Hearing of the House Budget Committee - A Progress Report on the War on Poverty: Lessons from the Frontlines

Hearing

oday Maryland Congressman Chris Van Hollen, Ranking Member of the House Budget Committee, made opening remarks at the House Budget Committee hearing on A Progress Report on the War on Poverty: Lessons from the Frontlines. Below are his remarks as prepared for delivery:

"Mr. Chairman, let's begin on a point of agreement -- that for all those who can work, the best anti-poverty measure is a job. And many of us believe that if someone works hard all day, all year around, he or she should be able to earn enough to keep their family out of poverty. That's why the President and Democrats in Congress have proposed to raise the minimum wage, which has less purchasing power today than when Harry Truman was President. That is why today Senate Democrats are holding a vote to increase the minimum wage to $10.10 an hour. According to the Congressional Budget Office (CBO), that measure will lift almost a million hard-working Americans out of poverty and raise the low wages of another 15 million working Americans. Here in the House, Speaker Boehner has refused to allow a vote to reward hard work by raising the minimum wage.

"At the same time, he is refusing to allow a vote on the bipartisan bill that has already passed the Senate to extend emergency unemployment help to more than 3 million Americans -- 3 million individuals who lost their jobs through no fault of their own and continue to search for new work. According to CBO, that measure would generate over 200,000 new jobs. Speaker Boehner won't even give them a vote.

"Mr. Chairman, this past January this Budget Committee held a hearing to review progress in the War on Poverty. At that time, I told you that if House Republicans are genuinely interested in enacting policies that will help more Americans escape poverty, you will find a willing partner in Democrats. But I also indicated that we would not accept Trojan Horse policies that are heavy on sound bites, but actually shred the social safety net and push more Americans into poverty. And I indicated that the Republican budget would be a test of what path Republicans would take.

"Well, we now have that Republican budget. And we all agree that the budgets we propose reflect our values, our choices, and our priorities. They show the American people what we care about and what we care less about. And so it was extremely disappointing to see another Washington Republican budget that, at every juncture, chose to protect special interest tax breaks for powerful, wealthy elites, at the expense of middle class families and those working hard to climb out of poverty into the middle class.

"The budget Republicans passed three weeks ago calls for a one-third cut in tax rates for millionaires and refuses to close a single special interest tax break to help reduce the deficit -- not one. At the same time, about two-thirds of its budget cuts come from initiatives that help middle- and lower-income individuals. The very wealthy and powerful win -- everyone else loses. It is a declaration of class warfare. At a time when both economists and faith leaders like the Pope have called for less trickle down, and more shared prosperity, the Republican budget takes us in the opposite direction.

"In addition, the Washington Republican budget totally ignores the lessons from the hearing on poverty earlier this year. At that time, the Council of Economic Advisors had just released a report showing that anti-poverty programs have cut the poverty rate by nearly 40 percent from 1967 to 2012. It found that, without these efforts, an additional 45 million Americans would be in poverty today. Now, it is unacceptable that about 50 million Americans remain in poverty today. We should work together to tackle that problem. But by what logic do you reduce poverty levels for the millions of Americans in poverty today by cutting programs that have helped lift 45 million Americans out of poverty?

"It is bad enough that the Republican budget targets these programs for cuts while cutting tax rates for millionaires. But it adds insult to injury to claim, as Republicans do, that shredding the social safety net actually helps those who are struggling every day to make ends meet. This claim is based on a false and pernicious stereotype that many of these struggling individuals prefer to rely on these safety nets -- sometimes mockingly referred to as hammocks -- rather than get a job. This mindset is a fantasy world approach -- that by dismantling anti-poverty programs, we will reduce poverty. It ignores the reality that the fundamental problem is not lack of motivation, but lack of economic opportunity.

"And that is why, perhaps the most troubling part of the Republican budget is that in addition to slashing the safety net designed to prevent people from hitting rock bottom, it also chops away at the ladders of opportunity that help our fellow Americans climb out of poverty.

"We do not guarantee success in America. But we should strive to provide equal opportunities for success. Everyone should get a fair shot to make it.

"Yet the Republican budget cuts those opportunities. If applied proportionately, its reckless cuts to non-defense discretionary investments would savage investments in early education and K-12 by 24 percent over the 2016 through 2024 period and contribute to a cut of over $260 billion to higher education policy, including Pell grants, student loans, and tax credits.

"This lowering of the ladder of opportunity and the shredding of the social safety net are the result of a trickle down ideology obsessed with cutting tax rates for the wealthy at the expense of all other priorities. When you get to the top, you pull the ladder up after you. That is not the American way.

"I had hoped to have a serious discussion about next steps forward in the War on Poverty. Unfortunately, the Republican budget plan turns back the clock.

"We can do so much better. Maybe today's hearing will provide some insights."

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