Budget School: The Right to Know How Washington Spends Your Money

Floor Speech

Date: April 16, 2008
Location: Washington, DC
Issues: Taxes

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Mr. MARIO DIAZ-BALART of Florida. I want to thank the gentlewoman from Tennessee for your steadfast leadership on this issue, your leadership is really common sense to a system, a city that is, frankly, broken. Washington is broken.

You know, there are so many, many examples that we can show that Washington is, frankly, broken. It's stuck in this sort of like a perverse dance, frankly, of taking one step forward to help the taxpayer and 3 or 4 steps backwards in hurting the taxpayer.

I would like to give you an example, just one of those examples that when the American people see what is going on here, of course, they say Washington is broken. Of course, they say that there is no common sense in Washington.

Look, what are the good moments? One of the fine moments is when the economy starts slowing down, this Congress, on a bipartisan level, got together, and in a bipartisan level made the determination that the way to get the economy moving again was how, was how? It was to lower taxes.

That debate took place, and it was very clear, on a bipartisan level, Congress decided, House and the other party, the other body, both parties to lower taxes in order to incentivize the economy. It was actually a good moment for this Congress.

But then what happened just days after that? Just days after this Congress lowers taxes on the American people by $107 billion, because we understand that lowering taxes helps the economy, helps the American people, small businesses and families. Just days after that, the majority party comes to this floor with a budget that raises taxes, increases taxes by $683 billion over 5 years.

You don't have to be a rocket scientist or a mathematician to understand if everybody agrees, both parties, that lowering taxes by $103 billion is something that would help the economy, and that's what we did, doesn't it seem logical that days later coming back and passing a budget that increases taxes, not to the level of that, making up for that $103 billion, no, no, no, increases it by $683 billion over 5 years.

Of course people look at Washington and say what are you guys thinking? Don't tell me that you are helping the economy by lowering taxes by $100 billion and then, days later, think that we are going to be surprised, we are not going to understand that you then propose raising almost $700 billion on the same taxpayer, that you are lowering taxes because it helps the economy.

If there is an agreement, a bipartisan agreement, that lowering taxes by $100 billion helps the economy, which there is, is it that hard to understand that the flip side of that is that if you raise taxes by $700 billion it hurts the economy? Yet that's what this Congress did over the objections of those of us that are speaking here, and many others, but that's what the majority party did.

So, again, why is it that Congress has the lowest number, frankly, approval rating since probably these things have been counted? Because they must think we are nuts, because they must think we are totally, absolutely, insane and crazy and have absolutely no idea what we are doing.

Again, I may not be the smartest guy in the whole world, but it doesn't take the smartest guy in the whole world, as you know, to understand that if there is a bipartisan consensus that lowering taxes in a year, $100 billion helps the economy. There should be a consensus that raising taxes by $700 billion for 5 years would do just the opposite. Oh, no, because our desire, the majority's desire to just tax and spend and tax and spend, just, frankly, goes above and beyond any common sense, any logic, any sense of reality.

I just want to thank the gentlewoman from Tennessee for your leadership, because you have not stopped fighting for the taxpayer, for the small family, for families, for small businesses, for farmers, for the people, real life, not D.C. D.C. is broken. Again, thank you for your common sense. Thank you for your fight for the taxpayer.

I also need to add to that. One of the people that I frankly most admire in this process is Congressman Ryan of Wisconsin, who is the ranking member of the Budget Committee, who understands the budget better than, frankly, anybody else, and who has taught me so, so much. Mr. Conaway brings to this process something that is so greatly needed, which is common sense.

I thank the three of you. Look again, yes, frankly the American people have reason to be skeptical, when they see that we lower taxes on one side because we say it's in a healthy economy, and then, days later, the majority raises taxes way above that and pretends that it's not going to have an effect, hoping that people will not learn the truth. But the problem is that that truth is out there, and people's pocketbooks are going to be hit really, really hard.

Mr. RYAN of Wisconsin. Will the gentleman yield for a question?

Mr. MARIO DIAZ-BALART of Florida. Yes, absolutely.

Mr. RYAN of Wisconsin. Does the gentleman remember when we had a markup where the budget was written in the Budget Committee, and we had 36 amendments? Remember the different kinds of amendments we had, and the votes, we had votes on whether or not it's right to cut the child tax credit in half, whether it's right to bring back the marriage penalty, whether we should or should not raise income tax rates across the board for all income taxpayers. Vote after vote after vote, on all these taxes, and our friends on the other side of the aisle, the Democrats voted time over again to raise those taxes on individual tax rates.

They voted specifically to cut the child tax credit in half. They voted specifically to bring back the marriage tax penalty. They voted specifically to raise income tax rates across the board, to bring back death taxes, to raise capital gains and dividends taxes. They did this so they could pass a budget that increased spending.

I want to thank the gentleman from Florida, who has the most passion and who so well articulates the problems we have in America today. I want to thank you for your knowledge, your passion, and your understanding. I also want to just ask you if you recall all those votes and all those differences that we have seen here in just this Congress in this last short year.

Mr. MARIO DIAZ-BALART of Florida. I thank the gentleman. If I may?

Mrs. BLACKBURN. I yield to the gentleman from Florida.

Mr. MARIO DIAZ-BALART of Florida. Frankly, that was one of the saddest days that I have experienced in this process, because, you know, there is so much rhetoric that's thrown around here. We hear the rhetoric, that, oh, no, these are tax cuts on the wealthy.

Then you and others came up with a specific amendment to say, no, no, let's just talk about the issue. Let's take rhetoric off the table for a second. Let's not be partisan. Let's just look at the issue. Let's see if there is something that we can agree on.

Those amendments were brought to the committee. Those amendments were, as you just mentioned, the per child tax credit, and then we kept hearing, but those are tax cuts on the wealthy. I remember the argument and the discussion, again, not only the wealthy get married.

Tax cuts, remember the 10 percent bracket.

Mr. RYAN of Wisconsin. Yes.

Mr. MARIO DIAZ-BALART of Florida. Individuals that are the working poor that now earn so little that they don't pay Federal income tax, and they should not, are now going to be required to start paying Federal income taxes. But they say those are tax cuts on the wealthy.

It's not the wealthy. When you cut to the chase, you get the most smoke and mirrors, and we were able to bring these individual amendments to the committee. The sad part, the reason I say that was really sad, is because those amendments are defeated on a partisan vote, on a partisan vote, amendments to keep the taxes low.

If you have children, amendments to make sure that people who are working poor, that have a hard time paying for gasoline and paying for groceries and don't pay Federal income tax, because they are so poor right now, still don't have to pay them. They voted against those amendments.

There is a reason why people are skeptical and people don't believe what comes out of Washington. Frankly, they have a very good reason to have that attitude.

Mr. CONAWAY. Will the gentleman yield?

Some of those amendments were cosponsored in regular legislation by Democrats. Yet when it came to the Budget Committee they voted against them. In their own bills on the floor over here, they voted against them, just partisan, partisan politics. It helped to add to that cynical attitude that you are referring to.

Mr. MARIO DIAZ-BALART of Florida. I agree, and I will conclude.

Mrs. BLACKBURN. If the gentleman will yield, I think that there was also an amendment presented that day in those 36 amendments that would have allowed your State of Florida and your State of Texas and my State of Tennessee to continue to deduct the sales tax deductibility that some of us worked very hard in 2003 to have that deduction restored for our States, where we did not have a State income tax. We have a sales tax. That is an issue of tax fairness, and it was a party-line vote to take that deduction away.

In my State of Tennessee, that is about a $1,600 deduction per family. That ends up being real money in the pockets of our families. This new $683 billion tax increase that the majority has brought forward and laid on the table here in this House and said we are for it, that is what they want, that is what they think should be the priority. That bill, their budget, will take another $2,668 per tax filer out of the pockets of my constituents and send it here.

I yield back to the gentleman from Florida.

Mr. MARIO DIAZ-BALART of Florida. This is just not that complicated. The question is: Is government here to help serve the people? Or are the people here on this planet and in this country to help fund government exclusively? And that is the battle. We hear that time and time again when we try to reduce taxes on working people, working families, they say you are going to hurt government if you don't allow us to increase taxes. Hurt government? Excuse me, since when is the role of the government just to milk people as much as it possibly can.

Again, there is a reason why the rankings of this Congress are the lowest they have ever been. I guess some think nobody is watching; and, therefore, we can say we support tax cuts and even sometimes file legislation, and then vote against amendments on the budget to lower taxes, the per child tax credit, the death penalty and the marriage penalty so you don't have to pay more just because you are married. Even the death tax.

Quoting the gentleman from Florida (Mr. Feeney), as partisan as this process is, can we not at least agree that there should be no taxation without respiration? No, not in this process. In this process with the people in control now, they are going to milk the taxpayer and spend every penny, and when that is spent, they are going to look in the cushions of people's homes to see if there are loose quarters and take those as well because government knows best because there is no money we can't spent. And, frankly, the American people know better. They are wise.

I thank all of you, particularly the gentlewoman from Tennessee for your leadership and bringing commonsense to this process.

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