Democratic Bill Invests in Homeland Security, Education, Veterans, But Does Not Raise Taxes

Pelosi: 'Democratic Bill Invests in Homeland Security, Education, Veterans, But Does Not Raise Taxes'

Thursday, June 24, 2004

Washington, D.C.-House Democratic Leader Nancy Pelosi spoke this afternoon on the House floor on a bill sponsored by Congressman David Obey of Wisconsin to limit tax cuts for those making more than $1 million a year to provide critical investments for homeland security, education, our veterans, health care, and the environment, while also reducing the deficit. All but two Republicans voted against the bill, which failed on a vote of 184 to 230.

On What Democratic bill does:

"It does make major investments in our education, health care, homeland security, and environment. It does reduce the deficit by nearly $5 billion. But it does not raise taxes.

"Thank you, Mr. Obey, for your outstanding leadership on this issue. Democrats are united behind you in your efforts.

"The budget should be a blueprint for meeting our obligations and moving forward as a country. But the Republican budget is a blueprint for disaster.

"Today, thanks to Mr. Obey, we have an opportunity to have a real impact on the budget. We have a chance to correct some of the imbalance in the Republicans' distorted priorities. This vote matters.

"Congress will choose between giving tax cuts to people making over $1 million a year or making critical investments in homeland security, education, our veterans, health care, and the environment.

"Mr. Speaker, we all know and it's been said over and over on this Floor, that our budget should be a statement of our national values. What is important to us as a country should be reflected in the budget.

"So I ask you, my colleagues, is it a statement of your values to give an additional tax cut to people making over $1 million per year and leaving children behind because they are not receiving the proper education? Would you rather give a tax cut to people making over $1 million a year, or would you rather improve education by adding $1.5 billion for disadvantaged schools, putting us on a path towards full funding of No Child Left Behind?

"If the Republican budget had prevailed over a 10-year period, nearly $20 billion less would have been spent on education, and they could see this. It's below the line for every year except fiscal year 2002, and it's just slightly above the line. Ask any economist - and certainly Bob Rubin would attest to this - and they will say that educating the American people is the best investment that we can make. Certainly from a humanitarian standpoint, but from a practical, budgetary, fiscal standpoint, nothing brings more money into the Treasury than educating the American people. Investing in early childhood, K through 12, higher ed, post-grad, lifetime learning brings more money into the federal Treasury than any tax cut, or anything that you could name.

"And yet, the Republicans reject that, despite what it does for the growth of our country, what it does to bring money into the Treasury, and instead they want to give tax cuts to people making over $1 million a year.

"And is it a statement of you values, my colleagues, to give to give a tax cut to people making over $1 million a year, instead of improving veteran health care, and shortening waiting times at health care facilities? The Paralyzed Veterans of America call this bill vital - they call this bill vital - because instead of those tax cuts it truly honors our veterans.

"We talk a lot about our veterans on this floor, and how we honor their service to our country. But we dishonor them if we say that they do not get the proper priority they should have, that we do not value them in our budget.

"And is it a statement of your values in this time of uncertainty, in terms of our homeland security, to give a tax cut to people making over $1 million a year, instead of improving our homeland security by adding $3 billion to give our first responders the equipment and training they need to increase security at our courts and our airports.

"Most of the wealthy people that I know that make over $1 million a year say that they don't need the tax cut and they would rather have investment in America's children and in America's security. They know it comes to them at a cost to our society.

"This bill is also fiscally responsible. What Mr. Obey has proposed would reduce the deficit by almost $5 billion. That would be about 25 percent of this money that comes from these people making over $1 million a year. He has investment in education, in veterans, homeland security, in the environment, and a major investment in deficit reduction. What happened to the Republican deficit hawks? Have they become an endangered species?

"Let us be clear: This bill does not raise taxes. And I don't know if everybody-the previous gentleman from Florida spoke, and he said that this bill raises taxes on every living being-if everybody he knows makes over $1 million a year. Maybe that's the circle he travels in, maybe that's his awareness of society, but it simply ain't so. The previous speaker said: 'There ain't no free lunch.' There certainly isn't. We should be paying as we go, and we will be addressing that in Mr. Spratt's substitute later. But let us be clear: this does not raise taxes.

"It does make major investments in our education, health care, homeland security, and environment. It does reduce the deficit by nearly $5 billion. But it does not raise taxes.

"It halts a future tax cut for those making over $1 million a year, stopping the fiscally irresponsible giveaway of $19 billion next year to those who need it least.

"And let us speak equally clear: We would not spend one penny more than the Republicans would. We just spend it differently. They have passed an ill-conceived Medicare bill that will cost taxpayers $534 billion, and which gives $149 billion in windfall profits to big drug companies, and they have chosen to ignore a bipartisan approach to 'pay-as-you-go.'

"Today you see a stark difference between the two parties. Democrats are focused on the needs and aspirations of all Americans. Republicans are solely focused on tax cuts for the wealthy few, many of whom realize that these tax cuts for them take a tremendous toll on society in general.

"Mr. Obey's bill is a fiscally sound bill that invests in the American people. I urge my colleagues to support this bill."