Mr. Speaker, I thank the gentleman for yielding. I think it is important for those of us who have served here that we are down this frivolous route again: this unconstitutional effort to remedy the disaster that has been perpetrated by the…
Mr. Speaker, I thank the gentleman for yielding.
I think it is important for those of us who have served here that we are down this frivolous route again: this unconstitutional effort to remedy the disaster that has been perpetrated by the Republican tax scam.
Let me tell you what the CBO Director said, who is known to be the bipartisan, nonpartisan arbiter of the work that the Congress does.
First of all, they say the tax cut will create deficits of historic proportions. Not Medicaid or Medicare or Social Security. An $800 billion deficit in 2018, $1 trillion in 2019, and $1 trillion in 2020. That is what the Republicans have created.
Now, in this false and ridiculous, possibly unconstitutional effort, here we go again with a balanced budget amendment that will, in fact, deny and implode the needs of those who need Medicare, Social Security, and Medicaid.
This balanced budget amendment is antidemocratic in that it requires a supermajority in Congress to increase the debt limit, deficit spending, or raise revenue. All would have been unnecessary if we had not passed the tax scam. Remember, we gave the corporate tax relief a 21 percent number, instead of 25 percent, coming from 33 percent, when they didn't ask for it.
It is antidemocratic because it enshrines one particular economic theory into the Constitution: depriving future voters and future Congresses of the ability to adopt other economic approaches. That is our responsibility as leaders giving oversight to the needs of the American people, to the needs of the Pentagon, and to the needs of domestic spending.
By the way, this deficit will be more than domestic spending and defense spending. It raises separation of powers concerns because it would open the door to allowing Federal courts to make budget policy decisions. It is economically harmful because it would hamper the ability of Congress to respond to economic downturns and other emergencies.
Were anyone here in 2007 and 2008, particularly when the Secretary of the Treasury under the Bush administration came and told this Democratic Congress, of which I was a Member of, that America, as we knew it, was getting ready to end, that we saw the demise of Lehman Brothers and the collapse of the market, it wasn't Democrats who did that, it was Republicans. It is economically harmful because it would hamper the ability again for us to deal with those kinds of downturns.
It jeopardizes funding of Social Security and the military and civil service retirement system, and it undermines the Nation's financial system, including deposit insurance. It is unnecessary because Congress was able to achieve a balanced budget in the 1990s, of which I was here through the existing political process, and created the Children's Health Insurance Program.
Therefore, this balanced budget amendment is an amendment that creates havoc. What we should do is to undo the tax scam, repeal it, start again, and not implode Social Security, Medicare, and Medicaid. To the seniors who are living there: don't buy into a balanced budget amendment which is unconstitutional, buy into repealing the tax scam and standing for the American people.
I conclude by saying many national groups oppose this.
Mr. Speaker, I rise in strong opposition to H.J. Res. 2, the so- called Balanced Budget Amendment to the U.S. Constitution, which properly should be called the ``Cut, Cap, and End Medicare and Destroy Social Security Act'' because this is exactly what will happen if this amendment is passed by Congress and ratified by three-fourths of the several states.
A balanced budget amendment is a perennial gimmick periodically dusted off by House Republicans to divert attention from their manifest inability to govern competently or to manage the nation's finances.
H.J. Res. 2 is no exception coming as it does on the heels of the report by the Congressional Budget Office documenting that the Trump/ GOP budget deficit continues to climb and is projected to exceed $800 billion this year and to top $1 trillion next year and to remain at that level for foreseeable future.
Moreover, the CBO report confirms that the GOP TaxScam passed last year by this Republican Congress on a party-line vote will not pay for itself and is in fact the major cause of the rising the deficit.
Mr. Speaker, if our friends across the aisle really want to shrink the deficit, reduce the national debt, practice fiscal responsibility, and bring about sustained economic growth and prosperity, there is a much better, easier, and more certain way to achieve these goals than by tampering with the U.S. Constitution.
The easier and better way is for the American people to put a Democrat in the White House and Democratic majorities in the House and Senate.
In the 1990s under the leadership of President Clinton the budget was balanced for four consecutive years, the national debt was paid down, the national debt, 23 million new jobs were created, and projected surpluses exceeded $5 trillion.
Under President Obama the financial crisis and economic meltdown inherited from his Republican predecessor was ended, the annual deficit was reduced by 67 percent, the auto industry was saved from collapse, and 15 million jobs were created.
In contrast, under every Republican administration since President Reagan the size of the deficit bequeathed to his successor was substantially larger than the one he inherited, a major economic recession occurred, and economic growth was lower than the.
Turning to the joint resolution before us, I strongly oppose this latest gimmick for the following reasons:
1. it is anti-democratic in that it requires a supermajority in Congress to increase the debt limit, deficit spending, or raise revenue;
2. it is anti-democratic because it enshrines one particular economic theory into the Constitution, depriving future voters and future Congresses of the ability to adopt other economic approaches;
3. it raises separation of powers concerns because it would open the door to allowing federal courts to make budget policy decisions;
4. it is economically harmful because it would hamper the ability of Congress to respond to economic downturns and other emergencies;
5. it jeopardizes funding for Social Security and military and civil service retirement systems;
6. it undermines the nation's financial system, including deposit insurance; and
7. it is unnecessary because Congress was able to achieve balanced budgets in the 1990's through the existing political process.
It is for these reasons that numerous outside groups committed to the economic well-being of the United States as well as organizations concerned with the needs of the elderly, the middle class, children, and other basic needs of national importance strongly opposed a measure in the 112th Congress virtually identical to Chairman Goodlatte's current H.J. Res. 2, and that measure failed to garner a supermajority as required by the Constitution.
These groups included a coalition of 123 religious, labor, education, civil rights, child advocacy, and other organizations; a coalition of six national environmental organizations representing over one million members and activists; OMB Watch (now the Center for Effective Government); the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO); the Service Employees International Union (SEIU); the American Federation of State, County, and Municipal Employees (AFSCME); the National Education Association (NEA); the National Women's Law Center, Committee for Education Funding, and the Coalition on Human Needs.
Although there is a clear need to lower the long-term federal budget deficit, requiring a balanced budget through a constitutional amendment would be disastrous for the U.S. economy.
This Amendment is portrayed as the alternative to our country's deficit issue, but in reality, a Balanced Budget Amendment truly undermines the goal of a balanced budget by
threatening the survival of such critical programs as Social Security, Medicare, and Medicaid that serve as fundamental safety nets for millions of Americans.
These important social programs face greater demand when federal receipts are in rapid declines.
Requiring a balanced budget would force cuts to these and other important programs or force tax increases.
Either prescription would risk tipping a faltering economy into recession or making recession worse.
Any constitutional balanced budget amendment would limit the ability of the federal government to make important investments in worthy causes, including crucial public safety and homeland security programs.
Even at times of fiscal austerity, we must continue to provide for the country's public safety and homeland security needs.
Any constitutional balanced budget amendment would grossly undermine the ability to protect the lives and well-being of Americans nationwide.
Further, this Amendment will gridlock Congress during an economic downturn.
There has never been such a blatant effort to ransom the American economy in order to extort from the American public.
While I support bipartisan efforts to increase the debt limit and to resolve our differences over budgetary revenue and spending issues, I cannot support a bill that unduly robs average Americans of their economic security and ability to provide for their families, while constraining the ability of the Congress to deal effectively with America's economic, fiscal, and job creation challenges.
We need to change the tone here in the Congress.
There has been a theme in previous Congresses and in this Congress of focusing on cutting programs that benefit those who need it most, while ignoring the need to focus on real and contemporary job creation and economic recovery.
And by real and contemporary job creation, I do not mean Trump's unsubstantiated and impossible promise of coal jobs.
The creation of coal jobs is one of the many myths and false hopes peddled by the current White House.
The promise that jobs in coal are just around the corner is fake news.
Our time could be better spent focusing on ways to increase American jobs, growing our economy, and investing in our people, paying our bills, and resolving our differences.
That is the way you make and keep America great.
A balanced budget is not something that should be mandated in our Constitution, nor is it something that should be required every year, proposing an idea that offers little guarantee of success.
In particular, during economic downturns, the government can stimulate growth by cutting taxes and increasing spending.
And in fact, the cost of many government benefit programs is designed to automatically increase when the economy is down--for example, costs for food stamps (SNAP) and Medicaid increase when more people need to rely upon them.
These countercyclical measures lessen the impact of job losses and economic hardship associated with economic downturns.
The resulting temporary increases in spending could cause deficits that would trigger the balanced budget requirements at the worst possible moment.
A constitutional amendment requiring the Congress to cut spending to match revenue every year would both limit the Congress's ability to respond to changing fiscal conditions and would dramatically impede federal responses to high unemployment as well as federal guarantees for food and medical assistance.
As with the outlay cap that a Balanced Budget Amendment would bring, tying outlays to a percentage of GDP would impose arbitrary limits on government actions to respond to an economic slowdown or recession, when GDP declines.
Cutting spending during a recession could make a recession worse by increasing the number of unemployed, decreasing business investment, and withholding services needed to jump-start the economy.
The proposed Balanced Budget Amendment would render Social Security unconstitutional in its current form due to the Amendment's prohibitive stance on that system of spending.
Capping future spending below Reagan-era levels would force devastating cuts to Medicaid, Medicare, Social Security, Head Start, child care, Pell grants, and many other critical programs.
Because this proposal would make it impossible for the Congress to increase revenues rather than to cut spending, it is virtually a political ploy that reflects the Republican priorities of ending the Medicare guarantee while cutting taxes for millionaires.
The need to raise the debt ceiling has no correlation to whether future budgets are balanced; increases in the debt ceiling reflect past decisions on fiscal policy.
And as demonstrated by current disagreement about whether and when to raise the debt ceiling, Congress does not need to impose further barriers to its consideration.
Treasury has warned that failing to raise the debt ceiling and the resulting government default, which would be unprecedented, would have catastrophic impacts on the economy.
Interest rates would rise, increasing costs for the government and for American businesses and families.
Any cuts made to accommodate a mandated balanced budget would fall most heavily on domestic discretionary programs; the immediate result of a balanced budget amendment would be devastating cuts in education, homeland security, public safety, health care and research, transportation and other vital services.
Under H.J. Res. 2 total funding would be cut for non-defense discretionary programs, including veterans' medical care, most homeland security activities, border protection, and the FBI.
Therefore, these cuts will impact funds to protect our nation's food and water supply, environmental protections, medical research, education, and services for disadvantaged or abused children, frail elderly people, and people with severe disabilities.
The Founders purposely made the Constitutional amendment process a long and arduous one.
It is foolish, reckless, and decidedly not conservative to rush to pass an amendment altering our nation's founding document on such short notice and without reasonable time for debate.
Republicans who support this proposed amendment to the Constitution have demonstrated, at this critical juncture in American history, that they are profoundly irresponsible when it comes to the integrity of our economy and utterly bereft of sensible solutions for fixing it.
Medicare covers a population with diverse needs and circumstances.
Most people with Medicare live on modest incomes.
While many many beneficiaries enjoy good health, 25 percent or more have serious health problems and live with multiple chronic conditions, including cognitive and functional impairments.
Today, 43 percent of all Medicare beneficiaries are between 65 and 74 years old and 12 percent are 85 or older.
Those who are 85 or older are the fastest-growing age group among elderly Medicare beneficiaries.
With the aging and growth of the population, the number of Medicare beneficiaries more than doubled between 1966 and 2000 and is projected to grow from 45 million today to 79 million in 2030.
For these reasons, I am strongly opposed to despoiling the Constitution by even considering the Republicans' latest Balanced Budget Amendment gimmick.