Mr. Speaker, I thank the gentleman for yielding to me, and I appreciate the opportunity to share some of my thoughts with my colleagues, because I thought when President Bush took office, he promised to maintain the projected budget…
Mr. Speaker, I thank the gentleman for yielding to me, and I appreciate the opportunity to share some of my thoughts with my colleagues, because I thought when President Bush took office, he promised to maintain the projected budget surplus. He promised to pay off the national debt and help the middle class working Americans. Instead, what I have seen is his policies have led to record deficits, increased Federal debt, and have put a squeeze on the middle class. These failed policies burden all Americans and endanger the future of hardworking families in Nevada and throughout this Nation.
When President Bush took office in January of 2001, the Congressional Budget Office projected a 10-year, $5.6 trillion surplus. Because of the irresponsible and failed economic policies of the Bush administration and the congressional Republicans, we can now expect a 10-year $3.5 trillion budget deficit. This is a $9 trillion, dare I say it, dare I use the word, flip-flop.
This year's deficit alone is a record $422 billion, the largest deficit in this Nation's history. We have gone from one of the largest budget surpluses in our Nation's history to the worst deficit our Nation has ever seen. And it does not matter what these neoRepublican economists are now saying. The facts are deficits matter.
Federal deficits directly affect every American. Higher deficits mean increased interest rates, higher car payments and rising mortgage costs. If the deficits continue the way they are, mortgage rates could go back to where they were in the 1980s, through the roof, making the dream of American home ownership virtually impossible for working families in this country. If interest rates rise by just 1 percent, 1 percent, homeowners will pay an additional $1,200 in interest payments every year for a typical $150,000, 30-year, fixed-rate mortgage.
Mountings deficits have also increased the Federal debt. The Federal debt was $6.7 trillion at the end of 2003. By the way this administration is going, the debt is going to be over $14 trillion in another 10 years. The Bush administration's solution to this skyrocketing debt, just raise the national debt ceiling for the third year in a row.
So what does an increase in the Federal debt mean to the people we represent? This year, Americans will spend $159 billion, an average of $4,400 per family, to pay the interest on the debt. Our constituents, the good people of Nevada, South Carolina and Virginia, want to spend their money on something else other than paying off the national debt. How about paying down their credit cards? How about paying their own student loans or house payments?
And how far is this President willing to go? How much more will this President drain from American families. How long are we going to put up with his fiscal foolishness and irresponsibility?
The Bush administration and congressional Republicans have had plenty of opportunities to fix this financial mess. They have not. They have refused to require spending offsets for new tax cuts as well as for new spending. We call this PAYGO, and it is essential to restoring this country's fiscal health.
In the 1990s, PAYGO led to budget surpluses and the largest economic expansion in this Nation since World War II, and it is hard to imagine responsible leaders rejecting this proven and successful budget policy. PAYGO, what is it? It is simple, we do not spend what we do not have. You pay as you go. It makes sense to everybody else except President Bush and the Republican leadership in Congress.
This administration and this Republican Congress are failing American families by failing to address our growing deficits. The first of 77 million baby boomers will be collecting Social Security benefits in less than 4 years and Medicare in less than 7. We should be preparing now by saving more and getting our Nation's economic house in order. Are we doing it? No we are not. President Bush and the Republican Congress are closing the door on a house on fire. They are running up the biggest deficits in history, no planning, no savings, no economic strategy, just reckless, foolish borrowing and spending.
To make matters worse, the Bush administration and Republican leaders are pushing for new tax cuts for corporations and for people who do not need more tax cuts. New tax cuts are not the solution. In 2004, this past year, 46 percent of Nevada taxpayers, the people I represent, received a tax break of less than $100, and what did Nevadans get for this $100?
Since President Bush took office, health care costs for families have risen $793; college tuition and fees have increased over $1,200; and gas prices have gone up an average of 33 percent. The average Nevada family now spends $495 more this year on gas than they did when President Bush took office. A $100 tax break barely dents the skyrocketing cost of living.
It is time for President Bush and Republicans in Congress to address the enormous financial burdens these growing deficits are placing on us. It is time to stop turning a blind eye to the burdens their failed policies will place on our children. It is time the American people hold President Bush and the Republican Congress accountable. I do not know what we have to do to make the American public wake up and see what is going on because night after night, day after day, we stand here, and we tell the American public what is going on and what is going to happen, and until we realize the seriousness of these deficits and the foolishness of this administration's fiscal policy, I fear that we are going to be in a world of hurt when this is all over.