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Senate Proceeding 07-30-09 on Jul 30th, 2009 :: 3:52:40 to 4:19:05
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Chuck Grassley

3:52:27 to 3:52:47( Edit History Discussion )

Chuck Grassley: i hope i was not too much of an incon voan floor. mr. grassley: i thank the senator from rhode island for his kind remarks. before i speak on a very important issue i would ask unanimous consent that gregg

Chuck Grassley

3:52:48 to 3:53:13( Edit History Discussion )

Chuck Grassley: dashlori of my finance committee staff be given privileges of the floor during the remainder of july, 2009. the presiding officer: without objection, so ordered. mr. grassley: we're only ne months into fiscal year 2009. and for the first time in american history, the federal deficit $1 trillion.

Chuck Grassley

3:53:14 to 3:53:34( Edit History Discussion )

Chuck Grassley: this is not one of those "firsts" that calls for celebration. and ther unfortunately the bad fiscal news is in the yet over for the year. we're still on track for a year-end deficit of over $1.8 trillion for fiscal year

Chuck Grassley

3:53:35 to 3:53:55( Edit History Discussion )

Chuck Grassley: and that's not according to this senator, that's according to our official scorer, the congressional budget office, the nonpartisan organization. this percentage of gross domestic product will be a staggering 13%, the highest rate since the end of world war ii.

Chuck Grassley

3:53:56 to 3:54:19( Edit History Discussion )

Chuck Grassley: i have a chart here that shows this, a chart that puts the deficit in context. puts i want do remind the senate i agree with president obama that he did, in fact, inherit part of

Chuck Grassley

3:54:20 to 3:54:45( Edit History Discussion )

Chuck Grassley: these deficits and debt. what isn't often pointed out is this: the deficits and bequeathed, back then, bipartisan basis becausehe democrats comed t controlled the last congress starting in 2007 and that congress wrote the budgets, it would the responding

Chuck Grassley

3:54:48 to 3:55:08( Edit History Discussion )

Chuck Grassley: billions, thatda that controlled congress wrote the bailout bill and george signed the responding bills and he signed the financial bail intermediate the chart shows that the bipartisan deficit that president obama that would be t

Chuck Grassley

3:55:09 to 3:55:31( Edit History Discussion )

Chuck Grassley: the d shows the bee bipartisan debt president obama inherited. that would be on the chart, as well. now, today, we've seen more revisionist fiscal history from many of my side.

Chuck Grassley

3:55:32 to 3:55:52( Edit History Discussion )

Chuck Grassley: it boils down to two bic propositions. first proposition, all good economic policy and beneficial fiscal effects are due to the partner dan ttopartisan tax hikes of 1993 and the second is that all bad economic policy and detrimental

Chuck Grassley

3:55:53 to 3:56:13( Edit History Discussion )

Chuck Grassley: fiscal effects of this decade are due to the bipartisan tax relief plans of how convenient for my friends on the other side of the aisle. if you take this fiscal revisionism to its logical

Chuck Grassley

3:56:14 to 3:56:37( Edit History Discussion )

Chuck Grassley: extreme, their the other side must be, to tax every dollar of income earned the american taxpayer. there seems to be an attitude that any policy that americans to keep more of their own money is just automatically bad. while any pol

Chuck Grassley

3:56:38 to 3:57:00( Edit History Discussion )

Chuck Grassley: of their money and just automatically good. i think it is fairly clear that the fiscal revisionists on the other side do not have a problem with huge are threatened by the prospects of

Chuck Grassley

3:57:01 to 3:57:24( Edit History Discussion )

Chuck Grassley: want to do wit money. in fact, the deficit effects of the stimulus bill passed within the short time assumed full control of the federal government xoad impe impact of the tax relief.

Chuck Grassley

3:57:25 to 3:57:46( Edit History Discussion )

Chuck Grassley: again, this is comparing the tax relief with the stimulus as you see the chart. since the stimulus package spilled a lot of red ink, let's take a look at how the economy has done. unemployment currently stands at 10.5%, the highest rate in the last 26 years; the economy has

Chuck Grassley

3:57:47 to 3:58:08( Edit History Discussion )

Chuck Grassley: shed 6.4 million jobs since the recession that also includes, million jobs lost since president obama took office. even with the passage of the maive

Chuck Grassley

3:58:09 to 3:58:31( Edit History Discussion )

Chuck Grassley: bill in february, the promise of jobs jobs, jobs that want with that $787 billion stimulus bill, there is still to the rise of unemployment and job losses. the president himself recently

Chuck Grassley

3:58:32 to 3:58:54( Edit History Discussion )

Chuck Grassley: said, "my am quoting -- "that we will probably see up for several months." while the shorterm news is bad, i've got bad news for you -- the much worse.

Chuck Grassley

3:58:55 to 3:59:19( Edit History Discussion )

Chuck Grassley: if the obama budget is adopted by 2019 we will have added over $9 trillion to t national debt held by the public and our debt as a percentage of the economy will grow excess of 80%, a level also that

Chuck Grassley

3:59:20 to 3:59:40( Edit History Discussion )

Chuck Grassley: has not been seen since country was in world war ii. let me say the of t to the economy, has been about 40% so we're tal than doubling what it has been over the

Chuck Grassley

3:59:41 to 4:00:01( Edit History Discussion )

Chuck Grassley: the huge spike in spending that we've seen over the course of the past nine months has bee advertised as temporary. but even so, the deficit as a percentage of g.d.p. in 2019 projected to be 5.5%, a

Chuck Grassley

4:00:02 to 4:00:24( Edit History Discussion )

Chuck Grassley: that eve president, is agrees is unsustainable. and you can see that on our charts as well. looking beyond the ten-year window paints an even bleaker picture. i have a chart here from the congressional projects a terrifying rise in debt held by the public as a

Chuck Grassley

4:00:25 to 4:00:45( Edit History Discussion )

Chuck Grassley: percentage of g.d.p. over the next 40 years. that's this chart right here. as you can see from the dotted line, the highest level of debt held by the public as a percentage of g.d.p., 107%,

Chuck Grassley

4:00:46 to 4:01:09( Edit History Discussion )

Chuck Grassley: occurred in 1945 as a result and at the end of world war ii. in either of the two scenarios outlined in the congressional budget office's outlook, shown by the red and green lines on the chart respectively, we are on a course to break this record som

Chuck Grassley

4:01:10 to 4:01:30( Edit History Discussion )

Chuck Grassley: the next 15 to 35 years and reach of up to 18% or, at the extreme, 321% by 2050. the congressional budget office's own words are these i quote -- "the systemic

Chuck Grassley

4:01:31 to 4:01:51( Edit History Discussion )

Chuck Grassley: widening of budget shortfalls projected under c.b.o.'s long-term scenarios has never been observe now, some may ask, why is this a big deal? why does debt held by the public have to do -- what does that

Chuck Grassley

4:01:52 to 4:02:14( Edit History Discussion )

Chuck Grassley: have to do wit life? the congressional budget office makes three points this question. and i want to make clear that you understand, this is the congressional budget office, a nonpartisan group of experts that their sole job is to project at least ten years ahead

Chuck Grassley

4:02:15 to 4:02:35( Edit History Discussion )

Chuck Grassley: of time what the situation is with every spending bill and the impact of a deficit. an if the ratio of debt to g.d.p. continues to rise, lenders may become concerned about the financial solvency of the government and demand higher

Chuck Grassley

4:02:36 to 4:02:56( Edit History Discussion )

Chuck Grassley: interest rates to pay for the increasing riskiness of holding government debt. if the debt to g.d.p. -- then the if the debt to g.d.p. ratio keeps increasing and the outlook does not improve, both foreign and domestic lenders may not provide enough funds for the government -- meaning our government -- to meet its

Chuck Grassley

4:02:57 to 4:03:17( Edit History Discussion )

Chuck Grassley: obligations. and thirdly, the c.b.o. says, "and if the first two points happen, no matter whether government resolves the fiscal cris by printing money, raising taxes, cutting spending, or going into default, it is

Chuck Grassley

4:03:18 to 4:03:41( Edit History Discussion )

Chuck Grassley: certain that e will be seriously disrupted. and whenever economic growth is seriously disrupted, job growth is seriously as clearly a debt to g.d.p. approaching 100% would have a

Chuck Grassley

4:03:42 to 4:04:02( Edit History Discussion )

Chuck Grassley: disastrous impact on everybody's everyday life. so where do clearly, we're on -- way to fiscal catastrophe unless we change our course. what is the best way to break out of this recession?

Chuck Grassley

4:04:03 to 4:04:23( Edit History Discussion )

Chuck Grassley: to start creating jobs reverse the mountainous growth of deficit and debt and get the econ that's a very important and a very long question, so let me see if i can answer. in general, democrats and republicans seem to have opposing viewpoints when it comes to the solution of this problem.

Chuck Grassley

4:04:24 to 4:04:46( Edit History Discussion )

Chuck Grassley: with republicans favoring lower taxes and lower spending while democrats favor higher taxes and higher spending. however, both republicans and decrats agree that health care reform is a crucial ingredient to solving long-term budget cris.

Chuck Grassley

4:04:47 to 4:05:07( Edit History Discussion )

Chuck Grassley: both republicans and democrats agree that health care reform needs to be paid for as well. the congressional budget office is also on the same page, asserting that, in their words -- quote -- "in the absence of significant changes in policy, rising costs of health care will cause federal spending to grow much faster

Chuck Grassley

4:05:08 to 4:05:28( Edit History Discussion )

Chuck Grassley: than the econo, federal budget on an unsustainable path." end of c.b.o. quote. over the past few months,he rising cost of health care has been characterized creative illustrations. first, we've heard the chairman of the budget committee refer to

Chuck Grassley

4:05:29 to 4:05:54( Edit History Discussion )

Chuck Grassley: the rising costs of health care as an 800-pound gorilla. second, we've heard the president describe the rising cost of health care as a ticking time bomb. today i want to add a t illustration. the rising cost of health care

Chuck Grassley

4:05:56 to 4:06:16( Edit History Discussion )

Chuck Grassley: as a debt and committe deficit dragon. now, you know in the king arthur ledge end, the greatest knight among the knights of the round-table was sir sirs lancel slayer. now, in order for sir lancelot

Chuck Grassley

4:06:17 to 4:06:40( Edit History Discussion )

Chuck Grassley: to strike down the dragon, he had to be equipped with suitable weapon. the same is true today with the rising cost of health as congress contemplates ways to cut down on fire-breathing debt and deficit dragon, it must wield the proper

Chuck Grassley

4:06:41 to 4:07:03( Edit History Discussion )

Chuck Grassley: weapons -- and weapon. as you can see here, you know, we have the debt and deficit dragon. a f proposed a graduated surtax of up to 5.4 ov $280,000 to partially offset their health care reform

Chuck Grassley

4:07:04 to 4:07:24( Edit History Discussion )

Chuck Grassley: bill. this small business surtax would push the top marginal tax rates up to between rate that would jump to over 50% in 39 states with medicare and

Chuck Grassley

4:07:25 to 4:07:45( Edit History Discussion )

Chuck Grassley: state and local taxes added in -- and this is according to the tax foundation. so is this small business surtax the proper weapon to strike down the debt and deficit dragon, i ask? i have a chart here that

Chuck Grassley

4:07:46 to 4:08:06( Edit History Discussion )

Chuck Grassley: not sir lancelot, but sir taxalot on his way to slay the debt and deficit dragon with his mighty surtax. this is "sur taxalot," as you can see here. as you can see from the the surtax is a large, heavy,

Chuck Grassley

4:08:07 to 4:08:28( Edit History Discussion )

Chuck Grassley: painful weapon and leathal to america's job engine. the goose that lays the golden egg: small business america. so take a good look at "sur taxalot." however, it is not effective against debt and deficit dragon

Chuck Grassley

4:08:29 to 4:08:52( Edit History Discussion )

Chuck Grassley: because it does nothing t the dragon's e the cost of health care that the dragon feasts upon will to increase much faster than the revenues that "sur collect with his

Chuck Grassley

4:08:53 to 4:09:13( Edit History Discussion )

Chuck Grassley: c.b.o. director doug elmendorf testified in front of the budget committee two weeks ago. dr. elmendorf stated, the legislative changes looked at by c.b.o. so house democrats' small business surtax" --

Chuck Grassley

4:09:14 to 4:09:34( Edit History Discussion )

Chuck Grassley: the sort of fundamental chang of t order of magnitude that would be necessary to offset direct increase in health costs from the end of quote of dr. elmendorf.

Chuck Grassley

4:09:35 to 4:09:57( Edit History Discussion )

Chuck Grassley: clearly, unless unlike sir lancelot, "sir taxalot" is no dragon slayer. now let's look at how t democrats' small business surtax works. in 2011 and 2012, singles making between $280,000 and $400,000 and families making between

Chuck Grassley

4:09:58 to 4:10:22( Edit History Discussion )

Chuck Grassley: $350,000 and an extra singles making between $400,000 and $800,000 and families making between $500,000 and $1 million will pay an extra 1.5%. and, finally, singles making more than $800,000 and families making more than $1 million will

Chuck Grassley

4:10:23 to 4:10:46( Edit History Discussion )

Chuck Grassley: pay an extra 5.4%. then in 2013 and after, these surt and the only way that these rates won't go up in 2013 is if the president's advisors -- the

Chuck Grassley

4:10:47 to 4:11:08( Edit History Discussion )

Chuck Grassley: director of o.m.b. --etermines in than $675 billion estimated health care savings by the year -- in e care savings by the year 2019. so, mr. president, let me say that that's right

Chuck Grassley

4:11:09 to 4:11:30( Edit History Discussion )

Chuck Grassley: mechanism is back. the house democrats have made the surtax rate increase to a trigger, and they have left the judgment on whether or not to pull the trigger in the hands of a partisan advi organization like the

Chuck Grassley

4:11:31 to 4:11:52( Edit History Discussion )

Chuck Grassley: congressional budget office. as members of congress, we should jealously guard our constitutional prerogatives to be the one branch of tasked with deciding whether revenue is raised through increased taxes or revenue is reduced through decreased taxes

Chuck Grassley

4:11:53 to 4:12:14( Edit History Discussion )

Chuck Grassley: as the great chief marshall said almost 200 years ago, "the power to power to destroy." so why would we hand such an enormous power over to the executive i recall that over the last eight years hearing from the

Chuck Grassley

4:12:15 to 4:12:35( Edit History Discussion )

Chuck Grassley: other side of the aisle t executive branch was to authority. so where is that jealous guarding of congressional authority now? it seems to be very absent we've seen this trigger mechanism from the democrats

Chuck Grassley

4:12:36 to 4:12:56( Edit History Discussion )

Chuck Grassley: before, and while it's been a couple of years, i've spoken length upon this trigger right here on the floor of the united states senate. so, mr. president, i would ask unanimous consent that a copy of my speech of may the 9th, 2007, entitled "a trigger and a

Chuck Grassley

4:12:57 to 4:13:17( Edit History Discussion )

Chuck Grassley: tax hike on american people," be included in the record. the presiding officer: without objection. mr. grassley: and i've got a chart here from the 2007 that deals with perhaps the most famous trigger. of course, i'm referring to trigger, the horse belonging to the c and as i mentioned in the past,

Chuck Grassley

4:13:18 to 4:13:38( Edit History Discussion )

Chuck Grassley: "trigger" is no today he is stuffed and on display in the roy rogers-dale evans museum in branson, museum. and even so, "trigger" even in his stuffed state is still more imposing than the house democrats' trigger advice. while past democratic trigger

Chuck Grassley

4:13:39 to 4:14:01( Edit History Discussion )

Chuck Grassley: proposals were bad, the current house democrat trigger proposal is even worse because it is under the control of a partisan o.m.b. director and it is based upon an o.m.b. director's estimate -- i repeat, an estimate -- of health care savings for the years way out

Chuck Grassley

4:14:02 to 4:14:23( Edit History Discussion )

Chuck Grassley: there, 2013-2019. i don't think anyone really expects this trigger to be pulled. even the nonpartisan joint committee on taxation, in its 544 -- in its $544 billion revenue estimate of theouse democratic small business surtax

Chuck Grassley

4:14:24 to 4:14:45( Edit History Discussion )

Chuck Grassley: proposal, assumes that the estimate savings targets will not be reached and the rates will go up for sure in 2013. clearly on the question of how to pay for health care reform, republicans and democrats appear to be drifting in different directions. republicans want to pay for

Chuck Grassley

4:14:46 to 4:15:07( Edit History Discussion )

Chuck Grassley: health care reform through changes in health care system. mostly also on the revenue side, to make health care more a and more affordable. in contrast, house democrats' most rent proposal to pay for health care reform, the small business surtax, goes far

Chuck Grassley

4:15:08 to 4:15:28( Edit History Discussion )

Chuck Grassley: outside the care by abandoning the universe of health care in their financing scheme, house that the goal of their health care reform proposal is increase coverage at any cost. even "the new york times" -- now

Chuck Grassley

4:15:29 to 4:15:49( Edit History Discussion )

Chuck Grassley: believe this, even "the new york times," hardly a striking critic of the democrats in congress or the white house, cautions against this coverage at any cost approached -- quote -- "if the government simply extends subsidized insurance to millions of uninsured people but fails to force fundamental chaes in the

Chuck Grassley

4:15:50 to 4:16:11( Edit History Discussion )

Chuck Grassley: livering and financing of health care, then federalealth care costs will keep escalating at excessive rates. that will drive up deficits in subsequent decades unless new taxes are imposed or new savings found." ending times". we need to reform our health

Chuck Grassley

4:16:12 to 4:16:33( Edit History Discussion )

Chuck Grassley: care system, but we need to do it right. that is why i'm working with senator baucus, chairman of senate finance committee, along with senator snowe, enzi, conrad and bingaman, to reach a bipartisan solution. my finance committee colleague and our staffs have been working night and weekends to navigate through the nerous complex

Chuck Grassley

4:16:34 to 4:16:55( Edit History Discussion )

Chuck Grassley: issues of health care reform. has it been obviously not. however, i'm very hopeful that we can reach a bipartisan agreement in america more accessible and more affordable while at the same time protecting taxpayers or preventing the federal government from taking over

Chuck Grassley

4:16:56 to 4:17:17( Edit History Discussion )

Chuck Grassley: health care reform. president obama in his prime time press conference last week expressed his agreement with these principles. while stating generally the reform he's proposing will keep government out of health care decisions, president obama specifically made the following promises -- quot going to sign a bill that, for

Chuck Grassley

4:17:18 to 4:17:38( Edit History Discussion )

Chuck Grassley: example, adds to our deficit. i won't sign a bill that doesn't reduce health care inflation so that families as well as government are saving money. i'm not going to sign a bill that i don't think will work." end of quote. i'll take the president at his words on these promises. but i'm going to hold h to them. the president is sending a clear

Chuck Grassley

4:17:39 to 4:18:01( Edit History Discussion )

Chuck Grassley: signal that he could not sign the pelosi bill, the health education labor pension bill or similar pieces of legislation. why? because each of those would drastically expand the federal government's control of health care system, increase the

Chuck Grassley

4:18:02 to 4:18:24( Edit History Discussion )

Chuck Grassley: deficit, and fail to reduce long-term health care inflation. here's the bottom line: when the long-term budget outlook warns that the rising heal care costs will cause feder spending to grow put the federal budget on an unsustainable path, congress needs to but at the same time when our

Chuck Grassley

4:18:25 to 4:18:45( Edit History Discussion )

Chuck Grassley: goal is to reform 17% of the economy while facing a nearl nearly $2 trillion annual deficit, more than $9 trillion in new doafort the next decade and a -- new d decade and a new -- have to make sure that we're

Chuck Grassley

4:18:46 to 4:19:05( Edit History Discussion )

Chuck Grassley: doing this job right. that's what we're trying to do in the senate finance committee. and when we get however long it takes, i hope that we can send a deficit neutral health care reform bill to president obama that increases access, cs costs,

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