[Congressional Record (Bound Edition), Volume 152 (2006), Part 3]
[Senate]
[Page 3293]
[From the U.S. Government Publishing Office, www.gpo.gov]




                               THE BUDGET

  Mr. McCONNELL. Mr. President, I understand this is fiscal 
responsibility week on the Democratic side of the aisle. It is a good 
time to talk about that and to talk about the strength of the American 
economy. It is certainly no secret to any in Congress or to the 
American people that when the President came to office we had a 
terrorist attack, we have had corporate accounting scandals, a bursting 
stock bubble, and, of course, our share of natural disasters.
  In spite of all that, our economy is in extraordinarily good shape. 
It is very strong, and it is not by accident. It is a direct result of 
the policies of the President of the United States and of the 
Republican Congress.
  Since the enactment of the Jobs and Growth Act of 2003, more 
Americans are working than ever before. Five million new jobs have been 
created since May 2003 alone. Unemployment is at 4.8 percent. That is 
lower than the average of the 1970s, the 1980s, and even the boom 1990s 
that our good friends on the other side of the aisle claim is the best 
the economy could ever do. Current unemployment is lower than the 
average of the 1990s.
  Home ownership, the American dream, has reached an all-time high and 
remains near that high today. The stock market, a good way to measure 
prosperity, is up more than 2,500 points since May 1, of 2003. That is 
nearly a 30-percent increase in the stock market since we passed the 
Jobs and Growth Act of 2003.
  Americans have more money in their pockets. Aftertax income is up 7.9 
percent since President Bush took office. We cut the capital gains tax 
rate. I remember all the comments on the other side of the aisle about 
how this was a tax cut for the rich and how it was going to cost the 
Government all kinds of revenue. The results are in. By cutting the 
capital gains tax rate, we increased the revenues to the Federal 
Government by $20 billion. In other words, the receipts from capital 
gains went from $58 billion, when we had a higher rate, to $78 billion 
with a lower rate, exactly as the occupant of the chair, myself, and 
these in the Bush administration predicted. Cutting capital gains tax 
produces more revenue for the Government. Now we have proven that to be 
the case.
  We are taking more important steps to put our fiscal house in order. 
The deficit reduction bill which the President signed within the last 
month actually reduces the deficit by $40 billion for the first time 
since the late 1990s. It is an actual deficit reduction bill, a 
reduction in the entitlement spending, one of the hardest things to do 
around here. We did not pass it by a landslide, but we got it done.
  What is this all about? It is all about the American people. The 
Government does not create jobs and opportunity; the private sector 
does. The policies of the President and the Republican Congress have 
stimulated the private sector, allowed our country to work its way 
through some of the most dramatic setbacks imaginable, from the first 
big terrorist attack--hopefully the last one on our soil--corporate 
scandals, the stock market bubble bursting, all of that, and yet our 
economy is roaring.
  What do our good friends on the other side of the aisle think the 
prescription is in the wake of this riproaring economy and all of this 
success? We saw some of it in the Committee on the Budget last week. 
First, they want to increase the discretionary cap on this budget we 
are now considering, increase that by $19 billion. In other words, have 
some more spending over and above what the President has recommended 
and what the budget that came out of the Committee on the Budget 
recommends, $873 billion. They want to increase that by $19 billion. 
They also would have mandatory spending increases of $109 billion. The 
President just got through signing, after Congress passed, a deficit 
reduction bill to reduce mandatory spending by $40 billion over the 
next 5 years and the Democrats on the Committee on the Budget want to 
increase it by $109 billion. That will wipe out all those savings and 
add another $50 billion or so on top of it.
  Our Democratic friends also proposed tax increases of $134 billion in 
the committee last week. It strikes me that their solution in the wake 
of this stunningly robust economy we find ourselves with is to tax and 
spend, the old formula.
  I hope we will not go down that road as we move toward passing the 
budget this week. We have an opportunity to demonstrate that we are 
willing to restrain ourselves, that we are willing to cap the rate of 
discretionary spending. We will have that vote at the end of the week. 
I hope it will be successful.
  I yield the floor.

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