Mr. President, let me thank our Democratic leader for that very kind intro. I will confess that I come to the Senate floor today with a pretty heavy heart. The effort that we are engaged in right now is going to be extremely damaging to…
Mr. President, let me thank our Democratic leader for that very kind intro.
I will confess that I come to the Senate floor today with a pretty heavy heart. The effort that we are engaged in right now is going to be extremely damaging to our country. We are talking about hundreds of billions of dollars in cuts to Medicaid that are part of the plan here. And we are talking about hundreds of billions of dollars in cuts to Medicaid that are coming on top of this tariff madness emanating from the White House that was already estimated to cost families north of $3,000 a year in added costs for the same stuff--average $3,000 per year, per family. And that was before the retaliatory tariffs came back, so that is kind of the baseline.
Trump campaigned on lowering costs and the first thing he has done is to raise costs by thousands and thousands of dollars for American families. On top of that, their pensions and 401(k)s got slaughtered. I think it is about $3 trillion in value was lost because of this maniacal tariff effort that gives nobody any confidence about which way we are going to go.
Set aside how bad the tariffs are--like the lesson the last time we tried this back in the Depression era--isn't it obvious enough that tariffs harm the economy unless they are precise and intelligent and purposeful and focused, which these are, by definition, not.
But just the uncertainty, just the fact that every day it is a different tariff, it is another number. It is such a ham-handed ``Gong Show'' over at the White House that the White House website and the White House press conference put out different numbers for the same companies. This whole thing is like being run by the Keystone Cops, but they are playing with economic dynamite.
And between what is about to happen to Medicaid, which supports so many folks: mothers and fathers, aunts and uncles in nursing homes; that supports so many folks: spouses, sisters when they give birth; that supports so many folks: family members who are in addiction recovery and are getting support from programs in Medicaid--when you kick out elderly family members from nursing homes, you are doing a real blow to a family on top of the $3,000-plus, on top of the hammered 401(k) or pension.
So this is a very, very grim time for American families economically, and there is no sense or logic behind it. There is big talk, but it is really economic nonsense that is happening around us right now.
Into this comes--like that is not bad enough--a complete disavowal, a completely hypocritical repudiation of things that Republicans have claimed to believe in for a long, long time. And what we are seeing in this budget reconciliation process is massive lies exposed.
The first one is that Republicans care about the debt and the deficit. Let me tell a few stories about my time as chairman of the Budget Committee. As chairman of the Budget Committee, I paid a lot of attention to what climate change portends for the American economy. And the reason I did that is because there is some pretty damned serious and very dire warnings that are out there and that come from some pretty darned serious people--not Green New Dealers but really significant people, often ones who have a fiduciary duty to get this right. They can't be like the fossil fuel industry and lie at an industrial scale about climate change because they have a fiduciary duty to tell the truth and get it right. And in particular, that is the insurance industry.
I will show you. Last April, The Economist magazine cover article: ``The next housing disaster.'' The next housing disaster is what they predicted to be a $25 trillion hit to the global real estate asset class. Why? Because of climate risk because if you can't get insurance on a property, you can never again get a mortgage on that property. And when most Americans still buy their property with a mortgage--it is fine if you are one of Trump's billionaires and you swap properties around paying cash--but if you are like most Americans and need a mortgage to buy your property or if you are like most homeowners and you want to sell your property, you need to find somebody who can buy it with a mortgage.
Well, if your property won't support a mortgage any longer because your property is too dangerous to insure, here is what the chief economist from Freddie Mac said about that. He said that you have an insurance crisis in homeowner's property insurance, which we are already seeing in Florida. This is not a prediction in the future, this is a now thing. We are in the early stages of this. It is happening.
Earnest Hemingway was asked: ``How did you go bankrupt?'' He said: Gradually, and then all at once. We are into gradually already, and we don't know when ``all at once'' will happen.
But when it is $25 trillion out of the world's largest asset class, that is a massive economic hit to our economy, so the insurance crashes. Right behind that comes the mortgage crash. Right behind that comes the property values crash because no mortgages. And that leads to another recession, according to the chief economist of Freddie Mac, the American mortgage giant. And he made that prediction of insurance crash to mortgage crash, to property values crash, to national economic crash based just on the risk to coastal properties.
You see here how they use the ocean tearing away at the underpinnings of the real estate. He was looking at coastal property risks. He was talking about a coastal property values crash. Well, guess what. Coastal risk now has an evil sibling that is just as bad and may be worse, which is wildfire risk. Look at what happened to L.A. Look at how wildfire seasons have become year-round in parts of the West. Look how wildfire area has expanded beyond traditional wildfire risk areas.
Between coastal risk and wildfire risk, our insurance markets are taking a beating, and that is the cascade into economic recession. A third of our debt comes from economic hits to our economy--COVID and 2008. So if we are going to be serious about the deficit and about debts, we have to be serious about the major risks to the economy. So The Economist is one of these warnings.
But just to show how serious this is, I want to go through a couple of others. Allianz. Allianz is one of the biggest insurance companies in the world. And one of its board members just wrote an article saying climate change, if we don't fix it soon, is going to be the end of the insurance industry business model. And that is going to cascade into other parts of the economy where insurance is essential to support the other industry.
Well, mortgages is an obvious one. But there are others because throughout the financial system, there are deals that are held together because of insurance policies.
So he predicted--the headline was really extreme--the headline was ``End of Capitalism.'' I don't know if that is true, but you can sure as heck expect a very significant economic wipeout as the insurance markets collapse in the face of unpredictable risk. So that was Allianz.
Jay Powell, Chairman of the Fed, wants nothing to do with climate. He doesn't want to talk about it. He is not green one bit. But he testified about 3 weeks ago in the Senate Banking Committee that in 10 to 15 years, there will be whole regions of the country where you can't get a mortgage any longer. There is that cascade--no insurance, no mortgage, property value crash, recession. The Fed Chair is confirming that domino. In 10 to 15 years we will fall.
The mortgage bankers--my God, talk about a group that is not green. The mortgage bankers have written a report called ``The Impact of Climate Change on Housing and Housing Finance.''
Mr. President, I ask unanimous consent that the executive summary of that report be printed in the Record at the end of my remarks.
You have The Economist magazine, which is not green at all, a very conservative, international publication. You have Allianz, one of the insurance giants of the world. You have the Chairman of the Federal Reserve. You have the Mortgage Bankers Association.
What else have we got? Well, the Financial Stability Board. The Financial Stability Board is the board that warns the World Banking system of risks to the World Banking system that it has to prepare for. What did they just warn the World Banking system? Better get ready for this risk--better get ready for this risk for two reasons, actually.
One is when the insurance crash wipes out mortgages, it wipes out a huge revenue part of the banking system. The second is, after you lost all that revenue because mortgages aren't available in whole regions of the country any longer, then you have the problem that banks are solvent or not, in large part, dependent on what is called their loan- to-value ratio.
Their value depends on the value of the properties against which they hold the mortgages. If the value of a property crashes because it no longer can support a mortgage and can't be sold to anybody except somebody who can pay cash or because the carrying costs of the property insurance have gotten so great if it goes from $4,000 to $5,000 a year to $16,000 to $20,000 a year, that crashes the value of that property.
And when that property value goes down, the bank has to keep track of that. And when they go underwater on a loan, when the amount that they have loaned out becomes less than the value of the property, and when that is happening across the board, particularly for regional banks in a region where you can't get mortgages any longer and property values have crashed, you have a serious banking solvency problem. And that is what the Financial Stability Board reports.
I would commend that report to anybody who can put up with complicated economic terminology. It is not a fun read. But it is pretty telling when the body responsible for economic stability in the world's banking system is putting out these warnings.
So you have The Economist, you have Allianz, you have Chairman Powell, you have the mortgage bankers, you have the Financial Stability Board. I mentioned already Freddie Mac's chief economist who explained how this cascade works. More recently, another group called First Street just stood up, and they showed what is going to happen in specific areas where property values are going to crash; where premiums are going to soar--property values down by as much as 100 percent, total wipeout--and premiums quadrupling in places.
And then Deloitte comes along, the corporate consulting firm--not green at all--and they warn that if we screw up on climate, if we continue to screw up on climate versus if we get it right, the swing 50 years out from now will be $220 trillion in world GDP.
So I spent a lot of time talking about this in the Budget Committee. Did my Republican friends want to hear about it? No. Why not? Because that party is funded by the fossil fuel industry and can't bear a serious discussion about climate; can't bear looking at the lies that the fossil fuel industry dispenses in industrial levels. They have a whole apparatus of fraud--front groups with funny names that constantly put out false information; people who pretend to be scientists and cook up fake science that comes not out of labs and research but out of Madison Avenue propaganda firms.
So what they said to me over and over again was: Why are you talking about climate? That doesn't have anything to do with the budget. You need to be talking about deficits. You need to be talking about debt. They are all about how our children are going to have their futures imperiled by deficits and debt.
Well, they are going to have their futures imperiled by climate change is what all pretty much anybody who is sensate still is showing. But, oh my gosh, how much talk I had to listen to, how much self- serving, self-aggrandizing talk I had to listen to about how we really, really had to deal with our debt and deficit problem.
Well, look at what they are up to now. The Senate budget that the Republicans are pushing blows the deficit through the roof by 2035-- doubles it, our national debt. I said the deficit, I meant our national debt. We are talking here about $60 trillion in debt.
Where was ``we want to raise it to $60 trillion in debt'' when I was getting all these lectures in the Budget Committee from all my Republican friends about how the most important thing was our national debt?
The House budget resolution is no better. It is just as bad--$30 trillion goes to $56 trillion. And if you look at some of the numbers here, we got a letter--I ask unanimous consent to have the letter printed at the end of my remarks.
It comes from the Joint Committee on Taxation. It is their job to review these things. It begins:
Dear Senator Whitehouse, Senator Wyden, Mr. Neal and Mr.
Boyle:
This letter is in response to your request for revenue
estimates to extend permanently the individual tax
provisions--
Et cetera. We asked: What is it really going to cost for the Republicans to do this stuff? Well, here at the bitter end, you actually get to the numbers. The numbers are the total of the tax provisions just over 10 years. Just to like here goes up $4.6 trillion. And then because you have to borrow money to fund that additional $4.6 trillion, the Republicans want to add to our debt. The actual number settles out at $5.5 trillion. And $5.5 trillion is added to our national debt after all of those lectures--after all of those lectures--I got about how you couldn't pay any attention to climate change while their pockets are stuffed with fossil fuel money, metaphorically. Instead, we get really focused on the deficit, and the first chance they have to focus on the deficit and the debt, what are they doing? It is up $5.5 trillion--trillion
with a ``t.'' If you throw in the new tax breaks on top of the 5.5 that we asked about, it goes to $7 trillion--$7 trillion.
The Senate Republicans--here is where it gets really sick because they are cheating the budget process. They get to the lie that this won't cost money by cheating. They are planning to simply ignore what the Congressional Budget Office said and ignore what the Joint Committee on Taxation calculated. They are planning to dodge the Parliamentarian and just make up numbers on their own and ignore what the statute says contrary to five decades of law and practice.
The budget law, for instance, includes a section telling CBO how to count tax cuts. They ignore that section. They just make up their own numbers. You don't need to be a budget expert to figure out that $7 trillion in tax cuts is going to worsen the budget. It is going to worsen the debt.
In fact, we kept bringing in witnesses to talk about the debt and the deficit, and the Republicans could never produce a witness who said that tax cuts paid for themselves. Scott Hodge from the conservative Tax Foundation, who was a witness, called to the Budget Committee by the Republicans, said that the Tax Foundation modeled every iteration of what became the Tax Cuts and Jobs Act, which is the Trump tax scam 1.0, and that at no time did their model ever predict that it would pay for itself. The model does not estimate that virtually any tax cut will pay for itself. That is the kind of myth that has been created.
So it is really frustrating to hear colleagues who lectured me and lectured me and lectured me, as their excuse to ignore the very plain climate economic risk we are facing, about how we really had to deal with the debt, and then when they have the chance, what they are doing is they are blowing it through the roof, and to do that, they are going to hack away at Medicaid.
At the end of the day, most of this goes to the very rich. The original thought was that, at $4 trillion, it was $2 trillion-plus just going to a very small group of extremely rich people and very big corporations.
Our Tax Code is riddled with corruption. We could raise a lot of money and actually fix the deficit by pulling out the corruption. But the big businesses would squeal and scream because they don't like paying taxes, and for a long time, they haven't had to.
In what some of my colleagues seem to think are the good old days-- that is the 1950s, the good old days in America when men were men and life was good--corporations contributed 30 percent of America's revenue. Corporations contributed 30 percent of America's revenue. Look at what has happened to it year after year after their lobbyists have come here and after they have written checks to Republican super PACs after they have worked this building. They are down to about--under 10 percent. They have been down as low as 6 percent.
By the way, it is not because corporations got smaller and poorer in that time. They are bigger than ever. The fossil fuel industry alone made the biggest profits in corporate history by gouging American consumers after international prices went up post Putin's invasion of Ukraine.
There is plenty we could do to solve the debt problem, but--oh, my God--the flagrancy of the lie about concern about the deficit is pretty stunning.
The other thing that they have said--and I will close with this. The other thing that they have said is: Oh, we have to defend the filibuster at all costs. Oh, we can't do the nuclear option. Oh, the only time we possibly ever use the nuclear option is when the Democrats did it first.
So they did a nuclear option to put their people on the Supreme Court and blamed it on Harry Reid because he had done the same thing for the DC Circuit after they had put up a firewall around the DC Circuit. But since then, it has been: We will never, never, never, never, never, never blow up the filibuster. We will never use the nuclear option.
Well, here is where we are with the Parliamentarian right now: They have done an end run around getting a determination on whether this stunt that they are pulling by pretending that these tax cuts don't have any economic effect and don't add to the debt will get reviewed by the Parliamentarian.
I will tell you one thing: There have probably been documents brought to the Senate floor before that contained a lie, but I can't think of one that has been brought to the Senate floor that both contained a lie and that lie's own rebuttal in the same document.
The lie is that all of these tax cuts for billionaires and big corporations won't add to the debt. That is imaginary. That is fake. That is not economically possible, but they say it. Then, in the same document, they lift the debt limit by $5 trillion. If these tax breaks don't have any cost and don't add to the debt, why do they need to raise the debt limit by $5 trillion?
The problem is, it is very hard to go to the Parliamentarian's Office and say: This is legit because, at the same time, I am lying that it is free and adding $5 trillion in debt limit because it obviously isn't free.
When you are dealing with the debt limit, you are dealing with banks and the Treasury and people who can't participate in the Senate hothouse lie that this doesn't cost $5 trillion, and so you have these two things side by side in the same bill--the lie and its own rebuttal baked right in.
How do you get that by the Parliamentarian? It is very hard to do, so they skip. But the problem is that sooner or later, there will be a parliamentary ruling. Maybe they hope that they have so much steam built up that the Parliamentarian will just roll over or maybe this whole thing just blows up and the Parliamentarian says: No, you can't do that. You have a lie and its own rebuttal in the exact same document. You can't pretend this is a true thing.
Therefore, it is not compliant with the budget laws for all of the reasons I mentioned earlier: out of compliance with the CBO; out of compliance with Joint Committee on Taxation; out of compliance with proper reporting--all of it.
So what does that mean? That means that at some point, the time will come when the Parliamentarian says ``nope'' and blows the whistle. They think that that is going to happen already, which is why they are doing the end run. When the day comes and it actually happens, that is when they will have to go to the nuclear option because otherwise this all will have been in vain. So we are on a path to the nuclear option.
Pretty much everything Republicans have claimed to stand for is destroyed in this process--the hypocrisy alert about the deficit and the debt--and now they are raising it by huge numbers.
When you have to put real numbers in the document, you simply deny them even though the debt numbers prove the lie. When there are budget rules that we have honored for decades, they are going to ignore them, just blow it through. There is the end run around the Parliamentarian, folks. Then, at the end, they go nuclear after saying: We would never, never, never, never, never, never do that.
This whole thing is such a con and such a shame and will cause so much damage to families dependent on Medicaid--all so they can give billions of dollars in tax breaks to big corporations and to billionaires, who don't need it. In fact, their share of Federal revenue has gone down from like over 30 percent to below 10 percent. They have just walked away from their responsibilities to help fund America. They left that on the backs of regular taxpayers. And it is not enough for them to be under 10 percent; they want more. They want to get that down to--what?--5 percent? 4 percent? nothing and be complete freeloaders? This thing is an embarrassment.
I will say I rest my case, but when you actually look at their debt limit numbers, maybe I should say they rest my case.
I yield the floor.
Would the Senator care to engage in a brief colloquy?
I ask unanimous consent that we be allowed to do so.
I was here for your point about mental health and addiction recovery care. As you will recall, you and I and others worked together to get the Comprehensive Addiction and Recovery Act passed.
That was a very bipartisan effort because the scourge of the opioid epidemic fell across all Americans. It was one of my happier and prouder moments when that bill actually got passed and then when the Appropriations Committee came behind the CARA bill and put funding in. But the bulk of the programs that we put together in CARA--bipartisan programs--were funded through Medicare, Medicaid. That is how you get reimbursement for those programs.
So doesn't it seem peculiar that our colleagues on the other side who were so instrumental in pushing through that Comprehensive Addiction and Recovery Act to help their constituents at home and who at the time showed so much sensitivity to the needs of people going through addiction recovery, through all of the stages--from initial detox to in-house treatment, to sober living, and on to medication-assisted treatment sometimes, and then recovery support--all of that seemed to bind us together. What on Earth could be the madness that inspires them to tear all that down now, when they built it within the last decade with us?
And if the Senator would yield on that very point.
There is a doctrine or a principle that is kind of a tedious economic term, ``marginal utility of money.'' What it means, in very plain terms, is that if you make $60,000 a year, your last thousand dollars of income is a big deal to you. That thousand dollars makes an enormous difference in the quality of your life.
You take that same thousand dollars, and you give it to somebody who is making $60 billion a year, and they don't even know it is there.
The marginal utility of that money in the billionaire's or megamillionaire's life is near zero--near zero.
So if you are actually looking at the human side of the financial equation, are we not taking extremely important dollars that make an enormous difference in the lives of normal, regular people, scooping them up by the trillions--according to the graphs I showed--and delivering them to a crop of big corporations that already pay taxes too low and megamillionaires and billionaires who won't even notice the money. It won't change a thing in their lives. They can still buy a $90,000 purse for their wife. They can still buy the ninth house. They can still buy the 190-foot yacht, with its crew of 30 or 40 or 50, or whatever it is. Where is the benefit?
You know, we talk about this as being a transfer of wealth from the poor or the middle class to the very rich, but it is really an evaporation of wealth because it is not going to make a difference to people who already have more money than they can spend for the rest of their lives. They couldn't spend it if they wanted to for the rest of their lives. So this additional thing, it is more like a trophy.
It reminds me of when I was growing up. People were talking about F.D.R., recalling his Presidency, and talking about J.F.K. while he was President and shortly thereafter. I was alive during J.F.K.'s life. People used to say: Well, you know, the good thing about electing those rich people is that they are too rich to steal. You don't have to worry about them. They are too rich to steal.
F.D.R. never stole a nickel, as best I can tell. J.F.K. never stole a nickel, as best I can tell.
This crop of creepy billionaires--what happened to ``too rich to steal,'' Senator Murphy.
And if I can reclaim my time for a moment and ask the Senator another question, it looks to me a bit like, as they are destroying
Medicaid--which, as you pointed out, serves a quarter of American households and is essential to most households because it is granny's nursing home care, it is your sister's or wife's childbirth delivery in the hospital, or it is your colleague or friend or family member's opioid recovery treatment--swept away for unnecessary and unfair tax cuts to billionaires and big corporations.
But then you move just beyond this immediate budget bill and you look over at what Elon Musk and his little ``Muskrats'' are doing to Social Security and what they are saying about Social Security, and it looks like not only do they want to gut Medicaid through this budget reconciliation bill, but they also are trying to wreck the administration and operations of Social Security, trying to clear out the workforce that makes it work, sending their creeps in to probe into the data systems that support it. Who knows what damage has been done to the data systems or what extraction of data has been done. We don't know. They have never answered questions. They lie and say it is a Ponzi scheme. They refer to it as riddled with fraud when there is almost no fraud at all--1 percent at best.
So they are trying to discredit Social Security, they are trying to undermine its operations, and they are talking about an interruption in benefits--in fact, talking kindly about interruption in benefits with the Secretary of Commerce saying: If we had an interruption in benefits, my mother, who is a Social Security recipient, wouldn't even notice.
Well, yes. She is living in her billionaire son's house. Of course she wouldn't notice. Duh.
But the people who would complain about losing their check, they are probably fraudsters, and so it would actually be beneficial to have an interruption in benefits because that is where we can root out some of the fraud--like there is fraud. Again, feeding the lie that there is fraud.
What conclusions do you reach when you see this pattern of activity targeting Social Security, even if an attack on it is not in this bill per se?
Particularly when there is so much money to be made. So much flows through Social Security. If you take it over by wrecking it and then sending in your private-equity friends and tech bros to get it operational again and then let them slice off a share for themselves by privatizing either it or its operations, you have created a massive new revenue stream for the superrich.
So with that, I see that there are a few colleagues on the other side who have come over. It may be that it is their turn.
Senator Murphy, are you OK to yield the floor?
I yield the floor.