[Congressional Record (Bound Edition), Volume 153 (2007), Part 6]
[House]
[Pages 8216-8217]
[From the U.S. Government Publishing Office, www.gpo.gov]




                          THE DEMOCRAT BUDGET

  The SPEAKER pro tempore (Mr. Carney). Under a previous order of the 
House, the gentlewoman from North Carolina (Ms. Foxx) is recognized for 
5 minutes.
  Ms. FOXX. Mr. Speaker, I always come over here with the intentions of 
using my prepared remarks, and then I hear things being said by the 
other side and they usually grab my attention.
  I want to talk tonight a little bit about the Democrat budget, but 
something that one of my colleagues said just a few minutes ago needs 
to be repeated.
  He said, budgets are what you stand for and believe. Well, what the 
Democrats stand for and believe is greater government spending, taking 
more of your money and giving to the government.
  And he also said, this budget doesn't go as far as some wanted. Well, 
that is the truth, I am sure. I am sure there were many Democrats who 
wanted to raise taxes a whole lot more and spend a whole lot more of 
the American people's money than they are going to do, but they are 
going to do plenty of damage, even not going as far as some of them 
want to go.
  So the truth is, they told it to you tonight. The budget is what you 
stand for and believe; and what they stand for and believe is, again, 
taking more of your money and spending it.
  A lot of times I speak to school groups. I spoke to one on Monday.

                              {time}  2300

  And they often ask me, What is the difference between Democrats and 
Republicans? And I tell them that the short answer to that is Democrats 
believe that government is the answer to everything. Just have more 
government. Take more money from the American people and put it into 
government. Republicans think that Americans have survived very well on 
individual initiative, entrepreneurship, and individual responsibility, 
and we don't need the government to run our lives completely. So there 
is a big difference.
  Also, the Democrats think the government knows how to spend your 
money more than you know how to spend your money. Republicans think 
that you are quite intelligent enough to know how to spend your money 
and we don't need to take it away from you

[[Page 8217]]

and give it to some bureaucrat to spend it for you. So that is the big 
difference. And I think, again, the Democrat budget illustrates that.
  It also illustrates how out of touch they are with the citizens of 
this country. As one of my colleagues said the other night, and I wish 
it had been my line, they promised change, but what they didn't tell 
you was it was going to be the change left in your pocket from taking 
your money away from you for increased taxes.
  Now, under the assumptions in the Democrats' proposed budget that is 
going to be voted on tomorrow, we are going to see a massive tax hike. 
In fact, you are going to see the largest tax increase in our Nation's 
history. The Democrat budget increases taxes by $392.5 billion over 5 
years, shattering their last record tax increase of $240 billion in 
1993, when they were last in control of the Congress. In fact, they 
would increase taxes by $231 billion in 2012 alone.
  Today, almost 100 million Americans from virtually every walk of life 
have a financial plan for their future that involves saving and 
investing, and millions more benefit from the countless jobs and 
opportunities that a capital marketplace creates. In addition, more 
than half of America's seniors receive dividend income every year and 
more than 30 percent receive capital gains income.
  Under the Democrat budget, these seniors will see a tax increase of 
an average of $1,100 on dividends and capital gains. Overall, 28 
million American families will pay an additional $1,000 a year in new 
investment taxes as a result of the budget. Many of these people earn 
annual incomes of $50,000 and less.
  This is more than just a reckless policy that endangers the strength 
of our economy. I see it as a cause for serious concern for the 
livelihood of the people of North Carolina's Fifth District, whose tax 
bills would skyrocket under the proposed budget. In North Carolina 
alone, more than 3.1 million taxpayers would see their tax bill go up. 
It wouldn't be a little bump either. The average tax increase for those 
3.1 million North Carolinians would be $2,671.
  This approach is completely backwards. We should be looking first to 
put money back into taxpayers' pockets, not taking it out.
  The current budget proposal is a squandered opportunity to reform 
spiraling Social Security, Medicare, and Medicaid costs and to give 
Americans the permanent tax relief they deserve. Instead it allows 
widespread tax increases that hit middle-income families, low-income 
earners, families with children, small businesses, and many others.
  Some people would see more than a 100 percent increase in their 
taxes. For example, an elderly couple with $40,000 in income would see 
a tax increase of 156% in 2011--from $583 to $1,489.
  And a family of four with $60,000 in income would have a tax bill 
that would rise from $3,030 to $4,893 in 2011--an increase of more than 
$1,850, or 61%.
  And these increases are no accident. During the budget markup, 
Democrats rejected every one of a series of amendments that would have 
prevented tax increases.
  But ultimately, this budget proposal isn't a real surprise. It's 
business as usual for the Democrats and proves that their promises to 
be fiscally responsible are just empty rhetoric. If this budget is 
approved it will signal a return to the Democrats' beloved Tax-and-
Spend model for government.
  For example, if you take one look at the more than $20 billion in 
pork that was added to last week's troop emergency funding bill, it 
becomes crystal clear where the Democrats stand on spending. And worse, 
they proved they don't mind using our troops as bargaining chips.
  Democrats have willfully abandoned their pledge of fiscal 
responsibility. They pledged to follow pay-as-you-go budget rules and 
spending restraint to curb the deficit. And then we get this budget, 
which would give us the largest tax increase in history and ignore the 
larger consequences for our economy.
  These massive tax increases would threaten to reverse the economic 
gains that have developed since adoption of the 2001 and 2003 tax laws.
  Job Growth--A total of 7.6 million new jobs have been created--an 
average of 168,500 per month.
  Unemployment Declines--The unemployment rate has fallen from 6.1 
percent to 4.5 percent.
  Economic Growth--In the past 15 quarters, real gross domestic product 
[GDP] has grown an average of 3.5 percent per year. In the nine prior 
quarters, average GDP growth was an anemic 1.1 percent.
  Investment Growth--Business investment has increased for 15 straight 
quarters, reversing a previous nine-quarter decline.
  Stock Market Gains--Despite recent market corrections, the Dow Jones 
Industrial Average remains 41 percent above its 2003 level.
  Ignores Fiscal Benefits--These tax increases also threaten to reverse 
the substantial deficit reduction that has occurred in the past several 
years.
  Total federal tax revenue has increased from 16.5 percent of GDP in 
2003 to 18.5 percent this year--exceeding the average percentage of the 
past four decades.
  Tax revenue grew by 14.6 percent in 2005, 11.5 percent in 2006, and 
9.3 percent in the first five months of fiscal year 2007.
  Deficit Reduction. This revenue growth was the principal factor in 
reducing the budget deficit from $412.7 billion in 2004 to an estimated 
$214 billion this year, according to the Congressional Budget Office.
  Raising the 10% Tax Rate Bracket to 15 percent--More than 5 million 
individuals and families who previously owed no taxes would become 
subject to the individual income tax in 2011 if Democrats are 
successful in raising the 10% tax rate bracket to 15%, and reducing or 
eliminating other low-income tax benefits.
  Eliminates Marriage Penalty Relief--23 million taxpayers would see 
their taxes increase, on average, by $466 in 2011.
  Cuts the Child Tax Credit in Half--31 million taxpayers would see 
their taxes increase, on average, by $859 in 2011.
  Every Working American Would be Affected by Democrats' Tax Hike--115 
million taxpayers would see their taxes increase, on average, by $1,795 
in 2011; 83 million women would see their taxes rise, on average, by 
$2,068; 48 million married couples would incur average tax increases of 
$2,899; 12 million single women with children would see their taxes 
increase, on average, by $1,082; 17 million elderly individuals would 
incur average tax increases of $2,270; and taxes would rise, on 
average, by $3,960 for 26 million small business owners.

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