[Congressional Record Volume 169, Number 148 (Wednesday, September 13, 2023)]
[House]
[Pages H4289-H4292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TRUTH WITH MATH
The SPEAKER pro tempore. Under the Speaker's announced policy of
January 9, 2023, the Chair recognizes the gentleman from Arizona (Mr.
Schweikert) for 30 minutes.
Mr. SCHWEIKERT. Mr. Speaker, as a courtesy and also the fact that the
gentleman did a kindness to me a while back--so what goes around comes
around--I am going to give Mr. Hoyer a couple more minutes to finish
his speech.
Mr. Speaker, I yield to the gentleman from Maryland (Mr. Hoyer).
Mr. HOYER. Mr. Speaker, I thank the gentleman very much for that, and
I am glad a good deed is returned. I will return it again.
Would the gentleman yield to the gentlewoman from Illinois (Ms.
Kelly) so she may finish her comments?
Mr. SCHWEIKERT. Mr. Speaker, I yield to the gentlewoman from Illinois
(Ms. Kelly) so that she may complete her comments.
Ms. KELLY of Illinois. Gun violence does not need to occur inside a
school to harm our children. The stress from living in a community
impacted by gun violence has been proven to lower test scores and
increase mental health conditions like anxiety and PTSD.
Just last week, I was in a place called Danville in the central
Illinois part of my district with 25 young people. The stories I heard
were devastating. One young man talked about how two brothers and his
father were killed because of gun violence.
Just last week alone, there were 42 shootings in Chicago--a 15-year-
old was shot in a park, a 14-year-old was shot while he was riding in a
car, and an 8-year-old--think about that, 8 years old--was shot just
walking on a sidewalk.
I am so happy that Congress has begun to make progress to combat this
public health crisis. We got the Bipartisan Safer Communities Act done,
the first time in 30 years that Congress took meaningful action on gun
violence.
On August 31, Attorney General Merrick Garland directed the ATF to
comply with the Bipartisan Safer Communities Act's licensing
requirements for gun sellers. We have made progress, but there is so
much more to do.
Democrats are prepared to take these next steps. The American people,
young people, are asking us to deliver. We put people over politics
when we passed the Bipartisan Safer Communities Act. We can and must do
more. We cannot afford to wait.
Mr. SCHWEIKERT. Mr. Speaker, I yield to the gentleman from Maryland
(Mr. Hoyer).
Mr. HOYER. Mr. Speaker, I thank my friend from Arizona (Mr.
Schweikert) for his courtesy.
{time} 1930
Mr. SCHWEIKERT. Mr. Speaker, Mr. Hoyer has been kind to me. There was
a while back when we were beating each other up on the floor, I think
he gave me more time to finish. Sometimes you remember those things.
Mr. Speaker, I am well caffeinated, and I am angry, so let's actually
have some fun on the truth with math. I am terrified what is going on
around here because we are making crap up. So let's actually do math.
[[Page H4290]]
Mr. Speaker, this is what we were borrowing per second over the last
12 months. Every single second we were borrowing $72,932. Every second
we borrow 72,000, and 20,000 of it is just interest, and it gets
dramatically worse between now and the rest of the decade.
There is a punch line here I need you to understand. How many times
have you listened to Members walk behind these microphones and do this:
Well, I don't get to vote on mandatory spending, I only vote on
discretionary. Seriously, you have been here how long, Mr. Speaker? It
is our mantra. Well, I vote on defense and nondefense discretionary,
and that is like 30 percent of the budget. It is actually closer to 27.
Well, guess what? Every dime we as Members of Congress now vote on is
borrowed. It is all borrowed money. Look, I threw together this chart--
thank you to the staff--but in the current budget year the
appropriation was about $1.8 trillion, 1.8, 1.3, and in the July update
we have spent about $1.7 trillion on discretionary. This is not
Medicare. This is not Social Security. That is this orange part here.
We have functionally in the last 12 months we have borrowed $2.3
trillion.
Does anyone see the math problem?
The 2023 discretionary spending budget was going to be 1 trillion,
831 billion, and we are going to borrow, when this fiscal year is
over--my math is encroaching in on $2.2 trillion, so my staff thinks it
is going to be 2.1. You know, what is $100 billion between friends?
I need you to process what I am saying. If anyone out there is
listening, if there is any staffer sitting in your office watching the
television, understand everything your Member of Congress votes on,
everything is borrowed money.
Tell me, do you remember, it was a year--actually, let's go back
where I can say something personal. In February, March I came behind
this very microphone and I predicted saying, do you know I think we are
actually heading towards borrowing $1.8 trillion, and I got mocked. I
have to apologize, I was wrong. It wasn't $1.8 trillion. We are heading
towards 2.1, 2.2. It is much worse.
You just heard the left talking about how wonderful everything is.
Explain to me how in May last year, a year ago, May 2022, we thought
the budget deficit for this year would be about mid-800s, 860, $870
billion, and now we are heading toward 2.2. What happened?
Medicare costs went up dramatically. Tax receipts have fallen. You
heard about how wonderful this economy is. Isn't it neat? We are doing
all these subsidized projects. The government is handing out money to
anyone who wants to build a factory. Yay, a socialized, nationalized
economy. We functionally soft nationalized the chip industry. Isn't it
wonderful? Think of what is going on. Yet the tax revenues have fallen
actually fairly dramatically. Brilliant economics once again from what
the left did last year.
Then the third thing no one seems to want to fixate on, that
Inflation Reduction Act that they passed, you know, that they were
celebrating here, if you even read what the leftwing economists say in
their journals, okay, about half of inflation was supply chain stress,
and yes, half of it was the excessive spending.
Okay. So the people in my community, unless you have had a 20 percent
pay hike, if you live in the Phoenix-Scottsdale area, you are poorer
today. You are poorer today than you were 24 months ago. Will the left
take responsibility for that? Will they take responsibility for 50
percent of it?
This is the insanity, and the wheels are coming off, and no one else
seems willing to come behind these microphones and tell the truth about
what is happening.
Every dime we vote on--because remember Social Security, veterans
benefits, and those things are on autopilot. They are mandatory. They
are earned benefits. They are a formula. No one here votes on them. It
is borrowed money. So the old days when you heard Republicans come
behind the microphone saying, well, if we would just get rid of waste
and fraud, if we would just get rid of foreign aid we will be fine.
Foreign aid is about 12 days of borrowing, and I will show you a number
of things where Democrats, the left, makes crap up.
The dollar amounts--well, if we would just tax rich people more, if
we would just get rid of the threshold on Social Security. I am going
to show you it gets nowhere near the types of moneys they misrepresent
to you. We won't use the word ``lie'' tonight. I am going to try to do
my best.
All right. We are just going to run through a number of these because
I gave away a little time, and I only have a half an hour tonight--
actually, I probably only have 20 minutes left--trying to start to
demonstrate how fragile we are.
There was a bond auction about 4 hours ago, 5 hours ago of 30-year
paper here, and it all sold at the very top of the market, basically
meaning if you thought interest rates were going down tomorrow, they
are not. You are starting to see actually how fragile we are. We are
starting to look at numbers within 10 years. Our interest rate
calculations on what we are going to pay on the debt are absolutely
wrong. They are absolutely wrong.
We are now starting to see math saying, we may be missing in--9
budget years from now total interest was predicted to be as high as 1.4
trillion, just the interest. I need you now to add another $315 billion
to it, and that difference is just the marginal interest rate increases
we have had over the last several weeks.
When you are borrowing $26 trillion from the public--when you hear
the 32, $33 trillion, a bunch of that is money that we actually borrow
from the trust funds, which are also running out of money. So why this
is important: This big red hump here, that is defense spending for
2024. It is like $820, $830 billion. This one here is interest, just
interest, we are going pay in 2024.
My math says, there is a very high likelihood that the interest this
government pays in the next fiscal year will be equal to every dime we
spend in defense. Interest will equal the defense budget. So next time
you are talking to a leftist who says, if you would just cut defense
spending--interest now is equaling defense, and that is next year. That
is the budget we are working on right now.
Understand how much trouble we are in. I am going to go through some
of these fast because there is not a lot of time, but this one is
really important. Almost no one here understands or talks about it. It
is not the $2 trillion we are going to issue as new debt next year; it
is functionally the almost $10 trillion that comes to market next year.
We have about $7.6 trillion that gets refinanced. Those are bonds from
years ago that were at remarkably low interest rates. They are coming
due.
We are going to bring almost $10 trillion to market of U.S. sovereign
debt next year.
What happens when we bring that debt at these new higher interest
rates? Anyone here paying attention?
We have gone off the rails. Well, we don't care. That is math. We
don't do math here. This is a math-free zone.
Pay attention to this. This will be a story as we move through next
year when you bring $10 trillion to market, and you have got to
convince investors to buy this debt and that they won't get a better
rate of return if they go buy a high-quality corporate paper over here
or they should roll over their debt and buy U.S. sovereign and at the
same time we are going to be issuing a couple trillion also as
additional virgin debt.
This is where we are at.
You start to look at--we were doing this calculation a couple months
ago, that just by raising the interest by a single point, which we have
more than exceeded, you start to look out a few years, and by the 10-
year window you might be having a $3.7 trillion a year shortfall, a
deficit of $3.7 trillion and it is mostly that growth. This is not
calculating in the new higher medical costs. This is just basically
interest fragility.
This board is important to my Democratic brothers and sisters who
basically--the comment I always get is, well, if we just would tax rich
people more. Please, buy a calculator. Read some of the documents that
your own leftist economists produce because if we would confiscate--I
had a lot of caffeine today--next year, if we would confiscate every
dime--so you make $500,000. The next dollar you make we just take it;
the government takes everything. So you make $500,000, give everything
up. So the guy that makes a billion dollars next year, we take
[[Page H4291]]
every dime of it, that would bring in about a trillion and a half
dollars. A lot of money.
This number is already wrong. Before we were projecting a $1.7
trillion shortfall budget deficit in 2024. Now we are thinking if this
year is 2.2 what will next year be? But confiscate everything over
$500,000--how often have you heard, if we just tax the rich we will be
fine? That is an absolute fraud. Remember, the number one driver of
debt here is not Democrats, it is not Republicans, it is demographics;
the one thing we are not allowed to talk about.
We are not allowed to tell the truth.
We made promises and we have no cash to keep them. At some point here
I am going to set myself on fire after soaking in kerosene. We are
going to talk about Social Security and how ugly the basic math is.
Oh, let's actually start that right now. Look, we have put together
these slides just trying to demonstrate--on this side over here, these
are the taxes you have paid over your lifetime, the average couple, the
average couple. The one bar here I want you to get your head around is
this orange bar, that is Medicare. Do you see that gap? These are the
benefits you receive. That gap from here to here, that right there,
that is 75 percent of all future debt. We are not supposed to talk
about this because it gets people unelected. But the fact of the matter
is unless we have a revolution in delivering the cost of healthcare,
the 130--it may be dramatically more now; that number hasn't been
updated in a while--of U.S. sovereign debt that we plan to issue over
the next 30 years, 75 percent of it is Medicare, 25 percent if we cover
the shortfall on Social Security.
I am not going to make you go through that one.
So let's actually have some fun with math. I had a sort of a group
discussion. Most of the room were people on the left, but they were
very polite. Every other person claimed to have a Ph.D., and we got to
the discussion saying, hey, the actuary reports the CBO basically
saying 9 years from now the Social Security trust fund is empty. It is
empty. So that first year, 2033, $616 billion is the shortfall. If you
are an average couple in America, that is a $17,200 cut to your Social
Security check. We will double senior poverty. How many people have you
seen come to this microphone and say, I give a damn about seniors; I
don't want to double senior poverty? Have you seen the stories of how
many baby boomers are starting to live on the streets in America? The
projections--this is an article today, and I think this was actually--
God, I am not even sure where this was published--actually, it may have
been The Wall Street Journal today. Read the article. Understand what
is happening. The fragility. Then we are going to tell these people we
are taking 25 percent of their Social Security check from them? It is 9
years from now.
But the problem is that first year we are short--let's just do 1 year
of math--in 2033, that is $616 billion.
Let's do the Democrats' suggestion. We are going to tax people over
$400,000. Tax everyone over 400,000, so there is a stone hold. You pay
your Social Security, your FICA tax up to $160,200. Then you don't pay
any, but once you hit 400,000, and everything up, you will pay the 12.4
percent Social Security tax. Great. It is $80 billion. The shortfall is
616, but the Democrats' solution is 80 billion.
Does anyone see a math problem?
So let's go on to the next one. Let's do Bernie Sanders' suggestion.
Let's get rid of the capital. Every dime you earn you are going to pay
12.4 percent. When you do the dynamic score on it that is about $158
billion.
Did I mention the first year shortfall is 616? $616 billion, removing
the cap, tax everything, only produces $158 billion.
{time} 1945
What is that? $437 billion shortfall. What would you like to do?
Where would you like to get it? Our Democrat colleagues refuse to have
the discussion, how we are going to save Social Security and not do the
immoral thing and double senior poverty. They won't have the
conversation, because the President stood right there and said you are
not allowed to talk about Medicare and Social Security, and everyone
applauded, because they are going to do attack mail and attack
television ads because you talked about trying to do the moral thing
and save this program.
Mr. Speaker, may I inquire as to the time remaining?
The SPEAKER pro tempore. The gentleman from Arizona has 11 minutes
remaining.
Mr. SCHWEIKERT. Mr. Speaker, let's actually walk through what this
means. You are right now expecting that 17,200 or 17,400--there is a
little dispute--the cut you are getting as an average couple in America
in 9 years. Yea. Okay. Let's actually do that thing where we are going
to tax everyone over $400,000. That cut now becomes 13,482. Remember,
that is just on the first year. If you completely remove the cap and
just tax every dime, without the dynamic score of how much of the
economy you slowed down, the cut that average couple on Social Security
is going to get is going to be approaching $11,000 a year. That is the
Democrats' moral solution. Does anyone here own a calculator?
Then let's actually go a little bit further. The hard left here says:
Well, let's do the oligarch tax. You say, huh? This is a tax that is
unconstitutional, and it is I think in front of the Supreme Court this
coming year, where the Democrats' solution is: We know we have been
lying to the public. We are not going to tell them that, but we are
going to offer another tax proposal where the Democrats want to tax
unearned capital gains.
You say, huh? What is that? Well, you are rich. You have a building.
You have a business. You have an asset here. You haven't sold it, but
there are capital gains there. Every year, the government is going to
come in and ask for part of it. If you are really rich, they might want
10 percent of it, but if you are only moderately rich, every year you
might only have to pay 2 percent. It would be paying unrealized capital
gains because that is where the real money is.
The problem is the fantasy of going after that money--and this is
without a dynamic score. How so how does it change behavior? Remember,
taxes like this change behavior. We won't do the geeky economics. It
produces about $137 billion. That first year, it would produce $137
billion.
Do you remember the previous board? Social Security has a $616
billion shortfall in the first year, and the most radical tax proposal
produces $137 billion. Am I getting the point across? Do you understand
how difficult these numbers are?
They said we are going to come and do feeder. Oh, we are building
another factory that there are no workers for and there is no one who
wants the product, but we subsidize it. In our office, our new nickname
we call this is soft nationalization of industry, because the Democrats
figured out the way to buy the love of big industry, big business, is
hand them cash.
As Republicans, we try to say let's fix the tax code so you have to
compete with each other. You have got to go out there and engage in
creative destruction and make these better, faster. Democrats say, make
the same old crap you used to make, but we are going to give you the
cash to do it. It is insane economics.
This board is a little harder to read, but we were trying to figure
out if the hard left's theory of we are going to have all of these
taxes but we are going to sweep the assets of rich people, which is
unconstitutional and we will find out next year if my nonlawyer legal
opinion is true from the Supreme Court.
The principle of this board is that the CBO has told us we are
heading toward 115 to 120 percent of debt to GDP in sort of the 10-year
window. With all of these new taxes of the Democrats, we are still
about 111 percent of debt to GDP, and this is assuming every dime comes
in. It is a fraud, and this is supposed to make you feel better. Oh, we
have a tax proposal; just those nasty Republicans won't let us blow up
the economy.
I know this is hard to read, but why this is so difficult is, you see
these gaps, these lines are basically to say--you see the gap? The tax
proposals being proposed by the Democrats to save the Social Security
trust fund get nowhere near it. As you go out further in time, the gap
gets bigger and bigger.
Part of the punch line here I need someone to process. That is in 9
years.
[[Page H4292]]
In less time than that, the Medicare part A trust fund, which is about
40 percent of all Medicare spending, is gone. The transportation trust
fund is gone. We are hitting numbers. The $2.1 to $2.2 trillion we will
borrow this year, we were not supposed to hit for a decade. We are
borrowing now at rates that we were not supposed to see for years. This
is the Democrats' economy. This is sort of nationalizing much of
industry. The chips industry, now the green energy industry, we are
handing out cash. Something happened. We are building all of these
factories, but we are getting no tax receipts from it. Something has
gone horribly, horribly wrong out there, instead of our brothers and
sisters on the left and those of us on the right coming together and
saying we have a moral obligation not to have baby boomers on the
street as part of their retirement, not to double senior poverty.
To my young kids--yes, I am an old dad. I have a 14-month-old and an
8-year-old. Do they deserve to have a future? CBO math basically says
in 20 years, if we wanted to maintain baseline services as they are
today, we have to double taxes. That means my kids live in a world
where they are dramatically poorer than how all the rest of us have
lived.
You want to know why the middle class is so cranky? Once again, back
to something I said in the beginning. The middle class in this country
is poorer today than they were 24 months ago. If you live in my
community, if you haven't had over a 20 percent pay hike in the last 24
months, you are poorer today than you were before. This is the
morality?
Let's have the most difficult discussion this place a capable of.
What are we going to do? I have come behind this microphone dozens and
dozens and dozens of times showing you that if we could actually have a
revolution in the cost of healthcare--and I have brought the ways to do
it. I have brought all sorts of charts to say, hey, did you realize
diabetes is 33 percent of all healthcare spending? Could we have a
revolution there? Are we really going to do the same old farm bill? Are
we going to actually understand we have ways to help our brothers and
sisters live healthier lives, come back into the labor force, have some
economic growth, and stop watching America die? In the next decade, we
will have more Americans dying than being born in this country. We are
dying as a society, and we are financing it ourselves.
The immorality of what we are doing, whether it be the debt or the
way we are hiding from it, there is hope. There is a way it works. Is
this place capable of actually thinking? Are we going to continue to do
the petty, well, so and so hurt my feelings, so I am going to oppose
this?
I mean, I like this. I am not going to read this. This is
uncomfortable. I can't go home and explain this to my chamber of
commerce. Screw you. This is a moment of action, so I am going to give
you an absolute radical proposal that I just want you to ruminate. I
accept it has no chance of passing, and I will use this year's numbers.
In the 2023 budget year, nondefense discretionary spending is--let's
call it about $740 billion. About $326 billion of that is money that we
are borrowing and sending to States, counties, cities, many of them for
programs I absolutely love like justice grants and other things. I have
always supported these, but we are borrowing money to send to entities
that have their own taxing and borrowing authority. That is the
definition of insanity.
For those who come in here and say, I want to defend the 10th
Amendment, I have got a great way for you to do it: Stop borrowing
money over here to send to States so they have to come and lobby and
grovel at your office every 6 weeks. It would be hard. The hallways up
and down might be depopulated because they won't be lined up at our
door begging for more cash.
Is it rational for us to borrow hundreds and hundreds of billions of
dollars over here and hand it to entities that have their own taxing
authority?
To my brothers and sisters on the left, this is the punch line. You
bang on me saying, we just need to raise taxes. Great. You control most
of these cities. Go raise the taxes and make it so we stop borrowing
the money.
Mr. Speaker, I yield back the balance of my time.
____________________