[Congressional Record Volume 158, Number 170 (Sunday, December 30, 2012)]
[Senate]
[Pages S8548-S8549]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MANCHIN:
  S. 3714. A bill to alleviate the fiscal cliff, and for other 
purposes; to the Committee on Finance.
  Mr. MANCHIN. Mr. President, I rise today frustrated, embarrassed, and 
angry. It is absolutely inexcusable that all of us find ourselves in 
this place at this time standing on the floor of the Senate in front of 
the American people, hours before we plunge off the fiscal cliff, with 
no plan and no apparent hope, but here we are, and we have to do 
something.
  If we are as determined to go over the cliff as we seem, we have to 
do something to soften the landing because at the bottom of the fiscal 
cliff are immediate and massive tax increases, deep and indiscriminate 
spending cuts, and the risk of another recession. So, as we come down 
on the final hours, we have two choices--to do nothing and cause an 
unbelievable amount of hardship for our fellow Americans or to do 
something to reduce the suffering inflicted on our citizens by an 
inflexible political system.
  I choose to do something. Today I am introducing the CALM Act, which 
stands for the Cliff Alleviation at the Last Minute Act. The CALM Act 
will do three important things: It will soften the financial blow of 
the fiscal cliff, it will calm our financial markets, and it gives us 
the certainty of a plan now but allows us, if we ever find the courage, 
to pursue the fiscal grand bargain that has eluded us so far. Make no 
mistake, the financial markets are watching us, and they are getting 
more nervous by the hour. We need to reassure them that we are capable 
of making big financial decisions.
  This bill, the CALM Act, is not something I am excited about or proud 
to offer. This is not a great plan, but it is merely a better plan than 
going over the cliff. It should never have come to this. We have known 
for more than a year that this day was coming. For more than a year, I 
have asked Congress for a big fix to our Nation's fiscal challenges. I 
pushed strongly for the Simpson-Bowles framework for deficit reduction. 
Yet here we are, no closer to a sensible decision on how to bring our 
$1.1 trillion budget deficit and our $16.1 trillion public debt under 
control.
  Guess what. Time is up. No more games. No more excuses. No more 
kicking the can down the road. We have to act, and we have to act in a 
way that puts our fiscal house in order, reassures the financial 
markets, and puts the people ahead of politics. We have to deal with 
these tax increases and spending cuts in a humane and tolerable way. 
The CALM Act does all of that. Just look at what happens to people in 
need if we go over the cliff and just do nothing. On New Year's Day the 
lowest income tax rate will jump from 10 percent back to the Clinton-
era rate of 15 percent. That is a pretty big financial bite for people 
in West Virginia, and I know in Ohio, too, sir. These are people who 
are struggling right now.

  Instead of an overnight tax hike of 5 percent, the CALM Act smoothes 
the transition by phasing in increases over 3 years. So instead of a 5-
percent increase, the 10-percent bracket would only go to 11.6 percent 
the first year. The CALM Act does the same with the other tax rates, 
phasing them in over 3 years under the same proportions.
  The CALM Act also puts the Senate on record in support of 
comprehensive overhaul of our tax system. We can still work toward a 
big fix like the Simpson-Bowles framework. If we can do that next year, 
we could stop the full increase from ever occurring.
  Another important feature of the CALM Act is the way it treats 
sequestration. Again, if we go over the cliff and do nothing, nearly 
every government program will be hit with the same percentage cut, and 
that includes social services, education, research, and infrastructure. 
Those are all the things we need to grow our fragile economy.
  The CALM Act gives the Office of Management and Budget discretion and 
flexibility to recommend what programs, agencies, and accounts to cut. 
If OMB fails to do the job, then the sequestration across-the-board 
cuts kick back in. Of course, the final word rests with Congress. OMB's 
decision can be overridden by a joint resolution.
  Every provision of the CALM Act is familiar to the Senate. In fact, 
at one time or another nearly every feature of this plan has been 
offered by both Republicans and Democrats, including President Obama 
and Speaker Boehner. All I have done is pull them together to offer 
them as a compassionate alternative to what happens if we go over the 
fiscal cliff.
  It is true that from the very beginning I have favored a 
comprehensive solution to put our fiscal house in

[[Page S8549]]

order, which was something along the lines of the Bowles-Simpson plan. 
We don't have that luxury right now. Perhaps the CALM Act will not only 
soften the blow of the fiscal cliff, but it will also give us a sense 
of urgency about a grand bargain to repair our financial house.
  I am not so naive as to believe everybody is going to check their 
politics at the door, even at this late hour, but this is not a time 
for politicking, bickering, or partisan games. To allow the country to 
plunge over the fiscal cliff without any alternative plans to soften 
the landing is completely unacceptable. I cannot think of anything more 
irresponsible than to play games with the lives of Americans in such a 
callous way and let this great country go over the fiscal cliff. This 
would jeopardize the financial standing of our country and alarm our 
financial markets in ways that could trigger another recession.
  Something has gone terribly wrong when the biggest threat to the 
American economy is the American Congress. I repeat: Something has gone 
terribly wrong when the biggest threat to our American economy is our 
American Congress.
  It does not have to be that way. I am putting something on the table 
that is fair and balanced. It includes a slow phase-in of the tax 
increases that are going to happen inevitably if we go over the cliff. 
It includes a slow phase-in of all the tax increases, it includes 
targeted spending decreases, and it moves us closer to tax reforms. 
Everybody helps, and we do it in a way that keeps our country strong 
and prosperous.
  This is one of those moments that the Senate was intended to live up 
to and provide leadership, find common ground, level with the American 
people, and be honest with each other. With our debt continuing to soar 
and too many Americans still looking for jobs, these are times that 
demand the very best of the Senate.
  Everywhere in West Virginia--and, in fact, all over this country--
families are making tough choices about how to make ends meet. It is 
time for Washington to do the same.
  Here in the Senate it seems to me that we are always fighting about 
something. Well, that might not change anytime soon, but more often 
than not, I believe we can rise to the common ground of great national 
purpose. I believe with all of my heart that this is one of those 
times.

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