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Senate Proceeding on Feb 17th, 2011 :: 5:40:25 to 5:53:55
Total video length: 11 hours 49 minutes Stream Tools: Stream Overview | Edit Time

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Tom Harkin

5:40:22 to 5:40:26( Edit History Discussion )

Tom Harkin: of g.d.p. actually stays around the same. now, when the top tax rate has

Orrin Hatch

5:40:25 to 5:53:55( Edit History Discussion )
Speech By: Orrin Hatch

Orrin Hatch

5:40:27 to 5:40:48( Edit History Discussion )

Orrin Hatch: been raised over the years, taxes as a percentage of g.d.p. still hovered around their historical average of 18%. now, this held true even when the top tax rate was raised to a confiscatory level of over 90%. the conventional wisdom on the other side of the aisle is that we can simply raise more tax revenue by increasing tax rates. however, the history is pretty

Orrin Hatch

5:40:49 to 5:41:09( Edit History Discussion )

Orrin Hatch: clear. this is simply -- this strategy simply does not work. just take another look at this chart if you don't believe me. through all of it, we've had the top tax marginal rates very high back in 1944 and then all the way down here to where they're

Orrin Hatch

5:41:10 to 5:41:31( Edit History Discussion )

Orrin Hatch: about 39% and the revenue as a percentage of g.d.p. hasn't changed. so the top marginal tax rate didn't really help. now, instead of raising tax rates, what we need to do is implement a pro-growth tax policy. that starts with not raising taxes. for two years, we were able to fight off tax increases on small businesses proposed by president

Orrin Hatch

5:41:32 to 5:41:52( Edit History Discussion )

Orrin Hatch: obama and congressional democratic leadership. however, i have another chart here that between the annual growth of the federal revenues and g.d.p. as you can see from this chart, when g.d.p. increases -- and, of course, the red line happens to be the revenues; g.d.p. happens

Orrin Hatch

5:41:53 to 5:42:13( Edit History Discussion )

Orrin Hatch: to be the green line, gross domestic product -- when g.d.p. increases, federal revenues increase. similarly, when g.d.p. decreases, federal revenues decrease. this should not be a shocking revelation. when the economy is growing, the government collects more money to tax revenues because there is

Orrin Hatch

5:42:14 to 5:42:36( Edit History Discussion )

Orrin Hatch: more taxable income being earned. the key is to have commonsense, pro-growth tax and regulatory policies. and as i mentioned before, pro-growth agenda starts with refusing to raise taxes. i mean, just look at that chart. the fact of the matter is, is that the g.d.p. basically has gone down a little bit but, as

Orrin Hatch

5:42:37 to 5:42:58( Edit History Discussion )

Orrin Hatch: you can see, taxes are now up and will continue to be up well into 2021. as i mentioned before, a refusing to raise taxes. part of the difference between republicans and democrats on whether to increase taxes come from -- comes from different ways of looking at the world. conservative republicans look at

Orrin Hatch

5:42:59 to 5:43:19( Edit History Discussion )

Orrin Hatch: the money earned by the american people and understand that it belongs to the people. as free men and women, american citizens have a right to the fruit of their own labors. americans work too hard. they sacrifice too much for washington to blithely raise their taxes to pay for an

Orrin Hatch

5:43:20 to 5:43:40( Edit History Discussion )

Orrin Hatch: ever-expanding federal government. yet liberal democrats have a different view. listening to president obama and many congressional democrats, it is clear that they view the money earned by american people as the federal government's money first. it is only by the grace of the federal bureaucracy that citizens are given an allowance to live on.

Orrin Hatch

5:43:41 to 5:44:04( Edit History Discussion )

Orrin Hatch: now, this is a huge difference. you hear that when liberals talk about the cost of tax cuts. the cost of tax cuts? cost to whom? when democrats talk like this, they are effectively saying that anything you earn is the government's to spend. and it is a cost to the government when they decide to let you keep your money. for most americans, this is an

Orrin Hatch

5:44:05 to 5:44:27( Edit History Discussion )

Orrin Hatch: odd way of looking at the world. government costs money when it spends trillions of dollars on who knows what. the taxpayer does not cost the government money when the taxpayer keeps what that taxpayer earns. yet this liberal world view was on clear display in the recent debate about whether to extend

Orrin Hatch

5:44:28 to 5:44:48( Edit History Discussion )

Orrin Hatch: the 2001 and 2003 tax cuts. president obama and many congressional democrats said that we shouldn't -- should not be giving tax breaks to certain taxpayers. since when did keeping your own hard-earned money constitute the government giving you anything? this is not how the american

Orrin Hatch

5:44:49 to 5:45:09( Edit History Discussion )

Orrin Hatch: people view it and it's not how i view it. president obama an many congressional democrats view a failure to increase taxes as a giveaway to taxpayers that increase the deficit. republican view the job-killing tax increase with nearly 10% unemployment as a terrible idea. the way to deal with the deficit is not to raise taxes.

Orrin Hatch

5:45:10 to 5:45:31( Edit History Discussion )

Orrin Hatch: the way to deal with the deficit is to live within our means. just like families and individuals do across america. the federal government should only spend what it takes in. the president and his allies like to say that they inherited these deficits. now, that's only a half truth. they inherited some debt and

Orrin Hatch

5:45:32 to 5:45:52( Edit History Discussion )

Orrin Hatch: deficits, but they have helped create much more. for example nearly a trillion dollars was added to our debt by president obama's partisan stimulus bill. that bill was loaded up with pent-up democratic agenda items and was sold with the promise that it would keep unemployment

Orrin Hatch

5:45:53 to 5:46:13( Edit History Discussion )

Orrin Hatch: blow 8% -- below 8%. we know by the president's own standard the stimulus bill has failed miserably. unemployment has been at or above 9% for the past 21 months. that stimulus debt was not inherited by president obama. it was created by president obama. and he is bequeathing it to all

Orrin Hatch

5:46:14 to 5:46:36( Edit History Discussion )

Orrin Hatch: of our children and grandchildren. the numbers don't lie. when democrats took over washington, it was like setting homer simpson loose at an all you can eat buff faye. for -- buffet. for too long interest groups to create new programs and grow the

Orrin Hatch

5:46:37 to 5:46:58( Edit History Discussion )

Orrin Hatch: size of government had gone unfulfilled. when they sieged the reign of power, liberal democrats went hog wild. our nation's deficit has gone from $150 billion in 2007 when democrats took over congress -- remember, they had two years before president obama even got elected.

Orrin Hatch

5:46:59 to 5:47:20( Edit History Discussion )

Orrin Hatch: the democrats were in control of congress. it went from $161 billion in 2007 to $1.65 trillion in 2011. now, with respect to the debt, when congressional democrats took over control of congress in 2007, the de was $8.68 trillion.

Orrin Hatch

5:47:21 to 5:47:41( Edit History Discussion )

Orrin Hatch: and it's now over $14 trillion. so when democrats are talking about what a bad situation they inherited, let's remember these folks had been in charge of congress for the last four years. and they acted as though the bills on their spending would never come due. and like a college student who

Orrin Hatch

5:47:42 to 5:48:03( Edit History Discussion )

Orrin Hatch: maxed out his parent's credit card, democrats are looking for someone to bail them out. unfortunately they're looking to the american taxpayers to foot the bill. this cannot happen. the american taxpayer is already overburdened. and citizens are not going to stand for tax hikes when spending restraint is called for. the bottom line simple, we

Orrin Hatch

5:48:04 to 5:48:24( Edit History Discussion )

Orrin Hatch: cannot tax our way out of this problem. and i personally will resist any effort to do so. if one of the reasons i'm for a balanced budget constitutional amendment, i have found congress is incapable -- fiscally incapable of getting this mess under control.

Orrin Hatch

5:48:25 to 5:48:45( Edit History Discussion )

Orrin Hatch: it's -- it's hard to believe that we're that incapable, but we are. and so we need to put some restraints on congress. and the best way to do that, in my opinion, is a balanced budget amendment. i think that would be the best way. now, there are some who are looking at putting caps on spending.

Orrin Hatch

5:48:46 to 5:49:06( Edit History Discussion )

Orrin Hatch: and that sounds good except for one thing. if you break the caps, you're going to increase taxes. i think we find ourselves increases taxes all the time around here and that's a big mistake as far as i'm concerned. so i'm very strongly for the balanced budget constitutional amendment. i believe with the mess we're in, good people on both sides of

Orrin Hatch

5:49:07 to 5:49:28( Edit History Discussion )

Orrin Hatch: the aisle ought to be interested as well. now, last time i effectively brought up the bill as far as an amendment we had 66 votes in the senate, it passed the house overwhelmingly. if we had one more vote back in 1997, we would have had a different situation today. because the balanced budget constitutional amendment would

Orrin Hatch

5:49:29 to 5:49:50( Edit History Discussion )

Orrin Hatch: have passed and i believe the 38 states would have ratified in a very quick fashion. certainly within a year or so. had that happened, we wouldn't be in the stinking mess we're in today. we're in a terrible mess. and one of the reasons is that congress can't get its fiscal house in order. and the reason they can't is

Orrin Hatch

5:49:51 to 5:50:13( Edit History Discussion )

Orrin Hatch: because of what i just -- i've just been talking about. and i think it's going to take restraints that the balanced budget amendment would bring to force congress to have to live within its means or at least vote to break the budget. now, most -- most people who spend don't want that provision. because they know that when they

Orrin Hatch

5:50:14 to 5:50:35( Edit History Discussion )

Orrin Hatch: vote to break the budget, their constituents are going to see that. and they may not be here the next election. so as much as i would prefer to not have any -- any artificial approach, i've come to the

Orrin Hatch

5:50:36 to 5:50:56( Edit History Discussion )

Orrin Hatch: conclusion that congress just plain cannot handle its own -- its own problems. it just doesn't have the fiscal restraint to do it. now, a balanced budget amendment would be a constitutional amendment locked into our beloved constitution that would, like all the states in this

Orrin Hatch

5:50:57 to 5:51:18( Edit History Discussion )

Orrin Hatch: country, except vermont, require us to balance the budget or at least show a reason why not. and to vote. -- and to vote so that we have to vote on why not. germany has a balanced budget amendment and they meet those restraints. switzerland has a balanced budget amendment. they meet those restraints.

Orrin Hatch

5:51:19 to 5:51:39( Edit History Discussion )

Orrin Hatch: if they can do it, why can't we? i think we've got to get real around here and start doing some things that will help save the country rather than push it right into bankruptcy. and they come up with build america bonds. why do you think they do that.

Orrin Hatch

5:51:40 to 5:52:02( Edit History Discussion )

Orrin Hatch: the government has been paying 35% on that. in other words, the federal government. guess who pace that 35% -- pays the 35%, all of the states that have lived with fiscal restraint will pay for the states that don't live with fiscal restraint. that's not the way to go. it's not fair to the states that

Orrin Hatch

5:52:03 to 5:52:23( Edit History Discussion )

Orrin Hatch: are careful with their money. we know which states they are. in almost every case, they're states that are dominated by my friends on the other side. the fact is i'm totally opposed to that. now, they are willing to bring

Orrin Hatch

5:52:24 to 5:52:44( Edit History Discussion )

Orrin Hatch: down the 35% the government -- of the government match to 28% in this budget, but think about that. that's still 28% out of american taxpayers, most of whom, will have lived with fiscal restraint in his states to help states

Orrin Hatch

5:52:45 to 5:53:05( Edit History Discussion )

Orrin Hatch: that have not and who probably won't. and as long as they can get free money from the government, why not in their eyes? now some of them are in such dire straits that even some of these governors who have been big liberals in the past are starting to say, we've got to do something about it.

Orrin Hatch

5:53:06 to 5:53:30( Edit History Discussion )

Orrin Hatch: i'm going to pay particular praise to them. and i hope they will because their lack of fiscal restraint and our lack of fiscal restraint here is hurting our country. madam presi absence of a quorum. the presiding officer: the clerk

Orrin Hatch

5:53:33 to 5:53:38( Edit History Discussion )

Orrin Hatch: will call the roll.

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