[Congressional Record (Bound Edition), Volume 155 (2009), Part 6]
[Senate]
[Pages 8183-8184]
[From the U.S. Government Publishing Office, www.gpo.gov]




                               THE BUDGET

  Mr. JOHANNS. Mr. President, I rise today to speak about the 
President's budget outline.
  For too long, Washington has promised way too much, without a plan to 
pay for it. The result is that we face a financial crisis unlike any 
other generation.
  The lesson is that we must not overpromise and, therefore, we must 
not overspend. Americans are making very tough decisions in their daily 
lives that members of their Government still refuse to make.
  Unfortunately, the President's budget outline is an example of this 
continued pattern. The President's budget fails to chart our country on 
a path toward prosperity. It exercises far too little restraint and 
does not even attempt to tackle the massive fiscal imbalance facing 
future generations.
  The budget we have before us, regretfully, is a spending frenzy, a 
taxing spree, and a borrowing nightmare as big as any that our country 
has ever seen. The President's first budget can, most definitely, be 
characterized as unprecedented and historic on many levels. However, a 
budget that breaks the record for spending the most, taxing the most, 
and borrowing the most of any budget in history is not the kind of 
record the American people can afford to see broken.
  Let's take a look at the massive tax increase. With a pricetag of 
$1.9 trillion, it winds up being the largest tax increase in history. 
Incredulously, though, not a single penny goes toward deficit 
reduction.
  Now, one might ask, how is it possible that the budget contains the 
largest tax increase in history, yet not one cent of that increased 
revenue goes to pay off our Nation's obligations?
  I will tell you why--because the budget gobbles up that tax revenue 
for more spending. When that revenue isn't enough to fund all of the 
Government expansion, the President's budget just keeps on spending.
  There is so much bloated spending that the CBO released an estimate 
Friday projecting a deficit of nearly $1 trillion every year for the 
next 10 years. Our country is faced with an unprecedented deficit. So 
can anyone answer whether it is sound fiscal policy to tax more just to 
spend more?
  At a time when we must do something to pay off our debt and reduce 
deficits, the budget simply ignores these problems. It taxes and it 
spends, inching this great Nation ever closer to bankruptcy.
  One of the specific tax increases found in the President's budget is 
a proposal to enact a cap-and-trade regime. Estimates predict that by 
enacting this policy, each household will see an increase of $3,100 a 
year in higher energy costs. But not to worry, the President said he is 
using the money raised from a cap-and-trade program to make the work 
opportunity tax credit permanent. That credit would provide families 
with $800 more a year.
  The math is straightforward. Let's do the math: a tax increase of 
$3,100 offset by $800. This is still a net tax increase of $2,300. Just 
think, it would take a family of four who makes $50,000 a year 2\1/2\ 
weeks to earn enough to pay for the new tax. That same family with a 
$100,000 mortgage could make about 3 months of mortgage payments or buy 
8 months of groceries with that $2,300.
  Beyond the consumer, the cap-and-trade program will have a 
devastating impact on the farmers in my State. One study found that 
enacting cap and trade would raise the cost of producing an acre of 
corn by anywhere from $40 to $80 per acre. Folks in Nebraska produce 
about 9 million acres of corn each year. So we are looking at $3 
billion to $7 billion more a year in higher input costs for that 
producer. This would be devastating.
  The President's budget also contains harmful tax increases on small 
businesses--the job engine of our economy. According to the latest 
figures, small businesses create over 74 percent of all new private 
sector jobs, employ over half the labor force, and contribute about 
half of the Nation's output. The last thing our country needs when 
unemployment is projected to be as high as 10 percent is a tax on the 
very segment of our economy that creates the majority of the new jobs. 
It goes against all logic to encourage output productivity and job 
creation in one breath and then penalize that same success with tax 
increases in the next.
  The small businesses located in towns across Nebraska cannot afford 
another penny in extra taxes. When I talk with folks back home, I hear 
how they are juggling the electric bill, the health care costs, working 
to make payroll, while trying not to lay people off. Why would they 
believe that their Government wants them to succeed if Congress turns 
around and slaps a crippling tax increase on them during their most 
trying time?
  Beyond the staggering tax increases contained in the budget, the 
spending is also the most we have ever seen in history. The pricetag is 
$3.6 trillion for 2010. Let me repeat, $3.6 trillion. To further 
illustrate the massive spending and subsequent borrowing we would have 
to undertake, I have a chart regarding public debt that I wish to put 
up and share.

[[Page 8184]]

  Last year, the debt held by the public as a percent of gross domestic 
product was about 40 percent. As my chart depicts, by 2019, this will 
rise to 82 percent. If you do the math, that is a 100-percent increase. 
Let's look at the pure dollar amount. The President's budget outline 
would double the debt held by the public in 5 years and nearly triple 
it in 10. It goes from $5.8 trillion in 2009 to $17.3 trillion in 2019.
  Let's imagine for a second if the average citizen behaved as 
Government is being suggested it should--to sign up for credit card 
after credit card after credit card, max them all out without making a 
single payment on the principal, never once scaling back on their 
spending, and then send an IOU to the company saying: I will pay you 
some day.
  Even our creditors have come forward with doubts regarding our 
spending behavior. China within the last few weeks has expressed 
concern. The chief China economist for JPMorgan, Frank Gong, put it 
this way:

       Inside China, there has been a lot of debate about whether 
     they should continue to buy treasuries.

  China is already the No. 1 foreign holder of United States debt. If 
they stop financing our spending, what then? Who will be Uncle Sam's 
banker when the IOUs catch up with us?
  I am extremely worried by the result this runaway spending will 
create--lower standard of living, inflation spiraling out of control, 
less economic opportunity for future generations. What if future 
generations do not have the ability to get a home loan for that first 
house or student loans to go to college? Isn't it our goal to provide a 
better life for our grandchildren and children?
  In conclusion, let me say that none of us has a crystal ball. I 
realize the President has a difficult job, but I do know that trying to 
lead the country out of this mess with bigger Government, runaway 
spending, massive debt, and tax increases is not the way to go. Future 
generations deserve better. Making tough decisions has to start 
somewhere, and I am disappointed that this budget outline passes the 
buck to another day.
  I will wrap up with this. I look forward to working with my 
colleagues as we debate our Nation's budget next week. I sincerely hope 
there is a genuine commitment to tackling some of the concerns that I 
have outlined today.
  Mr. President, I yield the floor, and I suggest the absence of a 
quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. KYL. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.

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