[Congressional Record Volume 141, Number 171 (Wednesday, November 1, 1995)]
[House]
[Page H11663]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REPUBLICAN ATTEMPTS TO BLACKMAIL PRESIDENT WILL REQUIRE AMERICANS TO 
                               PAY RANSOM

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentlewoman from Connecticut [Ms. DeLauro] is recognized for 5 minutes.
  Ms. DeLAURO. Mr. Speaker, this afternoon the Republican leaders in 
the House and Senate went to the White House in an attempt to blackmail 
the President into signing their extreme budget.
  Democrats and the President are opposed to the Republican budget 
because it includes deep cuts in Medicare and Medicaid and because it 
increases taxes on working families, while cutting taxes for the 
wealthy.
  The President has promised to veto the budget unless changes are made 
to protect seniors, children and working families from bearing the 
brunt of GOP cuts.
  But now, Speaker Gingrich and the leader of the other body are 
attempting to blackmail the President by threatening to throw the 
government into default if the President doesn't sign their extreme 
budget. It's a very dangerous game. Playing politics with our economy 
is bad news for both Wall Street and Main Street. The Speaker's 
irresponsible threats sent shock waves up and down Wall Street. But, 
the real impact of the Speaker's ill-considered political gambit will 
be felt on Main Street. Once again, working families will be hurt the 
most.
  In fact, the Speaker's threat to throw government into default will 
amount to a Christmas tax on working families. You see if the 
government goes belly up, interest rates will go up and up. What does 
that mean? Well, for starters, it would mean higher mortgage, car loan 
and credit card payments.
  For millions of working families with adjustable rate mortgages, 
increased interest rates will mean their monthly payments will mean 
their monthly payments will increase, just in time for Christmas.
  If the Speaker forces the Government into default, Americans can 
expect to ring in the New Year with higher car loans and credit card 
payments.
  In fact, a Tuesday Washington Times story explained that Republicans 
are so committed to their blackmail strategy that they would be willing 
to allow the Government to default, even if it means they will have to 
delay income tax refunds next year.
  Mr. Speaker, this is the quote from the Washington Times, Tuesday, 
October 31:

       Representative Nick Smith, the Michigan Republican who 
     heads a 130 member House coalition that wants to use the debt 
     limit as leverage to force Mr. Clinton to sign the Republican 
     budget, said he believes the Treasury could go through 
     January without a debt increase, and if it delayed income tax 
     refunds next year, it might last through spring.

  So, in fact, the gentleman does not really care if people do not get 
their income tax refund, if the interest rates go up, and people have 
to pay a higher mortgage payment, car loan payment, or credit card 
payment.
  Mr. Speaker, raising mortgage rates for homeowners and denying tax 
refunds to hard-working Americans is wrong. But, that's what this GOP 
gambit will mean to working families in this country.
  It's hard to believe that Republicans are willing to bankrupt the 
country. What's worse is that this is all being done to force the 
President to sign a budget that will further devastate working 
families.
  It's a budget that would repeal Federal nursing home standards. 
That's right. The House budget would end minimum protections for senior 
citizens in nursing homes, opening the door for a return to the health 
care dark ages of bed restraints and mind-altering drugs.
  It's a budget that would increase taxes on working families, while 
decreasing taxes on millionaires. By changing the earned income tax 
credit, the Republican budget means that working families will pay 
higher taxes last year. In my district, this budget will raise taxes on 
14,309 working families.
  It's a budget that would allow big corporations to raid the pension 
funds of their workers. This budget repeals current penalties for 
pension raids and allows companies to dip into their employees' 
retirement money for any reason whatever. In my State, it will mean 
that $6.5 billion in retirement funds will be at risk.
  Eliminating nursing standards, raising taxes on working families and 
allowing giant corporations to squander their workers retirement 
benefits have nothing to do with balancing the budget. They have 
everything to do with the upside down priorities of the GOP majority.
  Let's not play politics with working families' monthly mortgage 
payments. Let's not play politics with working people's tax refunds. 
Let's not play politics with the financial markets.
  Republicans are attempting to blackmail President Clinton into 
signing their extreme budget bill, but it is working Americans who are 
being asked to pay the ransom.

                          ____________________