Mr. Speaker, I rise for the purpose of inquiring of the majority leader the schedule for the week to come. At this point in time, I yield to my friend, Mr. Cantor, the majority leader, for that purpose. I thank the gentleman for his…
Mr. Speaker, I rise for the purpose of inquiring of the majority leader the schedule for the week to come. At this point in time, I yield to my friend, Mr. Cantor, the majority leader, for that purpose.
I thank the gentleman for his comments.
We had originally thought that we would not be meeting on Monday. I want to make it clear to Members that the majority leader has indicated that we will be meeting on Monday and coming in at 6:30, so they take note of that and their staffs take note of that as well.
Mr. Leader, can I ask you if you know or have some pretty good sense of, on Tuesday, do you know what we might be considering on Tuesday?
I say that because a number of Members who had scheduled things Tuesday during the day have asked me that question, and I'm wondering whether or not you have any thoughts on that. My presumption is the Defense bill conference probably won't be done by that time. I don't know whether that's your sense or not.
I yield to my friend.
I thank the gentleman for that information. The Members will find that helpful.
The majority leader mentioned last week and reiterated this week that we will not adjourn the 112th Congress until we've averted the fiscal cliff. I think the American people would share that view and would hope that was the case. I hope that's the case as well.
On the fiscal cliff, one of the things, of course, in the fiscal cliff, one of the items of concern--we had a debate on the floor today, and the majority leader and I have discussed it again last week and the week before that. Part of the negotiations are with respect to the 98 percent of Americans who fall in the category that we seem to have agreement on should not receive a tax increase.
There have been an increasing number of Republicans and Democrats who have urged us to take that issue on which we agree in the near term, and I again ask my colleague, the majority leader, whether or not there is any possibility that next week we might consider at least that segment.
And let me make perhaps a wrinkle of a suggestion to the majority leader, if I might. Obviously, we have a disagreement on that over 250. We could, Mr. Majority Leader, perhaps consider two bills--one for those under 250 or 200, the Senate bill, essentially, and another bill that you might bring to the floor which would involve extending the tax cuts on those over those limits--so that Members, even though there's a disagreement, could express themselves on both of those propositions.
I know the gentleman has made the point repeatedly that there are small businesses that would be hurt if we did not extend over the $250,000 level. That would give Members an opportunity to express themselves on that point of view as well as expressing themselves on the under $250,000 and under $200,000 for individuals. My presumption is both of those bills would pass. And that would give the Senate two bills to consider and to send to the President to at least, to the extent we can reach agreement, have some certainty brought to some segment of the population.
I thank the gentleman for his comments.
Of course, we have this discussion on a regular basis. I'm sure everybody in America looks forward to this discussion.
Obviously, when the gentleman talks about small businesses, he is essentially talking about 3 percent of the small businesses in America, because 97 percent of the small businesses, those job creators of which the gentleman speaks, 97 percent of them make less and would be positively affected by the bill that affects those under $200,000 individually and $250,000 collectively. Of course, 100 percent of the small businesses would be assured--let's say they make $350,000--would be assured that the first $250,000 would not get a tax increase.
So I tell the gentleman I am concerned about those small businesses, and small businesses will be included in the under $250,000 and under $200,000 as well. One hundred percent of America, no matter how much they make, would have the assurance that the first $250,000, or $200,000 if they are individuals and not families, that they would not get any tax increase.
The gentleman, particularly in the election cycle of 2010, talked a lot about--and I agreed with him--about bringing confidence, certainty of what the tax structure and what the rules would be. I suggest to the gentleman small businesses, whether they be in the 97 percent or the 3 percent--the 97 percent being affected by the bill that I would like to see passed, that the Senate has passed, but the other 3 percent, as I say, would be positively affected, knowing full well that the first $250,000 of income would not see any increase in their taxes. I think that would be a positive step for those small businesses and the small businesses above and below those figures.
I thank the gentleman for his comments, and I agree with him, as he knows, to staying here until we get this problem solved. America expects it. America, more importantly, needs it.
The economy needs the confidence of a resolution of this stalemate, so I agree 100 percent with the gentleman. But let me say in terms of, again, one of the disquieting factors is we can't even act on that on which we agree.
Now, the gentleman and I disagree on a proposition, and that is the gentleman believes and cites a study, which we think is of questionable validity, that says we're going to lose jobs if we raise taxes on those above $250,000. We don't share that view, and most economists that I talk to don't share that view. But there is a study that the gentleman refers to that says that. I understand that. And what I'm saying is we can vote on that and some of us will agree and some of us will disagree.
But if we can't vote on it--let me call the attention to somebody who's certainly not a Democratic spinmeister, but I think the perception will be that what we are doing is holding the better off, if we can't help them, we can't help those who are not making as much money. I'm sure you're aware of David Brooks' column in The New York Times. He's not a liberal Democrat--or not a Democrat. I don't think he's a Democrat or Republican, but a more
conservative columnist. He says this, and I quote from The New York Times just a few days ago:
Sometimes you have to walk through the desert to get to the
Promised Land. A budget stalemate on these terms will confirm
every bad Republican stereotype. Republicans will be raising
middle class taxes in order to serve the rich--shafting Sam's
Club to benefit the country club. If Republicans do this,
they might as well get Mitt Romney's ``47 percent'' comments
printed on T-shirts and wear them for the rest of their
lives.
I use that quote not to criticize but to say that the perception, I think, is, if we do not act on something on which we agree, we are not doing so because we want to make sure that the best off, if they're not helped, nobody will be helped, and I think that's not good for the country. I think, frankly, it's not good for the Congress, not necessarily Republicans or Democrats. I think we're all perceived as either having the ability to act or not act. If we're going to get this fiscal cliff resolved, it will be because we agree on that which we can agree. Here, we do.
We have 167 CEOs who have written to us saying that the Business Roundtable agrees that we ought to move in this direction. Senator Corker said that just the other day. Others have said that as well. And I really don't think it's either a political ``gotcha'' or political advantage. I just think it will do what the gentleman talked about. It will give confidence to 98 percent of the American people who pay taxes that they don't have to worry on January 1 about their taxes going up. It seems to me that's a positive for our economy because it will give them confidence that they're going to have resources to do some of the things that will help our economy grow.
I understand the gentleman's position is that there will be 2 percent who won't have that confidence and 3 percent of small businesses who, as the gentleman points out, those 3 percent are relatively large businesses in the sense that that 3 percent gets 53 percent of the business income. He's correct. Those are large small businesses or, in many cases, individuals who just make a lot of money, and that's fine, but they're not the majority. I think job creators, in terms of the numbers of small businesses, are those who add one or two or three people to their rolls.
We can get off this, but I certainly will yield to the gentleman and hope that we can do that.
The reason you've gotten the suggestion of the two-bill strategy, or two-bill scenario, is because that gives everybody in the House of Representatives--and you talked about this particularly in 2010, but you've talked about it since then of giving the House of Representatives the opportunity to work its will. Two bills, if you move them forward, one which the President says he will sign, one which the President says he will veto--and after all, he's going to be our President for the next 50 months--we can get something done. At the same time, all 435 Members--or 433, I think we have presently--can express their views on those issues on which we have agreement and those issues on which we have a disagreement.
I yield to my friend.
If the gentleman will yield, what I have said is everything needs to be on the table, not that I agreed with everything that would be on the table. I have some very substantial reservations about age increase. Particularly--it was in the Ryan bill--it doesn't get you any money in the next 10 years so it will not help us get to that fiscal crisis.
What I have said, and I'll repeat, is you have the right to put everything on the table; we have a right to put everything on the table. If you're going to have an honest negotiation, we ought to consider everybody's point of view. That's what I've said.
I thank the gentleman for his comments.
It is a discussion the country is having. It's a discussion we need to have, and we need to have it honestly with one another.
The gentleman knows my position: it's not taxes or spending; it's if you buy something, pay for it. We haven't done that. That's what creates debt. Taxing doesn't create debt; spending doesn't create debt if you pay for it. Spending creates debt only if you don't pay for it. The revenues--taxes--are what you pay for things that you buy. We are buying things and we're not paying for them, and your children and mine are being put in debt as a result.
So this debate is really about: What are we going to pay for? How much do we want to do? And if we want to do it, we need to pay for it.
The gentleman knows my side very much believes that we had two tax cuts in '01 and '03; we didn't pay for it. We had two wars, both of which I supported, as the gentleman knows; we didn't pay for it. We passed a prescription drug bill; we didn't pay for it. We are hopefully going to pass a disaster relief bill that hopefully we're not going to pay for in the short term, but that we will pay for and have a scenario to pay for in the longer term because we know owe that to our children and to our grandchildren.
I'll just make a point. The gentleman always talks about tax and spending is the problem. The problem is we vote to buy things--whatever those things are--and we haven't voted to pay for them. The discipline in any system--in the family's budget, in the country's budget--should be, if you want to buy it, have the discipline to pay for it, or at least to amortize it to pay for it over a series of years that you've planned for. We haven't done that. We're in a debate about this fiscal cliff of how to do that.
We planned this fiscal cliff. This is not a happenstance. We planned. I didn't vote for the tax bills, but they sunsetted. They sunsetted this December 31. That was planned. It was planned because of a scoring issue--not because I think your side really believes they ought to sunset, but because of a scoring issue.
The fact of the matter is the sequester was put in place as a fail- safe to make the supercommittee work. It didn't work, so on January 2 the sequester takes place. I don't think any of us believe a sequester ought to take place in the way that it's planned to do so.
So what I'm saying to the gentleman is everything that's going to happen on December 31 we've planned, we've put in place, we've sunsetted. It is our responsibility to meet that. And, yes, taxes is the way we pay for things that we buy because if we pay for them, we don't create debt.
I would be glad to yield.
I absolutely believe that we need to pay for that tax cut over the 10-year plan that we try to come up with to get us to a place that we can agree on being the objective in 2022 or 2023 as to where we want to be as a country in terms of fiscal sustainability, a credible plan that will get us from here to there, including taking cognizance of the cost of that tax cut. Yes, I am saying that over the longer term we ought to pay for it. Right now the economy is struggling. The reason I think none of us want to raise taxes on the average working men and women in this country is because the economy is still struggling.
We're going to have that issue in terms of the payroll tax. We did the payroll tax deduction, which is controversial and there hasn't been a lot of the discussion, in order to get some additional revenues, 2 percent cut in the FICA tax--actually, a third of the cut, a third of the FICA tax so that we can get additional moneys into the pockets of the consumers so they can continue to buy. The economy has been better than it certainly was. We have grown, but not to the extent that we need to. That is why our view is that for those working Americans we ought to continue that level, but not because we think that we ought to just put that on the credit card and forget about it. It's got to be part of these fiscal cliff negotiations. And your point is making sure we pay for things.
Reclaiming my time, we had that discussion in terms of specifics. I pointed out to the gentleman last week, and I'll point out to him again today, the President has in his budget 23 pages of cuts, including, very frankly, with respect to Medicare, in which he cuts more--specifically identified--than Paul Ryan's budget that passed this House reduced Medicare expenditures.
So I will say to my friend, I have given him this little list--he can't see it. You have five items on your proposal in the letter that you sent, five items. They're over here on the right, five line items, all conclusionary, no specifics. For instance, the gentleman refers to 800 billion--not the gentleman, but in the Republican offer--refers to $800 billion in revenues. Now, the President has been very specific as to what he thinks we ought to do in revenues. We ought to go to the Clinton rates on those over 200,000 individually and over 250,000 family--very specific. And he has made other specific proposals that get him to his revenue number.
Frankly, your revenue number is posited on the fact that we're going to reduce, as I understand it, preference items to attain an additional 800 billion in revenue without increasing rates. I understand that general proposition.
Would the gentleman tell me which preference items he would reduce to get to 800? Now, that's a little rhetorical because I don't want to put you on the spot on that, but it is to the extent I don't think you have been specific in terms of your offer at all while I do believe the President has put forward, both on the tax side and the spending side, some very specific proposals of how to get to his numbers.
I yield to my friend.
Well, of course, again, we have a disagreement. And this list--I can't read it either, so you couldn't read it from there.
I don't think he backtracked. What he said was, and what we have said continually is, on the revenue side, if you're going to have a balanced package on the revenue side--this is his specific proposal: he's made a number of proposals on the spending-cut side already, as I said in Medicare more than the Ryan budget had in his budget. The fact is, I will tell the gentleman, you have no specificity on balance. Nor do you have any specificity, frankly, on cuts. There is no specificity on your spending cuts here. They're conclusions. So I'm not sure how you think one side ought to be specific, i.e., the President, which I think he has been specific, and the other side comes with five lines of dollars that add up to $2.2 trillion, none of which have any specificity. As you see, there are no individual items below those five lines saying where you want to cut or raise revenues.
Therefore, we need to get to an agreement, and this argument is not very helpful, I think. We need to get to an agreement; both sides need to get to agreement. But the reason we get into this conversation is we have agreement on a part of that, which will help give confidence to our people, and that is on the middle class taxes not going up.
I would again urge, and then perhaps we can get off this subject because I don't think we're really enlightening our public very much other than the fact there are obviously disagreements; but they expect us to, and we need to bridge these disagreements. I think the President has shown--you and I participated in discussions with the President of the United States. I've been here 31 years. No President in the 31 years that I've been here has spent as much time sitting in the Oval Office discussing with you and me and others, Mr. Boehner, Ms. Pelosi, Mr. Reid, Mr. McConnell, and others, sitting in the office trying to get to specific agreements.
This President is willing to do that, and he has done it. He has shown that he's willing to do it in 2011, and you and I were in the room watching it happen. Now, did it result in what we wanted and that was an agreement? It did not. That's unfortunate. But this President is willing to do it. Hopefully, both sides are willing to do both sides of the ledger, which the gentleman points out are revenues and spending, a balanced package getting us to where we need to be.
Now I will move on to another subject unless the gentleman wants to make another point.
Debt ceiling. I'm very worried about the debt ceiling, Mr. Leader. I think the debt ceiling is something that you
and I have expressed publicly and privately ought not to be something that really we put at risk. I frankly think all the leaders I've talked to on the Republican side and on the Democratic side think that when you incur debts as the United States of America, the most creditworthy Nation on the face of the Earth, that you have every intention of paying those debts.
The debt ceiling theoretically says that you can't pay over a certain number, you can't go into debt anymore. You and I both know that sometime in February, maybe later, that debt ceiling will be reached.
Very frankly, both parties have played a game on the debt ceiling. When you were in charge, we played the fact that the debt was your problem because you had cut taxes and didn't pay for that. On your side, you said we spent too much money and we didn't pay for that. And so you voted against the debt ceiling when we were in charge. Neither one of us has, I think, covered ourselves with a great deal of glory on that issue.
The debt ceiling has to be raised because America will pay its bills. America will be creditworthy. And we saw the last time we had this political, I call it a charade or dance, the last time, for the first time in history, first time since you and I have served here--history is a lot longer than that--the credit of the United States of America was downgraded by one of the rating agencies, Standard & Poor's.
I would hope that the debt ceiling would not be a subject of disagreement. The President has proposed Senator McConnell's proposal so that the party in charge can take responsibility for it. The McConnell proposal said that the President of the United States would say, look, in order to pay our bills, we have to raise our debt ceiling. Most countries don't have a debt ceiling, of course, and most families don't have a debt ceiling. They incur debt and they expect to pay it. I would hope that this would not be a subject of political leveraging or political disagreement.
We know as an economic fact of life that we're going to have to increase the debt limit, and I would ask the gentleman if he has any thoughts on that and when we might act on that. I yield to my friend. I don't think I finished what, for the public, for anybody who happens to be watching us who is not bored stiff by this point in time, the McConnell proposal, as the gentleman knows, was that the President would propose a level, and then if that were not rejected by two-thirds of each House, that it then would go into effect, which would mean that the President of the United States, Republican or Democrat, would take the responsibility for making that judgment on behalf of managing the finances of our country.
I'll yield to my friend.
I thank the gentleman.
I don't think he answered my question about the debt limit, therefore, my presumption is unfortunately it will continue to be an item used as leverage, holding hostage the creditworthiness of the United States to this debate.
I will be glad to yield to the gentleman.
Mr. Speaker, I hear the gentleman, and the gentleman says spending is the problem.
If spending is the problem and spending obviously is one of the challenges we confront, as is revenues, if that is the case, then let me remind the gentleman that during the time that his party was totally in charge of spending, spending increased very substantially, otherwise known as an 86 percent increase from 2001 to 2008 in the national debt, an 86 percent increase. Under Ronald Reagan, it increased 189 percent. Under this President, it has increased 41 percent, and he confronted the deepest recession as a result of the economic policies in part pursued in the last administration, which I did not support and which my party did not support.
I hear this about spending all the time. We had a pay-as-you-go bipartisan process put in place by the first George Bush and Democrats in 1990. In 1993, that pay-as-you-go was continued. In 1997, a deal between Mr. Gingrich and Mr. Clinton continued that pay-as-you-go process. And for the last 4 years in a row of the Clinton administration, we didn't borrow a single additional nickel to raise the debt limit. We didn't have to. Why? Because we were paying for what we bought.
Republicans were in charge of the House and the Senate for part of that time, so they deserve some of the responsibility for that. The President was in charge of signing bills and making sure that we made investments. He made sure we did that, and the economy exploded. Those three factors obviously resulted in the only President in the lifetime of either the majority leader and myself who ended up with a net surplus in his term. We don't need to be lectured about spending. As I said, spending does not cause debt. What causes debt is not paying for the spending you make, and that's exactly what happened.
I tell my friend his party was in charge from 2001 to 2006, totally and essentially until 2008, because we didn't change any economic policies and President Bush had to sign any bill that was passed here. So this circuitous discussion we have about, simply, spending is the problem--yes, you're right. But the problem is ultimately if we want to buy things--and what we do now, as the gentleman knows, is we are producing a product that costs $23 to produce, and we're asking people to pay $15 for it. Talk about small businesses; any small business that does that goes out of business pretty quickly. That's what we are doing, and we have to stop it.
The debt ceiling, however, as the gentleman knows, is about that which we've already done and whether we are going to pay those bills. All I'm saying
is we ought not to make that a part of the leveraging between our two parties.
Let me go quickly to the farm bill, the Violence Against Women Act, and the Sandy supplemental. Can the gentleman tell me which of those three, if any, might we see next week?
With that, I yield to the gentleman.
I thank the gentleman for his intent there.
I would simply observe that the gentleman observed and he was correct, obviously, that FEMA indicated it has some resources to go through the beginning of the year. There are, as the gentleman well knows, a myriad of agencies that will be involved in helping the victims of Sandy that do not have those resources and need them. I appreciate, therefore, the gentleman's focusing on this and trying to bring this forth as quickly as possible.
Last, the miscellaneous tariff bill. That expires, as you know, on December 31, as well. Can the gentleman give me a view as to where that stands?
And I yield to the gentleman.
I thank the gentleman for his comments, and I yield back the balance of my time.