[Congressional Record Volume 157, Number 55 (Thursday, April 14, 2011)]
[Senate]
[Pages S2477-S2488]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
THE BUDGET
Mr. THUNE. Mr. President, today we are going to vote on last year's
unfinished business. We are going to vote on a continuing resolution
that will fund the government through this fiscal year, which ends on
September 30. The proposal we have before us in order to fund the
government through the end of the fiscal year certainly is not perfect.
In fact, there are many--myself included--who would like to see it make
deeper reductions in spending. That said, we will be voting on a
proposal that will cut spending by around $40 billion this year, and
when you look at baseline spending over the next decade actually saves
over $300 billion over the 10-year period.
What strikes me about that is that it will be the first time in a
long time that we have done something about reducing spending. That is
not something routinely or traditionally done here. In fact, we are
going to reverse a trend that began a long time ago but accelerated a
couple years ago when nonnational security discretionary spending
increased by almost 25 percent in the last 2 years.
This is an important first step. Granted, it is a first step, and in
a minute, I am going to get to the bigger issue, but it is critical
that we send a message and signal to the American people that we have
heard their voices loudly and clearly and we get what they want us to
do; that is, to get spending under control, shrink the size of the
Federal Government, to get it to live within its means, and to quit
spending money that we do not have in Washington. That is something
that has been happening here for a long time. It has taken on a whole
new dimension in the last couple of years.
As we talk about the unfinished business of last year, trying to get
a measure in place that will fund the government through the end of the
year, that will reduce spending by about $40 billion, we are talking
about the smaller part of overall spending when we look at the
macroeconomic view or pull back to what some would say to the 30,000-
ft. view and look at spending over the next decade. In fact, we had
someone testify in the Finance Committee yesterday, the former
Comptroller General David Walker. He put it well when he said talking
about funding in the continuing resolution is like arguing about the
bar tab on the Titanic. We are on a sinking ship, and we need to do
everything we can in the short term, getting maximum amount of spending
reduction, but then we need to pivot and start talking about the next
big battle, and that is the battle over the 2012 budget. Ironically, we
are just now getting to the 112th Congress's business because we are
wrapping up the business of the 111th Congress. The Democratic
leadership here didn't pass a budget last year or a single
appropriations bill. As a consequence, we are voting here now on a
continuing resolution to do last year's business to get us through the
end of this fiscal year before we can start the work of the 2012
budget, which is where I think the big debate will begin about how we
get this country back on a more reasonable fiscal path.
We have seen a couple of developments here in the last 2 weeks or so
that bear on that debate. One is last week, when we had the
introduction by the House Republicans of a budget plan, a 10-year
budget plan that was very aggressive in trying to take on the issue of
spending and debt, very aggressive in trying to put progrowth policies
in place that would help grow the economy and create jobs and that gets
our economy back on track in this country. That was kind of the big
discussion last week.
The President, I believe, felt left out of that discussion, so
yesterday he decided to make a speech in which he would lay out his
vision for the next decade and how we address the big challenges this
country needs to tackle. I would describe that speech as a do-over
because the President's first trip to the plate was really his budget,
which he submitted a couple of months ago. That budget was
conspicuously bereft of any effort to address the really big challenges
facing the country. It didn't talk about how we are going to reform
entitlements, didn't address tax reform, and it actually increased
spending--increased taxes and increased the debt dramatically over the
next decade. It nearly doubled the gross debt from $13 trillion or $14
trillion to over $26 trillion, and that is using I think pretty
optimistic economic assumptions.
That being said, because the President didn't address any of the big
issues in his budget and because the House Republicans put a proposal
forward last week which would, I think he felt as if he needed to get
in the game. So yesterday he made a stridently partisan speech in which
he tried to put forth a plan. I would argue that speech yesterday was
very long on politics and very short on substance. There wasn't a lot
in there to really sink your teeth into if you are someone who believes
seriously that we need to make reforms in entitlement programs. There
was the usual prescription for dealing with the deficit and the debt,
which consisted of increasing taxes. There are tax increases in here,
tax increases in the President's proposal on small businesses--the job
creators in our economy.
I would point out to my colleagues that half of all small business
income is taxed at the individual level because many small businesses
allow the income from that business to flow through to their individual
tax return. In fact, the number of small businesses that would be
impacted by his proposal employ about 35 million people in our economy.
So you are talking about raising taxes on the job creators, on the
people who really are employing people across this country, and that
was a key element in the President's prescription for dealing with the
fiscal crisis this country faces.
Another element of the President's plan was relying on this proposal
that was part of the health care reform bill to squeeze provider
payments under Medicare to try to wring a little more out of Medicare.
He relies on an independent payment advisory board which would be
empowered to go ahead and make reductions, to make cuts in provider
payments. What is interesting about that is the health care reform bill
last year did make some significant cuts to providers, not to reform
Medicare but to create the new health care entitlement program, which,
when it is fully implemented, will cost $2.5 trillion. So that is what
the President used--any savings that were achieved in Medicare last
year. So when he talks
[[Page S2478]]
about now using this independent payment advisory board to make further
reductions in provider payments, it is relying on the same old tried-
and-true formula. I say tried and true, but it is actually a tried-and-
failed formula that has been in place before.
There is no reform in this proposal. There is nothing new or
innovative that says: Let's figure out a way to solve this Nation's
fiscal problems, something that actually gets at the heart of the
problem and doesn't use the same old failed prescriptions that have
been used in the past.
I frankly don't know what is going to happen. If you continue to cut
payments to physicians and to hospitals, you will find fewer and fewer
medical providers who are going to serve Medicare and Medicaid patients
in this country. It is as simple as that. When you lose a little on
each transaction, on each customer or each patient you serve, you have
to cost shift and make up for it by shifting more of the cost over to
private payers, which continues to drive health care costs for
everybody who is not receiving their health care from some government
program even higher and higher. So there wasn't anything in there that
I would suggest really gets at this problem.
Also conspicuously absent from that speech was anything to do with
reforming Social Security. We all know Social Security is also a
program which ran a deficit last year. It looks as if it will be in the
black this year but next year it starts running deficits and runs them
well into the future. We have to make that program solvent, not just
for the senior citizens who are benefiting from it today, those who are
nearing retirement age, but for the next generation. The President
decided to punt on that subject as well.
So, as I said, the speech yesterday was long on politics, short on
substance, and short on a meaningful discussion about how we get at and
address and fix these enormous fiscal challenges we face.
The other thing the President does is he uses a 12-year timeframe. We
normally operate here on a 10-year budget window. That is what the
House and the Senate do. It is typically what the White House does when
it submits a budget to Congress. So he stretched that out to 12 years,
perhaps maybe to lessen the impact of some of the few reductions he
does make in his budget, but nevertheless it is a very different
schedule, in terms of the proposal he makes, relative to the one that
came forth last week from the House Republicans.
The reason this whole debate is important is because we continue to
spend and spend as if there is no tomorrow, and it is money we just
flat don't have. This year, we will take in $2.2 trillion, spend $3.7
or $3.8 trillion, and we are going to run a $1.6 trillion deficit. I
have said this before on the floor, but it is now 1:20 in the afternoon
today, and by tomorrow, Friday, at 1:20 in the afternoon, we will have
added over $4 billion to the Federal debt. That is the rate at which
the spending and debt problem is going today. We cannot continue on
this path.
Some people would argue--the President and some of our colleagues on
the Democratic side--that the way you fix this is ``have a balanced
approach'' that raises taxes, that there has to be a tax increase as a
part of this. I don't think the American people ought to have their
taxes raised until we demonstrate a willingness to get at the heart of
the problem.
The problem here in Washington is not a revenue problem, it is a
spending problem. The numbers bear that out. If you look at the last 40
years of American history, the average amount we spend on the Federal
Government as a percentage of our total economy is 20.6 percent. A
little over one-fifth of our entire economic output is spending by the
Federal Government. This year we will spend over 25 percent of our
total economy on the Federal Government. So we have seen the Federal
Government, in relation to our total economy, grow by about 20 percent
over the historical average just in the last couple of years. In the
last 2 years of this administration, we have added almost $3.5 trillion
to the Federal debt.
As I said before, spending increased--non-national security,
discretionary spending increased in the last 2 years by almost 25
percent at a time when inflation in the overall economy was only
growing at 2 percent. So you have the Federal Government spending at
somewhere on the order of 10 times or more than 10 times the rate of
inflation. You can't defend or justify that to the American people.
The American people have a right to know we are serious about getting
spending under control, as evidenced by the report of the Government
Accountability Office a few weeks back where they looked at about one-
third of the overall government to determine where there was
duplication and where there was wasteful spending. They came up with a
number of conclusions in that report, one of which was that there are
82 programs--82 programs--at the Federal Government that deal with
teacher training spread across 20 agencies or so of the Federal
Government.
Can you believe this--56 programs that teach financial literacy.
Imagine Washington, DC, lecturing or instructing anybody around this
country about financial literacy, of all things, but there are 56
programs spread across 10 different agencies or departments of
government that deal with financial literacy. I mean, the American
people have to be thinking, get serious.
This is the kind of thing that outrages and frustrates the American
people. That is why I think they want us to singularly focus on
reducing spending and getting this debt under control not by raising
their taxes in the middle of an economic downturn, particularly taxes
on our small businesses that will create the jobs to get the economy
back on track but by reducing spending. That is where this debate ought
to be centered. Regrettably, as I said, the President, in his speech
yesterday, immediately latched on to the idea that we need to raise
taxes on our small businesses, on our job creators.
Well, we are going to have the chance, after the vote today on the
continuing resolution--assuming that it passes--and then wrapping up
last year's unfinished business, to shift to this debate about the debt
limit. The debt limit will be the next major issue coming along that
will present an opportunity for both Republicans and Democrats to
engage in a debate about how to solve this country's fiscal problems,
starting with measures we put in place that put caps on spending.
We have to get spending under control, and then we will have a debate
about the 2012 budget. It is unclear to me at this point whether the
Senate will do a budget at all. The House of Representatives clearly
will. They passed it out of their Budget Committee, and they are going
to vote on it today. They are going to put forward a plan that does
reduce spending by over $6 trillion over the next 10 years, that brings
reforms to our Tax Code, that lowers marginal income tax rates on our
businesses and our individuals, and that hopefully will create economic
growth and development out there and create jobs.
It is a budget that changes the way we look at some of these
traditional entitlement programs, insulating and protecting everybody
who is over the age of 55. And that is the ironic thing about it,
because our colleagues on the other side get up and immediately attack
this proposal as cutting benefits to senior citizens. The House plan
that was put forward does not impact anybody over the age of 55. So if
you are retired today and drawing Medicare benefits or if you are
nearing retirement age, under this particular proposal, you are
unaffected. It would affect those younger than 55 who are beginning to
look at the retirement years and wondering whether any of these
programs are even going to be around for them. We can make those
programs sustainable and viable for younger Americans who are willing
to look at these things in a new way. The House budget does that.
It makes reforms that put the patient back in charge, the consumer
back in charge, that I think draws on the great impulses of tradition
in this country--competition, choice, allowing people to have more
opportunity and more flexibility to choose a plan that works for them.
It seems, at least to me, that we have to get to a new model because
the current model clearly doesn't work. It is an example of government
spending that, if it perpetuates, has a $38 trillion unfunded liability
in Medicare alone and has further unfunded liabilities in Social
Security.
[[Page S2479]]
We have a major problem in this country, and it needs to be
addressed. It starts with the debate on the debt limit and then
hopefully on the 2012 budget. I am glad to see the President finally
having a proposal out there and engaging in this debate. Unfortunately,
his vision is the wrong vision for the future of this country. But it
is high time the American people saw us have this debate, take these
issues on, and let's hope we can come together behind a proposal that
will reduce spending, reduce debt, and put us more on a fiscal footing
that is good for future generations and that gets this economy going
and creates jobs.
Mr. President, I yield the floor, and 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. LAUTENBERG. Mr. President, I ask unanimous consent the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. LAUTENBERG. Mr. President, we are going to be voting sometime
today. I am concerned about the tea party Republican assault on the
health of American women because that is what we are going to be
deciding. The focus on this has little to do with deficit reduction
because better health automatically saves money. This assault is an
attempt to change individual behavior to a standard that the tea party
people see as proper for others exercising their own free will. It
contains an element of unfathomable hypocrisy for those voting to kill
Planned Parenthood.
As Members of Congress, we all have immediate access to first-class
health plans. We never have to think about health coverage for
ourselves or our spouses or our children--it is all in the package.
There is no decision to make between paying a medical bill or paying
the rent; no decision to make between buying medicine and buying
groceries; no decision to make between going into a hospital or going
into bankruptcy. Yet the Republicans here are trying to take health
care away from women, children, and families across America. They want
to completely defund Planned Parenthood, an organization that has been
serving women and families in America for more than 90 years.
Today Planned Parenthood operates more than 800 centers that serve 3
million women each and every year. For many women, Planned Parenthood
is a critical source of medical care. To women who cannot afford
coverage, Planned Parenthood says don't worry, your health is more
important.
They do not just offer counseling on family planning, they also offer
lifesaving breast exams and cervical cancer screenings. Look at this.
Eighty centers nationwide serve 3 million patients each year, provide
800,000 breast cancer screenings, provide 1 million cervical cancer
screenings. That is so important. Cancer screenings save lives. Since
the 1950s, cervical cancer screenings have cut mortality rates by more
than 70 percent. Remember, treating cancer and other diseases early
enough saves health care dollars in the long run.
But this is not just about sound fiscal policy or better accounting.
No. No. They want to tell women, millions of them, if you cannot afford
it, tough luck. Tough luck. This is about the tea party Republicans
remaking America in their own image. Their real goal is to impose their
radical ideology on American women.
They want to come into our homes, tell the women in our families how
to live their lives. This issue is deeply personal to me. My wife and I
have five daughters and eight granddaughters, and nothing is more
important to me than their health, their well being, and their freedom
to make choices that suit their needs.
If we kill funding for Planned Parenthood, millions of women will
lose access to essential care. Those tea party Republicans claim that
will help close our deficit of dollars. But it will leave us with a
deficit of decency. It is not just women's health the tea party
Republicans are after, it is also health care for middle-class families
across America.
They want to stop the landmark health reform law dead in its tracks.
This is the law that adds 32 million Americans on the rolls of the
insured.
So here is what I say to colleagues on the other side: If you do not
want ordinary people to have affordable coverage, then show some
sincerity and throw in the coverage you have. Be honest. Vote no, and
tell your constituents why you are doing this, and say you mean it when
you say no, and I am giving up my coverage to prove it. I am talking to
Senators on the side of taking away the funding, and talking to Members
of the House of Representatives to say no and mean no.
The health reform law makes health care more affordable, more
accessible, and more sustainable, and holds insurers more accountable.
It makes medicine more affordable for seniors by closing the doughnut
hole in the Medicare prescription drug benefit program.
The new law also allows young adults to stay on their parents' health
plans until age 26, and it gives small businesses tax credits to help
them provide their employees with medical coverage. Without this law,
insurers could once again restrict benefits, rescind coverage when
people get sick, and refuse care to children with preexisting
conditions. I do not think we want to return to the days when insurers
could turn their back and turn away sick children.
Life for me was upfront and personal when it came to my family's
health care needs. I grew up in a working-class family in Patterson,
NJ. My father worked in the local silk mills, and he died of cancer at
age 43, leaving my mother a widow at age 37. Our family struggled in
bankruptcy as my father's life ebbed away. My mother owed doctors,
hospitals, pharmacies, money we did not have. After my service in
Europe in the Army, because there was a government program, I was able
to get my education through the GI bill. I joined two friends and built
a company so successful that it is hard to imagine. It employs 45,000
people today, operating in more than 20 countries. Three of us from
poor families. For me the GI bill made the difference. It is government
stepping in when it was needed, and has put 45,000 people across this
world to work.
That is what government is about. It is there to be helpful. This is
not just an accounting office. It is not just a fiscal policy problem.
Because of my success in business, I never had to worry again about
whether I could provide health care for my family. I never forgot what
it was like to be without health care.
We need the health reform law, because no American should ever have
to make sacrifices to afford health care. Americans are beginning to
experience the benefits of this law. Why now would we want to put the
progress on hold?
I agree, we have serious economic problems in our country. But we are
not going to solve them by taking health care away from American women
and families. Do not take away this critical assistance for people who
cannot afford the care they need. If we have fiscal problems, if we
have debt and deficit problems, there are ways to solve them. But one
way is not to take health care away from people who need it. It is an
injustice, and we should not permit it.
Mr. President, I ask unanimous consent that the time until 4 p.m. be
equally divided between the two leaders or their designees, with the
other provisions of the previous order remaining in effect.
The PRESIDING OFFICER. Without objection, it is so ordered.
The Senator from Alabama is recognized.
(The remarks of Mr. Shelby pertaining to the introduction of S. 820
are printed in today's Record under ``Statements on Introduced Bills
and Joint Resolutions.'')
The PRESIDING OFFICER. The Senator from Louisiana.
Ms. LANDRIEU. Mr. President, I ask unanimous consent to be recognized
for the next 15 minutes so Senator Vitter and I can introduce a very
important piece of legislation.
The PRESIDING OFFICER (Mr. Sanders). Without objection, it is so
ordered.
(The remarks of Ms. Landrieu and Mr. Vitter pertaining to the
introduction of S. 861 are printed in today's Record under ``Statements
on Introduced Bills and Joint Resolutions.'')
Ms. LANDRIEU. I see other colleagues on the floor, and I yield the
floor.
[[Page S2480]]
The PRESIDING OFFICER. The Senator from New Jersey.
Mr. MENENDEZ. Mr. President, shortly, we hopefully will be voting on
a budget agreement for this fiscal year, and that will start the
process of the debate on the next fiscal year. What we are about to do
is more than pass a budget agreement; we are about to define a vision
of America. We are about to make choices now and in the coming weeks
that will reflect our values and our principles as a people and as a
nation.
The real question before us, in my mind, is not simply about the
numbers, it is about competing visions of America, whether we choose a
vision of America where the air and water are clean, where food and
prescription drugs are safe, where roads and bridges and transportation
systems are modern, well maintained, and fuel prosperity for the
future, an America that puts a premium on education and invests in jobs
and the middle-class, an America where a mother who wakes up in the
middle of the night with a sick child doesn't have to wonder if she can
afford to take that child to the doctor or if her insurance will cover
the costs, an America in which seniors have a reliable Medicare system
they can count on, not just a voucher that doesn't even cover the cost
of a plan in the private marketplace. That is an ugly vision of America
we have seen before, and it is why we passed Medicare in the first
place.
Let's be clear. This is not about the numbers. This is not just
simply about the details of deficit reduction. This is about two
competing views of this Nation, one in which we embrace the concept of
community, each of us working together for the betterment of all of
us--all of us sharing in the burden of balancing the budget and
reducing the deficit.
The other is a tea party vision, in which no government is good
government and the notion of an American community is a myth, and we
are simply a nation of competing individuals, each of us working for
what we can get on our own. Tea partiers see an America in which the
burden of balancing the budget should be borne by senior citizens,
students, and middle-class families, while protecting subsidies to big
oil companies and giving even more tax breaks to the wealthiest
Americans.
We see an America of shared prosperity and shared responsibility that
reduces the deficit and balances the budget, knowing that millionaires
and billionaires can be just as patriotic and willing to pay their fair
share as a soldier in Afghanistan whose family is living on an Army
paycheck.
Our friends on the other side tell us tax cuts for millionaires and
billionaires create jobs and benefit middle-class families. They told
us, when we passed the Bush tax cuts a little over a decade ago, it
would create millions of jobs for every American, and what happened?
Jobs were eliminated or sent overseas, and the wage gap increased. This
tax policy may benefit some, but it doesn't create jobs and it doesn't
reduce our deficit.
For some reason, we seem to think the wealthiest Americans are
clamoring for more tax cuts, but I find no basis in fact for that. I
have spoken to many CEOs and leading corporate executives in my State
and around the country, and never have I heard a word about how badly
they need another tax cut. I believe the wealthiest Americans are as
patriotic as any one of us and are willing to step up to the plate and
pay their fair share if we simply ask them to support a rational tax
reform program that emphasizes shared fiscal responsibility and shared
prosperity.
In my view, tax cuts for millionaires are nothing more than a
political sleight of hand, a smoke-and-mirrors vision of America, in
which there is no shared responsibility, no sense of community but a
misguided belief that only if the rich had more money, the elderly, the
sick, the poor, the middle-class families struggling to make ends meet,
the disabled child on Medicaid who needs round-the-clock care, we would
somehow be better off.
We have been there before, and it hasn't worked. It is a smoke-and-
mirror vision of America to believe that if there were no environmental
protections, that polluters would protect our air and keep the water
clean and safe because it is the right thing to do. Again, we have seen
that vision of America, and it came in a poisonous cloud of smog that
lingered over America's cities, which is why Richard Nixon, a
Republican President, created the Environmental Protection Agency in
the first place.
If we are serious about reducing the deficit, we at least should be
looking, for example, at subsidies for big oil. The top five oil
companies earned nearly $1 trillion--$1 trillion--over the last decade.
Passing my bill to repeal oil subsidies would save taxpayers $33
billion over the next 10 years. We can safely assume oil profits will
be much greater in the decade to come with higher oil prices, but let's
assume that the top five oil companies only get another $1 trillion in
profits over the next decade. Taking back $33 billion in government
handouts would only shave about 3 percent of those profits. Let's not
forget that much of these profits are in Federal waters and on Federal
lands, so they are making these profits on America's own soil.
If we were serious about reducing the deficit, we would also be
seriously looking, for example, at big oil subsidies and tax breaks.
According to the data, the cost of exploration, development, and
production of natural oil and gas in the United States averaged about
$33.76 per barrel of oil. Oil is trading at $107 a barrel. That means
big oil companies are enjoying a profit of over $750 per barrel of oil
they extract. Why in the world would they ever need subsidies from the
U.S. taxpayer in such conditions?
No, handing out money and reducing regulatory burdens on big oil
companies and on the wealthiest Americans is not about balancing the
budget or reducing the deficit; it is about a vision of America that
favors the rich and would rather dismantle Medicare, cut Social
Security, cut Medicaid for seniors, and the poorest among us in nursing
homes who have no other place to go, rather than to solve our long-term
deficit problems.
I am deeply disturbed at what is being proposed as we move forward in
the next debate of the next fiscal year and the so-called push for
balancing the budget by shifting $4 trillion from the promise of
America to protect this Nation and to create prosperity for its people,
to the wealthiest Americans in a tax cut that actually does absolutely
nothing to solve the deficit problem. I am disturbed when I see those
on the other side lining up to resist any compromise, any effort for a
reasonable chance at a workable solution.
Before the President was even done speaking yesterday, the tea party
and many Republicans had already made up their minds that there was
nothing to talk about, no room for compromise; that there is no other
view than their own.
When I first arrived in the other body, we may have had very clear
and fundamental differences, but we understood we were there to govern.
Now our Republican colleagues seem to have stopped governing in order
to score political points and hope they can win an election. The
extreme wing of the Republican Party is driving the legislative process
and the Republican Party to the darkest reaches of the political
spectrum, fundamentally threatening the very notion of democracy. They
want what they want, and they want it all. They will accept nothing
less than everything. But let's not forget it was Republican policies
that got us here in the first place.
It wasn't long ago, not long after the last Republican government
shutdown during another Democratic administration, when we had budget
surpluses--surpluses--as far as the eye could see. The day Bill Clinton
left office, he handed President Bush a $236 billion surplus, with a
projected surplus of $5.6 trillion over the next 10 years. When the
Bush administration left office and President Obama was sworn in after
8 years of Republican economic policies that they are espousing, again,
including tax cuts to the wealthiest, two wars waged unpaid for,
turning a blind eye to the excesses of Wall Street--the new President
faced an economy that was at the abyss of a new depression. The
Republicans had turned a $236 billion budget surplus into a $1.3
trillion budget deficit and projected shortfalls of $8 trillion over
the next decade.
Now they want to give more tax cuts to millionaires and billionaires,
losing $700 billion on the revenue side over
[[Page S2481]]
the next 10 years by extending the Bush tax cuts and trillions more by
slashing tax rates for corporations and millionaires without offsetting
tax expenditures. Those making more than $1 million a year would see
tax cuts of $125,000 each from the tax cuts and tens of thousands of
dollars more from the proposed tax cuts, while people in my State would
lose $34 billion in health benefits and 400,000 New Jerseyans end up
without health coverage at all. They want to shift the balance to
millionaires and billionaires while making Draconian cuts to make up
for the deficits they create--cuts that do not reflect our values as a
people and as a nation.
So let me conclude by saying we all agree we must do more to rein in
spending and get back to the kind of surpluses Democrats created in the
1990s, but we can only get there through a reasonable framework that
emphasizes shared prosperity and shared fiscal responsibility to
achieve our common goal. The way we get there is through negotiation
and compromise, not from smoke and mirrors, not through trickle-down
theories that have not worked, and strictly adhering to an ideological
political agenda that fundamentally starts the clock all over again on
the battles for basic American protections that were fought and won in
the last century.
Let's not go back. Let's protect American values and keep America
moving forward and working. As I have said, you show me your budget and
I will show you your values.
The Republican vision of this Nation, as defined in H.R. 1, does not
represent this Senator's values. It is not the fulfillment of the
American promise, idea and ideal, and I do not believe it is who we are
as a people and what we want our Nation to represent.
With that, I yield the floor.
The PRESIDING OFFICER. The Senator from Kentucky is recognized.
Mr. PAUL. Mr. President, it is amazing to me to be lectured to and
hear about how awful the tea party is from folks who have never been to
a tea party to hear what the tea party represents. Come on down. Bring
your Huey Long rhetoric that there will be a chicken in every pot and a
windmill in every backyard. Bring it down to the tea party and let's
have a discussion. Bring it out to the public.
We hear from those who want to lecture the tea party about cutting
spending. Who among these folks has voted against an appropriations
bill? We haven't even seen one this year. We didn't see a budget. We
are spending $2 trillion that we don't have, and they are here blaming
it on the tea party.
Who is in charge here? It is not the tea party. Blame it on us. Give
us an appropriations bill. Give us a budget. Do something constructive
to fix the fiscal problems we have up here.
They say compromise is the ideal. They tell the tea party: You need
to compromise. But do you know what the compromise is? They want to
raise taxes. The debt commission wants to raise taxes. The President
wants to raise taxes. That is what they are talking about.
Yesterday, the President said he is going to cut $4 trillion. Well,
try to read what is going on here. He said he was going to spend $46
trillion a month ago in his budget. Before we even discuss his budget,
he is going to cut $4 trillion off the $46 trillion he is going to
spend. These are no cuts. We will spend more this year than we spent
last year. Forget about all the numbers, all the baselines, and forget
about 6, 60, 30, 78, or 0, which is what the CBO scored this
yesterday--zero in cuts. Forget about it and ask your Representatives:
Are we going to spend more this year than last? If we are, that is not
a cut. Ask your Representatives, ask your Senators: Will the deficit be
more this year than last year?
The deficit will be bigger this year. We threaten to shut down
government over nothing because we are not cutting spending in any
serious way. They want to blame it on the tea party because in their
secret caucus meetings they have done a poll that says the tea party
could be the villain. Call them ``extreme,'' call them all ``tea
partiers,'' say the tea party has ``taken over'' the Republican Party.
Do you know what the tea party believes in? Good government. We
believe in balancing the budget, in reducing spending. We have plans to
fix Social Security. We introduced a plan yesterday. If the other side
is serious about fixing entitlements, we have a plan. Come to us and
work with us, but don't just come down here and call us names.
Before you send any more money to Washington, ask your
representatives whether they are spending your money wisely. Mr.
President, $100 billion in the budget last year is unaccounted for. We
don't know where it was spent or we think it was improperly spent--$100
billion. In our senatorial offices we get several million dollars. Some
of us want to be frugal with that and send some back to the Treasury.
We plan on sending several hundred thousand dollars back. We want to
know where the money goes. We are still not certain. We have been
asking for months.
Some people say that money is kept in some fund for 3 years and may
go back. Other people told us that the leadership spends that money. We
don't have a definitive answer for even trying to save a couple hundred
thousand dollars of your money that we have control of.
The Pentagon spends a lot of money. Are they spending the money
wisely? You don't know because we cannot audit them. Why? Because the
Pentagon tells us that they are too big to audit. You heard about the
companies saying they are too big to fail. The government now tells you
they are too big to be audited. We got a partial audit of the Federal
Reserve, and we got some information from that.
We are now fighting the war against Qadhafi. Last month, we were
giving him money. We gave him some foreign aid, and we helped to bail
out his national bank. The national banks in those countries are the
leaders' piggy bank. Half of it is probably spirited off to secret
accounts in Switzerland. The U.S. taxpayer bailed out Qadhafi's bank,
and now we are bombing it.
The budget bill that we are talking about has now been scored by the
CBO and will cut almost nothing--maybe a couple hundred million
dollars. It will increase defense spending by $8 billion and cut
spending by $8 billion. The net is about zero. Our deficit this year
will be bigger than last year. Our overall spending will be bigger this
year than last year.
We are not yet serious in Washington. We have not yet recognized the
severity, the enormity, and the significance of how big this deficit
is. This deficit is going to have serious repercussions. The Chinese
have bought over $1 trillion of our debt, and the Japanese, nearly a
trillion.
The Japanese have suffered an enormous national disaster. The
question is, Will they continue to buy our debt or can they?
The other question is, How long can a government continue to exist
that spends more than it brings in? On the other side, they want to
blame the tea party or the Republicans or the rich people. Do you know
what. Both parties are responsible--Republicans, Democrats, Senators,
Congressmen, the President--everybody up here is responsible. It is not
one party or the other.
When Republicans were in charge, they ran up the deficit. Now the
Democrats are in charge, and the main difference is that they are doing
it faster. The Republicans weren't doing a good job either during our
time in power.
We have to understand that the people can do things; not everything
has to be done up here. The States can do things. We have to believe
once again in the American dream. Believing in the American dream is
not standing on the floor and castigating rich people. What is great
about our country is that any among us--any of our kids--can become
rich people if they work hard, go to school, and achieve. We live in a
mobile society, and that is what the American dream is about. We got
away from Europe because all the land was owned and stifled by the
nobility. We came here where there was plenty of land and opportunity,
and the American dream is believing in that.
The interesting thing is, when they try to soak the rich--this old
Huey Long stuff--it is actually failing with the American people
because many of us believe that our kids could gain great wealth or
great success. We still believe in the American dream. If they want to
castigate that and say forget about it and say what we need is just
more government, they need to explain to people why they don't believe
in
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capitalism, in the American dream, and why they don't believe in the
greatness of America.
I still believe in America. I want to get government out of the way.
I think we cannot have an America that succeeds until we are able to do
something about our debt crisis. I fear that no one up here--or very
few here--on either side recognizes the severity and imminence of this
problem. My hope is that before a crisis occurs in our country we will
begin to seriously discuss balancing our budget and have plans to do so
and seriously cut spending.
The PRESIDING OFFICER. The Senator from Louisiana is recognized.
Ms. LANDRIEU. Mr. President, I understand there are other colleagues
on the Senate floor. I want to speak for a few minutes as chair of the
Homeland Security Appropriations Committee and express my views about
the vote we are going to cast in a few hours relative to that
committee.
To Senator Paul, I say respectfully--and it is going to be a lively
debate--that to a hungry family, a chicken in the pot looks pretty good
every now and then, and there are literally millions of children,
sadly, in this country today who go home from school and open the
refrigerator or look on the stove, and they can't find a drumstick
anywhere. That is what this debate is about.
No. 2, I used to love to hear President Clinton say that one of our
jobs here was to create more millionaires. I belong to the DLC, and I
am proud of it--the Democratic Leadership Council. We believe in
creating opportunity that comes along with responsibility and creating
paths forward to prosperity.
Most people I represent--including tea party people--don't believe
companies such as GE--one of the biggest companies in the world--should
get away with paying no taxes. I guess the Senator from Kentucky thinks
that is a good idea. We don't.
I also think most people I represent--including the tea party--think
people who make over $1 million a year--not millionaires or people who
make $250,000 a year, but people who make over $1 million a year--could
pay a little more so that we could afford either early childhood
education or early health care in an effective and efficient way
because people know--tea party people and others--what a smart
investment that is. This is going to be a very interesting debate. I
look forward to it.
I rise as chairman of the Homeland Security Appropriations
Subcommittee to discuss the full-year continuing resolution that the
Senate will take up today. For weeks, the press swirled about a
possible government shutdown. Almost all of the attention was on who
would be blamed if the government shut down. That has been averted for
the time being.
However, far too little attention has been focused on the
consequences of the funding cuts that were proposed by the House. With
some officials in Washington slashing budgets, terrorists continue to
seek ways to do harm to this Nation. Terrorists do not care about
``spending top lines'' and ``CHIMPS.'' What the terrorists care about
is finding our vulnerabilities and exploiting them to do harm to
Americans, to target our military, and to damage our economy.
In the State of the Union earlier this year, the President stated
that al-Qaida and its affiliates continue to plan attacks against us.
He is stating the truth. He stressed that extremists are trying to
inspire acts of violence by those already within our borders. According
to the Attorney General, in the last 2 years, 126 individuals have been
indicted for terrorist-related activities, including 50 United States
citizens. Homeland Security Secretary Napolitano has said that the
threat of a terrorist attack is as high as it has been since 9/11.
Recent events have served to highlight the complicated dynamics of
this situation. The Fort Hood shooting happened, at the hands of a U.S.
citizen. The New York City subway bombing attempt happened, at the
hands of a legal resident alien. The Times Square bombing attempt
happened, precipitated by a naturalized citizen. But we also continue
to face threats from abroad. The 2009 Christmas day bombing attempt and
the October 2010 air cargo bombing attempt happened. We face
increasingly sophisticated daily cyber attacks from countries and
hackers that desire to do us harm. Violence in Mexico is at
unprecedented levels and there are concerns that the violence will
spread across the border.
In addition to these threats, the Department of Homeland Security
also must prepare for and respond to natural disasters. The earthquake
and tsunami in Japan and our memories of Hurricanes Katrina and Rita
remind us of our need to be prepared for a catastrophic disaster.
The Homeland Security title of the full-year continuing resolution
contains a 2-percent cut in funding. I am particularly concerned about
the treatment of funding for FEMA disaster recovery efforts. We are
currently facing a shortfall of at least $1.2 billion this year and $3
billion next year in the disaster relief fund. These shortfalls are the
result of past catastrophic disasters such as Hurricanes Katrina, Rita,
Gustav, and Ike, the Midwest floods of 2008, and the Tennessee floods
of 2010. At the insistence of the House, an additional $1 billion was
provided on a non-emergency basis to meet the fiscal year 2011
shortfall. As a result of having to absorb the additional $1 billion
within the DHS base budget, we were forced to cut necessary investments
in our security, cuts of over 4 percent.
It makes no sense to cut programs that prepare, prevent, and help us
respond to future disasters to pay the costs of past catastrophic
disasters. Yet when you compare the full-year continuing resolution to
the Omnibus bill that we tried to bring to the floor in December, we
lost funding for 175 canine teams for explosives detection. Despite the
increasing threat of homegrown terrorism, we lost $810 million to equip
and train first responders. We lost funding for 1,300 handheld
radiation detectors and funding for five Coast Guard boats and for 140
foot icebreakers. We lost funding for urban search and rescue teams and
funds to deploy the latest technology for blocking cyber attacks on
sensitive Federal computer systems.
In the past, on a bipartisan basis, we have funded the costs of
catastrophic disasters as an emergency. In fact, $110 billion out of
$128 billion appropriated for the FEMA disaster relief fund has been
appropriated as an emergency. We simply cannot responsibly secure the
homeland and prepare for future disasters if we are forced to absorb
the costs of past catastrophic disasters.
Mr. President, I am pleased to say that we were successful in
negotiations with the House in eliminating some of the most harmful
cuts contained in H.R. 1. The bill no longer contains what I considered
irresponsible cuts for the Coast Guard, for Customs and Border
Protection, for immigration enforcement efforts, for the Transportation
Security Administration, and for cyber security. But, the bill that
will be put before the Senate today does not provide resources that are
commensurate with the threat that we face. I believe this view is
shared by a large majority of independent observers. I will vote for
this bill but urge caution as we proceed to fiscal year 2012.
I remind my colleagues that it is essential that we make decisions on
how to secure the homeland with the latest information on the threats
that we face, not based on arbitrary spending top lines that were
produced during the campaign. As we look ahead to drafting the Homeland
Security appropriations bill for the fiscal year that begins in
October, it is time to get off the campaign trail and work together on
a path forward for a more secure homeland.
The PRESIDING OFFICER. The Senator from Pennsylvania.
Mr. CASEY. Mr. President, we have a vote today on a measure to
continue spending for the Federal Government for the next couple
months. It amounts to nearly $40 billion in cuts. That is a good start.
I think most Americans would agree with that. But it is only a start.
We should now work together across party lines to bring down our long-
term debt in a responsible way that protects middle-income families
and, of course, as well the most vulnerable in society.
We do have substantial cuts in this bill today. In fact, there are
record cuts for what we know as discretionary funding.
At the same time, though, we have to get down to the more difficult
business
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of reducing deficit and debt and that work is ahead of us. As we do
that, we have to make sure we are protecting middle-income families and
those who are vulnerable.
This is a good start, but we should remember what families are going
through right now, families all across the country, where one member of
that family--sometimes more--has lost their job. In Pennsylvania, for
example, we have over 500,000 people out of work. Fortunately, that
number has come down since last summer. Last summer, it was approaching
600,000; now it is about 511,000. But we need to bring that number
down.
As families are making decisions, they have to make some difficult
choices, especially those who lost a job, a home or sometimes both but
even families who are not living through the horrific crisis of
unemployment and joblessness, even families where one or two members of
that family are working. Those families, as well, have to make
difficult choices. That is the way we should approach this, as a family
or at least to do our best to imitate what families have to do every
day of the week and to make those difficult choices.
We are facing a deficit and debt set of facts and a challenge we have
never faced in the Nation's history, and we have to be responsive to
that. I spent a decade in State government in Pennsylvania as the
auditor general of the State and, in the last 2 years in that decade,
as treasurer. I know a lot about cutting waste, fraud, and abuse, how
to identify it, how to cut it out, and how to make change. That is why
I was so heartened by what I saw in a GAO report last month.
On March 1, the GAO released a report entitled ``Opportunities to
Reduce Potential Duplication in Government Programs, Save Tax Dollars,
and Enhance Revenue.'' It should serve as one measure, but it should
serve as a how-to guide to reducing waste, fraud, and abuse in
government. It is all there.
Here are some of the highlights. The report identified numerous areas
of the Federal budget where unnecessary duplication, overlap or
fragmentation exist. By some estimates, addressing these redundancies
could save more than $100 billion and potentially as much as $200
billion. It is not going to reduce the deficit by as much as we need to
reduce it, but that, as well, is a very good start, a good place to
look. We need to take a hard look at reports such as that and take
action.
I voted to support an amendment last week that would require the
Office of Management and Budget to immediately cut at least $5 billion
in wasteful and duplicative spending in government programs. I was
happy to see that pass the Senate. This is another step, a first step,
and a good start, in addition to what we are doing today by cutting
almost $40 billion. But we have to cut spending in a way that is smart.
We have to cut spending in a way that is smart enough to realize that
those decisions have to contribute to economic growth to keep the
economy in a State such as Pennsylvania and a country such as America
growing. We have to continue to grow as we cut, and we have to continue
to create jobs as we cut. We cannot do one and not the other.
The Federal budget should also reflect not just our national
priorities but our values as well. This holds true in the budget we are
about to debate, the 2012 budget. Unfortunately, what Republican
Members in the House have proposed for the upcoming fiscal year puts
the entire burden of reducing the deficit on older citizens, students,
and middle-income families. That does not sound like a family to me.
That does not sound like working together, coming together on a plan,
everyone trying to sacrifice, everyone trying to pitch in. It sounds as
if we are placing the burden on members of the family who should not
bear the whole burden.
The Republican plan would end Medicare as we know it. It is as simple
as that. It would end Medicare as we know it. In Pennsylvania, that
means 2.2 million people who are Medicare beneficiaries would be
directly and adversely impacted. These are not just numbers and
statistics. It happens to be 2.2 million people. But who are they? They
are people who fought our wars. They are people who worked in our
factories. They are people who built this economy over many
generations. They are people who took care of our children, taught our
children, cared for our children. These are people who gave all of us
life and love, and we are going to come in with a Medicare scheme to
just put the burden on them and say we have done deficit reduction? I
do not think that is what a family does, and I do not think that is
what America has done or will ever do.
We worked hard to reduce out-of-pocket costs for beneficiaries under
the affordable care act. The Republican House plan will double--
double--out-of-pocket expenses, according to the Congressional Budget
Office. The Republican plan does nothing to reduce health costs or
reform the health care delivery system. It does nothing at all to do
that. What it does is shift costs to older citizens and people with
disabilities.
The GOP plan in the House targets health care spending. Here is what
it does: It cuts over $770 billion out of Medicaid by converting it to
a block grant program. What does that mean? It means that those who are
supposed to be able to rely on the good services provided in Medicaid
have to shoulder the burden. Medicaid provides health care to the most
vulnerable people in our society. Older citizens living in nursing
homes, in many instances, millions of them rely on Medicaid, not always
just Medicare. Children, tens of millions--I think the number right now
is about 27 million to be exact--27 million people rely on Medicaid and
people with disabilities.
As we look to reform our budget and to reduce the deficit and debt as
we must, we should not take steps that will harm children by some of
the proposals we see for Medicaid.
About one-third of rural children in America are beneficiaries of
Medicaid or the Children's Health Insurance Program. We should remember
that when we are thinking about what Medicaid is.
By every measure, Medicaid is both cost-effective and an essential
lifeline for our children. Many people know about the early periodic
screening, diagnosis, and treatment provisions within Medicaid. It is
the gold standard for how poor children get their health care.
Thank goodness, we have had that in place all these decades. But we
have people now who want to eliminate that basic gold standard in
health care.
We have a long way to go. We have a lot of work to do. We have much
work to do on the deficit and debt, and we have to get to that. We
still have to reduce spending. We did reduce it by a record amount in
the bill we are voting on today. But as we do this, just as families
have to come together and share burdens and cut costs, we have to
remember our approach should be similar to any American family.
Unfortunately, there are some people around here who do not seem to
understand that, that we need to approach this as a family approaches
it and not place all the burden on the vulnerable--on children, older
citizens, and those who sometimes do not have a voice in Washington.
I yield the floor.
The PRESIDING OFFICER. The Senator from Arizona.
Mr. KYL. Mr. President, in a few minutes, we are going to be voting
on the continuing resolution which our House colleagues are voting on
literally as we speak. I wish to address that briefly, but I must
comment on one of the things my colleague from Pennsylvania said.
He is critical of the Ryan budget but does not appear to have read
the Ryan budget because I know he would not deliberately
mischaracterize it. He is wrong in several respects, and I will cite
one example. He said the Ryan budget will end Medicare as we know it
and that millions of seniors will be directly affected. That is simply
not true, unless we count someone as a senior who is 53 or 54 years
old. The Ryan budget does not affect anyone above the age of 54 with
respect to Medicare. It says, if you have Medicare and you are 55 or
older, nothing changes for you. All we do is provide premium support
for those age 54 and below.
It is simply incorrect to say millions of seniors would be directly
affected by the Ryan budget with respect to their Medicare coverage.
Let me go back to the point of our discussion right now. As I said,
we will be voting very soon on the continuing resolution. This is the
final continuing
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resolution, we can finally say, for the fiscal year 2011, that funds
the government for the rest of this fiscal year. It does mark the end
of a long and hard-fought process. I am pleased we have been able to
cut billions of dollars from the Federal Government and avoid a
government shutdown.
It is true $38 billion in spending cuts represents a tiny fraction of
the Federal budget, and it is less than many of us would have liked.
But those who have been critical of the deal, saying it does not go far
enough, should keep three points in mind.
First of all, our fiscal problems were not created in a day and will
not be solved in one budget. It is a good start. It is like the weight
I put on. It took me a long time to add the 10 or 12 extra pounds, and
I am not going to get them off overnight. It will take me time to get
them off.
The budget agreement begins a process that is critical to beginning
the reduction of our deficit. The agreement will enact the largest
nondefense spending cut in dollar terms in American history, just
months after President Obama asked Congress for a spending freeze that
would have provided no cuts whatsoever.
The Wall Street Journal points out:
Domestic discretionary spending grew by 6 percent in 2008,
11 percent in 2009, and 14 percent in 2010, but this year
will fall by 4 percent. That's no small reversal.
I believe they are correct.
Second, no one got everything they wanted. Some wanted more in cuts,
some wanted less. I would have preferred we cut more, but this was the
best deal we could get that could pass both Chambers of Congress and
signed by the President.
Third, this debate has altered the conversation about spending, and
that is a good thing. As columnist William McGurn wrote Wednesday,
during the budget negotiations, Speaker Boehner helped change the
national debate over spending ``from `stimulus' and `investment' to
`how much spending we need to cut'--which is why [the President]
press[ed] the reset button'' in his speech this week on spending and
debt. I think Mr. McGurn is correct. We have changed the fight from how
much money we are going to spend on stimulus to how much we are going
to cut from this and future budgets.
Once the final 2011 budget passes, and we move on to the much larger
discussion about the 2012 budget, we will be talking not about saving
billions but about saving trillions of dollars. The problem, as we all
know, is a $14 trillion debt, with a large amount of that owned by
China and by other foreign countries. It also represents over $53
trillion in unfunded liabilities.
In May, our Nation is expected to hit its debt ceiling, and the
President has asked us to increase that ceiling. Senate Republicans and
House Republicans--and I believe many Democrats as well--have said that
in order to raise the debt ceiling, we need to do something significant
about the debt and about constraining future spending. The longer we
wait, the worse the problems will get. They are exacerbated over time.
And we are not going to raise the debt ceiling without ensuring we
don't have to keep on doing it in the future.
Raising taxes, as the President proposed, will not be helpful in this
process. It is disappointing the only specific proposal the President
laid out in his speech yesterday was, in fact, this call for higher
taxes. Speaker Boehner has said raising taxes is a nonstarter, and I
imagine the vast majority of Senate Republicans will take that position
as well. Most Americans do not believe that we are undertaxed but that
Washington has a spending problem.
I will briefly go over a few of the better ideas our conference has
been discussing, which I think could attract support from both sides of
the aisle.
First is a balanced budget amendment, which all Senate Republicans
have cosponsored. This should not serve as a means to raise taxes but
as a mechanism to ensure the Federal Government has to live within its
means each year, just as most American families do.
Second, I believe there is strong support in the Republican caucus
for a constitutional spending limitation at 18 percent of the gross
domestic product. Why 18 percent? Because that is roughly equal to the
revenue as a percentage of gross domestic product over the last 40
years. An 18-percent spending limit would stop Washington from spending
more than it takes in each year.
And third--and I am glad to see the Senator from Missouri in the
Chair while I pass on this compliment--Senators Corker and McCaskill
have sponsored the Commitment to American Prosperity Act, known as the
CAP Act. I strongly support their legislation. It would cap both
mandatory and discretionary spending and put all government spending on
the table.
Beginning in 2013, the CAP Act would establish Federal spending
limits that would, over 10 years, reduce spending to 20.6 percent of
the gross domestic products. That is the average of the last 40 years.
To reduce any gamesmanship, the bill codifies the definition for
emergency spending.
I know some of my colleagues on this side of the aisle wish to see
even more dramatic reductions as a part of the CAP Act. I will note the
Corker-McCaskill proposal is responsible and mainstream and it could,
hopefully, attract a good deal of support from both sides of the aisle.
Over in the House of Representatives, there are also some good ideas.
Budget Committee Chairman Paul Ryan has been a leader on fiscal issues,
and that Chamber will soon consider his budget plan for the next fiscal
year. Chairman Ryan believes this blueprint could reverse Washington's
trend of spending beyond its means and passing the debt on to our
children and grandchildren, and I believe he is on target. His budget
reflects the kind of difficult and politically unpopular choices
lawmakers will need to make in order to do something about our
unsustainable spending and debt.
Perhaps that is why Democrat Erskine Bowles, head of the President's
deficit commission, praised the Ryan budget as ``a serious, honest and
straightforward approach.'' Notably, Mr. Bowles and his cochairman Alan
Simpson said the President's budget ``doesn't go nearly far enough in
addressing the Nation's fiscal challenges.''
Chairman Ryan's budget would return Federal spending--specifically
what is known as nondefense discretionary spending--to 2008 levels.
That is the level before the massive spending unleashed by the Obama
administration. The spending cuts proposed in Ryan's budget total $5.8
trillion over 10 years.
In a recent article, John Taylor, an economics professor at Stanford,
Gary Becker, a Nobel prize winner, and George Shultz, former Secretary
of Labor, Treasury, and State, wrote:
Credible actions that reduce the rapid growth of Federal
spending and debt will raise economic growth and lower the
unemployment rate.
They also said:
Higher private investment, not more government purchases,
is the surest way to increase prosperity.
Reducing government spending can increase economic productivity and
jobs.
President Obama has sought to stimulate the economy and create jobs
by spending trillions of government dollars. What has that gotten us?
Record deficits, excess borrowing--about 40 cents of every dollar the
government now spends will have to be borrowed--and it has gotten us
stubbornly high unemployment.
Chairman Ryan's budget also calls for tax reform through sensible and
growth-promoting policies. The budget contemplates a top tax rate of 25
percent for individuals and businesses. Currently, the tax rate on
business is 35 percent, the highest of all of the countries in the
developed world. That rate, by the way, discourages investment, it
discourages job creation, and it makes America an expensive place in
which to do business. In effect, it encourages business to move their
operations overseas, something all of us are very concerned about.
What we need are solutions that emphasize the strength of American
entrepreneurs and our private sector, not the government; to spur the
economy and help put people back to work.
In the debate ahead, I hope we can engage in serious discussions
about how to take on our fiscal problems in a responsible way--to bring
down the cost of government, boost our economy and promote economic
growth. That is what Americans are looking for, and it is what our
country needs.
[[Page S2485]]
The PRESIDING OFFICER (Mrs. McCaskill). The Senator from Oregon.
Mr. WYDEN. Madam President, I rise to make a parliamentary inquiry.
The Senate will soon receive from the House legislation to fund the
Federal Government for the rest of this year--H.R. 1473. Normally,
spending bills such as this one go through the Appropriations
Committee. Despite the fact that this spending bill the Senate will
soon take up covers funding for the entire Federal Government,
including all appropriations bills for the year, it was never even
considered by the House or Senate Appropriations Committees.
Snuck into this massive spending bill are legislative provisions that
typically are not allowed by Senate rules to be included in the
appropriations process. The Senate has a rule--rule XVI--that prohibits
Senate legislative amendments to an appropriations bill. Despite this
Senate rule, the spending bill the Senate will consider today includes
provisions that are clearly legislative in nature. Specifically, I am
referring to section 1858 of the spending bill which repeals free
choice vouchers from the affordable care act that became law last year.
There should be no doubt that repealing a law or part of a law is
legislating. In this case, section 1858 repeals part of the Internal
Revenue Code. Amending the Internal Revenue Code is general
legislation, not the appropriation of funds. In fact, the Congressional
Budget Office has actually determined that free choice vouchers involve
no appropriation of funds whatsoever.
Madam President, my parliamentary inquiry is whether repealing free
choice vouchers in the spending bill the Senate will soon consider is
legislating on an appropriations bill.
The PRESIDING OFFICER. The Chair is advised that repealing any law is
legislative in nature, and repealing a law in an appropriations bill is
legislating on an appropriations bill.
Mr. WYDEN. I thank the Chair for making this very clear; that
repealing free choice vouchers--the opportunity to come up with a
marketplace-oriented approach for people in a health care no man's
land--in this spending bill is clearly legislating on an appropriations
bill and that is not the way the Senate traditionally does business.
If this provision were brought up in the Senate, we now know it would
be ruled out of order. It would be ruled out of order because in the
Senate we simply do not legislate on appropriations bills. The Senate
doesn't legislate on appropriations bills for a simple reason. Every
Senator knows it would be open season for the special interest
lobbyists all over this town.
The administration and this body took a stand earlier this year
against earmarking--something the Chair is very much aware of--and I
wish to quote from the President's State of the Union Address. The
President said: The American people deserve to know that special
interests aren't larding up legislation with pet projects. Both parties
in Congress should know this: If a bill comes to my desk with earmarks
inside it, I will veto it.
Madam President, I wish to have somebody explain the difference
between letting a lobbyist slip an earmark into an appropriations bill
and slipping legislative language into an appropriations bill that
benefits a whole array of special interest lobbyists. It sure seems to
have the same effect to me.
I am not certain who proposed eliminating free choice vouchers in
this appropriations deal. Maybe a lobbyist asked for it or maybe some
staffer with special interest sympathies saw an opportunity to send the
lobbyist what one lobbyist called today ``an early Easter gift.'' But
either way, I know with 100 percent certainty this decision was not
made with the public interest in mind. The American people are not the
ones who benefit from eliminating free choice vouchers. The American
people like the idea of being able to have choices for their health
care--choices, I would point out, that are much like the ones we have
as Members of Congress.
The fact is this is one provision in the Patient Protection and
Affordable Care Act that combined the thinking of colleagues on both
sides of the aisle--Democrats who wanted to expand coverage and
Republicans who have an interest in choice and competition. This was
the one provision that provided a concrete path to holding down health
care costs, and it has now been gutted by the special interests.
Some special interests are arguing that free choice vouchers would in
some way harm employer-based health coverage. What we know for certain
is that for the group of people who could access a free choice voucher,
the employer-based health system is dysfunctional. It is dysfunctional
for them. The group of people who are covered by free choice vouchers--
folks who aren't eligible for the exchanges and folks who aren't
eligible for subsidies--now have only two choices: coverage that is
completely unavailable or coverage that is completely unaffordable.
The chairman of the Senate Finance Committee, at the time free choice
vouchers was accepted, specifically talked about how this filled a gap
in the bill. And now, with it gone, more than 300,000 Americans aren't
going to have a path to affordable, good quality coverage. Free choice
vouchers were needed at the time we worked on the affordable care act
and they are even more necessary today.
For example, the Kaiser Family Foundation, in their most recent
analysis, has demonstrated how consistently, again and again, more
health care costs are being shifted onto the backs of American workers.
In their most recent analysis, they found that employee health expenses
in the last year have gone up 14 percent, and the employee was eating
almost all of that. Almost all of it was being shifted onto the backs
of the workers.
This was important today--it was important when we moved originally
to enact the legislation. It is even more important today. The fact is,
these individuals are only looking for another path because the system
does not work for them. If it worked for them, we would not even have
an issue. But as the chairman of the Senate Finance Committee pointed
out, this is a gap in the system, a gap that, had we been able to
sustain free choice vouchers and stop the lobbyists from stripping them
out, we would have had a way to ensure that hundreds and hundreds of
thousands of hard-working Americans--these are folks who work at jobs--
would still be able to go to sleep at night knowing they had decent,
good-quality, affordable coverage for themselves and their families.
The Senate does not legislate on appropriations bills because, as the
President said so appropriately, we should be working to rebuild
people's faith in the institution of government. We do not slip
legislative language into these kinds of bills that benefits a few
special interest groups at the expense of hundreds of thousands of
Americans. This is not the way we do business.
Throughout 2009, I promised my constituents that I would not support
health care reforms unless they were real reforms. This legislation
lets special interest groups take real reform out of the health care
law. It seems to me that, all over this town, the special interest
groups are looking at the bill and they are saying now it is going to
be possible, if we can just find, behind closed doors, some allies to
take away real cost containment, real opportunities for good-quality,
affordable coverage for people. This legislation takes real reform out
of the health care law. Because I keep my promises, I will not support
it.
I yield the floor. 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. SCHUMER. Madam President, I ask unanimous consent the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. SCHUMER. Madam President, the last 2 weeks have been very good
weeks for this country and this Congress. We are passing a continuing
resolution and funding the Government and not letting the government
close makes a great deal of sense. I think that was very much to the
better. Even more important, we now will have a significant debate,
over the next few months, about what this country should be like over
the next several decades. That is very important for our country. It is
what we should be doing. I salute Congressman Ryan for laying out on
the table a vision and Speaker Boehner for supporting it.
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I disagree with that vision, but they did have the forthrightness and
the directness to put their views on the floor. It is a different
vision than what America is today.
I also salute President Obama. He joined the issue yesterday,
clearly, without obfuscation, directly, and showed the many places
where he differed with Congressman Ryan. He laid out a different vision
as to where America should go. In a minute, I will discuss my views of
those visions, but I wish to say this at the outset: It is very good to
have this debate. I hope this will be a month or two in which there
will be invective and there will be clashes, but I hope, at the end of
the day, the debate between the Republican vision of where America
should go and the Democratic vision--between Congressman Ryan and
President Obama--will be one of those times when historians will look
back and say this is a place where America, through its Congress and
its President, chose a direction. That is, after all, why we are here.
We have many different issues to consider, but the role of
government, what it should do and what it should not, is probably the
most important for the next several decades. The fact that the issue
has been joined by Congressman Ryan on the one hand and President Obama
on the other can only be good for America. What we will do is come to a
conclusion, hopefully, in the next month or two. Let me give my views
of those two visions.
Yesterday, President Obama delivered a thoughtful, inspired speech
about the need to rein in our out-of-control deficit. He called for a
comprehensive approach, including cuts to defense and mandatory
spending, and he rightfully put revenue on the table. His is a serious
plan, one that would reduce the deficit by $4 trillion over the next 12
years. As only a President can do, he powerfully framed the debate that
will likely continue to rage, certainly for the next several months and
probably over the next year and a half--long after we resolve the debt
ceiling. This is a debate the American people want to have. It is a
debate Democrats are ready and eager to engage in. It is a debate we
believe we will win. We have the high ground.
The House Republican plan puts the middle class last instead of
first. It will never ever pass the Senate, and we know the American
people will reject it as well. The debate we just concluded, the debate
about the CR, was about spending levels. The debate ahead of us is
about more than spending levels, it is about the role of government
itself.
House Republicans are not trying to balance the budget--no. They are
trying to fundamentally alter Americans' relationship with their
government. They believe the message of the last election was that
Americans wanted a dramatic change, a great limitation in how much the
Government should do. It is our view, as Democrats, that the American
people gave us two messages. First, deal with the deficit. There is too
much spending. I say, as a party, we ignore that message at our peril,
but we have not ignored that message, neither in the CR nor in the
President's proposals.
The American people sent a second message as loudly and as strongly
as the first; that is, grow the economy, help the middle class continue
to have better lives, as they have over the last five decades, make
sure there are meaningful jobs in America. I believe a budget that
reflects the American people's view has to do both these things: reduce
the deficit but keep that American dream brightly burning, the American
dream that the American middle class holds, which says the odds are
quite good that we will be doing better 10 years from today than we are
doing now and the odds are better still that our children will do
better than we. That is what we believe American people told us to do.
We believe the budget revealed by Congressman Ryan and supported by
Republicans is not what the American people want. It is a negative,
pessimistic message. It is a message that says the great days of
America are over and we do not believe it is what the people want. As
we go through this debate, we shall see how that comes out. I believe
we will prevail.
The Republican budget unveiled last week by Chairman Ryan is, on
closer inspection, not a serious document. The pundits and political
handicappers may have hailed it as a bold, daring approach to the
fiscal challenges facing our country, but a closer examination reveals
that Ryan's budget hews exactly to his parties' orthodoxy. It does not
gore a single Republican ox. The House Republican budget puts the
entire burden of reducing the deficit on seniors, students, and middle-
class families. At the same time, it protects corporate welfare for oil
companies, gives giant new tax breaks to millionaires and billionaires,
and leaves Pentagon spending almost completely untouched.
Consider what Paul Ryan wants to do to Medicare. His plan ends
Medicare as we know it and replaces it with a private voucher system
that will cut benefits. Seniors would be left to fend for themselves
with no guarantee of affordable coverage. They would have to pay
thousands of dollars more out of their pockets.
As this chart shows, under the current Medicare system, the average
senior on Medicare in 2022 will contribute about 25 percent of the cost
of their health care. But under the Ryan plan, seniors would have to
pay 68 percent of the cost of coverage themselves according to the
nonpartisan Congressional Budget Office.
That is an outrageous burden. Simply put, it would drive many seniors
into poverty. This generation of seniors, the first generation who was
able to say they could retire and not go to bed every night sweating
about how they were going to pay for health care if they or their
spouse got an illness, would be the last generation to do so under Paul
Ryan's vision.
In America, we have said we have bounty. And some of that bounty
should go to those in their golden years, to those who worked hard and
who built the country and who raised the families and fought the wars.
They should not have to worry that they could not afford health care
if, God forbid, a serious illness afflicted them. The Ryan budget turns
its back on that vision.
Republicans have been patting themselves on the back recently for
tackling entitlement reform, but their approach is nothing more than a
rigid, ideological quest to unravel the social safety net.
Medicare certainly has cost issues, but a better way to protect and
preserve Medicare for future generations is to cut out the waste and
inefficiency that everyone knows exists, not to privatize the program.
Our plan is simple when it comes to Medicare: Mend it, do not end it.
In the health care reform law, we made a good downpayment on this
effort. We began to shift Medicare in the larger health care system
from an expensive, fee-for-service model toward a system that pays
providers for episodes of care. The truth is, when it comes to reining
in the cost of Medicare, the President did it first, and he did it
better. We Democrats are willing to build off that law. We can make
further reforms to the delivery system. It needs further reforms. And
we will further drive down the costs. The Ryan budget reverses progress
we have already made and in doing so reopens the doughnut hole, further
burdening seniors' budgets.
It is bad enough that the Ryan budget ends Medicare as we know it and
increases costs for seniors, but just as egregious is what Ryan
proposes to do with all the money he takes from seniors on Medicare. As
this second chart shows and as the President said yesterday, House
Republicans want to give millionaires a new tax cut of $200,000. To pay
for it, it would make 33 seniors each pay $6,000 more for health care.
What kind of vision is that? The Ryan budget uses Medicare cuts to
reduce the tax rate on millionaires and billionaires to 25 percent from
35 percent. That is the lowest level since 1931 when Herbert Hoover was
President. The Ryan budget reduces taxes on the rich to the lowest
level since 1931, the Hoover era, the era of the Great Depression.
I have nothing against the rich. God bless them. Many of them are
living the American dream. They are what many of us aspire to be. But
in order to keep that dream alive and get our country on firmer fiscal
footing, we need a little shared sacrifice. Democrats want to work with
Republicans to get our fiscal house in order, but we believe the best
way to do it is to end the
[[Page S2487]]
millionaires' tax break, not cut Medicare benefits.
Let me be clear. A grand bargain on long-term deficit reduction is
next to impossible unless we look at raising revenue. Unfortunately,
Republican leaders are already trying to rule out revenue. If the other
side refuses to even consider savings in the Tax Code, they will lose
credibility with the American people. We simply cannot balance the
budget by focusing solely on domestic discretionary spending, a narrow
12 percent slice of the budget. Cancer research and Head Start did not
create our current deficit problem, and we will not fix it by going
after cancer research and Head Start.
Thankfully, many rank-and-file Republicans seem to agree with the
need to put revenue on the table. The Senator from Oklahoma, a true
fiscal conservative, said a blanket defense of all tax cuts is
profoundly misguided. My Republican friend from Nebraska said
Republicans need to keep an open mind and keep everything on the table,
including revenue. My Republican friend from Georgia had said that
revenue, along with entitlement cuts, should be part of the budget
compromise. My friend from Tennessee, with whom I work closely on the
Rules Committee, said that tax subsidies for big oil ``may be too
expensive.'' As you can see, many of my colleagues are prepared to
tackle this challenge with, to use the phrase of the Republican Senator
from Nebraska, ``an open mind.''
The bottom line is that any budget that leaves defense and revenue
off the table is ultimately untenable. Indeed, a dollar cut from
defense spending reduces the deficit just as much as a dollar cut from
domestic discretionary spending. While there is certainly waste on the
domestic discretionary side of the budget, there is also certainly
waste on the defense side.
While we are certainly open to compromise, Democrats will not
tolerate the House Republican budget assault on Medicare. It is not
fair, it is not right, and it will never, never pass the Senate.
I am hopeful that both parties in both Chambers of Congress will come
together to reach a reasonable, responsible deficit deal, but in order
to do that, Republican leaders need to take off their ideological
straitjackets. They can start by going to the drafting room and coming
up with a fairer, more broad-based proposal than the Ryan budget.
In conclusion, Speaker Boehner needed Democrats to pass this year's
budget, and he will need Democrats to pass a long-term deficit
reduction plan as well. The sooner he abandons the tea party, the
sooner we can have a compromise.
We hope the coming debate will yield a sound, serious deal. That is
our hope. That is our wish. That is what the next few months are about.
If it doesn't, we Democrats will have to take this contrast of
priorities into 2012. We know that in that battle, too, we will have
the high ground.
I yield the floor.
The PRESIDING OFFICER. The Senator from Vermont.
Mr. LEAHY. Madam President, I see my distinguished colleagues, the
senior Senator from Hawaii and the senior Senator from Mississippi, the
leaders of our Appropriations Committee, on the floor. I just ask if I
may be able to continue for 2 or 3 minutes.
Mr. INOUYE. Please.
Mr. LEAHY. Madam President, I appreciate the extremely hard work the
majority leader--and I have told him this--and the President--I have
told him that--and our distinguished chairman--I have told him that--
the work they have done to get the best possible deal under extremely
difficult circumstances.
I now understand that with the final resolution, I will not be able
to vote for it, as I assume others in the Vermont delegation will not.
I am afraid that it creates an impossible bargain. It averts a
government shutdown at the expense of our overall national interests.
This year, Congress spent most of its time negotiating three rounds
of deeper and deeper cuts in the current year's budget, an exercise in
oftentimes misguided wheel-spinning which ignores the fact that
discretionary spending is but a relative fraction of the overall budget
while addressing some of the most pressing and urgent needs of ordinary
Americans. Advocates paint this agreement in moral terms. I agree with
them. Budgets are about our real priorities.
There is so much in this budget package that is inconsistent with
basic Vermont and American values. Drastic cuts ending hunger programs
for low-income women and children, elimination of Vermont's
weatherization program, and cuts to economic development programs that
grow jobs in my State of Vermont are not my idea of prudent sacrifices.
There is no moral credit to Congress to cut vouchers for homeless
Vermont veterans who served their country honorably, nor does Congress
cover itself in glory by denying first-generation Vermonters help in
going to college because of cuts to the TRIO Program. Is there moral
good in eliminating housing counseling for low-income families facing
foreclosure or slashing small stipends for seniors who are on Meals on
Wheels? The estimates of these cuts in my little State range as high as
$150 million--a tremendous burden at a time when we face the worst time
since the Great Depression.
The reason we are here, as a column pointed out very well in our
national papers yesterday, is because even though we had an agreement
to pass an omnibus bill last December, at the last minute, those on the
other side of the aisle who had agreed on that reneged, and of course
we were not able to get the 60 votes necessary in the Senate.
I had supported that omnibus budget bill even though there were
enormous cuts in it. It would have enacted tens of billions of dollars
in carefully drawn, reasonable reductions below the White House budget
proposal. The distinguished Senator from Hawaii had worked very hard
and encouraged us to make cut after cut after cut. We all agreed with
him. I agreed with him. It was in the omnibus. And if that had passed,
we would not be here. But because those who had agreed to support it
changed their minds at the last minute, it killed the omnibus bill and
it forced the Congress into a series of stopgap funding bills and now
into a slapdash continuing resolution.
In addition to the cuts in the omnibus bill, I also supported
reductions of billions more, and I voted for billions of dollars in
cuts and short-term reductions in the continuing resolutions earlier
this year.
Now, some who tout this round of cuts as the most important and as
the largest cuts in discretionary spending in history are the same ones
who pushed through hundreds of billions of dollars of tax cuts to
companies that ship jobs overseas--American jobs overseas--greatly
adding to the profits of our oil companies that are now charging us $4
a gallon for gas and more; pushed through for multimillionaires, many
of whom said they did not want the tax cuts--pushed it through
nonetheless.
The correlation between those spending cuts and those unfunded tax
cuts is direct. It is unflattering to the proponents of both
initiatives.
Frankly, I am tired of being lectured on fiscal sanity from those who
voted for an unnecessary war in Iraq, saying that is because of 9/11,
even though, as we know from every single report that has come out,
Iraq had absolutely nothing to do with 9/11. But we spent $1 trillion,
thousands of American lives, tens of thousands of other peoples lives
in Iraq, and then, for the first time in the history of this country,
instead of paying for a war, as we always have in the past, we say: Oh,
no, we will borrow the money. And by the way, we will give you a tax
cut too.
So who paid for that war in Iraq? The men and women who valiantly
fought there and their families who waited, wondering if they would
come back alive, broken, or dead, and often were given the worst and
grimmest news. They are the only ones who sacrificed. Everybody else
got a tax cut, and we borrowed the money from China and everywhere else
to pay for a war we should have never been in, and $1 trillion later,
10 years later, we are still spending tens of billions of dollars
there.
Some corporations--some others made a lot of money; we did not. And
then we spend another 8 or 9 years that we should not have been in
Afghanistan doing the same thing--borrowing the money for that.
It seems that our soldiers paid a great burden, and the American
people paid a great burden. But boy, some
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made out like bandits. I don't want any lectures from those who gave
the bandits their bag of gold.
I yield the floor.
____________________