there is the opportunity for jobs, and because of that, there is great opportunity to improve yourselves in careers and what have you. And because of that pro-growth policy, we have seen the deficit shrink by 26 percent.
And, thirdly, and I think this is very important to everyone at home, is that we are making sure on the Republican proposal that those dollars that we do spend, because we are always going to have some spending by the Federal Government, that those dollars will not be wasted, not waste, fraud, and abuse, but will be spent on those things that are critical to my State, to your State, to national security, to homeland security, and to our veterans as well.
So balance the budget without raising taxes, make sure we continue the
pro-growth tax policies that we have had in the past to create jobs, and make sure that those dollars are wisely spent. They all come under the umbrella of one thing, and you said it: to realize that these dollars come from the family budget. And our focus should be on the family budget and not on the Washington budget all the time.