Rep. Mo Brooks' Washington Update to 900+ Citizens at the Von Braun Center

During my remarks, I will be sharing insight with you concerning past Washington events and America's major challenges: the first and foremost of which is America's financial condition.

AMERICA'S FINANCIAL CONDITION UPDATE

Inasmuch as many of you are somewhat familiar with America's finances, I'll go through this information rather quickly.

SLIDE 2: U.S. ANNUAL DEFICIT BAR CHART
America suffered four years of trillion dollar deficits between 2009 and 2012. Since Republicans captured the House in 2011 and began imposing some modicum of financial responsibility, America's deficits have dropped 63%. FY2014's deficit was $483 billion. Notwithstanding our efforts, America still recently blew through the $18 trillion total debt mark.

SLIDE 3: NET INTEREST CHART
Future projections are unpleasant. In FY2014, America's debt service cost $229 billion -- roughly the cost of 13 NASA programs. The Congressional Budget Office projects debt service will increase to $827 billion by 2025, a $600 billion annual increase in debt service. $600 billion is more than America's FY2014 base defense spending.

SLIDE 4: U.S. ANNUAL DEFICIT BAR CHART
The CBO projects that, starting in 2025, deficits will resume their $1 trillion/year pace in perpetuity. If not fixed, what will happen to America?

SLIDE 5: COMPTROLLER GENERAL DODARO
America's Comptroller General has warned Washington for years that America's financial path is unsustainable.

SLIDE 6: INSOLVENCY RISK/UNEMPLOYMENT (GREECE & SPAIN)
America must learn from Greece and Spain, where unemployment is 26% and 24% . . . . worse in America than at any time during the Great Depression.

SLIDE 7: INSOLVENCY RISK/CURRENCY (ARGENTINA & VENEZUELA)
We must learn from Argentina and Venezuela. In 2014, Argentina's inflation rate was 21%. Venezuela's 2014 inflation rate was 68% . . . contributing to a tanking economy, anarchy, civil strife and bloodshed. For emphasis, America's out of control deficits and debt, coupled with a growing risk of a debilitating American insolvency and bankruptcy, permeate all Washington spending discussions.

SOLUTION TO AMERICA'S FINANCIAL CONDITION
America has three solutions to its debt and deficit problem:
1. Huge Tax Increases
2. Huge Spending Cuts
3. OR . . . Grow Revenues by Growing the Economy. I prefer economic growth.

SLIDE 8: USA GDP GROWTH RATES
For 60 years, America's real GDP growth rate averaged 3.3%/year. From 2002 to 2012, it was an anemic 2.2%, a third less than the 60 year average. If America again averages 3.3% growth, then, over the next decade, America's annual federal tax revenues will increase by roughly $1 trillion, enough to help control deficits.
How can Washington stimulate private sector growth? By getting out of the way of America's businesses, thereby cutting the cost of doing business in America!

SLIDE 9: SBA RED TAPE MATH
The federal government must cut its regulatory burdens! Per the Small Business Administration, federal regulations add $10,000/year per employee in business operation costs. That's a huge cost advantage our own government gives to foreign manufacturers!
The federal government must cut taxes on employers! America's corporate tax rate is the highest in the world. That's another huge cost advantage for foreign manufacturers that forces American corporations to out-source jobs overseas!
America must aggressively negotiate fair trade agreements. It makes no sense to let China artificially manipulate currency exchange rates that give Chinese exports a 25-30% price advantage over American-made products!
THE 2014 ELECTIONS WERE A REPUBLICAN LANDSLIDE!

In the 2014 elections, Republicans elected 246 Congressmen, the most since the 1920s, and now have 54 Senators, replacing Democrat Majority Leader Harry Reid with Republican Mitch McConnell. What does this power shift mean? Not as much as you might think.

In the House, we will continue to do our jobs, passing budgets and authorization, appropriations and policy bills. For example, in our first 2 months in office, the House has had 112 votes and passed 17 bills. On America's energy security, the House passed the keystone pipeline and a bill to make transportation of natural gas more efficient and less expensive. On healthcare and jobs, the House passed bills to repeal ObamaCare, repeal ObamaCare's job-killing medical device tax, and end ObamaCare's policy of paying employers to limit worker hours to 29 hours per week. Also on Jobs, the House passed bills decreasing regulations and tax burdens on small businesses. On immigration, the House voted to defund President Obama's unlawful and unconstitutional executive amnesty for illegal aliens. On moral issues, the House banned the use of federal tax dollars to pay for private sector abortions. On education, the House voted to expand Section 529 college savings plans.

In contrast, in the Senate, there has been little substantive change. While the House has voted 112 times and passed 17 bills in 2015, the Senate has voted only 68 times and passed only 5 bills. The only "for sure" substantive change in the Senate is that GOP Senators will block the most radical of Obama's judicial appointments, thus forcing Obama to nominate moderate judges less biased in their judicial views. If the past two months is any indication, Washington gridlock will continue . . . via either Democrat Senate filibusters or White House vetoes.

SLIDE 10: KEYSTONE PIPELINE VETOED
The Keystone Pipeline is a good gridlock example. Keystone would create thousands, perhaps tens of thousands, of construction and energy jobs in America. In the event of another oil embargo like America suffered from in the 1970s, Keystone could help save hundreds of thousands if not millions of existing jobs. More importantly, Keystone protects America's national security. America can obtain oil from Canada, a long-time ally with an easily defensible oil supply route . . . or obtain oil from Muslim Middle East countries that help fund terrorism, used oil as an economic weapon in the 1970s oil embargo, and have hard to defend and easily interruptible supply lines. Keystone is a no brainer. We should buy oil from Canada. But President Obama insists America remain dependent on Muslim countries in the Middle East. Yet last week Senate Democrats protected Obama's veto. If Senate Democrats will support Obama vetoes on a no brainer issue like Keystone, what hope is there ever overriding vetoes?

SLIDE 11: HASC POSSIBLE F.Y. 2016 FUNDING CHART
Next, let me touch on national defense spending. Base national defense spending is $521 billion in FY 2015. President Obama proposes $561 billion for FY 2016. Under sequestration, base national defense spending will be $523 billion. The House Armed Services Committee seeks defense spending between $561 billion and $577 billion, $40 to $56 billion above sequestration levels. Many HASC Members are prepared to vote against budgets that undermine America's national security. The key is cobbling together enough votes to shift funding from other federal programs to national defense.

SLIDE 12: NASA & SLS
Science, Space & Technology Committee members understand the value of America's space program and will fight for adequate NASA funding. Rep. Steve Pallazo of Mississippi chairs the House SST Space Subcommittee. I am vice-chair. Senator Ted Cruz of Texas chairs the Senate Space Subcommittee. I have a very good working relationship with both Rep. Pallazo and Senator Cruz. We meet frequently. Each of us is committed to human space flight and funding the missions described in NASA's name: aeronautics and space. Our challenge is to shift NASA funds to aeronautics and space initiatives or find NASA funding from other agencies. Both paths are challenging because NASA, much like national defense, is a prime target for cuts by a significant number of Senators and Congressmen.

SLIDE 13: $220 MILLION FOR RD-180 REPLACEMENT
Next, is the RD-180 Russian rocket engine. Russia's Ukraine invasion highlights the danger of America relying on Russia's RD-180 rocket engine. Over the past year, various Russian officials have threatened to cut off America from access to both the International Space Station and Russia's RD-180 rocket engine. I have worked hard to liberate America from our reliance on Russia. We have increased funding for the Space Launch System. We have procured $220 million for research and development of an RD-180 rocket engine replacement . . . MADE IN AMERICA. The 114th Congress should continue our efforts.
IMMIGRATION

Next is a major issue right up there with deficits and debt: illegal aliens and immigration law. Illegal aliens and immigration affect America's: economy, deficits, health care, justice system, schools and everything else governments do.

As a predicate to my comments on this issue, let me emphasize that America's LEGAL immigration system is easily the most generous in the world. For example, when it comes to giving a country's highest honor -- citizenship -- to foreign-born persons, no nation on earth grants as many citizenships to foreign persons as America does. In fact, America grants almost as many citizenships each year as all other countries on earth combined!

Why do Senator Shelby, Senator Sessions, and I work so hard to protect Americans from illegal aliens? First, the jobs impact. Between the 1st quarters of 2000 and 2014, a 14 year period, the American economy created 5.6 million net new jobs in the 16 to 65 age bracket . . . an age bracket that covers the vast majority of America's workforce. That's 5.6 million net new jobs. A 14 year period. People age 16 to 65. I ask you to think for a moment and estimate how many of those 5.6 million net new jobs went to American born citizens. Here's the remarkable answer.

SLIDE 14: IMMIGRATION & 127,000 JOBS LOST
During the 14 years in which the American economy added 5.6 million net new jobs . . . American born citizens between ages 16 and 65 LOST 127,000 jobs. That's right. American born citizens in the 16 to 65 age bracket LOST 127,000 jobs from 2000 to 2014. Even worse, job losses coupled with population growth mean there are 17 million more jobless Americans in 2014 in the 16 to 65 age bracket than there were 14 years earlier in 2000. In contrast, illegal aliens and lawful immigrants GAINED 5.7 million net new jobs . . . across the labor market.
Contrary to what many citizens have been led to believe by pro-open borders and amnesty advocates, immigrants had net job GAINS, and American born citizens had net job LOSSES, in many high paying fields such as: architecture, engineering, sales, office & administrative support, and health care practitioners & support. Further, Americans of all races and both sexes lost ground.

SLIDE 15: RACE & SEX LOST JOBS BREAKDOWN
Black American born citizens' working percentage dropped 9.2 points.
Hispanic American born citizens' working percentage dropped 7.7 points.
White American born citizens' working percentage dropped 6.1 points.
Female American born citizens' working percentage dropped 5.6 points.
Male American born citizens' working percentage dropped 9.1 points.
Last Friday's Bureau of Labor Statistics data is similarly sobering. From the beginning of the recession in December 2007 through last month, foreign-born workers OF ALL AGES GAINED 1.9 million jobs while America born citizens LOST 1.1 million jobs. According to Pew Hispanic Center data, illegal aliens held roughly 8 million American jobs 5 years ago, in 2009. That's 8 million job opportunities illegally taken from and lost to struggling American families.

In addition to lost jobs, the surge in illegal alien and lawful immigrant labor suppresses wages for all lower and middle-income American workers. For example, according to the Heritage Foundation, the illegal alien labor supply surge depresses wages of low-skilled American workers by roughly $2,300 per year. $2,300 a year is a lot of lost income for a low-wage worker!

Second is the adverse impact on deficit and debt. A 2011 Federation of Americans for Immigration Reform study determined that illegal aliens cost American taxpayers a net loss of $99 billion per year ($119 billion in higher costs less $20 billion in additional revenue) . . . that's money no longer available to help American citizens!

SLIDE 16: CONGRESSIONAL RESEARCH SERVICE REFUNDS
President Obama's unlawful and unconstitutional executive amnesty for illegal aliens makes matters worse. According to the Congressional Research Service, and unless tax law changes: an illegal alien family of five that has been granted amnesty, a Social Security number, and that has earned between $20,000 and $23,000 annually in each of the past four years . . . Could be paid as much as $35,000 by the U.S. Treasury for back child tax credits and earned income tax credits.
That's crazy! This administration wants to pay illegal aliens for illegally taking jobs from America citizens! Now, multiply that by 10 million or so illegal aliens . . . and you are talking billions of dollars that could otherwise be spent on national defense or American families . . . that is gone and no longer available. I hope this immigration data helps you better understand why Richard Shelby, Jeff Sessions and I fight so hard to stop the economic damage being done by illegal aliens and amnesty to American citizens. What is the solution? It's simple. America has immigration laws on the books. All that is needed is a White House that will enforce them.

OTHER ISSUES

There are numerous other issues I could go into detail on, due to time constraints, let me simply mention briefly.

SLIDE 17: LETTER FROM THE PRESIDENT
Congress will soon address President Obama's request for an Authorization for the Use of Military Force against the Islamic State.
DEBT CEILING FIGHTS

America hits its debt limit on March 16. So, expect another in a long series of debt ceiling fights prompted by America's out-of-control deficits.

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CONCLUSION

SLIDE 1 & 18: U.S. CAPITOL PICTURE
America's challenges are great. But they always have been great . . . and America has done what great nations do, risen to meet and address them. As your Congressman, I do my best in a very challenging environment in Washington to protect and promote the foundational principles that have combined to make America who we are . . . the greatest nation in world history. I am confident that, if we hold true to our foundational principles, if America does what it has successfully done in the past, there is no challenge America cannot overcome. Thank you for giving me the opportunity to work on your behalf in the U.S. Congress.

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