The Democrat Budget
Floor Speech
THE DEMOCRAT BUDGET -- (House of Representatives - March 28, 2007)
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.
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 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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