Mr. Speaker, I offer a motion to instruct on Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, this motion to instruct conferees is very simple and straightforward. It directs conferees negotiating extensions of the…
Mr. Speaker, I offer a motion to instruct on
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this motion to instruct conferees is very simple and straightforward. It directs conferees negotiating extensions of the payroll tax cut, unemployment insurance, and the SGR to file their conference report by February 17, 2012.
Day in and day out, Members of this body come to the floor to speak about the level of uncertainty that is hindering the U.S. economy and stifling job growth. We have heard Speaker Boehner argue that the Bush tax cuts must be extended in perpetuity to relieve corporations of uncertainty. We have heard our Tea Party friends rally against the deficit in order to reduce uncertainty for job creators.
Time and time again, we've heard our Republican colleagues speak of the uncertainty that EPA regulations have created for expanding jobs. Yet, when we contemplate the uncertainty created for consumers, small businesses, doctors, and the unemployed driven by Congress' inability to address the payroll tax extension, the SGR fix, and unemployment benefits, our Republican friends are suddenly silent.
We all remember the debate in December when, after years of touting the benefits of tax cuts, our Republican colleagues suddenly changed their minds when a payroll tax cut was considered, a tax cut that will provide immediate relief for millions of Americans and will immediately benefit the economy.
As we've debated these issues for several months, we've seen the data and heard from economists who say extending the payroll tax cut and unemployment insurance is good for American families, businesses and economic growth. It isn't the silver bullet to solving all of our Nation's problems, but it's a step in the right direction, a step that can provide some relief to the unemployed and stimulate consumer spending, which is fundamental to improving the overall economy.
By extending the payroll tax cut through the end of the year, 160 million Americans would continue to take home more money in their paycheck. For a family earning $50,000 a year, that's about $80 a month, or about $1,000 for the year.
Without the extension, that $1,000 is unavailable to families for buying groceries or putting gas in their vehicles or buying their children new clothes for school which, when spent at local businesses, sparks economic activity. These facts are indisputable.
Moody's Analytics estimates that for every dollar spent on the payroll tax cut it produces $1.27 in economic activity. JP Morgan Chase economists also estimated that ending the payroll tax cut and halting an extension of unemployment would shave .75 percent off the GDP next year. Macroeconomic Advisers provided a similar analysis last year, stating that allowing the pay roll tax cut to lapse would reduce GDP growth by .5 percent and cost the economy 400,000 jobs. A job loss of that magnitude would destroy the improvements in employment we've seen since President Obama took office.
Last week, the Labor Department reported that 243,000 jobs were added to the economy in January, marking the 23rd consecutive month of private sector job growth. The unemployment rate also fell to 8.3 percent, the lowest point since February of '09. Now, we clearly still have a long, long way to go, but failure to extend these critical programs would stifle the progress we have seen thus far and thwart future growth.
But Americans don't know if they'll have that extra $80 a month to spend come March 1, and businesses are equally uncertainly about whether or not their customers will have that extra income to spend.
Yesterday, Mark Zandi, the chief economist at Moody's Analytics, told the Joint Economic Committee that it is vital, vital to extend both the payroll tax cut and unemployment insurance, which together could add .9 percent to GDP if done for the whole year. He also said the failure to do so would deal ``a significant blow to the economy, cutting growth by almost one full percentage point.''
We must extend both the payroll tax cut and unemployment insurance. Unemployment insurance provides temporary relief to Americans who lose their jobs through no fault of their own. In a sense, it's a bridge to reemployment. The average weekly benefit in 2011 was $300 a week. That's $1,200 a month. Take that away and millions of unemployed Americans lose a lifeline to put gas in their tank to get to that job interview, or to hire a babysitter while they go out to look for a job. Every little bit helps to get them back on their feet, and that's all Americans want to do, get back to work.
In every recession since 1957, the Federal Government has stepped in to provide additional support for unemployed workers. Without an extension, 5 million people will exhaust their benefits by the end of 2012.
Furthermore, under the GOP proposal in December to adjust the unemployment program, 3.3 million people would lose their unemployment benefits.
The Council of Economic Advisers estimates that if unemployment benefits are not extended, the economy can be expected to generate 478,000 fewer jobs. That's fewer jobs by the end of 2014, an estimate that is consistent with CBO projections. CBO also estimates that $36 billion spent on unemployment insurance would raise GDP between $14 billion and $54 billion, or about .22 percent.
The Economic Policy Institute has also estimated that extending unemployment through next year would create $70 billion in economic activity and a .4 percent increase in GDP. While these estimates differ somewhat, they all point to one thing, increased economic activity.
Yet, here we are, debating whether or not this vital lifeline should be extended for an additional 10 months. For struggling families, this is a frightening time to find our elected leaders squabbling about the Keystone pipeline and requiring drug testing for unemployment benefits.
As American families continue to struggle, so too do American businesses. A survey done in 2011 by the National Federation of Independent Businesses found that 53 percent of small businesses said lack of demand is an impediment to growth. Extending the payroll tax cut and unemployment will put additional money in the hands of Americans who will, in turn, spend that money on necessities like food, clothing, and travel.
When consumer spending represents roughly 70 percent of our economy, the policies that create the environment for growth will be the ones that get Americans spending again, and we can do that by putting more money back into the pockets of Americans struggling to make ends meet.
It's not just American workers and the unemployed facing uncertainty. Medicare doctors and patients are too. If we don't act, the SGR formula responsible for Medicare physician payments will cut reimbursement by 27.4 percent starting on March 1. A cut this large will force more doctors out of Medicare at a time when doctors find it difficult to treat Medicare patients, pay employees and keep their practices open.
A 2011 MEDPAC survey found that 2 percent of Medicare patients reported having big problems finding a physician. That may not sound like a lot, but previous surveys showed patients having relatively few, if any, problems.
In addition, a 2008 survey done by the Center for Studying Health System Change found that about 14 percent of physicians accepted no new Medicare patients, and a 2010 survey by the American Medical Association found that 17 percent of physicians were restricting the number of Medicare patients in their practice. If we fail to find a permanent solution to the SGR, these numbers will only rise, and Medicare patients will not receive the care they need or deserve.
Mr. Speaker, the Congress must act to end this uncertainty. I urge my colleagues to support this simple motion to instruct, and I reserve the balance of my time.
Mr. Speaker, I yield myself 1 minute for a couple of quick comments.
We all have the same set of facts. The Senate conferees were appointed on December 23, the very same day that the provision that we're talking about passed the House by unanimous consent. The conference committee did not meet until the 27th of January for the first time. That's one.
Two, we talk about the Reagan recession. The Reagan recession was nowhere near as severe as the, let's call it the Bush recession. The GDP fourth quarter of 2008 declined at an annual decline of over 8 percent. Most severe recession we have had since the Great Depression. Jobs lost.
Last 14 months of the Bush administration, we lost jobs every single month, culminating in his last month in office, a job loss of 735,000 jobs. President Obama has been President for 36 months. We've had job growth, private sector job growth, in 23 of those months.
Drug testing, one comment: Over 400,000 Americans have lost their jobs in the last 3 years as a result of corporations outsourcing to other countries.
I yield myself another 30 seconds.
So these are people who lost their jobs, ready, willing, and able to do them, lost their jobs as a result of, really, corporations unrelentingly pursuing profits at the expense of middle class Americans. Do we really want to add insult to injury and tell them if they need unemployment, they're going to have to be drug tested?
I yield 3 minutes to my friend from Vermont (Mr. Welch).
Mr. Speaker, I now yield 3 minutes to the gentleman from New Jersey (Mr. Pascrell).
I yield the gentleman an additional 30 seconds.
I yield myself 30 seconds.
The gentleman referenced my vote on TARP. I did, indeed, vote for TARP. I found myself in pretty good company. Mr. Cantor voted for TARP. Mr. Boehner voted for TARP.
With that, I yield 3 minutes to the gentleman from New Jersey (Mr. Andrews).
(Mr. ANDREWS asked and was given permission to revise and extend his remarks.)
I yield myself 30 seconds so we all have the same set of facts.
It's my understanding that the chairman of the conference committee, Mr. Camp, was on a codel to South America during the period of time that the gentleman from Oregon cites, and it is up to the chairman of the conference committee to call the conference.
I yield 3 minutes to the gentleman from New Jersey (Mr. Rothman).
Mr. Speaker, I yield myself 30 seconds for two quick comments.
I don't know a single Democrat, not a single one, who believes that we should diminish the Social Security trust fund to handle this Social Security payroll tax reduction. We all believe that the Social Security trust fund should be held harmless.
Second, with respect to Medicare, the Affordable Care Act does indeed reduce the rate of growth of Medicare going forward by $500 billion. I will point out that every single Republican in this Chamber voted for that very same reduction in the rate of growth when they voted for the Ryan budget.
I yield 2 minutes to the gentleman from Ohio (Mr. Kucinich).
I yield the gentleman an additional 30 seconds.
I yield 2 minutes to my friend from Michigan (Mr. Peters).
In closing, let me just make it unmistakably clear: there is not a single Democrat that is advocating diminishing the Social Security trust fund. We all agree that the Social Security trust fund must be made whole. That is why we are fully accepting of the fact that this tax cut--unlike every other tax cut that's been passed in this Chamber in the last 10 years--should be fully paid
for so that the Social Security trust fund is not diminished.
Secondly, I want to thank Mr. Walden and Mr. Reed for their service on the conference committee; it cannot be an easy conference. I would just ask that as you go forward, you be guided by what Leader Cantor has said. What Leader Cantor has said is that we should pass what we can agree on, and we should leave the issues on which we can't agree to another day. It certainly appears as if we agree that we need to extend the payroll tax deduction, we need to fix the SGR, and we need to pass unemployment insurance.
So, let's pass it. Let's leave to another day contentious issues like mercury emissions, like the Keystone pipeline, like drug testing. Let's pass what we can agree on. Let's debate those other issues--they're important, they deserve a full debate--but let's not let them stand in the way of a tax cut for 160 million Americans, access to Medicare physicians for 50 million Americans, and keeping millions of Americans at least with some lifeline with respect to unemployment insurance.
I urge my colleagues to support this motion to recommit, and I thank the gentleman from Oregon for a spirited debate.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, on that I demand the yeas and nays.