[Congressional Record Volume 147, Number 149 (Thursday, November 1, 2001)]
[Senate]
[Pages S11318-S11320]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
RESPONSE TO ATTACKS ON THE SENATE REPUBLICAN CAUCUS STIMULUS PLAN
Mr. GRASSLEY. Mr. President, I come to this Chamber to address an
issue that was discussed yesterday. I do it because I am the ranking
Republican on the Senate Finance Committee. I want to respond to some
Senators on the other side of the aisle--meaning the majority side of
the aisle--who have raised concerns about legislation that I have put
forth as part of a stimulus package. I put forth this legislation for
our Republican caucus in my capacity as former chairman and now ranking
member of the Finance Committee. So I want to respond, first, to the
majority leader's and Budget Committee chairman's comments about the
Senate Republican caucus proposal.
From my point of view, these comments were destructive of
bipartisanship. The attacks came yesterday afternoon on the floor,
following a news conference that was held on the Capitol grounds. In
contrast, while these things were going on yesterday, I spent time
working for an agreement that crossed party lines; in other words, for
a bipartisan agreement.
In fact, for a number of weeks, the chairman of the Finance
Committee, Senator Baucus, and I have been meeting in an attempt to
find an agreement on a stimulus package.
Last week, Senator Daschle and Senator Baucus released a stimulus
proposal that, as they indicated, clearly reflected the more liberal
part of the Democratic caucus. Senator Baucus made it clear that it was
basically a negotiating position and that he would be willing to move
to the center.
The proposal was released as a position for the Democratic caucus. It
was made very clear in statements, well-intentioned on the part of
Senator Baucus, that it was basically a negotiating position and that
he would be willing to move to the center, or saw that as necessary as
part of the process to get legislation through the Senate.
In general, Republicans such as myself reacted constructively to the
proposal. I was quoted in the press accordingly. I disagreed with the
proposal Senator Baucus put forward, but I recognized it as an
essential part of a process of getting a bill through the Senate. I saw
it as a positive step. Quite frankly, I viewed it as a response to the
bill that passed the House of Representatives.
On Tuesday of this week, we Republicans responded to the Democratic
caucus position with one from our own caucus. From our point of view,
it mirrored the President's stimulus plan. What kind of a reception did
we get after we released our plan? In this era of bipartisanship and
collegiality, something bad happened. The attack dogs were unleashed
and with a fury. The same day, Senator Daschle harshly attacked our
proposal in an extremely partisan, stilted manner.
The next afternoon, which was yesterday, Senator Conrad was on the
floor with the usual props he has--he uses them well--ferociously
denouncing the Senate Republican proposal. Rather than recognizing the
proposal as part of the process, as we Republicans viewed the
Democratic proposal, the Democrats instead have turned up the partisan
heat and are trying to torch any real plan that will help our economy
and our country.
One has to wonder why we have such a double standard. Why is it that
one side obsessively attacks the other, that fault is not found on that
side?
Senator Daschle, along with Senator Lott, has exercised leadership
since September 11. This had been a most important feature of doing
business in Washington, DC, in these times of anxiety while we are
trying to win the war on terrorism. The tone, as much as the substance,
has been critical to the success of the process.
Senator Daschle himself said we should not be ``strident'' in these
times of trying to win a war. So you can imagine my surprise, even
anger, and surely disappointment, when I read the tone of Senator
Daschle's attack on the plan and, frankly, on me in press reports.
Basically, Senator Daschle accused me of unilaterally stopping the
stimulus process, particularly as it related to Republicans and
Democrats working out a bipartisan agreement.
I will read the quote into the Record:
We've waited in an effort to try and find a way to work in
a bipartisan manner. Unfortunately, as a result of Grassley's
decision yesterday . . . that will not be possible, at least
in the short run . . .
I focus on Senator Daschle's quote because it is a bit ironic. As he
was criticizing me, I was preparing for a meeting with Senator Baucus
on the stimulus package. I guess if you ignore the fact that Democrats
put out a partisan package last week, then Senator Daschle's quote
would make some sense. But, of course, that is not true. So Senator
Daschle seems to be saying that it is fine for Democrats to put out a
caucus position and Republicans to be constructive, but if Republicans
respond with our own caucus position, then that is partisanship. The
Republican response justifies ramping up the content and the tone of
the partisan rhetoric.
The American people expect better. They know a double standard when
they see it. Let's get back to the tone Senator Daschle set earlier.
That is what I am asking for; that is a very good tone.
Let's not descend to name calling, destructive partisan comments, and
double standards.
Now I move to Senator Conrad's attacks which occurred yesterday
afternoon. Let me say, this is a preliminary response to Senator
Conrad's attack on the Senate Republican caucus plan. I will have a lot
more to say on that later, particularly after I get some figures back
from the Joint Committee on Taxation.
Senator Conrad spent a lot of time yesterday developing charts that
were critical of Senate Republican caucus positions which he
personalized by calling it the Grassley plan. He personalized his
attacks, and that should be avoided. He decided to appoint himself as
the teacher and accordingly grade everyone's economic stimulus
proposal. That is fine. He has that right. I don't have a problem with
that. If he is going to be the grader, though, I think he needs to be
objective. He needs to treat those plans that he opposes the same way
he treats those plans he supports. He does not do that.
The report card Senator Conrad used yesterday is not the whole set of
principles upon which the budgeteers agreed.
I ask unanimous consent to print in the Record a copy of the
budgeteers' documents.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Principles for Economic Stimulus
The Chairmen and Ranking Members of the House and Senate
Budget Committees recognize the extraordinary circumstances
resulting from the September 11, 2001 attacks on our country.
These terrorist attacks have created a national emergency,
instigated a war on terrorism, and exacerbated
[[Page S11319]]
a slowdown in the economy. Clearly, the Congress and the
President will provide the resources necessary to respond to
these events. The principles articulated below are simply
intended to ensure that those resources provided by the
Congress and the President be an effective economic stimulus
package that does not erode fiscal discipline in the future.
Overall principle. An economic stimulus package should be
based on the recognition that long-term fiscal discipline is
essential to sustained economic growth. Measures to stimulate
the economy should be limited in time so that as the economy
recovers, the budget regains a surplus that is at least equal
to the surplus in Social Security. Any short-term economic
stimulus should not result in higher long-term interest
rates.
Objectives. An economic stimulus package should restore
consumer and business confidence, increase employment and
investment, and help those most vulnerable in an economic
downturn, and do all of the above without converting a
cyclical deficit into a structural deficit.
Timing. Congress should assemble an economic stimulus
package deliberatively but with dispatch, aiming for passage
within 3-4 weeks, based on the best economic data available.
Rapid impact. A substantial portion of the fiscal impact on
the economy should be felt within 6 months.
Sunset. All economic stimulus proposals should sunset
within 1 year, to the extent practicable.
Targets. Economic stimulus should be broad-based rather
than industry-specific. Policies should achieve the greatest
possible stimulus effect per dollar spent and should be
directed to individuals who are most likely to spend the
additional after-tax income and businesses most likely to
increase investment spending and employment.
Size. The economic stimulus package should equal
approximately 1 percent of GDP (about $100 billion) but
should count the budgetary effects of policies implemented
since August, which, at present, total roughly $40 billion.
Offsets. To uphold the policy of repaying the greatest
amount of national debt feasible between 2002-2011, outyear
offsets should make up over time for the cost of near-term
economic stimulus.
Mr. GRASSLEY. If you compared the budgeteers' principles with the
report card Senator Conrad generated, you will see, when you get a
chance to read these, interestingly, that Senator Conrad omits four of
the nine principles. In other words, Senator Conrad has selected five
of the nine principles agreed on by budgeteers. Most importantly,
Senator Conrad didn't use the ``overall principle,'' which reads:
An economic stimulus package should be based on the
recognition that long-term fiscal discipline is essential to
economic growth. Measures to stimulate the economy should be
limited in time so that as the economy recovers, the budget
regains a surplus that is at least equal to the surplus in
Social Security. Any short-term economic stimulus should not
result in higher long-term interest rates.
There is nothing in that comment with which I disagree. The point is,
this principle is very important, and it ought to be followed. Senator
Conrad spent a lot of time dwelling on the rough 10-year revenue loss
numbers of the Senate Republican and Senate Democratic plan. Senator
Conrad, however, left out an important assumption. I will explore the
assumption Senator Conrad left out.
As has been the case with all proposals from the Republican side,
Chairman Conrad has attacked the stimulus plan as, among other things,
``fiscally irresponsible.'' Of course, I contest those unfounded and
unfair criticisms. The plan is a straightforward proposal that will
provide immediate economic stimulus. It will also give aid to
dislocated workers, and it will help with their health insurance
problems while being laid off, and it is fiscally reasonable. In fact,
we have been in discussions with Senator Baucus's staff on these latter
issues, such as dislocated workers and health insurance issues. So our
plan follows on the President's four principles that were really the
starting point of this debate first of all. That is what we ought to
give President Bush credit for. He was presenting to the Congress the
need for a stimulus package before many other people in Congress were
even talking about the need for it.
Since his tenure as ranking member, and now chairman, of the Budget
Committee, Senator Conrad has placed all Republican tax cut proposals
under very strict scrutiny. Senator Conrad has assumed that any
temporary tax cut, no matter the terms of the proposal, would be made
permanent. The assumption was then incorporated into his budgetary
analysis. Without fail, the conclusion is then used as a basis to argue
that long-term budget implications of any temporary tax cut make it
``fiscally irresponsible.''
We have before us a Democratic caucus stimulus proposal that contains
two elements. One element is a combination of tax cuts and new
temporary entitlement spending. Another element of the proposal is
Senator Byrd's $20 billion ``infrastructure package.'' The two elements
have been frequently mentioned by Democrat leadership, including
Senators Daschle and Reid, as the Senate Democratic position. When
analyzed, these proposals are described as having a fiscal impact of
$90 billion in fiscal year 2002 and $60 billion over 10 years.
Here is where you get into this double standard of scoring
Republicans one way and Democrats another way. The scoring presented by
the Democratic caucus, however, fails to employ Senator Conrad's
convention regarding permanency. They don't take that into
consideration. If we apply Chairman Conrad's convention to the new
spending and assume permanency, the 10-year cost of the new spending
package totals $526 billion.
Think about it, Mr. President. In these times, Senator Conrad has
determined that it is fiscally responsible to spend an additional $526
billion over 10 years. As a point of reference, this figure compares
with the tax cuts of roughly $175 billion in the Senate Republican
caucus position.
I ask unanimous consent that an analysis of the 10-year cost of the
new spending in the Democratic caucus stimulus plan be printed in the
Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
ANALYSIS OF SURPLUS IMPACT OF PERMANENT SENATE DEMOCRATIC CAUCUS
STIMULUS PROPOSALS
[In billions of dollars]
------------------------------------------------------------------------
FY 2002-
FY 2002 11
------------------------------------------------------------------------
1. Unemployment insurance: Additional 13 weeks and -16 -71
supplemental amount................................
2. 50% COBRA subsidy: Inflation at 8% per year...... -10 -145
3. Medicaid expansion: Inflated using CBO August -7 -101
baseline...........................................
-------------------
Total new entitlement spending................ 33 -317
New infrastructure appropriations: CBO estimate..... 20 -209
-------------------
Total new spending............................ 53 -526
------------------------------------------------------------------------
Source: Republican Staff, Senate Budget Committee.
Mr. GRASSLEY. Under Chairman Conrad's methodology, one of two
conclusions is apparent from this exercise. One, if tax cuts and new
spending are treated similarly, then under Chairman Conrad's
methodology, the Democratic caucus package is $350 billion bigger than
the Republican caucus package. That is a 2-to-1 ratio in favor of new
spending. Alternatively, maybe Senator Conrad is arguing that in
scoring there should be a bias against tax cuts and in favor of new
spending by assuming that new spending is temporary.
Since a key element of the budgeteers' principles was long-term
budget effect, you would think Senator Conrad would have more carefully
considered the 10-year cost of new appropriations and new entitlements.
It seems to me he graded these plans long before he analyzed them. How
else can Senator Conrad explain the laxity of the long-term spending
effect?
Adding new appropriations and new entitlement spending to the budget,
even if labeled temporary, brings a long-term budget cost. Otherwise,
we are trying to kid people. When was the last time we cut the
appropriations baseline or a new entitlement? It doesn't happen around
here.
Now keep in mind that I have also asked the Joint Committee on
Taxation to score the permanent effect of temporary tax cuts in each
plan, but I do not have that analysis yet. I have had my staff work on
it. They tell me it might narrow the gap some but would simply add to
the total 10-year cost of each plan. Keep in mind that in making this
comparison, I did not include the revenue loss of the Democratic caucus
plan.
When former Senator Bradley left this body, he cited many reasons for
leaving. One of the colorful references was to the deterioration of the
level of floor debate. He referred to Senate debate as deteriorating to
competing partisan cartoon-type characters endlessly talking past one
another. Unfortunately, yesterday's attack charts seem to me to
illustrate the deterioration of the respect to which Senator Bradley
was referring.
[[Page S11320]]
A few months ago, the Washington Post reported approvingly of the
Democratic leadership's message strategy. The article referred to a
blackboard with a basic daily or weekly message. Apparently,
yesterday's message was to attack a good-faith Republican caucus
position and to attack me. I guess I say good job, or congratulations
are in order, because the people who did it pulled off a well-
coordinated attack.
What did such a harsh attack accomplish? When I go back to my farm
this weekend, I imagine some of the folks back home might ask what the
point of all that was. That is where I am, Mr. President. What is the
point of this excessive partisan gamesmanship? What is the point of
dumbing down the level of civility around here?
I say all these things in a constructive manner--from a person who
just yesterday met with Senator Baucus to talk about a process of
getting a stimulus package--hopefully, a bipartisan stimulus package--
to the floor of the Senate. Although the transgressors in this case
were Democrats, at times even my own Republicans have done the same
thing. In this case, though, there really seems to be a Democratic rule
book that includes a double standard.
So as one who practices bipartisanship, I say to those who talk about
it: Practice what you preach.
As I said, I will have more to say in a comprehensive way about some
of Senator Conrad's attacks on the specific pieces of the Senate
Republican stimulus package.
I suggest the absence of a quorum.
The PRESIDING OFFICER. The clerk will call the roll.
The assistant legislative clerk proceeded to call the roll.
Mr. SPECTER. Mr. President, I ask unanimous consent that the order
for the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
____________________