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[Congressional Record Volume 141, Number 78 (Thursday, May 11, 1995)]
[House]
[Pages H4870-H4871]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

                           BUDGET RESOLUTION

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Illinois [Mr. Durbin] is recognized for 5 minutes.
  Mr. DURBIN. Mr. Speaker, we have heard comments today about the 
action of the House Budget Committee early this morning in enacting a 
budget resolution which basically sets the spending goals for Congress 
for the next year. But before I address that, I would like to remind 
those who are listening that just a few weeks ago on the floor of this 
House of Representatives, as part of the so-called Republican Contract 
With America, the Republicans by and large with a few Democratic votes 
enacted a tax cut, yes, a tax cut during a period of high Federal 
deficits.
  Many people, including a number of Republicans, questioned the wisdom 
of cutting taxes when in fact we are in the red. But the Republicans 
were determined to do it and went ahead with their plan. Their plan, 
unfortunately, did not cut taxes primarily for middle-income and 
working families. No; primarily the tax breaks went to wealthy 
corporations and wealthy individuals. In fact, for 1.71 million 
Americans the Republican plan will result in a $20,000 tax break.
  Now you cannot give away those Federal taxes without it costing you 
something, and in fact over the next 7 years that Republican tax break 
is going to 
[[Page H4871]] cost taxpayers an additional $345 billion. Over and 
above the deficits that we run each year, we are adding another $345 
billion dollars to the national debt for this tax cut package.
  Why did we do it? A lot of people wonder. Of course it is good news 
for a politician to go home and say, guess what, I got a tax break for 
you. But people at home I think are a little wiser and understand at a 
time of deficits a tax break, particularly for the wealthy people and 
corporations, is certainly not the right medicine for the patients.
  So now let us fast-forward to 1 a.m. this morning when the House 
Budget Committee decides to put out their House Budget Resolution and 
lay out the spending goals for Congress for the next year.
  Well they had a problem. They not only had to deal with the deficit, 
they had to figure out how to pay for that tax break, and so they had 
to make deeper cuts in spending in order to take care of the Republican 
tax break, and to come out with the so-called balanced budget when it 
is all said and done.
  So, where did they turn to make the cuts in Federal spending to pay 
for the tax break for wealthy individuals and profitable corporations? 
They turned to Medicare. In fact, they cut over a 7-year period of time 
$283 billion from Medicare. Medicare of course is the health insurance 
plan for America's senior citizens.
  What does that mean when you make a $283 billion cut in Medicare? It 
means that during that 7-year period of time, every senior citizen in 
America will be asked to pay an average of $3,500 more in premiums in 
Medicare. So you have the seniors, many of them in very low income 
situations if any income, paying more, so that they can in fact 
compensate for the Republican tax break.
  That to me raises some serious questions of fairness. And make no 
mistake, we are talking about cuts in Medicare. Many Republicans will 
stand up and say it is not really a cut, you Democrats have it wrong 
all over again. We are increasing spending.
  Well, let me try to tell you what they mean by that. Assume for a 
minute that you get a notice from your bank or savings and loan that 
your mortgage payment just went up $100 a month. That is a source of 
real concern for most families. But then your boss tells you, 
incidently I am giving you a raise of $50 a month.
  Well you thank your boss. You think to yourself, I am still $50 
short. What the Republicans are doing is providing the $50 a month in 
Medicare increases when the cost of Medicare is going up $100, and the 
same thing is going to be happening in the out years. The cost of 
Medicare goes up, but the Republicans do not provide enough money for 
it because they have to take care of this tax break that they passed.
  And then take a look at what they did on Social Security. We stood on 
this floor, passed a resolution and said no, not never, never will we 
cut Social Security, not even to achieve a balanced budget. Just count 
on it. And everybody ceremoniously voted, went home and put out a press 
release and told the seniors they never, never have to worry, we are 
never going to touch Social Security.
  Guess what, 1 a.m. this morning in comes the House Republican budget 
resolution and it cuts Social Security.
  It reduces the COLA, the cost-of-living adjustment for Social 
Security. So here you have the senior citizens getting hit in both 
directions. First they do not get the cost-of-living adjustment they 
anticipated for Social Security, and then have to pay for more 
Medicare.
  For what? To pay for the Republican tax break. That to me is upside 
down. If we are going to balance the budgets, let us do it in a fair 
way and not nail Medicare and Social Security.

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