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TO THE 30 MILLION ACRES IN THE
GULF OF MEXICO THAT ARE NOT
DRILLED BUT, AS THE SENATOR HAS
SAID, OUGHT TO BE DRILLED?
WELL,
MR. PRESIDENT, I APPRECIATE THE
QUESTION FROM MY COLLEAGUE FROM
FLORIDA AS WE RECOGNIZE COMING
FROM DIFFERENT PARTS OF THE
COUNTRY WHERE WE HAVE ACCESS IN
CLOSE PROXIMITY TO THE OIL AND
GAS RESOURCE, BUT RECOGNIZE THAT
THERE ARE DIFFERENCES BETWEEN
WHERE WE ARE IN OUR GEOGRAPHY
AND PERHAPS THE APPROACH.
DOWN IN THE GULF OF MEXICO, I
THINK YOUR CLIMATE ALLOWS FOR
EXPLORATION AND PRODUCTION
PROBABLY 365 DAYS OUT OF THE
YEAR.
A LITTLE BIT DIFFERENT UP IN
ANTARCTIC ENVIRONMENT, AND WE
RESPECT THAT.
BUT TO THE SENATOR'S QUESTION,
WHICH IS A VERY LEGITIMATE AND
VERY FAIR QUESTION -- AND THIS
IS WHY WE HAD HOPED SO MUCH THAT
THIS REPORT FROM THE DEPARTMENT
OF INTERIOR WOULD HAVE REALLY
ALLOWED FOR A BREAKDOWN SO THAT
WE CAN UNDERSTAND WHAT IS
HAPPENING WITH THESE MANY, MANY,
MANY THOUSANDS OF LEASES THAT
ARE OUT THERE AND EXISTING.
WHAT IS THE TRUE STATUS?
TO PUT IT IN IDLE OR UNUSED IS
NOT VERY CLEAR, QUITE HONESTLY.
WHAT DOES THAT MEAN?
ARE WE IN THE EX-FLOOR TORRY --
EXPLORATORY PHASE AND SO WE'RE
NOT IN PRODUCTION AND WHAT
CATEGORY IS THAT IN?
IS THIS AN OLDER LEASE THAT
PERHAPS THEY HAVE DETERMINED
THERE SIMPLY IS NOT THE, GIVEN
THAT FOR INSTANCE YOU'RE
DRILLING IN SOME DEEP WATERS,
EXTRAORDINARILY COSTLY, AS I
MENTIONED.
THESE ARE VERY COMPLEX, THE
TECHNOLOGIES ARE CONSIDERABLE.
AND SO IF YOU HAVE DONE SOME
EXPLORATION BUT YOU FIND VERY,
VERY LIMITED OR PERHAPS NOTHING,
AS I MENTIONED, WE DON'T HAVE
THAT MAGIC "X" THAT LEADS US TO
WHAT WE CALL IN THE NORTH THE
ELEPHANT FINDS.
SO I THINK IT IS IMPORTANT TO
UNDERSTAND WHAT IT IS THAT WE
HAVE AND THE STATUS OF THESE
LEASES.
THIS INFORMATION IS CRITICAL TO
US BECAUSE IF THE, IF THEY ARE
IN THE EXPLORATORY PHASE AND
IT'S JUST TAKING LONGER BECAUSE,
QUITE HONESTLY, WE HAVE HIGHER
STANDARDS WITH THE ENVIRONMENTAL
PERMITS.
IT'S JUST TAKING MORE TIME.
I THINK WE REALIZED AFTER, AFTER
THE DEEPWATER HORIZON AND A
GREAT DEAL OF SCRUTINY ON
M.M.S., QUITE HONESTLY, WE
DIDN'T HAVE SUFFICIENT NUMBERS
ISSUING PERMITS WITHIN THAT
AGENCY TO KIND OF KEEP UP.
SO WE NEED TO UNDERSTAND WHERE
THE ISSUE IS, WHERE THE PROBLEM
IS.
THERE MAY IN FACT -- AND I WILL
CONCEDE HERE ON THE FLOOR THAT
THERE MAY BE SOME LEASES THAT
ARE IN EXISTENCE WHERE THE
PRODUCERS HAVE SAID, YOU KNOW
WHAT, WE, WE'VE ONLY GOT SO MUCH
ABILITY TO MOVE FORWARD WITH
JUST THE FINANCING OF ALL OF
THIS.
AND SO WE'RE GOING TO EXPLORE
AND PRODUCE IN WELLS 1, 2 AND 3,
BUT 4 AND 5, WE DON'T -- WE ARE
NOT PREPARED AT THIS POINT IN
TIME TO ADVANCE ON THEM AS
QUICKLY AS WE ARE.
WE THINK THAT THEY MAY HAVE
POTENTIAL, BUT WE DON'T KNOW
THAT.
HOW CAN WE HELP TO FACILITATE
THAT?
WHAT IS IT THAT WE NEED?
DO WE NEED NOR PEOPLE WITHIN
M.M.S., NOW BOMER, TO HELP
EXPEDITE THE PERMITS?
WHAT DOES IT MEAN TO BE AN IDLE
LEASE?
WHAT DOES IT MEAN?
I WILL JUST DIGRESS FOR ONE
MOMENT, IF I MAY, BECAUSE I
THINK IT IS IMPORTANT FOR PEOPLE
TO RECOGNIZE THAT WHEN WE'RE
TALKING ABOUT EXPLORATION IN THE
ARCTIC, A FIVE-YEAR, A TEN-YEAR
TIME PERIOD IS SIMPLY NOT
SUFFICIENT BECAUSE WE CANNOT
EXPLORE 365 DAYS.
MOST TIMES THE SEASON IS LIMITED
TO ABOUT 60 DAYS DURING THE
COLDEST, DARKEST, MOST DIFFICULT
TIME OF THE YEAR.
BUT THAT'S WHEN THE GROUND IS
FROZEN.
THAT'S WHEN THE PERMITS ARE
ISSUED FOR EXPLORATION.
SO IT TAKES MULTIPLE, MULTIPLE,
MULTIPLE SEASONS TO EVEN GET
THROUGH THE EXPLORATION PHASE.
SO CONTINUING'S IMPORTANT TO
RECOGNIZE -- SO I THINK IT'S
IMPORTANT TO RECOGNIZE THAT NOT
ALL LEASES ARE EQUAL.
NOT EVERY LEASE THAT A PRODUCER
PURCHASES FROM THE GOVERNMENT
ACTUALLY HAS ANYTHING WORTH
DEVELOPING.
WE NEED TO KNOW AND UNDERSTAND A
LITTLE BIT MORE.
WE HAD HOPED THAT WE WOULD LEARN
THAT FROM THE DEPARTMENT OF
INTERIOR REPORT.
UNFORTUNATELY, IT DIDN'T GIVE
THE DETAIL THAT WE HAD HOPED.
BUT I APPRECIATE MY COLLEAGUE'S
QUESTION.
FLOOR.
MR. PRESIDENT, I YIELD THE
MR. PRESIDENT?
THE
SENATOR FROM FLORIDA.
MR. PRESIDENT, AS
THE SENATOR IS FROM ALASKA IS
LEAVING THE FLOOR, I WOULD JUST
SAY TO HER THAT I APPRECIATE HER
POINT OF VIEW THAT WHAT SHE HAS
EXPRESSED, THERE IS CERTAINLY AN
OPPORTUNITY FOR WORKING
SOMETHING OUT.
AS I STATED IN MY QUESTION TO
HER AT THE OUTSET THAT I DON'T
KNOW -- THIS SENATOR DOESN'T
KNOW A LOT ABOUT THE LEASES IN
ALASKA, BUT I CERTAINLY DO KNOW
A LOT ABOUT THE LEASES IN THE
GULF OF MEXICO.
AND FOR 30 MILLION ACRES IN THE
GULF OF MEXICO TO GO UNDRILLED
FOR YEARS AND YEARS AND YEARS,
WHERE OUT OF A TOTAL OF 37
MILLION ACRES ARE LEAFED BUT
ONLY -- ARE LEASED BUT ONLY 7
MILLION ACRES ARE ACTUALLY
DRILLED AND PRODUCED, SEEMS TO
ME THAT THERE'S A WONDERFUL
OPPORTUNITY FOR A LOT MORE
PRODUCTION NOT JUST IN 7 MILLION
ACRES, BUT 30 MILLION ACRES
ADDITIONALLY.
AND THAT IF THE COMPANY THAT
HOLDS THAT LEASE AND HAS HELD
THAT LEASE FOR YEARS AND YEARS
IS NOT GOING TO DRILL IT AND
PRODUCE, THEN LET SOMEBODY ELSE
DO IT.
AND THAT WAS THE THEORY BEHIND
THIS SENATOR'S SPONSORSHIP OF
THAT LEGISLATION.
AND AS THE SENATOR FROM ALASKA
HAS POINTED OUT SOME DIFFERENCES
IN HER STATE, THEN IT SEEMS TO
ME THAT THIS IS, AS THE GOOD
BOOK SAYS, A PLACE WHERE PEOPLE
OF GOOD INTENTIONS CAN COME AND
LET US REASON TOGETHER.
MR. PRESIDENT, I WANTED TO SPEAK
ON ANOTHER SUBJECT.
I WILL TELL MY COLLEAGUE THAT
I'M NOT GOING TO BE SPEAKING
VERY LONG.
THIS IS SHORT.
I JUST WANTED TO BRING THIS TO
THE ATTENTION OF THE SENATE.
THIS IS THE "WALL STREET
JOURNAL" FROM LAST WEEKEND.
HERE IS A ARTICLE, TRANSOCEAN
CITES SAFETY IN BONUSES.
THIS IS WORTH THIS SENATOR
READING FOR THE RECORD AND CALL
TO THE ATTENTION OF THE SENATE.
"TRANSOCEAN HAS HAD ITS BEST
YEAR IN SAFETY PEFORMANCE"
THAT'S IN QUOTES -- "DESPITE THE
EXPLOSION OF ITS DEEPWATER
HORIZON RIG THAT LEFT 11 DEAD
AND OIL GUSHING INTO THE GULF OF
MEXICO, THE WORLD'S LARGEST
OFFSHORE RIG COMPANY SAID IN A
SECURITY FILING ON FRIDAY.
ACCORDINGLY TRANSOCEAN'S
EXECUTIVES RECEIVED TWO-THIRDS
OF THEIR TARGET SAFETY BONUS.
SAFETY ACCOUNTS FOR 25% OF THE
EQUATION THAT DETERMINES THE
YEARLY CASH BONUSES ALONG WITH
FINANCIAL FACTORS INCLUDING NEW
RIG CONTRACTS."
MR. PRESIDENT, IT'S HARD FOR ME
TO BELIEVE THAT.
AND EVEN IF IT WERE TO MEET SOME
MATHEMATICAL FORMULA OF AWARDING
BONUSES TO EXECUTIVES IN OIL
COMPANIES, WHY IN THE WORLD THAT
THAT COMPANY WOULD NOT HAVE BEEN
SENSITIVE ENOUGH TO THE FAMILIES
OF 11 PEOPLE WHO LOST THEIR
LIVES AS A RESULT OF WHAT THE
PRESIDENT'S TASK FORCE INVESTING
THE DEEPWATER HORIZON OIL
EXPLOSION AND SPILL, THE TASK
FORCE COCHAIRED BY OUR FORMER
COLLEAGUE FROM FLORIDA, BOB
GRAHAM, SAID THAT THE MAIN
RESPONSIBILITY FOR THAT
EXPLOSION WAS THE FACT THAT THE
BLOWOUT PREVENTER DID NOT WORK
LIKE IT WAS DESIGNED TO.
AND WHO WAS THE OWNER AND
OPERATOR OF THAT?
TRANSOCEAN.
NOW, AS WE KNOW, THERE ARE
LAWSUITS THAT ARE GOING ON
BETWEEN B.P., WHICH HAD THE
LEASE, AND TRANSOCEAN, ITS
SUBCONTRACTOR THAT HAD THE
EQUIPMENT THAT WAS SUPPOSED TO
WORK TO PREVENT THE SPILL THAT
MALFUNCTIONED.
AND THOSE LAWSUITS ARE GOING TO
BE GOING ON FOR SOME PERIOD OF
TIME, SORTING IT OUT.
BUT THE INVESTIGATION DONE BY A
HIGHLY RESPECTED INVESTIGATIVE
TASK FORCE CAME TO THAT
CONCLUSION.
AND HERE, THAT VERY SAME COMPANY
WHOSE BLOWOUT PREVENTER DEEP ON
THE FLOOR OF THE OCEAN
MALFUNCTIONED, CAUSED THE
EXPLOSION, 11 LIVES LOST, UNTOLD
BILLIONS OF DOLLARS OF DAMAGE TO
THE ECONOMIES OF THE GULF
STATES, UNTOLD WHO KNOWS HOW
MANY BILLIONS OF DOLLARS OF
DAMAGE TO THE MARINE LIFE AND
THE ECOLOGY OF THE GULF OF
MEXICO.
AND SAFETY IS CITED BY THIS
COMPANY AS A REASON FOR GIVING
BONUSES TO ITS EXECUTIVES.
IT DEFIES COMMON SENSE.
IT DEFIES REASON.
I AM SUFFICIENTLY AGITATED ABOUT
THIS, THAT EVEN WITH THE COMPANY
COMING OUT AND ISSUING SOME KIND
OF RETRACTION THAT THIS SENATOR
INTENDS TO ASK THE SECRETARY OF
THE INTERIOR, SECRETARY SALAZAR,
WHAT AUTHORITY HE HAS TO
REGULATE NOT ONLY THE LEASES OF
OIL AND GAS TRACKS LIKE B.P. WAS
HELD THE LEASE, BUT ALSO WHAT
AUTHORITY HE HAS TO REGULATE THE
RIG OWNERS LIKE TRANSOCEAN AND
OTHER SUBCONTRACTORS WHO
ACTUALLY HAD THE RESPONSIBILITY
FOR THE SAFETY OF THE DRILLING
OPERATION, AND THAT SAFETY DID
NOT WORK.
AND I'M GOING TO ASK,
MR. PRESIDENT, I'M GOING TO ASK
THE ENVIRONMENT, OUR COMMITTEE
ON THE ENVIRONMENT CHAIRED BY
SENATOR BOXER -- I'VE ALREADY
TALKED TO SENATOR BOXER AND HER
STAFF DIRECTOR.
I'M GOING TO ASK THEM TO HOLD
HEARINGS ON THE QUESTIONABLE
RESPONSE, THE CLEANUP, THE
ENVIRONMENTAL AND THE FINANCIAL
PRACTICES NOT ONLY OF
TRANSOCEAN, BUT ITS CONTRACTOR,
B.P., WHAT IN THE WORLD IS GOING
ON?
NOW, WHY DO I BRING B.P. INTO
THIS?
WELL NOT ONLY THEY HELD THE
LEASE, BUT IT WAS INTERESTING.
LAST WEEK THE HEAD OF THE
WASHINGTON OFFICE OF B.P. CAME
IN TO GIVE ME AN UPDATE.
WE HAD A VERY AM I CAN'T BELIEVE
CHAT -- A VERY AMIABLE CHAT AND
I ASKED A SERIES OF QUESTIONS.
AND ONE OF THE QUESTIONS I ASKED
WAS: WITH ALL OF OUR PEOPLE DOWN
THERE, MANY OF THEM LOSING THEIR
BUSINESSES, LOSING THEIR HOMES
TO FORECLOSURE BECAUSE THEY
DON'T HAVE INCOME COMING IN AS A
RESULT OF THE TOURISM TRADE THAT
B.P. SPILL,
WHAT WAS ALL THIS ABOUT?
THE FIRST FULL PAYMENT OFF WAS A
$10 MILLION PAYMENT PAID IN FULL
FROM THE GULF COAST CLAIMS
FACILITY, $10 MILLION TO A B.P.
PARTNER.
THE HEAD OF THE OFFICE IN
WASHINGTON OF B.P. SAID HE
DIDN'T KNOW.
IT'S BEEN IN THE NEWSPAPER OVER
AND OVER AND OVER.
I'VE ASKED THE QUESTION OVER AND
OVER AND OVER.
I'VE WRITTEN TO THE DEPARTMENT
OF THE INTERIOR AS WELL AS TO
B.P. AND HAVE RECEIVED NO ANSWER
TO THE QUESTION -- I'VE WRITTEN
TO THE GULF COAST CLAIMS
FACILITY.
WHY WAS THE FIRST PAYMENT PAID
IN FULL IN DAMAGES DONE TO A
BUSINESS PARTNER OF B.P.?
AND THE REPRESENTATIVE OF B.P.
COULD NOT ANSWER THE QUESTION.
SO I THINK THE SENATE COMMITTEE
ON ENVIRONMENT AND PUBLIC WORKS
OUGHT TO GET INTO THAT, AND I'M
GOING TO ALSO ASK THE -- OUR
FINANCE COMMITTEE IN THE SENATE
TO HOLD HEARINGS ON THE
FINANCIAL PRACTICES OF B.P. AND
TRANSOCEAN AND OTHER
CORPORATIONS LIKE THEM.
A CORPORATION LIKE TRANSOCEAN
THAT I THINK IS DOMICILED IN
SWITZERLAND, AND WHO HOLDS A LOT
OF THEIR ASSETS AND EARNINGS
ABROAD, EARNINGS THAT COME AS A
RESULT OF DOING BUSINESS IN THE
UNITED STATES, BUT OF WHICH
THOSE EARNINGS ARE HELD ABROAD
AND TAXES ARE NOT PAID FOR THE
PRIVILEGE OF DOING THAT BUSINESS
AND EARNING PROFITS IN THEIR
BUSINESS THAT IS CONDUCTED IN
THE UNITED STATES.
NOW, MR. PRESIDENT, I THINK WE
OWE THIS TO OUR TAXPAYERS.
THIS SENATOR CERTAINLY OWES IT
TO HIS CONSTITUENTS WHO HAVE
SUFFERED MIGHTILY AS A RESULT OF
THIS B.P. OIL SPILL, ALONG WITH
THE MALFUNCTIONS THAT WENT ALONG
AND THE PROCEDURES AND IN THE
EQUIPMENT OF THAT TREMENDOUS
DISASTER THAT SO MANY HAVE
SUFFERED SO LONG.
MR. PRESIDENT, I YIELD THE
FLOOR.
MR. PRESIDENT?
THE
SENATOR FROM SOUTH DAKOTA.
MR. PRESIDENT, THIS
FRIDAY, WE RUN OUT OF THE
CURRENT WHICH IS NOW THE SIXTH
CONTINUING RESOLUTION,
SHORT-TERM CONTINUING RESOLUTION
WHICH WE HAVE BEEN OPERATING ON
NOW SINCE THE END OF THE FISCAL
YEAR, WHICH WAS SEPTEMBER 30 OF
LAST YEAR.
WE STARTED A NEW FISCAL YEAR
OCTOBER 1.
AND JUDGING BY SOME OF THE
RHETORIC THAT YOU HAVE BEEN
HEARING AROUND HERE, YOU WOULD
THINK THAT SOMEHOW IT WAS THESE
BIG, BAD, EVIL REPUBLICANS THAT
ARE JUST TRYING TO SHUT THE
GOVERNMENT DOWN WITH -- BY
TRYING TO GET A BILL PASSED THAT
ACTUALLY WOULD REDUCE SPENDING
FOR THE BALANCE OF THIS FISCAL
YEAR WHICH WOULD END ON
SEPTEMBER 30.
AND SO I JUST WANT TO REMIND MY
COLLEAGUES -- AND I KNOW AT SOME
POINT IT PROBABLY GETS A LITTLE
BIT REDUNDANT, BUT IT'S A FACT.
THE REASON THAT WE ARE HERE IS
BECAUSE LAST YEAR, THE DEMOCRATS
IN THE CONGRESS FAILED TO PASS A
BUDGET.
APPROPRIATION BILL.
DIDN'T PASS A SINGLE
SO THERE WAS NO BUDGET PASSED
LAST YEAR FOR THIS FISCAL YEAR,
NOT A SINGLE APPROPRIATION BILL
PASSED BEFORE THE END OF THE --
BEFORE THE FISCAL YEAR ENDED
SEPTEMBER 30, BUT EVEN BEYOND
THAT, WE HAD A LAME-DUCK SESSION
WHERE WE WERE HERE BUT WE WERE
HERE BASICALLY FROM AFTER
NOVEMBER'S ELECTION UNTIL THE
CHRISTMAS HOLIDAY AND NEVER DID
WE HAVE A BUDGET CONSIDERED ON
THE FLOOR OF THE SENATE, NOR DID
WE CONSIDER A SINGLE
APPROPRIATION BILL.
AND SO THE REASON WE'RE HERE,
MR. PRESIDENT, IS TO FINISH UP
THE UNFINISHED BUSINESS OF LAST
YEAR.
THIS IS LAST YEAR'S MESS THAT WE
ARE NOW CLEANING UP.
WELL, WE THINK THAT THE VOTERS
IN THE ELECTION SPOKE PRETTY
CLEARLY AND SENT AN IMPERATIVE
TO THE CONGRESS THAT WE WANT YOU
TO REDUCE SPENDING, AND SO WE
HAVE BEEN TRYING, AS WE HAVE
ATTEMPTED TO FUND THE GOVERNMENT
THROUGH THE END OF THIS FISCAL
YEAR, SEPTEMBER 30, TO ACHIEVE
SOME LEVEL OF SPENDING REDUCTION
REPRESENTATIVES.
STARTED IN THE HOUSE OF
THEY PASSED A BILL THAT REDUCED
SPENDING BY $61 BILLION OVER THE
PREVIOUS YEAR.
AND SO IT CAME OVER HERE TO THE
SENATE, WE HAD A VOTE ON THAT TO
REDUCE AND TRIM $61 BILLION AND
IT FAILED.
THE DEMOCRATS PUT A BILL ON THE
FLOOR THAT WOULD TRIM
TRIM $4.7 BILLION FROM LAST
YEAR'S SPENDING LEVEL, AND WHICH
SEEMED TO BE COMPLETELY DIVORCED
FROM REALITY ABOUT HOW TO
SERIOUSLY, MEANINGFULLY ADDRESS
THIS ISSUE OF SPENDING AND DEBT
AND HOW TO ADDRESS THE CONCERN
THE AMERICAN PEOPLE HAVE VOICED
ABOUT THIS YEAR OVER YEAR,
YEAR, $1.5 TRILLION DEFICITS
THAT WE'RE SEEING AND NOW WE'RE
GOING TO SEE EVEN LONGER NOW
THAT THE PRESIDENT SUBMITTED HIS
2012 BUDGET.
SO, MR. PRESIDENT, THE REASON
WE'RE HERE IS TO DO LAST YEAR'S
UNFINISHED BUSINESS BUT
HOPEFULLY CONCLUDE IT IN A WAY
THAT DOES MATTER TO THE AMERICAN
PEOPLE, AND THAT IS GET RUNAWAY
SPENDING IN WASHINGTON UNDER
CONTROL, STARTING TO LIVE WITHIN
OUR MEANS.
SOMETHING THAT EVERY FAMILY IN
AMERICA HAS TO DO, SOMETHING
THAT EVERY SMALL BUSINESS HAS TO
DO IN AMERICA.
AND SO HERE WE ARE AGAIN, COMING
UP AGAINST THIS FRIDAY DEADLINE
BECAUSE THERE IS RESISTANCE TO
REDUCING BY $61 BILLION THE --
THE AMOUNT THAT CONGRESS SPENT
OVER THE -- BELOW THE PREVIOUS
YEAR.
NOW, THE $61 BILLION, IF YOU
LOOK AT THE TOTAL BUDGET,
REPRESENTS A LITTLE UNDER 2%.
EVEN IF YOU LOOK AT IT IN TERMS
OF DISCRETIONARY SPENDING, THAT
AMOUNT THAT WE ARE ACTUALLY
APPROPRIATING FOR ANNUALLY THAT
IS THE SMALLER PART OF THE
BUDGET HERE IN WASHINGTON, IT'S
A SMALL PERCENTAGE.
WE ARE NOT TALKING ABOUT
MONEY.
RELATIVELY SPEAKING A LOT OF
I THINK IT'S REASONABLE.
I THINK THE AMERICAN PEOPLE
BELIEVE IT'S REASONABLE, AND YET
WE'RE HAVING THIS HUGE MELTDOWN
AROUND HERE BECAUSE WE DON'T
HAVE THE POLITICAL COURAGE TO DO
WHAT THE AMERICAN PEOPLE HAVE
ASKED US TO DO, AND, FRANKLY, IF
WE WERE TO REDUCE SPENDING BY
THE AMOUNT THAT THE DEMOCRATS
PROPOSED WHEN WE HAD A VOTE HERE
IN THE SENATE, IT WOULD BE ABOUT
THE EQUIVALENT OF ONE DAY OF THE
DEBT.
IN OTHER WORDS, IN THIS YEAR,
THE AMOUNT OF DEBT THAT WE'RE
GOING TO RACK UP, THE AMOUNT
THAT THEY WERE TALKING ABOUT
TRIMMING FROM THE BUDGET WAS THE
EQUIVALENT OF ONE SINGLE DAY OF
THE FEDERAL DEBT.
ABOUT A LITTLE OVER $4 BILLION.
SO IT WASN'T SERIOUS.
NOBODY COULD TAKE IT SERIOUSLY
BY ANY OBJECTIVE MEASUREMENT.
NOW, JUST TO PUT IT IN
PERSPECTIVE, IN THE LAST TWO
YEARS, SPENDING HAS INCREASED BY
ABOUT 24%.
THIS IS NONNATIONAL SECURITY
DISCRETIONARY SPENDING HAS
INCREASED BY ABOUT 24% AT A TIME
WHEN INFLATION WAS ONLY 2% IN
THIS COUNTRY.
SO DISCRETIONARY SPENDING WAS
GROWING AT MORE THAN TEN TIMES
THE RATE OF INFLATION.
SO IT SEEMS REASONABLE THAT WE
COULD GO BACK TO THOSE 2008
LEVELS INDEXED FOR INFLATION,
WHICH IS WHAT THE PROPOSAL
PASSED BY THE HOUSE THAT WAS
DEFEATED HERE IN THE SENATE
WOULD DO.
AND WE HAVE HAD LOTS OF
TESTIMONY FROM THE FORMER
CHAIRMAN OF THE FEDERAL RESERVE,
GROPES GREENSPAN, WHO SAID THAT
THAT -- FEDERAL RESERVE, ALAN
GREENSPAN, WHO SAID HE EXPECTED
WE COULD FACE A DEBT CRISIS IN
THE NEXT TWO TO THREE YEARS.
HE SAID THERE IS A 50%
PROBABILITY OF THAT.
WE HAVE HAD THE CHAIRMAN OF THE
JOINT CHIEFS OF STAFF, ADMIRAL
MIKE MULLEN SAY THAT THE BIGGEST
THREAT TO AMERICA'S FUTURE IS
OUR NATIONAL DEBT -- THE BIGGEST
THREAT TO AMERICA'S NATIONAL
SECURITY IS OUR NATIONAL DEBT,
WHICH I THINK IS A STUNNING
STATEMENT COMING FROM THE
HIGHEST RANKING MILITARY
OFFICIAL IN THIS COUNTRY.
SO YOU HAVE PEOPLE SAYING YOU
HAVE THIS POTENTIAL FOR A DEBT
CRISIS, 50% PROBABILITY THAT YOU
HAVE THIS NATIONAL SECURITY
ISSUE THAT IS IMPACTED BY THE
LEVEL OF SPENDING AND THE LEVEL
OF DEBT, AND THEN YOU HAVE WHAT
COMPELLING ARGUMENT BECAUSE
I THINK, TOO, IS AN EVEN MORE
EVERYBODY TALKS ABOUT THE NEED
TO GROW THE ECONOMY AND CREATE
JOBS AND YET THIS AMOUNT OF
SPENDING AND DEBT, ACCORDING TO
MOST OF THE RESEARCH THAT'S BEEN
DONE, SUGGESTS THAT WE ARE
COSTING OURSELVES AS AN ECONOMY
ABOUT ONE PERCENTAGE POINT OF
ECONOMIC GROWTH EVERY YEAR WHICH
TRANSLATES TO ABOUT A MILLION
LOST JOBS.
NOW, THAT'S A SIGNIFICANT, AS I
SAID, BODY OF RESEARCH THAT HAS
BEEN DONE THAT STUDIED ECONOMIES
OVER THE PAST HALF CENTURY OR SO
THAT CONCLUDED THAT THERE IS A
CORRELATION BETWEEN DEBT AND
ECONOMIC GROWTH WHEN YOUR DEBT
TO G.D.P. RATIO REACHES 90%.
WELL, WE'RE THERE, WE'RE THERE
IN THE UNITED STATES.
WE'RE WELL PAST 90%, AND IT'S
GOING TO GROW SIGNIFICANTLY MORE
UNDER THE PRESIDENT'S BUDGET.
SO WE CAN'T WAIT UNTIL TOMORROW
TO DO THIS.
WE HAVE TO ATTACK THIS PROBLEM
EVERY OPPORTUNITY THAT WE HAVE,
AND GETTING A VOTE ON A
CONTINUING RESOLUTION THAT
ACTUALLY FUNDS THE GOVERNMENT
THROUGH THE END OF THE YEAR BUT
DOES IT AT A REDUCED LEVEL OF
SPENDING MAKES A LOT OF SENSE,
AND WE DON'T HAVE -- I DON'T
KNOW OF ANYBODY HERE THAT WANTS
TO SEE A GOVERNMENT SHUTDOWN.
WE'RE ALL HERE SIMPLY BECAUSE
THAT IS UNFINISHED WORK FROM
LAST YEAR, UNFINISHED BUSINESS
FROM LAST YEAR.
WE HAVE TO GET THIS BUDGET
PASSED AND WE OUGHT TO DO IT IN
A WAY THAT ACTUALLY DOES IN A
MEANINGFUL AND SOMEWHAT SERIOUS
WAY, I WOULD ADD, REDUCE
SPENDING.
NOW, THE PRESIDENT'S BUDGET,
WHICH HE CAME OUT WITH HERE A
COUPLE OF MONTHS AGO AND WOULD
START THE 2012 BUDGET
DISCUSSION, FAILED ON EVERY
LEVEL TO ADDRESS THE MAJOR
CHALLENGES FACING THE COUNTRY.
NOT ONLY DOES HE NOT DEAL WITH
THIS ISSUE OF DISCRETIONARY
SPENDING, AND FRANKLY HE HAS
BEEN MISSING IN ACTION IN THAT
DEBATE ENTIRELY.
WE HAVE NOT HEARD FROM THE
ADMINISTRATION ABOUT THIS, BUT
MORE IMPORTANTLY, HIS BUDGET
DOES NOTHING TO ADDRESS THE BIG
PART OF THE BUDGET, SOCIAL
SECURITY, MEDICARE AND MEDICAID
WHICH CONSTITUTES TODAY 55% OF
THE FEDERAL BUDGET AND IT WILL
GROW DRAMATICALLY OVER TIME AS
RETIRE.
THE 80,000 BABY BOOMERS BEGIN TO
AND SO WHAT HE PROPOSED IN HIS
BUDGET WAS INCREASED SPENDING,
INCREASES IN TAXES AND ABOUT A
A $12 TRILLION INCREASE IN THE
FEDERAL DEBT OVER THE NEXT TEN
YEARS.
AND SO NOTHING SERIOUS DONE IN
DEBT OR TAXES.
TERMS OF ADDRESSING SPENDING,
IT IS A COLOSSAL FAILURE OF
LEADERSHIP NOT TO TAKE ON WHAT
IS THE MOST COMPELLING AND
PROFOUND ISSUE THAT FACES THIS
COUNTRY RIGHT NOW, AND THAT IS
THIS HUGE CLOUD OF DEBT THAT
HANGS OVER OUR ECONOMY AND OVER
OUR CHILDREN'S FUTURE.
NOW, THE PRESIDENT SAID RECENTLY
THAT HE DIDN'T WANT TO TAKE A
SCALPEL -- I SHOULD SAY HE
DIDN'T WANT TO TAKE A MACHETE TO
THIS, HE THOUGHT WE SHOULD USE A
SCALPEL.
WHAT HE IS TALKING ABOUT DOING I
WOULD SUGGEST DOESN'T CONSTITUTE
USING A TOOTHPICK.
THAT GETS SERIOUS ABOUT TRIMMING
THERE ISN'T ANYTHING IN HERE
THE SIZE OF THE FEDERAL
GOVERNMENT.
AND SO WHAT HAPPENED TODAY?
THE HOUSE REPUBLICANS CAME OUT
WITH A BUDGET.
AND LO AND BEHOLD, IT'S A BUDGET
THAT ACTUALLY REDUCES SPENDING
BY $6.2 TRILLION OVER WHAT THE
PRESIDENT'S BUDGET PROPOSED, OR
OR $5.8 TRILLION OVER WHAT THE
CONGRESSIONAL BUDGET OFFICE BASE
LINE WOULD SUGGEST THAT WE WOULD
SPEND OVER THE NEXT DECADE.
IT REDUCES DEBT BY $4.4 TRILLION
BELOW THE PRESIDENT'S NUMBER,
AND IT DOES IT WITHOUT RAISING
TAXES.
NOW, THE FIRST ARGUMENT YOU
HEARD IS YOU HAVE GOT PEOPLE
COMING OUT HERE TO THE FLOOR OF
THE SENATE -- AND I HEARD SOME
OF MY COLLEAGUES EARLIER TALKING
ABOUT, OH, THIS IS GOING TO BE
SO AWFUL.
CITIZENS.
JUST THINK OF THE SENIOR
WELL, LET ME TELL MY COLLEAGUES,
ACCORDING TO THE HOUSE BUDGET
IMPACTED.
PROPOSAL, SENIOR CITIZENS AREN'T
SENIOR CITIZENS ARE PROTECTED
FROM ANY CHANGES IN SOCIAL
SECURITY OR MEDICARE, AS ARE
PEOPLE AGE 55 AND OLDER.
SO IF YOU'RE A SENIOR CITIZEN
TODAY OR YOU'RE SOMEONE NEARING
RETIREMENT AGE, YOU'RE NOT
IMPACTED BY THIS.
WHAT IT DOES DO IS IT MAKES
REFORMS IN THESE PROGRAMS SO
THAT FUTURE GENERATIONS OF
AMERICANS WILL HAVE THOSE
PROGRAMS AVAILABLE TO THEM WHEN
IT COMES TIME FOR THEM TO
RETIRE.
AND THE FACT OF THE MATTER IS WE
ALL KNOW THIS.
IF WE DON'T DEAL WITH THESE --
THESE PARTS OF THE FEDERAL
BUDGET, WE ARE NOT SERIOUS ABOUT
DEALING WITH THE FUTURE.
NOW, THIS IS A SERIOUS ISSUE.
IT REQUIRES A SERIOUS SOLUTION,
AND IT REQUIRES SERIOUS
LEADERSHIP.
AND, MR. PRESIDENT, WE HAVE SEEN
NONE OF THE ABOVE FROM THE
PRESIDENT OR HIS ADMINISTRATION
OR THE DEMOCRAT LEADERSHIP HERE
IN THE CONGRESS.
AND SO SO FAR, THE ONLY EFFORT
THAT HAS BEEN MADE TO ADDRESS
THE ISSUE OF SPENDING AND DEBT
AND JOBS IN THE ECONOMY IS BEING
DONE BY THE REPUBLICANS HERE IN
THE CONGRESS AND CONSIDERING THE
FACT THAT THERE IS ONLY ONE BODY
OF THE CONGRESS THAT'S
CONTROLLED BY THE REPUBLICANS,
THE HOUSE OF REPRESENTATIVES,
THE DEMOCRATS CONTROL THE SENATE
HERE AND SET THE AGENDA, AND
WE'VE GOT A DEMOCRAT
ADMINISTRATION, A DEMOCRAT WHITE
HOUSE.
YOU WOULD THINK THAT TO DO
SOMETHING OF THIS CONSEQUENCE
AND THIS MAGNITUDE, IT WOULD
TAKE A BIPARTISAN EFFORT.
YOU WOULD SIEWSM THAT -- ASSUME
THAT THIS WOULD BE A DISCUSSION,
A BILATERAL DISCUSSION THAT
WOULD BE OCCURRING HERE BETWEEN
THE WHITE HOUSE AND CONGRESS AND
NOT JUST THE DEMOCRATS IN
CONGRESS AND THE REPUBLICANS,
BUT NONE OF THAT SEEMS TO BE
OCCURRING AND THERE DOESN'T SEEM
TO BE ANY INTEREST ON THE PART
OF THE PRESIDENT IN STEPPING
FORWARD AND PUTTING FORWARD A
PLAN THAT ACTUALLY DOES DEAL
WITH THIS MASSIVE DEBT AND GETS
SERIOUS ABOUT PUTTING PEOPLE
BACK TO WORK AND GROWING THE
ECONOMY AND CREATING JOBS.
THIS BUDGET, MR. PRESIDENT, AS I
SAID, INCREASES SPENDING ABOUT
ABOUT $400 BILLION, INCREASES
TAXES BY $1.5 TRILLION, AND ADDS
SOMEWHERE ON THE ORDER OF OVER
DEBT.
OVER $12 TRILLION TO THE FEDERAL
THAT'S THE PRESIDENT'S BUDGET.
THE REPUBLICAN BUDGET THAT WAS
PUT FORWARD TODAY -- AND I'M
SURE WE'RE NOT GOING TO AGREE
WITH EVERY ASPECT OF THAT, BUT
AT LEAST IT IS A MEANINGFUL,
SERIOUS EFFORT.
BY $6.2 TRILLION OVER THE
IT REDUCES SPENDING BY
PRESIDENT'S NUMBER AND
AND $5.8 TRILLION, AGAIN, BELOW
WHAT THE CONGRESSIONAL BUDGET
OFFICE SAYS IT WILL SPEND OVER
THE NEXT DECADE.
IT REDUCES DEBT $4.4 TRILLION
MORE THAN WHAT THE PRESIDENT HAS
PUT FORWARD.
AND IT ACTUALLY GETS GOVERNMENT
SPENDING AS A PERCENTAGE OF OUR
GROSS DOMESTIC PRODUCT DOWN
UNDER 20%, WHICH IS WHERE OUR
HISTORICAL AVERAGE HAS BEEN FOR
THE LAST FOUR YEARS.
THAT'S ABOUT WHAT WE HAVE BEEN
LOOKING AT.
AND SO IT TAKES -- IT TAKES ON
THESE ISSUES, AND WHETHER YOU
LIKE THE APPROACH OR NOT, PLEASE
AT LEAST LEFORTS -- LET'S HAVE A
DISCUSSION ABOUT THIS, LET'S
HAVE A DEBATE AND LET'S HAVE A
PROPOSAL PUT FORWARD SO WE HAVE
SOMETHING THAT WE CAN ACTUALLY
HAVE A DISCUSSION ABOUT.
BECAUSE SO FAR, ALL WE HAVE IS A
ONE-SIDED DISCUSSION.
THE REPUBLICANS HAVE LET THE
DEBATE ABOUT HOW TO DEAL WITH
THE DISCRETIONARY PART OF THE
BUDGET THAT WE'RE DEALING WITH
WITH THIS CONTINUING RESOLUTION
ON THE FLOOR TODAY, AND THE
REPUBLICANS NOW HAVE THE ONLY
PROPOSAL THAT'S BEEN PUT FORWARD
THAT DEALS WITH THE LONG-TERM
ISSUES OF SOCIAL SECURITY,
MEDICARE, MEDICAID, TAX
REFORM -- WHICH BY THE WAY IS AN
IMPORTANT ISSUE TO OUR
COMPETITIVENESS AND TO OUR
ABILITY TO GROW THE ECONOMY AND
CREATE JOBS.
ALL THOSE ISSUES ARE ADDRESSED
IN THE BUDGET THAT WAS PUT
FORWARD BY THE HOUSE OF
REPRESENTATIVES.
IT'S BEEN PUT FORWARD BY --
ADMINISTRATION ISN'T SERIOUS.
WHAT'S BEEN PUT FORWARD BY THE
THESE ARE SERIOUS TIMES THAT
REQUIRE SERIOUS LEADERSHIP THAT
REQUIRE SERIOUS SOLUTIONS FOR
THE FUTURE OF THIS COUNTRY.
AND, MR. PRESIDENT, WE AREN'T
GETTING THAT OUT OF THE WHITE
HOUSE, NOR ARE WE GETTING IT OUT
OF THE DEMOCRAT LEADERSHIP HERE
IN THE UNITED STATES SENATE.
BUT I HOPE THAT THAT WILL
CHANGE.
I HOPE THAT MY COLLEAGUES HERE
IN THE SENATE WILL RECOGNIZE AND
THE PRESIDENT WILL RECOGNIZE WE
CAN'T AFFORD TO WAIT ANY LONGER.
WE HAVE ADDED OVER $3 TRILLION
TO THE FEDERAL DEBT JUST IN THE
FIRST TWO YEARS OF THIS
PRESIDENT'S ADMINISTRATION, AND
THAT NUMBER, AS I SAID, WILL
GROW BY ABOUT $12 TRILLION OVER
THE NEXT DECADE.
THE INTEREST ALONE THAT WE WILL
PAY BY THE YEAR 2015 WILL EXCEED
WHAT WE SPEND ON NATIONAL
SECURITY.
WE WILL SPEND MORE ON INTEREST
ON THE DEBT THAN WE ACTUALLY
COUNTRY.
SPEND IN THE DEFENSE OF THIS
THAT IS THE TRAJECTORY THAT WE
ARE ON.
WE CANNOT AFFORD FOR THE FUTURE
OF OUR CHILDREN AND
GRANDCHILDREN TO STAY ON THAT
TRAJECTORY.
WE HAVE GOT TO CHANGE THE
DIRECTION THAT WE ARE HEADED IN
THIS COUNTRY, AND IT STARTS NOW.
SO I GIVE GREAT CREDIT TO OUR
HOUSE COLLEAGUES.
I HOPE THAT WE WILL BE ABLE TO
GET TO A MEANINGFUL DISCUSSION
HERE IN THE UNITED STATES SENATE
ABOUT HOW TO GET SPENDING AND
DEBT UNDER CONTROL, HOW TO GROW
THE ECONOMY AND CREATE JOBS, HOW
TO REIN IN THE SIZE OF THE
FEDERAL GOVERNMENT -- IT SEEMS
HERE AT LEAST A LOT OF MY
COLLEAGUES MUST BE VERY
COMFORTABLE WITH SPENDING OVER
25% OF OUR G.D.P. ON THE FEDERAL
GOVERNMENT BECAUSE THAT'S WHERE
WE ARE TODAY.
AND AS I SAID BEFORE, THE
40-YEAR AVERAGE IS DOWN IN THE
20% TO 21% RANGE WHICH IS WHERE
THE HOUSE REPUBLICAN BUDGET
WOULD TAKE US.
I THINK IT'S A GOOD STARTING
POINT.
IT SHOULD TRIGGER, I HOPE, A
DISCUSSION IN THIS COUNTRY, BUT
I CERTAINLY WOULD HOPE AS WELL,
MR. PRESIDENT, THAT THE OTHER
SIDE, THE DEMOCRATS HERE IN THE
CONGRESS AND THE WHITE HOUSE
WOULD ENGAGE THE DEBATE, ENTER
THIS DISCUSSION, PLEASE PUT
FORWARD AN ALTERNATIVE INSTEAD
OF JUST COMING OUT HERE AND
ATTACKING AND PARTICULARLY
ATTACKING IN A WAY THAT IS
MISLEADING AND MISINFORMING.
SENIOR CITIZENS ARE NOT IMPACTED
BY THIS PROPOSAL THAT WAS PUT
FORWARD TODAY.
IF YOU'RE 55 YEARS AND OLDER,
YOU ARE NOT AFFECTED BY THIS.
YOU KEEP THE PROGRAMS YOU'VE HAD
TODAY, BUT THIS DOES IN A
MEANINGFUL WAY REFORM THOSE
PROGRAMS SO THAT THEY ARE
AVAILABLE TO FUTURE GENERATIONS
OF AMERICANS, AND WE HAVE A
MORAL OBLIGATION TO THEM TO TAKE
THE STEPS THAT ARE NECESSARY TO
PROVIDE A FUTURE THAT DOESN'T
DEBT.
SADDLE THEM WITH A MOUNTAIN OF
AND, BY THE WAY, THAT DEBT HAS
GROWN FROM ABOUT $1,900 PER
PERSON IN 1970 TO $44,000 PER
PERSON TODAY.
AND UNDER THE PRESIDENT'S BUDGET
TEN YEARS FROM NOW WILL BE OVER
OVER -- WILL BE $88,000 PER
PERSON.
THAT'S WHAT WARE DOING TO THE --
WHAT WE'RE DOING TO THE FUTURE
OF OUR CHILDREN AND
GRANDCHILDREN UNLESS WE TAKE
STEPS TO CHANGE OUR DIRECTION.
MR. PRESIDENT, I YIELD THE
FLOOR.
MR. PRESIDENT?
THE
SENATOR FROM INDIANA.
MR. PRESIDENT, TODAY,
ALONG WITH SENATOR WYDEN, WE
INTRODUCED A BIPARTISAN TAX
REFORM LEGISLATION -- PIECE OF
LEGISLATION THAT I BELIEVE AND
BOTH OF US BELIEVE, AND
HOPEFULLY WE CAN GATHER A
CONSENSUS IN THIS BODY TO
BELIEVE, THAT IT'S NECESSARY TO
BE A COMPONENT OF ADDRESSING THE
CURRENT FISCAL SITUATION WE'RE
IN TODAY.
THE SENATOR FROM NORTH DAKOTA
JUST ARTICULATED VERY WELL THE
PLIGHT WE CURRENTLY ARE FACING
WITH OUR CURRENT FEDERAL DEFICIT
AND THE ACCUMULATING DEBT.
AND I DON'T THINK I COULD HAVE
SAID IT BETTER THAN HE DID.
LAID OUT WHAT I THINK, AS MOST
AMERICANS ARE NOW REALIZING, AND
THAT IS THAT WE HAVE TO GET A
GRIP ON OUR CURRENT FISCAL
SITUATION IN THIS COUNTRY IF
WE'RE GOING TO PROVIDE ANY KIND
OF OPPORTUNITY FOR THE FUTURE,
PROSPERITY, OPPORTUNITY FOR OUR
YOUNG PEOPLE TO GET GOOD JOBS,
BUY HOMES, RAISE A FAMILY, SEND
THEIR KIDS TO COLLEGE.
AND EVEN IN THE MORE CURRENT
SENSE, IT'S GET OUR ECONOMY
MOVING AGAIN TO THE POINT WHERE
WE CAN GET PEOPLE BACK TO WORK
AND BECOME A PROSPEROUS, LEADING
NATION IN THE WORLD.
WE ARE GRADUALLY AND
ACCELERATING ALL THE TIME,
LOSING THAT POSITION BECAUSE OF
OUR FISCAL SITUATION.
THIS MORNING, A NUMBER OF US OF
MET, BOTH REPUBLICANS AND
DEMOCRATS, IN ONE OF A SERIES OF
MEETINGS THAT WE'VE BEEN HAVING
WITH WOWSD EXPERTS -- WITH
OUTSIDE EXPERTS, DR. CARMEN
RINEHART AND KEN ROGOFF, BOTH
DISTINGUISHED AND RESPECTED
ECONOMISTS, AND OTHERS WHO HAVE
STUDIED THE SITUATION, LAYING
OUT THE CURRENT STATUS OF OUR
FISCAL SITUATION AND THE
ECONOMIC PLIGHT THAT IT IS
PUTTING OUR COUNTRY INTO.
ONE OF THE THINGS THAT THEY'VE
SAID, AND I THINK THE REASON
THAT I'M ON THE FLOOR THIS
EVENING, IS THAT UNLESS WE
ADDRESS ALL THE ASPECTS OF BOTH
DEALING WITH OUR -- IN DEALING
WITH OUR FISCAL CRISIS, BOTH IN
TERMS OF EXCESSIVE SPENDING
THAT'S TAKING PLACE AND HAS
TAKEN PLACE OVER THE LAST CIVIL
YEARS, BUT ALSO -- LAST SEVERAL
YEARS, BUT ALSO COMPONENTS FOR
GROWTH, WE ARE NOT GOING TO
SUCCESSFULLY ADDRESS THIS.
WE NOT ONLY HAVE TO LOOK AT THE
SPENDING WHICH HAS ACCELERATED
DRAMATICALLY IN THE LAST FEW
YEARS AND THE AMOUNT OF DEFICIT
WE'RE ACCUMULATING EVERY YEAR
AND THE AMOUNT OF DEBT THAT
WE'RE ROLLING UP, BUT WE ALSO
HAVE TO LOOK AT WAYS IN WHICH,
IN ADDRESSING THAT BY CUTTING
SPENDING, WE CAN ALSO SPUR THE
ECONOMY TO GROWTH.
AND THE COMPONENT FOR GROWTH
PRETTY MUCH FALLS ALONG THE
LINES OF TAX REFORM.
SENATOR WYDEN HAD WORKED FOR TWO
YEARS WITH FORMER SENATOR GREGG.
THEY SPENT A GREAT DEAL OF TIME
PUTTING TOGETHER A VERY
COMPREHENSIVE PLAN.
SENATOR GREGG, AS EVERYONE KNOWS
HERE, RETIRED AFTER MANY, MANY
YEARS OF DISTINGUISHED SERVICE,
WAS RECOGNIZED AS ONE OF IF NOT
THE LEADING PROPONENT OF BUDGET
STABILITY, OF ECONOMIC GROWTH,
OF ALL THE ASPECTS THAT GO INTO
DEALING WITH ECONOMIC
SITUATIONS.
HE'S GREATLY MISSED.
I HAD THE PRIVILEGE OF BEING HIS
FRIEND, OF SERVING WITH HIM AND
THEN HAVING HIM ENCOURAGE ME TO
TAKE HIS PLACE IN MOVING THIS
LEGISLATION FORWARD.
I SPENT THE LAST THREE MONTHS
WORKING WITH SENATOR WYDEN, WHO
IS THE COAUTHOR OF THAT ALONG
WITH SENATOR GREGG.
WE'VE MADE SOME REFINEMENTS TO
THIS.
WE ARE INTRODUCING IT TODAY.
WE WILL BE DOING A FORMAL
INTRODUCTION OF IT TOGETHER IN
THE COMING DAYS.
BUT THE AGREEMENT AND THE
GROWING CONSENSUS I THINK THAT
WE HEAR FROM EVERYONE IS THAT
TAX -- COMPREHENSIVE TAX REFORM
HAS TO BE A COMPONENT OF
ADDRESSING OUR FISCAL PLIGHT AND
GETTING US BACK INTO A PERIOD OF
SUSTAINED GROWTH.
S. 727 IS THE BILL.
IT WILL BE AVAILABLE FOR PEOPLE
TO LOOK AT.
THE BIPARTISAN TAX FAIRNESS AND
SIMPLIFICATION ACT OF 2011.
IT SIMPLIFIES OUR CURRENT TAX
SYSTEM.
IT HOLDS DOWN RATES FOR
INDIVIDUALS AND FAMILIES.
IT PROVIDES TAX RELIEF TO THE
MIDDLE CLASS AND CREATES
INCENTIVES FOR BUSINESSES TO
GROW AND INVEST IN THE UNITED
STATES.
NOW, AS WE KNOW, WHEN ANY
STRUCTURE THAT IS BUILT, THE
FIRST THING DO YOU IS BUILD A
SOLID FOUNDATION, AND WHAT WE'RE
TRYING TO DO IN TAX -- OUR TAX
REFORM PACKAGE IS BUILD THAT
FOUNDATION BASED ON SEVERAL
BASIC PRINCIPLES.
WE BELIEVE THAT TO AVOID AND TO
BRING FORWARD IN ON A BIPARTISAN
BASIS, WE HAVE TO HAVE A TAX
PACKAGE THAT IS REVENUE NEUTRAL,
SO IT IS NOT STEREOTYPED AND
CHARACTERIZED AS A BOOKDOOR
MEANS OF RAISING TAXES OR OF
CUTTING SPENDING.
BUT REVENUE NEUTRALITY MEANS
THAT WE CAN GO FORWARD KNOWING
THAT IT IS NOT USED FOR THAT
PURPOSE BUT FOR THE PURPOSE OF
PUTTING IN PLACE A TAX SYSTEM
THAT WILL STIMULATE GROWTH,
PROVIDE FOR BETTER
COMPETITIVENESS FOR OUR
INDUSTRIES AND BUSINESSES, AND
MAKE US A MORE PROSPEROUS
NATION.
SIMPLIFICATION IS A KEY
FOUNDATIONAL PRINCIPLE AS WELL
AS PROTECTION FOR MIDDLE CLASS
AND FAMILIES.
FAIRNESS ACROSS THE BOARD AND,
AS I SAID EARLIER, ECONOMIC
GROWTH.
AND I'D LIKE TO ADDRESS EACH OF
THOSE.
FIRST OF ALL, ACHIEVING A
REVENUE-NEUTRAL BILL, THIS HAS
BEEN ANALYZED BY THE JOINT TAX
COMMITTEE AND BASICALLY WE HAVE
INFORMATION BACK THAT IT IS
REVENUE NEUTRAL.
STATIC BASIS.
THIS ANALYSIS IS BASED ON A
AS WE ALL KNOW, IF YOU -- IF YOU
PUT IN PLACE POLICIES THAT WILL
ENCOURAGE GROWTH AND STIMULATE
GROWTH, IT BECOMES A DYNAMIC
SCORING.
BUT C.B.O. DOESN'T DO DYNAMIC
JOINT --
SCORING, NOR DID J.T.C., THE
NOR DOES J.T.C., THE JOINT TAX
COMMITTEE.
NEVERTHELESS, EVEN AT THE STATIC
ANALYSIS OF THIS BILL, IT
ACHIEVES REVENUE NEUTRALITY AND
IT IS OUR GOAL TO MAINTAIN THAT
BE MADE.
THROUGHOUT AS ADJUSTMENTS MIGHT
SIMPLIFYING THE TAX CODE HAS TO
BE ONE OF THE VERY FIRST THINGS
THAT WE DO.
TODAY, THE U.S. TAX CODE IS
71,684 PAGES IN LENGTH AND IT
INCLUDES A TANGLED WEB OF OVER
10,000 EXEMPTIONS, DEDUCTIONS,
CREDITS, AND OTHER PREFERENCES.
NOW, MR. PRESIDENT, I TOOK THREE
TAX COURSES IN LAW SCHOOL.
I DON'T BEGIN TO UNDERSTAND THE
10 TO YOU-PLUS EXEMPTIONS AND
DEDUCTIONS AND FLEARCHESZ ARE IN
THERE.
-- PREFERENCES THAT ARE IN
THERE.
I TURN OVER TO AN ACCOUNTANT WHO
SPENDS EVERY WORKING HOUR OF HIS
WEEK EVERY DAY OF THE YEAR
TRYING TO STAY UP WITH THE
COMPLEXITY OF THIS TAX CODE.
IT IS NO SECRET THAT AMERICANS
SPEND 6.1 BILLION HOURS EACH
YEAR FILLING OUT TAX FORMS AND
ROUGH $163 BILLION A YEAR IS
SPENT ON TAX COMPLIANCE.
IT'S A GREAT BENEFIT FOR
ACCOUNTANTS AND TAX LAWYERS BUT,
NEVERTHELESS, THE AVERAGE PERSON
SIMPLY CANNOT BEGIN TO
COMPREHEND THE COMPLEXITY OF
THIS CODE AND WE PAY A
SIGNIFICANT PRICE FOR THAT.
ALONG THAT LINE, PEOPLE SENSE A
REAL SENSE OF UNFAIRNESS ABOUT
THIS.
YOU'RE ALWAYS WONDERING IF YOUR
NEIGHBOR HAS GOT A BETTER
ACCOUNTANT OR A BETTER TAX
ATTORNEY OR HAS FIGURED OUT A
WAY TO TAKE ADVANTAGE OF A
DEDUCTION OR EXCLUSION OR A TAX
AWARE OF.
PREFERENCE THAT YOU WEREN'T
AND, YOU KNOW, YOU'RE HAVING
COFFEE ON APRIL 16 AND YOU'RE
TALKING ABOUT FILLING YOUR
TAXES -- FILING YOUR TAXES
YESTERDAY AND SAYING, WELL, YOU
DID TAKE A DEDUCTION FOR X, Y
ORE Z, DIDN'T YOU?
OR HOW ABOUT THAT EXTRA ROOM IN
YOUR HOUSE THAT YOU USE FOR
BUSINESS, DID YOU KNOW THAT YOU
COULD DEDUCT THE COST OF PENCILS
BUT ALSO DRIVING DAWN TO PICK UP
A LATTE IF YOU MEET SOMEBODY FOR
BUSINESS?
I MEAN, THE STUFF JUST GOES ON
ON AND ON FOREVER AND YOU THINK
GOSH, I DIDN'T KNOW THAT, I GOT
A -- HE GOT A BETTER DEAL THAN I
DID.
AND WE LOSE A SENSE OF
CONFIDENCE IN TERMS OF THE
FAIRNESS OF THE TAX SYSTEM.
SO SIMPLIFICATION IS ABSOLUTELY
ESSENTIAL, AND FOR A 71,000-PLUS
PAGE TAX CODE, I THINK IT'S AN
ABSOLUTE NECESSITY.
WE REDUCE THE NUMBER OF TAX
BRACKETS, FIRST OF ALL, FOR
INDIVIDUALS FROM SIX TO THREE,
AND WE ALSO ELIMINATE THE
ALTERNATIVE MINIMUM TAX, WHICH
MEANS YOU HAVE TO CALCULATE YOUR
TAXES TWICE IN MANY INSTANCES TO
SEE WHICH ONE IS THE HIGHER AND
WHICH ONE YOU PAY, WHICH DOUBLES
THE AMOUNT OF TIME OR ADDS A LOT
TO THE AMOUNT OF TIME.
I WANT TO POINT TO THIS CHART
HERE ON MY RIGHT, THE
WYDEN-COATS TAX REFORM ACT OF
2010.
THIS IS WHAT A SIMPLIFIED U.S.
INCOME TAX FORM WILL LOOK LIKE
IF THIS BILL IS PASSED.
IT IS ONE PAGE.
IT INCORPORATES OBVIOUSLY THE
INFORMATION ABOUT WHO YOU ARE
AND WHETHER YOU'RE MARRIED AND
YOUR SPOUSE'S SOCIAL SECURITY
NUMBER AND YOURS, ET CETERA, ET
CETERA, WHETHER YOU'RE HEAD OF
HOUSEHOLD.
VERY SIMPLE PROVISIONS HERE
THAT'S ON THE TAX FORM NOW.
WE ALL CAN FIGURE OUT HOW TO
WORK THROUGH HERE.
RIGHT HERE YOU LIST YOUR
DEPENDENTS AND THE RELATIONSHIP
TO YOU AND YOU GET THEIR SOCIAL
SECURITY NUMBER.
AND THEN TO SEE WHETHER OR NOT
YOU QUALIFY FOR A DEPENDENT'S
DEDUCTION, AND YOU PUT THAT --
CHECK THOSE OFF AND YOU LIST
YOUR CAPITAL GAINS AND YOUR
DIVIDENDS HERE, YOUR TOTAL
INCOME IS ADDED TOGETHER.
AND THEN YOU ADJUST THAT BY SOME
VERY SIMPLE, RETAINED EXEMPTIONS
THAT WE HAVE NOT TAKEN OUT, AND
DEDUCTIONS, TAX CREDITS, ALL
STILL ON ONE PAGE.
YOU COME DOWN TO THE PAYMENT,
YOU EITHER GET A REFUND OR YOU
OWE THE GOVERNMENT A LITTLE BIT
MORE MONEY AND THAT'S IT AND YOU
SEND IT IN.
WE ALSO HAVE A PROVISION IN
THERE THAT IF YOU DON'T WANT TO
DO THIS YOURSELF OR YOU HAVE
SOME CONFUSION, IT IS BASIC
ENOUGH THAT YOU CAN
ELECTRONICALLY OR BY TELEPHONE
OR WHATEVER ASK THE I.R.S. TO DO
IT FOR YOU.
THEY WILL CALCULATE IT FOR YOU,
SEND IT TO YOU, YOU CAN REVIEW
IT AND THEN CERTIFY THAT IT'S
CORRECT OR YOU HAVE QUESTIONS
THAT CAN BE ANSWERED.
SO POINT NUMBER ONE,
SIMPLIFICATION IS ABSOLUTELY
NECESSARY.
IT CAN BE DONE AND WE HAVE
STRUCTURED IT SO WITH THREE
BRACKETS THAT ALLOW US AND ALLOW
INDIVIDUALS TO DO -- FILL OUT
THEIR TAXES ON THE BASIS OF THIS
SIMPLE FORM.
SECONDLY, WE'VE TALKED ABOUT --
THIRDLY, AFTER REVENUE
NEUTRALITY AND SIMPLIFICATION,
WE'RE TALKING ABOUT HOW DO WE
USE THIS TO GROW THE ECONOMY?
CLEARLY, WITH THE FISCAL
SITUATION WE'RE IN TODAY, WE ARE
NOT GOING TO SOLVE OUR PROBLEM
JUST BY CUTTING OR BY RAISING
TAXES.
WE NEED TO HAVE A GROWTH
COMPONENT SO WE CAN ACHIEVE MORE
REVENUE THROUGH THE PROSPERITY
AND GROWTH OF CORPORATIONS AND
INCOME LEVELS OF INDIVIDUALS AND
SO FORTH.
SO WE ARE REFORMING OUR CODE IN
A WAY TO HELP US GET OUT OF THIS
FISCAL SITUATION BY IMPROVING
THE PROSPERITY AND GROWTH OF THE
COUNTRY.
OUR CURRENT TAX SYSTEM PLACES
THE TAX -- THE EMPLOYEE -- THE
EMPLOYERS, EXCUSE ME, AND
BUSINESSES AT A DISADVANTAGE IN
THE GLOBAL MARKETPLACE.
IF YOU LOOK AT THIS CHART ON MY
LEFT, THE UNITED STATES OUT OF
36 COUNTRIES WHICH ARE THE MOST
COMPETITIVE COUNTRIES FOR
COMPETING FOR GLOBAL BUSINESS
AROUND THE WORLD, OUT OF 36
COUNTRIES, THE UNITED STATES IS
35th OUT OF 36 IN THE HIGHEST
RATE OF TAXES PAID BY OUR
CORPORATIONS.
AND THEY'RE COMPETING AGAINST
COUNTRIES LIKE GERMANY AND
FRANCE AND AUSTRIA AND TURKEY
AND -- AND CHILE AND ALL THESE
THAT ARE LISTED HERE, ASIAN
NATIONS AND SO FORTH, THAT HAVE
MUCH LOWER COMBINED TAX RATES
STATES.
WE WANT TO LOWER THIS LEVEL OF
PAYMENT OF TAXES FROM THE UNITED
STATES -- IN THE UNITED STATES
BY U.S. BUSINESSES TO 24% FROM
THE CURRENT RATE OF 35%.
AND IF YOU GO BY A COMBINED
RATE, IT ENDS UP -- THE NUMBER'S
A LITTLE BIT DIFFERENT THAN
THAT, BUT WE WANT TO MOVE THE
UNITED STATES DOWN HERE INTO THE
COMPETITIVE AREA WHERE WE ARE
COMPETITIVE WITH ALL THOSE
COUNTRIES THAT WE COMPETE WITH
TO SELL PRODUCTS OVERIN THIS --
IN THIS GLOBAL ECONOMY.
AND WE DO THAT AND PAY FOR IT BY
ELIMINATING A LOT OF THE
CREDITS, SPECIAL PREFERENCES,
EXEMPTIONS, DEDUCTIONS THAT ARE
AVAILABLE IN THOSE 10,000 PLUS
PAGES -- EXCUSE ME, 71,000 PAGES
RESULTING IN 10,000 OR MORE
SPECIAL EXEMPTIONS.
WE ELIMINATE A LOT OF THOSE IN
RATE.
RETURN FOR A LOWER CORPORATE
I TALKED TO A NUMBER OF
BUSINESSES, SMALL, LARGE, AND
MEDIUM SAYING, YOU KNOW, IF YOU
CAN JUST GET THE RATE DOWN WHERE
WE'RE COMPETITIVE, WE DON'T NEED
TO DIG INTO THE TAX CODE TO TRY
EXEMPTIONS.
TO FIND ALL THESE SPECIAL
IT'S BEEN CALLED CORPORATE
WELFARE.
IT DOESN'T ALWAYS FALL UNDER
THAT CATEGORY.
SOME OF THIS IS LEGITIMATE.
BUT IT IS NOT ACROSS THE BOARD.
WHILE IT ADDRESSES PROBLEMS OF A
SPECIFIC INDUSTRY OR SPECIFIC
COMPANY, IT DOESN'T ADDRESS IT
ACROSS THE BOARD IN A WAY FOR
THEIR COMPETITORS TO BE TREATED
IN THE SAME WAY.
SO UNDER WYDEN-COATS WE TRIED TO
11 THE PLAYING FIELD AND MAKE
INVESTING IN THE UNITED STATES
MORE ATTRACTIVE TO BUSINESSES OF
ALL SIZES.
WE HAVE A REPATRIATISM PROVISION
IN THERE WHICH AT ANOTHER TIME
WE'LL EXPLAIN IN MORE DETAIL.
BUT A NUMBER OF ORGANIZATIONS,
INCLUDING HERITAGE AND
MANUFACTURERS ALLIANCE HAVE --
HAVE DONE STUDIES AND PRODUCED
INFORMATION THAT SHOW THAT A
CREATOR.
LOWERING OF THIS RATE IS A JOB
IT'S A GROWTH COMPONENT THAT THE
HERITAGE FOUNDATION FOUND THAT
THE LEGISLATION COULD CREATE UP
TO 2.3 MILLION NEW JOBS A YEAR
WHILE CUTTING THE FEDERAL
DEFICIT BY AN AVERAGE OF
OF $61 BILLION A YEAR JUST
THROUGH THE CHANGES THAT WE HAVE
MADE AND THE CORPORATE THE
STRUCTURE OF TAXATION.
THE MANUFACTURERS ALLIANCE
PUBLISHED A PAPER CONCLUDING
THAT SUCH AN APPROACH AND I
QUOTE -- "WOULD CREATE NEARLY
TWO MILLION JOBS ON A NET BASIS
AND ADD AN EXTRA $500 BILLION TO
G.D.P. BY 2015."
THE ALLIANCE ALSO ESTIMATED THAT
IT COULD REDUCE THE DEBT BY
BY $1.2 TRILLION OVER THE COMING
DECADE.
I WANT TO REPEAT THAT.
WHILE C.B.O. OR THE JOINT TAX,
CONGRESSIONAL BUDGET OFFICE,
JOINT TAX MIGHT SCORE THIS ON A
STATIC BASIS, MEANING THAT
LOWERING TAX RATES DOES NOT --
THEY DON'T CALCULATE IN WHAT THE
POTENTIAL GROWTH FROM THAT WOULD
BE IN A FLUID WAY, A DYNAMIC
WAY.
HISTORY SHOWS US THAT EVERY TIME
TAXES ARE LOWERED THERE IS AN
UPTICK IN ECONOMIC ACTIVITY AND
MORE IMPORTANT AN UPKNICK THE
HIRING AND -- UPTICK IN THE
HIRING AND DROP IN UNEMPLOYMENT
RATE.
SO GETTING US MORE COMPETITIVE
WITH OUR COMPETITORS AROUND THE
WORLD WILL CLEARLY BRING A YET
UNDETERMINED NUMBER OF MORE
REVENUE COMING INTO THE
GOVERNMENT BASED ON HIGHER
PROFITS BY OUR COMPANIES AND
MORE RESULTING IN -- RESULTING
IN MORE EMPLOYMENT.
THAT IS A KEY COMPONENT OF THIS
TAX REFORM.
PROTECTING THE MIDDLE CLASS AND
FAMILIES IS ALSO ANOTHER KEY
COMPONENT OF OUR TAX REFORM AND
OF THE WYDEN-COATS PLAN.
TODAY A FAMILY OF FOUR IN
INDIANA MAKING $90,000 AND
FILING JOINTLY WOULD OWE
NEARLY $13,000 IN PERSONAL
INCOME TAXES.
UNDER WYDEN-COATS, THAT FAMILY
WOULD KEEP MORE OF THEIR
HARD-EARNED MONEY AND SAVE
APPROXIMATELY $5,000 IN PERSONAL
INCOME TAXES.
WE PROTECT AND EXTEND IMPORTANT
TAX DEDUCTIONS FOR FAMILIES.
WE DON'T ELIMINATE ALL
DEDUCTIONS TO REACH OUR -- OUR
SIMPLE -- SIMPLIFIED TAX CODE,
ONLY THREE LEVELS OF TAXATION
WITHOUT INCREASES WE RETAIN THE
RATES THAT ARE -- WE DON'T RAISE
ANY OF THE RATES THAT ARE
CURRENTLY IN PLACE.
WE KEEP THE DEPENDENT TAX
CREDIT, WHICH IS SET TO DROP TO
TO $2,400 IN TWO YEARS.
WE IN THE WYDEN-COATS PLAN
PERMANENTLY SET THAT BENEFIT
AT $3,000, A BENEFIT TO
FAMILIES.
THE CHILD TAX CREDIT IS
2013.
SCHEDULED TO REVERT TO $500 IN
WYDEN-COATS EASES THE TAX BURDEN
ON FAMILIES BY PERMANENTLY
SETTING THE CHILD TAX CREDIT
AT $1,000.
WE PROMOTE PERSONAL SAVING AND
INVESTMENT.
WE THINK IT'S IMPORTANT THAT WE
ENCOURAGE THE SAVING AND
INVESTMENT.
TODAY WE HAVE THREE SEPARATE
I.R.A. OR INDIVIDUAL RETIREMENT
ACCOUNT PLANS FOR SAVINGS AND
INDIVIDUALS IN THE UNITED
INVESTMENTS AVAILABLE TO -- TO
STATES.
WYDEN-COATS PROMOTES THIS BY
EXPANDING TAX-FREE SAVINGS
OPPORTUNITIES AND CONSOLIDATING
THESE THREE NEW ACCOUNTS INTO
ONE ACCOUNT THAT WOULD ALLOW A
MARRIED COUPLE TO CONTRIBUTE UP
TO $14,000 A YEAR TO TAX FAVORED
RETIREMENT AND SAVINGS ACCOUNTS.
SO WE TAKE THE THREE CURRENT
PLANS IN EXISTENCE, WE
CONSOLIDATE IT INTO ONE, WE
INCREASE THE AMOUNT PER YEAR
THAT -- THAT CAN BE TAX FREE,
DONATED TO THOSE SAVINGS AND
RETIREMENT ACCOUNTS AS ANOTHER
WAY OF LOOKING OUT FOR FAMILIES
AND THEIR NEED TO SAVE FOR THE
FUTURE.
MAKING THE TAX CODE FAIR.
TODAY OUR CURRENT TAX SYSTEM
PICKS WINNERS AND LOSERS.
HUNDREDS OF SPECIALIZED TAX
ALL.
RATES THAT BENEFIT SOME, BUT NOT
THESE CREDITS SPECIALIZED
EARMARKS WITHIN THIS TAX CODE
THAT WE'RE WORKING WITH TODAY
ARE A TOTAL OF $1.1 TRILLION.
WE WANT TO ELIMINATE UNDER
WYDEN-COATS A NUMBER OF THOSE
EXEMPTIONS AND END A NUMBER OF
SPECIALIZED TAX BREAKS THAT
FAVOR ONE SECTOR OF THE ECONOMY
ANOTHER.
OR SPECIAL INTEREST GROUP OVER
WE WANT TO LEVEL THIS OUT.
NOW, I RECOGNIZE, AND SENATOR
WYDEN ALSO RECOGNIZES THAT THERE
WILL BE ISSUES WITH THIS BILL.
ESPECIALLY FROM GROUPS THAT
BENEFIT FROM THESE SPECIAL
EXEMPTIONS.
BUT THOSE SPECIAL EXEMPTIONS AND
TAX EARMARKS OFTEN PUT OTHER
COMPANIES AT A DISADVANTAGE AND
IT'S TIME TO MAKE OUR SYSTEM, AS
I SAID, FAIR AND MORE SIMPLE.
RONALD REAGAN ONCE SAID, TO PUT
IT SIMPLY, OUR TAX SYSTEM IS
UNFAIR, IT'S INEQUITABLE, IT'S
COUNTERPRODUCTIVE, AND ALL BUT
INCOMPREHENSIBLE.
REAGAN WENT ON TO SAY WERE HE
LIVING AT THIS TIME EVEN ALBERT
EINSTEIN WOULD HAVE TO WRITE TO
THE I.R.S. TO HELP HIM FILL OUT
HIS 1044 EACH YEAR.
NOW IT'S 25 YEARS SINCE WE'VE
HAD ANY KIND OF MEANINGFUL TAX
REFORM.
1986 WAS THE LAST TIME.
DURING THAT TIME OUR GOVERNMENT
HAS VASTLY EXPANDED THE TAX CODE
REFORM INTO A COMPLICATED,
TANGLED WEB OF DEDUCTIONS AND
DECIPHER.
LOOPHOLES FOR TAX LAWYERS TO
IF WE CAN REFORM THIS TAX CODE
AND ENCOURAGE JOB INVESTMENT
HERE AT HOME BY DOING THIS,
CREATE MORE AMERICAN JOBS AND
MAKE OUR COUNTRY MORE
COMPETITIVE IN A GLOBAL MARKET,
WE WILL HAVE TAKEN A MAJOR STEP
TO MOVING FORWARD IN TERMS OF
ADDRESSING THE FISCAL PLATE THAT
WE'RE CURRENTLY IN.
SENATOR WYDEN AND I ARE OPEN TO
SUGGESTION.
THIS IS NOT SET IN CONCRETE.
THIS IS NOT A BE ALL, END ALL
PLAN.
WE DON'T HAVE ALL THE ANSWERS TO
THIS COMPLEX PROBLEM, BUT WE
THINK THIS IS AN ESSENTIAL START
TO A DEBATE THAT IS NECESSARY TO
BE ACCOMPANIED BY OTHER
SOLUTIONS THAT WE HAVE TO BRING
TO OUR CURRENT FISCAL SITUATION.
AND WE WANT TO PUT THIS IN AS A
STARTER, AS A WAY OF SAYING TWO
YEARS PLUS OF HARD WORK BY TWO
PEOPLE WHO ARE KNOWLEDGEABLE
ABOUT THIS -- ABOUT THIS TOPIC,
AND I DON'T BEGIN TO -- TO BRING
MYSELF UP TO THE SPEED THAT
SENATOR WYDEN AND SENATOR GREGG
ACHIEVED IN THE TWO-PLUS YEARS
OF VERY, VERY HARD EFFORT, BUT
I'M TRYING TO LEARN AS FAST AS I
CAN.
WE WANT TO BRING FORWARD A
BIPARTISAN DEMOCRAT-REPUBLICAN
PLAN WHICH WE THINK ARE BASED
ON -- ON PRINCIPLES THAT ARE
NECESSARY TO STIMULATE OUR
GROWTH AND PROVIDE FAIRNESS
AN -- IT AND SIMPLIFICATION OF
OUR TAX CODE.
WE'RE ASKING EVERYBODY TO LOOK
AT IT, EXAMINE IT, COME TO US
WITH YOUR QUESTIONS.
THERE WILL BE SOMETHING -- THERE
ARE A LOT OF THINGS TO LIKE
HERE.
THERE WILL BE SOME CONSTITUENTS
THAT WILL FIND SOME THINGS THAT
THEY DON'T LIKE BECAUSE IT TAKES
AWAY A SPECIAL EXEMPTION THAT
THEY PERHAPS DEPENDED ON.
BUT WE WANT TO EXPLAIN THE BASIS
ON WHICH WE HAVE MADE THESE
DECISIONS.
WE ARE OPEN TO SUGGESTIONS AS
LONG AS THOSE SUGGESTIONS ALLOW
US TO RETAIN THOSE BASIC
PRINCIPLES AND MAINTAIN US AT A
REVENUE NEUTRALITY LEVEL AND A
FAIRNESS ACROSS THE BOARD TO
FAMILIES AND BUSINESSES AND
INDIVIDUALS THROUGHOUT THE --
THROUGHOUT THIS COUNTRY.
SO I URGE MY COLLEAGUES TO TAKE
A LOOK AT THIS, TO WORK WITH US.
THE DOOR IS OPEN FOR US TO SIT
DOWN AND TALK TO WHETHER THERE
ARE -- ARE COLLEAGUES HERE IN
THE SENATE OR BUSINESSES OR
FAMILIES OR INDIVIDUALS ACROSS
THE COUNTRY THAT WANT TO BRING
THEIR SPECIAL INPUT TO THIS
PARTICULAR EFFORT, WE LOOK
FORWARD TO WORKING WITH THEM AND
OVER TIME INCORPORATING THIS IN
THE PLAN TO MAKE US A HEALTHIER
FISCAL COUNTRY AND A COUNTRY
THAT IS DYNAMIC AND GROWING AND
A PLACE OF PROS MERITY AND
OPPORTUNITY FOR -- PROSPERITY
AND OPPORTUNITY NOT ONLY FOR
THOSE OF US TODAY BUT FOR OUR
FUTURE GENERATIONS.
MR. PRESIDENT, WITH THAT, I
YIELD THE FLOOR AND I NOTE THE
ABSENCE OF A QUORUM.
THE CLERK
WILL CALL THE ROLL.
QUORUM CALL:
QUORUM CALL:
MADAM PRESIDENT?
THE
SENATOR NORTH CAROLINA.
I ASK THAT THE
QUORUM CALL BE VITIATED.
WITHOUT
OBJECTION.
MADAM MR. PRESIDENT, I
RISE TODAY TO URGE MY COLLEAGUES