PROVIDING FOR CONSIDERATION OF CONFERENCE REPORT ON S. CON. RES. 21, CONCURRENT RESOLUTION ON THE BUDGET FOR FISCAL YEAR 2008 -- (House of Representatives - May 17, 2007)
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Mr. RYAN of Wisconsin. Mr. Speaker, I thank the gentleman for yielding.
I'd like to get into this tax issue. I think we just heard this, there's no tax increase in this budget. You're going to hear that claim over and over and over.
The last speaker just mentioned that they are preserving some tax relief for some people, marriage penalty, for child tax credit, the 10 percent bracket. What they mean, they're saying, they're acknowledging, I'll give them credit on the face of it, they are going to preserve some tax relief and prevent those tax increases from coming.
What that means is they are going to let all these other tax cuts expire. More importantly, the fact is they are banking on the fact, they are requiring all those other tax cuts to expire and all those taxes to increase.
Numbers don't lie, Mr. Speaker, and what a budget is is basically a page full of numbers, and the numbers don't lie.
This chart shows you how it works. The lower line, the green line, is the line that our budget used, which assumes and requires the extension of all the tax cuts, the per child tax credit, the income tax rates, the abolishment of the death tax, cap gains, dividends, all tax cuts. The dotted red line is what the Democrats are using in their budget, and that line says they're going to raise all those taxes, marginal rates, across the board, except we hope not to raise the child tax credit tax or the marriage penalty tax or the 10 percent bracket. And we're putting a trigger in the law, and I call this the trigger tax, and that's the red line, the solid red line. And that is in the year 2010, if the Treasury Department says the surplus will be big enough in 2012 that we the government can afford tax cuts for some people, these three tax cuts, then they will have their tax cuts.
But here's the vicious cycle that we're going into and the vicious cycle is this. Their budget starts with a new $24 billion spending spree just next year in domestic spending. Then they have a $217 billion tax increase in their budget. Then they have 23 promises, 23 wish lists, 23 reserve funds that amount to a call to spend another $190 billion.
They are going to have to raise taxes to pay for all of that. That's going to have the fact that there is no entitlement reforms. What their budget says is, tax more, spend more; tax more, spend more. Then come 2010, when those surpluses don't materialize, because we have done all this spending, they won't even get those three tax cuts that they want to extend, and this budget will go from having the second largest tax increase in American history to having the largest tax increase in American history.
Let's look at what the true intention of this budget was when it passed the House just a month ago. The budget that passed the House a month ago had a $392.5 billion tax increase in it. All the 2001 and 2003 tax cuts that got us out of recession, that created 7.6 million new jobs, that gave us 3 years of double digit revenue growth, they wanted to get rid of it.
Then in conference with the other body, with the Senate, they agreed to the Senate to say, okay, we won't raise every one of these taxes, we would like to preserve three of those tax cuts, but raise all the rest. So they have a $217 billion tax increase in this budget.
But that's not even enough, because their trigger tax will say, if they don't spend as much money now as they are saying now they want to spend, then maybe the taxpayer will get some of those tax benefits. But if they don't, then we are back to a $400 billion tax increase.
The point is this, this is a vicious cycle of tax taxing and spending. The biggest problem with this budget is not what it includes, it's what it doesn't include. It doesn't include any spending control at all. There is no control on spending anywhere in the government, at all, anywhere, no control, no reform of our entitlement programs, even though witness after witness after witness, Democrats and Republicans, the left and right came to Congress and told us, you guys in Congress better get a handle on entitlements. You better get a handle on the fact that next year the baby boomers start retiring, and we are not ready for them. They say for 5 years let's do nothing, but let's just spend more money.
The worst thing we could do is put this budget on a trajectory of more spending and more taxes. What they will do, they will compromise the economic growth we have had over the last 3 years. They will compromise the recipe for success that have given us 3 years of double-digit revenue growth, 7.6 million new jobs.
To tie it all up, they came into the majority 5 months ago declaring new fiscal rules, more fiscal security, PAYGO, pay-as-you-go principle. So what are they doing in this budget? They are getting rid of PAYGO. In this budget, they are turning their PAYGO rules upside down.
This budget actually revises and turns upside down their entire PAYGO principle. The idea that they came in the majority just 5 months ago saying well, we will pay as we go, well, they are violating with this budget, into itself.
The last final point, which I think is really a shame, because 2 weeks ago we had a vote here in the House, 364 Members of Congress, Democrats and Republicans said, let's stop the raid of the Social Security trust fund once and for all. Let's stop that. That's what we said. We agreed that this budget should not raid Social Security. Both parties are responsible for this.
I am not saying it's the Democrats' fault, it's the Republicans' also. But what does this budget do? It raises the Social Security trust fund. Every year that this budget has a proposal, they are raiding the Social Security trust fund every year, even though 2 weeks ago 364 out of 435 of us said let's stop doing that. They turned around and said, and they are brining us a budget that continues to raid the Social Security trust fund. That's wrong. Both parties have been responsible for it. Both parties should fix it.
This budget should be defeated.
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